MANILA, Philippines — The Commission on Audit (COA) has cautioned state-run television network PTV4 over some P89.68 million that it paid to contract of service (COS) and contractual employees without proper documentation.

In its annual audit report, the COA said that if the Philippine Television Network Inc. failed to submit the required supporting documents for the salaries paid to COS and contractual workers, the audit body would issue a notice of suspension that could lead to a notice of disallowance.

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“The legality, validity and accuracy of the payments in the total amount of P89.680 million for the salaries of contractual and contract of service personnel of [PTV4] for the period January 2018 to December 2018 could not be ascertained due to nonsubmission of the documentary requirements such as daily time records (DTRs), contracts of service and accomplishment reports,” the COA said.

In its report, the COA said the nonsubmission was in direct violation of Presidential Decree No. 1445 or the government auditing code.

Under the said law, government agencies such as PTV4 are required to disclose financial transactions and operations, with complete documentation.

Meanwhile, a 2012 COA circular requires that government agencies submit a documentation of payments for the salary of casual or COS personnel. These documents include copies of the service contract, certification by the personnel officer that the activities and services rendered by the contractual employee cannot be provided by regular or permanent personnel of the agency, accomplishment reports and DTRs.

The said contracts should be submitted within five working days of the execution of the contract, the COA added.

The COA said that upon examination of the books of PTV4 for January 2018 to December 2018, said documents were not attached to the payrolls, nor submitted to the audit team.

The COA then tasked the PTV4 to submit the documents immediately or risk a notice of disallowance.

But PTV4 argued that they have not submitted the necessary documents since these have yet to be notarized and alphabetized. The state-run television network then promised the COA that it will abide by the audit body’s documentary requirements.

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