G.R. No. 217448, September 10, 2019
Elena A. Estalilla, Petitioner, vs. Commission on Audit, Respondent.

FACTS

This case originated from the Contract for the Hauling of Garbage entered into by the Municipality of Cabuyao, Laguna, and J.O. Batallones Trading and Construction in 2003 and 2005, approved by the Sangguniang Bayan. After audit, the Audit Team Leader issued Audit Observation Memoranda upon discovering that payments totaling P35,591,200.00 for 2004 garbage collections were charged against the 2005 appropriation. The Regional Cluster Director subsequently issued Notices of Disallowance (NDs) on the ground that the expenditures were improperly charged against the 2005 annual budget, contrary to the Local Government Code and the Auditing Code. Among those listed as liable was petitioner Elena A. Estalilla, the Municipal Treasurer, for certifying as to cash availability. After the individuals failed to appeal the NDs within the six-month period, the COA Regional Office issued Notices of Finality of Decision and corresponding COA Orders of Execution. Estalilla filed an Omnibus Motion to Lift these notices and admit her appeal, citing preoccupation with other disallowances and lack of receipt of the initial Audit Observation Memoranda. The COA Regional Office denied her motion due to her failure to appeal within the reglementary period. Estalilla then filed a petition for review with the COA proper, which dismissed her appeal, prompting her to file this petition for certiorari.

ISSUE

1. Whether the Commission on Audit committed grave abuse of discretion in refusing to give due course and dismissing the petition for review for being filed beyond the reglementary period.
2. Whether the Commission on Audit committed grave abuse of discretion in dismissing the petition for review despite its merits, particularly in holding the Municipal Treasurer liable for the disallowed amount.

RULING

The Supreme Court GRANTED the petition for certiorari. On the procedural issue, the Court found that the non-filing of a motion for reconsideration before the COA was justified under the exceptions to the rule, as filing such a motion would have been useless given the COA’s consistent rejection of her pleas and denial of her requests for pertinent documents. On the substantive issue, the Court ruled that a municipal treasurer who merely certifies to the availability of funds is not liable for the disallowance of the disbursement unless she has falsified the certification. The Court emphasized that the treasurer’s certification is limited to the availability of cash based on the funds in the depository account, and it is the local budget officer who certifies to the availability of appropriation. Since there was no allegation that Estalilla falsified her certification, and her participation was limited to certifying cash availability, she could not be held liable for the disallowed amount arising from a budgetary or accounting error. The COA decision was modified by deleting the portion ordering the solidary liability of petitioner Elena A. Estalilla for the disallowed amount of P35,591,200.00.