COMMISSION ON AUDIT MEMORANDUM NO.

95-109 December 6, 1995

TO : Assistant Commissioner, Directors and Officer-in Charge, Central and Regional

Offices, Heads of Auditing Units in National, Local and Corporate Sectors and
all other COA Officials and employees concerned.

SUBJECT: Ensuring the Expeditious Collection of Debts and Claims and Restitution of
Funds and Property Occasioned by Disallowances and Enforcement of
Sanctions against Those Persons Determined to be so Liable Therefor.

1.0 RATIONALE

By constitutional and statutory provision, the Commission is vested with the exclusive
authority to adjudicate money claims in the process of which it renders decisions resulting in
the settlement of these claims and accounts. More often than not, the process of settlement
entails the disapproval in audit, in whole or in part of such accounts giving rise to
disallowances and consequently liability of persons who, by reason of their positions and by
the nature of their participation are responsible for government funds and property.

The Commission has noted of late the increasing amount of these disallowances which
have remained unsettled and sanctions against persons liable for these disallowances
remained unenforced. Because of these circumstances, the Commission has been invariably
put to task for its ineffectiveness in ensuring the recovery of debts and claims and restitution of
these funds and properties occasioned by audit disallowance and the enforcement of the
sanctions against persons found liable for them.

Needless to state, the non-settlement of these disallowances and non-enforcement of

sanctions have caused disenchantment and frustration among the ranks of auditors who have
labored long enough to ferret out public officers involved in dubious and illegal transactions
resulting in loss or wastage of scarce government resources. Thus, it has become imperative
that the Commission adopts an effective and innovative measure with a view to ensuring the
expeditious settlement of these disallowances and enforcement of sanctions against those
persons liable and responsible therefor.

2.0 PURPOSE

This Memorandum is issued to prescribe the procedures to be observed by COA

officials and employees concerned in the enforcement of final decisions of the Auditor, the
Commission Proper and the Supreme court in so far as they relate to the collection of debts
and claims and restitution of funds and property by reason of audit disallowances and
enforcement of sanctions against persons found liable and responsible for these
disallowances.

3.0 DECISIONS OF THE COMMISSION

3.1 Appeal from Decision of Auditors - Any person aggrieved by the decision of an
auditor of any government agency in the settlement of an account or claim may,
within six (6) months from receipt of a copy of a decision appeal in writing to the
Commission (Section P. D. 1445; Section 33, Subtitle B, Title I, Book V,
Administrative Code of 1987).
 3.2 Appeal from Decision of the Commission. The party aggrieved by any decision,
order, or ruling of the Commission may within thirty days from his receipt of a
copy thereof appeal on certiorari to the Supreme Court in the manner provided
by law and the Rules of Court. When the decision, order, or ruling adversely
affects the interest of any government agency, the appeal may be taken by the
proper head of that agency. (Sections 50 and 35 respectively, supra).

3.3 Finality of Decision of the Commission or any Auditor. A decision of the

Commission or of any auditor upon any matter within its or his jurisdiction, if not
appealed as herein provided, shall be final and executory. (Section 51 and 36
respectively, supra).

4.0 TRANSMITTAL/MONITORING OF ADVERSE COA DECISION AND/OR SUPREME

COURT DECISIONS AFFIRMING/REVERSING COA DECISIONS:

4.1 The Commission Secretary shall have the primary responsibility to ensure that
all persons concerned be furnished with a certified true copy of every COA
Decision within two (2) working days after signing thereof by means of
"registered mail with return card". In all cases, the agency head shall be
furnished with a copy of the decision within the same period. The Legal office
shall be furnished by personal service a copy of such decision.

4.2 Monitoring of Adverse COA Decisions

4.2.1 It shall be the duty of the Office of the Commission Secretary to

determine whether or not an adverse COA Decision has already
become final and executory for failure of the aggrieved party to file a
timely request for reconsideration with the Commission or a petition for
certiorari with the Supreme Court. For this purpose, it shall maintain
subsidiary records showing the caption of the case, the decision
number and date and the actual date of receipt by the party concerned
as indicated in the "registry return card."

4.2.2 When it appears from the records that a decision has already become
final and executory, he shall immediately communicate that fact to the
Legal Office for appropriate action.

4.3 Monitoring of Supreme Court Decisions Affirming/Reversing COA Decisions

It shall be the duty of the Office of the Commission Secretary to monitor

Supreme Court Decisions affirming/reversing COA Decisions. For this purpose, he
shall maintain subsidiary records showing a list of cases pending execution as well as
those already executed. It shall also be its duty to furnish the Director and Auditor
concerned as well as the Legal Office photocopies of final and executory decisions for
their information and/or appropriate action.

5.0 DUTIES /RESPONSIBILITIES OF AUDITOR:

5.1 Decisions of the Auditor

 5.1.1 It shall be the duty of the Auditor or his duly authorized representative,
to personally serve the Notice of Suspension (NS), Notice of
Disallowances (ND), and Notice of Charge (NC) pursuant to COA
Circular No. 94-001, dated January 20, 1994, Prescribing the Use of
the Manual on Certificate of Settlement and Balances, upon every
person found liable and require the recipient to acknowledge receipt
thereof. In case of refusal to receive the aforesaid notices, the same
shall be served upon his immediate supervisor or any responsible
officer or employee in the Office. Should personal service cannot be
effected as hereinabove indicated, as when the party concerned is on
AWOL, in the case of government official or employee, or the party to
be served cannot be found, in the case of private persons, service
shall be by means of registered mail with return card to their last known
address. In all cases, the agency head shall be furnished with a copy
of the above-subject notices.

5.1.2 It shall be the duty of the auditor to periodically monitor and ascertain
whether or not a decision rendered by him has already become final
and executory. For this purpose, he shall maintain subsidiary records
showing the date of receipt of the appropriate notices as personally
acknowledged by the party held liable or by his immediate supervisor
or as indicated in the "registry return card", as the case may be, and
other relevant facts. The provisions of Sections 23 and 24 of COA
Circular No. 94-001, supra, shall be strictly observed.

5.1.3 When the period to appeal has expired and no appeal has been
perfected, it shall be the duty of the auditor to cause the enforcement
and execution of his decision by calling the attention of the party
concerned in writing of the fact of the finality of the decision and
directing the immediate settlement thereof. A copy of the said notice
shall be furnished the COA Director, the agency head concerned and
the Legal Office.

5.1.4 Whenever the party held liable therefor refuses or fails to voluntarily
settle has disallowances and charges after the decision has become
final and executory, it shall be the duty of the auditor to issue the
"Auditor's" Order" shall be furnished the party held liable.

5.2 Decisions of the Commission Proper

5.2.1 Upon receipt of a copy of a decision of the Commission Proper

denying an appeal or request for reconsideration, the auditor shall
immediately ascertain whether or not the said decision has already
been received by the party held liable. In the event that a copy of said
decision has not yet been received by the aggrieved party, it shall be
the duty of the auditor to furnish the party concerned of certified true
copy thereof, receipt of which shall be duly acknowledged. In case of
refusal to receive a copy of the decision, the same shall be served in
the manner indicated in Item 4.1 supra. This fact should be
immediately reported to the Office of the Commission Secretary and
 the Legal Office.

5.2.2 When the period to appeal has expired and no appeal has been
perfected, it shall be the duty of the auditor to cause the enforcement
and execution of the decision by calling the attention of the party
concerned in writing of the fact of the finality of the decision and
requesting the immediate settlement thereof. A copy of the said notice
shall be furnished the COA Director and agency head concerned copy
furnished the Legal Office.

5.2.3 Whenever the party held liable therefor refuses or fails to voluntarily
settle the disallowance or charges after the decision has become final
and executory, it shall be the duty of the auditor to issue the "Auditor's
Order" pursuant to Subsection 11.7 of COA Circular 94-001, supra. A
copy of said "Order" shall be furnished the party/parties held liable.

5.3 Decisions of the Supreme Court

5.3.1 Upon receipt by the auditor from the Office of the Commission Secretary
of a copy of a Supreme Court Decision affirming a COA Decision, it shall
be his (auditor) duty to cause the enforcement and execution of the
same by calling the attention of the party concerned in writing of the
finality of the decision and directing the immediate settlement thereof. A
copy of said notice shall be furnished the Commission Secretary, the
COA Director, the agency head concerned and the Legal Office.

5.3.2 Whenever the party held liable therefor refuses or fails to voluntarily
settle the disallowance or charges after the decision has become final
and executory, it shall be the duty of the auditor to issue the "Auditor's
Order" pursuant to Subsection 11.7 of COA Circular 94-001, supra. A
copy of said "Order" shall be furnished the party/parties held liable. In
addition, the Auditor shall immediately report the matter to the Legal
Office for appropriate action pursuant to Section 7.0 of this
Memorandum.

5.4 Legal Proceedings

Whenever, in the opinion of the auditor concerned, a legal proceeding is

necessary to effect enforcement of a decision, the same shall be referred to the
Chairman thru the Director concerned pursuant to COA Circular No. 94-001, supra.

5.5 Auditor's Report

It shall be the duty of the Auditor to submit a cumulative quarterly report to the
COA Director concerned of all decisions pending execution as well as those already
executed. The report shall be submitted within fifteen (15) days following the close of
each quarter. The reason(s) for non-execution of a decision shall be embodied in the
report.

6.0 DUTIES AND RESPONSIBILITIES OF THE DIRECTOR:

 6.1 Enforcement

It shall be the responsibility of the Director concerned to extend full assistance

to every Auditor under his supervision in the enforcement and execution of all decisions
covered by this issuance. Enforcement and execution of such decisions shall be
periodically monitored and a report thereof submitted to the Chairman, copy furnished
the Legal Office.

6.2 Legal Action

Within 2 working days upon receipt of the auditor's referral for legal action, it is
the duty of the Director to transmit it with his comments and recommendation to the
Chairman thru the Legal Office.

7.0 DUTIES AND RESPONSIBILITIES OF THE LEGAL OFFICE:

7.1 Enforcement of Civil Liability

Upon receipt of the auditor's referral commented on by the Director concerned,

to the effect that there is refusal or failure to voluntarily settle the disallowances and
charges under a final and executory decision, it shall be the responsibility of the
Director, Legal Office/General Counsel to initiate the Appropriate legal proceedings in
coordination with the proper or competent legal bodies of the government towards the
collection enforcement and the restitution of funds and property, found to be due the
government. For this purpose and in order to attain a speedy disposition of the case,
the General Counsel shall sign every correspondence, letter, indorsement and/or
memorandum in the following manner, to wit:

By Authority of the Chairman:

-----------------------
General Counsel

7.2 Enforcement of Administrative Liability of Public Officers/Employees

7.2.1 Whenever there is sufficient proof showing unjustified failure by a

public officer or employee to comply with any lawful order of an Auditor
in connection with the enforcement and execution of a final and
executory decision, it shall be the responsibility of the General Counsel
to cause the drafting of an administrative complaint against the officials
or employees concerned. The complaint shall be signed by the
General Counsel subject to approval by the Chairman. Upon approval
thereof, the complaint shall then be filed with the Office of the
Ombudsman, the Civil Service Commission, or the Presidential
Commission against Graft and Corruption as the case may be.

8.0 Repealing Clause:

All previous memoranda inconsistent herewith are deemed repealed or modified

accordingly.
9.0 Effectivity

This Memorandum shall take effect immediately.

(SGD.) CELSO D. GAÑGAN, Chairman