Article 103p. 103

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

(4) Perform such other related functions as may be

assigned by the Chairman.

SECTION 9. Auditing Units in Government Agencies:

Structure

and

Functions .

—

The

Auditing

Units in

government

agencies

shall

perform

the

following

functions:

(1)

Examine,

audit and settle all accounts, funds,

financial

transactions

and

resources

of

government

agencies under their jurisdiction;

(2) Submit audit reports and such other reports as may

be required by the Commission;

(3)

Keep

and

preserve

expense

vouchers, journal

vouchers, stubs of treasury warrants and checks, reports

of collections and disbursements and similar documents

together with their supporting papers, under regulations

of the Commission; and

(4) Perform such other functions as may be assigned

to them by the Chairman.

CHAPTER 4 Jurisdiction, Powers and Functions of the

Commission

SECTION 10. Statement of Objectives . — In keeping

with

the

constitutional

mandate,

the

Commission

adheres to the following objectives:

(1) Determine whether or not the fiscal responsibility

that rests directly with the head of the government

agency has been properly and effectively discharged;

(2) Develop and implement a comprehensive audit

program

that

shall

encompass

an

examination

of

financial transactions, accounts and reports, including

evaluation

of

compliance

with

applicable

laws

and

regulations;

(3)

Institute

control

measures

through

the

promulgation

of

auditing and accounting rules and

regulations governing the receipts, disbursements, and

uses of funds and property, consistent with the total

economic development efforts of the Government;

(4) Promulgate auditing and accounting rules and

regulations so as to facilitate the keeping, and enhance

the information value of the accounts of the Government;

(5)

Institute

measures

designed

to

preserve

and

ensure the independence of its representatives; and

(6) Endeavor to bring its operations closer to the

people

by

the

delegation

of

authority

through

decentralization, consistent with the provisions of the

Constitution and the laws.

SECTION

11.

General

Jurisdiction .

—

(1)

The

Commission on Audit shall have the power, authority, and

duty to examine, audit, and settle all accounts pertaining

to the revenue and receipts of, and expenditures or uses

of funds and property, owned or held in trust by, or

pertaining to, the Government, or any of its subdivisions,

agencies,

or

instrumentalities,

including

government-owned

or

controlled

corporations

with

original

charters,

and

on

a

post-audit

basis:

(a)

constitutional bodies, commissions and offices that have

been granted fiscal autonomy under this Constitution; (b)

autonomous state colleges and universities; (c) other

government-owned or controlled corporations and their

subsidiaries;

and

(d) such non-governmental entities

receiving subsidy or equity, directly or indirectly, from or

through the Government, which are required by law or

the granting institution to submit to such audit as a

condition

of

subsidy

or equity. However, where the

internal

control

system

of

the

audited

agencies

is

inadequate, the Commission may adopt such measures,

including temporary or special pre-audit, as are necessary

and appropriate to correct the deficiencies. It shall keep

the general accounts of the Government and, for such

period as may be provided by law, preserve the vouchers

and other supporting papers pertaining thereto.

(2) The Commission shall have exclusive authority,

subject to the limitations in this Article, to define the

scope

of

its

audit

and

examination,

establish

the

techniques

and

methods

required

therefor,

and

promulgate

accounting

and

auditing

rules

and

regulations,

including

those

for

the

prevention

and

disallowance

of

irregular,

unnecessary,

excessive,

extravagant, or unconscionable expenditures, or uses of

government funds and properties.

SECTION 12. Appointing Power . — The Commission

Proper shall appoint in accordance with the Civil Service

Law, the officials and employees of the Commission

wherever they are stationed or assigned.

SECTION 13. Examining Authority . — The Commission

shall

have

authority

to

examine

books,

papers,

documents filed by individuals and corporations with,

and which are in the custody of, government offices in

connection

with

government

revenue

collection

operations, for the sole purpose of ascertaining that all

funds

determined

by

the

appropriate agencies and

collectible and due the Government have actually been

collected, except as otherwise provided in the Internal

Revenue Code of 1977.

SECTION

14.

Visitorial

Authority .

—

(1)

The

Commission

shall

have

visitorial

authority

over

non-government entities subsidized by the Government,

those required to pay levies or have government shares,

those which have received counterpart funds from the

Government or are partly funded by donations through

the Government. This authority, however, shall pertain

only to the audit of these funds or subsidies coming from

or through the Government; and

(2) Upon direction of the President, the Commission

shall

likewise

exercise

visitorial

authority

over

non-governmental entities whose loans are guaranteed

by the Government, provided that such authority shall

pertain only to the audit of the government's contingent

liability.

SECTION 15. Fee for Audit and Other Services . — (1)

The Commission shall fix and collect reasonable fees for

the

different

services

rendered

to

non-government

entities that shall be audited in connection with their

dealings with the Government arising from subsidiaries,

counterpart funding by Government, or where audited

records become the basis for a government levy or share.

Fees of this nature shall accrue to the General Fund and

shall be remitted to the Treasurer of the Philippines

within ten (10) days following the completion of the audit;

and

(2) Whenever the Commission contracts with any

government entity to render audit and related services

beyond

the

normal

scope

of

such

services,

the

Commission is empowered to fix and collect reasonable

fees.

Such

fees

shall

either be appropriated in the

agency's current budget, charged against its savings, or

appropriated in its succeeding year's budget. Remittance

shall accrue to the General Fund and shall be made to the

Treasurer of the Philippines within the time provided for

in the contract of service, or in the billing rendered by the

Commission.

SECTION

16.

Deputization

of

Private

Licensed

Professionals to Assist Government Auditors . — (1) The

Commission may, when the exigencies of the service so

require,

deputize

and

retain

in

the

name

of

the

Commission such certified public accountants and other

licensed professionals not in the public service as it may

deem

necessary

to

assist

government

auditors

in

undertaking specialized audit engagements; and

(2) The deputized professionals shall be entitled to

such compensation and allowances as may be stipulated,

subject

to

pertinent

rules

and

regulations

on

compensation and fees.

SECTION

17. Government Contracts for Auditing,

Accounting and Related Services . — (1) No government

agency shall enter into any contract with any private

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