General Procedures on Contract Review
A. Upon receipt of a copy of
the contract, the COA Auditor/agency officials concerned shall verify compliance
with laws, rules and regulations. Specifically, he shall:
1. Ensure that all documentary
and other requirements for each type of contract/agreement are complete
and in order and that all xerographic copies of documents are duly authenticated.
2. Examine the terms and conditions
and other contents of the contract. Determine whether the contract contains
the essential requisites under the law, to wit:
a. Consent of the contracting
b. Object certain which is
the subject matter of the contract; and
c. Cause of the obligation
which is established.
3. Ensure that funds are available
to cover the cost of the contract by examining the Certificate as to Availability
of Funds (CAF). Trace the amount specified in the CAF to the Journal and
Analysis of Obligations (JAO) to check whether the balance of the appropriation
is sufficient to cover the contract cost. See to it that the funds are
used for the specific purpose for which these are appropriated and that
these are charged against the proper allotment/object codes as spelled
out in the allotment release order.
4. Check whether the contract
was signed by the chief accountant as witness thereto.
5. Determine the authority,
legal responsibility and qualification of parties to enter into the contract.
Verify whether there is proper delegation of signing/approving authority
of agency officials.
6. Make sure that the concurrence
of other officials, where necessary, is obtained.
7. Ascertain that the parties
are not disqualified to enter into the contract.
8. See to it that the contract
is for a public purpose and that the same is not contrary to law, morals,
good customs, public order or public policy nor is it disadvantageous to
B. Conduct canvass of prices
or referral to other proper government officials to determine reasonableness
C. Prepare notice of defects/deficiencies
of the contract and forward same to agency officials concerned, together
with the copy of the contract, for appropriate action.