Cutie moves for mandatory pre-audit

CEBU, Philippines - Cebu City Rep. Rachel Marguerite “Cutie” Del Mar is pushing for the passage of a measure that requires all government expenditures to go through mandatory pre-audit examinations prior to the disbursement of public funds.

If del Mar’s House Bill 372 will be approved, all infrastructure projects, procurement of goods and consulting services of the government will go through mandatory pre-audit by the Commission on Audit (COA).

The pre-audit examination, according to del Mar, will protect the disbursement of public funds and conserve government resources as well as minimize losses from illegal expenditures.

"In these hard times, the government needs all the funds it can possibly save and have because of the alarming budgetary deficit," Del Mar said.

She added that the pre-audit may establish another level of review and may result in the delay and implementation of urgent government projects.

House Bill 372, if approved, would mandate COA to conduct thorough and complete pre-audit examination of all expenditures and uses of public funds on infrastructure projects, procurement of goods and consulting services, including lease of goods and real property on any branch, office, agency or instrumentality of the government.

Also included in the bill are government-owned and controlled corporations (GOCCs), financial institutions and state universities and colleges and local government units (LGUs).

The proposed act is not applicable to constitutional bodies and offices that were granted fiscal autonomy.

A pre-audit is the examination of documents supporting a transaction or a series of transactions before these are paid for and recorded.

Auditors are required to go over the transaction to make sure it is consistent with audit and accounting rules, even before public funds are released from the government's coffers. –  (FREEMAN)