EXECUTIVE ORDER NO. 271

: The main purpose is to amend Section 2 of Executive Order No. 19 and Section 20 of Presidential Decree No. 1445 to rationalize the audit cost assessment for government-owned or controlled corporations and their subsidiaries.
: Initially, the cost was fixed at one fourth of one percent (1/4 of 1%) of the operating budgets of these corporations and subsidiaries.
: Because the fixed audit cost scheme resulted in inequitable assessment for some corporations, necessitating a rationalized and reasonable audit cost based on actual services rendered.
: It includes personal services, maintenance and other operating expenses, depreciation on capital and equipment, and out-of-pocket expenses.
: The audit cost shall be covered by fund sources provided in Section 24 of Presidential Decree No. 1445, incorporated in the national government budget, and included in the annual General Appropriations Law.
: The audit cost shall be based on the actual cost of the audit function in the corporation concerned plus a reasonable rate to cover overhead expenses.
: No, Section 20, first paragraph of Presidential Decree No. 1445 does not apply to government-owned and/or controlled corporations after this amendment.
: The Commission on Audit and the Department of Budget and Management are jointly responsible.
: It took effect on January 1, 1987.
: They remain in full force and effect.