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COMMISSION ON AUDIT CIRCULAR NO.

80-92-A September 17, 1980 TO : All Heads of Ministries, Bureaus and Offices of National Government; Managing Heads of Government Owned and/or Controlled Corporations, Boards and Commission; Chief Accountants/Corporate Treasurers; Provincial Governors, City/Municipal Mayors; Local Treasurers; COA Managers/Regional Directors, Auditors and All Others Concerned. Amendment of COA Circular 78-92, to delete from the Standard Government Chart of Accounts (SGCA) the account 3-23-000, pursuant to the provisions of P.D. No. 1421.

SUBJECT :

To conform with the amended definition of current operating expenditures (COE), as embodied in P.D. No. 1421, the Standard Government Chart of Accounts is hereby amended to delete from the account codes 3-23-000, intended for Furniture, Equipment and Books, under the maintenance and operating expenditures of agencies. Henceforth, all furniture, equipment and books the cost of which amount to P300 or more, whose serviceable life is more than one year and which add to the assets of the government, shall be charged to account 4-33-000. Furniture and Equipment Outlay. Thus, the definition for the account 4-33-000, Furniture and Equipment Outlay, is amended to read as follows: "This account includes furniture, equipment and books the cost of which amount to P300 or more, whose serviceable life is more than one year and which add to the assets of the government". As a result of such amendment, properties having value of less than P300 and which are normally consumed within a year shall be classified as supplies and materials. However, for properties having value of less than P300 but with a life expectancy of more than one year, or the benefits from which, last for more than one year, but which will have decreased substantially in their value, i.e., these will have nominal value after being used for only one year, shall likewise be treated as semi-expendable supplies and materials which will be accounted for as follows: To record receipt of semi-expendable supplies and materials upon payment: Dr. 8-72-600 8-86-600 To record disposition: 8-86-600 8-72-600 xx xx xx xx Cr.

furni. Debit this account for: Semi-expendable supplies. bottles. Credit this account for: Semi-expendable supplies. Debit this account for: Loss of semi-expendable items. containers. charged to appropriations. the definitions and instructions of when to debit and credit the accounts 8-72-600 and 8-86-600 are likewise amended and shall read as follows: "8-72-600 Inventories . etc. Containers charged to appropriations. sale and other disposition of semi-expendable items. Empty containers left after contents were used. It includes containers. Containers and Property This account is used as a contra-account of 8-72-600. 8-86-600 Miscellaneous Liabilities and Deferred Credits . equipment and books with a value of not more than P300 each and/or with a life expectancy of more than one year. Containers charged to appropriations. containers and property which had already been charged to appropriations. containers and property purchased for use in the course of government operations and charged to appropriation or allotments.expendable supplies. sale and other disposition of the above items. equipment and books with a value of not more than P300 each and/or with a life expectancy of more than one year. . Credit this account for: Use.Semi-Expendable Supplies. Empty containers left after contents were used".ture. furniture. containers. Use. which have market value but for which no deposits were paid when the contents were purchased. This has a contra account 8-86-600.These items should be duly covered by Memorandum Receipts when issued for use by the property officer.. charged to appropriations. In view of these. acquired after the contents were used such as drums.Semi-Expendable Supplies Containers and Property This account is used to record the cost of semi. representing semiexpendable supplies.

This circular shall take effect January 1. nails.In the same manner. Acting Chairman . ink pads. soaps. brushes. shall also be amended to read as follows: "This account includes the cost of all expendable commodities acquired or ordered for immediate use in connection with government operation. paint. brooms. (3) having life expectancy of more than one year but which shall have decreased substantially in value after being put into use in only one year. journals. Examples are: printed forms. cartridge. construction materials. 1981. (SGD. JR. activity or office". semi-expendable property having value of less than P300 and other expendable property consumed in a function. or (2) converted in the process of manufacture or construction.. pencils. powder. but is not restricted to items (1) normally consumed within one year after being put into use. cards. TANTUICO. It also includes.) FRANCISCO S. the definition of 3-07-000. ledgers. medical supplies.