The Commission on Audit (COA) is studying the possibility of modifying its 11-year-old circular being used as a basis in auditing confidential and intelligence funds, COA Commissioner Douglas Malillin said on Thursday.
Amid the ongoing impeachment trial of Vice President Sara Duterte, COA’s Joint Circular (JC) No. 2015-01 with the Department of Budget and Management, the Department of the Interior and Local Government, the Government Commission for GOCCs, and the Department of National Defense has frequently been the subject of debate, particularly in its enactment.
‘After all the concerns and issues that were raised regarding the confidential funds, we were taking a look at the joint memorandum circular, which was issued in 2015… and we find that there are certain revisions that need to be modified or revised,’ Malillin said.
Malillin enumerated some of the provisions in the circular that they may reform.
These include the supporting documents or documents evidencing payments, particularly the data that should be included, and how auditors will identify sufficiency of the documents.
He also mentioned that there may be a need to have requirements for people who have knowledge of the identities of people using aliases, should they be allowed.
‘The present joint memorandum circular does not exactly prohibit nor does it really straightforwardly allow the use of aliases,’ Malillin pointed out.
Malillin also mentioned that the current JC lacks provisions on evidence of success and casual links, which he characterized as ‘very crucial features’ on the payment of rewards – an allowable use for confidential funds.
Furthermore, Mallilin noted the need for COA to also identify informants for confidential activities for purposes of auditing.’There should be a balance between protecting the identity, but also a point of where COA, based on certain clearances, can actually take a look at the identity of the person without compromising national security and the confidentiality of the activity,’ he explained.
The specific steps in issuing credit notices and notices of disallowance must also be revisited, Mallilin pressed.
A credit notice is issued when an agency passes an audit, while a notice of disallowance is issued to agencies that have been flagged by COA for discrepancies in use or documentation of government funds.