COA Presentation

ATTY. DIVINIA M. ALAGON
Assistant Commissioner
Local Government Sector
Commission on Audit

COA Circular No. 2013-006
dated September 18, 2013
COA Memorandum No. 2014-009
dated August 28, 2014
Joint Circular No. 2015-01
dated January 8, 2015

/dmalagon

Guidelines in the disposition of request for
documents/ records/ reports/ decisions
and other information in the possession
and/or custody of COA including furnishing
of copies thereof to the requesting party.
/dmalagon

All documents/records/reports/decisions or other
information in the custody or possession of this
Commission or its officials or employees by
reason of their official functions shall be made
accessible and available to every person in the
manner provided herein during reasonable hours
of working days and within the view of the
custodian officer, subject to the limitations herein
provided.
/dmalagon

LIMITATIONS
/dmalagon

COA Circular No. 2013-006 dated September 18, 2013
• The purpose of the request is contrary to law,
morals or public policy, or when no purpose is
indicated in the request form or RF (Annex A)
which can be obtained from any COA Office or
downloaded from the COAWebsite;
LIMITATIONS
/dmalagon

• The documents/ records/ reports/ decisions
and other information requested are not
described with sufficient particularity in the
prescribed RF
LIMITATIONS
/dmalagon

• When the documents/ records/ reports/
decisions and other information requested
was prepared by and in the custody of the
audited agency, unless the same has been
submitted to COA or its representatives and
no copy thereof has been retained by or
remains in the agency
LIMITATIONS
/dmalagon

• The requesting party or his authorized
representative refuses to: (i) accomplish the
RF (ii) subscribe the same before the
authorized official of this Commission or a
Notary Public (iii) Present any two valid IDs
enumerated in 4.1.5
LIMITATIONS
/dmalagon

• When the purpose of the request indicates
that the documents/ records/ reports/
decisions or other information requested is
intended to be used to “fish” for evidence
to file a case against a public officer;
LIMITATIONS
/dmalagon

• The documents/ records/ reports/ decisions or
other information requested are no longer in
the custody or possession of this Commission
or its officials and/or employees by reason of
their having lost or destroyed by fire, flood or
other fortuitous event events, or had already
been disposed of after the lapse of the period
for safekeeping, in accordance with law and
regulations;
LIMITATIONS
/dmalagon

other information are under audit or
investigation by this Commission or any
investigating body, or when such audit or
investigation has already been concluded but
no corresponding final audit or investigation
report has yet been officially transmitted to
and received by the audited agency
LIMITATIONS
/dmalagon

• Access to or furnishing of documents/ records/
reports/ decisions or other information would
violate Articles 229 and 230 of the Revised
Penal Code of the Philippines on revelation of
secrets, the laws on trade and commercial
secrets, secrecy of bank deposits, anti-graft and
corrupt practices act, the confidentiality of
records in administrative cases and other
similar laws
LIMITATIONS
/dmalagon

• Such documents/records/reports/decisions or
other information comprise of:
LIMITATIONS
1
2
3
4
5
6
(i) Drafts of decisions, order, rulings,
memoranda, and the like, of the
Commission Proper, Director or
Auditor,
/dmalagon

LIMITATIONS
1
2
3
4
5
6
(ii) Interim Audit Reports;
/dmalagon

LIMITATIONS
1
2
3
4
5
6
(iii) Minutes of Meetings of the Commission
Proper or any Committee or body duly
created by this Commission for specific
purpose which may frustrate the
implementation of a proposed official
action of this Commission
/dmalagon

LIMITATIONS
1
2
3
4
5
6
(iv) Intra and Inter Office Notes such as
Indorsement, Memorandum,
Advisory of Meetings, which do not
dispose of a matter officially
/dmalagon

LIMITATIONS
1
2
3
4
5
6
(v) Audit working papers; and
/dmalagon

LIMITATIONS
1
2
3
4
5
6
(vi) Other interlocutory communications
such as Audit Observations Memorandum
(AOM), Audit Highlights and
ManagementComments, and the like
prior to the transmittal of the Audit
Report
/dmalagon

other information requested pertain to the audit
of Confidential and Intelligence funds where
national Security is involved
LIMITATIONS
/dmalagon

other information that are personal in nature
such as the (i) COA Official’s/employee’s address,
telephone number, names of family members,
and the like and (ii) auditee official’s/employees
personal information obtained in the course of
fraud audit or other special investigation, the
disclosure of which would constitute a clearly
unwarranted invasion of personal privacy
LIMITATIONS
/dmalagon

• The information is privileged
communication such as neuro-psychiatric
records, medical records, communication
between a respondent COA official/
employee in an administrative proceeding
before the COA and the like
LIMITATIONS
/dmalagon

• The document requested is the Statement of Assets,
Liabilities and NetWorth (SALN) of the officials or
employees of this Commission (i) for which the ten (1) day
period after filing has not yet elapsed; or (ii) for a purpose
that is contrary to morals or public policy, or any commercial
purpose except if it is to be used for news and
communications media for dissemination to the general
public (Section 8[D], republic Act [R.A.] No. 6713). In no
instance shall the private addresses of the owners of the
SSALNs be disclosed to other persons. For this purpose, the
Processor shall ensure that the private address/es of their
owners are blackened in the copies to be furnished.
LIMITATIONS
/dmalagon

Notwithstanding the foregoing
limitation, where the
examination or production of
documents/ records/ reports/
decisions or other information
is directed through a subpoena
duces tecum or other
compulsory processes issued
by the Courts, the Office of the
Special Procecutor, the Office
of the Ombudsman or any of
the latter’s Deputies, or any
investigating body authorized
Compliance to Subpoena Duces Tecum
by law to issue subpoenas, the
Supervising Auditor (SA), Audit
Team Leader (ATL), Division
Chief or any official or employee
of this Commission shall
immediately refer the said
subpoena to the Legal Service
Chief of the Cluster, Office or
Regional Office concerned for
evaluation.The subpoena shall
be complied with without prior
clearance from the Director
concerned.
/dmalagon

Request for documents/ records/ reports/
decisions and other information not
specifically covered herein shall be
referred to the Legal Affairs Office, Legal
Services Sector, for evaluation and/or
appropriate action.
Request Not Covered by the Guidelines
/dmalagon

1) File a Request using the prescribed RF subscribed
and sworn to before any of the officials and
employees authorized to administer oath
Procedures to be Observed
by Requesting Party
a) if documents in the custody of a specific Audit
Team, Central or Regional Office, the RF shall be
filed before the SA/Service Chief or ATL
concerned
/dmalagon

1) File a Request using the prescribed RF subscribed
and sworn to before any of the officials and
employees authorized to administer oath
by Requesting Party
b) Where the custody of he documents is unknown,
the RF shall be filed with the Records Management
Division (RMD), General Services Office,
Administration,Training Services (ATFS) of the
Regional Office concerned, as the case may be.
/dmalagon

2) If the request is by mail, the prescribed RF shall
be subscribed and sworn to before a notary
public.
3) Where submission is by electronic means, the
original of the scanned copy of the duly notarized
RF shall be presented before release of the
documents
by Requesting Party
/dmalagon

4) Identification Documents (At least 2 of the ff):
by Requesting Party
GSIS/
SSS
ID
TIN/
Pag-IBIG/
Philhealth
ID
Passport
Driver's
license
Student
ID
IBP ID Voter’s
ID
Current
Office
ID
Senior
Citizens
ID
PRC ID
/dmalagon

5) If the request is submitted by mail or
through electronic means, the requesting
party shall attach to the RF a photostatic or
electronically scanned copy of at least two(2)
of the above IDs
by Requesting Party
/dmalagon

6) Prescribed Fees
P 5.00 per page
for hard copy
P 1.00 per page
authentication fee
P 20.00 per report for
electronic copy of Annual
Audit Report, special audit
report, etc.
Cost of mailing by private
courier or registered mail
as determined by the
processor
by Requesting Party
/dmalagon

7) Denied Request
by Requesting Party
If the request is denied, the requesting party
shall have fifteen (15) days from receipt of
Notice from the Director concerned within
which to file his appeal to the Head of the
Sector concerned whose Decision shall be final.
/dmalagon

COA Memorandum No. 2014-009
dated August 28, 2014
Guidelines in the Audit of
Disaster Risk Reduction and
Management (DRRM) Funds
/dmalagon

Guidelines in the Audit of (DRRM) Funds
GENERAL GUIDELINES
1) The audit of the Disaster Risk
Reduction and Management (DRRM)
shall be part of the regular audit of
agencies.
/dmalagon

GENERAL GUIDELINES
2) The financial, compliance and performance audit in the
evaluation of DRRM shall be carried out and shall cover
the four thematic areas of disaster risk reduction and
management activities, as follows:
C
BPreparedness
A
Response
Prevention and
Mitigation
DRehabilitation
and Recovery
/dmalagon

GENERAL GUIDELINES
3) The audit shall be conducted in accordance with
Philippine Public Sector Standards on Audit (PPSSAs);
INTOSAI GOY 9250 - the Integrated Financial
Accountability Framework (IF AF): guidance on
improving information on financial flows of
humanitarian aid; and the following International
Standards of Supreme Audit Institutions (ISSAIs),
among others:
/dmalagon

GENERAL GUIDELINES
ISSAl 5500 Introduction to the 5500 series of ISSAIs and INTOSAl
GOY 9250
ISSAI 5510 The audit of disaster risk reduction
ISSAI 5520 The audit of disaster-related aid
ISSAI 5530 Adapting audit procedures to take account of the
increased risk of fraud and corruption in the emergency
phase following a disaster
ISSAl 5540 Use of geospatial information in auditing disaster
management and disaster-related aid
/dmalagon

GENERAL GUIDELINES
4) The auditors shall have an understanding of RA
No. 10121 and its Implementing Rules and
Regulations (IRR)
5) The auditors shall be aware of the entire
process of disaster risk reduction and
management.
/dmalagon

GENERAL GUIDELINES
6) Auditors shall make site visits, if warranted, to
observe and evaluate the work of agencies
involved in DRRM operations.
7) The results of audit shall be incorporated in
the annual audit report and the consolidated
results are submitted to the OCD Auditor for
nationwide consolidation.
/dmalagon

SPECIFIC GUIDELINES
The auditors shall verify/validate compliance by
management with the following:
DRMM
Plans
DRMM
Funds Procurement
In-kind
donations
Storage/
Warehousing
Distribution
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
Local Disaster Risk and
Management (LDRRM) Plans are
formulated in accordance with the
national, regional and provincial
framework in close coordination with
LDCs.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
1) The utilization of DRRM Funds is in
accordance with the purpose for which
these were appropriated and/or with
the intent of the donors. In addition,
for LGUs, the utilization is in conformity
with the LDRRM Fund Investment Plan
prescribed in COA Circular No. 2012-002
dated September 12, 2012.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
2) The cash donations are acknowledged
through the issuance of Official Receipt
and deposited with an authorized
government depository bank (AGDB).
For NGAs, a separate bank account is
maintained for disaster funds while for
LGU s, the receipts are deposited to
theirTrust Fund bank account.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
3) For LGUs, receipt of Notice of Funding
Check Issued (NFCI) for DRRM is
recognized as "Trust Liabilities-DRRM
Fund" in theTrust Fund books.
4) In recognizing the foreign currency
cash donations, the amount is
converted to local currency using the
current exchange rate at the date of
receipt.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
5) For LGUs, the following are observed
for all unutilized LDRRM funds:
CURRENTYEAR APPROPRIATIONS
a. At the end of the year, the amount corresponding
to the unutilized appropriation, except those for
capital outlay, is transferred to theTrust Fund bank
account and recorded in theTrust Fund books as
"Trust Liabilities DRRM Fund“.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
b. The transferred fund is available within
the next five years solely for the purpose
of supporting disaster risk reduction and
management activities.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
c. After five years, any balance is reverted
back to the General Fund and made
available for other social services identified
by the local sanggunian.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
CASH DONATIONS
All unutilized cash donations remain in the
"Trust Liabilities-DRRM Fund“ until fully
disbursed.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
6) The national and local government
agencies prepare the report on the
receipt and utilization of the DRRM
Funds using the respective formats
prescribed in COA Circular Nos. 2014-
002 dated April 15, 2014 and 2012-002
dated September 12, 2012.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• In the absence of specific
pronouncement by the Government
Procurement Policy Board (GPPB) or
requirements of the donor, the
provisions of RA 9184, otherwise
known as the Government
Procurement Act, are applied in the
procurement of goods and services
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• Procurement of goods and services are
determined based on the following,
among others:
a) extent of damage
b) number of victims and their basic
needs
c) inventories of relief goods and
donated PPEs
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• Supplies, materials, relief goods and
equipment procured out of DRRM
Funds are taken up in the books
under the appropriate Inventory
and/or PPE account. Issuances to the
end-users/beneficiaries, except for
PPE, shall be taken up under the
appropriate expense account.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• Receipt of in-kind donations is
covered by Acknowledgment
Receipt while those transferred to
other government agencies by an
Invoice Receipt.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• Upon receipt, in-kind donations
other than PPE are sorted,
inventoried/ counted and recorded
in the Registry of Donated Relief
Goods for DRRM for each kind of
relief goods before repacking and
distribution
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• Goods and materials, whether donated or
purchased, are inventoried, sorted,
recorded and reported in accordance with
COA Circular No. 2014-002 dated April
15,2014.
• Pending distribution, the relief goods are
properly stored and safeguarded in
warehouses to avoid possible damage/
spoilage and/or loss/ pilferage.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• Stockpile of goods are maintained
for ready distribution in case of
calamities. Level of stockpile is based
on the policy of the implementing
agencies concerned.
• Warehouses/Storage facilities are
located in accessible, safe and
secured areas.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• In the absence of warehouse/storage
facility, temporary distribution
hubs/centers are identified for use in
delivery, sorting, packing and
distribution activities.
• Equipment for DRRM activities are
properly secured, maintained and
accounted for.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• The distribution is in accordance
with the relief distribution
mechanism contained in the
DRRM Plans
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• The availability of the following are properly
coordinated with implementing partners and
the recipient LGUs:
a) transportation for the shipment of relief goods
b) equipment for the loading and unloading of
relief goods
c) manpower for the sorting, repacking and
distribution of relief goods
d) escorts to ensure the security of relief goods to
be distributed
e) provision for petroleum, oil and lubricants
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• The donated relief goods are immediately
distributed, especially the perishable
items.
• Release of relief goods from the
warehouse are properly documented and
acknowledged/received by the
designated LGU officials and immediately
distributed to the intended beneficiaries.
/dmalagon

SPECIFIC GUIDELINES
DRRM Plans
DRRM Funds
Procurement
In-kind
Donations
Storage/
Warehousing
Distribution
• Release of goods directly to the
victims/intended beneficiaries is
based on the validated list of
affected families.
/dmalagon

Reporting on the Results of Audit
1) The results of audit shall be
communicated to the management
through the issuance of an Audit
Observation Memorandum (AOM).
/dmalagon

2) All prior years' observations and
recommendations that remain uncorrected
or partially implemented, especially those
with material impact on the financial
statements and/or operations shall be
reiterated by issuing an AOM with updated
figures/amounts or data and the reasons for
management's inaction.
/dmalagon

3) Any unresolved issues shall be
incorporated in the Annual Audit
Report under a separate caption
"Disaster Risk Reduction and
Management”
/dmalagon

4) The unresolved issues shall be transmitted
in a matrix form together with the financial
and operational highlights, and the status of
implementation of prior years’
recommendations, if any, in electronic and
bard copies to the OCD Auditor for
consolidation.
/dmalagon

Guidelines on the
Entitlement, Release,
Use, Reporting and
Audit of Confidential
and/or Intelligence Funds
of the Commission on Audit (COA), Department
of Budget and Management (DBM),
Department of the Interior and Local
Government (DILG), Governance
Commission for GOCCs (GCG),
and the Department of
National Defense (DND)
/dmalagon

Guidelines on the
Entitlement, Release,
Use, Reporting and
Audit of Confidential
and/or Intelligence Funds
/dmalagon

• ENTITLEMENT,
• RELEASE,
• USE,
• REPORTING, AND
• AUDIT OF CONFIDENTIAL
AND/OR INTELLIGENCE FUNDS
/dmalagon

Guidelines on the Entitlement, Release, Use, Reporting
andAudit of Confidential and/or Intelligence Funds
LEGAL BASIS
a) General Provision Nos. 77 and 78 of the FY
2015 General Appropriations Act (GAA)
requiring the DBM to issue said guidelines
on the release and/or disbursement of
Intelligence and Confidential Funds;
/dmalagon

LEGAL BASIS
b) the Administrative Code of 1987 requiring the
DILG to prescribe rules and regulations and other
issuances and implementing laws on the general
supervision of local government units, and the
DND to formulate and coordinate the
implementation of policies on matters of
common interest to the various departments and
agencies of the government concerned with the
national security
/dmalagon

LEGAL BASIS
c) RepublicAct No. 10149 creating the GCG
as the central advisory, monitoring and
oversight body with authority to
formulate, implement and coordinate
policies involving Government Owned and
Controlled Corporations (GOCCs); and
/dmalagon

LEGAL BASIS
d) Section 2(2) Article IX-D, 1987 Constitution,
which mandates the COA to promulgate
accounting and auditing rules and regulations,
including those for the prevention and
disallowance of irregular, unnecessary, excessive,
extravagant, or unconscionable expenditures, or
uses of government funds and property.
/dmalagon

COVERAGE
Funds provided for confidential and/or intelligence
activities that are in the:
a) GAA for the NGAs;
b) in the Corporate Operating Budgets (COBs) of
GOCCs, including their subsidiaries, falling under the
regulatory jurisdictions of DBM and/or GCG; and
c) in the appropriation ordinances of Local Government
Units (LGUs).
/dmalagon

DEFINITION OFTERMS
1) ACCOUNTABLE OFFICER (AO)
refers to every officer of the government whose
duties permit or require the possession or custody
of government funds and property and who shall
be accountable therefor and for the safekeeping
thereof in conformity with laws and regulations.
/dmalagon

DEFINITION OFTERMS
2) ANNUAL INVESTMENT PROGRAM (AIP)
refers to the indicative yearly expenditure
requirements of the LGUs’ programs,
activities
/dmalagon

DEFINITION OFTERMS
3) HEAD OF AGENCY (HOA)
refers to the highest official of the NGA and LGU.
In the case of GOCCs, however, and solely for
purposes of this Circular, the HoA refers to the
President and/or Chief ExecutiveOfficer, who is
in-charge of the day to day operations of the
corporation.
/dmalagon

DEFINITION OFTERMS
4) CASH DISBURSEMENT RECORD (CDR)
refers to a record maintained by the Special
Disbursing Officer (SDO) as herein defined
showing the receipt, disbursement and balance
of an agency’sCF and/or IF at any one time.
/dmalagon

DEFINITION OFTERMS
5) CONFIDENTIAL FUND (CF)
refers to the lump-sum amount provided as
such in the GAA for NGAs, in appropriation
ordinances for LGUs, and in the COBs for
GOCCs, for their Confidential Expenses
/dmalagon

DEFINITION OFTERMS
6) CONFIDENTIAL EXPENSES (CE)
refer to those expenses pertaining/related
to surveillance activities in civilian
government agencies that are intended to
support the mandate or operations of the
agency
/dmalagon

DEFINITION OFTERMS
7) INTELLIGENCE AND CONFIDENTIAL FUND
AUDIT UNIT (ICFAU)
refers to the unit created under the Office of
the Chairperson of the COA in charge of the
audit of CF and IF.
/dmalagon

DEFINITION OFTERMS
8) INTELLIGENCE FUND (IF)
refers to the lump-sum amount provided as
such in the GAA for NGAs
/dmalagon

DEFINITION OFTERMS
9) INTELLIGENCE EXPENSES (IE)
refer to those related to intelligence
information gathering activities of
uniformed and military personnel, and
Intelligence Practitioners that have direct
impact to national security;
/dmalagon

DEFINITION OFTERMS
10) PEACE AND ORDER AND PUBLIC SAFETY PLAN
refers to the 3-year comprehensive and
concerted action plan of an LGU that aims
to attain a safe, secure, peaceful and
progressive community
/dmalagon

DEFINITION OFTERMS
11) PEACE AND ORDER PROGRAMS (POP)
refers to the plan approved by the HoA, in the
case of NGAs and LGUs and by the Board of
Directors in the case of GOCCs, supporting the
request for funds for CE and IE containing the
estimated amount per project, activity and
program;
/dmalagon

DEFINITION OFTERMS
12) PHYSICAL AND FINANCIAL PLAN
refers to any or a combination of the following
programs, activities and projects which may be
included as part of the Peace and Order and
Public Safety Plan of an LGU so that these shall
be eligible for funding of the CF:
/dmalagon

DEFINITION OFTERMS
a) Crime prevention and law enforcement activities,
(e.g. conduct of coordination meetings with
partner agencies/stakeholders, increase in police
visibility, provision of equipage and/or logistical
support for law enforcement agencies and conduct
of awareness raising activities for the community);
/dmalagon

DEFINITION OFTERMS
b) Aid and/or capability development for personnel
of law enforcement agencies, and
volunteers/partners;
/dmalagon

DEFINITION OFTERMS
c) Programs for anti-illegal drug, illegal
gambling, counter-insurgency and/or counter-
terrorism, illegal logging, illegal mining, illegal
fishing, smuggling and human trafficking.
/dmalagon

GENERAL GUIDELINES
• The following are entitled to CF and/or IF:
– x x x x x x
– LGUs whose peace and order is a priority concern and
which have duly allocated CF, but not IF, in their annual
appropriation ordinances, provided, that, specific
amount for POP is included in their Peace and Order
and Public Safety Plan and, provided further, that
there is a specific appropriation for POP in their annual
budget. The computation of allowable CF of an LGU
shall be based on the budget of the LGU’s POP only.
/dmalagon

GENERAL GUIDELINES
• All allocations of CF and/or IF shall be
supported with a Physical and Financial Plan
(Annex A) indicating the proposed amount
allocated for each program, activity, and
project, where disbursements pertaining to CE
and IE shall be based.
/dmalagon

GENERAL GUIDELINES
• For LGUs, release and utilization of the total CF
shall be covered by a resolution duly approved by
two-thirds (2/3) of the total membership of the
Local Peace and Order Council.
/dmalagon

GENERAL GUIDELINES
• For LGUs, in the event that additionalCF in
excess of the limitation is extremely necessary,
additional appropriation supported with duly
authorized supplemental budget shall be
approved by the Secretary of DILG.
/dmalagon

GENERAL GUIDELINES
• CF shall be used only for the following
Confidential Expenses:
– Purchase of information necessary for the
formulation and implementation of program,
activities and projects relevant to the
national security and peace and order;
/dmalagon

GENERAL GUIDELINES
– Rental of transport vehicle related to
confidential activities;
– Rentals and the incidental expenses related
to the maintenance of safehouses;
/dmalagon

GENERAL GUIDELINES
– Purchase or rental of supplies, materials and
equipment for confidential operations that
cannot be done through regular procedures
without compromising the information
gathering activity concerned;
/dmalagon

GENERAL GUIDELINES
– Payment of rewards to informers (non-employee of
concerned government agency) subject to the
following conditions:
a) Approval by the HoA in the case of LGUs and NGAs and approval by the
Chairman of the Board in case of GOCC.
b) Supported with documents evidencing the success of the information
gathering and/or surveillance activities on account of the information
given by the informer; and
c) Directly related to the conduct of the specific confidential activities of
authorized agencies.
/dmalagon

GENERAL GUIDELINES
– Uncover/Prevent illegal activities that pose a clear and
present danger to agency personnel/property, or other
facilities and resources under the agency protection,
done in coordination with the appropriate law
enforcement agencies
– Others that may be authorized by the GAA or other
special law/s.
/dmalagon

• Conduct of confidential activities shall, as far as
practicable, be done with proper collaboration with any
of the following law enforcement agencies:
Such collaboration, if undertaken, must be specified in
the accomplishment report of the concerned agency.
GENERAL GUIDELINES
other agencies
with law-
enforcement
functions.
PNP AFP PDEA
/dmalagon

• IF shall be used only for the following Intelligence
Expenses carried out by uniformed and military personnel,
and Intelligence Practitioners:
1) Intelligence and counter intelligence activities that have
direct impact to national security.
2) Special projects and case operation plans as approved by
the HoA involving covert or semi-covert psychological,
internal security operation, and peace and order activities,
as well as programs/ projects/ campaigns against
lawlessness and lawless elements involving intelligence
activities.
GENERAL GUIDELINES
/dmalagon

• In no case shall CF or IF be used for:
1) Salaries, wages, overtime, additional compensation,
allowance or other fringe benefits of officials and
employees who are employed by the government in
whatever capacity or elected officials, except when
authorized by law.
2) Representation, consultancy fees or entertainment
expenses; or
3) Construction or acquisition of buildings or housing
structures.
GENERAL GUIDELINES
/dmalagon

• Disbursements from CF shall be
supported with documentary evidence
of payment, among others, which shall
be submitted to the ICFAU in a sealed
envelope signed by the SDO.
GENERAL GUIDELINES
/dmalagon

• Disbursements from IF shall be supported
with documentary evidence of payment in
a sealed envelope signed by the SDO, kept
at all time in the vault in his office.The
same may be inspected by the ICFAU or
officers/personnel duly authorized in
writing by the COA Chairperson if the
circumstances so demand.
GENERAL GUIDELINES
/dmalagon

• Disbursements from CF and IF shall be supported by
Certification of the Accountable Officer of the CF or IF
signed under oath (Annex B), containing the following:
GENERAL GUIDELINES
– That the certifying officer or employee is accountable for
the disbursements from the cash advance of CF and/or IF;
– That expenses were incurred in connection with the
agency’s intelligence and/or confidential operations and
activities, with supporting documents attached to the
liquidation forCF, and for the IF, documentary evidence of
payment kept in a sealed envelope in the vault in the
office of the SDO;
/dmalagon

GENERAL GUIDELINES
– That the details and supporting documents of
transactions that are classified are in the custody of the
agency and kept in its vault which may be inspected by
ICFAU if the circumstances so demand;
/dmalagon

GENERAL GUIDELINES
– That the funds are not used for payment of salaries and
wages, overtime, additional compensation, allowance or
other fringe benefits of officials and employees,
representation/ entertainment expenses, consultancy fees
and construction or acquisition of buildings or housing
structures;
/dmalagon

GENERAL GUIDELINES
– That the purchase of equipment (if there is any) is relevant
to the confidential and/or intelligence activities; and
– That the expenditures are necessary and utilized for legal
purposes.
/dmalagon

• In case of misuse of IF/CF, and depending
on the participation in the transaction, the
Budget Officer, Chief Accountant, the
Treasurer and Project Officer may likewise
be held accountable with the SDO.
GENERAL GUIDELINES
/dmalagon

• Release, augmentation, and additional IF/CF
PROCEDURAL GUIDELINES
CF of LGUs
a) LGUs with peace and order concerns shall allocate in their
respective Annual Appropriations Ordinance funds for POP,
as part of its Peace and Order and Public Safety Plan, as
required under 4.1.3 of this Joint Circular.
The total amount for CF shall not exceed thirty percent
(30%) of the total annual amount allocated for the LGU’s POP.
b) The release and use of CF shall be covered by a Resolution
duly approved by two-thirds (2/3) of the total membership of
the Local Peace and Order Council.
/dmalagon

CF of LGUs
c) LGUs shall secure Certification from the concerned PNP
Chief in their locality relative to the peace and order situation
highlighting in concrete details the circumstances which
require the urgency in allocating CF.
d) Additional CF shall be covered with a supplemental budget
authorized by the Sanggunian concerned and/or reviewed by
the DBM Secretary or his authorized representative as the
case maybe, the source of which shall not come from 20%
Development Fund of the LGU.
/dmalagon

CF of LGUs
e) Request for additional CF in excess of the ceiling provided in
5.1.3.1 shall be filed with the concerned DILG Field Officer
justifying the need thereof supported with the following
documentary requirements:
1) Duly approvedThree-Year Peace and Order and Public Safety Plan;
2) Annual and Supplemental Appropriations Ordinance indicating the appropriations for CF;
3) Certification from the Budget Officer as to the availability of appropriations;
4) Certifications from the concerned PNP Chief in their locality relative to the peace and
order situation highlighting in concrete details the circumstances which require the
urgency in allocating funds for confidential activities;
5) Physical and Financial Plans for both the original allocation for CF and the subject request.
/dmalagon

CF of LGUs
f) Upon review of the documents and field-verification of the
circumstances as to the need to allocate additional CF, the
DILG Regional Office shall forward the request within
five (5) days to the Director of the Bureau of Local
Government Supervision (BLGS) for further evaluation.
The Director of the BLGS shall submit his or her
recommendation to the Secretary of the DILG, who shall
approve or disapprove the request.
/dmalagon

• Reporting requirements
– To strengthen accountability, all HoAs of NGAs, LGUs
and GOCCs which releasedCF and/or IF shall submit
Quarterly Accomplishment Report on the use of CF
and IF (Annex C), which must be duly certified by the
HoA, not later than the 15th day of the first month of
the succeeding quarter, as follows:
 x x x x x x
 LGUs – to the Secretary of the DILG.
/dmalagon

• Reporting requirements
– Agencies shall report the specific detail of the
corresponding expenditures by object in the
Accomplishment Report as indicated in the Physical and
Financial Plan
/dmalagon

• Granting of cash advance
Guidelines on the Grant and Liquidation of Cash
Advance for CF and/or IF and the Audit thereof
– Cash advances shall be used for specific legal purpose
related to CF and/or IF. Under no circumstance shall it
be used for liquidation of the previous cash advance or
be transferred from one accountable to another.
– Cash advances for CF and/or IF shall be drawn by duly
designated and bonded SDOs or HoA for the
implementation of a program, activity, and project
chargeable to the corresponding CF and/or IF of the
agency, upon approval of the HoA. In no case shall cash
advance for CF and/or IF be utilized as reimbursement of
the expenses prior to the granting of cash advance.
/dmalagon

– The cash advance shall not exceed the maximum
cash accountability of the SDO/HoA as indicated
in his/her designation order and approved bond
application.
– Cash advances chargeable against the CF and IF of
agencies shall not exceed the appropriation
therefore and the ceilings as specified herein.
/dmalagon

– Cash advances shall be limited to the requirements for three (3)
months.
The disbursement voucher (DV) shall clearly state the duration of
implementation of the projects. If the implementation of the project
will extend to more than three months, additional amount may be
granted only after liquidation of the previous cash advance.
If on the other hand cash advances are drawn monthly, liquidation
shall also be done monthly.
Cash advances shall be granted only upon the certification of the
Agency Accountant stamped or printed on the disbursement voucher
(DV) that previous cash advance for the same purpose, project or
activity given to the SDO requesting cash advance has been liquidated
and proper accounting thereof was made in accordance with this Joint
Circular.
/dmalagon

– No transfer of funds/appropriation through cash
advances or any form of payment from one
agency to another for purposes of confidential
and intelligence activities shall be allowed.
/dmalagon

– The following are the required documents to support the DV
for the grant of cash advance forCF and IF common to NGAs,
GOCCs and LGUs:
a) Certified copy of the designation of the SDO. If the HoA is
the SDO, a Certification by the HoA to that effect shall be
signed by him/her;
b) Certified copy of the approved application for fidelity bond
together with a copy of the Official Receipt (OR) evidencing
payment of premium or List of Accountable Officers with
Approved Bond issued and duly certified by the Bureau of
Treasury;
/dmalagon

GOCCs and LGUs:
c) Certified copy of the transmittal letter of the LR of the
previous cash advances duly stamped “received” by the
ICFAU, COA and certification of the Accountant that the SDO
has no unliquidated CF/IF cash advances;
d) Original specimen signatures of signatories to DV and
Obligation Requests (ObR) in case of GOCCs, NGAs, and
LGUs;
/dmalagon

GOCCs and LGUs:
e) Certified copy of the Physical and Financial Plan where
disbursements of the cash advance of the CF/IF shall be
based; and
f) Certified copy of the annual budget bearing approval of
proper authorities concerned except for NGAs whose budget
is reflected in the GAA;
/dmalagon

– In addition to those mentioned in 6.1.7, the following are the
required documents to support DV for the grant of cash
advance for CF and IF for a specific sector;
a) For LGUs:
1. Certified copy of Annual/Supplemental Budget
supported with the AIP showing the allocation/budget for
POP of the LGU, and the corresponding Appropriation
Ordinance approving the budget;
/dmalagon

a) For LGUs:
2. Statement of Itemized POP of the LGU where the
allowable CF was computed duly certified by the Budget
Officer;
3. Certified copy of the minutes of the meeting evidencing
the 2/3 votes of the Local Peace and Order Council
approving the POP and the release of the CF;
/dmalagon

a) For LGUs:
4. Certification from the concerned PNP Chief in the
locality highlighting the peace and order situation in
the locality and supporting the need to release and
use the CF;
/dmalagon

a) For LGUs:
5. Approval by the DILG Secretary in case of additional
appropriation forCF; and,
6. Certified copy of the ObR.
/dmalagon

b) Within seven (7) days after release of check, the cash
advance voucher with covering transmittal letter (Annex
D) enumerating the supporting documents shall be
submitted by the Agency Accountant or authorized
representative in a sealed envelope, to the concerned
COA AuditTeam Leader (COA ATL) for post audit.
/dmalagon

• Liquidation of Cash Advance
– Liquidation of
cash advance
for CF and IF
shall be
audited by the
ICFAU.
/dmalagon

– All cash advances for CF
and IF shall be liquidated
within 30 days after
every quarter, or from the
approved target date of
completion of the
project/activity, or after
the cash advance had
been fully utilized
whichever comes first in
accordance with the
following procedures:
a) Submission of the Liquidation Report
(LR) (Annex E) duly signed by the HoA
or SDO approved by the HoA, together
with the supporting documents under
Section 6.2.3 hereof and listed in the
covering transmittal letter of the LR.
These shall be submitted directly to the
ICFAU in a sealed envelope with a
visible label “CONFIDENTIAL – For
ICFAU Only” through any of the
following:
1. Registered mail
2. Courier
3. authorized liaison officer
/dmalagon

completion of the
been fully utilized
accordance with the
b) The agency liaison officer’s
authorization by the HoA must be
presented to the receiving staff
designated by the ICFAU.
c) The ICFAU authorized receiving staff
shall open the sealed envelope in front
of the liaison officer to verify
completeness of the documents
stated in the covering transmittal letter
(Annex F). If incomplete, the ICFAU
authorized receiving staff shall not
stamp “received” and shall return the
documents in a sealed envelope signed
by the ICFAU staff.
/dmalagon

completion of the
been fully utilized
accordance with the
d) A copy of the transmittal letter, duly
received by the ICFAU authorized staff,
shall be forwarded by the liaison officer
to the Agency Accountant and the COA
ATL concerned. Upon receipt of said
transmittal letter, the Agency
Accountant shall record the liquidation
of the cash advance in the books of
accounts.
e) In case of LR received by ICFAU thru
mail, the “Received” copy shall
immediately be sent to the concerned
agency within five (5) days upon its
receipt.
/dmalagon

completion of the
been fully utilized
accordance with the
d) In case ND is issued by ICFAU after post
audit of the liquidation of the cash
advance, the Agency Accountant shall
restore in the books of accounts the
cash advance corresponding to the
amount of disallowance and shall form
part of the unliquidated cash advance
of the SDO/HoA.
e) All cash advances for CF and/or IF shall
be liquidated at year-end.
/dmalagon

– The
liquidation of
cash advances
for CF and/or
IF shall be
supported by
the following
documentary
requirements:
a) Liquidation Report (Annex E);
b) Certified copy of the check and paid DV
of the cash advance drawn for CF and or
IF being liquidated signed and/or
approved by the HoA with certification
by the Agency Accountant stamped or
printed on the DV pursuant to Sec. 6.1.5
hereof;
/dmalagon

– The
liquidation of
cash advances
for CF and/or
IF shall be
supported by
the following
documentary
requirements:
c) Documentary evidence of payments
and Certification by the HoA, required
under Sections 4.12, 4.13, 4.14 and 4.15
hereof;
d) Copy of the Physical and Financial
Plan;
e) Copy of the Accomplishment Report
and its proof of submission to the
concerned agencies as required under
Sec. 5.2 hereof;
/dmalagon

– The
liquidation of
cash advances
for CF and/or
IF shall be
supported by
the following
documentary
requirements:
f) Copy of the transmittal letter of the DV
and supporting documents pertaining to
the cash advance being liquidated duly
stamped “Received” by the office of the
COAATL; and
g) Other supporting documents the
ICFAU deems necessary for the proper
evaluation of liquidation documents
submitted.
/dmalagon

• Responsibilities
– The COA Chairperson, thru the ICFAU, shall:
a) Conduct post audit of the liquidations of
disbursements from the cash advances for the
CE and IE of government agencies;
b) Retain for safekeeping all liquidation reports and
supporting papers;
/dmalagon

c) Maintain and update a record of the cash advances
and their liquidations pertaining to CE and IE for
each individual AO and for each agency;
d) Issue an AOM, NS or ND addressed to the HoA as
may be warranted in accordance with the RRSA or
COA Circular No. 2009-006 dated September 15,
2009 and any subsequent amendments thereof;
/dmalagon

e) Keep records of all AOM/ NS/ ND issued to the HoA
including the NFD and COE, in the event of failure to
settle the disallowance; and
f) Provide the concernedATL and the Agency
Accountant with a copy of the AOM, NS and ND
issued in relation to the post-audit of the liquidation
of cash advances for CF and IF.
/dmalagon

– The AuditTeam Leader shall:
a) Verify the completeness of the supporting documents
attached to the DV of the cash advance for CF and/or IF
contained in confidential envelope per transmittal letter
submitted by the Agency Accountant. He or his
authorized representative shall open the sealed envelope
in front of the Agency Accountant or his representative. If
found incomplete, the ATL or his representative shall not
stamp “received” and shall return the cash advance
documents in a sealed envelope signed by the COA
ATL/authorized staff.
/dmalagon

b) Ensure that the submitted DV and supporting documents
have been post-audited within fifteen (15) days from
receipt from the Agency Accountant in accordance with
the RRSA;
c) In the post audit of the cash advance forCF and IF, the
COA ATL shall be guided by this Joint Circular and, among
others, the provisions of the GAA, charter of the GOCC,
issuances of DILG, COA and other oversight agencies, and
other pertinent laws, rules and regulations;
/dmalagon

d) Maintain and update a record for each SDO per agency of the
cash advances and their liquidations pertaining to CF and IF; and
e) Submit to the Office of the Chairperson, COA, Attention: ICFAU
a Report of Submission of Cash Advance for CE and IC and
results of Audit thereof (Annex G) containing the status of the
audit, including copy of the AOM, NS and ND issued, if any, on
or before the 5th day of each month. Submission during a given/
reported month which have not been audited yet, or when an
AOM/NS/ND was issued shall continuously be reported until
such month that post audit has been completed or the
AOM/NS/ND has been settled.
/dmalagon

• The appointed or designated SDO shall
maintain a CDR as required in the New
GovernmentAccounting System (NGAS)
Manual. Before discharging his duties, the
new SDO shall be briefed by the
Accountant on the proper recording of the
CF and/or IF transactions and other matters
related to his work;
Handling, Custody and Disposition of the
Cash Disbursement Record (CDR)
/dmalagon

1) It shall be the duty of the officials or
employees concerned to comply with the
requirements of this Circular. Failure or
refusal to do so without justifiable cause
shall constitute a ground for administrative
disciplinary action as well as disallowing the
cash advance granted.
Administrative Provisions/
Penal Sanctions
/dmalagon

2) The preceding section is without prejudice
to the filing of appropriate criminal
charges under existing laws against the
erring officials or employees.
Penal Sanctions
/dmalagon

3) Failure of theAO to liquidate any public funds
for which he is accountable, upon demand by
any duly authorized officer, shall be prima
facie evidence that he has put such missing
funds or property to personal use and
benefit. (Antonio C. Martinez vs. People of
the Philippines and the Sandiganbayan, G.R.
No. 126413, 20 August 1999).
Penal Sanctions
/dmalagon

ATTY. DIVINIA M. ALAGON
Assistant Commissioner
Local Government Sector
Commission on Audit
THANKYOU
FOR LISTENING !

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