PUBLIC SECTOR HR SYMPOSIUM
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TOWARDS A PEOPLE-CENTERED, CLEAN, EFFICIENT AND EFFECTIVE
GOVERNANCE
FISCAL ACCOUNTABILITY OF
PUBLIC OFFICIALS
ELIZABETH S. ZOSA Assistant Commissioner-General Counsel
Commission on Audit
July 25, 2019
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DISCUSSION OUTLINE
Nature of Public Office
Transparency and Accountability in
Government Operations
The Commission on Audit
Liability for Public Funds
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NATURE OF PUBLIC OFFICE
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Nature of Public Office
Public Office
a right and duty
conferred by law
public function
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Nature of Public Office
Public officer
takes part in the performance
of public functions
• “Sovereignty resides in the
people and all governmental
authority emanates from them.
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Nature of Public OfficeSection 1, Article XI, 1987 Constitution
Public office is a public trust. Public officersand employees must, at all times beaccountable to the people, serve them withutmost responsibility, integrity, loyalty, andefficiency; act with patriotism and justice,and lead modest lives.
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Nature of Public Office
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Nature of Public Office
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TRANSPARENCY AND ACCOUNTABILITY IN
GOVERNMENT OPERATIONS
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Transparency and Accountability in Government Operations
Transparency
Openness
Accessibility
Unrestricted
No secrets
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Transparency and Accountability in Government Operations
Fiscal Transparency
Openness to the public of government operations
Supported by detailed data and information
Data and information are accessible to the public
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Fiscal Transparency- key element of good governance
“In general, countries characterized by a relativelyhigh degree of fiscal transparency have exhibited greaterfiscal discipline and, in many instances, have been able toachieve a more robust economic performance thancountries with less transparent practices within the sameregion”
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(1998 IMF Paper, Kopitz & Kraig- Transparency in Government Operations)
Transparency and Accountability in Government Operations
A deliberate lack of fiscal transparency is often attributable to a government’s
attempt to escape public scrutiny of its behavior.
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Transparency and Accountability in Government Operations
Accountability- answerability for action or inaction
Includes enforcement by an institution that can sanction the offending party
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Transparency and Accountability in Government Operations
Accountability ensures that-
Actions and decisions of government officials are subject to oversight
o Sanctions for illegal/irregular acts
o Remedy for irresponsible actions
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Transparency and Accountability in Government Operations
Accountability ensures that-
government meets objectives
community needs are addressed
Public welfare is promoted
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Transparency and Accountability in Government Operations
State Policy on Responsibility for Government Resources (Sec 2- PD 1445)
It is the declared policy of the State that all resources of thegovernment shall be managed, expended or utilized in accordancewith law and regulations, and safeguarded against loss or wastagethrough illegal or improper disposition, with a view to ensuringefficiency, economy and effectiveness in the operations ofgovernment.
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Transparency and Accountability in Government Operations
Fiscal Responsibility
Sec 2- PD 1445
“The responsibility to take care that such policy is faithfully adhered to rests directly with the head of agency.”
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Transparency and Accountability in Government Operations
Sec 4 (4)- PD 1445
Fiscal responsibility shall, to the greatestextent, be shared by all those exercisingauthority over the financial affairs,transactions, and operations of thegovernment agency.
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Transparency and Accountability in Government Operations
Sec 101 (1), PD 1445
Every officer of any government agencywhose duties permit or require thepossession or custody of government fundsor property shall be accountable thereforand for the safekeeping thereof inconformity with the law.
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Transparency and Accountability in Government Operations
Sec 4.2, Rules & Regulations on Settlement of Accounts
Public officers, although not accountable forgovernment funds by the nature of theirduties, may be held accountable thereforthrough their participation in the use orapplication thereof
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Transparency and Accountability in Government Operations
THE COMMISSION ON AUDIT
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COAConstitutional Mandate
(Article IX-D, Sec 2(1)
The COA shall have the power, authority and duty to examine,audit, and settle all accounts pertaining to the revenue andreceipts of, and expenditures or uses of funds and propertyowned or held in trust by or pertaining to the Government orany of its subdivisions, agencies or instrumentalities, includinggovernment-owned or controlled corporations xxx
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Sec 25 (1), PD 1445
Statement of Objectives- In keeping with itsconstitutional mandate, the Commission adheres to thefollowing primary objectives:
(1) To determine whether or not the fiscalresponsibility that rests directly with the head of thegovernment agency has been properly and effectivelydischarged xxx.
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COA
COAMISSION
To ensure accountability for public resources,promote transparency, and help improvegovernment operations, in partnership withstakeholders, for the benefit of the Filipinopeople.
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COAAudit function
Supreme Audit Institution (SAI)
Exclusive external auditor
Findings take precedence over result of audit of other bodies
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COAAudit function
All government accounts
oRevenues and receipts
Funds and property
o Expenditures and uses
Funds and property
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COAAudit function
Auditees
Government agencies
NGA-314 + E/H Schools, courts
LGU-1,698 + 42,000 barangays
GOCC- 136 + Water Districts
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COAAuditees
Non-government bodies Private entities (Sec 29, PD 1445)
Levy
Subsidy, gov’t equity
Public utilities (Sec 38, PD 1445)
Rate-fixing
Franchise tax
Non-government organizations (Secs 26, 29, PD 1445)
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COA
COAAudit function Examine )
Audit ) All accounts
Settle )
In accordance with laws and regulations to determine
Legality
Propriety32Zosa-CSC HR Presentation, July25, 2019
COAOther functionsAdjudication
Rule-making
Fraud investigation and audit
Keeping of accounts
Custody of financial records
Recommendatory function to improve government operations- performance evaluation and audit
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COAFraud Investigation and Audit
Based on fraud complaints or motu proprio
Public sector spending
Contract management
Conflict of interest
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COAFraud Investigation and Audit
Preliminary work
Conduct Audit survey
Evaluate regular audit finding
Determine if full-blown investigation is
necessary
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COAFraud Audit and Investigation
Fraud Audit Report - to Ombudsman for filing of case
Specific acts committed
Laws, rules, regulations violated
Persons liable
Affidavit of auditors
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COAFraud Audit and Investigation
Ombudsman investigation and prosecution
Pleadings - COA Prosecution & Litigation Office
Auditor is prosecution witness
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COAPerformance Evaluation and Audit
Programs, projects, activities
To determine economy, efficiency and effectiveness
Bench-marking
Policy formulation
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COAPerformance Evaluation and Audit
Performance Audit Reports
Disaster Risk Preparedness
Solid Waste Management
Pantawid Pamilyang Pilipino Program
Health Facilities Enhancement Program
School-Based Immunization Program
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LIABILITY FOR
PUBLIC FUNDS
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Test of expenditures
Questions to ask:
Is public money spent legally?
Is the process for spending it properly managed?
Liability for Public Funds
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Sec 105 (2), PD 1445
Every officer accountable for governmentfunds shall be liable for all losses resultingfrom the unlawful deposit, use or applicationthereof and for all losses attributable tonegligence in the keeping of the funds
Liability for Public Funds
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Sec 103, PD 1445
Expenditures of government funds or uses ofgovernment property in violation of law orregulations shall be a personal liability of theofficial or employee found to be directlyresponsible therefor
Liability for Public Funds
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Disallowance of expenditures
Disapprove disbursement
Require refund to the government
May include filing of criminal/administrative charges
Liability for Public Funds
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Disallowable Expenditures
I- llegal
I- rregular
U- nnecessary
U- nconscionable
E- xcessive
E- xtravagant
Liability for Public Funds
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Persons liable- Criteria
Nature of transaction
Duties and responsibilities of officer
Participation in the transaction
Liability for Public Funds
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Liability for Public Funds
Nature
Civil- refund of amount
Solidary or joint and several- government may proceed against one, or some or all of the persons liable
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Liability for Public Funds
Why solidary?
The law provides for solidarity
•Sec 43, Ch 5, Book 6, RAC
•Section 49, PD 1177
•Sec 347, RA 7160
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Liability for Public Funds
Every expenditure or obligation authorized or incurred in violation of the provisions of this Code or of the general and special provisions contained in the annual General or other Appropriations Act shall be void. Every payment made in violation of said provisions shall be illegal and every official or employee authorizing or making such payment, or taking part therein, and every person receiving such payment shall be jointly and severally liable to the Government for the full amount so paid or received.
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