NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
Cil'ir
)
SENATE
s.B. No. 2907
24 DEC 18 P4:28
ni:' ■ ■
(In substitution of Senate Bill No. 2746, taking into consideration
House Bill No. 9674)
Prepared and submitted jointly by the Committees on Constitutional Amendments and 
Revision of Codes; Civil Service, Government Reorganization and Professional 
Regulation; and Finance with Senators Escudero, Villanueva, and Padilla as authors 
thereof
AN ACT
REVISING PRESIDENTIAL DECREE NO. 1445, SERIES OF 1978, AS 
AMENDED, OTHERWISE KNOWN AS THE GOVERNMENT AUDITING CODE OF 
THE PHILIPPINES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembied:
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TITLE I
GENERAL PROVISIONS
Section 1. Title. - This Act shall be known as the "Revised Government Auditing
Act."
Sec. 2. Declaration of Policy. - It is the policy of the State to ensure efficiency, 
economy, and effectiveness in the operations of government by ensuring that 
resources of the government shall be managed or utilized in accordance with law, 
rules, regulations, and shall be safeguarded against loss or wastage from illegal or 
improper disposition. The responsibility to take care that such policy is faithfully 
adhered to rests directly with the chief or head of the government agency concerned.
Sec. 3. Definition of Terms. - As used in this Act:
(a) /4ca7^y/7^refers to a list or statement of monetary transactions pertaining 
to fund, property, obligation, equity, revenue, collection, or expense.


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whether or not entered as item/s of debit or credit in the books of 
accounts, registry, or any other record;
(b) Accountable Officer refers to the officer of any government agency or 
instrumentality who, by the nature of duties and responsibilities or 
participation in the collection or receipt and expenditure or use of 
government funds, custody, and disposal of government property, is 
required by law or regulation to render account to the Commission on 
Audit (COA). This shall include any public officer or private person or 
entity who may have participation in the transaction;
(c) Advice to Debit Account (ADA) refers to an authorization issued by the 
government entity that serves as an instruction to government servicing 
banks to debit a specified amount from its available account balance for 
the payment of creditors/payees;
(d) Aggrieved Party refers to a person or entity adversely affected by any 
decision, order, resolution or ruling of the Commission or any of its duly 
authorized representatives;
(e) Appropriation refers to an authorization by law, appropriation ordinance, 
or other enactments, or the corporate operating budget directing the 
payment of Personnel Services (PS), Maintenance and Other Operating 
Expenses (MOOE), and capital outlay out of government funds under 
specified conditions and/or purposes;
(f) Appeal refers to the process of elevating to a higher authority any 
decision, order, resolution or ruling of the Commission or any of its duly 
authorized representatives;
(g) 
refers to the examination, verification, evaluation and analysis of 
the accounts or financial records; the determination of the government 
entity's compliance with applicable laws, rules, and regulations; the 
evaluation of the economy, efficiency and effectiveness of management 
systems, operations, and programs, activities, or projects (PAPs); and it 
may also cover other special audits as may be prescribed by the 
Commission, and the evaluation of the effectiveness of internal control


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systems for purposes of determining the nature, extent, and timing of 
the audit;
(y\) Auditor to any officer or employee of the COA duly appointed or 
designated to conduct an audit;
(i) Audit Group refers to a cluster of Audit Teams that are grouped together 
headed by a Supervising Auditor (SA). The audit group shall plan, 
manage, conduct the audit work, and ensure prompt submission of the 
audit report;
(j) Audit Decision refers to the action of the auditor as a result of the audit 
to allow, disallow, or charge a particular transaction;
(k) Audit Report refers to the final output of an audit on the accounts, 
financial records, systems, and operations of a government entity;
(l) Audit Team refers to the basic organizational unit responsible for the 
audit of government and non-government entities;
(m) 
Audit Work Papers refer to the documentation or evidence, either in 
physical or electronic form, of the work done and the results thereof, 
consisting of relevant or pertinent data, analyses, computations, 
calculations, notes, schedules, excerpts, confirmations and other 
documents or materials gathered, prepared, and compiled in the course 
of an audit;
(n) Cash refers to money or its equivalent currencies, negotiable checks, or 
balances in bank accounts or in the possession or custody of a collecting 
and/or disbursing officer;
(o) Cash Advances refer to regular or special advances granted to public 
officers and employees for a public purpose;
(p) Charge refers to accountability pertaining to the assessment, appraisal, 
or collection of revenues, receipts, and other income such as those 
arising from under-appraisal, under-assessment or under-collection or 
failure to collect or remit collection which is found in the course of audit 
of revenues or receipts;
(q) COA Order of Execution (COE) refers to a written instruction to the head 
of agency to withhold payment of salary and other money due to persons


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liable, for settlement of their liability as indicated in the Notice of 
Disallowance or Notice of Charge issued after the issuance of the Notice 
of Finality of Decision (NFD);
(r) Cost of Audit Services refers to the cost of discharging the audit function, 
taking into consideration the nature and complexity of operations, size 
of the government entity, and the volume of transactions being audited;
(s) Decision or Resolution refers to an adjudication of any case or matter 
brought before any authorized official or body in the Commission which 
shall embody the facts of the case, the issue/s to be resolved, the ruling, 
and the law, regulations, or precedent on which the ruling is based;
(t) Depository refers to any financial institution lawfully authorized to 
receive the deposit of government moneys;
(u) Direct Electronic Payment (DEP) refers to an electronic payment scheme 
where the payments are made by the government entity itself, using the 
intermediary's technology or infrastructure, including the use of ADA;
(v) Disallowance refers to the disapproval In the audit of a transaction, 
either in whole or in part, involving government disbursement or 
property;
(w) 
Electronic Collection (e-CoHection) refers to a method or manner 
wherein revenue, fees, assessments, or obligations due to the 
government entity are collected using a mechanical device, electronic 
device, or computer-based system wherein no actual money, check, or 
any physical note is handed through the hands of the government 
entity's collecting officer: Provided, That this shall include collections 
performed by a financial intermediary;
(x) Electronic Payment (e-Payment) refers to the disbursement of money or 
equivalent electronic representations of legal tender, for purposes of 
paying government expenditures, solely through electronic means as 
opposed to the use of cash, check, or physical notes to accomplish the 
same, including the manner by which an obligation is extinguished by 
means of sending instruction for the debit of the government entity's 
account and the corresponding credit to the payee's account, and the


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transfer of funds to a financial intermediary for the purpose of 
distribution;
(y) Excessive Expenditures refer to unreasonable expenses that are incurred 
at an immoderate quantity and exorbitant price; exceed what is usual or 
proper, are unreasonably high and beyond just measure or amount; 
and/or are in excess of reasonable limits;
(z) Extravagant Expenditures refer to expenditures that are incurred without 
restraint, judiciousness and economy; are extravagant and exceed the 
bounds of propriety; and/or are immoderate, prodigal, lavish, luxurious, 
grossly excessive, and injudicious;
(aa) Financial Reporting Framework refers to a set of accounting principles, 
standards, interpretations, and pronouncements adopted by 
Commission on Audit (COA) as prescribed by the international standards- 
setting body which are followed in the preparation of the financial 
statements that defines how and when to recognize, measure, present 
and disclose transactions in the financial statements;
(bb) Government Agency refers to any department, bureau, or office of the 
national government, or any of its branches and instrumentalities, local 
government units (LGU) and its political subdivision, including other 
entities it created, and government-owned or controlled corporations 
(GOCC), including their subsidiaries;
(cc) Government Funds and Properties refer to any form of public moneys 
and other resources pertaining or accruing to any agency of the 
government; including funds transferred to private entities as a subsidy, 
equity, donation, grant, or counterpart fund for implementation of PAPs;
(dd) liiegai Expenditures refer to expenses incurred in violation of the law;
(ee) Irreguiar Expenditures refer to expenditures, that are incurred without 
adhering to established rules, regulations, procedural guidelines, 
policies, and generally-accepted principles or practices; and/or are 
incurred when funds are disbursed without conforming with prescribed 
usages and rules of discipline incurred without observance of an


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established pattern, course, procedure, mode of action, behavior, 
conduct or standard;
(ff) Liability refers to either an obligation arising from audit decisions or from 
contracts or quasi-contracts;
(gg) Money Claim refers to a demand for payment of a sum of money, 
reimbursement, or compensation arising from law, contract, or quasi­
contract due from a government agency or owing to a claimant;
(hh) Notice of Finality of Decision (NFD) refers to a written notification 
addressed to the head of the agency that a decision of the Commission 
has become final and executory;
(ii) Persons Liable refer to the persons determined to be answerable for an 
audit disallowance, charge, or decision by the Commission;
(jj) Persons Responsible refer to the persons determined to be answerable 
for the compliance with the audit requirements as called for in the Notice 
of Suspension (NS);
(kk) Programs, Activities, Projects (PAPs) refer to any work progress or group 
of work progress undertaken to realize the outputs and outcomes of an 
agency which is represented by an item of appropriation in the national 
budget, appropriation ordinances in the case of LGUs, and corporate 
operating budgets in the case of GOCCs;
(II) Public Officer refers to any person holding any public office in the 
government by virtue of an appointment, election, or contract vested 
with sovereign functions of the government;
(mm) Public Purpose refers to any purpose or use directly available to the 
general public as a matter of right, including those traditionally viewed 
as essentially government functions such as the building of roads and 
the delivery of basic services, and those purposes designed to promote 
social justice and public interest as provided for by law or jurisprudence;
(nn) Regular Cash Advances refer to those granted to cashiers, disbursing 
officers, paymasters, and/or property/supply officers for any of the 
following purposes:
(1) Salaries and wages;


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(2) Commutable allowances;
(3) Honoraria and other similar payments to officials and employees; 
and
(4) Petty operating expenses, consisting of small payments for 
maintenance and operating expenses cannot be paid conveniently 
by check or are required to be paid immediately;
(oo) Revenue refers to income or receipts derived by a government agency 
from taxes, excise, custom duties, fees, royalties, grants, rents, sale of 
goods or services, sale of assets and collections from other sources;
(pp) Settlement of Liability refers to the payment, restitution, or other act of 
extinguishing an obligation as provided by law in satisfaction of the 
liability under a Notice of Disallowance or Notice of Charge (ND/NC) or 
in compliance with the requirements of a Notice of Suspension (NS);
(qq) Settlement of Accounts refers to the process of determining the status 
or balance of the account of an accountable officer after audit and 
examination;
(rr) Settled Account refers to a transaction which after audit does not result 
to any adverse audit decision;
(ss) Special Cash Advances refer to those granted on the explicit authority of 
the Head of the Agency only to duly designated disbursing officers or 
employees for other legally authorized purposes, as follows:
(1) Current operating expenditures of the agency field office or of the 
activity of the agency undertaken in the field when it is impractical 
to pay to the same by check, such as - (a) Salaries, Wages and 
Allowances; (b) Maintenance and other operating expenses; and
(2) Travel Expenditures, including transportation fare, travel 
allowance, hotel room/lodging expenses and other expenses 
incurred by the officials and employees in connection with official 
travel;
(tt) Suspension refers to a temporary disallowance of a transaction or 
accounts which appear illegal or improper or irregular unless 
satisfactorily explained or justified by the persons responsible or until


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the requirements on matters raised in the course of audit are submitted
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or complied with;
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(uu) Trust Funds refer to funds which are by operation of law or by contract
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are officially in the possession of any government agency or of a public
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officer as trustee, agent, or administrator, which are for the fulfillment
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of certain obligations or a specific purpose;
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(w) Transfer-Distribute-Liquidate (TDL) refers to an electronic payment
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scheme where the government entity's funds are first transferred to the
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intermediary's possession and control, which the latter thereafter uses
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to distribute payments to the intended payees of the principal
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government entity;
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(ww)Unconscionable Expenditures refer to expenditures which are
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unreasonable and immoderate, which no fair and honest man in his right
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sense would make or accept as reasonable, and which are incurred in
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violation of ethical and moral standards; and
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(xx) Unnecessary Expenditures refer to expenditures which i) does not satisfy
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the test of prudence or the diligence of a good father of a family, thereby
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denoting non-responsiveness to the exigencies of the service; ii) are not
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supportive of the objectives and mission of the agency relative to the
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nature of its operation; iii) are not dictated by the demands of good
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government; and/or iv) the utility cannot be ascertained at a specific
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time, are not essential and can be dispensed with without loss or damage
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to property, and/or contrary to the mission and thrusts of the agency
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incurring the expenditures.
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Sec. 4. Fundamental Principles. - Financial transactions and operations of any
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government agency shall be governed by the fundamental principles set forth
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hereunder:
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(a) No money shall be paid out of any public treasury or depository except
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in pursuance of an appropriation law, appropriation ordinance, or other
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specific statutory authority, or a Department of Budget and Management
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(DBM)-approved corporate operating budget;
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(b) Government funds or property shall be spent or used solely for public 
purposes;
(c) Trust funds shall be spent only for the specific purpose for which the 
trust was created, or the funds received;
(d) Fiscal responsibility shall, to the greatest extent, be shared by all those 
exercising authority over the financial affairs, transactions, and 
operations of the government agency;
(e) Disbursements or disposition of government funds or property shall be 
approved by the proper official of the government agency;
(f) Claims against government funds shall be properly authorized and 
supported with the complete required documentation;
(g) All laws, rules, and regulations applicable to financial transactions shall 
be faithfully adhered to; and
(h) Applicable financial reporting framework adopted by the Commission, as 
prescribed by international standards-setting body, as well as sound 
management and fiscal administration, shall be observed: Provided, 
That they do not contravene existing laws, rules, and regulations.
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TITLE II
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CHAPTER I
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Organization
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Sec. 5. Composition of the Commission on Audit, Quaiifications, Term and
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Saiary of Members. - The Commission shall be headed by a Chairperson and two (2)
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Commissioners, who shall be natural-born citizens of the Philippines and, at the time
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of their appointment, at least thirty-five (35) years of age, either certified public
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accountants with at least ten (10) years of auditing experience, or members of the
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Philippine Bar who have been engaged in the practice of law for at least ten (10)
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years, and must not have been candidates for any elective position in the elections
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immediately preceding their appointment. At no time shall all Members of the
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Commission belong to the same profession.
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The Chairperson and the Commissioners shall be appointed by the President of
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the Philippines, subject to the confirmation of the Commission on Appointments, for a


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term of seven (7) years without reappointment. Appointments to any vacancy
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resulting from death, permanent disability, resignation or removal from office shall be
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only for the unexpired portion of the term of the predecessor. In no case shall any
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Member be appointed or designated in a temporary or acting capacity.
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In case of vacancy pending the appointment of a Chairperson, the senior
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member, as to appointment, shall perform the functions of the Chairperson until a
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new one is appointed and assumes office.
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No member of the Commission shall, during their tenure, hold any other office
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or employment in the government. They shall neither be in the practice of any
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profession or in the active management or control of any business which in any way
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may affect their functions as members of the Commission, nor shall they be financially
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interested, directly or indirectly, in any contract with, or in any franchise or privilege
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granted by the national government, any of its political subdivisions, agencies or
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instrumentalities, including GOCCs and their subsidiaries.
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The salary of the Chairperson and the Commissioners shall be fixed by law and
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shall not be decreased during their tenure.
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Sec. 6. The Commission Proper. - The Commission Proper shall be composed
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of the Chairperson and two (2) Commissioners sitting as a collegial body in the
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discharge of the powers and functions of the Commission.
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Sec. 7. Functions of the Commission Proper. - The following shall be the
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functions of the Commission Proper:
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(a) Promulgate auditing rules and regulations for the determination of the
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scope and type of audit and examination by the Commission, establish
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the techniques and methods required therefor, including those for the
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prevention and disallowance of illegal, irregular, unnecessary, excessive,
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extravagant, or unconscionable expenditures or uses of government
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funds or property;
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(b) Promulgate accounting and auditing policies, rules, and regulations,
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including standards on internal auditing and internal control system, and
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authorize the adoption of the international accounting and auditing
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standards prescribed by the international standards-setting body;
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(c) Promulgate its own rules concerning pleadings and practices filed before
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the Commission or any of its offices: Provided, That such rules shall not
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diminish, increase, or modify substantive rights;
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(d) Decide by a majority vote of all its Members any case or matter brought
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before it;
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(e) Appoint and promote the officials and employees of the Commission in
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accordance with the Civil Service laws, rules, and regulations.
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(f) Prescribe the duties and responsibilities of the officials and employees
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of the Commission;
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(g) Exercise original and concurrent jurisdiction over administrative cases
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filed against COA personnel.
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(h) Recommend to Congress its retirement benefits system pursuant to its
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fiscal autonomy;
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(i) Reorganize or rightsize, when necessary, the organizational structure of
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the Commission, create new positions, transfer plantilla items, or make
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adjustments in the Personnel Services Itemization in accordance with
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the organization, staffing and position classification standards and
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subject to approval of the DBM;
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(j) Authorize the conduct of special audits including re-opening of settled
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accounts in case of fraud, collusion, or error of calculation or when new
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and material evidence is discovered, and other investigations as may be
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prescribed by the rules of the Commission; and
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(k) Perform such other functions as may be provided by law.
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Sec. 8. Duties and Responsibilities of the Chairperson. - The Chairperson shall
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act as the presiding officer of the Commission Proper and chief executive officer of the
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Commission. As chief executive officer, the Chairperson shall:
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(a) Control and supervise the general administration of the Commission;
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(b) Direct and manage the implementation and execution of policies,
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standards, rules, and regulations promulgated by the Commission
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Proper;
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(c) Sign appointments for recruitment and promotions, and office orders for
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audit engagements;
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(d) Authorize the transfer, reassignment, secondment and other forms of
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personnel movement of the officials and employees of the Commission
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in accordance with the Civil Service laws, rules and regulations;
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(e) Delegate to the Commissioners, Assistant Commissioners, Directors, and
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other officials of the Commission such authority on internal
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administration concerning personnel, planning, financial, legal, and
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other matters pertaining to their respective functional areas as may be
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determined by the Commission Proper;
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(f) Submit a proposed annual or supplemental budget of the Commission
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to the DBM for approval of the Congress;
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(g) Summon any person or public official for the purpose of gathering data
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or inquiring into matters pertinent to the formulation, implementation or
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enforcement of any order, decision, policy, standard, or regulation of the
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Commission Proper;
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(h) Designate appropriate official as head of the Public Sector Accounting
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Standards Board and the Public Sector Auditing Standards Board;
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(i) Exercise control and supervision over the audit of intelligence and/or
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confidential transactions or accounts of government agencies;
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(j) Exercise control and supervision over the audit of foreign-assisted
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projects; and
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(k) Perform such other functions as may be required by law, rules,
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regulations, or policies of the Commission.
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Sec. 9. Duties and Responsibilities of the Commissioners. - The following are
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the duties and responsibilities of the Commissioners:
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(a) Participate in the proceedings of the Commission Proper in the discharge
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of its powers and functions; and
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(b) Perform such other functions as may be provided by law, rules,
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regulations, or policies of the Commission.
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Sec. 10. Duties and Responsibilities of the Assistant Commissioners. - The
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following are the duties and responsibilities of the Assistant Commissioners:
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(a) Formulate, develop, update, and supervise the implementation of the
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operational plan and performance commitment of the Sector headed
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which are aligned with the Commission's strategic plan;
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(b) Supervise the general administration of offices under the jurisdiction of
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the Assistant Commissioner;
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(c) Serve as a member of an Assistant Commissioners Group which shall
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work as a collegial body to study, review, and recommend policies, rules,
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and regulations for consideration by the Commission Proper or the COA
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Chairperson; and
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(d) Perform such other functions as may be assigned.
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Sec. 11. The General Counsel. - The Assistant Commissioner of the Legal
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Services Sector shall be the General Counsel of the Commission.
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Sec. 12. The Central and Regional Offices. -The operations of the Commission
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under Section 16 of this Act shall be further carried out by the various offices under
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each Sector in the Central and Regional Offices. Each office in the central office and
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the regional offices shall be headed by a Director with a rank of Director IV. All offices
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under the audit sectors shall supervise their respective audit groups and audit teams.
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The COA Regional Offices shall serve as representatives of the Commission in
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the regions and shall be under the direct control and supervision of the Assistant
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Commissioner of Local Government Audit Sector.
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Sec. 13. Dudes and Responsibilities of the Commission Secretary. - The
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Commission Secretary shall have the rank of a Director IV and shall provide secretariat
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and administrative support to the Commission Proper.
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Sec. 14. Duties and Responsibilities of the Chief Executive Staff. -The Chief
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Executive Staff in the Office of the Chairperson shall have the rank of an Assistant
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Commissioner and shall be responsible for the general administration and supervision
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of the following offices:
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(a) Office of the Chief Executive Staff shall monitor dissemination of the
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regulations, instructions, and directives issued by the Chairperson;
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monitor transmittal of the audit reports and annual financial reports;
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maintain schedule, agenda, and make necessary arrangements for the
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Chairperson as Chairperson/Member of inter-agency committees; and
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ensure that the Chairperson is fully informed in a timely manner of all
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matters of importance in relation to the conduct of the day-to-day
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operations of the Commission to include accomplishments of targets
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and significant deviation from performance commitments and
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established goals and objectives;
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(b) Internal Audit Office shall provide independent and objective assurance
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and advisory services to obtain reasonable assurance on the adequacy
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and effectiveness of governance, risk management, and control
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processes of the Commission based on its approved Strategic and
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Annual Audit Plan and establish guidelines to ensure conformance with
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applicable code of ethics and standards for internal auditing;
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(c) International and Audit Relations Office shall coordinate and supervise
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the work involving the functions of the COA relating to international
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audit and relations, and audit of foreign-based government agencies;
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(d) Internal Affairs Office shall evaluate and investigate complaints filed
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against COA personnel and recommend the filing of administrative
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cases or dismissal and/or termination of the complaint;
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(e) Project Management Office shall evaluate, integrate, monitor, and act
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as secretariat for the priority projects of the COA and coordinate the
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resources of the Commission and liaise with the development partners
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in the implementation of various projects and programs;
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(f) Public Information Office shall manage engagement with internal and
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external stakeholders, specifically media and general public, to
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contribute to achievement of organizational goals, and provide
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electronic communication needs of the Commission; and
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(g) Quality Assurance Office shall conduct quality assurance reviews to
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provide reasonable assurance that the quality management system of
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the Commission is working effectively and in accordance with
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professional standards and best practices.
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Sec. 15. Duties and Responsibilities of the Directors. - The Directors of the
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Commission shall have the following duties and responsibilities:
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(a) Formulate, develop, and supervise the implementation of the annual
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operational plan, in accordance with the Commission's strategic plan;
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(b) Manage the administrative operations of their office;
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(c) Implement and execute laws, policies, standards, and rules and
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regulations promulgated by the Commission or the Chairperson;
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(d) Submit annual performance report and other reports as directed by the
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Commission Proper or the Chairperson;
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(e) Adjudicate on cases within their jurisdiction;
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(f) Publish audit reports in the website of the Commission; and
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(g) Perform other functions that may be assigned by higher and competent
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authority.
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Sec. 16. Operations of the Commission. - The operations of the Commission
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shall be undertaken through the following sectors which shall each be headed by an
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Assistant Commissioner who shall exercise supervision over various offices under it:
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(a) Local Government Audit Sector shall be responsible for the audit of
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LCDs;
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(b) National Government Audit Sector shall be responsible for the audit of
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NGAs;
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(c) Corporate Government Audit Sector shall be responsible for the audit of
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GOCCs;
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(d) Special Audit Services Sector shall be responsible for the conduct of
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performance audit, fraud audit, and special audit;
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(e) Systems and Technical Audit Services Sector shall be responsible for
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technical audit and conduct of other technical-related services; and audit
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of information technology and systems and conduct of other services
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related to information and communications technology resources and
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services of government agencies;
28 
(f) Government Accountancy Sector shall be responsible for the keeping of
29 
the general accounts of the government, preparation and submission of
30 
Annual Financial Reports and other financial reports, and providing
I
31 
technical assistance pertaining to accounting and financial management;
32 
recommendation on 
the adoption and implementation of accounting
15


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2
3
4
5
6
7
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9
10
11
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14
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standards, policies, rules, and regulations; and development, 
implementation and maintenance of computerized systems and tools 
related to government accounting and financial management vital to its 
operation including systems essential for its technical oversight function 
over government accountants;
(g) Legal Services Sector shall be responsible for rendering legal opinions 
and legal services; review of legal retainers and other contracts, and 
COA issuances; preparation of comments on proposed congressional 
bills and issuances of government agencies; conduct of formal hearing 
and drafting of decisions on administrative cases; enforcement of COA 
decisions; assistance in the prosecution and litigation of cases involving 
COA and its personnel acting as witnesses, including preparation of 
pertinent comments and pleadings; coordination with the Office of the 
Solicitor General (OSG), Office of the Ombudsman (0MB) and other 
agencies pertaining to cases involving COA; legal assistance to COA 
personnel subjected to harassment suits;
(h) Commission Proper Adjudication Sector shall be responsible for drafting 
of decisions or resolutions for consideration of the Commission Proper;
(i) Planning, Finance and Management Sector shall be responsible for the 
formulation of long-range and annual plans and programs of the 
Commission; providing budget services to the Commission; and 
formulation, recommendation, and implementation of policies on the 
processing of claims, assessment of cost of audit services, and personnel 
payroll management;
(j) Administration Sector shall be responsible for the development and 
maintenance of the information system of the Commission, and human 
resources management program; and providing general administrative 
services and support to the Commission; and
(k) Professional and Institutional Development Sector shall be responsible 
for the formulation, recommendation, and implementation of policies 
and programs on learning and development of personnel of the 
Commission; and providing capacity building of other government
16


1 
agencies' personnel pertaining to accounting and auditing matters, and
2 
other policies, rules and regulations issued by the Commission, including
3 
those concerning internal auditing and internal control 
systems
4 
standards.
5 
The Commission Proper may effect changes in the organization and functions
6 
of the Commission as it may deem necessary in the exercise of its fiscal autonomy in
7 
order to carry out its constitutional mandate.
8 
Sec. 17. Legal Assistance to Current and Former Officials and Employees. -
9 
Current and former COA officials and employees are authorized to engage the services
10 
of private lawyers for a fee on cases filed against them in relation to the performance
11 
of their official functions in accordance with the guidelines issued by the Commission
12 
Proper.
13 
For this purpose, the Commission shall provide a legal assistance fund to be
14 
included in its annual appropriation.
15 
Sec. 18. Professionalization of Audit Services. - The Commission shall develop,
16 
adopt, and implement a competency-based capacity building and continuing
17 
education.
18 
It shall participate and support the activities of international professional
19 
organizations such as the International Organization of Supreme Audit Institutions,
20 
Asian Organization of Supreme Audit Institutions, Association of Southeast Asian
21 
Nations (ASEAN) Supreme Audit Institutions, and other supreme audit institutions.
22 
For this purpose, the capacity building shall include courses on accounting
23 
standards, rules, and regulations relevant to auditing services.
24 
Sec. 19. Professionalization of Accounting and Other Services. - For accounting
25 
services, the Commission shall conduct capacity building in coordination with
26 
international professional bodies on accounting services such as the International
27 
Public Sector Accounting Standards Board, Financial and Sustainability Reporting
28 
Standards Council, and other international professional bodies relevant to accounting
29 
services.
30 
The Commission shall likewise provide similar capacity building for other
31 
services.
17


1 
Sec. 20. Fiscal Autonomy. - The Commission shall enjoy fiscal autonomy and
2 
its approved annual appropriation shall be automatically and regularly released. The
3 
Chairperson of the COA is authorized to augment any item in the general
4 
appropriations for the Commission from savings in any item in the same appropriation.
5 
Sec. 21. Statement of Objectives. - In keeping with its constitutional mandate,
6 
the Commission adheres to the following objectives:
7 
(a) Determine whether the fiscal responsibility which rests directly with the
8 
head of the government agency has been properly, efficiently, and
9 
effectively discharged;
10 
(b) Develop and implement a comprehensive audit plan that shall
11 
encompass the examination of financial transactions, accounts, and
12 . 
reports, including compliance with applicable laws and regulations, as
13 
well as evaluation of the economy, efficiency, and effectiveness of
14 
programs, activities and projects;
15 
(c) Institute control measures through the promulgation of auditing and
16 
accounting rules and regulations governing the revenue, receipts,
17 
disbursements, and uses of funds and properties, including audit of fund
18 
transfers to non-government organizations, peoples' organizations (POs)
19 
or other private entities for specific purpose;
20 
(d) Promulgate accounting and auditing rules and regulations to facilitate
21 
the keeping of the accounts of the Government and enhance their
22 
information value;
23 
(e) Institute measures designed to preserve and ensure the independence
24 
of the Commission, ensure transparency and accountability in
25 
government operations, and promote service excellence and quality in
26 
all aspects of its work; and
27 
(f) Bring its operations closer to the people by the delegation of authority
28 
through decentralization and participatory governance, consistent with
29 
the provision of the Constitution.
30 
Sec. 22. GeneraiJurisdiction. - Pursuant to Section 2 (1), Article IX (D) of the
31 
1987 Constitution, the Commission shall have the power, authority, and duty to
32 
examine, audit and settle all accounts pertaining to the revenues and receipts of, and
18


1 
expenditures or uses of funds and property, owned or held in trust by, or pertaining
2 
to the government, or any of its subdivisions, agencies, or instrumentalities, including
3 
GOCCs, and on a post-audit basis:
4 
(a) Constitutional bodies, commissions and offices that have been granted
5 
fiscal autonomy under the Constitution;
6 
(b) Autonomous state colleges and universities;
7 
(c) Other GOCCs and their subsidiaries; and
8 
(d) Such non-governmental entities receiving subsidy or equity directly or
9 
indirectly, from or through the government, which are required by law
10 
or the granting institution to submit to such audit as a condition of
11 
subsidy or equity.
12 
Provided, however, That in case where the internal control system of the
13 
audited agencies is deemed inadequate, the Commission may adopt such measures,
14 
including temporary or special pre-audit, as are necessary and appropriate to correct
15 
the deficiencies. It shall keep the general accounts of the government, and for such
16 
period as may be provided by law, preserve the vouchers and other supporting papers
17 
pertaining thereto.
18 
The Commission, under Section 2 (2), Article IX (D) of the 1987 Philippine
19 
Constitution, shall have exclusive authority subject to the limitations in Article IX of
20 
the Constitution, to define the scope of its audit and examination, establish the
21 
techniques and methods required therefor, and promulgate accounting and auditing
22 
rules and regulations including those for the prevention and disallowance of irregular,
23 
unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of
24 
government funds and properties.
25 
Sec. 23. Examining Authority. - The Commission shall have authority to
26 
examine in the course of audit, books, papers, documents pertaining to the income of
27 
individuals and corporations in 
connection with government revenue collection
28 
operations, for the purpose of ascertaining that all revenues determined to be
29 
collectible and due the government have actually been collected.
30 
Sec. 24. Limited Jurisdiction over Private Entities. -The Commission shall have
31 
authority to examine and audit the contracts, agreements, or dealings of private
32 
entities with the government for which such private entities: (i) received subsidies.
19


1 
counterpart funding, government equity, donation or grant, fund transfer or were
2 
allowed to use government properties or facilities; or (ii) were required to pay
3 
government share such as, but not limited, to levy, franchise fees, or income share.
4 
Sec. 25. Deputization of Government Licensed Professionals or Experts to Assist
5 
Government Auditors. - The Commission Proper may, when the exigencies of the
6 
service so require, deputize and retain, in the name of the Commission, certified public
7 
accountants and such other government licensed professionals or experts as it may
8 
deem necessary to assist its auditors in undertaking specialized audit engagements.
9 
The deputized professionals or experts shall be entitled to such compensation
10 
and allowances as may be stipulated in the contract, subject to pertinent rules and
11 
regulations on compensation and fees.
12 
The Commission Proper shall issue guidelines in contracting deputized
13 
professionals or experts referred to in this section.
14 
Sec. 26. Participation of Civil Society Organizations in the Conduct of Audit -
15 
The COA Chairperson may deputize duly accredited Civil Society Organizations in the
16 
conduct of audit to help auditors perform ocular inspection, validation, evaluation,
17 
collection of data or information and monitoring of projects located in remote and
18 
critical areas to enhance credibility, accountability, and transparency in audit
19 
processes.
20 
Sec. 27. Prohibition of Person or Entity from Rendering, Auditing and Related
21 
Services to Government Entities. - No person or entity shall enter into a contract to
22 
render accounting or auditing related services for a fee to any government agency or
23 
conduct of seminars or workshops on topics relating to accounting; auditing; and
24 
internal control system and internal auditing standards for government personnel
25 
without securing clearance from COA. Should the Commission decide not to undertake
26 
the study or service, it shall nonetheless have the power to review the proposed
27 
contract in order to determine the necessity, capability or expertise of the private party
28 
and the reasonableness of its fees.
29 
Any contract entered into without the approval of the Commission shall be
30 
considered null and void and the related expenditures incurred thereon shall be
31 
disallowed in audit and become the personal liability of the officials concerned.
20


1 
Sec. 28. Government Contracts for the Hiring of a Private Lawyer or Law Firm
2 
to Handie Legal Cases or Render Legal Services to Government Agencies. - No
3 
contract involving public funds shall be entered into by any government agency to
4 
secure the services of a private lawyer or law firm for the purposed representing the
5 
government agency concerned in court or for rendering legal services: Provided, That
6 
if hiring of such legal services cannot be avoided, or is justified under extraordinary or
7 
exceptional circumstances, the written conformity and acquiescence or clearance of
8 
the OSG or the Office of the Government Corporate Counsel, as the case may be, and
9 
the written concurrence of the COA shall first be secured before the engagement of
10 
private legal services: Provided, further. That in case of LGUs, only the written
11 
approval of the Commission shall be required: Provided, furthermore. That the
12 
Commission shall issue guidelines for the implementation of this provision. Provided,
13 
finally, That in case of non-compliance with the above requirements and the relevant
14 
rules of the Commission, any payment thereof shall be disallowed in audit and the
15 
same shall be the personal liability of the officials concerned.
16 
The request for written concurrence shall be acted upon by the Commission
17 
within sixty (60) days from the receipt of all documents necessary to evaluate such
18 
request. The Commission shall be deemed to approve the request for written
19 
concurrence should it fail to act thereon after the lapse of the (60) day period.
20 
Sec. 29. Prohibition of Private Foundations and Entities to Use the Name and
21 
Resources of the Government to Solicit and/or Receive Donations, Grants, Financial
22 
Assistance from Private Domestic and International Donors. - Private foundations and
23 
entities organized and managed by government officials and employees are prohibited
24 
from using the name, resources, insignia, or logo of a government agency for
25 
whatever enterprise to solicit and/or receive donations, grants, financial assistance
26 
from the public or other donors.
27 
Any violation of the preceding paragraph shall subject the said foundation or
28 
entity to special audit by the Commission as if the funds so received are public funds
29 
which should be recognized in the books of the concerned government agency.
30 
Refusal to submit itself to such audit shall constitute an offense punishable under
31 
Section 101 of this Act.
21


1 
Sec. 30. Prevention and Disallowance of Illegal, Irregular, Unnecessary,
2 
Excessive, Extravagant or Unconscionable Expenditures or Uses of Government Funds
3 
of Property. - The Commission shall promulgate accounting and auditing rules and
4 
regulations for the prevention and disallowance of illegal, irregular, unnecessary,
5 
excessive, extravagant, or unconscionable expenditures or uses of government funds
6 
or property. Any violation of such rules and regulations shall be a ground for
7 
disallowance without prejudice to administrative, civil and/or criminal sanctions
8 
against the persons liable therefor.
9 
Sec. 31. Settlement of Accounts Between Agencies. - The Commission shall
10 
have the power, under such regulations as it may prescribe, to authorize and enforce
11 
the settlement of accounts subsisting between agencies of the government.
12 
Sec. 32. Collection of Indebtedness Due to the Government - The Commission,
13 
through proper channels, shall assist in the collection and enforcement of all debts
14 
and claims and the restitution of all funds or the replacement or payment to the
15 
government of any government property lost or destroyed.
16 
Sec. 33. Power to Adjudicate Money Claims Against the Government - The
17 
Commission shall have the power to adjudicate money claims filed against the
18 
government or any of its subdivisions, agencies, and instrumentalities in relation to
19 
liquidated claims and quantum meruit cases. Unliquidated money claims against the
20 
government shall be filed before the proper courts, tribunals, and other adjudicative
21 
bodies.
22 
Liquidated claims refer to those determined or readily determinable from
23 
vouchers, invoices, and such other papers within reach of accounting officers.
24 
When the Commission is in the exercise of its power to execute judgements on
25 
money claims, the Commission shall, at all times, respect the principle of immutability
26 
of judgments.
27 
Sec. 34. Power to Compromise Claims. - When the interest of the Government
28 
so requires, the Commission Proper may compromise or release in whole or in part,
29 
any settled claim or liability to any government agency not exceeding Ten miilion
30 
pesos (P10,000,000.00) arising out of any matter or case pending before the
31 
Commission or falling within its jurisdiction. In case the claim or liability exceeds Ten
32 
million pesos (P10,000,000.00), the Commission shall submit an application for relief
22


1 
to Congress with its recommendations. The threshold amount subject to compromise
2 
shall be reviewed and adjusted to inflation every five (5) years.
3 
The respective governing bodies of GOCCs and self-governing boards,
4 
commissions or agencies of the government shall have the authority to condone,
5 
compromise or release any similar claim or liability when expressly authorized by their
6 
charters, subject to timely review and post-audit by the Commission: Provided,
7 
however, That if the power to condone, compromise or release claims or liabilities is
8 
not explicitly provided under the charter of the government agency concerned, the
9 
same be exercised exclusively by the Commission in accordance with the provision of
10 
this Act.
11 
Sec. 35. Satisfaction of Indebtedness Arising from Final and Executory Audit
12 
Decisions. - When any person or entity is indebted to any government agency by
13 
reason of a final and executory audit decision, the Commission shall direct the head
14 
of agency to withhold the salary or any money due to such entity or person liable or
15 
from the estate, in satisfaction of the indebtedness under the said decision.
16 
In case any money due to the liable entity or person is insufficient to satisfy
17 
the indebtedness from the final and executory audit decision, the Commission shall
18 
have the power to levy property or garnish bank accounts to the extent of the unpaid
19 
balance.
20 
Failure on the part of the head of agency concerned to comply with the
21 
preceding paragraphs shall render the head of agency personally liable without
22 
prejudice to the filling of administrative action for neglect of duty.
23 
Sec. 36. Authority to Require Submission of Documents Relative to Government
24 
Transactions. - The Commission shall have the power to require the submission of the
25 
original, in whatever form, of any order, deed, contract, or other document under
26 
which any collection of, or payment from, government funds may be made, together
27 
with any certificate, receipt, or other evidence in connection therewith. If an
28 
authenticated copy is needed for record purposes, the copy shall upon request be
29 
furnished.
30 
In the case of deeds to property purchased by any government agency, the
31 
Commission shall require a certificate of title entered in favor of the government or
23


1 
other evidence that would provide substantial proof that the title is in the name of the
2 
government.
3 
It shall be the duty of the officials or employees concerned, including those in
4 
non-government entities under audit, or affected in the audit of government and non-
5 
government entities, to comply promptly with these requirements.
6 
Sec. 37. Investigatory and Inquisitorial Powers; Power to Punish for Contempt
7 
- The Chairperson, and other officials and employees specially deputized in writing for
8 
the purpose by the Chairperson shall, in compliance with the requirement of due
9 
process, have the power to summon the parties to a case brought before the
10 
Commission for resolution, issue subpoena and subpoena duces tecum, administer
11 
oaths, and otherwise take testimony in any investigation or inquiry on any matter
12 
within the jurisdiction of the Commission.
13 
The Commission shall have the power to cite for contempt as provided for in
14 
the Revised Rules of Court and the Revised Rules of Procedure of the COA, under the
15 
same procedure and with the same penalties provided therein. Any violation of any
16 
final and executory decision, order or ruling of the Commission shall constitute as
17 
indirect contempt.
18 
Sec. 38. Annual Financial Report of the Commission. - The Commission shall
19 
submit to the President and the Congress of the Philippines not later than the last day
20 
of September of each year an annual report on the financial condition and operation
21 
of all government agencies, which shall include recommendation of measures
22 
necessary to improve economy, efficiency, and effectiveness of these agencies.
23 
To carry out the purposes of this Section, the Chief Accountant or the official
24 
in charge of keeping the accounts of the government agency shall submit to the
25 
Commission, year-end financial statements and such other supporting or subsidiary
26 
statements as may be required by the Commission not later than the 14th day of
27 
February of each year. Financial statements returned by the Commission for revision
28 
due to non-compliance with accounting standards, rules and regulations shall be
29 
resubmitted within five (5) working days after the date of receipt by the official
30 
concerned.
31 
Sec. 39. Annual Report on Appropriations, Allotments, Obligations and
32 
Disbursements, Including Off-Budgetary Funds and Trust Receipts. - Within one
24


1 
hundred twenty (120) days after the end of every fiscal year, the Commission shall
2 
submit to the President and the Congress of the Philippines an annual report on
3 
appropriations, allotments, obligations and disbursements of NGAs and GOCCs
4 
maintaining Special Accounts in the General Fund and receiving budgetary support
5 
from the government.
6 
For the purpose stated under this Section, agencies are required to submit
7 
financial accountability reports to this Commission in compliance with the pertinent
8 
sections of the General Provisions of the GAA and Republic Act No. 7226.
9 
Sec. 40. Powers, Functions, and Duties of Auditors. - The following are the
10 
powers, functions, and duties of auditors as representatives of the Commission:
11 
(a) Exercise such powers and functions as may be authorized by the
12 
Commission in the examination of cash and accounts of accountable
13 
officers; conduct financial, compliance, performance, and other special
14 
audits; settle accounts of the agencies under the respective audit
15 
jurisdiction;
16 
(b) Submit an audit report on the date and in the manner prescribed by the
17 
Commission and render such other reports as the Commission may
18 
require;
19 
(c) For transactions subject of Audit Observation Memorandum, NS, ND, NC,
20 
complaint or a pending audit or investigation or court case, retain
21 
custody and be responsible for the safekeeping and preservation of paid
22 
expense vouchers, journal entry vouchers, stubs of checks, reports of
23 
collections and disbursements, and similar documents together with
24 
their respective supporting papers, until the final disposition thereof. The
25 
Commission shall prescribe the manner for preservation of these audit
26 
or legal evidence;
27 
(d) Retain a digital copy of the audited vouchers and supporting papers,
28 
official receipts, and other documents or reports upon turnover or return
29 
of the originals to the auditee for safekeeping and preservation in
30 
accordance with the guidelines promulgated by the Commission Proper;
31 
(e)Act as witness in proceedings before the courts, the 0MB, and other
32 
quasi-judicial bodies; and
25


1 
(0 Perform such other functions as may be assigned to them by the
2 
Commission.
3 
Sec. 41. Examination of Cash and Accounts of Accountabie Officer. - The
4 
cashbooks, accounts, papers, and cash in the accountability of an accountable officer
5 
shali be opened at all times to audit and examination of the Commission and its duly
6 
authorized representatives.
7 
In case a shortage has been discovered during an examination of the cash and
8 
accounts of an accountable officer, it shall be the duty of the auditor to immediately
9 
demand in writing the restitution of the shortage and notify in writing the head of the
10 
government agency concerned of said shortage in accordance with the regulations of
11 
the Commission. The head of the agency may immediately relieve the accountable
12 
officer and assign another officer to assume the former's duties and responsibilities. A
13 
complete report on the cash examination of the accounts of the accountable officer
14 
with cash shortage shall immediately be submitted by the auditor to the Director
15 
concerned for purposes of referral to the 0MB for investigation and filing of the
16 
appropriate administrative and/or criminal case against the accountable officer
17 
concerned, as the evidence may warrant.
18 
For the purpose of this Section, the auditor shall be regarded as a witness only
19 
in cases filed before the 0MB and the regular courts, and in no case shall the auditor
20 
be named as the complainant therein.
21 
Sec. 42. Withholding of Salaries and Other Emoluments of Accountable Officers.
22 
-Whenever an accountable officer has been found short of any accountability during
23 
cash examination or audit and after failure to explain satisfactorily or to produce the
24 
missing funds within the period prescribed by the rules of the Commission, the auditor
25 
shall order the head of the agency to direct the withholding of the salaries and other
26 
emoluments due the accountable officer concerned up to the extent of the liability
27 
until the final determination of the latter's accountability by the Commission or by final
28 
judgment of a competent court.
29 
Sec. 43. Constructive Distraint of Property of Accountable Officer. - Upon
30 
discovery in audit of a shortage in the accounts of any accountable officer and upon
31 
a finding of a prima facie case of malversation of public funds or property against such
32 
accountable officer, the Commission may, in order to safeguard the interest of the
26


1 
government, place the personal property of the accountable officer concerned under
2 
constructive distraint when there is reasonable grounds to believe that the said officer
3 
intends to retire from the government service or leave the Philippines, or remove, hide
4 
or conceal the property therefrom.
5 
The constructive distraint shall be effected by requiring the accountable officer
6 
concerned or any other person having possession or control of the property to
7 
accomplish a receipt in the form prescribed by the Commission, covering the property
8 
distrained and obligating to preserve the same intact and unaltered and not to dispose
9 
of it in any manner whatsoever without the express authority of the Commission.
10 
In case the said accountable officer or other person having the possession and
11 
control of the property sought to be placed under constructive distraint refuses or fails
12 
to accomplish the receipt herein referred to, the representative of the Commission
13 
effecting the constructive distraint shall proceed to prepare a list of such property;
14 
and, in the presence of two witnesses, leave a copy thereof in the premises where the
15 
property distrained is located. Thereafter, the said property shall be deemed to have
16 
been placed under constructive distraint, in accordance with the rules and regulations
17 
of the Commission.
18 
The auditor shall submit a report to the Chairperson on any distraint effected
19 
pursuant to this Section not later than five (5) calendar days from the date of the
20 
distraint of the property.
21 
Sec. 44. Appeals from Decisions of Auditors. - Any person aggrieved by the
22 
decision of an auditor, may within one hundred eighty (180) calendar days from
23 
receipt of a copy of the decision, appeal in writing to the Commission. The procedures
24 
of appeal shall be governed by the internal rules concerning pleadings and practices
25 
of the Commission, including the imposition of reasonable filing and legal research
26 
fees.
27 
Sec. 45. Period Rendering Decisions of the Commission. - The Commission
28 
Proper shall decide any case brought before the Commission within sixty (60) days
29 
from the date of its submission for decision or resolution. For this purpose of this
30 
Section, a case or matter is deemed submitted for decision or resolution upon the
31 
filing of the last pleading, brief, or memorandum required by the rules of the
32 
Commission or by the Commission itself.
27


1 
CHAPTER II
2 
Decision of the Commission
3 
Sec. 46. Appeal from Decisions of the Commission. - Any decision, order or
4 
ruling of the Commission may be brought to the Supreme Court on certiorari \n\\:\\\u
5 
thirty (30) days from the receipt of a copy thereof. When the decision, order, or ruling
6 
adversely affects the interest of any government agency, the remedy may be taken
7 
by the proper head of that agency.
8 
Sec. 47. Finality of Decisions of the Commission and Responsibility of Head of
9 
the Agency. - A decision of the Commission upon any matter within its jurisdiction, if
10 
not appealed as herein provided, shall be final and executory.
11 
The General Counsel or any authorized official of the Commission shall issue an
12 
order of execution for final and executory decisions, resolutions, or orders of the
13 
Commission.
14 
For final and executory decisions on money claims, the claimant shall initiate
15 
the process of payment with the agency concerned pursuant to existing rules and
16 
regulations.
17 
Sec. 48. Enforcement of Decisions of the Auditor or Commission Proper. - The
18 
head of agency shall ensure the immediate settlement of final and executory decisions
19 
of the Commission. Unreasonable failure or refusal of the head of agency or concerned
20 
official to implement the final and executory decision of the Commission shall render
21 
the former administratively liable for neglect of duty.
22 
Sec. 49. Re-audit of Audited Transactions. - All transactions and accounts shall
23 
be open for audit within ten (10) years after the date of transaction except for
24 
intelligence and/or confidential transactions or accounts which may be authorized to
25 
be re-audited by the Chairperson. The Commission shall issue the appropriate
26 
guidelines for this purpose.
27 
TITLE III
28 
CHAPTER I
29 
Basic Policies and Standards
28


1 
Sec. 50. Government Auditing. - Government auditing shall cover financial,
2 
compliance and performance audits, and shall be performed in accordance with the
3 
prevailing International Standards for the Supreme Auditing Institutions (ISSAIs) for
4 
the purpose of assessing whether the financial information, transactions, programs,
5 
operations, accounts, and reports of any government agency are in accordance with
6 
the applicable international accounting framework.
7 
Sec. 51. Principies of Government Auditing. - The auditor shall be guided by
8 
the following general principles as prescribed under international standards related to
9 
the audit process:
10 
(a) Comply with the relevant ethical principles of integrity, independence
11 
and objectivity, competence, professional behavior, and confidentiality
12 
and transparency;
13 
(b) Maintain appropriate professional behavior by applying professional
14 
skepticism, professional judgment, and due care throughout the audit;
15 
(c) Perform the audit in accordance with professional standards on quality
16 
control;
17 
(d) Possess collectively the knowledge, skills, expertise, and ability and
18 
experience to exercise professional judgment necessary to successfully
19 
complete the audit;
20 
(e) Manage the risks of providing a report that is inappropriate in the
21 
circumstances of the audit;
22 
(f) Consider materiality throughout the audit process, in relation to
23 
stakeholder concerns, public interest, regulatory requirements 
and
24 
consequences for society;
25 
(g) Prepare audit documentation that is sufficiently detailed to provide a
26 
clear understanding of the work performed, evidence 
obtained, and
27 
conclusions reached; and
28 
(h) Establish effective communication throughout the audit process.
29 
CHAPTER II
30 
Receipts and Disposition of Funds and Properties
31 
Sec. 52. Accounting for Moneys and Property Received by Pubiic Officials. - All
32 
moneys and properties officially received by a public officer in any capacity and in
29


1 
connection with his or her office, must be accounted for as government funds and
2 
property, except as may otherwise be specifically provided by iaw or competent
3 
authority. The recognition of such money and property in the books of accounts of the
4 
agency concerned shall be in accordance with pertinent laws, policies, rules and
5 
regulations, and appiicabie financial reporting framework.
6 
Sec. 53. Designation of Coiiecting or Disbursing Officers for Government
7 
Agencies. - The head of agency may designate such number of collecting and
8 
disbursing officers or agents as may be deemed necessary. They shall render reports
9 
of their coliections and disbursements pursuant to the regulations of the Commission,
10 
to be submitted promptly to the auditor concerned who shall conduct the necessary
11 
examination and audit.
12 
Sec. 54. Time and Mode of Rendering Account - In the absence of specific
13 
provision of law, all accountable officers, through the agency accountants, shall render
14 
their accounts, submit their vouchers, and make deposits of money they have collected
15 
or held at such time and manner as prescribed in the ruies and regulations of the
16 
Commission. The auditor concerned shall then conduct the necessary examination and
17 
audit thereof.
18 
Sec. 55. Accruai of Income or Revenues to Unappropriated Surplus of the
19 
General Fund. - All income or revenues accruing to the agencies by virtue of the
20 
provisions of law, orders and regulations shail be deposited in the National Treasury
21 
or in any duly authorized government depository and shall accrue to the
22 
unappropriated surplus of the General Fund of the government, unless otherwise
23 
provided by iaw.
24 
Income or revenues from business-type activities and revolving funds of
25 
government agencies may be separately recorded and disbursed in accordance with
26 
such rules and regulations as may be determined by the Permanent Committee
27 
created by law, composed of the Secretary of Finance as Chairperson, Secretary of
28 
Budget and Management, and Chairperson of the Commission, as members.
29 
Sec. 56. Special, Fiduciary and Trust Funds. - Receipts shall only be recorded
30 
as income of Special, Fiduciary or Trust Funds or Funds other than General Fund when
31 
the same is duly authorized by law and performed in accordance with the rules and
32 
regulations issued by the Permanent Committee.
30


1 
Revenues collected from particular taxes, levy and royalties for special purpose
2 
shall be treated as a special fund or Special Account in the General Fund and shall be
3 
paid out only for such purpose: Provided, That, the Permanent Committee may
4 
recommend for approval of the President the reversion and closure of the Special
5 
Account in the General Fund, Fiduciary or Trust Funds on any of the following grounds:
6 
(a) The purpose for which a special fund was created has been fulfilled,
7 
terminated or abandoned;
8 
(b) The terms have expired or no longer necessary for attainment of the
9 
purpose for which said funds were established;
10 
(c) The account remained dormant for unreasonable length of time;
11 
(d)The funds in the account are needed by the Government in times of
12 
emergency; or
13 
(e) The funds in the account are being used in violation of the rules and
14 
regulations issued by the Permanent Committee.
15 
Sec. 57. Receipts and Revenues ofLocai Government Units. - All receipts and
16 
income accruing to the LGUs shall be deposited in their account maintained in the
17 
authorized government depository bank or private bank with the prior approval of the
18 
Department of Finance (DOF).
19 
Sec. 58. Receipts and Revenues of GOCCs. - All receipts and income accruing
20 
to GOCCs shall be deposited in their account maintained in the authorized government
21 
depository bank, unless otherwise specifically provided by law or agreements.
22 
Sec. 59. Coiiections by the Government - No payment of any nature shall be
23 
received by a collecting officer without immediately issuing an official receipt in
24 
acknowledgment thereof. The receipt may be in the form of postage, internal revenue
25 
or documentary stamps or such other digital forms as the law or the Commission may
26 
authorize: Provided, That, in no instance shall temporary or provisional receipts be
27 
issued to acknowledge the receipt of public funds.
28 
Where digital or electronic devices are used to acknowledge cash receipt, an
29 
electronic official receipt (eOR) shall be issued and the electronic copies of the pieces
30 
of evidence of the e-collection through Self-Collect and Credit or Collect-Aggregate-
31 
Remit or other modes of electronic collection allowed by the rules of the COA. Such
32 
eORs shall be kept in electronic archives, and shall be subject to inspection and
31


1 
verification by the Commission, in accordance with its prescribed guidelines on the
2 
use of eORs to acknowledge collection of income and other receipts of government.
3 
The eORs shall be acceptable provided the document maintains its integrity
4 
and reliability and can be authenticated so as to be usable for subsequent reference:
5 
Provided, That, the electronic document has remained complete and unaltered, apart
6 
from the addition of any endorsement and any authorized change, or any change
7 
which arises in the normal course of communication, storage and display; and that
8 
the electronic document is reliable for the purpose for which it was generated and for
9 
all relevant circumstances.
10 
Collections in the form of checks in favor of the government shall be governed
11 
by the rules of the Commission.
12 
In no instance shall money in the hands of the collecting officer be utilized for
13 
whatever purpose but should be deposited intact with an authorized government
14 
depository bank.
15 
Sec. 60. Payment in Settlement - Electronic payment through TDL, credit card,
16 
DEP such as ADA and other modes may be used to settle all obligations of the
17 
government in accordance with the guidelines of the Commission and other Public
18 
Financial Management agencies of the government.
19 
Electronic payment to a person not duly authorized to receive such payment
20 
shall subject the accountable officer concerned to administrative/civil sanctions or
21 
criminal prosecution, as may be warranted.
22 
In instances when checks are drawn against the checking account of the
23 
government agencies maintained with any government depository in payment of an
24 
obligation:
25 
(a) The check shall be made payable directly to the creditor to whom the
26 
money is due, or to the disbursing officer or employee for an official
27 
disbursement;
28 
(b) Checks drawn in payment of any indebtedness shall likewise be accepted
29 
by the officer concerned, provided it shall be made payable to the entity
30 
or the authorized official of the payee; and
31 
(c) When a check drawn in favor of the government is not accepted by the
32 
drawee bank for any reason, the drawer shall continue to be liable for
32


1 
the sum due and all penalties resulting from delayed payment. Where
2 
the reasons for non-acceptance by the drawee bank are insufficiency of
3 
funds and/or closed accounts, the drawer shall be criminally liable
4 
therefor.
5 
Sec. 61. Deposit of Money in the Treasury or Authorized Government
6 
Depository Bank. - Public officers authorized to receive and collect moneys arising
7 
from taxes, revenues, or receipts of any kind shall remit or deposit the full amount
8 
received and collected to the account of the National Treasury or in the agencies
9 
account maintained in the authorized government depository bank not later than the
10 
following banking day, except when it is impractical to do so due to distance or when
11 
and the amount to be deposited is minimal.
12 
Fifty percent (50%) share on proceeds from the community tax certificates
13 
collected by duly deputized barangay treasurers shall be automatically retained and
14 
deposited intact in the authorized depository banks of the barangay where the tax is
15 
collected pursuant to the Republic Act No. 7160, as amended, otherwise known as the
16 
"Local Government Code of 1991."
17 
No collections shall be used for the purpose of disbursements except when
18 
authorized by law or regulation.
19 
Sec. 62. Acknowiedgment of Receipt of Money by Government Depositories. -
20 
All authorized government depository banks shall acknowledge receipt of all money
21 
received for the account of the National Treasurer or the agency concerned. The
22 
acknowledgment shall bear the date of actual deposit and indicate from whom and on
23 
what account it was received. Such moneys received shall be governed by the
24 
Treasury Single Account System established pursuant to law.
25 
Sec. 63. Access to Bank Statements for Audit Purposes. - The authorized
26 
agency official shall regularly furnish the monthly bank statements of the agency to
27 
the auditor. In the event that the agency fails or refuses to comply with this
28 
requirement, the auditor shall be authorized to directly request such bank statements
29 
from the government depository bank concerned. In such case, the bank shall
30 
promptly provide the requested statements, and shall waive any pertinent bank fee
31 
that may be imposed on such request.
33


1 
Sec. 64. Shipment of Government Money or Property by a Carrier; Notation of
2 
Evidence of Loss. - When government money or property is transported from one
3 
place to another by a carrier, it shall be the duty of the consignee or duly authorized
4 
representative to make notation or notations on the bill of lading or receipt on any
5 
evidence of loss, shortage, or damage.
6 
Sec. 65. Credit for Loss Occurring in Transit or Due to Fire, Theft, Robbery or
7 
Force Majeure. - When a loss of government funds, property, documents evidencing
8 
financial transactions, or records of accountabilities occurs while they are in transit or
9 
loss is caused by fire, theft, robbery or force majeure, the officer or employee
10 
accountable therefor or having custody thereof shall Immediately notify the auditor
11 
concerned and, within thirty (30) days from the occurrence of loss, shall file an
12 
application for relief, together with the required supporting evidence. 
When
13 
warranted, credit for the loss shall be allowed. An officer or employee who fails or
14 
refuses to comply with this requirement shall not be relieved of liability or allowed
15 
credit for any loss thereof. The procedures on application for relief shall be governed
16 
by the rules and regulations of the Commission.
17 
Sec. 66. Disposai of Government Property. - When property of the government
18 
becomes unserviceable or is no longer needed, it may be disposed of in the following
19 
manner, following the guidelines issued by the Commission:
20 
(a) Transfer of property between government agencies;
21 
(b) Destruction or sale of unserviceable property;
22 
(c) Sale through public auction of unserviceable property;
23 
(d) Sale through public auction of government property that is no longer
24 
needed; and
25 
(e) Other modes as may thereafter be approved and prescribed in the
26 
guidelines issued by the Commission, or by the joint guidelines issued
27 
by the Commission and the DBM.
28 
Sec. 67. Disposai of Reai Property. -The disposal of real property through sale
29 
shall require prior approval of the Commission: Provided, however, That government
30 
agencies specifically authorized by law or rules to dispose real properties without need
31 
of prior approval of the Commission may proceed with such disposal.
34


1 
Sec. 68. Disposal of Goods and Properties Seized or Confiscated by Law
2 
Enforcement Agencies. - The destruction or disposal of goods and properties seized
3 
or confiscated by law enforcement agencies and presented as evidence in cases before
4 
the courts shall be carried out by such agencies in accordance with their respective
5 
rules and regulations.
6 
Sec. 69. Funds or Property Held by Deceased, Incapacitated or Absconding
7 
Accountable Officer. - When an officer accountable for government funds or property
8 
dies, becomes incapacitated, or absconds in the performance of duties, the head of
9 
the agency shall designate a custodian to take charge of the funds or property until
10 
the appointment of a qualified successor. The head of the agency may appoint a
11 
committee to conduct an inventory of the cash and property for which the officer was
12 
accountable and to determine the responsibility for any shortage therein. A duly
13 
certified copy of the inventory and the report of the committee shall be filed with the
14 
auditor concerned: Provided, That the findings of the committee shall not be
15 
conclusive until the completion of an audit thereon. The head of the agency, whenever
16 
necessary, shall be responsible for filing appropriate case and securing thereof a "hold
17 
departure order" from the court to prevent the absconding officer from leaving the
18 
country.
19 
If the deceased, incapacitated, or absconding officer is accountable for funds
20 
or property of an LGU, the acting custodian and committee shall be designated by the
21 
local chief executive, furnishing notice to the Secretary of the Finance or the
22 
authorized appointing official as prescribed under the Local Government Code.
23 
Sec. 70. Disposal of Foreclosed Assets or Collaterals Acquired in the Regular
24 
Course of Business by GOCCs. - Notwithstanding their respective charters, foreclosed
25 
assets or collaterals acquired in the regular course of business by GOCCs shall be sold
26 
through public bidding following the appraisal thereof by an independent appraiser.
27 
Such sale shall be under the supervision of the proper committee on award or similar
28 
body of the GOCC. Notice of such sale shall be published for not less than two (2)
29 
consecutive days in any national newspaper of general circulation.
30 
In the event that the public bidding fails, the property may be sold at a
31 
negotiated sale at such price as may be fixed by the same committee subject to the
32 
immediate audit of the auditor concerned in accordance with the regulations of the
35


1 
Commission. If the property remains unsold for at least one (1) year, this will be
2 
subject to reappraisal and offered again for sale through public bidding.
3 
Government property may be disposed of as payment of dividend, after
4 
appraisal thereof by an independent appraiser and review by the Commission, subject
5 
to the approval of the DOF.
6 
Sec. 71. Final Report of Accountable Officers. - An accountable officer, shall
7 
after one month upon ceasing to act in official capacity, shall submit to the auditor of
8 
the agency concerned a report of accountability. Upon receipt of the report, the
9 
auditor shall conduct a cash examination on the accountability of such accountable
10 
officer.
11 
Any remaining balance on cash accountability shall be deposited immediately
12 
in the treasury.
13 
Sec. 72. Notice of Disallowances, Charges and Suspensions Issued by the
14 
Auditor to Accountable Officer. - Whenever there is a finding of pecuniary loss or
15 
damage on the part of the government, the auditor concerned shall issue a written
16 
notice of suspension, disallowance or charge through the head of the agency to each
17 
accountable officer, whose accounts have been audited in whole or in part.
18 
Within ninety (90) days, after the receipt of the notice of audit suspension,
19 
failure to submit satisfactory explanation, justification, or evidence to settle or
20 
disprove initial findings of an auditor with regard to irregularity or illegality of the
21 
covered transaction shall render the audit suspension into disallowance.
22 
Any person aggrieved by the decision of the auditor pertaining to disallowances
23 
or charges may appeal the case in accordance with the rules and regulations on
24 
settlement of accounts of the Commission.
25 
TITLE IV
26 
CHAPTER I
27 
Government Accounting
28 
Sec. 73. Appropriation Before Entering into a Contract - No contract involving
29 
the expenditure of public funds shall be entered into unless there is an appropriation
30 
or approved budget therefor, the unexpended balance of which, free of other
31 
obligations, shall be sufficient to cover the proposed expenditure.
36


1 
Sec. 74. Certificate Showing Appropriation to Meet Contract - Except in the
2 
case of a contract for personnel services or for supplies for immediate consumption,
3 
no contract involving the expenditure of public funds by any government agency shall
4 
be entered into or authorized without a certification issued by the proper budget officer
5 
of the agency concerned that funds have been duly appropriated for the purpose and
6 
that the amount necessary to cover the proposed contract for the fiscal year is
7 
available for expenditure on account thereof. The certificate signed by the proper
8 
budget officer shall be attached to and become an integral part of the contract, and
9 
the sum so certified shall not thereafter be available for expenditure for any other
10 
purpose until the obligation of the government agency concerned under the contract
11 
is fully extinguished.
12 
The funding guidelines of the DBM shall be followed for multi-year contracts.
13 
Sec. 75. Void Contract and Liabiiity of Officer. - Any contract entered into
14 
without satisfying the requirements of Sections 75 and 76 shall be void ab initio dx\6
15 
shall not be binding to the government. The officer of any government agency
16 
responsible for the said contract shall be personally liable to the government or other
17 
contracting party as if the transaction had been entered into between private parties.
18 
Sec. 76. Prohibition Against Advance Payment on Government Contracts. -
19 
Except when authorized by law or its implementing rules and regulations, the
20 
government shall not be obliged to make an advance payment on contracts for:
21 
(a) Services not yet rendered;
22 
(b) Supplies and materials not yet delivered, inspected, and accepted,
23 
except in lease of venues and catering services as provided for in the
24 
procurement law and its implementing rules and regulations; and
25 
(c) Infrastructure projects not yet implemented or completed, inspected,
26 
and accepted, other than for mobilization as provided for in the
27 
procurement law and its implementing rules and regulations.
28 
Sec. 77. Limitations on Cash Advance. - The following shall be the limitations
29 
on cash advance:
30 
(a) No cash advance shall be given unless for a legally authorized specific
31 
purpose;
37


1 
(b)Cash advances shall be reported on and liquidated as soon as the
2 
purpose for which it was given has been served;
3 
(c) No additional cash advance shall be granted or allowed unless the
4 
previous cash advance has been settled/liquidated, or after the conduct
5 
of a proper accounting thereof;
6 
(d) Except for cash advance for official travel, no officer or employee shall
7 
be granted cash advance unless such officer or employee is properly
8 
bonded in accordance with existing laws or regulations. The amount of
9 
cash advance which may be granted shall not exceed the maximum cash
10 
accountability covered by bond of an officer or employee;
11 
(e)Only permanent appointed officials shall be designated as disbursing
12 
officers;
13 
(f) Only duly appointed or designated disbursing officers may perform
14 
disbursing functions. Officers and employees who are given cash
15 
advances for official travel need not be designated as disbursing officers;
16 
(g) Transfer of cash advance from one accountable officer to another shall
17 
not be allowed;
18 
(h) The cash advance shall be used solely for specific legal purpose for which
19 
it was granted, and under no circumstance shall it be used for
20 
encashment of checks or for liquidation of a previous cash advance;
21 
(i) The failure of the concerned official or employee to liquidate the cash
22 
advance after due demand by an authorized officer is a prima facie
23 
presumption of malversation despite the absence of a finding of actual
24 
damage to the government;
25 
0) The transfer of cash advance by a disbursing officer to another does not
26 
constitute an expenditure for which the disbursing officer may claim
27 
credit in accounts, but the responsibility of such disbursing officer
28 
continues to attach until the amount has been fully accounted for; or
29 
(k) No cash advance shall be granted for the procurement or implementation
30 
of infrastructure projects.
31 
Any violation of the foregoing provisions shall constitute a valid cause for the
32 
withholding of the salary of the accountable officer without prejudice to the imposition
38


1 
of administrative/civil sanction and criminal prosecution of both the authorizing and
2 
the accountable officials, as may be warranted.
3 
Sec. 78. Transfer of Funds Between Public Officers. - Transfer of government
4 
funds from one officer to another shall, except as allowed by law or regulation, be
5 
made only upon prior direction or authorization of the head of the agency following
6 
the accountability and accounting guidelines issued by the Commission.
7 
Sec. 79. Limitations on Fund Transfers Between Government Agencies and
8 
Instrumentalities. - The following shall be the limitations on transfer of funds from
9 
one government agency to another:
10 
(a) No fund transfers shall be given except for legally authorized specific
11 
purpose as embodied in a Memorandum of Agreement (MOA) executed
12 
between the source and implementing agencies;
13 
(b)The fund transfers shall be reported on and/or liquidated by the
14 
implementing agencies as soon as the purpose for which they have been
15 
granted have been served, but not later than the end of the year;
16 
(c) No additional or new fund transfers shall be made unless the previous
17 
transfers have been fully liquidated as certified by the head of agency
18 
concerned;
19 
(d) The heads of the source and implementing agencies shall be responsible
20 
for compliance with the foregoing requirements.
21 
Failure on the part of the foregoing officials/persons to comply with the above-
22 
mentioned responsibilities shall constitute a ground for administrative, civil or criminal
23 
action, as evidence may warrant.
24 
Sec. 80. Limitations on Fund Transfers from Any Government Agency to a
25 
Private Organization or Entity. - The following shall be the limitations on transfer of
26 
funds from any government agency to any private organization or entity;
27 
(a) No fund transfer from a government agency shall be given to a private
28 
organization or entity unless authorized by law for a specific purpose
29 
which should be embodied in a MOA executed between the source
30 
government agency and the implementing private organization or
31 
entity;
39


1 
(b) Only duly registered, accredited, and reputable private organizations or
2 
entities shall be granted fund transfers;
3 
(c) Fund transfers shall be reported on and liquidated by the impiementing
4 
private organizations or entities to the source government agency as
5 
soon as the project has been compieted or not later than sixty (60) days
6 
after project completion. If the project implementation will go beyond
7 
December 31st of the year, a partial liquidation report as of December
8 
31st of that year shali be submitted to the source government agency
9 
not later than January 15 of the ensuing year;
10 
(d) No additional or new fund transfers shall be made unless the previous
11 
fund transfers have been fully liquidated as certified by the head of the
12 
agency; or
13 
(e) The heads of the source government agency and implementing private
14 
organizations or entities shall be responsible for compliance with the
15 
foregoing requirements.
16 
Failure on the part any public officer, employee, or any person to comply with
17 
the above-mentioned responsibility shall constitute a ground for administrative or civil
18 
action or criminal prosecution.
19 
Sec. 81. Payment of Rewards. - When a reward becomes payable by authority
20 
of law for information given relative to any offense or any illegal activity, or for any
21 
act done in connection with the apprehension of the offender, the reward shall be paid
22 
as prescribed by law or regulations. Such payment of reward shall be subject to audit
23 
in accordance with the regulations of the Commission.
24 
Sec. 82. Loss Through Electronic Collection or Payment - Govern ment agencies
25 
utilizing e-Collection and/or payment systems shall formulate internal policy guidelines
26 
to implement reasonable and appropriate organizational, technical, and personnel
27 
controls to prevent loss of funds caused by internet connectivity issues, errors in
28 
payment instructions, online banking fraud, security breach, or other similar events.
29 
Any loss due to the foregoing shall be the liability of the erring party.
30 
Sec. 83. Replacement of Lost, Stolen or Destroyed Checks. - When payment is
31 
made through check and the same was lost, stolen, or destroyed, the issuing officer
32 
may issue a repiacement check as payment for the same obligation. Replacement shall
40


1 
be made upon the execution of an affidavit of loss and submission of stop payment
2 
order to the drawee bank. If destroyed, presentation of the destroyed check to the
3 
issuing officer is also required. The chief accountant of the agency shall be responsible
4 
for seeing to it that no double payment is made as a result thereof.
5 
Sec. 84. Reversion of Unpaid Trade Payabies Aged More Than Two (2) Years.
6 
- The head of NGAs, LGUs and GOCCs classified as non-commercial public sector
7 
entities shall cause the reversion of trade payables aged more than two (2) years to
8 
the Unappropriated Surplus or Accumulated Surplus/(Deficit).
9 
The head of GOCCs classified as commercial public sector entity shall revert
10 
any unpaid trade payables aged more than two (2) years to retained earnings.
11 
In both instances the reversion shall only be made when there is no actual
12 
claim or is not supported by a valid contract.
13 
CHAPTER II
14 
Accountability and Responsibility for Government Funds and Property
15 
Sec. 85. Accountable Officers; Bond Requirement - Every officer of any
16 
government agency whose duties permit or require the possession or custody of
17 
government funds or property shall be accountable therefor and for the safekeeping
18 
thereof in conformity with law. Other government officers who, though not
19 
accountable by the nature of their duties, may likewise be similarly held accountable
20 
for government funds or property through their participation in the use or application
21 
thereof.
22 
Every accountable officer shall be properly bonded in accordance with law and
23 
the pertinent rules or regulations.
24 
Sec. 86. Primary Responsibility and Fiscal Accountability of the Head of the
25 
Agency. - The head of any agency who is primarily responsible for all government
26 
funds and property pertaining to the agency, shall ensure that:
27 
(a) The required financial and other reports and statements are submitted
28 
by the concerned agency officials in such form and within the period
29 
prescribed by the Commission;
30 
(b)The settlement of disallowances and charges is made within the
31 
prescribed period;
41


1 
(c) The requirements of transactions suspended in audit are complied with;
2 
and
3 
(d) Appropriate actions are taken on the deficiencies noted in the course of
4 
audit.
5 
Persons entrusted with the possession or custody of the funds or property
6 
under the head of the agency shall be accountable therefor and immediately
7 
responsible to the head of the agency, without prejudice to the liability of either party
8 
to the government.
9 
Sec. 87. General Liability for Unlawful Expenditures. - Expenditures of
10 
government funds or uses of government property in violation of law or regulations
11 
shall be the personal liability of the official or employee found to be directly responsible
12 
therefor.
13 
Sec. 88. Degree of Supervision over Accountable Officers. - The head of any
14 
government agency shall exercise due diligence in supervising accountable officers
15 
under the control of such head of the agency to prevent the incurrence of loss of
16 
government funds or property, otherwise the head of the agency shall be jointly and
17 
solidarily liable with the person primarily accountable therefor.
18 
The treasurer of the LGU shall likewise exercise the same degree of supervision
19 
over accountable officers under the oversight of the treasurer, otherwise the treasurer
20 
shall be jointly and solidarily liable with them for the loss of government funds or
21 
property under their stewardship.
22 
Sec. 89. Measure of Liability of Accountable Officers. - Every officer
23 
accountable for government property shall be liable for its money value in case of
24 
improper or unauthorized use or misapplication thereof by such accountable officer or
25 
by any person for whose acts such accountable officer may be responsible for.
26 
Accountable officer shall likewise be liable for all losses, damages, or deterioration
27 
occasioned by negligence in the keeping or use of the property regardless of whether
28 
or not it is in actual custody of such accountable officer.
29 
Every accountable officer for government funds shall be liable for all losses
30 
resulting from the unlawful deposit, use, or application thereof and for all losses
31 
attributable to negligence in the keeping of the funds.
42


1 
Sec. 90. Liability for Acts Done by Direction of Superior Officer. - No
2 
accountable officer shall be relieved from liability by reason of acting under the
3 
direction of a superior officer in paying out, applying, or disposing of the funds or
4 
property for which such accountable officer is accountable, unless prior to such act,
5 
the accountable officer notified the superior officer in writing that the expenditure is
6 
illegal, irregular, excessive, extravagant, unnecessary, and unconscionable. The officer
7 
directing any illegal payment or disposition of the funds or property and the
8 
accountable officer who fails to serve the required notice shall be jointly and solidarily
9 
liable.
10 
Sec. 91. Prohibition Against Pecuniary Interest - No head of agency, members
11 
of the board or commission, accountable officer or public official shall have direct or
12 
indirect pecuniary interest in any contract or transaction of the agency when such
13 
public officer is appointed, or in any office where the public officer has influence.
14 
This prohibition shall likewise apply to the accountable officer's immediate
15 
family and relatives up to the third (3rd) civil degree of consanguinity or affinity.
16 
TITLE V
17 
CHAPTER I
18 
Basic Principles
19 
Sec. 92. Government Accounting. - Government accounting shall encompass
20 
the processes of analyzing, recording, classifying, summarizing, and communicating
21 
all transactions involving the receipt and disposition of government funds and property
22 
in accordance with the applicable international accounting framework. International
23 
Public Sector Accounting Standards or Philippine Financial Reporting Standards, as the
24 
case may be, and interpreting the results thereof.
25 
Sec. 93. Recognition of Financial Transactions. - Each government agency shall
26 
recognize its financial transactions and operations in accordance with pertinent laws,
27 
policies, rules and regulations, and applicable financial reporting framework.
28 
Sec. 94. Accounting Policies, Rules and Regulations. - The Commission shall
29 
promulgate accounting policies, rules, and regulations in accordance with the
30 
applicable international accounting framework, which shall be updated from time to
31 
time as the Commission may deem proper.
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1 
CHAPTER II
2 
Accounting Reports
3 
Sec. 95. Financial Reports and Statements. - The financial reports prepared by
4 
the agencies shall comply with the applicable financial reporting framework to the
5 
government agency.
6 
The financial statements shall be based on official accounting records and
7 
registries kept in accordance with pertinent laws, policies, rules and regulations of the
8 
Commission, and the applicable financial reporting framework to the government
9 
agency.
10 
Sec. 96. Submission of Reports. - The Commission shall require the head of
11 
the agencies, chief accountants, budget officers, cashiers, disbursing/collecting
12 
officers, administrative or personnel officers, and other responsible officials of the
13 
various agencies to submit financial statements, financial accountability reports,
14 
physical inventory reports, current staffing pattern, and such other reports as may be
15 
necessary for the exercise of its functions.
16 
In case of failure or refusal on the part of the officials concerned to submit the
17 
documents and reports mentioned herein within the prescribed period, the head of
18 
the agency shall cause the suspension of the payment of their respected salaries until
19 
they complied with the requirements of the Commission, without prejudice to any
20 
disciplinary action that may be instituted against such official or employee in
21 
accordance with the applicable rules on administrative cases issued by the Civil Service
22 
Commission.
23 
Failure or refusal on the part of the head of the government agency to
24 
implement, without justifiable cause, the sanctions provided in the immediately
25 
preceding paragraph shall constitute as a ground for this Commission to file the
26 
appropriate administrative charge against the erring official concerned.
27 
CHAPTER III
28 
Internal Controls
29 
Sec. 97. Internai ControiSystem. - Internal control shall comprise the integral
30 
process effected by those charged with governance, agencies' management and
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1 
personnel designed to provide reasonable assurance regarding the achievement of
2 
objectives reiating to operations, compliance, reporting and safeguarding of assets.
3 
It shail be the direct responsibility of the agency head to instaii, implement,
4 
and monitor a sound system of internal control.
5 
TITLE VI
6 
Final Provisions
7 
Sec. 98. Duty to Respect the Independence of the Commission. - It shali be
8 
the duty of every person to respect, protect and preserve the independence of the
9 
Commission.
10 
Sec. 99. Administrative Disciplinary Action. - Any unjustified faiiure or refusal
11 
by the public officer concerned to comply with any requirement imposed in this Act
12 
shail constitute neglect of duty or grave misconduct, as the case may be, and shail be
13 
a ground for this Commission to file appropriate administrative disciplinary action
14 
against the said pubiic officer who, upon being found guilty thereof after hearing, shaii
15 
be meted out such penalty commensurate with the degree of guilt in accordance with
16 
the civil service law, without prejudice to criminai prosecution whenever the evidence
17 
warrants.
18 
The auditor shall report any violation of the preceding paragraph to the Director
19 
of the Commission concerned for referral of the case to the 0MB, or other government
20 
disciplining authorities.
21 
Sec. 100. Pena! Provisions. - Any person who shaii commit any of the following
22 
acts shall, upon conviction, suffer imprisonment of not less than six (6) years and one
23 
day to twelve (12) years or a fine of not less than One hundred thousand pesos
24 
(P100,000.00) but not more than One million Two hundred thousand 
pesos
25 
(PI,200,000.00), or both at the discretion of the court:
26 
(a) Refusing or neglecting to render or settle an account as required by law
27 
or regulation after demand by the Commission or its authorized
28 
representatives;
29 
(b) Denying access to databases or information technology systems, or
30 
failing to produce documents, records, or papers under custody within
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1 
fifteen (15) days after demand by the Commission or its authorized
2 
representatives in connection with the conduct of audit;
3 
(c) Destroying or concealing documents, records, or papers which are
4 
officially entrusted to such person, pertaining to the collection, receipt,
5 
expenditure, or disbursement of public funds and utilization or disposal
6 
of government property in connection with the conduct of audit;
7 
(d) Failing or refusing to submit documents required in audit without
8 
justifiable cause shall constitute a ground for disallowance of the claim
9 
under examination, assessment of additional levy or government share,
10 
or withholding or withdrawal of government funding or donations
11 
through the government, as well as for administrative or penal
12 
sanctions; or
13 
(e) Committing other similar acts that impede, frustrate, or delay the
14 
efficient conduct of audit.
15 
If a violation of this Act constitutes an offense or crime punished under Act No.
16 
3815, otherwise known as the Revised Penal Code, as amended, or other special laws
17 
which impose a higher penalty, the latter shall prevail.
18 
If the offender is a corporation, partnership or association or other juridical
19 
entity, the penalty may, in the discretion of the court, be imposed upon such juridical
20 
entity and upon the officer or officers of the corporation, partnership, association, or
21 
entity responsible for the violation.
22 
Sec. 101. Implementing Rules and Regulations. - The Commission Proper shall
23 
promulgate the necessary rules and regulations for the effective implementation of
24 
this Act.
25 
Sec. 102. Appropriations. -The amount necessary for the implementation of
26 
this Act shall be included in the annual GAA.
27 
The COA is hereby authorized to collect the following:
28 
(a) one-half (1/2) of one percent (1%) from the annual national tax
29 
collections not otherwise accruing to special funds or special accounts in
30 
the general fund of the national government, upon authority from the
31 
Secretary of Finance, shall be deducted from such collections and shall
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1 
be remitted to the National Treasury to cover the cost of auditing
2 
services rendered to LGUs;
3 
(b) a fixed amount equivalent to the annual cost of the audit services in the
4 
GOCCs; and
5 
(c) from other sources such as, but not limited to, collections of audit fees
6 
from water districts and special audits, consultancy fees and retained
7 
income.
8 
All GOCCs, including their subsidiaries, and self-governing boards shall
9 
appropriate in their respective budgets and remit not later than the end of the second
10 
quarter of each year an amount equivalent to the appropriation for personnel services
11 
of the audit team to the National Treasury.
12 
The amount for the MOOE and capital outlay to support the annual or the actual
13 
audit operations of the audit teams assigned to NGAs, LGUs and GOCCs which form
14 
part of the approved budget of the audited agency for auditing services under the
15 
GAA, appropriations ordinance or annual operating budget, respectively, shall be
16 
remitted directly to the COA Central Office.
17 
All internally generated income of the Commission from other sources shall
18 
accrue to its retained income fund to be exclusively utilized for the operation and
19 
performance of its mandate.
20 
Sec. 103. Franking Privilege. - All official mail matters and telegrams of the COA
21 
addressed for delivery within the Philippines shall be received, transmitted, and
22 
delivered free of charge: Provided, That mail matters addressed to private persons or
23 
non-government offices shall not exceed one hundred and twenty (120) grams.
24 
Sec. 104. Repealing Clause. - Presidential Decree No. 1445, otherwise known
25 
as the Government Auditing Code of the Philippines; Subtitle B, Title I, Book V, of
26 
Executive Order No. 292, or the Administrative Code of 1987; and all other laws,
27 
executive orders, proclamations, decrees, instructions, rules and regulations, or parts
28 
thereof which are inconsistent or in conflict with any provision of this Act shall be
29 
deemed amended, repealed or modified accordingly.
30 
Sec. 105. Separability Ciause. - Should any provision of this Act or any part
31 
thereof be declared invalid, the other provisions, insofar as they are separable from
32 
the invalid provision, shall remain in force and effect.
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1 
Sec. 106. Effectivity. - This Act shall take effect fifteen (15) days following
2 
completion of its publication in the Official Gazette or in any newspaper of general
3 
circulation.
Approved,
48