2012-001

Revised Documentary Requirements for Common Government Transactions

As prescribed under COA Circular No. 2012-001 dated June 14, 2012

COMMISSION ON AUDIT Commonwealth Avenue, Quezon City, Philippines

Revised Documentary Requirements for Common Government Transactions

Prepared by:

Committee for the Revision of Auditing Requirements

for Typical Government Disbursements

DOCUMENTARY REQUIREMENTS FOR COMMON GOVERNMENT TRANSACTIONS

TABLE OF CONTENTS

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Fundamental Principles governing the financial transactions and operations of 1 any government agency as provided under Section 4 of PD No. 1445

General Requirements for All Types of Disbursement 1

Specific Requirements for Each Type of Disbursement 1

1.0 Cash Advances 1

1.1 Granting of Cash Advances 1 1.1.1 Payroll Fund for Salaries, Wages, Allowances, Honoraria 2

and Other Similar Expenses 1.1.2 Petty Cash Fund 2 1.1.3 Field / Activity Current Operating Expenses 2 1.1.4 Traveling Allowances 3

1.1.4.1 Local Travel 3 1.1.4.2 Foreign Travel 3

1.2 Liquidation of Cash Advances 5 1.2.1 Payroll Fund for Salaries, Wages, Allowances, Honoraria 5

and Other Similar Expenses 1.2.2 Petty Cash Fund (PCF) 5 1.2.3 Field/Activity Current Operating Expenses 6 1.2.4 Traveling Expenses 6

1.2.4.1 Local Travel 6 1.2.4.2 Foreign Travel 6

2.0 Fund Transfers to Non-Government Organizations / People’s 7

Organizations (NGOs/POs) 2.1 Release of Funds 7 2.2 Implementation and Liquidation of Funds Released 9 2.3 Staggered Release of Funds to NGO/PO 10

3.0 Fund Transfers 10

3.1 Transfer of Funds to Implementing Agencies 10 3.1.1 Transfer 10 3.1.2 Implementation and Liquidation by Implementing Agency 11 3.1.3 Liquidation by Source Agency 11

3.2 From Trust Fund to the General Fund for Unspent Balance/Excess Amount 11

4.0 Salary 12

4.1 Individual Claims 12 4.1.1 First Salary 12 4.1.2 Salary (if deleted from the payroll) 13 4.1.3 Salary of Casual/Contractual Personnel 13 4.1.4 Salary Differentials due to Promotion and/or Step 14

Increment 4.1.5 Last Salary 14

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4.1.6 Salary due to heirs of deceased employee 14 4.1.7 Maternity Leave 15

4.2 General Claims through the Automated Teller Machine (All Employees) 15

5.0 Allowances, Honoraria and Other Forms of Compensation 16 5.1 Personnel Economic Relief Allowance (PERA) 16 5.2 Representation and Transportation Allowance (RATA) 16 5.3 Clothing/Uniform Allowance 17 5.4 Subsistence, Laundry and Quarters Allowances 18

- Subsistence and Laundry Allowance - Quarters Allowance

5.5 Productivity Incentive Allowance (PIB) 18 5.6 Special Counsel Allowance 19 5.7 Honoraria 20

5.7.1 Government Personnel involved in Government 20 Procurement

5.7.2 Teaching Personnel (DepEd, TESDA, SUCs and other 21 educational institutions)

5.7.3 Governing Boards of Collegial Bodies 21 5.7.4 Lecturer/Coordinator 21 5.7.5 Special Projects 22 5.7.6 Science and Technological Activities 22

5.8 Hazard Duty Pay 22 5.9 Longevity Pay 23 5.10 Overtime Pay 24 5.11 Year-End Bonus (YEB) and Cash Gift (CG) 24 5.12 Retirement Benefits 24 5.13 Terminal Leave Benefits 26 5.14 Monetization 27 5.15 Loyalty Cash Award/Incentive 28 5.16 Collective Negotiation Agreement (CNA) Incentive 28

6.0 Other Expenditures 29

6.1 Utility Expenses 29 6.2 Telephone/Communication Services 29

7.0 Extraordinary and Miscellaneous Expenses 30

8.0 Prisoner’s Subsistence Allowance 31

9.0 Procurement 31

9.1 Procurement through Public Bidding 32 9.1.1 Infrastructure 34

9.1.1.1 Advance Payment 34 9.1.1.2 Variation Order / Change Order / Extra Work 35

Order 9.1.1.3 Progress Payment 36 9.1.1.4 Final Payment 36 9.1.1.5 Release of Retention Money 37

9.1.2 Consulting Services 37 9.1.3 Goods 38

9.1.3.1 Supplies, Materials, Equipment and Motor 39 Vehicles

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9.1.3.2 General Support Services (janitorial, security, 40

maintenance, garbage collection and disposal and similar services)

9.1.3.3 Rental Contracts 42 9.1.3.4 Repair and Maintenance of Aircraft, Equipment 43

and Motor Vehicles 9.1.3.5 Advertising Expenses 43

9.2 Procurement through Alternative Modes 43 9.2.1 Limited Source Bidding 44 9.2.2 Direct Contracting 45 9.2.3 Repeat Order 46 9.2.4 Shopping 47 9.2.5 Negotiated Procurement 47

9.3 For procurement through ADA or direct payment 48

10.0 Cultural and Athletic Activities 49

11.0 Human Resource Development and Training Program 49

12.0 Financial Expenses 49

13.0 Road Right-of-Way (ROW) / Real Property 50 13.1 Land 50 13.2 Structure/House 51 13.3 Improvements (trees, plants, growing fruits, etc.) 52