2009 Revised Rules of Coa-dir Boado

2009 REVISED RULES OF PROCEDURE

SALIENT FEATURES

1. No MFR at all levels except in CP2. New level of appeal - the ASB3. Auditor’s Order is now COA Order of

Execution (COE)4. Notice of Finality of Decision (NFD) is

issued to support the COE

SALIENT FEATURES

5. Auditor authorized to act on request for relief - not over P100,000

6. Period to decide appeals shortened except for those in the CP.

7. Filing fee is jurisdictional.

Revised Rules on

Settlement of Accounts

RRSA – Salient Features

1. Covers all audited accounts pertaining to revenues and receipts

2. Does not cover settlement of property accounts

3. Appeals are to Director, to ASB, to CP, to Supreme Court. For ND/NC/NS of SAT, to FAIO Director, to ASB, CP, SC.

RRSA – Salient Features

4. AOMs no longer required for transactions with possible pecuniary loss

5. NSs should not be issued to require submission of supporting documents

JURISDICTION

Jurisdiction - AUDITOR

Original and exclusivea. Audit of all transactions of the agencyb. Requests for relief from accountability not

exceeding P100,000 for all causes

No appellate or shared jurisdiction

Jurisdiction - DIRECTOR

Original and exclusiveRequests for relief from accountability

a. fortuitous event/natural calamity – over P100,000 (no maximum)

b. acts of man – over P100,000 but not more than P500,000

Appellate From any and all decisions of auditor

Jurisdiction - ASB

Original and exclusive1. Write off of UCA and DAR P1 M or lower2. Request for relief from accountability

> FE/NC – none: Director’s jurisdiction no maximum limit

> Acts of man – over P500,000 but not overP5 Million

Jurisdiction - ASB

Appellate1. Decision of Director for ND/NC P 1 M

or lower2. Decision of Director for request for

relief from accountability

Jurisdiction - CP

Original and exclusive1. Money claims2. Concurrence in hiring of private lawyers*3. Approval of sale of government property4. Write off of UCA over P 1 Million5. Request for relief from accountability

> acts of man – over P 5 Million

Jurisdiction - CP

Appellate1. Decision of ASB2. Decision of Director for ND/NC over P 1

Million3. Decision of Gen. Counsel denying

concurrence for hiring of private counsel*

Summary of Original Jurisdiction over Relief from Accountability

1. Auditor - all causes not over P100,0002. Director

• Acts of man – over P100,000 to P500,000

• FE/NC – over P100,000 (no limit)3. ASB - Acts of man – over P500,000 to P5 M4. CP – acts of man over P5 M

Interlocutory Orders

1. AOM – not a decision because it does not finally dispose of an issue

- For observations relating to financial/ operational deficiencies which do not involve pecuniary loss or

- To require submission of documents or other information to enable auditor to form opinion or decision

Interlocutory Orders

1. AOM – - addressed to agency head and officers

concerned - Signed by both ATL and SA

- Reply must be within 15 CD from receipt - Deemed accepted if no reply and included in

ML or audit report.

Interlocutory Orders

1. AOM – - If required documents/information not

submitted, may result to NS/ND/NC - ATL should inform management of result of

evaluation of reply in writing

Interlocutory Orders

2. NS – interlocutory because not final, not appealable

For transactions of doubtful validity or propriety which may result in pecuniary loss

To be signed by both ATL and SA Addressed to agency head and accountant

and served on persons liable

Interlocutory Orders

2. NS – interlocutory because not final, not appealable

State the amount suspended, the reason therefor and the justification/explanation required to settle it

Should be settled within 90 calendar days from receipt.

Interlocutory Orders

2. NS – NC/ND should be issued if not justified or not

settled Maturity not automatic; ND/NC must be

issued for purposes of reckoning 6-month appeal period

Adjudicatory Notices

1. ND – Outright for IUUEE transactions To be signed by both ATL and

SA Addressed to agency head and

accountant and served on persons liable

Adjudicatory Notices

1. ND – State the amount disallowed, the

reason therefor, the laws/rules/regulations violated, and the persons liable

Settled or appealed within 6 months

Adjudicatory Notices

2. NC – For unbilled/uncollected amount due to

underassessment To be signed by both ATL and SA Addressed to agency head and

accountant and served on persons liable

Adjudicatory Notices

2. NC – State the amount charged, reason

therefor, the laws/rules/regulations violated, and the persons liable

Settled or appealed within 6 months

Other Notices

1. NFD – written notification that a decision of COA or auditor is final and executory

2. NSSDC – written notification that an NS/ND/NC has been settled

3. COE – written instruction to withhold payment of salary and other moneys due to persons liable (if person liable does not settle)

Other Notices

4. SASDC – summary of the total balance of the audited accounts at the end of each quarter. Shows total issued NS/ND/NC and settlements for the Q and the running balance of the S/D/C as of the Q ended.

Service of Notices

- Personal service to the persons liable by delivering personally or leaving in his office with clerk or person having charge thereof

- By registered mail to his office or residence with instruction to Post master to RTS within 10 days if undelivered

Service of Notices

- By ordinary mail if no available registry service

- In case of numerous persons liable, to accountant who shall notify the persons liable (constructive service)

- If no office or office not known, in his residence to a person of sufficient age and discretion

Service of Notices

Distribution of copy: a. Original – to the head of agency b. Duplicate – to the Auditor for his record c. Other copies – agency officials directly

affected and from whom specified action or response is expected

Persons Liable

Nature of liability Solidary or joint and several – government

may go after any one for the whole amount with right of subrogation for the paying one

Joint – government should go after each for the proportionate share

Persons Liable

For ND those who certified as to the necessity, legality

and availability of funds or adequacy of documents

Public officers and other persons who conspired in a transaction disadvantageous or prejudicial solidarily with beneficiaries thereof

Persons Liable For ND

Payee where the ground for disallowance is failure to submit documents and the auditor is convinced that the transaction did not occur or has no basis in fact

Those who approved the payment like board or governing body (no refund doctrine not available)

For NC Measured by the individual participation and

involvement of officers whose duties require appraisal/assessment/collection

Persons Liable

For loss of government funds Custodian who failed to ensure that funds are

safeguarded against loss or damage, or expended, utilized, disposed of or transferred in accordance with law or regulations, and on the basis of prescribed documents and necessary records

Principles on Liability

Public officer not civilly liable for acts done in the performance of his official duties, unless there is a clear showing of bad faith, malice or gross negligence.

Superior officer not civilly liable for wrongful acts, omissions of duty, negligence, or misfeasance of his subordinates unless he actually authorized by written order the specific act or misconduct complained of. (Arias doctrine)

Principles on Liability

– Subordinate not civilly liable for acts done by him in good faith in the performance of his duties.

- He shall be liable for willful or negligent acts done by him which are contrary to laws, morals, public policy and good customs even if he acted under the orders or instructions of his superiors.

Principles on Liability

General Liability for Unlawful Expenditures. - Expenditures of government funds or uses of government property in violation of law or regulation shall be a personal liability of the official or employee found to be directly responsible therefor. (Sec.106, P.D. 1445)

Principles on Liability No AO shall be relieved from liability by reason of his having

acted under the direction of a superior in paying out, applying or disposing of funds or property with which he is chargeable, unless prior to that act, he notified his superior in writing of the illegality of the payment, application, or disposition.

The officer directing illegal payment or disposition of funds or property primarily liable for the loss, while the AO who fails to serve the required notice shall be secondarily liable

Principles on Liability

Other officers who though not accountable by the nature of their duties, may be similarly held accountable or responsible for government funds through participation in use or application thereof (Leycano vs. COA, 2/10/06)

Principles on Liability

Sec. 104. The head of any agency or instrumentality … shall exercise the diligence of a GFF in supervising AOs under his control to prevent the incurrence of loss of government funds or property, otherwise he shall be jointly and solidarily liable with the person primarily accountable therefor.

Auditor’s responsibilities

1. Obtain Sufficient Evidence - to provide factual basis for his opinion, conclusion, judgment and recommendation

2. Safeguard evidence The technicalities of law and the rules

governing admissibility and sufficiency of evidence in the courts of law shall not strictly apply.

Auditor’s responsibilities

Kinds of evidence to gather: Physical – the thing itself or sample thereof; Documentary – letters, contracts, reports,

photographs, extracts from books of accounts, invoices, receipts, and computer print-outs;

Auditor’s responsibilities

Testimonial – sworn statements, depositions, signed interview notes;

analytical – analysis sheets/working papers; electronic – e-mail, text or MMS

Auditor’s responsibilities

3. Grant or deny request for relief from accountability within his jurisdictional limit

4. Issue NSSDC when ND/NC/NS is settled5. Issue NC/ND if NS not settled6. Prepare and sign NFD for ND/NC issued7. Prepare COE for signature of his Director

Auditor’s responsibilities

8. Prepare and issue SASDC within 15 CD after end of each quarter to inform agency of total S/D/C as of the end of quarter

9. Issue updated list of outstanding S/D/C within 5 CD for retiring/ transferring officer

Auditor’s responsibilities

10.Enforce submission of records of receipt and disbursement and paid DVs, Ors, reports and supporting documents

11. Monitor enforcement of COE and report to Director action taken by Agency

12. Report in the AAR total unsettled S/D/C as reflected in the last quarter SASDC

Appeals Procedure Filing fee paid first before appeal is entertained Filing fee required for every appeal in all levels Amount -1/10 of 1% but not over P10,000 for

a. Appeal from ND/NCb. Appeal from disapproval of request for relief from accountabilityc. Money claim except if claimant is government agencyd. request for condonation of settled claim or liability except between government agencies

Appeals ProcedureA. Auditor to Director

1. Aggrieved files Appeal Memorandum to Director concerned within 6 months from receipt of decision2. Within 5 CD from receipt of AM, the Director orders auditor to file Answer, cc: Appellant 3. Auditor files Answer within 15 CD and submits entire records numbered at the bottom of each page and with EDSE. Appellant may file Reply within 15 CD

Appeals Procedure

4. Director decides within 15 CD from receipt of complete documents

5. Power of Director on appeal: affirm, reverse, modify, alter (ARMA) auditor’s decision

RMA, automatic review direct to CP Decision must state “this decision is not

final and is subject to review by the CP” Affirm, ND/NC sustained; aggrieved may or

may not appeal 6. No MFR. He shall advise movant to appeal to the

ASB/CP. No filing fee necessary.

Appeals Procedure

Director to ASB1. Aggrieved files AM for ND/NC not more than P1 Million within remainder of 6-month period2. Upon receipt of AM, the ASB orders Director to file Answer, cc: Appellant 3. Director files Answer within 15 CD and submits entire records of case numbered at the bottom of each page and with EDSE.

Appellant may answer within 15 CD

Appeals Procedure

Director to ASB4. ASB decides within 15 CD from receipt of complete documents needed for evaluation and decision5. ASB may ARMA the Director’s decision. No automatic review.6. No MFR.

Appeals Procedure

Director/ASB to CP1. Aggrieved files AM for ASB decision, or for Director’s decision for ND/NC more than P1 M, within remainder of 6 months 2. CP decides within 60 CD from date of its submission for decision/resolution3. Period is counted from time last comment needed for proper decision is received

Appeals Procedure

Director/ASB to CP4. Only one MFR entertained based on new and material evidence or that the evidence is insufficient to justify decision, or the said decision is contrary to law5. MFR must be filed within remainder of 6-month period

APPEALS PERIOD

The actual appeal period is much longer than the statutory appeal period of 6 months

The 6-month period is from receipt of ND/NC all the way to the CP. The 6-month period shall be interrupted when

appeal is filed. The number of days the paper is with appellant is deducted from that period.

APPEALS PERIOD

The CP should render a decision within 60 CD from the time the case is submitted for resolution. (last pleading of all the parties have been submitted)

Party cannot go directly to court from the auditor or to other courts than Supreme Court

APPEALS PERIOD Rule: when record is with COA, period stops to run;

running resumes when decision is received by the appellant

1 month = 30 days 6 months x 30 = 180 days

ENFORCEMENT OF ND/NC

1. Disallowance/charge must be final and executory

no appeal filed before the Director/ASB/CP no MFR filed with the CP, no petition filed with Supreme Court

ENFORCEMENT OF ND/NC

2. NFD issued to agency head attn accountant by> ATL/SA for their ND/NC > Director for ND/NC issued by SAT under him and for his decision > GC for decision of ASB> ComSec for decision of the CP

3. COE issued by Director/GC if persons liable refuse to refund

ENFORCEMENT OF ND/NC

3. COE • issued when those liable refuse to

refund• Not earlier than 5 days from receipt of

NFD by agency head• To the agency head attn: Treasurer/

Cashier

ENFORCEMENT OF ND/NC

3. COE • Issued by:

> Director for his or his auditor’s NFD > GC for his NFD> Comsec for SC decision

• Auditor shall monitor enforcement of COE• Unsettled COE referred to GC who may

refer it to OSG/OMB

ENFORCEMENT OF ND/NC

3. Non compliance with COE • Auditor should notify agency head of non-

compliance• Auditor also notifies GC thru his Director• GC shall take any or all of:

> Recommend to CP to cite for contempt the defaulting party> Refer to Solgen for filing of civil suit> Refer to OMB for admin or criminal suit

Record of COA Decisions

Auditor shall maintain ROCD showing > ND/NC issued to agency, > appeals taken thereon>decision on the appeal> NFD/COE > NSSDC

OPENING SETTLED ACCOUNTS

When - within 3 years after the settlement of any account:

By the CP motu proprio By the auditor for settled accounts of his agency

after securing an authority from the Chairman By SAT; Office Order is sufficient authorization

Grounds: for any reason, or For fraud, collusion, or error of calculation, or when new and material evidence is discovered

Value of Auditor’s WPSec. 83, PD 1445 In any criminal or civil proceeding against an

AO, it shall be sufficient, for the purpose of showing a balance against him, to produce the working papers of the auditor concerned.

It shall be prima facie evidence of the misappropriation of the funds or property unaccounted for or of civil liability of the officer as the case may be.