January 31, 2006 COA CIRCULAR NO. 003-06 To All Heads of National Government Agencies; 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 Restatement with Amendments of COA Circular No. 2005- 001 on Accounting Policies Related to the Budget, Accounting and Disbursement Functions in National Government Agencies 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 .. . ." Inline with NGAS implementation, this circular delineates the responsibilities of the Heads of the Requesting Unit, Budget Unit and the Accounting Unit in national government agencies. It also prescribes the revised forms to be used in recording obligations incurred, budget utilization and disbursements. 2.0 POLICIES The responsibilities of the Heads of the Requesting Unit, the Budget Unit and the Accounting Unit are hereby set forth as follows: 2.1 The Head of the Requesting Unit shall prepare the Obligation Request (ObR) — Annex Al or Budget Utilization Request (BUR) — Annex A2 and the Disbursement Voucher (DV) — Annex B. He shall certify on the necessity and legality of charges to appropriations/allotment under his direct supervision as well as the validity, propriety and legality of supporting documents. 2.2 The Head of the Budget Unit shall certify the availability of allotment and obligations incurred in the ObR or budget and utilization in the BUR. 2.3 The Head of the Budget Unit shall maintain the Registries of Allotments and Obligations (RAO) prescribed under the Manual on the New Government Accounting System for National Government and/or the Registry of Budget and Utilization (RBU) — Annex C for income which the agency may use as authorized by law.2.4 For contract or purchase order, the Head of the Accounting Unit shall certify the availability of funds based on the ObR or BUR duly certified by the Budget Officer. 2.5 The Head of the Accounting Unit shall certify the availability of cash and completeness of supporting documents in the Dv. 2.6 The Head of the Accounting Unit shall also prepare the Daily Cash Position Report — Annex D to be submitted to the Head of the Agency. 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. (SGD.) GUILLERMO N. CARAGUE Chairman (SGD.) EMMANUEL M. DALMAN Commissioner (SGD.) REYNALDO A. VILLAR Commissioner ATTACHMENTS: Annex Al — Obligation Request Annex A2 — Budget Utilization Request Annex B — Disbursement Voucher AnnexC — Registry of Budget and Utilization AnnexD — Daily Cash Position Report ANNEX A1 OBLIGATION REQUEST saeapo he ips COMPSON ON AT Conc Quand OBUGATION REQUEST Pape ie | al ae Tecis ma lee Anat Tali ia (] cease oyPowmadicacoeo (any OBLIGATION REQUEST (ObR) INSTRUCTIONS A. The ObR 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: 00 ‘Seialmamber (oe srs exh Meth Yer Alm ls 2. Payee — name of payee or creditor 3. Office — name of the office of payee or creditor 4. Address — address of the payee 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. Amount — amount of obligation/adjustment 8. P.P.A, — code for program/project/activity as shown in the ABM/SARO/allotment advice 9. Account Code — expense/assetfliability account code where the obligation shall be charged 10. Certified (Box A)— Certification by the Head of11 Requesting Office or his authorized representative on the necessity and legality of charges to the budget under his 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 Certified (Box B)— Certification by the Head of the Budget Unit or his authorized representative on the availability of allotment obligated for the purpose as indicated therein. The certifying officer shall affix his signature, print his name, indicate his position, and the date of his signing on the spaces provided D. Any correction/adjustment by the Accounting Unit which will require the corresponding adjustment in the appropriate RAO shall be coordinated with the Budget Unit. ANNEX A2 BUDGET UTILIZATION REQUEST matt Fakes COMMISION ON ALOT Commit Ane, ue hy BUDGET UIUZATION REQUEST Tat Oe ‘es = Pals | mtted at {Jesper |p adsl if detain mes (Caren aes ope i Soar Tega oko tae cue BUDGET UTILIZATION REQUEST (BUR) INSTRUCTIONS, A The BUR 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 BUR by the Budget Section/Unit. The numbering shall be as follows:oc 09 00 cach ya) ‘Month 1 Ve Bade Cain | L, Sef ob nes | | Payee — name of payee/creditor Office —name of the office of payee/creditor Address — address or the location of the payee/creditor w,wn Responsibility Center — code of the center where expenses shall be charge a Particulars — brief description of the charges 7. Account Code — expense/asset/liability account code where the utilization shall be charged 8. Amount — amount of budget utilization/adjustment 9. Certified (Box A)— Certification by the Head of the Requesting Unit or his authorized representative on necessity and legality of charges to the budget under his supervision, and validity, propriety and legality of supporting documents. The certifying officer shall affix his signature, indicate his printed name, position and the date of his signing in the spaces provided. 10. Certified (Box B)— Certification by the Head of the Budget Unit or his authorized representative on the availability of budget earmarked/utilized for the purpose as therein. The certifying officer shall affix his signature, print name, indicate his position and the date of his signing in the spaces provided. D. Any correction/adjustment by the Accounting Unit which will require the corresponding adjustment of budget utilization shall be coordinated with the Budget Unit. ANNEX B DISBURSEMENT VOUCHER hoa Raub thPigies COMMON ON AUDITPee] sind metont Cjth AKATON AMO odie Citta stented sweatin ami S| Sue Tar Tit hn Nam tain ton To an Dae eral be Ld papa re iy fume bie pita . ie [ca Rec Doane i ea a TTI Fourth aco i] Cini myDISBURSEMENT VOUCHER (DV) INSTRUCTION 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's 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 (000 0) ono L Se seis foreach year) Month Year ——_» 2. Mode of Payment — put a check "/* mark in the appropriate box opposite the mode of payment. 3. Payee — name of the payee/creditor. 4. TiN/Employee No. — Tax \dentification Number (TIN) of the claimant/Identification Number assigned by the agency to the officer/employee 5. _ OR/BUR No. — number of the Obligation Request/Budget Utilization Request supporting the DV. 6. Address — address of the claimant. 7. Responsibility Center (Office/Unitb 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 by the Head oflL 12. 13. Accounting Unit or his authorized representative on the availability of cash, subject to ADA, and on the completeness of the 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 Approved for Payment (Box B) — approval by the Head of the Agency 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 Received Payment (Box C) — 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 space provided and shall indicate the number and the date of the check/ADA, bank name and number and date of OR/other relevant documents issued to acknowledge the receipt of payment. JEV No. and Date — Number and date of the Journal Entry Voucher, ANNEX C REGISTRY OF BUDGET AND UTILIZATIONPats cots q Ajay tg a 0) i trent oie REGISTRY OF BUDGET AND UTILIZATION (RBU) INSTRUCTIONS A The RBU shall be maintained by Expense Class — RBUPS for Personal Services, RBUMO for Maintenance and Other Operating Expenses, RBUCO for Capital Expenses and RBUFE for Financial Expenses B. This shall be accomplished as follows: 1. Sheet No. — sheet number which shall be one series for each year 2. Date — date of the Approved Budget/Budget Utilization Request (BUR) 3. Reference — Budget/BUR number4, Account Code — account code to where the utilization shall be charged as shown in the BUR 5. Approved Budget — amount of approved budget and any supplemental/additional budget 6. Cumulative Budget — the cumulative amount of budget as of a given date 7. Utilization — amount of utilized budget/commitment made based on the approved BUR supported by pertinent documents 8. Cumulative Utilization — the cumulative amount of utilization as of a given date 9. Balance — budget available for utilization C. This Registry shall be maintained to control the budget. Unless authorized, the amount of utilization should not exceed the available budget. D. At year-end, unless authorized, the unutilized budget in the RBU shall be closed. No BUR is needed for the closure, as the unutilized budget will automatically lapse. E. In case a balance in the budget exists in any RBU, a negative entry shall be posted in the Cumulative Budget Column to arrive at zero balance COMMISSION ON AUDIT DAILY CASH POSITION REPORT As of Cash Allocation Received Add: Collection which the Agency is Authorized to Use Service Income Business Income Other Income Total Collections Total Cash Received for the day Less: Disbursements Personal Services Maintenance and Other Operating Expenses Capital Outlay Financial Expenses Total Disbursements Net Cash Available for the day Add: Cash, Beginning Balance ANNEX DTotal Cash Available todate Certified Correct. Representative Date Head, Accounting Unit/Authorized