Guidelines for Prevention of Irregular Government Expenditures

COA Circular No. 2012 COA Circular No. 2012- -003 October 29, 2012 October 29, 2012 Guidelines for the Prevention and Disallowance of Irregular, Unnecessary, Excessive, Extravagant and Unconscionable Expenditures (For CPAs in Government Sector) 003 As Presented by: Atty. Roland Caf Pondoc, CPA, MBA, REA, REB, Lt. Col. PAF (Res.) PICPA National President Former COA Commissioner March 27, 2025 March 27, 2025 PHALGA Summit PHALGA Summit Laoag City Laoag City

Section Section 33 unnecessary, excessive, or extravagant expenditures of funds or uses of property; power to disallow such as expenditures. - The Commission shall promulgate such auditing and accounting rules and regulations as shall prevent irregular, unnecessary, excessive, or extravagant expenditures or uses of government funds or property. 33, , PD PD No No. . 1445 1445. . Prevention of irregular, 2

IIUUEE stands for: IIUUEE stands for: I I - - rregular rregular I I - - llegal llegal U U - - nnecessary nnecessary U U - - nconscionable nconscionable E E - - xcessive xcessive E E - - xtravagant xtravagant 3

Commission on Audit Commission on Audit DECLARATION OF POLICY DECLARATION OF POLICY Government funds and property shall be fully protected and conserved, and that IIUUEE expenditures or uses of such funds and property should be prevented. The level/rank of use and mission, size, systems, structure, strategy, skills, style, and nature of operation of a government agency shall be considered in determining whether expenditures are IIUUEE. 4

Factors to be taken into consideration before Factors to be taken into consideration before issuance of a Notice of Disallowance (ND): issuance of a Notice of Disallowance (ND): Urgency of need Time and place of purchase Availability of needed goods and services in the market Place and origin of goods Volume or quantity Service warranties Quality Special features Generally accepted practices 5

IRREGULAR EXPENDITURES IRREGULAR EXPENDITURES Non-adherence to: established rules regulations procedural guidelines policies principles or practices that have gained recognition in laws. A transaction conducted in a manner that deviates or departs from, or which does not comply with standards set is deemed irregular. A transaction which fails to follow or violates appropriate rules of procedure is, likewise, irregular. 6

Cases that are considered "Irregular" Expenditures Cases that are considered "Irregular" Expenditures or Uses of Government Funds and Property or Uses of Government Funds and Property The grant of special service incentive award in violation of CSC MC No. 42 is irregular and excessive despite the fact that it was in accordance with the 2009 PSALM corporate operating budget duly approved by the PSALM board and the DBM. The grant of special service incentive award falls under the category of loyalty award that must comply with the provisions of CSC MC No. 42, which requires that the merit award is granted only after the first 10 years of service computed at a maximum amount of P1,000.00 per year and every five years thereafter. (PSALM No No. . 218310 218310, , November November 16 16, , 2021 2021) ) PSALM vs vs COA, COA, G G. .R R. . 7

Cases that are considered "Irregular" Expenditures Cases that are considered "Irregular" Expenditures or Uses of Government Funds and Property or Uses of Government Funds and Property Supreme Court (SC): COA committed no error in affirming the disallowance of the procured health insurance on the ground of PMDC's failure to obtain the approval of the President in granting medical benefits to its officers and employees from FortuneCare pursuant to PD 1597. The grant was considered unauthorized and irregular due to lack of prior presidential approval. (G.R. No. 245273, July 27, 2021) 27, 2021) G.R. No. 245273, July 8

Cases that are considered "Irregular" Expenditures Cases that are considered "Irregular" Expenditures or Uses of Government Funds and Property or Uses of Government Funds and Property Failure of the agency to meet the conditions for the grant of honoraria and incentives particularly DBM Circular No. 2007-2 dated October 1, 2007. Also, the wrongful charge of the disallowed incentives to MOOE instead of PS. (Juan B. Ngalob, et al. vs. Commission on Audit, G.R. No. 238882, January 5, 2021) Non-compliance with the rules and regulations governing the grant of Collective Negotiation Agreement (CNA) incentives. (Ser John Pastrana, et al. vs. Commission on Audit/Mary Jane G. Ysmael vs. Commission on Audit, G.R. No. 242083, June 15, 2021) 9

Cases that are considered "Irregular" Expenditures Cases that are considered "Irregular" Expenditures or Uses of Government Funds and Property or Uses of Government Funds and Property Grant of amelioration allowance or any similar benefits to private employees of service contractors contrary to Administrative Order (A.O.) No. 365 dated October 10, 1997. (HDMF vs. COA, G.R. No. 157001, October 19, 2004) Loyalty service award granted to employees that have not yet rendered the minimum service of ten years in the government required under CSC Memorandum Circular No. 42, s. 1992. (BCDA vs. COA, G.R. No. 142760) 10

Cases that are considered "Irregular" Expenditures Cases that are considered "Irregular" Expenditures or Uses of Government Funds and Property or Uses of Government Funds and Property Payment of COLA and other allowances deemed integrated in the salary per DBM-NCC No. 59 and DBM-CCC No. 10 (Victoria C. Gutierrez, et al. vs. DBM, G.R. No. 153266). Grant of food allowance, rice subsidy and health care allowance as there is no law authorizing the grant of such allowances (BFAR Employees Union, R.O. VII vs. COA, G.R. No. 169815 and Benguet State University vs. COA, G.R. No. 169637). 11

Cases that are considered "Irregular" Expenditures Cases that are considered "Irregular" Expenditures or Uses of Government Funds and Property or Uses of Government Funds and Property Payment of CNA cash incentive/benefit to rank-and-file employees where the conditions required in determining "savings" under Public Sector Labor Management Council (PSLMC) Resolution No. 02, s. 2003 dated May 19, 2003 and DBM BC 2006-001 dated Feb. 1, 2006 are are not not met met. Honoraria granted to members of special committees such as an Executive Committee, Program on Awards and Incentives for Service Excellence and Regional Selection and Promotions Board, which are performing functions inherent in the regular functions of the agency. 12

ILLEGAL EXPENDITURES ILLEGAL EXPENDITURES Expenditures that are contrary to law. Irregular expenditures are different from illegal expenditures Irregular expenditures are different from illegal expenditures since illegal expenditures would pertain to expenses incurred since illegal expenditures would pertain to expenses incurred in violation of the law whereas, irregular expenditures are in violation of the law whereas, irregular expenditures are incurred in violation of applicable rules and regulations other incurred in violation of applicable rules and regulations other than the laws. than the laws. 13

Cases that are considered "Illegal" Expenditures or Cases that are considered "Illegal" Expenditures or Uses of Government Funds and Property Uses of Government Funds and Property The unauthorized issuance and receipt of [Educational Assistance Allowance (EAA) and Birthday Gift to PhilHealth officials and employees are tantamount to double compensation justifying COA disallowance. The resolutions of the Board of Directors granting the EAA and Birthday Gift sans executive/DBM review and approval as required under the laws are ultra vires acts, which rendered the subsequent disbursements illegal illegal and vs. COA, G.R. No. 250787. September 27, 2022) and irregular irregular. . (PhilHealth 14

Cases that are considered "Illegal" Expenditures or Cases that are considered "Illegal" Expenditures or Uses of Government Funds and Property Uses of Government Funds and Property SC: The payment by the NHA of the benefits and allowances, which amounted to more than P367M to its employees is tantamount to illegal disbursement of public funds and was correctly disallowed. The benefits and allowances subject of the assailed Notice of Disallowances with the exception of the RATA, were not excluded from the integration into the standardized salary rates under R.A. No. 6758. Meanwhile, as to the continued grant of meal and rice subsidy and children's allowances under CCC No. 10-99, the same requires that the recipient employee must be an incumbent as of June 30, 1989 and was actually receiving said allowances on or prior to the said date. In effect, incumbent employees as of June 30, 1989 are the only qualified recipients. RATA is granted only to officers or employees whose positions are enumerated under the GAA or are declared by the DBM as equivalent ranks of the enumerated positions. Thus, the RATA granted to NHA employees whose positions are not within the purview of the pertinent provision under the GAA is disallowable. (NHA vs. COA, G.R. No. 239936. June 21, 2022) 15

Cases that are considered Illegal" Expenditures or Cases that are considered Illegal" Expenditures or Uses of Government Funds and Property Uses of Government Funds and Property Payment of claims under a contract awarded not strictly in accordance with the procedures prescribed under Republic Act (R.A.) No. 9184 and its Revised Implementing Rules and Regulations (IRR): Certification of payments to the service contractors as lawful and necessary despite the absence of a public bidding. (Maura Baghari-Regis vs. Commission on Audit, G.R. No. 210900, December 1, 2020) For contracts awarded under an alternative mode of procurement for items that should have undergone complete public bidding process and eventually resulted in overpricing (Dir. Fredric Villanueva, et.al. vs. COA, G.R. No. 151987, March 18, 2005, and Venancio R. Nava vs. Rodolfo G. Palattao, et al., G.R. 160211, August 28, 2006) 16

Cases that are considered Illegal" Expenditures or Cases that are considered Illegal" Expenditures or Uses of Government Funds and Property Uses of Government Funds and Property Contracts awarded to a bidder who failed to meet the minimum amounts required to be put up at the time the bids were submitted (Demosthenes P. Agan, Jr. et al., MWU-NLU and PALEA vs. PIATCO, lnc., MIAA, DOTC and Sec. L. Mendoza, G.R. No. 155001) Delivery of equipment that is not brand new and does not conform to the specifications called for in the Invitation to Bid. (Ramon T. Lim vs. COA, G.R. No. 130325) 17

Cases that are considered Illegal" Expenditures or Cases that are considered Illegal" Expenditures or Uses of Government Funds and Property Uses of Government Funds and Property In case of regularly enacted budget For projects described in appropriation ordinances in generic terms such as infrastructure projects, inter-municipal waterworks, drainage and sewerage, flood control, irrigation systems projects, reclamation projects, roads and bridges. For purchase of goods and services which are neither specified in the appropriation ordinance nor encompassed within the regular personal services and maintenance operating expenses. 18

Cases that are considered Illegal" Expenditures or Cases that are considered Illegal" Expenditures or Uses of Government Funds and Property Uses of Government Funds and Property Charges to accounts payable not founded on valid claims in violation of Section 46 of P.D. No. 1177 (Fe D. Laysa vs. COA, G.R. No. 128134). Use of funds intended for a specific purpose/project, for other purposes such as administrative and miscellaneous expenses of the implementing agency, and for projects not intended to be implemented under the program. Grant or cash advance for no specific stated public purpose (Section 89 of PD 1445) 19

Cases that are considered Illegal" Expenditures or Cases that are considered Illegal" Expenditures or Uses of Government Funds and Property Uses of Government Funds and Property In case or re-enacted budget For new contracts entered into by the local chief executive covering contractual obligations included in the previous year's annual and supplemental budgets. 20

UNNECESSARY EXPENDITURES UNNECESSARY EXPENDITURES Could not pass the test of prudence or the diligence of a good father of a family, thereby denoting non-responsiveness to the exigencies of the service Not supportive of the implementation of the objectives and mission of the agency relative to the nature of its operations Incurrence of expenditure not dictated by the demands of good government the utility of which cannot be ascertained at a specific time Can be dispensed with without loss or damage to property The mission and thrusts of the agency must be considered in determining whether or not an expenditure is necessary 21

Cases Cases that Uses Uses of of Government Government Funds that are are considered considered "Unnecessary" Funds and "Unnecessary" Expenditures and Property Property Expenditures or or Reimbursement of extraordinary expenses incurred by a non- salaried official (COA Decision No. 2022-180 dated January 24, 2022) Purchase of Skagen wrist watches as centennial anniversary tokens (COA Decision No. 2022-415 dated January 28, 2022) Payment of life and health insurance premiums for the employees to private insurance agencies (COA Decision No. 2022-407 dated January 24, 2022) Hiring of consultants whose functions are redundant to the respective functions of concerned officials, for example hiring of procurement consultant, financial consultant or media consultant. 22

Cases that are considered "Unnecessary" Expenditures or Cases that are considered "Unnecessary" Expenditures or Uses of Government Funds and Property Uses of Government Funds and Property Purchase of high-end or expensive models/brands of electronic gadgets such as mobile phones, desktops, laptops, etc. unless justified by circumstances. Construction of buildings and/or procurement of equipment not actually needed or without any intended purpose, not put to use or use for purposes other than the intended purpose, not completed and could not be properly maintained or operations sustained. 23

Cases Cases that Uses Uses of of Government Government Funds that are are considered considered "Unnecessary" Funds and "Unnecessary" Expenditures and Property Property Expenditures or or Continuous repair of vehicles and equipment already considered beyond economic repair as evidenced by frequent breakdown and non-use after repair. Grant of overtime pay for work that is not of urgent nature as to require completion within a specified time or that can be undertaken during regular office hours. 24

UNCONSCIONABLE EXPENDITURES unreasonable and immoderate no man in his right sense would make, nor a fair and honest man would accept as reasonable those incurred in violation of ethical and moral standards. 25

Cases that are considered Unconscionable" Expenditures of Government Funds Payment of transportation and incidental expenses to barangay officials who attended the orientation seminar or Lakbay-Aral on Community-Based Monitoring System (CBMS) and Good Governance in Baguio City, in the total amount of P5,373,000.00. (COA Decision No. 2018-319 dated March 15, 2018) Grant of exorbitant and unreasonable bonuses, allowances and fringe benefits to public officials and employees and members of governing boards. Live-in seminars in five-star hotels with significant numbers of participants and unreasonable period of time. Payment of excessive and unreasonable retirement benefits. Purchase of supplies and equipment/machineries and other farm inputs in significant quantities far exceeding the requirements and were not actually needed, thus, left idle and unused. materials including agricultural 26

Cases that are considered Unconscionable" Expenditures of Government Funds Extension of loans in significant and unreasonable amount to unqualified borrowers whereby recovery of the loans granted is remote. Overpricing in significant amounts exceeding 100 percent of the current and prevailing market value. Payment for repairs of government equipment involving significant amount exceeding 100 percent of the current market value price of the same or similar equipment. Release of significant amounts to NGOs/POs without evaluating the necessity of the project, the needs of the intended recipients and the reasonableness of the project requirements. 27

EXCESSIVE EXPENDITURES EXCESSIVE EXPENDITURES Unreasonable expenses - immoderate quantity and exorbitant price Expenses exceeding what is usual or proper Unreasonably high expenses and beyond just measure or amount Expenses in excess of reasonable limits 28

Cases that are considered "Excessive" Cases that are considered "Excessive" Expenditures of Government Funds Expenditures of Government Funds The SC held that the COA correctly rendered as excessive the cellular phone expenses which were paid in excess of the Cagayan De Oro Water District Board Resolution that prescribed what is usual or proper, or the reasonable limit of the cellular phone expenses of its own personnel. The COA correctly relied on this basis as comparison and COWD had the burden of proof to justify the excess over its own rates. (G.R. No. 213789, April 27, 2021) (G.R. No. 213789, April 27, 2021) 29

Cases that are considered "Excessive" Cases that are considered "Excessive" Expenditures of Government Funds Expenditures of Government Funds SC: COA properly disallowed the excessive and illegal payment of separation benefits to an employee with an amount derived by using a Length of Service Multiplier under a TRANSCO Circular issued by the TRANSCO President. The Length of Service Multiplier results in excessive benefits and was prescribed without the requisite authority, in direct contravention of the EPIRA. (TRANSCO vs. COA, G.R. No. 232199, December 01, 2020) TRANSCO vs. COA, G.R. No. 232199, December 01, 2020) 30

Cases Cases that of of Government Government Funds that are are considered considered "Excessive" Funds "Excessive" Expenditures Expenditures Payment of RATA and Clothing Allowance in excess of what has been provided for by the General Appropriations Act and the rates prescribed by the Department of Budget and Management. (COA Decision No. 2022-453 dated May 30, 2022) Payment for repair of government equipment at a cost exceeding 30 percent of the current market price of the same or similar equipment. Expenditures for supplies and materials including fuel inventory in quantities exceeding the normal three-month requirements, except except under under the circumstances enumerated under the pertinent provision of the GAA. Granting of cash advance in excess of estimated budget. 31

Cases that are considered "Excessive" Cases that are considered "Excessive" Expenditures of Government Funds Expenditures of Government Funds Honoraria paid to members of the Bids and Awards Committee and Technical Working Group in excess of the rates provided for under DBM Budget Circular No. 2004-5A dated October 7, 2005, and for procurement activities pertaining to a contract which was not yet awarded to the winning bidder (Joseph Peter Sison, et al. vs. Rogelio Tablang, et al., G.R. No. 177011, June 5, 2009) Grant of year-end benefits to consultants and to members of the Board who are not salaried officials of the government as they are not considered employees of the hiring agency (BCDA vs. COA, G.R. No. 177011 dated June 5, 2009) 32

Cases Cases that of of Government Government Funds that are are considered considered "Excessive" Funds "Excessive" Expenditures Expenditures Release of funds to NGOs/POs in excess of the project requirements. Using expensive thermoplastic materials with longer life span on an asphalt overlay with shorter life span. Procurement of materials/items in excess of the requirements which eventually expires such as vaccines, medicines, seeds, fertilizer, pesticides, among others. Inclusion in the contract of a specific infrastructure project, special items such as motor vehicles and computers which unnecessarily increased project costs due to the provision of indirect costs. Procurement and distribution of seeds to farmer in excess of the required number of bags of seeds per hectare. 33

EXTRAVAGANT EXPENDITURES EXTRAVAGANT EXPENDITURES Those incurred without restraint, judiciousness, and economy Exceed the bounds of propriety Are immoderate, prodigal, lavish, luxurious, grossly excessive, and injudicious 34

Cases that are considered "Extravagant" Expenditures of Government Funds Grant of Performance Incentive Benefits equivalent to five and one-half monthly basic salary to officials and employees despite the incurrence of a net loss. (National Power Corporation Board of Directors et al. vs. COA, G.R. No. 218051 dated January 26, 2021) Purchase of wines, liquors, cigars and cigarettes, except when served during state functions and conferences and conventions. Payment for rent of expensive halls or rooms in luxury hotels or restaurants used for meetings/seminars and other official functions, except when such hotels or restaurants are used for government-sponsored international conventions, meetings and the like. Conduct of out-of-town meeting which can be made within the office premises. Hiring of expensive vans, cars, aircraft when there is available ordinary public conveyance, except in meritorious cases and justified by prevailing circumstances. government-sponsored international 35

Cases that are considered "Extravagant" Expenditures of Government Funds Use of expensive decorative lamp posts and other similar items/fixture. Luxurious furnishings for government buildings, except those intended for showcase, trade and commerce, promotion of arts and culture and use of dignitaries. Installation of highly sophisticated outdoor signs, billboards and neon signs advertising the office, except for banks, trading corporations, hotels, or buildings used for culture and arts. 36

Administrative Issuances/Laws applicable to Common Government Transactions 37

Cash Advances Amendment to Item 7.1 of COA Circular No. 97-002 dated February 10, 1997 on the Granting, Utilization and Liquidation of Cash Advances Increasing the total cash accountability of each accountable officer from P2,000.00 to P5,000.00 for fidelity bond purposes COA Circular No. 2006-005 July 13, 2006 dated COA Memorandum No. 2017-010 May 15, 2017 Restatement with Amendment of All Issuances Governing Submission Unliquidated Cash Advances, Fund Transfers and other Receivables of Status Reports of dated CSC Memorandum Circular No. 23, s. 2019 October 28, 2019 Revised Guidelines on the Settlement of Cash Advance and the Penalty to be Imposed for Failure of an Accountable Officer to Liquidate Cash Advance Within the Prescribed Period dated 38

Traveling Expenses Prescribing Rules and Regulations and Rates of Expenses and Allowances for Official Local and Foreign Travels of Government Personnel Executive Order No. 77 dated March 15, 2019 COA Resolution No. 2020-015 January 31, 2020 Prescribing secondary documents in lieu of travel tickets and certificates of appearance, in substantial compliance with Sections 3.1.2.2 and 3.2.2.2 of COA Circular No. 96-004 dated April 19, 1996 and Section 1.2.4 of COA Circular No. 2012-001 dated June 14, 2012 dated COA No. 2020-022 dated December 10, 2020 Memorandum 39

Salaries and Step Increment Salary Standardization Law of 2019 Republic Act No. 11466 dated July 22, 2019 CSC-DBM Joint Circular No. 1, s. 2012 dated September 3, 2012 Rules and Regulations on the Grant of Step Increment/s Due to Meritorious Performance and Step Increment Due to Length of Service 40

Hazard Pay Authorizing the Grant of Hazard Pay to Government Personnel who Physically Report for Work during the Period of Implementation of an Enhanced Community Quarantine and a Modified Enhanced Community Administrative Order no. 26 (s. 2020), and for Other Purposes Authorizing the Grant of Hazard Pay to Government Personnel who Physically Report for Work during the Period of Implementation of an Enhanced Community Quarantine relative to the COVID-19 Outbreak Authorizing the Grant of Active Hazard Duty Pay to Human Resources for Health Serving in the Frontlines during the State of National Emergency Guidelines on the Grant of the COVID-19 Active Hazard Duty Pay Administrative Order No. 43, s. 2021 dated June 1, 2021 Quarantine, Amending Administrative Order No. 26, s. 2020 dated March 23, 2020 Administrative Order No. 35, s. 2020 dated November 16, 2020 DBM-DOH Joint Circular No. 1, s. 2020 dated November 25, 2020 DBM-DOH Joint Circular No. 1, s. 2016 dated July 15, 2016 Amendment to DBM-DOH Joint Circular No. 1 s. 2012 Regarding the Rules and Regulations on the Grant of Compensation- Related Magna Carta Benefits to Public Health Workers (PHWs) 41

Longevity Pay DBM-DSWD Joint Circular No. 1, s. 2018 dated December 27, 2018 DBM-DOH Joint Circular No. 1, s. 2012 dated November 29, 2012 as amended by DBM DBM- -DOH Joint DOH Joint Circular No. 1, Circular No. 1, s. 2016 s. 2016 Rules and Regulations on the Grant of Compensation-Related Magna Carta Benefits to Public Social Workers (PSWs) Rules and Regulations on the Grant of Compensation-Related Magna Carta Benefits to Public Health Workers (PHWs) 42

Overtime Pay & Year-end Bonus and Cash Gift CSC-DBM Joint Circular No. 2, s. 2015 dated November 25, 2015 DBM Budget Circular No. 2016- 4 dated April 28, 2016 Policies and Guidelines on Overtime Services and Overtime Pay for Government Employees Updated Rules and Regulations on the Grant of the Year-End Bonus and Cash Gift for FY 2016 and Years Thereafter 43

Retirement Benefits DBM Budget Circular No. 2013-1 dated April 12, 2013 DBM Budget Circular No. 2013- 1A dated May 3, 2013 Guidelines Requirements Processing/Payment of Retirement Benefits of Government Employees Clarification on Annex A of Budget Circular No. 2013-1 Re: Guidelines Prescribing the Documentary Requirements and Processing/Payment of Retirement Benefits of Government Employees Amendment to COA Circular No. 2012-001 dated June 14, 2012 prescribing additional documentary requirement for retirement benefits and increasing the amount of cash advance requiring fidelity bond from P2,001 to P5,001 Prescribing the Procedures Documentary and in Procedures in COA Circular No. 2013-001 dated January 10, 2013 44

Terminal Leave and CNA Incentive DBM Budget Circular No. 2021- 1 dated April 25, 2021 Amendment to the List of Documentary Requirements for the Release of Funds Covering the Payment of Retirement Benefits [Terminal Leave Benefits] Devolved to Local Government Units (LGUs) of Personnel DBM Budget Circular No. 2022- 3 dated October 19, 2022 Guidelines on the Grant of the Collective Negotiation Agreement (CNA) Incentive for FY 2022 45

Honoraria and Other Allowances COA Circular No. 2016-001 dated May 31, 2016 Amendment to COA Circular No. 2013-003, dated January 30, 2013, re: Reiteration of Audit Disallowance of Payments Without Legal Basis of Allowances, Incentives, and Other Benefits of Government Officials and Employees in the NGAs, LGUs, and GOCCs and their Subsidiaries Amendment to COA Circular No. 2013-003 dated January 30, 2013 re: Reiteration of Audit Disallowance of Payments without Legal Basis of Allowances, Incentives, and Other Benefits of Government Officials and Employees in the NGAs, LGUs and GOCCs and their Subsidiaries Reiteration of Audit Disallowance of Payments without Legal Basis of Allowances, Incentives, and Other Benefits of Government Officials and Employees in the NGAs, LGUs, and GOCCs and their Subsidiaries COA Circular No. 2013-003A dated September 18, 2013 COA Circular No. 2013-003 dated January 30, 2013 46

Hiring of Private Lawyers COA Circular No. 2021-003 dated July 16, 2021 Exempting Government Agencies and Instrumentalities, Including Government-Owned or Controlled Corporations from the Requirement of Written Concurrence from the Commission on Audit on the Engagement of: (1) Lawyers under Contracts of Service or Job Order Contracts; and (2) Legal Consultants, subject to specific conditions. This Circular does not apply to LGU, as there are specific provisions of provincial, city and municipal legal officers under RA No. 7160, or the Local Government Code of 1991.* COA Memorandum No. 2016-010 dated March 22, 2016 Dissemination of the Revised Guidelines on the Deputation of Private Lawyers and Special Attorneys Issued by the Solicitor General dated December 15, 2015. All requests for deputation of private lawyers by LGUs shall be denied outright. 47

Purchase and Use of Motor Vehicles DILG Memorandum Circular No. 2022- 105 dated August 23, 2022 Revised Policy Guidelines on Motor Vehicle Purchase/ Acquisition, Use, and Rental by the Local Government Units DBM Budget Circular No. 2022-1 dated February 11, 2022 Omnibus Guidelines on the Acquisition, Use, Rental, and Replacement of Government Motor Vehicles Administrative Order No. 14 dated December 10, 2017 Consolidating and Rationalizing the Rules on the Acquisition of Government Motor Vehicles, Adopting a Centralized System of Procurement Therefor, and for Other Purposes 48

Procurement of Goods, Infrastructure Projects and Consulting Services COA-GPPB Joint Memorandum Circular No. 1 dated March 26, 2020 DBM Circular Letter No. 2011-6A dated September 28, 2011 DBM Circular Letter No. 2011-6 dated August 25, 2011 Emergency Procurement by the Government during a State of Public Health Emergency Arising from the Coronavirus Disease 2019 (COVID-19) Addendum to Circular Letter (CL) No. 2011-6 Directing the Use of the Procurement Service (PS) and the Philippine Procurement System (PhilGEPS) in Procurement Activities Government Electronic 49

Confidential and Intelligence Activities COA-DBM-DILG- GCG-DND Joint Circular No. 2015- 01 dated January 8, 2015 Guidelines on the Entitlement, Release, Use, Reporting and Audit of Confidential and/or Intelligence Funds 50