A Notice of Disallowance (ND) can be settled either through payment (refund) or through submission of the required documents and information.
When the persons liable immediately pay or refund the disallowed amount in full before the lapse of the 180- day period, they do not have to file their appeal. Once the official receipt and deposit slip are validated and found in order the auditor in charge will issue a Notice of Settlement of Disallowance (NSSDC).
However, in case the persons liable opt to submit the lacking documents and information, they still need to file an appeal at the Office of the COA Regional Director and pay the corresponding appeal fee. Their submitted documents and information will be verified by the audit team upon the Order of the COA Regional Director and will issue an Answer to the Appeal. The Office of the COA Regional Director will evaluate the Answer to the Appeal and will render its decision on the appeal filed.
If the decision is affirming the ND, the ND subsists. But the persons liable may still elevate their appeal to the Commission Proper. On the other hand, if the appeal is granted, the auditor in charge issues the NSSDC.