COA CIRCULAR NO. 2009-001, February 12, 2009
RESTATEMENT WITH AMENDMENT OF COA CIRCULAR 87-278 AND COA MEMORANDUM 2005-027 RE: SUBMISSION OF COPY OF GOVERNMENT CONTRACTS, PURCHASE ORDERS AND THEIR SUPPORTING DOCUMENTS TO T…
1.1 Under Commission on Audit Circular Nos. 76-34 and 87-278, the
audited agencies are required to furnish the Auditor with a copy of
perfected contracts and purchase orders within five (5) working days
upon approval together with the supporting documents for review. To
facilitate the review and evaluation process, particularly on the
technical aspects COA Memorandum No. 91-704 was issued and was later
restated and updated by COA Memorandum No. 2005-027, defining the
documentary and information requirements, and providing therein the
checklists for all types of technical evaluation covered by the
memorandum.1.2 These issuances notwithstanding, it has been observed that
management’s submission of copies of perfected contracts and
supporting documents within the prescribed period had not been complied
with and is, at times, lacking in basic supporting documents. In view
of these circumstances and the irregularities discovered in government
contracts, it has become imperative to reiterate the submission of the
requirements to implement a systematic and effective review process
with a view of generating timely and relevant audit results.
2.0 COVERAGE
2.1 This circular shall cover all contracts, purchase orders and
the like, entered into by any government agency irrespective of amount
involved.
3.0 SUBMISSION AND REVIEW PROCESS
3.1 Contracts
3.1.1. Within five (5) working days from the execution of a
contract by the government or any of its subdivisions, agencies or
instrumentalities, including government-owned and controlled corporations and their subsidiaries, a copy of said contract and each of all
the documents forming part thereof by reference or incorporation shall
be furnished to the Auditor of the agency concerned. In case of agencies
audited on an engagement basis, submission of a copy of the contract
and its supporting documents shall be to the Auditor of the mother
agency or parent company, as the case may be.3.1.2 The copies of documents required to be submitted shall include but not limited to the following:
a. Invitation to Apply for Eligibility and to Bid;
b. Letter of Intent;
c. Eligibility Documents and Eligibility Data Sheet;
d. Eligibility Requirements;
e. Results of Eligibility Check/Screening;
f. Bidding Documents (Sec. 17.1, IRR-A, RA 9184);
g. Minutes of Pre-bid Conference, if applicable;
h. Agenda and/or Supplemental Bid Bulletins, if any;
i. Bidders Technical and Financial Proposals;
j. Minutes of Bid Opening;
k. Abstract of Bids;
l. Post Qualification Report of Technical Working Group;
m. BAC Resolution declaring winning bidder;
n. Notice of Post Qualification;
o. BAC Resolution recommending approval;
p. Notice of Award;
q. Contract Agreement;
r. Performance Security;
s. Program of Work and Detailed Estimates;
t. Certificate of Availability of Funds, Obligation Request;
u. Notice to Proceed
v. Such other documents peculiar to the contract and/or to the
mode of procurement and considered necessary in the auditorial review
and in the technical evaluation thereof.3.1.3 For technical review purposes, submission of contracts and
their supporting document shall furthermore be guided by the specific
documentary requirements outlined in the attached checklist marked as
Annexes “A” to “T” of this circular.3.1.4 The Auditor shall review the contract within a period
ranging from five (5) to twenty (20) working days from receipt,
depending on the complexity of the contract. The auditorial review shall
consist in the evaluation of compliance with the requirements of
applicable laws, rules and regulations, completeness of documentary
requirements and an initial evaluation that the contractual covenants
are not disadvantageous to the government. Without waiting for the lapse
of the period herein established, the Auditor concerned shall call the
immediate attention of management regarding defects and deficiencies
noted in the contract and suggest such corrective measures as are
appropriate and warranted. Where the defect or deficiency is not
susceptible of rectification and renders the contract totally or
partially void, the head of the agency shall be notified within
twenty-four (24) hours from such determination indicating the reasons
therein.3.1.5 Within five (5) working days after the auditorial review,
the Auditor shall forward the contract and its supporting documents for
technical review to the Technical Audit Specialist (TAS) assigned in
the auditing unit/cluster or to the Regional Technical Services Office
(RTSO), as the case may be, accompanied by the relevant checklist of
documentary requirements mentioned in item 3.1.3 hereof.3.1.6 The TAS shall complete the technical review thereof as
follows:
3.1.7 The procedures and timeless herein outlined shall also
apply to supplementary contracts, variations orders and the like.3.2 Purchase Orders
3.2.1 A copy of any purchase order irrespective of amount, and
each and every supporting document, shall, within five (5) working days
from issuance thereof, be submitted to the Auditor concerned. Within the
same period, the Auditor shall review and point out to management
defects and/or deficiencies, if any, in the same manner provided in the
second and third sentences of item 3.1.4 hereof.3.2.2 In case of doubt as to the reasonableness of the price of
the items purchased, the Auditor shall conduct a canvass thereof making
use of price references provided, among others, by legitimate suppliers,
the Procurement Service, the Technical Services Office, other
government agencies with similar procurement and those posted in the
internet.
4.0 PENALTY CLAUSE
4.1 Any unjustified failure of the officials and employees
concerned to comply with the requirements herein imposed shall be
subject to the administrative disciplinary action provided in (a)
Section 127 of Presidential Decree No. 1445: (b) Section 55, Title I-B,
Book V of the Revised Administrative Code of 1987; and (c) Section 11 of
Republic Act No. 6713.4.2 Upon receipt of information or discovery by the auditor of such
failure by management to comply with the required submission, an
Audit Observation Memorandum shall be issued by him calling the
attention of the latter, and requesting compliance, else the
transactions covered by the unsubmitted documents suspended in audit and
the penalty prescribed by law under 4.1 be enforced.
5.0 REPEALING CLAUSE
All COA circulars and memoranda inconsistent herewith are hereby revoked, amended or modified accordingly.
6.0 EFFECTIVITY
This Circular shall take effect 15 days after the publication in two (2) newspapers of general circulation in the Philippines.
Adopted: 12 Feb. 2009
(SGD.) JUANITO G. ESPINO, JR.
Commissioner
(SGD.) REYNALDO A. VILLAR
Chairman