1. Fraud Audit in the Philippines
Director Alexander B. Juliano
Fraud Audit and Investigation Office
Philippine Supreme Audit Institution

2. Historical Background of COA
Spanish Rule
Royal Audencia
Tribunal de Cuentas
American Regime
General Auditing Office
Headed by Auditor General

3. Historical Background of COA
1973 Constitution
Commission on Audit
Collegial leadership
1987 Constitution
With expanded powers

4. Constitutional & Statutory Bases
Section 2, Article IX-D, 1987 Constitution
P.D. 1445
E.O. 292
GAA

5. Set up accounting system Preserve vouchers & supporting papers
Section 2, Article IX-D, 1987 Constitution
Examine, audit, settle all accounts
Keep general accounts
Set up accounting system
Preserve vouchers & supporting papers

6. Promulgate rules and regulations
Section 2, Article IX-D, 1987 Constitution
Promulgate rules and regulations
Prevent/disallow IIUUEE uses of public funds and properties

7. Structure of COA Assistant Commissioners Commission Proper
Chairman and two Commissioners
7-year staggered term
One member retires every 2 years
Assistant Commissioners
Policy making group with oversight function over audit sector

8. Structure of COA Central Office
Audit sector for local, national, corporate sectors
Headed by Director
Specialized audit sectors
FAIO
SAO

9. Structure of COA Special Audit Office Management services
Systems audit
Government-wide and sectoral performance audit

10. Structure of COA Fraud Audit and Investigation Audit Office
Created in Dec. 2008
Forensic audit nationwide in scope
Internal affairs investigation

11. Structure of COA Regional Offices 15 ROs Headed by Regional Directors
Replicates sectors in CO except SAO and FAIO

12. Specific Powers of COA Rule making
Exclusive authority to promulgate accounting and auditing rules and regulations

13. Specific Powers of COA Examining
Books, papers, docs in custody of govt
Purpose is to ascertain what should be collected is actually collected

14. Specific Powers of COA Visitorial NGO subsidized by govt
Entities required to pay levies or govt share
Those partly funded by donations thru govt
NGO whose loans are guaranteed by govt

15. Specific Powers of COA Quasi-legislative
R/R for prevention and disallowance of IIUUEE
Accounting and auditing R/R

16. Specific Powers of COA Quasi-judicial
Render decision on original and appealed cases

17. Specific Powers of COA Settle claims between government agencies
Order submission of papers re: govt obligations
Includes title to property purchased by govt

18. Specific Powers of COA
Compromise or release claim or settled liability to any govt agency not > P10,000
Presidential approval – not > P100,000
Congressional – over P10,000

19. Specific Powers of COA Retention
Withhold payment to any person indebted to govt
Direct his estate to be applied to debt
(applies to govt personnel; no power over private persons)

20. Specific Powers of COA Examine public utilities
Fixing of rates or every nature
Determining franchise taxes
Examine under oath official or employee of public utility

21. Specific Powers of COA Contempt powers Investigatory and inquisitorial
Compulsory processes
Contempt powers
Violation of any final and executory decision, order or ruling

22. Major Types of Audit Regular Special Audit Forensic Audit
By resident auditor and staff (under audit sector)
Special Audit
By SAO auditors
Forensic Audit
By forensic auditors (under FAIO)

23. Sec. 20, PD 1445 (Audit Code) – each agency shall have auditing unit
Regular Audit
Sec. 20, PD 1445 (Audit Code) – each agency shall have auditing unit
Year-round audit
Head is CPA, lawyer or accounting graduate

24. Performs financial, compliance, value for money audit Employs RBAA
Regular Audit
Performs financial, compliance, value for money audit
Employs RBAA
ATAP for small entities
To FAIO when red flags appear

25. BY FAIO CPAs, lawyers, engineers
Forensic Audit
BY FAIO CPAs, lawyers, engineers
Complaints from all sources or motu proprio
Nationwide coverage

26. Involves high ranking personnel With great impact on public
Forensic Audit
Criteria
Amount significant
Involves high ranking personnel
With great impact on public

27. Relationship with Oversight Bodies
Regular audit annual report for local, corporate and NGA to OP and Congress
Aid to budget preparation and deliberation
Aid to remedial legislation

28. Relationship with Oversight Bodies
Fraud audit report to:
Auditee as a matter of right
OMB for criminal, civil, admin
CSC/management for disciplinary action if without criminal aspect
AMLC and BIR per their mandate

29. COA Decisions and Reports
Decisions appealable directly to Supreme Court for judicial review
Forensic reports with criminal aspect filed before Sandiganbayan
Conviction appealable to Supreme Court