COMMISSION ON AUDIT CIRCULAR NO.

92-89E March 8, 1992

TO : All Heads of Departments, Chiefs of Bureaus and Offices of the National

Government, Heads of Government Owned and/or Controlled Corporations
maintaining Special Accounts in the General Fund, Chief Accountants, COA
Directors, State Auditors, and All Others Concerned.

SUBJECT: Updated Guidelines and Procedures on the Presentation and Submission of

Quarterly and Year-End Trial Balances and Supporting Statements Pursuant to
Section 26 (2), Chapter 4, Title I-B, Book V, Executive Order No. 292, S. 1987,
The Administrative Code of 1987.

1.0 RATIONALE

This circular is issued to restate with modifications COA Circular No. 84-89-C dated
January 25, 1984, as amended, to make it more responsive to the current changes
affecting the preparation and submission by the Commission on Audit (COA) of the
Annual Financial Report on the National Government to the President, the Congress, and
other fiscal authorities concerned, not later than September 30 of each year.

2.0 PURPOSE

This circular aims to require the timely submission to the Accountancy Office, COA
of the following:

a. Quarterly Trial Balance

b. Preliminary and Final Trial Balances and supporting statements

3.0 GENERAL GUIDELINES

3.1 All Accountants of Central and Regional Offices and Operating Units shall submit
quarterly and year-end preliminary and final trial balances in the manner provided
under paragraph 6.0 of this circular.

3.2 The supporting statements and other requirements (Annexes A to C and other
requirements as specified under paragraph 7.0 hereof) shall be attached only to the
preliminary trial balance.

3.3 Quarterly and year-end trial balances shall be certified by the Head of the
Accounting Unit/Accountant as provided for under COA Circular No. 88-192-A,
dated November 2, 1988.

3.4 Advance copies of the quarterly trial balances shall be submitted directly to the
Accountancy Office, COA by the Head of Accounting Unit/Accountant not later than
the 10th day of the month following the quarter and on or before February 14 of the
succeeding year in the case of the year-end Preliminary Trial Balance.

4.0 RESPONSIBILITIES
4.1 CENTRAL OFFICE LEVEL

4.1.1 Departments/Agencies with Centralized Accounting Procedures

Chief accountants shall submit the originals of the quarterly and

year-end preliminary and final trial balances, to the Resident Auditors on
the dates indicated in paragraph 5.0 of this circular, and in accordance
with the distribution list per paragraph 6.3 hereof. The duplicate copy shall
be submitted immediately by the Chief accountant to the Accountancy
Office, COA together with the supporting statements/schedules as
presented in Annexes A to C.

4.1.2 Departments/Agencies with Decentralized Accounting Procedures

Chief Accountants shall submit the originals of the quarterly and

year-end consolidated preliminary trial balances to the Resident Auditors
on the dates indicated in paragraph 5.2 of this circular and in accordance
with the distribution list per paragraph 6.3 hereof. Likewise, the duplicate
copy shall be submitted immediately by the department/agency Chief
Accountant to the Accountancy Office, COA.

The Chief Accountant shall ensure that all financial data pertaining
to transactions of Regional and Provincial offices/Operating Units are
included in the consolidated Preliminary Trial Balance of the Central
Office.

4.1.3 Government Corporations maintaining Special Account in the General

Fund.

Accountants of government corporations maintaining Special

Account in the General Fund shall likewise prepare and submit the trial
balance of the said fund to the Accountancy Office, COA, in the same
manner as prescribed in paragraph 4.1.1 or 4.1.2 hereof as the case may
be. The audited originals of the quarterly and year-end Trial Balances
together with all the attachments shall be submitted to the Accountancy
Office, COA on the same date prescribed in paragraph 4.4.

4.2 REGIONAL OFFICE LEVEL

4.2.1 Regional accountants shall submit to the Regional Office Auditor and
Central Office Accountants the quarterly and year-end consolidated Trial
Balances, as prescribed in paragraph 5.0 of this circular and in
accordance with the distribution list per paragraph 6.2 hereof. The
duplicate copies of the said trial balances together with supporting
documents shall be submitted in advance to the Accountancy Office, COA
by the Regional Accountant.

4.2.2 The Regional Accountant shall ensure that all financial data pertaining to
transactions of Regional and Provincial Offices/Operating Units are
included in the consolidated Preliminary Trial Balance of the Regional
Office.
 4.3 PROVINCIAL OFFICES/OPERATING UNITS

4.3.1 Accountants of Provincial Offices/Operating Units maintaining complete

sets of books of accounts shall submit to the Auditor and Regional
Accountant the quarterly and year-end Trial Balances, on the dates
prescribed in paragraph 5.0 of this circular and in accordance with the
distribution list per paragraph 6.1 hereof. They shall also submit the
duplicate copies of the said trial balances and supporting statements in
advance to the Accountancy Office, COA.

4.3.2 Accountants of Provincial Health Offices shall ensure that all financial data
pertaining to transactions of Operating Units are included in the
consolidated Preliminary Trial Balance of the Provincial Health Office.

4.4 COA OFFICES AND AUDITING UNITS

4.4.1 Resident Auditors of Central, Regional and Provincial Offices/Operating

Units shall, after completion of audit procedures required under COA
Memorandum No. 91-719 dated July 15, 1991, as amended, submit the
original of the audited trial balance and supporting statements/schedules
together with the original of the accomplished and signed questionnaire
and the Auditor's Certification and Summary of Material Findings directly to
the Accountancy Office, COA, not later than the 20th day of the month
following the quarter for the quarterly Trial Balance and not later than
February 24 of the succeeding year for the year-end Preliminary Trial
Balance.

4.4.2 COA Central and Regional Office Directors concerned shall monitor
compliance by heads of auditing units under their respective jurisdiction as
to the prompt submission of the trial balances as well as the required
certifications for submission to the Accountancy Office within the
prescribed time.

5.0 DEADLINES

The required Trial Balances and supporting statements shall be submitted as

follows:

5.1 Quarterly Trial Balance

Operating Units - on or before the 10th day of the month following the quarter

Regional Offices - on or before the 10th day of the month following the quarter

Central Offices - on or before the 10th day of the month following the quarter

5.2 Preliminary and Final Trial Balances and supporting statements:

Operating Units to the Regional Office - on or before January 10 of the following

year
 Regional Offices to the Central Office - on or before January 20 of the following
year

Central Offices - on or before February 14 of the following year

For Central Offices with decentralized accounting procedures, the Trial

Balances submitted shall include transactions of the Regional Offices and
Operating Units.

6.0 DISTRIBUTION LIST

6.1 Provincial Offices (POs), and Operating Units (OUs)

Original - Accountancy Office, COA (Thru Resident Auditor)

Second Copy - Accountancy Office, COA (Advance Copy)
Third Copy - Regional Chief Accountant
Fourth Copy - COA Regional Director
Fifth Copy - NGAFB, DBM
Sixth Copy - Resident Auditor
Seventh Copy - Agency Accounting Office file

6.2 Regional Offices

Original - Accountancy Office, COA (Thru Resident Auditor)

Second Copy - Accountancy Office, COA (Advance Copy)
Third Copy - Department Agency Chief Accountant Central Office
Fourth Copy - COA Regional Director
Fifth Copy - NGAFB, DBM
Sixth Copy - Central Office Resident Auditor
Seventh Copy - Regional Auditor
Eight Copy - Regional Accountant

6.3 Central Offices

Original - Accountancy Office, COA (Thru Resident Auditor)

Second Copy - Accountancy Office, COA (Advance Copy)
Third Copy - NGAFB, DBM
Fourth Copy - Resident Auditor
Fifth Copy - Agency Accounting Office File

7.0 OTHER REQUIREMENTS

7.1 Copies of journal vouchers covering the following items shall also be attached to
the Preliminary Trial Balance to be submitted to the Accountancy Office, COA,
namely:

7.1.1 Closing entries

7.1.2 Transactions affecting the National Clearing Account and surplus
 adjustments
7.1.3 Wiping out of Overdrafts
7.1.4 Reclassification entry re: Continuing Appropriation (0-90-300)
7.1.5 Relief of Accountability

7.2 The analyses of the National Clearing Accounts and copies of pertinent journal
vouchers shall be prepared as provided in COA Circular No. 80-142, as amended.

7.3 The report on the results of expended appropriations (Annex D) for the calendar
year shall be prepared by the Central and Regional Offices, to be attached to the
Preliminary Trial Balance. It shall show the actual physical accomplishments of the
agency by province and city in compliance with Special Provision No. 4, of R.A.
7180, General Appropriations Act of 1992, which is applicable to the Commission on
Audit.

7.4 Resubmission of trial balances returned by the Accountancy Office due to

non-compliance with the requirements of this circular shall be made by the Chief
Accountants within three (3) days from date of receipt. Revisions should be
reflected in the revised preliminary trial balance and never in the Final Trial Balance.

8.0 SUPPORTING STATEMENTS/SCHEDULES

To generate statistical data on the releases and utilization of funds by various

regions, provinces and cities throughout the country, the following modified
statements/schedules are hereby prescribed. The amounts reflected in these
statements/schedules must tally with those appearing in the quarterly and year-end trial
balances.

8.1 STATEMENT OF ALLOTMENTS, EXPENDITURES/OBLIGATIONS INCURRED

AND BALANCES

The Statement of Allotments, Expenditures/Obligations Incurred and Balances

(annex A) shall be prepared by Central, Regional and Provincial Offices/Operating
Units in reporting the allotments received, expenditures/obligations incurred and
balances of allotments of the Agency. The data on allotments are needed to
reconcile appropriations that are recorded in the books of the Unappropriated
Surplus by the Accountancy Office, COA against those recorded by the recipient
departments/agencies in their books of accounts. The Statement of Allotments,
Expenditures/Obligations Incurred and Balances shall be reported by the Regional
Office by province and by city using the format in Annex A-1. The statement
supports the obligations Incurred (0-82-000) in the trial balance.

8.2 BREAKDOWN OF EXPENDITURES/OBLIGATIONS INCURRED

The Breakdown of Expenditures/Obligations Incurred (Annex B) is to be

prepared by the Central Offices as well as by the Regional/Provincial Offices and
Operating Units. With the need of generating expenditure data by sectoral
classification as required by the Development Board Coordinating Committee
(DBCC), this schedule shall be prepared by object classification (01, 02, 03, ...).
For further analysis, a regional breakdown of obligations incurred is also required
(Annex B1).
8.3 BREAKDOWN OF INCOME

The Breakdown of income (Annex C) is to be prepared by the Central,

Regional, Provincial Offices and Operating Units. The schedule conforms with
the uniform income classification prepared by the Inter-Agency Committee on
Financial Statistics (IACFS) with the hope of facilitating the generation of reconciled
Public Finance data and for purposes of international comparability. In this
schedule, income accounts as appearing in the revised Standard Government
Chart of Accounts (SGCA) have been indicated corresponding to the IACFS
income classification. The regional breakdown of income is also required to be
prepared.

9.0 OTHER RESPONSIBILITIES

9.1 Technical Supervision and Competence

9.1.1 Department/Agency Chief Accountants may, in coordination with State

Accounting and Audit Development Office (SAADO) and the Accountancy
Office, both of the COA, conduct workshop sessions to facilitate prompt
submission of reports, and

9.1.2 The Accountancy Office, in the exercise of its technical supervision over
accounting functions shall, in coordination with the Resident Auditors, call on
Chief Accountants/Internal Auditors of government agencies, and help
thresh out technical accounting problems, deficiencies and discrepancies
affecting the speedy completion of the annual financial report.

10.0 PENALTY CLAUSE

Failure of the officials/employees concerned to comply with the requirements of this

circular shall subject them to penalty imposed under Section 26 (3), Chapter 4, and
Section 55, Chapter 10 both in Title I-B, Book V of Executive Order No. 292, S. 1987,
the Administrative Code of the Philippines.

11.0 REPEALING CLAUSE

Provisions of existing rules and regulations inconsistent herewith are hereby

amended or repealed accordingly.
12.0 EFFECTIVITY

This circular shall take effect immediately.

(SGD.) EUFEMIO C. DOMINGO, Chairman

(SGD.) ROGELIO B. ESPIRITU, Commissioner

Attachments:
Annex A - STATEMENT OF ALLOTMENTS, EXPENDITURES/ OBLIGATIONS
INCURRED AND BALANCES
Annex A-1 - CONSOLIDATED STATEMENT OF CUMULATIVE ALLOTMENTS,
OBLIGATIONS INCURRED AND BALANCES
Annex B - BREAKDOWN OF EXPENDITURES/OBLIGATIONS INCURRED
Annex B-1 - CONSOLIDATED STATEMENT OF CUMULATIVE OBLIGATIONS
INCURRED, OBLIGATIONS LIQUIDATED/ DISBURSEMENTS AND
UNLIQUIDATED OBLIGATIONS
Annex C - BREAKDOWN OF INCOME
Annex D - REPORT ON THE RESULT OF EXPENDED APPROPRIATIONS