Acctnt Advice

8/4/2019 Acctnt Advice

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COA CIRCULAR 2009-008November 9, 2009

Reinstitution of the use of the

Accountants Advice for

Barangay Check Disbursements


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COA CIRCULAR 96-07

dated MAY 15, 1996

Prescribing the use of the Accountant's

Advice of Local Check Disbursements.

(This was suspended in November

20010)


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TO:

The City/Municipal Mayors and Punong Barangays;

City/Municipal Accountants; Members of Barangay

Sanggunian; BarangayTreasurers;

COA Directors/Asst. Directors;

Supervising Auditors; Provincial/City/Municipal

Auditors; Heads of Depository Banks;

and All Others Concerned


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1. RATIONALE:

The new government accounting system (NGAS) for

barangays prescribes the processing of all thebarangay financial transactions at their level. It has

been noted however, that barangay checks were

issued without the covering disbursement

vouchers(DVs) and supporting documents (SDs)

thereby violating the fundamental principle on fiscal

administration that all claims against government

funds shall be supported with complete

documentation.

Also, as a consequence, preparation of the

barangay financial statements is delayed due to the

absence of supporting documents


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To ensure that barangays

comply with the abovefundamental principle, and thecity/municipal accountants can

prepare the barangay financialstatements on time, theissuance of the Accountants

Advice (AA) for barangay checkdisbursements is herebyrestored/reinstituted.


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In consonance with the rule

making function of theCommission on Audit (Art IX-DSec. 2 (2) of the 1987 Phil.

Constitution) and as providedin Sec. 334 (c) of the LocalGovernment Code, this circular

is hereby prescribed.


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Sec. 334 (c) LGC :

The financial records of the Barangayshall be kept in the Office of the City/Municipal Accountant in simplified manner

as prescribed by the COA. Representativesof the COA shall audit such accountsannually or as often as may be necessaryand make a report of the audit to the

Sanggunian Panglunsod or SanggunianBayan x x x


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2. General Guidelines :

2.1 The government (barangay)depository banks shall honor/

encash checks issued by thebarangays only if the correspondingAA is issued. Checks encashedwithout the AA or with falsified AA

shall be the responsibility of theauthorized government depositorybank (AGDB).


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2.2 The barangay officials shallcontinue to initiate, process andapprove their financial

transactions. This means that:

(a) the DV shall originate

from the concernedbarangay officials;


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(b) the DVs and its SDs shall be

processed and certified by thebarangay designated personnelas to availability of funds and

completeness and propriety ofSDs and

(c) the punong barangay (PB)shall be responsible on thelegality, propriety and validity of

the transaction.


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2.3 The city/municipal (C/M)

accountants shall issue the AA tocertify that :

(a) theDV

s are duly certified bythe BT and approved by the PBand,

(b) the supporting documents(SDs) are complete.


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3. Procedures:

3.1.The barangay treasurer (BT)

shall submit to the C/Maccountant the approved DVand signed check together

with the SDs for the preparationof the AA.


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3.2. The C/M accountant shall

review the DVs and its SDs andshall issue the AA if therequirements under 2.3 (a) and (b)

above are satisfied.

If the requirement is not complete,

the C/M accountant shall returnthe DV to the barangay stating thedeficiencies/additional

requirement.


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3.3 The C/M accountant shall issue

the AA or return the DV to thebarangay within two working daysfrom receipt of the DVs.

3.4 The AA shall be numberedsequentially by year and by

barangay, e.g. the first AA forbarangay A shall be AA-No. 2009-A-001.


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3.5 The AA shall be prepared inthree (3) copies, to be distributed asfollows:

Original copy to the depositorybank to be released directly by

the C/M accountant


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Duplicate copy to the BT togetherwith the original copy of theapproved DV

Triplicate copy - to be retained bythe C/M accountant and attached

to the duplicate copy of the DV andSDs


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3.6 Within ten days after theend of the month, the BT shall

prepare a transmittal list andsubmit to the C/M accountantthe original copy of the DVs

signed by the payee.


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3.7 The sample formats of theAA, Return Memorandum

and Transmittal List areshown in Annexes A-1, A-2and A-3.


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4. Penalty Clause:

Any unjustified failure of theofficials and employeesconcerned to comply with therequirements herein imposedshall be subject to theadministrative disciplinaryaction provided in Section 127of Presidential Decree No.1445.


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PD 1445 Section 127. Administrativedisciplinary action.

Subject to rules and regulations as may beapproved by the President (Prime Minister),any unjustified failure by the public officer

concerned to comply with any requirementimposed in this Code shall constitute neglect ofduty and shall be a ground for administrativedisciplinary action against the said public

officer who, upon being found guilty thereofafter hearing, shall be meted out such penaltyas is commensurate with the degree of his guiltin accordance with the Civil Service Law.


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Sec. 127 (Contd)

Repeated unjustified failure to complywith the requirements imposed in this

Code shall be conclusive proof that the

public officer concerned is notoriouslyundesirable.


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5. Saving ClauseAll issuances inconsistent

herewith are hereby repealedor amended accordingly.

6. EffectivityThis Circular shall take effect

fifteen (15) days after its

publication in the Official Gazetteor in a newspaper of generalcirculation.


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PUBLICATION:

PHILIPPINE STAR

NOVEMBER 16, 2009

TO TAKE EFFECT DECEMBER 1, 2009


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BARANGAY TREASURER PUNONG BARANGAY CITY/MUN. ACCOUNTANT BANK

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