PA 113 – GOVERNMENT ACCOUNTING
The Commission on Audit (COA) keeps the general accounts of the government, promulgates accounting rules and regulations, and submits to the
President and Congress, within the time fixed by law (not later than the last day of September each year – Section 41, PD 1445), an annual report
of the government, its subdivisions, agencies and instrumentalities, including government-owned or controlled corporations.
As mandated by Article IX-D, Section 2 par. (2)of the 1987 Constitution of the Philippines, to wit: “The Commission
on Audit shall have exclusive authority, subject to the limitation in this Article, to define the scope of its audit and
examination, establish the techniques and methods required therefor, and promulgate accounting and auditing rules
and regulations, including those for the prevention and disallowance of Illegal, irregular, unnecessary, excessive,
extravagant,
or
unconscionable expenditures,
or
uses
of
government funds and properties,
As mandated by Article IX-D Section 2 par. (2) of the 1987 Constitution of the Philippines, the Commission on Audit shall have
exclusive authority, subject to the limitation in this Article, to define the scope of its audit and examination, establish the
techniques and methods required therefore, and promulgate accounting and auditing rules and regulations, including those for the
prevention and disallowance of:
1.
IRREGULAR EXPENDITURES signify that the expenditure is incurred without adhering to established rules and regulations, procedural
guidelines, policies, principles and practices that have gained recognition in law; incurred without conforming to o r o b s e r v i n g
p r e s c r i b e d u s a g e s o r r u l e s o f discipline, established pattern, course, mode of action, behaviour or conduct. Examples;
- Premiums paid for the personnel accident insurance of officers and employees of GOCCs in the absence of a prior authority from the OP
and DBM
-Payment of salaries and wages wherein signatures per logbook vary with those in the payroll/DTR; or unauthorized payment to person/s
other than the payee
2.
ILLEGAL EXPENDITURES pertain to those incurred in violation of the law and its IRR. Examples
- Contracts awarded under an alternative mode of procurement for items that should have been subject of public bidding
3.
- Use of public funds for private purpose
EXCESSIVE EXPENDITURES signify incurrence of unreasonable expenses at immoderate quantity and/or exorbitant price; expenses that
exceed what is usual or proper. Examples
- Grant of cash advance in excess of estimated budget/requirement;
- Supplies and materials including fuel inventory in quantities exceeding the normal three-month requirement, except for circumstances
authorized by law;
- Overpricing of purchases in excess of current/prevailing market price by 10%
4.
UNNECESSARY EXPENDITURES - pertain to those that cannot pass the test of prudence or the diligence of a good father of a
family, thereby denoting non-responsiveness to the exigencies of the service; they are not supportive of the implementation of the
objectives, goals and mission/mandate of a government agency; incurrence of expenditure not dictated by the demands of
good governance; not essential to or can be dispensed with without incurring loss or damage to property. Examples
Purchase of high-end/expensive models/brands of electronic
gadgets
(phones/cellphones/desktops/laptops, etc.
- Construction of structures/buildings/procurement of equipment not really needed/not put to use/not completed/could
not
be
properly maintained/operations not sustained
5. EXTRAVAGANT EXPENDITURES signify those incurred without restraint, judiciousness and economy; they exceed the bounds of propriety
being immoderate, prodigal, lavish, luxurious and injudicious. Examples
- Rental of expensive halls/rooms in plush/luxury hotels/restaurants for purposes of holding office meetings/functions, except for
government sponsored international conventions, meetings and the like
-Installation of luxurious building furnishings except those intended for showcase, trade and commerce, promotion of arts and culture and
for use of foreign dignitaries
- Hiring of expensive vans, cars, aircrafts when there are available ordinary public conveyances, except in meritorious cases/justified by
prevailing circumstances
6. UNCONSCIONABLE EXPENDITURES pertain to expenditures acquired in unreasonable and immoderate price or quantities, and which no
reasonable person/person in his right mind would incur/make, nor would a fair and honest man would accept as reasonable; those incurred without
considering ethical and moral standards. Illustrative cases are the following payment of expenditures: Examples;
-
Live-in seminars in five-star hotels with significant number of participants and unreasonable length of time;
Excessive and unreasonable retirement benefits, bonuses, allowances and fringe benefits
Granting loans to unqualified borrowers and borrows unlikely to payback the loans
Reimbursement
of
expenses
for
unauthorized
attendance
in
conferences/meetings/official
functions