PETERWILLE T.

CHUA, CPA, MAM

 THE COMMISSION ON AUDIT
1987 PHILIPPINE CONSTITUTION ARTICLE IX-D

The COA is the Philippines’ Supreme State Audit

Institution. The Philippine Constitution declares its
independence as a constitutional office, grants it powers
to audit all accounts pertaining to all government
revenues and expenditures/uses of government resources
and to prescribe accounting and auditing rules, gives it
exclusive authority to define the scope and techniques for
its audits, and prohibits the legislation of any law which
would limit its audit coverage.
 What is the Role of COA?
Under Article IX-D, Section 2 (1) of the 1987
Philippine Constitution:
“The Commission on Audit shall have the power,
authority, and duty to examine, audit, and settle
all accounts pertaining to the revenue and receipts
of, and expenditures or uses of funds and property,
owned or held in trust by, or pertaining to, the
Government, or any of its subdivisions, agencies,
or instrumentalities, including government-owned
or controlled corporations xxx xxx xxx.”
Chief azure three mullets argent representing the national scope of
jurisdiction of the Commission on Audit; on base gules seven beasants or
representing the seven functions of the Commission. The shield is an
ethnic Igorot design.

The three silver (argent) stars (mullets) on the blue (azure) background
represent the national scope of jurisdiction of the Commission on Audit;
the seven gold (or) coins (besants) on red (gules) base represent the
seven functions of the Commission.
Spanish Colonial Era
Residencia, is an inquiry conducted by Royal Audiencia (Supreme
Court) into the administration of an outgoing Governor General and
consequently of other officials.
Visita de tierra, a visit of inspection made every 3 years, which often
revealed glaring anomalies in the handling of local government
accounts.
Colonial officials also performed investigations similar to audit, on
galleon trade and others.
In 1739, the King of Spain established the royal exchequer which was
the national treasury. All books of accounts of the Spanish colonial
government were required to pass through the scrutiny and
certification of the contador or the accountant and that of the oidor, a
representative of the Spanish crown, may be considered as the
precursor of the auditor.
Spanish Colonial Era

By mid-19th century, the Tribunal de Cuentas functioned as the

supreme auditing institution of the islands until the end of the
Spanish rule in 1898. Staffed by a president, two auditors, a fiscal,
accountants and examiners, the Tribunal had exclusive
jurisdiction over the audit of all financial matters affecting the
colony. These personnel, all appointees of the King, were
required to review all vouchers and to cross-check them against
corresponding entries in the books of accounts.
American Era
On May 8, 1899, President William McKinley gave birth to the Office
of the Auditor for the Philippine Islands.
By 1900, the Office had become a fixture of government. In 1901,
under William Howard Taft major change in the nature of
government had ripple effects in the structure of government. The
Office of the Auditor of the Philippine Islands was converted to the
Bureau of the Insular Auditor. A provincial audit division was created
for the Bureau. Double-entry bookkeeping was introduced.
In 1905, a change of guard took place. Taft resigned as Civil
Governor and was replaced who led as Governor General. Under
Luke E. Wright’s administration, Act No. 1402 was passed whereby
the Bureau of the Insular Auditor was renamed the Bureau of Audits.
 
Growth and Changes: Becoming A Stronger Institution

The 1935 Constitution expressly provided for a General Auditing

Office (GAO) , thereby elevating the audit institution to a
constitutional body. It embarked on full Filipinization of the
institution as a reflection of the government-wide transition to
self-governance. For the first Filipino Auditor General is Hon.
Jaime Hernandez.
The GAO was explicitly placed under the direction and control of
an Auditor General to separate it as an organization from the
Executive and other departments of the government.
Growth and Changes: Becoming A Stronger Institution
In 1972, the GAO was renamed the Commission on Audit (COA)
and was granted broader powers under the new Constitution
promulgated in 1973. The COA was given a broader area of audit
coverage by including the accounts of all subdivisions, agencies,
instrumentalities of government and GOCCs to be examined,
audited and settled.
The new Constitution provided for a three-man collegial COA. This
change aimed to strengthen the independence of the auditing
office and improve the quality of its decisions, given the rationale
that a three-man body was less susceptible to pressure than an
office held by a single person. It worked as a built-in internal check
within the Commission and encouraged opposing views to surface
thereby resulting in earnest consultation and better deliberation.
Growth and Changes: Becoming A Stronger Institution
In 1978, PD 1445 (Government Auditing Code) was promulgated. A
Standard Government Chart of Accounts was issued which greatly
facilitated financial audit for computerization purposes. The
Commission also implemented its comprehensive audit program
focusing on 3Es: economy, efficiency and effectiveness. Installation of
this program represented a break from tradition, the Commission
embarked on a massive reorganization and professionalization of its
personnel.
This era will be remembered for the significant involvement of COA
in international events such as the establishment of the Asian
Organization of Supreme Audit Institutions (ASOSAI), on sponsorships
of trainings for Asia’s auditors and culminating with the hosting of
the XI International Congress of Supreme Audit Institutions (INCOSAI)
in 1983. It was during this time that a COA Chairman was first elected
to the UN Board of Auditors.
Growth and Changes: Becoming A Stronger Institution
The 1987 Constitution maintained the independence of the
Commission as the supreme auditing arm of the Philippine
government. Moreover, the Constitution reiterated COA’s role as
the sole official external auditor of government agencies as well
as government-owned- and-controlled corporations (GOCCs). The
previous practice of some GOCCs and other government agencies
of hiring private accounting firms as a requirement of foreign
funding institutions to act as their auditors for foreign-assisted
projects was no longer allowed.
Change, is the inescapable destiny of the Commission. But as
history proves, whatever the nature of change brought about by
national political events, the Commission manages to make it for
the better.
VISION
A trustworthy, respected and independent audit
institution that is an enabling partner of government in
ensuring a better life for every Filipino.
 MISSION
To ensure accountability for public resources,
promote transparency, and help improve government
operations, in partnership with stakeholders, for the
benefit of the Filipino people.
God Centeredness
We believe that the authority we exercise as auditors is God entrusted and,
therefore, our highest accountability is to Him.
 Patriotism
We commit to serve the interest of the Filipino people and the country
which shall have priority over all other considerations.
 Excellence
We pursue world-class audit services availing of state-of-the-art technology
in conformity with international standards and best practices.
 Integrity
We discharge our mandate in adherence to moral and ethical principles and
the highest degree of honesty, independence, objectivity and
professionalism.
 
 Professionalism
We believe in the continuous enhancement of the skills, competence
and expertise of our personnel and in the basic right of every member
of the organization to self-development and well-being.
 
Courtesy, Modesty and Humility
We uphold and practice courtesy, modesty and humility at all times,
and acknowledge that we do not have a monopoly of technical
expertise.
 
Respect for Authority and the Rule of Law
We pledge to remain steadfast in our sworn duty to uphold COA's
ideals out of respect for authority and the rule of law.
• Examine, audit and settle all accounts pertaining to the revenue and receipts
of, and expenditures or uses of funds and property owned or held in trust by,
or pertaining to, the government.
• Promulgate accounting and auditing rules and regulations including those for
the prevention and disallowance of irregular, unnecessary, excessive,
extravagant or unconscionable expenditures, or uses of government funds
and properties.
• Submit annual reports to the President and the Congress on the financial
condition and operation of the government.
• Recommend measures to improve the efficiency and effectiveness of
government operations.
• Keep the general accounts of government and preserve the vouchers and
supporting papers pertaining thereto.
• Decide any case brought before it within 60 days.
• Performs such other duties and functions as may be provided by law.
 Audit issues of national significance/impact

Pork Account
s
Transac and
Barrel tions of
MWSS

Malampaya
Fund

Multi-Livestock Other government

Development Program projects
THE COMMISSION PROPER
 PROFILE OF COA OFFICIALS AND EMPLOYEES
As of March 7, 2014

By Eligibility

CPAs 3,414
Lawyers 51
CPA-Lawyers 120
Engineers 346

CS Professional Eligibles 2,682

Other Level 2 Eligibilities 505

CS Sub-Professional Eligibles 216

Other Level 1 Eligibilities 195

No Eligibilities 244

TOTAL 7,873
 By EDUCATION

Doctorate
33
Masteral
1,723
Bachelor of Laws
388
Accounting Major
4,248
Engineering
372
Information Technology
26
Other Bachelor Degrees
695
None
433

TOTAL
7,873
United Nations
Auditor
CERTIFIED FRAUD AUDIT EXAMINER
Outstanding Public Official
 How do we account for govt.
transactions?
• The 1987 Philippine Constitution under
Section 2 (2), Article IX-D, granted COA to
prescribe the New Government Accounting
System (NGAS).
 Why use NGAS?
The shift to NGAS was made to respond to the ff:
 Adoption of a system in accordance with
International Accounting Standards (IAS);
 Pursuit of eventual computerization, which will
include responsibility accounting, ensuring the
generation of various reports useful to management,
lawmakers and the general public;
 Generation of relevant and periodic financial
statements;
 Effective tool for managers and executives in effective
and efficient monitoring of agency performance.
 List of COA Reports
• Annual Audit Reports
• Annual Financial Reports
• Audit Performance Summary Reports
• Citizen Participatory Audit Reports
• Disaster Risk Reduction and Management Reports
• Special Audit Reports
• Official Development Assistance (ODA) Projects
Reports
• Reports on Salaries and Allowances (GOCCs)
Issuances:

• Circulars
• COA Decisions
• Revised Rules of Procedure
• Jurisprudence and Key legislations
• Accounting Issuances and other related
issuance
Quick Links:
Reference:

• http://www.coa.gov.ph/
• https://en.wikipedia.org