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Republic of the Ph ilippines . ·~!1 . ~if·-·:

COMMISSION ON AUDIT . .. -11- --
Commonwealth Av enue, Qu ezo n City, Philippines ~...U

No. 2008-002 _
0310 OCT _
29 2008

C IRC UL \ R

TO All Heads of Departments. Burea us. Offices. Agcnc ie! and

Instrume ntalities of the NalKmaI Government, Hcad~ o f Local
Go vernment Units. Managing Heads o f Government-Owned
a nd/o r C ontrolled Ccrporenoos. COA A~islant
Commissioners. COA Directors. COA Auditors and All Olhcn
Co ncerned.

SUIUECT Semi n a" on pl'"t-audil s)'strm a nd e t he r lopi n nh.le:d 10

pre-audit o n go vern me nt Inosa clioM co nd ue ted h)' prh'a te:
~ro ups or enti ties

11 has come to the attentio n of this Commission that prh..ete groups or entities have
bee n conduc ting semi nars about 1.\I;s . rules and regulat ions pecu lia r to government
operations. targeting government officials and employees as participan ts. Of recent note
i ~ an " EXECUTIVE. FORUM" initialed by a certain "CORONA MANAGEMENT
CENTER OF Til E PIIILlPPINES" lining up several topics including. among others.
modules on "THE RETUR."J OF THE "PRE-AUDIT SYSTEM"-the review and approval
by the eOA auditor of the audited agency's financial transaction before their
consummation/com pletion" and "DOCUMENTARY REQUIREMENTS OF
AGENCY'S DISB URSEMENTS (cash advance. infra projects, first payment of salaries
end other selected transactions) SUBJECT TO COA's IJRE-AlJDlT",

Under Section 2(2 ), Article IX-lJ o f the 1987 Constitution, the Commission shall
have exclusive authority to promulgate accounting and auditing rules and regulations.
Pursuant 10 this mandate, the Co mmission is presently considering the rcinstitution of
selective pre-audit on government transactions. The initiative is still the subjec t of
dclibcrnticn and the mechanics as well as the guidelines are yet to bc promulgated.
Upon approval and promulgation thereof. the Co mmission. consistent with its exclusive
authority under Section 2(2), supra, shall take the sole authority and responsibility to
disseminate, orient and train all concerned on the guidelines on selective pre-audit
through the Professio nal Development Center or any o f the Commission' s Regional
Training Centers. Any plan or undertakin private group or entity 10 conduct a
seminar or Corum about (his topic is ure and uthorized.
 To ob viate the incurrence of unnecessary expenditure over this premature and
unauthorized activity, all heads of agencies are hereby enjoined from authorizing and
sending partici pants at government's expense to the "EXEC UTIVE FORUM" or any
similar activity or training sponsored by " CORONA MANAGEMENT CENTE R OF
Til E PHILIPPINES" or any similar group or entity, particularly on the topics: "THE
RETURN OF THE "PRE~AU DIT SYSTEM " - the review and approval by the COA
auditor of the audited agency's financial transaction before their
consummation/completion" and " DOCUMENTARY REQUIREMENTS OF
AGENCY 'S DISBURSEMENTS (cash advan ce, infra projects, first payment of salaries
and other selected transactions) SUBJECT TO COA's PRE· AUUlT", or any other topics
related to pre-aud it.

All expenses that may be incurred in violation of this directive shall be disallowed
in audit, withou t prej udice to the initiation of admi nistrative disciplina ry action agai nst
any person authorizing the attendance as well us the participant as may be war ranted
under ex isting laws.

Any previous issuan ce inconsistent with this circular is conside red modified,
revoked or superseded .

Chairman