COA flags San Fernando over hiring irregularities

The Commission on Audit (COA) has cited the Municipality of San Fernando for irregularities in its hiring of job order (JO) workers, noting the absence of formal procedures, lack of written contracts, and the payment of wages below the prescribed minimum.

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In its 2024 Annual Audit Report, COA said the local government unit (LGU) employed 466 of its 550 workers—or about 85 percent of its total workforce—under job order arrangements despite having no internal policies or guidelines governing recruitment, wage setting, and employment conditions. Only 84 workers held permanent or co-terminus plantilla positions.

While Daily Time Records (DTRs) and accomplishment reports were submitted to support payroll processing, auditors found that no formal job order contracts were executed between the municipality and its JO workers.

Instead, the LGU relied on memorandum orders signed by the mayor and the workers, which officials believed were sufficient to justify employment and compensation, COA said.