COA Presentation - RRSA

SETTLEMENT OF ACCOUNTS
RRSA

and
Pertinent Provisions
under the 2009 RRPC
Resource Person:

Atty. LITO Q. MARTIN
Director III
Commission on Audit
SESSION OBJECTIVE
To orient AGAP convention
participants on the provisions of
COA Circular No. 2009-006 dated
September 15,2009 on RRSA &
2009 RRPC which is effective
October 28, 2009.

BACKGROUND/Previous Issuances
COA Circular 81-156
Restating the Requirements for
the Use of the CSB and Providing
Guidelines on Its Issuance
Including the Accounting
Treatment Thereof

Previous Issuances
COA Circular 85-156B
Prescribing the Use of the
Manual on CSB

COA Circular 94-001
Prescribing the Use of the 1993
Revised Manual on CSB
Previous Issuances
COA Memorandum 2002-053
Guidelines on the Delineation of
Auditing and Adjudication Functions
COA Resolution 2006-001, 1/31/06
Responsibility to Issue NS/ND/NC
Arising From the Settlement of
Accounts and Audit of Transactions
Chapter I -
Introduction
Section 1. Title
The set of rules
shall be known as
the RRSA
Sec. 2 - Legal Authority
1. Power/authority/duty to examine/
audit/settle all accounts pertaining
to revenues & receipts of &
expenditures or uses of funds,
owned or held in trust by, or
pertaining to the Govt. [Sec. 2 (1),
Art. IX-D, Constitution]
Legal Authority [Sec. 2 (2), Art. IX-D)
2. Exclusive authority to define the scope of
its audit & examination;
3. Establish the techniques & methods
required therefore;
4. Promulgate accounting & auditing rules
& regulations, including those for the
prevention & disallowance of IEEUU
expenditures, or uses of govt. funds &
property.
Other Legal Authority
5. To certify the balances in the
accounts of AOs (Sec. 81, PD 1445)
6. To notify in writing the officer whose
accounts have been audited & settled
(Sec. 82, PD 1445)
7. To render accounts by local auditors
(Sec. 347, RA 7160)
Sec. 3 - Scope of RRSA
All accounts audited pertaining to
revenues & receipts of &
expenditures or uses of govt.
funds

Settlement of property accounts
not covered.
Chapter II -
General Principles, Rules and
Regulations
Settlement of Accounts
is the process of determining the
balance of the account of an AO,
thru an audit, to determine the
transactions that may be allowed or
not allowed.
The balance refers to total
suspensions, disallowances &
charges (SDC) which shall be his
accountability.
Settlement of Accounts
Audit shall be done in
accordance with LRR
(laws/rules/regulations) &
standards to determine
whether transactions may be
allowed, suspended,
disallowed or charged.
When to issue an AOM
1. audit decision cannot yet be made
due to incomplete
documentation or
information;
2. the deficiencies noted refers to
financial/operational matters w/c
do not involved pecuniary loss.
Auditors Adverse Decisions
1. Suspension of a transaction that
needs more requirements, & w/c may
result in pecuniary loss to the govt.,
until such requirements are complied
with.
A NS shall be issued indicating the
requirements to be complied w/ by
the officers concerned.
Sec. 4. Definition
Suspension is a temporary
disallowance of a transaction w/c
appear illegal, improper or irregular
unless satisfactorily
explained/justified by the responsible
officers or until the requirements on
matters raised in the course of audit
are submitted or complied with
Sec. 4, Rule IV of RRPC
NS may be issued for
transactions of doubtful
legality/ validity/propriety to
obtain further explanation
or documentation.
2. Disallowance of a
transaction on expenditure,
either in whole or in part, for
being an IIEEUU. A ND is
issued for the disallowed
amount
3. Charge of a transaction when
the correct amount of
revenue/receipt due the govt. is
not received as a result of
under-appraisal/ assessment/
collection. A NC is issued for the
uncollected amount
Evidence of Audit
By appropriate markings in the
documents audited
If allowed in audit, indicate Allowed
in Audit.
If not allowed, issue NS/ND/NC, &
indicate amount suspended/
disallowed/ charged in the
documents audited.
Suggested Post-Audit Stamp
POST-AUDITED
Transaction Amount : __________
Allowed : __________
Disallowed/Charged/
Suspended : ___________
ND/NC/NS Number : ___________
Dated : ___________

Audited by: (ATL) _________ Date: ___________
Standard size is _ by __ cms
Auditor sign using RED ink
How Notices are Settled
NS - by persons responsible thru
compliance w/ requirements
ND/NC - by persons liable thru
payment, restitution or by
other modes of extinguishment
of obligation, such as
compensation, dation in payment,
condonation.
Notice of Settlement
The auditor issue an
NSSDC for settled
NS/ND/NC

Balance of Account
The auditor shall issue :
SASDC within 15 days after the
end of each QTR;
Updated list of outstanding
SDC within 5 days from receipt of
request by a retiring/ transferring
officer.
Linkages to the AAR
Total unsettled SDC at the end
of CY as reflected in the 4
th
QTR
SASDC shall be reported in the
AAR
Other deficiencies noted as
indicated in the AOM shall be
included in Part II of the AAR
Responsibilities for
Audit and
Settlement of
Accounts
Responsibilities of
Agency Head
Primarily responsible for all
govt. funds & property
pertaining to his agency.
Fiscal responsibility rests
directly with him.
Responsibilities of Agency Head
1) Ensure that:
a) Required financial/other reports/
statements are submitted by the
concerned agency officials in
prescribed form and within the
prescribed period;
b) Settlement of disallowances/ charges
is made within the prescribed period;
c) Requirements of
transactions suspended are
complied with;
d) Appropriate actions are
taken on the deficiencies
noted as contained in the
AOM.
2) Initiate the necessary
administrative and/or criminal
action in case of unjustified
failure/refusal to effect
compliance with the
foregoing requirements by
subordinate officials.
Gross negligence in
disciplining subordinates who
are the subject of repeated
adverse audit findings shall
subject him to disciplinary
action by proper authorities.
3) Enforce the COE by requiring the
withholding of salaries/other
compensation due the person liable
in satisfaction of the
disallowance/charge.
4) Ensure that all employees who are
retiring/transferring shall first settle
the disallowances & charges for w/c
they are liable.
Responsibilities of Agency Accountants/Bookkeepers
1. Ensure that reports &
supporting documents
submitted by the AOs are
immediately recorded &
submitted to the Auditor
w/in 1
st
10 days of the
ensuing month;
Responsibilities of Accountants
2. Ensure that financial
records are made
accessible at
reasonable hours to the
auditors when needed;
Powers & functions of Auditors
(Sec. 3, Rule II of RRPC)
To exercise such powers &
functions as provided by law & as
may be authorized by COA in the
audit & settlement of the accounts,
funds, financial transactions &
resources of the agencies under
their respective audit jurisdiction.
Role of Auditors
(Sec. 2, Rule IV of RRPC)
To maintain complete
independence & exercise
professional care & be guided
by applicable LRR & the
GAAAP in the performance
of audit work &
preparation audit reports.
Responsibilities of Auditors
(Sec. 3, Rule IV of RRPC)
To obtain sufficient evidence to
provide an appropriate factual bases
for his opinions, conclusions,
judgments & recommendations;
To safeguard this evidence to
support his findings, which may
include physical, testimonial,
documentary, analytical & electronic
evidences.
Responsibilities of Auditor
(Sec. 7.3 of RRSA)
1. Enforce submission of
prescribed/ necessary
reports of receipts/
disbursements w/ all paid
vouchers, ORs, &
supporting documents;
2. Conduct audit on the above-
submitted documents covering
transactions under the identified
audit areas;
3. Prepare, as a result of audit,
the pertinent
NS/ND/NC/AOM/NFD;
4. Prepare the COE for
disallowances/charges issued by
him for his Directors signature
5. Serve the NS/ND/NC/
AOM/NFD/COE to persons
concerned/responsible/liable;
6. Monitor the enforcement of
COE issued & report to Director
the action taken by the agency
thereon pursuant to Sec. 24;
7. Issue the NSSDC when there
is settlement pursuant to Sec. 13;
8. Prepare & transmit
SASDC to the agency head
& the Accountant pursuant
to Sec. 14;
9. Others
Responsibilities of Director
1. Exercise general supervision &
review in audit & settlement
of accounts;
2. Act on appeals pursuant to
Sec. 18;
3. Sign the NFD for decisions
rendered pursuant to Sec. 22;
Responsibilities of Director
4. Sign the COE for decisions
rendered by him & by the
Auditor pursuant to Sec. 23;
5. Consolidate the SASDC for all
auditees under his jurisdiction;
Payment of Filing Fees
2009 RRPC
Every petition/appeal filed before an
adjudicating body/office of COA
pertaining to the following cases shall be
imposed a filing fee equivalent to 1/10
of 1% (0.1%) of the amount involved,
but not exceeding P10,000.
Filing Fees
a) Appeal from audit disallowance/charge
b) Appeal from disapproval of request for relief
from accountability
c) Money claims, except if the claimant is a
govt. agency
d) Request for condonation of settled claim or
liability except if between govt. agencies
Legal Research Fund
(Section 4, RA 3870, as amended, & LOI 1183
dated Dec. 16, 1981)
In addition, LRF of 1% of
filing fee imposed, but not
lower than P10 shall be
collected
Where to Pay Fees
At the Cashier of COA Central
Office or Regional Office
if not practicable, may be
remitted thru postal money
order payable to the
Commission on Audit
Payment of Fees
OR shall be attached to
the pleading
If no OR, adjudicating
bodies/offices shall not take
action thereon
Chapter III
Guidelines in issuance
of AOM/NS/ND/NC
and SASDC
Sec. 8 AOM & Management Reply
1. The Auditor shall issue an AOM (Form
1) for observation relating to
financial/operational deficiencies such as
accounting, internal control or property
management which do not involve
pecuniary loss, including for
documentary or other information
requirements to enable the auditor to
make a decision in audit.
Sec. 8 - AOM & Mngt. Reply
2. AOM is addressed to agency head and
officers concerned stating the
deficiencies noted and/or requirements
to be complied with and requiring a
response thereon. Signed both by the
ATL and SA.
3. AOM shall be replied to by agency
officials concerned w/in 15 CDs from
receipt thereof.
Sec. 8 - AOM and Management Reply
4. If agency officials failed to reply, the
observation shall be deemed accepted
and shall be included in the audit report
(ML and/or AAR). In case of failure to
submit documents/ information needed
to reach an audit decision, an NS/ND/NC
may be issued after a re-evaluation of
those available.
Sec. 8 - AOM & Mngt. Reply
5. The Auditor shall evaluate the agencys
reply/comments and shall inform the
agency head and officer concerned in
writing of the results of evaluation.
6. The documents/information submitted in
response to an AOM may provide basis for
the allowance, SDC in audit.
Sec. 9 Notice of Suspension
1. The Auditor may issue an NS
(Form 2) for transactions of
doubtful legality/propriety/
regularity which may result in
pecuniary loss of the government to
obtain further explanation or
documentation.
2. Addressed to agency head and the
Accountant; served on the persons
responsible; stated the amount
suspended, the reason/s for
suspensions, the justification/
explanation/legal basis/documents
needed to lift the suspension, and the
persons responsible for compliance.
Signed both by the ATL and SA.
3. Issued as often as suspensions are made
4. Suspension shall be settled within 90
CDs from date of receipt by the
responsible officers; otherwise, the
transaction shall be disallowed/ charged
after the Auditor shall had satisfied
himself of such action and consequently,
issue the ND/NC.
Sec. 10 Notice of Disallowance
1. The Auditor shall issue an ND (Form 3)
for transactions w/c are IEEU (COA Circ.
85-55A) and illegal (contrary to law) and
unconscionable (unreasonable and
immoderate; no man in his right sense
would make, nor fair and honest man
would accept as reasonable; and those
incurred in violation of ethical and moral
standards)
liable; indicated the transaction and
amount disallowed, the reasons for
disallowance, the LRR violated,
and the persons liable. Signed both
by the ATL and SA.
3. Issued as often as
disallowances are made.
4. Disallowances shall be settled
within 6 months from date
of receipt by the persons
liable.
Sec. 11 Notice of Charge (NC)
1. The Auditor shall issue the NC (Form 4)
on the difference of the following, which
are proper audit charge:
a) Amount assessed/appraised is less than
what is due;
b) Amount billed is less than what is due;
c) Amount collected is less than what is due.
Sec. 11 Notice of Charge
liable; indicated the transaction and
amount charged, the reasons for
the charge, the LRR violated, and
the persons liable. Signed both by
the ATL and SA.
Sec. 11 Notice of Charge
3. Issued as often as charges
are made.
4. Charge shall be settled within
6 months from date of
receipt by the persons liable.
ND/NC
ND/NC shall be adequately
established by evidence and the
conclusion, recommendations or
dispositions shall be supported
by applicable LRR, jurisprudence
and the GAAAP.
ND/NC/NS/decisions/other orders
Shall be prepared in such number of
copies as may be necessary for:
1) head of audited agency (original);
2) Auditor for record (duplicate);
ND/NC/NS/decisions/other orders
3) agency officials directly affected
by the decision and from whom
specified action/response is
expected.
Sec. 12 Service of Copies of ND/NS/NC
1. To each persons liable/responsible, by
the Auditor, thru personal service.
If not practicable, by registered
mail. If several payees, such as
disallowed payroll, service to the
Accountant, who shall be
responsible for informing all payees
concerned, constitute constructive
service to all payees in the payroll.
Sec. 12 Service of Copies
2. Personal service by:
a) delivering personally to the party,
b) leaving in his office w/ his clerk or with
a person having charge thereof.
c) by leaving at the partys residence
between 8 AM to 6 PM, with a person of
sufficient age and discretion then
residing thereon.
3. Register mail by a) sending to the
office address of the party, if known;
otherwise, b) at his residence with
instruction to the Postmaster to return
the mail to sender after 10 days, if
undelivered. Ordinary mail, if no
service is available in locality of either
sender or addressee.
4. Record of date of actual or constructive
service for purpose of determining the
running of 90 days maturity period of
the suspension & the 6 months period
to appeal the disallowance/charges.
These information shall be included in
the Record of COA Decisions (ROCD)
Sec. 13 NSSDC
1. The Auditor shall issue the NSSDC
(Form 5) whenever a SDC is settled.
Accountant; copy furnished the persons
responsible/liable; indicated the
NS/ND/NC settled, amount, nature of
transaction and mode of settlement.
Signed both by the ATL and SA.
Responsibility of Auditor . . . .
Under Section 7.3
Auditor shall issue a Notice of
Finality of Decision (NFD) to inform the
agency head that a decision of COA or its
authorized representative has become final &
executory, which shall be the basis for
recording the disallowance/charge in the
agencys books.
Sec. 13 NSSDC
3. Settlements -
a) Suspension by submission of
justification/explanation and/or
documentation required and after
the Auditor is satisfied that the
transaction is regular/legal/proper.
If the Auditor is not satisfied, he
shall issue the ND/NC;
Sec. 13 Settlement
b) Disallowance/charge
i) by payment of the amount disallowed;
ii) by such other applicable modes of
extinguishment of obligation as provided
by law, w/c the Auditor may refer to the
General Counsel, for evaluation & advice,
the propriety of the settlement;
Sec. 13 Settlement
b) Disallowance/charge

iii) from a decision of the Director, the ASB,
or the CP, lifting the same.
Sec. 14 SASDC
1. The Auditor shall prepare the SASDC
(Form 6) summarizing the total SDC for
the current period. It shall indicate
beginning balance for each NS/ND/NC,
the NS/ND/NC and NSSDC for the period
and the ending balance of the
NS/ND/NC. Signed both by the ATL and
SA.

Sec. 14 SASDC
2. Issued to agency head & the Accountant
within 15 CDs from the end of each QTR,
copy furnished the COA Director
concerned.
3. The Auditors SASDC shall be the basis
for the preparation by the Directors
consolidated quarterly SASDC for his
cluster/region showing the total
unsettled SDC per auditee.
Sec. 14 SASDC
4. The Sector Ascom shall be furnished
copy of the consolidated SASDC of each
cluster/region for purpose of national
consolidation into a Sector SASDC as an
input into a database to be maintained
by the ITO showing the total unsettled
SDC per Sector.
Liable for Audit Disallowances/Charges
1. Determined on the basis of:
a) nature of disallowance/charge;
b) duties/responsibilities or obligations of
officers/employees concerned;
c) extent of participation in the
transaction;
d) amount of damage or loss to the govt.;
(Sec. 16.1)
Liability of Public Officers (POs)
a) Custodians of government funds
are liable for failure to ensure that
funds are safely guarded against
loss or damage; expended, utilized,
disposed of or transferred in
accordance w/ LRR; and on the
basis of prescribed documents and
necessary records.
Liability of POs
b) Who certify as to the
necessity, legality and
availability of funds or
adequacy of documents are
liable according to their
respective certifications.
Liability of POs
c) Who approve or authorize
expenditures are liable for
losses arising out of their
negligence or failure to
exercise the diligence of a
good father of a family.
Liability of POs & Other Persons
d) Who confederated or
conspired in a transaction
which is disadvantageous or
prejudicial to the government
are liable jointly and severally
w/ those who benefited
therefrom.
Liability of the PAYEE
e) Personally liable for a
disallowance where the ground
thereof is his failure to
submit the required
documents, and the Auditor is
convinced that the disallowed
transaction did not occur or
has no basis in fact.
Liability for Audit Charges
2. Measured by the individual
participation and involvement
of POs whose duties require
appraisal/assessment/
collection of govt. revenues &
receipts in the charged
transaction. (Sec. 16.2)
Liability of persons determined
to be liable under an ND/NC
3. Solidary. COA may go
against any person liable
without prejudice to the
latters claim against the
rest of the persons liable.
DECISIONS AND APPEALS
WHAT CASES
WHOSE
JURISDICTION/
APPROVING
OFFICIAL
FILING FEE
REQUIRED
Request for write-off of
unliquidated cash advances
and dormant accounts
receivables

- not exceeding P1 M
- exceeding P1 M

- ASB (original)

- CP (original)

- None

- None
WHAT CASES
WHOSE
JURISDICTION/
APPROVING
OFFICIAL
FILING FEE
REQUIRED
Request for relief from cash and

property accountabilities

-
not exceeding P100,000
[fortuitous events and natural
calamities or acts of man (theft,
robbery, arson)]

-
exceeding P100,000 for losses due
to fortuitous event or natural
calamities (no limit)

- Auditor
(original)

- Director
(original)

None

- None
WHAT CASES
WHOSE
JURISDICTION/
APPROVING
OFFICIAL
FILING FEE
REQUIRED
Request for relief from cash

and property accountabilities

-
exceeding P100,000 but not
more than P500,000 for acts
of man

-
exceeding P500,000 but not
more than P5M (for acts of
man)

-
exceeding P5M (for acts of
man)

- Director
(original)

- ASB (original)

- CP (original)

- None

- None

- None
WHAT CASES
WHOSE JURISDICTION/
APPROVING OFFICIAL
FILING FEE
REQUIRED
Request for COAs concurrence

on the hiring of legal
consultants and appeals/Motion
for Reconsiderations thereto
- CP (exclusive) - None

Appeals from audit dis-

allowance/charge involving
amounts:

- not exceeding P1,000,000

- exceeding P1,000,000
- Director (appellate)

- ASB (appellate)
- CP (appellate)
- 1/10 of 1% but not
less than P10 but
not to exceed
P10,000
- Do -
- Do -
WHAT CASES
WHOSE
JURISDICTION/
APPROVING
OFFICIAL
FILING FEE
REQUIRED
Appeals from disapproved
request for relief from
accountability

- for acts of God (no limit)

- for acts of man exceeding
P100,000 but not more than
P500,000

- For acts of man exceeding
P500,000

- ASB (appellate)

- ASB (appellate)

- CP (appellate)
less than P10 but
not to exceed
P10,000

- Do -

- Do -

- Do -

WHAT CASES
WHOSE
JURISDICTION/
APPROVING
OFFICIAL
FILING FEE
REQUIRED
Money claims, except if claimant
is a government agency
(regardless of amount)

Request for condonation of
settled claims or liability except
if between government agencies

Approval of private sale of
government property in LGUs
- CP (original)

- CP (original)

- CP (original)
less than P10 but
not to exceed
P10,000

- Do -

- Do -
LEVEL OF APPEALS
Director
ASB
CP
Sec. 17 Period to Appeal
Any person aggrieved may within 6 months
from receipt of ND/NC appeal in writing;
If not appealed within the prescribed period
shall become final & executory;
Filing of an appeal will suspend the running of
the prescribed period;
Running of 6 month period shall resume upon
receipt of a decision from the Director or the
ASB.
Proceedings before the Director
1) An aggrieved party may file an
Appeal Memorandum (AM) from
an Auditors Decision/ND/
NC to the Director concerned, copy
furnished the Auditor, within 6
months from receipt of
Decision/ND/NC;
2. Caption

Appellant - party appealing
Appellee - Auditor who
rendered the decision
3) The receipt by the Director of the
AM shall stop the running of the
period to appeal which shall
resume to run upon receipt by
the appellant of the Directors
decision.
4) Within 5 CDs from receipt of the AM,
the Director shall order the Auditor to
submit his Answer, copy furnished the
appellant, together with the entire
records of the case including the
EDSE, duly numbered at the bottom of
each page.
5) The Auditor shall comply w/
the Directors Order within
15 CDs from receipt. The
appellant may file a Reply
within the same period from
receipt of the Answer.
6) The Director shall decide the
Appeal within 15 CDs from
receipt of the complete
documents necessary for
evaluation & decision.
The Director may affirm the decision of
the Auditor; If he reverses, modifies or
alters, the case shall be elevated directly
to the CP for automatic review of the
Directors Decision.
The dispositive portion shall categorically
state that the decision is not final & is
subject to automatic review of the CP.
7)
8) The Director shall not
entertain a motion for
reconsideration (MR)
of his decision.
Sec. 19 Proceedings before the ASB
1) Any person aggrieved by a
Directors Decision involving an
amount not exceeding P1
Million may appeal to the
ASB within the time remaining
of the 6 months period to
appeal.
2) Upon receipt of the AM, the ASB,
thru the Ascom of LSS, shall require
the Director to submit an Answer,
copy furnished the Appellant,
together w/ the entire records of the
case including the EDSE, duly
numbered at the bottom of each
page.
3) The Director shall comply w/ the
ASBs Order within 15 CDs from
receipt. The appellant may file a
Reply within the same period
from receipt of the Answer.
4) The ASB shall decide the
Appeal within 15 CDs from
receipt of the complete
documents necessary for
evaluation & decision.
5) The ASB may affirm, reverse,
modify or alter the Directors
Decision.

6) The ASB shall not entertain an
MR of its Decision.
Proceedings before the ASB
Proceedings before the CP
1) The party aggrieved by a
decision of the Director or
the ASB may appeal to
the CP by filing a
Petition for Review.
2) A party aggrieved by a Directors Decision
involving ND/NC exceeding P1 Million may
file an appeal to the CP within the time
remaining of the 6 months period taking
into consideration the suspension of the
running thereof.

3) The CP shall decide within 60 CDs from the
date of its submission for decision or
resolution.
4) A case is deemed submitted for
decision/resolution upon the filing of last
pleading/brief/memorandum required by
COA rules.

5) If the account/claim involved in the case
needs reference to other persons, office, or
party interested, the period shall be
counted from the time the last comment
necessary to a proper decision is received
by it.
Automatic Review of Directors Decision
a) The CP shall within 60 CDs from
receipt of the Directors Decision
& the entire records of the case,
review the same & render its
own decision.
MR of CP Decision
a) Only one MR shall be entertained
on the basis of new & material
evidence, or that the evidence is
insufficient to justify the decision,
or the said decision is contrary to
law.
b) The MR shall be filed within the
remaining of the 6 months period to
appeal.
Appeal to the SC
1) The party aggrieved may appeal the CPs
decision/order/ruling within 30 days from
his receipt, appeal on Certiorari to the
SC in the manner provided by law & Rules
of Court.

2) When the CPs decision/order/ruling
adversely affects the interest of any govt.
agency, the appeal may be taken by the
agency head.
LACHES
Defined as the failure or neglect, for an unreasonable
length of time, to do that by which by exercising due diligence
could or should have been done earlier.
It is negligence or omission to assert a right within a reasonable
time, warranting a presumption that the party entitled to assert
it either has abandoned it or declined to assert it.
Relief has been denied to litigants who, by sleeping on their
rights for an unreasonable length of time either by
negligence, folly or inattention have allowed their claims to
become stale. The laws aid the vigilant, not those who slumber
on their rights.
ELEMENTS OF LACHES
1. Conduct on the part of the defendant
that gave rise to the situation complained
of; or the conduct of another which the
defendant claims gave rise to the same;
2. Delay by the complainant in asserting his
right after he has had knowledge of the
defendants conduct and after he has had
an opportunity to sue;

ELEMENTS OF LACHES
3. Lack of knowledge by or notice to the
defendant that the complainant will
assert the right on which he bases his
suit; and
4. Injury or prejudice to the defendant in
the event relief is accorded to the
complainant.
SUPREME COURT RULING:
Soliva vs. Intestate Estate of Marcelo M. Villaliba,
G.R. No. 154017, Dec. 8, 2008
even a registered owner of property may be barred
from recovering possession of property by virtue of
laches

The same is not true with regard to laches.

stale demand.
TEOTIMO EDUARTE vs. CA, G.R. No.
121038, July 22, 1999
It has been consistently held that laches does
not concern itself with the character of the
defendants title, but only with the issue of
whether or not the plaintiff by reason of long
inaction or inexcusable neglect should be
barred entirely from asserting the claim,
because to allow such action would be
inequitable and unjust to the defendant.
(underscoring and emphasis ours)
EXCEPTION TO THE GENERAL RULE:
Durban Apartments Corp. vs. Catacutan, G.R. No.
167136, Dec 14, 2005
the Court may disregard procedural lapses so that a
case may be resolved on its merits. Rules of Procedure
should promote, not defeat, substantial justice.
A strict and rigid application of the rules that would
result in technicalities that tend to frustrate rather
than promote justice must be avoided.
CANDO vs. Olazo, G.R. No. 160741,
March 22, 2007
Ultimately, the interest of
substantial justice must
transcend rigid observance
of the rules of
procedure.xxx
Department of Agrarian Reform vs. Ma.
Regina I. Samson, et al., G.R. 161910,
June 17, 2008
It is well-settled that rules of
procedure are construed liberally
in proceedings before
administrative bodies and are not
to be applied in a very rigid and
technical manner, .
Finality and Enforcement
of Decisions
EXECUTION OF DECISION
Execution shall issue upon a decision
that finally disposes of the case. Such
execution shall issue as a matter of
right upon the expiration of the
period to appeal there from if no
appeal has been fully perfected.
(Section 1 Rule XIII, Revised Rules of
Procedure)
Finality and
Enforcement of Decisions

a) Notice of Finality
of Decisions

NOTICE OF FINALITY OF DECISION (NFD)
1) A decision of the CP, ASB, Director or Auditor
upon any matter within their respective
jurisdiction, if not appealed, shall become final
& executory.

2) The NFD (Form 7) shall be issued by the
authorized COA official to agency head to notify
that a decision has become final & executory,
there being no appeal or MR filed within the
reglementary period.


Republic of the Philippines
COMMISSION ON AUDIT
JKL City, Manila
Date: December 12, 2009
Hon. Lito M. Paras
City Mayor
JKL City, Metro Manila
Attention: Mr. Lauro T. Lorenzo
City Accountant
Reference: ND/NC No. - _________________
Date of NC - _________________
Amount - _________________

Nature of ND/NC - Collection of City License tax in the amount of P63,189.00 which was deficient by P2,700.00 since the
correct amount should be P65,889.00.

Persons Liable and date 1. Edna P. Gamba Assessment Clerk II - ______________
of receipt of ND/NC 2. Joseph R. Santos Chief, License Division - ______________
3. ABC Enterprise payor - ______________

Please be informed that the above ND/NC has become final and executory, there being no appeal filed within the reglementary period.

Accordingly, the above named persons liable shall pay the above amount immediately to the agency cashier. Failure to pay the same shall authorize the agency cashier to
withhold payment of salary and other money due to persons liable in accordance with COA Order of Execution to be issued to the agency cashier.
Carlito G. Odullo
CARLITO G. ODULLO
Audit Team Leader

Gina H. Landicho
GINA H. LANDICHO
Supervising Auditor

PROOF OF SERVICE OF NFD TO PERSONS LIABLE
Name Position Received by Date
1. Edna P. Gamba _______________ _____________ ___________
2. Joseph R. Santos _______________ _____________ ___________
3. ABC Enterprise _______________ _____________ ___________

Copy furnished:
The Director
Local Government Sector
If decision of the Director/ASB or CP attains finality,
par 1 may be restated as follows:

Please be informed that the decision of the Director/
Adjudication and Settlement Board/Commission Proper
No. __________ dated _________ has become final and
executory in the absence of an appeal filed within the
prescribed period. The said decision affirmed the above
ND/NC.

(Signatory shall be the Director, General Counsel or
Commission Secretary as provided under Section 22.3 of
these Rules. A copy of the CFD issued by the Commission
Secretary shall be furnished the General Counsel)
3) Signing Authority:
ATL & SA for their ND/NC;
Director for ND/NC issued by SAT under his supervision;
Director for his decision;
General Counsel for ASB decision;
Commission Secretary for CP decision

4) Addressed to the Agency Head, Attention: the
Chief Accountant & shall indicate the particulars
of the COA decision that has become final &
executory & the persons liable.

5) A copy shall be served by the Agency Auditor on
the persons liable or their authorized
representatives who shall indicate their printed
name & signature & the date of receipt.

6) The Chief Accountant shall, on the basis of the
NFD, record the disallowance/charge as a
receivable.

b) COAs Order of Execution

Finality and
Enforcement of Decisions

COA Order of Execution (COE)
COE (Form 8) is issued to
enforce the settlement of
disallowance/charge, whenever
the persons liable refuse or fail
to settle them after the decision
become final & executory.
Republic of the Philippines
COMMISSION ON AUDIT
Office of the General Counsel

Date: July 20, 2010
COA ORDER OF EXECUTION (COE)
Mr. Romeo Formoso
President, GHI Corp.
Roxas Blvd., Manila
Attention: Ms. Erlinda Manrique
Cashier

Reference: CP/ASB Decision No. & date - 2009-023 dated March 10, 2009
ND No. & date - 06-051-101-05 dated July 14, 2006
Amount - P42,000.00
Date of NFD - July 5, 2008
Nature of transaction - Payment for sports equipment under DV No. 03- 07-25 dated 5/28/2006 in the total amount of P142,826.00
Persons Liable 1. Jose L. Unciano Property Inspector - ___________
2. Gloria G. Manalili Chief, General Services - ___________
3. Sandra P. Baylon Chief, Research Division - ___________
You are hereby instructed to withhold the payment of the salaries or any amount due to the above-named persons liable, for the settlement of their liabilities pursuant to the ND/Decision referred to
above, copy attached and made an integral part hereof.
Payment of salaries or any money due them in violation of this instruction will be disallowed in audit and you will be held liable therefore.

Wilma C. Jardin
WILMA C. JARDIN
Assistant Commissioner
General Counsel

PROOF OF SERVICE OF COE TO AGENCY OFFICIALS
Name Position Received by Date
1. Mr. Romeo Formoso President, GHI Corp. _____________ _______________
2. Ms. Erlinda Manrique Cashier _____________ _______________

Copy furnished:
Persons liable:
Mr. Jose L. Unciano
Ms. Gloria G. Manalili
Ms. Sandra P. Baylon
All of GHI Corp., Manila

The Accountant
GHI Corp.

The Auditor
GHI Corporation, Manila

The Director, Cluster C
Corporate Government Sector
COE shall be approved not earlier than 5 days
from receipt of the NFD by the agency head,
by the following:

Director for NFD issued by him or by the Auditor;

General Counsel for NFD issued by him or by the
Commission Secretariat, or for judgment rendered by
the SC

Addressed to the agency head,
Attention: the Cashier/ Treasurer, &
shall indicate the NFD, the
particulars of the decision being
enforced & the persons liable.

The Auditor monitor the
implementation of the COE &
report to the Director the action
taken by the agency. Unsettled
COEs shall be referred to the GC
for appropriate action, including
referral to the OSG & the
Ombudsman.

Non-Compliance with the COE
Section 3. Non-compliance with the COE. - In case of failure by
the Cashier/Treasurer/Disbursing Officer to comply with the COE, the
Auditor shall notify the agency head concerned of the non-
compliance. At the same time, the Auditor shall report the matter
through the COA Director concerned, to the General Counsel who
shall take any or all of the following actions:

Recommend to the Commission Proper to cite defaulting party in
contempt;
Refer the matter to the Solicitor General for the filing of
appropriate civil suit;
Refer the case to the Ombudsman for the filing of appropriate
administrative or criminal action.

Remedies for Non-Compliance with the COE
Section 4. Holding the Defaulting Party in
Contempt. Any party who fails to comply with
the COE may be held in contempt pursuant to
Section 2, Rule XI of these Rules. The LSS shall study
and evaluate the report of such non-compliance as
cited in the preceding section and submit its
recommendation to the Commission Proper within
fifteen (15) days from receipt thereof (Section 4
Revised Rules of Procedure)

Section 1. Direct Contempt Punished Summarily. - A person
guilty of misbehavior in the presence of or so near the
Commission Proper or any of its members as to obstruct or
interrupt the proceedings before it or them, including
disrespect toward the Commission or its members, offensive
personalities toward others or refusal to be sworn or to
answer as a witness, or to subscribe to an affidavit or
deposition when lawfully required to do so, may be
summarily adjudged in contempt by the Commission or any
of its members and shall be punished in accordance with the
penalties prescribed in the Rules of Court.(Section 1 Rule XI,
Revised Rules of Procedure)
Section 2. Indirect Contempt. After a charge in writing has
been filed by an aggrieved party before the Commission Proper or
its members, and after an opportunity shall have been given to
respondent to be heard by himself or counsel, a person guilty of the
following acts may be punished for contempt:

Misbehavior of any officer of the Commission in the performance of his
official duties or in his official transactions;
Disobedience of or resistance to a lawful writ, process, order, judgment
or command of the Commission or any of its members;
Any abuse of or any unlawful interference with the process or
proceedings of the Commission or any of its members not constituting
direct contempt under Section 1 of this rule;
Any improper conduct tending, directly or indirectly, to impede,
obstruct, or degrade the administration of justice by the Commission or
any of its members;
Failure to obey a subpoena duly served.
Section 3. Penalty for Indirect
Contempt. - If adjudged guilty, the
accused may be punished in
accordance with the penalties
prescribed in the Rules of
Court.(Sections 2 and 3, Revised Rules
of Procedure)
Section 5. Referral to the Solicitor General. - To enforce civil
liability, the Auditor shall submit to the Director concerned
a report on COEs which have not been complied with. The
report shall be duly supported with certified copies of the
subsidiary records, and the payrolls/vouchers disallowed
and collections charged, together with all necessary
documents for the filing of the appropriate civil suit. The
Director shall forward the report to the General Counsel
who shall study and evaluate the same and submit his
recommendations to the COA Chairman within fifteen(15)
days from receipt thereof. Referral to the Office of the
Solicitor General for its appropriate action may be made.
(Section 5, Rule XIII, Revised Rules of Procedure)
Section 6. Referral to the Ombudsman. - The Auditor shall
report to his Director all instances of failure or refusal to
comply with the decisions or orders of the Commission
contemplated in the preceding sections. The COA Director
shall see to it that the report is supported by the sworn
statement of the Auditor concerned, identifying among
others, the persons liable and describing the participation
of each. He shall then refer the matter to the Legal Services
Sector who shall refer the matter to the Office of the
Ombudsman or other appropriate office for the possible
filing of appropriate administrative or criminal action.
Section 7. Effect of Non-
compliance. - Any delay in
complying or refusal to comply with
the order or decision of the
Commission shall constitute a ground
for contempt, and/or administrative
disciplinary action against the officer
or employee concerned.
Section 1. Applicability of Civil Service Law
and Other Rules. - The procedures set forth in
the pertinent provisions of the Civil Service
Law, The Omnibus Rules Implementing
Executive Order 292 and COA Memorandum
No. 76-48, in administrative cases against
officers and employees of the Commission, are
hereby adopted and read into these rules.
(Section 1, Rule IV of the Revised Rules of
Procedure)
Dropping from the Books of Accounts of
Settled ND/NC
Recorded final disallowances/charges
w/c are settled shall be dropped
from the books upon receipt by the
Accountant of the NSSDC (Section
24 Rules and Regulations on the
Settlement of Accounts)

Record of COA Decisions (ROCD)
1. Maintained by the Auditor showing the
ND/NCs issued, appeals taken, decisions
on appeals, NFDs & COE issued & the
NSSDC;

2. The Director & the LSS Ascom shall keep
copies of the Decisions rendered by their
respective offices, & the NFD & COEs;

The Director, LSS Ascom &
Commission Secretary shall ensure
that the Auditor is furnished w/
copies of their decisions, & NFDs &
COEs, to update the ROCD.
Record of COA Decisions (ROCD)
Opening/Revision of Settled Accounts
1. In no case shall finally settled accounts be
opened or reviewed by COA, except on the
following before the expiration of the 3 years
after the settlement of any account:
a) motu propio review & revise the account or
settlement & certify a new balance. It may require
any account, voucher or other papers connected w/
the matter be forwarded to it.

b) Open the account when appearing to be tainted w/ fraud, collusion,
or error of calculation, or when new & material evidence is
discovered, & after a reasonable time for reply or appearance of the
party concerned, may certify thereon a new balance. An Auditor
may exercise the same upon prior authorization of the COA
Chairman.
Opening/Revision of Settled Accounts
2. If a settled account is re-opened/
reviewed, & a new balance is certified in
accordance w/ Sec. 52 of PD 1445, the aggrieved
party may appeal in accordance w/ Rule IV of
RRSA.
As Accountants
Let us consider 3
simple rules.
1 - Do no harm
2 - Do good
3- Stay in love with
GOD
OPEN FORUM

THANK
YOU!!!

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