Coa Circular

COMMISSION ON AUDIT CIRCULAR NO. 94-013 December 13, 1994

TO : All Heads of Departments, Bureaus, Offices, Self-Governing Boards and Commissions, State Universities and Colleges, Chiefs of Financial and Management Services, Chief Accountants/Heads of Accounting Units, Budget Officers, COA Auditors and others Concerned.

SUBJECT : Rules and Regulations in the Grant, Utilization and Liquidation of Funds Transferred to Implementing Agencies.

1. RATIONALE

There are projects which require inter-agency implementation. The funds are released to the agency which programmed the project in its Budget. In turn, these funds are transferred/sub-allotted to the government agency which will implement the project.

This Circular is, therefore, issued to ensure that:

- the transfer is properly taken up in the books of both agencies,

- the transferred funds are used only for the intended purpose, and that

- proper accounting and reporting is made of the utilization of the funds.

2. COVERAGE

This Circular shall apply to financial transactions of National Government agencies and instrumentalities involving grant, utilization and liquidation of funds transferred to implementing agencies.

3. DEFINITION OF TERMS

As used in this Circular, the terms herein shall be understood to mean as follows:

3.1 Inter-Agency Transferred Funds - The cash or money transferred or sub-allotted by the agency to which the allotment was originally released in favor of another agency which will implement the project.

3.2 Project - The undertaking, whether construction work, research or training program, computer engagement or other authorized activities which an agency shall prosecute or implement in favor or in behalf of another agency.

3.3 Source Agency (SA) - The agency which the allotment has been...