COA Circular 2019 001 Re Control Mechanism To Enforce The Submission of Barangay Financial Transactions
COA Circular 2019 001 Re Control Mechanism To Enforce The Submission of Barangay Financial Transactions
Date
1.0 RATIONALE
1.1. It is the declared policy of the State that all resources of the government shall be
managed, expended or utilized in accordance with law and regulations, and
safeguarded against loss or wastage through illegal and improper disposition, with
a view to ensuring efficiency, economy and effectiveness in the operations of
government. The responsibility to ensure that such policy is faithfully adhered to
rests directly with the chief or head of the government agency concerned.
1.2. It is also a fundamental principle that claims against government funds shall be
supported with complete documentation.
1.3. COA Circular No. 2012-005 dated December 7, 2012 provides that failure of the
barangay to submit the original copy of the Disbursement Vouchers (DVs) signed
by the payee, together with its corresponding supporting documents and duplicate
copies of the checks and Punong Barangay Certification (PBC) shall cause the
issuance of the COA Auditor's Advice (CAA) to the authorized government
depository bank (AGDB), which shall withhold further payments of checks issued
by the concerned barangay.
1.4. The foregoing control, however, causes the delay/stoppage In the delivery of
services of the barangay.
1.5. In consonance with the function of the Commission to promulgate auditing and
accounting rules and regulations to prevent irregular, unnecessary, excessive,
ext vagant and unconscionable expenditures or uses of government funds or
, • p perty, this Circular is prescribed to discontinue the use of the CAA and provide
ontrol mechanism to enforce submission of the barangay transaction documents.
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2.0 SCOPE
3 l. Fiscal responsibility shall rest with the Punong Barangay (PB). The PB shall
also be responsible for the proper discharge of duties and responsibilities of the
barangay officials.
3 3. No cash advance shall be given unless for a legally authorized specific purpose.
A cash advance shall be reported on and liquidated as soon as the purpose for
which it was given has been served. No additional cash advance shall be
allowed to any official or employee unless the previous cash advance given to
him is first settled or a proper accounting thereof is made.
3 . The DV shall originate from the Barangay Treasurer (BT) and the BT shall
forward the same to the Chairman, Committee on Appropriations, who shall
certify as to the existence of appropriations, after which, the BT shall certify as
to availability of cash.
3 5. The PB shall certify the DV as to the legality, propriety and validity of the
transaction and approve the disbursement after he has duly examined and been
satisfied that the DVs are duly certified by the proper barangay officials, the
expenditure is proper and valid, and the supporting documents are complete.
3. . The PB shall issue the PBC (Annex A) to the depository bank for checks issued
by the barangay.
3. If the barangay financial transaction documents are not submitted within the
deadline, the Supervising Auditor (SA)/Audit Team Leader (ATL) shall no
longer issue the CAA, but shall follow the herein procedures/mechanism to
enforce submission thereof.
4.0 GUIDELINES
4. ithin 10 days after the end of the month, the BT shall prepare the transmittal
letter (Annex B) and submit the financial transaction documents to the C/M
Accountant.
1
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4 . Within three working days from submission of the transmittal letter and
financial transaction documents to the CIM Accountant, the BT shall submit a
duly receipted copy of the transmittal letter, together with copies of the PBCs, to
the SA/ATL.
The C/M Accountant shall submit to the SAl ATL, the barangay financial
transaction documents, within 10 working days from receipt of the transmittal
letter.
If the BT fails to submit the financial transaction documents after five days from
the deadline, the CIM Accountant shall inform the PB, in a letter, of the
barangay's failure to submit the documents, and shall require the PB to enforce
the immediate submission thereof, within three working days from receipt of the
letter, copy furnished the SAlATL of the duly received letter.
4.5. The elM Accountant shall inform in writing the SAl ATL of the barangay's
failure to submit the financial transaction documents if after five days from
receipt of the C/M Accountant's letter by the PB there is still no submission
made.
4.6. Upon receipt of the C/M Accountant's letter, the SA/ATL shall issue within two
working days a demand letter (Annex C) to the PB requiring the BT to submit
the financial transaction documents for the specific period within three days
from receipt thereof.
4.7. Upon submission, the SAl ATL shall verify check issuances in the BT cashbook,
validate bank statements for negotiated checks and review the submitted
financial transaction documents, issue the appropriate audit actionldecision, if
warranted, and furnish the CIM Accountant with photocopies of the submitted
financial transaction documents for recording in the barangay books of accounts.
4.8. If the barangay still fail to submit the accounts, three working days after the
I demand, the SAl A TL shall issue a Notice of Disallowance (NO) for the
unsubmitted transactions on the ground that the disbursements were made
without valid and legal purpose. Likewise, the SAl ATL shall execute an
affidavit (Annex D) on the non-submission of the accounts after due demand
and submit the same together with the supporting documents to the COA
Regional Director for evaluation and filing of appropriate case with the Office
of the Ombudsman, if warranted.
4.9.1 Issue to the PB a demand letter (Annex C) to submit within five days
the barangay financial transaction documents, in two copies, for the
period covered by the CAA.
'4.9~. Verify check issuances in the cashbook, validate the bank statements
for negotiated checks and review the submitted financial transaction
documents, if any, issue the appropriate audit decision, and furnish
the CIM Accountant with photocopies of the submitted financial
A
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4.9.3 In case of failure to submit the required documents after the lapse of
the prescribed period, issue ND to disallow the transactions covered
by the CAA and execute an affidavit on the non-submission of the
accounts and submit the same together with the supporting
documents to the Office of the Regional Director for evaluation and
filing of appropriate case with the Office of the Ombudsman, if
warranted.
4.9.4 Thereafter, issue the Notice to Lift the COA Auditor's Advice
(Annex E) to the depositary bank of the barangay.
5.0
T e SAl ATL shall prepare a Semestral Report on all disbursements of the barangays
within hi /her audit jurisdiction indicating the actions taken thereon, and submit the Report
on/befor January 15 and July 15 of each year to the concerned Regional Director. (Annex F)
e concerned Regional Director shall review the Semestral Reports, and prepare a
Consolid ted Semestral Report for submission to the Sector Head, Local Government Sector,
this Con mission on/before January 31 and July 31 of each year for monitoring purposes.
(Annex )
7.0 EF ECTIVITY
T~is Circular shall take effect after 15 days following its publication in the Official
Gazette, r in a newspaper of general circulation.
MICH
I11I11I1111111
"JOS~~
Commissioner
Annex "A"
Barangay _
City/Municipality of _
Province of
------------------------
PBC No. : _
Date: _
is is to certify that the following checks were duly issued by Barangay -'
(/0 ay pagpapatunay na ang mga cheke na nakalista sa ibaba ay na-isyu ng Barangay _
1"1 e undersigned attests to the truthfulness of the foregoing facts, under pain of
(. inapatototohanan ng may lagda ang mga nakasaad sa itaas, batid ang ...
Punong Barangay
TRANSMITTAL lETTER
Date
To : e City/Municipal Accountant
ity/ Municipality of _
Sir/Madam:
B. RCDs and RCRs and the duplicate copies of the ORs issued
RtD/RCR Number Period Covered Date Amount
I
C. Othet Reports
Type of Report Period Covered
Barangay Treasurer
INSTRUCTIONS
A. This form, in letter format, shall be accomplished by the Barangay Treasurerlto submit
the financial transaction documents pertaining to the Barangay, as follows:
DEMAND LETTER
Date:
--------------------
SirlMadam:
II' view thereof, demand is hereby made upon you to submit the same, in two sets
(Ikaht! dito, kayo ay binibigyan ng Huling Palugit para mag-sumite ng mga dokumentong nabanggit ...
(the origi ral and a photocopy), within three days from receipt hereof.
sa daiawa. 19 (2) kopya (ang orihinal at isang kopya nito) sa loob ng tatlong (3) araw mula sa petsa ng
pagkakatai ggap ng sulat na ito.)
P ease be reminded that failure to render account and making untruthful statements in
( ilang paalala, ang hindi pagbibigay ng ulat pananalapi ng inyong barangay at ang pagsisinungaling
the Punang Barangay Certification are punishable under Articles 218 and 171(4) of the
sa P1Inongl Barangay Certification ay may karampatang pananagutang kriminal sa ilalim ng Artikulo 2/8 at
171 (a)
for gras neglect of duty, refusal to perform official duty, or conduct prejudicial to the best
para sa 'apabayaan 0 pagtanggi sa pag-ganap ng opisyal na tungkulin. 0 asal na makasasania ...
interest f the service, among others, pursuant to Republic Act No. 3019 and prevai ling
sa paglilin kod. alinsunod sa Republic Acl No. 3019 at iba pang umiiral na mga batas at regulasyon ...
Truly yours,
Supervising Auditor
:
Annex "D"
JOINT AFFIDAVIT
e, and
legal age, Filipino citizens, and with office
I PunongBarangay: ;and
Barangay Treasurer: _
I
5. As 'of the time of the execution of this affidavit, said Punong Barangay and/or
Ball gay Treasurer have yet to comply;
6. We are executing this affidavit, together with the mentioned attachments, to attest to
the I~ruth of the foregoing statements, for all legal intents and purposes.
identity.
Date
To
Sir/Madam:
Than you.
Supervising Auditor
Copyfurnished:
Submitted by:
Name and Signature of tile Audit Team Leader Name and Signature of the Supervising Auditor
Annex "F'
INSTRUCTIONS
1. Column a - indicate the name of the city or municipality under the juris 1 iction of
the Audit Group.
3. Columns c and d - indicate the covering month and year of the latest accounts I
4. Columns e and f - indicate the CAA No. and date if there is already an 0
CAA issued for the unsubmitted accounts.
5. Column g - indicate the date of the Demand Letter issued by the Audi r for the
unsubmitted accounts.
6. Columns h, i and j - indicate the ND No., date and amount involv for the
unsubmitted accounts with ND issued by the Auditor.
8. Column I - indicate the date of Notice to Lift the CAA issued by the Au itor.
1-
ANNEX "G"
Submitted by:
Regional Director/Officer-in-Charge
A nex "G~'
INSTRUCTIONS
4. Columns d and e - indicate the covering month and year of the un ubmitted
accounts.
5. Column f - indicate the date of filing of the appropriate case with the Office of
the Ombudsman (OMB).
7. Column h - other action/s taken by the Regional Director, aside from th filing of
I