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

SIXTEENTH CONGRESS
First Regular Sess

HOUSE BILL

Introduced by Representative Harlin Cast, Abayon

EXPLANATORY NOTE

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

profession, which this bill seeks to promote.

“This measure was previously filed by Senator Manny Villar in the 15% Congress. Passage

of this Bill is eamestly sought now in the 16" Congress,

——s

HARLIN CAST. ABAYON
Representative
First District of Northern Samar


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

SIXTEENTH CONGRESS
First Regular Session

1401

HOUSE BILL

Introduced by Representative Harlin Cast. Abayon

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

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

SECTION 1. Statement of Policy, = The function of the Commission on Audit (COA) which
Secs all matters relating 10 auditing procedures, systems and controls, the maintenance of
the general accounts of the govemment, the preservation and safekeeping of transaction vouchers
nletve to government endeavors, the examination and inspection of the hooks of accounts,
aan esd relevant documents, the audit and settlement of funds and properties of all
recor able officers, for purposes of safeguarding the governments coffers from wastage, is
hereby affirmed and recognized

SEC. 2, COA's Independence. - The effectiveness of the discharge by COA of its delicate and
Se rcone responsibilities is inextricably linked to the degree of independence it enjoys. To he
able 1 preserve its independence, the COA needs io be insulated from any contol and
ao arrarted influences. As vibrant partner in nation building, the COA needs toe free from any
partisan influence and political pressure so that it ean institute and enforce fiscal control within
rare ral framework of public fiscal administration towards the realization of government gosls
and objectives

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

SEC. 4, Grant of Special Allowance. - Pursuant to the declared policy of this Act and in order 19
selntain the COA’ independence, there is a need to keep a roster of efficient, dedicated and
‘lobally competitive State Auditors, by providing them with incentives commensurale to their


positions and intricate functions. Additionally, to give more meaning and recognition to the
Pensitive and peculiar nature of the functions of the COA as praetorian of the national treasury
sett in acknowledging its fiscal autonomy, all officials and employees of the COA shall be
granted special allowances in amounts to be determined by the Secretary of the Department of
Budget and Management (DBM) and the Chairman of the Commission, The grant of the said
special allowance shall not exceed one hundred percent (100%) of the basic salary proportionate
ese salary grades of the officials and employees concemed as provided in Republic Act No.
6758, otherwise known as the Salary Standardization Law, as amended.

SEC. 5. Appropriations. - The amount necessary for the initial implementation of this Act shall
be charged against the eurrent fiscal year's appropriations under the budget of the Commission
Therealr, such sums as may be necessary for the continued implementation of this Act shall be
included in the annual General Appropriations Act.

SEC, 6, Additional Funding Source, - The additional funding sources of the amount necessary to
implement the additional compensation in the form of special allowances granted under this Act
shall be as follows

1. From savings generated by the COA in its operations;
2, From fees collected by COA in performing:

a audit and related services to govemmment-owned and controlled corporations (GOCCs) and
local government units (LGUs);

be gerives rendered to private entities audited in connection with their dealings with, the
tovemment arising from subsidies, counterpart funding by the government, or where audited
records become the basis for government levy and share; and

sredit and related services arising from contracts with government entities and intemational
organizations

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

4, Collection through imposition of fines on administrative cases.

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

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

SEC. 7, Effects of Subsequent Salary Increases. - In the event that subsequent increases in the
salary rates provided under Republic Act No. 6758, as amended, is implemented and/or increases
of salary rates is granted by the President of the Philippines, all special allowances granted under


this Act to the officials and employees of the COA shall be considered as an implementation of
tre afd salany increases as may be provided by law. The special allowance equivalent to the
ee aan in the basic salary as may be provided by law shall be converted as part of the basic
talary, Provided, ‘That the amounts converted as basic salary shall be funded from the regular
appropriations of the COA. Any excess in the special allowances granted under this Act not
aor pred ax basic salary shall continue to be granted as such and shall continue to be funded
under Sections 5 and 6 of this Act.

SEC. 8. Implementing Rules and Regulations, - The COA shall issue the necessary rules and
Feaulations for the effective implementation of this Act not later than ninety (20) days from
approval hereof.

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

SEC. 10, Repealing Clause. - All laws, decrees, orders, rules or regulations or parts thereof
se casistent with the provision of this Act ate hereby repealed, amended, or modified
accordingly

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

Approved,