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SETTLEMENT OF ACCOUNTS

SETTLEMENT OF ACCOUNTS. SETTLEMENT OF ACCOUNTS. SETTLEMENT OF ACCOUNTS. SETTLEMENT OF ACCOUNTS. SETTLEMENT OF ACCOUNTS. RRSA and Pertinent Provisions under the 2009 RRPC. Resource Person: Atty. LITO Q. MARTIN Director III Commission on Audit. SESSION OBJECTIVE.

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SETTLEMENT OF ACCOUNTS

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  1. SETTLEMENT OF ACCOUNTS SETTLEMENT OF ACCOUNTS SETTLEMENT OF ACCOUNTS SETTLEMENT OF ACCOUNTS SETTLEMENT OF ACCOUNTS

  2. RRSAandPertinent Provisions under the 2009 RRPC Resource Person: Atty. LITO Q. MARTIN Director III Commission on Audit

  3. SESSION OBJECTIVE • To orient AGAP convention participants on the provisions of COA Circular No. 2009-006 dated September 15,2009 on RRSA & 2009 RRPC which is effective October 28, 2009.

  4. BACKGROUND/Previous Issuances COA Circular 81-156 Restating the Requirements for the Use of the CSB and Providing Guidelines on Its Issuance Including the Accounting Treatment Thereof

  5. Previous Issuances … COA Circular 85-156B Prescribing the Use of the Manual on CSB COA Circular 94-001 Prescribing the Use of the 1993 Revised Manual on CSB

  6. Previous Issuances … COA Memorandum 2002-053 Guidelines on the Delineation of Auditing and Adjudication Functions COA Resolution 2006-001, 1/31/06 Responsibility to Issue NS/ND/NC Arising From the Settlement of Accounts and Audit of Transactions

  7. Chapter I - Introduction

  8. Section 1. Title The set of rules shall be known as the RRSA

  9. Sec. 2 - Legal Authority • Power/authority/duty to examine/ audit/settle all accounts pertaining to revenues & receipts of & expenditures or uses of funds, owned or held in trust by, or pertaining to the Govt. [Sec. 2 (1), Art. IX-D, Constitution]

  10. Legal Authority[Sec. 2 (2), Art. IX-D) • Exclusive authority to define the scope of its audit & examination; • Establish the techniques & methods required therefore; • Promulgate accounting & auditing rules & regulations, including those for the prevention & disallowance of IEEUU expenditures, or uses of govt. funds & property.

  11. Other Legal Authority … To certify the balances in the accounts of AOs (Sec. 81, PD 1445) To notify in writing the officer whose accounts have been audited & settled (Sec. 82, PD 1445) To render accounts by local auditors (Sec. 347, RA 7160)

  12. Sec. 3 - Scope of RRSA • All accounts audited pertaining to revenues & receipts of & expenditures or uses of govt. funds • Settlement of property accountsnotcovered.

  13. Chapter II -General Principles, Rules and Regulations

  14. Settlement of Accounts • is the process of determining the balance of the account of an AO, thru an audit, to determine the transactions that may be allowed or not allowed. • The balance refers to totalsuspensions,disallowances& charges (SDC) which shall be his accountability.

  15. Settlement of Accounts … • Audit shall be done in accordance with LRR(laws/rules/regulations) & standards to determine whether transactions may be allowed, suspended,disallowedorcharged.

  16. When to issue an AOM • audit decision cannot yet be made due to incomplete documentation or information; • the deficiencies noted refers to financial/operational matters w/c do not involved pecuniary loss.

  17. Auditor’s Adverse Decisions • Suspension of a transaction that needs more requirements, & w/c may result in pecuniary loss to the govt., until such requirements are complied with. • A NS shall beissued indicating therequirementsto be compliedw/by the officers concerned.

  18. Sec. 4. Definition … • Suspension is a temporarydisallowance of a transaction w/c appear illegal, improper or irregular unless satisfactorily explained/justified by the responsible officers or until the requirements on matters raised in the course of audit are submitted or complied with

  19. Sec. 4, Rule IV of RRPC • NSmay be issued for transactions of doubtful legality/ validity/propriety to obtain further explanationor documentation.

  20. Auditor’s Adverse Decisions … • Disallowance of a transaction on expenditure, either in whole or in part, for being an IIEEUU. A ND is issued for the disallowed amount

  21. Auditor’s Adverse Decisions … • Charge of a transaction when the correct amount of revenue/receipt due the govt. is not received as a result of under-appraisal/ assessment/ collection. A NC is issued for the uncollected amount

  22. Evidence of Audit • By appropriate markings in the documents audited • If allowed in audit, indicate “Allowed in Audit”. • If not allowed, issue NS/ND/NC, & indicate “amount suspended/ disallowed/ charged” in the documents audited.

  23. Suggested Post-Audit Stamp POST-AUDITED Transaction Amount : __________ Allowed : __________ Disallowed/Charged/ Suspended : ___________ ND/NC/NS Number : ___________ Dated : ___________ Audited by: (ATL) _________ Date: ___________ • Standard size is _ by __ cms • Auditor sign using RED ink

  24. How Notices are Settled • NS - by persons responsible thru compliance w/ requirements • ND/NC - by persons liable thru payment, restitution or by other modes of extinguishment of obligation, suchas compensation, dation in payment, condonation.

  25. Notice of Settlement • The auditor issue anNSSDC for settled NS/ND/NC

  26. Balance of Account • The auditor shall issue : • SASDC within 15 days after the end of each QTR; • Updated list of outstanding SDCwithin 5 days from receipt of request by a retiring/ transferring officer.

  27. Linkages to the AAR • Total unsettled SDC at the end of CY as reflected in the 4th QTR SASDC shall be reported in the AAR • Other deficiencies noted as indicated in the AOM shall be included in Part II of the AAR

  28. Responsibilities for Audit and Settlement of Accounts

  29. Responsibilities of Agency Head • Primarilyresponsible for all govt. funds & property pertaining to his agency. • Fiscal responsibility rests directlywith him.

  30. Responsibilities of Agency Head … • Ensure that: • Required financial/other reports/ statements are submitted by the concerned agency officials in prescribed form and within the prescribed period; • Settlement of disallowances/ charges is made within the prescribed period;

  31. Responsibilities of Agency Head … • Requirements of transactions suspended are complied with; • Appropriate actions are taken on the deficiencies noted as contained in the AOM.

  32. Responsibilities of Agency Head … • Initiate the necessary administrative and/or criminal action in case of unjustified failure/refusal to effect compliance with the foregoing requirements by subordinate officials.

  33. Responsibilities of Agency Head … • Gross negligence in disciplining subordinates who are the subject of repeated adverse audit findings shall subject him to disciplinary action by proper authorities.

  34. Responsibilities of Agency Head … • Enforce the COE by requiring the withholding of salaries/other compensation due the person liable in satisfaction of the disallowance/charge. • Ensure that all employees who are retiring/transferring shall first settle the disallowances & charges for w/c they are liable.

  35. Responsibilities of Agency Accountants/Bookkeepers • Ensure that reports & supporting documents submitted by the AOs are immediately recorded& submitted to the Auditor w/in 1st 10 days of the ensuing month;

  36. Responsibilities of Accountants … • Ensure that financial records are made accessible at reasonable hours to the auditors when needed;

  37. Powers & functions of Auditors(Sec. 3, Rule II of RRPC) To exercise such powers & functions as provided by law & as may be authorized by COA in the audit & settlement of the accounts, funds, financial transactions & resources of the agencies under their respective audit jurisdiction.

  38. Role of Auditors(Sec. 2, Rule IV of RRPC) • To maintain completeindependence & exercise professional care & be guided by applicable LRR & the GAAAP in the performance of auditwork&preparation audit reports.

  39. Responsibilities of Auditors(Sec. 3, Rule IV of RRPC) • To obtainsufficient evidence to provide an appropriate factual bases for his opinions, conclusions, judgments & recommendations; • To safeguard this evidence to support his findings, which may include physical, testimonial, documentary, analytical & electronic evidences.

  40. Responsibilities of Auditor(Sec. 7.3 of RRSA) • Enforce submission of prescribed/ necessary reports of receipts/ disbursements w/ all paid vouchers, ORs, & supporting documents;

  41. Responsibilities of Auditor … • Conduct audit on the above-submitted documents covering transactions under the identified audit areas; • Prepare, as a result of audit, the pertinent NS/ND/NC/AOM/NFD;

  42. Responsibilities of Auditor … • Prepare the COE for disallowances/charges issued by him for his Director’s signature • Serve the NS/ND/NC/ AOM/NFD/COE to persons concerned/responsible/liable;

  43. Responsibilities of Auditor … • Monitor the enforcement of COEissued & report to Director the action taken by the agency thereon pursuant to Sec. 24; • Issue the NSSDC when there is settlement pursuant to Sec. 13;

  44. Responsibilities of Auditor … • Prepare & transmitSASDCto the agency head & the Accountant pursuant to Sec. 14; • Others

  45. Responsibilities of Director • Exercise general supervision & review in audit & settlement of accounts; • Act on appeals pursuant to Sec. 18; • Sign the NFDfor decisions rendered pursuant to Sec. 22;

  46. Responsibilities of Director … • Sign the COE for decisions rendered by him & by the Auditor pursuant to Sec. 23; • Consolidate the SASDC for all auditees under his jurisdiction;

  47. Payment of Filing Fees2009 RRPC • Every petition/appeal filed before an adjudicating body/office of COA pertaining to the following cases shall be imposed a filing fee equivalent to 1/10 of 1% (0.1%) of the amount involved, but not exceeding P10,000.

  48. Filing Fees … • Appeal from audit disallowance/charge • Appeal from disapproval of request for relief from accountability • Money claims, except if the claimant is a govt. agency • Request for condonation of settled claim or liability except if between govt. agencies

  49. Legal Research Fund(Section 4, RA 3870, as amended, & LOI 1183 dated Dec. 16, 1981) • In addition, LRF of 1% of filing fee imposed, but not lower than P10 shall be collected

  50. Where to Pay Fees • At the Cashier of COA Central Office or Regional Office • if not practicable, may be remitted thru postal money order payable to the Commission on Audit

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