Why was pre-audit lifted?

This Commission has resolved to re-affirm the concept that fiscal responsibility resides with agency management. Such concept is clearly provided in Section 2 of Presidential Decree No. 1445, the Government Auditing Code of the Philippines, thus: “all resources of government shall be managed, expended or utilized in accordance with law or regulations and safeguarded against loss or wastage resulting from illegal or improper disposition with a view to ensuring efficiency, economy and effectiveness in the operations of government. The primary responsibility for faithful adherence to this policy rests with the chief or head of the government agency concerned.”

Guided by the foregoing, and in order to accelerate the delivery of public services and ensure facilitation of government transactions, the Commission withdrew selective pre-audit under COA Circular No. 2009-002 and lifted all pre-audit activities being performed on financial transactions of the national government agencies, government owned and/or controlled corporations and local government units, except those required by existing law.

Source: Paragraphs 4 and 5, COA Circular No. 2011-002 dated July 22, 2011

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