DECISION NO.

2018-064
January 23, 2018

FACTS: Before this Commission is the Petition for Review1 of Ms. Gloria G. Valderama,
Municipal Treasurer, Municipality of San Rafael, Bulacan, of Commission on Audit (COA)
Regional Office (RO) No. III Decision No. 2015-19 dated June 29, 2015, which denied her
appeal from Notice of Disallowance No. 13-001-101 (13) dated September 30, 2013, in the
amount of P439,400.00.

The ATL discovered that the payees, whose signatures appeared in the unnumbered DVs,
did not receive the amounts indicated therein. The Payroll Master/Disbursing Officer replicated
the payroll sheets to make it appear that payments were made. As a result, the ATL issued ND
No. 13-001-101 (13) dated September 23, 2013.

Ms. Valderama , the Municipal Treasurer, , filed her appeal before the RD, COA RO No.
III, and requested reconsideration of the issued ND, averring that she should not be faulted for
the questioned disbursements because it was clear that the person primarily responsible for the
disallowed transactions was the Payroll Master/Disbursing Officer. She also averred that she
relied in good faith on the documents submitted by her subordinates.

ISSUE: The issue to be resolved is whether or not the Petition for Review is meritorious.

DISCUSSION This Commission rules in the negative.

Section 104 of Presidential Decree (PD) No. 1445 provides:

The treasurer of the local government unit shall likewise exercise the same
degree of supervision over accountable officers under his supervision
otherwise, he shall be jointly and solidarily liable with them for the loss of
government funds or property under their control. (Underscoring supplied)

Ms. Valderama did not exercise the diligence required by law. For her failure to follow or
observe the rules and guidelines of this Commission on the utilization and proper liquidation of
cash advances provided for under COA Circular No. 97-002, the Payroll Master/ Disbursing
Officer was able to conceal the fraud and misappropriated the cash advances. Hence, Ms.
Valderama cannot be absolved from liability.