A senior administration lawmaker on Thursday, August 19 proposed the reactivation of the pre-audit system of examining disbursements of public funds to address controversies triggered by adverse audit findings of the Commission on Audit (COA) on government agencies.

San Jose del Monte City Rep. Florida “Rida” P. Robes aired the proposal as the House Committee on Public Accounts resumes its inquiry into the COA report that P67.32 billion in COVID-19 funds has been mismanaged by the Department of Health.

Robes explained that while the process of pre-audit can be more lengthy, it can dramatically prevent questions on disbursements and use of public funds because projects and contracts are audited even before funds are released and in the process protect the credibility of institutions as well as elected and appointed officials while in service.

Robes, chairperson of the House Committee on Public Participation, has filed House Bill 7124 seeking to institutionalize the post-audit system in auditing disbursements of funds. She said this will prevent or minimize quesitons on how public funds are used.

Presently, COA uses the post-audit system in examining disbursements of government funds.

Robes explained that under HB 7124, a pre-audit system will be observed in the review of all contracts and transactions involving public funds.

This will ensure that government funds are used according to what they were allocated for within the allotted period.

Under her proposed bill, all expenditures and uses of public funds pertaining to infrastructure projects, procurement of goods and consulting services, including lease of goods and real property, of any branch, office agency or instrumentality of the government, including state universities and colleges, government-owned and controlled corporations, government financial institutions and local government governments shall undergo mandatory pre-audit before any funds are released for such projects or contracts.

“This system is for the protection of our officials, our people and our institutions because it ensures that the government agency has the capacity to implement the program within the allotted period,” said Robredo.

To avoid delay in the disbursements of funds, the bill provides that COA will issue Certificate of Pre-Audit within a period of 15 days from receipt of all pertinent documents. If the COA does not issue a certificate, it is mandated to decline the issuance of the same, on valid and legal grounds within a period of 15 days from receipt of all pertinent documents relative to the intended disbursement of public funds.

To implement the pre-audit system, the bill creates a Pre-Audit Office at the COA for the manpower requirement to guarantee immediate compliance of the system’s requirements.

For purposes of transparency, the COA is mandated to submit an annual report to the President of the Philippines and to Congress on the status of the implementation of the pre-audit system not later than June 30 of every year following its approval.

“With the controversy hounding the Department of Health and other government agencies and instrumentalities, this affects the credibility of our officials, our institutions and the delivery of goods and services. It is the Filipino people who suffer,” stressed Robes.