Topical Outline
1. COA-DBM Joint Circular No. 2013-1
dated March 15, 2013
Legal Basis
COA-DBM Joint Circular No. 2013-1
dated March 15, 2013
Rationale
The DBM and COA, as oversight agencies on Financial
Management require agencies to submit on a regular
basis, Budget and Financial Accountability reports.
The DBM uses the budget and accountability reports in
monitoring the agencies performance and providing the
President and other fiscal agencies, the necessary
information for policy making.
Purpose
1. To prescribe harmonized formats of the
financial accountability reports (FAR) on
appropriations, allotments, obligations,
disbursement authorities, disbursements and
balances; and
2. To prescribe guidelines on the preparation and
timely submissions of FARs by the agencies to
the DBM and the COA after the end of each
quarter.
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Coverage
The Circular covers all departments, bureaus,
offices and agencies of the national government
and government-owned and/or controlled
corporations maintaining Special Accounts in
the General Fund.
Definition of Terms
1. Appropriation an authorization made by law or other
legislative enactment, directing the payment of goods and
services out of government funds under specified
conditions or for specified purposes.
2. Allotment a specific authority in the form of Agency
Budget Matrix (ABM) or Special Allotment Release Order
(SARO) issued by DBM to identified agencies to incur
obligations not exceeding a given amount during a
specified period for the purpose indicated therein.
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3. Sub-Allotment a specific authority in the form of SubAllotment Release Order (Sub-ARO) issued by the Central Office
(CO)/Regional Office (RO) of a department/office/agency to its
ROs/lower operating units (i.e. field office, district office or
provincial office ) which allow them to incur obligations within a
specified amount during a specified period. The Sub-ARO should
not exceed the allotment releases to the CO.
4. Obligation a commitment by the government agency arising
from an act of a duly authorized official which binds the
government to the immediate or eventual payment of a sum of
money. The agency is authorized to incur obligations only in the
performance of activities which are in pursuit of its functions and
programs authorized in the appropriation acts/laws within the
limit of the allotment released by the DBM.
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Guidelines
A. The head of each operating unit (OU), office or agency shall be
responsible for the timely submission, either physically or
electronically, the following FARs to the DBM and COA (Audit
Team Leaders and the Government Accountancy Sector (GAS)
not later than the 30th day after the end of each quarter:
1. Statement of Appropriations, Allotments, Obligations
Disbursements and Balances (SAAODB)
2. List of Agency Budget Matrix (ABM) or SAROs and
Sub-AROs
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2. COA
SAOB
Detailed Breakdown of Obligations
Detailed Breakdown of Disbursements
Regional Breakdown of Expenses
Statement of Cumulative Allotments, Obligations Incurred
and Unobligated Balances
Detailed Statement of Cumulative Expenditures/Obligations
Incurred, Obligations Liquidated/Disbursements and Unliquidated
Obligations
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Responsibilities
1. The FARs shall be prepared and certified correct by the
following officials:
Budget Officer/Head of Budget Unit for the portion of the
report pertaining to appropriations, allotments, obligations,
unobligated allotments and unreleased appropriations
Chief Accountant/Head of Accounting Unit for the portion
of the report pertaining to appropriations, allotments,
obligations, unobligated allotments and unreleased
appropriationsChief Accountant/Head of Accounting Unit
for the portion of the report pertaining t disbursement and
unpaid obligations
The FARs shall be signed by the Agency Head as the
approving official. He/she shall ensure the timely submission
of the accurate and reliable FARs.
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Penalty Clause
COA and DBM shall regularly monitor agency/OU
compliance with the reporting requirements prescribed
in the Circular.
For failure to submit the FARs, the no report, no
release policy of the DBM shall be enforced.
Administrative sanctions on the automatic suspension
of the payment of salaries of the officials concerned.
Violation for three (3) times without justifiable cause
during the year, shall constitute a ground for the filing
of an administrative/disciplinary action against the
officials for inefficiency and incompetence.
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COA REVISED
CHART OF ACCOUNTS
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Legal Basis
COA Circular No. 2013-002 dated
January 30, 2013
Effective Date: January 01, 2014
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Objectives
To provide new accounts for the adoption of
Objectives
To expand the account code from three (3)
Major Changes
a. Coverage is limited only to all
national government agencies and
GOCCs receiving funds constituted as
SAGF from the National Government
b. Expanded account code structure from
three (3) digits to eight (8) digits
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Account Groups
Codes are assigned to account groups to
facilitate location of accounts in the general
and subsidiary ledgers, to provide systematic
arrangement and classification of accounts
and facilitate preparation of the consolidated
financial reports as follows:
Code
1
2
3
Account Groups
Assets
Liabilities
Equity
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1 03 01 01 0
03
1 01 1
Asset
Asset
Receivables
Receivables
Loans
and
Receivable
Loans and
Receivable
Accounts
Accounts
Accounts Receivable
Accounts
Receivable
Allowance for Impairment General
Ledger Receivable
Accounts
Contra-Account
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03
1 01 1
1 03 01 01 1
Asset
Receivables
Loans and Receivable
Accounts
Accounts Receivable
Allowance for Impairment Accounts Receivable
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Major Changes
c. New accounts were provided for the
implementation of the Philippine
Public Sector Accounting Standards
(PPSAS)
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New Accounts
Example:
1 02 01 010
1 02 02 011
1 03 02 020
1 03 02 021
1 05 01 020
1 05 01 021
1 05 01 022
New Accounts
1 01 04 010
1 01 04 020
1 01 04 030
Cash-Treasury/Agency
Deposit, Regular
Cash - Treasury/Agency
Deposit, Special Account
Cash - Treasury/Agency
Deposit, Trust
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Major Changes
d. Some accounts were deleted since
these accounts are for use by local
government units or governmentowned and/or controlled
corporations, while other accounts
are no longer applicable to
national government agencies.
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Deleted Accounts
Example:
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Major Changes
e. Some accounts were either
expanded or compressed. For instance,
expense accounts for repairs and
maintenance and depreciation of
property, plant and equipment which
were previously presented per asset
account were compressed based on the
major account classification
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Compressed Accounts
Example:
811 Repairs and Maintenance 5 02 13 040 Repairs and
Office Buildings
Maintenance812 Repairs and Maintenance Buildings and Other
School Buildings
Structures
813 Repairs and Maintenance Hospitals and Health
Centers
814 Repairs and Maintenance Market and Slaughterhouses
815 Repairs and Maintenance Other Structures
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Compressed Accounts
Example:
811 Depreciation-Office
Buildings
812 Depreciation-School
Buildings
813 Depreciation-Hospitals
and Health Centers
814 Depreciation-Market
and Slaughterhouses
815 Depreciation-Other
Structures
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Subsidiary Ledgers:
01 - Buildings
02 - School Buildings
03 - Hospitals and Health Centers
04 - Markets
05 - Slaughterhouses
06 - Hostels and Dormitories
99 - Other Structures
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Subsidiary Ledgers:
01 - Buildings
02 - School Buildings
03 - Hospitals and Health Centers
04 - Markets
05 - Slaughterhouses
06 - Hostels and Dormitories
99 - Other Structures
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Expanded Account
Example:
716 Subsistence, Laundry 5 01 02 050 Subsistence
and Quarters
Allowance
Allowance
5 01 02 060 Laundry
Allowance
5 01 02 070 Quarters
Allowance
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Expanded Account
Example:
Cash - National
Treasury,
Modified
Disbursement
System (MDS)
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ORGANIZATION
12 digits
LOCATION
9 digits
MFO/PROGRA
M, ACTIVITY
and PROJECT
9 digits
Financin
g Source
1 digit
Required
Required Optional
Required
Required Required
Optional
OBJECT CODE
10 digits
Uniform across
Government
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DBM
Sub-Object Code
2 digits
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Major
Summary
Account
Account
2 digits
2 digits
GL Account
3 digits
FS Elements:
1
Assets
Liabilities
Equity
Income
Expenses
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Sub-Object Code
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PPSSA Book 1
PPSSA 20 - Principles of Transparency and
Accountability
PPSSA 30 - Code of Ethics
PPSSA 40 - Quality Control for the Commission on
Audit
PPSSA Book II Volume 1
PPSSA 100 - Basic Principles in Government Auditing
PPSSA 200 - General Standards in Government Auditing
and Standards with Ethical Significance
PPSA 300 - Field Standards in Government Auditing
PPSSA 400 - Reporting Standards in Government
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Auditing
PPSSA Book
II Volume 3B Part 1
PPSSA Book
II Volume 3D
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Rationale
As a general rule, cash advances must be liquidated
within the prescribed periods depending on the nature
and purpose of the cash advance:
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Salient Features
Salient Features
Salient Features
Legal Basis
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Definitions
1. Irregular Expenditures
Expenditure incurred without adhering to
established rules, regulations, procedural
guidelines, policies, principles or practices
that have gained recognition in laws
2. Unnecessary Expenditures
Expenditures which could not pass the test of
prudence or the diligence of a good father of a family,
thereby denoting non-responsiveness to the exigencies
of the service
Not supportive of the implementation of the
objectives and mission of the agency relative to the
nature of its operation
Not dictated by the demands of good government, and
those, the utility of which cannot be ascertained at a
specific time
Not essential or that which can be dispensed with
without loss or damage to property
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3. Excessive Expenditures
Signifies unreasonable expense or expense
incurred at an immoderate quantity and
exorbitant price
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4. Extravagant Expenditures
Signifies those incurred without restraint,
judiciousness and economy
Exceeds the bounds of propriety
Immoderate, prodigal, lavish, luxurious,
grossly excessive, and injudicious
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5. Unconscionable Expenditures
Pertains to expenditures which are
unreasonable and immoderate, and
which no man in his right sense would
make, nor a fair and honest man would
accept as reasonable, and those incurred
in violation of ethical and moral
standards
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Outline
Fundamental Principles PD 1445
General Requirements for all Types of
Disbursements
Specific Requirements for Each Type of
Disbursement
Cash Advances
Fund Transfers to NGOs/Pos
Fund Transfers to Implementing
Agencies/From Trust Fund to Gen Fund
for Unspent Balance
Salary
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Compensations
Other Expenditures
Extraordinary and Miscellaneous Expenses
Prisoners Subsistence Allowance
Procurement
Cultural and Athletic Activities
Human Resource Development and Training
Program
Financial Expenses
Road Right-of-Way (ROW)/Real Property
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Fundamental Principles,
Sec. 4, P.D. 1445
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Implementing Agency
Liquidation by Source Agency
From Trust Fund to General Fund for
Unspent/Excess Amount
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