Findings No.8 COA Annual Audit Report 2006

July 25, 2008

8. The Bids and Awards Committee failed to submit on time the documentary requirements for review of contracts in violation of COA Circular No. 76-34 and COA Circular No. 89-229.

The management of the audited agency is required by law and/or rules and regulations to furnish the head of the auditing unit with copies of contract orders and supporting documents. This is designed to enable the auditing unit to perform its duties relating to the post audit of the transactions at the most appropriate time and manner without in any way delaying or obstructing the implementation or prosecution of the project.

All payments out of government funds shall be supported with complete documentation, which may vary from one type of transaction to another. The contract with its complete supporting documents is the basic document needed to support a claim for payment against the government.

COA Circular No. 76-34 partly provides that a copy of contract and each of all the documents forming part thereof of reference should be submitted to the unit or agency auditor within five (5) days from execution of a contract by the government.

COA Circular No. 89-229, dated March 21, 1989, partly provides that copies of all contracts, variation orders, change orders, extra works orders, purchase letter orders and supplemented contracts together with their supporting documents shall be submitted to the Auditor within five (5) days after the perfection thereof.

Records showed that contracts submitted to our office as mentioned in Annex B, were not supported with complete documents and were not submitted to us within five (5) days from execution of the contract by the government in violation of COA Circular No. 76-34 and COA Circular No. 89-229.

Further, in spite of our letters addressed to the Chairman of Bids and Awards Committee requiring submission of the required documents, to date said required documents as stated in our letters were not completely complied on Twenty (20) projects under contract with various contractors worth P36,398,902.11. [Annex B].

In effect, the Auditor was not able to conduct timely review and evaluation of the contracts on whether such contracts entered by the government were in compliance with the requirements of laws, rules and regulations.

Further, it was noted that projects due for inspection/evaluation and review were not yet forwarded to the Technical Services Specialist (TAS) because the documents required as indorsed to the Bids and Awards Committee were not immediately acted and/or complied by said committee.

During the exit conference, the Chairman of the Bids and Awards Committee requested for reconsideration of the required submission of the prescribed forms for the procurement of Civil Works. According to him, it was only in June 2006 that these prescribed forms were taken up during the seminar conducted by DBM.

The submission required under our letters, indorsed as received by concerned official, were not only the prescribed forms but also the submission of the documents submitted by contractors for eligibility checks and other missing documents which form part of the contracts. We still need the submission of these documents for auditorial review and proper evaluation of the contracts entered into by the City Government.

Recommendation:

Require the Chairman of Bids and Awards Committee to submit at soonest possible time the required documents as cited in the indorsement letters duly received by them to the Auditor for review and evaluation within the prescribed period of five (5) days in compliance with COA Circular Nos. 76-34 and 89-229.

CLICK HERE for the latest 2nd Hand Laptops, Mobile Phones, SMART/ GLOBE /TALK 'N TEXT/ TOUCH MOBILE / SUN CELLULAR Postpaid, Pre-paid and International Roaming PROMOS, Philippine Airlines (PAL) and Cebu Pacific Airlines Airline AIRFARE DISCOUNT tickets for sale!

Check out our Updated/Latest List of GOVERNMENT JOBS AND OTHER GOVERNMENT VACANT POSITIONS, PRIVATE JOBS, PRIVATE FULL-TIME JOBS, PRIVATE PART-TIME JOBS and OTHER ONLINE JOBS in this link!

Written by admin · Filed Under Commission on Audit, Gingoog City