REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines
|| July 30, 2003
Heads of Local Government Units, Accountable Officers, and all others
AUDIT AND LIQUIDATION
OF INTELLIGENCE AND CONFIDENTIAL FUNDS OF LOCAL GOVERNMENT UNITS.
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
All cash advances chargeable against the intelligence
and/or confidential funds of all local government units shall be
liquidated 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 local government unit, Attention
the Chief Accountant, copy furnished the provincial or city auditor of
the local government unit.
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 local government unit and the auditor
concerned for reference.
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 local government
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 Governor/Mayor of local
government unit concerned for the utilization of the Intelligence and
Any disbursement from the intelligence/confidential
funds shall be accounted for solely on the certification of the Head of
local government unit responsible for the intelligence, confidential,
national security mission project or undertaking. (Sample certification
in Annex A).
Copy of approved budget by Sangguniang
Copy of the minutes of the meeting
evidencing the 2/3 votes of the council for the release of the
PNP certification re: peace and order
situation in the area for the use of Confidential and
Allocations for intelligence and
confidential funds approved by the Secretary of the Department
of Interior and Local Government
Approval from the President of the Philippines
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
Specimen signatures of officials authorized
to sign cash advances and liquidation reports (formerly
liquidation vouchers), particularly:
c.1 Special Disbursing Officer
c.3 Chief Accountant
c.4 Budget Officer
When the Head of Agency is the Special Disbursing
Officer, the Head of local government unit must make a signed statement
to that effect.
It shall be the responsibility of the Governor/Mayor 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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