COMMISSION ON AUDIT MEMORANDUM NO. 83-333
TO
January 12, 1983
: All COA Managers, General Counsel, Regional Directors, Assistant Regional
Directors, Supervising Auditors, Auditors and All Others concerned.
SUBJECT : General Guidelines on Inspection of Deliveries and Inventories.
Pursuant to Section 5.2 of COA Circular No. 82-195 dated October 26, 1982 that
"Inspection of deliveries of inventories (food stuffs, medicines, supplies, materials, equipment
and the like)" shall be retained as an audit activity but not as a pre-requisite to payment of
claims, the implementing guidelines are hereby promulgated, to wit:
I.
Duties and Responsibilities of the Auditing Units
1.
Require from management strict compliance with Section 5.1 of COA Circular
No. 82-195 dated October 26, 1982 which states that "xxxx. All contracts/
purchase/letter orders, together with their supporting documents, shall be
submitted to the COA within five (5) days after perfection thereof. The
unjustified failure to comply with this time frame shall subject the
responsible person (s) or unit to appropriate administrative sanction or
penalties as set forth in LOI Implementation No. 136."
2.
Submit monthly, copies of all the above papers to the Technical Service Office
for statistical purposes and proper implementation of its responsibility for staff
service as embodied under Section III-3 of COA Memorandum No. 83-328
dated January 3, 1983.
3.
Select from the above papers those orders which, in the exercise of good
judgment, necessitate spot inspection.
4.
a.
In cases of auditing units where the statistical sampling method of
post-audit of transaction, as prescribed under COA Memorandum No.
82-316 dated October 5, 1982 is applicable, those samples taken for
post-audit shall invariably be subjected to spot inspection when the
same have not been previously selected for inspection pursuant to No.
3 above.
b.
In cases of auditing units where 100% post-audit of all transactions is
required, it does not necessarily require that 100% inspection shall also
be made. Inspections shall remain to be conducted on a selective basis,
at the discretion of the auditor. All other transactions without spot
inspection will therefore be post-audited on the basis of the agency's
inspection report and/or acceptance.
Request management to submit a certified true copy of the Certificate of
Acceptance (see form attached - Annex "A") together with a copy of the
supplier's invoice/delivery/repair done not later than the next working day after
acceptance thereof, which shall serve as notice that delivery/service as ordered
has been made/rendered to enable the Auditor concerned to cause the prompt
inspection thereof as provided under Item No. 3 of COA Memorandum No. 81280 dated July 21, 1981 which states, among others, that "To be more effective,
the spot inspection may be made preferably soon after delivery/repair/project
accomplishment has been accepted by management."
5.
Endorse selected transactions for inspection upon receipt of the Certificate of
Acceptance to the Technical Property Inspector or the Authorized Inspector of
the Unit, as the case may be, together with the pertinent papers relevant to
inspection.
The work of the Technical Property Inspector shall be limited to those tasks
which require their technical and professional competence. Annex "A" and "B"
of COA Memorandum No. 112-E dated August 5, 1981 is hereby amended
under Annex "B" of this memorandum regarding the scope of these inspection
tasks.
6.
II.
The report of the inspector concerned shall be made an integral part of the
voucher upon post-audit of the same and shall not be submitted to management
for disbursement purposes since it is no longer a pre- requisite for payment of
claims.
Duties and Responsibilities of the Inspectors
1.
Inspection shall be conducted on selected transactions upon proper
endorsement of the Auditor/Regional Director in addition to spot inspection
directed at the instance of the Manager, Technical Service Office or the Regional
Director concerned.
2.
Independent laboratory tests when needed shall be required in accordance with
existing rules and regulations.
All charges or fees for the test or analysis service on delivery samples shall be
paid by the purchasing agency; chargeable against its funds.
3.
In cases where items for inspection have already been consumed, issued
out/distributed or stored with previous stock balances, verification of the
accomplishment of the proper inventory records as required under existing
accounting and auditing rules and regulations shall be made to determine
whether or not they have been properly accounted for.
4.
A brief but accurate report on inspection conducted, of the items
delivered/services rendered in accordance with the specifications of the order,
shall be accomplished on the attached revised inspection report form (Annex
"C"). Conclusive findings shall invariably be embodied in the report.
5.
Reports must likewise indicate such other observations that may be worthwhile
mentioning during the course of inspection like the agency's storage facilities,
overstocking and environmental conditions, etc., which may contribute to the
untoward loss or wastage of property with recommendations on measures that
may be adopted to strengthen controls and provide for economical and efficient
operations.
6.
Daily individual reports shall be prepared for complete and partial inspections
conducted during the day and shall be submitted to the Auditor for his
appropriate action and guidance in post-audit.
All other COA Circulars, Memoranda and regulations inconsistent herewith are hereby
amended or superseded accordingly.
For immediate compliance.
(SGD.) FRANCISCO S. TANTUICO, JR., Chairman
(SGD.) SILVESTRE D. SARMIENTO, Commissioner
ANNEX "A"
Republic of the Philippines
____________________________
(Agency)
_____________________________
(Address)
Date___________________
I/We hereby certify to have accepted each and every article delivered/service rendered
by __________________________________, listed in the attached Invoice No.__________
dated________________ which has been inspected and was/were found to be in accordance
with the specification stipulated under Order No. ___________ dated ______________.
______________________________
(Signature)
______________________________
(Print Name)
Head of Agency or Authorized
Representative
Annex "B"
Listing of Procurement Items Subject to Inspection by COA
TECHNICAL PROPERTY INSPECTORS
1.
Capital Outlay Projects: All work accomplishment which involves the conversion of
raw materials (cement, aggregates, steel, lumber, etc.) into finished products (buildings,
roads, etc.) and for which specifications for production or construction methods as well
as for the product itself, are established and agreed upon (by the owner and the
contractor) beforehand.
2.
Deliveries of equipment and materials as follows:
-
Carpentry tools (motorized)
-
Chemicals, drugs and medicines
-
Construction materials
-
Electrical supplies - conduits, circuit breakers, oil, liquid immersion transformers,
cables and wires
-
Electronic equipment
-
Garden tools (motorized)
-
Generators, generating machines
-
Heavy equipment
-
Medical and laboratory supplies, gauze and bandages
-
Motor vehicles
-
Office equipment
-
Spare parts for vehicles and heavy equipment
3.
Repairs of Motor Vehicles and other equipment
4.
Repairs and renovations of office and building facilities
5.
Electrical, mechanical, electronic and communications installations
6.
Witnessing the inspection, destruction of sale of unserviceable property and approval of
price fixed by the proper committee in private sales of the aforesaid property (Section
79, P.D. No. 1445).
7.
Witnessing the physical inventory of motor vehicles and other equipment, excluding
office equipment.
Supplies, materials and equipment other than those listed above, except chemicals,
drugs and medicines as provided under COA Memorandum No. 112-G dated September 13,
1982 which shall remain to be in force, shall continue to be inspected by the Unit Auditor or
his authorized representative.
This listing supersedes those authorized by previous COA Circulars Memoranda and
regulations including those authorized under the Property Inspection Manual, 1979.
Annex "C"
Republic of the Philippines
COMMISSION ON AUDIT
____________________
(Agency)
____________________
(Address)
Date____________________
Referred to :
(Inspector)
per attached supporting documents.
for inspection and/or verification of delivery/service
Dealer ______________________________________________________
Order No. ________________ dated____________, P________________
Invoice No._______________ dated____________, P________________
Certificate of Acceptance
dated____________, P________________
Others ______________________________________________________
Delivered at ____________________ on ________________________________
Nature of delivery ___________________________________________________
(complete, partial, completion, replacement, etc.)
Referred by: ____________________
(Auditor)
____________________
Received by: ____________________
Date received: __________________
INSPECTION REPORT
____________________
Date
Inspected/verified on _____________; nature of inspection _______
(complete; partial; etc.)
FINDINGS:
RECOMMENDATIONS:
Submitted by:___________________
Inspector
___________________
Noted by: ___________________
(Auditor)
Received by _________________________ on _______________________