COMMISSION ON AUDIT MEMORANDUM NO.

90-643 March 19, 1990

TO : All Directors/Officers-in-Charge, Heads of Auditing Units and All Others

Concerned.

SUBJECT : Custodianship of the original copy of a contract entered into by the Government.

This memorandum is issued to clarify the question regarding the custodianship of the
original copy of a contract entered into by a government agency.

Section 39 (1) of Presidential Decree 1445 provides:

"The Commission shall have the power, for purposes of inspection, to

require the submission of the original of any order, deed, contract or other
documents under which any collection of, or payment from, government funds
may be made, together with any certificate, receipt or other evidence in
Connection therewith. If an authenticated copy is needed for record purposes,
the copy shall upon demand be furnished."

Section 43 (4) of the same Decree conformably, with the aforequoted section, provides:

"The auditors in all auditing units shall have the custody, and be
responsible for the safekeeping and preservation of paid expense vouchers,
journal vouchers, stubs of treasury warrants or checks, reports of collections and
disbursements and similar documents together with their respective supporting
papers, under regulations of the Commission."

It is evident from these provisions that the original copy of a contract entered into by a
government agency shall remain in its custody. If needed, the Auditor may request the
production of said original copy for inspection in order to facilitate the audit thereof.

Conformably thereto, a signed duplicate of the contract or certified copy duly

authenticated may be submitted together with the disbursement voucher for audit and
safekeeping by the Auditor.

Be guided accordingly.

(SGD.) EUFEMIO C. DOMINGO, Chairman