coa presentation

ATTY. DIVINIA M. ALAGON

Assistant CommissionerLocal Government Sector

Commission on Audit

COA Circular No. 2013-006dated September 18, 2013

COA Memorandum No. 2014-009dated August 28, 2014

Joint Circular No. 2015-01dated January 8, 2015


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Guidelines in the disposition of request for documents/ records/ reports/ decisions and other information in the possession and/or custody of COA including furnishing of copies thereof to the requesting party.

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All documents/records/reports/decisions or other information in the custody or possession of this Commission or its officials or employees by reason of their official functions shall be made accessible and available to every person in the manner provided herein during reasonable hours of working days and within the view of the custodian officer, subject to the limitations herein provided.

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LIMITATIONS/dmalagon

COA Circular No. 2013-006 dated September 18, 2013

• The purpose of the request is contrary to law, morals or public policy, or when no purpose is indicated in the request form or RF (Annex A) which can be obtained from any COA Office or downloaded from the COA Website;

LIMITATIONS

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• The documents/ records/ reports/ decisions and other information requested are not described with sufficient particularity in the prescribed RF

LIMITATIONS

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• When the documents/ records/ reports/ decisions and other information requested was prepared by and in the custody of the audited agency, unless the same has been submitted to COA or its representatives and no copy thereof has been retained by or remains in the agency

LIMITATIONS

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• The requesting party or his authorized representative refuses to: (i) accomplish the RF (ii) subscribe the same before the authorized official of this Commission or a Notary Public (iii) Present any two valid IDs enumerated in 4.1.5

LIMITATIONS

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• When the purpose of the request indicates that the documents/ records/ reports/ decisions or other information requested is intended to be used to “fish” for evidence to file a case against a public officer;

LIMITATIONS

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• The documents/ records/ reports/ decisions or other information requested are no longer in the custody or possession of this Commission or its officials and/or employees by reason of their having lost or destroyed by fire, flood or other fortuitous event events, or had already been disposed of after the lapse of the period for safekeeping, in accordance with law and regulations;

LIMITATIONS

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• The documents/ records/ reports/ decisions or other information are under audit or investigation by this Commission or any investigating body, or when such audit or investigation has already been concluded but no corresponding final audit or investigation report has yet been officially transmitted to and received by the audited agency

LIMITATIONS

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• Access to or furnishing of documents/ records/ reports/ decisions or other information would violate Articles 229 and 230 of the Revised Penal Code of the Philippines on revelation of secrets, the laws on trade and commercial secrets, secrecy of bank deposits, anti-graft and corrupt practices act, the confidentiality of records in administrative cases and other similar laws

LIMITATIONS

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• Such documents/records/reports/decisions or other information comprise of:

LIMITATIONS

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(i) Drafts of decisions, order, rulings, memoranda, and the like, of the Commission Proper, Director or Auditor,

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LIMITATIONS

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2

3

4

5

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(ii) Interim Audit Reports;


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LIMITATIONS

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2

3

4

5

6

(iii) Minutes of Meetings of the Commission Proper or any Committee or body duly created by this Commission for specific purpose which may frustrate the implementation of a proposed official action of this Commission


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LIMITATIONS

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2

3

4

5

6

(iv) Intra and Inter Office Notes such as Indorsement, Memorandum, Advisory of Meetings, which do not dispose of a matter officially


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LIMITATIONS

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4

5

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(v) Audit working papers; and


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LIMITATIONS

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3

4

5

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(vi) Other interlocutory communications such as Audit Observations Memorandum (AOM), Audit Highlights and Management Comments, and the like prior to the transmittal of the Audit Report


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• The documents/ records/ reports/ decisions or other information requested pertain to the audit of Confidential and Intelligence funds where national Security is involved

LIMITATIONS

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• The documents/ records/ reports/ decisions or other information that are personal in nature such as the (i) COA Official’s/employee’s address, telephone number, names of family members, and the like and (ii) auditee official’s/employees personal information obtained in the course of fraud audit or other special investigation, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy

LIMITATIONS

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• The information is privileged communication such as neuro-psychiatric records, medical records, communication between a respondent COA official/ employee in an administrative proceeding before the COA and the like

LIMITATIONS

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• The document requested is the Statement of Assets, Liabilities and Net Worth (SALN) of the officials or employees of this Commission (i) for which the ten (1) day period after filing has not yet elapsed; or (ii) for a purpose that is contrary to morals or public policy, or any commercial purpose except if it is to be used for news and communications media for dissemination to the general public (Section 8[D], republic Act [R.A.] No. 6713). In no instance shall the private addresses of the owners of the SSALNs be disclosed to other persons. For this purpose, the Processor shall ensure that the private address/es of their owners are blackened in the copies to be furnished.

LIMITATIONS

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Notwithstanding the foregoing limitation, where the examination or production of documents/ records/ reports/ decisions or other information is directed through a subpoena duces tecum or other compulsory processes issued by the Courts, the Office of the Special Procecutor, the Office of the Ombudsman or any of the latter’s Deputies, or any investigating body authorized

Compliance to Subpoena Duces Tecum

by law to issue subpoenas, the Supervising Auditor (SA), Audit Team Leader (ATL), Division Chief or any official or employee of this Commission shall immediately refer the said subpoena to the Legal Service Chief of the Cluster, Office or Regional Office concerned for evaluation. The subpoena shall be complied with without prior clearance from the Director concerned.

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Request for documents/ records/ reports/ decisions and other information not specifically covered herein shall be referred to the Legal Affairs Office, Legal Services Sector, for evaluation and/or appropriate action.

Request Not Covered by the Guidelines

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1) File a Request using the prescribed RF subscribed and sworn to before any of the officials and employees authorized to administer oath

Procedures to be Observed by Requesting Party

a) if documents in the custody of a specific Audit Team, Central or Regional Office, the RF shall be filed before the SA/Service Chief or ATL concerned

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1) File a Request using the prescribed RF subscribed and sworn to before any of the officials and employees authorized to administer oath


b) Where the custody of he documents is unknown, the RF shall be filed with the Records Management Division (RMD), General Services Office, Administration, Training Services (ATFS) of the Regional Office concerned, as the case may be.

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2) If the request is by mail, the prescribed RF shall be subscribed and sworn to before a notary public.

3) Where submission is by electronic means, the original of the scanned copy of the duly notarized RF shall be presented before release of the documents


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4) Identification Documents (At least 2 of the ff):


GSIS/SSS ID

TIN/ Pag-IBIG/ Philhealth

ID

PassportDriver's license

Student ID

IBP ID Voter’s ID

Current Office

ID

Senior Citizens

IDPRC ID

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5) If the request is submitted by mail or through electronic means, the requesting party shall attach to the RF a photostatic or electronically scanned copy of at least two(2) of the above IDs


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6) Prescribed Fees

P 5.00 per page for hard copy

P 1.00 per page authentication fee

P 20.00 per report for electronic copy of Annual Audit Report, special audit report, etc.

Cost of mailing by private courier or registered mail as determined by the processor



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7) Denied Request


If the request is denied, the requesting party shall have fifteen (15) days from receipt of Notice from the Director concerned within which to file his appeal to the Head of the Sector concerned whose Decision shall be final.

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COA Memorandum No. 2014-009dated August 28, 2014

Guidelines in the Audit of Disaster Risk Reduction and Management (DRRM) Funds

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Guidelines in the Audit of (DRRM) Funds

GENERAL GUIDELINES

1) The audit of the Disaster Risk Reduction and Management (DRRM) shall be part of the regular audit of agencies.

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GENERAL GUIDELINES

2) The financial, compliance and performance audit in the evaluation of DRRM shall be carried out and shall cover the four thematic areas of disaster risk reduction and management activities, as follows:

C

BPreparednessA

Response

Prevention and Mitigation

DRehabilitation and Recovery

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GENERAL GUIDELINES

3) The audit shall be conducted in accordance with Philippine Public Sector Standards on Audit (PPSSAs); INTOSAI GOY 9250 - the Integrated Financial Accountability Framework (IF AF): guidance on improving information on financial flows of humanitarian aid; and the following International Standards of Supreme Audit Institutions (ISSAIs), among others:

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GENERAL GUIDELINES

ISSAl 5500 Introduction to the 5500 series of ISSAIs and INTOSAlGOY 9250

ISSAI 5510 The audit of disaster risk reduction

ISSAI 5520 The audit of disaster-related aid

ISSAI 5530 Adapting audit procedures to take account of the increased risk of fraud and corruption in the emergency phase following a disaster

ISSAl 5540 Use of geospatial information in auditing disastermanagement and disaster-related aid

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GENERAL GUIDELINES

4) The auditors shall have an understanding of RA No. 10121 and its Implementing Rules and Regulations (IRR)

5) The auditors shall be aware of the entire process of disaster risk reduction and management.

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GENERAL GUIDELINES

6) Auditors shall make site visits, if warranted, to observe and evaluate the work of agencies involved in DRRM operations.

7) The results of audit shall be incorporated in the annual audit report and the consolidated results are submitted to the OCD Auditor for nationwide consolidation.

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SPECIFIC GUIDELINES

The auditors shall verify/validate compliance by management with the following:

DRMMPlans

DRMMFunds Procurement

In-kinddonations

Storage/ Warehousing

Distribution

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

Local Disaster Risk and Management (LDRRM) Plans are formulated in accordance with the national, regional and provincial framework in close coordination with LDCs.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

1) The utilization of DRRM Funds is in accordance with the purpose for which these were appropriated and/or with the intent of the donors. In addition, for LGUs, the utilization is in conformity with the LDRRM Fund Investment Plan prescribed in COA Circular No. 2012-002dated September 12, 2012.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

2) The cash donations are acknowledgedthrough the issuance of Official Receipt and deposited with an authorized government depository bank (AGDB). For NGAs, a separate bank account is maintained for disaster funds while for LGU s, the receipts are deposited to their Trust Fund bank account.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

3) For LGUs, receipt of Notice of Funding Check Issued (NFCI) for DRRM is recognized as "Trust Liabilities-DRRM Fund" in the Trust Fund books.

4) In recognizing the foreign currency cash donations, the amount is converted to local currency using the current exchange rate at the date of receipt.

/dmalagon


SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

5) For LGUs, the following are observed for all unutilized LDRRM funds:

CURRENT YEAR APPROPRIATIONS

a. At the end of the year, the amount corresponding to the unutilized appropriation, except those for capital outlay, is transferred to the Trust Fund bank account and recorded in the Trust Fund books as "Trust Liabilities DRRM Fund“.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution



b. The transferred fund is available within the next five years solely for the purpose of supporting disaster risk reduction and management activities.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution



c. After five years, any balance is reverted back to the General Fund and made available for other social services identified by the local sanggunian.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution


CASH DONATIONS

All unutilized cash donations remain in the "Trust Liabilities-DRRM Fund“ until fullydisbursed.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

6) The national and local government agencies prepare the report on the receipt and utilization of the DRRM Funds using the respective formats prescribed in COA Circular Nos. 2014-002 dated April 15, 2014 and 2012-002 dated September 12, 2012.

/dmalagon


SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• In the absence of specific pronouncement by the Government Procurement Policy Board (GPPB) or requirements of the donor, the provisions of RA 9184, otherwise known as the Government Procurement Act, are applied in the procurement of goods and services

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• Procurement of goods and services are determined based on the following, among others:

a) extent of damage

b) number of victims and their basic needs

c) inventories of relief goods and donated PPEs

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• Supplies, materials, relief goods and equipment procured out of DRRM Funds are taken up in the books under the appropriate Inventory and/or PPE account. Issuances to the end-users/beneficiaries, except for PPE, shall be taken up under the appropriate expense account.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• Receipt of in-kind donations is covered by Acknowledgment Receipt while those transferred to other government agencies by an Invoice Receipt.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• Upon receipt, in-kind donations other than PPE are sorted, inventoried/ counted and recorded in the Registry of Donated Relief Goods for DRRM for each kind of relief goods before repacking and distribution

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• Goods and materials, whether donated or purchased, are inventoried, sorted, recorded and reported in accordance with COA Circular No. 2014-002 dated April 15,2014.

• Pending distribution, the relief goods are properly stored and safeguarded in warehouses to avoid possible damage/ spoilage and/or loss/ pilferage.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• Stockpile of goods are maintained for ready distribution in case of calamities. Level of stockpile is based on the policy of the implementing agencies concerned.

• Warehouses/Storage facilities are located in accessible, safe and secured areas.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• In the absence of warehouse/storage facility, temporary distribution hubs/centers are identified for use in delivery, sorting, packing and distribution activities.

• Equipment for DRRM activities are properly secured, maintained and accounted for.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• The distribution is in accordance with the relief distribution mechanism contained in the DRRM Plans

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• The availability of the following are properly coordinated with implementing partners and the recipient LGUs:

a) transportation for the shipment of relief goodsb) equipment for the loading and unloading of

relief goodsc) manpower for the sorting, repacking and

distribution of relief goodsd) escorts to ensure the security of relief goods to

be distributede) provision for petroleum, oil and lubricants

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• The donated relief goods are immediately distributed, especially the perishable items.

• Release of relief goods from the warehouse are properly documented and acknowledged/received by the designated LGU officials and immediately distributed to the intended beneficiaries.

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SPECIFIC GUIDELINES

DRRM Plans

DRRM Funds

Procurement

In-kindDonations

Storage/Warehousing

Distribution

• Release of goods directly to the victims/intended beneficiaries is based on the validated list of affected families.

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Reporting on the Results of Audit

1) The results of audit shall be communicated to the management through the issuance of an Audit Observation Memorandum (AOM).

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2) All prior years' observations and recommendations that remain uncorrected or partially implemented, especially those with material impact on the financial statements and/or operations shall be reiterated by issuing an AOM with updated figures/amounts or data and the reasons for management's inaction.

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3) Any unresolved issues shall be incorporated in the Annual Audit Report under a separate caption "Disaster Risk Reduction and Management”

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4) The unresolved issues shall be transmitted in a matrix form together with the financial and operational highlights, and the status of implementation of prior years’ recommendations, if any, in electronic and bard copies to the OCD Auditor for consolidation.

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Guidelines on the Entitlement, Release,

Use, Reporting and Audit of Confidential

and/or Intelligence Funds

of the Commission on Audit (COA), Department of Budget and Management (DBM), Department of the Interior and Local Government (DILG), Governance Commission for GOCCs (GCG), and the Department of National Defense (DND)

/dmalagon


Guidelines on the Entitlement, Release,

Use, Reporting and Audit of Confidential

and/or Intelligence Funds/dmalagon

• ENTITLEMENT,

• RELEASE,

• USE,

• REPORTING, AND

• AUDIT OF CONFIDENTIAL AND/OR INTELLIGENCE FUNDS


/dmalagon

Guidelines on the Entitlement, Release, Use, Reportingand Audit of Confidential and/or Intelligence Funds

LEGAL BASIS

a) General Provision Nos. 77 and 78 of the FY 2015 General Appropriations Act (GAA) requiring the DBM to issue said guidelines on the release and/or disbursement of Intelligence and Confidential Funds;

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LEGAL BASIS

b) the Administrative Code of 1987 requiring the DILG to prescribe rules and regulations and other issuances and implementing laws on the general supervision of local government units, and the DND to formulate and coordinate the implementation of policies on matters of common interest to the various departments and agencies of the government concerned with the national security

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LEGAL BASIS

c) Republic Act No. 10149 creating the GCG as the central advisory, monitoring and oversight body with authority to formulate, implement and coordinate policies involving Government Owned and Controlled Corporations (GOCCs); and

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LEGAL BASIS

d) Section 2(2) Article IX-D, 1987 Constitution, which mandates the COA to promulgate accounting and auditing rules and regulations, including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and property.

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COVERAGE

Funds provided for confidential and/or intelligence activities that are in the:

a) GAA for the NGAs;

b) in the Corporate Operating Budgets (COBs) of GOCCs, including their subsidiaries, falling under the regulatory jurisdictions of DBM and/or GCG; and

c) in the appropriation ordinances of Local Government Units (LGUs).

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DEFINITION OF TERMS

1) ACCOUNTABLE OFFICER (AO)

refers to every officer of the government whose duties permit or require the possession or custody of government funds and property and who shall be accountable therefor and for the safekeeping thereof in conformity with laws and regulations.

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DEFINITION OF TERMS

2) ANNUAL INVESTMENT PROGRAM (AIP)

refers to the indicative yearly expenditure requirements of the LGUs’ programs, activities

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DEFINITION OF TERMS

3) HEAD OF AGENCY (HOA)

refers to the highest official of the NGA and LGU. In the case of GOCCs, however, and solely for purposes of this Circular, the HoA refers to the President and/or Chief Executive Officer, who is in-charge of the day to day operations of the corporation.

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DEFINITION OF TERMS

4) CASH DISBURSEMENT RECORD (CDR)

refers to a record maintained by the Special Disbursing Officer (SDO) as herein defined showing the receipt, disbursement and balance of an agency’s CF and/or IF at any one time.

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DEFINITION OF TERMS

5) CONFIDENTIAL FUND (CF)

refers to the lump-sum amount provided as such in the GAA for NGAs, in appropriation ordinances for LGUs, and in the COBs for GOCCs, for their Confidential Expenses

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DEFINITION OF TERMS

6) CONFIDENTIAL EXPENSES (CE)

refer to those expenses pertaining/related to surveillance activities in civilian government agencies that are intended to support the mandate or operations of the agency

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DEFINITION OF TERMS

7) INTELLIGENCE AND CONFIDENTIAL FUND AUDIT UNIT (ICFAU)

refers to the unit created under the Office of the Chairperson of the COA in charge of the audit of CF and IF.

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DEFINITION OF TERMS

8) INTELLIGENCE FUND (IF)

refers to the lump-sum amount provided as such in the GAA for NGAs

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DEFINITION OF TERMS

9) INTELLIGENCE EXPENSES (IE)

refer to those related to intelligence information gathering activities of uniformed and military personnel, and Intelligence Practitioners that have direct impact to national security;

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DEFINITION OF TERMS

10) PEACE AND ORDER AND PUBLIC SAFETY PLAN

refers to the 3-year comprehensive and concerted action plan of an LGU that aims to attain a safe, secure, peaceful and progressive community

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DEFINITION OF TERMS

11) PEACE AND ORDER PROGRAMS (POP)

refers to the plan approved by the HoA, in the case of NGAs and LGUs and by the Board of Directors in the case of GOCCs, supporting the request for funds for CE and IE containing the estimated amount per project, activity and

program;

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DEFINITION OF TERMS

12) PHYSICAL AND FINANCIAL PLAN

refers to any or a combination of the following programs, activities and projects which may be included as part of the Peace and Order and Public Safety Plan of an LGU so that these shall be eligible for funding of the CF:

/dmalagon


DEFINITION OF TERMS


a) Crime prevention and law enforcement activities, (e.g. conduct of coordination meetings with partner agencies/stakeholders, increase in police visibility, provision of equipage and/or logistical support for law enforcement agencies and conduct of awareness raising activities for the community);

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DEFINITION OF TERMS


b) Aid and/or capability development for personnel of law enforcement agencies, and volunteers/partners;

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DEFINITION OF TERMS


c) Programs for anti-illegal drug, illegal gambling, counter-insurgency and/or counter-terrorism, illegal logging, illegal mining, illegal fishing, smuggling and human trafficking.

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GENERAL GUIDELINES

• The following are entitled to CF and/or IF:

– x x x x x x– LGUs whose peace and order is a priority concern and

which have duly allocated CF, but not IF, in their annual appropriation ordinances, provided, that, specific amount for POP is included in their Peace and Order and Public Safety Plan and, provided further, that there is a specific appropriation for POP in their annual budget. The computation of allowable CF of an LGU shall be based on the budget of the LGU’s POP only.

/dmalagon


GENERAL GUIDELINES

• All allocations of CF and/or IF shall be supported with a Physical and Financial Plan (Annex A) indicating the proposed amount allocated for each program, activity, and project, where disbursements pertaining to CE and IE shall be based.

/dmalagon


GENERAL GUIDELINES

• For LGUs, release and utilization of the total CF shall be covered by a resolution duly approved by two-thirds (2/3) of the total membership of the Local Peace and Order Council.

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GENERAL GUIDELINES

• For LGUs, in the event that additional CF in excess of the limitation is extremely necessary, additional appropriation supported with duly authorized supplemental budget shall be approved by the Secretary of DILG.

/dmalagon


GENERAL GUIDELINES

• CF shall be used only for the following Confidential Expenses:

– Purchase of information necessary for the formulation and implementation of program, activities and projects relevant to the national security and peace and order;

/dmalagon


GENERAL GUIDELINES


– Rental of transport vehicle related to confidential activities;

– Rentals and the incidental expenses related to the maintenance of safehouses;

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GENERAL GUIDELINES


– Purchase or rental of supplies, materials and equipment for confidential operations that cannot be done through regular procedures without compromising the information gathering activity concerned;

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GENERAL GUIDELINES


– Payment of rewards to informers (non-employee of concerned government agency) subject to the following conditions:

a) Approval by the HoA in the case of LGUs and NGAs and approval by the Chairman of the Board in case of GOCC.

b) Supported with documents evidencing the success of the information gathering and/or surveillance activities on account of the information given by the informer; and

c) Directly related to the conduct of the specific confidential activities of authorized agencies.

/dmalagon


GENERAL GUIDELINES


– Uncover/Prevent illegal activities that pose a clear and present danger to agency personnel/property, or other facilities and resources under the agency protection, done in coordination with the appropriate law enforcement agencies

– Others that may be authorized by the GAA or other special law/s.

/dmalagon

• Conduct of confidential activities shall, as far as practicable, be done with proper collaboration with any of the following law enforcement agencies:

Such collaboration, if undertaken, must be specified in the accomplishment report of the concerned agency.


GENERAL GUIDELINES

other agencies with law-

enforcement functions.

PNP AFP PDEA

/dmalagon

• IF shall be used only for the following Intelligence Expenses carried out by uniformed and military personnel, and Intelligence Practitioners:

1) Intelligence and counter intelligence activities that have direct impact to national security.

2) Special projects and case operation plans as approved by the HoA involving covert or semi-covert psychological, internal security operation, and peace and order activities, as well as programs/ projects/ campaigns against lawlessness and lawless elements involving intelligence activities.


GENERAL GUIDELINES

/dmalagon

• In no case shall CF or IF be used for:

1) Salaries, wages, overtime, additional compensation, allowance or other fringe benefits of officials and employees who are employed by the government in whatever capacity or elected officials, except when authorized by law.

2) Representation, consultancy fees or entertainment expenses; or

3) Construction or acquisition of buildings or housing structures.


GENERAL GUIDELINES

/dmalagon

• Disbursements from CF shall be supported with documentary evidence of payment, among others, which shall be submitted to the ICFAU in a sealed envelope signed by the SDO.


GENERAL GUIDELINES

/dmalagon

• Disbursements from IF shall be supported with documentary evidence of payment in a sealed envelope signed by the SDO, kept at all time in the vault in his office. The same may be inspected by the ICFAU or officers/personnel duly authorized in writing by the COA Chairperson if the circumstances so demand.


GENERAL GUIDELINES

/dmalagon

• Disbursements from CF and IF shall be supported by Certification of the Accountable Officer of the CF or IF signed under oath (Annex B), containing the following:


GENERAL GUIDELINES

– That the certifying officer or employee is accountable for the disbursements from the cash advance of CF and/or IF;

– That expenses were incurred in connection with the agency’s intelligence and/or confidential operations and activities, with supporting documents attached to the liquidation for CF, and for the IF, documentary evidence of payment kept in a sealed envelope in the vault in the office of the SDO;

/dmalagon



GENERAL GUIDELINES

– That the details and supporting documents of transactions that are classified are in the custody of the agency and kept in its vault which may be inspected by ICFAU if the circumstances so demand;

/dmalagon



GENERAL GUIDELINES

– That the funds are not used for payment of salaries and wages, overtime, additional compensation, allowance or other fringe benefits of officials and employees, representation/ entertainment expenses, consultancy fees and construction or acquisition of buildings or housing structures;

/dmalagon



GENERAL GUIDELINES

– That the purchase of equipment (if there is any) is relevant to the confidential and/or intelligence activities; and

– That the expenditures are necessary and utilized for legal purposes.

/dmalagon

• In case of misuse of IF/CF, and depending on the participation in the transaction, the Budget Officer, Chief Accountant, the Treasurer and Project Officer may likewise be held accountable with the SDO.


GENERAL GUIDELINES

/dmalagon

• Release, augmentation, and additional IF/CF


PROCEDURAL GUIDELINES

CF of LGUs

a) LGUs with peace and order concerns shall allocate in their respective Annual Appropriations Ordinance funds for POP, as part of its Peace and Order and Public Safety Plan, as required under 4.1.3 of this Joint Circular.

The total amount for CF shall not exceed thirty percent (30%) of the total annual amount allocated for the LGU’s POP.

b) The release and use of CF shall be covered by a Resolution duly approved by two-thirds (2/3) of the total membership of the Local Peace and Order Council.

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CF of LGUs

c) LGUs shall secure Certification from the concerned PNP Chief in their locality relative to the peace and order situation highlighting in concrete details the circumstances which require the urgency in allocating CF.

d) Additional CF shall be covered with a supplemental budget authorized by the Sanggunian concerned and/or reviewed by the DBM Secretary or his authorized representative as the case maybe, the source of which shall not come from 20% Development Fund of the LGU.

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CF of LGUs

e) Request for additional CF in excess of the ceiling provided in 5.1.3.1 shall be filed with the concerned DILG Field Officer justifying the need thereof supported with the following documentary requirements:

1) Duly approved Three-Year Peace and Order and Public Safety Plan;

2) Annual and Supplemental Appropriations Ordinance indicating the appropriations for CF;

3) Certification from the Budget Officer as to the availability of appropriations;

4) Certifications from the concerned PNP Chief in their locality relative to the peace and order situation highlighting in concrete details the circumstances which require the urgency in allocating funds for confidential activities;

5) Physical and Financial Plans for both the original allocation for CF and the subject request.

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CF of LGUs

f) Upon review of the documents and field-verification of the circumstances as to the need to allocate additional CF, the DILG Regional Office shall forward the request within five (5) days to the Director of the Bureau of Local Government Supervision (BLGS) for further evaluation. The Director of the BLGS shall submit his or her recommendation to the Secretary of the DILG, who shall approve or disapprove the request.

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• Reporting requirements

– To strengthen accountability, all HoAs of NGAs, LGUs and GOCCs which released CF and/or IF shall submit Quarterly Accomplishment Report on the use of CF and IF (Annex C), which must be duly certified by the HoA, not later than the 15th day of the first month of the succeeding quarter, as follows:

x x x x x x

LGUs – to the Secretary of the DILG.



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• Reporting requirements

– Agencies shall report the specific detail of the corresponding expenditures by object in the Accomplishment Report as indicated in the Physical and Financial Plan



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• Granting of cash advance

Guidelines on the Grant and Liquidation of Cash Advance for CF and/or IF and the Audit thereof

– Cash advances shall be used for specific legal purpose related to CF and/or IF. Under no circumstance shall it be used for liquidation of the previous cash advance or be transferred from one accountable to another.

– Cash advances for CF and/or IF shall be drawn by duly designated and bonded SDOs or HoA for the implementation of a program, activity, and project chargeable to the corresponding CF and/or IF of the agency, upon approval of the HoA. In no case shall cash advance for CF and/or IF be utilized as reimbursement of the expenses prior to the granting of cash advance.

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– The cash advance shall not exceed the maximum cash accountability of the SDO/HoA as indicated in his/her designation order and approved bond application.

– Cash advances chargeable against the CF and IF of agencies shall not exceed the appropriation therefore and the ceilings as specified herein.

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– Cash advances shall be limited to the requirements for three (3) months.

The disbursement voucher (DV) shall clearly state the duration of implementation of the projects. If the implementation of the project will extend to more than three months, additional amount may be granted only after liquidation of the previous cash advance.

If on the other hand cash advances are drawn monthly, liquidation shall also be done monthly.

Cash advances shall be granted only upon the certification of the Agency Accountant stamped or printed on the disbursement voucher (DV) that previous cash advance for the same purpose, project or activity given to the SDO requesting cash advance has been liquidated and proper accounting thereof was made in accordance with this Joint Circular.

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– No transfer of funds/appropriation through cash advances or any form of payment from one agency to another for purposes of confidential and intelligence activities shall be allowed.

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– The following are the required documents to support the DV for the grant of cash advance for CF and IF common to NGAs, GOCCs and LGUs:

a) Certified copy of the designation of the SDO. If the HoA is the SDO, a Certification by the HoA to that effect shall be signed by him/her;

b) Certified copy of the approved application for fidelity bond together with a copy of the Official Receipt (OR) evidencing payment of premium or List of Accountable Officers with Approved Bond issued and duly certified by the Bureau of Treasury;

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c) Certified copy of the transmittal letter of the LR of the previous cash advances duly stamped “received” by the ICFAU, COA and certification of the Accountant that the SDO has no unliquidated CF/IF cash advances;

d) Original specimen signatures of signatories to DV and Obligation Requests (ObR) in case of GOCCs, NGAs, and LGUs;

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e) Certified copy of the Physical and Financial Plan where disbursements of the cash advance of the CF/IF shall be based; and

f) Certified copy of the annual budget bearing approval of proper authorities concerned except for NGAs whose budget is reflected in the GAA;

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– In addition to those mentioned in 6.1.7, the following are the required documents to support DV for the grant of cash advance for CF and IF for a specific sector;

a) For LGUs:

1. Certified copy of Annual/Supplemental Budget supported with the AIP showing the allocation/budget for POP of the LGU, and the corresponding Appropriation Ordinance approving the budget;

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a) For LGUs:

2. Statement of Itemized POP of the LGU where the allowable CF was computed duly certified by the Budget Officer;

3. Certified copy of the minutes of the meeting evidencing the 2/3 votes of the Local Peace and Order Council approving the POP and the release of the CF;

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a) For LGUs:

4. Certification from the concerned PNP Chief in the locality highlighting the peace and order situation in the locality and supporting the need to release and use the CF;

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a) For LGUs:

5. Approval by the DILG Secretary in case of additional appropriation for CF; and,

6. Certified copy of the ObR.

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b) Within seven (7) days after release of check, the cash advance voucher with covering transmittal letter (Annex D) enumerating the supporting documents shall be submitted by the Agency Accountant or authorized representative in a sealed envelope, to the concerned COA Audit Team Leader (COA ATL) for post audit.

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• Liquidation of Cash Advance


– Liquidation of cash advance for CF and IF shall be audited by the ICFAU.

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– All cash advances for CF and IF shall be liquidated within 30 days after every quarter, or from the approved target date of completion of the project/activity, or after the cash advance had been fully utilized whichever comes first in accordance with the following procedures:

a) Submission of the Liquidation Report (LR) (Annex E) duly signed by the HoAor SDO approved by the HoA, together with the supporting documents under Section 6.2.3 hereof and listed in the covering transmittal letter of the LR. These shall be submitted directly to the ICFAU in a sealed envelope with a visible label “CONFIDENTIAL – For ICFAU Only” through any of the following:

1. Registered mail2. Courier3. authorized liaison officer

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b) The agency liaison officer’s authorization by the HoA must be presented to the receiving staff designated by the ICFAU.

c) The ICFAU authorized receiving staff shall open the sealed envelope in front of the liaison officer to verify completeness of the documents stated in the covering transmittal letter (Annex F). If incomplete, the ICFAU authorized receiving staff shall not stamp “received” and shall return the documents in a sealed envelope signed by the ICFAU staff.

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d) A copy of the transmittal letter, duly received by the ICFAU authorized staff, shall be forwarded by the liaison officer to the Agency Accountant and the COA ATL concerned. Upon receipt of said transmittal letter, the Agency Accountant shall record the liquidation of the cash advance in the books of accounts.

e) In case of LR received by ICFAU thru mail, the “Received” copy shall immediately be sent to the concerned agency within five (5) days upon its receipt.

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d) In case ND is issued by ICFAU after post audit of the liquidation of the cash advance, the Agency Accountant shall restore in the books of accounts the cash advance corresponding to the amount of disallowance and shall form part of the unliquidated cash advance of the SDO/HoA.

e) All cash advances for CF and/or IF shall be liquidated at year-end.

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– The liquidation of cash advances for CF and/or IF shall be supported by the following documentary requirements:

a) Liquidation Report (Annex E);

b) Certified copy of the check and paid DV of the cash advance drawn for CF and or IF being liquidated signed and/or approved by the HoA with certification by the Agency Accountant stamped or printed on the DV pursuant to Sec. 6.1.5hereof;

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c) Documentary evidence of payments and Certification by the HoA, required under Sections 4.12, 4.13, 4.14 and 4.15 hereof;

d) Copy of the Physical and Financial Plan;

e) Copy of the Accomplishment Report and its proof of submission to the concerned agencies as required under Sec. 5.2 hereof;

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f) Copy of the transmittal letter of the DV and supporting documents pertaining to the cash advance being liquidated duly stamped “Received” by the office of the COA ATL; and

g) Other supporting documents the ICFAU deems necessary for the proper evaluation of liquidation documents submitted.

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• Responsibilities


– The COA Chairperson, thru the ICFAU, shall:

a) Conduct post audit of the liquidations of disbursements from the cash advances for the CE and IE of government agencies;

b) Retain for safekeeping all liquidation reports and supporting papers;

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c) Maintain and update a record of the cash advances and their liquidations pertaining to CE and IE for each individual AO and for each agency;

d) Issue an AOM, NS or ND addressed to the HoA as may be warranted in accordance with the RRSA or COA Circular No. 2009-006 dated September 15, 2009 and any subsequent amendments thereof;

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e) Keep records of all AOM/ NS/ ND issued to the HoAincluding the NFD and COE, in the event of failure to settle the disallowance; and

f) Provide the concerned ATL and the Agency Accountant with a copy of the AOM, NS and ND issued in relation to the post-audit of the liquidation of cash advances for CF and IF.

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– The Audit Team Leader shall:

a) Verify the completeness of the supporting documents attached to the DV of the cash advance for CF and/or IF contained in confidential envelope per transmittal letter submitted by the Agency Accountant. He or his authorized representative shall open the sealed envelope in front of the Agency Accountant or his representative. If found incomplete, the ATL or his representative shall not stamp “received” and shall return the cash advance documents in a sealed envelope signed by the COA ATL/authorized staff.

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b) Ensure that the submitted DV and supporting documents have been post-audited within fifteen (15) days from receipt from the Agency Accountant in accordance with the RRSA;

c) In the post audit of the cash advance for CF and IF, the COA ATL shall be guided by this Joint Circular and, among others, the provisions of the GAA, charter of the GOCC, issuances of DILG, COA and other oversight agencies, and other pertinent laws, rules and regulations;

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d) Maintain and update a record for each SDO per agency of the cash advances and their liquidations pertaining to CF and IF; and

e) Submit to the Office of the Chairperson, COA, Attention: ICFAU a Report of Submission of Cash Advance for CE and IC and results of Audit thereof (Annex G) containing the status of the audit, including copy of the AOM, NS and ND issued, if any, on or before the 5th day of each month. Submission during a given/ reported month which have not been audited yet, or when an AOM/NS/ND was issued shall continuously be reported until such month that post audit has been completed or the AOM/NS/ND has been settled.

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• The appointed or designated SDO shall maintain a CDR as required in the New Government Accounting System (NGAS) Manual. Before discharging his duties, the new SDO shall be briefed by the Accountant on the proper recording of the CF and/or IF transactions and other matters related to his work;

Handling, Custody and Disposition of the Cash Disbursement Record (CDR)

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1) It shall be the duty of the officials or employees concerned to comply with the requirements of this Circular. Failure or refusal to do so without justifiable cause shall constitute a ground for administrative disciplinary action as well as disallowing the cash advance granted.

Administrative Provisions/Penal Sanctions

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2) The preceding section is without prejudice to the filing of appropriate criminal charges under existing laws against the erring officials or employees.


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3) Failure of the AO to liquidate any public funds for which he is accountable, upon demand by any duly authorized officer, shall be prima facie evidence that he has put such missing funds or property to personal use and benefit. (Antonio C. Martinez vs. People of the Philippines and the Sandiganbayan, G.R. No. 126413, 20 August 1999).


/dmalagon

ATTY. DIVINIA M. ALAGON

Assistant CommissionerLocal Government Sector

Commission on Audit

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