REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines
|| July 30, 2003
Department Heads, and Heads of Government Owned and Controlled
Corporations, Accountable Officers, and all others concerned.
AND LIQUIDATION OF INTELLIGENCE AND CONFIDENTIAL FUNDS FOR NATIONAL
AND CORPORATE SECTORS.
Pursuant to COA Circular No. 92-385 dated October 1,
1992, and for purposes of expediency in the audit of Intelligence and/or
Confidential Funds, the following general guidelines and documentary
requirements shall be observed:
All cash advances chargeable against the intelligence
and/or confidential funds of all departments, bureaus and offices of the
National government, government-owned or controlled corporations,
including their subsidiaries, and self-governing boards or commissions,
shall be liquidated by the accountable officer concerned within one (1)
month from the date the purpose of the cash advance was accomplished.
For projects continuing beyond one month, a monthly
progress liquidation report shall be submitted. The first progress
report shall be submitted one month after the commencement of the
The liquidation report shall not be coursed
through the Agency Auditor or Regional/Cluster Director, but shall be
submitted in a sealed envelope with a visible label "CONFIDENTIAL
– For COA Chairman Only" directly to the Chairman’s Office, COA
thru any of the following modes:
a) registered mail
c) authorized liaison officers
The address appearing in the envelope shall be as follows:
COMMISSION ON AUDIT
The report should have a covering transmittal letter
itemizing the documents being submitted.
If the liquidation vouchers and supporting papers are
in order, the COA Chairman or authorized representative shall issue a
credit advice addressed to Head of the Agency, Attention the Chief
Accountant, copy furnished the auditor of the government agency/office
Subsequent cash advances shall be granted only after
the issuance of credit advice from the Chairman or the submission of
liquidation vouchers/reports for the previous cash advance to the COA
Chairman. One copy of the transmittal letter, for the purpose, duly
received by the Chairman or his authorized representative, must be
forwarded to the Accountant of the agency and the auditor concerned for
All liquidation vouchers and supporting papers shall
be retained by the COA Chairman for safekeeping in his confidential
file. However, duplicate copies of all these record and documents must
be retained and filed by the accountable officer of the agency
The liquidation vouchers duly signed by the authorized
signatories must be supported by the following documents:
Certified Xerox copy of the paid disbursement
voucher of the cash advance being liquidated.
Certification of the Agency Head concerned for
the utilization of the Intelligence and Confidential Expense.
For National Sector – by the Department
Secretary or Bureau Director
For Corporate Sector – by the
President/ Executive Director/Operating Officer
Any disbursement from the intelligence/confidential
funds shall be accounted for solely on the certification of the Head
of Agency responsible for the intelligence, confidential, national
security mission project or undertaking. (Sample certification in
Additional requirements for specific sector:
Approval of the President of the release of the
Confidential and Intelligence Fund
Covering Special Allotment Release Order (SARO)
Copy of the Allotment and Obligation Slip (ALOBS)
Approval from the President of the Philippines
except for Bangko Sentral ng Pilipinas (BSP), which is especially
authorized under the BSP Charter. Accordingly, specific authority to
appropriate Intelligence and/or Confidential funds is governed by the
Monetary Board, Memo Circular No. 1290 dated August 19, 1985.
Appointment/Designation of a new Disbursing Officer:
Whenever a new Disbursing Officer is appointed or
designated, the following must likewise be submitted.
Certified copy of the designation of the Special
Disbursing Officer (SDO)
Certified copies of the Fidelity Bond of the designated SDO.
Specimen signatures of officials authorized to
sign cash advances and liquidation reports (formerly liquidation
c.1 Special Disbursing Officer
c.2 Head of Agency
c.3 Chief Accountant
c.4 Budget Officer
When the Head of Agency is the Special Disbursing
Officer, the Head of Agency must make a signed statement to that effect.
It shall be the responsibility of the
Department/Office/Agency head, and the Corporate Executive Officer to institute
and maintain sound and effective internal control measures to discourage and
prevent irregular, unnecessary, excessive, extravagant and unconscionable
expenditures as well as promote prudence in the use of government resources by
those involved in the intelligence/confidential operations.
Any and all issuances inconsistent herewith are hereby
amended or repealed accordingly.
This Circular shall take effect immediately.
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