THE COMMISSION ON AUDIT

What is COA?
The Commission on Audit (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.

Section 1. COMPOSITION/QUALIFICATIONS

Composition:
1)

Chairman, and

2)

Commissioners (2).

Qualifications:
1)

Natural-born citizens of the Philippines

2)

At least 36 years old at the time of their appointment;

3)

Either:

a). CPAs with at least 10 years auditing experience; or

b). Members of Phil. Bar with 10 years of practice.
4)

Members cannot all belong to the same profession.

5)

Subject to confirmation of the CA.

6) Must not have been candidates for any elective position in the elections immediately preceding their
appointment.

Disqualifications:
Members cannot, during their tenure:
1) Hold any other office or employment;
2) Engage in the practice of any profession;
3) Engage in the active management or control of any business, which, in any way, may be affected by the
functions of their office; and

4) Be financially interested, direct or indirect, in any contract, franchise, privilege granted by the government,
any of its subdivisions, agencies, instrumentalities, including GOCCs and their subsidiaries.

Term:
1)

Chairman -7 yrs; Commissioner1 -5yrs; Commissioner 2 -3 yrs.

2)

LIMITATION: Single terms only; no re-appointment allowed

3)

Appointments to any vacancy shall only be for the unexpired portion of predecessors term.

Section 2. POWERS
1)

Examine, audit, and settle accounts pertaining to:

Revenue and receipts of funds or property; or

Expenditures and uses of funds or property
Owned or held in trust by, or pertain to:
The Government;
Any of its subdivisions, agencies or instrumentalities;
Including GOCCs with original charters.
2)

Conduct post-audit with respect to the following:

Constitutional bodies, commissions, and offices granted fiscal autonomy;

Autonomous state colleges and universities;
GOCCs and their subsidiaries incorporated under the Corporation Code.
None-governmental entities receiving subsidies or equity, directly or indirectly, from or through the government,
which are required by law of the granting of institution to submit to such audit.
3) If COA finds internal control system of audited agencies as inadequate, COA may adopt measures,
including temporary or special pre-audit, as may be necessary.
4) Keep the general accounts of the government, preserving vouchers and other supporting papers pertaining
thereto.
5) Exclusive authority to define the scope of COAs audit and examination and to establish the techniques and
methods required therefor.
6)

Promulgate accounting and auditing rules and regulations.

Including those for the prevention or disallowance of irregular, unnecessary, excessive, extravagant, or
unconscionable expenditures or uses of government funds and properties.

Failure to comply with these rules can be a ground for disapproving the payment of a proposed expenditure.

Note:
1)

The functions of COA can be classified as:

Examine and audit all forms of government revenues;

Examine and audit all forms of govt expenditures
Settle govt accounts
Promulgate accounting and auditing rules (including those for the prevention of irregularexpenditures.
To decide administrative cases involving expenditures of public funds.
2) COA can settle only LIQUIDATED ACCOUNTS or those accounts which may be adjusted simply by
arithmetic process.
3) COA has authority not just over accountable officers but also over other officers who perform functions
related to accounting such as verification of evaluations and computation of fees collectible, and the adoption of
internal rules of control.
4)

COA does not have the power to fix the amount of an unfixed or undetermined debt.

5) Where the following requirements are complied with, it becomes the ministerial duty of the COA to approve
and pass in audit vouchers for payment:
There is a law appropriating funds for a particular purpose;
There is a contract, made by the proper officer, entered into in conformity with the above-mentioned law;
The goods or services covered by such contract have been delivered or rendered in pursuance to such contract,
as attested by the proper officer; and
Payment has been authorized by officials of the corresponding department or bureau.
6) Prosecutors may still review accounts already settled and approved by COA for the purpose of determining
possible criminal liability. This is because COAs interest in such accounts is merely administrative.
7)
COA has the power to determine the meaning of public bidding and what constitutes failure when
regulations require public bidding for the sale of government property.

The Office of the Ombudsman

The 1987 Constitution created an "independent Office of the Ombudsman. The Tanodbayan became the Office
of the Special Prosecutor, with powers as may be provided by law, except those conferred on the Office of the
Ombudsman.

Independence
No less than the Constitution specifically provides for an independent Office of the Ombudsman.[6] The
Ombudsman is intended to be independent and autonomous constitutional body.[7] To strengthen its
independence, the Constitution provides that the Office of the Ombudsman shall enjoy fiscal autonomy and its
approved annual appropriations shall be automatically and regularly released.[8] The Ombudsman has the
authority to appoint officials and employees of the Office of the Ombudsman, except the Deputies.[9] The
Ombudsman may only be removed by impeachment.

Composition
The Office of the Ombudsman shall be composed of:
(1) the Ombudsman, to be known as Tanodbayan;
(2) One overall Deputy; and
(3) At least one Deputy each for Luzon, Visayas, and Mindanao. A separate Deputy for the military establishment
may likewise be appointed.

Selections
The Ombudsman and his Deputies shall be appointed by the President from a list of at least six nominees
prepared by the Judicial and Bar Council, and from a list of three nominees for every vacancy thereafter. Such
appointments shall require no confirmation. All vacancies shall be filled within three months after they occur.
Qualifications

1. Natural-born citizen of the Philippines,

2. At the time of appointment, at least forty (40) years old

3. Of recognized probity and independence

4. Member of the Philippine Bar

5. Must not have been candidates for any elective office in the immediately preceding election

In addition to these qualifications, the Ombudsman must have for ten (10) years or more been a judge or engaged in the
practice of law in the Philippines.

Term of office
The Ombudsman and his Deputies shall serve for a term of seven years without reappointment. They shall not be qualified
to run for any office in the election immediately succeeding their cessation from office.

Disqualifications:
Members cannot, during their tenure:
1) Hold any other office or employment;
2) Engage in the practice of any profession;
3) Engage in the active management or control of any business, which, in any way, may be affected by the
functions of their office; and
4) Be financially interested, direct or indirect, in any contract, franchise, privilege granted by the government,
any of its subdivisions, agencies, instrumentalities, including GOCCs and their subsidiaries.

Powers, functions and duties