TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
25 JL'L -8 P5 :09
SENATE
Senate Bill No.
247
Introduced by Senator JOEL VILLANUEVA
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
EXPLANATORY NOTE
Ensuring accountability in the use of public resources is a critical component of 
effective governance. It allows citizens and institutions to assess how public funds are 
allocated and utilized, based on clear rules and measurable performance outcomes.
At the forefront of this responsibility is the Commission on Audit (COA)—the 
independent constitutional body entrusted with reviewing the financial activities of 
government entities. Its mandate covers the auditing of revenues, expenditures, and 
the management of government assets, including those held in trust or utilized by 
government-owned and controlled corporations with original charters.
Currently, the Commission's work is guided by Presidential Decree No. 1445, also 
known as the Government Auditing Code of the Philippines, which has been in effect 
since 1978. While this framework served its purpose at the time of its enactment, the 
landscape of public finance, governance, and technology has changed drastically over 
the last four decades. Many of the Code's provisions have become misaligned with 
current operational realities and digital innovations.
Acknowledging these developments and aligning with the call made by President 
Ferdinand R. Marcos Jr. in his 2023 State of the Nation Address to modernize 
government auditing practices, this bill proposes a comprehensive update to the 
existing law.


This legislative measure seeks to:
• 
Expand COA's authority to include oversight of private entities involved in 
Public-Private Partnership (PPP) arrangements, operators of public utilities, 
and organizations that receive or manage public funds;
• 
Integrate digital technologies into the auditing system, such as the use of 
electronic receipts, online payment systems, and digitized records to ensure 
faster and more accurate audits; and
• 
Strengthen transparency and promote efficient public financial 
management across all levels of government.
By enacting a modernized auditing code, we take a necessary step toward 
ensuring that government spending is more transparent, systems are more 
responsive, and public officials remain accountable to the people they serve.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
JOEIZ VILLANUEVA'


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
25 JuL -8 P5 :09
SENATE
Senate Bill No. 2A7
Introduced by Senator JOEL VILLANUEVA
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 assembled:
1 
TITLE I
2 
GENERAL PROVISIONS
3 
SECTION. 1. Short Title. - This Act shall be known as the "Revised
4 
Government Auditing Act"
5 
SEC. 2. Declaration of Policy. - It is the policy of the State to ensure
6 
efficiency, economy, and effectiveness in the operations of government by ensuring
7 
that resources of the government shall be managed or utilized in accordance with law,
8 
rules, regulations, and shall be safeguarded against loss or wastage from illegal or
9 
improper disposition. The responsibility to take care that such policy is faithfully
10 
adhered to rests directly with the chief or head of the government agency concerned.
11 
SEC. 3. Definition of Terms. - As used in this Act:
12 
a) Account refers to a list or statement of monetary transactions pertaining to
13 
fund, property, obligation, equity, revenue, collection, or expense, whether or


1 
not entered as item/s of debit or credit in the books of accounts, registry, or any
2 
other record;
3 
b) Accountable Officer refers to the officer of any government agency or
4 
instrumentality who, by the nature of duties and responsibilities, or participation
5 
in the collection or receipt and expenditure, or use of government funds, custody,
6 
and disposal of government property, is required by law or regulation to render
7 
account to the Commission on Audit (COA or Commission). This shall include any
8 
public officer or private person or entity who may have participation in the
9 
transaction;
10 
c) 
Advice to Debit Account (ADA) refers to an authorization issued by the
11 
government entity that serves as an instruction to government servicing banks
12 
to debit a specified amount from its available account balance for the payment
13 
of creditors/payees;
14 
d) AggrievedPartyxef&cs to a person or entity adversely affected by any decision,
15 
order, resolution or ruling of the Commission or any of its duly authorized
16 
representatives;
17 
e) 
Appropriation refers to an authorization by law, appropriation ordinance, or
18 
other enactments, or the corporate operating budget directing the payment of
19 
Personnel Services (PS), Maintenance and Other Operating Expenses (MOOE),
20 
and capital outlay out of government funds under specified conditions and/or
21 
purposes;
22 
f) 
Appeal refers to the process of elevating to a higher authority any decision,
23 
order, resolution or ruling of the Commission or any of its duly authorized
24 
representatives;
25 
g) 
Audit refers to the examination, verification, evaluation and analysis of the
26 
accounts or financial records; the determination of the government entity's
27 
compliance with applicable laws, rules, and regulations; the evaluation of the
28 
economy, efficiency and effectiveness of management systems, operations, and
29 
programs, activities, or projects; and it may also cover other special audits as
30 
may be prescribed by the Commission, and the evaluation of the effectiveness
31 
of internal control systems for purposes of determining the nature, extent, and
32 
timing of the audit;


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r)
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Auditor refers to any officer or employee of the COA duly appointed or 
designated to conduct an audit;
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; 
Audit Decision refers to the action of the auditor as a result of the audit to 
allow, disallow, or charge a particular transaction;
Audit Report refers to the final output of an audit on the accounts, financial 
records, systems;, and operations of a government entity;
Audit Team refers to the basic organizational unit responsible for the audit of 
government and non-government entities;
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;
Cas/r 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;
Cash Advances refer to regular or special advances granted to public officers 
and employees for a public purpose;
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; 
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 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); 
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;


1 
s) Decision or Resolution refers to an adjudication of any case or matter brought
2 
before any authorized official or body in the Commission which shall embody the
3 
facts of the case, the issue/s to be resolved, the ruling, and the law, regulations,
4 
or precedent on which the ruling is based;
5 
t) 
Depository refers to any financial institution lawfully authorized to receive the
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deposit of government moneys;
7 
u) 
Direct Electronic Payment (DEP) refers to an electronic payment scheme
8 
where the payments are made by the government entity itself, using the
9 
intermediary's technology or infrastructure, including the use of ADA;
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v) Disallowance refers to the disapproval in the audit of a transaction, either in
11 
whole or in part, involving government disbursement or property;
12 
w) Electronic Collection (e-Coiiection) refers to a method or manner wherein
13 
revenue, fees, assessments, or obligations due to the government entity are
14 
collected using a mechanical device, electronic device, or computer-based
15 
system wherein no actual money, check, or any physical note is handed through
16 
the hands of the government entity's collecting officer: Provided, That this shall
17 
include collections performed by a financial intermediary;
18 
x) 
Electronic Payment (e-Payment) refers to the disbursement of money or
19 
equivalent electronic representations of legal tender, for purposes of paying
20 
government expenditures, solely through electronic means as opposed to the
21 
use of cash, check, or physical notes to accomplish the same, including the
22 
manner by which an obligation is extinguished by means of sending instruction
23 
for the debit of the government entity's account and the corresponding credit to
24 
the payee's account, and the transfer of funds to a financial intermediary for the
25 
purpose of distribution;
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y) Excessive Expenditures refer to unreasonable expenses that are incurred at
27 
an immoderate quantity and exorbitant price; exceed what is usual or proper,
28 
are unreasonably high and beyond just measure or amount; and/or are in excess
29 
of reasonable limits;
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z) Extravagant Expenditures refer to expenditures that are incurred without
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restraint, judiciousness and economy; are extravagant and exceed the bounds


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of propriety; and/or are immoderate, prodigal, lavish, luxurious, grossly 
excessive, and injudicious;
Financial Reporting Framework refers to a set of accounting principles, 
standards, interpretations, and pronouncements adopted by the 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; 
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;
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;
Illegal Expenditures refer to expenses incurred in violation of the law; 
Irregular 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 established pattern, course, procedure, mode 
of action, behavior, conduct or standard;
Liability refers to either an obligation arising from audit decisions or from 
contracts or quasi-contracts;
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;
Notice of Finality of Decision /W/TTj refers to a written notification addressed 
to the head of the agency that a decision of the Commission has become final 
and executory;


1 
ii) Persons Liable refer to the persons determined to be answerable for an audit
2 
disallowance, charge, or decision by the Commission;
3 
jj) 
Persons Responsible refer to the persons determined to be answerable for
4 
the compliance with the audit requirements as called for in the Notice of
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Suspension (NS);
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kk) Programs, Activities, Projects (PAPs) refer to any work progress or group
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of work progress undertaken to realize the outputs and outcomes of an agency
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which is represented by an item of appropriation in the national budget,
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appropriation ordinances in the case of LCDs, and corporate operating budgets
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in the case of GOCCs;
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II) 
Public Officer refers to any person holding any public office in the government
12 
by virtue of an appointment, election, or contract vested with sovereign functions
13 
of the government;
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mm) Public Purpose refers to any purpose or use directly available to the general
15 
public as a matter of right, including those traditionally viewed as essentially
16 
government functions such as the building 
of roads and the delivery of 
basic
17 
services, and those purposes designed 
to promote social justice 
and public
18 
interest as provided for by law or jurisprudence;
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nn) Regular Cash Advances refer to those granted to cashiers, disbursing officers,
20 
paymasters, and/or property/supply officers for any of the following purposes:
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(1) Salaries and wages;
22 
(2) Commutable allowances;
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(3) Honoraria and other similar payments to officials and employees; and
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(4) Petty operating expenses, consisting of small payments for maintenance
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and operating expenses cannot be paid conveniently by check or are
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required to be paid immediately;
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oo) Revenue refers to income or receipts derived by a government agency from
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taxes, excise, custom duties, fees, royalties, grants, rents, sale of goods or
29 
services, sale of assets and collections from other sources;
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pp) Settlement of Liability refers to the payment, restitution, or other act of
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extinguishing an obligation as provided by law in satisfaction of the liability under


qq)
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a Notice of Disallowance or Notice of Charge (ND/NC) or in compliance with the 
requirements of an NS;
Settlement of Accounts refers to the process of determining the status or 
balance of the account of an accountable officer after audit and examination; 
Settled Account refers to a transaction which after audit does not result to any 
adverse audit decision;
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;
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 the requirements on matters raised 
in the course of audit are submitted or complied with;
Trust Funds refer to funds which are by operation of law or by contract are 
officially in the possession of any government agency or of a public officer as 
trustee, agent, or administrator, which are for the fulfillment of certain 
obligations or a specific purpose;
Transfer-Distribute-Liquidate (TDL) refers to an electronic payment scheme 
where the government entity's funds are first transferred to the intermediary's 
possession and control, which the latter thereafter uses to distribute payments 
to the intended payees of the principal government entity;
Unconscionable Expenditures refer to expenditures which are unreasonable 
and immoderate, which no fair and honest man in his right sense would make or 
accept as reasonable, and which are incurred in violation of ethical and moral 
standards; and


1 
xx) Unnecessary Expenditures refer to expenditures which i) does not satisfy the
2 
test of prudence or the diligence of a good father of a family, thereby denoting
3 
non-responsiveness to the exigencies of the service; ii) are not supportive of the
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objectives and mission of the agency relative to the nature of its operation; iii)
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are not dictated by the demands of good government; and/or iv) the utility
6 
cannot be ascertained at a specific time, are not essential and can be dispensed
7 
with without loss or damage to property, and/or contrary to the mission and
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thrusts of the agency incurring the expenditures.
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SEC. 4. Fundamental Principles. - Financial transactions and operations of
10 
any government agency shall be governed by the fundamental principles set forth
11 
hereunder:
12 
a) No money shall be paid out of any public treasury or depository except in
13 
pursuance of an appropriation law, appropriation ordinance, or other specific
14 
statutory authority, or a Department of Budget and Management (DBM)-
15 
approved corporate operating budget;
16 
b) 
Government funds or property shall be spent or used solely for public purposes;
17 
c) 
Trust funds shall be spent only for the specific purpose for which the trust was
18 
created, or the funds received;
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d) Fiscal responsibility shall, to the greatest extent, be shared by all those
20 
exercising authority over the financial affairs, transactions, and operations of the
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government agency;
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e) Disbursements or disposition of government funds or property shall be approved
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by the proper official of the government agency;
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f) Claims against government funds shall be properly authorized and supported
25 
with the complete required documentation;
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g) All laws, rules, and regulations applicable to financial transactions shall be
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faithfully adhered to; and
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h) Applicable financial reporting framework adopted by the Commission, as
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prescribed by international standards-setting body, as well as sound
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management and fiscal administration, shall be observed: Provided, That they
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do not contravene existing laws, rules, and regulations.
8


1 
TITLE II
2 
CHAPTER I
3 
Organization
4 
SEC. 5. Composition of the Commission on Audit, Quaiifications, Term
5 
and Saiary of Members. - The Commission shall be headed by a Chairperson and
6 
two (2) Commissioners, who shall be natural-born citizens of the Philippines and, at
7 
the time of their appointment, at least thirty-five (35) years of age, either certified
8 
public accountants with at least ten (10) years of auditing experience, or members of
9 
the Philippine Bar who have been engaged in the practice of law for at least ten (10)
10 
years, and must not have been candidates for any elective position in the elections
11 
immediately preceding their appointment. At no time shall all Members of the
12 
Commission belong to the same profession.
13 
The Chairperson and the Commissioners shall be appointed by the President of
14 
the Philippines, subject to the confirmation of the Commission on Appointments, for a
15 
term of seven (7) years without reappointment. Appointments to any vacancy
16 
resulting from death, permanent disability, resignation or removal from office shall be
17 
only for the unexpired portion of the term of the predecessor. In no case shall any
18 
Member be appointed or designated in a temporary or acting capacity.
19 
In case of vacancy pending the appointment of a Chairperson, the senior
20 
member, as to appointment, shall perform the functions of the Chairperson until a
21 
new one is appointed and assumes office.
22 
No member of the Commission shail, during their tenure, hold any other office
23 
or employment in the government. They shall neither be in the practice of any
24 
profession or in the active management or control of any business which in any way
25 
may affect their functions as members of the Commission, nor shall they be financially
26 
interested, directly or indirectly, in any contract with, or in any franchise or privilege
27 
granted by the national government, any of its poiitical subdivisions, agencies or
28 
instrumentalities, including GOCCs and their subsidiaries.
29 
The salary of the Chairperson and the Commissioners shall be fixed by law and
30 
shall not be decreased during their tenure.


1 
SEC. 6. The Commission Proper. - The Commission Proper shall be composed
2 
of the Chairperson and two (2) Commissioners sitting as a collegial body in the
3 
discharge of the powers and functions of the Commission,
4 
SEC. 7. Functions of the Commission Proper. - The following shall be the
5 
functions of the Commission Proper:
6 
a) Promulgate auditing rules and regulations for the determination of the scope and
7 
type of audit and examination by the Commission, establish the techniques and
8 
methods required therefor, including those for the prevention and disallowance
9 
of illegal, irregular, unnecessary, excessive, extravagant, or unconscionable
10 
expenditures or uses of government funds or property;
11 
b) Promulgate accounting and auditing policies, rules, and regulations, including
12 
standards on internal auditing and internal control system, and authorize the
13 
adoption of the international accounting and auditing standards prescribed by
14 
the international standards-setting body;
15 
c) 
Promulgate its own rules concerning pleadings and practices filed before the
16 
Commission or any of its offices: Provided, That such rules shall not diminish,
17 
increase, or modify substantive rights;
18 
d) Decide by a majority vote of all its Members any case or matter brought before
19 
it;
20 
e) Appoint and promote the officials and employees of the Commission in
21 
accordance with the Civil Service laws, rules, and regulations.
22 
f) Prescribe the duties and responsibilities of the officials and employees of the
23 
Commission;
24 
g) Exercise original and concurrent jurisdiction over administrative cases filed
25 
against COA personnel.
26 
h) Recommend to Congress its retirement benefits system pursuant to its fiscal
27 
autonomy;
28 
i) 
Reorganize or rightsize, when necessary, the organizational structure of the
29 
Commission, create new positions, transfer plantilla items, or make adjustments
30 
in the Personnel Services Itemization in accordance with the organization,
31 
staffing and position classification standards and subject to approval of the DBM;
10


1 
j) Authorize the conduct of special audits including re-opening of settled accounts
2 
in case of fraud, collusion, or error of calculation or when new and material
3 
evidence is discovered, and other investigations as may be prescribed by the
4 
rules of the Commission; and
5 
k) Perform such other functions as may be provided by law.
6 
SEC. 8. Duties and Responsibilities of the Chairperson. - The Chairperson
7 
shall act as the presiding officer of the Commission Proper and chief executive officer
8 
of the Commission. As chief executive officer, the Chairperson shall:
9 
a) 
Control and supervise the general administration of the Commission;
10 
b) 
Direct and manage the implementation and execution of policies, standards,
11 
rules, and regulations promulgated by the Commission Proper;
12 
c) Sign appointments for recruitment and promotions, and office orders for audit
13 
engagements;
14 
d) Authorize the transfer, reassignment, secondment, and other forms of personnel
15 
movement of the officials and employees of the Commission in accordance with
16 
the Civil Service laws, rules and regulations;
17 
e) 
Delegate to the Commissioners, Assistant Commissioners, Directors, and other
18 
officials of the Commission such authority on internal administration concerning
19 
personnel, planning, financial, legal, and other matters pertaining to their
20 
respective functional areas as may be determined by the Commission Proper;
21 
f) 
Submit a proposed annual or supplemental budget of the Commission to the
22 
DBM for approval of the Congress;
23 
g) 
Summon any person or public official for the purpose of gathering data or
24 
inquiring into matters pertinent to the formulation, implementation or
25 
enforcement of any order, decision, policy, standard, or regulation of the
26 
Commission Proper;
27 
h) Designate appropriate official as head of the Public Sector Accounting Standards
28 
Board and the Public Sector Auditing Standards Board;
29 
i) Exercise control and supervision over the audit of intelligence and/or confidential
30 
transactions or accounts of government agencies;
31 
j) Exercise control and supervision over the audit of foreign-assisted projects; and
11


1 
k) Perform such other functions as may be required by law, rules, regulations, or
2 
policies of the Commission.
3 
SEC. 9. Duties and Responsibilities of the Commissioners. - The following
4 
are the duties and responsibilities of the Commissioners:
5 
a) Participate in the proceedings of the Commission Proper in the discharge of its
6 
powers and functions; and
7 
b) Perform such other functions as may be provided by law, rules, regulations, or
8 
policies of the Commission.
9 
SEC. 10. Duties and Responsibilities of the Assistant Commissioners.
10 
- The following are the duties and responsibilities of the Assistant Commissioners:
11 
a) Formulate, develop, update, and supervise the implementation of the operational
12 
plan and performance commitment of the Sector headed which are aligned with
13 
the Commission's strategic plan;
14 
b) Supervise the general administration of offices under the jurisdiction of the
15 
Assistant Commissioner;
16 
c) Serve as a member of an Assistant Commissioners Group which shall work as a
17 
collegial body to study, review, and recommend policies, rules, and regulations
18 
for consideration by the Commission Proper or the COA Chairperson; and
19 
d) Perform such other functions as may be assigned.
20 
SEC. 11. The General Counsel. - The Assistant Commissioner of the Legal
21 
Services Sector shall be the General Counsel of the Commission.
22 
SEC. 12. The Central and Regional Offices. - The operations of the
23 
Commission under Section 16 of this Act shall be further carried out by the various
24 
offices under each Sector in the Central and Regional Offices. Each office in the central
25 
office and the regional offices shall be headed by a Director with a rank of Director IV.
26 
All offices under the audit sectors shall supervise their respective audit groups and
27 
audit teams.
28 
The COA Regional Offices shall serve as representatives of the Commission in
29 
the regions and shall be under the direct control and supervision of the Assistant
30 
Commissioner of Local Government Audit Sector.
12


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SEC. 13. Duties and Responsibilities of the Commission Secretary. - The
Commission Secretary shall have the rank of a Director IV and shall provide secretariat 
and administrative support to the Commission Proper.
SEC. 14. Duties and Responsibilities of the Chief Executive Staff. -The 
Chief Executive Staff in the Office of the Chairperson shall have the rank of an Assistant 
Commissioner and shall be responsible for the general administration and supervision 
of the following offices:
a) 
Office of the Chief Executive Staff shaW monitor dissemination of the regulations, 
instructions, and directives issued by the Chairperson; monitor transmittal of the 
audit reports and annual financial reports; maintain schedule, agenda, and make 
necessary arrangements for the Chairperson as Chairperson/Member of inter­
agency committees; and ensure that the Chairperson is fully informed in a timely 
manner of all matters of importance in relation to the conduct of the day-to-day 
operations of the Commission to include accomplishments of targets and 
significant deviation from performance commitments and established goals and 
objectives;
b) 
Internal Audit Office shall provide independent and objective assurance and 
advisory services to obtain reasonable assurance on the adequacy and 
effectiveness of governance, risk management, and control processes of the 
Commission based on its approved Strategic and Annual Audit Plan and establish 
guidelines to ensure conformance with applicable code of ethics and standards 
for internal auditing;
c) 
International and Audit Relations Office shall coordinate and supervise the work 
involving the functions of the COA relating to international audit and relations, 
and audit of foreign-based government agencies;
d) 
Internal Affairs OfhceshaW evaluate and investigate complaints filed against COA 
personnel and recommend the filing of administrative cases or dismissal and/or 
termination of the complaint;
e) 
Project Management Office shall evaluate, integrate, monitor, and act as 
secretariat for the priority projects of the COA and coordinate the resources of 
the Commission and liaise with the development partners in the implementation 
of various projects and programs;
13


1 
f) 
Public Information Office shall manage engagement with internal and external
2 
stakeholders, specifically media and general public, to contribute to achievement
3 
of organizational goals, and provide electronic communication needs of the
4 
Commission; and
5 
g) 
Quality Assurance Office shall conduct quality assurance reviews to provide
6 
reasonable assurance that the quality management system of the Commission is
7 
working effectively and in accordance with professional standards and best
8 
practices.
9 
SEC. 15. Duties and Responsibilities of the Directors. - The Directors of
10 
the Commission shall have the following duties and responsibilities:
11 
a) Formulate, develop, and supervise the implementation of the annual operational
12 
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 regulations
15 
promulgated by the Commission or the Chairperson;
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d) Submit annual performance report and other reports as directed by the
17 
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
20 
g) Perform other functions that may be assigned by higher and competent
21 
authority.
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SEC. 16. 
Operations of the Commission. - The operations of the
23 
Commission shall be undertaken through the following sectors which shall each be
24 
headed by an Assistant Commissioner who shall exercise supervision over various
25 
offices under it:
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a) Local Government Audit Sector shd\\ be responsible for the audit of LCDs;
27 
b) National Government Audit Sector shall be responsible for the audit of National
28 
Government Agencies (NGA);
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c) Corporate Government Audit Sector shall be responsible for the audit of GOCCs;
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d) Special A udit Services Sector shall be responsible for the conduct of performance
31 
audit, fraud audit, and special audits;
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e) Systems and Technical Audit Services Sector shall be responsible for technical
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audit and conduct of other technical-related services; and audit of information
3 
technology and systems and conduct of other services related to information and
4 
communications technology resources and services of government agencies;
5 
f) Government Accountancy Sector shall be responsible for the keeping of the
6 
general accounts of the government, preparation and submission of Annual
7 
Financial Reports and other financial reports, and providing technical assistance
8 
pertaining to accounting and financial management; recommendation on the
9 
adoption and implementation of accounting standards, policies, rules, and
10 
regulations; and development, implementation and maintenance of
11 
computerized systems and tools related to government accounting and financial
12 
management vital to its operation including systems essential for its technical
13 
oversight function over government accountants;
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g) Legal Services Sector shdW be responsible for rendering legal opinions and legal
15 
services; review of legal retainers and other contracts, and COA issuances;
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preparation of comments on proposed congressional bills and issuances of
17 
government agencies; conduct of formal hearing and drafting of decisions on
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administrative cases; enforcement of COA decisions; assistance in the
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prosecution and litigation of cases involving COA and its personnel acting as
20 
witnesses, including preparation of pertinent comments and pleadings;
21 
coordination with the Office of the Solicitor General (OSG), Office of the
22 
Ombudsman (0MB) and other agencies pertaining to cases involving COA; legal
23 
assistance to COA personnel subjected to harassment suits;
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h) Commission Proper Adjudication Sector shall be responsible for drafting of
25 
decisions or resolutions for consideration of the Commission Proper;
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i) Planning, Finance and Management Sector shall be responsible for the
27 
formulation of long-range and annual plans and programs of the Commission;
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providing budget services to the Commission; and formulation, recommendation,
29 
and implementation of policies on the processing of claims, assessment of cost
30 
of audit services, and personnel payroll management;
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j) Administration Sector shall be responsible for the development and maintenance
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of the information system of the Commission, and human resources
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management program; and providing general administrative services and
2 
support to the Commission; and
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k) Professional and Institutional Development Sector shall be responsible for
4 
the formulation, recommendation, and implementation of policies and programs
5 
on learning and development of personnel of the Commission; and providing
6 
capacity building of other government agencies' personnel pertaining to
7 
accounting and auditing matters, and other policies, rules and regulations issued
8 
by the Commission, including those concerning internal auditing and internal
9 
control systems standards.
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The Commission Proper may effect changes in the organization and functions of
11 
the Commission as it may deem necessary in the exercise of its fiscal autonomy in
12 
order to carry out its constitutional mandate.
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SEC. 17. Legal Assistance to Current and Former Officials and
14 
Employees. - Current and former COA officials and employees are authorized to
15 
engage the services of private lawyers for a fee on cases filed against them in relation
16 
to the performance of their official functions in accordance with the guidelines issued
17 
by the Commission Proper.
18 
For this purpose, the Commission shall provide a legal assistance fund to be
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included in its annual appropriation.
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SEC. 18. Professionalization of Audit Services. - The Commission shall
21 
develop, adopt, and implement a competency-based capacity building and continuing
22 
education.
23 
It shall participate and support the activities of international professional
24 
organizations such as the International Organization of Supreme Audit Institutions,
25 
Asian Organization of Supreme Audit Institutions, Association of Southeast Asian
26 
Nations (ASEAN) Supreme Audit Institutions, and other supreme audit institutions.
27 
For this purpose, the capacity building shall include courses on accounting
28 
standards, rules, and regulations relevant to auditing services.
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SEC. 19. Professionalization of Accounting and Other Services. - For
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accounting services, the Commission shall conduct capacity building in coordination
31 
with international professional bodies on accounting services such as the International
32 
Public Sector Accounting Standards Board, Financial and Sustainability Reporting
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Standards Council, and other international professional bodies relevant to accounting
2 
services.
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The Commission shall likewise provide similar capacity building for other services.
4 
SEC. 20. Fiscal Autonomy. - (a) The Commission shall enjoy fiscal autonomy
5 
and its approved annual appropriation shall be automatically and regularly released.
6 
The Chairperson of the COA is authorized to augment any item in the general
7 
appropriations for the Commission from savings in any item in the same appropriation.
8 
SEC. 21. Statement of Objectives. - In keeping with its constitutional
9 
mandate, the Commission adheres to the following objectives:
10 
a) Determine whether the fiscal responsibility which rests directly with the head of
11 
the government agency has been properly, efficiently, and effectively
12 
discharged;
13 
b) Develop and implement a comprehensive audit plan that shall encompass the
14 
examination of financial transactions, accounts, and reports, including
15 
compliance with applicable laws and regulations, as well as evaluation of the
16 
economy, efficiency, and effectiveness of programs, activities and projects;
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c) Institute control measures through the promulgation of auditing and accounting
18 
rules and regulations governing the revenue, receipts, disbursements, and uses
19 
of funds and properties, including audit of fund transfers to non-government
20 
organizations, peoples' organizations (POs) or other private entities for specific
21 
purpose;
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d) Promulgate accounting and auditing rules and regulations to facilitate the
23 
keeping of the accounts of the Government and enhance their information value;
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e) Institute measures designed to preserve and ensure the independence of the
25 
Commission, ensure transparency and accountability in government operations,
26 
and promote service excellence and quality in all aspects of its work; and
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f) Bring its operations closer to the people by the delegation of authority through
28 
decentralization and participatory governance, consistent with the provision of
29 
the Constitution.
30 
SEC. 22. GeneraiJurisdiction. - Pursuant to Section 2(1), 
Article IX (D) of
31 
the 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
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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 fiscal
5 
autonomy under the Constitution;
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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 indirectly,
9 
from or through the government, which are required by law or the granting
10 
institution to submit to such audit as a condition of subsidy or equity.
11 
Provided, however, That in case where the internal control system of the audited
12 
agencies is deemed inadequate, the Commission may adopt such measures, including
13 
temporary or special pre-audit, as are necessary and appropriate to correct the
14 
deficiencies. It shall keep the general accounts of the government, and for such period
15 
as may be provided by law, preserve the vouchers and other supporting papers
16 
pertaining thereto.
17 
The Commission, under Section 2 (2), Article IX (D) of the 1987 Philippine
18 
Constitution, shall have exclusive authority subject to the limitations in Article IX of
19 
the Constitution, to define the scope of its audit and examination, establish the
20 
techniques and methods required therefor, and promulgate accounting and auditing
21 
rules and regulations including those for the prevention and disallowance of irregular,
22 
unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of
23 
government funds and properties.
24 
SEC. 23. Examining Authority. - The Commission shall have authority to
25 
examine in the course of audit, books, papers, documents pertaining to the income of
26 
individuals and corporations in connection with government revenue collection
27 
operations, for the purpose of ascertaining that all revenues determined to be
28 
collectible and due the government have actually been collected.
29 
SEC. 24. Limited Jurisdiction over Private Entities. - The Commission
30 
shall have authority to examine and audit the contracts, agreements, or dealings of
31 
private entities with the government for which such private entities: (i) received
32 
subsidies, counterpart funding, government equity, donation or grant, fund transfer
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or were allowed to use government properties or facilities; or (ii) were required to pay
2 
government share such as, but not limited, to levy, franchise fees, or income share.
3 
SEC. 25. Deputization of Government Licensed Professionals or Experts
4 
to Assist Government Auditors - The Commission Proper may, when the
5 
exigencies of the service so require, deputize and retain, in the name of the
6 
Commission, certified public accountants and such other government licensed
7 
professionals or experts as it may deem necessary to assist its auditors in undertaking
8 
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
15 
Audit - The COA Chairperson may deputize duly accredited Civil Society
16 
Organizations in the conduct of audit to help auditors perform ocular inspection,
17 
validation, evaluation, collection of data or information and monitoring of projects
18 
located in remote and critical areas to enhance credibility, accountability, and
19 
transparency in audit processes.
20 
SEC. 27. Prohibition of Person or Entity from Rendering, Auditing and
21 
Related Services to Government Entities. - No person or entity shali enter into
22 
a contract to render accounting or auditing related services for a fee to any
23 
government agency or conduct of seminars or workshops on topics relating to
24 
accounting; auditing; and internal control system and internal auditing standards for
25 
government personnel without securing clearance from COA. Should the Commission
26 
decide not to undertake the study or service, it shall nonetheless have the power to
27 
review the proposed contract in order to determine the necessity, capability or
28 
expertise of the private party 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 officiais concerned.
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SEC. 28. Government Contracts for the Hiring of a Private Lawyer or 
Law Firm to Handle Legai Cases or Render Legai Services to Government 
Agencies. - No contract involving public funds shall be entered into by any 
government agency to secure the services of a private lawyer or law firm for the for 
the purpose of representing the government agency concerned in court or for 
rendering legal services: Provided, That if hiring of such legal services cannot be 
avoided, or is justified under extraordinary or exceptional circumstances, the written 
conformity and acquiescence or clearance of the OSG or the Office of the Government 
Corporate Counsel, as the case may be, and the written concurrence of the COA shall 
first be secured before the engagement of private legal services: Provided, further. 
That in case of LGUs, only the written approval of the Commission shall be required: 
Provided, furthermore. That the Commission shall issue guidelines for the 
implementation of this provision. Provided, finaiiy. That in case of non-compliance with 
the above requirements and the relevant rules of the Commission, any payment 
thereof shall be disallowed in audit and the same shall be the personal liability of the 
officials concerned.
The request for written concurrence shall be acted upon by the Commission 
within sixty (60) days from the receipt of all documents necessary to evaluate such 
request. The Commission shall be deemed to approve the request for written 
concurrence should it fail to act thereon after the lapse of the (60) day period.
SEC. 29. Prohibition of Private Foundations and Entities to Use the 
Name and Resources of the Government to Solicit and/or Receive 
Donations, Grants, Financiai Assistance from Private Domestic and 
International Donors. - Private foundations and entities organized and managed 
by government officials and employees are prohibited from using the name, resources, 
insignia, or logo of a government agency for whatever enterprise to solicit and/or 
receive donations, grants, financial assistance from the public or other donors.
Any violation of the preceding paragraph shall subject the said foundation or 
entity to special audit by the Commission as if the funds so received are public funds 
which should be recognized in the books of the concerned government agency. 
Refusal to submit itself to such audit shall constitute an offense punishable under 
Section 101 of this Act.
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SEC. 30. Prevention and Disallowance of Illegal, Irregular,
2 
Unnecessary, Excessive, Extravagant or Unconscionable Expenditures or
3 
Uses of Government Funds of Property. - The Commission shall promulgate
4 
accounting and auditing rules and regulations for the prevention and disallowance of
5 
illegal, irregular, unnecessary, excessive, extravagant, or unconscionable expenditures
6 
or uses of government funds or property. Any violation of such rules and regulations
7 
shall be a ground for disallowance without prejudice to administrative, civil and/or
8 
criminal sanctions against the persons liable therefor.
9 
SEC. 31. Settlement of Accounts Between Agencies. - The Commission
10 
shall have the power, under such regulations as it may prescribe, to authorize and
11 
enforce the settlement of accounts subsisting between agencies of the government.
12 
SEC. 32. Collection of Indebtedness Due to the Government - The
13 
Commission, through proper channels, shall assist in the collection and enforcement
14 
of all debts and claims and the restitution of all funds or the replacement or payment
15 
to the government of any government property lost or destroyed.
16 
SEC. 33. Power to Adjudicate Money Claims Against the Government. -
17 
The 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
28 
Government so requires, the Commission Proper may compromise or release in whole
29 
or in part, any settled claim or liability to any government agency, not exceeding Ten
30 
Miilion 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
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to Congress with its recommendations. The threshold amount subject to compromise 
shall be reviewed and adjusted every five (5) years by the Congress upon consultation 
with the COA.
The respective governing bodies of GOCCs and self-governing boards, 
commissions or agencies of the government shall have the authority to condone, 
compromise or release any similar claim or liability when expressly authorized by their 
charters, subject to timely review and post-audit by the Commission: Provided, 
however, That if the power to condone, compromise or release claims or liabilities is 
not explicitly provided under the charter of the government agency concerned, the 
same be exercised exclusively by the Commission in accordance with the provision of 
this Act.
SEC. 35. Satisfaction of Indebtedness Arising from Final and Executory 
Audit Decisions. - When any person or entity is indebted to any government agency 
by reason of a final and executory audit decision, the Commission shall direct the head 
of agency to withhold the salary or any money due to such entity or person liable or 
from the estate, in satisfaction of the indebtedness under the said decision.
In case any money due to the liable entity or person is insufficient to satisfy the 
indebtedness from the final and executory audit decision, the Commission shall have 
the power to levy property or garnish bank accounts to the extent of the unpaid 
balance.
Failure on the part of the head of agency concerned to comply with the preceding 
paragraphs shall render the head of agency personally liable without prejudice to the 
filling of administrative action for neglect of duty.
SEC. 36. Authority to Require Submission of Document Reiative to 
Government Transactions. - The Commission shall have the power to require the 
submission of the original, in whatever form, of any order, deed, contract, or other 
document under which any collection of, or payment from, government funds may be 
made, together with any certificate, receipt, or other evidence in connection therewith. 
If an authenticated copy is needed for record purposes, the copy shall upon request 
be furnished.
In the case of deeds to property purchased by any government agency, the 
Commission shall require a certificate of title entered in favor of the government or
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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
7 
Contempt - The Chairperson, and other officials and employees specially deputized
8 
in writing for the purpose by the Chairperson shall, in compliance with the requirement
9 
of due 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 the
14 
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
19 
shall submit to the President and the Congress of the Philippines not later than the
20 
last day of September of each year an annual report on the financial condition and
21 
operation of all government agencies, which shall include recommendation of
22 
measures necessary to improve economy, efficiency, and effectiveness of these
23 
agencies.
24 
To carry out the purposes of this Section, the Chief Accountant or the official in
25 
charge of keeping the accounts of the government agency shall submit to the
26 
Commission, year-end financial statements and such other supporting or subsidiary
27 
statements as may be required by the Commission not later than the 14th day of
28 
February of each year. Financial statements returned by the Commission for revision
29 
due to non-compliance with accounting standards, rules and regulations shall be
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resubmitted within five (5) working days after the date of receipt by the official
31 
concerned.
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SEC. 39. Annual Report on Appropriations, Allotments, Obligations and
2 
Disbursements, Including Off-Budgetary Funds and Trust Receipts. - Within
3 
one hundred twenty (120) days after the end of every fiscal year, the Commission
4 
shall submit to the President and the Congress of the Philippines an annual report on
5 
appropriations, allotments, obligations and disbursements of NGAs and GOCCs
6 
maintaining Special Accounts in the General Fund and receiving budgetary support
7 
from the government.
8 
For the purpose stated under this Section, agencies are required to submit
9 
financial accountability reports to this Commission in compliance with the pertinent
10 
sections of the General Provisions of the General Appropriations Act (GAA) and
11 
Republic Act No. 7226.
12 
SEC. 40. Powers, Functions, and Duties of Auditors. - The following are
13 
the powers, functions, and duties of auditors as representatives of the Commission:
14 
a) Exercise such powers and functions as may be authorized by the Commission in
15 
the examination of cash and accounts of accountable officers; conduct financial,
16 
compliance, performance, and other special audits; settle accounts of the
17 
agencies under the respective audit jurisdiction;
18 
b) Submit an audit report on the date and in the manner prescribed by the
19 
Commission and render such other reports as the Commission may require;
20 
c) For transactions subject of Audit Observation Memorandum, NS, ND, NC,
21 
complaint or a pending audit or investigation or court case, retain custody and
22 
be responsible for the safekeeping and preservation of paid expense vouchers,
23 
journal entry vouchers, stubs of checks, reports of collections and disbursements,
24 
and similar documents together with their respective supporting papers, until the
25 
final disposition thereof. The Commission shall prescribe the manner for
26 
preservation of these audit or legal evidence;
27 
d) Retain a digital copy of the audited vouchers and supporting papers, official
28 
receipts, and other documents or reports upon turnover or return of the originals
29 
to the auditee for safekeeping and preservation in accordance with the guidelines
30 
promulgated by the Commission Proper;
31 
e) Act as witness in proceedings before the courts, the 0MB, and other quasi-
32 
judicial bodies; and
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f) Perform such other functions as may be assigned to them by the Commission.
2 
SEC. 41. Examination of Cash and Accounts of Accountable Officer. -
3 
The cashbooks, accounts, papers, and cash in the accountability of an accountable
4 
officer shall be opened at all times to audit and examination of the Commission and
5 
its duly authorized representatives.
6 
In case a shortage has been discovered during an examination of the cash and
7 
accounts of an accountable officer, it shall be the duty of the auditor to immediately
8 
demand in writing the restitution of the shortage and notify in writing the head of the
9 
government agency concerned of said shortage in accordance with the regulations of
10 
the Commission. The head of the agency may immediately relieve the accountable
11 
officer and assign another officer to assume the former's duties and responsibilities. A
12 
complete report on the cash examination of the accounts of the accountable officer
13 
with cash shortage shali immediately be submitted by the auditor to the Director
14 
concerned for purposes of referral to the 0MB for investigation and filing of the
15 
appropriate administrative and/or criminal case against the accountable officer
16 
concerned, as the evidence may warrant.
17 
For the purpose of this Section, the auditor shall be regarded as a witness only
18 
in cases filed before the 0MB and the regular courts, and in no case shall the auditor
19 
be named as the complainant therein.
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SEC. 42. Withholding of Salaries and Other Emoluments of Accountable
21 
Officers. -Whenever an accountable officer has been found short of any
22 
accountability during cash examination or audit and after failure to explain
23 
satisfactorily or to produce the missing funds within the period prescribed by the rules
24 
of the Commission, the auditor shall order the head of the agency to direct the
25 
withholding of the salaries and other emoluments due the accountable officer
26 
concerned up to the extent of the liability until the final determination of the latter's
27 
accountability by the Commission or by final judgment of a competent court.
28 
SEC. 43. Constructive Distraint of Property of Accountable Officer. -
29 
Upon discovery in audit of a shortage in the accounts of any accountable officer and
30 
upon a finding of a prima faciec^se. of malversation of public funds or property against
31 
such accountable officer, the Commission may, in order to safeguard the interest of
32 
the government, place the personal property of the accountable officer concerned
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under constructive distraint when there is reasonable grounds to believe that the said 
officer intends to retire from the government service or leave the Philippines, or 
remove, hide, or conceal the property therefrom.
The constructive distraint shall be effected by requiring the accountable officer 
concerned or any other person having possession or control of the property to 
accomplish a receipt in the form prescribed by the Commission, covering the property 
distrained and obligating to preserve the same intact and unaltered and not to dispose 
of it in any manner whatsoever without the express authority of the Commission.
In case the said accountable officer or other person having the possession and 
control of the property sought to be placed under constructive distraint refuses or fails 
to accomplish the receipt herein referred to, the representative of the Commission 
effecting the constructive distraint shall proceed to prepare a list of such property; 
and, in the presence of two witnesses, leave a copy thereof in the premises where the 
property distrained is located. Thereafter, the said property shall be deemed to have 
been placed under constructive distraint, in accordance with the rules and regulations 
of the Commission.
The auditor shall submit a report to the Chairperson on any distraint effected 
pursuant to this Section not later than five (5) calendar days from the date of the 
distraint of the property.
SEC. 44. Appeals from Decisions of Auditors. - Any person aggrieved by 
the decision of an auditor, may within one hundred eighty (180) calendar days from 
receipt of a copy of the decision, appeal in writing to the Commission. The procedures 
of appeal shall be governed by the internal rules concerning pleadings and practices 
of the Commission, including the imposition of reasonable filing and legal research 
fees.
SEC. 45. Period Rendering Decisions of the Commission. - The
Commission Proper shall decide any case brought before the Commission within sixty 
(60) days from the date of its submission for decision or resolution. For this purpose 
of this Section, a case or matter is deemed submitted for decision or resolution upon 
the filing of the last pleading, brief, or memorandum required by the rules of the 
Commission or by the Commission itself.
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CHAPTER II
Decision of the Commission
SEC. 46. Appeal from Decisions of the Commission. - Any decision, order 
or ruling of the Commission may be brought to the Supreme Court on certiorari 
thirty (30) days from the receipt of a copy thereof. When the decision, order, or ruling 
adversely affects the interest of any government agency, the remedy may be taken 
by the proper head of that agency.
SEC. 47. Finality of Decisions of the Commission and Responsibility of 
Head of the Agency. - A decision of the Commission upon any matter within its 
jurisdiction, if not appealed as herein provided, shall be final and executory.
The General Counsel or any authorized official of the Commission shall issue an 
order of execution for final and executory decisions, resolutions, or orders of the 
Commission.
For final and executory decisions on money claims, the claimant shall initiate the 
process of payment with the agency concerned pursuant to existing rules and 
regulations.
SEC. 48. Enforcement of Decisions of the Auditor or Commission 
Proper. - The head of agency shall ensure the immediate settlement of final and 
executory decisions of the Commission. Unreasonable failure or refusal of the head of 
agency or concerned official to implement the final and executory decision of the 
Commission shall render the former administratively liable for neglect of duty.
SEC. 49. Re-audit of Audited Transactions. - All transactions and accounts 
shall be open for audit within ten (10) years after the date of transaction except for 
intelligence and/or confidential transactions or accounts which may be authorized to 
be re-audited by the Chairperson. The Commission shall issue the appropriate 
guidelines for this purpose.
TITLE III 
CHAPTER I
Basic Policies and Standards
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SEC. 50. Government Auditing. - Government auditing shall cover financial, 
compliance and performance audits, and shall be performed in accordance with the 
prevailing International Standards for the Supreme Auditing Institutions (ISSAIs) for 
the purpose of assessing whether the financial information, transactions, programs, 
operations, accounts, and reports of any government agency are in accordance with 
the applicable international accounting framework.
SEC. 51. Principies of Government Auditing. - The auditor shall be guided 
by the following general principles as prescribed under international standards related 
to the audit process:
a) 
Comply with the relevant ethical principles of integrity, independence and 
objectivity, competence, professional behavior, and confidentiality and 
transparency;
b) 
Maintain appropriate professional behavior by applying professional skepticism, 
professional judgment, and due care throughout the audit;
c) 
Perform the audit in accordance with professional standards on quality control;
d) 
Possess collectively the knowledge, skills, expertise, and ability and experience 
to exercise professional judgment necessary to successfully complete the audit;
e) 
Manage the risks of providing a report that is inappropriate in the circumstances 
of the audit;
f) 
Consider materiality throughout the audit process, in relation to stakeholder 
concerns, public interest, regulatory requirements and consequences for society;
g) 
Prepare audit documentation that is sufficiently detailed to provide a clear 
understanding of the work performed, evidence obtained, and conclusions 
reached; and
h) 
Establish effective communication throughout the audit process.
CHAPTER II
Receipts and Disposition of Funds and Properties 
SEC. 52. Accounting for Moneys and Property Received by Pubiic 
Officials. - All moneys and properties officially received by a public officer in any 
capacity and in connection with his or her office, must be accounted for as government 
funds and property, except as may otherwise be specifically provided by law or 
competent authority. The recognition of such money and property in the books of
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accounts of the agency concerned shall be in accordance with pertinent laws, policies, 
rules and regulations, and applicable financial reporting framework.
SEC. 53. Designation of Coiiecting or Disbursing Officers for 
Government Agencies - The head of agency may designate such number of 
collecting and disbursing officers or agents as may be deemed necessary. They shall 
render reports of their collections and disbursements pursuant to the regulations of 
the Commission, to be submitted promptly to the auditor concerned who shall conduct 
the necessary examination and audit.
SEC. 54. Time and Mode of Rendering Account - In the absence of specific 
provision of law, all accountable officers, through the agency accountants, shall render 
their accounts, submit their vouchers, and make deposits of money they have collected 
or held at such time and manner as prescribed in the rules and regulations of the 
Commission. The auditor concerned shall then conduct the necessary examination and 
audit thereof.
SEC. 55. Accruai of Income or Revenues to Unappropriated Surplus of 
the General Fund. - All income or revenues accruing to the agencies by virtue of 
the provisions of law, orders, and regulations shall be deposited in the National 
Treasury or in any duly authorized government depository and shall accrue to the 
unappropriated surplus of the General Fund of the government, unless otherwise 
provided by law.
Income or revenues from business-type activities and revolving funds of 
government agencies may be separately recorded and disbursed in accordance with 
such rules and regulations as may be determined by the Permanent Committee 
created by law, composed of the Secretary of Finance as Chairperson, Secretary of 
Budget and Management, and Chairperson of the Commission, as members.
SEC. 56. Special, Fiduciary and Trust Funds. - Receipts shall only be 
recorded as income of Special, Fiduciary or Trust Funds or Funds other than General 
Fund when the same is duly authorized by law and performed in accordance with the 
rules and regulations issued by the Permanent Committee.
Revenues collected from particular taxes, levy and royalties for special purpose 
shall be treated as a special fund or Special Account in the General Fund and shall be 
paid out only for such purpose: Provided, That, the Permanent Committee may
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recommend for approval of the President the reversion and closure of the Special 
Account in the General Fund, Fiduciary or Trust Funds on any of the following grounds:
a) 
The purpose for which a special fund was created has been fulfilled, terminated 
or abandoned;
b) 
The terms have expired or no longer necessary for attainment of the purpose for 
which said funds were established;
c) 
The account remained dormant for unreasonable length of time;
d) 
The funds in the account are needed by the Government in times of emergency; 
or
e) 
The funds in the account are being used in violation of the rules and regulations 
issued by the Permanent Committee.
SEC. 57. Receipts and Revenues of Local Government Units. - All receipts 
and income accruing to the LGUs shall be deposited in their account maintained in the 
authorized government depository bank or private bank with the prior approval of the 
Department of Finance (DOF).
SEC. 58. Receipts and Revenues of GOCCs. - All receipts and income 
accruing to GOCCs shall be deposited in their account maintained in the authorized 
government depository bank, unless otherwise specifically provided by law or 
agreements.
SEC. 59. Collections by the Government - No payment of any nature shall 
be received by a collecting officer without immediately issuing an official receipt in 
acknowledgment thereof. The receipt may be in the form of postage, internal revenue 
or documentary stamps or such other digital forms as the law or the Commission may 
authorize: Provided, That, in no instance shall temporary or provisional receipts be 
issued to acknowledge the receipt of public funds.
Where digital or electronic devices are used to acknowledge cash receipt, an 
electronic official receipt (eOR) shall be issued and the electronic copies of the pieces 
of evidence of the e-collection through Self-Collect and Credit or Collect-Aggregate- 
Remit or other modes of electronic collection allowed by the rules of the COA. Such 
eORs shall be kept in electronic archives, and shall be subject to inspection and 
verification by the Commission, in accordance with its prescribed guidelines on the 
use of eORs to acknowledge collection of income and other receipts of government.
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The eORs shall be acceptable provided the document maintains its integrity and 
reliability and can be authenticated so as to be usable for subsequent reference: 
Provided, That, the electronic document has remained complete and unaltered, apart 
from the addition of any endorsement and any authorized change, or any change 
which arises in the normal course of communication, storage and display; and that 
the electronic document is reliable for the purpose for which it was generated and for 
all relevant circumstances.
Collections in the form of checks in favor of the government shall be governed 
by the rules of the Commission.
In no instance shall money in the hands of the collecting officer be utilized for 
whatever purpose but should be deposited intact with an authorized government 
depository bank.
SEC. 60. Payment in Settlement - Electronic payment through TDL, credit 
card, DEP such as ADA and other modes may be used to settle all obligations of the 
government in accordance with the guidelines of the Commission and other Public 
Financial Management agencies of the government.
Electronic payment to a person not duly authorized to receive such payment 
shall subject the accountable officer concerned to administrative/civil sanctions or 
criminal prosecution, as may be warranted.
In instances when checks are drawn against the checking account of the 
government agencies maintained with any government depository in payment of an 
obligation:
a) 
The check shall be made payable directly to the creditor to whom the money is 
due, or to the disbursing officer or employee for an official disbursement;
b) 
Checks drawn in payment of any indebtedness shall likewise be accepted by the 
officer concerned, provided it shall be made payable to the entity or the 
authorized official of the payee; and
c) 
When a check drawn in favor of the government is not accepted by the drawee 
bank for any reason, the drawer shall continue to be liable for the sum due and 
all penalties resulting from delayed payment. Where the reasons for non- 
acceptance by the drawee bank are insufficiency of funds and/or closed 
accounts, the drawer shall be criminally liable therefor.
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SEC. 61. Deposit of Money in the Treasury or Authorized Government 
Depository Bank. - Public officers authorized to receive and collect moneys arising 
from taxes, revenues, or receipts of any kind shall remit or deposit the full amount 
received and collected to the account of the National Treasury or in the agencies 
account maintained in the authorized government depository bank not later than the 
following banking day, except when it is impractical to do so due to distance or when 
and the amount to be deposited is minimal.
Fifty percent (50%) share on proceeds from the community tax certificates 
collected by duly deputized barangay treasurers shali be automatically retained and 
deposited intact in the authorized depository banks of the barangay where the tax is 
collected pursuant to the Republic Act No. 7160, as amended, otherwise known as the 
"Local Government Code of 1991."
No collections shali be used for the purpose of disbursements except when 
authorized by law or regulation.
SEC. 62. Acknowiedgment of Receipt of Money by Government 
Depositories. - Ail authorized government depository banks shall acknowledge 
receipt of all money received for the account of the National Treasurer or the agency 
concerned. The acknowledgment shall bear the date of actual deposit and indicate 
from whom and on what account it was received. Such moneys received shall be 
governed by the Treasury Single Account System established pursuant to law.
SEC. 63. Access to Bank Statements for Audit Purposes. - The authorized 
agency official shall regularly furnish the monthly bank statements of the agency to 
the auditor. In the event that the agency fails or refuses to comply with this 
requirement, the auditor shall be authorized to directly request such bank statements 
from the government depository bank concerned. In such case, the bank shall 
promptly provide the requested statements, and shall waive any pertinent bank fee 
that may be imposed on such request.
SEC. 64. Shipment of Government Money or Property by a Carrier; 
Notation of Evidence of Loss. - When government money or property is 
transported from one place to another by a carrier, it shali be the duty of the consignee 
or duly authorized representative to make notation or notations on the bill of lading 
or receipt on any evidence of loss, shortage, or damage.
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SEC. 65. Credit for Loss Occurring in Transit or Due to Fire, Theft, 
Robbery or Force Majeure. - When a loss of government funds, property, 
documents evidencing financial transactions, or records of accountabilities occurs 
while they are in transit or loss is caused by fire, theft, robbery, or force majeure, the 
officer or employee accountable therefor or having custody thereof shall immediately 
notify the auditor concerned and, within thirty (30) days from the occurrence of loss, 
shall file an application for relief, together with the required supporting evidence. 
When warranted, credit for the loss shall be allowed. An officer or employee who fails 
or refuses to comply with this requirement shall not be relieved of liability or allowed 
credit for any loss thereof. The procedures on application for relief shall be governed 
by the rules and regulations of the Commission.
SEC. 66. Disposal of Government Property. - When property of the 
government becomes unserviceable or is no longer needed, it may be disposed of in 
the following manner, following the guidelines issued by the Commission:
a) 
Transfer of property between government agencies;
b) 
Destruction or sale of unserviceable property;
c) 
Sale through public auction of unserviceable property;
d) 
Sale through public auction of government property that is no longer needed; 
and
e) 
Other modes as may thereafter be approved and prescribed in the guidelines 
issued by the Commission, or by the joint guidelines issued by the Commission 
and the DBM.
SEC. 67. Disposal of Real Property. -The disposal of real property through 
sale shall require prior approval of the Commission: Provided, however, That 
government agencies specifically authorized by law or rules to dispose real properties 
without need of prior approval of the Commission may proceed with such disposal.
SEC. 68. Disposal of Goods and Properties Seized or Confiscated by Law 
Enforcement Agencies. - The destruction or disposal of goods and properties seized 
or confiscated by law enforcement agencies and presented as evidence in cases before 
the courts shall be carried out by such agencies in accordance with their respective 
rules and regulations.
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SEC. 69. Funds or Property Held by Deceased, Incapacitated, or 
Absconding Accountable Officer. - When an officer accountable for government 
funds or property dies, becomes incapacitated, or absconds in the performance of 
duties, the head of the agency shall designate a custodian to take charge of the funds 
or property until the appointment of a qualified successor. The head of the agency 
may appoint a committee to conduct an inventory of the cash and property for which 
the officer was accountable and to determine the responsibility for any shortage 
therein. A duly certified copy of the inventory and the report of the committee shall 
be filed with the auditor concerned: Provided, That the findings of the committee shall 
not be conclusive until the completion of an audit thereon. The head of the agency, 
whenever necessary, shall be responsible for filing appropriate case and securing 
thereof a "hold departure order" from the court to prevent the absconding officer from 
leaving the country.
If the deceased, incapacitated, or absconding officer is accountable for funds or 
property of an LGU, the acting custodian and committee shall be designated by the 
local chief executive, furnishing notice to the Secretary of the Finance or the 
authorized appointing official as prescribed under the Local Government Code.
SEC. 70. Disposal of Foreclosed Assets or Collaterals Acquired in the 
Regular Course of Business by GOCCs. - Notwithstanding their respective 
charters, foreclosed assets or collaterals acquired in the reguiar course of business by 
GOCCs shall be sold through public bidding following the appraisal thereof by an 
independent appraiser. Such sale shall be under the supervision of the proper 
committee on award or similar body of the GOCC. Notice of such sale shall be 
published for not less than two (2) consecutive days in any national newspaper of 
general circulation.
In the event that the public bidding fails, the property may be sold at a 
negotiated sale at such price as may be fixed by the same committee subject to the 
immediate audit of the auditor concerned in accordance with the regulations of the 
Commission. If the property remains unsold for at least one (1) year, this will be 
subject to reappraisal and offered again for sale through public bidding.
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Government property may be disposed of as payment of dividend, after appraisal
2 
thereof by an independent appraiser and review by the Commission, subject to the
3 
approval of the DOF.
4 
SEC. 71. Final Report of Accountable Officers. - An accountable officer,
5 
shall after one month upon ceasing to act in official capacity, shall submit to the auditor
6 
of the agency concerned a report of accountability. Upon receipt of the report, the
7 
auditor shall conduct a cash examination on the accountability of such accountable
8 
officer.
9 
Any remaining balance on cash accountability shall be deposited immediately in
10 
the treasury.
11 
SEC. 72. Notice of Disallowances, Charges and Suspensions Issued by
12 
the Auditor to Accountable Officer. - Whenever there is a finding of pecuniary
13 
loss or damage on the part of the government, the auditor concerned shall issue a
14 
written notice of suspension, disallowance or charge through the head of the agency
15 
to each accountable officer, whose accounts have been audited in whole or in part.
16 
Within ninety (90) days, after the receipt of the notice of audit suspension,
17 
failure to submit satisfactory explanation, justification, or evidence to settle or
18 
disprove initial findings of an auditor with regard to irregularity or illegality of the
19 
covered transaction shall render the audit suspension into disallowance.
20 
Any person aggrieved by the decision of the auditor pertaining to disallowances
21 
or charges may appeal the case in accordance with the rules and regulations on
22 
settlement of accounts of the Commission.
23 
TITLE IV
24 
CHAPTER I
25 
Government Accounting
26 
SEC. 73. Appropriation Before Entering into a Contract. - No contract
27 
involving the expenditure of public funds shall be entered into unless there is an
28 
appropriation or approved budget therefor, the unexpended balance of which, free of
29 
other obligations, shall be sufficient to cover the proposed expenditure.
30 
SEC. 74. Certificate Showing Appropriation to Meet Contract. - Except
31 
in the case of a contract for personnel services or for supplies for immediate
32 
consumption, no contract involving the expenditure of public funds by any government
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agency shall be entered into or authorized without a certification issued by the proper 
budget officer of the agency concerned that funds have been duly appropriated for 
the purpose and that the amount necessary to cover the proposed contract for the 
fiscal year is available for expenditure on account thereof. The certificate signed by 
the proper budget officer shall be attached to and become an integral part of the 
contract, and the sum so certified shall not thereafter be available for expenditure for 
any other purpose until the obligation of the government agency concerned under the 
contract is fully extinguished.
The funding guidelines of the DBM shall be followed for multi-year contracts. 
SEC. 75. Void Contract and Liability of Officer. - Any contract entered into 
without satisfying the requirements of Sections 75 and 76 shall be void ab initio and 
shall not be binding to the government. The officer of any government agency 
responsible for the said contract shall be personally liable to the government or other 
contracting party as if the transaction had been entered into between private parties.
SEC. 76. Prohibition Against Advance Payment on Government 
Contracts. - Except when authorized by law or Its implementing rules and 
regulations, the government shall not be obliged to make an advance payment on 
contracts for:
a) 
Services not yet rendered;
b) 
Supplies and materials not yet delivered, inspected, and accepted, except in 
lease of venues and catering services as provided for in the procurement law and 
its implementing rules and regulations; and
c) 
Infrastructure projects not yet implemented or completed, inspected, and 
accepted, other than for mobilization as provided for in the procurement law and 
its implementing rules and regulations.
SEC. 77. Limitations on Cash Advance. - The following shall be the 
limitations on cash advance:
a) 
No cash advance shall be given unless for a legally authorized specific purpose;
b) 
Cash advances shall be reported on and liquidated as soon as the purpose for 
which it was given has been served;
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c) 
No additional cash advance shall be granted or allowed unless the previous cash 
advance has been settled/liquidated, or after the conduct of a proper accounting 
thereof;
d) 
Except for cash advance for official travel, no officer or employee shall be granted 
cash advance unless such officer or employee is properly bonded in accordance 
with existing laws or regulations. The amount of cash advance which may be 
granted shall not exceed the maximum cash accountability covered by bond of 
an officer or employee;
e) 
Only permanent appointed officials shall be designated as disbursing officers;
f) 
Only duly appointed or designated disbursing officers may perform disbursing 
functions. Officers and employees who are given cash advances for official travel 
need not be designated as disbursing officers;
g) 
Transfer of cash advance from one accountable officer to another shall not be 
allowed;
h) 
The cash advance shall be used solely for specific legal purpose for which it was 
granted, and under no circumstance shall it be used for encashment of checks 
or for liquidation of a previous cash advance;
i) 
The failure of the concerned official or employee to liquidate the cash advance 
after due demand by an authorized officer is a prima facie presumption of 
malversation despite the absence of a finding of actual damage to the 
government;
j) 
The transfer of cash advance by a disbursing officer to another does not 
constitute an expenditure for which the disbursing officer may claim credit in 
accounts, but the responsibility of such disbursing officer continues to attach 
until the amount has been fully accounted for; or
k) 
No cash advance shall be granted for the procurement or implementation of 
infrastructure projects.
Any violation of the foregoing provisions shall constitute a valid cause for the 
withholding of the salary of the accountable officer without prejudice to the imposition 
of administrative/civil sanction and criminal prosecution of both the authorizing and 
the accountable officials, as may be warranted.
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SEC. 78. Transfer of Funds Between Public Officers. - Transfer of
2 
government funds from one officer to another shall, except as allowed by law or
3 
regulation, be made only upon prior direction or authorization of the head of the
4 
agency following the accountability and accounting guidelines issued by the
5 
Commission.
6 
SEC. 79. Limitations on Fund Transfers Between Government Agencies
7 
and Instrumentalities. - The following shall be the limitations on transfer of funds
8 
from one government agency to another:
9 
a) 
No fund transfers shall be given except for legally authorized specific purpose as
10 
embodied in a Memorandum of Agreement (MOA) executed between the source
11 
and implementing agencies;
12 
b) 
The fund transfers shall be reported on and/or liquidated by the implementing
13 
agencies as soon as the purpose for which they have been granted have been
14 
served, but not later than the end of the year;
15 
c) 
No additional or new fund transfers shall be made unless the previous transfers
16 
have been fully liquidated as certified by the head of agency concerned;
17 
d) 
The heads of the source and implementing agencies shall be responsible for
18 
compliance with the foregoing requirements.
19 
Failure on the part of the foregoing public officer, employee, or any person to
20 
comply with the above-mentioned responsibilities shall constitute a ground for
21 
administrative, civil or criminal action, as evidence may warrant.
22 
SEC. 80. Limitations on Fund Transfers from Any Government Agency
23 
to a Private Organization or Entity. - The following shall be the limitations on
24 
transfer of funds from any government agency to any private organization or entity:
25 
a) 
No fund transfer from a government agency shall be given to a private
26 
organization or entity unless authorized by law for a specific purpose which
27 
should be embodied in a MOA executed between the source government agency
28 
and the implementing private organization or entity;
29 
b) Only duly registered, accredited, and reputable private organizations or entities
30 
shall be granted fund transfers;
31 
c) Fund transfers shall be reported on and liquidated by the implementing private
32 
organizations or entities to the source government agency as soon as the project
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has been completed or not later than sixty (60) days after project completion. If 
the project implementation will go beyond December 31st of the year, a partial 
liquidation report as of December 31st of that year shall be submitted to the 
source government agency not later than January 15 of the ensuing year;
d) 
No additional or new fund transfers shall be made unless the previous fund 
transfers have been fully liquidated as certified by the head of the agency; or
e) 
The heads of the source government agency and implementing private 
organizations or entities shall be responsible for compliance with the foregoing 
requirements.
Failure on the part any public officer, employee, or any person to comply with 
the above-mentioned responsibility shall constitute a ground for administrative or civil 
action or criminal prosecution.
SEC. 81. Payment of Rewards. - When a reward becomes payable by 
authority of law for information given relative to any offense or any illegal activity, or 
for any act done in connection with the apprehension of the offender, the reward shall 
be paid as prescribed by law or regulations. Such payment of reward shall be subject 
to audit in accordance with the regulations of the Commission.
SEC. 82. Loss Through Electronic Collection or Payment - Government 
agencies utilizing e-Collection and/or payment systems shall formulate internal policy 
guidelines to implement reasonable and appropriate organizational, technical, and 
personnel controls to prevent loss of funds caused by internet connectivity issues, 
errors in payment instructions, online banking fraud, security breach, or other similar 
events. Any loss due to the foregoing shall be the liability of the erring party.
SEC. 83. Replacement of Lost, Stolen or Destroyed Checks. - When 
payment is made through check and the same was lost, stolen, or destroyed, the 
issuing officer may issue a replacement check as payment for the same obligation. 
Replacement shall be made upon the execution of an affidavit of loss and submission 
of stop payment order to the drawee bank. If destroyed, presentation of the destroyed 
check to the issuing officer is also required. The chief accountant of the agency shall 
be responsible for seeing to it that no double payment is made as a result thereof.
SEC. 84. Reversion of Unpaid Trade Payables Aged More Than Two (2) 
Years. - The head of NGAs, LGUs and GOCCs classified as non-commercial public
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sector entities shall cause the reversion of trade payables aged more than two (2)
2 
years to the Unappropriated Surplus or Accumulated Surplus/(Deficit).
3 
The head of GOCCs classified as commercial public sector entity shall revert any
4 
unpaid trade payables aged more than two (2) years to retained earnings.
5 
In both instances the reversion shall only be made when there is no actual claim
6 
or is not supported by a valid contract.
7 
CHAPTER II
8 
Accountability and Responsibility for Government Funds and Property
9 
SEC. 85. Accountable Officers; Bond Requirement - Every officer of any
10 
government agency whose duties permit or require the possession or custody of
11 
government funds or property shall be accountable therefor and for the safekeeping
12 
thereof in conformity with law. Other government officers who, though not
13 
accountable by the nature of their duties, may likewise be similarly held accountable
14 
for government funds or property through their participation in the use or application
15 
thereof.
16 
Every accountable officer shall be properly bonded in accordance with law and
17 
the pertinent rules or regulations.
18 
SEC. 86. Primary Responsibility and Fiscal Accountability of the Head
19 
of the Agency. - The head of any agency who is primarily responsible for all
20 
government funds and property pertaining to the agency, shall ensure that:
21 
a) The required financial and other reports and statements are submitted by the
22 
concerned agency officials in such form and within the period prescribed by the
23 
Commission;
24 
b) The settlement of disallowances and charges is made within the prescribed
25 
period;
26 
c) 
The requirements of transactions suspended in audit are complied with; and
27 
d) 
Appropriate actions are taken on the deficiencies noted in the course of audit.
28 
Persons entrusted with the possession or custody of the funds or property under
29 
the head of the agency shall be accountable therefor and immediately responsible to
30 
the head of the agency, without prejudice to the liability of either party to the
31 
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SEC. 87. Genera! Liability for Unlawful Expenditures. - Expenditures of
2 
government funds or uses of government property in violation of law or regulations
3 
shall be the personal liability of the official or employee found to be directly responsible
4 
therefor.
5 
SEC. 88. Degree of Supervision over Accountable Officers - The head of
6 
any government agency shall exercise due diligence in supervising accountable
7 
officers under the control of such head of the agency to prevent the incurrence of loss
8 
of government funds or property, otherwise the head of the agency shall be jointly
9 
and solidarily liable with the person primarily accountable therefor.
10 
The treasurer of the LGU shall likewise exercise the same degree of supervision
11 
over accountable officers under the oversight of the treasurer, otherwise the treasurer
12 
shall be Jointly and solidarily liable with them for the loss of government funds or
13 
property under their stewardship.
14 
SEC. 89. Measure of Liability of Accountable Officers - Every officer
15 
accountable for government property shall be liable for its money value in case of
16 
improper or unauthorized use or misapplication thereof by such accountable officer or
17 
by any person for whose acts such accountable officer may be responsible for.
18 
Accountable officer shall likewise be liable for all losses, damages, or deterioration
19 
occasioned by negligence in the keeping or use of the property regardless of whether
20 
or not it is in actual custody of such accountable officer.
21 
Every accountable officer for government funds shall be liable for all losses
22 
resulting from the unlawful deposit, use, or application thereof and for all losses
23 
attributable to negligence in the keeping of the funds.
24 
SEC. 90. Liability for Acts Done by Direction of Superior Officer. - No
25 
accountable officer shall be relieved from liability by reason of acting under the
26 
direction of a superior officer in paying out, applying, or disposing of the funds or
27 
property for which such accountable officer is accountable, unless prior to such act,
28 
the accountable officer notified the superior officer in writing that the expenditure is
29 
illegal, irregular, excessive, extravagant, unnecessary, or unconscionable. The officer
30 
directing 
any illegal payment or disposition of the funds or property and the
31 
accountable officer who fails to serve the required notice shall be jointly and solidarily
32 
liable.
41


1 
SEC. 91. Prohibition Against Pecuniary Interest - No head of agency,
2 
members of the board or commission, accountable officer or public official shall have
3 
direct or indirect pecuniary interest in any contract or transaction of the agency when
4 
such public officer is appointed, or in any office where the public officer has influence.
5 
This prohibition shall likewise apply to the accountable officer's immediate family
6 
and relatives up to the third (3rd) civil degree of consanguinity or affinity.
7 
TITLE V
8 
CHAPTER I
9 
Basic Principles
10 
SEC. 92. Government Accounting, - Government accounting shall
11 
encompass the processes of analyzing, recording, classifying, summarizing, and
12 
communicating all transactions involving the receipt and disposition of government
13 
funds and property in accordance with the applicable international accounting
14 
framework. International Public Sector Accounting Standards or Philippine Financial
15 
Reporting Standards, as the case may be, and interpreting the results thereof.
16 
SEC. 93. Recognition ofFinanciai Transactions - Each government agency
17 
shall recognize its financial transactions and operations in accordance with pertinent
18 
laws, policies, rules and regulations, and applicable financial reporting framework.
19 
SEC. 94. Accounting Poiiciesf Ruies and Reguiations - The Commission
20 
shall promulgate accounting policies, rules, and regulations in accordance with the
21 
applicable international accounting framework, which shall be updated from time to
22 
time as the Commission may deem proper.
23 
CHAPTER II
24 
Accounting Reports
25 
SEC. 95. Financiai Reports and Statements. - The financial reports
26 
prepared by the agencies shall comply with the applicable financial reporting
27 
framework to the government agency.
28 
The financial statements shall be based on official accounting records and
29 
registries kept in accordance with pertinent laws, policies, rules and regulations of the
30 
Commission, and the applicable financial reporting framework to the government
31 
agency.
42


1 
SEC. 96. Submission of Reports. - The Commission shall require the head of
2 
the agencies, chief accountants, budget officers, cashiers, disbursing/collecting
3 
officers, administrative or personnel officers, and other responsible officials of the
4 
various agencies to submit financial statements, financial accountability reports,
5 
physical inventory reports, current staffing pattern, and such other reports as may be
6 
necessary for the exercise of its functions.
7 
In case of failure or refusal on the part of the officials concerned to submit the
8 
documents and reports mentioned herein within the prescribed period, the head of
9 
the agency shall cause the suspension of the payment of their respected salaries until
10 
they complied with the requirements of the Commission, without prejudice to any
11 
disciplinary action that may be instituted against such official or employee in
12 
accordance with the applicable rules on administrative cases issued by the Civil Service
13 
Commission.
14 
Failure or refusal on the part of the head of the government agency to
15 
implement, without justifiable cause, the sanctions provided in the immediately
16 
preceding paragraph shall constitute as a ground for this Commission to file the
17 
appropriate administrative charge against the erring official concerned.
18 
CHAPTER III
19 
Internal Controls
20 
SEC. 97. Internai Controi System. - Internal control shall comprise the
21 
integral process effected by those charged with governance, agencies' management
22 
and personnel designed to provide reasonable assurance regarding the achievement
23 
of objectives relating to operations, compliance, reporting and safeguarding of assets.
24 
It shall be the direct responsibility of the agency head to install, implement, and
25 
monitor a sound system of internal control.
26 
TITLE VI
27 
Final Provisions
28 
SEC. 98. Duty to Respect the Independence of the Commission. - It shall
29 
be the duty of every person to respect, protect, and preserve the independence of the
30 
Commission.
31 
SEC. 99. Administrative Discipiinary Action. - Any unjustified failure or
32 
refusal by the public officer concerned to comply with any requirement imposed in this
43


1 
Act shall constitute neglect of duty or grave misconduct, as the case may be, and shall
2 
be a ground for this Commission to file appropriate administrative disciplinary action
3 
against the said public officer who, upon being found guilty thereof after hearing, shall
4 
be meted out such penalty commensurate with the degree of guilt in accordance with
5 
the civil service law, without prejudice to criminal prosecution whenever the evidence
6 
warrants.
7 
The auditor shall report any violation of the preceding paragraph to the Director
8 
of the Commission concerned for referral of the case to the 0MB, or other government
9 
disciplining authorities.
10 
SEC. 100. Pena! Provisions. - Any person who shall commit any of the
11 
following acts shall, upon conviction, suffer imprisonment of not less than six (6) years
12 
and one day to twelve (12) years or a fine of not less than One Hundred Thousand
13 
Pesos (P100,000.00) but not more than One Million Two Hundred Thousand Pesos
14 
(Pl,200,000.00), or both at the discretion of the court:
15 
a) Refusing or neglecting to render or settle an account as required by law or
16 
regulation after demand by the Commission or its authorized representatives;
17 
b) 
Denying access to databases or information technology systems, or failing to
18 
produce documents, records, or papers under custody within fifteen (15) days
19 
after demand by the Commission or its authorized representatives in connection
20 
with the conduct of audit;
21 
c) 
Destroying or concealing documents, records, or papers which are officially
22 
entrusted to such person, pertaining to the collection, receipt, expenditure, or
23 
disbursement of public funds and utilization or disposal of government property
24 
in connection with the conduct of audit;
25 
d) 
Failing or refusing to submit documents required in audit without justifiable cause
26 
shall constitute a ground for disallowance of the claim under examination,
27 
assessment of additional levy or government share, or withholding or withdrawal
28 
of government funding or donations through the government, as well as for
29 
administrative or penal sanctions; or
30 
e) Committing other similar acts that impede, frustrate, or delay the efficient
31 
conduct of audit.
44


1 
If a violation of this Act constitutes an offense or crime punished under Act No.
2 
3815, otherwise known as the Revised Penal Code, as amended, or other special laws
3 
which impose a higher penalty, the latter shall prevail.
4 
If the offender is a corporation, partnership or association or other juridical
5 
entity, the penalty may, in the discretion of the court, be imposed upon such juridical
6 
entity and upon the officer or officers of the corporation, partnership, association, or
7 
entity responsible for the violation.
8 
SEC. 101. Implementing Rules and Regulations. - The Commission Proper
9 
shall promulgate the necessary rules and regulations for the effective implementation
10 
of this Act.
11 
SEC. 102. Appropriations. -The amount necessary for the implementation of
12 
this Act shall be included in the annual GAA.
13 
The COA is hereby authorized to collect the following:
14 
a) 
one-half (1/2) of one percent (1%) from the annual national tax collections not
15 
otherwise accruing to special funds or special accounts in the general fund of the
16 
national government, upon authority from the Secretary of Finance, shall be
17 
deducted from such collections and shall be remitted to the National Treasury to
18 
cover the cost of auditing services rendered to LGUs;
19 
b) a fixed amount equivalent to the annual cost of the audit services in the GOCCs;
20 
and
21 
c) 
from other sources such as, but not limited to, collections of audit fees from
22 
water districts and special audits, consultancy fees and retained income.
23 
All GOCCs, including their subsidiaries, and self-governing boards shall
24 
appropriate in their respective budgets and remit not later than the end of the second
25 
quarter of each year an amount equivalent to the appropriation for personnel services
26 
of the audit team to the National Treasury.
27 
The amount for the MOOE and capital outlay to support the annual or the actual
28 
audit operations of the audit teams assigned to NGAs, LGUs and GOCCs which form
29 
part of the approved budget of the audited agency for auditing services under the
30 
GAA, appropriations ordinance or annual operating budget, respectively, shall be
31 
remitted directly to the COA Central Office.
45


1 
All internally generated income of the Commission from other sources shall
2 
accrue to its retained income fund to be exclusively utilized for the operation and
3 
performance of its mandate.
4 
SEC. 103. Franking Privilege. - All official mail matters and telegrams of the
5 
COA addressed for delivery within the Philippines shall be received, transmitted, and
6 
delivered free of charge: Provided, That mail matters addressed to private persons or
7 
non-government offices shall not exceed one hundred and twenty (120) grams.
8 
SEC. 104. Separability Clause. - If any portion or provision of this Act is
9 
declared unconstitutional, the remainder hereof or any provisions not affected thereby
10 
shall remain in force and effect.
11 
SEC. 105. Repealing Clause. - Any law, presidential decree or issuance,
12 
executive order, letter of instruction, rule, or regulation inconsistent with the
13 
provisions of this Act is hereby repealed or modified accordingly.
14 
SEC. 106. Effectivity. - This Act shall take effect fifteen (15) days after its
15 
complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,
46