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No.: 2012-004

Date: NOV 28, 2012

TO                  : All Heads of National Government Departments, Bureaus, and Agencies; Provincial Governors, City/Municipal Mayors; Managing Heads of Government-owned and/or Controlled Corporations; Al1 Treasurers, Finance Officers, Regular and Special Disbursing Officers, and Other Accountable Officials of the aforesaid Government Agencies; COA Directors, Regional Directors, and Heads of Auditing Units; and All Others Concerned.

SUBJECT         : Demand for Immediate Liquidation and Settlement of All Cash Advances Outstanding as of December 31, 2011


Under existing regulations, cash advances must, as a rule, be liquidated within the prescribed periods depending upon the nature and purpose of the cash advance (e.g., for salaries and wages; petty and field operating expenses; local travel and foreign travel). Included among operating expenses are cash advances for the payment of honoraria and similar payments to officials and employees; operating expenditures for special projects and activities like anniversary celebration; and special purpose and time bound activity like cultural and athletic activities. These must be liquidated within twenty (20) days from accomplishment of the purpose.