REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

MEMORANDUM NO. : 2005-027

DATE: February 28, 2005

TO : All Assistant Commissioners, Cluster Directors, Regional Cluster

Directors, Audit Team Supervisor and Team Leaders, Technical Audit
Specialists, and All Others Concerned

SUBJECT : Amendments to COA Memorandum No. 91-704 dated February 27,

1991 on the Documentary Requirements for the Evaluation of the
Technical Aspect of all Government Contracts and Inspection of
Government Projects

I. RATIONALE

One of the activities essential to the conduct of post-audit of contracts/transactions for the
procurement of government projects, e.g., infrastructure projects, goods, and consulting
services, is the review/evaluation of the technical aspect of such contracts/transactions. The
review/evaluation process, however, could be better facilitated if all the necessary documents
and information are made available to the reviewer.

II. REVIEW PROCESS

COA Circular No. 87-278 dated November 12, 1987 requires the audited agency to furnish the
Auditor with a copy of perfected contract within five (5) working days upon approval, together
with the supporting documents for review. The Auditor reviews the perfected contracts in
accordance with existing regulations within twenty (20) days from receipt.

The review of the legal aspects of the contracts subject to post audit is made by the Auditors
concerned before review/evaluation of the technical aspect is done to ensure that the contract
is in order with respect to the legal aspect. It is understood therefore that the Audit Team
Supervisor or Team Leader concerned shall request for review of the technical aspect within
five (5) days after the review of the legal aspect has been completed. In this regard, the Team
Supervisor or Team Leader shall make available to the Technical Audit Specialists (TAS)
assigned in the different COA operating sectors, in the case of the National Capital Region, or
to the Regional TSO (RTSO), in the case of the regional offices, the copies of the contract and
all other documents necessary for the review of the technical aspect.

In view of the promulgation and implementation of new laws, rules and regulations relative to
the procurement of government projects, specifically R.A. 9184, otherwise known as the
Government Procurement Reform Act (GPRA), and its Implementing Rules and Regulations -
A (IRR-A), there is a need to redefine and update the documentary and information
requirements for the review of government contracts and inspection of government projects
which are embodied under COA Memorandum No. 91-704 dated February 27, 1991.

III. DOCUMENTARY REQUIREMENTS

The documentary requirements for all types of technical evaluations covered by this
memorandum are contained in the attached Annexes A - T. The Team Supervisor or Team
Leader shall make available to the Technical Audit Specialists (TAS) assigned in the different
COA operating sectors, in the case of the National Capital Region, or to the Regional TSO
(RTSO), in the case of the regional offices, the copies of the contract and all other documents
necessary for the review of the technical aspect.

The same documentary requirements shall be looked into by the Audit Team
Supervisors/Team Leaders whenever they conduct the contract review and inspection by
themselves as per delineation of responsibilities between the Auditing Units and the Technical
Services Office as defined under COA Memorandum No. 87-480 dated March 18, 1987.

IV. REPEALING CLAUSE

COA Memorandum No. 91-704 dated February 27, 1991 and other COA issuances
inconsistent herewith are hereby deemed revoked, amended and/or modified accordingly.

V. EFFECTIVITY

This Memorandum takes effect immediately.

ATTACHMENTS:

Annexes A - T - Documentary Requirements for

the Evaluation of the Technical Aspect of all
Government Contracts and Inspection of
Government Projects - - 320 KB; - 116 KB