c82-122-b Signature of Caf
c82-122-b Signature of Caf
c82-122-b Signature of Caf
TO : All Heads of Ministries, State Universities and Colleges, Schools and Hospitals,
Chiefs of Bureaus, Offices, and Agencies of National Government, including All
Regional Directors; Chief Accountants/Heads of Accounting Unit; COA Managers
and Regional Directors; COA Unit Auditors and all Others Concerned.
1.0 PURPOSE
This Circular which shall apply to all contracts involving the expenditure of public
funds by National Government Agencies is issued to:
1.1 Consolidate all guidelines regarding funds certification when entering into
contracts as provided for under Section 86 of PD 1445 and LOI 968, as
supplemented by COA Circular No. 79-122 dated December 18, 1979.
1.2 Prescribe the form of the Certificate as to Availability of Funds (CAF) for the
different contract to be entered into by the national government.
As used in this Circular, the following terms shall be understood in the sense
indicated hereunder:
2.1 Certificate as to Availability of Funds (CAF) refers to the certification made by the
proper accounting official of the agency concerned that funds have been duly
appropriated/allotted for the purpose of entering into a contract involving
expenditure of public funds and that the amount necessary to cover the proposed
contract for the current fiscal year is available for expenditure on account thereof,
as verified by the Auditor concerned, pursuant to Section 86 of PD 1445. The
CAF is required for purposes of entering into contracts for certain types of
expenditures and is an integral part of the contract. On the other hand, the
certification as to availability of funds contained in the Request for Obligation of
Allotment (ROA), is required for all types of expenditures and is the basis for
taking up all obligations incurred in the books of accounts but is not an integral
part of the contract.
2.2 Accounting Official refers to the Chief Accountant/Head of Accounting unit of any
national government agency, including state universities and colleges, schools
and hospitals.
2.5 Request for Obligation of Allotment (ROA) - is a document providing evidence for
each obligation incurred and facilitating ledger-keeping for its liquidation. (GAO
GC 40). Section C of the ROA is a subsidiary ledger where obligations incurred
and liquidations and balances are posted to support control accounts in the
General Ledger.
2.7 One-Year Contract for Capital Projects covers a capital project prosecuted for a
period of one year. One year duration would not necessarily mean
commencement on the first day to end on the last day of a current year. The
contract may start at anytime of one current year and may end in the ensuing
year. It is funded thru an Advice of Allotment issued for the current year by the
Office of Budget and Management.
2.9 Other Contracts refer to contracts that are neither multi-year nor one-year.
These include purchase orders, letter contracts, work orders and job orders.
3.1 Coverage
The following contracts entered into by heads of agencies shall be
supported by the CAF and obligated through the ROA:
3.2 Exceptions
4.1 The accounting official shall record immediately in the books of accounts all
Advices of Allotments upon receipt thereof from the OBM in accordance with
existing rules and regulations.
4.2 Subject to the existing exceptions enumerated in item 3.2 of this Circular, an
Agency Head or his duly authorized representative before entering into any
contract which involves the expenditure of public funds must first secure the
Certificate as to Availability of Funds (CAF) from the accounting official that:
b. the allotment necessary to cover the proposed contract for the current
fiscal year has been released and is available for expenditure on
account thereof, subject to verification by the Auditor concerned (Sec.
86, PD 1445):
4.3 The sum so certified shall not thereafter be made available for expenditure for
any other purpose until the obligation of the government agency concerned
under the contract is fully extinguished. (Sec. 86, PD 1445). In cases where the
sum so certified exceeds the actual cost of completed contract, the excess shall
be reverted to the Unappropriated Surplus.
4.4 In addition to accomplishing the CAF, the accounting official shall also sign the
contract as witness. Contracts not so witnessed or not supported by a CAF shall
be considered null and void. (LOI 968 and Sec. 87, PD 1445).
4.5 Simultaneously, the accounting official shall accomplish a Request for Obligation
of Allotment (ROA) to obligate the following:
b. Total amount of the contract for a one year contract for Capital Projects
and Other Contracts (item 2.7 and 2.9)
c. The amount needed quarterly for a one year contract for supply of
commodities/services to be used/rendered (item 2.8)
5.1 Section A of the ROA shall be accomplished on the basis of the Notice of Award
or its equivalent as approved by the Agency Head or his duly authorized
representative. The ROA, together with the Request for the Issuance of CAF,
shall be forwarded to the Accounting Unit.
5.2 The accounting official shall accomplish Section B of the ROA to obligate the
amount of the contract pertaining to any of the amounts specified in 4.5 hereof
and shall prepare the CAF. Thereafter, the CAF shall be forwarded to the COA
Auditor for verification.
5.3 The COA Auditor shall verify the CAF against his copy of the Advice of Allotment
and the corresponding appropriation act and the ROA. The CAF shall then be
returned to the accounting official.
5.4 The proposed contract shall be forwarded to the accounting official who shall
sign as on instrumental witness thereto. He shall then attach the CAF to the
proposed contract as an integral part hereof. Thereafter, the proposed contract,
together with the CAF, shall be forwarded to the Agency Head or his duly
authorized representative for approval, if the same is within his approving
authority. Otherwise, the contract shall be forwarded to higher or other
authorities if required under existing law and regulations.
5.5 Within five (5) days after the execution of the contract, copies of the approved
contract, together with all the supporting documents, shall be furnished the Unit
Auditor pursuant to COA Circular No. 76-34, as amended.
5.6 The CAF shall be prepared in six (6) copies to be distributed as follows:
6.3 For other contracts (item 2.9), the certificate as to availability of funds may just be
stamped on the face of the contract.
6.4 If the source of funding of the contract is a trust liability account of the
implementing agency, then it should be so specified in the CAF in the space
provided for PPA.
8.0 EFFECTIVITY