Amending Section 2 of Executive Order No. 19 and Section 20 of Presidential Decree No. 1445
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Amending Section 2 of Executive Order No. 19 and Section 20 of Presidential Decree No. 1445
Executive Order No. 271
January 1, 1987
Case Overview and Summary
Summary of Executive Order No. 271Amending the Computation of Audit Cost for Government Corporations
- Amends Section 2 of Executive Order No. 19 and Section 20 of Presidential Decree No. 1445 regarding the computation of audit cost chargeable to government corporations. (Section 1)
- For government-owned and/or controlled corporations and subsidiaries, the cost of audit services shall be based on:
- The actual cost of the audit function in the corporation, plus (Section 1)
- A reasonable rate to cover overhead expenses. (Section 1)
- The actual audit cost shall include: (Section 1)
- Personal services.
- Maintenance and other operating expenses.
- Depreciation on capital and equipment.
- Out-of-pocket expenses.
- Section 20, first paragraph of Presidential Decree No. 1445 shall not apply to government-owned and/or controlled corporations. (Section 2)
- Provisions of Executive Order No. 19 and Presidential Decree No. 1445 not affected by this amendment shall remain in full force and effect. (Section 3)
- The Commission on Audit and the Department of Budget and Management shall jointly issue rules and regulations to implement this Executive Order. (Section 4)
- This Executive Order shall take effect on January 1, 1987. (Section 5)
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Executive Issuances
Executive Orders
audit cost
government corporations
Commission on Audit
operating budget
overhead expenses
actual cost
personal services
maintenance expenses
operating expenses
depreciation
capital equipment
out-of-pocket expenses
Department of Budget and Management
rules and regulations
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Amending Section 2 of Executive Order No. 19 and Section 20 of Presidential Decree No. 1445
Executive Order No. 271
•January 1, 1987
EXECUTIVE ORDER NO. 271 January 1, 1987
AMENDING SECTION 2 OF EXECUTIVE ORDER NO. 19 AND SECTION 20 OF PRESIDENTIAL DECREE NO. 1445
WHEREAS, Section 2 of Executive Order No. 19 amends Section 24 of Presidential Decree No. 1445 by providing a new scheme for computing the audit cost chargeable against government corporations, as follows:
"in the case of government-owned or controlled corporations or its subsidiaries, the cost of audit services shall be fixed at an amount equivalent to one fourth of one per centum (1/4 of 1%) of the operating budgets of these corporations/subsidiaries;"
WHEREAS, if implemented, such audit cost will result in iniquitous assessment to some corporations;
WHEREAS, there is a need to amend further the first paragraph of section 20 of Presidential Decree No. 1445 to rationalize the funding of government corporate audit cost;
WHEREAS, it is necessary to establish a reasonable rate of assessment based on auditing services rendered to government corporations.
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Executive Orders
audit cost
government corporations
Commission on Audit
operating budget
overhead expenses
actual cost
personal services
maintenance expenses
operating expenses
depreciation
capital equipment
out-of-pocket expenses
Department of Budget and Management
rules and regulations
EXECUTIVE ORDER NO. 271 January 1, 1987
AMENDING SECTION 2 OF EXECUTIVE ORDER NO. 19 AND SECTION 20 OF PRESIDENTIAL DECREE NO. 1445
WHEREAS, Section 2 of Executive Order No. 19 amends Section 24 of Presidential Decree No. 1445 by providing a new scheme for computing the audit cost chargeable against government corporations, as follows:
"in the case of government-owned or controlled corporations or its subsidiaries, the cost of audit services shall be fixed at an amount equivalent to one fourth of one per centum (1/4 of 1%) of the operating budgets of these corporations/subsidiaries;"
WHEREAS, if implemented, such audit cost will result in iniquitous assessment to some corporations;
WHEREAS, there is a need to amend further the first paragraph of section 20 of Presidential Decree No. 1445 to rationalize the funding of government corporate audit cost;
WHEREAS, it is necessary to establish a reasonable rate of assessment based on auditing services rendered to government corporations.
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by...
Login to see full content