Philippine Government: Commission on Audit

Commission on Audit (COA)

• The Commission on Audit (COA) is composed of a Chairman and two Commissioners who are natural-born citizens of the Philippines, at least 35 years old, Certified Public Accountants or members of the Philippine Bar with at least 10 years of experience.
• The COA has the power, authority, and duty to examine, audit, and settle all accounts pertaining to the government, its subdivisions, agencies, and instrumentalities.

Fiscal Autonomy

• The Commission on Audit has fiscal autonomy, with the power to define the scope of its audit and examination, establish techniques and methods, and promulgate accounting and auditing rules and regulations.
• The COA has exclusive authority to correct deficiencies in internal control systems of audited agencies.

Classification of Funds

• General Funds include all resources available for all functions of the government.
• Special Funds are created for specific purposes or objects.
• Bond Funds arise from bonds floated by the government.
• Fiduciary Funds are funds in which the assets are administered by the government in trust.
• Depository Funds are funds over which the officer accountable retains control.
• Redemption Funds are established for the purpose of extinguishing indebtedness or reacquiring capital stock.
• Special Education Fund (SEF) consists of the share of the LGU in the proceeds of the Real Tax Property to be appreciated for the operation and maintenance of public schools.

Audit and Procurement

• An Audit Observation Memorandum (AOM) is issued by the COA to report audit findings.
• A Notice of Disallowance is issued to disallow expenditures or transactions.
• The Government Procurement Policy Board (GPPB) is responsible for the procurement of goods, services, and infrastructure projects.

Procurement Process

• The Procurement Process involves bidding, quotation, and negotiation.
• The Annual Procurement Plan (APP) is approved by the Head of the Agency.
• The Project Procurement Management Plan (PPMP) is prepared by the Procuring Entity.
• The Bidding Documents include the Invitation to Bid, Bid Data Sheet, and Instructions to Bidders.
• The Bids and Awards Committee (BAC) is responsible for the procurement process.
• The Philippine Government Electronic Procurement System (PhilGEPS) is an online platform for procurement.