Question & AnswerQ&A (COA Circular No. 2015-004)
The primary purpose of COA Circular No. 2015-004 is to prescribe the guidelines and procedures on the submission of year-end financial statements and other related reports/schedules in printed and digital copies for inclusion in the Annual Financial Report (AFR) for Government-Owned and Controlled Corporations (GOCCs) starting Fiscal Year 2014.
The Government Accountancy Sector (GAS) was assigned to prepare the Annual Financial Report (AFR) for GOCCs starting Fiscal Year 2014, taking over the function from the Corporate Government Sector (CGS).
The Chief Accountant/Head of Accounting Unit must submit the required year-end financial statements and related reports to the Government Accountancy Office (GAO), GAS, and the Supervising Auditor (SA)/Audit Team Leader (ATL) on or before February 14 of each year. For Water Districts (WDs), the COA Regional Office submits summarized financial statements by province and region to GAS not later than May 15.
GOCCs must submit the following reports: Pre-closing Trial Balance, Post-closing Trial Balance, Comparative Detailed Statement of Financial Position, Comparative Statement of Cash Flows (Direct Method), and Notes to Financial Statements, among others.
The Chief Accountant/Head of Accounting Unit of the GOCC is responsible for ensuring that the financial reports submitted to GAS are the same as those submitted to the Supervising Auditor (SA)/Audit Team Leader (ATL) for audit and preparation of the Annual Audit Report (AAR).
Revisions on submitted financial statements must be communicated and finalized not beyond March 31 to avoid discrepancies between the Annual Audit Report (AAR) and the Annual Financial Report (AFR). Revisions after March 31 are accepted only if justified and considered by the SA/ATL in the AAR.
Water Districts (WDs) must submit their required reports to the Supervising Auditor (SA)/Audit Team Leader (ATL) and the COA Regional Office (RO) concerned by February 14 for preparation of summarized financial statements. The COA RO then submits these summarized statements by province and region to GAS no later than May 15.
Failure to comply results in the automatic suspension of the payment of salaries and other emoluments until compliance. Violation for at least three consecutive times may result in administrative disciplinary action under Section 55, Chapter 10, Title I, Book V of Executive Order No. 292 (Administrative Code of 1987).
Cases not covered by this Circular shall be referred to the Government Accountancy Sector (GAS), Commission on Audit (COA), for resolution.
All circulars, memoranda, and other issuances or parts thereof which are inconsistent with the provisions of COA Circular No. 2015-004 are hereby rescinded, repealed, or modified accordingly.