LEGAL

MATTERS
Atty. LUISITA A. CATALON
OIC- Legal Services

Disposition of
Complaints/Requests
1. Conduct of Audit
2. Request for a copy of the audit
report
3. Subpoena duces tecum

OMB Requests- Conduct of

Audit
1. Audit forward the request to FAO
pursuant to COA Memo dated
August 10, 2011

OMB Requests- Audit

Reports

Audit report determine what reportannual audit report or an audit report

on a particular transactions stream
Annual audit reportsoffice files copies
agency file copies
Web site
ATFS files

OMB Requests- Audit

Reports
If there were NS or NDs issued on the
matter being complained
of/requested, the same maybe
submitted. Copies of AOMs may also
be submitted.
If there are adverse findings, the
Auditor can now prepare the affidavit
and the cert. of non forum shopping..

OMB Requests- Audit

Reports
If there are no adverse findings, the
Auditor need not make any affidavit.

OMB Requests Audit

Reports
If there is no AOM, NS, ND or audit
report, verify if there are documents
attached to the basic complaint, in
which case the ATL may proceed to
verify
the
existence
of
the
documents.
Review if the transaction has been
audited or passed in audit.

OMB Requests-Audit
Reports
If the transaction has been audited,
determine the action of the Auditor
If not yet audited, proceed to review
the transaction and issue the
corresponding AOM, NS, ND as the
case maybe.

OMB RequestsSubpoena Duces Tecum

LS usually fax the copy of the Subpoena
to facilitate action by the ATL
Simultaneously, we prepare the covering
Memo requesting compliance with the
sub poena direct to the requesting party,
copy furnished the Regional Director.
In
the
absence
of the required
documents, a certification to that effect
is made by the ATL under oath.
No need to explain

Requests for Audit from Other

Parties
Requests for audit from all other
parties
should
likewise
be
forwarded immediately and directly
to FAO based on the Memorandum
of the Chairperson dated August 10,
2011

Contents of the Report to FAO

based on August 10, 2011
memo

Brief statement of the transaction

complained of
Previous audit action in the course of
regular audit, and audit findings and
recommendation
Status of implementation of the audit
recommendation

Contents of the Report to FAO

based on August 10, 2011
memo

Other information necessary in order for

FAO to form a conclusion on the proper
disposition of the referral
Comments and recommendation on the
disposition of the request for fraud audit
Authenticated copies of the AOM, NS,
ND, pertinent portions of the AAR and
other documents to support the above
info

APPEALS - EDSE
EDSE prepared in accordance with
COA Memo No. 94-024 dated April
13, 1994
A suggested format is provided by LS
upon request

APPEALS EDSE - Format

1. Subject
2. Brief Description of the Facts
3. Description of Documents and
Events
(Date_Particulars/Description of
Documents_Annex) in table format
4. Significant Finding
5. Recommendation

APPEALS EDSE - Inclusions

Copy/excerpts of the law, rules or
regulations cited in the ND and answer
particularly if it is peculiar to the
agency
For procurement transactions, the
results of the auditorial and legal
review should be included.
Attached the transaction documents
from inception to payment

APPEALS EDSE - Inclusions

In case AOMs were issued prior to
issuance of NS or ND, include the
comments of management and the
auditors rejoinder
Refrain from issuing several NS for
one particular transaction. Audit
Queries maybe issued instead.

Appeal Memorandum
Notice of Appeal is not sufficient
The appeal maybe in any form as long
as it contains the reasons/arguments
why the disallowance should be lifted
Management should be reminded to
furnish the ATL with a copy of the
Appeal Memorandum pursuant to the
RRPC

Appeal and Other Fees

Appeal fees are computed based on
COA Resolution No. 2008-05 dated
Feb 15, 2008 on the following:
Appeals from NDs, NCs
Appeal from relief from accountability
Money claims except if claimant is
government
Requests for condonation

Other Fees
Cost of Reproduction should be in
accordance with Res. No. 2010-012 dated
Dec 15, 2010 which is P5 per page
Annual Audit Reports is at P20 per AAR in
electronic form. If hard copies it costs P5
per page following the above Resolution
ATL/SA may receive payment in PMO
based on Memorandum dated August 9,
2012 of the Chairperson.

Exceptions to Fees
Request for documents of
government oversight bodies are
exempt from the payment of
reproduction fees based on item 2 of
COA Res. No. 2010-012 dated Dec
15, 2010

Request for release of

documents/information
If request is filed with the ATL/SA, it
must be responded to immediately
with due consideration on the
limitations of COA Memo 87-22E
dated August 24, 1987
Release of documents/information to
the media is governed by COA
Resolution 2008-010 dated Oct. 10,
2008

Request for release of

documents/information
If the request has to be forwarded to
the Office of the Regional Director, in
the transmittal there must be a
categorical statement that the ATL
has determined that the release does
not violate any of the prohibitions in
COA Memo 87-22E dated August 24,
1987 and the comments of the SA

Notice of Finality of
Decisions
The
ATL
should
issue
the
corresponding NFD as soon as the ND
has become final
The ND becomes final after the lapse
of six months from date of receipt of
ND and no appeal or motion for
reconsideration is taken by the
aggrieved party

Notice of Finality of
Decisions
The Legal Services has received a
few copies of NFDs in 2012 because
the Office of the Regional Director
sent a request for an inventory of
NDs which have become final.

COA Order of Execution

Before a COA Order of Execution is
issued by the RD, submit certified
copies of the NFD, subsidiary ledger
that the accounts receivable has
been booked up and a certification
from the ATL that there is no
settlement of the disallowance or
charge

COMMENTS
It is suggested that the ATL comment on the
results of the review of the transaction not
on the culpability of the accountable officer
or the person in charge of the transaction
or the complaint i.e.
the complaint
should be dismissed because no iota of
evidence was obtained by the Auditor
regarding the complaint..
The complaint should be dismissed
because the complainant is already
dead or no longer interested..

CASH EXAM REPORTS

First observation should refer to a
shortage, an overage or none at all
Demand made by the examining
Auditors
Reply to the demand
If you wanted to help the accountable
officer, mention the amount restituted
Recommend for the filing of appropriate
charges if evidence warrants

Affidavits in Cash
Examination
Executed by the examining auditor and
other team members
Format provided in the cash examination
manual maybe adopted
In case a reply is required, answer any
new issues raised in the counter-affidavit
If a position paper is required,
assistance maybe provided by the
respective SAs

Audit of Disbursements
Whether the audit resulted in an
exception with the issuance of an
AOM, NS or ND or the transaction
was allowed in audit.
In case of exception..cite the law,
rules, regulations violated
In case it is allowed, cite compliance
with the rules

Audit of Collections
Reference maybe made to the
assessments/bill
In the event of an exception, a Notice
of Charge is issued and not a Notice
of Disallowance

COMMENTS-Contracts
Review

Submission of the copies of contracts

is not lifted with the lifting of pre-audit,
hence, comment on the compliance
Cite the results of the legal and
auditorial review of the ATL based on
the contracts submitted for review
The contract maybe valid or defective
depending on the compliance with
applicable law or regulations

COMMENTS-Contracts
Review

In addition to the legal and auditorial

review, the results of the review by
the TechIts should also be cited
The Auditor may also comment
whether he conforms or disagrees
with the findings of the TechIts
Refrain from recommending that the
documents be reviewed by LS,
instead use the procurement audit
guide review checklist

COMMENTS-Money Claim
Comment whether the claim maybe
given due course depending on the
validity, adequacy, legality and
completeness of the supporting
documents attached to the claim.
Comment whether the claim has not
prescribed

Request for concurrence

hiring of legal retainer

Refrain from recommending that the

documents be referred to legal for review
Instead, comment on the compliance with
the documentary requirements (COA Cir.
86-255 dated April 2, 1986, 95-011 dated
Dec 4, 1995 & 98-002 dated June 9, 1998)
Refer to Polloso v Gangan G.R 140563
dated July 14, 2000

Request for concurrence

Prohibited contract stipulations are
not incorporated in the contract for
legal retainer (refer to memo of Dir.
Shiela U. Villa dated January 22, 2010)
Collection of attorneys fees from districts clients
Collection of attorneys fees for unpaid accounts
referred to attorney for collection
Grant of gasoline, transportation, board & lodging
Provision of a success fee/bonus for cases won in
court

Petition for relief from

accountability
Filing of notice within 30 days
Evaluate and comment on the accountable
officers compliance with the documentary
requirements under COA Memo 92-751
dated February 24, 1992
Evaluate and comment whether there was
contributory negligence on the part of the
accountable officer

Petition for relief from

accountability
In case of Monetary accountability, a
cash examination should be
conducted and the report should be
submitted together with the affidavit
of the examining auditors
In case of loss of accountable forms
specially those with money value,
proof of notice of loss is another
requirement pursuant to COA Cir 84233 dated August 21, 1984

Petition for relief from

accountability
ATL not exceeding P100,000
RD- exceeding P100,000.00 but not
more than P500,000.00
CP exceeds P500,000.00 to be filed
with COM SEC

Disposal of Real Properties

References
COA Cir 89-296 dated January 27, 1989
COA Cir 86-264 dated October 16, 1986
COA Memo 88-569 dated August 12, 1988
(Guidelines for appraisal of unserviceable
property)
COA Cir 92-386 dated October 20, 1992

Disposal of Real Properties

Section 79, PD 1445
Section 380, RA 7160
Notes:
General Rule in divestment:
Public bidding
Approval of the Commission is
required in case of private
sale

RELEASE OF DOCUMENTSMedia
Forward the request to COA Central
Office based on COA Res. No. 2008010 dated October 10, 2008

RELEASE OF DOCUMENTSOthers
If request is addressed to the ATL
REPLY if the request does not comply
with
COA Memo 87-22E
i.e. not
specific
REPLY the documents maybe obtained
elsewhere other than from the ATL
REPLY the release violates any of the
provisions of COA Memo 87-22E

RELEASE OF DOCUMENTSOthers
FORWARD to the Regional Office
when the release does not violate
any of the provisions of COA Memo
87-22E
The ATL recommends to release the
documents
The
SA
concurs
with
the
recommendation of the ATL

RELEASE OF DOCUMENTSOthers
RELEASE of Documents is
Without objection
Subject to
condition that the
document will be used solely for the
purpose indicated in the request
Payment of the cost of reproduction

REPORTS - FORMAT
REQUIRED by FAO
This refers to requests for audit which
were forwarded to FAO and later
returned to the Regional Office for
conduct
of
audit
and
report
preparation, the report should contain
all the information required in Item
No. 5 of COA Memo dated August 10,
2011 of the Chairperson.

REPORT FORMAT - FAIO

The report should be in three (3)
copies with all supporting documents
duly authenticated to be distributed
as follows: FAO, OMB in case
requested and LS

REPORT FORMAT - FAO

Brief statement of the transaction
complained of
Previous audit action on said
transactions in the course of regular
audit and audit findings and
recommendation
Status of implementation of the audit
recommendation

REPORT FORMAT - FAO

Other information deemed necessary in
order for the FAIO to form a conclusion
on the proper disposition of the referral
Comments & recommendation on the
disposition of the request for fraud audit
Copies of AOM, ND, pertinent portion of
the AAR or other reports shall be
submitted to support the above
information

REPORT FORMAT - FAO

Authentication
by
authorized
officials/employees of all supporting
documents
Index tabs to facilitate crossreferencing of information in the
report against source documents
Review was conducted on the report
and the same should be categorically
stated in the transmittal letter

REPORT FORMAT COM

MENDOZA
Suggested to adopt the format in
Annex A of COA Memo 93-813 dated
July 9, 1993.

REPORT COM MENDOZA

Suggestions
It is suggested that the ATL
determine if there is a similar or the
same complaint has been referred
from other sources in which case, the
ATL may opt to consolidate all the
issues raised in the complaint before
the audit is conducted or before
verification of the transactions.

REPORT COM MENDOZA

If it involves prior years transactions,
determine if it has already been audited in
which case reference maybe made to the
AAR for the period, files of NS, ND, etc.
In case it has not been audited yet,
proceed to conduct the audit or
verification, etc.
Secure the documents because of the
possibility that a subpoena duces tecum
maybe issued later

REPORT COM MENDOZA

In the event of a reshuffling, retain
copy for yourself and turnover
another copy to the incoming
Auditor because of the possibility of a
subpoena being issued on the
matter.

THANK YOU

Happy
114th
Anniversary
to everyone