COMMISSION ON AUDIT CIRCULAR NO.

93-382A March 17, 1993

TO

SUBJECT:

I.

The General Manager, Metro Manila Authority; Provincial Governors, City and
Municipal Mayors; the Deputy General Manager for Finance, Metro Manila
Authority; Local Treasurers, Provincial, City Municipal, and Circuit Municipal Audit
Units; and All Others Concerned.
This Circular is issued to amend COA Circular No. 92-382 dated July 3, 1992
which prescribes Accounting and Auditing Rules and Regulations for the
implementation of the provisions of Republic Act No. 7160, the Local
Government Code of 1991. The amendments extend the coverage of certain
provisions of the Circular, identify exceptions, clarify some definitions, and
provide additional accounting instructions.

AMENDATORY PROVISIONS:

1.
follows:

Section 22 of COA Circular No. 92-382 dated July 3, 1992 is amended to read as

Section 22. - Definition of the idle funds. - Idle funds shall mean cash which the local
government unit can freely invest in government securities and/or fixed term deposits with
authorized government depository banks, after considering provisions for the coverage of
regular and recurring operating expenses like salaries, wages, repairs and maintenance,
inventories and supplies, debt servicing, etc., as well as programmed disbursements for capital
outlays and other non-recurring expenses, within the context of the cash operating cycle of the
local government unit. Unremitted collections for, and funds set aside for the payment of
obligations to, other entities, government, and private, shall not form part of the idle funds.
2.

Section 36, second sentence, of the Circular is amended to read as follows:

Unless otherwise provided by law, the accountant concerned shall at least once a week
prepare the disbursement vouchers covering such remittances and the supporting statements
containing the complete descriptions of the collections being remitted.
3.

Section 48(a) of the Circular is amended to read as follows:

(a) Cash advances shall be granted only to permanently appointed officials and
employees and elected officials.
4.
The list of subsidiary ledger accounts sub-codes for special accounts in the General
Fund (Annex L, No. 1 of the Circular) is amended as follows:
Special Account
General Fund Proper
Market Operation
Slaughterhouse Operation
Waterworks System
Electric Light and Power System
Telephone System

Sub-Code
(01)
(51)
(52)
(53)
(54)
(55)

Toll Roads, Bridges and Ferries

Transportation System
Hospital
School
Sports Center
Recreational Center
Housing Projects
Convention/Conference Center
Parking Space
Ice Plant
Cemetery
Development Project, Agricultural
Development Project, Commercial
Development Project, Industrial
Development Project, Community
Development Project, Tourism
Development Project, Health
Development Project, Education
Loans
Interests
Bond Issues
5.
Circular.

(56)
(57)
(58)
(59)
(60)
(61)
(62)
(63)
(64)
(65)
(80)
(81)
(82)
(83)
(84)
(85)
(86)
(87)
(91)
(92)
(93)

The Journal and Analysis of Obligation is revised as per attached Annex A of this

6.
Procedures for year-end adjusting and closing of accounts is prescribed under Annex
B of this Circular.
II.

REPEALING CLAUSE

All COA Circulars, Memoranda and other issuances inconsistent herewith are hereby
revoked or modified accordingly.
III.

EFFECTIVITY
This Circular shall take effect immediately.

(SGD.) EUFEMIO C. DOMINGO, Chairman

(SGD.) ROGELIO B. ESPIRITU, Commissioner
(SGD.) SOFRONIO B. URSAL, Commissioner