CHAPTER 2

ing
By: Ma’am Farah A. Palameña
The Philippine Constitution
explicitly provides for an
independent Commission on Audit.
It is not appended to the executive,
legislative or judicial branch of
Government (Sec. 11, Art IX-A 1987
Const.)
Its decisions, orders or rulings on cases
of matters brought before it may only
be appealed to the Supreme Court on
certiorari ( Sec. 7 Art. IX-A 1987
Philippine Constitution)

1.1 Constitution provides that the COA

shall enjoy fiscal autonomy.
1.2 The declared policy of the State that
all government resources” shall be
managed, expended and utilized in
accordance with law and regulations and
safeguarded against loss of wastage…
with a view to ensuring efficiency,
economy and effectiveness on the
operation of the gov’t.
1.3 The Commission shall determine whether
or not the fiscal responsibility that rests
directly with the head of the government
agency like DepEd has been properly and
effectively discharged (Sec. 25(1), PD 1445)
1.5 Any person aggrieved by the decision of
an auditor may, within six (6) months from
receipt of a copy thereof, appeal in writing to
the Commission (Sec. 48, PD 1445). The
Commission may delegate the preliminary
adjudication of the claim to the COA Directors
1.6 The Chairman or any Commissioner
of the Commission, Central Office
Directors, Regional Directors, Auditors of
any gov’t agency and other officials or
employees of the Commission specially
deputized in writing by the Chairman
shall, in compliance with the
requirement of due process, have the
power to summon the parties to a
case brought before the Commission for
resolution, issue subpoena and
subpoena duces tecum, administer oaths
and otherwise take testimony in in any
investigation or inquiry or any matter
within the jurisdiction of the
Commission.(Sec. 40(1), PD 1445)
1.7 The Commission shall have the
power to punish for contempt provided
For in the Rule of Court under the same
procedure and with the same penalties
provided therein.
1.8 The Commission shall have the power,
under such regulations as it may prescribe to
authorize and enforce the settlement of
accounts subsisting between agencies of the
gov’t ( Sec. 34, PD 1445)
1.9 When the interest of the gov’t so requires,
the Commission may compromise or release,
in whole or in part, any settled claim or liability
to DepEd not exceeding 10, 000 pesos arising
of any matter or case before it or within
jurisdiction.
1.10 The Constitution specifically authorizes an
aggrieved party to appeal a decision, order or
ruling of the Commission by certiori, directly to
the Supreme Court within 30 days from receipt
of the Commission’s final ruling on the case.
When the decision, order or ruling adveresely
affects the interest of DepEd, the appeal may
be made by the Department Secretary (Sec.
50. PD 1445)
Section 2. Receipts in General
2.1 Receipts-all cash inflow whether
actual or constructive regardless of
source of source or purpose and whether
pertaining to the agency. Includes trust
fund receipts, fund deposits, interfund
and inter-agency, transfers and equity
contributions received by corporate
agencies(COA Memo 84-411, supra)
2.1.1. Revenue/Income- covers tax and
nontax items such as those earned or
realized from regular operations and
services rendered, gov’t business or
proprietory operations, sales of assets
and grant/aids, whether actually
collected in cash or accrued, resulting in
additions to or increases in the net asset
of an entity ( COA Memo84 411, July
26, 1984
2.1.2 Gov’t funds include public money of
every sort and other resources pertaining to
any agency of the gov’t( Sec 3(2), PD 1445.
2.1.3 Revenue funds comprises all funds
derived from the income any agency of the
gov’t.
2.1.4 Trust Funds funds w/c have come
officially into the possession of any agency of
the gov’t.
2.1.5. Depository Funds funds over w/c the
officer accountable therefor may retain control
for the lawful purposes for w/c they
come into possession.
Section 3 Acknowledgement of
Collection
3.1 No Payment No Official receipt
3.2 Mechanical devices are used to
acknowledge cash receipts, COA may
approved, upon request exemption from the
use of accountable forms
3.3 O.R. designed to cover a particular kind or
collection only
3.4 Pre-numbered O. R. shall be issued
in strict number sequence.
3.4.1 In preparing O.R. , all copies of
each receipt shall be exact copies of
carbon reproduction in all respects to
original.
2.4.2 If payment has been tendered in
money order or check, the OR shall be
prepared with date, number, and the
amount of such money order, or check
together with the purpose for w/c the
payment has been received. The
address of the payor shall be indicated
on the OR to facilitate communication
with him if necessary.
Thank you