Question & AnswerQ&A (COA Resolution No. 2015-031)
Section 2, Article IX-D of the Philippine Constitution vests the Commission on Audit with the power to examine, audit, and settle all accounts pertaining to government funds and properties.
The COA has exclusive authority to audit and settle all accounts relating to revenue, receipts, expenditures, or uses of funds and property owned or held in trust by the Government or any of its subdivisions, agencies, instrumentalities, and government-owned or controlled corporations with original charters.
The Commission on Audit has promulgated 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.
It directs the issuance of a COA Order of Execution (COE) to enforce the settlement of the audit disallowance.
A disallowance or charge shall be settled by payment of the amount disallowed or by other applicable modes of extinguishment of obligation as provided by law.
Only disallowed salaries and personal benefits, allowances, or emoluments may be settled by installments.
The maximum number of monthly installment payments allowed is eighteen (18).
The monthly payment is deducted from the salary of the person liable, subject to the minimum take home pay requirement under the General Appropriations Act.
The deficiency must be paid directly by the person liable to the agency cashier within five (5) days after the due date of the installment payment.
The person liable may execute an undertaking authorizing the application of their remaining salary, accrued leave credits, and other separation benefits to satisfy the deficiency. Any unsettled balance afterward must be paid within fifteen (15) days upon receipt of notice or demand.
The Director of the Prosecution and Litigation Office acts on the requests, which are subject to review by the Assistant Commissioner of the Legal Services Sector (LSS).
The Assistant Commissioner, LSS, must submit a monthly report to the Commission Proper of all requests received and the corresponding actions.
This resolution took effect immediately upon approval on 20 August 2015.