Republic of the Philippines

COMMISSION ON AUDIT
Commonwealth A venue, Quezon City

RESOLUTION

No.
Date

SUBJECT:

2,01 ~- OV-1

NOV 2 0 2013

SPECIAL DISASTER AID AUDIT

WHEREAS, with the catastrophe brought by Typhoon Yolanda

particularly in the Samar Provinces, Leyte, Cebu, Iloilo, Aklan and Palawan, the
President issued Proclamation No. 682, s. 2013, declaring a State of National
Calamity aimed to \\hasten the rescue, recovery, relief, and rehabilitation
efforts of the Government and the private sector, including any international
humanitarian assistance;
WHEREAS, the NDRRMC, DSWD, DOH, DOTC, DILG, DPWH, DND, AFP
and PNP, as well as ot her concerned government agencies and local
governments, are now engaged in massive rescue, recovery, relief and
rehabi litation ;
WHEREAS, in response to various requests from the DSWD and other
agencies, the Government Procurement Policy Board approved Resolution No .
34- 2013 on 14 November 2013 (1) reiterating that GPPB approval is not
necessary for government contracts procured through any alternative methods
involving an Approved Budget for the Contract of less than PHP 500 Million; (2)
granting authority to all concerned government entities to procure goods and
infrastructure projects through Negotiated Procurement for contracts with ABC
of at least PHP 500 Million, for the purpose of rescue, recovery, relief and/or
rehabilitation during the State of National Calamity; and (3) requiring all
concerned government entities to submit a List of all transactions covered by
said authority at the end of every month;
WHEREAS, with the massive scale and urgency of the rescue,
recovery, relief and rehabilitation efforts; the huge amounts involved; the
highly or immediately consumable nature of most of the goods and services for
the purpose; and the participation of a great number of volunteers in the
operations, immediate audit is desirable and necessary for transparency and
fu ll accountability;

NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED,

that the Commission shall immediately undertake a post audit of the
rescue, relief, recovery and rehabilitation efforts and activities during
the period of the State of National~alamity, under the terms of

~It

reference embodied in the attached Audit Instructions, which are

incorporated herein hy reference. The Chairperson shall oversee the
implementation of the resolution, and shall give instructions, office
orders, and carry out such other acts as may be required or desirable
to fully effectuate this resolution.

Quezon City, Philippines.

~ENDOZA
Commissioner

f.~va~t-vv[--1..---- ROWENA V. GUANZON

Commissioner

Special Audit of Relief Operations for the Victims of Typhoon Yolanda

AUDIT INSTRUCTION

A. Generallnstructions
1. Organization and Governance
The group responsible for the conduct of the special audit of relief operations for the
victims of Typhoon Yolanda shall be composed of the following:
a.

Steering Committee
The Steering Committee shall develop audit plan, organize and supervise audit
teams, issue audit instructions, decide on audit issues with authority to accept
substantive compliance with existing audit requirements in lieu of strict compliance,
or otherwise adopt such auditing techniques and tools as will expedite and hasten
the delivery of goods and services, given the urgency and scope of operations. The
Chair of the Steering Committee shall be the overall Manager of the Special Audit.

b. Audit Team Supervisors

The Team Supervisors, who are the Supervising Auditors of the agencies being
audited, shall closely monitor the proper and timely conduct of audit by the teams.
c.

Audit Teams
The Audit Teams shall be responsible for the audit of relief operations, its
documentation and preparation of the audit report.

d. The Secretariat shall liaise and coordinate with the Steering Committee, Audit Team
Supervisors and Audit Teams on matters relating to the audit. They shall also
provide administrative support (i.e. consolidation of data/reports) and shall be the
moderator of the skydrive that will be maintained for the duration of the audit.
e.

Private Partners
The PI CPA and JPIA volunteers, local volunteers from youth, commerce and industry,
church, professional sectors and CSOs and NGOs with track record shall be utilized
to perform selected audit procedures (i.e. physical inventory of stocks.

Page 1 of 6

2. Audit Scope

The audit shall thoroughly cover relief operations during the State of National Calamit y
proclaimed under Proclamation No. 682, s. 2013, particularly for the Provinces of Samar,
Leyte, Cebu, Iloilo, Capiz, Aklan an d Palawan.
3. Audit Period

The audit shall be undertaken until the State of National Calamit y is lifted.

Specific Instructions

1. Focus Areas in Audit

The following shall be the focus audit areas:
a.
b.
c.
d.
e.

Sources and receipt of foreign aid

Release of loca l fund s by DBM, OP, NDRRM C and other agencies invo lved
Inter-age ncy transfer of funds
Procureme nt an d logistics
Distribution of goods and services

2. Agencies to be Audited

a.
b.
c.
d.

m.
n.
o.
p.
q.

Office of the Presid ent

Presidenti al M anage ment Staff
Department of Budget and M anagement
Departm ent of the Interior and Loca l Govern ment/Phi lippine National Pol ice/ Bu re au
of Fire Protection
Departmen t of Socia l W elfare an d Development
Department of Transport ation and Communication
Departme nt of Hea lth
Department of Publi c Works and Highways
Nationa l Disaster Risk Reduction and M anagement Council
Department of Nation al Defense/Philippine Navy/Philippine Airforce
Armed Forces of the Philippines
M etro M ani la Developm ent Authority
Department of Agricu lture/National Food Authority
Department of Foreign Affairs
Department of Finance/Bureau of the Treasu ry/Bureau of Customs
Ninoy Aquino International Airport
Loca l Govern ment Units affect ed by the disaster

r.

Other agencies as may be identified in th7 o f th1dit

e.
f.
g.
h.
1.

.J.
k.

1.

~
Page2 of6

3. The Audit

a.

In the use of disa ster funds, emergency procedures are usually introduced and
become operational but procedural controls are frequently bypassed to save lives
and mitigate losses. Hence, the challenge for the group in the audit of relief
operations is to strike a balance between the needs of institutions t o fulfill their
mandates and the imperatives of public accountability.

b. The audit team shall post-audit transactions within one-two days of occurren ce in
light of the following considerations:

Utmost urgency and massive scope of relief operations

Immediately consumable nature of goods and services required

Great number of volunteers and private sector assisting government
Clamor of the people for transparency and accountability, given the massive
amount of public funds and donations involved

c. The audit teams shall take hold of the process maps for the identified focus areas of
the agency assigned to them to have a reference in making a walkthrough of the
process.
In documenting the walkthrough of the processes, the audit teams shall t ake note of
the critical steps outside the standard, which are actually deviations from the
necessary controls, and the reason/s for such deviation, as well as its consequence.
The attention of officials concerned shall immediately be called on the deviations
noted so that interventions will be put in place and the adverse consequen ce of th e
deviations eliminated . See example on page 4.
d. The audit group shall make use of technology in documenting the audit. Th e
skydrive that was opened for the group shall be the repository of the audit
documentation/working papers (excel files, photos, scanned files, etc.) and one of
the means by which the audit teams will communicate.

Page 3 of 6

Example: Repacki ng of relief goods

At the warehouse, 1M pieces of noo dles del iver ed by the sup pli er
and received by an autho rized representa t iv e of th e agency
The aud i tor shall obtain a copv of the invoice Mrd dPirvHy <'dPipt
and determine how many packs ilre to be procl 11cerl I r'On I hr; lot
This information will be. passed on to the ,wd it t~ 'lll'' d l the
repacking site.

The <~udit team at the repacking site sha ll monitor if thP numbc~r
pack', produced from the 1M delivery of noodle; liliiiC'S wrth the
expected number (as per inf ormiltion given by the auJir teNn rll
the wan~rwu~e
If the nunber produced i> less th an w hat is exp ~cle u . inq uire lr 011
oflicrill> r:o no:~ rned. If they say t h at the difference r ~. >!. rll ,,, tnv
inventory, reques t the audi t te<llll ?.ss ignecl in l.h<: inventory t o
check
lt [h f.' numbPr pro du et~d is more than w ha t i'. expf!ctrd , i ncH r :r~
f rom th t: offic: iil ls concPrnecl. If they sily the dii l crrncc: c ; ~rnr: fron 1
the bala11cC in the inventory, request the i1vcl it tp,,m ,,,~.gn"ci . ;n
the inven to ry to check.
After the rppacking, thE' audit te(lrn should inqu irE nn rh" m::lnn o:
ot tran sport <Jnd take note of the speer fie, of th(~ l r cH l ~,por l
(certificiltion and approval on the dispatch doc>.fill C?n l >, qui1ntity ~o
be tran ~ ported and retained in inventory, time of depi1r t urf:. typ!:.ot vehicle u\ed, the rn<lrking thereo n and plcilt:> lllll)l\)Pr, expec l i:(J
tirne ,md rldle oi ar rrva! at the destination etc.) and p <>.~ th rs
inform<~tion to the audit team at the destii1<nion .

Th 0 <nrdit tr<1 m at rlw dc>li n<ltion sh<ill rhFr.k 1'1<' !;UMlllt\' 1f;,i
Mrrve: <W<i rnqui rr:' >nto thP d i ~ crep,:;ncy. rf ,'111','. ,1nd p., ,~, th i:.
intom1,11.io11 to llw tr>i1m roncprned for va lirl;, t ion 1\1 h" .,-1111'" ' Ill'<' .
the .rud it t<:.:;m sh.; ll not e thP dcr;,;l s ()t t 1w ('!,.,r_ rl.lulrr>' to
bent>fict <!t rt" c111 d ft:ed L hi~ infonn a>io n :o th(, ,,:o it l':t'ir'1 "' rtw
drstrrbtttio:l ~it<'

Page 4 of 6

e.

Th e Tea m Supervisors shall imm ediat ely ca ll any member of the Steer ing Committee
f or au dit issues that cannot be resolved at th eir leve l in or der not t o d elay the rel ief
op erations .

...----

email Address

Official

Mobile No.

Com. Heidi L. M endoza

0917-5897663
0920-9248750
0922-8051253

hi men doza @coa.gov.[ih

0918-9345513
0939-2544392
0919-8312929
0917-5385713

wrhenca llado @coa.gov.[ih

AsCom Isabel D. Agit o

AsCom Rosemar ies L. Lerio
AsCom Wi nnie Rose H. Encallado
AsCom Divinia M. Alagon
AsCo m Lourdes M. Castillo
AsCom Luz L. Tolentino

f.

id agi t o@coa.gov.[ih
rllerio@coa .gov.[ih
rosemarie.le rio@y:ahoo.com
cgs .dmalagon@coa.gov.Qh
lmcastillo@coa.gov.Qh
lltolentino@coa.gov.Qh

Each audit t eam shall prepare an d submit a weekly St atus Report of t he ir mon itoring
on th e entire di sast er and delivery syst em to t he Team Su pervisors for consolidati on
before su bmission t o t h e Office o f the Chai rp erso n, copy f urni shed th e Office of th e
Co mmi ss ioner I.

ne Special Audit Report

An exit conference shall be con ducted before t ransm itta l of the Speci al Aud it Report.
The audit t eam, prior to the conduct of exit conference, shal l submit to the Stee rin g
Comm ittee through t he Team Supervisor t he mat rix of Audit Obse rva tions and
Recommendations fo r review of the f ind ings and recom mend ations.
The matri x sha ll co nt ain t he f oll owing:

Column

Column Heading

2
3
4

AOM No.
Audit Thru st Area/Audit Observa ti ons
Aud it Recomme ndations
Underlying Ca uses of Findi ng

5
6

Management Comme nts

Audit Team's Rej oinder

:. The prese ntation shall include the fo llowing:

a.

Out line of p resentation

b. Bri ef backgr ound of t h e aud it - such as au dit scope and covering p er iod, obj ective/s
c.

M atrix of Audit Findings and Recommendat ions

Page 5 of 6

4. The Team shall ensure that the proceedings of the exit meeting are documented.
5. The Team Supervisors shall submit the draft of the Special Audit Repo rt of t heir
respective agencies within one week after the exit conference for review by the Steeri ng
Committee and for consolidation by the Secretariat.
6. After final review of the draft report, the Team Supervisors shall finalize t he report and
submit the same to the Steering Committee for transmittal.
The Special Audit Report sha ll be presented in the following sequence:
a.

Fly leaf

b. Executive Summary, which shall contain the following parts:

Scope of the Audit- brief and concise statement on the type and coverage of the
audit.
Objectives of the Audit
Significant Findings and Recommendations - shows the digest of the significant
findings and the corresponding recommendations.

c. Table of Contents
d. Part I - Introduction
Background information on the audit conducted
Present the audit scope and duration, audit objectives
e. Part II - Detailed Findings and Recommendations
f.

Part IV - Annexes

7. Deadline for the Special Audit Report shall be two weeks after th e lifting of Stat e of
National Calamity.
D. The Technical Working Group created under Office Order No. 2013-464 dated June 27,
2013

The Technical Working Group shall be responsible for the drafting and preparat ion of the
Accounting Guidelines and Audit Guide pertaining to the disaster funds as well as the conduct
of scoping, assessment, preparation of reports showing fund receipt and utilization and training
in the audit of DRM funds .

;1 /;(/

pttv'e'a~e 6 of 6