REVISED GUIDELINES

AND
DOCUMENTARY REQUIREMENTS,
LAWS & RULES on GOVERNMENT
EXPENDITURES

COA Circular No. 2012-001

Dated
June 14, 2012
 FUNDAMENTAL PRINCIPLES GOVERNING
FINANCIAL TRANSACTIONS
(Section 4, PD 1445/LGC 1991)
1. No money shall be paid out of any public treasury of
depository except in pursuance of an appropriation law
or other specific statutory authority (Section 305a, LGC
1991);

2. Government funds or property shall be spent or used

solely for public purpose (305b);

3. Trust funds shall be available and may be spent only for

the specific purpose for which the trust was created or
the funds received (305e);
 FUNDAMENTAL PRINCIPLES GOVERNING
FINANCIAL TRANSACTIONS
(Section 4, PD 1445/LGC 1991)
4. Fiscal responsibility shall be shared by all those
exercising authority over the financial affairs,
transactions, and operations of the LGUs
(305l);

5. Disbursements of disposition of government

funds or property shall invariably bear the
approval of the proper officials (Section 344);
 FUNDAMENTAL PRINCIPLES GOVERNING
FINANCIAL TRANSACTIONS
(Section 4, PD 1445/LGC 1991)
6. Claims against government funds shall be
supported with complete documentation;

7. All laws and regulations applicable to financial

transactions shall be faithfully adhere to; and

8. Generally accepted accounting principles and

practices as well as of sound management and
fiscal administration shall be observed.
 GENERAL REQUIREMENTS FOR
ALL TYPES OF DISBURSEMENTS
1. Certificate of Availability of Funds (Sec. 86, PD
1445)

a. Funds have been duly appropriated for the purpose;

and
b. The amount necessary to cover the proposed
contract for the current FY is available for
expenditure on account thereof,

Sec. 474.b.4, LGC- The Accountant shall . . . certify to

the availability of budgetary allotment to which
expenditures and obligations may be properly charged.
 GENERAL REQUIREMENTS FOR
ALL TYPES OF DISBURSEMENTS
2. Existence of lawful and sufficient allotment duly
obligated as certified by authorized officials.

COA Cir. No. 2006-02, 01.31.06 (Based on Sec. 344, LGC)

1. Head of Budget Unit shall certify in the OBR the existence
of available appropriation as provided under Section 344,
LGC, and maintain the RAOs;
2. The Head of the Accounting Unit shall certify in the DV
the obligation of allotment for the purposes (based on the
certification of the Budget Officer as to availability of
appropriations in the OBR;
3. The Treasurer shall certify the availability of funds in the
DV as provided in the LGC.
 GENERAL REQUIREMENTS FOR
ALL TYPES OF DISBURSEMENTS

3. Legality of transaction and conformity

with laws, rules or regulations;

4. Approval of expenditure by Head of

Office or his duly authorized
representative; and

5. Sufficient and relevant documents to

establish validity of the claim.
COMMON GOVERNMENT
TRANSACTIONS
9
 Rules/Regulations on Salaries
LGC prohibits any local authority from giving salary
rates higher than the maximum fixed for the
position of any official or employees.

The budget limitation for PS of 45% in case of 1st

to 3rd class provinces, cities and municipalities, and
55% in case of 4th class or lower, of the total
income from regular sources realized in the next
preceding fiscal year shall be strictly observed.
 (New Documentary Requirements)
Salaries of Casual/Contractual
Personnel
Certification by the LCE that the
employment/hiring is still within the 45% PS
limitation under Section 325(a) of RA 7160

For 1st claim – certification by the LCE/Personnel

Officer that the activities/services cannot be
provided by regular or permanent personnel of the
agency.
 Salary Differentials due to
Promotion/Step Increment
(New Documentary Requirement)

Certification by the LCE that the

promotion/step increment
(payment) still within the 45% PS
limitation under Section 325(a) of
RA 7160
 General Claims thru the ATM
(New Requirements)
Salary Payroll
Payroll Register (hard and soft copy)
Letter to the Bank to credit employees’
account of their salaries or other claims
(ADA)
Validated deposit slips (ADA)
 ALLOWANCES, HONORARIA, AND
OTHER FORMS OF COMPENSATION
General Guidelines: (COA Cir. 2013-001, 01.30.13)

 No official/employee of the government shall be

paid any personnel benefits charged against
public funds unless authorized by law.

 Grant of personnel benefits authorized by law

but not supported by a specific appropriations
shall be deemed unauthorized.
 ALLOWANCES, HONORARIA, AND
OTHER FORMS OF COMPENSATION
PERA
RATA
Clothing/Uniform Allowance
Productivity Incentive Bonus/Allowance
Honoraria
Overtime Pay
Mid year and Year-End Bonus and Cash Gift
Retirement Benefits
Terminal Leave Benefits
Loyalty Cash Award
Collective Negotiation Agreement Incentives
16
 Productivity Incentive Bonus
(New Requirements)
Certification from the Legal Office that the
employee has no administrative charge (for
individual claims)
General Claims
 List of personnel who were suspended either
preventively or as a penalty as a result of an
administrative charge within the year for which
the PIB is paid, regardless of duration (except if
penalty is reprimand)
 Productivity Incentive Bonus
(New Requirements)
General Claims
 List of personnel dismissed within the year
 List of personnel on AWOL
 Letter to the Bank to credit employees’ account
of their PIB claims (if paid thru ATM)
 Validated deposit slip (ADA)
19
 GUIDELINES FOR PAYMENTS OF
HONORARIA – BAC/TWG
(DBM BC Nos. 2004-5A and 2007-3)
Payment shall be limited to successfully
completed projects (awarded to winning
bidder);
 Procurement has been thru public
bidding, limited source bidding and
negotiated procurement for two failed
biddings;
 GUIDELINES FOR PAYMENTS OF
HONORARIA – BAC/TWG

Honoraria per completed project shall not

exceed P3,000 for BAC Chair, P2,500 for
BAC Members, and P2,000 for each TWG
Average amount of honoraria per month
over one year shall not exceed 25% of
basic monthly salary.
 HONORARIA – BAC/TWG
Documentary Requirements
Office Order creating and designating the
BAC and authorizing the members to
collect honoraria

Minutes of BAC Meeting

Notice of Award to the winning bidder of

procurement activity being claimed.
 HONORARIA – BAC/TWG
Documentary Requirements

Certification that procurement involves

competitive bidding

Attendance Sheet listing names of

attendees to the BAC Meeting.
 GUIDELINES HONORARIA – SPECIAL
PROJECTS (DBM BC No. 2007-2, 10.01.07)
• Paid to those designated in special projects on a
part-time basis
• Payment shall depend on the performance
rating to be given by the project management
• No OT or other allowances nor any
compensatory time off be granted to the same
personnel for the period that honoraria is
granted
• Total honoraria for all projects shall not exceed
25% of the annual basic salary
 DOCUMENTARY REQUIREMENTS
HONORARIA – SPECIAL PROJECTS
 Performance Evaluation plan formulated by project
management used as basis for rating the performance of
members
 Office Order designating members of the special project
 Terms of Reference
 Certificate of completion of project deliverables
 Special Project Plan
 Authority to collect honoraria
 Certificate of acceptance by the LCE of the deliverables
per project component
 RETIREMENT PAY
 Additional documentary requirement for claims
of Retirement Benefits under RA No. 1616
pursuant to COA Circular No. 2013-001 dated
January 10, 2013 –

“CERTIFICATE FROM THE OMBUDSMAN

indicating whether or not the retiree has a
pending criminal or administrative case.”
27
 RULES AND REGULATIONS ON THE
GRANT and LIQUIDATION
OF CASH ADVANCES

No cash advance shall be given unless for

a legally authorized specific purpose;

No additional cash advances shall be

allowed to any official or employee unless
the previous cash advance given to him, is
first liquidated and accounted in the books;
 RULES AND REGULATIONS ON THE
GRANT and LIQUIDATION
OF CASH ADVANCES

No cash advances shall be granted for

payments on account of infrastructure
projects or other undertaking on a project
basis.

A cash advance shall be reported as soon

as the purpose for which is was given has
been served;
 RULES AND REGULATIONS ON THE
GRANT and LIQUIDATION
OF CASH ADVANCES

Only permanently appointed officials shall

be designated as disbursing officers.
Elected officials may be granted a cash
advance only for their official traveling
expenses; and

Transfer of cash advances from one AO to

another shall not be allowed.
 DOCUMENTARY REQUIREMENTS
COMMON TO ALL CASH ADVANCES

For initial cash advance – Authority of the AO

issued by the LCE or his duly authorized
representative indicating the maximum
accountability and purpose of CA;

Certification from the Accountant that previous

CAs have been liquidated and accounted for in
the books;
 DOCUMENTARY REQUIREMENTS
COMMON TO ALL CASH ADVANCES

For new AO - Application for bond and/or

Fidelity Bond for the cash accountability of
P5,001 or more (as amended under COA
Circular No. 2013-001 dated January 10,
2013)
 Documentary Requirements
CASH ADVANCES for Traveling Allowances

Local Travel (COA Cir. 96-004)

Office Order/Travel Order approved by LCE

Duly approved Itinerary of Travel
Certification from the Accountant that the
previous cash advance has been liquidated and
accounted for the in the books
 LIQUIDATION OF CASH ADVANCES (FOR
TRAVEL)

Documentary Requirements
 Paper/electronic plane, boat or bus ticket,
boarding pass, terminal fee
 Certificate of appearance/attendance
 Copy of previously approved itinerary of travel
 Revised or supplemental Office order or any
proof for change of schedule
 Revised Itinerary of Travel, if the previous
approved itinerary was not followed
 Liquidation Report
 LIQUIDATION OF CASH ADVANCES (FOR
TRAVEL)

Documentary Requirements
 Certification by the Head of Agency as to the
absolute necessity of the expenses together
with the corresponding bills or receipts, if the
expenses incurred for official travel exceeded
the prescribed rate/day
 Reimbursement Expense Receipt
 OR in case of refund of excess of CA
 Certificate of travel completed
 Approved Travel Order
36
 REIMBURSEMENT OF TRAVELLING
EXPENSES (FOR LOCAL
TRAVEL)
PER DIEM / DAY = Php 800.00
 Hotel Accomodation Php 400.00
 Meals (Php 80.00/meal) 240.00
 Incidental Expenses 160.00
(tricycle fare, snacks & etc.)
 REIMBURSEMENT OF TRAVELLING
EXPENSES (FOR LOCAL
TRAVEL)
PER DIEM / DAY = Php 800.00
 Arrival before 12:00 noon at the place of
destination, per diem Php 800.00
 Arrival after 12:00 noon at the place of
destination, per diem Php 640.00
 Departure before 12:00 noon at the place of
destination, per diem Php 240.00
 Departure after 12:00 noon at the place of
destination, per diem Php 320.00
Note: provided that the place of destination is more than 50km
and required to stay overnight and paid registration did
not include such.
 REIMBURSEMENT OF TRAVELLING
EXPENSES (FOR LOCAL
TRAVEL)
Documentary Requirements
 Paper/electronic plane, boat or bus ticket,
boarding pass, terminal fee
 Certificate of appearance/attendance
 Copy of previously approved itinerary of travel
 Revised or supplemental Office order or any
proof for change of schedule
 Revised Itinerary of Travel, if the previos
approved itinerary was not followed
 Liquidation Report
40
 Documentary Requirements
on AICS
 OBR
 Disbursement Voucher
 Cash Grant (approved by the City Mayor and/or the City
Administrator)
 Medical Certificate/Death Certificate
 Barangay Certificate of Indigency
 Interview Form from CSWD ( Cert. of eligibility
for cash grant and Intake sheet)
 Statement of Account
 Cedula
42
General Guidelines:
Under Section 7 of the IRR of RA 9184,
consistent with government fiscal discipline
measures, only those considered crucial to the
efficient discharge of government functions shall
be included in the APP. No procurement shall be
undertaken unless it is accordance with the
approved APP.
As a general rule, all procurement shall be
done through public bidding. Under rule XVI of
the revised IRR of RA 9184, alternative modes
shall be resorted to in highly exceptional cases.
 Through Public Bidding
 Documentary Requirements
 Photocopy of approved APP
 Approved contract supported by documents
required under COA Circular No. 2009-001
and COA Memo. No. 2005-027
 Invitation to Apply for Eligibility to Bid
 Letter of Intent
 Results of Eligibility Check /Screening
 Bidding Documents enumerated under Section 17.1 of
the revised IRR of RA No. 9184 which includes a
complete set of approved plans/drawings and technical
specs. for infra projects, complete technical
description of equipment and accessories, scope of
works for goods, rental and repair contracts and Terms
of reference for consultancy services.
 Through Public Bidding
 Minutes of Pre-Bid Conference, if ABC is 1 million and
above
 Agenda and/or Supplemental Bulletins, if any
 Bidders Technical and Financial Proposals
 Minutes of Bid Opening
 Abstract of Bids
 Post-Qualification Report of TWG
 BAC Resolution declaring winning bidder
 Notice of Post-Qualification
 BAC Resolution recommending approval and approval
by the HOPE of the BAC recommending award of
contract
 Notice of Award
 Performance Security
46
 Equipments/Motor Vehicles
 Documentary Requirements
 Pre-repair evaluation report
 Post-inspection reports
 Warranty Certificates
 Request for payment
 Bill / Invoices
 Pre-repair inspection report
 Other documents considered necessary in
the auditorial review and technical evaluation
48
 Utility Expenses
 Documentary Requirements
 Statement of Account/Bill (original).
 Telephone/Communication Services
 Documentary Requirements
 Statement of Account / Bill (original)
 Certification by the Head of office that all
National Direct Dial (NDD), National Operator
Assisted Calls and International Operator
Assisted Calls are official calls
 Advertising Expenses
 One of the austerity measures adopted under AO
103 is the suspension , among ohers, of paid
media advertisements except those required in
the issuance of agency guidelines, rules and
regulations, the conduct of public bidding and the
dissemination of important public
announcements.
 Documentary Requirements
 Statement of Account / Bill (original)
 Copy of newspaper clippings evidencing
publication and/or CD in case of TV/Radio
Commercial