Reinstituting Selective Pre-Audit, COA Circular 2009-002

COA holds exclusive authority over audit scopes, methods, rules, and regulations.
Previously lifted pre-audit activities in 1995 but now revisits policy due to increased irregular disbursements.
Reinstitutes selective pre-audit as a preventive measure against anomalies and inadequate internal controls.

Pre-audit: examines supporting documents before payment and recording.
Objectives include verifying compliance with laws, fund availability, legitimacy, approval, and authenticity.
Post-audit: covers similar areas plus tracing transactions to books of accounts and final determination of legality and necessity.
Post audit will not duplicate pre-audit unless necessary.

Applies to national agencies, local government units, and government-owned corporations listed in an annex.
Transactions include cash advances, salaries, infrastructure payments, procurement, funds to NGOs, fund transfers, trust fund disbursements, and disposal of property.
Other entities like national high schools and barangays initially exempt.
Further coverage subject to evaluation of internal controls.

Pre-audit required except for payroll, intelligence, petty cash, and local travel advances.
Liquidation must be audited before recording.
Strict guidelines on granting, use, and liquidation timing.
Cash advances must be for lawful specific purposes, properly bonded, and cannot be transferred or used for previous advance liquidation.

Pre-audit applies only to first payment after appointment by transfer/reinstatement and last payment before transfer.
All terminal leave benefits payments subject to pre-audit.

Covers government construction-related projects defined broadly including IT, sanitation, energy, and buildings.
Pre-audit required for contract amounts meeting set thresholds varying by agency and location.
Only advance payments, first and last progress billings, and first payments under variation orders are pre-audited.
Mandatory inspections for first and last billing; random inspections possible.
Technical and legal reviews required, including cost reasonableness evaluations.

All claims subject to pre-audit following RA No. 8974 and its implementing rules.

Includes land, buildings, supplies, labor, and services.
Pre-audit applies to first and last payments for contracts exceeding monetary thresholds based on agency and locality.
Some emergency procurements exempt.
Government-to-government procurements excluded.

Pre-audit required for documents supporting ADA payments for foreign or local funded projects.
Also applies to approved disbursement vouchers for procurements paid through ADA.

All fund transfers subject to pre-audit except certain intra-government and emergency transfers.

Pre-audit applies only to trust funds from the national government or government corporations.

Pre-audit required for negotiated sales of real property at or above P1 million and unserviceable property valued at P500,000 or more.
Specific approval hierarchies for disposal based on value.
Valuations by qualified inspectors required.
Sales of real property are subject to COA approval regardless of amount.

Assigned to heads of auditing units, Supervising Auditors or Audit Team Leaders.
Procedures for designation of alternates during absences.

Assistant Commissioners designated to monitor and evaluate selective pre-audit implementation.
Authority to recommend inclusion or exclusion of transactions.
Develops criteria for exemptions based on risk-calibrated audit framework.

Violations related to cash advances penalized under PD No. 1445 Sections 89 and 128.
Failure to submit transactions for pre-audit grounds for administrative actions and possible disallowance.