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MEMORANDUM

No.

2016-

Date

0\2.

MAY 2 3 2016

,,':'

TO

Assistant Commissioners, Cluster Directors, Regional Directors,

Supervising Auditors, Concerned Audit Team Leaders/Members and All
Other Concerned

SUBJECT

Guidelines on the transition to the Negros Island Region

Executive Order No. 183, s. 2015 of the Office of the President created the Negros Island
Region (NIR) comprising the Provinces ofNegros Oriental and Negros Occidental including the
cities, municipalities and barangays within the provinces. Memorandum Circular No. 81, s. 2015
also of the same Office, directed all national government agencies and government owned or
controlled corporations to extend their full assistance in the transition to the NIR. In particular,
complete transition measures were required to be implemented in time for the opening of the
NIR by 01 January 2016.

In view thereof, the following guidelines shall be observed:

1.

All agencies whether in the National, Local or Corporate Government Sector in

the provinces of Negros Oriental and Negros Occidental shall comprise the NIR
and shall be under the audit jurisdiction of COA, NIR.

2.

Audit Groups/Teams under the Local Government Sector (LGS) shall be under
the technical and administrative supervision of the COA Regional Director (RD)
ofNIR.

3.

Technical and administrative supervision over audit teams assigned to national

and corporate agencies including water districts, state universities and colleges
(SUCs) and stand alone agencies shall be in accordance with the guidelines on
unified and integrated audit strategy, as amended. As such, audit teams of
national and corporate agencies in NIR whose Regional Supervising Auditors
(RSAs) are either in COA Regions VI or VII, shall be under the direct supervision
of the Head Office Supervising Auditor pending the designation of an RSA for
NIR.

4. National, local and corporate government agencies which geographically belongs to

either Regions VI and VII but are included in the Audit Groups of the two
provinces comprising NIR, shall now be under the audit jurisdiction of COA
Regions VI or VII, as the case may be. The RDs of COA Regions VI and VII, in
case of local government units, shall determine their respective audit group.
Similarly, in the case of national and corporate agencies, the RDs shall coordinate
with the Cluster Directors of the National and Corporate Government Audit
Sectors, to determine their respective audit groups.
5. The temporary location and address of COA Regional Office of NIR shall be at
the Provincial Satelite Audit Office (PSA:O) of Bacolod City pending the
identification of the permanent government center by the Technical Working
Group (TWG) of NIR.
6. The TWO created under COA Resolution No. 2015-029 dated July 28, 2015 shall
reconstitute the audit groups/teams in the said region in a manner that shall be most
beneficial to the government service and the employees affected. The RD shall
prepare a proposed plantilla for NIR taking into consideration the audit needs of
existing agencies and offices still to be created.
7. Pending the assignment of a full staff complement of NIR, a skeletal staff of at
least five shall be constituted comprising a Supervising Auditor who shall be
the Chief of Staff, a Regional Accountant, a Regional Budget Officer, a Cashier
and an administrative officer. The RD of NIR may recommend staff from audit
groups/teams under his jurisdiction to peform the duties and responsibilities
of said positions in acting capacities.
8. Further, the technical and legal staff of COA Regions VI and VII may be utilized by
COA NIR upon request, pending the assignment of full time legal and technical
staff for the NIR.
9. Pending the establishment of a regional training unit and corresponding
infrastructure, seminars/workshops on Philippine Public Sector Accounting
Standards (PPSAS), the Government Accounting Manual (GAM), Conversion on
the Chart of Accounts and the like, for personnel of agencies under the NIR, in
the meantime, may be included in the briefings to be madeby COA Regions VI
and VII. For the purpose, the RD of NIR shall coordinate with the RDs of COA
Regions VI and VII, and provide resource persons from NIR for said seminars/
workshops.

10. Prior year's Annual Audit Reports (AARs) of LGUs, SUCs, water districts, stand
alone agencies of the National and Corporate Government Sectors, submitted at the
time of the assumption to Office of the RD of NIR, shall be his responsibility.
Explanation/justification for the late submission of the report shall be made by the
concerned Audit Team Supervisor/Leader which shall be dealt with accordingly.
On the other hand, those submitted to the RDs of COA Regions VI and VII prior to

the assumption to Office of the RD of COA NIR, shall be their responsibility.

AARs for Calendar Year (CY) 2015 shall be the responsibility of the RD ofCOA
NIR.
Responsibility for AARs and similar audit reports for national and
corporate agencies shall be m accordance with the guidelines on
unified/integrated audit strategy.
11. The RD of COA NIR, shall be responsible to act on all communications; appeals
of the LGUs, SUCs, water districts and stand alone agencies of the national and
corporate government sectors from audit disallowances and charges; requests for
relief from accountability; requests for iny;estigation and review of corresponding
initial evaluation reports; and the like r~ceived, by the COA Regional Office of
NIR at the time of his assumption to office and thereafter. The RDs of COA
Regions VI and VII shall be responsible for those received prior to the assumption
to office ofthe RD ofCOA NIR.
12. The Planning, Finance and Management Sector shall ensure that funds for
maintenance and other operating expenses as well as capital outlay, if any, for CY
2016 and thereafter will be transferred to the COA NIR. In the meantime, Section
4 on "Funding" of the Department of Budget and Management Circular Letter
No. 2015-13 dated December 1, 2015 shall be complied with.
13. The Administration Sector shall explore ways and means by which the COA NIR
shall be provided with the necessary furniture and fixtures and equipment.
Meanwhile, the RD of COA NIR shall utilize existing furniture and fixtures and
equipment at the PSAO, Bacolod City. For purposes of transfer of accountability,
an inventory of furniture and fixtures, and equipment in the COA NIR shall be
made.
14. All other issues and concerns that cannot be resolved through the coordinative
efforts of the RDs of COA Region VI, VII and NIR shall be referred to the
Assistant Commissioner of the LGS.
15. The guidelines and instructions laid down in this Memorandum are stated in broad
terms. Their details, as well as other matters not taken up herein, shall be covered
by office orders or memoranda that will be issued from time to time.
These guidelines shall take effect immediately.

MI
Chairperson
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