Policy and rationale for submission
- The circular requires timely submission to implement a systematic and effective review process that generates timely and relevant audit results.
- It reiterates submission duties under COA Circular Nos. 76-34 and 87-278, which require audited agencies to furnish the Auditor with perfected contracts and purchase orders within five (5) working days upon approval, together with supporting documents.
- It recognizes prior issuance of COA Memorandum No. 91-704, later restated and updated by COA Memorandum No. 2005-027, which defines documentary and information requirements and provides checklists for technical evaluation.
- It addresses observed non-compliance, including cases where submissions are lacking in basic supporting documents and where irregularities were discovered in government contracts.
Coverage and persons/entities covered
- The circular covers all contracts, purchase orders and the like entered into by any government agency, irrespective of amount involved.
- It applies to government agencies of all types, including government-owned and controlled corporations and their subsidiaries.
- For agencies audited on an engagement basis, submission is made to the Auditor of the mother agency or parent company, as the case may be.
Submission duties for contracts
- A government agency must furnish the Auditor of the agency concerned with a copy of each executed contract (and each document forming part thereof by reference or incorporation) within five (5) working days from execution.
- The submission duty applies to execution by the government or any of its subdivisions, agencies or instrumentalities, including government-owned and controlled corporations and their subsidiaries.
- For technical review purposes, submissions of contracts and supporting documents must follow the specific documentary requirements in the attached checklist marked as Annexes aAa to aTa.
- The required submission includes, among others, the following documents:
- Invitation to Apply for Eligibility and to Bid
- Letter of Intent
- Eligibility Documents and Eligibility Data Sheet
- Eligibility Requirements
- Results of Eligibility Check/Screening
- Bidding Documents (Sec. 17.1, IRR-A, RA 9184)
- Minutes of Pre-bid Conference, if applicable
- Agenda and/or Supplemental Bid Bulletins, if any
- Bidders Technical and Financial Proposals
- Minutes of Bid Opening
- Abstract of Bids
- Post Qualification Report of Technical Working Group
- BAC Resolution declaring winning bidder
- Notice of Post Qualification
- BAC Resolution recommending approval
- Notice of Award
- Contract Agreement
- Performance Security
- Program of Work and Detailed Estimates
- Certificate of Availability of Funds, Obligation Request
- Notice to Proceed
- Such other documents peculiar to the contract and/or to the mode of procurement and considered necessary in the auditorial review and in the technical evaluation thereof
- The circular also applies the same submission procedures to supplementary contracts, variations orders and the like.
Contract review timeline and audit actions
- The Auditor must review the contract within a period ranging from five (5) to twenty (20) working days from receipt, depending on contract complexity.
- The auditorial review covers:
- Compliance with applicable laws, rules and regulations
- Completeness of documentary requirements
- An initial evaluation that the contractual covenants are not disadvantageous to the government
- The Auditor must call management’s attention to defects and deficiencies without waiting for the lapse of the review period, and must suggest corrective measures.
- If the defect or deficiency renders the contract totally or partially void and is not susceptible of rectification, the head of the agency must be notified within twenty-four (24) hours from such determination and must be provided the reasons.
- After the auditorial review, the Auditor must forward the contract and supporting documents to the assigned Technical Audit Specialist (TAS) in the auditing unit/cluster or to the Regional Technical Services Office (RTSO) within five (5) working days, accompanied by the relevant checklist from the documentary requirements.
Technical review periods and benchmarks
- The TAS must complete the technical review within the following periods:
- Contract Amount: P5 million and below — 5 working days
- Above P5 million up to P20 million — 14 working days
- Above P20 million — 21 working days
- The technical review periods govern review of contracts forwarded by the Auditor, using the relevant documentary checklist required for technical evaluation.
Submission duties for purchase orders
- A government agency must submit to the Auditor concerned a copy of any purchase order, irrespective of amount, together with each and every supporting document, within five (5) working days from issuance.
- Within the same five (5) working days, the Auditor must review the purchase order and point out defects and/or deficiencies to management in the manner provided for auditor actions under item 3.1.4 (i.e., call attention to defects and deficiencies and suggest corrective measures).
- If there is doubt as to the reasonableness of the price of the items purchased, the Auditor must conduct a canvass using price references provided by, among others:
- legitimate suppliers
- Procurement Service
- Technical Services Office
- other government agencies with similar procurement
- those posted in the internet
Penalties and administrative disciplinary action
- Unjustified failure by officials and employees to comply with the circular’s requirements is subject to administrative disciplinary action under:
- Section 127 of Presidential Decree No. 1445
- Section 55, Title I-B, Book V of the Revised Administrative Code of 1987
- Section 11 of Republic Act No. 6713
- When the Auditor receives information or discovers a management failure to submit required documents, the Auditor must issue an Audit Observation Memorandum calling attention to the failure and requesting compliance.
- If management does not comply, the transactions covered by the unsubmitted documents must be suspended in audit, and the penalty prescribed by law under 4.1 must be enforced.
Repealing clause
- All COA circulars and memoranda inconsistent with COA Circular No. 2009-001 are revoked, amended, or modified accordingly.