INTERNAL AUDIT AND CONTROL SYSTEM

A. Compliance with COA’s Audit observation memorandum (AOM).

1. What is COA’s AOM?

The Audit Observation Memorandum (AOM) of the Commission on Audit (COA) is a notification issued to Local Chief Executive and/or other officials concerned relative to the finding, observation or other deficiencies noted in any of the transactions, contracts or programs of the LGU which require comments and reply within a reasonable time.

Unsatisfactory or incomplete compliance with AOM’s usually form part of the Annual Audit Report at the end of the year.

2. What are the steps necessary to facilitate compliance with AOM’s?

a. Upon receipt of the AOM by the office of the Governor/Mayor, a copy of it must be provided within the day to the office of the Administrator.

b. The office of the Administrator shall furnish concerned offices of a copy of the AOM and asks them to prepare written comments and justification together with supporting documents and other evidence within 2 days.

c. Coordinating meeting is to be called by the Administrator office within 5 days after receipt of the AOM to agree on the contents of the management comment.

d. The Administrator office shall draft the management comment and provides each department concerned a copy.

e. Once the management comment is finalize, the Administrator Office shall seek the Local Chief Executives approval and signature.

f. The Administrator office shall ensure that the management comment shall be submitted to the commission on audit 15 days after receipt of AOM.

3. What happens after the submission of the management comment to COA?

The more important job of the Administrator’s Office is to track commitments of all departments concerned towards full compliance to the AOM.