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COMMISSION ON AUDIT MEMORANDUM NO. 99-066 September 22, 1999

TO      :   All COA Officials and Employees

SUBJECT :   Restatement of the policy on receipt by auditing personnel of honorarium, allowance, bonus or other emolument as a form of fringe benefit or additional compensation.

It was brought to the attention of this Commission that many auditors and/or their staff in the auditing units still continue to receive honorarium, allowance, bonus or other emolument as a form of fringe benefit or additional compensation directly from the audited agencies despite existing prohibitions. In fact, some auditors either deliberately or in silence consent or connive with the officials of audited agencies even advising them on how these remunerations may be received in some other form (i.e. financial aid/assistance), hiding the same within an expense item in the Maintenance and Other Operating Expense (MOOE) account of the audited agency. This practice is highly anomalous, irregular and illegal, undermining the independence and integrity of this Commission and is specifically prohibited in Section 18 of Republic Act No. 6758, otherwise known as the Compensation and Position Classification Act of 1989.

Let this Memorandum serve as a final warning to these unscrupulous auditors and/or their staff that this Commission does not tolerate this prohibited practice which shall be dealt with the most server administrative sanction, including dismissal from the service and its accessory penalty, against those found guilty thereof. Any private person or public official, including COA personnel, is encouraged to bring to the attention of this Commission this prohibited practice of auditors and/or their staff through a formal complaint. Anonymous complaint may also be entertained provided that there is obvious truth or merit to the allegations contained therein (Section 8, COA Memorandum No. 76-48).

(Sgd.) CELSO D. GA—GAN Chairman