COMMISSION ON AUDIT CIRCULAR NO.

91-357 July 10, 1991

TO : The Secretary, and Undersecretary of the Department of Transportation and

Communications, Assistant Secretaries for Postal, Telecommunications/Finance
and Comptrollership Services, Directors of Finance and Comptrollership
Services, Regional Directors of the Regional Telecommunications and Postal
Services, Postmasters, Telegraphic Transfer Collecting and Disbursing Officers,
BTR Regional Directors, COA Directors, Unit Auditors and all Concerned.

SUBJECT: Accounting Guidelines and Procedures for Postal Money Order and Telegraphic
Transfer Collections

1.0 PURPOSE

This Circular is issued to prescribe accounting guidelines and related procedures for
Postal Money Order and Telegraphic Transfer Collections.

2.0 GENERAL GUIDELINES

2.1 The operations of the Depository Funds 501 and 503 of the Telecommunications
Office (TO) and Postal Services Office (PSO) shall be discontinued due to the
authority granted by the Permanent Committee to treat collections of Postal Money
Orders (PMOs) and Telegraphic Transfers (TTs) as trust liabilities under the General
Fund in accordance with Section 51 of PD 1177. Such approval is contained in the
4th Indorsement of the Department of Budget and Management dated February 24,
1988.

2.2 Collections of PMOs and TTs as well as remittances by foreign postal administration
shall be treated as Trust Liabilities under the General Fund and shall be deposited
in a current account to be maintained with the Philippine National Bank, exclusively
for PMOs and TTs.

2.3 The amount deposited as trust liabilities shall be used exclusively for payment of
PMOs and TTs through cash advances granted to Postmasters/Telegraphic Transfer
Collecting and Disbursing Officers (TTCDOs) subject to liquidations and
replenishment for the amount utilized.

2.4 When the exigencies of the service require, collections of Postmasters/TTCDOs

may be used to pay PMOs and TTs in case cash advances granted were exhausted
in pursuance of Section 69 (2) of PD 1445. In no case shall collections be used for
the payment of budgetary expenses and other obligations. It is understood that the
Agency Head shall install adequate control measures in the utilization, granting and
replenishment of cash advances.

Likewise, collections shall remain to be the cash accountability of the

Postmaster/TTCDO until such time that these are deposited with the authorized
government depository bank.

2.5 PMO and TT fees and other collections such as proceeds from sale of stamps, box
rentals and telegraphic tolls shall continue to be treated as income of the General
 Fund to be deposited intact with the Bureau of the Treasury (BTR) or through an
authorized government depository bank.

2.6 Postmasters/TTCDOs shall maintain separate cashbooks for collections and cash
advances.

2.7 The maximum amount of cash advances that each Postmaster/TTCDO may
request shall be determined by the Assistant Secretaries of the Postal Services
Office and Telecommunications Office.

2.8 Postmasters shall submit the following reports to the Accounting Division of their
respective Regional Offices:

2.8.1 Monthly

PSO Form 6804 - Report of Collections and Deposits

(Revised January, 1991-Exhibit A)

2.8.2 Semi-monthly/upon replenishment

PSO Form 6805 - Report of Disbursements

(Revised January, 1991-Exhibit B)

2.9 The TTCDO, on the other hand, shall submit the following reports to the Accounting
Division of their respective Regional Offices:

2.9.1 Monthly

B.T. Form No. 51 - Report of Collections

(Revised January, 1991-Exhibit C)

B.T. Form No. 52 - Report of Payments

(Revised January, 1991-Exhibit D)

2.9.2 Semi-monthly/upon replenishment

B.T. Form No. 504 - Abstract of Telegraphic Transfer Issued (Exhibit E)

T.O Form No. 510 - Report of Telegraphic Transfer

Paid (RTTP) (Revised January, 1991-Exhibit F)

2.10 The printing of the revised forms as mentioned in Item Nos. 2.8 and 2.9 shall be
undertaken the moment the available stock of old forms will just be enough for two
months consumption. These revised forms shall be used only once the old forms
are totally consumed.

2.11 PSO/TO Central Office/Regional Offices shall submit semi-annual status report of
trust liabilities as prescribed under COA-DOF-DBM Joint Circular No. 9-81, as
amended, and such other periodic accountability reports and statements, including
bank reconciliation statement, as are required by fiscal agencies.
3.0 ACCOUNTING TREATMENT

The accounting entries to record the transactions covered in this Circular are
provided in Annexes A and B.

4.0 TRANSITORY PROVISION

4.1 The Accounting Sections of PSO/TO shall coordinate with the Treasury Account
Reconciliation Division, Bureau of the Treasury (TARD, BTR) for the reconciliation of
the depository accounts and settlement of overdraft accounts for PMO/TT funds.

4.2 Once the depository accounts for PMO/TT funds are reconciled, cash balances
shall be closed and transferred to the General Fund by the respective agencies.

5.0 REPEALING CLAUSE

Provisions of circular, memoranda and/or regulations inconsistent herewith are

hereby revoked or modified accordingly.

6.0 EFFECTIVITY

This circular shall take effect January 1, 1991.

(SGD.) ROGELIO B. ESPIRITU, Commissioner

(SGD.) BARTOLOME C. FERNANDEZ, JR., Commissioner
(SGD.) EUFEMIO C. DOMINGO, Chairman

Note: See attachments:

Annex A - Illustrative Accounting Entries (Postal Money Orders)

Annex B - Illustrative Accounting Entries (Telegraphic Transfers)
Exhibit A - Report of Collections and Deposits Form
Exhibit B - Report of Disbursement Form
Exhibit C - Report of Collections Form
Exhibit D - Report of Payments Form
Exhibit E - Abstract of Telegraphic Transfer Issued Form
Exhibit F - Report of Telegraphic Transfer Paid Form Accountability for BT Form No. 421