COMMISSION ON AUDIT CIRCULAR NO.

87-269 April 8, 1987

TO

SUBJECT:

The Provincial Governor, Provincial Auditor and Provincial Treasurer of Surigao

del Sur, Municipal Mayors and Municipal Treasurers of Bislig, Hinatuan, Lingig
and Tagbina, all of the Province of Surigao del Sur; and All Others Concerned.
Defining responsibilities and working relationship in the operationalization of the
Circuit Municipal Audit for Surigao del Sur, with station in Bislig, same province.

PURPOSE
A Circuit Municipal Audit Unit (CMAU) is created in Surigao del Sur to augment the staff
of the Provincial Auditor's Office thereat in response to the expanded operations and the
increasing complexity of the financial transactions of the local government units concerned, as
well as to bring the audit service closer to the affected municipalities. The CMAU is also
intended to cope with the extended or expanded coverage of auditing services.
More specifically, this Circular is issued to:
1.

Define the responsibilities and working relationship between the Provincial

Auditor's Office and CMAU towards a more coordinated, efficient and affected
municipalities and barangays.

2.

Set up the operationalization of a CMAU based in Bislig, Surigao del Sur.

ORGANIZATION AND STAFFING OF THE CMAU

A CMAU is hereby established for the province of Surigao del Sur with official station at
Bislig, comprising the following
municipalities:
1.
2.
3.
4.

Bislig
Hinatuan
Lingig
Tagbina

Upon recommendation of the Provincial Auditor of Surigao del Sur, the following COA
personnel shall compose the Circuit Municipal Audit Unit:
Name and Position

Designation

1.

Ms. MERILYN E. DURANO

State Auditor I

Acting Head

2.

Mr. HEMOCRATES DIGOL

State Auditing Examiner

Staff Member

MAINTENANCE OF THE CMAU

The Provincial Auditor of Surigao del Sur shall make representations with the Municipal
Mayors and other authorities concerned in the aforementioned municipalities towards the
furnishing of suitable office space, including records storage, space equipment, supplies and
other maintenance requirements of the CMAU.
The head of the CMAU is
hereby authorized to collect representation and
transportation allowances at P625.00 each, subject to the approval of the Administrative
Office of the Commission in accordance with existing policy.
Personnel assigned to CMAU are likewise authorized
to receive per diems
corresponding to the first thirty (30) days in their new assignment, subject to the conditions
prescribed under COA Resolution No. 80-139 dated July 24, 1980.
RESPONSIBILITIES OF THE CIRCUIT MUNICIPAL AUDIT UNIT
The CMAU herein established shall be responsible for the audit of all accounts and
transactions affecting revenues, receipts, expenditures and uses and application of funds and
property of the municipalities and barangays under its audit jurisdiction, including the audit of
the Municipal Development Fund. Such audit responsibility shall include:
1.

Issuance of the Certificate of Settlement and Balances and the determination of

persons liable for disallowances.

2.

Examination of the Annual Audit Report and other audit reports required.

3.

Examination of the cash and accounts of municipal, barangay, and national

accountable officers.

4.

Review and evaluation of contracts, purchase/job/letter orders, within the

authority levels prescribed under COA Memorandum No. 87-480 dated March
18, 1987.

5.

Inspection of deliveries of supplies and inspection/evaluation of infrastructure

and other construction
projects, subject to the
provisions
of COA
Memorandum No. 87-480 dated March 18, 1987.

6.

Witnessing of inspection, destruction or sale at public auction of unserviceable

property, subject to the provisions of COA Circular No. 81-115-A dated February
2, 1981, as amended.

7.

Witnessing of opening of bids.

8.

Verification of the certificate as to appropriation and availability of funds to

cover proposed contracts. (Section 86 of P.D. 1445).

9.

Verification of reports of fuel consumption; leave cards of audited personnel;

schedules of unliquidated cash advances; aging of payables and aging of
receivables; certification to accounts payable.

10.

Verification of weekly cash reports.

11.

Processing and evaluation for transmittal to the Provincial Auditor, of:

-

Requests for compromise claims (Sec. 36, PD No. 1445)

Requests for relief from accountability (Sec. 73, Ibid.)

12.

Authorizing the transfer of funds from one officer to another (Sec. 75, PD No.
1445).

13.

Approval of Committee findings on the disposition of funds and property held by

deceased, incapacitated, absconding or superseded accountable officer (Sec.
78, PD No. 1445).

14.

Pre-Audit of cash advances, first salaries/wages and the like as mandated

under COA Circular No. 86-257, as amended.

15.

Follow-up of implementation of recommendations embodied in the Audit

Reports; submission of reports on the status of the implementation as required
by regulations.

16.

Supervision of the implementation of the barangay accounting system.

17.

Preparation and submission of the barangay general audit report pursuant

to Section 0903 of the New Barangay Accounting Manual, and Sec. 107(3),
B.P. 337.

18.

Approval of private sale of unserviceable property when the book value of

property to be disposed of is P50,000.00 or less (COA Memorandum No. 82313, August 17, 1982.

19.

Processing and approval of purchase requests. (Sec. 7, P.D. 526).

20.

Audit of Municipal Development Funds (MDF) which shall be subject to COA

Circular No. 86-257, dated March 31, 1986, as amended.

Generally, the CMAU shall assume the audit responsibilities of the Provincial Auditor's
Office over the municipalities and barangays under its jurisdiction, and the CMAU Head shall
sign all reports, documents, records and papers pertaining to such audit responsibilities,
except in cases where:
1.

The approving/signing authority is vested by law in the Provincial Auditor,

e.g., approval of the time deposits of municipalities (Sec. 11, PD No. 477).

2.

The approving/signing authority is not within his level of authority as

prescribed by the Commission on Audit e.g., inspection, contract review, filing
of malversation cases, etc.

The CMAU head may delegate his signing authority in his absence to the auditing
employee next in rank in his/her unit, subject to limitations consistent with COA policies and
the confirmation of the Provincial Auditor.

Correspondence, queries and reports pertaining to the audit of the affected

municipalities and barangays, which deal on matters that are beyond the competence of the
CMAU or which are policy determining; precedent setting, or require the exercise of discretion
by the Provincial Auditor or higher COA authorities,
should be elevated to the Provincial Auditor's Office.
The CMAU shall accomplish and submit through the
Administrative reports required from auditing units.

Provincial Auditor the

Official travels of CMAU personnel outside of their jurisdiction shall be made only
with prior authority of the Provincial Auditor. Prior written notice shall also be given to the
Municipal Mayor when they leave their official station on official business (Sec. 139, BP Blg.
337).
RESPONSIBILITIES OF THE PROVINCIAL AUDITOR
The Provincial Auditor shall exercise general supervision and control over the CMAU
within the Province with end in view of providing effective auditing service to the affected
municipalities and barangays. He shall have the following responsibilities:
1.

The implementation of systems and procedures for monitoring and evaluation of

the performance of the CMAU; the issuance of the necessary procedural details
to carry out the guidelines prescribed in this Circular; the submission to the
COA Regional Office, Region XI and the Local Government Audit Office, this
Commission, of copies of such issuances and instructions.

2.

Submission of a monthly report on the evaluation of the performance of the

CMAU to the COA Regional Office, Region XI, furnishing a copy thereof to the
Director of the Local Government Audit Office, this Commission.

3.

Prompt dissemination to the CMAU of circulars, memorandums, decisions, and

other issuances of this Commission and other government agencies.

4.

Review of audit reports, administrative reports and other reports submitted by

the CMAU.

5.

Review of Certificates of Settlement and Balances issued by the CMAU.

6.

Other related duties pertaining to the functions of the CMAU.

EFFECTIVITY
This Circular shall take effect immediately. The provincial Auditor shall see that the
personnel of the CMAU proceed to the official station of their assignment where they shall
hold office and discharge their responsibilities and duties in the place designated as their
audit circuit.
COA Circulars, Memorandums, Orders and regulations, parts thereof, which are
inconsistent herewith are hereby revoked and/or amended accordingly.
(SGD.) EUFEMIO C. DOMINGO, Chairman