Professional Documents
Culture Documents
SUBJECT: Accounting and auditing rules and regulations on the transfer of assets,
liabilities and surplus, including accounting records, of national government
agencies whose functions are totally or partially devolved to the local
government units.
I. PURPOSE
This circular is issued to prescribe accounting and auditing rules and regulations in
connection with the transfer of the assets, liabilities and surplus including accounting records,
of national government agencies whose functions are totally or partially devolved to the
local government units pursuant to Section 17,Republic Act No. 7160, the Local Government
Code of 1991.
For the purpose of this circular the following terms shall be construed to mean as follows:
2. The books of accounts of the NGAs whose functions are to be devolved partially to
the LGUs shall be closed/adjusted and transferred to the extent of the balances of
actual assets, liabilities and surplus.
5. Devolved NGAs maintaining multiple funds shall prepare consolidated final trial
balances before the actual transfer.
6. NGAs whose functions are totally devolved to the LGUs shall prepare and submit
reports and statements as of the cut-off date as required under the following COA
Circulars:
No./Date Subject
COA Cir. No. 92-89E dated Updated guidelines and procedures on the
March 4, 1992 presentation and submission of quarterly and
year-end trial balances and supporting
statements pursuant to Section 26 (2),
Chapter 4, Title I-B, Book V, Executive Order
No. 292, S. 1987, the Administrative Code of
1987.
COA Cir. No. 92-125A dated Updated procedures and use of new formats
March 4, 1992 in the reconciliation of treasury warrants. In
the case of NGAs whose functions have
been partially devolved to the LGUs, the
usual year-end reports and statements shall
contain disclosures on differences of
balances as a result of the devolution.
9. Subsidiary ledgers of the various devolved funds shall be maintained by LGUs for
monitoring and control purposes.
1. The heads of the devolved NGAs shall on or before the cut-off date:
e. Direct the turnover of all unused Official Receipts (ORs), and other
accountable forms as of the cut-off date to the property officers of the
recipient LGUs under proper invoice and receipt (Gen. Form No. 30A),
copy furnished the property officers of the devolved NGAs.
h. Require the Accountant to secure from the depository banks and or the
BTR bank/treasury statements as of the cut-off date and submit the
necessary reconciliation statements pursuant to COA Circular No. 92-
125A dated March 4, 1992.
a. Bill all realized but uncollected income and take these up in the books of
accounts.
g. Prepare the Final Trial Balances after effecting closing and adjusting
entries as of the cut-off date. For NGAs maintaining multiple funds, a
consolidated Final Trial Balance shall be prepared in accordance with
the following guidelines.
V. Illustrative Accounting Entries Applicable to the Different NGAs concerned are shown in
the annexes listed below.
A. Closing of Accounts as of the cut-off date/date of transfer.
Cases not covered in this circular shall be referred to the Commission on Audit
through the Auditor concerned and the Local Government Audit Office, and shall be
resolved on a case to case basis.
VIII. EFFECTIVITY
This circular shall take effect immediately. The devolution to the local
government units from the national government of the functions enumerated in the Local
Government Code of 1991, and the transfer of the corresponding assets, liabilities,
personnel, equipment and records shall be completed in accordance with the provisions
of Executive Order 503.