QuestionsQuestions (COA CIRCULAR NO. 2006-01)
It recognizes that governing boards of GOCCs/GFIs can appropriate amounts for extraordinary and miscellaneous expenses, but prior COA issuances mainly covered national government agencies. Thus, COA issued rules specifically for government corporations to regulate these expenditures and prevent irregular, unnecessary, excessive, extravagant, or unconscionable use of government funds.
It applies to all GOCCs, GFIs, and their subsidiaries.
Extraordinary and miscellaneous expenses and other similar expenses such as discretionary, business development expenses, representation expenses, and like expenditures, as long as their nature/purpose pertains to the listed categories or similar disbursements.
No. The list is not exclusive and other similar disbursements may be included if they fall within the contemplation of extraordinary and miscellaneous expenses.
Examples include: (a) meetings, seminars and conferences; (b) official entertainment; (c) public relations; (d) educational, athletic and cultural activities; (e) contribution to civic and charitable institutions. Others include membership fees and subscriptions.
The amount authorized in the corporate charter of the GOCC/GFI is the ceiling. If authority is derived from the GAA instead, then the amounts fixed thereunder are the ceiling.
Payment must be strictly on a non-commutable or reimbursable basis.
Claims for reimbursement must be supported by receipts and/or other documents evidencing the disbursement.
No. It expressly states that no portion of the amounts appropriated shall be used for salaries, wages, allowances, intelligence, and confidential expenses, which are covered by separate appropriations.
It takes effect immediately upon adoption, which was January 3, 2006.
The authority derived from the General Appropriations Act (GAA) and the amounts fixed thereunder will be the ceiling.
Because COA’s constitutional mandate includes promulgating accounting and auditing rules and regulations to ensure proper use of government funds; the Circular aims to control and regulate such expenditures within allowable limits.
Any and all issuances inconsistent with the Circular are amended or repealed accordingly.
For example, membership in the Integrated Bar of the Philippines is explicitly covered.
It supports accountability and auditability by requiring documentary proof of actual disbursements, reducing the risk of irregular or unsupported spending.