COMMISSION ON AUDIT MEMORANDUM NO.

79-211 August 30, 1979

TO : The Managers of the Corporate Audit Office, National Government Audit Office
and Local Government Audit Office; all COA Regional Directors; all nit Auditors
of National Government Agencies, Government!O"ned and#or Controlled
Corporations and Local Government nits; and All Others Concerned$
SUBJECT : Conduct of cash e%amination and evaluation of internal control over cash during
the month of &eptem'er, ()*)$
Recent developments affecting fiscal administration have 'rought to the fore the need to
immediatel+ revie" and re!e%amine e%isting fiscal s+stems and to appraise the ade,uac+ of the
internal control over cash$ These developments include- .(/ reorgani0ation of sensitive
government agencies, .1/ revie" of operations and performances of selected pu'lic offices and
.2/ discover+ of malversation cases and manipulation of cash records$ The Commission feels
that it should not onl+ colla'orate in these operations revie" "ith intensified cash audit
procedures 'ut should also provide initiative in desires improvement of audit practices
especiall+ in these sensitive agencies$
Along this line, all unit auditors all over the countr+ are en3oined to-
.(/ O'serve the month of &eptem'er, ()*) as special audit month
All unit auditors shall conduct a complete cash e%amination of all accounta'le officers of
the agencies under their respective audit 3urisdiction during the month &eptem'er, ()*)$ This
cash e%amination shall 'e conducted in addition to the ,uarterl+ cash e%amination re,uired in
&ection 451 of National Accounting and Auditing Manual and COA Circular No$ **!6A dated 7ul+
(5, ()** of this Commission$ nit auditors "ho have not +et conducted the regular cash
e%amination for the second ,uarter of ()*) ma+ consider the cash e%amination to 'e conducted
in &eptem'er, ()*), as the regular cash e%amination for the said second ,uarter$ 8o"ever, unit
auditors "ho have conducted cash e%amination during the month of 7ul+ or August, ()*) shall
again conduct another cash e%amination in &eptem'er, ()*)$
To carr+ out immediatel+ this special cash e%amination, unit auditors are here'+
authori0ed to reassign competent personnel and to schedule the re,uired "or9 so as to meet
esta'lished deadlines$
A report "hich includes list of agencies, names of accounta'le officials and date cash
e%amination "as conducted shall 'e su'mitted to the Commission not later than Octo'er (:,
()*), "ith pertinent comment and recommendations$
;n case shortage or defalcation is discovered in the e%amination of the cash and
accounts of an+ of the accounta'le officers, the unit auditor concerned shall 'e guided '+ the
provisions of COA Memoranda Nos$ *<!<( .a/, *<!(45 and *)!(*), dated March 11, ()*<,
August 1<, ()*< and Decem'er (6, ()*<, respectivel+$
.1/ Revie" and evaluate internal control s+stems and procedures particularl+ set up for
cash receipts and dis'ursements !
All unit auditors shall evaluate the internal control s+stems and procedures over cash in
their respective audited agencies$ The+ shall follo" the procedure prescri'ed in COA Circular
No$ **!6< dated 7anuar+ 2(, ()**$
pon completion of the evaluation of internal control s+stem re,uired herein, the unit
auditors shall su'mit their reports, including their recommendations, to this Commission, not
later than Novem'er (:, ()*)$ These reports shall 'e evaluated '+ the tas9 force created '+
this Commission for the purpose "hich shall 'e under the direct supervision of Commissioner
&ilvestre D$ &armiento$
This Memorandum shall ta9e effect immediatel+$
.&GD$/ =RANC;&CO &$ TANT;CO, 7R$
Acting Chairman