Fernado vs. COA
Doctrine: Executive Committee of MMFF though not a GOCC, has an administrative relationship to
MMDA a government agency tasked to perform administrative, coordinating and policy-setting
functions for LGUs in the Metropolitan Manila Area.
As such funds of the Executive Committee are considered public funds subject to COA Jurisdiction.
Brief Summary of the case:
COA issued an Office Order authorizing the Fraud Audit and Investigation Office to conduct a special
audit on the disbursement of the Executive Committee of the MMFF for calendar years 2002-2008. It
found that petitioner received and certain amounts from the Executive Committee of MMFF for the
Special projects/activities of MMDA sourced from the advertising sponsorship of MMFF.
Issue : Does COA have jurisdiction over the funds of MMFF which is not a public office.
Ruling:
Yes, COA have jurisdiction over the funds of MMFF which is not a public office. Section 2, Article IX-D of
the constitution provides that COA’s audit jurisdiction which incudes the power, authority and duty to
examine,audit and settles all accounts pertaining to the revenue and receipts of and expenditures or
uses of dunds of property, owned or held in trust by or pertaining to the government, or any ofitd
subdivisions, agencies or instrumentalities including government owned and controlled corporations
with original charters and on post audit basis.
The Executive Committee of the MMFF was created pursuant to Procalmation No. 1459. Considering the
establishment and mechanism of the Executive Committee of the MMFF, it is apparent thatit isnot a
GOCC subject to COA jurisdiction. However, Court finds that Executive Committtee is subject to COA
jurisdiction, considering its adimitrative relationship to MMDA, a govt agency tasked to perfom
administrative, coordinating and policy-settiingfuunctions for the LGU in MetroManila.
The fundsof ExecCommitteeare considered public funds. The Executive Committee has two source of
fund namely: The donations from LGU comprising the Metropoitan Manilacovering the peiod of holding
the MMFF from Dec 25 to January 3 and the non tax revenues that come in the frm of donations from
private entities.
As a committee underMMDA, a public office, this court finds that both sources of funds can properly
besubject of COA’s audit jurisdiction.