The Commission on Audit (COA) is the independent constitutional commission responsible for examining, auditing, and settling all accounts of the Philippine government. It has various responsibilities including promulgating accounting rules, submitting annual reports to Congress, recommending improvements, and deciding cases. In 2002, COA introduced a new accounting system called NGAS to simplify accounting, improve monitoring, and increase transparency. It also oversees public procurement processes and helps enforce fiscal responsibility.
Original Description:
Dealing with fiscal administration and performance mechanism
The Commission on Audit (COA) is the independent constitutional commission responsible for examining, auditing, and settling all accounts of the Philippine government. It has various responsibilities including promulgating accounting rules, submitting annual reports to Congress, recommending improvements, and deciding cases. In 2002, COA introduced a new accounting system called NGAS to simplify accounting, improve monitoring, and increase transparency. It also oversees public procurement processes and helps enforce fiscal responsibility.
The Commission on Audit (COA) is the independent constitutional commission responsible for examining, auditing, and settling all accounts of the Philippine government. It has various responsibilities including promulgating accounting rules, submitting annual reports to Congress, recommending improvements, and deciding cases. In 2002, COA introduced a new accounting system called NGAS to simplify accounting, improve monitoring, and increase transparency. It also oversees public procurement processes and helps enforce fiscal responsibility.
constitutional commission has the following powers and
functions ACCOUNTING MONITORING:COA With its primary function to examine, audit, and settle all accounts and expenditures of the Philippine government, COA has the following responsibilities:
1. Examines, audits, and settles all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property owned or held in trust by, or pertaining to, the government; 2. Promulgates accounting 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; 3. Submits annual reports to the President and the Congress on the financial condition and operation of the government;
ACCOUNTING MONITORING:COA 4. Recommends measures to improve the efficiency and effectiveness of government operations; 5. Keeps the general accounts of government and preserve the vouchers and supporting papers pertaining thereto; 6. Decides any case brought before it within 60 days; 7. Performs such other duties and functions as may be provided by law
ACCOUNTING MONITORING:COA January 2002 COA introduced NGAS (New Government Accounting System), the supreme audit authority of the Philippines designed to:
Simplify govt accounting; Improve monitoring public sector performance efficiency, and; Increase transparency of government audits through civil society involvement. ACCOUNTING MONITORING:COA New features of the NGAS:
From cash- to accrual-based accounting; Introduced modifications to the obligation-accounting techniques; Introduced valuation accounting for receivables and fixed assets; Full computerization of govt accounting.
ACCOUNTING MONITORING:COA Procurement
January 2003 GPRA (Government Procurement Reform Act) was ratified Permanent changes to the manual procurement system were put in place; Mandated govt procurement via electronic means; Created the GPPB (Govt Procurement Policy Board) which protects national interest in matters of public procurement, provides procurement rules and regulations, oversees implementation of procurement process, recommends changes to the GPRA (if necessary). 2004 The govt adopted an aggressive and bold agenda that seeks to bring down the fiscal deficit over the medium term.
FISCAL STRATEGY AND NEW MEASURES IN THE PHILIPPINES The plan centers on achieving a balanced budget in 2010 through:
Improved tax administration; New tax measures; Privatization and restructuring of GOCCs (specially in the power sector); Rationalized bureaucracy; Improved public dept and expenditure management. FISCAL STRATEGY AND NEW MEASURES IN THE PHILIPPINES Priority areas:
Revival of tax collection Restoring financial viability of the power sector FISCAL STRATEGY AND NEW MEASURES IN THE PHILIPPINES Proposed tax measures:
2-step VAT increase; Tax on telecommunications; Adoption of gross income taxation; Rationalization of fiscal incentives; Indexation of sin taxes; General tax amnesty; Lateral attrition for tax collection agencies; Adjustment in excise tax on petroleum products. FISCAL STRATEGY AND NEW MEASURES IN THE PHILIPPINES The sin tax, amended December 2004, increased the rate of excise tax on alcohol and tobacco products Excise tax / sin tax taxes on goods that are considered as vices Lifted exemption of taxes on imported tobacco and alcohol products (except for Duty Free products) FISCAL STRATEGY AND NEW MEASURES IN THE PHILIPPINES VAT (Value Added Tax) Law, May 2005 E-VAT (Expanded VAT) lifted exemption from VAT of : some professionals; Natural gas; Coal; Petroleum products Increased VAT rate by 2%.
FISCAL STRATEGY AND NEW MEASURES IN THE PHILIPPINES Lateral Attrition Law (RA 9395) , 2005 boost tax administration in BIR and BOC by:
Providing performance incentives Improving performance evaluation system
The BIR, as provider of 80% of the RPs tax revenue, an aggressive program was implemented to improve tax collection IMPROVEMENTS IN TAX COLLECTION The following programs are implemented:
1. RUN AFTER TAX EVADERS (RATE) tax cases are filed against high profile personalities, at a rate of one (1) case per week; 2. RUN AFTER THE SMUGGLERS (RATS) tax cases are filed against high profile smugglers, at a rate of one (1) case filed seizure of cargo every two (2) weeks; 3. REVENUE INTERGRITY PROTECTION SERVICE (RIPS) conduct of lifestyle checks against officers & employees of the BIR and BOC, at a rate of at least one (1) case every two (2) weeks.
DEBT AND EXPENDITURE MANAGEMENT The Government has drafted a fiscal responsibility bill that proposes a prudent debt and expenditure management strategy. This bill will impose a debt cap (as percentage of GDP) to reduce consolidated non-financial public sector and NG debt to manageable levels and provide for a three- year Executive-Legislative Medium-Term Fiscal Accord which should improve predictability of funding for priority government programs. A Debt and Risk Management Office is being established in the DOF.