Commission on Audit (COA) Circular No. 2006-002, dated January 31, 2006

July 19, 2006 BLGF MEMORANDUM CIRCULAR NO. 010-06 TO : The Regional Directors of this Bureau; City and Municipal Treasurers of Metropolitan Manila; Provincial, City, and Municipal Treasurers; and All Others Concerned SUBJECT : Commission on Audit (COA) Circular No. 2006-002, dated January 31, 2006 In consideration of the appeal with the Commission on Audit (COA) for the amendment of COA Circular No. 2005-001, dated February 28, 2005, eliminating the authority of local treasurers to certify on the availability of cash in the disbursement voucher and in view of the provisions of Section 344 of the Local Government Code of 1991, providing among others that the local treasurer certifies the availability of funds for disbursement purposes, COA Circular No. 2006-002, dated January 31, 2006, was issued, providing to wit: "2.0 POLICIES: "2.1 The Head of the Requesting Unit shall prepare the Obligation Request (ObR) Annex A and the Disbursement Voucher (DV) Annex B and certify on the necessity and legality of changes to appropriation and allotment under his direct supervision. He shall also certify to the validity, propriety and legality of supporting documents. "2.2 The Head of the Budget Unit shall certify the existence of available appropriation, take charge of budgetary activities as provided under Section 344 and 475, respectively, of R.A. 7160, the Local Government Code, and shall maintain & Registries of Appropriation, Allotments and Obligations as prescribed under the Manual on the New Government Accounting System for Local Government Units. "2.3 The Head of the Accounting Unit shall certify the obligation of allotment and completeness of supporting documents in the DV. CAScIH "2.4 The Treasurer shall certify the availability of funds in the DV as provided in the Local Government Code. "2.5 The Treasurer shall prepare the Daily Cash Position Report Annex C to be submitted to the Local Chief Executive. (emphasis supplied) "3.0 SAVING CLAUSE Cases not covered in this Circular shall be referred to the Government Accountancy and Financial Management Information System (GAFMIS) Sector, this Commission, for resolution. "4.0 REPEALING CLAUSE All prior COA circulars/memoranda and other issuances inconsistent herewith are hereby amended or repealed accordingly. "5.0 EFFECTIVITY This Circular shall take effect JAN. 31, 2006." The Provincial Treasurer and District Treasurers of Metropolitan Manila are hereby instructed to disseminate this Memorandum Circular to all City and Municipal Treasurers within their respective jurisdictions. (SGD.) MA. PRESENTACION R. MONTESA Executive Director ATTACHMENT February 28, 2005 April 1, 2005 COA CIRCULAR NO. 001-05 TO : All Heads of National Government Agencies, Local Government Units and Government Owned and/or Controlled Corporations; Heads of Financial Management Services/Comptrollership Departments, Heads of Accounting Units; Heads of Budget Units; COA Assistant Commissioners, Directors, Auditors; and All Others Concerned SUBJECT : Accounting Policies Related to the Budgetary System in the National, Corporate and Local Government Sectors under the New Government Accounting System (NGAS) 1.0 RATIONALE/OBJECTIVES Section 2 (2), Article IX-D of the 1987 Philippine Constitution mandates the Commission on Audit to ". . . promulgate accounting and auditing rules and regulations. . . ." This circular defines the roles and functions of the Heads of Budget or its equivalent in the certification as to the availability of funds and obligations on contracts/purchase orders and all claims against the government agencies. For purposes of this circular, "funds" is construed to mean appropriations/allotments/budget. It also prescribes the revised forms for use in the obligation/utilization and disbursement of such funds. 2.0 POLICIES Under the NGAS, the Heads of the Budget or its equivalent and Accounting Units shall have the following functions: 2.1 The Head of the Budget Unit or its equivalent shall maintain the registries of funds/appropriations/allotments and obligations/utilization and shall certify on their availability. 2.2 The Head of the Accounting Unit shall keep the records and certify on the availability of cash. DEScaT The revised forms for the incurrence of obligation/utilization of budget and disbursement shall be as follows: Obligation Slip for incurrence of obligation in the national and local government sectors Annex A Budget Utilization Slip for utilization of the budget in the corporate government sector Annex B Disbursement Voucher for payment of obligations/liabilities/expenses of all government agencies Annex C 3.0 FORMULATION OF IMPLEMENTING GUIDELINES AND PROCEDURES The Government Accounting and FMIS, this Commission, shall prepare the necessary implementing guidelines and procedures on the recording and monitoring of the Agency Budget and cash position. 4.0 REPEALING CLAUSE All prior COA circulars/memoranda and other issuances inconsistent herewith are hereby amended or repealed accordingly. 5.0 EFFECTIVITY This Circular shall take effect April 1, 2005. (SGD.) GUILLERMO N. CARAGUE Chairman January 31, 2006 COA CIRCULAR NO. 002-06 TO : All Heads of Local Government Units; Heads of Accounting Units; Heads of Budget Units; Treasurers; COA Assistant Commissioners, Directors, Auditors; and All Others Concerned SUBJECT : Restatement with Amendments of COA Circular No. 2005-001 on Accounting Policies Related to the Budget, Accounting and Disbursement Functions in Local Government Units Under the New Government Accounting System (NGAS) I. RATIONALE/OBJECTIVES Section 2 (2), Article IX-D of the 1987 Philippine Constitution mandates the Commission on Audit to ". . . promulgate accounting and auditing rules and regulations . . . ." IcHDCS In line with NGAS implementation, this circular delineates the responsibilities of the Heads of the Requesting Office/Unit, the Budget Unit and the Accounting Unit as well as the Treasurer in Local Government Units. It also prescribes the revised forms to be used in recording obligations incurred and disbursements. 2.0 POLICIES The responsibilities of the Heads of the Requesting Unit, the Budget Unit, the Accounting Unit and the Treasurer are hereby set forth as follows: 2.1 The Head of the Requesting Unit shall prepare the Obligation Request (ObR) Annex A and the Disbursement Voucher (DV) Annex B and certify on the necessity and legality of charges to appropriation and allotment under his direct supervision. He shall also certify to the validity, propriety and legality of supporting documents. SAHEIc 2.2 The Head of the Budget Unit shall certify the existence of available appropriation, take charge of budgetary activities as provided under Section 344 and Section 475, respectively, of R.A. 7160, the Local Government Code, and shall maintain the Registries of Appropriations, Allotments and Obligations was prescribed under the Manual on the New Government Accounting System for Local Government Units. 2.3 The Head of the Accounting Unit shall certify the obligation of allotment and completeness of supporting documents in the DV. 2.4 The Treasurer shall certify the availability of funds in the DV as provided in the Local Government Code. 2.5 The Treasurer shall prepare the Daily Cash Position Report Annex C to be submitted to the Local Chief Executive. 3.0 SAVING CLAUSE Cases not covered in this Circular shall be referred to the Government Accountancy and Financial Management Information System (GAFMIS) Sector, this Commission, for resolution. 4.0 REPEALING CLAUSE All prior COA circulars/memoranda and other issuances inconsistent herewith are hereby amended or repealed accordingly. 5.0 EFFECTIVITY This Circular shall take effect January 31, 2006 ICcDaA (SGD.) GUILLERMO N. CARAGUE Chairman (SGD.) EMMANUEL M. DALMAN Commissioner (SGD.) REYNALDO A. VILLAR Commissioner ANNEX A OBLIGATION REQUEST OBLIGATION REQUEST (ObR) INSTRUCTIONS A. The Obligation Request shall be prepared in three copies, to be distributed as follows: Original to be attached to the DV Duplicate Budget Unit Triplicate Accounting Unit B. The Budget Unit shall stamp the date of receipt on the face of this form. C. This form shall be accomplished in the following manner: 1. No . number assigned to the Obligation Request by the Budget Unit or its equivalent. The numbering shall be as follows: CSIDEc 2. Payee name of payee or creditor 3. Office name of the office of payee or creditor 4. Address address or location of the office of the payee or creditor 5. Responsibility Center code of the cost center where expenses shall be charged 6. Particulars brief description of the obligation requested 7. F.P.P. code for function/program/project as shown in the approved appropriation/allotment 8. Account Code expense/asset/liability account code where the obligation shall be charged 9. Amount amount of obligation/adjustment 10. Certified (Box A) Certification by the Head of the Requesting Office or his authorized representative on the necessity and legality of charges to the appropriation/allotment under his direct supervision, and validity, propriety and legality of supporting documents The certifying officer shall affix his signature, print his name, indicate his position, and the date of his signing on the spaces provided. 11. Certified (Box B) Certification by the Head of the Budget Unit or his authorized representative on the existence of available appropriation. The certifying officer shall affix his signature, print his name, indicate his position, and the date of his signing on the spaces provided. IEAaST D. Any correction/adjustment by the Accounting Unit which will require the corresponding adjustment in the appropriate RAAO shall be coordinated with the Budget Unit. ANNEX B DISBURSEMENT VOUCHER DISBURSEMENT VOUCHER (DV) INSTRUCTIONS A. The DV shall be printed in one whole sheet of 8 1/2 x 11 size bond paper. This shall be prepared in three copies to be distributed as follows: Original Accounting Unit Duplicate Cash Unit Triplicate Payee B. The Accounting Unit shall stamp the date of receipt on the face of this form. C. This form shall be accomplished in the following manner: 1. DV No. number assigned to the DV by the Accounting Unit. It shall be numbered as follows: 2. Mode of Payment put a check "/" mark in the appropriate box opposite the mode of payment 3. Payee name of the payee or creditor 4. TIN/Employee No . Tax Identification Number (TIN) of the claimant/Identification Number assigned by the agency to the officer/employee CTaIHE 5. Obligation Request No . Number of the obligation request supporting the DV 6. Address address of the claimant 7. Responsibility Center (Office/Unit/Project and Code) the office/unit/project and code assigned to the cost center where the disbursement shall be charged 8. Explanation brief description of the disbursement 9. Amount amount of claim 10. Certified (Box A) certification of the Head of Accounting Unit or his authorized representative as to obligation of allotment for the purpose as indicated and completeness of supporting documents The certifying officer shall affix his signature, print his name, indicate his position, and the date of his signing on the spaces provided. 11. Certified (Box B) certification by the Treasurer or his Authorized Representative on the availability of fund. The certifying officer shall affix his signature, print his name, indicate his position, and the date of his signing on the spaces provided. 12. Approved for Payment (Box C) approval by the Agency Head or his Authorized Representative on the payment covered by the DV. The approving officer shall affix his signature, print his name, indicate his position, and the date of his signing on the spaces provided. 13. Received Payment (Box D) acknowledgment by the claimant or his duly authorized representative for the receipt of the check/cash and the date of receipt. The claimant/payee shall affix his signature on the spaces provided and shall indicate the number and the date of the check, bank name and number and date of OR/other relevant documents issued to acknowledge the receipt of payment. HACaSc 14. JEV No. and Date Number and date of the Journal Entry Voucher ANNEX C Provincial Government of Nueva Vizcaya DAILY CASH POSITION REPORT General Fund As of ___________ General Fund Collections: Local Taxes Pxxx Internal Revenue Allotment xxx Permits and Licenses xxx Service Income xxx Business Income xxx Subsidy Income xxx Other Income xxx Total Collections Pxxx Less: Disbursements Personal Services xxx Maintenance and Other Operating Expenses xxx Capital Outlay xxx Financial Expenses xxx Total Disbursements Pxxx Net Cash for the day xxx Add: Cash, Beginning Balance Pxxx Total Cash Available to date Pxxx === Certified Correct: _______________________________ Treasurer/Authorized Representative _____________________________ Date