All Heads of Local Government Units; Heads of Accounting Units; Heads of Budget Units; Treasurers; 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 LOCAL GOVERNMENT UNITS 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 Office/Unit, the Budget Unit and the Accounting Unit as well as the Treasurer in Local Government Units.

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

POLICIES

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

The Head of the Requesting Unit shall prepare the Obligation Request (ObR) - Annex A and the Disbursement Voucher (DV) - Annex B and certify on the necessity and legality of charges to appropriation and allotment under his direct supervision. He shall also certify to the validity, propriety and legality of supporting documents.

The Head of the Budget Unit shall certify the existence of available appropriation, take charge of budgetary activities as provided under Section 344 and Section 475, respectively, of R.A. 7160, the Local Government Code, and shall maintain the Registries of Appropriations, Allotments and Obligations as prescribed under the Manual on the New Government Accounting System for Local Government Units.

The Head of the Accounting Unit shall certify the obligation of allotment and completeness of supporting documents in the DV.

The Treasurer shall certify the availability of funds in the DV as provided in the Local Government Code.

The Treasurer shall prepare the Daily Cash Position Report - Annex C to be submitted to the Local Chief Executive.

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All prior COA circulars/memoranda and other issuances inconsistent herewith are hereby amended or repealed accordingly.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