Sanchez vs COA

Sanchez vs Commission on Audit Facts: •

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Congress passed R.A. R.A. 7180 (General Appropriations Act of 1992, w/c provided an appropriation for te !"#G and set aside te a$o%nt of  &7' for te !"#G)s Capa*ilit+ %ilding &rogra$. Att+. endo-a, &roect !irector of te Ad oc as orce for "nter3 Agenc+ Coordination Coordination to "$ple$ent "$ple$ent #ocal #ocal A%tono$+, A%tono$+, infor$ed ten !ep%t+ 45ec%tive 6ecretar+ de la 6erna of te proposal to constit%te and i$ple$ent a sa$roc t+pe tas force to i$ple$ent local a%tono$+ instit%tionali-ed %nder te #GC. e stated p%rpose for te creation of te tas force was to design progra$s, strategi-e and prepare $od%les for an eective progra$ for local a%tono$+. a%tono$+.  e proposal was accepted *+ te !ep%t+ 45ec%tive 6ecretar+ and attested *+ ten !"#G 6ecretar+ 6arino, wo iss%ed a $e$orand%$ for te transfer transfer and re$ittanc re$ittance e to te :;ce of te &residen &residentt of te s%$ of &<00= for for te operational operational e5pense e5penses s of te tas force. force. An additional cas advance of &<00= was re>%ested. ese a$o%nts were taen fro$ te %nd. 2 cas advances *ot in te a$o%nt of &<00= were witdrawn fro$ te %nd *+ te !"#G and transferred to te Casier of te :;ce of  te &resident. e ?rst cas advance was li>%idated (pa+roll, :;ce Rentals entals,, etc.@ etc.@ alto% alto%g g no recei receipts pts were were prese presente nted. d. ere ere is no record of te li>%idation of te second cas advance. owever, %pon post3a%dit cond%cted *+ te !epart$ent a%ditor te a$o%nts were disallowed *eca%se 1. Bo legal *asis for te created  as  as orce orce to clai$ pa+$ent tr% !"#G *+ wa+ of cas advance 2. &revio%s cas advance granted to acco%nta*le o;cer as not +et *een li>%idated <. 45pendit%res f%nded fro$ capa*ilit+ *%ilding are s%*ect to restrictions/conditions e$*odied in te 6pecial &rovisions of te !"#G Appropriations of R.A. 7180 wic so%ld *e $et D. 4sti$ate of e5penses covered *+ te cas advance not speci?ed. A Botice of !isallowance was ten sent to r. 6arino, et al. olding te latter ointl+ and severall+ lia*le for te a$o%nt and directing te$ to i$$ediatel+ settle te disallowance.  e C:A a;r$ed te disallowance. disallowance.

Issue:

Eet Eete err or not not ter tere e is lega legall *asi *asis s for for te te tran transf sfer er of f%nd f%nds s of te te Capa* Capa*il ilit it+ + % %il ildi ding ng &rog &rogra ra$ $ %nd %nd appr approp opri riat ated ed in te te 1992 1992 Gene Genera rall Appropriation Act fro$ te !epart$ent of "nterior and #ocal Govern$ent to te :;ce of te &resident &osition of te C:A 3 ere is no legal *asis *eca%se te %nd was $eant to *e i$ple$ented *+ te #ocal Govern$ent Acade$+ . %rter, transfer of f%nds %nder 6ec. 2'('@, 2'('@, Art. F" of te Constit%tio Constit%tion n $a+ *e $ade onl+ *+ te persons $entioned in te section and $a+ not *e re3delegated *eing alread+ a delegated a%torit+. a%torit+. 3 Additi Additiona onall+ ll+,, te f%nd f%nds s transf transferr erred ed $%st $%st co$e co$e onl+ fro fro$ $ saving savings s of  te o;ce in oter ite$s of its appropriation and $%st *e %sed for oter ite$s in te appropriation of te sa$e o;ce. "n tis case, ther there e were were no savi saving ngs s from from whic which h augm augmen enta tati tion on can can be take taken n

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because the releases of funds to the Oce of the President were made at the beginning of the budget year 1992. Also, wile te %nd is a reg%lar appropriation, it partaes te nat%re of a tr%st f%nd *eca%se it was allocated for a speci?c p%rpose. %s, it $a+ *e %sed onl+ for te speci?c p%rpose for wic it was created or te f%nd received. e C:A concl%des tat petitioners so%ld *e eld civill+ and cri$inall+ lia*le for te disallowed e5pendit%res.

eld •

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6C %peld decision of te C:A.  e C:A is endowed wit eno%g latit%de to deter$ine, prevent and disallow irreg%lar, %nnecessar+, e5cessive, e5travagant or %nconsciona*le e5pendit%res of govern$ent f%nds. "t as te power to ascertain weter p%*lic f%nds were %tili-ed for te p%rpose for wic te+ ad *een intended. "t is te general polic+ of te Co%rt to s%stain te decisions of  ad$inistrative a%torities, especiall+ one wic is constit%tionall+3 created, not onl+ on te *asis of te doctrine of separation of  powers *%t also for teir pres%$ed e5pertise in te laws te+ are entr%sted to enforce. "t is onl+ wen te C:A as acted wito%t or in e5cess of %risdiction, or wit grave a*%se of discretion a$o%nting to lac or e5cess of %risdiction, tat tis Co%rt entertains a petition >%estioning its r%lings. The power to transfer savings under ec. 2!"!#$ %rt. &' of the 19() *onstitution pertains e+clusively to the President$ the President of  the enate$ the peaker of the ,ouse of -epresentatives$ the *hief   ustice of the upreme *ourt$ and the heads of *onstitutional *ommissions and no other. &arenteticall+, petitioners fail to point o%t to te Co%rt te speci?c law and provision tereof wic a%tori-es te transfer of f%nds in tis case. ere, te power and a%torit+ to transfer in tis case was e5ercised not *+ te &resident *%t onl+ at te instance of te !ep%t+ 45ec%tive 6ecretar+, not te 45ec%tive 6ecretar+ i$self. 4ven if  te !"#G 6ecretar+ ad corro*orated te initiative of te !ep%t+ 45ec%tive 6ecretar+, it does not even appear tat te $atter was a%tori-ed *+ te &resident. ore f%nda$entall+, even te &resident i$self co%ld not ave validl+ a%tori-ed te transfer %nder te Constit%tion.  ere are two essential re>%isites in order tat a transfer of  appropriation wit te corresponding f%nds $a+ legall+ *e eected. /irst$ there must be savings in the programmed appropriation of the transferring agency. econd$ there must be an e+isting item$  pro0ect or activity with an appropriation in the receiving agency to which the savings will be transferred. Act%al savings is a sine >%a non to a valid transfer of f%nds fro$ one govern$ent agenc+ to anoter. e word act%al denotes tat so$eting is real or s%*stantial, or e5ists presentl+ in fact as opposed to so$eting wic is $erel+ teoretical, possi*le, potential or +potetical. e &resident, Cief %stice, 6enate &resident, and te eads of constit%tional co$$issions need to ?rst prove and declare te e5istence of savings *efore transferring f%nd. + te nat%re of $aintenance and operating e5penses, savings $a+ generall+ *e deter$ined at te end of te +ear, or earlier in case of 

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co$pletion, discontin%ance or a*andon$ent of te wor for wic te appropriation was a%tori-ed. "n contrast, savings fro$ personal services $a+ generall+ *e deter$ined even at te opening of te ?scal +ear in case of %npaid co$pensation pertaining to vacant positions and leaves of a*sence wito%t pa+. "t so%ld *e e$pasi-ed tat te 1992 GAA did not provide an appropriation for personal services for te Capa*ilit+ %ilding &rogra$. 6avings fro$ vacant positions wic pertain to personal services, terefore, $a+ not *e considered savings fro$ te %nd wic $a+ *e transferred.  ere is no >%estion tat there were no savings from the /und at  the time of the transfer.  e fact tat te a%dit was cond%cted *+ te !"#G A%ditor and not *+ te A%ditor of te :;ce of te &resident is inconse>%ential *eca%se te ?ndings and concl%sion of te !"#G A%ditor were passed %pon and %peld *+ te C:A itself.  %s, te responsi*le p%*lic o;cials are personall+ lia*le for te disallowed dis*%rse$ent *+ virt%e of teir position as p%*lic o;cials eld acco%nta*le for p%*lic f%nds.