Professional Documents
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Commission On Audit Circular No. 92-382 July 3, 1992
Commission On Audit Circular No. 92-382 July 3, 1992
The General Manager, Metro Manila Authority; Provincial Governors, City and
Municipal Mayors; the Deputy General Manager for Finance, Metro Manila
Authority; Local Treasurers, Accountants, and Budget Officers; COA Directors;
Heads of Provincial, City, Municipal and Circuit Municipal Audit Units; and All
Others Concerned.
I. GENERAL GUIDELINES
Sec. 1. Local Funds. - Provinces, cities and municipalities shall maintain a General
Fund which shall be used to account for such monies and resources as may be received by
and disbursed from the local treasury. The General Fund shall consist of monies and
resources of the local government which are available for the payment of expenditures,
obligations or purposes not specifically declared by law as accruing and chargeable to, or
payable from, any other fund. (Sec. 308, RA 7160)
Sec. 2. Special Funds. - There shall also be maintained in every provincial, city or
municipal treasury the following special funds:
b. Trust Funds which shall consist of private and public monies which have officially
come into the possession of the local government or of a local government
official as trustee, agent or administrator, or which have been received as a
guaranty for the fulfillment of some obligation. A trust fund shall only be used for
the specific purpose for which it was created or for which it came into the
possession of the local government unit. (Sec. 309, Ibid)
Sec. 6. Collection of real property tax. - The collection of the real property taxes shall
be the responsibility of the city or municipal treasurer concerned. (Sec. 247, Ibid)
Sec. 7. Remittance of government monies to the local treasury. - Officers of the local
government unit authorized to receive and collect monies arising from taxes, revenues or
receipts of any kind shall remit the full amount received and collected to the treasury of such
local government unit which shall be credited to the particular account or accounts to which the
monies in question properly belong. (Sec. 307, Ibid)
Sec. 8. Deposit intact of collections. - All collections shall be deposited intact with
authorized depositories. The practice of retaining part of the collections as a cash reserve
for cash disbursements shall be discontinued.
Sec. 11. Accountability and responsibility for local government funds. - Every
officer of the local government unit whose duties permit or require the possession or custody
of local funds shall be properly bonded, and such officer shall be accountable and
responsible for said funds and for the safekeeping thereof in conformity with the provisions of
law. (Sec. 305(f), Ibid)
Sec. 12. Depository accounts in banks.- Provincial, City and municipal treasurers shall
maintain depository accounts in the name of their respective local government units with
banks, preferably government-owned, located in or nearest to their respective areas of
jurisdiction. (Sec. 311, Ibid)
Sec. 13. Obligation accounting system. - The obligation accounting system shall be
implemented in provinces, cities and municipalities.
Sec. 14. Special accounts in the General Fund - Special accounts in the General
Fund shall be maintained through the use of complete subsidiary accounts.
Sec. 18. Check drawn for deposit to appropriate account. - Based on the
pre-audited disbursement voucher, the provincial/city treasurer shall prepare a
check for each fund balance of the municipal deposits. The check shall be drawn
in the name of the municipality for deposit under the appropriate fund.
Sec. 20. Combined savings and current accounts. - Provinces, cities, and
municipalities may open a combined savings and current account (COMBO) for the
General and Special Education Funds in the duly authorized depository bank. The
opening of the bank accounts shall be documented with a depository contract or
other appropriate documentation required by the bank, signed by the local
treasurer concerned in behalf of the local government unit. Deposits to the
COMBO account shall be made only through the savings account and withdrawals
shall be made only by the issuance of checks to be drawn on approved vouchers,
against the current account. At the termination of the COMBO contract, the balance
of the savings account shall be transferred to the current account which shall
henceforth to subject to the regulations on current accounts.
Sec. 21. Time deposit accounts. - Provinces, cities and municipalities may
deposit with duly authorized depository banks idle funds in the General Fund under
time deposit accounts, upon prior authority of the sanggunian and the approval of
the chief executive.
Sec. 22. Definition of idle funds. - Idle funds in excess of normal operating
requirements shall generally mean the level of funds which an entity can freely
invest in government securities and/or fixed term deposits after considering
provisions for coverage of regular and recurring operating expenses like salaries
and wages, repairs and maintenance, inventories and supplies, debt servicing,
etc., within the context of the entity's cash operating cycle. Unremitted national
collections and funds set aside for payment of obligations to government
corporations/cooperatives shall not form part of the idle funds of local government
units. (DOF Department Circular No. 6-90, Dec. 6, 1990)
C. Collection
Sec. 26. Daily turn over of collections. - At the close of the business day,
collectors/tellers shall turn over all of their collections intact to the treasurer/cashier.
They shall accom plish the Daily Statement of Collections and Accountable Forms
(DSCAF), Prov. Form No. 95 (A), (Annex A), in four copies. The original and two
copies, together with the duplicates of official receipts issued and the cash collected,
shall be submitted to the treasurer/cashier. The fourth copy of the DSCAF shall be
retained by the collector/teller concerned. Barangay Treasurers deputized to
collect taxes imposed by provinces, cities and municipalities shall follow the
same procedures in submitting their collections to the treasurer/cashier concerned.
In the case of collectors assigned to the field, where travel time from their
places of assignment to the treasurer's office is more than one day, turn over of
collections shall be made at least once a week, or as soon as the collections
reach P5,000.00.
Sec. 30. Liquidating officer for collections. - The Treasurer may designate
liquidating officers from among the collectors/tellers whenever necessary.
Sec. 33. - Turn over of collections by liquidating officer. - The liquidating officer
shall turn over intact the cash collections to the treasurer/cashier together with the
original and two copies of the RCLO, the original and two copies of the DSCAF, and
the duplicates of the official receipts issued. The treasurer/cashier shall
acknowledge receipt of the cash and all accompanying documents by signing all
copies of the RCLO on the certification and receipt portion of the form. The fourth
copies of the RCLO and the DSCAFs shall be retained by the liquidating officer.
Sec. 34. - Deposit of collections and recording in the cashbook. - The
treasurer/cashier shall deposit all collections and prepare the CTRDCD summarizing
the collections and deposits for recording in his cashbook and submission to the
accountant, accompanied by all supporting documents, as in Sec. 28 and Sec. 29,
including two copies of the RCLO.
D. Disbursements
Sec. 41. Approval of Trust Fund disbursements. - In the case of the Trust
Funds, disbursements shall be approved by the chief executive concerned, and
certified and approved as to validity, propriety, and legality of the claim
involved by the department/office head concerned.
Sec. 43. Officials authorized to draw and sign checks. - Checks shall be
drawn by the local treasurer and countersigned by the local administrator. In case of
temporary absence or incapacity of the aforesaid officials these duties shall devolve
upon their immediate assistance. In the case of municipalities where no
administrator has been appointed, checks shall be countersigned by the municipal
mayor. In the case, however, of expenditures appropriated for the operation of the
sanggunian, checks drawn thereon shall be countersigned by the provincial vice
governor, the city vice mayor, or the municipal vice mayor, as the case may be.
Sec. 44. Report on checks issued.- The treasurer/cashier shall prepare weekly the
Report of Checks Issued, Prov. Form No. 226 (A), (Annex F), in three copies and submit the
original and duplicate of the same to the accountant with the vouchers/payrolls and
supporting documents.
Sec. 47. Special cash advances. - Special cash advances are those granted on the
explicit authority of the local chief executive only to duly designated disbursing officers or
employees for other legally authorized purposes such as:
Sec. 48. Rules on grant, use, and liquidation of cash advances. - In the granting,
utilization, and liquidation of cash advances the following shall be observed:
(e) The cash advance shall be used solely for the specific legal
purpose for which it was granted. Under no circumstance shall it
be used for encashment of checks or for liquidation of a previous
cash advance.
(f) The accountant shall obligate all cash advances granted. Cash
advances for a particular year shall not be used to pay expenses of
other years.
(g) The cash advance for salary payments shall be equal to the net
amount of the payroll for a pay period.
(h) The cash advance for petty operating expenses shall be sufficient
for the recurring expenses of the agency for one month. The
accountable officer may request replenishment of the cash advance
when the disbursements reach at least 75%, or as needed, by
submitting a replenishment voucher with all supporting documents
duly summarized in a report of disbursements.
(i) The cash advance for petty operating expenses shall not be
used for payment of regular expenses, such as rentals,
subscriptions, light and water and the like.
(j) Payments out of the cash advance shall be allowed only for
amounts not exceeding P10,000.00 for each transaction, except
when a higher amount is allowed by law and/or specific authority
by the Commission on Audit. Splitting of transactions to avoid
exceeding the ceiling shall not be allowed.
(m) Within ten days after receipt of the report and supporting
documents form the accountable officer, the accountant shall verify
the report including the completeness of the supporting
documents, record it in the Journal of Disbursements by
Treasurer/Disbursing Officer and submit the report with all the
vouchers/payrolls and supporting documents to the unit auditor.
(n) When a cash advance is no longer needed or has not been used
for a period of two (2) months, it must be returned or deposited
immediately with the collecting officer.
(o) All cash advances shall be fully liquidated at the end of each year.
The accountable officer shall refund any unexpected balance to
the cashier/collecting officer who shall issue the necessary official
receipt.
(p) At the start of the ensuing year, a new cash advance mat be
granted, provided that a list of expenses against the previous
cash advance is submitted. However, when no liquidation of the
previous cash advance is received on or before January 20 of
the accountant shall cause the withholding of the accountable
officer's salary.
Pending the actual transfer of the accounting books and records, the local
accountant may open a new set of appropriate journals and ledgers to record the
transactions made after the cut-off date.
Sec. 50. Rendition of accounts. - The treasurer shall render his accounts as
of the date of transfer, to the unit auditor concerned, in accordance with existing
regulations. The unit auditor shall verify the completeness of the accounts
submitted.
Sec. 51. Transfer of books of accounts and all accounting records.- The
treasurer shall transfer to the accountant all journals and ledgers; copies of trial
balances, statements of operations and balance sheets, with supporting schedules
and statements; copies of transaction documents, inventory reports of supplies and
property, and such other financial statements and reports which form the
accounting records. Under existing regulations, cashbooks of accountable officers
who have ceased to be such, shall also be submitted to the accountant and shall
form part of the accounting records.
F. Merging of Funds
Sec. 53. Maintenance of local and special funds. - The Local Government
Code of 1991 (RA 7160) requires the maintenance by the provinces, cities and
municipalities of the General Fund as a local fund, and the Special Education
Fund and Trust Funds as special funds. The Infrastructure Fund which was
abolished, shall therefore be merged with the General Fund. Development
projects implemented within the Infrastructure Fund shall be incorporated as
special accounts of the General Fund. The NALGU Fund and the Municipal
Development Fund shall be merged with the Trust Funds. The Special Education
Fund shall continue to be maintained. Accounting procedures on the merging of
the funds are shown in Annex J.
Sec. 56. Request for obligation of allotment (ROA). - For all anticipated
expenditures and transfers of the funds concerned, the requesting
department/office shall prepare the Request for Obligation of Allotment (ROA),
Prov. Form No. 227(A), (Annex H), signed by the department or office head as
requesting official.
Sec. 57. Certification of budget officer. - The budget officer shall certify to
the existence of appropriation that has been legally made for the purpose by
signing Certification No. 1 of the ROA.
Sec. 58. Certification of the treasurer.- The treasurer shall certify that funds
are available by signing Certification No. 2 of the ROA.
Sec. 59. Certification of the accountant. - The accountant shall review the
ROA, assign an obligation number thereto, and record the amount of the
obligation in the Journal and Analysis of Obligations (JAO), Prov. Form No.
228(A), (Annex I). The accountant shall then certify as to the obligation of the
allotment by signing the ROA.
Sec. 60. ROA as integral part of the disbursement voucher.- The ROA shall
form an integral part of the covering disbursement voucher/payroll and the
certifications of the local budget officer, treasurer and accountant thereon shall serve
as their certifications on the disbursement as required by law.
Sec. 63. Special accounts in the General Fund.- Local government units
shall maintain special accounts in the General Fund for public utilities and other
economic enterprises; loans, interests, bond issues, and other contributions for
specific purposes; and development projects funded form the share of the local
government unit concerned in the internal revenue allotment and such other special
accounts which may be created by law or ordinance.
Sec. 64. Profits from operations.- Profits or income derived from the operations
of public utilities and other economic enterprises, after deduction of the cost of
improvement, repair and other related expenses of the public utility or economic
enterprises concerned, shall first be applied for the return of the advances or
loans made therefor. Any excess shall form part of the general fund of the local
government unit concerned.
Sec. 69. Repealing Clause. - All COA Circulars, Memoranda and other issuances
inconsistent herewith are hereby revoked or modified accordingly.
IV. EFFECTIVITY