COMMISSION ON AUDIT CIRCULAR NO.
92-388 October 30, 1992
TO : All Heads of Departments, Bureaus and Offices, Self-governing Boards and
Commissions, State Universities and Colleges, Schools and Hospitals; Chiefs
of Financial and Management Services; 4Chief Accountants/Heads of
Accounting Units; Cashiers; Disbursing Officers; COA Directors and State
Auditors; and Others Concerned.
SUBJECT: Remittance of Cash Deposited with Government Depository Banks
Corresponding to the Unobligated Allotment at the End of the Year of Regional
Offices and Provincial Offices/Operating Units of Government Agencies
Receiving Funding Checks.
1.0 PURPOSE
This Circular is issued to:
1.1 Reiterate with modification the provision under paragraph 4.12 of COA Circular
No. 90-326 dated February 22, 1990.
1.2 Amend the above mentioned provision to include the regional offices receiving
funding checks direct from the agency's Central Offices.
1.3 Specify the responsibilities of the officials concerned regarding the remittance of
cash corresponding to the unobligated balance of allotment; and
1.4 Reiterate the prescribed accounting entries pertinent thereto.
2.0 RATIONALE
It has been noted that most of the Provincial Offices (PO)/Operating Units (OU) as
well as Regional Offices (RO) receiving funding checks from the Central Office (CO)/RO
of government agencies do not remit to the National Treasury the cash deposited with
the government depository banks corresponding to the unobligated allotment at the end
of the year. This practice is not only violative of duly promulgated policies but also has
adverse effects on sound cash programming of the government. The need, therefore, to
reiterate the requirement embodied in the aforecited COA Circular has become
imperative considering that compliance therewith has not been fully enforced.
3.0 PROVISION AMENDED
Section 4.12 of COA Circular No. 90-326 is hereby amended as follows:
"Any balance of deposits per books of the Regional
Office/Provincial Office/Operating Unit corresponding to the
unobligated allotment at the end of the year shall be withdrawn for
remittance to the National Treasury and covered by a remittance
advice. In case the unobligated allotment is not backed up by cash, no
such withdrawal shall be made."
4.0 RESPONSIBILITIES
4.1 The Accountant/Head of Accounting Unit of the RO/PO/OU shall:
4.1.1 take up the reversion of the unobligated balance of allotment with a
corresponding cash back up which is deposited with an authorized
government depository bank by drawing a journal voucher at the end of
the year by using the following entry:
Cr
8-81-100 xxx
0-90-000 (xxx)
4.1.2 prepare a disbursement voucher to effect the withdrawal of cash
equivalent to the amount of the unobligated allotment as of year-end within
ten (10) days after the end of the year.
4.1.3 cause the approval of the disbursement voucher by the head of the
agency;
4.1.4 take up the withdrawal and deposit of the cash in the Journal of Checks
Issued as follows:
Dr Cr
8-81-100 xxx
8-70-370 xxx
4.1.5 furnish the Regional Accountant certified photocopies of the duly approved
disbursement voucher and validated Remittance Advice in the case of
PO/OU and CO Chief Accountant in the case of RO/OU.
4.2 The Cashier/Disbursing Officer of the RO/PO/OU shall:
4.2.1 draw a check corresponding to the amount of the unobligated allotment as
reflected in the approved Disbursement Voucher payable to the Treasurer
of the Philippines;
4.2.2 remit the same directly to the Bureau of the Treasury or through an
authorized government depository bank for the account of the National
Treasurer of the Philippines using the CO/RO code, as the case maybe
not later than fifteen (15) days after the end of the year;
4.2.3 attach the duly validated Remittance Advice to the Disbursement Voucher;
4.2.4 attach the Disbursement Voucher and duplicate copy of the check to the
Report of Checks Issued for submission to the Accounting Unit.
4.3 The Agency Central/Regional Accountant/Head of Accounting Unit shall:
4.3.1 record in a journal voucher the reversion by RO/PO/OU of the unobligated
balance of allotment at the end off the year with this entry:
Dr Cr
8-71-100 xxx
0-90-000 xxx
4.3.2 take up the remittance of cash on the basis of the duly approved
disbursement voucher and validated remittance advice with this entry in a
JV:
8-70-700 xxx
8-71-100 xxx
4.4 The COA Resident Auditor of the RO/PO/OU shall --
4.4.1 enforce implementation by the agency of the aforecited requirements to
remit the cash corresponding to the unobligated balance of allotment at
the end of the year;
4.4.2 post-audit immediately the transactions herein mentioned.
5.0 PENALTY CLAUSE
All concerned are required to strictly comply with the provisions of this Circular,
otherwise disciplinary action shall be imposed under existing laws, rules and
regulations.
6.0 REPEALING CLAUSE
Provisions of existing rules and regulations inconsistent herewith are hereby
amended or repealed accordingly.
7.0 EFFECTIVITY
This circular shall take effect immediately.
(SGD.) SOFRONIO B. URSAL, Commissioner
(SGD.) ROGELIO B. ESPIRITU, Commissioner
(SGD.) EUFEMIO C. DOMINGO, Chairman
