QuestionsQuestions (COA Circular No. 2015-001)
To prescribe the accounting guidelines and procedures for the reversion to the General Fund of all dormant cash balances, unauthorized accounts, and unnecessary special and trust funds maintained by national government agencies (NGAs) with depository banks.
Permanent Committee Joint Circular No. 4-2012 (Sept. 11, 2012), implementing Executive Order (EO) No. 431 (May 30, 2005), and COA’s authority under Section 5.6 of Joint Circular No. 4-2012 to prescribe accounting entries and supporting documents.
To conduct thorough analysis of cash accounts and provide cash account mapping and/or group the cash accounts into specified categories (a) to (f).
They are grouped into accounts with authorized depository bank but inactive (except periodic bank charges), accounts with no authority/legal basis/specific purpose, accounts with authority but deposited with non-AGDBs, accounts/funds in AGDBs without valid claimants or no longer necessary, accounts held in abeyance for liabilities with valid claimants pending requirements, and other similar accounts.
Evaluate valid claims; prepare DVL and check for settlement of valid claims; determine remaining cash balances per books; confirm inter-agency transfer balances with source agency; obtain latest bank statements and perform bank reconciliation; evaluate legal bases for continuing necessity; then determine proper disposition (withdraw and deposit to NT, prepare JEVs for reversion, or return unutilized balances where required).
Prepare a DV and corresponding check for withdrawal from the depository bank and deposit the balances to the National Treasury (NT), and prepare the necessary JEVs in the NGA’s books to record the reversion to the NT.
(1) Deposit withdrawn cash balances to the NT, (2) record the reversion using necessary JEVs for dormant/unused special or trust fund balances, and (3) return unutilized balances to the source agency/donors/financing entities when agreements require return of unused balances.
As a credit to the Cash in Bank account and a debit to the related accounts/s (Section 3.3).
Submit audited/verified copies of the JEVs on remittance through the Audit Team Leader (ATL) to: (1) Source Agency (if any) within 30 days after remittance; (2) Bureau of the Treasury (BTr) within 30 days with validated remittance advices/deposit slips; and (3) COA-Government Accountancy Sector (GAS) together with year-end financial reports.
It shall coordinate with the Source Agency (SA) of the reverted funds to close the related dormant accounts in the SA’s books of accounts.
Immediately submit a request for write-off of unreconciled differences/balances to COA, consistent with Section A.10 of COA Circular No. 97-001 (Feb. 5, 1997), supported by a list of available records and extent of validation, and certification and reasons why documents cannot be located.
Confirm and reconcile unliquidated balances and effect adjustments if warranted; record adjustment of the receivable account based on the copy of the JEV (debit Accumulated Surplus/(Deficit), credit appropriate receivable account); and furnish recipient/implementing agency and the GAS, COA (via ATL) audited/verified copies of the JEVs taking up reversion of the account.
Take up the reverted cash balances with a corresponding credit to Accumulated Surplus/(Deficit), and submit audited/verified copies of the JEVs through the ATL of the BTr to COA-GAS.
A Disbursement Voucher (DV) and check for withdrawal/deposit to NT, plus Journal Entry Vouchers (JEVs) to record reversion to the NT of dormant balances and unnecessary unused special/trust funds (illustrative entries are provided in Annexes B1 and B2).
They may be subjected to administrative disciplinary action under Section 122(2), Chapter 3, Title III, PD No. 1445, and Section 55, Chapter 10, Sub-title I-B, Book V of EO No. 292 (Revised Administrative Code).
Fifteen (15) days after publication in newspapers of general circulation.