COMMISSION ON AUDIT CIRCULAR NO.

96-004
April 19, 1996

TO

SUBJECT:

To all Heads of Departments, Bureaus, Offices and

agencies of the national Government; Managing Heads
of Government Owned and/or Controlled Corporations;
Provincial Governors, City and Municipal Mayors; COA
Directors, Heads of Auditing Units; and All Others
Concerned.
Guidelines to implement Section 16 of Executive Order
No. 248 as amended by Executive Order No. 248-A
which prescribes the regulations and new rates of
allowance for official local and foreign travels of
government personnel.

1.0 RATIONALE
This Circular is issued pursuant to the rule making power of
the Commission under Section 2(2), Article IX-D of the
Constitution and to Section 16 of Executive Order No. 248
dated May 29, 1995, as amended by Executive Order No. 248A dated August 14, 1995, which provides that "Within sixty (60)
days after his return to the Philippines, in the case of official
travel abroad, or within (30) days of his return to his permanent
official station in the case of official local travel, every official or
employees shall render an account of the cash advance
received by him in accordance with existing applicable rules
and regulations and/or such rules and regulations as may be
promulgated by the Commission On Audit for the purpose.
Payment of the salary of any official or employees who fails to
comply with the provisions of this Section shall be suspended
until he complies therewith."
2.0 GENERAL GUIDELINES
2.1 Both official local and foreign travels shall be treated and
accounted for as cash advances. Official local travel shall
no longer be treated as direct charges to appropriations or
allotments. The Accountant shall obligate all cash advances
granted.
2.2 No cash advance shall be granted to any official employee
unless a proper accounting of the previous cash advance
for travel given to him is first made or the same is first
liquidated and/or settled.
2.2.1 Proper accounting shall mean the receipt by the
Accountant of the prescribed liquidation documents
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although not yet recorded in the books of accounts

nor audited by the auditor.
2.2.2

Liquidation shall mean the recording of the liquidation

documents in the books of accounts by the
accountant as a credit to the cash advance account
after verifying the same, although not yet audited by
the auditor.
2.2.3 Settlement shall mean the issuance of the Credit
Notice by the Auditor after the audit of the liquidation
documents.
2.3

Cash advances granted for purposes of official travel, both

local and foreign, shall not require bonding of the traveling
official or employee.

3.0 SPECIFIC GUIDELINES

3.1 OFFICIAL LOCAL TRAVEL OF GOVERNMENT
PERSONNEL
3.1.1 DRAWING OF CASH ADVANCE
3.1.1.1 The cash advance voucher for official local
travel shall be supported by the following:
a. Travel order properly approved in
accordance with Section 5 of EO 248,
as amended;
b. Itinerary of travel (Appendix A) detailing
the transportation expenses and travel
expenses to be incurred as basis for
determining the amount of cash
advance;
3.1.1.2 The amount of transportation expenses
allowable shall be the actual rates of the
authorized means of transportation (land, sea,
and air) from the permanent official station to
the destination or place of work or assignment
in the field and back, plus other incidental
expenses:
a. From the office or residence to the point
of embarkation;
b. From the point of embarkation to the
point of debarkation in the place of
destination;
c. From the point of debarkation to the
office of destination or temporary
residence in the place of assignment in
the field and return.
3.1.1.3 The transportation expenses shall be in
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addition to the travel expenses which as

defined under Section 6 of EO 248, as
amended, is divided into two components: i.e.,
travel allowance of two hundred pesos which
will cover the cost of meal inland transportation
and other incidental expenses; and hotel
room/lodging rate of one hundred pesos.
3.1.1.4 The allowable transportation expenses shall
not include local or inland transportation and
other expenses after arrival in the office or
temporary residence in the place of
assignment in the field which are contemplated
to be covered by the travel allowance specified
in Section 6(a) of EO 248.
3.1.1.5 Only ordinary public conveyance or customary
modes of transportation shall be used.
Exceptions may be made in meritorious cases
and justified by prevailing circumstances. For
this purpose, the Department/Agency Head
concerned or his equivalent shall determine
and indicate in the travel authority, the mode or
class of transportation and the kind of
hotel/lodging/pension houses to be taken,
which in all cases shall be the most
advantageous to the government from the
standpoint of economy and efficiency.
3.1.1.6 As a general rule, claims for payment of travel
expenses for official local travel in the amount
of P300 per day as provided for under Section
6 of EO 248, shall not require the presentation
of bills and receipts except in the following
cases:
a. When the claim for reimbursement of
actual travel expenses is in excess
of P300 per day, in which case,
submission of the following shall be
required:
Bills and invoices with official
receipts covering the whole
amount claimed;

Certification of the head of the

agency as to the absolute
necessity of the expenses in the
performance of the assignment.

b. When the official travel/assignment is to

places within the fifty (50) kilometers
radius from the last city or municipality
covered by the Metropolitan Manila
Area (MMA) for those whose
permanent official station is in the
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MMA, or the city or municipality wherein

their permanent official station as
located in the case of those outside the
MMA and the amount of travel
expenses being claimed includes the
hotel room/lodging rate, the following
shall be required:

Submission of the hotel

room/lodging bills or invoices
with official receipts to prove
that they stayed in the place of
destination or assignment and
are not commuting daily from
the place of assignment to the
place of their residence or
permanent official station.
If they commute daily from the place of
their assignment to the place of their residence
or permanent official station, they shall be
allowed to collect only the amount of P300 per
day which shall include the reimbursement of
actual fare the prevailing rates of the
authorized mode of transportation from the
permanent official station to the destination or
place of work and back, and the reasonable
cost of actual mode allowance. The
presentation of bills and receipts covering the
cost of meals shall no longer be required,
except for the transportation tickets which shall
form part of the evidence of the actual travel
undertaken.
3.1.1.7 In cases where government vehicles are used
in the travel, the officials and employees
concerned are not entitled to the transportation
expenses.
3.1.1.8 To ensure that government funds and property
are used only for officials purposes, no
reimbursement of the cost of gasoline and oil
shall be allowed a private vehicle is used.
However, the officials and employees
concerned shall be entitled to the
reimbursement of the equivalent cost of the
customary mode of transportation. Under no
circumstances should fuel be issued to
privately owned motor vehicles.
3.1.1.9 To preclude double payment of expenditures,
the travel allowance prescribed shall not be
allowed in cases where the fare paid for
transportation includes meals and quarters
enroute, or where meals and lodging are paid
for or furnished by the government. Where the
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cost of meals and lodging paid for by the

government does not exceed P300 per day or
where either meals or lodging only is furnished
by the government, the difference shall be paid
to the official or employees concerned to take
care of local or inland transportation and other
incidental expenses while in the place of
assignment. If the costs of meals and lodging
furnished by the government is equal to or
exceeds P300 per day, no travel expenses
shall be paid by the government.
3.1.2 LIQUIDATION OF CASH ADVANCE
3.1.2.1 The cash advance for travel shall be liquidated
by the official/employee concerned strictly
within (30) days after his return to his official
station as required under Section 16 of EO 248
as amended otherwise, payment of his salary
shall be suspended until he complies
therewith.
3.1.2.2 The official/employee concerned shall draw a
liquidation voucher to be supported by the
following:
a. Certificate of travel completed
(Appendix B);
b. Plane, boat or bus tickets covering
actual transportation fare from the
official station or residence to the place
of destination and back. A certification
or affidavit of loss executed by the
official or employee concerned shall not
be considered as appropriate
replacement for the required
transportation tickets.
c. Certification of the head of the agency
as to the absolute necessity of the
expenses together with the
corresponding bills and receipts, if the
expenses incurred for official local
travel exceeds the prescribed rate
of P300 per day. The presentation of a
certification or affidavit of loss in place
of the bills and receipts shall not be
considered for this purpose.
d. Hotel room/lodging bills with official
receipts in the case of official travel to
places within the fifty (50) kilometers
radius from the last city or municipality
covered by the MMA in the case of
those whose permanent official station
is in the MMA, or the city or municipality
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wherein the permanent official station is

located in the case of those outside the
MMA, if the travel allowance being
claimed includes the hotel room/lodging
rate.
e. Certificate of appearance or a copy of
the report on the accomplishment of the
purpose of the travel duly noted by the
agency head or his authorized
representative. However, the certificate
of appearance shall no longer be
required in the case of travels of
agency heads within their area of
jurisdiction.
3.1.2.3 Where a trip is cancelled, the amount paid in
advance shall be refunded in full. In cases
where the trip is cut short or terminated in
advance of the itinerary, the excess payment
shall likewise be refunded. These refunds shall
be made immediately upon cancellation or
termination of the trip. It shall be the primary
duty of agency heads to enforce promptly the
refund.
3.1.2.4 When a trip exceeds the approved itinerary, the
additional travel expenses due shall be paid
upon satisfaction of the following requirements:
a. Submission of a written justification
satisfactory to the agency head or his
authorized representative and an
additional itinerary for the extension of
the trip.
b. Where the whole travel exceeds one (1)
calendar month, approval of the
President shall first be secured before
the additional payment shall be made.
3.2 OFFICIAL TRAVEL ABROAD OF GOVERNMENT
PERSONNEL
3.2.1 DRAWING OF CASH ADVANCE
3.2.1.1 The cash advance voucher for official foreign
travel shall be supported by the following:
a. Travel Order properly approved in
accordance with Section 3 of EO 248,
as amended;
b. Itinerary of travel (Appendix A) detailing
the transportation expenses and travel
expenses including clothing and predeparture expenses to be incurred as
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basis for determining the amount of

cash advance. The commutable predeparture expenses shall cover
miscellaneous/incidental expenses
such as passport, photographs,
immunization, visa fees, taxi fare, tips,
porterage and terminal fees as
provided for under Section 9 of EO 248,
as amended;
c. Where applicable, the authority from
the office of the President to claim
Representation Expenses;
d. Certification of the official or employee
concerned duly verified by the
Accountant to the effect that no clothing
allowance had been received during
the next preceding twenty-four (24)
months, if clothing allowance is being
claimed;
3.2.1.2 The amount of transportation expenses
allowable shall be the actual rates of the
authorized means of transportation:
a. From the point of embarkation to the
point of debarkation in the place of
destination;
b. From the point of debarkation to the
office of destination or temporary
residence in the place of assignment in
the foreign country and return.
The transportation expenses shall be in
addition to the Travel Allowance of One
Hundred United States Dollars ($100) and
Hotel Room/Lodging Rate of Two Hundred
United States Dollars ($200) per day as
provided for under Section 12 of EO 248, as
amended. No transportation expenses shall be
paid if the official or employee authorized to
travel abroad is provided with transportation by
the host country or sponsoring organization or
agency.
Where the official or employee travelling
abroad is provided by the host government or
institution with per diem or allowance lower
than that prescribed in EO 248, as amended,
he shall be entitled to the difference only.
3.2.2 LIQUIDATION OF CASH ADVANCE
3.2.2.1 The cash advance for travel shall be liquidated
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by the official/employee concerned strictly

within sixty (60) days after his return to the
Philippines as required under Section 16, of
EO 248, as amended otherwise, payment of
his salary shall be suspended until he complies
therewith.
3.2.2.2 The official/employee concerned shall draw a
liquidation voucher to be supported by the
following:
a. Certificate of travel completed
(Appendix B):
b. Plane or boat tickets covering actual
transportation fare from the point of
embarkation in the Philippines to the
place of destination and back, provided,
that the presentation of a certification or
affidavit of loss executed by the official
or employee concerned shall not be
considered as appropriate replacement
for the required transportation tickets;
c. Bills and receipts covering
representation expenses incurred, if the
official concerned has been authorized
to incur the same;
d. Hotel room bills with official receipts,
regardless of whether or not the
amount exceeds the prescribed rate of
Two Hundred United States Dollars per
day, provided that for this purpose, no
certification of affidavit of loss shall be
considered or accepted;
e. Where the actual travel expenses
exceeds the prescribed rate of Three
Hundred United States Dollars per day,
The certification of the head of the
agency concerned as to its absolute
necessity shall also be required in
addition to the presentation of the hotel
room bills with official receipts.
3.2.2.3 Where a trip is cancelled, the amount paid in
advance shall be refunded in full. In cases
where the trip is cut short or terminated in
advance of the itinerary, the excess payment
shall likewise be refunded. The head of the
agency shall see to it such refunds are
enforced promptly.
3.3 MONITORING OF CASH ADVANCES FOR TRAVEL
3.3.1 The Accountant shall retain a copy of the travel
advance voucher and the itinerary of travel (Appendix
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A). He shall keep an index of the cash advances

made by each official/employee and shall monitor the
liquidation of the said cash advances.
3.3.2 In addition, the accountant shall:
a. Send within ten (10) days before the expiration
of the 30 or 60 days period specified under
Section 16, of EO 248, a written reminder
under signature of the head of the agency or
his duly authorized representative, enjoining
the official or employee concerned to liquidate
his travel cash advance. This is to preclude
complaints arising form suspension of salaries
due to non-liquidation of travel advances.
b. Delete the name of the official or employee
from the subsequent payrolls until such time
that the travel cash advance has been fully
liquidated, if the official or employee concerned
fails to liquidate the cash advance within the
prescribed period.
c. Verify the liquidation voucher and supporting
documents, and record the same in the books
of accounts subject to the post audit by the
auditor.
4.0 REPEALING CLAUSE
All COA Circulars and issuances pertaining to official local and
foreign travels, inconsistent with the provisions contained herein, are
hereby amended or modified accordingly.
5.0 EFFECTIVITY
This Circular shall take effect immediately. Executive Order No.
248 dated May 29, 1995 and Executive Order No. 248-A dated August
14, 1995 are appended to this Circular as Annexes 1 and 2.

(Sgd.) CELSO D. GAGAN

Chairman
(Sgd.) ROGELIO B. ESPIRITU
Commissioner

(Sgd.) SOFRONIO B. URSAL

Commissioner