REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City
CIRCULAR
TO
All Heads of Departments, Bureaus, Offices, Agencies, and
Instrumentalities of the National Government; Heads of Local
Government Units; Managing Heads of Government Corporations;
Commission on Audit (COA) Assistant Commissioners, Directors and
Auditors; and All Others Concerned
SUBJECT
Guidelines on the Proper Disposition of Dormant Accounts of National
Government Agencies (NGAs) and Instrumentalities, Local
Government Units (LGUs) and Government Corporations (GCs),
Amending COA Circular No. 2016-005 dated December 19, 2016 re:
Guidelines and Procedures on the Write-off of Dormant Receivable
Accounts, Unliquidated Cash Advances, and Fund Transfers of NGAs,
LGUs and GCs
1.0 BACKGROUND
The Commission issued circulars in the past years to clean the books of accounts
of agencies from dormant accounts. COA Circular No. 97-001 dated February 5, 1997
was issued prescribing the guidelines on the proper disposition/closure of dormant funds
and/or accounts of NGAs. Subsequently, COA Circular No. 2015-001 dated January 29,
2015 was issued prescribing the guidelines and procedures in the reversion to the General
Fund of all dormant cash balances, unauthorized accounts and unnecessary special funds
and trust funds maintained by NGAs, in conformity with Permanent Committee Joint
Circular No. 4-2012 dated September 11, 2012, implementing Executive Order (EO) No.
431 dated May 30, 2005. Likewise, COA Circular No. 2016-005 dated December 19,
2016 was issued prescribing the guidelines and procedures on the write-off of dormant
receivable accounts, unliquidated cash advances, and fund transfers ofNGAs, LGUs, and
GCs. On January 24, 2022, the Commission issued Circular No. 2022-001 to provide
supplemental accounting guidelines on the recovery of accounts previously written-off
as prescribed under COA Circular No. 2016-005.
To align with the prevailing international accounting standards, thereby
enhancing the quality and unifonnity of financial reporting in the Philippine public sector
entities, and to make the financial statements comparable with other public sector entities
around the world, COA issued Resolution No. 2014-003 and Circular No. 2015-003 dated
January 24, 2014 and April 16, 2015, respectively, prescribing the applicable financial
reporting framework in the preparation of financial statements. International Public
Sector Accounting Standards (IPSAS) shall be used by the NGAs, LGUs, GCs and
entities/instrumentalities classified as Non-Commercial Public Sector Entities (NonCPSEs) while GCs classified as CPSEs shall apply the Philippine Financial Reporting
Standards (PFRS). COA also issued Resolution No. 2017-006 dated April 26, 2
prescribing the adoption of additional six (6) IPSASs, with the updates thereof prescribed
through COA Resolution No. 2014-003 in accordance with the 2016 Edition of the
Handbook of International Public Sector Accounting Pronouncements (HIPSAP)
published by the International Federation of Accountants (IFAC). On July 21, 2021,
COA issued Resolution No. 2021-018 adopting the updates/changes to IPSAS in
accordance with the 2019 Edition of HIPSAP published by the IFAC, and The
Applicability ofIPSASs (Final Pronouncement, April 2016).
Notwithstanding the aforementioned issuances, the Annual Financial Reports for
NGAs, LGU s, and GCs revealed the magnitude of existing dormant accounts, other than
those already covered by existing COA issuances. The details and validity of these
accounts cannot be fully ascertained due to the lack/unavailability of supporting
records/documents and the lack of the necessary knowledge of the present accounting
personnel. For these reasons, the fair presentation of the financial statements has been
affected.
2.0 PURPOSE
This Circular is issued to prescribe the guidelines and procedures on the proper
disposition of all donnant accounts of NGAs, LGUs and GCs, not covered by specific
laws, rules and regulations, amending COA Circular No. 2016-005, and to fast track the
cleansing of dormant accounts of government agencies for the fair presentation of
accounts in the financial statements.
3.0
LEGAL BASIS
The Commission shall have exclusive authority, subject to the limitations in
Article IX-D of the 1987 Philippine Constitution, to define the scope of its audit and
examination, establish the techniques and methods required therefor, and promulgate
accounting and auditing rules and regulations, including those for the prevention and
disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable
expe
nditures, or uses of govemment funds and properties.
4.0
COVERAGE
4.1
This Circular covers all dormant receivables arising from regular trade and
business transactions, claims from entities' officers and employees and other
dormant receivable accounts; dormant unliquidated cash advances for operating
expenses, payroll, special purpose/time-bound activities or undertakings and travel
as well as advances granted to Civil Society Organizations (CSOs)/NonGovernment Organizations (NGOs)/People's Organizations (POs); and dormant
unliquidated fund transfers to/from NGAs, LGUs, and GCs covered under COA
Circular Nos. 2016-005 and 2022-001 dated December 19, 2016 and January 24,
2022, respectively.
2
4.2
Specifically, the following are the accounts used relative to receivables, cash
advances and fund transfers as defined/described in the revised chart of accounts:
a. Accounts Receivable
b. Due from Officers and Employees
c. Other Receivables
d. Advances for Operating Expenses
e. Advances for Payroll
f. Advances to Special Disbursing Officer
g. Advances to Officers and Employees
h. Due from National Government Agencies
1.
Due from Government-Owned or Controlled Corporations/Other Government
Corporations
J. Due from Local Government Units
k. Due from Non-Government Organizations/Civil Society Organizations/
People's Organizations
I. Due from Central Office/Home/Head Office
m. Due from Bureaus
n. Due from Regional Offices/Branch Offices
o. Due from Operating/Field Units
p. Due from Other Funds
q. Due from Special Accounts
r. Due from Local Economic Enterprise
s. Due to NGAs
t. Due to GOCCs/Other Government Corporations
u. Due to LGU s
v. Due to Central Office/Home/Head Office
w. Due to Bureaus
x. Due to Regional Offices/Branch Offices
y. Due to Operating Units/Field Units
z. Due to Other Funds
aa. Due to Special Accounts
bb. Due to Local Economic Enterprise
4.3
The following dormant accounts ofNGAs, LGUs and GCs are also included:
a.
b.
c.
.d .
e.
f.
4.4
Investments;
Inventories;
Investment Property;
Intangible Assets;
Deferred Credits; and
Other accounts which are not covered by specific laws, rules and regulations
for their proper disposition.
This Circular shall not cover the write-off of loans and advances of Government
Financial Institutions which are governed by the pertinent provisions of the
General Banking Act.
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4.5
Excluded from coverage are the following accounts:
a. Receivables arising from disallowances and charges;
b. Receivables arising from cash shortages;
c. Claims from entities' officers and employees and other parties for transactions
which are the subj.ect .o f a pending case in court or before investigative
authorities; and
d. All dormant accounts covered by specific laws, rules and regulations for their
proper disposition, such as, but not limited to, the following:
Dormant Account
Applicable laws, rules and regulations
1.
Cash, unauthorized
accounts, unnecessary
special and trust funds and
related accounts
COA Circular No. 2015-001 dated
January 29, 2015 Prescribing the
guidelines and procedures in the
Reversion to the General Fund of all
Dormant Cash, Unauthorized Accounts,
Unnecessary Special and Trust Funds and
Related Accounts, in conformity with
Permanent Committee Joint Circular No.
4-2012, dated September 11, 2012,
implementing Executive Order No. 431,
datedMay 30, 2005
11.
Accounts Payable
Unliquidated obligations
Section 98 of Presidential Decree (PD)
No.
1445 on the Reversion of
Unliquidated Balances of Accounts
Payable
COA Circular No. 99-004 dated August
17, 1999 re: Accounting Guidelines for
Accounts Payable andAmendments ofthe
Standard Government Chart ofAccounts
prescribed in Volume 11 of the
Government Accounting and Auditing
Manual (GAAM)
EO No. 87 dated August 13, 2019 re:
Directing that all accountspayable which
remain outstandingfor two years or more
in the books of National Government
Agencies to be reverted to the
Accumulated Surplus or Deficit of the
General Fund, or the Cumulative Result of
Operations ofthe National Govern nt
COA-DBM Joint Circular No. 1, s. 021
dated March 8, 2021 prescribing the
Guidelines Implementing Executive O der
(E.O.) No. 87 Directing That All Accol ts
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Payable Which Remain Outstanding for
Two Years or More in the Books of
National Government Agencies be
Reverted to the Accumulated Surplus or
Deficit of the General Fund of the
National Government
iii.
Property, Plant and
Equipment
Section 73 of PD No. 1445 on the Credit
for Loss Occurring in Transit or Due to
Casualty or Force Majeure and the related
COA Memorandum No. 92-751 dated
February 24, 1992 re: Documentation on
Petitions/Requests for Relief from
Accountability
COA Resolution No. 2018-020 dated
February 1, 2018 re: Clarification on the
Documentary Requirements for Requests
for Relieffrom Accountabilityfor loss thru
force majeure (earthquake, typhoon, etc.)
under COA Memorandum No.1992-751
dated February 24, 1992
COA Circular No. 2020-006 dated
January 31, 2020 re: Guidelines and
Procedures in the Conduct of Physical
Count of Property, Plant and Equipment
(PPE), Recognition of PPE Items Found
at Station, and Disposition for NonexistingMissing PPE Items, for the OneTime Cleansing ofPPE Account Balances
ofGovernment Agencies
iv.
Deferred Tax Assets/
Liabilities
Section 10 of Republic Act (RA) No.
9337 amending Section 112(a) of the 1997
Tax Code; Revenue Memorandum
Circular (RMC) No. 57-2013; RMC No.
54-2014; Revenue Regulation (RR) No.
16-2005; RA No. 10963 or the Tax Reform
for Acceleration and Inclusion (TRAIN)
Law and RA No. 11534 or the Corporate
Recovery and Tax Incentives for
Enterprises Act (CREATE) and other
pertinent issuances on its amendments
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5.0
DEFINITION OF TERMS
For the purpose of this Circular, the following terms shall be construed to mean
as follows:
1
5.1
Account
Accounts Receivable, Due from Officers and Employees, Other
Receivables, and other accounts not covered by specific laws, rules and
regulations for their proper disposition.
5.2
Accountable Officer (AO) every officer of any government agency whose
duties permit or require the possession or custody of government funds or
property and who shall be accountable therefor and for the safekeeping thereof in
conformity with law;' the officer/s or employee/s responsible for handling a
particular account/transaction in an agency.
5 .3
Condonation of Receivables amnesty of debt where the creditor is blocked or
estopped from attempting to collect the debt later.
5.4
Debto r a person or organization whether public or private that owes money to
the government.
5.5
Derecognition the process of removing a previously recognized asset, liability
or equity account/s from the statement of financial position.
5.6
Dormant Accounts individual or group of account balances within the general
ledger account, which remained non-moving/no activity for ten (10) years or more
from the last transaction recorded in the books.
5.7
Dormant Receivable Accounts accounts which balances remained inactive or
non-moving in the books of accounts for ten (10) years or more and where
settlement/collectability could no longer be ascertained.
5.8
Dormant Unliquidated Cash Advances - advances granted to disbursing
officers, agency officers and employees which remained non-moving for ten (10)
years or more and where settlement/collectability could no longer be ascertained.
5.9
Dormant Unliquidated Fund Transfers
advances granted by the source
agency to implementing agency for the implementation of programs/projects
which remained non-moving for ten (10) years or more and where
settlement/collectability could no longer be ascertained.
5 .10
Disposition of Dormant Accounts all of the procedures to be undertaken to
clean the books of dormant accounts such as but not limited to the write-off or
derecognition of accounts and/or preparation of adjusting entries to bring the
balance of a particular dormant account to zero.
Section 101(1) of Presidential Decree No. 1445 or the Government Auditing Code of the Philip ines.
6
6.0
5.11
Entity a national government agency, a government corporation, or a local
government unit.
5.12
Government Corporations (GCs)
government-owned and controlled
corporations, government-acquired asset corporations, government financial
institutions, government instrumentalities with corporate powers/government
corporate entities, including their subsidiaries, and water districts (WDs). The
regional, branch and field offices are component units of the corporation.
5.13
Government-Acquired Asset Corporation a corporation: (1) which is under
private ownership, the voting or outstanding shares of which were: (i) conveyed
to the Government or to a government agency, instrumentality or corporation in
satisfaction of debts whether by foreclosure or otherwise, or (ii) duly acquired by
the Government through final judgment in a sequestration proceeding; or (2)
which is a subsidiary of a government corporation organized exclusively to own
and manage, or lease, or operate specific physical assets acquired by a government
financial institu tion in satisfaction of debts incurred therewith, and which in any
case by law or by enunciated policy is required to be disposed of to private
ownership within a specified period of time.
5 .14
Impairment
a loss in the future economic benefits due to uncertainty of
collectability of the receivables or the amount in respect of which recovery has
ceased to be probable.
5.15
Recovery of Accounts Written-off payment received or settlement through
other mode from a government entity/debtor on previously written-off dormant
accounts.
5.16
Write-off of Dormant Accounts the process of derecognizing the asset account
and the corresponding allowance for impairment from the books of accounts, and
transferring the same to the Registry of Accounts Written-Off. This does not mean
condoning/extinguishing the obligation of the accountable officer/debtor.
GENERAL GUIDELINES
6.1
This Circular is issued for one-time cleansing of all donnant accounts covered
herein, thus, in no case shall the procedures in this Circular be used to further
derecognize subsequent dormant accounts.
6.2
All government entities shall determine the existence of dormant accounts in their
books.
6.3
When accounts are non-moving for ten (10) years or more, the Head of Accounting
Unit shall prepare the following schedules, for monitoring purposes, to be
submitted to their respective Audit Team Leader (ATL)/Regional Supervising
Auditor (RSA)/Supervising Auditor (SA):
a.
Schedule of Donnant Receivables, Unliquidated Cash
Intra/Inter-Agency Fund Transfers (Annexes I-3); and
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b. Schedule of Other Donnant Accounts (Annex 4).
7.0
6.4
The entity shall detennine whether the dormant accounts identified are covered by
specific laws, rules and regulations prescribing guidelines for the proper
disposition and/or procedures to address the issue on dormancy.
6.5
If the dormancy of an account cannot be addressed through Item 6.4 above, then
the entity shall apply the procedures prescribed by this Circular.
PROCEDURES
ACCOUNTS
7 .1
FOR
THE
PROPER
DISPOSITION
OF
DORMANT
The Head of Accounting Unit shall:
a. Conduct regular and periodic verification, analysis, and validation of the
existence of all donnant accounts;
b. Secure/collate all available documents relative to the said accounts, such as
books of accounts, records, financial statements, ledgers, schedules,
vouchers/documents and all other documents;
c. Review, analyze and determine the existence and validity of the accounts;
d. Reconcile the account with other related accounts in the trial balance;
e. Ensure fairness in the presentation of accounts in the financial statements,
taking into consideration the provisions of applicable IPSAS or PFRS on
specific accounts and prepare the necessary adjusting entry/ies for the
following:
1.
Correction of inadvertent errors, or inaccurate measurement, calculation
or computation. In case of government agencies adopting IPSAS, use
the account "Accumulated Surplus/(Deficit)" while those adopting
PFRS, use the account "Retained Earnings/(Deficit)"; and
11.
Recovery/settlement of previously written off accounts.
The above adjustments need not be submitted to COA for approval but are
subject to the usual audit.
f. If the review/analysis of the account/s is not possible due to the absence of
records and documents or when original documents are lost or destroyed, or
cannot be produced, in consonance with COA Circular No. 93-404 dated October
18, 1993 re: Reporting requirement in case of losses of documents evidencing
financial transactions and/or records of accountabilities, the Head of
Accounting Unit shall:
\
8
1
1.
Prepare letters, signed by the Head of Agency (HoA), addressed to each
concerned accountable officer (AO)/personnel (i.e. the officer/s or
employee/s responsible for handling that particular account) demanding
the AO to execute a certificate of justification as to why the supporting
documents are not available in his/her office or in any other office.
He/she shall also include a narration/documentation of all the efforts
exerted by Management to locate such documents. In case of retirement,
death or separation from service of AO, the current AO shall execute the
required certificate ofjustification.
Refer to Annex 5 for the pro-forma certificate ofjustification.
11.
Henceforth, clearance should not be issued to AOs unless the
appropriate documentation on transfer of accountability to the new
accountable official and/or request for relief from accountability for the
loss or damaged documents have been filed with the Commission.
iii.
Prepare a list of available records relative to the dormant account and
indicate the extent of validation made thereof All documents must be
attached to the list. Include a detailed list of the lost documents or
records; and
iv.
Prepare and submit a detailed report to the HoA together with all the
documents in Items 7. l .f.i and 7. l .f.iii, recommending the conduct of an
investigation to determine the cause/s of the loss of documents and
pinpoint the official/s and employee/s liable for such loss.
7.2
Upon receipt of the report of the Head of Accounting Unit, the HoA shall cause the
conduct of such investigation. The HoA shall create an Investigation Committee to
detennine the cause/s of loss or destruction of documents, pinpoint the official/s
and employee/s liable for such loss, and look into the absence or presence of
negligence on the part of the AO. (Annex 6)
7.3
Within five working days from receipt of the order from the HoA, the investigative
proceedings shall commence and shall be completed within 30 working days
thereafter.
7.4
Within five working days from the completion of the investigation, the
Investigation Committee shall submit to the HoA the Investigation Report (IR)
(Annex 7) and the complete records of the case, for his approval. The IR shall be
treated with confidentiality.
7.5 Within five working days from receipt of the IR, the HoA shall render a decision.
A copy of the IR, duly approved by the HoA, together with the decision shall be
furnished to the Accountant.
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8.0
PROCEDURES FOR THE DERECOGNITION OF DORMANT ACCOUNTS
8.1
Dormant accounts covered by this Circular shall be derecognized from the
books ofaccounts only upon the grant of specific authority by COA.
8.2
Within one (I) year from the effectivity ofthe Circular, the Head ofAccounting
Unit through the HoA shall file with/through the A TL and/or RSA/SA,
depending on the jurisdictional amount, a request for the approval of COA to
write-off/derecognize from the books the dormant accounts pursuant to the
provisions ofthis Circular. The request shall be supported with the documents
listed in Annex 8, provided with index tabs, for easy reference.
8.3
The ATL, upon receipt ofthe request, shall assign a reference number using the
prescribed format below, verify and validate the submitted documents to
establish the reliability and correctness ofthe dormant accounts.
Format ofthe Reference Number should be as follows:
Example:
RDDA-CAAP-2,2-r:
Ls
Number/Series for the year
Year of Receipt ofrequest
Name of Agency
lt means Requestfor Disposition of
Dormant Accountls
8.4
The ATL and SA/RSA shall decide on the request to derecognize from the
books the account for amounts not exceeding PI 00,000.00 per account, per
subsidiary ledger or per item, per fund, per government entity within 15 working
days from receipt thereof.
8.5
In case the ATL and SA/RSA deny the request to derecognize from the books
the account due to failure to comply with the conditions and requirements under
Items 8.1 and 8.2, the requesting party may request for reconsideration of the
decision ofthe ATL and SA/RSA within 15 working days from the receipt of
the decision, provided that the basis for the denial has been satisfactorily
complied with. The ATL and SA/RSA shall decide on the request for
reconsideration within I5 working days from receipt thereof.
8.6
In the event that the ATL and SA/RSA deny the request, the requesting party
may file an Appeal Memorandum within 15 working days from receipt ofthe
decision, to the following:
a.
Cluster Director (CD) having audit jurisdiction over the agencies under the
Corporate Government Audit Sector and the National Government Audit
Sector; or
1.
Within five working days from receipt ofthe Appeal Memorandum,
with proof of service of copy thereof to the Auditor concerned, the
CD shall issue an Order to Answer to the SA/RSA/A TL concerned.
10
11.
b.
Within 15 working days from receipt of the Order to Answer, the
SA/RSA/ATL shall submit the Answer together with the entire
records of the case to the CD.
Regional Director (RD) having audit jurisdiction over the LGUs, WDs,
State Universities and Colleges (SUCs), and stand-alone agencies, within
his/her region.
1.
Within five working days from receipt of the Appeal Memorandum,
with proof of service of copy thereof to the Auditor concerned, the
RD shall issue an Order to Answer to the SA/RSA/ATL concerned.
11.
Within 15 working days from receipt of the Order to Answer, the
SA/RSA/ATL shall submit the Answer together with the entire
records of the case to the RD.
8. 7
The CD/RD shall decide on the appeal within 15 working days from receipt of
the Answer of the SA/RSA/ATL. The decision of the CD/RD on appealed
request is final and non-appealable.
8.8
For amounts exceeding Pl00,000.00 per account, per subsidiary ledger or per
item, per fund, per government entity, the ATL and SA/RSA shall forward the
entire records of the requests to the CD/RD, together with their comments and
recommendations, within 15 working days from receipt thereof.
8.9
The CD/RD shall review the entire records of the requests and shall decide on
amounts involving more than Pl00,000.00 but not exceeding Pl,000,000.00 per
account, per subsidiary ledger or per item, per fund, per government entity
within 15 workings days from receipt thereof.
8.10
In case the CD/RD denies the request to derecognize from the books the account
due to failure to comply with the conditions and requirements under Items 8.1
and 8.2, the requesting party may request for reconsideration of the decision of
the CD/RD within 15 working days from receipt of the decision provided that
the basis for the denial has been satisfactorily complied with. The CD/RD shall
decide on the request within 15 working days from receipt thereof. The
decisions of the CD/RD in his/her original jurisdiction will be final and
executory.
8.11
For amounts exceeding P1,000,000.00 per account, per subsidiary ledger or per
item, per fund, per government entity, the CD/RD shall forward the entire
records of the requests together with his/her comments and recommendations
to the Assistant Commissioner (AC) of the Sector within 15 working days from
receipt thereof
8.12 The AC of the Sector shall review the entire records of the requests d shall
decide on amounts exceeding Pl,000,000.00 per account, per subsidi
ledger
or per item, per fund, per government entity within 15 working da s from
receipt thereof.
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8.13
In case the AC denies the request to derecognize from the books the account
due to failure to comply with the conditions and requirements under Items 8.1
and 8.2, the requesting party may request for reconsideration of the decision of
the AC within 15 working days from the receipt of the decision provided that
the basis for the denial has been satisfactorily complied with. The AC shall
decide on the request within 15 working days from receipt thereof.
8.14 In the event that the AC will deny the request, the requesting party may appeal
from the decision of the AC of the Sector to the Commission Proper (CP) within
15 working days from receipt of the decision, in accordance with COA
Resolution No. 2016-022? dated December 19, 2016.
8.15 The decision of the CP shall become final and executory after 30 working days
from notice of the decision. A motion for reconsideration may be filed within
30 working days from notice of the decision on the grounds that the evidence is
insufficient to justify the decision; or that the said decision of the CP is contrary
to law. Only one (1) motion for reconsideration of the decision of the CP shall
be entertained.
8.16 No filing fee shall be imposed on a request to derecognize the dormant accounts
from the books of accounts. However, the appeal filed before the CP shall be
imposed a filing fee equivalent to 1/10 of 1 % of the amount involved, provided
the total filing fee shall not exceed P20,000.00 as prescribed under COA
Resolution No. 2013-016 dated August 23, 2013 re: Amendment of Commission
on Audit Resolution No. 2008-005 dated February 15, 2008 entitled "Imposition
and collection offiling fees on casesfiled before the Commission on Audit in
the exercise of its quasi-judicialfunction, as amended by COA Resolution No.
2018-017 dated February 1, 2018. Legal research fee equivalent to 1% of the
filing fee but not less than P10.00 shall also be imposed.
8.17 Payment of filing fee may be charged to the requesting agency if it is determined
that there is no contributory negligence or misconduct of the AO, otherwise, it
shall be reimbursed or chargeable against the personal account of the AO.
9.0
2
JOURNAL ENTRIES
9.1
The Accountant shall prepare the Journal Entry Voucher (JEV) to effect the
adjusting entries in the books of accounts within five working days upon receipt
of the COA decision granting the authority to derecognize from the books the
dormant accounts. The illustrative accounting entries are shown in Annex 9.
9.2
Enter the details of the donnant Receivables, Unliquidated Cash Advances and
Fund Transfers written-off in the Registry of Accounts Written-Off (RAWO)
(Annex 10) or in the Registry of Derecognized Donnant Accounts (RODA)
(Annex 11) for other dormant accounts derecognized.
Delegation to lower adjudicating bodies of this Commission the approval of requests for write-off dormant
accounts receivable, unliquidated cash advances, and fund transfers of national government agencies, local
government units, and government-owned and controlled corporations.
12
10.0
9.3
Submit the JEV, together with the supporting documents, to the ATL.
9.4
Upon receipt of the JEV, the Audit Team concerned shall review it immediately
to check the accuracy of the derecognition of the dormant accounts pursuant to
the COA decision granting the authority to derecognize them from the books.
9.5
The ATL/RSA/SA shall issue an Audit Observation Memorandum to be included
in the Annual Audit Report, if warranted.
MONITORING AND REPORTING
The Head of Accounting Unit shall:
10.1
Prepare the Schedules ofDonnant Accounts (SDA) quarterly to be submitted to
the ATL/RSA/SA on or before the 15day of the ensuing month.
10.2
Ensure that current transactions and those below ten years are properly
documented and appropriately acted upon immediately to avoid being dormant.
If the AO fail to settle his/her accountabilities despite the demand, the action
could either be salary deduction or filing of appropriate cases.
10.3
Disclose comparative information in the Notes to Financial Statements relative
to the above dormant accounts.
10.4
In the event ofrecovery or settlement of accounts previously written-off, refer
to COA Circular No. 2022-001 dated January 24, 2022 re: Supplemental
Accounting Guidelines on the Recovery of Accounts Previously Written-Offas
prescribed under COA Circular No. 2016-005 dated December 19, 2016, and
Amendments to Item 10. 0- Illustrative Accounting Entries ofthe same Circular.
Illustrative accounting entries on the recovery of accounts written-offare shown
in Annex 9.
The ATL/RSA/SA shall:
11.0
10.5
Verify the SDA.
10.6
Submit to the RD/CD a Report on the Requests for Disposition of Dormant
Accounts on the 20" day after the end of every quarter (Annex 12).
10.7
Issue an Audit Observation Memorandum, if warranted.
SAVING CLAUSE
This Circular shall not be interpreted to condone the accounts written-offno to
extinguish the obligations. The Management shall continue to exert effort to collect the
accounts appearing in the RAWO or RDDA when circumstances warrant. Further, this
shall not be construed as a ground to exonerate from liability the officers/employees
for infidelity in the custody of documents.
Cases not covered in this Circular shall be referred to this Commission through
the sectors concerned for resolution.
12.0
REPEALING CLAUSE
All circulars, memoranda and other issuances or parts thereof which are
inconsistent with the provisions of this Circular are hereby rescinded/repealed/modified
accordingly.
13.0
.-.
:/a·:\
EFFECTIVITY
This Circular shall take
general circulation .
t 15 days after publication in a newspaper of
COMNIS.SIOM ON A.UDIT
~·-~j) o,,1c1 o, THE CO MMISSION SECltiTIUtl"-T
GA
L
ROLAND CAFE PON
Commissioner
14
Annex 1
SCHEJ)ULE OF DORMANT RECEIVABLE ACCOUN(fS
Government Entity Name:
As of the Quarter Ending
Account Title:
,<
~.;;
Name of Debtor
f
j
Last 3
Transaction
Date
AGllNG OF DORMANT RECEIVABLE ACCOUNTS
r-~
Amount
-t,
10 years
'
mote than 20
11 to 15 years 16i to 20 yean
years
Remarks (Reason
for being
(lormant)
TOTAL
Approved by:
Certified Correct :
Ghief Accom1tant/Head of Accow1ting
Division/Unit
Date:
Head of Agency or Authorized Representative
Dare:- - - _.........._- - - -
$
15
i
SCHEDULE OF DORMANT RECEIVABLE ACCOUNTS
INSTRUCTIONS
A This Schedule is used to record and monitor the existing dormant receivable accounts of the agency/entity maintained per account
title.
B. This form shall be accomplished as follows:
1. Government Entity Name name of the agency/entity
2. As of the Quarter Ending- the last day of the calendar quarter
3. Account Title- title of the account based on the prescribed Chart of Accounts for National Government Agencies, Government
Corporations and Local Government Units
4. Name of Debto r a person or organization whether public or private that owes money to the government
5. Last Transaction Date the date when the last transaction was recorded in the subsidiary ledger or general ledger
6. Amount- balance of the account per subsidiary ledger or general ledger
7. Aging of dormant Receivable Accounts-distinguish the amount based on the length oftime an account has been outstanding
8. Remarks (Reason for being dormant) indicate the existence of the applicable conditions, as follows:
i. Absence of records or documents to validate/support the claim
ii. Death of the debtor
iii. Unknown whereabouts of the debtor, and that he/she could not be located despite diligent efforts to find him/her
iv. Incapacity to pay or insolvency
v. Exhaustion of all possible remedies by the Management to collect the receivables.
vi. No pending case. in court involving the subject dormant accounts
vii. Such other comment/s related to the account.
C. It shall be prepared quarterly by the Accounting Division/Unit, certified by the Accountant and approved by the Head of Agency or
Authorized Representative, and submitted to the ATL/RSA/SA on or before the 15 day of the ensuing month.
D. At the end of each year, appropriate disclosures shall be made in the Notes to Financial Statements.
16
J
Annex2
SCHEDULE OF DORMANT'UNLIQUIDATED CASH AD\(ANCES
Government Entity Name:
--------As of the Quarter Ending
_
Account Title: -----~--------------,---, Date
Name of Accountable Granted/Las
Officer
t
;
Transaction
AGING OF DORMANT UNLIQUIDATED CASH ADVANCES
Remarks (Reason for
'
11 to 15i
16 to 20
more than 2Q
.
.
.
being dormant)
10 years
Amount
years 1
years.
years
..
TOTAL
Approved by:
Certified Correct :
ChiefAccountant/Head of
Accounting Division/Unit
Date:
Head ofAgency or Authoriz.ed Repri,lsentative
_
Date: -------t<=""<--
17
f
SCHEDULE OF DORMANT UNLIQUIDATED CASH ADVANCES
INSTRUCTIONS
A. This Schedule is used to record and monitor the, existing dormant unliquidated cash advances of the agency/entity maintained per account title.
B. This form shall be accomplished as follows:
1. Government Entity Name name of the agency/entity
2. As of the Quarter Ending the last day of the calendar quarter
3. AccountTitle title ofthe account based om the prescribed Chart ofAccounts for National Government Agencies, Government Corporations
and Local Government Units
4. Name ofAccountable Oflficer (AO) - name of personnel to whom a cash advance has been granted
5. Date Granted/Last Transaction Date when there is no other transaction other than the grant ofcash advance, indicate the date when such
cash advance had been granted. If there are succeeding transactions such as grant of additional cash advances, liquidation, etc., indicate the
date ofthe last transaction as recorded in the subsidiary ledger or general ledger
6. Amount- balance ofthe account per subsidiary ledger or ge
neral ledger
7. Aging of dormant Unliquidated Cash Advances - distinguish the amount based on the length of time the cash advance remained
unliquidated
8. Remarks (Reason for being dormant) indicate the existence of the applicable conditions, as follows:
i.
Absence of records or documents to validate/support the claim
ii.
Death of the AO/employee
iii.
Unknown whereabouts of the AO/employee, and that he/she could not be located despite diligent efforts to find him/her
iv.
Incapacity to pay or insolvency
v.
Exhaustion of all possible remedies by the Management to collect the receivables and to demand liquidation of cash advances
vi.
No pending case in court involving the subject dormant accounts
vi.
Such other comment/s related to the account.
C. It shall be prepared quarterly by the Accounting Division/Unit, certified by the Accountant and approved by the Head of Agency or Authorized
Representative, and submitted to the ATL/RSA/SA on or before the 15" day of the ensuing month.
D. At the end of each year, appropriate disclosures: shall be made in the Notes to Financial Statements.
;
7
18
Annex3
SCHEDULE OF DORMANT INTRA/INTER-AGENCY FUND TRANSFERS
Government Entity Name:
As of the Quarter Ending
Account Title:
. :
'
Name of Entity
Date
AGING QF DORMANT INTRA/INTER-AGENCY FUND TRANSFliltS
!
'
'
Remarks (Reason
Granted/Last
16 to 20
more than 20
11to15
10 years
Amount
for being dormant)
Transaction
years
years
years
!'
i>ate
TOTAL
Approved by:
Certified Correct :
ChiefAccmmtant/Head of
Accounting DivisiowUnit
Head ofA.gency or Authorizedl Representative
]!)ate:
Date:
_
l
_
>
19
SCHEDULE OF DORMANT INTRA/INTER-AGENCY FUND TRANSFER
INSTRUCTIONS
A. This Schedule is used to record and monitor the existing dormant unliquidated fund transfers ofthe agency/entity maintained per account title.
B. This form shall be accomplished as follows:
1. Government Entity Name- name ofthe agency/entity
2. As of the Quarter Ending- the last day of the calendar quarter
3. Account Title - title of the account based on the prescribed Chart of Accounts for National Government Agencies (NGAs), Government
Corporations (GCs) and Local Government Units (LGUs)
4. Name ofEntity- name ofNGAs, LGUs, GCs, other GCs and non-government organizations (NGOs) to whom the fund/s ofthe government
entity has been transferred to for a particular purpose
5. Date Granted/Last Transaction Date- when there is no other transaction other than the fund transfer, indicate the date when such fund
had been transferred. If there are succeeding transactions such as additional fund transfers, liquidation, etc, indicate the date of the last
transaction as recorded in the subsidiary ledger or general ledger
6. Amount - balance ofthe account per subsidiary ledger or general ledger
7. Aging ofdormant Intra/Inter-Agency Fund Transfers - distinguish the amount based on the length oftime the transferred fund remained
unliquidated
8. Remarks (Reason for being dormant) - indicate the existence of the applicable conditions, as follows:
i.
Absence of records or documents to validate/support the claim and/or unreconciled reciprocal accounts
ti.
Dissolution or non-existence of the NGAs, GCs or NGOs
iii.
Incapacity to pay or insolvency
iv.
Exhaustion of all possible remedies by the Management to collect the receivables and to demand liquidation of fund transfer
v.
No pending case in court involving the subject dormant accounts
vi.
Such other comment/s related to the account.
C. It shall be prepared quarterly by the Accounting Division/Unit, certified by the Accountant and approved by the Head of Agency or Authorized
Representative, and submitted to the ATL/RSA/SA on or before the 15 day ofthe ensuing month.
D. At the end of each year, appropriate disclosures shall be made in the Notes to Financial Statements.
?
7
20
Annex4
SCHEDULE OF OTHER DORMANTACCOUNTS
As of the Quarter ending
Name of Agency:
Sector/Cluster:
No.
Account
Title
Revised
Chart of
Accounts
(RCA)Account
Code*
Aging of Dormant Accounts
Last
Account
Transaction
More than
Balance
More than 30
10 years to
Date
20 years to
20 years
years
30 years
Actions Taken
by Management
Reason for
Accountable to Address the
Being
Officer
Existence of
Dormant
Donnant
Accounts
Actions Taken By
the Auditor
Status
(This column to be
filled-up by the
Auditor)
1.
2.
3.
4.
5.
6.
7.
8.
Approved by:
Certifie d Correct:
Chief Accountant/'Head of Accounting
Head of Agency or Authorized Representative
Date:
Date:
_
_
RCA Updated (2019) for NGAs prescribed in COA Circular No. 2020-001 dated January 8, 2020
RCA for GCs (2019) prescribed in COA Circular No. 2020-002 dated January 28, 2020
RCA for LGUs prescribed in COA Circular No. 2015-009 dated December 1, 2015
21
A
SCHEDULE OF OTHER DORMANT ACCOUNTS
INSTRUCTIONS
A This Schedule is used to record and monitor the existing dormant accounts covered by this Circular but not included in Annexes 1-3.
B. This form shall be accomplished as follows:
1.
2.
3.
Name ofAgency- name ofthe agency/entity
As of the Quarter Ending - the last day ofthe calendar quarter
Sector/Cluster - specify as to which Sector (National Government Audit Sector; Local Government Audit Sector, Corporate Government Audit
Sector) and Cluster does the agency belong
4. Account Title - title of the account based on the prescribed Chart of Accounts for National Government Agencies (NGAs), Government
Corporations (GCs) and Lo.cal Government Units (LGUs)
5. Revised Chart of Accounts (RCA) - Account Code account codes based on the prescribed Chart of Accounts for NGAs, LGUs and GCs
6. Last Transaction Date the date when the last transaction was recorded in the subsidiary ledger or general ledger
7. Account balance - balance ofthe account per subsidiary ledger or general ledger
8. Aging ofdormant accounts distinguish the amount based on the length oftime the account became dormant
9. Remarks (Reason for being dormant) indicate the existence ofthe applicable conditions, as follows:
i.
Absence ofrecords or documents to validate/support the claim and or unreconciled recipro.cal accounts
ii.
No pending case in court involving the subject dormant accounts
iii.
Such other comment/s related to the account.
10. Accountable Officer the name ofthe officer or employee responsible or handling the particular account
ll. Actions Taken by Management to Address the Existence of Dormant Accounts - specify the measures taken by Management such as
conducting an investigation regarding the history/background of the account, collating the documents to support the existence of the account,
account analysis, request authority from COA to derecognize the account, etc. Indicate NONE if no action has been taken.
12. Status- ~dicate the actual status ofthe account as ofthe quarterended, e.g., underinvestigation, awaiting COA's approval/authority to derecognize
the account, etc.
13. Actions Taken By the Auditor - This column is to be filled-up by the Auditor. Use separate sheet/s, if necessary. Actions may include the
following: request additional documents, issue Audit Observation Memorandum,. etc.
C
It shalJ be prepared quarterly by the Accounting Division/Unit, certified by the Accountant and approved by the Head of Agency or Authorized
Representative, and submitted to the ATL/RSA/SA on or before the 15" day ofthe ensuing month.
D. At the end of each year, appropriate disclosures shall be made in the Notes to Financial Statements.
1
22
Annex 5
LETTER HEAD OF AGENCY
CERTIFICATION
This is to certify that there are no available records/documents such as Disbursement
Voucher/s, Report of Checks Issued, Report of Disbursements, Cash Disbursement Journal,
Report of Collections, Cash Receipts Journal, Journal Vouchers and General Journal/Ledger to
establish the details of the requested accounts for write-off/derecognition which remained
dormant since specify _th e date or period when_the account_remained non-moving activity
based on _the last_transaction_recorded in the books up to this date.
n
o
Explain the reason(s)/cause(s) for the loss of the books of accounts and/or the related
documents/records.
Describe all the actions taken by Management to locate such documents.
documents as proof for all the efforts exerted by Management.
Submit
This certification is issued to support our request for authority to write-off/derecognize
the following accounts:
Account Title
Amount
Date or period when the
account remained nonmoving/no activity based on
the last transaction per
available records
1.
2.
3.
Issued this
day of Month 20_at
Signature over Printed Name
Designation
(Accountable officerls concerned, i.e., the
officer/s or employee/s responsible or
handling the particular accountls)
Approved by:
Signature over Printed Name
Designation
(Head of Agency or the Head of the Department Concerned, Undersecretaries, Assistant
Commissioners, etc., based on their level of authority as provided in the Manual of Approval
of the agency)
23
Annex 6
The Investigation Committee
The Investigation Committee shall determine the cause/s of loss or destruction of documents,
pinpoint the official/sand employee/s liable for such loss, and look into the absence or presence
of negligence on the part of the Accountable Officer. It shall be composed of at least three (3)
but not more than five (5) members, holding permanent positions in the Agency.
Key factors to consider in creating the Investigation Committee:
1.
2.
3.
4.
Independence. The Investigation Committee shall be independent and impartial, with
members who have no personal or professional or pecuniary interest in the outcome of the
investigation. This will ensure that the Committee's findings and recommendations are
objective and credible.
Integrity. Members of the Committee should have a reputation for integrity and ethical
behavior. This will help t.o ensure that the investigation is conducted with the highest
standards of professionalism and honesty.
Resources. The Committee should be adequately provided with resources such as funds,
equipment and the like, that are necessary for the conduct of a thorough investigation.
Timeliness. The Committee should be able to complete the investigation in a timely
manner, while ensuring that the investigation is sufficiently documented, thorough and
comprehensive.
Composition of the Investigation Committee
Chairperson:
At least a third (3") ranking permanent official of the Agency
Must be competent in applying incident fact-finding and analysis tools
Has background or previous experience of conducting an investigation
Members:
Two (2) to Four (4)
An officer, who is at least a fifth (5) ranking permanent official, or if
not available, an officer of the next lower rank
Competent in evidence gathering, investigation and report writing
Roles and Responsibilities
Chairperson
1.
2.
3.
4.
5.
6.
Direct the conduct of investigation
Assign duties and responsibilities to the members of the Committee
Schedule and coordinate investigation activities and utilization of resources
Supervise and review the preparation of the investigation report
Present the report to the Head of Agency.
Be able to act as liaison between senior management and the Investigation
Committee
24
Members
1.
2.
3.
4.
5.
Collect/receive data, facts and evidence
Establish the sequence of events that led up to the event that prompted the
investigation
Analyze and integrate available information to come up with the following:
a. Cause/s ofloss of the documents or records;
b. Person/s responsible therefor; and
c. Absence or presence of negligence of the Accountable Officer/s.
Develop findings, conclusions and recommendations
Prepare the investigation report
25
Annex 7
(Letterhead of the Agency)
MEMORANDUM
FOR
: Head of the Agency
SUBJECT
: INVESTIGATION REPORT RE: Specify what has been investigated
DATE
1. Authority
Details of the Office Order or its equivalent document creating the Investigation Committee.
2.
Purpose/Scope
A statement that describes the objectives and coverage of the investigation.
Must include the determination of the following:
a. Cause/s ofloss of the documents or records;
b. Person/s responsible therefor; and
c. Absence or presence of negligence of the Accountable Officer/s (AO).
3.
Facts of the Case
A detailed narration of what the case being investigated is all about.
4.
Details of the Investigation
This section shall contain a full account of the investigative steps from beginning to end.
List and describe all the evidence obtained. This could include video footage, email records,
computer login records, documents or papers, physical objects, etc.
26
5.
Conclusion
Set out the Committee's findings and conclusion. Keep the points in logical order,
addressing the issues being examined.
Ensure to include in the conclusion as to whether the AO under investigation was
determined to be negligent or not in the performance of his duties and responsibilities that
contributed to the loss of documents.
6.
Recommendations
After reviewing all of the investigation materials, at a minimum, recommendations must
include the following:
1. What type of action should be taken by Management including the sanctions to be
instituted on erring officers and employees, if any, in accordance with agency policies
and applicable laws, rules and regulations.
2. Include a plan of action, identifying the steps to be undertaken by Management to
prevent the occurrence of similar losses.
Committee Chairperson
Date: -----Committee Member
Date: -----
Committee Member
Date: -----
Committee Member
Date: -----
The report shall be signed by all the members of the Investigation Committee.
Approved by:
Head of the Agency
Date: -----
,
\
\
\
27
Annex8
Checklist ofDocuments to be Attached to the Request for Write-Off or
Derecognition ofDormant Accounts
A
The request to derecognize ALL DORMANT ACCOUNTS shall be supported by the
following documents:
1.
Schedule of Dormant Accounts, certified by the accountant and approved by the
Head of Agency (HoA);
a. Dormant Receivables (Annex 1)
b. Dormant Unliquidated Cash Advances (Annex 2)
c. Dormant Intra/Inter-Agency Fund Transfer (Annex 3)
d. Dormant - Other Accounts (Annex 4)
Under the column "Reason for Being Dormant" indicate the existence of the
applicable conditions, as follows:
1.
11.
111.
iv.
v.
vi.
Absence ofrecords or documents to validate/support the claim and/or
unreconciled reciprocal accounts
Death of the Accountable Officer (AO)/employee/debtor
Unknown whereabouts of the AO/employee/debtor, and that he/she
could not be located despite diligent efforts to find him/her
Incapacity to pay or insolvency
Exhaustion of all possible remedies by the Management to collect the
receivables and to demand liquidation of cash advances and fund
transfers or settlement of accountabilities
No pending case in court involving the subject dormant accounts
2.
Certified copy of the available relevant documents/records enumerated in the list
underltem 7. l.f.iii;
3.
Certification of no pending case relative to the account, issued by the Legal Officer
or the official handling the legal matters of the entity;
4.
In case records and documents or when original documents are lost or destroyed,
or cannot be produced:
a. Certified copy of the letters, signed by the HoA, addressed to each
concerned AO/personnel demanding the AO to execute a certificate of
justification as to why the supporting documents are not available in his/her
office or in any other office;
b. Certification by the responsible official/s of the entity to the effect that there
are no records/documents available to validate the account;
c. Certified copy of the notice ofloss filed with the Auditor immediately after
the discovery of the loss. If none, a satisfactory explanation or the reason(s)
for non-submission thereof;
28
d. Ifthe occurrence ofthe loss has also been reported to other police agencies,
like the National Bureau of Investigation, etc., the progress/final
investigation report thereon should be submitted;
e. Investigation Report approved by the HoA and the corresponding decision
referred to in Item 7.5;
f. Management's action/s based on the results ofthe investigation including
the sanctions instituted on erring officers and employees, ifany;
g. The steps to be undertaken by Management to prevent the occurrence of
similar losses; and
h. Other justifications due to loss ofdocuments, the circumstances ofthe loss
should be stated in the letter-request.
5. All other documents/justifications to support the necessity to derecognize from the
books the dormant accounts.
B.
For dormant Receivable Accounts, Unliquidated Cash Advances and Intra/Inter-Agency
Fund Transfers, in addition to the required documents in Item 1 above, the following
certified documents shall be submitted validating the existence of the conditions, as
applicable, such as:
1. Death Certificate issued by the Philippine Statistics Authority;
2. Proofoflnsolvency;
3. Certification from the Department of Trade and Industry that the debtor has no
registered business;
4. Certification from the Securities and Exchange Commission that the Corporation is no
longer active;
5. Certificate of no residence in the barangay of the municipality/city of last known
address;
6. Proofofexhaustion ofall remedies to collect the receivables and demand to liquidate
the cash advances and fund transfers, such as but not limited to copies of served or
returned demand letters; and
7. In case offund transfer, the unliquidated amount after reconciliation shall be supported
by certification by the Head of Accounting Unit and approved by the Heads of the
source and implementing entities that the fund was utilized for the purpose, and
certification from the recipient that the project was partially or fully implemented,
supported by pictures ofthe implemented projects.
29
Annex 9
ILLUSTRATIVE ACCOUNTING ENTRIES
The illustrative accounting entries to recognize the write-off and derecognition of dormant assets
and liabilities; and recovery of accounts written-off are shown below:
A. Write-off ofAccounts
A.1 Receivable Accounts
Account Title
Accumulated Surplus/(Deficit) or
Retained Eamings/(Deficit) or
Government Equity
Allowance for Impairment- Accounts Receivable
Allowance for Impairment Due from Officers and Employees
Allowance for Impairment-Due from Non-Government
Organizations/Civil Society Organizations or
Allowance for Impairment Due from Non-Government
Organizations/People's Organizations
Allowance for Impairment - Other Receivables
Accounts Receivable
Due from Officers and Employees
Due from Non-Government Organizations/Civil
Society Organizations or
Due from Non-Government Organizations/
People's Organizations
Other Receivables
To recognize the write-offof dormant
Receivable Accounts pursuant to COA
Decision No.
dated -
Debit
Credit
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
A.2 Unliquidated Cash Advances
Account Title
Accumulated Surplus/(Deficit) or
Retained Earnings/(Deficit) or
Government Equity
Advances for Operating Expenses
Advances for Payroll
Advances to Special Disbursing Officer
Advances to Officers and Employees
To recognize the write-offof dormant
unliquidated cash advances pursuant
to COA Decision No.
dated -
Debit
Credit
XXX
~\
XXX
XXX
XXX
XXX
30
A.3 Fund Transfers (Intra/Inter-Agency Receivables/Payables)
a.
Source Agency's Books
Account Title
Accumulated Surplus/(Deficit) or
Retained Earnings/(Deficit) or
XXX
Government Equity
Allowance for Impairment-Due from National
Government Agencies
XXX
Allowance for Impairment-Due from Government-Owned
Or Controlled Corporations or
XXX
Allowance for Impairment-Due from Other Government
Corporations
Allowance for Impairment-Due from Local Government Units
XXX
Due from National Government Agencies
Due from Government-Owned or Controlled
Corporations or
Due from Other Government Corporations
Due from Local Government Units
Due from Central Office/Home/Head Office
Due from Bureaus
Due from Regional Offices/Branch Offices
Due from Operating/Field Units
Due from Other Funds
Due from Special Accounts
Due from Local Economic Enterprise
To recognize the write-off ofdormant intra'interagency receivables pursuant to COA Decision
No.
dated
Note: Furnish copy of the JEV to the Implementing Agency.
b.
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Implementing Agency's Books
Account Title
Due to NGAs
Due to GOCCs or
Due to Other Government Corporations
Due to LGUs
Due to Central Office/Home/Head Office
Due to Bureaus
Due to Regional Offices/Branch Offices
Due to Operating Units/Field Units
Due to Other Funds
Due to Special Accounts
Due to Local Economic Enterprise
Accumulated Surplus/(Deficit) or
Retained Eamings/(Deficit) or
Government Equity
To recognize the write-off of intra'inter-agency
Payables pursuant to COA Decision No._dated_.
Debit
Credit
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
31
B.
Recovery ofAccounts Written-Off
B. I ReceivableAccounts
Account Title
Accounts Receivable
Due from Officers and Employees
Due from Non-Government Organizations/
People's Organizations or
Due from Non-Government Organizations/Civil
Society Organizations
Other Receivables
Allowance for Impairment-Accounts Receivable
Allowance for Impairment-Due from Officers
and Employees
Allowance for Impairment-Due from
Non-Government Organizations/People's
Organizations or
Allowance for Impairment- Due from NonGovernment Organizations/Civil Society
Organizations
Allowance for Impairment-Other Receivables
Accumulated Surplus/(Deficit) or
Retained Eamings/(Deficit) or
Government Equity
To recognize the restoration of receivable
accounts previously written-off.
Debit
Account Title
Allowance for Impairment-Accounts Receivable
Allowance for Impairment-Due from Officers
and Employees
Allowance for Impairment-Due from Non-Government
Organizations/People's Organizations or
Allowance for Impairment- Due from Non-Government
Organizations/Civil Society Organizations
Allowance for Impairment-Other Receivables
Accumulated Surplus/(Deficit) or
Retained Eamings/(Deficit) or
Government Equity
To recognize adjustment ofallowancefor
Impairment accounts to equity account.
Debit
Credit
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Credit
XXX
XXX
XXX
XXX
XXX
32
Account Title
Cash-Collecting Officers or
Cash-Local Treasury or
Cash in Bank-Local Currency, Current Account
Accounts Receivable
Due from Officers and Employees
Due from Non-Government Organizations/
People's Organizations or
Due from Non-Government Organizations/
Civil Society Organizations
Other Receivables
To recognize collection of recovered dormant
Receivable accounts.
Debit
Credit
XXX
XXX
XXX
XXX
XXX
B.2 Unliquidated Cash Advances
Account Title
Advances for Operating Expenses
Advances for Payroll
Advances to Special Disbursing Officer
Advances to Officers and Employees
Accumulated Surplus/(Deficit) or
Retained Eamings/(Deficit) or
Government Equity
To recognize the restoration of unliquidated
cash advances previously written-off
Debit
Account Title
Cash - Collecting Officers or
Cash-Local Treasury or
Cash in Bank-Local Currency, Current Account
Advances for Operating Expenses
Advances for Payroll
Advances to Special Disbursing Officer
Advances to Officers and Employees
To recognize collection of recovered dormant
unliquidated cash advances.
Debit
Credit
XXX
XXX
XXX
XXX
XXX
Credit
XXX
XXX
XXX
XXX
XXX
33
B.3 Fund Transfers (Intra/Inter-Agency Receivables
Source Agency's Books
Account Title
Due from National Government Agencies
Debit
Due from Government-Owned or Controlled Corporations or
Due from Other Government Corporations
Due from Local Government Units
Die from Central Office/Home/Head Office
Due from Bureaus
Due from Regional Offices/Branch Offices
Due from Operating/Field Units
Due from Other Funds
Due from Special Accounts
Due from Local Economic Enterprise
Allowance for Impairment- Due from National
Government Agencies
Allowance for Impairment Due from GovernmentOwned or Controlled Corporations or
Allowance for Impairment Due from Other Government
Corporations
Allowance for Impairment Due from Local Government
Units
Accumulated Surplus/(Deficit) or
Retained Eamings/(Deficit) or
Government Equity
To recognize the restoration ofdormant
unliquidated intra/inter-agency receivables
previously written-off
XXX
Account Title
Allowance for Impairment- Due from National
Government Agencies
Allowance for Impairment Due from GovernmentOwned or Controlled Corporations or
Allowance for Impairment Due from Other Government
Corporations
Allowance for Impairment Due from Local Government
Units
Accumulated Surplus/(Deficit) or
Retained Eamings/(Deficit) or
Government Equity
To recognize adjustment ofallowancefor
Impairment accounts to equity account
Credit
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Credit
XXX
XXX
XXX
XXX
\
Account Title
Cash-Collecting Officers or
Cash-Local Treasury or
Cash in Bank-Local Currency, Current Account
Due from National Government Agencies
Due from Government-Owned or Controlled
Corporations or
Due from Other Government Corporations
Due from Local Government Units
Due from Central Office/Home/Head Office
Due from Bureaus
Due from Regional Offices/Branch Offices
Due from Operating/Field Units
Due from Other Funds
Due from Special Accounts
Due from Local Economic Enterprise
To recognize collection of recovered dormant
Uliquidated intra/inter-agency receivables.
c.
Credit
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Derecognition ofdormant assets
Account Title
Accumulated Surplus/(Deficit)[in case ofNGAs
and GCs classified as Non-CPSEs]
Retained Earnings/(Deficit) fin case ofGCs
classified as CPSEs]
Government Equity fin case of LGUs]
Contra-asset accounts, ifapplicable
Asset (specific account)
To derecognize the dormant assets pursuant
to COA Decision No.
dated
D.
Debit
Debit
Credit
XXX
XXX
\
XXX
XXX
XXX
Derecognition_ofdormant liabilities
Account Title
Liability ( specific account)
Accumulated Surplus/(Deficit)[in case
ofNGAs and GCs classified as Non-CPSEs]
Retained Eamings/(Deficit) fin case of GCs
classified as CPSEs]
Government Equity [in case ofLGUs]
To derecognize dormant liabilities pursuant
to COA Decision No.
dated
Debit
Credit
XXX
XXX
XXX
XXX
35
Annex 10
REGISTRY OF ACCOUNTS WRITTEN-OFF
Entity Name :
_
Fund Cius ter/Fund : -----
Account Title :
RCA Account Code:
---------------
Sheet No.:
i
Reference
Particulars
Date
No.
Reason for
Write-off
Authority
'I
No. of Years
Uncollected
Amount
'
i
'
Written-Off
Recovered/
Settled
Balance
-
°
%
36
REGISTRY OF ACCOUNTS WRITTEN-OFF
(RAWO)
INSTRUCTIONS
A. This Registry is used to record and monitor accounts that were written-off by the agency/entity maintained per account and by fund
cluster/fund.
B. This form shall be accomplished as follows:
1. Entity Name - name of the agency/entity
2. Account Title - title of account based on the chart of accounts
3. RCA Account Code - account codes based on the prescribed chart of accounts for National Government Agencies, Government
Corporations and Local Government Units
4. Fund Cluster/Fund-the fund cluster/fund name and code
5. Sheet No. - sheet /page number
6. Reference Date - date of the journal entry voucher (JEV) or other documents used as basis of entry in the Registry
7. Reference No. - control number of JEV or other documents used as basis of entry in the Registry
8. Particulars - the name of the accountable officer/debtor, and the corresponding payables and description of the account or specific
item written off
9. Reason for Write-off - reason for write-off as stated in the JEV
10. Authority-the number and date of issuance/decision containing the authority to write-off the account/s
11. No. of Years Uncollected n umber of years due for collection/settlement
12. Amount Written-Off - amount of the account/s written-offbased on JEV and other references
13. Amount Recovered/Settled - amount of the recovered/settled account/s previously written-offbased on JEV and other references
14. Amount Balance - the difference between the columns "Amount- Written Off' and "Amount Recovered/Settled"
C. It shall be maintained by the Accounting Division/Unit and kept in a perpetual manner. No new sheet shall be prepared unless the
preceding one is used up.
D. At the end of each year, it shall be footed and appropriate disclosures shall be made in the Notes to Financial Statements.
$
7
37
0
Annex 11
REGISTRY OF DERECOGNIZED DORMANT ACCOUNTS
Entity Name:
Decision/Authority
Date
Reference No.
Account
Title
RCA
Account
Code
Number of
Years Dormant
Amount
Remarks
J
38
#
REGISTRY OF DERECOGNIZED DORMANT ACOUNTS
(RDDA)
INSTRUCTIONS
A. This Registry is used to record and monitor other donnant accounts that were derecognized by the agency/entity maintained per account
and by fund cluster/fund.
B. This form shall be accomplished as follows:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Entity Name- name of the agency/entity
Decision/Authority- decision containing the authority to derecognize the account/s
Decision/Authority Date - date of issuance of decision/authority to derecognize the account/s
Decision/Authority Reference No.- the reference number of the decision/authority to derecognize the account/s
Account Title - title of account based on the chart of accounts
RCA Account Code account codes based on the prescribed chart of accounts for National Government Agencies, Government
Corporations and Local Government Units
Number of Years Dormant number of years when the account remained non-moving/no activity from the last transaction
recorded in the books
Amount- amount of the account/s derecognized based on Journal Entry Voucher and other references
Remarks- any comment or additional infonnation related to the account
C. It shall be maintained by the Accounting Division/Unit and kept in a perpetual manner. No new sheet shall be prepared unless the
preceding one is used up.
D. At the end of each year, it shall be footed and appropriate disclosures shall be made in the Notes to Financial Statements.
$
I
39
K
Annex 12
QUARTERLY REPORT ON REQUESTS FOR DISPOSITION OF DORMANT ACCOUNTS
Entity Name:
For the Quarter Ending
RCA
Accountable
Reference Account
Account Officer/Debtor/
Date
New/ Refiled
Title
Number
Code Government Entity
(1)
Amount
Pending
r
2)
Status ofDenied Requests
Actions Taken
Appealed
~
(3)
l
Amount
Granted
Denied
(4)
(5)
Pending (for
Date Refiled
action)
~
(6)
r
Date
Appealed
l
(7)
Remarks
(8)
A. Carry Over ofPending/Denied Requests
B. Request for the Quarter
Prepared by:
Audit Team Member
Dpfoed pV.
Reviewed by:
Supervising Auditor
Audit Team Leader
r
•o r
QUARTERLY REPORT ON REQUESTS FOR DISPOSITION OF DORMANT ACCOUNTS
(QRRDDA)
INSTRUCTIONS
A This Report is used to record and monitor the requests for write-off or derecognition ofdormant accounts.
B. This form shall be accomplished as follows:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Entity Name- name ofthe agency/entity
For the Quarter Ending- last day for a particular quarter (Ex. June 30, 2023)
Date - Date of the Government Agency/Entity's letter requesting for the approval of COA to write-off'derecognize from the books the dormant
accounts pursuant to the provisions ofthis Circular.
Reference Number - the number assigned by the Audit Team Leader (ATL) upon receipt of the request for write-off/derecognition of dormant
accounts
Account Title - title of account based on the chart of accounts
RCA Account Code - account codes based on the prescribed chart of accounts for National Government Agencies, Government Corporations and
Local Government Units
Accountable Officer/Debtor/Government Entity name of persons/agency responsible/liable for the account
Amount New/Refiled - the amount ofthe dormant account stated in the request/refiled for derecogntion
Amount Pending - the amount ofthe dormant account whose request has been returned to the requester for further action
Amount Appealed - the amount of the dormant account whose request for derecognition has been denied by ATL/Regional Supervising Auditor
(RSA)/Supervising Auditor (SA), Assistant Commissioner (AC), or Commission Proper (CP) and an appeal thereon has been filed by the requesting
party
Actions Taken Amount Granted - amount of dormant account approved by ATL/RSA/SA, CD/RD, AC, or CP for derecognition
Actions Taken Amount Denied - amount ofdormant account whose request for derecognition has been disapproved or not allowed by ATL/RSA/SA,
CD/RD, AC, or CP
Amount Pending (for action) the amount ofthe dormant account to be acted on by ATL/RSA/SA, CD/RD, AC, or CP (i.e. for review, evaluation,
resolution, etc.)
Status of Denied Requests Date Refiled - date of the Government Agency/Entity's letter refiling the request for the approval of COA to writeoff/derecognize from the books the dormant accounts
Status of Denied Requests Date Appeal-date ofthe Appeal Memorandum filed by the requester
Remarks - any comment or additional information related to the account
C. It shall be submitted by the ATL/RSA/SA to the RD/CD on the 20" day after the end of every quarter.
$
7