Implementing Electronic Voucher (e-Voucher) Preservation: Guidelines for Government Entities

Introduction:

In today’s digital era, Commission on Audit (COA) is taking significant steps towards modernizing accounting and auditing procedures. To keep abreast with changing times and better serve stakeholders, COA has issued Circular No. 2023-006, which provides guidelines for the preservation of electronic vouchers, supporting documents, and other records and reports submitted to COA’s audit teams.

Rationale behind COA Circular No. 2023-006

COA Circular No. 2023-006 is grounded in the legal recognition of electronic data messages and documents under Republic Act (RA) No. 8792, also known as the Electronic Commerce Act. This Act authorizes government entities to adopt and implement appropriate rules, regulations, or guidelines for the use of electronic data messages and documents in their operations. COA aims to harness these technological advancements to streamline operations, promote e-governance, and ensure the continuity and efficiency of public service delivery.

Scope COA Circular No. 2023-006

The guidelines outlined in this Circular apply to all government entities, including Departments, Bureaus, Offices, State Universities and Colleges, Water Districts, Local Government Units, government corporations and more. It is important to note that these guidelines only pertain to entities submitting vouchers, supporting documents, and reports in electronic form, while complying with existing accounting and auditing rules.

Key Definitions:

The Circular clarifies key terms to ensure a common understanding. These include Agency Records Disposition Schedule, Capture, Electronic Records and Documents, Electronic Document Portal, and Metadata.

General Principles:

Electronic records and documents, when compliant with applicable laws and rules, are deemed acceptable proof of government transactions. Government entities are encouraged to adopt digital transformation initiatives to streamline operations and deliver public services more efficiently.

Guidelines for Custody and Safekeeping:

Government entities must comply with controls and regulations stated in the Circular to enjoy the advantages provided thereof, particularly the need to install internal controls as affirmed by the agency’s Internal Audit Service or its equivalent. The agency shall submit to COA an Affirmation document (Annex I of the Circular) for this purpose.

Moreover, COA’s guidelines on the use of electronic documents, electronic signatures and digital signatures, as long as it does not contradict with COA Circular No. 2023-006 shall be adopted and shall extend its application when agencies submit Electronic Records and Documents (ERDs).

Agencies can submit Electronic Records and Documents (ERDs) to their respective resident audit team via the COA’s online Electronic Document Portal (EDP).

ERDs should be submitted together with complete supporting documents either entirely in electronic or paper-based format. If the agency cannot submit entirely in electronic form, the submission shall not be covered by the Circular, and the agency shall proceed with the usual paper-based submission.

Scanned paper documents must be properly authenticated and certified. The authenticity of all vouchers and supporting documents remains the responsibility of the submitting entity.

The Digital Vault:

To ensure secure storage and safekeeping, a digital vault maintained by COA’s Information Technology Audit Office (ITAO) is introduced. ERDs submitted through the EDP will be stored and preserved in the digital vault. The audit teams will utilize the digital vault for constructive custody, safekeeping, and preservation of ERDs. ERDs shall have the same legal effect as its paper-based equivalent.

Access and Use of Records:

ERDs will remain accessible to the audit teams responsible for reviewing them. Interested parties can request access to ERDs, subject to the guidelines set out in COA Circular No. 2013-006. The ITAO’s Electronic Evidence Unit (EEU) will provide certifications of ERD integrity and authenticity as required.

Retention and Disposition:

The retention period of ERDs in the digital vault will be based on the approved Records Disposition Schedule approved by thr National Archives of the Philippines.

Disposal of ERDs after the retention period is subject to approval from the audit team leader. The COA will implement strict security measures, complying with the Data Privacy Act of 2012, to ensure the confidentiality, availability, and integrity of ERDs stored in the digital vault.

Conclusion:

COA Circular No. 2023-006 is a significant step towards digital transformation in government accounting and auditing. By embracing electronic vouchers and records, government entities can streamline operations, reduce paperwork, and enhance the efficiency, effectiveness, and transparency of public service delivery. The guidelines outlined in the said Circular aim to ensure the secure storage, safekeeping, and accessibility of ERDs, while maintaining compliance with applicable laws and regulations. As technology continues to evolve, COA remains committed to exploring and implementing innovative solutions for the benefit of all stakeholders involved in government transactions.

Reference:

COA Circular No. 2023-006 — Guidelines Implementing the Preservation of Electronic Vouchers, Supporting Documents and other Records and Reports submitted to Audit Teams pursuant to COA Resolution No. 2023-007 dated August 2, 2023