Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
NINHTEENTH CONGRESS
Second Regular Session
riousEB[LLNO.8912
Introduced by Hon. Representatives Florida "Rida" P. Robes of the
Lone District of the City of Sam Jose del Monte, Bulacan
Explanatory Note
It is undeniable that the Philippines is now entering the age of digital transfomation, and
therefore, policy and governance must be adequate and more responsive to the needs of our society.
There are myriad of audit activities and reporting anong different government agencies across
different jurisdictions.  Auditing must be configured appropriately to  enable the  government to
fulfil  its  mandate  of accountability  to  the  citizens  and  provide  reasonable  assurance  that  its
objectives are met and carried out in an ethical manner.
It has been 50 years since PD  1445 or the Government Auditing Code of the Philippines
took effect and the time the former President Ferdinand Marcos Sr. signed it into law. It was later
anended by the Administrative Code of 1987, which cane in the form of EO 292. Over the years,
there have been profound and pervasive changes in the conduct of governance, management, and
online  business  transactions  and  practices,  including  several  laws  and  bills  for  restructuring
different government institution electronically.
This  Bill  seeks to  strengthen and upgrade the  capabilities  of the  Commission on Audit
(COA)  as  the  key  anti-corruption  agency  through digitalization.  We  need to  put  leverage  and
maximize  technology  to  improve  auditing  techniques,  regulation  and  procedures.     It  is  the
contemporary  approach  to  achieve  more  efficiency  in  maintaining  public  trust  and  ensure
transparency public services rendered by national and local goverrments in the most swift and
secured mamer.
COA is a critical part of the system that would uphold accountability in government, hence
a stronger COA needs to be established as indispensable part of our anti-corruption strategy.
In view of the foregoing, the approval of the Bill is earnestly sought.
ROBES


Republic of the Philippines
HOUSH OF REPRESHNTATIVES
Quezon City
NINETEHNTH CONGRESS
Second Regular Session
i
HOUSE BILL NO.
Introduced by Hon. Representatives Florida "Rida" P. Robes of the
Lone District of the City of Sam Jose del Monte, Bulacan
AN ACT
ADOPTING     DIGITAL     AND     HLECTRONIC     TECHNOLOGY     IN
PRESIDENTIAL       DECREE       1445       OTHERWISE       KNOWN       AS
GOVERNMENT AUDITING CODH 0F THH PHILIPPINES AS AMHNDED
BY  THE  1987  ADMINISTRATIVE  CODE  OF  THE  PHILIPPINES,  AND
APPROPRIATING FUNDS THEREFORE
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
Section  1.  Short  Title.  This  A+ct shdrl be lzINo:wi[L as thf3 "Digital  Modernization  Of the
Government Auditing Code Of the Philippines" .
Section 2. Declaration Of Policy. -  Article 2, Section 27 of thf31987 Constitution prow.ides
Cnd+ the "The  State  shall  maintain honesty  and integrity  in the  public  service  and take
positive and ef iiective measures against groft and corruption. " The state hereky aldapts a,
policy to create and sustain a digitally empowered and integrated technology government
auditing system in order to fulfil its mandate to transform and elevate the standards and
expectations  of  citizenry  as  regards  the  honest,  quality,  effectiveness,  integrity  and
swiftness of public services rendered by national and local government.
Scc/i.o# 3.  CotJer¢ge. -All audit reports of the Government it subdivisions, agencies, and
instrumentalities,   including   government-owned   or  controlled  corporations,   and  non-
goverrmental entities subject to audit of the Commission on Audit (The Commission).
Sccfi.o# 4. rfec D!.gr.ffl!/.4 wdi.fi."g 4c/. The Commission in consultation with the Department
of  Information  and  Communications  Technology  (DICT)  together  with  its  attached
agencies  -  Cybercrime  Investigation and  Coordination  Center  (CICC) National  Privacy
Commission OVPC) National Telecommunications Commission (NTC) and Department of
Interior and Local Government (DILG), and Governance Commission for Government-
Owned   or   Controlled   Corporations   (GCG)   shall   provide   measures  to   develop   and


implement an integrated Digital Auditing system for all government agencies through the
following:
1.   Technology   driven   government   accounting   and   reporting
system compliant with international standards;
2.   Introducing Electronic Audit (e-audit)  system and mechanism
for the prevention and disallowance of irregular, unnecessary,
excessive, extravagant or unconscionable expenditures, or uses
of goverrment funds and properties;
3.   Electronic   submission  and  filing   system  of  COA's   annual
reports to the Offlce of the President;
4.   Digitized and automated audit techniques and procedures for e-
collections and e-payments in the Government;
5.   Electronic   and  Cyber   Security   system  to  detect  fraudulent
documents, transactions, and Reports and ensure its legitimacy
through artificial intelligence or other similar technologies; and
6.   Protection  of  vital  and  sensitive  information  made  through
electronic submissions and filing.
Section 5. Migration, and Digitization Of Existing Paper Audit Documents, Records and
j{cports - All paper-based audit documents, records and reports as far as practicable be
digitalized and migrated to an integrated document online portal or system to serve as the
COA' s centralized national and internal auditing database.
Section 6. Access to View Records Of Auditing, Accounting, and Reports.  A:Il gore:rrlrmeat
agencies,   offices   and   instrumentalities   shall   have   access   to   their   own   electronic
submissions and reports subject to the protection and privacy of Government transaction
congruent to the right of the citizens to information.
Scc/i.o" 7. 4pproprJ.¢/I.o7®. The amount necessary for the initial implementation of this Act
may be charged against the current appropriations of the Commission. Thereafter,  such
sums as may be necessary for the continued implementation of this Act must be included
in the annual General Appropriations Act.
Sec/z.o"   8.   Repor/  ¢#d  rr¢#xp¢re#c}J.   Upon  effectivity   of  this  Act,   an  Oversight
Committee,  hereafter referred to  as  System Implementation Committee  (Committee)  is
hereby  constituted.   This  Committee  shall  set  the  overall  framework  to  review  the
implementation of this Act. It shall likewise determine unforeseen infirmities in the law
and recommend necessary remedial legislations or executive measures if necessary.


The Committee shall be composed of six (6) members:  from the Commission on Audit
(COA), Department of Information and Communications Technology (DICT), Department
of Interior  and  Local  Government  (DILG),  Governance  Commission  for  Government-
Owned or Controlled Corporations (GCG) and two (2) members from each House, to be
designated  by  the   Speaker  of  the  House  of  Representatives  and   Senate  President,
respectively.
For the purpose of remedial legislation, the Committee shall, after the effectivity of this
Act, conduct a review that shall include a systematic evaluation of the impact of this Act,
accomplishments, and the performance of its implementing agency.
Section  9.  Implementing  Rules  and Regulations.  - V\lLthin fiif+eer\ (15) days £Iom the
effectivity of this Act, the Commission shall promulgate the rules and regulations for the
effective implementation of this Act.
Sectl.o#  JO.  Scp¢r¢bJ./I.fy  C/aJwse.  - If any  portion  of provision  of thus  Act  is  declared
unconstitutional,  the  remainder of this  Act  or any  provision not  affected thereby  shall
remain in force and effect.
Scc/i.o#  JJ.  Rcpc¢/I.#g  C/¢wse.  -  All  other  laws,  acts,  presidential  decrees,  executive
orders, issuances, presidential proclamations, rules, and regulations or parts thereof, which
are  contrary  to  and  inconsistent  with  any  provision  of this  Act,  are  hereby  repealed,
amended or modified accordingly,
Scc/I.o# J2. Ej7rcc/I.tJjfy. - This Act shall take effect immediately upon its publication in the
Official Gazette or in a newspaper of general circulation.
Approved,