Title
Rules on Settlement of Accounts use
Law
Coa Circular No. 2009-006
Decision Date
Sep 15, 2009
COA Circular No. 2009-006 establishes the Rules and Regulations on Settlement of Accounts, superseding previous guidelines and detailing procedures for auditing government funds, issuing notices of disallowance, and outlining the appeals process for agencies.
settlement of
accounts
rules and

Legal basis, supersession, and revocation

  • COA Circular No. 2009-006 supersedes COA Circular No. 94-001.
  • COA Circular No. 2009-006 also supersedes COA Memorandum No. 2002-053, dated 26 August 2002 (and COA Circular No. 94-001, dated 20 January 1994).
  • Any COA Circular, Memoranda, and other issuances inconsistent with the Circular are revoked or modified accordingly.

Policy and purpose of the RRSA

  • The RRSA provides the required framework for settlement of accounts audited under Commission procedures.
  • The RRSA establishes standardized issuance of documents used in audit outcomes, including Notices and the Statement of Audit Suspensions, Disallowances and Charges (SASDC).
  • The RRSA governs how audit findings translate into suspensions, disallowances, and charges, how these are resolved, and how final decisions are enforced.

Coverage and what RRSA covers

  • The RRSA covers all accounts audited pertaining to:
    • revenues and receipts; and
    • expenditures or uses of government funds.
  • The RRSA does not cover the settlement of property accounts.

Core audit outcomes and issued notices

  • The Auditor issues a Notice of Disallowance/Notice of Charge for differences/balances resulting from the audit of accounts.
  • The Auditor may issue a Notice of Suspension pending compliance with various requirements for transactions that may result in pecuniary loss to the government.
  • The RRSA provides for issuance of the Statement of Audit Suspensions, Disallowances and Charges (SASDC) by the Auditor.
  • The SASDC summarizes the total suspensions, disallowances, and charges pertaining to the agency as of the end of each quarter.
  • The first SASDC issued under the RRSA must reflect a zero (0) balance for uniformity and simplicity, and for facility in monitoring; it does not mean there are no existing suspensions/disallowances/charges of the agency.
  • The RRSA requires issuance of a Notice of Settlement of Suspension/Disallowance/Charge (NSSDC) whenever a suspension/disallowance/charge is settled.
  • The NSSDC serves as the basis for dropping from the agency’s books of accounts the recorded disallowance/charge.

Decisions, finality, and enforcement

  • The RRSA requires issuance of a Notice of Finality of Decision (NFD) to inform the agency head that a decision of the Commission or its authorized representatives has become final and executory.
  • The NFD is the basis for recording the disallowance/charge in the agency’s books of accounts.
  • When liable persons refuse or fail to settle after the decision has become final and executory, a COA Order of Execution (COE) is issued to enforce settlement.

Motions, appeal levels, and jurisdiction

  • No motion for reconsideration is allowed at all levels of adjudication.
  • A motion for reconsideration is allowed only at the Commission Proper.
  • Appeals from the Auditor’s decision proceed in this sequence:
    • to the Cluster/Regional Director,
    • then to the Adjudication and Settlement Board, and
    • then to the Commission Proper.
  • Appeal fees must be paid before jurisdiction is acquired by the Commission.

Transitory and final provisions

  • The RRSA includes Transitory Provisions under Chapter VI.
  • The RRSA includes Final Provisions under Chapter VII.
  • COA Circular No. 2009-006 states that its effect is governed by the publication-and-15-day rule for effectivity.
  • The RRSA document is treated as integral to COA Circular No. 2009-006 as the attached RRSA framework covering all covered audited accounts.

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