PUBLIC

ACCOUNTABILITY

Armand Lyndon B. Edrada

DPA 307 – Advanced Fiscal Administration
 What is PUBLIC
ACCOUNTABILITY

 Public accountability means the

obligation to answer publicly- to
report, to an acceptable standard of
answering, for the discharge of
responsibilities that affect the public
in important ways. It is obligation to
answer for a responsibility
conferred.
 What is PUBLIC
ACCOUNTABILITY

 Public accountability is a fundamental

principle in democratic governance and a
core component of constitutional
frameworks. It involves ensuring that public
officials and institutions are answerable to the
public and that their actions are transparent
and in accordance with the law.
 Rationale for Public
Accountability

 1. Restoration of Trust: Given the

Philippines’ history of political instability and
corruption, public accountability is crucial for
rebuilding and maintaining public trust in
government institutions and officials.
 Rationale for Public
Accountability
 2. Prevention of Corruption: Effective
accountability mechanisms are essential to
deter corruption, which has historically been
a significant issue in the Philippines.
Transparent processes and oversight help to
mitigate abuses of power and
mismanagement of public resources.
 Rationale for Public
Accountability
 3. Efficient Governance: Accountability
ensures that government resources are
utilized effectively and that public services
meet the needs of citizens. It encourages
efficient and responsible administration.
 Rationale for Public
Accountability
 4. Citizen Empowerment: Ensuring that
government officials are answerable to the
public empowers citizens to actively participate
in governance and to demand better
performance from their elected representatives.
 Constitutional Mandate
 The Philippine Constitution, particularly the
1987 Constitution, provides the framework
for public accountability:
 Separation of Powers:
 Article VI (Legislative): Establishes the powers of
Congress to create laws, conduct investigations, and hold
hearings to oversee the executive branch.
 Article VII (Executive): Outlines the powers of the
President and the executive branch, with accountability
mechanisms including the requirement for the President
to provide information on matters of national interest to
Congress.
 Article VIII (Judiciary): Provides for an independent
judiciary to adjudicate on the legality of actions taken by
other branches of government and ensure they conform
to the Constitution and laws.
1987 Philippine Constitution –
Article XI Accountability of Public Officers

 Sec. 1., Public office is a public trust. Public officers

and employees must at all time be accountable to
the people, serve them with utmost responsibility,
integrity, loyalty, and efficiency, act with patriotism
and justice, and lead modest lives. “
 Any government office is a trust for it is created for
the sole purpose of effecting the end for which the
government has been instituted, which is the
common good and not for the profit, honor, or
private interest of any one man, family, or class of
men.
Cont.

 In the government budget cycle, accountability is

laid down by the need for government agencies and
departments to submit quarterly and monthly
income statements; statements of allotment,
obligations and balances along with other financial
reports and documents for audit - a formal process
whereby the authenticity, accuracy and reliability of
financial accounts or transactions are checked and
approved.
 GOVERNMENT
ACCOUNTABILITY AGENCIES

 The Philippine government has agencies

mandated to ensure accountability and
transparency on its overall operations.
These agencies are: The Office of the
Ombudsman, Sandiganbayan, the Civil
Service Commission and primarily, the
Commission on Audit.
 Office of the Ombudsman
 The Office of the Ombudsman
(Ombudsman) is mandated by the
Constitution as “protectors of the people
who shall act promptly on complaints
filed against officers or employees of the
government including members of the
Cabinet, local government units and
government-owned and controlled
corporations and enforce their
administrative, civil and criminal liability
in every case where the evidence
warrants in order to promote efficient
 Significantly, Section 13 of Republic Act
6770 or the Ombudsman Act of 1989
states it shall give priority to “high-profile
complaints to high-ranking and
supervisory officials involved with grave
offenses and large sums of money and/or
properties.”
 The Ombudsman does not only cover
officials and employees of the
government, but also private individuals
who have participated or “in conspiracy”
with them in the filed complaints.
 Sandiganbayan
 The Sandiganbayan, or the government’s
anti-graft court, is mandated by the 1973
and 1987 Constitutions. It covers criminal
and civil cases against graft and corrupt
practices and other offenses committed
by public officers and employees with
Salary Grade 27 and above, including
those in local government units and
government-owned or controlled
corporations, which are related to their
official duties as determined by law.
 Crimes and civil cases filed against public
officers below Salary Grade 27 are covered by
the Regional Trial Court but Sandiganbayan is
vested with Appellate Jurisdiction over its final
judgments, resolutions or orders. Private
individuals can also be sued before this special
court if they are alleged to be in conspiracy with
public officers.
 The Sandiganbayan is also entrusted to have
original exclusive jurisdiction over special laws
such as RA 3019 (Anti-graft and Corrupt
Practices Law), RA 1379 (Forfeiture of Illegally
Acquired Wealth), Revised Penal Code spec.
Batasang Pambansa 871.
 Civil Service Commission
 The Civil Service Commission (CSC) is the
central personnel agency of the government
and is tasked in the recruitment, building,
maintenance and retention of a highly-
competent and professional workforce.
 It is also one of the three independent
commissions established by the Constitution
with adjudicative powers to render final
disputes and personnel actions on Civil Service.
 It covers all national government agencies,
local government units and government-owned
and -controlled corporations.
 Commission on Audit

 The Commission on Audit (COA) is the

constitutional commission mandated to
be the supreme audit institution of the
government. It has jurisdiction over
national government agencies, local
government units, government-owned
and controlled corporations and non-
government organizations receiving
benefits and subsidies from the
government.
 It also enjoys fiscal autonomy which
means its appropriations must be
released regularly and automatically. The
Commission also deploys resident
auditors in all national government
agencies, local government units and
government-owned and controlled
corporations pursuant to its mandate to
review each agency’s financial operations
in a risk-based audit approach.
 PUBLIC FINANCIAL
ACCOUNTABILITY
 AUDIT
 Public financial accountability is promoted
primarily through the conduct of regular
audits. Traditional audits include legal and
compliance audit. These are generally limited
to audits that examine the legality of financial
transactions as well as compliance with
established rules, regulations, and procedures.
Performance audits look into actual outputs of
agencies in relation to programmed goals.
Concepts of performance audit have been
further developed into program results audit
and value-for-money audits.
 Report
 Reporting to oversight entities, the President,
the legislature, and the public is an important
and indispensable component of financial
accountability. In the Philippines, specific laws
require all heads of offices and agents of
government to submit reports on the status of
their accomplishments.
 R.A. No. 6713, the Code of Conduct for
Civil Servants in the Philippines, which
was issued on 20 February 1989, requires all
heads of offices and agencies of the
government and government-owned or -
controlled corporations (GOCCs) to submit
and render their annual performance
reports.
 Freedom of Information (FOI)

The Philippines has an FOI Portal where

citizens can request information from
government agencies. This portal facilitates
transparency by providing access to official
documents and records.
 E-Governance Platforms:
o PhilGEPS (Philippine Government
Electronic Procurement System): Provides
transparency in government procurement
processes by making information on
contracts and bids publicly accessible.
o Transparency Seal: A requirement
for government agencies to post essential
information on their websites, including
budgets, financial reports, and project
statuses.
 Whistleblower Protection:
o Whistleblower Act: Provides a legal
framework for the protection of individuals
who report corruption and other forms of
misconduct in government. This tool
includes provisions for confidentiality and
protection against retaliation.
 Ombudsman Complaints:
o Office of the Ombudsman: Citizens can
file complaints against public officials with
the Ombudsman, which investigates
allegations of corruption, misconduct, and
abuse of power.
 Section 62 of Presidential Decree No. 1177,
a law that has become a part of the Philippine
Administrative Code of 1997, also requires all
heads of agencies and offices of the government
to submit a semiannual report of their
accomplishments, both work and financial
results, to monitor the efficiency and
effectiveness with which budgeted funds are
being utilized.
 Individual audits of all government agencies and
instrumentalities are consolidated into three
main reports: the consolidated audit reports on
national government agencies, GOCCs, and local
government units. These audit reports are
submitted to both houses of Congress (the
House of Representatives and the Senate), as
well as to the President of the Philippines. These
 What is Disallowance?
 Disallowance refers to the formal
declaration by COA that certain
expenditures or transactions involving
public funds are illegal, unauthorized, or
not in compliance with existing laws, rules,
and regulations. When an expenditure is
disallowed, it means that the entity
responsible for the expenditure is required
to return the disallowed amount or make
other corrective actions.
 In the Philippines, the disallowance process is a
formal procedure used to address and rectify the
improper use or misuse of public funds. This
process is primarily managed by the
Commission on Audit (COA), which is tasked
with ensuring that government expenditures
 Disallowance Process

 1. Audit Examination:

 o Conducting Audits: COA conducts

regular and special audits of government
agencies and entities. During these audits,
COA examiners review financial
transactions, expenditures, and other
financial activities to ensure compliance
with laws and regulations
 2. Issuance of Notice of Disallowance
(ND):
 o Findings: If COA auditors find
irregularities or non-compliance with legal
and regulatory requirements, they issue a
Notice of Disallowance. This notice details
the nature of the disallowance, the amount
involved, and the specific laws or
regulations that were violated.
 o Notification: The Notice of
Disallowance is sent to the accountable
officer or the head of the government
agency involved, as well as to the
Department of Budget and Management
(DBM) and other relevant parties.
 3. Response and Appeal:
 o Submission of Explanation: The
accountable officer or head of the agency
has the opportunity to respond to the
Notice of Disallowance. They can provide
explanations or submit evidence to justify
the expenditures in question.
 o Review and Reconsideration: COA
reviews the response and any additional
evidence submitted. If the response is
deemed satisfactory and the expenditures
are justified, COA may reverse or modify
the disallowance. If not, the disallowance
stands.
 4. Final Decision and Implementation:
 o Final Notice of Disallowance: If COA
upholds the disallowance, a Final Notice of
Disallowance is issued. This notice
confirms the disallowed amount and the
requirement for corrective action.
 o Demand for Refund or Recovery: The
accountable officer or agency is required
to return the disallowed amount to the
National Treasury. If the responsible
official fails to comply, COA may pursue
legal actions to recover the funds.
 5. Legal Remedies:
 o Administrative Appeal: The
accountable officer or agency can file an
appeal to COA’s Commission Proper for
reconsideration of the disallowance.
 o Judicial Review: If the appeal is
denied, the affected parties can seek
judicial review by filing a petition with the
courts. The court will review whether
COA’s disallowance was consistent with
applicable laws and regulations.
 6. Implementation of Corrective Actions:
 o Adjustment in Accounts: Government
agencies are required to adjust their
financial records and accounts to reflect
the disallowance.
 o Policy Changes: Agencies may need
to revise their financial management
practices and policies to prevent future
disallowances.
 Key Considerations
 • Timeliness: The process involves
strict timelines for responses and appeals.
Accountability is emphasized to ensure
that funds are managed properly and
irregularities are addressed promptly.
 • Documentation: Proper
documentation and adherence to legal
requirements are crucial in the
disallowance process. Agencies must
maintain accurate records to support their
expenditures.
 • Legal Compliance: The disallowance
process helps ensure that public funds are
used in compliance with laws and
regulations, thereby promoting
 Overall, the disallowance process in the
Philippines is a critical mechanism for
maintaining financial discipline and
accountability in the management of
public funds. It helps to ensure that
government expenditures are lawful,
properly documented, and aligned with the
principles of good governance.
 Questions:

The obligation to answer publicly - to report, to an

acceptable standard of answering, for the
discharge of responsibilities that affect the public
in important ways. It involves ensuring that public officials
and institutions are answerable to the public and that their
actions are transparent and in accordance with the law.
a. Public Administration
b. Public Accountability
c. Public Service

d. Public Interest
 Questions:

The obligation to answer publicly - to report, to an

acceptable standard of answering, for the
discharge of responsibilities that affect the public
in important ways. It involves ensuring that public officials
and institutions are answerable to the public and that their
actions are transparent and in accordance with the law.
a. Public Administration
b. Public Accountability
c. Public Service

d. Public Interest
 Questions:

Which of the following is not a rationale for Public

Accountability
a. Restoration of Trust
b. Graft and Corruption
c. Efficient Governance

d. Citizen Empowerment
 Questions:

Which of the following is not a rationale for Public

Accountability
a. Restoration of Trust
b. Graft and Corruption
c. Efficient Governance

d. Citizen Empowerment
 Questions:
The Philippine government has
agencies mandated to ensure
accountability and transparency on its
overall operations. Which of the
following is not included.

a. Civil Service Commission

b. Department of Public Works and Highways
c. Commission on Audit
d. Office of the Ombudsman
 Questions:
The Philippine government has
agencies mandated to ensure
accountability and transparency on its
overall operations. Which of the
following is not included.

a. Civil Service Commission

b. Department of Public Works and Highways
c. Commission on Audit
d. Office of the Ombudsman