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All Heads of Ministries, State Universities and Colleges, Schools and Hospitals,
Chiefs of Bureaus, Offices, and Agencies of National Government, including All
Regional Directors; Chief Accountants/Heads of Accounting Unit; COA Managers
and Regional Directors; COA Unit Auditors and all Others Concerned.
SUBJECT :
1.0
PURPOSE
This Circular which shall apply to all contracts involving the expenditure of public
funds by National Government Agencies is issued to:
2.0
1.1
1.2
Prescribe the form of the Certificate as to Availability of Funds (CAF) for the
different contract to be entered into by the national government.
1.3
DEFINITION OF TERMS
As used in this Circular, the following terms shall be understood in the sense
indicated hereunder:
2.1
taking up all obligations incurred in the books of accounts but is not an integral
part of the contract.
3.0
2.2
2.3
2.4
2.5
2.6
2.7
One-Year Contract for Capital Projects covers a capital project prosecuted for a
period of one year.
One year duration would not necessarily mean
commencement on the first day to end on the last day of a current year. The
contract may start at anytime of one current year and may end in the ensuing
year. It is funded thru an Advice of Allotment issued for the current year by the
Office of Budget and Management.
2.8
2.9
Other Contracts refer to contracts that are neither multi-year nor one-year.
These include purchase orders, letter contracts, work orders and job orders.
Coverage
Exceptions
The following contracts entered into by heads of agencies need not be
supported by the CAF but shall be obligated through the ROA:
4.0
a.
b.
GENERAL GUIDELINES
4.1
The accounting official shall record immediately in the books of accounts all
Advices of Allotments upon receipt thereof from the OBM in accordance with
existing rules and regulations.
4.2
4.3
a.
b.
the allotment necessary to cover the proposed contract for the current
fiscal year has been released and is available for expenditure on
account thereof, subject to verification by the Auditor concerned (Sec.
86, PD 1445):
c.
The sum so certified shall not thereafter be made available for expenditure for
any other purpose until the obligation of the government agency concerned
under the contract is fully extinguished. (Sec. 86, PD 1445). In cases where the
sum so certified exceeds the actual cost of completed contract, the excess shall
be reverted to the Unappropriated Surplus.
5.0
4.4
In addition to accomplishing the CAF, the accounting official shall also sign the
contract as witness. Contracts not so witnessed or not supported by a CAF shall
be considered null and void. (LOI 968 and Sec. 87, PD 1445).
4.5
b.
Total amount of the contract for a one year contract for Capital Projects
and Other Contracts (item 2.7 and 2.9)
c.
The amount needed quarterly for a one year contract for supply of
commodities/services to be used/rendered (item 2.8)
GENERAL PROCEDURES
5.1
Section A of the ROA shall be accomplished on the basis of the Notice of Award
or its equivalent as approved by the Agency Head or his duly authorized
representative. The ROA, together with the Request for the Issuance of CAF,
shall be forwarded to the Accounting Unit.
5.2
The accounting official shall accomplish Section B of the ROA to obligate the
amount of the contract pertaining to any of the amounts specified in 4.5 hereof
and shall prepare the CAF. Thereafter, the CAF shall be forwarded to the COA
Auditor for verification.
5.3
The COA Auditor shall verify the CAF against his copy of the Advice of Allotment
and the corresponding appropriation act and the ROA. The CAF shall then be
returned to the accounting official.
5.4
The proposed contract shall be forwarded to the accounting official who shall
sign as on instrumental witness thereto. He shall then attach the CAF to the
proposed contract as an integral part hereof. Thereafter, the proposed contract,
together with the CAF, shall be forwarded to the Agency Head or his duly
authorized representative for approval, if the same is within his approving
authority. Otherwise, the contract shall be forwarded to higher or other
authorities if required under existing law and regulations.
5.5
Within five (5) days after the execution of the contract, copies of the approved
contract, together with all the supporting documents, shall be furnished the Unit
Auditor pursuant to COA Circular No. 76-34, as amended.
5.6
COA Auditor
Contractor/Supplier for his file
Accounting Official (to serve as a basis for controlling the
balances of the fund as indicated in Section C of the CAF)
7.0
SPECIFIC PROCEDURES
6.1
6.2
6.3
For other contracts (item 2.9), the certificate as to availability of funds may just be
stamped on the face of the contract.
6.4
REPEALING CLAUSE
All
memoranda/circulars/orders
modified/repealed accordingly.
8.0
inconsistent
herewith
are
EFFECTIVITY
This Circular shall take effect January 1, l982.
hereby