COA C97 002
COMMISSION ON AUDIT CIRCULAR NO. 97-002
February 10, 1997
TO
: All Heads of Departments, Bureaus, Offices, Agencies and Instrumentalities of the National Government, Heads of Local Government Units, Managing
Heads of Government-Owned Or Controlled Corporations, including their
Subsidiaries, COA Directors, COA Auditors, and All Others Concerned.
SUBJECT : Restatement with amendments of the rules and regulations on the granting, utilization and liquidation of cash advances provided for under COA Circular
No. 90-331 dated May 3, 1990.
1.
RATIONALE
The resort to the cash advance system despite certain problems has been recognized as a facilitative tool in the financial operations of the government. There is therefore a need to continually update the pertinent regulations in order to provide for a more efficient and effective control over the granting, utilization and liquidation of cash advances. 2.
GENERAL PRINCIPLES
Ideally, cash should be handled under the general principles of the imprest system, to wit:
1. Daily receipts on collections must be deposited intact with the proper bank.
2. All payments must be made by check.
3. Only payments in small amounts may be made through the petty cash fund.
Replenishment of the petty cash fund shall be equal to the total amount of expenditures made there from.
In practice, however, there are certain instances when it may be very difficult, impractical or impossible to make payments by check. In such a case, payments may be made by the disbursing officer in the form of cash through his cash advance.
3.
DEFINITIONS AND SCOPE
Cash Advance shall be of two types, namely, the regular cash advances, and the special cash advances.
3.1
Regular cash advances are those granted to cashiers, disbursing officers, paymasters, and/or property/supply officers for any of the following purposes:
3.1.1
Salaries and Wages
3.1.2
Commutable allowances
3.2
3.1.3
Honoraria and other similar payments to officials and employees
3.1.4
February 10, 1997
TO
: All Heads of Departments, Bureaus, Offices, Agencies and Instrumentalities of the National Government, Heads of Local Government Units, Managing
Heads of Government-Owned Or Controlled Corporations, including their
Subsidiaries, COA Directors, COA Auditors, and All Others Concerned.
SUBJECT : Restatement with amendments of the rules and regulations on the granting, utilization and liquidation of cash advances provided for under COA Circular
No. 90-331 dated May 3, 1990.
1.
RATIONALE
The resort to the cash advance system despite certain problems has been recognized as a facilitative tool in the financial operations of the government. There is therefore a need to continually update the pertinent regulations in order to provide for a more efficient and effective control over the granting, utilization and liquidation of cash advances. 2.
GENERAL PRINCIPLES
Ideally, cash should be handled under the general principles of the imprest system, to wit:
1. Daily receipts on collections must be deposited intact with the proper bank.
2. All payments must be made by check.
3. Only payments in small amounts may be made through the petty cash fund.
Replenishment of the petty cash fund shall be equal to the total amount of expenditures made there from.
In practice, however, there are certain instances when it may be very difficult, impractical or impossible to make payments by check. In such a case, payments may be made by the disbursing officer in the form of cash through his cash advance.
3.
DEFINITIONS AND SCOPE
Cash Advance shall be of two types, namely, the regular cash advances, and the special cash advances.
3.1
Regular cash advances are those granted to cashiers, disbursing officers, paymasters, and/or property/supply officers for any of the following purposes:
3.1.1
Salaries and Wages
3.1.2
Commutable allowances
3.2
3.1.3
Honoraria and other similar payments to officials and employees
3.1.4