COMMISSION ON AUDIT CIRCULAR NO.

95-005
April 27, 1995

TO : All Heads of Departments and Managing Heads of Government-

Owned and/or Controlled Corporations, Chiefs of Bureaus and Offices
of the National Government, Chief Accountants, Provincial
Governors, City/Municipal Mayors, Barangay Captains,
Provincial/City/Municipal/Barangay Treasurers, Auditors of National,
Local and Corporate Agencies and All Others Concerned.

SUBJECT : Submission to the Commission on Audit for review of Contracts.

Involving Auditing, Accounting and Related Services, including
Seminars or Workshops for Government Personnel on these topics

For the guidance of all concerned, quoted hereunder in full is the text of Section 17, Chapter 4, Subtitle B
of the Administrative Code of 1987 Executive Order No. 292):

"Sec. 17. GOVERNMENT CONTRACTS FOR AUDITING, ACCOUNTING AND RELATED SERVICES.  
1) No government agency shall enter into any contract with any private person or firm for services to
undertake studies and services relating to government auditing, including services to conduct, for a fee,
seminars or workshops for government personnel on these topics, unless the proposed contract is first
submitted to the Commission to enable it to determine if it has the resources to undertake such studies or
services. The Commission may engage the services of experts from the public or private sector in the
conduct of these studies.   2) Should the Commission decide not to undertake the study or service, it shall
nonetheless have the power to review the contract in order to determine the reasonableness of its costs."

In view thereof, it is hereby directed that all contracts involving the above-mentioned services be
submitted to this Commission for review.

For the information of all concerned, attached as Annex "A" is a list of seminars being offered by the State
Accounting and Auditing Development Office (SAADO) of the Commission on Audit. These seminars are
intended to update the knowledge of participants on government accounting, auditing and related
subjects and train them on how to apply their learning to actual job situations.

To avoid the inconvenience and delay of having to submit to COA for review contracts involving
seminars or workshops for government personnel on subjects which are offered in SAADO and prevent a
possible audit disallowance, it is advised that you send your employees concerned to SAADO at our main
office or its branches at the Southern Philippines Training Center (SPTC), Tacloban and Cebu for training
on those subjects. For courses not as yet offered by SAADO, it is advised that the proposed contracts
therefor be submitted first to this Commission for review pursuant to the above-cited law.

(Sgd.) CELSO D. GAÑGAN

 Chairman

 
(Sgd.) ROGELIO B. ESPIRITU (Sgd.) SOFRONIO B. URSAL
Commissioner Commissioner