by:

ATTY. ELIZABETH S. ZOSA

Assistant Commissioner
Commission on Audit
 Legal Authority and Basic Concepts
 Communicating Audit Results
 IIUUEE Expenditures
 Determination of Persons Liable
 Acts Constituting Liability
 Appeals from Disallowances
 Nature of Liability for
Disallowances
 Enforcement of Liability
EXAMINE
SETTLE
Honoraria
RATA, Traveling expenses
Procurement
Cash Advances
Terminal leave benefits
Fund transfer to NGO
Hiring of private lawyer
EME
Retirement Benefit
Salary, Step Increment,
Overtime Pay
Allowances and Other
Benefits
 CNA
 Hazardduty pay
 YEB and cash gift
 PIB
Appointment
Cashier
General Services Officer
Chief Engineer
Accountant
Budget Officer
Board of Directors
Designation
Inspection and Acceptance
Committee
Bids and Award Committee
Special Disbursing Officer
Property Inventory Committee
 Good faith-
Good faith connotes an honest
intention to abstain from taking
unconscientious advantage of another;
it is not a visible, tangible fact that can be
seen or touched, but rather a state or
condition of mind which can only be
judged by actual or fancied token or
signs. (PNB vs Heirs of Estanislao Militar, et al.
GR No. 164801, June 30, 2006)
 “Solutio Indebiti”
• if something is received when there is
no right to demand it, and it was
unduly delivered through mistake, the
obligation to return it arises (Art 2154,
NCC);

• the person who has no right to receive

such payment becomes obligated to
return the same;
Liability up to the amount certified/
authorized/ approved
-Partial payment
-Progress billings
 Section 106
Section 106. Liability for acts done by direction of
superior officer. No accountable officer shall be relieved
from liability by reason of his having acted under the
direction of a superior officer in paying out, applying, or
disposing of the funds or property with which he is
chargeable, unless prior to that act, he notified the
superior officer in writing of the illegality of the
payment, application, or disposition. The officer
directing any illegal payment or disposition of the funds
or property shall be primarily liable for the loss, while
the accountable officer who fails to serve the required
notice shall be secondarily liable.
-62 days

118 days
[T]here is a solidary liability only
when the obligation expressly so
states, or when the law or the
nature of the obligation requires
solidarity
Section 43. Liability for Illegal Expenditures. - Every
expenditure or obligation authorized or incurred in
violation of the provisions of this Code or of the
general and special provisions contained in the
annual General or other Appropriations Act shall be
void. Every payment made in violation of said
provisions shall be illegal and every official or
employee authorizing or making such payment, or
taking part therein, and every person receiving such
payment shall be jointly and severally liable to the
Government for the full amount so paid or received.
Section 49. Liability for Illegal Expenditure. Every
expenditure or obligation authorized or incurred in
violation of the provisions of this Decree or of the
general and special provisions contained in the
annual General or other Appropriations Act shall be
void. Every payment made in violation of said
provisions shall be illegal and every official or
employee authorizing or making such payment, or
taking part therein, and every person receiving such
payment shall be jointly and severally liable to the
Government for the full amount so paid or received.
SEC. 347. Rendition of Accounts. - Local treasurers,
accountants and other local accountable officers shall
render their accounts within such time, in such form,
style, and content and under such regulations as the
Commission on Audit may prescribe. Provincial, city,
and municipal auditors shall certify the balances arising
in the accounts settled by them to the Chairman of the
Commission on Audit and to the local treasurer,
accountant, and other accountable officers. Copies of
the certification shall be prepared and furnished other
local officers who may be held jointly and severally
liable for any loss or illegal, improper or unauthorized
use or misappropriation of local funds or property.
- Only for disallowed benefits or
allowances
- Approved by the OGC- COA
- Payment period not > 2 years
graduated according to amount
- Full payment demandable upon
separation from the service