House approves bill reorganizing COA

MANILA — Voting 258-0-0, the House of Representatives approved House Bill 9674 or the "Revised Government Auditing Act" on Third and Final Reading.

The bill reorganizes the Commission on Audit.

In his sponsorship speech, the principal sponsor, Committee on Revision of Laws Chair Edward Vera Perez Maceda justified the need to revise the 45- year-old government auditing code in Presidential Decree 1445.

"From the outmoded processes of accounting and auditing, our government auditing code has obviously become outdated due to the changing and challenging times. This is not to mention the emerging technologies and digitization universe which have hasten the time and transactions of the Philippine finances," Maceda said.

Maceda explained that the bill reorganizes the Commission on Audit by clearly defining the powers and functions of the Chairperson, Commissioners. Assistant Commissioners, Directors and auditors.

Maceda added that the current offices will be replaced by 11 sectors embodying the specialization of their respective duties and responsibilities in order to immediately respond to the needs of government agencies and of the Commission.

These are the Local Government Audit Sector (LGAS). the National Government Audit Sector (NGAS). the Corporate Government Audit Sector (CGAS), the Special Audits Services Sector (SASS). the Systems and Technical Audit Services Sector (STASS). Government Accountancy Sector (GAS), Legal Services Sector (LSS). the Commission Proper Adjudication Sector (CPAS), Planning, Finance and Management Sector (PFMS). the Administration Sector (AS) and the Professional and Institutional Development Sector (ADS).

Maceda also said the bill professionalizes auditing and accounting services by the auditors, accountants and lawyers in the Commission by stipulating that auditors and accountants in the Commission shall participate and support the activities of international professional organizations.

Maceda also said that the government will be using the International Standards for the Supreme Auditing Institutions (ISSAIs) in assessing whether the financial information, transactions, programs, operations, accounts, and reports of any government agency are in accordance with the applicable international accounting framework.

Maceda also said the bill recognizes the ease of accounting and audit through electronic forms of receipts, documents, and books to examine. It also recognizes and admits electronic payments as a mode of payments.

Auditors will also retain a digital copy of audited vouchers. Maceda said the bill also provides limited jurisdiction over private entities, authority to examine public utilities and accounts of Public-Private partnership (PPP).

It also institutionalized the power of the commission to adjudicate money claims against the government based on liquidated claims.

The bill also gave the power to cite in contempt and the power to enter into a compromise agreement when the claim or liability reaches the amount of not more than P10 million.

The bill will be submitted to the Senate. It is an administration priority.