Reporters: (GROUP 5)
FAINZAN, Rose Anne
BALWEG, Dia Felice
COMMISSION ON AUDIT CIRCULAR NO. 85-55A
September 8, 1985
AMMENDED RULES AND REGULATIONS ON THE PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR EXTRAVAGANT EXPENDITURES OR USES OF FUNDS AND PROPERTY
a)To amplify the existing rules and regulations governing the prevention of IUEE expenditures or uses of government funds and property; b)To update fiscal controls to attain higher government efficiency and productivity; c)To set realistic limits and parameters for government spending.
Guidelines for the proper and effective implementation of “THE RULES”: 1.The operational definition of IUEE expenditures or uses of government funds and property shall not be exclusively used as basis for disallowing expenditure or uses of this nature. 2.The determination of IUEE expenditures or uses of government funds00r property as basis for disallowance shall be made by making reference to both the operational definitions and standards or both operational definitions and the list of situational cases as precedents of such expenditures or uses. 3.Should the case in point not fall under the standards or list of situational cases, the auditor shall elevate the matter to the Commission Proper in accordance with the procedures prescribed in 'THERULES". 4.Decisions of the Commission Proper and those promulgated by courts of law on IUEE expenditures or uses of government funds and property shall form part of the list of situational cases upon which audit action shall be based.
DECLARATION OF POLICIES:
1.The COA adheres to the policy that government fund and property should be fully protected and conserved, and that irregular, unnecessary, excessive or extravagant expenditures or uses of such funds and property should be prevented. 2.The service mission, size, systems, structure, strategy; skills, style, spirit and financial performance of a government agency are the primary considerations in determining whether or not their expenditures are irregular, incisor, excessive, or extravagant. 3.The rules and regulations that will be applicable to government corporations exercising proprietary functions and local government, in the exercise of their extravagant expenditures or uses of government funds and property shall take into consideration factors such as profitability of its operations, availability of resources - financial or otherwise to sustain their operations, their ability to operate on their own without appropriation or subsidy from the government, the industrial setting, the nature of their business operations, and other appropriate performance standards. 4.In line With COA's effort to be constantly responsive to the changing needs of government, an, updated list of situational cases of IUEE expenditures or uses of government funds and property in the three (3) government sectors- national, local and corporate- shall be drawn up from time to time to serve as reference for auditors and management in the performance of their official duties. 5.The formulation of these rules and regulations recognizes the interplay of certain factors, such as but not limited to urgency of need, capacity to pay, time of purchase, place of purchase, and availability of needed goods and services in the market. 6.It is recognized that the regulations for extravagant expenditures are largely determined by the level/rank of user, the nature of agency operations, agency missions, profitability of past operational performance and financial resources. As regards excessive expenditures, they shall be determined by place and origin of' goods, volume or quantity of purchase, service warranties, quality, special features of units purchased and the like. 7.It is recognized that generally accepted industry practices may be considered in the procurement of goods and services. 8.The Commission on...
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