COA Circular No. 96-007, Prescribing the Use of the Accountant's Advice of Local Check Disbursements

August 15, 2007 BLGF MEMORANDUM CIRCULAR NO. 019-07 TO : All BLGF Regional Directors, Provincial, City and Municipal Treasurers; and Others Concerned SUBJECT : COA Circular No. 96-007, Prescribing the Use of the Accountant's Advice of Local Check Disbursements For the proper information and guidance of all concerned, Commission on Audit Circular No. 96-007, dated May 15, 1996, provides and prescribes the use of the Accountant's Advice of Local Check Disbursements, as follows: "It has been observed that not all government checks paid by depository banks are covered by duly approved disbursement vouchers/payrolls. This resulted in the doubtful validity of the transactions paid and the breakdown in the control system for disbursements. "To prevent this occurrence and to ensure that checks encashed by government depository banks are for legitimate local government expenditures, the use of the Accountant's Advice of Local Check Disbursements is hereby prescribed . . . . Government depository banks are, therefore, enjoined to pay checks issued by local government units only if covered by the Accountant's Advice of Checks issued. The Provincial/City/Municipal Accountant shall prepare the form in four (4) copies to be distributed as follows: "ORIGINAL to the bank concerned "DUPLICATE to the provincial/city/municipal accountant "TRIPLICATE to the provincial/city/municipal treasurer "QUADRUPLICATE to the local auditor concerned "To preclude missending of ( sic ) the Accountant's Advice to the agency concerned, the Accountant's duly designated and authorized representative shall deliver to the agency concerned their copies which shall be duly acknowledged by the Bank's Cashier or Bank's representative. "A separate notice shall be prepared for each financial institution where the local government unit maintains its depository account. In order to identify the check issued for a particular voucher, the provincial/city/municipal treasurer shall indicate on the face of the check the number assigned to the disbursement voucher by the provincial/city/municipal accountant. "All provincial/city/municipal accountants and their assistants and/or authorized signatories on their behalf are required to submit their specimen signatures to the depository banks of their respective units. The local government depository banks, on the other hand, are enjoined to honor only Accountant's Advice signed by the said accountants or their authorized signatories." AEDISC "This Circular shall take effect immediately." The form of the Accountant's Advice of Local Check Disbursements is hereto attached as Annex "A" of this circular. The Public Information and Assistance Division, Internal Administration Office of this Bureau is hereby instructed to disseminate copies of this Memorandum Circular, including its attachment (Annex "A"), to all BLGF Regional Directors and all City and Municipal Treasurers of Metropolitan Manila Area. The BLGF Regional Directors shall in turn disseminate copies thereof to all Provincial Treasurers and City Treasurers in the regions. The Provincial Treasurers shall likewise disseminate the same to all Municipal Treasurers within their respective jurisdiction. (SGD.) MA. PRESENTACION R. MONTESA Executive Director ANNEX A ________________________________ PROVINCE/CITY/MUNICIPALITY ACCOUNTANT'S ADVICE OF LOCAL CHECK DISBURSEMENT __________ Date To: The Bank Manager _______________ _______________ Voucher No. Payee Amount etc. Total Amount ____________ Amount in Words ____________ _____________________________ _____________________________ Certified Correct: Delivered by: ________________________ ________________________ Bookkeeper Accountant's Representative (Signature over Printer Name) (Signature over Printer Name) Approved by: Received by: ________________________ ________________________ Prov./City/Mun. Accountant Bank Representative (Signature over Printer Name) (Signature over Printer Name)