Heads of government agencies should start to familiarize themselves with the following aspects of CoA Circular 2009-002, dated 18 May 2009, the system of pre-audit that is being recommended by retired and senior state auditors for adoption by the administration of Commission on Audit chairperson Gamaliel A. Cordoba.
Whether or not, CoA will adopt the above-mentioned circular, the following aspects shall be similar in whatever pre-audit system will be adopted by the present CoA leadership:
- Responsibility to Conduct Pre-Audit
Pre-audit shall, in addition to the existing duties and functions, be the responsibility of the head of the auditing unit/audit team. In an auditing unit where a Supervising Auditor and Audit Team Leader(s) or ATLs are assigned, the pre-audit functions shall be discharged by the SA. Pre-audit functions in all other auditing units headed by ATLs, whether or not placed under the supervision of SAs, shall be carried out by such ATLs.
In case of the absence of the person duly authorized to perform a pre-audit for one to five working days, he shall designate an officer-in-charge who shall temporarily perform the pre-audit functions. A copy of such designation shall be furnished to the Cluster Director or Regional Director concerned for information and record. Where the SA or ATL, as the case may be, is absent for more than five working days but not more than 30 working days, the designation shall be done by the Cluster Director or Regional Director, and over 30 working days, by the Chairman.
- Duties and Responsibilities of Agency Official
Agency officials concerned shall ensure that no transactions covered by this circular are paid out without evidence of the audit action of the SA/ATL as required herein:
- Submit to the SA/ATL concerned all disbursement vouchers/documents for claims subject to pre-audit;
- Submit to the SA/ATL the advice/instructions including, among others, Memorandum of Agreements or MoAs and Memorandum of Understandings or MoUs and their supporting documents for transfers of funds subject to pre-audit;
- See that cash advances granted are liquidated within the prescribed period and liquidation submitted to the SA/ATL concerned within 10 days from the date the liquidation document is received from the accountable officer;
- Maintain complete and up-to-date subsidiary records of cash advances for each accountable officer to record the cash advances granted and liquidated.
- Submit to the SA/ATL concerned copies of contracts, purchase/letter orders, loan agreements, bond flotation/certificates of indebtedness, whether domestic or foreign, and appraisal reports of property for disposal, including all supporting documents required in CoA Circular No. 2009-001 dated 12 February 2009 and its annexes, for review within five days from their perfection;
- Ensure that the disbursement vouchers are duly supported with the requisite documents for each specific claim and accompanied by a duly accomplished relevant checklist for technical review as provided in CoA Circular No. 2009-001 dated 12 February 2009, as well as the requirements enumerated in CoA Circular 2007-001 (for releases to NGOs/POs) and its subsequent amendments, if any. If the supporting documents have been previously furnished to the auditor pursuant to what is indicated in the accompanying document checklist. Any deficiency in the supporting documents shall cause the return of the documents without action, within 24 hours, for completion or rectification of the deficiency;
- See that no splitting of requisitions, purchase orders, vouchers, and the like is resorted to circumventing the control measures provided in these circulars and other laws and regulations. For this purpose, a project funded under a single obligating authority and implemented in several phases whether by the same or different contractors shall be deemed a splitting of contracts; and
- Maintain a separate record/logbook of all transactions subject to and submitted to the SA/ATL for pre-audit.