COA CIRCULAR NO. 2009-002, May 18, 2009
REINSTITUTING SELECTIVE PRE-AUDIT ON GOVERNMENT TRANSACTIONS
1.0
Rationale
1.1 It is the declared policy of the State that all resources of the
government shall be managed, expended or utilized in accordance with law
and regulations and safeguarded against loss or wastage resulting from
illegal or improper disposition, with a view of ensuring efficiency,
economy and effectiveness in the operations of government. The primary
responsibility for faithful adherence to this policy rests with the
chief or head of the government agency concerned (Cf. Sec.2, P.D. No.
1445).
1.2 Consistent with such policy and in pursuance of the
constitutional mandate vesting in the Commission on Audit the exclusive
authority to define the scope of its audit and examination, establish
the techniques and methods required therefore, and promulgate accounting
and auditing rules and regulations [Sec. 2 (2), Article IX-D, 1987
Constitution], the Commission, under COA Circular No. 95-006 dated May
18, 1995, lifted all pre-audit activities that were then performed on
financial transactions.
1.3 Recent developments, however, necessitate the revisiting of the
present policy of examining government transactions strictly on a
post-audit basis in view of the rising incidents of irregular, illegal,
wasteful and anomalous disbursements of huge amounts of public funds and
disposal of public property. An assessment of the risk-prone areas
(using the risk-based audit approach) in government operations and the
marked inadequacy in internal controls as exemplified by the frequency
of anomalies uncovered or reported likewise point to the need to
consider restoring pre-audit as a deterrent against the resurgence of
the observed maladies. Further, adequate safeguards need to be observed
by the auditor to ensure that the agency accepts all responsibility for
(i) establishing and monitoring internal controls, (ii) making all
management decisions with respect to the design, implementation, and
maintenance of the internal controls, (iii) evaluating the adequacy and
results of the design, implementation, and maintenance of the internal
controls, and (iv) the data used or generated by the financial reporting
process.
1.4 For these reasons and in consonance with the power of the
Commission on Audit to adopt such measures as are necessary and
appropriate to correct the deficiencies, this Commission hereby
reinstitutes selective pre-audit, subject to periodic review and
assessment of the effectiveness and coverage thereof in accordance with
the risk-calibrated agency audit framework.
2.0
Definition and General Scope of Pre-Audit and Post Audit
2.1 Pre-audit is the examination of documents supporting a
transaction or series of transactions before these are paid for and
recorded.
Pre-audit operates to:
2.1.1 determine that the proposed expenditure is for a purpose in
compliance with the appropriation law, other specific statutory
authority and regulations;
2.1.2 assure that sufficient funds are available to enable payment of the claim;
2.1.3 initially determine that the proposed expenditure is not
illegal, irregular, extravagant, excessive, unconscionable or
unnecessary;
2.1.4 determine that the transaction is approved by proper authority and duly supported by authentic underlying evidences.
2.2 Post audit covers the same areas and supplemented by tracing the
transaction under audit to the books of accounts. It also includes a
final determination that the transaction is not illegal, irregular,
extravagant, excessive, unconscionable or unnecessary. In general and
wherever practical, the scope of post audit work covers all areas
identified in the risk assessment and embraces financial, compliance,
and value-for-money audits. Transactions subject to pre-audit shall be
post audited without re-performing the audit procedures previously
undertaken in pre-audit, unless there is compelling reason to re-perform
the same.
3.0
Coverage
3.1 Pre-audit shall be selectively reinstituted in national
government agencies, local government units, and government-owned and
controlled corporations with original charters, as indicated in the
attached list marked as Annex A[*] and made integral part hereof, with any, some or all of the following transactions:
3.1.1 cash advances;
3.1.2 payments of salaries and terminal leave benefits;
3.1.3 payments for infrastructure projects;
3.1.4 payments for road right-of-way;
3.1.5 payments for procurement of capital assets, goods and services;
3.1.6 payments made thru automatic debit advice (ADA);
3.1.7 releases of funds to NGOs/POs;
3.1.8 transfers of funds between government agencies subject to the exceptions provided in item 4.8;
3.1.9 disbursements from trust funds of local government units, as limited in item 4.9;
3.1.10 disposal of real property and unserviceable property, subject to the limitations provided in item 4.10.
3.2 Subsequent identification of the national government agencies,
local government units and government-owned and controlled corporations
and their respective transactions that may be included or excluded in
pre-audit shall proceed from the results of an evaluation of the
internal control system put in place and operating in each agency.
Such evaluation shall be undertaken by the Supervising Auditors
(SAs) or Audit Team Leaders (ATLs) with the results thereof reviewed
and validated by the Cluster Director or Regional Director before
elevating the same, through the Assistant Commissioner or other
authorized official concerned, to the Oversight Committee created in
item 10.0 hereof.
3.3 National high schools, government-owned and controlled
corporations audited under the team approach, and barangays shall be
initially exempt from pre-audit.
4.0
Specific Scope of Pre-Audit Activities
4.1 Cash advances
4.1.1 Except for cash advances for payroll, intelligence funds,
petty cash funds, and those granted for local travel expenses of
officers and employees, all other cash advances including those for
foreign travels funded out of the local funds regardless of amount shall
pass through pre-audit.4.1.2 The liquidation of cash advances shall first be audited and
the corresponding Credit Notice issued before the same shall be taken up
in the books.4.1.3 The grant of cash advances and their liquidation shall be
governed by the following guidelines and by the provisions COA Circular
No. 97-002 dated February 10, 1997, which are not inconsistent herewith:(i) No cash advance shall be given unless for legally authorized specific purpose.
(ii) No additional cash advance shall be allowed to any official or
employee unless the previous cash advance given to him is first
liquidated and accounted for in the books.
(iii) A cash advance shall be liquidated/reported on as soon as the purpose for which it was granted has been served.
(iv) Except for cash advances for travel, no officer or employee
shall be granted cash advance unless he is properly bonded in accordance
with law or regulations. The amount of cash advance which may be
granted shall not exceed the maximum cash accountability covered by his
bond.
(v) Only permanently appointed and duly designated disbursing
officers shall be granted cash advance. However, these requirements
shall not apply to cash advances for travel.
(vi) Transfer of cash advance from one accountable officer to another shall not be allowed.
(vii) The cash advance shall be used solely for the specific purpose
for which it was granted. Under no circumstance shall it be used for
encashment of checks or for liquidation of a previous cash advance.
(viii) No cash advance shall be granted for payments on account of
infrastructure projects or other undertaking on a project basis.
(ix) Cash advance for special time-bound undertaking shall be
liquidated by the accountable officer concerned within one month from
the date the purpose of the cash advance was accomplished.
(x) Cash advances which are no longer needed or have not been used
for a period of two months shall be returned to or deposited immediately
with the proper collecting officer or treasurer.
(xi) All cash advances shall be fully liquidated at the end of each
year. Except for petty cash fund, the accountable officer shall refund
any unexpended balance to the cashier/collecting officer who shall issue
the necessary official receipt.
4.2 Payment of salaries and terminal leave benefits
4.2.1 Pre-audit of payments of salaries shall apply only to the
first payment after appointment by transfer or reinstatement, and to the
last payment prior to transfer.4.2.2 All payments of terminal leave benefits shall be subject to pre-audit.
4.3 Infrastructure projects
4.3.1 Infrastructure projects include the construction,
improvement, rehabilitation, demolition, repair, restoration or
maintenance of roads and bridges, railways, airports, seaports,
communication facilities, civil works components or information
technology projects, irrigation, flood control and drainage, water
supply, sanitation, sewerage and solid waste management systems, shore
protection, energy/power and electrification facilities, national
buildings, school buildings, hospital buildings, and other related
construction projects of the government [Section 5 (n), IRR-A of R.A.
No. 9184)]4.3.2 All infrastructure project with contract amounts falling
under the categories outlined below shall be covered by pre-audit.For national government agencies:
(i) Department/Bureau/Agency Main/Central/Head Offices,
General Headquarters, Project Management Offices – P25 million and above
(ii) Regional Offices/Operating Units/Area Commands/Field Offices or their equivalents – P10 million and above
(iii) Provincial /District/Division/Satellite Offices – P2 million and above
(iv) Tertiary and/or specialized hospitals – P5 million and aboveFor local government units:
(i) Cities within Metro Manila, other highly urbanized cities and first class provinces – P5 million and above
(ii) Provinces/cities below first class – P3 million and above
(iii) Municipalities – P1 million and aboveFor government-owned and/or controlled corporations/government financial institutions
(i) Head Offices, Project Management Offices – P25 million and above
(ii) Regional/Provincial Branches/Field Offices – P10 million and above4.3.3 Only the advance payments granted to contractors as well as
the first and last progress billings of contracts for infrastructure
projects the contract amount of which fall within the threshold as above
indicated shall be subject to pre-audit. First progress billing
represents claims made for the first collection on the work accomplished
in a particular project. In the pre-audit of the last progress billing,
all previous payments shall be considered.4.3.4 All first payments of progress billings under a change
order, extra work order, supplemental agreement, or any other form of
variation order related to contracts subject to pre-audit under item
4.3.2, shall likewise be subject to pre-audit. However, where the amount
of the variation order brings a contract not previously covered by
pre-audit within the threshold established in item 4.3.2, the first
payment under the variation order as well as the last progress billing
of the original contract, as modified or amended by the variation order,
shall be subject to pre-audit. All claims of contract price
escalations regardless of the amount shall be subject to pre-audit
taking into consideration the guidelines provided in Government
Procurement Policy Board Circular No. 03-2008 dated August 20, 2008 and
such other existing regulations on the matter.4.3.5 Inspections of construction project accomplishments shall be
mandatory on the payment for the first and last progress billings. The
Auditor may, however, conduct random on-the-spot inspection of on-going
infrastructure projects or request inspection of projects at any time he
may deem necessary.4.3.6 The auditor shall review the completeness of the supporting
documents, its terms and conditions, the bidding procedures, necessity
and validity of other alternative modes of procurement and manner of
award to the winning bidder/contractor and such other relevant
requirements provided in RA No. 9184 and its implementing rules and
regulations. Whenever practicable, the SA/ATL or the Technical Audit
Specialist (TAS) after due referral, shall evaluate the reasonableness
of the cost of the project or activity immediately upon receipt of the
contract as provided in item 6.6 hereof. Provided that the final
determination of such reasonableness shall in no case extend beyond
twenty-one (21) working days from the time the contract and complete
supporting documents are submitted for technical review.4.3.7 These pre-audit guidelines shall equally apply to
infrastructure projects undertaken in areas declared as under a state of
emergency or calamity.
4.4. Payments for road right-of-way
4.4.1 All claims for road right-of-way shall be subject to
pre-audit taking into consideration the provisions of RA No. 8974 and
its implementing rules and regulations.
4.5 Procurement of capital assets, goods and services
4.5.1 Procurement of capital assets shall include land and building.
4.5.2 Procurement of goods and services includes acquisition of
supplies, materials, general support services, labor, equipment and
motor vehicles by the government, regardless of the source of fund. For
this purpose, procurement of construction materials for projects
implemented by administration shall be treated as procurement of goods
and services and shall be subject to the same rules herein provided
taking the total project cost, and not the individual transactions, as
basis of its coverage in or exclusion from pre-audit.4.5.3 General support services shall include only those which are
recurring and fixed in nature, such as but not limited to rentals,
janitorial and security services, and solid waste management regardless
of the amount involved. Only the first payment for said services shall
be subject to pre-audit. First payments involving extension of contracts
shall also be pre-audited.4.5.4 First and last payments of contracts entered into through
any of the various modes of procurement involving an amount of at least
P2 million for national government agencies, government-owned and/or
controlled corporations, cities within Metro Manila, other highly
urbanized cities and first class provinces, P1 million for
provinces/cities below first class, and P500,000.00 for municipalities,
shall be subject to pre-audit. Procurement between government agencies
and instrumentalities shall be exempt from pre-audit.4.5.5 Procurement of goods and services to address natural
calamities or emergencies shall be subject to pre-audit except
procurement involving life saving medicines, food and other similar
items which shall be exempt from pre-audit.
4.6 Payments made thru automatic debit advice (ADA)
4.6.1 For foreign-funded or locally funded infrastructure projects
that shall be paid through ADA, pre-audit shall be performed on the
documents to be submitted as basis for payment, such as but not limited
to the approved disbursement vouchers, if applicable, statement of
expenditures, list of due and demandable accounts payable and their
supporting documents.4.6.2 For procurement paid through ADA, pre-audit shall be
performed on the approved disbursement voucher duly supported by the
regular documentary requirements for the specific transaction.
4.7 Releases to NGOs/POs
4.7.1 All releases of funds to NGOs/POs shall be subject to
pre-audit. The audit shall be carried out taking into consideration the
requirements and guidelines provided in COA Circular No. 2007-001 dated
October 25, 2007 and subsequent amendments thereto.4.7.2 No subsequent releases shall be made unless the previous
release is liquidated, and the liquidation documents are post-audited
and properly taken up in the books.
4.8 Transfer of funds between and among government agencies
4.8.1 All transfers of funds either thru funding check or bank
transfer between and among bank accounts of government agencies or
between different bank accounts of the same government agency
regardless of amount shall be subject to pre-audit.4.8.2 Fund transfers within and between government banks, transfers
of funds to address an emergency or calamity, releases of NCAs by the
Department of Budget and Management, and releases of NTAs from
department/central offices to operating units shall be exempt from
pre-audit. Fund transfers within and between government banks shall
refer to normal routinary bank transactions specifically interbranch
withdrawals/deposits, deposits to comply with reserve requirements,
telegraphic transfers/quick cash, cash transfers from cash centers to
branch and vice-versa, overseas remittances, payment of interbank
foreign borrowings, swap transactions, payment of foreign exchange cover
fees, guarantee fee, commitment fee to the National Government
remittance of collection pertaining to other government agencies,
maturities of clients’ placements and other transactions of their
respective working funds paid electronically to meet the real time
settlement.
4.9 Disbursements from trust funds of local government units
4.9.1 The pre-audit of trust funds of local government units shall
only cover disbursements of the trust funds received from the national
government or from government-owned and controlled corporations.
4.10 Disposal of real property, unserviceable property and those no longer needed
4.10.1 Pre-audit of disposal of real property shall cover only
all those undertaken through negotiated sales involving an amount of at
least P1 million.4.10.2 Negotiated sale of acquired assets of government financial
institutions amounting to at least P50 million, except those disposed
to previous owners in the exercise of their right of redemption, shall
be subject to pre-audit.4.10.3 For unserviceable property and those no longer needed,
only negotiated sales involving an amount of at least P500,000.00
whether valued individually or by lot shall be subject to pre-audit.4.10.4 Negotiated sale of property covered by Section 380 of RA
No. 7160 otherwise known as the Local Government Code of 1991 shall be
governed by the following rules:(i) Unserviceable property and property no longer needed may be
disposed at a private sale at such price as may be determined by the
committee on awards, subject to the approval of the Commission on Audit
or its duly authorized representatives when the acquisition or transfer
cost exceeds fifty thousand (P50,000.00) pesos in the case of provinces
and cities, and twenty five thousand (P25,000.00) pesos in the case of
municipalities and barangays. In the case of real property, the disposal
shall be subject to the approval of the Commission on Audit regardless
of the value or costs involved.(ii) Approval of the disposal of unserviceable property and property no longer needed in private sale shall be as follows:
longer needed with book value/acquisition cost not exceeding
P1,000,000.00 in each case.(iii) The value of the property declared to be unserviceable or no
longer needed should be appraised by a qualified COA Technical Property
Inspector or by a committee composed of Technical Property Inspectors,
as determined by the TSO Cluster Director, for cases within Metro
Manila, or the Regional Director, for cases in the regions, before
approval of the sale.(iv) Whenever there exists a doubt as to the reasonableness of the
price of the unserviceable property or property no longer needed, the
same must be submitted to the Technical Services Office for review and
appropriate action.
5.0
Responsibility to Conduct Pre-Audit
5.1 Pre-audit shall, in addition to the existing duties and
functions, be the responsibility of the head of the auditing unit/audit
team. In an auditing unit where a Supervising Auditor (SA) and Audit
Team Leader(s) (ATLs) are assigned, the pre-audit functions shall be
discharged by the SA. Pre-audit functions in all other auditing units
headed by ATLs whether or not placed under the supervision of SAs shall
be carried out by such ATLs.
5.2 In case of absence of the person duly authorized in item 5.1 to
perform pre-audit for one (1) to five (5) working days, he shall
designate an officer-in-charge who shall temporarily perform the
pre-audit functions. A copy of such designation shall be furnished to
the Cluster Director or Regional Director concerned for information and
record. Where the SA or ATL, as the case may be, is absent for more than
five (5) working days but not more than thirty (30) working days, the
designation shall be done by the Cluster Director or Regional Director,
and in excess of thirty (30) working days, by the Chairman.
6.0
Duties and Responsibilities of Agency Officials
Agency officials concerned shall:
6.1 Ensure that no transactions covered by this circular are paid out
without evidence of the audit action of the SA/ATL as required herein.
6.2 Submit to the SA/ATL concerned all disbursement vouchers/documents for claims subject to pre-audit.
6.3 Submit to the SA/ATL the advices/instructions including, among
others, MOAs and MUOs and their supporting documents for transfers of
funds subject to pre-audit under item 4.7 hereof.
6.4 See that cash advances granted are liquidated within the
prescribed period and liquidation submitted to the SA/ATL concerned
within ten (10) days from the date the liquidation document is received
from the accountable officer.
6.5 Maintain complete and up-to-date subsidiary records of cash
advances for each accountable officer to record the cash advances
granted and liquidated.
6.6 Submit to the SA/ATL concerned copies of contracts,
purchase/letter orders, loan agreements, bond flotation/certificates of
indebtedness, whether domestic or foreign, and appraisal reports of
property for disposal including all supporting documents required in COA
Circular No. 2009-001 dated February 12, 2009 and its annexes, for
review, within five (5) days from their perfection.
6.7 Ensure that the disbursement vouchers are duly supported with the
requisite documents for each specific claim and accompanied by a duly
accomplished relevant checklist for technical review as provided in COA
Circular No. 2009-001 dated February 12, 2009 as well as the
requirements enumerated in item 4.4 of COA Circular No. 2007-001 (for
releases to NGOs/POs) and its subsequent amendments, if any. If the
supporting documents have been previously furnished to the auditor
pursuant to item 6.6, such fact shall be indicated in the accompanying
document checklist. Any deficiency in the supporting documents shall
cause the return of the documents without action, within twenty-four
(24) hours, for completion or rectification of the deficiency.
6.8 See that no splitting of requisitions, purchase orders,
vouchers, and the like, is resorted to, in order to circumvent the
control measures provided in this circular and other laws and
regulations. For this purpose, a project funded under a single
obligating authority and implemented in several phases whether by the
same or different contractors shall be deemed splitting of contracts.
6.9 Furnish the auditor copies of delivery documents within
twenty-four (24) hours after acceptance of deliveries of goods and
services, regardless of whether or not the transaction is subject to
pre-audit.
6.10 Ensure that negotiated sale of real property, unserviceable
property and those no longer needed are resorted to only under
circumstances authorized by existing laws and regulations.
6.11 Submit the agency’s Annual Procurement Plan and amendments thereto within the first quarter of each year.
6.12 Maintain a separate record/logbook of all transactions subject to and submitted to the SA/ATL for pre-audit.
7.0
Duties and Responsibilities of COA Officials and Representatives
7.1 Counted from the time of receipt of the complete transaction
documents, act on the transactions subject to pre-audit within five (5)
working days for infrastructure projects, procurements and disposals
requiring technical evaluation, and within two (2) working days for
other transactions subject to pre-audit.
7.2 Conduct periodic evaluation of the accountability of the
accountable officer and recommend reduction of the cash advance if found
excessive.
7.3 Monitor the grant and liquidation of cash advances subject to pre-audit.
7.4 Without prejudice to the conduct of a surprise cash examination
as the SA/ATL may deem appropriate, issue demand letter upon failure of
the accountable officer to liquidate his cash advance within two (2)
months for accountable officers holding office within the station and
three (3) months for accountable officers outside the station, from the
dates specified in item 4.1.3 (ix), (x) and (xi).
7.5 Recommend for the withholding of the payment of any money due the
accountable officer if no liquidation or explanation is received or the
explanation received is not satisfactory.
7.6 Initiate the filing of a criminal case against the accountable
officer for failure to settle his accounts in the manner outlined below:
7.6.1 Execute an affidavit stating the nature/purpose of the cash
advance; the amount not liquidated/accounted for; the fact that no
liquidation or explanation has been submitted despite demand or if
explanation has been submitted, the same is not satisfactory; the date
the letter of demand was served on or received by the AO; and other
information which may be pertinent to the case.7.6.2 State in the affidavit the violation of the provisions of
Section 89 of P.D. No. 1445 and the penal provisions under Section 128
of the same law, both of which are herein quoted in full to wit:“Section 89. Limitations on Cash Advance – No cash advance
shall be given unless for a legally authorized specific purpose. A cash
advance shall be reported on and liquidated as soon as the purpose for
which it was given has been served. No additional cash advance shall be
allowed to any official or employee unless the previous cash advance
given to him is first settled or a proper accounting thereof is made.”“Sections 128. Penal Provision – Any violation of the provisions of Section xxx 89, xxx of this code or any regulation issued by the Commission implementing
these sections, shall be punished by a fine not exceeding one thousand
pesos or by imprisonment not exceeding six (6)months, or both such fine
and imprisonment at the discretion of the court.”7.6.3 The affidavit shall be submitted to the COA Director
concerned who shall refer the case to the appropriate Office of the
Deputy Ombudsman, if the offense is committed in the regions or to the
COA Legal Services Sector for the filing of criminal proceedings before
the Office of the Ombudsman, if the offense is committed within
Metropolitan Manila area, in accordance with paragraphs 3.1.1 and 3.2,
respectively of COA Memorandum No. 95-112 dated December 26, 1995.
7.7 See that all inspection and evaluation of project accomplishment,
deliveries of supplies, materials and equipment, evaluation of
variation orders, price escalation adjustments and road right-of-way
acquisitions, are made in accordance with auditing rules and regulations
on the matter.
7.8 Strictly enforce compliance with the requirement for submission
of copies of contracts and appraisal reports including their supporting
documents as provided herein.
7.9 Immediately advice the release and confirm the receipt of funds from the audited agency to another agency.
7.10 Maintain a separate record/logbook of all transactions received for pre-audit including the actions taken thereon.
7.11 Conduct post-audit of transactions and accounts in accordance
with the risk-based audit approach taking into consideration the result
of pre-audit;
8.0
Evidence of Audit Action
Pre-Audit Stamp
8.1 The pre-audit action shall be evidenced by a pre-audit stamp with
the following words impressed upon the face of the disbursement voucher
or disposal contract and their supporting documents: Pre-audited pursuant to COA Circular No. ______ dated _______ (See Annex B[*]), duly signed and dated by the auditor.
8.2 The pre-audit stamp shall be placed only after the upfront audit
procedures are undertaken, including, among others, the review of the
legal aspects of the transaction or contract to determine whether the
requirements of applicable laws, rules and regulations were
substantially complied with and initial determination has been made that
the transaction or contract is not illegal, irregular, extravagant,
excessive, unconscionable or unnecessary, as the case may be. The
pre-audited disbursement voucher or disposal contract and its supporting
documents shall be returned to the agency duly stamped in accordance
with item 8.1 on each and every page of the documents submitted. The
pre-audit action shall not be a bar to further determination as to the
approval or allowance of the transaction in post audit.
8.3 In case of deficiencies or defects noted, the
disbursement voucher and its supporting documents shall be returned to
the head of the agency concerned within twenty-four (24) hours from such
determination informing him of the action taken and indicating the
reasons therein (Annex C[*])
8.4 Without waiting for the submission of claims for first payments,
the SA or ATL concerned shall immediately refer the infrastructure
contract to the technical audit specialists of the auditing unit/cluster
or of the Technical Services Office or Regional Technical Service
Division, as the case may be, for review of the technical aspects
including the reasonableness of the price within five (5) days after the
review of the legal aspects. Provided that contracts determined by the
Auditor to be legally infirm need not be referred for technical review
and shall be returned to the head of the agency in accordance with item
8.3 above.
8.5 Except as provided in the second sentence of item 8.4, all other
contracts requiring technical evaluation may likewise be referred for
review in the same manner provided in the first sentence thereof, as may
be deemed necessary and consistent with the risk-based audit approach.
Credit Notice for Cash Advances, Transfer of Funds Between Government Agencies and Releases to NGOs/POs
8.6 Upon liquidation, the SA or ATL shall, within thirty (30) days
from receipt of the liquidation report and supporting documents,
complete the audit and issue Credit Notice (Annex D[*])
addressed to the accountable officer to inform the latter of the amount
allowed in audit. In case of suspension or disallowance, a notice of
suspension or disallowance shall be issued. The amount allowed in audit
as contained in the Credit Notice shall be deemed to have been settled.
8.7 Subsequent cash advances, transfer of funds between government
agencies and releases to NGOs/POs shall be granted only after the
issuance of Credit Notice for the previous cash advance.
9.0
Appeal Procedure
9.1 Any party aggrieved by the decision of the auditor on claims or
transactions submitted for pre-audit may avail of the appeal remedy
outlined in the Revised Rules of Procedure of the Commission on Audit.
10.0
Oversight Committee
10.1 The Assistant Commissioners’ Group constituted under COA
Resolution No. 2008-012 dated October 10, 2008 is hereby designated to
act as Oversight Committee to monitor and periodically evaluate the
implementation of the selective reinstitution of pre-audit.
10.2 The Oversight Committee shall have the authority and
responsibility to recommend, for consideration by the Commission Proper,
the inclusion of certain kinds of transactions or the exclusion of
those previously included in the coverage of pre-audit. The initiative
to include or exclude certain transactions in pre-audit shall originate
from the SAs or ATLs, duly validated by the Cluster Director or Regional
Director concerned. The Oversight Committee shall evaluate the proposal
and if found to be meritorious it shall recommend the same for
consideration by the Commission Proper. Otherwise, the proposal shall be
returned to the SA/ATL through the Assistant Commissioner or other
authorized official concerned indicating the reasons therein. The
Oversight Committee may, however, motu proprio initiate and recommend the inclusion or exclusion of transactions subject to pre-audit.
10.3 It shall also develop a mechanism for evaluating the progress of
agencies in enhancing their internal control structures as well as the
process by which said agencies may be exempted from, or those previously
exempted may be placed under the coverage of selective pre-audit using
the risk-calibrated agency audit framework. The mechanism and the
guidelines therefor duly approved by the Commission Proper shall be
disseminated to the Assistant Commissioners, Cluster Directors, Regional
Directors, SAs and ATLs for their guidance in making recommendations
for exemptions from or inclusions in the coverage of pre-audit.
11.0
Penalty Clause
11.1 Any violation of the rules prescribed in item 4.1 shall render
the accountable officer concerned liable under Section 128 in relation
to Section 89 of Presidential Decree No. 1445, and/or other applicable
laws and administrative regulations.
11.2 Transactions or claims covered by this circular but not
submitted for pre-audit, shall be a ground for initiating administrative
disciplinary action in accordance with Section 127 of Presidential
Decree No. 1445 and Section 55, Title I-B, Book V of the Revised
Administrative Code of 1987, without prejudice to the disallowance of
the transactions in post audit, if warranted.
Repealing Clause
All COA circulars and memoranda inconsistent herewith are hereby revoked, amended or modified accordingly.
13.0
Effectivity
This circular shall take on July 1, 2009.
Adopted: 18 May 2009
(SGD.) JUANITO G. ESPINO, JR.
Commissioner
(SGD.) REYNALDO A. VILLAR
Chairman
[*] Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City