Commission On Audit Office of Budget and Management Ministry of Finance
Commission On Audit Office of Budget and Management Ministry of Finance
Commission On Audit Office of Budget and Management Ministry of Finance
SUBJECT : Guidelines and Procedures in the segregating the accounting for financial
transaction pertaining to the old administration from those of the new administration
and establishing March 31, 2986 as cut-off date
1.0 Rationale
2.0 Objective
2.2 To fix responsibility and accountability in the handling of government funds and
properties from January 1 to March 31, 1986 and from April 1, 1986 thereafter.
3.0 Coverage
This Circular shall apply to all funds maintained by local government units such as:
a. General Fund
b. Infrastructure Fund
c. Municipal Development Fund
d. Special Education Fund
e. Trust Funds
4.0 Procedures/Guidelines
4.1 All books of accounts shall be closed on March 31, 1986 properly ensuring that all
transactions up to that date, including the necessary adjustments/corrections shall
have been duly taken up.
4.2 New sets of books shall be opened for financial transactions starting April 1, 1986.
4.3 The balances of assets, liabilities and surplus accounts after the books had been
closed as of March 31, 1986 shall be forwarded to the new sets of books.
4.5 All Special Journal Vouchers affecting the transfer of balances, stated above shall
be submitted to the unit auditor for review before they are taken up in the books.
4.6 The interim quarterly trial balances (pre- and post-closing) and supporting
statements and documents as of March 31, 1986 duly verified by the unit auditor
shall be submitted not later than April 20,1986 to the following:
On December 31, 1986, the usual financial statements and supporting documents
shall be prepared covering the nine-month period from April 1, 1986 and a
consolidation for a twelve-month period from January 1, 1986 shall likewise be
made with the same distribution as above.
4.7 The following temporary accounts are hereby created to identify the surplus
accounts accumulate during the first quarter of 1986.
(Original Signed)
TEOFISTO T. GUINGONA, JR.
Chairman
Commission on Audit