2. Section 1 Commission on Audit is composed of a Chairman and two Commissioners, who shall be; natural-born citizens of the Philippines at least thirty-five years of age certified public accountants with not less than ten years of auditing experience or members of the Philippine Bar who have been engaged in the practice of law for at least ten years and must not have been candidates for any elective position in the elections immediately preceding their appointment
3. The Chairman and the Commissioners shall be appointed by the President with the consent of the Commission on Appointments for a term of seven years without reappointment. Of those first appointed, Chairman shall hold office for seven years One Commissioner for five years and the other Commissioner for three years, without reappointment.
4. Qualifications of members. They are the following: (1) They must be natural-born citizen of the Philippines (2) They must be at least thirty five(35) years of age at the time of their appointment; (3) They must be certified public accountants with not less than ten (10) years of auditing experience or members of the Philippine Bar who have been engaged in the practice of law for at least ten (10) years; and (4)They must not have been candidates for any elective position in the elections preceding their appointment.
5. Qualification of members. The requirement that the members should either be a CPA or a lawyer is in order to enable them to carry out their functions and duties efficiently and intelligently without relying merely upon their subordinate employees. The very nature of their functions calls for competence both in the field of law and accountancy. At no time, therefore, shall all members of the Commission belong to the same profession.
6. Appointment and terms of office The Chairman and the Commissioners are appointed by the President with the consent of the Commission on Appointments for a term of seven (7) years without reappointment. Commissioners- first appointed for a term of less than seven (7) years are likewise ineligible for reappointment. Constitution- provides for the rotation of the appointments regular and fixed intervals of two (2) years.
7. Appointment and terms of office Member- appointed to any vacancy shall serve only for the unexpired portion of the term of the predecessor. The appointment or designation of any member in a temporary or acting capacity is similarly prohibited.
8. Purpose of the commission. The Commission on Audit has been established as an independent body to see to it that government revenues and expenditures are duly accounted for and the public funds are not disposed of except in conformity with the purpose for which such funds have been appropriated. The overriding objective is to make the accountability of public officers entrusted with receipt, custody or disposal of public funds a reality. The importance, therefore, of the Commission on Audit cannot be overestimated.
9. Section 2 (1) The Commission on Audit shall have the power, authority and duty to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and 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 a post-audit basis:
10. (a) constitutional bodies, commissions and offices that have been granted fiscal autonomy under this Constitution; (b) autonomous state colleges and universities; (c) other government-owned or controlled corporations and their subsidiaries; and (d) such non-governmental entities receiving subsidy or equity, directly or indirectly, from or through the government, which are required by law or the granting institution to submit to such audit as a condition of subsidy or equity.
11. However, where the internal control system of the audited agencies is inadequate, the Commission may adopt such measures, including temporary or special pre-audit, as are necessary and appropriate to correct the deficiencies. It shall keep the general accounts of the Government and, for such period as may be provided by law, preserve the vouchers and other supporting papers pertaining thereto.
12. (2) The Commission shall have exclusive authority, subject to the limitations in this Article, to define the scope of its audit and examination, establish the techniques and methods required therefore, and promulgate accounting and auditing rules and regulations, including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties.
13. They are the following: (1) To examine, audit, and settle accounts – The commission on Audit has the power , authority and duty to examine, audit, and settle all accounts pertaining to: (a) the revenue and receipts of the government or any of its subdivisions, agencies or instrumentalities, including on a post-audit basis the four (4) classes of entities mentioned; and (b) All expenditures or uses of funds and property owned or held in trust by, pertaining to the government , etc.
14. They are the following: (2) To act as central accounting office of the government – The Commission on Audit keeps the general accounts of the government and, for such period as may be provided by law, preserved the vouchers and other supporting papers pertaining thereto. (3) To define the scope of its audit and examination, etc -The Commission has exclusive authority to define the scope of its audit and examination and establish the techniques and methods required thereof.
15. (4) To promulgate accounting and auditing rules and regulations – Such rules and regulations shall include those for the prevention as well as disallowance of irregular, unnecessary, excessive, extravagant or unconscionable expenditures or uses of government funds and property. Now, a violation of the rules and regulations empowers the Commission on Audit to disapprove expenditures of public funds, making it a real guardian of the public treasury.
16. (5) To submit an annual financial report and recommend measures – It is this function of the Commission on Audit which will enable Congress to know how faithfully its appropriations laws have been carried out, and guide it in the enactment of the appropriations aw for the following year.
17. (6) To perform other duties and functions – Under present law, the Commission on Audit has also the function or authority, among others, to adjust and enforce the settlement of accounts subsisting between agencies of the government; to assist in the collection and enforcement of all debts and claims, and the restitution of all funds or the replacement or payment at a reasonable price of property, found to be due to the government or any of its subdivisions, agencies, or instrumentalities; to compromise or release any claims or settle liability to any government agency not exceeding P10,000.00; to examine and audit the books, records and accounts of public utilities in connection with the fixing of rates of every nature, etc.
18. Section 3 No law shall be passed exempting any entity of the Government or its subsidiary in any guise whatever, or any investment of public funds, from the jurisdiction of the Commission on Audit.
19. Section 4 The Commission shall submit to the President and the Congress, within the time fixed by law, an annual report covering the financial condition and operation of the Government, its subdivisions, agencies, and instrumentalities, including government-owned or controlled corporations, and non-governmental entities subject to its audit, and recommend measures necessary to improve their effectiveness and efficiency. It shall submit such other reports as may be required by law.
