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1. 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 parties;
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 the government.

B. Conduct canvass of prices or referral to other proper government officials to determine reasonableness of price.

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.