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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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Second Regular Session 
1 
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SENATE 
Senate Bill No. 
9 
MAY 18 P6 2'7 
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TTE6.E i * / i T t  '?V 
Introduced by SENATOR LACSON 
EXPLANATORY NOTE 
The significant role played by the Commission on Audit is paramount in our quest 
to ensure that taxpayer's money are utilized properly and efficiently by the institutions 
and agencies to which said amounts are appropriated under the law. At the forefront of 
this battle are the auditors, whose main duty is to scrutinize the accounts of different 
government bodies in their effort to ensure that no anomalies or the like are being 
perpetuated to the detriment of the people. During budget deliberations, the reports 
submitted by the Commission serve as a yardstick for Congress in assessing the budget 
proposals of the different government agencies or bodies. 
The confidential aspect of their work makes the employees and officials of the 
Commission on Audit easy targets of political pressure and influence. So much so that if 
not well-compensated, they might give into temptation and abandon their sworn duty to 
protect the government coffers. 
An effective way to insulate the personnel of the Commission on Audit from 
unscrupulous individuals is to provide them with monetary incentives commensurate to 
the mandate of their office. This bill seeks to address this primary concern by granting 
the employees and officials of the Commission on Audit with special allowances 
proportionate to their current salary grade. By giving them an additional incentive, the 
government is thereby recognizing the importance of their profession and the value of 
their work in safeguarding the general welfare. 
In view thereof, the early passage o f  this bill is earnestly recommended. 


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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
Second Regular Session 
1 
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MAY 18 P6 21 
SENATq 
Senate Bill No. 32 57 
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Introduced by SENATOR LACSON 
AN ACT 
GRANTING ADDITIONAL COMPENSATION IN THE FORM OF SPECIAL 
ALLOWANCE FOR THE OFFICERS AND EMPLOYEES OF THE 
COMMISSION ON AUDIT AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled. 
SECTION 1. Statement of Policy. - The function of the Commission on Audit 
(COA), which embraces all matters relating to auditing procedures, systems and controls, 
the maintenance of the general accounts of the government, the preservation and 
safekeeping of transaction vouchers relative to government endeavors, the examination 
and inspection of the books of accounts, records and relevant documents, the audit and 
settlement of funds and properties of all accountable officers, for purposes of 
safeguarding the government's coffers from wastage, is hereby affirmed and recognized. 
SECTION 2. The Independence of COA - The ability of COA to effectively 
discharge its mandate depends largely on the degree of independence it enjoys. To be 
able to preserve its independence, the Commission has to be insulated from any form of 
control and unwarranted influence. Being a valuable partner in nation building, the 
Commission has to be free from any partisan influence and political pressure so that it 
can institute and enforce fiscal control within the overall framework of public fiscal 
administration towards the realization of government goals and objectives. 
SECTION 3. Fiscal Autonomy - The General Appropriations Act authorized 
independent constitutional commissions and offices enjoying fiscal autonomy, such as 
the Commission on Audit, to fix and determine the salaries, allowances, and other 
benefits of their personnel within the limits of their respective appropriations, 
notwithstanding any provision of law to the contrary. 
SECTION 4. Grant of Special Allowance - Pursuant to the declared policy of 
this Act and in order to maintain the Commission's independence, there is a need to keep 
a roster of efficient, dedicated and globally competitive State Auditors, by providing 
them with incentives commensurate to their positions and intricate functions. 
Additionally, to give more meaning and recognition to the sensitive and peculiar 
nature of the functions of the Commission on Audit as the praetorian of the national 
treasury and 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 to the salary grades of the officials and 
employees concerned as provided in Republic Act No. 6758, otherwise known as the 
Salary Standardization Law, as amended. 
SECTION 5. Appropriations - The amount necessary for the initial 
implementation of this Act shall be charged against the current fiscal year’s 
appropriations under the budget of the Commission. Thereafter, such sums as may be 
necessary for the continued implementation of this Act shall be included in the annual 
General Appropriations Act. 
SECTION 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 government-owned and controlled 
corporations (GOCCs) and local government units (LGUs); 
b. Services rendered to private entities audited in connection with their 
dealings with the government arising from subsidies, counterpart 
funding by the government, or where audited records become the basis 
for government levy and share; and 
c. Audit and related services arising from contracts with government 
entities and international organizations; 
3. From income sourced through 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; and 
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 shall be administered by the Chairman of the Commission to 
carry out the provisions of this Act. 
SECTION 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 in 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 the said salary 
increases as may be provided by law. The special allowance equivalent to the increase in 
the basic salary as may be provided by law shall be converted as part of the basic salary: 
Provided, that the amounts converted as basic salary shall be funded from the regular 
appropriations of the COA. Any excess in the special allowances granted under this Act 
not converted as basic salary shall continue to be granted as such and shall continue to be 
funded under Sections 5 and 6 of this Act. 
SECTION 8. Implementing Rules and Regulations - The COA shall issue the 
necessary rules and regulations for the effective implementation of this Act not later than 
ninety (90) days from approval hereof. 
SECTION 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. 


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