Coa Ammended Rules and Regulations

Table of Content


  • “Irregular expenditure” -иsignifies expenditure incurred without adhering to established rules, regulations, procedural guidelines, policies, principles or practices that have gained recognition in law. Irregular expenditures are incurred without conforming to prescribed usages and rules of discipline.
  • “Unnecessary expenditures” -pertains to expenditures, which could not pass the test of prudence or the diligence of a good father of a family, thereby denoting non-responsiveness to the exigencies of the service. Unnecessary expenditures are those not supportive of the implementation of the objectives and mission of the agency relative to the nature of its operation. An expenditure that is not essential or that which can be dispensed without loss or damage to property is considered unnecessary.
  • “Excessive expenditures” – signifies unreasonable expense or expenses incurred at an immoderate quantity and exorbitant price. It also includes expenses, which exceed what is usual or proper as well as expenses, which are unreasonably high, and beyond just measure or amount. They also include expenses in excess of reasonable limits.
  • “Extravagant expenditure” – signifies those incurred without restraints, judiciousness and economy. Extravagant expenditures exceed the bounds of propriety: These expenditures are immoderate, prodigal, lavish, luxurious, waste grossly excessive and injudicious.


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Funds: (applicable to all national, local and corporate sectors)

  • Payment of claims under a contract awarded not strictly in accordance with the prescribed modes of procurement of supplies, materials and equipment.
  • Purchase of Items from jobbers or middlemen in violation of a government policy to acquire the same directly from reputable manufacturers or their duly licensed distributions.
  • Payment of allowances and other forms of additional compensation without proper authority.
  • Payment for repair of government property or equipment undertaken by shops, mechanics or contractors not duly accredited in accordance with an existing government policy


  • The use of government motor vehicles with an improperly accomplished trip ticket, or without the marking “For Official Use Only” and the name of the office except when, appropriate exemption is secured in accordance with existing regulations
  • Bringing home government motor vehicles after office hours by officials to whom these are assigned, except when the agency does not have a garage that could ensure the safety of the vehicle or when in terms of mileage/time it is more economical for the official to park the vehicle(s) at his residence.
  • Office equipment and property without proper identification or inventory markings.

UNNECESSARY EXPENDITURES 3 standards for unnecessary expenditures:

Time of Need

  1. The volume of purchases must be enough to fill the three  month’s requirements of the agency except when circumstances or the exigencies of the service would demand otherwise. Purchases made in excess of three  month’s requirements should not, however, exceed the current year’s needs, except as herein provided.
  2. Three  months’ supply is determined by computing the average monthly consumption of the agency for the last six  months plus 10% allowance’ for contingencies multiplied by three. However, the 10% allowance for increase may be exceeded when the circumstances call for additional procurement, such as but not limited to seminars, conferences and the like, or in case where the activities cannot be delayed without causing detriment to the public service.
  3. Supplies bought or services rendered should be used or availed of before the utility of said items or services expires. . Frequency/Nature of Use Expenditure is unnecessary if the item/object is not used according to normal usage/practice.

Location Item bought or service rendered is unnecessary when it is not needed or useful in the place were it is intended to be used. Situational cases:

Funds: (applicable to all national, local and corporate sectors)

  • Grant of overtime pay for work that is not of urgent nature as to require completion within a specified time or that can be 1. 1l1dertaken during regular office hours.
  • Expenses for advertisements of anniversaries, etc. n newspapers, TV, or radio merely for publicity or propaganda purposes except when the nature of the agency’s mission would require such expenses as in the case of promotion of trade and business.


  • Use of air-conditioners when not needed, or even during the absence of the official in whose room the air conditioner is installed
  • Use of table lamps while working in the office where the room is adequately illuminated from the ceiling lights. Office equipment and property without proper identification or inventory markings.



  • Price -The price is excessive if it is more than the 10% allowable price variance between the price paid for the item bought and the price of the same item per canvass of the auditor.
  • Volume Discounts – The price is deemed excessive if the discounts allowed in bulk purchases are, not reflected in t price offered or in the award or in the purchases or payment document.

Factors to be considered:

  • A- Supply and Demand forces in the market.
  • B- Government Price Quotations
  • C- Warranty of Products or Special Features
  • D- Brand of products

Situational Cases:

  • Overpricing, of purchases, characterized by grossly exaggerate inflated quotations, in excess of the current and prevailing me price by a 10% variance from the purchased item considered excessive expenditures.
  • Payment for repair of government equipment at a cost exceeding 30% of the current market price of the same or similar equipment is also an excessive expenditure.
  • Expenditures for supplies and materials in quantities beyond that required herein and that needed by the agency for determinable period resulting in overstocking is excessive.


Nature of the agencies’ operations Agency missions Profitability of their past operational performance Availability of financial resources derived from income Situational Cases:

  • Purchase of luxurious and expensive office furnishings for office buildings (e. g. rugs, carpets, draperies, etc. ) is extravagant except for the Offices of the Supreme Court, Intermediate Appellate Court, and other Courts of equivalent rank
  • Luxurious furnishings for government buildings are extravagant except those intended for showcase, trade and commerce, promotion of arts and culture and use of dignitaries.

For this purpose, a certification shall be made by the agency head or his duly authorized representative particularly stating the actual conditions obtaining at the time of purchase, the quantity of items needed and the time or period when such items are to be used.

In an emergency purchase, canvass of prices of items from at least three bonafide reputable suppliers shall be required, except when the amount involved is less the P1000. 00 or in case of repeat orders where the price is the same or less than the original price. A supplier may be deemed a bonafjde and reputable if it satisfies the following criteria. It should be duly licensed and registered with appropriate bodies; -It is not “blacklisted” by any government agency at the time of canvass; and -It should be in business for at least six (6) months.

Negotiated Purchase Negotiated purchase, recognized as another mode of procurement shall be allowed under the following grounds:

  • Failure of the required public bidding
  • If purchase is made from reputable manufacturers or exclusive distributors provided they offer the lowest or most advantageous price.
  • Any purchase made from the Procurement Service
  • On emergency purchase as herein defined

A repeat order is a mode of procurement whereby an agency buys from the same suppliers the same items at the same prices as or lower prices than those covered by the original contract between the parties. A repeat order maybe allowed subject to the following conditions:

  • The price must be the same as or lower than the original price paid for the same items;
  • The repeat order, if resorted to, will not result to splitting of requisitions, purchase orders, contracts and payments that is prohibited in these “RULES”;
  • The total price of items covered by the repeat order should not exceed P50,000. 0 except when the previous purchase was done through public bidding;
  • The use of repeat orders may be availed of only within the six months period from the date of original purchase order.

Subject to availability of funds, agencies may be allowed to enter into contracts for the purchase of supplies and materials for one year subject to the condition that deliveries shall be made on a staggered basis, and the agencies three  months’ supply requirements are not exceeded and payments shall be made after each delivery only.

The national government may enter into agreement for the-‘ease purchase of equipment subject to public bidding the approval of the Office of the Budget and Management, and to other pertinent accounting and auditing regulations. Details of the payments shall be indicated in the lease purchase agreement and accompanied with a certification of availability of equipment outlay authorized for the agency to cover the full contract cost. The lease purchase agreement may be entered into only for specialized equipment such typewriters, adding machines and automobiles, the purchase price of which is at least P50, 000. 0. All lease purchase agreement of equipment the total value of which exceeds P200, 000. 00 shall be subject to the approval of the President. Corporations/local governments may adopt the mechanisms of these lease purchase agreement subject to the approval of their legislative or governing boards.

An employee has not rendered the required minimum number of working hours for the week may be allowed to claim overtime pay provided he has sufficient, leave credits and upon proper showing that his rendition of overtime service is extremely necessary and cannot be dispensed with, without causing unnecessary delay in any government activity. If the overtime service covers only three hours or les, continuous work is allowed without break time; but if it exceeds three  hours, a breaktime for one hour shall be maintained. In case an IUEE Situation corresponds to any, several or all of the criteria set and discussed above, the following steps should be observed in drafting the IUEE Situation into the Updated list:

  1. The Unit Auditor recommends to the Commission Proper IUEE situations deemed ripe for Indusion in the Updated List.
  2. The IUEE Situation, if deserving will be taken up in the Commission Proper meeting. All the merits and demerits of the inclusion will be deliberated and decided upon taking special attention as to whether or not the situation will apply only to the agency classification involved or to the three sectors of government.
  3. As soon as a decision shall have been arrived at, the Commission Proper issues a Resolution effecting the inclusion of the IUEE Situation in the Updated list.
  4. Finally, for the information of all sectors concerned, the Resolution shall be published and circularized.

Cite this page

Coa Ammended Rules and Regulations. (2018, Feb 25). Retrieved from

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