Director Divinia M.

Alagon
CGS, Cluster B
– The head of any agency or instrumentality of the
national government, government-owned or controlled
corporation and any other self-governing board or
commission of the government shall exercise the
diligence of a good father of a family in supervising
the accountable officers under his control to prevent the
incurrence of loss of government funds or property,
otherwise he shall be jointly and severally liable with
the person primarily accountable therefor. The Treasurer
of the local government unit shall likewise exercise the
same degree of supervision over accountable officers
under his supervision, otherwise he shall be jointly and
severally liable with them for the loss of government
funds or property under their control. (Section 104, PD
1445)
 Diligence of a good father of a Family

Ordinary Diligence
The steps or conduct to be observed in the
fulfillment of the obligation taking into
consideration its nature and the circumstances
of persons, time, and place, and as a good
father of a family if the obligation fails to state
the conduct required. (Baer Senior and Co. v.
Compania Maritima, 6 Phil 218.
 Diligence of a good father of a Family

- The Roman Law bonus pater familias, is the standard degree of

care required under the civil law of supervisors and employers
in the supervision of their subordinates or employees.

- if the agency head proves satisfactorily that he has exercised

the care and diligence of a good father of a family in his
supervision of accountable officers under his control, he shall
be relieved from liability.
 Diligence of a good father of a Family
Joint and solidary liability- the actual and legal effect of joint
and solidary liability makes both officials directly and
individually liable in full to the government for any loss of
government funds and property. The government has the
option to proceed against the accountable officer alone or
together with the head of agency. It can make the head of
agency liable in full in his individual capacity. The latter’s
remedy would be against the accountable officer who is
actually responsible for the funds and property.
7.1.1. The Head of the Agency, who is primarily
responsible for all government funds and
property pertaining to his agency, shall ensure
that:

a) the required financial and other report and

statements are submitted by the concerned
agency officials in such form and within the
period prescribed by the Commission;
b) the settlement of disallowances and
charges is made within the prescribed
period;

c) the requirements of transactions suspended

in audit are complied with;

d) Appropriate actions are taken on the

deficiencies noted as contained in the AOM.
7.1.2 The Head of the Agency shall initiate the
necessary administrative and/or criminal action in
case of unjustified failure/refusal to effect
compliance with the foregoing requirements by
subordinate officials. Gross negligence in
disciplining subordinates who are subject of
repeated or adverse audit findings shall subject
the officials concerned to disciplinary action by the
proper authorities as the evidence may warrant.
7.1.3 He shall enforce the COA Order of Execution
(COE) by requiring the withholding of salaries or
other compensation due the person liable in
satisfaction of the disallowance or charge.

7.1.4 He shall ensure that all employees who are

retiring or transferring to other agencies shall first
settle the disallowances and charges for which
they are liable.
 Responsibilities of the Head of Agency
- When an officer accountable for government funds or property
absconds with them, dies or becomes incapacitated in the
performance of his duties, the proper agency head shall
designate a custodian to take charge of the funds and property
until a successor shall have been appointed and qualified. The
agency head may appoint a committee to count the cash and
take an inventory of the property for which the officer was
accountable and to determine the responsibility for the
shortage therein. x x x x (Section 78, PD 1445)
7.2.1 The Chief Accountant, Bookkeeper or other
authorized official performing accounting and/or
bookkeeping functions of the audited agency shall
ensure that:

a) the reports and supporting documents submitted by

the accountable officers are immediately recorded in
the books of accounts and submitted to the Auditor
within the first ten (10) days of the ensuing month;

b) the financial records are made accessible at

reasonable hours to the Auditor or his authorized
representatives when needed;
c) the audit suspensions, disallowances and
charges including their settlements, are
properly monitored and reconciled with the
SASDC issued by the Auditor in accordance
with these Rules;

d) the disallowances and charges that have

become final and executory as contained in the
Notice of Finality of Decisions (NFD) are
recorded in the books of accounts, and
settlements thereof under the NSSDC are
dropped therefrom; and
e) The subsidiary ledgers/records are maintained
and properly updated for each
official/employee determined to be
liable/responsible for the amount
disallowed/charged/suspended.
• Every officer of any government agency whose duties
permit or require the possession or custody of
government funds or property shall be accountable for
the safekeeping thereof, in conformity with law.

• Every accountable officer shall be properly bonded in

accordance with law. (Section 101, PD 1445)
• When government funds or property are transferred
from one accountable officer to another or from an
outgoing officer to his successor, it shall be done
upon properly itemized invoice and receipt which
shall invariable support the clearance to be issued to
the relieved or outgoing officer, subject to regulations
of the Commission. (Section 77, PD 1445)
Corrupt practice of public officers – In addition to
acts or omissions of public officers already penalized
by existing laws, the following shall constitute corrupt
practices of any public officers and are thus declared
to be unlawful under RA 3019, viz:

1) Persuading, inducing or influencing another public

officer to perform an act constituting a violation of
rules and regulations duly promulgated by competent
authority or an offense in connection with the official
duties of the latter, or allowing himself to be
persuaded, induced, or influenced to commit such
violation or offense.
2) Directly or indirectly requesting any gift, present,
share, percentage, or benefit, for himself or for any
other person, in connection with any contract or
transaction between the Government and any other
party, wherein the public officer in his official capacity
has to intervene under the law.

3) Directly or indirectly requesting or receiving any gift,

present or other pecuniary or material benefit for
himself or for another, or from any person from the
public officer, in any manner or capacity, has secured
or obtained, or will secure or obtain, any Government
license, in consideration for the help given or to be
given, without prejudice to Section 13 of RA 3019.
4) Causing any undue injury to any party, including the
Government, or giving any private party any
unwarranted benefits, advantage or preference in the
discharge of his official administrative or judicial
functions through manifest partiality, evident bad
faith or gross inexcusable negligence. This provision
shall apply to officers and employees of offices or
government corporations charged with the grant of
licenses or permits or other concessions.
– Neglecting or refusing after due demand or request,
without sufficient justification, to act within a
reasonable time on any matter pending before him
for the purpose of obtaining, directly or indirectly,
from any person interested in the matter some
pecuniary or material benefit or advantage, or for the
purpose of favoring his own interest or giving undue
advantage in favor of or discriminating against any
other interested party.

– Entering, on behalf of the Government, into any

contract or transaction manifestly and grossly
disadvantageous to the same, whether or not the
public officer profited or will profit thereby.
– Directly or indirectly having financial or pecuniary
interest in any business, contract or transaction in
connection with which he intervenes or takes part in
his official capacity, or in which he is prohibited by
the Constitution or by any law from having any
interest.

– Directly or indirectly becoming interested, for

personal gain, or having a material interest in any
transaction or act requiring the approval of a board,
panel or group of which he is a member, and which
exercises discretion in such approval even if he votes
against the same or does not participate in the action
of the board, committee, panel or group.
– Any public Officer who, by reason of the duties of his
office, is accountable for public funds or property,
shall appropriate the same, or shall take or
misappropriate or shall consent, or through
abandonment or negligence, shall permit any other
person to take such public funds or property, wholly
or partially, or shall otherwise be guilty of the
misappropriation or malversation of such funds of
property. (Art. 217, RPC)
– Any public officer, whether in the service or separated
therefrom by resignation or any other cause, who is
required by law or regulation to render account to the
auditor or to a provincial auditor, and who fails to do so for
a period of two months after such accounts should be
rendered. (Art. 218, RPC)

Failure of accountable officer to render accounts

before leaving the country
– Any public officer who unlawfully leaves or attempts to
leave the Philippine Islands without securing a certificate
from the Auditor showing his accounts have been finally
settled (Art. 219, RPC)
– Any public officer who shall apply any public fund or
property under his administration to any public use other
than that for which such funds or property were
appropriated by law or ordinance (Art. 220, RPC)

Failure to make delivery of public funds or property

– Any public officer under obligation to make payment from

Government funds in his possession, who shall fail to
make such payment; and refusal to deliver property when
so required by law or competent authority. (Art.221, RPC)
Any public officer, employee, or notary who taking
advantage of his official position, shall falsify a
document by committing any of the following acts:

– Counterfeiting or imitating any handwriting, signature or

rubric;
– Causing it to appear that persons have participated in any
act or proceeding when they did not in fact so participate;
– Attributing to persons who have participated in an act or
proceeding statements other than those in fact made by
them;
– Making untruthful statements in a narration of facts;
– Altering true dates;
– Making any alteration or intercalation in a genuine
document which changes its meaning;
– Issuing in an authenticated form a document purporting to
be a copy of an original document when no such original
exists, or including in such copy a statement contrary to,
or different from, that of the genuine original; or
– Intercalating any instrument or note relative to the
issuance thereof in a protocol, registry, or official book.

The same penalty shall be imposed upon any

ecclesiastical minister who shall commit any of the
offenses enumerated in the preceding paragraphs of this
article, with respect to any record or document of such
character that its falsification may affect the civil status of
persons (Art 171, RPC)
– Any public officer who, in his official capacity, deals with
any person with regards to furnishing supplies, the
making of contracts, or the adjustments or settlement
of accounts relating to public property or funds shall
enter into an agreement with any interested party or
speculator or make use of any other scheme, to defraud
the Government ;(Art. 213 (1), RPC)

– Being entrusted with the collection of taxes, licenses,

fees and other imposts, shall be guilty of any of the
following acts or omissions: (Art 213 (2) RPC)
– demanding, directly, or indirectly, the payment of
sums different from or larger than those authorized
by law;

– failing voluntarily to issue a receipt, as provided by

law for any sum of money collected by him officially;

– collecting or receiving, directly or indirectly, by way of

payment or otherwise, things or objects of a nature
different from that provided by law.
Infidelity in the custody of documents

• Removal, concealment or destruction of documents- any

public officer who shall remove, destroy, or conceal
documents or papers officially entrusted to him .(Art. 226,
RPC)

• Officer breaking seal. Any public officer charged with the

custody of papers or property sealed by proper authority, who
shall break the seal or permits them to be broken. (Art. 227,
RPC)

• Opening of closed documents. Any public officer not included

in the provisions of the next preceding article who without
proper authority, shall open or shall permit to be opened any
closed papers, documents or objects entrusted to his custody.
(Art 228, RPC)
• Code of Conduct and Ethical Standards for Public
Officials and Employees (RA 6713)

• Other frauds and Illegal Exactions and Transactions

(Art. 214, Chapter Three, Title Seven, Book Two, RPC)
Thank You !!!!
 Responsibility of the Auditor
 Enforce submission of receipts and
disbursement records with –
all paid vouchers, ORs, reports and
supporting documents;
 Conduct examination and audit of the records, reports
and documents subm covering transactions under the
identified areas;
 As a result of his exam and audit, prepare the
pertinent NS/ND/NC and AOM in accordance with
Sec 8-11 of the RRSA
 Responsibility of the Auditor
 Serve the AOM, NS, NC,ND, NFD or COE to
persons concerned/responsible/liable in
accordance with Sec 2 of Rule III hereof;

 Sign NFD for disallowances/charges made by

him in accordance with Sec 22 hereof;
 Responsibility of the Auditor
 Prepare the COE for disallowances/ charges
issued by him for the signature of the Director;
 Monitor the enforcement of the COE issued by
the authorized officers pursuant to these rules
and
 Report to his Director the action taken by the
agency thereon pursuant to Section 23.4
hereof;
 Responsibility of the Auditor
 Issue the NSSDC when an audit
suspension/disallowance/charge has been settled
pursuant to Sec 13 hereof;
 Prepare and transmit a quarterly SASDC to the
agency head and accountant pursuant to Sec 14
hereof; and
 Undertake such other responsibilities as provided
inthese Rules or other existing regulations of this
Commission.
 Responsibilities of the DIRECTOR
 General supervision and review in the audit
and settlements of accounts;

 Act on appeals pursuant to Sec 18 of Chapter

IV;

 Sign the NFD for decisions rendered by him in

accordance with Sec 22 hereof;
 Responsibilities of the DIRECTOR
 Sign the COE for decisions rendered by him and by the
Auditor inaccordance with Sec 23 hereof;
 Consolidate the SASDCs for all auditees under his jurisdiction.
In the regions, the consolidation shall be by cluster and sector
for quarterly submission to to the cluster/sector concerned for
purposes of national consolidation;
 Other responsibilities as provided in these Rules and other
existing regulations of this Commission