All Heads of National Government Agencies; Heads of Financial Management Services/Comptrollership Departments; Heads of Accounting Units; Heads of Budget Units; COA Assistant Commissioners, Directors, Auditors; and All Others Concerned

RESTATEMENT WITH AMENDMENTS OF COA CIRCULAR NO. 2005-001 ON ACCOUNTING POLICIES RELATED TO THE BUDGET, ACCOUNTING AND DISBURSEMENT FUNCTIONS IN NATIONAL GOVERNMENT AGENCIES UNDER THE NEW GOVERNMENT ACCOUNTING SYSTEM (NGAS)

RATIONALE/OBJECTIVES

Section 2 (2), Article IX-D of the 1987 Philippine Constitution mandates the Commission on Audit to "xxx promulgate accounting and auditing rules and regulations xxx".

In line with NGAS implementation, this circular delineates the responsibilities of the Heads of the Requesting Unit, Budget Unit and the Accounting Unit in national government agencies.

It also prescribes the revised forms to be used in recording obligations incurred, budget utilization and disbursements.

POLICIES

The responsibilities of the Heads of the Requesting Unit, the Budget Unit and the Accounting Unit are hereby set forth as follows:

The Head of the Requesting Unit shall prepare the Obligation Request (ObR) - Annex A1 or Budget Utilization Request (BUR) - Annex A2 and the Disbursement Voucher (DV) - Annex B. He shall certify on the necessity and legality of charges to appropriations/allotment under his direct supervision as well as the validity, propriety and legality of supporting documents.

The Head of the Budget Unit shall certify the availability of allotment and obligations incurred in the ObR or budget and utilization in the BUR

The Head of the Budget Unit shall maintain the Registries of Allotments and Obligations (RAO) prescribed under the Manual on the New Government Accounting System for National Government and/or the Registry of Budget and Utilization (RBU) - Annex C for income which the agency may use as authorized by law.

For contract or purchase order, the Head of the Accounting Unit shall certify the availability of funds based on the ObR or BUR duly certified by the Budget Officer.

The Head of the Accounting Unit shall certify the availability of cash and completeness of supporting documents in the DV.

The Head of the Accounting Unit shall also prepare the Daily Cash Position Report - Annex D to be submitted to the Head of the Agency.

SAVING CLAUSE

Cases not covered in this Circular shall be referred to the Government Accountancy and Financial Management Information System (GAFMIS) Sector, this Commission, for resolution.

REPEALING CLAUSE

All prior COA circulars/memoranda and other issuances inconsistent herewith are hereby amended or repealed accordingly.

EFFECTIVITY

This Circular shall take effect January 31, 2006