Question & AnswerQ&A (COA CIRCULAR NO. 2006-01)
The main purpose is to prescribe rules and regulations for government-owned and controlled corporations/government financial institutions (GOCCs/GFIs) to regulate the incurrence of extraordinary and miscellaneous expenses, ensuring the prevention or disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures or uses of government funds.
This circular applies to all government-owned and controlled corporations (GOCCs), government financial institutions (GFIs), and their subsidiaries.
The circular covers extraordinary and miscellaneous expenses and other similar expenses such as discretionary, business development expenses, representation expenses, which pertain to meetings, seminars, conferences, official entertainment, public relations, educational, athletic and cultural activities, contributions to civic and charitable institutions, memberships in government and accredited professional organizations, subscriptions to professional journals, and other similar expenses not supported by regular budget allocation.
No, the list provided is not exclusive and other similar disbursements that can be categorized as extraordinary and miscellaneous expenses may also be included.
The amount authorized in the corporate charters of GOCCs/GFIs sets the ceiling for disbursement. If no such authority exists in the charter, the limit is based on the amounts fixed under the General Appropriations Act (GAA).
Payment should be strictly on a non-commutable or reimbursable basis.
Claims must be supported by receipts and/or other documents evidencing the disbursements.
No, these amounts cannot be used for salaries, wages, allowances, intelligence, or confidential expenses as these are covered by separate appropriations.
All previous issuances inconsistent with this circular are amended or repealed accordingly.
This circular took effect immediately upon its adoption on January 3, 2006.