Terms Description/Definition Persons Liable

Responsibility The duty of head of office to ensure

accomplishment of functions of office and that
subordinates perform their duties properly

The state of being unswerable for discharge of

duty
Accountability Answerability of public officer whose duties permit
or require the possession of custody of public fund
and property (PFP)
Liability Personal obligation arising from;

a. Disallowance or charge during post audit

b. Examination of AO’s cash accounts
c. Commission of illegal or improper act or
omission to do the act required
d. May result to criminal, administrative and/or
civil penalty
PERSON LIABLE Adjudged personally liable for disallowance or
charge. Liability depends on individual’s
 participation in the transaction
AUDIT  Observation for financial or operation
OBSERVATION deficiencies which do not involve pecuniary
MEMO loss
 To require to submit documents of other
information for auditor to form opinion
 Not a decision as it does not finally dispose of
an issue
 Addressed to agency head and officers
concerned
 Must be replied to within 15 days from
receipt
 Observation deemed accepted if no reply is
received and will be included in ML
 If documents or information not submitted,
may result to NS/ND/NC
 ATL should inform management of reply in
writing
SUSPENSION  Deferment of action to debit/credit the
account/accountable officer’s account
pending compliance with certain
requirements
 Deferment of action to allow or disallow in
audit a transaction

 Informs about auditor’s requirement on

transactions or accounts which could have
been settled except for some deficiencies like
lack of supporting documents or signatures

 For transactions or accounts the

legality/propriety of which the auditor
doubts but which he may later allow
satisfactory or valid justification

 Addressed to agency head and accountant

and served on PL

 States the amount suspended, the reason

therefor and the justification/explanation
required to settle it

 Must be settled within 90 days from receipt

 Matures into NC/ND if not justified or settled

 Maturity not automatic, NC/ND issued for

 purposes of reckoning 6 month period
CHARGE  Inclusion or addition to accountability Measured by the
pertaining to assessment, appraisal or individual participation
collection of revenues and receipts and involvement of
 Issued for under appraisals, collection not officers whose duties
properly assessed, assessment not collected require appraisal,
fully, collections not fully remitted or may assessment, collection
not have been recorded
 Decision disallowing transaction or charging
PL for deficient revenue
DISALLOWANCE  Disapproval of credit to an account/AO’s a. Those who
accountability due to non-compliance with certified as to the
law or regulations. necessity, legality
and availability of
 Outright disallowance of unlawful or funds or
improper expenditure or transaction adequacy of
documents
 For IIEEEE transactions and for NS that has
b. Public office ers
matured into disallowance
and private
 Addressed to agency head and accountant persons who
and served on PL conspired with
them are
 States the amount disallowed, reason solidarily liable
 therefor, laws, rules and regulations violated c. Payee where
and the PL ground for
disallowance is
 Must be settled or appealed within 6 months failure to submit
documents and
auditor is
convinced that
the transaction
did not occur or
has no basis in
fact
d. Those who
approved
payment
NOTICE OF  A written notification that a decision of the
FINALITY OF COA has become final and executory
DECISION
COA ORDER OF  Written instruction to withhold payment of
EXECUTION salary and other money due to PL for
settlement of liability
 Issued if PL did not settle voluntarily
NSSDC  Written notice that NS/ND/NC has been
settled