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COMMISSION ON AUDIT CIRCULAR NO. 89-300

March 21, 1989



TO                         : All Secretaries of Departments, Heads of Constitutional Commissions, Chief Justice of the Supreme Court, Presiding Justice of other Courts, the Ombudsman and Heads of other constitutional offices, Chiefs of Bureaus, Agencies and Offices of the National Government, Chief Accountants, COA Directors, Auditors and all other Concerned.


SUBJECT        : Audit Guidelines on Disbursement for Extraordinary and Miscellaneous Expenses in National Government Agencies pursuant to Section 19 and other related sections of RA 6688 (General Appropriations Act for 1989).


I. RATIONALE: -

        This Commission has noted of late the increasing number of queries and requests for clarification as to the real import and true intent of the general provision embodied under Section 19 and other related sections of RA 6688 (General Appropriation Act for 1989) authorizing the use by certain national government officials of appropriations authorized for their agencies for extraordinary and miscellaneous expenses. It appears that there is no uniformity and consistency in the implementation by the agencies concerned of the applicable law on the matter resulting in abuse in the utilization of available funds. Moreover, the existing reimbursement procedure on the use of the funds is viewed as cumbersome and discriminatory in that payments for the covered expenses have to be advanced first and reimbursed only after quite some time and only upon presentation of receipts, thereby allowing some officials to benefit more than others.


        In keeping with the national policy towards streamlining systems and procedures in government without losing the need for adequate internal control an in pursuance of this Commission's constitutional mandate to promulgate accounting and auditing rules and regulations, the issuance of this Circular is deemed imperative.