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.
 3. That a record of repairs of vehicles, and other equipment be kept by the agency,
indicating therein the type of repair undertaken, the date when it was made, and
other pertinent data for the information and guidance of the COA, the agency and
others concerned.

Strict compliance is hereby enjoined.

(SGD.) FRANCISCO S. TANTUICO, JR., Acting Chairman