Government ing And Auditing 5o1o31

NEW GOVERNMENT ING SYSTEM (NGAS)

MR. CHARLES JOHN P. CUBAR,A

NEW GOVERNMENT ING SYSTEM Pursuant to the Commission on Audit Circular No. 2001-004 dated October 30, 2001, all government agencies were prescribed to use the New Government ing System (NGAS) effective January 1, 2002. The NGAs is a simplified set of ing concepts, guidelines and procedures designed to ensure correct, complete and timely recording of government financial transactions, and productions of accurate and relevant financial reports.

GOVERNMENT ING encomes the process of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results thereof. (Sec.109, PD 1445)

OBJECTIVES OF GOVERNMENT ING (Sec. 110, PD 1445) 1. produce information concerning past operations and present conditions; 2. provide a basis for guidance for future operations; 3. provide for control of acts of public bodies and officers in the receipt, disposition and utilization of funds and property; and

4. report on the financial position and the results of operation of government agencies for the information of all persons concerned.

GENERALLY ACCEPTED GOVERNMENT ING PRICIPLES (Sec. 112, PD 1445) 

s of an agency shall be kept in such detail as in necessary to meet the needs of the agency and at the same time be adequate to furnish the information needed  Highest standards of honesty, objectivity and consistency shall be observed.  The government ing system shall be on a double entry basis with the general ledger in which all financial transactions are recorded.  The chart of s for government agencies shall be prescribe by COA.

GENERALLY ACCEPTED GOVERNMENT ING PRICIPLES (Sec. 112, PD 1445) 

To permit effective budgetary control and to establish uniformity in financial reports, s shall be classified in balanced fund groups. The group for each fund shall include all s necessary to set forth its operation and condition. All financial statements shall follow this classification



Common terminology and classification shall be used consistently throughout the budget, the s and the financial reports.



The general ing system shall include the budgetary control s for revenues,expenditures, and debt, as provided by PD 1177

BUDGETARY AND ING SYSTEMS Allotment Release Order (ARO) - This is a formal document issued by the Department of Budget and Management to the head of the agency containing the authorization, conditions and amount of an agency allocation. This maybe in the form of: a. Agency Budget Matrix b. Special Allotment Release Order

RECORDING OF ALLOTMENTS Upon receipt of the approved ABM and ARO, the designated Officer shall record the allotment in the respective registries through the Allotment and Obligations Slips (ALOBS). Separate registries shall be maintained for the four allotment classes by Program/Project/Activity (P/P/A), to wit: 1. 2.

3. 4.

Registry of Allotment and Obligations – Personal Services (RAOPS) Registry of Allotment and Obligations – Maintenance and Other Operating Expenses (RAOMO) Registry of Allotment and Obligations - Capital Outlay (RAOCO) Registry of Allotment and Obligations – Financial Expenses (RAOFE)

REGISTRY OF ALLOTMENTS AND OBLIGATIONS PERSONAL SERVICES (RAOPS) _________________ Agency PPA : ________ Sheet No. : _________ Date

Reference

Code

Allotment Received

Obligation Incurred

Balance

REGISTRY OF ALLOTMENTS AND OBLIGATIONS MAINTENANCE AND OTHER OPERATING EXPENSES (RAOMO) _________________ Agency PPA : ________ Sheet No. : _________ Date

Reference

Code

Allotment Received

Obligation Incurred

Balance

REGISTRY OF ALLOTMENTS AND OBLIGATIONS CAPITAL OUTLAY (RAOCO) _________________ Agency PPA : ________ Sheet No. : _________ Date

Reference

Code

Allotment Received

Obligation Incurred

Balance

REGISTRY OF ALLOTMENTS AND OBLIGATIONS FINANCIAL EXPENSES (RAOFE) _________________ Agency PPA : ________ Sheet No. : _________ Date

Reference

Code

Allotment Received

Obligation Incurred

Balance

ING FOR OBLIGATION Obligation Defined – refers to a commitment by a government agency arising from an act of a duly authorized official which binds the government to the immediate or eventual payment of a sum of money. The agency is authorized to incur obligations only in the performance of activities which are in pursuits of its functions and programs authorized in appropriation acts/laws within the limit of the ARO. (Sec. 14, Vol. I, NGAS) Obligations shall be taken up in the Registries through the Allotment and Obligations Slip (ALOBS).

DISBURSEMENT Disbursement Defined – Disbursements constitute all cash paid out during a given period either in currency (cash) or by check. It may also mean the settlement of government payables/obligations by cash or by check. It shall be covered by Disbursement Voucher (DV)/Petty Cash Voucher (PVC) or payroll. (Sec. 27, Vol. 1, NGAS Manual) Disbursement System – The Disbursement System involves the preparation and processing of disbursement voucher (DV); preparation and issuance of check; payment by cash; granting, utilization, and liquidation/replenishment of cash advances.

BASIC REQUIREMENTS FOR DISBURSEMENTS (Sec. 28, Vol. 1, NGAS Manual) 

Existence of lawful and sufficient allotment certified as available by the Budget Officer;



Existence of a valid obligation certified by the Chief ant/Head of ing Unit;



Legality of transactions and conformity with laws, rules and regulation;



Approval of the expense by the Chief of Office or by his duly authorized representative; and



Submission of proper evidence to establish the claim.

CLASSIFICATION OF EXPENDITURES a.

Current Operating Expenditures – refer to appropriations for the purchase of goods and services for current consumption or for benefits expected to terminate within the fiscal year. Current Operating Expenses are classified into: 1. Personal Services 2. Maintenance and Other Operating Expenses

b.

Capital Outlays – refer to appropriations for the purchase of goods and services, the benefits of which extend beyond the fiscal year and which add to the assets of government, including investments in the capital of government-owned and controlled corporations and their subsidiaries as well as investments in public utilities such as public markets and slaughter houses.

CLASSIFICATION OF EXPENSES a. Personal Services (PS) – include basic pay, all authorized allowances, bonus, cash gifts, incentives and other personnel benefits of officials and employees of the government. b. Maintenance and Other Operating Expenses (MOOE) – these s include expenses necessary for the regular operations of an agency like, among others traveling expenses, training and seminar expenses, water, electricity, supplies expense, maintenance of property, plant and equipment, and other maintenance and operating expenses. c. Financial Expenses (FE) – these s include bank charges, interest expense, commitment charges, documentary stamp expense and other financial charges. It also includes losses incurred relative to foreign exchange transactions and debt service subsidy to GOCCs.

Pay & Allowances Claims Unit 1.

2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

a. Submission of ing Documents b. Preparation of DV & review of ing documents c. Preparation of Memo for DPRM Examination/processing of DV Review necessary requirements & request of fund release to DC Issuance of NFA Preparation of ALOBS/funding of DV Certifies the ALOBS for Obligation Pre-Audit Issuance of NCA Journalization/certifies the correctness of charges Preparation/issuance of check Counter-g of check of Ex-O/DDC/DC g & release of check Review/recording of abstract Post Audit

DPRM

FS/14th

DC Fiscal Div

DC Acctg Div

DC Mgt Div

DC Budget Div

COA

2 days

1

2 2-3 days

3

4

MOL 3 days

1/2 day

5

1/2 day

6

1 day

1 day

1 day

7

8

9

1 day

10 1/2 day

1 hour

11

12 13

14

DOCUMENTARY REQUIREMENTS

First Salary  Appointment duly approved by appointing authority  Oath of Office  Statement of Assets and Liabilities  Certificated of service or daily time record  Certificate of assumption Promotions and Salary Differentials  Approved appointment or notice of salary adjustment  Certificate of service or daily time record  Certificate of assumption/duty status  Payslip

Terminal Leave  

  

Approved application for leave Complete service record Clearance from money, property and legal ability Copy of last appointment Commutation order and certification of exigency of service

Lump-sum/Retirement Pay    

 

 

Retirement Order Service Record Certificate of last payment Money/property clearance Non-pending case clearance from IAS/RIAS; Napolcom; Ombudsman Statement of assets and liabilities Latest salary adjustment/promotion order Certification of deletion of CFC from Finance Center

Replacement Clothing Allowance   

  

Unit Endorsement Order of Entitlement Certificate of Clothing Settlement Statement of Service Absorption /Appointment Order Certificate of Duty Status

Reimbursement of Hospitalization  

   

 

Unit Indorsement Approved Report of Adjudication Board Certificate of Duty Status from PAIS Certificate of Non-payment signed by the Chairman Regional Adjudication Board (pers assigned with PROs) Official Receipt (for Medicines) Photocopy of PNP ID Letter Request from Claimant CS Verification

Other Collaterals Allowances    

Unit Endorsement Order of Entitlement Certificate of Duty Status Roster of Personnel (in case of Cash Advances

MOOE 1.

PO/WO

2.

Certifies availability of funds/signature of C, AD

3.

Preparation of ALOBS

4.

Certification of ALOBS

5.

Pre-Audit (ICIS)

6.

Request for inspection for the delivery

7.

Inspection

8.

Processing of DV

9.

Pre-Audit of DV (CES)

End

AD, DC

1

2

1 day

3

FD, DC

4

MD, DC

FS/14th

BD, DC

1 day

1 day

6

5

1 to 2 days

1 day 1 to 2 days

7 8

9 10 min/claim

10. N C A 11. Journalization Exam of DV Final Exam 12. Issuance of checks DC countersign D,FS sign Releasing

10

11

1 day

12

Travel – Domestic     

Travel order Approved Itinerary of Travel Certificate of Appearance Certificated of Travel Completed Tickets Note: For Foreign travels, the requirements are the same as enumerated above except that the travel authority would come from the SILG or Office of the President.

Training and Seminar Expenses       

Memorandum/Directive of Seminar Contract Original Invoice Delivery Receipt List of Participants PNP Accreditation/Phil GePS Certificate of Business

Water/Electricity/Telephone Expenses 

Original Statement of Rent Expense  Contract  Statement of s  Certificate of Liability from the End-  Official Receipt in case of reimbursements

Purchases or Printing of Forms 

Requisition and Issue Slip (RIS)  Supply Availability Inquiry (SAI)  Purchase Request (PR)  Reasonableness of Price  Certificate of Inspection and Acceptance Report  Management Inspection Report  Original Invoice  Original Delivery Receipt  Purchase Order  PNP Accreditation/Phil GePS 

Certificate of Business Name

PURCHASE OF SUPPLIES 

Requisition and Issue Slip (RIS)  Supply Availability Inquiry (SAI)  Purchase Request (PR)  Reasonableness of Price  Certificate of Inspection and Acceptance Report  Management Inspection Report  Original Invoice  Original Delivery Receipt  Purchase Order  PNP Accreditation/Phil GePS  Certificate of Business Name

EMERGENCY PURCHASE   

Canvass papers At least 3 price quotations from bonafide dealers Certificate of emergency purchase

PURCHASE THRU EXCLUSIVE DISTRIBUTIORS  

Certificate of exclusive distributorship Certificate that there are no sub-dealers selling at lower prices and that no suitable substitute are available

PUBLIC BIDDING   

Abstract of bids ed by winning bidder’s offer and bid tenders of other participants Letter of award/acceptance Performance bond of winning bidder

Repair of Equipment/Vehicle 

Notice to Proceed  Certificate of Completion  Original Invoice  Original Delivery Receipt  Guaranty of the Repairman  Certificate that damage is due to fair wear & tear and not to negligence  Work Order  Report of Waste Material  Management Inspection Report  Inspection & Acceptance Report  PNP Accreditation/Phil GePS  Certificate of Business Name

Repair of Equipment/Vehicles 

Notice to Proceed  Certificate of Completion  Original Invoice  Original Delivery Receipt  Guaranty of the Repairman  Certificate that damage is due to fair wear & tear and not to negligence  Work Order  Report of Waste Material  Management Inspection Report  Inspection & Acceptance Report  PNP Accreditation/Phil GePS  Certificate of Business Name

Repair of Buildings/Facilities 

Notice to Proceed  Certificate of Completion  Original Invoice/Billing  Contract  Certificate of Final Inspection & Acceptance  Estimate Cost/ Bill of Materials  Pre & Post Repair Inspection/Management Inspection Report  Inspection & Acceptance Report  PNP Accreditation/Phil GePS  Certificate of Business

BUILDING  Contract  Notice to Proceed  Certificate of Completion  Billing/Invoice  Estimate Cost/Bill of Materials  Plans and Specification  Progress Report  Pre and Post Repair Inspection  PNP Accreditation/Phil GePS  Certificate of Business Name SUCCEEDING PAYMENTS  All requirements mentioned above  Management Inspection Report

FINAL PAYMENT  All requirements mentioned above  Management Inspection Report  Certificate of Final Inspection & Acceptance  Contractor’s Affidavit Re-payment of Laborers

EQUIPMENT/MOTOR VEHICLE 

Requisition and Issue Slip (RIS)  Supply Availability Inquiry (SAI)  Purchase Request (PR)  Reasonableness of Price  Certificate of Inspection and Acceptance Report  Management Inspection Report  Original Invoice  Original Delivery Receipt  Purchase Order  PNP Accreditation/Phil GePS  Certificate of Business Name  Acknowledgement Receipt for Equipment

PREPARATION OF THE TRIAL BALANCE AND OTHER FINANCIAL STATEMENTS In preparing the Trial Balance and other Financial Statements, these Basic Features and Polices of the New Government ing System are observed (Sec. 4, NGAS Manual): a. Accrual ing – a modified accrual basis of ing shall be used. Under this method, all expenses will be recognized when incurred and reported in the financial statements in the period to which they relate. Income shall be on accrual basis except for transactions where accrual basis is impractical or when other method is required by law.



One Fund Concept – this system adopts the one fund concept. Separate fund ing shall be done only when specifically required by law or by donor agency or when otherwise necessitated by circumstances subject prior approval of the Commission.



Chart of s and Codes – a new chart of s and coding structure with a three-digit numbering system shall be adopted.



Books of s – all national agencies shall maintain two set of books, namely: Regular Agency (RA Books) – books used to record the receipt and utilization of Notice of Cash Allocation (NCA) and other income/receipts which the agencies are authorized to use and to deposit with Authorized Government Depository Bank (AGDB) and the National Treasury. National Government (NG) Books – these shall be used to record income which the agencies are not authorized to use and are required to be remitted to the National Trasury.



The following statements shall be prepared:    



Balance Sheet Statement of Government Equity Statement of Income and Expenses Statement of Cash Flow

Two-Money Column Trial Balance Trial Balance - The Trial Balance shows the equality of debit and credit balances of all general ledger s as of a given period. It is prepared and submitted monthly, quarterly and annually at the end of the fiscal year, the pre-closing and post-closing trial balances shall be prepared. These reports are submitted to the following offices: - COA - ancy Office - DBM - Senate and Congress for Budget hearing

Purposes of the Trial Balance 

Prove the mathematical equality of the debits and credits after posting;



Uncover errors in journalizing and posting;



Serve as basis of the preparation of the financial statements.

Books of s 

1.

Books of Original Entry

Checks Disbursement Journal (CDJ)

CDJ - MDS This journal is used to record/check disbursements based on the report of checks issued for payment of expenditures and/or prior year s payable prepared by the Disbursing Officers (Finance) and submitted to the ing Division. CDJ - CFC This journal is used to record monthly Pay and Allowances, monthly Initial Pension, Regular Pension, Mid-Year Bonus and Christmas Bonus printed by Computer Service.

2.

Report of Disbursements by Disbursing Officers This journal is used to record disbursements out of Cash Advance based on the Report of Disbursement with the vouchers/payrolls and ing documents submitted by the Disbursing Officers.

3. Cash Receipt Journal (CRJ) This journal is used to record all collections and deposits based on the Reports of Collections together with the duplicate copies of official receipts, remittance advices and deposit slips submitted by the collecting officers.

4.

General Journal This is used to record transactions that cannot be recorded in any of the special journals.



Books of Final Entry 1. General Ledger - This is used to record transactions from different journals. 2. Subsidiary Ledger - This contains the details or breakdown of the balances of the controlling s appearing in the General Ledger.

Financial Statements 1.

Balance Sheet - is a formal statement which shows the financial condition of the agency as of a certain date. It includes information on the three elements financial position assets, liabilities and government equity. It shall be prepared from information taken directly from the year-end post-closing trial balance.

2.

Statement of Income and Expenses - It shows the results of operation/performance of the agency at the end of a particular period. This statement shall be prepared from information taken directly from pre-closing trial balance.

3.

Statement of Government Equity - shows the financial transactions which resulted to the change in Government Equity at the end of the year.

4.

Statement of Cash Flows - is a statement summarizing all the cash activities of an agency. The primary purpose of the statement of cash flows is to give relevant information on the agency’s over all cash position, liquidity and solvency. Using the statement of Cash Flows, managers, investors, and creditors could easily assess if the agency could meet its obligation in operating, investing and financing activities.

Statement of Management Responsibility for Financial Statements. 

Shall serve as the covering letter in transmitting the agencies financial statements to the COA, DBM, other oversight agencies and other parties.  Shows the agency’s responsibility for the preparation and presentation of the financial statements.  Shall be signed by the Director of Finance and Management Office or Comptrollership Office, or the Chief of Office who has direct supervision and control over the agency’s ing and financial transactions, and the Head of Agency or his authorized representative.

THE REVISED CHART OF S COA Circular No. 2013-002 dtd. Jan. 30, 2013 Effectivity:

January 1, 2014

Objectives  To

provide new s for the adoption of the Philippine Public Sector ing Standards (harmonized with IPSAS)

 To

provide uniform s for national government ing and budget systems to facilitate the preparation of harmonized financial and budgetary ability reports



To expand the code from three (3) digits in the NGAS Chart of s to eight (8) digits, to allow expansion or creation of new s as may be necessary to implement new standards or policies and provide up to four levels of consolidation depending on the s’ information needs.

Major Changes a.

Coverage is limited only to all national government agencies and GOCCs receiving funds constituted as Special s in the General Fund (SAGF) from the National Government

b.

Expanded code structure - from three (3) digits to eight (8) digits

COA Revised Chart of s CODE STRUCTURE 0 00 00 00 0

Group Major Group Sub-Major Group General Ledger s General Ledger Contra-s

GROUPS Codes are assigned to groups to facilitate location of s in the general and subsidiary ledgers, to provide systematic arrangement and classification of s and facilitate preparation of the consolidated financial reports as follows: Code 1 2 3 4 5

Groups Assets Liabilities Equity Income Expenses

Asset without Contra Example: Cash-Collecting Officer 1 - 01-01 -010 Asset Cash and Cash Equivalents Cash on Hand Cash Collecting Officer GL Contra-

Asset with Contra Example: s Receivable 1 -03 -01 -010 Asset Receivables Loans & Receivable s s Receivable GL Contra-

Asset with Contra Example: Allowance for Impairment - s Receivable

1 -03 -01-011 Asset Receivables Loans & Receivable s s Receivable Allowance for Impairments Receivable

Major Changes

New s 1 02 01 010 1 02 02 011

Financial Assets Held for Trading Allowance for Impairment Investments in Treasury Bills Local

in compliance with IPSAS 28-30 in compliance with IPSAS 29 (Financial Instruments Recognition and Measurement)

1 03 02 020 1 03 02 021

Finance Lease Receivable Allowance for Impairment Finance Lease Receivables Investment Property, Buildings Accumulated Depreciation Investment Property, Buildings Accumulated Impairment Losses Investment Property, Buildings

in compliance with IPSAS 13 (Leases) in compliance with IPSAS 13 (Leases)

1 05 01 020 1 05 01 021 1 05 01 022

in compliance with IPSAS 16 (Investment Property) in compliance with IPSAS 16 (Investment Property) in compliance with IPSAS 26 (Impairment of Cash Generating Assets)

New s 10202010 Investments in Treasury Bills – Local

10202011 Allowance for Impairment - Investments in Treasury Bills - Local 10501010 Investment Property, Land 10501011 Allowance for Impairment - Investment Property, Land

In compliance with IPSAS 29-30 In compliance with IPSAS 29-30 In compliance with IPSAS 16 In compliance with IPSAS 16 & 21

New s 1 01 04 010

Cash-Treasury/Agency Deposit, Regular 1 01 04 020 Cash - Treasury/Agency Deposit, Special 1 01 04 030 Cash - Treasury/Agency Deposit, Trust

Major Changes d.

Some s were deleted since these s are for use by local government units or governmentowned and/or controlled corporations, while other s are no longer applicable to national government agencies.

Deleted s Example: 101 Cash in Vault 127 Real Property Tax Receivables 128 Special Education Tax Receivables 144 Due from Other Funds 145 Due from Subsidiaries/ s

for LGUs’ use for LGUs’ use for LGU’ use not allowed for GOCCs’ use only

Major Changes e. Some s were either expanded or compressed. For instance, expense s for repairs and maintenance and depreciation of property, plant and equipment which were previously presented per asset were compressed based on the major classification

Compressed s Example: 811 Repairs and Maintenance Office Buildings 812 Repairs and Maintenance Other School Buildings 813 Repairs and Maintenance Hospitals and Health Centers 814 Repairs and Maintenance Market and Slaughterhouses 815 Repairs and Maintenance Other Structures

5 02 13 040 Repairs and MaintenanceBuildings and Structure

Compressed s Example: 811 Depreciation-Office Buildings 812 Depreciation-School Buildings 813 Depreciation-Hospitals and Health Centers 814 Depreciation-Market and Slaughterhouses 815 Depreciation-Other Structures

5 05 01 040 Depreciation Buildings and Other Structures

Repairs and Maintenance – Buildings and Other Structures 

Subsidiary Ledgers: 01 - Buildings 02 - School Buildings 03 - Hospitals and Health Centers 04 - Markets 05 - Slaughterhouses 06 - Hostels and Dormitories 99 - Other Structures

Depreciation - Buildings and Other Structures 5-05-01-040 

Subsidiary Ledgers: 01 - Buildings 02 - School Buildings 03 - Hospitals and Health Centers 04 - Markets 05 - Slaughterhouses 06 - Hostels and Dormitories 99 - Other Structures

Expanded Example: 716 Subsistence, Laundry and Quarters Allowance

5 01 02 050 Subsistence Allowance 5 01 02 060 Laundry Allowance 5 01 02 070 Quarters Allowance

CONVERSION OF THE NGAS CHART OF S TO THE REVISED CHART OF S (RCA) COA Circular No. 2014-003 dated April 15, 2014

COA Circular No. 2014-003 dated April 15, 2014 Re: “Conversion from the PGCA to RCA” PURPOSE:

 Provide guidelines and procedures on the conversion of the PGCA to the RCA

 Provide ing policies and guidelines on the implementation of the RCA for NGAs  Provide additional and revised description/ title of s for proper implementation of the new and revised ing policies

COA Circular No. 2014-003 dated April 15, 2014 Re: “Conversion from the PGCA to RCA” COVERAGE:

 Shall be adopted for all funds of NGAs and for Special s in the General Fund (SAGF) maintained by GOCCs  For agencies implementing the eNGAS, procedures on the Conversion of the eNGAS databases to the RCA for NGAs shall be covered by separate guidelines  The Chart of s for GOCCs and LGUs and its conversion shall be covered by separate guidelines

General Guidelines and Procedures  All NGAs and GOCCs with SAGF shall effect the conversion based on the Balance Sheet as of December 31, 2013  The Chief ants/Heads of ing units shall be guided by the Matrix on the Conversion of s  The Chief ants/Heads of ing units shall carefully analyze the GL and SL s before conversion  Any clarification or request for assistance shall be directed to the Government ancy Sector (GAS), COA

New s/Revised Title and Description of  For PPSAS 32 – “Service Concession Arrangements – Grantor”, use the new s as prescribed in Annex B

 In conformity with PPSAS 1, the title of the following s shall be revised:

• “Government Equity” (30101010) shall be •

changed to “Accumulated Surplus/Deficit” (30101010). “Income and Expense Summary”

(30301010) shall be changed to “Revenue and Expense Summary”(30101010).

Basis for Conversion Balance Sheet as of December 31, 2013

Guide for Conversion of s  Matrix on the Conversion of

s of the PGCA to the RCA Annex A  25 PPSAS

Specific ing Policies and Guidelines  Maintenance of NG books shall be discontinued. A separate set of books shall be maintained by fund. All balances as of December 31, 2013 shall be transferred to the appropriate new books.

• Bases shall be the law creating the fund • Copies of the JEV shall be furnished the COA Auditor and the COA-GAS separately

 Appropriate SLs shall be maintained for real s and for some income and expense s

Specific Guidelines/Procedures 

Maintain set of books by fund  Transfer the balances to appropriate books per fund

Specific Guidelines/Procedures 

Analyze balances as of December 31, 2013  Prepare JEVs to close the s and transfer to the appropriate  Furnish COA Auditor and GAS copies of the JEVs

Specific Guidelines/Procedures  



Appropriate SLs shall be maintained Revenue/income s shall be recognized by revenue generating agencies Revenue and expenses of revolving funds shall be recognized, net surplus shall form part of equity

Specific Guidelines/Procedures 



Public infrastructures and reforestation projects shall be recorded in the appropriate fund using the PPE s in Annex A Based on existing records (books and registries) – determine depreciated cost or appraised value

Specific Guidelines/Procedures ITEMS IN TRANSIT (284) 



If the balance pertains to delivered items but not recorded, determine the reason for not recording the transaction and work for the gathering of the ing documents to warrant the recording in the books of s. If the balance pertains to fixed assets that were converted to 284 upon implementation of the NGAS and which remain undelivered as of December 31, 2013, close the said to Government Equity.

Responsibility  The Chief ants/Heads of ing units and Budget Officers/Heads of Budget Office units shall be responsible for the conversion of these s

Transitory Provisions  New titles should be used in the implementation of the PPSAS

 s that have not been converted due to issues not settled as of the conversion date shall be converted to the most appropriate in the RCA until further defined

ADDITIONAL S Created in 2014

New s

1 01 04 000 Treasury/Agency Cash s 1 01 04 070 Cash – Tax Remittance Advice 1 01 04 080 Cash – Constructive Income Remittance

New s

Cash – Tax Remittance Advice (1-01-04-070) Remitting books • remittance thru TRA (debit) • constructive receipt of NCA (credit) BIR books • constructive receipt of remittance thru TRA (debit) • closing to Accumulated Surplus/(Deficit) (credit)

New s Cash – Tax Remittance Advice (1-01-04-070) BTR books • TRA issued (credit) • Closing to Accumulated Surplus/ (Deficit) (Credit)

New s 1 06 12 000 Service Concession Assets 1 06 12 010 Service Concession - Road Networks 1 06 12 011 Accumulated Depreciation - Service Concession - Road Networks 1 06 12 012 Accumulated Impairment Losses -Service Concession Road Networks 1 06 12 020 Service Concession - Flood Control Systems 1 06 12 021 Accumulated Depreciation - Service Concession - Flood Control Systems 1 06 12 022 Accumulated Impairment Losses - Service Concession Flood Control Systems 1 06 12 030 Service Concession - Sewer Systems 1 06 12 031 Accumulated Depreciation - Service Concession - Sewer Systems 1 06 12 032 Accumulated Impairment Losses - Service Concession Sewer Systems

New s 1 06 12

040 Service Concession - Water Supply Systems

1 06 12

041 Accumulated Depreciation - Service Concession - Water Supply Systems 042 Accumulated Impairment Losses - Service Concession Water Supply Systems 050 Service Concession - Power Supply Systems

1 06 12 1 06 12 1 06 12

1 06 12 1 06 12 1 06 12

1 06 12

051 Accumulated Depreciation - Service Concession - Power Supply Systems 052 Accumulated Impairment Losses - Service Concession Power Supply Systems 060 Service Concession - Communication Networks 061 Accumulated Depreciation - Service Concession Communication Networks 062 Accumulated Impairment Losses -Service Concession Communication Networks

New s 1 06 12 1 06 12 1 06 12 1 06 12

1 06 12 1 06 12 1 06 12 1 06 12 1 06 12

061 Accumulated Depreciation - Service Concession Communication Networks 062 Accumulated Impairment Losses -Service Concession Communication Networks 070 Service Concession - Seaport Systems 071 Accumulated Depreciation - Service Concession - Seaport Systems 072 Accumulated Impairment Losses - Service Concession Seaport Systems 080 Service Concession - Airport Systems

081 Accumulated Depreciation - Service Concession - Airport Systems 082 Accumulated Impairment Losses - Service Concession Airport Systems 090 Service Concession - Parks, Plazas and Monuments

New s 1 06 12 091 Accumulated Depreciation - Service Concession -

Parks, Plazas and Monuments 1 06 12 092 Accumulated Impairment Losses - Service Concession

- Parks, Plazas and Monuments 1 06 12 990 Other Service Concession Assets

1 06 12 991 Accumulated Depreciation - Other Service Concession

Assets 1 06 12 992 Accumulated Impairment Losses - Other Service

Concession Assets

New s Liability 2 01 01 090 Service Concession Arrangements Payable 2 05 01 020 Deferred Service Concession Revenue Revenue 4 02 02 240 Service Concession Revenue

New s Expenses

5 05 01 110 Depreciation – Service Concession Assets 5 05 04 090 Loss on Initial Recognition of Biological Assets

Revised/Modified s Expenses 3 01 010 010 Government Equity 3 03 1 010 Income and Expense Summary Renamed as: 3 01 01 010 Accumulated 3 03 01 010 Surplus/(Deficit) Revenue and Expense Summary

Sample Conversion Entry Petty Cash Fund Cash in Bank - Local Currency, Current Cash in Bank - Local Currency, Savings

101 01 020

97,300

101 02 020

1,303,000

101 02 030

1,412,000

Due from National Government Agencies

103 03 010

7,800,000

Office Supplies Inventory

104 04 010

1,000,000

Non-able Forms Inventory

104 04 030

200,000

Petty Cash Fund Cash in Bank - Local Currency, Current Cash in Bank - Local Currency, Savings

104

97,300

111

1,303,000

112

1,412,000

Due from NGAs

136

7,800,000

Office Supplies Inventory

155

1,200,000

Sample Conversion Entry Prepaid Registration

1 99 02 030

Other Prepayments

1 99 02 990

672,000

5,000,000 Office Equipment

1 06 05 020 2,480,000

1 06 07 010 Furniture and Fixtures Other Property, Plant and Equipment Other Prepaid Expenses Office Equipment Furniture and Fixtures Other Property, Plant and Equipment

2,615,000 1 06 99 990 1,637,000 18 5 22 1 22 2 25 0

5,672,000

2,480,000 2,615,000 1,637,000

Sample Conversion Entry Accumulated Depreciation - Office Equipment Accumulated Depreciation – Furniture and Fixtures Accumulated Depreciation - Other Property, Plant and Equipment

321

1,840,000

322

2,615,000

350

1,117,300

Accumulated Depreciation - Office Equipment 1 06 05 021

1,840,000

Accumulated Depreciation Furniture and Fixtures

1 06 07 011

2,615,000

Accumulated Depreciation - Other Property, Plant and Equipment 1 06 99 991

1,117,300

Sample Conversion Entry Due to BIR

412

502,000

Due to GSIS

413

51,100

Due to PAG-IBIG Due to PHILHEALTH

414

13,000

415

14,000

Due to Other NGAs

416

606,000

Government Equity

501

17,457,900

Due to BIR

2 02 01 010

502,000

Due to GSIS

2 02 01 020

51,100

Due to PAG-IBIG

2 02 01 030

13,000

Due to PHILHEALTH

2 02 01 040

14,000

Due to NGAs

2 02 01 050

606,000

Government Equity

3 01 01 010

17,457,900

Evaluation on the Role of Audit to Detect Fraud and Corruption

Other Matters 

The Government ing Manual



The Barangay ing Manual

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The Local Government Chart of s

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The Corporate Chart of s

Organizational structure 

The organizational structure of SAI Philippines is Board or Collegiate model where the audit board is composed of an audit commission which functions as the decision making body

Chairperson and of the Commission 

They have a fixed term under the Constitution or law

Independence/relationship of SAI with the other branches of the government 

SAI Philippines is independent of the executive, legislative and judicial departments of the state

Fiscal autonomy or financial independence 

SAI Philippines’ budget is subject to automatic release but undergoes the scrutiny of the Department of Budget and Congress and the proposed budget could be increase or decrease

Entities over which SAI has legal mandate and authority to audit •

Central or national government agencies, bureaus, offices, instrumentalities and local government units at all levels • State-owned and controlled corporations, universities, colleges and enterprises • Privately-owned public utilities company, but limited to rate and franchise audit • Private entities and non-governmental organizations receiving loans, subsidy or grants from the state

Types of services COA renders •

Fraud/Forensic Audit • Performance Audit • Compliance Audit/Regularity Audit • Financial Audit • Value for Money Audit • Rate Audit • Franchise Audit

Specific articles of Constitution, Law or Regulation about the roles and responsibilities of COA on anticorruption •

•

Under Philippines Constitution, COA has exclusive authority to define the scope of its audit and examination, establish the techniques and methods required therefor, and promulgate ing 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 properties. (Article IX-D, 1987 Philippine Constitution) Upon discovery in audit of a shortage in the s of any able officer and upon finding of a prima facie case of malversation of public funds or property, the COA may place under constructive distraint personal property of able officer who is obligated to preserve the property intact and unaltered and not to dispose the same in any manner. (Section 47, Presidential Decree No. 1445)

Specific articles of Constitution, Law or Regulation about the roles and responsibilities of COA on anticorruption •

The auditor may seize the office of the local treasurer when the cash examination discloses a shortage in cash (Section 46, PD 1445) • The COA has investigatory and inquisitorial powers; and power to punish for contempt. The Chairman or any officer authorized by the former in writing shall have the power to summon parties, issue subpoena duces tecum and ad testificandum, and take testimony in any investigation or inquiry within the jurisdiction of COA. (Section 40, PD 1445)

“Anti-corruption strategy” implemented in accordance with the national anti-corruption strategy •

Involvement of citizens in the audit process through the Citizens Participatory Audit Program. • Permanent representation in the Inter-agency Anti-Graft and Corruption Coordinating Council which studies policy issues against graft and corruption. • Permanent representation in the Internal Working Group on the 21 Point Agenda of the United Nations Convention on Anti-Corruption for 2013-2018. • Systematic coordination with the Office of the Ombudsman, Department of Justice and National Bureau of Investigation on prosecution of cases as a result of fraud/special audits.

Strategic goals and action concerning fight against corruption •

Adoption of Risk Based Audit Approach and Unified Audit System to capture high risk s, projects, programs and activities. • Unified instruction to audit units to focus on transactions, programs, projects and activities which implementation were found to be irregular during special/fraud audits and agency risks assessment. • Validation of corruption complaints in whatever form. • Conduct of fraud audit on high profile cases of complaints of corruption when warranted by initial evidence

Detecting corruption 

It is an audit focus of the audit services being rendered by SAI Philippines

Special offices assigned specific functions and/or powers in the prevention, detection and investigation of corrupt activities and transactions

•

Fraud Audit Office • Special Audits Office  Note: The SAO have been in place for more than 20 years.

Number of audit personnel that have specific skills in the detection of corrupt activities and transactions in the government



Very few personnel have adequate special training in combating corruption when compared with the number of corruption complaints being received

Trainings to auditors about anti-corruption or anti-fraud • •

• • •

• •

Corruption Detection and Investigation Certified Fraud Examination Fiscal ability of Public Officials Risk Based Audit Forensic ing Fraud Audit and Legal Evidence other special trainings on fraud investigation offered by partner

Specific manual or guideline on anticorruption or anti-fraud •

Integrated Risk Based Audit Manual • Fraud Audit Manual • Certified Fraud Examination Manual • Manual on Fraud Investigation and Legal Evidence

Approaches in detecting corrupt activities and transactions in the government 

Both proactive and reactive

The available courses of action upon discovery of red flags or symptoms of corruption

•

•

The red flags will be referred to the special department, office or unit of the SAI for the conduct of a full blown investigation The red flags will be referred by the SAI to the anti-corruption agency for the conduct of a full blown investigation

Available facilities or mechanism to promote and intensify prevention and detection of corrupt activities and transactions • • • • • • •

• • •

Hotline devoted solely to corruption complaints Corruption alert section in the SAI website Citizens help desk that caters corruption complaints in whatever form Anti-corruption researches Anti-corruption educational/training programs Citizens Participatory Audit Program Promulgation of ing and auditing rules and regulations Declaration of assets and liabilities of public officials Updated publication of audit reports through the SAI’s website Legal assistance to auditors only

Types of corruption detected by audit through sufficient mandate, tools and techniques Of SAI •

Conflict of Interest • Asset misappropriation • Fraud • Embezzlement • Nepotism • All types of Illegal activities in public procurement procedures

Audit services which are most instrumental in the detection and prevention of corruption in the Philippines

(Ranked) •

Fraud/Forensic Audit • Compliance/Regulatory Audit • Financial Audit • Performance Audit • Value-for-Money Audit

Audit tools and techniques use to detect corrupt activities and transactions in the government (In order of effectiveness)

•

• • • • •

Third Party Confirmation Observation and Technical Inspection Review of procurement process Substantive testing of disbursement vouchers and ing documents Surprise cash examination Network Analysis/Data Analytics

Most high profile corruption case uncovered 

The audit of the Priority Assistance Fund and the Malampaya Funds were the most high profile cases as it involves billions of pesos. The implementing government agencies which were supposed to implement the programs, projects and activities contracted out the same to the Non-Governmental Organizations (NGOs) which turned out to be fictitious entities. The projects either turned out to be ghost projects or implemented with substantial deficiencies or deviations from work program and purpose of appropriation of funds.

The best audit practices that led to the detection of the most high profile corruption case • • • • •

Network Analysis Whistle blowing Confirmation with third parties and regulatory agencies Observation/Technical Inspection Analysis of legality of funds sources and tracing where the money has gone • Validation of the legal existence of NGOs and suppliers, actual receipt of goods and services by intended beneficiaries • Substantive testing of disbursement vouchers and ing documents • Analysis of contracts, agreements, work financial plan, etc

Reports issued



Our SAI issues a special audit report specifying the audited corrupt activities and transactions, the pecuniary loss suffered by the government, the persons responsible/liable and the laws and rules violated.

Parties where COA submits the audit report

Entity’s management • Legislative body • Executive body • Law Enforcement Agency •

Legal actions that COA can initiate against the perpetrators of corrupt activities and transactions 

Our SAI may recommend to the Ombudsman the criminal prosecution as well as imposition of istrative sanctions against the persons involved in the corrupt transactions. With regard to the civil liability, our SAI issues a Notice of Disallowance directing the persons liable to return/restitute the public funds irregularly/illegally disbursed but still subject to appeals process.

Mechanism to ensure that the audit findings and recommendations are properly acted upon by the concerned body



Our SAI’s role is purely recommendatory in nature

ASSESSMENT OF SAI’S PERFORMANCE AND INTEGRITY IN THE PREVENTION AND DETECTION OF CORRUPTION

Field of the anti-corruption efforts COA contributes best •

•

Preventive actions by providing recommendations to improve entity’s anti-corruption and internal control system and sharing best practices and benchmarking information to assist decision-makers Detective actions through the conduct of fraud/forensic audits and timely reporting of the audit results to the Prosecution Department

Performance rating of COA in combating corruption 

Good: Criminal cases have been filed against high ranking/top public officials. Fiscal and public ability equally apply to all government employees regardless of rank.

Method used by SAI to obtain objective information about the effectiveness of its anti-corruption policy and performance  Third-party satisfaction surveys

Implementation of a self-integrity assessment such as the “IntoSAINT Methodology” mentioned in the exposure draft of ISSAI 570 

Philippines has not implemented this selfintegrity assessment.

AUDIT LIMITATIONS IN THE PREVENTION AND DETECTION OF CORRUPTION

Types of controls which do not have a sufficient level of maturity to ensure the integrity and competence of your SAI in the field of anticorruption •

Organizational culture • SAI legal framework • Vulnerability / risk analysis

Necessary changes in the legal framework and organizational structure to better address growing demand for anti-corruption activities •

To be insulated from political pressure and influences, our Commissioner’s should not be subjected to confirmation by the Commission on Appointments which are composed of legislators. Our budget must be based on a fixed percentage of the national budget without undergoing the political budget review process of Congress and the executive department.



Our SAI should be empowered to look into bank deposits of individuals if there are evidence of their involvement in corrupt activities. Our SAI should be given the power to execute final and executor Notices of Disallowances/Charges through levy of properties and garnishment of bank s. There must be a shift of national strategy from financial audit to regularity or compliance audit.

Factors which hamper SAI’s role in the fight against corruption •

Corrupt people are not severely punished • Collusion between law enforcers and corrupt people • Fear of retaliation and victimization • Lack of competent and experienced staff to handle corruption cases

Guaranteed rights to those conducting fraud/forensic audits • •

•

•

Legal and financial assistance to auditors acting as witnesses in a corruption case Power to issue compulsory processes to command submission of required documents Access to government offices’ ing records, financial statements, contracts and other legal instruments Investigatory and inquisitorial powers such as power to punish for contempt

COOPERATION AMONG SAIS AND ANTICORRUPTION AGENCIES

Cooperation of SAI with foreign counterparts in fighting corruption



United Nations Convention on Anti-Corruption

Legal instruments that provides for a t undertaking among your SAI and anti-corruption agencies relative to the prevention, detection, reporting and prosecution of corrupt activities in the government



The Presidential issuance creating the Inter-agency Anti-Graft and Corruption Coordinating Council composed of our SAI, the Office of the Ombudsman, Civil Service Commission, National Bureau of Investigation, Anti-Money Laundering Council, Department of Finance and Department of Budget and Management

Anti-corruption coordination between SAI and international organizations 

In 2012, the Philippine Government entered into an agreement with the International Bank for Reconstruction and Development of the World Bank for a grant aimed at further improving the effectiveness and efficiency of COA audit capabilities in financial, compliance, procurement, value-for-money and fraud audits through the development and adoption of a results-based integrated audit methodology using the Integrated Results and Risk-based Audit (IRRBA), The IRRBA and the Forensic Audit Manuals were developed as the primary guides of the audit sectors for the conducts of an integrated audit of agencies. The manuals contain the concepts, related International Standards of Auditing (ISAs) and International Standards of Audit for Supreme Audit Institutions (ISSAIs), relevant procedures, and documentation structure for the delivery of an integrated audit to auditees using the IRRBA.

Anti-corruption coordination between SAI and international organizations 

Integrity for Investments Initiative (i3) - one of the USAID projects under the Partnership for Growth (PFG), a White House signature initiative that elevates bilateral engagement between the Government of the Philippines and the US Government to address the most serious constraints to economic growth and development in the Philippines. I3 will contribute to inclusive growth by reducing the costs of corruption to investments and trade, thereby promoting open and fair competition. The 5-year project commenced on 20 February 2013, with $14.7 million total estimated cost.



The project will work with anticorruption offices, primarily the Office of the Ombudsman (OMB), Commission on Audit (COA), Civil Service Commission (CSC), Securities and Exchange Commission (SEC), and the Governance Commission for Government-Owned and Controlled Corporations (GOCCs).

Anti-corruption coordination between SAI and international organizations 

The Philippines–Australia Public Financial Management Program (PFMP) is a long term partnership between the Governments of Australia and the Philippines to improve the efficiency, ability and transparency of public fund use in the Philippines.



The PFMP is assisting the Philippines Government to implement its Philippine PFM Reform Roap: Towards Improved ability and Transparency, 2011–2015. This comprehensive PFM reform agenda aims to clarify, simplify, improve and harmonize the financial management processes and information systems of the civil service in the Philippines.

Improving anti-corruption measures at national level 

The Commission on Audit (COA), together with the Australian Government, launched the Disaster Risk Reduction and Management (DRRM) ing and Reporting Guidelines aim to further improve transparency and ability in the use of disaster funds. “Benchmarked against the International Standards for Supreme Audit Institutions, these will ensure that all disaster-related funds and donations are properly ed for and efficiently utilized. With the recent typhoons and other calamities, the Philippine government was faced with the challenge of protecting disaster aid funds without impeding response time and recovery assistance. In the case of Typhoon Yolanda (Haiyan), the public clamored for transparency on the use of government funds and other contributions from local and international donors.



The use of the Disaster ing Guidelines will make the Filipino people confident on how disaster funds are allocated, utilized, and ed for.

Improving anti-corruption measures at national level 

The USAID-funded Philippines Integrity Project focuses on current successful anticorruption initiatives while also establishing new initiatives to improve integrity within government agencies. It builds on work done from 2006 to 2009 by Management System International on the Millennium Challenge -Philippines Threshold Program Technical Assistance Project.



More specifically, the Project has four components. MSI will assist the Office of the Ombudsman (OMB) in reengineering its business process in order to build better case records and information management capabilities and to improve capacity to use the Information Technology physical infrastructure now in place.

Improving anti-corruption measures at national level



MSI will work with the OMB and the Department of Justice (DOJ) to build an effective system for successful prosecution of lower court corruption cases. MSI will completion and maintenance of an accurate database of cases to use as a tool for sound caseload management. It will also execute a Memorandum of Understanding between OMB and DOJ to their collaboration on successful, timely prosecution, and training to make prosecutors more effective. Through a small grants program, civil society will conduct a court watch program.



MSI will also put in place a system to manage judicial court case evidence to more successful prosecutions at all levels.

Improving anti-corruption measures at national level 

Initiatives in the fight against corruption will usually be most effective if they are carried out by concerned agencies cooperatively. MSI will provide specific targeted for the strengthening of the cooperation between the OMB, the Commission on Audit (COA) and the Civil Service Commission (CSC). will focus on the more effective use of the Statement of Assets Liabilities and Net Worth and audits in prosecution of public officials for graft and corruption through t training of auditors, investigators and prosecutors.

Improving anti-corruption measures at national level Improvement of legal regulation in financial area –  RA 9160, the Anti-Money Laundering Act of 2001 amended on 5 March 2003 (RA 9194). RA 9160 criminalized money laundering in the Philippines and, at the same time, introduced civil forfeiture as an appropriate remedy for the seizure and forfeiture in favour of the State, without the necessity of conviction or prosecution in a criminal case, of monetary instrument, property or proceeds involved in or related to an unlawful activity or money laundering offense as defined in the law. RA 9160 likewise created the Philippines Financial Intelligence Unit (FIU), the Anti-Money Laundering Council (AMLC) 



The COA is a principal of the Reform Program, along with the DBM, DOF and BTR. The PFM Reform Program of the government under the leadership of President Benigno Aquino III seeks to improve “efficiency, transparency and ability in public fund use. Executive Order No. 55 signed on September 16, 2011 empowers the PFM Committee to implement the PFM Reform Roap,, an all-inclusive plan that will clarify, simplify, improve and harmonize the government’s financial management processes and information systems.

Development of anti-corruption standards for public servants 

Integrity Development Review (IDR). The IDR, which involves a systematic and comprehensive review of systems and procedures to determine corruption vulnerabilities and integrity safeguards, has been implemented since 2004. Agencies are required to craft action plans to address their agency vulnerabilities.

Development of anti-corruption standards for public servants 

Moral Renewal Action Program (MRAP). istrative Order 255 was issued on January 30, 2009 directing the government agencies to set up Moral Renewal Program to achieve zero tolerance for corruption. It serves as the legal infrastructure to ensure the adoption and implementation of the Integrity Development Action Plan (IDAP) which is the Anticorruption Framework for the Executive Branch. It also brings into the fore the importance of expansion and strengthening of the hip of the Integrity Committee and adoption/updating of agency-specific Code of Conduct, among others.

Development of anti-corruption standards for public servants 

Inter-Agency Anti-graft Coordinating Council (IAAGCC). It is composed of representatives from 8 agencies including COA to create/approved/monitor the following committees/projects through its Principals (heads of agencies):



COA-OMB t Investigation Team - a t investigation team formed in 2012 to ensure the efficient and successful filing, investigation and prosecution of cases involving graft, corruption and violations of the ethical code of conduct for public officials and employees. The t team gave priority to the investigation and prosecution of selected high profile cases.

Inter-agency Anti-Corruption Coordinating Council 

Inter Agency Policy Study Team (IAPST) – aims to come up with policy recommendations to be signed by IAAGCC Principals, in order to prevent/avoid repetition of what happened with the Priority Development Assistance Fund/Various Infrastructures including Local Projects (PDAF/VILP) funds; to guide the legislators and those people in the approval/ budgeting/ disbursements of funds of similar nature



Rationalization/Harmonization Workshop sponsored by the British Embassy – to harmonize the processes of IAAGCC’s member-agencies in order to enhance anti-corruption enforcement in the Philippines



IT-based Reporting of Anomalies and Irregularities Project – aims to interconnect IAAGCC’s Member agencies as regards to IT reporting anomalies

“SAI should strengthen investigative powers in SAI mandate.” 

Yes, contemporary audit standards impose an obligation on the auditor, to take positive actions that will help assure the detection of probable fraud if it exists

Reasons why auditors do not detect more fraud • Lack of audit skill • No experience, training or skill in fraud awareness, detection and investigation • Failure to include fraud detection when planning audits • Lack of an awareness of the probabilities of fraud occurring in the area being audited • Unaware of the implications of red flags or other fraud indicators • Failure to follow up on fraud symptoms and indicators

Part 3 

Planning Stage – Highest Risk Area for all Sectors • Public procurement and contracting • Infrastructure projects • Funds transferred to NGOs/projects implemented by NGOs using government funds

Planning the Audit and Formulating Audit Programs 

The auditors/investigators assume duties more like that of a detective, gathering evidence to determine, among other things, whether: There is a probable fraud, Who may have committed the probable fraud, The extent of the loss if any, and Information as to how the probable fraud was perpetrated.

Planning the Audit and Formulating Audit Programs 

Matters to be considered, as part of the fraud audit/investigation planning process should include: of reference for the investigation. Specific issues and matters to be examined in depth. Evidence required. Identification of functional areas and key staff to be involved. Identification of specialist expertise or required. Expected costs and time period for the investigation. Milestones, key review points and report-back dates. Possible outcomes.

How to detect corruption in public procurement and contracting 

Red Flags – Procurement of services, goods, or work projects not needed, or in excess of what may be required. – Needs assessments for services, goods, or work projects that are not adequate or are not accurately developed. – Requirements that justify continuing to contract with or buy from only certain contractors or vendors. – Defining requirements so that only certain contractors or vendors can supply them.

How to detect corruption in public procurement and contracting 

Red Flags – Unsuccessful bidders who become subcontractors, or goods and services suppliers. – Contracting or purchasing from a single source without developing alternate sources of goods and services. – Work statements or material specifications that appear to fit a favored or single contractor or vendor. – Releasing procurement information to preferred or selected contractors or vendors. – Consulting with preferred contractors and vendors about requirements and specifications.

How to detect corruption in public procurement and contracting 

Red Flags – Deg pre-qualification standards, specifications or conditions to limit competition to preferred vendors or contractors. – Splitting contract requirements to so that contractors and vendors can share or rotate bids and awards. – Splitting procurement requirements to avoid procurement policies.

How to detect corruption in public procurement and contracting 

Red Flags – Lost or misplaced vendor or contractor bid proposals and price quotations. – Questionable disqualification of a contractor or vendor. – Biased proposal evaluation criteria. – Award of contract or purchase order to other than lowest responsible bidder. – Material changes to the contract or purchase order after the award.

How to detect corruption in public procurement and contracting 

Red Flags – Awards to contractors or vendors with a history of poor or questionable performance. – Incorrect certification by the contractor or vendor as to the stage of contract completion or delivery of goods and services. – The delivery of services or materials that do not conform to contract or purchase order requirements. – Acceptance without verification of contractor or vendor certification of service and material quality

Public Information System  

Welcome to the COA Public Information System To efficiently respond to requests, we utilize this Helpdesk using a ticket system. Every request is assigned a unique ticket number as reference for tracking your concern. Every request requires a valid email address. Open A New Ticket



Please provide as much detail as possible so we can best assist you. To update a previously submitted ticket, please .  Open a New Ticket  Check Ticket Status 



We provide archives and history of all your current and past requests complete with responses. Check Ticket Status

Citizens’ Desk 

For reports on allegations of fraud, waste, abuse or mismanagement of funds, please visit our Citizens' Desk:

The citizen portal of the COA

Report a case or volunteer to be a citizen auditor

People’s vigilance 

In participatory audit, citizens (civil society, academic groups, community , private sector) and the COA work together to audit the processes of delivering public services and government programs. As a result, transparency and ability in the way government performs its functions is enhanced

Forensic/Investigative Audit Office 

Fraud Audit Office – conducts audits of government agencies with probable fraudulent transactions to safeguard government assets against abuse and fraud and to respond to the increasing public demand for fidelity in the use of government funds and properly. – It is a multi-disciplinary office with staff composed of lawyers, engineers, Certified Public ant and Certified Fraud Examiners – It has a Forensic Auditing Manual developed under the Integrity Project contracted by the Management Systems International and funded by the USAid

Forensic Auditing Manual 

The Audit Manual on Forensic Auditing discusses forensic auditing as a tool to prevent, detect, investigate and the prosecution of fraud. It explains the auditor’s responsibility to take a proactive approach in detecting, documenting, and referring instances of probable fraud, the concept and principles underlying forensic audit; the standards in the effective conduct of forensic audit; the techniques, analytical tools and approaches used in forensic auditing; the gathering, preservation and use of forensic evidence for purposes of establishing istrative, civil and criminal liability; the specific stages and the logical procedures involved in forensic audit; and fraud detection and investigative processes specific in the conduct of forensic audit and investigation.

Capacity Building 





A General and Sector Specific Fraud Awareness Training was conducted on 30 July 2014. The training focused on understanding fraud, detecting and addressing fraud, assessing and preventing fraud and investigating fraud. Also included in the training is the infrastructure fraud awareness. Certified Fraud Examination Training – to provide COA personnel continuous development of their skills and competence Cross training with Anti-corruption agencies

Utilization of Fraud Audit Reports – Fraud audit reports with findings of fraudulent acts discovered in audit/investigation are transmitted by Head of SAI to the Office of the Ombudsman with recommendation to file appropriate cases against persons liable/responsible.

Contents of Fraud Audit Reports 

The fraud audit report shall state the findings vis-à-vis the allegations in the complaint; the laws, rules and regulations violated; the persons liable; and the evidence in of the findings.  The amount of loss or damage to the government shall be specified.  The list of evidence shall be attached to the report together with the pieces of evidence.

When the people become involved in their government, government becomes more able, and our society is stronger, more comionate, and better prepared for the challenges of the future. - ARNOLD SCHWARZENEGGER

THANK YOU AND GOOD DAY!!!