Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 6761

Introduced by Rep. Rodante D. Marcoleta

EXPLANATORY NOTE

‘An agency's operational efficiency is best measured in the completion of its
desired organizational goals or tasks on time. If targets are not time-bound, actual
performance vis-a-vis organizational targets cannot be accurately gauged.

COA’s practice of conducting post-audit many years after the grant of the fund to
the implementing agencies (IAs) and NGO/PO partners does not sit well with the time-
bound monitoring and inspection function of the audit. It is unfair to require agencies and
offices to chum out documents for projects that have been implemented 5 to 10 years ago,
when COA itself has miserably failed to conduct timely and/or visitorial audits.

There have been instances when parties, even if so willing, were unable to validate
past projects with concerned agencies when confronted by COA auditors many years after
the projects’ implementation.

The longer it takes, the more cumbersome it will be to verify projects’ outcome.
Proponents may have moved to parts unknown and/or beneficiaries become less reliable
due to fleeting memory. Basic records management showed that the records’ shelf life
cannot be guaranteed due to space constraints, not to mention the finite utility and data
capacity of computers.

With its stale post-audit approach, COA can conveniently check on any project
regardless of the period that lapsed from its completion. It can also take its sweet time
when to file an audit report, or when to dispose or act on it when the same is appealed.
This is tantamount to harassment, if not grave abuse of discretion.

To avoid this injustice, COA must be guided by a prescriptive period in the
conduct of its audits.

In view of the foregoing, approval of this bill is eamestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No.6 761

Introduced by Rep. Rodante D. Marcoleta

AN ACT PROVIDING FOR A PRESCRIPTIVE PERIOD FROM WHICH COA
MAY CONDUCT AUDITS AND ISSUE A DECISION ON CASES, AMENDING
THE STATE AUDIT CODE OF THE PHILIPPINES (P.D. 1445) FOR SUCH
PURPOSES

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

SECTION 1. Section 33 of the State Audit Code of the Philippines is hereby
amended to read as follows:

“Section 33. Prevention of irregular, unnecessary, excessive or
extravagant expenditures of funds or uses of property; power to disallow such
expenditures. The Commission shall promulgate such auditing and
accounting rules and regulations as shall prevent irregular, unnecessary,
excessive, or extravagant expenditures or uses of government funds.
if
observed te the ntive nature of the Co: :
relation to Sections 29 and 43 hereof.’

SEC. 2. Section 43 of the State Audit Code of the Philippines (PD 1445) is further
amended to read as follows:

“Section 43. Powers, functions, and duties of the Commission.

CQ) xxx
(2) xxx
GB) xx
4) xxx
(5) In the discharge of all the foregoing powers and functions, a
prescriptive audit period of two (2) years shall be strictly observed from
the completion of | transaction or undertaking is

the subject matter of such audit.”


SEC.3. Section 48 of the State Audit Code of the Philippines is further amended to
read as follows:

“Section 48. Appeal from decision of auditors. Any person aggrieved
by the decision of an auditor of any government agency involving
transactions specified under Sections 33 hereof, or in settlement of an
account or claim may, within six months from receipt of a copy of the

decision, appeal in writing to the Commission; Provided that in the event

jion_of r_W: sive
ond the prescriptive period stipulated under Sections 33 or 43 hereof,
jion shall be deemed without force and such that th
ieved d not fil ”

SEC. 4. Section 49 of the State Audit Code of the Philippines is further amended
to read as follows:

“Section 49. Period for rendering decisions of the Commission. The
Commission, shall decide any case brought before it within sixty days from
the date of its submission for resolution, or shall be counted from the time

to render a proper decision is receiv
whichever is applicable; Provided, that in the event that the Commission
i ide within said period, the case shall be deemed to have been
dismissed without prejudice; Provided further, that all its subordinate
offices shall decide any case within fifteen days.”

SEC. 5. This proposed measure, if enacted into law, shall likewise be retroactive
in application and effect.

SEC. 6. If any part, section or provision of this Act is held invalid or
unconstitutional, the remaining provisions not affected thereby shall continue to be in full
force and effect.

SEC. 7. All laws, decrees, orders, rules regulations and other issuances or parts
thereof which are inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 8. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,