Purpose
- Establishes accounting guidelines and procedures for reverting dormant cash balances, unauthorized accounts, and unnecessary special and trust funds maintained by national government agencies (NGAs) with depository banks.
Procedural Guidelines for NGAs with Pertinent Accounts
The Head of the Accounting Unit must analyze and group cash accounts into categories: a) Dormant collections in Authorized Government Depository Banks (AGDBs). b) Cash balances without specific authority or legal basis. c) Authorized accounts maintained in non-AGDBs. d) Funds with no valid claimants or unnecessary for project purposes. e) Cash balances for valid liabilities pending requirements. f) Other similar cash balances.
Agency officials must: a) Evaluate valid claims. b) Prepare Disbursement Vouchers (DV) and checks for valid claims. c) Determine remaining cash balances per books. d) Confirm balances in inter-agency transfers. e) Obtain latest bank statements and reconcile with books. f) Assess legal basis and necessity of accounts. g) Dispose of remaining cash by:
- Withdrawing and depositing balances to the National Treasury (NT).
- Preparing Journal Entry Vouchers (JEVs) for reversion.
- Returning unutilized balances to source agencies or donors if agreements so require.
Accounting entry for remittance:
- Debit related accounts, credit Cash in Bank.
Agencies must submit audited JEVs to: a) Source Agency (SA) within 30 days. b) Bureau of the Treasury (BTr) with deposit proofs within 30 days. c) Commission on Audit (COA) with year-end reports.
Implementing Agency must coordinate with SA to close dormant accounts.
For unreconciled balances lacking documentation, agencies must request write-off from COA with supporting evidence.
Source Agency Responsibilities
- Confirm and reconcile unliquidated balances with recipient agencies.
- Adjust accounts upon receipt of JEVs from recipients.
- Furnish recipient agencies and COA with verified JEVs.
Bureau of the Treasury Duties
- Upon receipt of verified JEVs and bank abstracts: a) Recognize reverted amounts as credits to Accumulated Surplus/(Deficit). b) Submit verified JEVs to COA.
Illustrative Accounting Entries
- Annexes provide sample accounting entries and required supporting documents for recording reversion transactions.
Administrative Sanctions
- Non-compliance by officials/employees, including agency heads, may result in disciplinary action under relevant administrative codes and executive orders.
Repealing Clause
- All inconsistent circulars, memoranda, and issuances are repealed or modified as necessary.
Effective Date
- The Circular takes effect 15 days after publication in newspapers of general circulation.