Coa 2015-014
Coa 2015-014
Coa 2015-014
COMMISSION ON AUDIT
Tonurronfinaliii AEFErrue, Quezon Tag,lippinee
WHEREAS, the Government has approved on January 10, 2003 Republic Act (RA)
No. 9184 or the Government Procurement Reform Act, Annex "A" of the Implementing Rules
and Regulations (IRR), which prescribes that all construction quantities shall be computed to
a reasonable accuracy of not more than plus or minus ten percent (10%) of the final
quantities of the as-built structure, based on reasonable approved current prices as
projected over the proposed construction period thus, the Approved Budget for the Contract
(ABC) is already inclusive of ten percent allowance;
WHEREAS, allowing another ten percent (10%) variance over the COA cost
estimate, which is computed based on the ABC, may result in unnecessary or excessive
expenditures of government funds considering the sheer magnitude of the contract cost of
infrastructure projects of government agencies at present time;
1. The Auditor c rned should ascertain strict compliance by the auditee agency
with the pertinent requirements provided under RA No. 9184 and its IRR, as
amended, and other relevant issuances.
2. The Auditor or his/her representative should attend all stages of the procurement
process as observer in accordance with Section 13.1 of the IRR of RA No. 9184.
4. The Auditor shall render a report that the contract has been found in order as to the
legal and auditorial review before the conduct of the technical review.
5. The technical review and evaluation shall be guided by the provisions of Annex "A"
Detailed Engineering for the Procurement of the Infrastructure Project of the IRR
of RA No. 9184, and other relevant issuances of the COA.
6. The ABC shall serve as reference value of the COA cost estimate. The COA cost
estimate shall be computed without any allowable variance.
7. The Auditor shall use the Technical Evaluation Report of the technical personnel
as reference in the conduct of audit.
8. Should defects or errors in the ABC be discovered in the course of the review, the
same, together with the pertinent reasons, especially those that would adversely
affect the contract price, shall be communicated to the auditee in writing by the
Auditor.
In case the contract passed the auditoria' and legal review, any discrepancy in the
technical review (contract review and inspection) unfavourable to the government
should be disallowed in audit.
This Resolution shall take effect immediately and supersedes COA Resolution No.
91-52 dated September 17, 1991. All other issuances which are inconsistent herewith are
repealed or modified accordingly.
,
NDOZA
COMMISSION ON ELIOIT
OFFICE OF THE COMMISSION SNCENTEMIET ommissioner
Officer-In-Charge
I I I II I II JO
BIA
Commissioner