Review the functions of COA

Recently, the Commission on Audit ordered the Development Bank of the Philippines officials and employees to return P175.85 million in overpayment of their Productivity-Based Bonus (PBB) in 2014 under EO 80, which encourages productivity performance in all government offices.

The overpayments to the 2,168 DBP personnel included the overpayment to the rank-and-file employees. The order to refund, however, excluded the amount of overpayment to the rank-and-filers, who received the bonuses as passive recipients under the PBB. The burden to refund the excess of P175.85 million fell on the approving bank officials since, in the course of performing their discretionary function of approval, they should have exercised utmost judiciousness to raise the borderline questions on legality before such a huge outlay of funds.

However, aren’t there enough COA staff in every government office or agency who are responsible for pre-auditing disbursements?

As the English proverb says: “It’s too late to shut the stable door after the horse has bolted.” COA is making these startling audit findings and conclusions after the fact. The anomalies could have been prevented by them in the first place. They are present in all government offices, including government-owned and controlled corporations (GOCCs), like the DBP. No disbursement should escape the scrutiny of the COA agent assigned.

Congress should review the effectiveness and adequacy of the scope of the COA’s authority and responsibility, including the technical qualifications of COA auditors. The red flags on transactions should be raised before the approval at certain levels of disbursement and their propriety and legality are well studied, including the recourse of seeking the opinion and imprimatur of the COA en banc, if necessary.

In private enterprises, no such indiscretion takes place nor passes the scrutiny of the approving officials, particularly the requirement of getting approval by the Board of Directors. – Marvel K. Tan, CPA, [email protected]