COMMISSION ON AUDIT CIRCULAR NO.

90-322 February 7, 1990 TO : All Heads of Departments, Bureaus, Offices Agencies and Instrumentalities of the National Government, Heads of Local Government Units, Managing Heads of Government O!ned and"or #ontrolled #orporations including their su$sidiaries, #OA Directors, #OA Auditors and all Others #oncerned% Audit Guidelines on Dis$ursements for &epresentation '(penses Incurred in connection !ith Official )ravel A$road *ursuant to )itle II, +ection ,- of '(ecutive Order No% ,./0 +eries of ,/12, as Amended%

SUB !CT:

I &A)IONAL' )he present re3uirements for the processing of claims for the reim$ursement of, or for the li3uidation or accounting of cash advances for, representation e(penses incurred in connection !ith official travel a$road under '(ecutive Order No% ,./ have $een o$served to $e cum$ersome and complicated on the part of the claimants or accounta$le officials, as the case ma4 $e% )he4 are re3uired to produce receipts of similar documents sho!ing that the4 actuall4 incurred such e(penses in the course of entertaining government officials and other dignitaries in foreign countries or other representation e(penses% )hese officials, !ho are sent a$road to represent the *hilippines, are holding positions of respecta$ilit4, honor and trust% )he4 are e(pected and presumed to discharge their duties and functions in accordance !ith the standards set $4 the #onstitution on pu$lic accounta$ilit4, i%e%, the4 5must at all times $e accounta$le to the people, serve them !ith utmost responsi$ilit4, integrit4, lo4alt4 and efficienc4, act !ith patriotism and 6ustice, and lead modest lives5% 7+ec ,, Art% 8I, #onstitution9% )o ena$le *hilippine Government officials to concentrate on the tas: of representing the *hilippines and avoid em$arrassing or undignified situations !hile on official travel a$road, and to simplif4 and facilitate the processing of claims for reim$ursement of representation e(penses or the li3uidation of cash advances for said e(penses, this #ommission, in pursuance of its constitutional mandate to promulgate accounting and auditing rules and regulations, here$4 issues this circular% II D';INI)ION ;or purposes of this #ircular, representation e(penses incurred during foreign travel shall $e confined to items of e(pense enumerated in )itle II, +ection ,- of '(ecutive Order No% ,./, such as entertainment, contri$utions, flo!ers, !reaths, and the li:e, !hich shall $e a$solutel4 necessar4 for achieving the o$6ectives of the travel, and in conformit4 !ith generall4 accepted customs, usages and practices prevailing in the countr4 and localit4 visited% III GUID'LIN'+ ,% .% 'ntitlement to the representation e(penses provided for in the aforecited provision shall $e on strictl4 non commuta$le or reim$ursement $asis% )he usual re3uirements for su$mission of receipts or other documents in support of claims for reim$ursement of representation e(penses or li3uidation of the cash advance therefor is dispensed !ith% In lieu thereof, a certification under oath e(ecuted $4 the official concerned that the e(penses in 3uestion have $een

incurred for an4 of the purposes enumerated in +ection ,-, supra, in accordance !ith prior authorit4 o$tained from the *resident of the *hilippines or his dul4 authori<ed representative shall suffice% =% )he amount of representation e(penses fi(ed in the authorit4 granted $4 the *resident or his dul4 authori<ed representative shall serve as the ceiling for purposes of controlling the dis$ursement of funds of this nature% In the event the *resident or his dul4 authori<ed representative does not fi( said ceiling, agenc4 heads are re3uired to set the ma(imum amount of representation e(penses that ma4 $e incurred $4 their officials authori<ed to incur the same% +aid ceiling shall $e in such amount as ma4 $e necessitated $4 the importance and duration of the necessitated $4 the importance and duration of the conference, convention or special mission for !hich the foreign travel is underta:en% '(cept as herein provided, the manner of granting, utili<ation and li3uidation of the cash advance for representation e(penses on account of foreign travel shall $e governed $4 e(isting auditing and accounting rules and regulations%

>%

I? ';;'#)I?I)@ )his circular ta:es effect immediatel4% "S#D.$ ALB!RTO %. CRU&, C'(()**)'+er "S#D.$ BARTOLOM! C. F!RNAND!&, R., C'(()**)'+er "S#D.$ !UF!MIO C. DOMIN#O, C,a)r(a+