COAST GUARD INTERNAL AUDIT COMPENDIUM

2021 Edition

PREFACE

This Coast Guard Internal Audit Compendium 2021 Edition provides relevant
guidelines and policies on government auditing and procurement processes. Its
objective is to provide ready references for PCG Internal Auditors, Logistics and
Procurement Officers or any concerned personnel engaged in Auditing and
Accounting.

Moreover, this compendium contains a plethora of information about CGIA

including legal bases of its creation and mandates. Likewise, this compendium
includes COA circulars, policies and PCG standard operating procedures and
relevant memoranda on procurement process. Furthermore, it includes guidelines
issued by Government Accountants, Budget Officers, Treasurers and Auditor’s
Forum (GABOTAF).

CGIA will update this document periodically to attune with new policies and
issuances.
PAMBANSANG PUNONGHIMPILAN TANOD BAYBAYIN NG PILIPINAS
(National Headquarters Philippine Coast Guard)
COAST GUARD INTERNAL AUDIT
139 25th Street, Port Area
1018 Manila

LIST OF CGIA PERSONNEL

OFFICERS
CG CDR ROXANNE A NATIVIDAD O-0548
CG LTJG PRECIOUS LEANELLIE U GUERRERO O-0794
CG LTJG FRANCE O SAMANIEGO O-1040
CG ENS HUBERT EMIL A HERNANDEZ O-1279
CG ENS JAM MARIE C CASTRO O-1296
CG P/ENS BIL E DIMZON P-1415
CG P/ENS CARLO B GARCENILA P-1443
NON-OFFICERS
CG PO1 Roshiel A Obeñita 003800
CG PO3 Jairus G Narvas 007155
CG PO3 Jella C Bautista 007392
CG PO3 Febersson E Buensalido 007560
CG SW1 Sheinne Jasmin M Magdaluyo 007620
CG SW1 Daryl E Arcenal 008108
CG SW2 Gian Jesselle M Castillo 010379
CG SW2 Anastacia T Batiil 010417
CG SN2 Cintan M Sintik 011223
CG SN2 Aldrin A Escoses 011462
CG SW2 Kim Aira B Brecia 011752
CG SW2 Edmalyn A Immak 012854
CG SW2 Kaycee M Jamen 012860
CG ASN Nasrun U Hassan 013966
CG ASN Mark Jeffrey B Rodriguez 013980
CG ASW Geraldine P Puansing 014145
CG ASW Zhannine Paula S Fernandez 017363
CG ASW Jessica C Contreras 017449
CGNO Patrick John S Alapre
CGNO Jimboy S Gran
CGNO Jun Rey S Minorteo
CGNO Kin Jireh U Pepino
CGNO Melva T Balen
CGNO Queenalyn P Mahilom

NON-UNIFORMED PERSONNEL
Ms. Kristine S Prudenciado CE
Ms. Arabelle R De Roca CE
 TABLE OF CONTENTS
SUBJECT PAGE

ABOUT COAST GUARD INTERNAL AUDIT

HPCG Circular “CGIA Charter” – The CGIA has finally found its true Functions and 1-9
its role in the Command

R.A. 3456 – An Act Providing for the Creations 10-11

, Organization and Operation of Internal Audit Services in all Departments, Bureaus
and Offices of the National Government of 1962
- R.A. No. 4177 - An Act to Amend Section Two, Three and Four of R.A No.
Three Thousand Four Hundred Fifty-Six, Known as "Internal Auditing Act of
1962"
Legal Bases of Internal Audit or the Chronological Summary of Issuances on the 12-14
Organization, Functions, Activities and Staffing on Internal Audit

Administrative Order No. 278 dated 28 April 1992 – Directing the Strengthening of 15-18
the Internal Control Systems of Government Offices, Agencies, GOCC, Including
Government Financial Institutions and LGU, and their Operations.
- Under Sec. 2.0 Detached CGIA from routine operations particularly conduct
Pre-Audit, Inventory, and Process Vouchers.

DBM Circular Letter No. 2020-8 dated 26 May 2020 “Revised Philippine Government 19-29
Internal Audit Manual (RPGIAM)”
- List of Non-Internal Audit functions

Code of Ethics of IASPPS – Stating that the Internal Auditors (CGIA) shall not 30-32
participate in any activity or relationship to maintain its objectivity.

CPCG Approved CGIA Memorandum dated 08 August 2019 “Exclusion of CG 33-36

Internal Audit as Observer”

CPCG Approved CGIA Memorandum dated 27 September 2019 “Exclusion of CG 37-40

Internal Audit as Designated Member of PCG Disposal Committee and Contract
Termination Review Committee (CTRC)”

CGIA ISSUANCES

NHQ-PCG/CGIA Memorandum dated 30 July 2018 – Guidelines for the Designated 41

Logistics Officer

NHQ-PCG/CGIA Memorandum dated 23 August 2018 – Guidelines for All 42-43

Accountable Officers

NHQ-PCG/CGIA Memorandum dated 11 October 2019 – Guidelines and 44

Procedures on releasing COA Documents

NHQ-PCG/CGIA Memorandum CircularNo. 11-19 dated 27 November 2019 45-50

“Guidelines and Procedures for the Issuance of Coast Guard Internal Audit
Observation Memorandum (CGIAOM) and Issuance of AQ, AOM, NS, ND, issued by
COA to be transmitted by CGIA”

NHQ-PCG/CGIA Circular No. 06-21 dated 12 April 2021 “Revised Guidelines on 51-57
Handling Client Feedback”
NHQ-PCG/CGIA Standing Operation Procedure No. 06-21 dated 29 March 58-67
2021“Internal Auditor Badge”

NHQ-PCG/CGIA Standing Operation Procedure No. 14-21 dated 27 August 2021 68-78
“Revised Guidelines on Internal Auditor Badge”

CGIA Outgoing Dispatch CITE CGIA-0220-001 dated 19 February 2020 Re: Cash 79
Advance of Subsistence Allowance

CGIA Outgoing Dispatch CITE CGIA-0220-002 dated 21 February 2020 Re: 80

Correction to CITE CGIA-0220-001
- Only the designated Course Directors/Asst. Course Directors of Basic
Training Courses are allowed to Cash advance the Subsistence Allowance of
trainees. Mess Officers of vessel are not allowed to Cash Advance by the
Subsistence Allowance of personnel assigned aboard ship.

CGIA Outgoing Dispatch CITE CGIA-1120-001 dated 09 November 2020 Re: COA 81-83
ISSUANCES: AQ, AOM, NS, NC, ND, NFD

CGIA Outgoing Dispatch CITE CGIA-0121-003 dated 29 January 2021 Re: 84-86
Reminder on the Guidelines for Venue, Food and Beverages

CGIA Outgoing Dispatch CITE CGIA-0221-001 dated 10 February 2021 Re: Briefing 87-89
on Accountable Officers

OTHER HPCG ISSUANCES

SOP Nr. 01-18 dated 01 February 2018 – Guidelines on the Granting Utilization and 90-96
Liquidation of Special Cash Advance

CPCG Memorandum dated 03 April 2019 – “Policy on the submission of Purchase 97

Orders (POs), Work Orders (WOs), Contracts, MOUs and MOAs and Related
Documents”

- All concerned Units are directed to submit to the office of the PCG Resident
Auditor a copy of perfected contracts, purchases orders and work orders
within five (5) working days upon approval together with the supporting
documents in compliance with the COA Circular No. 2009-001 dated 12
February 2021

CPCG Memorandum dated 03 April 2019 – “Policy on Submission of Property 98

Transfer Reports (PTRs) and Property Cards (PCs)”

- All concerned units shall submit a copy of All Property Transfer Reports
(PTRs) and Property Cards (PCs) to the Accounting Service Office (ASO) and
Office of the Supply Accountable Officer (SAO) in case of a transfer/donation
is made from other government entity to your unit for proper recording and
accounting.

NHQ-PCG SOP Nr. 08-21 dated 10 May 2021 “Comprehensive Guidelines on the 99-108
use of the Cash Advance System”

CPCG Memorandum dated 22 April 2021 – “Delegation of Authority to Conduct 109-114

Procurement Activities for Technical and Special Units, PCG Districts, and
Major/Functional Commands”
CPCG Memorandum dated 19 May 2021 – “Guidelines on the Conduct of 115-119
Procurement Activities for NHQ-PCG Staffs/Special Units”

RELATED LEGAL BASES AND ISSUANCES

Philippine Constitution 1987 (Creation of Commission on Audit) - Powers of the COA 120-121

COA Circular No. 97-002 Dated 10 February 1997“Restatement with amendments of 122-130
the rules and regulations on the granting, utilization and liquidation of cash advances
provided for under COA Circular No. 90-331 dated May 3, 199

COA Circular No. 2009-006 Dated 15 September 2009 “Prescribing the use of the 131-178
Rules and Regulations on Settlement of Accounts”

COA Circular No. 2012-001 dated 14 June 2012 “Prescribing the Revised 179-236
Guidelines and Documentary Requirements for Common Government Transactions

COA Circular No. 2012-003 dated 29 October 2012 Updated Guidelines for the 237-264
Prevention and Disallowance of Irregular, Unnecessary, Excessive, Extravagant and
Unconscionable Expenditures

COA Circular No. 2017-001 dated 19 June 2017 “Reimbursement of Expenses not 265-266
Requiring Official Receipts”

Treasury Circular No. 02-2009 dated 06 August 2009 “Revised Omnibus 267-283
Regulations Governing the Fidelity Bonding of Accountable Public Officers pursuant
to the Public Bonding Law (Sections 313-335 chapter 15, Revised Administrative
Code of 1917)”

OTHER DISSEMINATIONS AND NICE-TO KNOW

Common findings issued by COA 284-306

What is Audit Opinion and its Type 307-310

Frequent Ask Questions 311-326

Possible Defense/Justification against Disallowance 327-328

4 Proven, Effective Ways to Ensure Your Employees/Accountable Officers Will 329-332

Liquidate their Cash Advances (CAs)

7 Basic Rules in Procurement and Disbursement 333

10 Easy Ways to Avoid Receiving Audit Observation Memorandum 334

10 Internal Control System that COA wished all Government Agencies Have 335-336

10 Things You Need To Know About COA’s Policy On Petty Cash 337-338

30+ Examples of Irregular Financial Transaction or Uses of Government Funds and 339-343
Properties, According to COA
Page 1 of 343
Page 2 of 343
Page 3 of 343
Page 4 of 343
Page 5 of 343
Page 6 of 343
Page 7 of 343
Page 8 of 343
Page 9 of 343
Page 10 of 343
Page 11 of 343
Page 12 of 343
Page 13 of 343
Page 14 of 343
Page 15 of 343
Page 16 of 343
Page 17 of 343
Page 18 of 343
Page 19 of 343
Page 20 of 343
Page 21 of 343
Page 22 of 343
Page 23 of 343
Page 24 of 343
Page 25 of 343
Page 26 of 343
Page 27 of 343
Page 28 of 343
Page 29 of 343
Page 30 of 343
Page 31 of 343
Page 32 of 343
Page 33 of 343
Page 34 of 343
Page 35 of 343
Page 36 of 343
Page 37 of 343
Page 38 of 343
Page 39 of 343
Page 40 of 343
Page 41 of 343
Page 42 of 343
Page 43 of 343
Page 44 of 343
Page 45 of 343
Page 46 of 343
Page 47 of 343
Page 48 of 343
Page 49 of 343
Page 50 of 343
Page 51 of 343
Page 52 of 343
Page 53 of 343
Page 54 of 343
Page 55 of 343
Page 56 of 343
Page 57 of 343
Page 58 of 343
Page 59 of 343
Page 60 of 343
Page 61 of 343
Page 62 of 343
Page 63 of 343
Page 64 of 343
Page 65 of 343
Page 66 of 343
Page 67 of 343
Page 68 of 343
Page 69 of 343
Page 70 of 343
Page 71 of 343
Page 72 of 343
Page 73 of 343
Page 74 of 343
Page 75 of 343
Page 76 of 343
Page 77 of 343
Page 78 of 343
Page 79 of 343
Page 80 of 343
Page 81 of 343
Page 82 of 343
Page 83 of 343
Page 84 of 343
Page 85 of 343
Page 86 of 343
Page 87 of 343
Page 88 of 343
Page 89 of 343
Page 90 of 343
Page 91 of 343
Page 92 of 343
Page 93 of 343
Page 94 of 343
Page 95 of 343
Page 96 of 343
Page 97 of 343
Page 98 of 343
Page 99 of 343
Page 100 of 343
Page 101 of 343
Page 102 of 343
Page 103 of 343
Page 104 of 343
Page 105 of 343
Page 106 of 343
Page 107 of 343
Page 108 of 343
Page 109 of 343
Page 110 of 343
Page 111 of 343
Page 112 of 343
Page 113 of 343
Page 114 of 343
Page 115 of 343
Page 116 of 343
Page 117 of 343
Page 118 of 343
Page 119 of 343
Page 120 of 343
Page 121 of 343
Page 122 of 343
Page 123 of 343
Page 124 of 343
Page 125 of 343
Page 126 of 343
Page 127 of 343
Page 128 of 343
Page 129 of 343
Page 130 of 343
Page 131 of 343
Page 132 of 343
Page 133 of 343
Page 134 of 343
Page 135 of 343
Page 136 of 343
Page 137 of 343
Page 138 of 343
Page 139 of 343
Page 140 of 343
Page 141 of 343
Page 142 of 343
Page 143 of 343
Page 144 of 343
Page 145 of 343
Page 146 of 343
Page 147 of 343
Page 148 of 343
Page 149 of 343
Page 150 of 343
Page 151 of 343
Page 152 of 343
Page 153 of 343
Page 154 of 343
Page 155 of 343
Page 156 of 343
Page 157 of 343
Page 158 of 343
Page 159 of 343
Page 160 of 343
Page 161 of 343
Page 162 of 343
Page 163 of 343
Page 164 of 343
Page 165 of 343
Page 166 of 343
Page 167 of 343
Page 168 of 343
Page 169 of 343
Page 170 of 343
Page 171 of 343
Page 172 of 343
Page 173 of 343
Page 174 of 343
Page 175 of 343
Page 176 of 343
Page 177 of 343
Page 178 of 343
Page 179 of 343
Page 180 of 343
Page 181 of 343
Page 182 of 343
Page 183 of 343
Page 184 of 343
Page 185 of 343
Page 186 of 343
Page 187 of 343
Page 188 of 343
Page 189 of 343
Page 190 of 343
Page 191 of 343
Page 192 of 343
Page 193 of 343
Page 194 of 343
Page 195 of 343
Page 196 of 343
Page 197 of 343
Page 198 of 343
Page 199 of 343
Page 200 of 343
Page 201 of 343
Page 202 of 343
Page 203 of 343
Page 204 of 343
Page 205 of 343
Page 206 of 343
Page 207 of 343
Page 208 of 343
Page 209 of 343
Page 210 of 343
Page 211 of 343
Page 212 of 343
Page 213 of 343
Page 214 of 343
Page 215 of 343
Page 216 of 343
Page 217 of 343
Page 218 of 343
Page 219 of 343
Page 220 of 343
Page 221 of 343
Page 222 of 343
Page 223 of 343
Page 224 of 343
Page 225 of 343
Page 226 of 343
Page 227 of 343
Page 228 of 343
Page 229 of 343
Page 230 of 343
Page 231 of 343
Page 232 of 343
Page 233 of 343
Page 234 of 343
Page 235 of 343
Page 236 of 343
Page 237 of 343
Page 238 of 343
Page 239 of 343
Page 240 of 343
Page 241 of 343
Page 242 of 343
Page 243 of 343
Page 244 of 343
Page 245 of 343
Page 246 of 343
Page 247 of 343
Page 248 of 343
Page 249 of 343
Page 250 of 343
Page 251 of 343
Page 252 of 343
Page 253 of 343
Page 254 of 343
Page 255 of 343
Page 256 of 343
Page 257 of 343
Page 258 of 343
Page 259 of 343
Page 260 of 343
Page 261 of 343
Page 262 of 343
Page 263 of 343
Page 264 of 343
Page 265 of 343
Page 266 of 343
Page 267 of 343
Page 268 of 343
Page 269 of 343
Page 270 of 343
Page 271 of 343
Page 272 of 343
Page 273 of 343
Page 274 of 343
Page 275 of 343
Page 276 of 343
Page 277 of 343
Page 278 of 343
Page 279 of 343
Page 280 of 343
Page 281 of 343
Page 282 of 343
Page 283 of 343
Page 284 of 343
Page 285 of 343
Page 286 of 343
Page 287 of 343
Page 288 of 343
Page 289 of 343
Page 290 of 343
Page 291 of 343
Page 292 of 343
Page 293 of 343
Page 294 of 343
Page 295 of 343
Page 296 of 343
Page 297 of 343
Page 298 of 343
Page 299 of 343
Page 300 of 343
Page 301 of 343
Page 302 of 343
Page 303 of 343
Page 304 of 343
Page 305 of 343
Page 306 of 343
Page 307 of 343
Page 308 of 343
Page 309 of 343
Page 310 of 343
Page 311 of 343
Page 312 of 343
Page 313 of 343
Page 314 of 343
Page 315 of 343
Page 316 of 343
Page 317 of 343
Page 318 of 343
Page 319 of 343
Page 320 of 343
Page 321 of 343
Page 322 of 343
Page 323 of 343
Page 324 of 343
Page 325 of 343
Page 326 of 343
Page 327 of 343
Page 328 of 343
Page 329 of 343
Page 330 of 343
Page 331 of 343
Page 332 of 343
Page 333 of 343
Page 334 of 343
Page 335 of 343
Page 336 of 343
Page 337 of 343
Page 338 of 343
Page 339 of 343
Page 340 of 343
Page 341 of 343
Page 342 of 343
Page 343 of 343