SANGGUNIANG PANLUNGSOD GENERAL SANTOS CITY

Transcription

1 SEVENTEENTH SANGGUNIANG PANLUNGSOD ) 94 th Regular Session ) SANGGUNIANG PANLUNGSOD GENERAL SANTOS CITY Date of Hearing: JUNE 4, 2015 COMMITTEE REPORT NO Submitted by the COMMITTEE ON FINANCE, WAYS & MEANS, APPROPRIATIONS & CITY ECONOMIC ENTERPRISES Re: SPPAO NO RECOMMENDING APPROVAL FOR ITEM NO. 1 Sponsor: Councilor Franklin M. Gacal, Jr. MADAM PRESIDENT: The Committee on Finance, Ways and Means, Appropriations and Economic Enterprises, to which was referred the following: TITLE 1. SPPO NO : AN ORDINANCE INSTITUTIONALIZING THE ESTABLISHMENT AND ADMINISTRATION OF PROVIDENT FUND FOR THE EMPLOYEES OF THE CITY GOVERNMENT OF GENERAL SANTOS. RECOMMENDATION APPROVED ON COMMITTEE LEVEL AS AMENDED / FOR SECOND READING has considered the same and has the honor to report it back to the August Body with the foregoing recommendation. Respectfully submitted: ATTY. FRANKLIN M. GACAL, JR. City Councilor & Chairperson Committee on Finance, Ways and Means, Appropriations, City Economic Enterprises - June 4, 2015 Page 1

2 REPUBLIC OF THE PHILIPPINES SANGGUNIANG PANLUNGSOD GENERAL SANTOS CITY MINUTES OF THE HEARING OF THE COMMITTEE ON FINANCE, WAYS AND MEANS, APPROPRIATIONS AND ECONOMIC ENTERPRISES OF THE 17 TH SANGGUNIANG PANLUNGSOD June 4, :45 P.M. 4:06 P.M. Sangguniang Panlungsod Learning Resource Center, G/F Legislative Building Corner Roxas Avenue and City Hall Drive, General Santos City CITY COUNCILOR PRESENT: Honorable Franklin M. Gacal, Jr. (Chairperson), Honorable Ramon R. Melliza and Honorable Brix T. Tan GUESTS/RESOURCE PERSONS: (Please refer to the attendance sheet.) AGENDUM: SPPO NO : AN ORDINANCE INSTITUTIONALIZING THE ESTABLISHMENT AND ADMINISTRATION OF PROVIDENT FUND FOR THE EMPLOYEES OF THE CITY GOVERNMENT OF GENERAL SANTOS. The committee chairperson, Honorable City Councilor Franklin M. Gacal, Jr. manifested that the committee hearing was called to make some amendments on the proposed ordinance. During the discussion, the following amendments were introduced by the body: On the title of the ordinance, the word City was inserted after the word Santos, to read as: AN ORDINANCE INSTITUTIONALIZING THE ESTABLISHMENT AND ADMINISTRATION OF PROVIDENT FUND FOR THE EMPLOYEES OF THE CITY GOVERNMENT OF GENERAL SANTOS CITY. On the 7 th Whereas, the word appointment was changed to apportionment, to read as: WHEREAS, Sec of DBM Budget Circular No provides for the apportionment of 30% of the available savings from allowable MOOE allotments to cover improvement of working conditions and other programs for the benefits of the employees. The chair ruled said amendment approved on committee level. The 8 th whereas will now read as: WHEREAS, unlike the National Government and its attached agencies and offices, the City Government has no implementing guidelines on the disbursement of service/remuneration fees collected from government corporations or private financial institutions for the payment of any obligations through authorized payroll deductions. The chair ruled the amendment approved on committee level. SECTION 2: The words of the government units under POLICY STATEMENT were deleted and the phrase guided by expressed policies under Section 3 of Executive Order 641, COMMITTEE ON FINANCE, WAYS & MEANS, APPROPRIATIONS AND ECONOMIC ENTERPRISE - JUNE 4,

3 Series of 2007 and consistent with established management principles and practices was inserted. It will now read as: Section 2. POLICY STATEMENT. - There is hereby established a Provident Fund for the government officials and employees of the City of General Santos guided by expressed policies under Section 3 of Executive Order 641, Series of 2007 and consistent with established management principles and practices. The said item was approved on committee level as amended. SECTION 3: On Section 3.b, the word Secession was replaced with Separation. amendment was ruled approved on committee level. The SECTION 4: The phrases consultants, casuals and employees with job order contracts and pay the corresponding membership fee were deleted and the phrases Personnel such as consultants and those with Job Order contracts and payment of membership fee shall be made after approval of application were inserted. This will now read as: Section 4. ELIGIBLE MEMBERS - Membership in the Provident Fund shall be voluntary and shall cover all incumbent positions, whether permanent or coterminus in nature. Personnel such as consultants and those with Job Order contracts are excluded from membership herein. Applicants shall signify in writing his/her intention to join and thereafter shall be subject to approval by the Board of Trustees. Payment of membership fee shall be made after approval of application. On motion of Councilor Melliza, the chair ruled the amendment approved on the committee level. SECTION 8: The word seceded was replaced with voluntarily or involuntarily separated. Another sentence was inserted, to read as: If any employee who is separated from the service is subsequently re-employed, he/she shall re-apply to be considered as a new member of the provident fund. Section 8 will now read as: Membership shall continue until the member has voluntarily or involuntarily separated from the Local Government Unit of General Santos City or member has been removed through recall. If any employee who is separated from the service is subsequently reemployed, he/she shall re-apply to be considered as a new member of the provident fund. On motion of Councilor Melliza, the chair ruled the amendment approved on committee level. SECTION 10: The entire Section 10 was deleted. With its deletion, the chair ruled that the numbering of the succeeding sections will be adjusted accordingly. SECTION 11: On Section 11, the word initial was deleted, the word Ten was changed to One and the phrase and administration of the Provident Fund, such as in the last sentence was also deleted and in lieu thereof, the phrase of Provident Fund and help defray administrative expenses such as but not limited to was inserted. This Section will now read as: SECTION 10. SOURCE OF FUND. The amount of One Million Pesos ( 1,000,000.00) shall be sourced from the General Fund, to serve as initial fund or seed money for the establishment of Provident Fund and help defray administrative expenses such as but not limited to. COMMITTEE ON FINANCE, WAYS & MEANS, APPROPRIATIONS AND ECONOMIC ENTERPRISE - JUNE 4,

4 With the suggestion to amend the 70% to 100% of the collections, another paragraph was added under Section 10, to read as: In addition, any unspent balance under the Cash Incentives Account namely: GSIS Remuneration, Network Bank 1% Service Fee, and NHMFC 1% Service Fee, of the Other Payables Account under the Trust Fund of the City Government as of date of approval of this Ordinance shall accrue to the Provident Fund herein established. Thereafter, 100% of collections from these accounts shall subsequently be accounted as Trust Receipts for the Provident Fund. The chair ruled said section approved on committee level as amended. SECTION 12: The words equivalent to were replaced with the phrase not less than one and the word minimum was inserted after such. The word equivalent on the last sentence was deleted. It will now read as: Section 11. MEMBERS AND EMPLOYERS CONTRIBUTION. Members shall contribute monthly to the Provident Fund, through salary deduction, an amount not less than one percent (1%) of the member s monthly basic salary, or such minimum amount to be determined, modified and approved by the Board of Trustees upon consultation with the members during a General Assembly. The employer shall, likewise, contribute to the Provident Fund an amount not exceeding to one percent (1%) of the member s monthly salary. The chair ruled this section approved on committee level. SECTION 13: The phrase Subject to approval of the Board of Trustees, the following sources may be tapped was inserted as Section On letter b of Section 12.1, the word nonrefundable was inserted after the word one-time and the phrase upon submission was deleted and changed to after approval of, to read as Section 12.1.b: Membership Fees each member shall pay a one-time non-refundable membership fee of one hundred pesos (P100.00) after approval of their application form. The chair ruled the amendment approved on committee level. Another paragraph was inserted as Section 12.2, to read as: Remuneration/Service Fees. 100% of the remuneration/service fees collected from government/private financial institutions and the like, such as GSIS, Government/Private Banks for the payment of any obligations through authorized payroll deductions shall be recorded in the books of the City Government as trust receipts and shall subsequently be released to the Provident Fund Account. Such collections shall be used exclusively for the loaning operations of the Provident Fund and for such other purposes beneficial to all members as may be approved by the Board. The succeeding sentences, Any unspent balance of the Cash Incentives Account at the end of the year shall accrue to the Provident Fund and shall be transferred to the Fund not later than the 15 th day of February of the ensuing year was deleted. The chair ruled the amendment approved on committee level. Another paragraph was added as Section 12.3, to read as: 30% of the Available Amount for CNA under Sec of Budget Circular % of the 30%, but not to exceed 2M, shall accrue to the Provident Fund. Such collections shall be used exclusively for the loaning operations of the Provident Fund and for such other purposes beneficial to all members as may be approved by the Board. For reporting purposes, as required under Sec. 6.0 of the Budget Circular, such apportionment shall be deemed in compliance thereto. When recognized, Ms. Coralynn Espinosa of City Internal Audit System (CIAS) clarified that under DBM Circular No , Section 5.1.2, 50% of the available savings from the allowable MOOE allotments will be for the CNA Incentive, the 30% will be for the improvement of working conditions and other programs and/or to be added as part of the CNA Incentive, and COMMITTEE ON FINANCE, WAYS & MEANS, APPROPRIATIONS AND ECONOMIC ENTERPRISE - JUNE 4,

5 the 20% will be reverted to the General Fund. The City Government through legislation can opt to distribute/spend that 30% for improvement of working conditions and other programs beneficial to the city employees or to be given as part of the CNA Incentive. Under Section 12.3 of the ordinance, 10% of the 30% shall accrue to the Provident Fund. Since there was no objection raised, Councilor Gacal ruled the said section approved on committee level as amended. SECTION 15 & 19: The word of between members and their in Section 15 was changed to and while on Section 19, the phrase on letter f starting from the words from time to time up to EO No. 641 were deleted. SECTION 20: The phrase after exhausting all possible means of collection was inserted after the word disability as Section 19.b. SECTION 21: On Section 21.c, the words Cessation and without cause were deleted, so as to read as: Section 20.c. Separation from service through voluntary resignation or transfer. In case of separation of a member due to an administrative or criminal offense in relation to his/her work, he/she shall be entitled to his/her contribution only, as well as to the corresponding earnings accruing to him/her, except dividends, less any claim that the Provident and the Local Government Unit of General Santos City may have against him/her. The chair ruled the amendment approved on committee level. SECTION 22: SECTION 24: The entire Section 22, SEPARATION FROM THE SERVICE FOR A CAUSE, was deleted. The following amendments were introduced under the COMPOSITION OF THE BOARD OF TRUSTEES: a) The City Administrator was deleted and changed to Any Department Head to be appointed by the City Mayor as Chairperson b) Department Head, CBO was deleted and changed to Any Department Head from Finance Departments as Vice Chairperson c) City Treasurer s Office (CTO) was deleted and the words Department Head were retained. d) City Accounting Office (CAO) was deleted and the Department Head was retained. e) Human Resource Management and Development Office (HRMDO) was deleted and the Department Head was retained. f) Chairperson, Committee on Finance, Ways and Means, Appropriations and Economic Enterprises was replaced with One representative from the Sangguniang Panlungsod. g) Two (2) 3 rd level officials to be appointed by the City Mayor was replaced with Department Head. h) The phrase to be appointed by the recognized Employees Association/Union was deleted and only the words One (1) 2 nd level representative will be retained. i) The phrase to be appointed by the recognized Employees Association/Union was deleted and only the words One (1) 1 st level representative will be retained. COMMITTEE ON FINANCE, WAYS & MEANS, APPROPRIATIONS AND ECONOMIC ENTERPRISE - JUNE 4,

6 j) President was deleted and replaced with Any officer from the General Santos City Government Employees Association k) Department Head was added. As to the representative of the Employees Association or Union, it was clarified that the entire body of the Provident Fund will elect from among the 18 officers of GSCGEA. The Chairperson and Vice Chairperson shall be appointed by the City Mayor. The Vice Chairperson shall be the Department Head of any of the finance units of the Local Government Unit of General Santos City. Thereafter, the phrases with the exception of the City Treasurer, who shall be automatically designated as Member of the Board and Treasurer of the Provident Fund and for the appointment and designation of the Board of Trustees were deleted. The following sentences were inserted: SECTION 28: a) All members of the Board of Trustees shall be elected by the members of the Provident Fund through a General Assembly. b) for the creation of the Interim Board of Trustees and designating its Chairperson and Vice Chairperson c) Establishment of the Provident Fund shall follow the procedural guidelines set in Section 6.0 of DBM Circular No The above-mentioned amendments were ruled as approved by the chair. Under the TERM OF OFFICE, the word appointed was replaced with elected and the phrase in Section 25, paragraphs (g) (h) and (i) was deleted. It shall now read as follows: Section 27. TERM OF OFFICE. - All elected members of the Board of Trustees shall hold office for a maximum term of two (2) years, provided that no such member may be designated/elected to the same position for more than three (3) consecutive terms. The same amendment was ruled approved by the chair. SECTION 31: Letters b to f were amended, to read as follows: b) Secretary - Elected from among the BOT members or designated from the general membership c) Treasurer Elected from among the BOT members or designated from the general membership d) Legal Counsel - He/She may be designated from among the staff of the agency s legal unit who is from the general membership, provided he/she is a member of the Integrated Bar of the Philippines. e) Auditor - Shall be elected from among the general membership and shall not be from among the members of the BOT f) Business Manager Any member of GSCGEA who shall be elected from among the general membership. The chair noted that the words designated under the Secretary, to be appointed by the City Mayor under the Treasurer, Legal Officer, CLO under the Legal Counsel, CIAS (to be designated by the BOT) under the Auditor, and Representative, GSCGEA under the Business COMMITTEE ON FINANCE, WAYS & MEANS, APPROPRIATIONS AND ECONOMIC ENTERPRISE - JUNE 4,

7 Manager were all deleted. Thereafter, the chair ruled the said amendments approved on committee level. SECTION 32: The last word and in Section 32.d was deleted and and will be added after Section 32.e. SECTION 36: On the second paragraph, Ms. Espinosa clarified that the compensation services stated herein do not refer to salaries but overtime services only of the support staff who are employees of the city government. Its legal basis can be found in Section 35. Meanwhile, the chair informed that the Sangguniang Panlungsod already approved the amount of P1 Million under Supplemental Budget No. 2 under the MOOE of the HRMDO. This appropriation is from the General Fund and not from the savings. Going back to Section 7, letter d, an amendment was introduced to replace the phrase except said employee is on leave due to justified illness with except said employee is on justified leave. The chair then ruled the said amendment approved on committee level. Thereafter, the chair ruled the proposed ordinance approved on committee level as amended and to be calendared on the next business day for second reading. APPROVED ON COMMITTEE LEVEL AS AMENDED FOR SECOND READING There being no more matter to be taken up, the hearing was declared adjourned at 4:06 in the afternoon. HEARING ADJOURNED Prepared by: JULIET A. DELA TORRE Stenographic Reporter III JOYCE A. CORUÑA Stenographic Reporter IV Edited by: JANET B. ZABALA Stenographic Reporter III Noted by: LOLITA P. PEDRO Division Chief, Journal & Minutes ATTESTED: ATTY. FRANKLIN M. GACAL, JR. City Councilor & Chairperson COMMITTEE ON FINANCE, WAYS & MEANS, APPROPRIATIONS AND ECONOMIC ENTERPRISE - JUNE 4,