COMMISSION ON AUDIT CIRCULAR NO.

83-195-A July 6, 1983

TO

: Heads of Ministries, Bureaus and Offices; Managing Heads of GovernmentOwned and Controlled Corporations and Other Self-Governing Boards and
Commissions; COA Managers, Regional Directors and Heads and Assistant
Heads of Auditing Units and Others Concerned.

SUBJECT : Drugs Medicines and Medical Supplies Subject to Test

Commission on Audit Circular No. 82-195 dated October 26, 1982 lifted pre-audit of
financial transactions of the government except those where pre-audit is mandated by law.
Under par. 3, Special Provisions, Ministry of Health, General Appropriation Act for CY
1983, page 331, withdrawals from deposits earmarked for the purchase of medicines and drugs
including such types of medical supplies, for stock and resale, shall be effected upon the joint
signature of the representatives of the hospital concerned and the Commission on Audit. As
such, pre-audit shall be retained in the aforestated withdrawal, the same having been mandated
by law.
For purposes of facility and early settlement of claims on deliveries of drugs, medicines
and medical supplies subject to test, the following shall be adapted:
1.
Eighty per cent of the amount due may be paid pending the result of test
provided that:

2.

a.

Payment is approved by the agency head concerned as having been

lawfully incurred;

b.

Payment is supported by (1) either the delivery receipts or invoices (2) the
inspection report together with the certificate of sampling properly
accomplished; (3) the certificate of acceptance by the requisitioner.

The test may be waived on the following conditions:

a.

When the total purchase amount is less than P1,000.00 per item for drugs
and medicines and less than P2,000.00 per item for other medical
supplies provided that the item is determined to be in good physical order
and condition. Otherwise, the item shall be subjected to test regardless
of the amount involved.

b.

When the product has been previously tested as evidenced by the

laboratory report certified by the government laboratory concerned, which
shall be valid for six (6) months from date of test. In cases where the
original of the laboratory report is not available, a xerox copy, duly
authenticated by the government laboratory concerned, may be accepted.
The Auditor shall keep a file of the reports for future reference.

The waiver of test shall be indicated on the original of the order invoice and the
inspection report, thus:
"WAIVER OF TEST: Pursuant to Section 2 (a or b) of
COA Circular No. ____ dated _____,"
This circular shall take effect upon approval. All other circulars, memoranda and
regulations inconsistent herewith are hereby amended or superseded accordingly.

(SGD.) SILVESTRE D. SARMIENTO, Commissioner

(SGD.) FRANCISCO S. TANTUICO, JR., Chairman