76. Boy Scouts of the Philippines vs.

Commission on Audit
G.R. No. 177131, June 7, 2011

Facts: COA Resolution No. 99-011 in which the said resolution state the BSP was created as a public
corporation under commonwealth Act No. 111, as amended by Presidential Decree No. 460 and R.A. No.
7278; that BSP V National Labor Relations Commissions, the SC ruled that BSP, as constituted under its
charter, was a "government-controlled" corporation within the meaning of Article IX (B) (2) (1) of the
constitution; and that "the BSP is appropraitely regarded as a government instrumentality under the 1987
Administrative Code."
The BSP sought reconsideration of the COA Resolution in a letter signed by the BSP National President
Jejomar Binay. He claimed that R.A. 7278 elimanated the "substantial government participation" in the
National Executive Board by removing: 1. the President of the Philippines and executive secretaries,
with the exception of the Secretary of Education, as members thereof; and 2. the appointment and
confirmation power of the President of the Philippines, as Chief Scout, over the members of the said
Board.
The BSP further claimed that 1987 Administrative Code itself, of which the BSP v NLRC relied on for
some terms, defines government-owned and controlled corporations as agencies organized as stock or
non-stock corporations which BSP, under its present charter, is not.
And finally, they claim that Government, like in other GOCC's, does not have funds invested in the BSP.
The BSP is not an entity administering special funds. The BSP is neither a unit of the Government; a
department which refers to an executive department as created by law; nor a bureau which refers to any
principal subdivision or unit of any department.

Issue: W/N the BSP falls under the COA's audit jurisdiction.

Ruling:After considering the legislative history of the amended charter and the applicable laws and
arguments of both parties, the court found that the BSP is a public corporation and its funds are subject to
the COA's audit jurisdiction.