COA CIRCULAR NO. 82 195 October 26 1982

COMMISSION ON AUDIT CIRCULAR NO.
82- 195 October 26, 1982
TO : All Heads of Ministries; Chiefs of Bureaus and Offices of the National

Government; Managing Heads of Government-Owned and/or Controlled
Corporations, Self-Governing Boards and Agencies; Heads of Authorized
Depository Banks; the Treasures of the Philippines; Provincial Governors and
City Mayors; COA Managers/General counsel/Regional Directors and Heads of
Auditing Units; Chief Accountants/Heads of Accounting Units; and all Others
Concerned.
SUBJECT : Lifting of Pre-Audit of Government Transactions
1.0 RATIONALE
This Circular is issued in furtherance of Section 2, P. D. No. 1445 which states

that “It is the declared policy of the State that all resources of the government shall be
managed, expended or utilized in accordance with law and regulations, and safeguarded
against loss or wastage through illegal or improper disposition, with a view to ensuring
efficiency, economy and effectiveness in the operations of government. The
responsibility to take care that such policy is faithfully adhered to rests directly with the
chief or head of the government agency concerned.” It is also designed to further
facilitate or expedite government transactions without impairing their integrity
2.0 DEFINITION OF TERMS
Unless the context requires otherwise, the following terms shall be understood in
the sense indicated hereunder:
2.1 “Government Agency” refers to any ministry, bureau or office of the national
government, or any of it’s branches and instrumentalities, or any political
subdivisions, as well as any government-owned or controlled corporation,
including it subsidiaries, or other self-governing board or commission of the
government.
2.2 “Pre-Audit” is the examination of a financial transaction before payment either

through cash, warrant, check, or other instruments.
2.3 “Post-Audit” is the examination of a financial transaction after payment and the
recording thereof. It involves the tracing of the transaction to the pertinent books
of account. The scope of post-audit work embraces the three components of
comprehensive audit, namely, financial and compliance, efficiency and economy,
and program results or effectiveness.
3.0 GENERAL RULE ON PRE-AUDIT OF FINANCIAL TRANSACTIONS
As a general rule and except as may be provided herein, financial transactions of

the government shall no longer be subject to pre-audit by the Commission On Audit
(COA) The pre-audit activity lifted by the COA shall be considered hereafter as a part of
the agency’s accounting control process. Therefore, adequate internal control measures
should be instituted by all government agencies. The accounting units should be
strengthened and systems and procedures reviewed to promote speedy processing,
periodic analysis and reporting of results.
4.0 EXCEPTIONS
All pre-audit activities as mandated by existing laws shall be retained, such as,
but not limited to, the following:
4.1 Approval of withdrawals of trust deposits or other funds in government depository

banks (Appropriation and other laws).
4.2 Approval by the Provincial or City Auditor of requisitions over P 10,000.00 and
requisitions for supplies to be carried in stock, regardless of amount (Section 7,
P.D. No. 526).
4.3 Approval of time deposit of excess municipal funds by the Provincial auditor (Section
11. P.D. No. 477).
4.4 Approval of disposal of real property (Section 25, P.D. No. 526).
4.5 Witnessing the inspection, destruction or sale of unserviceable property, and

approval of price fixed by the proper committee for the private sale thereof
(Section 79, P.D. No. 1445).
4.6 Witnessing of opening of bids by the Provincial or City Auditor (Section 9, P.D. No.
526)
4.7 Verification of accountant’s certificates as to appropriation and availability of funds

(Section 86, P.D. No. 1445).
4.8 Participation by the provincial or City Auditor as member of the Local Board of
Assessment Appeals (Section 31, P.D. No. 464).
5.0 OTHER PRE-AUDIT ACTIVITIES WHICH ARE NOT PRE-REQUISITES TO PAYMENT OF

CLAIMS
The following pre-audit activities shall continue to be performed but not as a pre-
requisites to payment of claims:
5.1 Review of contracts for infrastructure and other construction projects, variation
orders (change orders, extra works, supplemental contracts) and purchase/letter
orders. All contracts/purchase/letter orders, together with their supporting
documents, shall be submitted to the COA within five (5) days after the perfection
thereof. The unjustified failure to comply with this time frame shall subject the
person (s) or unit appropriate administrative penalties as set forth in LOI No. 136.
However, concurrences by the COA on Change/Extra Work/Addenda, price

escalation, time extension/suspensions and all other changes to contracts shall
no longer be required.
5.2 Review and evaluation of consultancy contracts
5.3 Evaluation of on-going infrastructure and other construction projects, which shall
include field inspection to verify actual project accomplishment or status.
5.4 Inspection of deliveries, of inventories (food stuff, medicine, supplies, materials,

equipments and the like).
5.5 Processing and review of documents relative to the acquisition of real property by the
government for public use (Section 39, P.D. No.1445).
6.0 DUTIES AND RESPONSIBILITIES OF AGENCY OFFICIALS
6.1 The Chief or Head of the government agency concerned shall define or delineate the
duties and responsibilities of the officials involved in the different kind if financial
transactions.
The responsibility to request the issuance or clearances, notices, advices, or

reports heretofore lodged in the COA representative in connection with his pre-
audit of disbursements and countersigning of Treasury Warrants/Treasury
Checks shall henceforth be assumed by the agency personnel concerned.
6.2 The official or officials charged with the recording of the transaction in the book of
account shall turn over the disbursement reports with all paid vouchers and
documents evidencing the transaction to the Unit Auditor within ten (10) days
after such reports, vouchers, and documents have been received by such official
for recording in the books of account.
7.0 DUTIES AND RESPOSIBILITIES OF THE COA REPERESENTATIVE
7.1 The Unit Auditor shall post-audit a transaction within sixty (60) days after the
receipt of the related financial records. If the records of the transaction are not
turned over to him by the agency official or officials within the period specified in
6.2, the COA representative shall demand that the same be transmitted to him
immediately, furnishing the Chairman of this Commission, through proper
channels with a copy of such demand communication.
7.2 The Assistant Unit Head, in addition to his pre-audit responsibility, shall perform
whatever other audit work may be assigned to him by the Unit Head.
8.0 REPEALING CLAUSE
COA Circular 76-26, as amended, and all other COA circulars and memoranda,
which are inconsistent herewith are hereby repealed, amended, or modified accordingly.
9.0 EFFECTIVITY
This Circular shall take effect on December 1, 1982.
(SGD.) FRANCISCO S. TANTUCO, JR., Chairman

(SGD.) SILVESTRE D. SARMIENTO, Commissioner

COA CIRCULAR NO. 82 195 October 26 1982

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COA CIRCULAR NO. 82 195 October 26 1982

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COMMISSION ON AUDIT CIRCULAR NO.

82- 195 October 26, 1982

TO : All Heads of Ministries; Chiefs of Bureaus and Offices of the National

SUBJECT : Lifting of Pre-Audit of Government Transactions

This Circular is issued in furtherance of Section 2, P. D. No. 1445 which states

2.0 DEFINITION OF TERMS

2.2 “Pre-Audit” is the examination of a financial transaction before payment either

3.0 GENERAL RULE ON PRE-AUDIT OF FINANCIAL TRANSACTIONS

As a general rule and except as may be provided herein, financial transactions of

4.1 Approval of withdrawals of trust deposits or other funds in government depository

4.5 Witnessing the inspection, destruction or sale of unserviceable property, and

4.7 Verification of accountant’s certificates as to appropriation and availability of funds

5.0 OTHER PRE-AUDIT ACTIVITIES WHICH ARE NOT PRE-REQUISITES TO PAYMENT OF

However, concurrences by the COA on Change/Extra Work/Addenda, price

5.4 Inspection of deliveries, of inventories (food stuff, medicine, supplies, materials,

6.0 DUTIES AND RESPONSIBILITIES OF AGENCY OFFICIALS

The responsibility to request the issuance or clearances, notices, advices, or

7.0 DUTIES AND RESPOSIBILITIES OF THE COA REPERESENTATIVE

8.0 REPEALING CLAUSE

This Circular shall take effect on December 1, 1982.

(SGD.) FRANCISCO S. TANTUCO, JR., Chairman

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