COMMISSION ON AUDIT CIRCULAR NO.

93-394 February 26, 1993

TO : Secretary of the Department of National Defense (DND), Chiefs of Offices and

Agencies under the DND, and All Others Concerned.

SUBJECT: Lifting of Pre-audit on Cash Advances Chargeable to Intelligence, Confidential

and National Security Funds.

Under COA Circular Nos. 89-299A and 92-385 dated September 8, 1989 and October 1,
1992, respectively, cash advances for purposes of intelligence, confidential and national security
operations are subject to pre-audit. Recent developments, however, require the re-assessment
of this Commission's policy on pre-audit particularly in the operations of the Department of
National Defense and in the offices and agencies under it. With the normalization of the political
system and the stabilization of government operations, there is now a need to re-affirm further
the concept that fiscal responsibility resides in management as embodied in the Government
Auditing Code of the Philippines. Moreover, there is now a perceived need to adopt an audit
technique that will be more conducive to efficient delivery of public services and improved
operations in the Armed Forces.

In view thereof, pre-audit of cash advances for purposes of intelligence, confidential and
national security operations of the Department of National Defense and all offices and agencies
under it is hereby lifted. Henceforth, audit of the same shall be undertaken on a post-audit basis
and the pre-audit activity shall be the responsibility of the management of DND and the
concerned offices or agencies under it. This lifted pre-audit activity shall be made a part of its
accounting and fiscal control process.

Accordingly, all COA Auditors/personnel concerned are enjoined to refrain from

performing pre-audit on cash advances for purposes aforestated.

All COA Circulars and Memoranda which are inconsistent herewith are hereby amended
or modified accordingly.

This Circular shall take effect immediately.

(SGD.) SOFRONIO B. URSAL, Commissioner

(SGD.) ROGELIO B. ESPIRITU, Commissioner
(SGD.) EUFEMIO C. DOMINGO, Chairman