Authority to Assess and Collect Fees
- Commission can charge and collect reasonable fees for audit and related services beyond the usual scope.
- Applies when the Commission contracts with government entities for these special audit services.
Nature of Special Audit Services (SAS)
- Services go beyond regular audits such as financial due diligence of GOCCs.
- Special audits often linked to issuance of Letters of Comfort for public offerings of securities.
- Require specialized audit practice skills.
Deputation of Licensed Professionals
- Commission may deputize private licensed experts to assist government auditors under Section 31 of P.D. No. 1445.
- Deputized professionals receive compensation based on rules and agreements.
Need for Uniform Guidelines
- Guidelines ensure consistent, systematic, and timely special audit engagements without prejudice to regular audit functions.
Scope of Special Audit Services (SAS)
- Excludes the regular audits: Financial/Compliance/Regularity, Fraud, Performance or Value-for-Money, and Government-Wide Sectoral audits.
Engagement Procedures
- Engagement requires COA Chairperson’s Office Order and a duly signed Engagement Letter (EL).
- Request from auditee is referred via the Cluster Director to the Chairperson with recommendations and a detailed Work Plan.
- EL must specify scope, work procedures, timetable, deliverables, fees structure, terms and conditions including Management’s Representation Letter and authority proof.
Engagement of Experts
- Commission may appoint licensed experts from outside government for specialized tasks.
- Chairperson decides on deputation based on project complexity and urgency.
- Fees for experts are market rate-based.
Composition of Special Audit Team
- Mix of members from all relevant Clusters.
- Includes at least one resource person with prior SAS experience.
- Cluster Director oversees team under COA Chairperson supervision.
Service Fees
- Fees charged are the higher between standard industry rates or a fixed amount based on actual man-hours, expenses, and a reasonable premium.
- Premium factors include urgency, scope, complexity, and timeliness.
Allocation and Utilization of Fees
- Up to 70% allocated as honoraria for team members, supervisors, and experts involved, subject to conditions.
- At least 30% retained as responsibility premium managed by COA Head Office.
Statements of Account and Honoraria
- Requests for Statements of Account and honoraria must come from Cluster Director with team accomplishment details.
- Honoraria rates determined by Chairperson based on participation, professionalism, quality, and timeliness.
- Honoraria capped at 1.5 months of basic salary per engagement.
Overtime Pay
- No overtime pay allowed to those receiving honoraria for SAS participation.
Unutilized Fees
- Remaining fees are credited to the Commission’s special fund.
Revocation and Effectivity
- Conflicting prior rules and circulars are revoked or amended.
- Resolution effective 15 days after publication in a general circulation newspaper.