Question & AnswerQ&A (COA Resolution No. 2015-014)
Section 2, paragraph 2, Article IX-D of the 1987 Constitution provides COA its exclusive authority to define the scope of its audit and examination, establish the techniques and methods required, and promulgate accounting and auditing rules and regulations.
COA Resolution No. 91-52 dated September 17, 1991 is repealed and replaced by the 2015 Revised Guidelines governing auditorial review and evaluation of government infrastructure contracts.
The Approved Budget for the Contract (ABC) shall serve as the reference value for the COA cost estimate.
No, the COA cost estimate shall be computed without any allowable variance under the 2015 guidelines.
Republic Act No. 9184, the Government Procurement Reform Act, and its Implementing Rules and Regulations (IRR) govern the procurement compliance that auditors must ascertain.
The auditor or his/her representative should attend all stages of the procurement process as an observer in accordance with Section 13.1 of the IRR of RA No. 9184.
The report should be submitted to the Government Procurement Policy Board, the Office of the Ombudsman, and a copy furnished the Director who has jurisdiction over the auditee agency.
The auditor must render a report that the contract has been found in order as to the legal and auditorial review before conducting the technical review.
The auditor uses the Technical Evaluation Report of the technical personnel as reference during the audit.
The defects or errors in the ABC, especially those adversely affecting the contract price, shall be communicated in writing to the auditee by the auditor.
Any discrepancies unfavorable to the government discovered in the technical review should be disallowed in audit.
The Revised Guidelines took effect immediately upon its adoption on April 6, 2015.
Commissioner Heidi L. Mendoza signed as Officer-in-Charge.
The ABC already includes a 10% allowance to account for computation to reasonable accuracy within plus or minus 10% of final quantities, preventing excessive overpricing.