Updates on Accounting
and Auditing Reforms
LOURDES M. CASTILLO
Assistant Commissioner
Government Accountancy Sector
Commission on Audit
Delivered during the 35th ANC of the
Government Association of Certified Public Accountants
Crown Regency Suites and Residences
April 17-20, 2013
1
Topical Outline
1. COA-DBM Joint Circular No. 2013-1
dated March 15, 2013
“Revised Guidelines on the Submission of
Quarterly Accountability Reports on
Appropriations, Allotments, Obligations and
Disbursements”
2. COA Circular No. 2013-002
dated January 30, 2013
“Adoption of the Revised Chart of Accounts for
National Government Agencies”
2
3. COA Resolution No. 2013-007 dtd. January 29, 2013
“Adoption of the Philippine Public Sector Standards for
Auditing”
4. COA Circular No. 2012-005 dtd. December 07, 2012
“Revocation of COA Circular No. 2009-008 dated
November 9, 2009 and Prescribing the Use of Punong
Barangay’s Certification (PBC) and COA Auditor’s
Advice (CCA)”
5. COA Circular No. 2012-004 dtd. November 28, 2012
“Demand for the Immediate Liquidation and Settlement
of All Cash Advances Outstanding as of December 31,
2011”
3
Revised Guidelines on the Submission
of Quarterly Accountability Reports on
Appropriations, Allotments, Obligations
and Disbursements
4
Legal Basis
COA-DBM Joint Circular No. 2013-1
dated March 15, 2013
5
Rationale
• The DBM and COA, as oversight agencies on Financial
Management require agencies to submit on a regular
basis, Budget and Financial Accountability reports.
• The DBM uses the budget and accountability reports in
monitoring the agencies’ performance and providing the
President and other fiscal agencies, the necessary
information for policy making.
• The COA uses the data in the Financial Statements to
prepare the Annual Financial Report of Allotments,
Obligations and Disbursements being submitted to the
President and Congress, pursuant to R.A. 7226 dtd.
March 12, 1992.
6
Purpose
1. To prescribe harmonized formats of the
financial accountability reports (FAR) on
appropriations, allotments, obligations,
disbursement authorities, disbursements and
balances; and
2. To prescribe guidelines on the preparation and
timely submissions of FARs by the agencies to
the DBM and the COA after the end of each
quarter.
7
Coverage
The Circular covers all departments, bureaus,
offices and agencies of the national government
and government-owned and/or controlled
corporations maintaining Special Accounts in
the General Fund.
8
Definition of Terms
1. Appropriation – an authorization made by law or other
legislative enactment, directing the payment of goods and
services out of government funds under specified
conditions or for specified purposes.
2. Allotment – a specific authority in the form of Agency
Budget Matrix (ABM) or Special Allotment Release Order
(SARO) issued by DBM to identified agencies to incur
obligations not exceeding a given amount during a
specified period for the purpose indicated therein.
9
3. Sub-Allotment – a specific authority in the form of SubAllotment Release Order (Sub-ARO) issued by the Central Office
(CO)/Regional Office (RO) of a department/office/agency to its
ROs/lower operating units (i.e. field office, district office or
provincial office ) which allow them to incur obligations within a
specified amount during a specified period. The Sub-ARO should
not exceed the allotment releases to the CO.
4. Obligation – a commitment by the government agency arising
from an act of a duly authorized official which binds the
government to the immediate or eventual payment of a sum of
money. The agency is authorized to incur obligations only in the
performance of activities which are in pursuit of its functions and
programs authorized in the appropriation acts/laws within the
limit of the allotment released by the DBM.
10
7. Commitment – an obligation incurred by
government agencies for which items have not yet
been delivered and services not yet rendered. This is
also called “Obligations Not Yet Due and
Demandable”.
8. Unpaid Obligation – this is the balance of an
accounts payable or commitment.
9. Operating Unit – a “national government agency” or
a unit thereof receiving direct release of a Notice of
Cash Allocation (NCA) from the DBM.
11
Guidelines
A. The head of each operating unit (OU), office or agency shall be
responsible for the timely submission, either physically or
electronically, the following FARs to the DBM and COA (Audit
Team Leaders and the Government Accountancy Sector (GAS)
not later than the 30th day after the end of each quarter:
1. Statement of Appropriations, Allotments, Obligations
Disbursements and Balances (SAAODB)
2. List of Agency Budget Matrix (ABM) or SAROs and
Sub-AROs
3. Detailed Statement of Current Year’s Obligations,
Disbursements and Unpaid Obligations (SODUO-CY)
4. Summary of Prior Year’s Obligations, Disbursements
and Unpaid Obligations (SODUO-PY)
5. Summary of Report of Disbursements
12
B. The FARs prescribed in the Circular shall replace the following
DBM and COA reports as follows:
1. DBM
 Statement of Allotments, Obligations and Balances (SAOB) –
BAR No. 4
 Financial Report of Operations (BAR No. 2)
 Monthly Report of Disbursements – Bar No. 3
2. COA





SAOB
Detailed Breakdown of Obligations
Detailed Breakdown of Disbursements
Regional Breakdown of Expenses
Statement of Cumulative Allotments, Obligations Incurred
and Unobligated Balances
 Detailed Statement of Cumulative Expenditures/Obligations
Incurred, Obligations Liquidated/Disbursements and Unliquidated
Obligations
13
Responsibilities
1. The FARs shall be prepared and certified correct by the
following officials:
 Budget Officer/Head of Budget Unit – for the portion of the
report pertaining to appropriations, allotments, obligations,
unobligated allotments and unreleased appropriations
 Chief Accountant/Head of Accounting Unit – for the portion
of the report pertaining to appropriations, allotments,
obligations, unobligated allotments and unreleased
appropriationsChief Accountant/Head of Accounting Unit –
for the portion of the report pertaining t disbursement and
unpaid obligations
 The FARs shall be signed by the Agency Head as the
approving official. He/she shall ensure the timely submission
of the accurate and reliable FARs.
14
Due Dates of Submission to COA and DBM
 All Departments/Agencies – not later than the 30th
day after the end of each quarter
 The Lower Operating Units – within (5) days after
the end of each quarter for consolidation
 The Agency Regional Offices – to submit the
consolidated report to COA (GAS) and DBM CO
within (10) days after the end of each quarter
15
Penalty Clause
 COA and DBM shall regularly monitor agency/OU
compliance with the reporting requirements prescribed
in the Circular.
 For failure to submit the FARs, the “no report, no
release” policy of the DBM shall be enforced.
 Administrative sanctions on the automatic suspension
of the payment of salaries of the officials concerned.
 Violation for three (3) times without justifiable cause
during the year, shall constitute a ground for the filing
of an administrative/disciplinary action against the
officials for inefficiency and incompetence.
16
COA REVISED
CHART OF ACCOUNTS
17
Legal Basis
COA Circular No. 2013-002 dated
January 30, 2013
Effective Date: January 01, 2014
18
Objectives
 To provide new accounts for the adoption of
the Philippine Public Sector Accounting
Standards (harmonized with IPSAS)
 To provide uniform accounts for national
government accounting and budget systems
to facilitate the preparation of harmonized
financial and budgetary accountability reports
19
Objectives
 To expand the account code from three (3)
digits in the NGAS Chart of Accounts to eight
(8) digits, to allow expansion or creation of
new accounts as may be necessary to
implement new standards or policies and
provide up to four levels of consolidation
depending on the users’ information needs.
20
Major Changes
a. Coverage is limited only to all
national government agencies and
GOCCs receiving funds constituted as
SAGF from the National Government
b. Expanded account code structure from
three (3) digits to eight (8) digits
21
Account Code Structure
22
Account Groups
Codes are assigned to account groups to
facilitate location of accounts in the general
and subsidiary ledgers, to provide systematic
arrangement and classification of accounts
and facilitate preparation of the consolidated
financial reports as follows:
Code
1
2
3
Account Groups
Assets
Liabilities
Equity
23
Asset without Contra Account
Ex. Cash, Collecting Officer
24
Asset with Contra Account
Ex. Accounts Receivable
Asset with contra account
1 03 01 01 0
1
03
1 01 1
Asset
Asset
Receivables
Receivables
Loans
and
Receivable
Loans and
Receivable
Accounts
Accounts
Accounts Receivable
Accounts
Receivable
Allowance for Impairment General
Ledger Receivable
Accounts
Contra-Account
25
Asset with Contra Account
Ex. Allowance for Impairment –
Accounts Receivable
Asset with contra account
1
03
1 01 1
1 03 01 01 1
Asset
Receivables
Loans and Receivable
Accounts
Accounts Receivable
Allowance for Impairment Accounts Receivable
26
Major Changes
c. New accounts were provided for the
implementation of the Philippine
Public Sector Accounting Standards
(PPSAS)
27
New Accounts
Example:
1 02 01 010
1 02 02 011
Financial Assets Held for Trading
Allowance for Impairment Investments in Treasury Bills Local
in compliance with IPSAS 28-30
in compliance with IPSAS 29 (Financial Instruments Recognition and Measurement)
1 03 02 020
1 03 02 021
Finance Lease Receivable
Allowance for Impairment Finance Lease Receivables
Investment Property, Buildings
Accumulated Depreciation Investment Property, Buildings
Accumulated Impairment Losses Investment Property, Buildings
in compliance with IPSAS 13 (Leases)
in compliance with IPSAS 13 (Leases)
1 05 01 020
1 05 01 021
1 05 01 022
in compliance with IPSAS 16 (Investment Property)
in compliance with IPSAS 16 (Investment Property)
in compliance with IPSAS 26 (Impairment of Cash
Generating Assets)
28
New Accounts
1 01 04 010
1 01 04 020
1 01 04 030
Cash-Treasury/Agency
Deposit, Regular
Cash - Treasury/Agency
Deposit, Special Account
Cash - Treasury/Agency
Deposit, Trust
29
Major Changes
d. Some accounts were deleted since
these accounts are for use by local
government units or governmentowned and/or controlled
corporations, while other accounts
are no longer applicable to
national government agencies.
30
Deleted Accounts
Example:
31
Major Changes
e. Some accounts were either
expanded or compressed. For instance,
expense accounts for repairs and
maintenance and depreciation of
property, plant and equipment which
were previously presented per asset
account were compressed based on the
major account classification
32
Compressed Accounts
Example:
811 Repairs and Maintenance 5 02 13 040 Repairs and
Office Buildings
Maintenance812 Repairs and Maintenance Buildings and Other
School Buildings
Structures
813 Repairs and Maintenance Hospitals and Health
Centers
814 Repairs and Maintenance Market and Slaughterhouses
815 Repairs and Maintenance Other Structures
33
Compressed Accounts
Example:
811 Depreciation-Office
Buildings
812 Depreciation-School
Buildings
813 Depreciation-Hospitals
and Health Centers
814 Depreciation-Market
and Slaughterhouses
815 Depreciation-Other
Structures
5 05 01 040 Depreciation Buildings and
Other Structures
34
Repairs and Maintenance –
Buildings and Other Structures

Subsidiary Ledgers:
01 - Buildings
02 - School Buildings
03 - Hospitals and Health Centers
04 - Markets
05 - Slaughterhouses
06 - Hostels and Dormitories
99 - Other Structures
35
Depreciation - Buildings and Other
Structures

Subsidiary Ledgers:
01 - Buildings
02 - School Buildings
03 - Hospitals and Health Centers
04 - Markets
05 - Slaughterhouses
06 - Hostels and Dormitories
99 - Other Structures
36
Expanded Account
Example:
716 Subsistence, Laundry 5 01 02 050 Subsistence
and Quarters
Allowance
Allowance
5 01 02 060 Laundry
Allowance
5 01 02 070 Quarters
Allowance
37
Expanded Account
Example:
Cash - National
Treasury,
Modified
Disbursement
System (MDS)
1 01 04 040 Cash-Modified Disbursement
System (MDS), Regular
1 01 04 050 Cash-Modified Disbursement
System (MDS), Special
Account
1 01 04 060 Cash-Modified Disbursement
System (MDS), Trust
38
The Revised Chart of Accounts
As Object Code in the
Unified Account Code Structure
39
Purposes of Object Classification
and Coding
To capture all financial transactions such as
goods or services acquired, payments made,
revenue sources and the causes of increases or
decreases in assets and liabilities.
To enable the classification and coding of
transactions for reporting of impact of government
revenues and expenditures on the economy as well
as internal departmental analysis and decisionmaking by oversight agencies.


40

The object coding in the information system
provides a repository of government-wide
information which can be used by oversight
agencies without requiring departments and
agencies to respond to individual requests.

Provides a basis for coding the object
classification which uses accrual accounting
requiring transactions to be recorded in the period
when they occur and not only when cash or
equivalents are received or paid.
41
The Unified Account
Code Structure
FUNDING SOURCE
6Digits
ORGANIZATION
12 digits
LOCATION
9 digits
MFO/PROGRA
M, ACTIVITY
and PROJECT
9 digits
Financin
g Source
1 digit
Department Agency Operating
2 digits
3 digits Unit
7 digits
Region Province City,
Barangay
2 digits 2 digits Municipa 3 digits
lity
2 digits
MFO/PAP Code COACo Sub9 digits
A*Obje Object
ct8
2 digits
digits
Required
Required Optional
Unique for each
Department/Agenc
y
Required
Authorization Fund Category
2 digits
3 digits
Required Required
Optional
OBJECT CODE
10 digits
Uniform across
Government
42
The Unified Account Code
Structure (UACS)
 Jointly developed by DBM, DOF and COA
 It is a government-wide coding framework to
provide a harmonized budgetary and accounting
code classification that will facilitate reporting
of actual revenues and collections and
expenditures compared with programmed
revenues and expenditures, starting fiscal year
2014
43
 The UACS is to be adopted in identifying,
aggregating, budgeting, accounting, auditing
and reporting the financial transactions of
the government.
 Enhance the quality and timeliness of
financial data for the generation of the
required reports and analysis of the same.
 Strengthen financial controls and
accountability.
44
Key Elements of the UACS
 Funding Source Codes: Six (6) digit code
to reflect the Financing Source,
Authorization and Funding Category
 Organization Codes: Twelve (12) digit code
to reflect the Department, Agency and SubAgency or Operating Unit/Revenue
Collecting Unit
45
 Location Codes: Nine (9) digit code to reflect the
Region/Province/Municipality/Barangay following
the Philippine Standard Geographic Code
prescribed by the National Statistical Coordination
Board
 Major Final Output (MFO)/Program, Activity and
Project (PAP) codes: Nine (9) digit code to reflect
the MFO/PAP codes
 Object codes: Assets, Liabilities, Equity, Revenues,
and Expenses following the COA Chart of
Accounts by object and sub-objects provided by
BTr, BIR, DOF, BOC and DBM
46
Object Code Structure in UACS
OBJECT CODE
10 digits
COA
Revised Chart of Accounts
8 digits
DBM
Sub-Object Code
2 digits
47
Account Code Structure in UACS
 Generally, the account code structure below
shall be followed.
Account Code Structure
8 digits
FS Element
1 digit
Major
Summary
Account
Account
2 digits
2 digits
GL Account
3 digits
FS Elements:
1
Assets
2
Liabilities
3
Equity
4
Income
5
Expenses
48
Sub-Object Code
 If disaggregation is necessary, sub object codes of two digits
shall be used to show the breakdown of selected assets, income
and expenses, otherwise, two zeros will be used. The
responsibility for disaggregation and sub-coding of the
following accounts are as shown below.
Accounts
Cash in Bank
Taxes
Import Duties
Non-Tax Revenues
Personnel Services
MOOE
Capital Outlays
Agency Responsible for
Disaggregation
BTr
BIR
BOC
DOF/BTr
DBM
DBM
DBM
49
COA Resolution No. 2013-007
dated January 29, 2013
“Adoption of the Philippine
Public Sector Standards for
Auditing”
50

Twenty-four (24) PPSSAs already
adopted

Eleven (11) PPSSAs are being finalized
for submission to the Commission
Proper for approval

Eighteen (18) ISAs / ISSAs are ongoing
evaluation for adoption as PPSSAs
51


PPSSA Book 1
PPSSA 20 - Principles of Transparency and
Accountability
PPSSA 30 - Code of Ethics
PPSSA 40 - Quality Control for the Commission on
Audit
PPSSA Book II – Volume 1
PPSSA 100 - Basic Principles in Government Auditing
PPSSA 200 - General Standards in Government Auditing
and Standards with Ethical Significance
PPSA 300 - Field Standards in Government Auditing
PPSSA 400 - Reporting Standards in Government
52
Auditing

PPSSA Book II – Volume 3A – Part 1
PPSSA 1200 - Overall Objectives of the Independent
Auditor and the Conduct of an Audit in
Accordance with International
Standards on Auditing
PPSSA 1210 - Agreeing the Terms of Audit
Engagements
PPSSA 1220 - Quality Control for an Audit of
Financial Statements
PPSSA 1230 - Audit Documentation
53

PPSSA Book II – Volume 3A – Part 2
PPSSA 1240 - The Auditor’s Responsibilities
Relating to Fraud in an Audit of
Financial Statements
PPSSA 1250 - Consideration of Laws and
Regulations in an Audit of Financial
Statements
PPSSA 1260 - Communication with Those Charged
with Governance
PPSSA 1265 - Communicating Deficiencies in
Internal Control to Those Charged
with Governance and Management
54
 PPSSA Book
II – Volume 3B – Part 1
PPSSA 1300 - Planning an Audit of Financial Statements
PPSSA 1315 - Identifying and Assessing the Risks of
Material Misstatement Through
Understanding the Entity and Its
Environment
PPSSA 1320 - Materiality in Planning and Performing an
Audit
PPSSA 1330 - The Auditor’s Responses to Assessed Risks
PPSSA 1402 - Audit Considerations Relating to an Entity
Using a Service Organization
PPSSA 1450 - Evaluation of Misstatements Identified
During the Audit
55
 PPSSA Book
II – Volume 3D
PPSSA 1700 - Forming an Opinion and Reporting
on Financial Statements
PPSSA 1705 - Modifications to the Opinion in the
Independent Auditor’s Report
PPSSA 1706 - Emphasis on Matter Paragraphs and
Other Matter Paragraphs in the
Independent Auditor’s Report
56
Updates on Accounting Reforms

Twenty-Three (23) PPSAS are prepared and are ready for
focus group discussions prior to adoption



Six (6) PPSAs remaining are 45% completed
Revision of NGAS Manual is 83% completed
Prescribed the necessary accounting guidelines and
procedures on the reversion of dormant accounts and
unnecessary Special and Trust Funds to the General
Fund pursuant to the Permanent Committee Joint
Circular No. 4-0012 dated September 11, 2012
implementing Executive Order No. 431 dated May 30,
2005
57
COA Circular No. 2012-004 dated
November 28, 2012
“Demand for the Immediate
Liquidation and Settlement of All
Cash Advances Outstanding as of
December 31, 2011”
58
Rationale
 As a general rule, cash advances must be liquidated
within the prescribed periods depending on the nature
and purpose of the cash advance:
–
–
–
–
–
Salaries and wages
Petty and field operating expenses
Local travel and foreign travel
Honoraria and similar payments to officials and employees
Expenses for special projects/activities such as anniversary
celebration
– Cultural and athletic activities
 The above cash advances must be liquidated within
twenty (20) days from the accomplishment of the
purpose.
59
Settlement and Liquidation
of Cash Advance
A cash advance is settled and liquidated either by:
1. Returning the money advanced if unspent,
2. Or by the presentation of regularly accomplished
vouchers, giving satisfactorily detail of the items
thereon paid which must be in accordance with
the purpose for which the cash advance was
granted, and further supported by proper receipts
and other evidence of payment, subject to the
result of the post-audit thereof by the auditor
concerned.
60
Primary responsibility of Heads
of Agencies
Section 2 of Presidential Decree (P.D.) No.
1445, the Government Accounting Code of
the Philippines, places the responsibility to
faithfully take care that government funds
and property be safeguarded from wastage
directly with and primarily on the chief or
head of the government agency concerned
61
Legal presumption against
non-liquidation of cash advance
Article 217 of the Revised Penal Code
states in unequivocal terms that:
“The failure of a public officer to have duly
forthcoming any public funds or property
with which he is chargeable, upon demand
by any duly authorized officer, shall be prima
facie evidence that he has put such missing
funds or property to personal use.”
62
Final demand to settle
unliquidated cash advance
Final notice and demand is hereby made to all
concerned to settle and liquidate all outstanding
cash advances as of December 31, 2011, on or
before January 31, 2013. Provided, however, that
those who have been issued by the Commission on
Audit notice and demand, prior to the issuance of
this Circular, to settle and liquidate their cash
advances within a specified period, shall do so
within the period specified in the said notice.
63
This Circular shall serve as the
demand required under appropriate
law, rules and regulations to settle the
accountable officer’s unliquidated
cash advance as well as all those who
are already separated from the service
or have transferred to other agency.
64
Duties of Agency officials:
a. On or before December 15, 2012, all heads of
government agencies shall disseminate in writing this
Circular to all Accountable officials and employees
within their respective agencies and serve a written
notice to and demand settlement of the outstanding
cash advances as of December 31, 2011.
b. The Chief Accountant shall, within the same period,
furnish the head of agency and the head of the
auditing unit thereat a list of accountable officers
with unliquidated and outstanding cash advances.
65
Duties of the Commission on Audit:
 Ensure that the outstanding cash advances are
liquidated within the specified periods
 Shall Evaluate the cash advances of Accountable
Officers to determine compliance with pertinent COA
Rules and Regulations and to report violations thereof
 Shall report on or before February 28, 2013 to the
agency head and to the Director, FAIO, compliance
with this Circular including the ageing of the cash
advances showing the purpose and other information
 Submit to the respective COA Directors the vouchers
and all supporting documents relative to the grant of the
cash advance, copy furnished the COA Chairperson
66
COA Circular No. 2012-005
dated December 7, 2013
“Revocation of COA Circular 2009-008
dated Nov. 9, 2009 and Prescribing the
Use of Punong Barangay’s Certification
(PBC) and COA Auditor’s Advice
(CAA)”
67
Salient Features


The responsibility to initiate, process, approve
financial transactions and issue Punong
Barangay’s Certification (PBC) under oath rests
with the Barangay officials.
The PBC to be issued only under oath after the
PB has duly examined and been satisfied that the:
 The DVs are duly certified and approved,
 The supporting documents are complete.
 The expenditure or disbursement is
proper and valid, and
68
Salient Features

The PB shall be primarily accountable for all
losses arising from issuance of the PBC.

The Authorized Government Depository Bank
(AGDB) shall encash the checks issued if the
corresponding PBC is issued.

Checks encashed without the corresponding PBC
or with falsified PBC shall be the responsibility
of the AGDB.

The PBC shall be numbered sequentially by year
and by barangay and in (4) copies.
69
Salient Features

The PBC (4th) copy shall be submitted to the
accountant for recording within (10) days after
end of month and subsequently submitted to
the COA auditor for audit.

Non-submission of PBCs within (15) days after
demand by the Auditor shall be a ground for
preparation of the COA Auditor’s Advice
(CAA) to the AGDB to hold further payments
of checks issued by the said barangay.
70
COA Circular No. 2012-003
dated October 29, 2012
“Updated Guidelines for the
Prevention of Disallowance of
Irregular, Unnecessary, Excessive
and Unconscionable Expenses as
enumerated under COA Circular No.
85-55A dated Sept. 8, 1985”
71
Legal Basis

Section 2(2), Article IX-D of the
1987 Constitution

Section 33 of P.D. 1445
72
Definitions
1. “Irregular” Expenditures
 Expenditure incurred without adhering to
established rules, regulations, procedural
guidelines, policies, principles or practices
that have gained recognition in laws
 Transactions conducted in a manner that
deviates or departs from, or which does
not comply with standards set
73
2. “Unnecessary” Expenditures
 Expenditures which could not pass the test of
prudence or the diligence of a good father of a family,
thereby denoting non-responsiveness to the exigencies
of the service
 Not supportive of the implementation of the
objectives and mission of the agency relative to the
nature of its operation
 Not dictated by the demands of good government, and
those, the utility of which cannot be ascertained at a
specific time
 Not essential or that which can be dispensed with
without loss or damage to property
74
3. “Excessive” Expenditures
 Signifies unreasonable expense or expense
incurred at an immoderate quantity and
exorbitant price
 Includes expenses which exceed what is
usual or proper, as well as expenses which
are unreasonably high and beyond just
measure or amount
75
4. “Extravagant” Expenditures
 Signifies those incurred without restraint,
judiciousness and economy
 Exceeds the bounds of propriety
 Immoderate, prodigal, lavish, luxurious,
grossly excessive, and injudicious
76
5. “Unconscionable” Expenditures
 Pertains to expenditures which are
unreasonable and immoderate, and
which no man in his right sense would
make, nor a fair and honest man would
accept as reasonable, and those incurred
in violation of ethical and moral
standards
77
Outline
 Fundamental Principles – PD 1445
 General Requirements for all Types of
Disbursements
 Specific Requirements for Each Type of
Disbursement
– Cash Advances
– Fund Transfers to NGOs/Pos
– Fund Transfers to Implementing
Agencies/From Trust Fund to Gen Fund
for Unspent Balance
– Salary
78
– Allowances, Honoraria and Other Forms of
–
–
–
–
–
–
–
–
Compensations
Other Expenditures
Extraordinary and Miscellaneous Expenses
Prisoner’s Subsistence Allowance
Procurement
Cultural and Athletic Activities
Human Resource Development and Training
Program
Financial Expenses
Road Right-of-Way (ROW)/Real Property
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Fundamental Principles,
Sec. 4, P.D. 1445
 No money shall be paid except in pursuance of an
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appropriation law or other specific statutory authority
Use solely for public purpose
Trust funds only for the specific intended purpose
Fiscal responsibility shared by all those exercising
authority over finance, transactions and operations
Disbursements or dispositions should bear approval of
proper officials
Claims should be supported with complete
documentation
Faithful adherence to all pertinent laws and regulations
Observance of GAAP and practices as well as sound
management and fiscal administration, provided they do
not contravene with existing laws and regulations
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General Requirements for All Types
of Disbursements
 Certification of Availability of Fund by Chief
Accountant
 Lawful and sufficient allotment duly obligated as
certified, except for GOCCs and GFIs
 Legality of transaction and conformity with laws,
rules and regulations
 Approval of expenditure by Head of Office or
authorized representative
 Sufficient and relevant documents to establish
validity of claim
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1.0 Cash Advances
 General Guidelines – COA Circulars 97-002, 2009-002,
Sec. 89 of PD 1445, pertinent GAA provisions
 Specific Guidelines and Documents Required
 Types of Cash Advances (Payroll Fund, PCF,
Field/Activity COE, TA (local and foreign)
 Granting of Cash Advance
– General Guidelines
– Documents Required Common to All CAs except
for travel
– Additional Documents per type of Cash Advance
 Liquidation of Cash Advances
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2.0 Fund Transfers to NGOs/POs
 General Guidelines – pertinent provision of
the GAA for the year, Sec. 4.5.6 COA
Circular 2007-001 and GPPB Res. 12-2007
 Specific Guidelines and Documentary
Requirements
– Release of Funds
– Implementation and Liquidation of
Funds Released
– Staggered Release of Funds to NGO/PO
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3.0 Fund Transfers
 General Guidelines – COA Cirular 94-013,
COA Memo 2010-014
 Specific Guidelines and Documents Required
– Transfer to Implementing Agencies
 Transfer
 Implementation and Liquidation by
–
Implementing Agency
 Liquidation by Source Agency
From Trust Fund to General Fund for
Unspent/Excess Amount
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