CoA flags Insurance Commission’s unauthorized fund releases, incentives program
THE COMMISSION on Audit (CoA) flagged the Insurance Commission (IC) for unauthorized disbursement of funds and payments of incentives.
In a 2022 audit report dated May 30, 2023, state auditors said the commission’s releases worth over P122 million were not approved by proper authorities.
“Approval of disbursements totaling P122.56 million by officials other than the designated signing/approving authorities rendered said disbursements unauthorized,” according to the report.
It excluded the proper signing/approving authorities from liability for any audit disallowances or suspensions.
CoA also cited payments under the commission’s IC Programs on Awards and Incentives for Service Excellence (PRAISE) worth P7.06 million, which were deemed “unauthorized and irregular.”
State auditors also noted evidence in the form of “suggestions, inventions, superior accomplishments, and other personal efforts” to justify the granting of awards under PRAISE was missing.
It recommended a refund of these payments and to “stop the grant of monetary awards for PRAISE without allocated budget.”
Further, monetary awards granted should not exceed 20% of savings, CoA said.
The IC is tasked to supervise and regulate adequate insurance protection to the public at a reasonable and fair cost. It also exercises jurisdiction over health maintenance organizations (HMOs).
The commission had P155.58 million worth of assets and P33.84 million in liabilities in 2022, according to the report. It incurred expenses worth P365.62 million that year.
The IC has yet to reply to an e-mail seeking comment. — Beatriz Marie D. Cruz
