Princess Dianne Baltazar

1SCL1

Article IX: Constitutional Commissions D. THE COMMISSION ON AUDIT

General function It is the function of the Commission on Audit to examine the accuracy of the records kept by accountable officers and to determine whether expenditures have been made in conformity with law. It is through the Commission on Audit that the people can verify whether their money has been properly sent. Composition of the Commission on Audit The Commission on Audit is composed of a Chairman and two Commissioners. The 1935 Constitution provided for the General Auditing Office under the direction and control of the Auditor General. Qualifications of members The members should be natural-born citizens of the Philippines. They must be at least thirty-five (35) years of age at the time of their appointment, certified public accountants with not less than ten (10) years of auditing experience, or members of the Philippine Bar who have been engaged in the practice of law for at least ten (10) years, and must not have been candidates for any elective position in the elections preceding their appointment. The requirement that members should either be a CPA or a lawyer is in order to enable them to carry out their functions and duties efficiently and intelligently without relying merely upon their subordinate employees. Appointment and terms of office The Chairman and the Commissioners are appointed by the President with the consent of the Commission of Appointments for a term of seven (7) years without reappointment. Like that of the Commissioner of the Civil Service Commission
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and the Commission on Elections their term of office are also staggered in a twoyear interval. A member appointed to any vacancy shall serve only for the unexpired portion of the term of the predecessor.

Powers and Functions 1. To examine and audit all forms of government revenues and expenditures. The revenue and receipts of the government or any of its subdivisions, agencies or instrumentalities. All expenditures or uses of funds and property owned or held in trust by, or pertaining to the government. The Commission on Audit has the power, authority and duty to examine and audit all these. 2. To settle government accounts. It means the power to settle liquidated accounts, that is, those accounts which may be adjusted simply by an arithmetical process. It does not include the power to fix the amount of an unfixed or undetermined debt. 3. To promulgate accounting and auditing rules including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures. A violation of the rules and regulations empowers the Commission on Audit to disapprove

expenditures of public funds, making it a real guardian of the public treasury. 4. To submit an annual financial report and recommend measures. The Commission on Audit is directed to submit to the President and Congress an annual report of the financial condition and operation of the Government and its agencies. It is also directed to recommend measures to improve the effectiveness and efficiency of the Government, and its entities and to submit such other reports as may be required by laws. 5. To act as central accounting office of the government. The Commission is made the official custodian of all government records of accounts. By this arrangement, the Commission is able to maintain a system of accounts
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that records all the transactions involving the collection of public funds, their payments into the treasury, and their expenditures and

disbursements.

Question:

Are Local Water Districts incorporated under P.D No. 198 government-

owned corporations with original charter and therefore under the jurisdiction of the COA? Answer: Yes, they are. The phrase government-owned or controlled corporations

with original charter means corporations created by special law and not under the Corporation Code of the Philippines. P.D. No. 198 is such special law. Section 2 (2): This provision is a safeguard to avoid the repetition of what happened in the past regime of the depose President Marcos. The Constitution also granted to Commission on Audit the power to promulgate accounting and auditing rules and regulations including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties. Since the Commission on Audit is responsible for the enforcement of the rules and regulations, it goes without saying that failure to comply with them is a ground for disapproving the payment of the proposed expenditure. Question: The Commission on Audit reduced the amount that was passed in audit

on the ground that the original amount was excessive and disadvantageous to the government. Does the Commission have the authority to do so? Answer: Yes, on the basis of its authority in Article IX-D, 2(1). This extends to the

accounts of all persons respecting funds or properties received or held by them in an accountable capacity.