COA Circ 2009-001 Restatement With Amendment To 87-278 Re Submission of Copy of Contracts, POs and Supporting Documents To COA

No.
: 2009-001
Date: February 12, 2009
CIRCULAR
T O : All Heads of Departments, Bureaus, Offices, Agencies and

Instrumentalities of the National Government, Heads of Local
Government Units, Managing Heads of Government-Owned
and/or Controlled Corporations and their Subsidiaries, COA
Assistant Commissioners, COA Directors, COA Auditors,
Technical Audit Specialists, and All Others Concerned.
SUBJECT: Restatement with amendment of COA Circular 87-278 and

COA Memorandum 2005-027 re: submission of copy of
government contracts, purchase orders and their supporting
documents to the Commission on Audit
1.0 RATIONALE
1.1 Under Commission on Audit Circular Nos. 76-34 and 87-278, the audited
agencies are required to furnish the Auditor with a copy of perfected
contracts and purchase orders within five (5) working days upon approval
together with the supporting documents for review. To facilitate the review
and evaluation process, particularly on the technical aspects, COA
Memorandum No. 91-704 was issued and was later restated and updated by
COA Memorandum No. 2005-027, defining the documentary and
information requirements, and providing therein the checklists for all types
of technical evaluation covered by the memorandum.
1.2 These issuances notwithstanding, it has been observed that management's

submission of copies of perfected contracts and supporting documents
within the prescribed period had not been complied with and is, at times,
lacking in basic supporting documents. In view of these circumstances and
the irregularities discovered in government contracts, it has become
imperative to reiterate the submission of the requirements to implement a
systematic and effective review process with a view of generating timely
and relevant audit results.
2.0 COVERAGE
2.1 This circular shall cover all contracts, purchase orders and the like, entered
into by any government agency irrespective of amount involved.
3.0 SUBMISSION AND REVIEW PROCESS
3.1 Contracts
3.1.1 Within five (5) working days from the execution of a contract by the
government or any of its subdivisions, agencies or instrumentalities,
including government-owned and controlled corporations and their
subsidiaries, a copy of said contract and each of all the documents
forming part thereof by reference or incorporation shall be furnished
to the Auditor of the agency concerned. In case of agencies audited
on an engagement basis, submission of a copy of the contract and its
supporting documents shall be to the Auditor of the mother agency
or parent company, as the case may be.
3.1.2. The copies of documents required to be submitted shall include but

not limited to the following:
a. Invitation to Apply for Eligibility and to Bid;

b. Letter of Intent;
c. Eligibility Documents and Eligibility Data Sheet;
d. Eligibility Requirements;
e. Results of Eligibility Check/Screening;
f. Bidding Documents (Sec. 17.1, IRR-A, RA 9184);
g. Minutes of Pre-bid Conference, if applicable;
h. Agenda and/or Supplemental Bid Bulletins, if any;
i. Bidders Technical and Financial Proposals;
j. Minutes of Bid Opening;
k. Abstract of Bids;
1. Post Qualification Report of Technical Working Group;
m. BAC Resolution declaring winning bidder;
n. Notice of Post Qualification;
o. BAC Resolution recommending approval;
p. Notice of Award;
q. Contract Agreement;
r. Performance Security;
s. Program of Work and Detailed Estimates;
t. Certificate of Availability of Funds, Obligation Request;
u. Notice to Proceed
v. Such other documents peculiar to the contract and/or to the
mode of procurement and considered necessary in the
auditorial review and in the technical evaluation thereof.
2
3.1.3 For technical review purposes, submission of contracts and their
supporting documents shall furthermore be guided by the specific
documentary requirements outlined in the attached checklist marked
as Annexes “A” to “T” of this circular.
3.1.4 The Auditor shall review the contract within a period ranging from
five (5) to twenty (20) working days from receipt, depending on the
complexity of the contract. The auditorial review shall consist in the
evaluation of compliance with the requirements of applicable laws,
rules and regulations, completeness of documentary requirements
and an initial evaluation that the contractual covenants are not
disadvantageous to the government. Without waiting for the lapse of
the period herein established, the Auditor concerned shall call the
immediate attention of management regarding defects and
deficiencies noted in the contract and suggest such corrective
measures as are appropriate and warranted. Where the defect or
deficiency is not susceptible of rectification and renders the contract
totally or partially void, the head of the agency shall be notified
within twenty-four (24) hours from such determination indicating the
reasons therein.
3.1.5 Within five (5) working days after the auditorial review, the Auditor
shall forward th`e contract and its supporting documents for
technical review to the Technical Audit Specialist (TAS) assigned in
the auditing unit/cluster or to the Regional Technical Services Office
(RTSO), as the case may be, accompanied by the relevant checklist
of documentary requirements mentioned in item 3.1.3 hereof
3.1.6 The TAS shall complete the technical review thereof as follows:
Contract Amount Period
P5 million and below 5 working days
Above P5 million up to P20 million 14 working days
Above P20 million 21 working days
3.1.7 The procedures and timelines herein outlined shall also apply to
supplementary contracts, variation orders and the like.
3.2 Purchase Orders
3.2.1 A copy of any purchase order irrespective of amount, and each and
every supporting document, shall, within five (5) working days from
issuance thereof, be submitted to the Auditor concerned. Within the
same period, the Auditor shall review and point out to management
defects and/or deficiencies, if any, in the same manner provided in
the second and third sentences of item 3.1.4 hereof
3
3.2.2 In case of doubt as to the reasonableness of the price of the items
purchased, the Auditor shall conduct a canvass thereof making use
of price references provided, among others, by legitimate suppliers,
the Procurement Service, the Technical Services Office, other
government agencies with similar procurement and those posted in
the internet.
4.0 PENALTY CLAUSE
4.1 Any unjustified failure of the officials and employees concerned to comply
with the requirements herein imposed shall be subject to the administrative
disciplinary action provided in (a) Section 127 of Presidential Decree No.
1445; (b) Section 55, Title I-B, Book V of the Revised Administrative Code
of 1987; and (c) Section 11 of Republic Act No. 6713.
4.2 Upon receipt of information or discovery by the auditor of such failure by

management to comply with the required submission, an Audit Observation
Memorandum shall be issued by him calling the attention of the latter, and
requesting compliance, else the transactions covered by the unsubmitted
documents be suspended in audit and the penalty prescribed by law under 4.1
be enforced.
5.0 REPEALING CLAUSE
All COA circulars and memoranda inconsistent herewith are hereby revoked,
amended or modified accordingly.
6.0 EFFECTIVITY
This circular shall take effect 15 days after its publication in two (2) newspapers
of general circulation in the Philippines.

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No.

T O : All Heads of Departments, Bureaus, Offices, Agencies and

SUBJECT: Restatement with amendment of COA Circular 87-278 and

1.2 These issuances notwithstanding, it has been observed that management's

3.0 SUBMISSION AND REVIEW PROCESS

3.1.2. The copies of documents required to be submitted shall include but

a. Invitation to Apply for Eligibility and to Bid;

P5 million and below 5 working days

Above P5 million up to P20 million 14 working days

Above P20 million 21 working days

3.2 Purchase Orders

4.0 PENALTY CLAUSE

4.2 Upon receipt of information or discovery by the auditor of such failure by

5.0 REPEALING CLAUSE

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