Government-auditing-rules (Cabrito, Ma. Alyza Belle O.).pptx

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1. Government auditing rules

2. DEFINITION OF AUDITING Auditing is the systematic examination and evaluation of an organization’s financial statements, records, operations, and controls to ensure accuracy, compliance with applicable standards and regulations, and to assess the effectiveness and efficiency of its operation. This definition encompasses the core purpose of auditing, which includes verifying financial integrity, compliance, and operational performance.

3. Some common aspects of government Auditing rules: Independence: government auditors must be independent from the agencies they are auditing to maintain objectivity and impartiality. Compliance: auditors ensure that government agencies adhere to relevant laws, regulations, and accounting standards. Financial Accountability: Auditors assess the financial statements and records of government entitles to verify their accuracy and compliance with accounting principles.

4. 4. Performance Audit: Government performance audits evaluate the efficiency, effectiveness and economy of government programs and operations. 5. Reporting: Audit findings are documented in reports that are made available to the public or relevant oversight bodies. 6. Risk Assessment: Auditors identify and assess risks associated with government operations to focus their audit efforts effectively. 7. Fraud Detection: Auditors may be responsible for detecting and preventing fraud, waste, and abuse of government resources.

5. Section 1: Constitutional and Statutory Safeguard The Philippines Constitution to explicitly provide for an independent Commission on audit. It is not appended to the executive, legislative or judicial branch of Government. 1.1 To further ensure its independence, the Constitution provide that the COA shall enjoy fiscal autonomy. 1.2 The declared policy of the State that all government resources “ shall be managed, expended and utilized in accordance with law and regulations, and safeguard against loss of wastage. With a view to ensuring efficiency, economy and effectiveness in the operations of government” mandates the Commission on audit to adopt comprehensive audit.

6. 1.3 The commission shall determine whether or not the fiscal responsibilities that rest directly with the head of the government agency like DECS has been properly and effectively discharged. Section 2. Receipts in General 2.1 Receipts refers to all cash inflows whether actual or constructive regardless source or purpose and whether pertaining to the agency or not. REVENUE – covers tax and nontax items such as those earned or realized from regular operations and services rendered, government business or proprietary operations, sales of assets, grants and aids. GOVERNMENT FUNDS – includes public money of every sort and other resources pertaining to any agency of government. ( GSIS, DBP, LANBANK)

7. Section 3. Acknowledgment of Collection   3.1 No payment of any nature shall be received by a collecting officer without immediate issuing of official receipt in acknowledgement thereof.   3.2 Where mechanical devices are used to acknowledged cash receipts, the commission on audit may approved, upon request from the use of accountable forms.   3.3 Official receipts are designed to cover a particular kind of collection only.   3.4 Pre- numbered officials’ receipts shall be issued in strict numerical sequence. In preparing official receipts, all copies of each receipts shall be exact copies of carbon reproduction in all Aspects original. If the payment has been tendered in money order or cheque, the official receipts shall be prepared with the date, number, and the amount of such money order, or cheque together with the purpose for which the payment has been received.  

8. Section 4. Control of Collection   4.1 Every officer accountable for government funds shall be liable for all losses resulting from the unlawful deposit, use or application thereof and for all losses attributable to negligence in the keeping of the same. 4.2 When loss of government fund while such fund is in transit, or the loss is cause of fire, theft or other casually or force, the officer accountable thereof shall immediately notify the Commission on Audit.   4.3 When an officer primarily accountable for government funds or property absconds with them, dies or become incapacitated in the performance of his duties, the proper agency head shall designate a custodian to take charge of such fund or property until a successor shall have been appointed and qualified.   4.4 The transfer of government funds from one officer to another shall, except as allowed by the law or regulation. Be made only upon prior direction as authorization on Commission on Audit or its representative.  

9. 4.5 Disposition of Public Money   a. unless specifically provided by the law, all income accruing to DECS by virtue of provisions of existing laws, orders and regulations shall be deposited on the National Treasury or in the duly authorized depository of the government and shall accrue to the unappropriated surplus of the General Fund of the Government.   b. Public officers authorized to receive and collect money arising from taxes, revenues, or receipts of any kind shall remit or deposit intact the full amounts to which the said money belong. The amount of the collections ultimately pay able to the other agencies of the government shall thereafter be remitted to the respective treasuries of these agencies.   c. A separate remittance advice for DECS fund shall be prepared for every deposit. Separate remittance of advice shall also be prepared for the following:   Redeposit/ replenishment of dishonest cash items, and b. Undeposited collection at the end of any calendar year deposited in the ensuing year.

10. 4.6 Miscellaneous Provision on the Deposit of National Collection   Pending remittance to the property treasury, collecting officers may temporarily deposit collections received by them with any treasury subject to the regulation of Commission on Audit. The respective treasuries of these agencies shall in turn deposit with the proper government depository the full amount of the collections not later than the following banking day. All fees, charges, assessment and other receipts or revenues collected by the department, bureaus, offices or agencies in the exercise of their functions. At such rates are now or may approved by the Secretary concerned, shall be deposited with the National Treasury and shall accrue to the General fund pursuant to Sec.50 of PD1177.

11.   4.7 Resolving funds shall be established and maintained only where said funds are expressly created and authorized by law.   4.8 receipts from the non- tax sources authorized by law for specific purposes which are collected/ received by a government office or agency acting as trustee, agent or administrator, or which have been received as guaranty for the fulfillment of an obligation, and all other collection classified by the law.  

12. 4.9 Seminar and conference fee . The DECS bureaus, offices or centers which conduct training programs approved jointly by the DBM and CSC are authorized to collect seminar and conferences fees from government and private agency participants, at such standard rates as the DBM and the CSC shall deem appropriate.

13. THANK YOU!!!!! Discussant: ma. alyza belle o. cabrito

14. Questions: 1. Explain THE main objectives of government auditing and how these objectives ensure transparency and accountability in public administration. 2. DISCUSS THE KEY DIFFERENCES BETWEEN PERFORMANCE AUDITS, FINANCIAL AUDITS, AND COMPLIANCE AUDITS WITHIN THE CONTEXT OF GOVERNMENT AUDITING RULES.