REGULATORYUPDATES

What the CPA should know

Assistant Commissioner DIVINIA M. ALAGONLocal Government SectorCommission on Audit

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CPA • A program of COA founded on the premise that public accountability can prosper only with a vigilant and involved citizenry

(Operational Guidelines for the Citizen Participatory Audit Project)

• An audit involving civil society or private organizations (civil society organizations or CSOs) as members of the audit team led by the Commission on Audit(A guide to the Conduct of Participatory Audits, of COA and UNDP Manual)

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CPA

• A technique in conducting joint audits under the direct supervision and control of COA, to enhance transparency and accountability

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CPA

LEGAL BASISSection 2 Article IX D of the Constitution of the Philippines

1• The Commission shall have

exclusive authority x x x to define the scope of its audit and examination, establish the techniques and methods required therefor and promulgate accounting and auditing rules and regulations x x x x

Section 43 of the Government Auditing Code of the Philippines (PD 1445)

2• The auditors shall exercise such

powers and functions as maybe authorized by the Commission in the examination, audit and settlement of the accounts, funds, financial transactions, and resources of agencies under their respective audit jurisdiction

LEGAL BASIS

• In August, 2000, COA, in pursuance of a United Nations Development Programme (UNDP) Assisted Project on Participatory Audit entered into a MOA with the Concerned Citizens of Abra for Good Government (CCAGG) for the joint conduct of audits of government agencies, particularly in the Cordillera Administrative Region (CAR).

BACKGROUND

• Under COA Resolution No. 2001-012 dated September 18, 2001, the National Urban Poor Assembly (NUPA) was authorized to participate in the conduct of COA Audits within the jurisdiction of any of the provinces of Samar

• Under COA Resolution No. 2001-013 dated October 18,2001, the CCAGG was authorized to participate anew in citizens participatory audit in CAR

BACKGROUND

• In 2012, CPA was launched, funded by AusAID (now Department of Foreign Affairs and Trade (DFAT)-Australian Embassy)

• Partner CSO: Affiliated Network for Social Accountability in East Asia and the Pacific

BACKGROUND

• Components of Phase 1, New Pilot includes:

1. Auditing – CAMANAVA Flood Control Project, Marikina Barangay Health Centers in CCT Areas, Quezon City’s Solid Waste Management

2. Capacity Building

BACKGROUND

• Components of Phase 1, New Pilot includes:

3. Public Information System (PIS) –System to consolidate issues raised by citizens through mobile sent concerns (SMS) or e-mailed concerns

BACKGROUND

• Components of Phase 1, New Pilot includes:

4. www. i-kwenta.comA play on three possible

interpretations:• i-kwenta, which can translate to

count• i-kwenta, with the “i” signifying a

move to web-based usage reminiscent of technological trends

• i-kwenta, with the “i” signifying me which could be read a citizen/citizens counting/accounting/auditing

BACKGROUND

• The Citizens Participatory Audit Project won the Open Government Partnership Bright Spot Competition in London.

• The Open Government Partnership is a multilateral initiative that aims to secure concrete commitments from governments to promote transparency, fight corruption and harness newer technologies to strengthen governance.

BACKGROUND

Criteria for selection of Projects for CPA includes:

•High value in terms of project cost;

•High impact in terms of degree of closeness or importance to the people’s heart;

•with CSOs with members residing in the project site

•possibility of obtaining immediate results through an audit period of short duration

•such other criteria that may be identified from time to time

SALIENT FEATURES of the CPA

Criteria for selection of CSOs includes:•No conflict of interest (as defined under RA 9184 or the Government Procurement Act) vis-a-vis the project and implementing agency subject of the audit •has complied with tax laws, rules and regulations•willing and ready to engage with the Government without remuneration•can mobilize their staff, members and volunteers and other partners for the project•able to show their strong presence in their area of operation•with established track records and credibility

SALIENT FEATURES of the CPA

Criteria for selection of CSO members

•a bona fide member of good standing

•no conflict of interest

•of good moral character

•should be willing to participate without remuneration

•complied with tax laws, rules and regulations

•officially designated to participate in the audit engagement

SALIENT FEATURES of the CPA

• General Roles of CSOs shall be indicated in the inter-Agency/ Entity Memorandum of Agreements

• Specific roles of CSOs includes:

– identification of training needs and design and conduct of training programs/courses;

– provision of inputs for selection of the agency or project to be audited, extent of audit, establishing audit objectives and criteria;

– participation in project assessment

SALIENT FEATURES of the CPA

• Prohibition against disclosure of audit information/reports

• No remuneration to the CSO and to the CSO-stakeholder partner

• Provision of resource support to partner CSOs

SALIENT FEATURES of the CPA

• to be conducted in all Regions focusing on Farm to Market roads solely financed out of LGU funds, except NCR where audit focus is on solid waste management

• Only four (4) regions were funded by the AusAid, the rest were funded out of COA’s funds

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2015

COA Resolution No. 2015-014 dated April 6, 2015

Revised Guidelines Governing Auditorial Review and Evaluation of Government

Infrastructure Contracts

COA Resolution No. 91-52 dated September 17, 1991 provides that in the audit of infrastructure projects, then Approved Agency Estimate shall serve as reference value for the formulation of the COA Cost Estimate where the contract price should be equal or less than the total COA estimate plus ten (10%) in order to sustain a finding of reasonableness, otherwise the contract price will be deemed excessive.

COA Resolution No. 2015-014 dated April 6, 2015

Repeal of COA Resolution No. 91-52 and provides among others the following:

–the ABC (Approved Budget for Contracts) shall serve as reference value of the COA Cost Estimate. The COA cost estimate shall be computed without any allowable variance.

–In case the contract passed the auditorial and legal review, any discrepancy in the technical review (contract review and inspection) unfavourable to the government should be disallowed in audit.

COA Resolution No. 2015-009 dated March 09, 2015

Adoption of the Philippine Public Sector Accounting Standards (PPSAS) in the Local Government Sector be effective January 1, 2015

REGULATORY UPDATES

What the CPA should knowAssistant Commissioner DIVINIA M. ALAGONLocal Government SectorCommission on Audit

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