QuestionsQuestions (COA Circular No. 2015-002)
It provides supplementary guidelines on (a) preparation of financial statements and other financial reports for submission to COA and oversight agencies for periods ending December 31, 2014 and onwards; (b) the coding structure for CY 2014 financial statements in accordance with the UACS; and (c) implementation of PPSAS using IPSAS transitional provisions.
Public sector entities such as NGAs and GOCCs maintaining Special Accounts in the General Fund (SAGF). GOCCs not maintaining SAGF and LGUs are excluded and will be covered by separate guidelines.
“Entities” refer to NGAs and GOCCs maintaining SAGF. They may be grouped as a single entity, e.g., central and regional offices including operating units, for reporting purposes.
Statement of Financial Position; Statement of Financial Performance; Statement of Cash Flows; Statement of Changes in Net Assets/Equity; Statement of Comparison of Budget and Actual Amounts; and Notes to Financial Statements (summary of significant accounting policies and other explanatory notes).
All NGAs must submit to COA Auditors and the Government Accountancy Sector (GAS) consolidated detailed financial statements and trial balances consolidated by fund cluster, for the funds enumerated in paragraph 4.2.
Regular Agency Fund; Foreign Assisted Projects Fund; Special Accounts—Locally Funded/Domestic Grants Fund; Special Accounts—Foreign Assisted/Foreign Grants Fund; Internally Generated Funds (Off-Budgetary Funds—Retained Income Funds); Business Related Funds; Trust Receipts/Inter-Agency Transferred Funds (IATF).
NGAs are required to upload soft copies of the required financial statements at the COA website (www.coa.gov.ph).
They must submit to COA Auditors and GAS the trial balances and financial statements stated in the Circular (for SAGF as required by law) and upload soft copies at the COA website.
BFARs prescribed under COA-DBM Joint Circular No. 2014-1 must also be submitted to GAS, COA and the Agency’s COA Auditor, in addition to the financial statements and reports.
They must be submitted on or before February 14, 2015, with printed copies of detailed annexes (Al, B1 and C1) submitted and electronic copies uploaded to the COA website.
Because of significant changes due to first-time adoption of PPSAS in CY 2014, comparative information for CY 2013 and CY 2014 is not required; CY 2014 financial statements shall reflect CY 2014 balances only.
The effects of changes in accounting policies/estimates for all accounts resulting from first-time adoption must be disclosed.
Only borrowing costs incurred after January 1, 2014 that meet capitalization criteria should be capitalized.
Entities with controlled entities or joint ventures required to prepare consolidated financial statements may have up to three years from January 1, 2014 to fully eliminate balances and transactions between entities within the economic entity.
Determine whether leases are finance or operating leases. A finance lease should be recognized retrospectively, but if the entity lacks information to apply retrospectively, it should apply amendments as of January 1, 2014 using fair values and recognize differences in accumulated surplus/(deficit).
Existing public infrastructure assets should be recognized using data from the Registry of Public Infrastructures (RPIs) previously maintained, if practicable; RPIs shall no longer be maintained. If not practicable, an alternative (depreciated replacement cost approach) may be used. Entities may be allowed up to five years starting January 1, 2014 to fully comply with PPSAS 17.
Adjust the opening balance of accumulated surplus/(deficit) for CY 2014 to recognize provisions, if applicable and practicable; if not practicable, disclose the fact in the notes to financial statements.
For taxation revenue, revenue-generating entities are not required to change accounting policies for reporting periods beginning January 1, 2014 and five years thereafter. For other non-exchange transactions, entities are not required to change policies for three years. Changes within allowed periods require disclosure and a plan; COA approval may be needed for class-by-class policy changes.
It takes effect immediately. All circulars, memoranda and other issuances or parts inconsistent with it are repealed/rescinded/modified accordingly.