LEGALMATTERS

Atty. LUISITA A. CATALONOIC- Legal Services

Disposition of Complaints/Requests Conduct of AuditRequest for a copy of the audit reportSubpoena duces tecum

OMB Requests- Conduct of AuditAudit forward the request to FAO pursuant to COA Memo dated August 10, 2011

OMB Requests- Audit ReportsAudit report determine what report- annual audit report or an audit report on a particular transactions stream Annual audit reports- office files copies agency file copies Web site ATFS files

OMB Requests- Audit ReportsIf there were NS or NDs issued on the matter being complained of/requested, the same maybe submitted. Copies of AOMs may also be submitted. If there are adverse findings, the Auditor can now prepare the affidavit and the cert. of non forum shopping..

OMB Requests- Audit Reports

If there are no adverse findings, the Auditor need not make any affidavit.

OMB Requests Audit ReportsIf there is no AOM, NS, ND or audit report, verify if there are documents attached to the basic complaint, in which case the ATL may proceed to verify the existence of the documents. Review if the transaction has been audited or passed in audit.

OMB Requests-Audit ReportsIf the transaction has been audited, determine the action of the AuditorIf not yet audited, proceed to review the transaction and issue the corresponding AOM, NS, ND as the case maybe.

OMB Requests-Subpoena Duces TecumLS usually fax the copy of the Subpoena to facilitate action by the ATLSimultaneously, we prepare the covering Memo requesting compliance with the sub poena direct to the requesting party, copy furnished the Regional Director.In the absence of the required documents, a certification to that effect is made by the ATL under oath.No need to explain

Requests for Audit from Other Parties Requests for audit from all other parties should likewise be forwarded immediately and directly to FAO based on the Memorandum of the Chairperson dated August 10, 2011

Contents of the Report to FAO based on August 10, 2011 memoBrief statement of the transaction complained ofPrevious audit action in the course of regular audit, and audit findings and recommendationStatus of implementation of the audit recommendation

Contents of the Report to FAO based on August 10, 2011 memoOther information necessary in order for FAO to form a conclusion on the proper disposition of the referralComments and recommendation on the disposition of the request for fraud auditAuthenticated copies of the AOM, NS, ND, pertinent portions of the AAR and other documents to support the above info

APPEALS - EDSE

EDSE prepared in accordance with COA Memo No. 94-024 dated April 13, 1994A suggested format is provided by LS upon request

APPEALS EDSE - FormatSubjectBrief Description of the FactsDescription of Documents and Events (Date_Particulars/Description of Documents_Annex) in table formatSignificant FindingRecommendation

APPEALS EDSE - InclusionsCopy/excerpts of the law, rules or regulations cited in the ND and answer particularly if it is peculiar to the agencyFor procurement transactions, the results of the auditorial and legal review should be included.Attached the transaction documents from inception to payment

APPEALS EDSE - InclusionsIn case AOMs were issued prior to issuance of NS or ND, include the comments of management and the auditors rejoinder Refrain from issuing several NS for one particular transaction. Audit Queries maybe issued instead.

Appeal MemorandumNotice of Appeal is not sufficientThe appeal maybe in any form as long as it contains the reasons/arguments why the disallowance should be liftedManagement should be reminded to furnish the ATL with a copy of the Appeal Memorandum pursuant to the RRPC

Appeal and Other FeesAppeal fees are computed based on COA Resolution No. 2008-05 dated Feb 15, 2008 on the following:Appeals from NDs, NCsAppeal from relief from accountabilityMoney claims except if claimant is governmentRequests for condonation

Other FeesCost of Reproduction should be in accordance with Res. No. 2010-012 dated Dec 15, 2010 which is P5 per pageAnnual Audit Reports is at P20 per AAR in electronic form. If hard copies it costs P5 per page following the above Resolution ATL/SA may receive payment in PMO based on Memorandum dated August 9, 2012 of the Chairperson.

Exceptions to FeesRequest for documents of government oversight bodies are exempt from the payment of reproduction fees based on item 2 of COA Res. No. 2010-012 dated Dec 15, 2010

Request for release of documents/informationIf request is filed with the ATL/SA, it must be responded to immediately with due consideration on the limitations of COA Memo 87-22E dated August 24, 1987Release of documents/information to the media is governed by COA Resolution 2008-010 dated Oct. 10, 2008

Request for release of documents/informationIf the request has to be forwarded to the Office of the Regional Director, in the transmittal there must be a categorical statement that the ATL has determined that the release does not violate any of the prohibitions in COA Memo 87-22E dated August 24, 1987 and the comments of the SA

Notice of Finality of DecisionsThe ATL should issue the corresponding NFD as soon as the ND has become final

The ND becomes final after the lapse of six months from date of receipt of ND and no appeal or motion for reconsideration is taken by the aggrieved party

Notice of Finality of DecisionsThe Legal Services has received a few copies of NFDs in 2012 because the Office of the Regional Director sent a request for an inventory of NDs which have become final.

COA Order of ExecutionBefore a COA Order of Execution is issued by the RD, submit certified copies of the NFD, subsidiary ledger that the accounts receivable has been booked up and a certification from the ATL that there is no settlement of the disallowance or charge

COMMENTSIt is suggested that the ATL comment on the results of the review of the transaction not on the culpability of the accountable officer or the person in charge of the transactionor the complaint i.e. the complaint should be dismissed because no iota of evidence was obtained by the Auditor regarding the complaint..The complaint should be dismissed because the complainant is already dead or no longer interested..

CASH EXAM REPORTSFirst observation should refer to a shortage, an overage or none at allDemand made by the examining AuditorsReply to the demandIf you wanted to help the accountable officer, mention the amount restitutedRecommend for the filing of appropriate charges if evidence warrants

Affidavits in Cash ExaminationExecuted by the examining auditor and other team membersFormat provided in the cash examination manual maybe adoptedIn case a reply is required, answer any new issues raised in the counter-affidavitIf a position paper is required, assistance maybe provided by the respective SAs

Audit of DisbursementsWhether the audit resulted in an exception with the issuance of an AOM, NS or ND or the transaction was allowed in audit.In case of exception..cite the law, rules, regulations violatedIn case it is allowed, cite compliance with the rules

Audit of CollectionsReference maybe made to the assessments/billIn the event of an exception, a Notice of Charge is issued and not a Notice of Disallowance

COMMENTS-Contracts ReviewSubmission of the copies of contracts is not lifted with the lifting of pre-audit, hence, comment on the compliance Cite the results of the legal and auditorial review of the ATL based on the contracts submitted for review The contract maybe valid or defective depending on the compliance with applicable law or regulations

COMMENTS-Contracts ReviewIn addition to the legal and auditorial review, the results of the review by the TechIts should also be citedThe Auditor may also comment whether he conforms or disagrees with the findings of the TechItsRefrain from recommending that the documents be reviewed by LS, instead use the procurement audit guide review checklist

COMMENTS-Money ClaimComment whether the claim maybe given due course depending on the validity, adequacy, legality and completeness of the supporting documents attached to the claim.Comment whether the claim has not prescribed

Request for concurrence -hiring of legal retainerRefrain from recommending that the documents be referred to legal for reviewInstead, comment on the compliance with the documentary requirements (COA Cir. 86-255 dated April 2, 1986, 95-011 dated Dec 4, 1995 & 98-002 dated June 9, 1998)Refer to Polloso v Gangan G.R 140563 dated July 14, 2000

Request for concurrenceProhibited contract stipulations are not incorporated in the contract for legal retainer (refer to memo of Dir. Shiela U. Villa dated January 22, 2010)Collection of attorneys fees from districts clientsCollection of attorneys fees for unpaid accounts referred to attorney for collectionGrant of gasoline, transportation, board & lodgingProvision of a success fee/bonus for cases won in court

Petition for relief from accountabilityFiling of notice within 30 days

Evaluate and comment on the accountable officers compliance with the documentary requirements under COA Memo 92-751 dated February 24, 1992

Evaluate and comment whether there was contributory negligence on the part of the accountable officer

Petition for relief from accountabilityIn case of Monetary accountability, a cash examination should be conducted and the report should be submitted together with the affidavit of the examining auditorsIn case of loss of accountable forms specially those with money value, proof of notice of loss is another requirement pursuant to COA Cir 84-233 dated August 21, 1984

Petition for relief from accountabilityATL not exceeding P100,000

RD- exceeding P100,000.00 but not more than P500,000.00

CP exceeds P500,000.00 to be filed with COM SEC

Disposal of Real PropertiesReferencesCOA Cir 89-296 dated January 27, 1989COA Cir 86-264 dated October 16, 1986COA Memo 88-569 dated August 12, 1988(Guidelines for appraisal of unserviceable property)COA Cir 92-386 dated October 20, 1992

Disposal of Real PropertiesSection 79, PD 1445Section 380, RA 7160Notes: General Rule in divestment:Public biddingApproval of the Commission is required in case of private sale

RELEASE OF DOCUMENTS-MediaForward the request to COA Central Office based on COA Res. No. 2008-010 dated October 10, 2008

RELEASE OF DOCUMENTS-OthersIf request is addressed to the ATLREPLY if the request does not comply with COA Memo 87-22E i.e. not specificREPLY the documents maybe obtained elsewhere other than from the ATLREPLY the release violates any of the provisions of COA Memo 87-22E

RELEASE OF DOCUMENTS-OthersFORWARD to the Regional Officewhen the release does not violate any of the provisions of COA Memo 87-22EThe ATL recommends to release the documentsThe SA concurs with the recommendation of the ATL

RELEASE OF DOCUMENTS-OthersRELEASE of Documents isWithout objectionSubject to condition that the document will be used solely for the purpose indicated in the requestPayment of the cost of reproduction

REPORTS - FORMATREQUIRED by FAO This refers to requests for audit which were forwarded to FAO and later returned to the Regional Office for conduct of audit and report preparation, the report should contain all the information required in Item No. 5 of COA Memo dated August 10, 2011 of the Chairperson.

REPORT FORMAT - FAIOThe report should be in three (3) copies with all supporting documents duly authenticated to be distributed as follows: FAO, OMB in case requested and LS

REPORT FORMAT - FAOBrief statement of the transaction complained ofPrevious audit action on said transactions in the course of regular audit and audit findings and recommendationStatus of implementation of the audit recommendation

REPORT FORMAT - FAOOther information deemed necessary in order for the FAIO to form a conclusion on the proper disposition of the referralComments & recommendation on the disposition of the request for fraud auditCopies of AOM, ND, pertinent portion of the AAR or other reports shall be submitted to support the above information

REPORT FORMAT - FAOAuthentication by authorized officials/employees of all supporting documentsIndex tabs to facilitate cross-referencing of information in the report against source documentsReview was conducted on the report and the same should be categorically stated in the transmittal letter

REPORT FORMAT COM MENDOZA

Suggested to adopt the format in Annex A of COA Memo 93-813 dated July 9, 1993.

REPORT COM MENDOZA SuggestionsIt is suggested that the ATL determine if there is a similar or the same complaint has been referred from other sources in which case, the ATL may opt to consolidate all the issues raised in the complaint before the audit is conducted or before verification of the transactions.

REPORT COM MENDOZA If it involves prior years transactions, determine if it has already been audited in which case reference maybe made to the AAR for the period, files of NS, ND, etc.In case it has not been audited yet, proceed to conduct the audit or verification, etc.Secure the documents because of the possibility that a subpoena duces tecum maybe issued later

REPORT COM MENDOZA

In the event of a reshuffling, retain copy for yourself and turnover another copy to the incoming Auditor because of the possibility of a subpoena being issued on the matter.

THANK YOUHappy 114th Anniversary to everyone