[ Commonwealth Act No. 325, June 18, 1938 ]

AN ACT TRANSFERRING THE AUDIT OF THE BOOKS AND ACCOUNTS OF PUBLIC SERVICES FROM THE PUBLIC SERVICE COMMISSION TO THE GENERAL AUDITING OFFICE AND PROVIDING FUNDS THEREFOR.

Be it enacted by the National Assembly of the Philippines:SECTION 1. Hereafter the audit and examination of the books, records and accounts of all public services as contemplated in section seventeen (g) and (h) of Commonwealth Act Numbered One hundred and forty-six, and/or in connection with the fixing of rates of every nature and/or in relation to the proceedings of the Commission under sections sixteen and seventeen of Commonwealth Act Numbered One hundred and forty-six, shall be performed by the General Auditing Office, through the representatives duly designated therefor by the Auditor General. Whenever the public interests so demand and/or whenever the Public Service Commissioner or a Committee of the National Assembly so requests, the Auditor General shall cause to be made an examination into the financial condition of any public service under the jurisdiction of the Public Service Commission, and the public service or public services concerned shall submit to the Auditor General or his duly authorized representatives all such reports, records, books of accounts and other papers whatsoever as may be required, and in such examination, the Auditor General or his representatives shall have the power to examine under oath any official and employee of such public services.SEC. 2. In acting upon any proceedings regarding the approval of basic rates or amendments of existing rates of any public service, the Auditor General shall assign auditors to assist the Public Service Commissioner and shall furnish such financial dates or information as may be requested by the Public Service Commissioner.SEC. 3. Any public service refusing to allow an audit and examination of its books of accounts and pertinent records, or offering unnecessary obstruction to such audit and examination, or found guilty of concealing any material information concerning its financial status, shall be subject to the penalties provided in section twenty-one of Commonwealth Act Numbered One hundred and forty-six.SEC. 4. The office of the auditor of the Public Service Commission at present operating thereat, comprising Budget items No. 9, one auditor; No. 10, one assistant auditor; No. 14, one inspector and examiner, appearing on page 183, and two inspectors and examiners appearing on item F-IV-3 (a) on page 154, of Commonwealth Act Numbered Two hundred and forty-five except item No. 9 which shall hereafter be known as technical assistant to the Commissioner and shall remain in the Public Service Commission, is hereby transferred together with all its functions, appropriations, personnel, records, equipment and other properties, to the General Auditing Office and shall thereafter remain under the direct control and supervision of the Auditor General of the Philippines.SEC. 5. To effectively carry out the purposes of this Act, more particularly the audit and examination of the books and accounts of public services for rate making, franchise taxes, and other purposes, the amount of twenty-five thousand pesos or so much thereof as may be necessary is hereby appropriated out of any funds in the Treasury of the Philippines not otherwise appropriated, in addition to the appropriation for the personnel and equipment of the office of the auditor of the Public Service Commission provided in Commonwealth Act Numbered Two hundred and forty-five, which has been transferred to the General Auditing Office by section one hereof, for the following:

1.	Two field auditors, at P3,000 per annum each	P6,000.00
2	Two field auditors, at P2,400 per annum each	4,600.00
3	Two field auditors, at P1,800 per annum each	3,600.00
4	Two clerk-stenographers, at Pl,200 per annum each	2,400.00
5.	Consumption of supplies and materials	1,600.00
6.	Furniture and equipment	2,815.00
7.	Traveling expenses and per diems of personnel	3,785.00
		P25,000.00
	Total	========

Provided, That any balance remaining unexpended on December thirty-one, nineteen hundred and thirty-eight, shall revert to the National Treasury; And provided, further, That the appropriation necessary for the expenses of appropriation Act carrying out the purposes of this Act after said date shall be provided in the annual appropriation act.SEC. 6. This Act shall take effect upon its approval.Approved, June 18, 1938.

Source: Supreme Court E-Library