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Republic of the Philippines
COMMISION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

CIRCULAR - No.:2012-003
Date: October 29, 2012


TO                  :     All Heads of Department, Bureaus, Offices, Agencies and Instrumentalities of the National Government, Heads of Local Government Units (LGUs), Managing Heads of Government-Owned and/or Controlled Corporations (GOCCs), COA Assistant Commissioners, COA Directors, COA Auditors and All Others Concerned

SUBJECT     :     Updated Guidelines for the Prevention and Disallowance of Irregular, Unnecessary, Excessive, Extravagant and Unconscionable Expenditures

Under Section 2 (2), Article IX-D of the 1987 Constitution, the Commission on Audit (COA) shall have exclusive authority, subject to the limitation in this Article, to �xxx promulgate accounting and auditing rules and regulations, including those for the prevention of irregular, unnecessary, excessive, extravagant, or unconscionable (IUEEU) expenditures or uses of government funds and properties �.This authority was reiterated under Section 33 of Presidential Decree (P.D.) No. 1445, which states:

Section 33. Prevention of irregular, unnecessary, excessive, or extravagant expenditures of funds or uses of property; power to disallow such expenditures. - The Commissions shall promulgate such auditing and accounting rules and regulations as shall prevent irregular, unnecessary, excessive, or extravagant expenditures or uses of government funds or property.

In line with these provisions and the Commission's efforts to be constantly responsive to the changing needs of the government, the list of situational cases enumerated under COA Circular No. 85-55A dated September 8, 1985 is hereunder restate with updated additional cases established for the guidance of both agency officials and employees, and COA auditors.

1.0   PURPOSE

The Circular on IUEEU expenditures or uses of government funds and property is updated agency officials in the discharge of their official functions and the COA auditors in their auditorial functions. The situational cases enumerated under COA Circular No. 85-55A dated September 8, 1985 are elaborated by presenting actual transactions/expenditures declared as IUEEU expenditures under various jurisprudence, decisions issued by this Commission, and released audit reports. Illegal expenditures are also discussed as differentiated from irregular expenditures and unconscionable expenditures are also included. The pertinent rules and regulations under selected types of expenditures are, likewise, enumerated for further guidance.