Professional Documents
Culture Documents
96-011
October 2, 1996
SUBJECT : Modification of Provincial Circular No.19 dated June 15, 1970 re: Bank
Reconciliation Statements for Depository Accounts.
1.0 PURPOSE
This Circular is issued to modify Provincial Circular No. 19 dated June 15, 1970
and to redefine the duties and responsibilities of the Provincial/City/Municipal
Accountants and Treasurers, and the Local Field Auditors concerned, specifically on the
preparation of bank reconciliation statements (BRS).
2.0 RATIONALE
Pursuant to Section 474 of the Local Government Code of 1991 (RA7160), the
local government units are mandated to appoint an accountant to take charge of the
accounting and internal audit services of the local government unit concerned. As chief
of the accounting department, he shall, among others, prepare and submit financial
statements to the governor or mayor, as the case may be, and to the sangguniang
concerned.
The Commission has noted of late, however, that despite the clear import of the
law, financial statements such as the bank reconciliation statements are not being
prepared and/or submitted to the local auditing unit for review and verification. The
problem lies may be on who shall prepare the required reports because under the
previous organizational set-up of the local government units, the local treasurer has
been singularly obligated to prepare the said financial statements in accordance with
Provincial Circular No. 19 dated June 15, 1970. Since there is now a separation of the
treasury and accounting functions, said provincial circular is observed irrelevant to the
present thrusts of the government. Thus, there is a need for putting together in one
handy issuance clear-cut guidelines towards a timely and accurate financial reporting.
6.0 EFFECTIVITY