1997 Revised Rules of Procedure of Commission on Audit

Coverage, purpose, construction

The rules govern pleadings and practice in the Commission on Audit in all matters, litigated cases, actions, and proceedings, including administrative cases originally acted upon by or appealed to it in its quasi-judicial function (Section 2, Rule I).
The rules are governed by liberal construction to effectively carry out the Commission’s power, authority, and duty under the Constitution and existing laws, and to achieve just, speedy and inexpensive determination and disposition of any matter or case (Section 3, Rule I).
The rules establish procedures for matters brought before the Commission Proper and actions taken before the Auditor and Director.
“Commission Proper” refers to the Chairman and the two Commissioners (Section 4, Rule I).

Key definitions adopted

“Accounts” mean bookkeeping records, including journals, ledgers, vouchers, and other supporting papers, and a detailed statement of items of debits and credits (Rule I, Section 4(a)).
“Appellant” means the party who appeals the final order or decision of the Auditor (Rule I, Section 4(b)).
“Appellee” means the Auditor whose order or decision is the subject of the appeal (Rule I, Section 4(c)).
“Auditors” mean the heads of auditing units, groups, or teams of the Commission on Audit (Rule I, Section 4(d)).
“Certificate of Settlement and Balances (CSB)” is a written notification by the Auditor to the agency head and accountable officer of the total suspensions, disallowances, and charges found in audit, and the total settlements thereof (Rule I, Section 4(e)).
“Chairman” means the Chairman of the Commission on Audit or presiding officer of the Commission Proper (Rule I, Section 4(f)).
“Charges” are inclusions or additions to an accountability for assessment, appraisal, or collection of revenues/receipts/income such as under-appraisal, under-assessment, or under-collection (Rule I, Section 4(g)).
“Interlocutory Order” means an order issued by the Commission Proper or any of its Members, other than a final decision (Rule I, Section 4(m)).
“Money claim” is a demand for payment of a sum of money, reimbursement on compensation arising from law or contract, due from or owing to a government agency (Rule I, Section 4(o)).
“Petitioner” means the party who appeals a final order or decision of the Director to the Commission Proper (Rule I, Section 4(p)).
“Rollo” is the folder containing pleadings (petition, answer, reply), notices, motions, memoranda or briefs, and other relevant documents filed in the Commission Proper through the Commission Secretary in appealed and original cases, fastened or stitched in chronological order separate from the record of the case from the Auditor (Rule I, Section 4(r)).
“Respondent” in administrative cases refers to an employee of the Commission charged with offenses punishable under Civil Service laws; in petitions or money claims, it refers to the party required to answer (Rule I, Section 4(s)).
“Record of case” consists of pleadings, documents and papers filed with the Auditor or Director that support the decision/action subject of appeal; for audit disallowances/charges, it includes certified true copies of notices of suspension, notice of disallowance/charge, and the CSB, plus pertinent working papers and relevant evidence (Rule I, Section 4(q)).
“Secretary” is the head of the Commission Secretariat (Rule I, Section 4(t)).

Commission jurisdiction and governing powers

The Commission on Audit must examine, audit and settle all accounts pertaining to revenue and receipts and expenditures or uses of funds and property owned/held in trust by, pertaining to, or for the Government or its subdivisions, agencies, or instrumentalities (Section 1, Rule II).
The Commission on Audit performs the following on a post-audit basis: (a) constitutional bodies, commissions and offices with fiscal autonomy under the Constitution; (b) autonomous state colleges and universities; (c) other government-owned or controlled corporations and subsidiaries; and (d) non-governmental entities receiving subsidy/equity from or through the government required by law or the granting institution to submit to audit as a condition of subsidy or equity (Section 1, Rule II).
The Commission may adopt measures including temporary or special pre-audit when internal control systems of audited agencies are inadequate to correct deficiencies (Section 1, Rule II).
The Commission keeps the general accounts of the Government and preserves vouchers and supporting papers for such period as may be provided by law (Section 1, Rule II).
The Commission has exclusive authority to define the limitations in Article IX of the Constitution, define the scope of its audit/examination, establish techniques/methods, and promulgate accounting and auditing rules and regulations, including those for prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures or uses of government funds and properties (Section 1, Rule II).
The Commission’s appellate authority covers reviewing, reversing, modifying, altering, or affirming reports, resolutions, orders, decisions, and other dispositions of Auditors or Directors (Section 4, Rule II).
The rules extend jurisdiction to: (a) National Government offices including Philippine embassies/consulates and other foreign-based government agencies; (b) local government units and instrumentalities; (c) government-owned and/or controlled corporations and subsidiaries; (d) constitutional bodies with fiscal autonomy; (e) autonomous state colleges and universities; and (f) non-governmental organizations subject to the Commission’s visitorial power (Section 5, Rule II).
The Chairman as Chief Executive Officer controls and supervises general administration, directs/ manages execution of Commission policies and technical/confidential audits, and the two Commissioners may assist upon proper delegation (Section 2, Rule II).
Auditors exercise powers authorized by the Commission in examination, audit and settlement of accounts and transactions under their audit jurisdiction (Section 3, Rule II).
Jurisdiction expressly extends to matters including disallowance; money claims due from or owing to any government agency; determination and promulgation of policies/rules/standards; novel/controversial questions of law; charges from under-appraisal/under-assessment/under-collection; CSBs; disciplinary actions against Commission personnel; visitorial power over specified non-government organizations; audit of public utilities when required by law; settlement of accounts between agencies; compromise/release of settled claims under Section 36, P.D. 1445; submission of papers under Section 39, P.D. 1445; opening/revision of settled accounts; retention and distraint mechanisms for shortages upon prima facie malversation; checking and audit of government property and supplies; seizure of local treasurer’s office for cash shortages; collection of indebtedness due the Government and its instrumentalities; and related powers explicitly enumerated (Section 1, Rule II).

Commission structure and sessions

The Commission Proper consists of the Chairman and the two Commissioners; it sits as a body to determine policies, promulgate rules/regulations, and prescribe standards (Section 1, Rule III).
The Chairman presides as Chief Executive Officer of the Commission Proper (Section 1, Rule III).
Regular sessions occur every Tuesday and Thursday at the Commission Proper Board Room, COA Central office, Quezon City, without need of call unless it decides otherwise (Section 2, Rule III).
A special session may be called by the Chairman on his own initiative or upon recommendation of any Commissioner whenever public interest requires, at the time and place designated by the Commission Proper (Section 3, Rule III).
The Commission Proper decides matters by majority vote within 60 days from the date a matter is submitted for decision/resolution, and a matter is deemed submitted upon filing of the last pleading brief or memorandum required by the rules of the Commission or by the Commission itself (Section 4, Rule III).
The Chairman’s presiding powers include issuing calls for special sessions, presiding, preserving order/ decorum, deciding questions of order, summoning parties, issuing subpoena and subpoena duces tecum, administering oaths and taking testimony, signing interlocutory orders/resolutions/rulings not yet assigned to a Member, and exercising other powers vested by law or the Commission Proper (Section 5, Rule III).
The two Commissioners must attend, deliberate, and vote during all regular and special sessions for matters under its jurisdiction; they sign interlocutory orders/resolutions/rulings assigned for study/report; they may require appearance of officials/employees for information or direct submission of documents/records; and they exercise other powers vested by law or specific rule provisions (Section 6, Rule III).
The Commission Secretary (Assistant Commissioner rank) prepares the agenda, keeps minutes, maintains a Docket (chronological entry of cases and proceedings) and a Book of Decisions containing original copies of decisions/resolutions by date, and performs related functions authorized by the Chairman or Commission Proper (Section 7, Rule III).
Assistant Commissioners and Directors of Central and Regional Offices assist the Commission Proper in adjudicatory functions in cases related to their respective responsibilities (Section 8, Rule III).
The Commission has subpoena power: the Chairman or any Commissioner, Assistant Commissioners, Central Office Directors, Regional Directors, Auditors of a government agency, and other specially deputed officials/employees may summon parties, issue subpoenas/subpoena duces tecum, administer oaths, and take testimony in investigations/inquiries under the Commission’s jurisdiction, complying with due process requirements (Section 9, Rule III).

Proceedings before Auditor and appeals

Auditors act as Commission representatives in examination, audit, settlement, and functions authorized by the Commission (Section 1, Rule IV).
Auditors must maintain independence and exercise professional care guided by applicable laws, regulations, and generally accepted auditing and accounting principles (Section 2, Rule IV).
Auditors must obtain, accumulate, and safeguard sufficient evidence to support opinions, conclusions, judgments, and recommendations; evidence may be physical, testimonial (including sworn statements), documentary, or analytical/working papers (Section 3, Rule IV).
Court technicalities on admissibility and sufficiency of evidence do not strictly apply to the audit evidence gathering described (Section 3, Rule IV).
Audit outputs must clearly and distinctly state findings of fact, conclusions, recommendations and dispositions, with factual findings supported by evidence and conclusions/recommendations/dispositions supported by applicable laws, regulations, jurisprudence, and generally accepted accounting and auditing principles (Section 4, Rule IV).
The Auditor prepares required copies for distribution: original to the head of the audited agency; one to the Auditor; one to the Director with jurisdiction; and other copies to agency officials directly affected (Section 5, Rule IV).
A report, CSB, notice of disallowances/charges, order or decision of the Auditor becomes final if no request for reconsideration or appeal is filed, upon expiration of six (6) months after notice to the parties concerned (Section 6, Rule IV).
The Auditor entertains only one (1) motion for reconsideration; if the Auditor modifies/reconsiders a disallowing decision, the Auditor must within 10 days certify the case and elevate the entire record to the Director for review, and automatic review applies (Section 7, Rule IV).
An aggrieved party may appeal an Auditor’s order/decision/ruling embodied in the specified audit documents to the Director with jurisdiction (Section 1, Rule V).
The appeal to the Director must be filed within six (6) months after notification of the Auditor’s report/notice/CSB/order/decision by filing a Notice of Appeal with the Auditor (Section 2, Rule V).
The appellant is the appealing party and the appellee is the Auditor as adverse party (Section 3, Rule V).
The Auditor must, within 10 days after receipt of the Notice of Appeal, transmit the entire record to the Director, with every page numbered at the bottom (Section 4, Rule V).
The Director issues an order requiring the appellant to file an appeal memorandum within 20 days from receipt; the appellant serves a copy to the Auditor/appellee, and the appellee may reply within the same period; filing and reply (or lapse of time) mean the appeal is deemed submitted for resolution (Section 5, Rule V).
The Director may reverse/modify/alter/affirm the Auditor’s ruling; if the Director reverses/modifies/alter the Auditor’s decision, the Director must within 10 days certify and elevate the entire record to the Commission Proper for review/approval (Section 6, Rule V).
The Director must render a decision within 30 days after submission for resolution (Section 7, Rule V).
Only one (1) motion for reconsideration of the Director’s order/decision is entertained (Section 8, Rule V).
Filing receipt by the Auditor of the Notice of Appeal and/or Motion for Reconsideration stops the running of the 6-month appeal period to the Commission Proper, and the period resumes upon receipt by the appellant of the Director’s final decision (Section 9, Rule V).
A party aggrieved by the Director’s final order/decision may appeal to the Commission Proper (Section 1, Rule VI).
The appeal is taken by filing a petition for review in seven (7) legible copies with the Commission Secretariat; a copy must be served on the Director; proof of service must be attached (Section 2, Rule VI).
The appeal period is taken within the time remaining of the six (6) months period under Section 2, Rule V, accounting for the suspension under Section 9, Rule V (Section 3, Rule VI).
The petitioner/appellant and respondent/appellee caption controls terminology for the parties (Section 4, Rule VI).
The petition must include a concise statement of facts/issues, grounds for review, and must be accompanied by a duplicate original or certified true copy of the order/decision appealed and certified true copies of relevant record portions referenced, plus supporting papers; it must state specific dates showing it was filed within the reglementary period (Section 5, Rule VI).
Within 15 days from receipt of the petition, the Director transmits the entire record to the Commission Secretary (Section 6, Rule VI).
The Director may answer within the same period; the answer is filed with the Commission Secretary with the records and served on petitioner, pointing out insufficiencies/inaccuracies and stating reasons for denial/dismissal (Section 7, Rule VI).
Petitioner may file a reply within 10 days from receipt of the answer (Section 8, Rule VI).

Commission Proper pleadings, originals, and adjudication

Pleadings, motions, notices and other papers must include a caption with the Commission on Audit name, case title, docket number, and description of the pleading; they must be printed/mimeographed/typewritten on double-spaced legal size of bond paper, and must show proof of service on the adverse party/auditor or parties with direct interest (Section 1, Rule VII).
Petitions, answers, replies, motions, notices and other papers filed with the Commission Proper through the Commission Secretary must be in seven (7) legible copies, with additional copies when there is more than one respondent equal to the number of additional respondents (Section 2, Rule VII).
Filing may be by personal delivery or registered mail; personal delivery requires the receiving clerk to stamp exact date/time and initial the first page; registered mail filing uses the post office date-of-mailing stamp as the date of filing, with the envelope/portion showing mailing and registry stamp attached, and the first page stamped for date of actual receipt (Section 3, Rule VII).
If a petition lacks complete annexes or the required number of copies, it must be completed or supplemented before the case is docketed (Section 3, Rule VII).
Pleadings sent by ordinary mail, private messengerial services, or other modes besides personal delivery/registered mail are deemed filed only on the date/time actually received, which must be stamped and signed by the receiving clerk (Section 4, Rule VII).
Upon filing of the initial pleading/petition, the receiving clerk dockets it and assigns a consecutive number prefixed as COA CP Case No. ____________ ____________ (Year) (Number); original petition is fastened to the folder, and subsequent pleadings are entered in the docket book with original copies fastened/stiched to the same rollo/folder and paged accordingly (Section 5, Rule VII).
Money claim cases cognizable by the Commission Proper may be filed directly with the Commission Secretary (Section 1, Rule VIII).
A claimant seeking money against the Government cognizable by the Commission Proper files a petition; the claimant is “Petitioner” and the government agency/instrumentality is “Respondent” (Sections 2, Rule VIII).
The petition must state petitioner’s personal circumstances/juridical personality, concise ultimate facts constituting the cause of action, citations of law and jurisprudence relied upon, and the relief sought; it must be accompanied by certified true copies of documents referenced and other supporting papers (Section 3, Rule VIII).
The petition is filed with the Commission Secretary; a copy is served on respondent and proof of service is attached (Section 4, Rule VIII).
After receipt, the Commission Secretary refers the petition to the Chairman, who issues an order requiring respondent to answer within 15 days from notice (Section 5, Rule VIII).
Respondent must file its answer within 15 days from receipt of the order, with certified true copies of documents referenced and other supporting papers; the answer must point out insufficiencies/inaccuracies and state reasons to deny/dismiss; service on petitioner and proof of service must be attached (Section 6, Rule VIII).
Petitioner may file a reply within 10 days from receipt of the answer (Section 7, Rule VIII).
The Chairman may extend the time to plead for a period not exceeding 30 days (Section 8, Rule VIII).
Every case cognizable by the Commission Proper—whether appealed or original—must be assigned to appropriate Central Office offices for study and recommendation before formal deliberation (Section 1, Rule IX).
For appealed cases from Regional Offices: within 5 days from receipt of complete records from the Regional Director, the Commission Secretary refers the case to the Director of the appropriate Central Office; that Director submits within 30 days an evaluation/recommendation memorandum to the Director of the Legal Office, with copy to the Commission Secretary; the memorandum must be clear and concise and include facts, issues, applicable laws/rules/jurisprudence, and conclusions/recommendations (Section 2, Rule IX).
For appealed cases from Central Offices: the Commission Secretary refers within 5 days to the Director of the Legal Office for evaluation/recommendation (Section 3, Rule IX).
For original cases filed directly with the Commission Proper: within 5 days from completion of records, the Commission Secretary submits the record and rollo to the Director of the appropriate office in the Central Office; that Director, within 30 days, submits a draft decision to the Director of the Legal Office, copied to the Commission Secretary (Section 4, Rule IX).
After submission of the draft decision: the Director of the Legal Office may adopt or modify it; the Legal Office Director must submit comments/action to the Commission Proper through the Commission Secretary within 15 days from referral, except for appeals from decisions of Central Office Directors where the Legal Office Director must submit his own draft decision within 30 days (Section 5, Rule IX).
Upon motion by a party or motu proprio, the Commission Proper may call for oral arguments before the Commission Proper en banc, subject to limitations of time/issues set by the Commission; in lieu of oral arguments, the parties may be allowed to submit memoranda within 10 days from notice (Section 6, Rule IX).
Any case brought before the Commission Proper must be decided within 60 days from the date it is submitted for decision/resolution (Section 7, Rule IX).
The Commission Proper reaches conclusions after formal deliberations; any member may issue a separate concurring or dissenting opinion that forms part of the decision; any member who took no part, dissented, or abstained must state the reason (Section 8, Rule IX).
Each merits adjudication is issued as a decision stating clearly and distinctly the facts and law on which it is based (Section 9, Rule IX).
The Commission’s seal is affixed to all decisions, orders, rulings, or resolutions, and the seal is held in custody of the Commission Secretary (Section 10, Rule IX).
The decision/disposition is distributed to multiple recipients including: the permanent Book of Decisions; the rollo/folder containing original pleadings (kept by Commission Secretary unless elevated to the Supreme Court); the Auditor and Director concerned; the Legal Office; the Director who conducted the study; the Central Office Records Division; and the parties or their counsel (Section 11, Rule IX).
A decision/resolution becomes final and executory after 30 days from notice unless a motion for reconsideration is seasonably made or an appeal to the Supreme Court is filed (Section 12, Rule IX).
A motion for reconsideration may be filed on grounds that evidence is insufficient or that the decision/order/ruling is contrary to law; only one (1) motion is entertained (Sections 13-14, Rule IX).
The motion for reconsideration must be verified and must specifically point to findings/conclusions not supported by evidence or contrary to law, with express reference to testimonial/documentary evidence or the provisions of law alleged to be contrary (Section 14, Rule IX).
A compliant motion for reconsideration suspends the period to elevate to the Supreme Court; within 2 days from filing, the Commission Secretary refers the motion to the Director of the Legal Office for study and recommendation; the Director must submit comments/recommendation within 15 days, in the form of a draft decision for Commission Proper consideration (Section 15, Rule IX).
If no appeal is filed, the Commission Secretary enters the decision in the Docket containing the dispositive part and signs with a certificate that it became final and executory; that recording constitutes entry (Section 16, Rule IX).

Contempt and judicial review

Direct contempt may be summarily adjudged by the Commission or any member against a person guilty of misbehavior in the presence of, or so near the Commission or its members as to obstruct or interrupt proceedings, including disrespect, offensive personalities, refusal to be sworn or answer as witness, or refusal to subscribe to affidavit/deposition when lawfully required; punishment follows penalties prescribed in the Rules of Court (Section 1, Rule X).
Indirect contempt is punishable after a written charge is filed and the respondent is given an opportunity to be heard by himself or counsel; it includes misbehavior by a responsible Commission officer in official duties/transactions, disobedience/resistance to a lawful writ/process/order/judgment/command, abuse/unlawful interference with process or proceedings (not direct contempt), improper conduct impeding/obstructing/degrading administration of justice, and failure to obey a subpoena duly served (Sections 2(a)-(e), Rule X).
If adjudged guilty of indirect contempt, the accused is punished according to the penalties prescribed in the Rules of Court (Section 3, Rule X).
Any decision, order, or resolution of the Commission may be brought to the Supreme Court on certiorari by the aggrieved party within 30 days from receipt of a copy, in the manner provided by law, the Rules of Court, and these Rules; when the decision/order/resolution adversely affects a government agency, the appeal may be taken by the proper head of the agency (Section 1, Rule XI).

Enforcement, monitoring, and administrative actions

Execution issues upon a decision that finally disposes of the case; execution issues as a matter of right upon expiration of the period to appeal if no appeal has been fully perfected (Section 1, Rule XII).
The Auditor must issue an order directing the persons liable to pay/refund disallowed amounts within 5 days from lapse of the period to appeal (Section 2, Rule XII).
If persons liable fail to refund within the specified period, the Auditor issues an order directing the Cashier/Treasurer/Disbursing Officer to withhold payment of any money due those persons (Section 3, Rule XII).
If the Cashier/Treasurer/Disbursing Officer fails to comply, the Auditor notifies the agency head concerned of non-compliance (except where the agency head is among the persons held liable) and reports the matter to the COA Director concerned recommending: (a) recommending citation of the defaulting party in contempt; (b) referral to the Solicitor General for filing of appropriate civil suit; and/or (c) referral to the Ombudsman for administrative or criminal action (Section 4, Rule XII).
The COA Director forwards the report to the Commission Proper through the Legal Office recommending contempt; the Legal Office studies/evaluates and submits recommendation to the Commission Proper within 30 days from receipt (Section 5, Rule XII).
To enforce civil liability, the Auditor submits to the COA Chairman through the Director concerned a report of disallowances/charges amounting to P 100,000.00 and above that are final and executory, requesting referral to the Office of the Solicitor General; the report must be supported by certified copies of subsidiary records, the CSB, and payrolls/vouchers disallowed and collections charged, with all necessary documents for filing the appropriate civil suit; the Director forwards to the Chairman through the Legal Office; the Legal Office recommends to the COA Chairman within 30 days from receipt (Section 6, Rule XII).
The Auditor reports to the Director all instances of failure/refusal to comply with Commission decisions/orders contemplated in prior sections; the Director ensures the report is supported by a sworn statement of the Auditor identifying persons liable and their participation, then refers the matter to the Office of the Ombudsman for possible administrative/criminal action (Section 7, Rule XII