f pues! OF REPRESENTATIVES
RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

RECIETM TON U
BILLS AND INDEX SEAMIOE

2
HOUSE BILL NO. 782

Introduced by Representative Harlin Neil J. Abayon III

EXPLANATORY NOTE

Auditors are instrumental in protecting and preventing intentional behavior and actions
that undermine the will of the people, waste of public funds and resources and discourage
accountability and transparency. The sensitive nature of the work of slate of auditors makes them
vulnerable to outside forces that challenge their principles. If not well-compensated, they are
likely to commit fraud or indiscretions to accommodate the request of unscrupulous and self-
serving individuals in exchange for a sum of money. One way to protect our auditors against this,
system is by providing them with monetary incentives equal to the worth of their specialized
profession, which this bill seeks to promote

This measure was previously filed by Senator Manny Villar in the 15"* Congress. Passage
of this bill is earnestly sought now in the 17" Congress.

HAI IL J. ABAYON II
Representative
Party-List AANGAT TAYO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

2
HOUSE BILL NO. 782

Introduced by Representative Harlin Neil J. Abayon III

AN ACT
GRANTING ADDITIONAL COMPENSATION IN THE FORM OF SPECIAL
ALLOWANCE FOR THE OFFICERS AND EMPLOYEES OF THE
COMMISSION ON AUDIT (COA) AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled

SECTION 1. Statement of Policy. — The function of the Commission on Audit (COA) which
embraces all matters relating to auditing procedures, systems and controls, maintenance of the
general accounts of the government, the preservation and safekeeping of transaction vouchers
relative to government endeavors, the examination and inspection of the hooks of accounts,
records and relevant documents, the audit and settlement of funds and properties of all
accountable officers, for purpose of safeguarding the government's coffers from wastage, is
hereby affirmed and recognized

SEC 2. COA’s Independence. ~ The effectiveness of the discharge by COA of its delicate and
awesome responsibilities is inextricably linked to the degree of independence it envoys. To be
able to preserve its independence, the COA needs to be insulated from any control and
unwarranted influences. As vibrant partner in nation building, the COA needs to be free from
any partisan influence and political pressure so that it can institute and enforce fiscal control
within the overall framework of public fiscal administration towards the realization of
‘government goals and objectives

SEC 3. Fiscal Autonomy. — The General Appropriations Act authorized independent
constitutional commissions and offices enjoying fiscal autonomy, such as COA, to fix and
determine the salaries, allowances, and other benefits of their personnel within the limits of their
respective appropriations, notwithstanding any provision of law to the contrary.

SEC 4. Grant of Special Allowance. — Pursuant to the declared policy of the Act and in order to
maintain the COA’s independence, there is a need to keep a roster of efficient, dedicated and
globally competitive State Auditors, by providing them with incentives commensurate to their
positions and intricate functions, Additionally, to give more meaning and recognition to the
sensitive and peculiar nature of the functions of the COA as praetorian of the national treasury
and in acknowledging its fiscal autonomy, all officials and employee of the COA shall be
granted special allowances in amounts to be determined by the Secretary of the Department of
Budget and Management (DBM) and the Chairman of the Commission. The grant of the said
special allowance shall not exceed one hundred percent (100%) of the basic salary proportionate
to the salary grades of the officials and employees concerned as provide in the Republic Act No.
6758, otherwise known as the Salary Standardization Law, as amended.


SEC 5. Appropriations, — The amount necessary for the initial implementation of the Act shall
be charged against the current fiscal year’s appropriations under the budget of the Commission
Thereafter, such sums as may be necessary for the continued implementation of this Act shall be
included in the Annual General Appropriation Act

SEC 6. Addition Funding Source. ~ The additional funding sources of the amount necessary to
implement the additional compensation in the form of special allowances granted under this Act
shall be as follows:

1. From savings generated by the COA in its operation;

2. From fees collected by COA in performing

a. Audit and related services to government-owned and controlled corporations
(GOCCS) and local government units (LGUs)

b. Services rendered to private entities audited in connection with their dealings with the
government arising from subsides, counterpart funding by the government, or where
audited records become the basis for government levy and share; and

c. Audit and related services arising from contracts with government entities and
international organizations

3. From income sourced through imposition of filing fees on cases filed before the COA in
the exercise of its quasi-judicial function,

4. Collection through imposition of fines on administrative cases.

5. From income collected through the use of COA facilities such as dormitories, gym and
training centers.

6. From income sourced through the conduct of seminars and lectures. The amounts
collected pursuant to this section shall constitute and shall be deposited as Special Trust
Fund which shall be administered by the Chairman of the Commission to carry out the
provisions of this Act

SEC 7. Effects of Subsequent Salary Increases. — In the event that subsequent increases in the
salary rates provided under Republic Act No. 6758, as amended, is implemented and/or increases
of salary rates granted by the President of the Philippines, all special allowances granted under
this Act to the officials and employees of the COA shall be considered as an implementation of
the said salary increases as may be provided by law. The special allowance equivalent to the
increase in the basic salary as may be provided by law shall be converted as part of the basic
salary. Provided, that the amounts converted as basic salary shall be funded from the regular
appropriations of the COA. Any excess in the special allowances granted under this Cat not
converted as basic salary shall continue to be granted as such and shall continue to be funded
under Section S and Section 6 of this Act

SEC 8. Implementing Rules and Regulations. ~ The COA shall issue the necessary rules and
regulations for the effective implementation of this Act not later than ninety (90) days from
approval hereof.

SEC 9. Separability Clause. ~ If for any reason any section or provision of this Act is declared
be unconstitutional or invalid, the other sections or provision thereof which are not affected
thereby shall continue to be in full force and effect

SEC 10. Repealing Clause. — All laws, decrees, orders, rules or regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly.

SEC 11. Effectivity Clause. - This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in two (2) newspapers of general circulation whichever
comes earlier.

Approved.