1.0 RATIONALE

In view of the lapse of more than three (3) decades since the promulgation of Presidential Decree No. 1445 (The Government Auditing Code of the Philippines) and of more than two (2) decades since the promulgation of Republic Act No. 6758 (The Compensation and Position Classification Act of 1989), to remind all those concerned of the relevant provisions of these laws as applicable to officials and employees of the Commission on Audit (COA), this Circular is being issued.

2.0. COVERAGE

This Circular shall cover all officials and employees of the COA, whether holding office at the premises of auditees or at the offices of the COA. Exceptions are those who are detailed in other Government offices who are performing work no longer of the COA but of the Offices to which they are detailed.

This Circular will not also cover honoraria granted to COA officials and employees who act as resource persons (as lecturers/facilitators, coordinators, training program/materials designers and other involvements in training-related activities) of the COA's auditees.

3.0 GUIDANCE

3.1 Support to Audit Groups/Teams

3.1.1 As provided in Presidential Decree No. 1445 (The Government Auditing Code of the Philippines), relevant joint circulars with the Department of Budget  and  Management and Issuances of the COA, auditees shall provide audit groups/teams assigned to augment and/or provide technical, legal, IT support to the audit group/ team for specific durations, with the following:

a. adequate office space as befits the representative(s) of the COA, well-ventilated and properly maintained in terms of aesthetics, security, safety and cleanliness;

b. storeroom for the vouchers and documents over which the COA has legal custody, which is adequate in size and property secured from the elements, including from individuals/groups with malicious/evil intentions;

c facilities such as electric power, water, communication (land telephones, mobile telephones, telefax, internet connection, messengerial services), secu rity services and janitorial services;

d. reference materials, supplies and materials, furniture and equipment as are necessary in the proper operation of the audit group/team;

e. conference and training expenses including those organized and offered by relevant professional organizations;

f. travel and transportation expenses as are needed for audit activities, trainings, consultations and conferences.

For the purpose, the auditees concerned shall include the financial requirements 1 for the above-mentioned   audit support items in their respective budgets for maintenance and other operating expenses (MOOE) and capital outlay pertaining to the COA/Auditing Services.

3.1.2 The property and supply management activities and the audit to be performed in regard to the above-mentioned support items shall comply with relevant laws and rules and regulations, especially those pertaining to illegal, irregular, unnecessary, excessive, extravagant and unconscionable expenditures;

3.1.3 Auditors shall therefore, be provided with only one (1) mobile telephone of a model that shall not be better than those provided by the COA to auditors of the same position/designation who are assigned at the COA Central Office.

3.1.4 Auditors shall be provided with no more than one (1) laptop, computer notebook or computer netbook.

3.1.5  All equipment and furniture to be provided the audit group/team shall be receipted as under the accountability to the Supervising Auditor, Audit Team Leader or an Audit Team Member.

3.1.6 Immediately upon assumption to office in another Audit Group/Team, the COA official or employee concerned shall return all equipment issued by the auditee to which he/she was previously assigned and shall obtain a clearance thereon.

3.2 Prohibition Against Receipt by COA Personnel of Honorarium, Allowance, Bonus or Other Emolument as a Form of fringe benefit or additional compensation.

3.2.1 Quoted hereunder in full is Section 18 of Republic Act No. 6758, otherwise known as The Compensation and Position Classification Act of 1989:

"Section 18. Additional Compensation of Commission on Audit Personnel and of Other Agencies - In order to preserve the independence and integrity of the Commission on Audit (COA), its officials and employees are prohibited from receiving salaries, honoraria, bonuses, allowances or other emoluments from ant government entity, local government unit, and government-owned and controlledcorporations, and government financial institutions, except those compensation paid directly to the COA out of its appropriations and contributions (underscoring supplied)

Government entities, including government-owned or controlled corporations including financial institutions and local government units are hereby prohibited from assessing or billing other government entities, government-owned and controlled corporations including financial institutions or local government units for services rendered by its officials and employees as part of their regular functions for purposes of paying additional compensation to said officials and employees" (Underscoring supplied).

The prohibition for additional compensation as quoted above is clear and unambiguous. To preserve the independence and maintain the integrity of the COA, all its officials and employees are sternly prohibited to receive honorarium, allowance, bonus or other emoluments as a form of fringe benefit or additional compensation from other government agencies.
3.3 Any private person or public official/employee who becomes aware of the commission of any of the above-mentioned prohibited acts or of the receipt by an Audit Group/Team or its Supervising Auditor/Audit Team Leader, any of its members or of any individual providing augmentation or support service to the Audit Team, of support from the auditee which are not among those enumerated herein, is encouraged to bring it to the attention of the COA through a formal complaint. Anonymous complaint may also be entertained provided that there is obvious truth or merit to the allegations contained therein.

4.0 REPEALING CLAUSE

All COA issuances inconsistent herewith are hereby revoked, amended or modified accordingly.

5.0 EFFECTIVITY

This Circular shall take effect immediately.


Adopted: 05 July 2011


(SGD.) MARIAGRACIAPULIDO-TAN
Chairwoman

(SGD.) JUANITO G. ESPINO, JR.
Commissioner

(SGD.) HEIDI LMENDOZA
Commissioner