BAYANI F. FERNANDO V.

THE
COMMISSION ON AUDIT
(COA)

G.R. Nos. 237938 and 237944-45, December 04,

2018 (Tijam, J.).
Doctrine:

Executive Committee of Metro Manila Film Festival

(MMFF) though not a GOCC, has an
administrative relationship to MMDA, a
government agency tasked to perform
administrative, coordinating and policy-setting
functions for LGUs in the Metropolitan Manila
Area.

As such, funds of the Executive Committee are

considered public funds subject to COA
Jurisdiction.
Brief Summary of the case:

COA issued an Office Order authorizing the Fraud Audit

and Investigation Office to conduct a special audit on
the disbursement of the Executive Committee of the
MMFF for calendar years 2002-2008.

It found out that petitioner Bayani Fernando, (Chairman

of Executive Committee of MMFF) received certain
amounts from the Executive Committee of MMFF for
the Special projects/activities of MMDA sourced from
the advertising sponsorship of MMFF.

Petitioner averred that COA committed grave abuse of

discretion in disallowing the amounts it received from
Executive Committee of MMFF. It also argued that COA
has no jurisdiction, authority and power to audit funds
of an organization that is not a public office.
Issue:

Whether or not COA has

jurisdiction over the funds of
MMFF Executive Committee
which is not a public office.
Ruling:
Yes, COA has jurisdiction over the funds of MMFF which is not a public
office. Section 2, Article IX-D of the constitution provides COA’s audit
jurisdiction which incudes the power, authority and duty to examine, audit
and settles all accounts pertaining to the revenue and receipts of and
expenditures or uses of funds of property, owned or held in trust by or
pertaining to the government, or any of its subdivisions, agencies or
instrumentalities including government owned and controlled corporations
with original charters and on post audit basis.

The Executive Committee of the MMFF was created pursuant to

Proclamation No. 1459. Considering the establishment and mechanism of
the Executive Committee of the MMFF, it is apparent that it is not a GOCC
subject to COA jurisdiction. However, Court finds that Executive
Committee is subject to COA jurisdiction, considering its
administrative relationship to MMDA, which is a gov’t agency tasked
to perform administrative, coordinating and policy-setting functions
for the LGU in Metro Manila.
Ruling:

The funds of Executive Committee are considered public

funds.
The Executive Committee has two source of fund namely:

the donations from LGU comprising the Metropolitan Manila covering the period of holding
the MMFF
the non-tax revenues that come in the from of donations from private entities.

As a committee under MMDA, a public office, this court finds

that both sources of funds can properly be subject of COA’s
audit jurisdiction.

The petition of Mr. Fernando was dismissed.

Thank you .