COMMISSION ON AUDIT CIRCULAR NO.

96-004
April 19, 1996

TO : 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.

SUBJECT : 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. 248-A 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 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 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 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 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 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 pre-departure expenses to be incurred as
basis for determining the amount of cash advance. The
commutable pre-departure 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 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 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 are appended to this Circular as Annexes 1 and 2. 

 (Sgd.) CELSO D. GAÑGAN

       Chairman

 
(Sgd.) ROGELIO B. ESPIRITU (Sgd.) SOFRONIO B. URSAL
Commissioner Commissioner