Amending gov't audit cost computation

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EXECUTIVE ORDER NO. 271: Amending gov't audit cost computation

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Title Source: Supreme Court: Amending gov't audit cost computation

Law: Executive Order No. 271

Decision Date: Jul 25, 1987

Corazon C. Aquino amends the audit cost assessment for government-owned corporations, establishing a new scheme based on actual audit expenses plus overhead, to ensure fair funding and rationalization of audit services.

Need for Rationalization of Audit Funding

Recognized the necessity to revise Section 20 of Presidential Decree No. 1445.
Aimed to establish a reasonable and fair rate of assessment based on audit services rendered.

Revised Audit Cost Assessment Method for Government Corporations

Cost of audit services to government agencies covered by funds as provided in Section 24 of Presidential Decree No. 1445, included in the national budget.
For government-owned/controlled corporations, audit cost based on actual cost of audit function plus reasonable overhead.
Actual audit cost components include:
- Personal services
- Maintenance and other operating expenses
- Depreciation on capital and equipment
- Out-of-pocket expenses

Non-Applicability of Previous Provision

Section 20, first paragraph of Presidential Decree No. 1445, no longer applies to government-owned/controlled corporations.

Continuity of Other Provisions

Other provisions of Executive Order No. 19 and Presidential Decree No. 1445 remain effective unless amended by this order.

Implementation and Effectivity

Rules and regulations for implementing the Executive Order to be jointly issued by Commission on Audit and Department of Budget and Management.
Executive Order takes effect on January 1, 1987.

END