COMMISSION ON AUDIT CIRCULAR NO.

81-131-A January 29, 1981

TO : All Heads of Departments, Chiefs of Bureaus, Agencies and Offices; Managing Heads of
Government-Owned or Controlled Corporations; Department, Bureau and Unit Auditors; Auditors of
Government-owned and Controlled Corporations; Provincial and City Auditors; COA Technical Property
Inspectors, and Others Concerned.

SUBJECT: Necessity of Acceptance by the Agency of Deliveries and/or Completed Services prior to
Inspection thereof; and Necessity of Pre-Inspection of Equipment for Repair.

It has come to the attention of this Office that agencies request inspection of deliveries of supplies,
materials, equipment, etc., and completed services rendered to the agency before the agency's
acceptance thereof, and that some agencies insist in accepting only deliveries or services after they have
been inspected by COA Property inspectors. Likewise certain agencies subject vehicles, equipment to
repair without the pre-inspection required.

In this connection attention is invited to Section 4.1.5 of the Manual on Property Inspection indicating as
within the scope of authority of the Unit Auditor both pre-inspection and inspection of motor vehicles
and other equipment, and Sec. 6.10 of the same Manual requiring inspection only of deliveries property
receipted for and accepted by the agency concerned.

The acceptance of deliveries and services is the primary responsibility of the requisitioning agency. The
COA conducts inspection only of deliveries/services which are acceptable to management. Pre-
inspection on the other hand, is necessary to determine the necessity and/or extent of repair work to be
done on the equipment for repair, and to guide the Property Inspector in the post-repair inspection in
determining if the repair specified in the Pre-inspection Report was actually undertaken.

In view of the foregoing, it is hereby directed:

1. That the agency must first accept the delivery before inspection is requested and that, only
those items which have been accepted by the requisitioning agency should be inspected by the COA
Property Inspectors.

2. That all equipment, vehicles, etc. for repair should be subjected to pre-inspection by the COA
Designated Property Inspector if the Job Order amount does not exceed P500.00, or by the COA
Technical Property Inspector if the Job Order amount exceeds P500.00. Failure to do so will be a ground
for non-conduct of the post-repair inspection and/or disallowing in audit the payment of claim for the
services rendered.