Republic of the Philippines

COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

MEMORANDUM NO. : 2009-049

DATE: July 7, 2009

TO : Assistant Commissioner, Cluster Directors, Supervising Auditors

and Audit Team Leaders (ATL) of National Government Sector
(NGS), Regional Directors and All Others Concerned

SUBJECT: Submission of Yearend Audited Financial Statements and Reports

(FSs/Rs) for the Preparation of Annual Financial Report (AFR) of
the National Government

As stated in COA Resolution No. 2008-012 dated October 10, 2008

implementing COA Organization Restructuring, the Government Accountancy Sector
(GAS) shall prepare the AFR of the National Government based on audited financial
statements of national government agencies (NGAs). For the GAS to submit the AFR to
the President and the Congress on or before the legal deadline of September 30 of each
year, pursuant to Section 4, Article IX-D of the 1987 Philippine Constitution, hereunder
are the guidelines to be followed:

1. The combined audited financial statements, all funds, namely detailed

Statements of Income and Expenses and detailed Balance Sheet for CY
2008 of the departments, agencies and staff bureaus including the accounts
of the Regional Offices and Field/Operating Units, shall be submitted by the
Department/Agency Central Office Supervising Auditors through the
concerned Cluster Directors, NGS, together with the following:
a. Pre-closing Trial Balance
b. Post Closing Trial Balance
c. Statement of Changes in Government Equity
d. Statement of Cash Flows (Direct Method)
e. Notes to Financial Statements
f. Report of Income – National Government Books
g. Report of Income – Regular Agency Books
h. Regional Breakdown of Income
i. Regional Breakdown of Expenses
j. Schedule/Aging of Accounts Receivable
k. Schedule/Aging of Accounts Payable
l. Schedule of Public Infrastructure/Reforestation Projects
m. Statement of Allotments, Obligations and Balances (SAOB)
n. Detailed Breakdown of Obligations
o. Detailed Breakdown of Disbursements
p. List of Not Yet Due and Demandable Obligations
 The format of the SAOB (Annex A) has been revised to facilitate the
reconciliation of allotments by Agency Budget Matrix/Special Allotment
Release Order No.

It is understood that the combined audited FSs/Rs together with the

attachments enumerated in Item 1 of the Regional Offices and their
Field/Operating Units shall be submitted by the Regional Office
Supervising Auditors to the Regional Directors who shall transmit the same
to the concerned Cluster Director, NGS for further combination by
department/office.

2. Likewise, the COA Regional Directors shall submit the requirements in

Item No. 1 for stand-alone agencies as well as the main campuses of State
Universities and Colleges (SUCs) located in the regions. The audited
FSs/Rs of the main campuses shall include the accounts of their branches
and satellite offices.

3. For stand-alone agencies as well as SUCs in the National Capital Region,

the concerned Supervising Auditors shall submit through the concerned
Cluster Directors the requirements in Item No. 1 to GAS.

4. The Department/Agency Central Office Supervising Auditors shall submit

through the concerned Cluster Directors a list of consolidated significant
audit observations and recommendations (Annex B), namely:
a. Common Audit Areas, by major account/transaction
b. By Department/Agency under each Cluster

For stand-alone agencies as well as SUCs located in the regions, the

Regional Directors concerned shall submit the said audit observations and
recommendations to GAS.

5. The transmittal memorandum of the Cluster Directors/Regional Directors

concerned shall indicate that such FSs/Rs have been audited.

6. The audited financial statements and attachments shall be submitted to GAS

both in digital and printed copies not later than July 7, 2009 while the
consolidated audit observations and recommendations not later than July
31, 2009. However, the departments with highly decentralized accounting
system, namely the Departments of Public Works and Highways,
Communications and Transportation, and Education, shall submit their
combined audited financial statements and attachments not later than July
15, 2009.

For compliance.

REYNALDO A. VILLAR
Chairman
 ANNEX A
Statement of Allotments, Obligations and Balances
Department/Agency XYZ
Period Covered: January - December, 2008

1/
Particulars/ ALLOTMENTS OBLIGATIONS BALANCES
SARO No. PS MOOE CO FE TOTAL PS MOOE CO FE TOTAL PS MOOE CO FE TOTAL
A. Current Year's Allotment
1.Regular Appropriation
ABM No. BMB-C-08-000001 3,516,857,000.00 3,452,878,000.00 405,039,000.00 7,374,774,000.00 3,165,171,300.00 2,589,658,500.00 324,031,200.00 6,078,861,000.00 351,685,700.00 863,219,500.00 81,007,800.00 1,295,913,000.00
SARO No. BMB-C-08-0002703 877,899,000.00 615,723,000.00 1,493,622,000.00 790,109,100.00 492,578,400.00 1,282,687,500.00 87,789,900.00 123,144,600.00 - 210,934,500.00
SARO No. BMB-C-08-0002704 2,624,520,000.00 2,624,520,000.00 2,493,294,000.00 2,493,294,000.00 - - 131,226,000.00 131,226,000.00
-
Total Regular Appropriation 4,394,756,000.00 4,068,601,000.00 3,029,559,000.00 11,492,916,000.00 3,955,280,400.00 3,082,236,900.00 2,817,325,200.00 9,854,842,500.00 439,475,600.00 986,364,100.00 212,233,800.00 1,638,073,500.00

2.Special Purpose Funds

a. Priority Assistance Development Fund
SARO No. C-08-0002705 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 - - - -
SARO No. C-08-0002706 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 - - - -
Sub-Totals - 15,000,000.00 - 15,000,000.00 - 15,000,000.00 - 15,000,000.00 - - - -

b. Miscellaneous Personnel Benefits Fund

SARO No. C-08-0002707 16,324,000.00 16,324,000.00 16,307,676.00 16,307,676.00 16,324.00 - - 16,324.00
SARO No. C-08-0002708 8,229,640.00 8,229,640.00 8,221,410.36 8,221,410.36 8,229.64 - - 8,229.64
Sub-Totals 24,553,640.00 - - 24,553,640.00 24,529,086.36 - - 24,529,086.36 24,553.64 - - 24,553.64

c. Pension Gratuity Fund

SARO No. C-08-0002709 23,560,490.00 23,560,490.00 23,558,133.95 23,558,133.95 2,356.05 - - 2,356.05
SARO No. C-08-0002710 3,222,582.00 3,222,582.00 3,222,259.74 3,222,259.74 322.26 - - 322.26
Sub-Totals 26,783,072.00 - - 26,783,072.00 26,780,393.69 - - 26,780,393.69 2,678.31 - - 2,678.31

Total Special Purpose Fund 51,336,712.00 15,000,000.00 - - 66,336,712.00 51,309,480.05 15,000,000.00 - - 66,309,480.05 27,231.95 - - - 27,231.95

3. Other Releases
a. Automatic Appropriations
1.Retirement Life Insurance Premiuns
ABM No. BMB-C-08-00002 15,279,000.00 15,279,000.00 15,277,472.10 - - 15,277,472.10 1,527.90 - - 1,527.90
SARO No. BMB-C-08-0002711 9,281,000.00 9,281,000.00 9,280,071.90 - 9,280,071.90 928.10 - - 928.10
SARO No. BMB-C-08-0002712 4,246,000.00 4,246,000.00 4,245,575.40 - 4,245,575.40 424.60 - - 424.60
Sub-Totals 13,527,000.00 - - 13,527,000.00 13,525,647.30 - - 13,525,647.30 1,352.70 - - 1,352.70

2. Proceeds from Sale of Non-serviceable, Obsolete or Unnecessary Equipment (Sec. 12 of the General Provisions)
SARO No. BMB-C-08-0002713 5,000,000.00 5,000,000.00 3,000,000.00 3,000,000.00 - - 2,000,000.00 2,000,000.00
Sub-Totals - - 5,000,000.00 - 5,000,000.00 - - 3,000,000.00 - 3,000,000.00 - - 2,000,000.00 - 2,000,000.00
3. Customs, Duties & Taxes
SARO No. BMB-C-08-0002714 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 - - - -
Sub-Totals - 2,000,000.00 - - 2,000,000.00 - 2,000,000.00 - - 2,000,000.00 - - - - -
b. Prior Year's Continuing Appropriations2/
1. Regular Appropriation
SARO No. BMB-C-08-0002715 10,000,000.00 20,000,000.00 30,000,000.00 9,500,000.00 18,000,000.00 27,500,000.00 - 500,000.00 2,000,000.00 2,500,000.00
Sub-Totals - 10,000,000.00 20,000,000.00 - 30,000,000.00 - 9,500,000.00 18,000,000.00 - 27,500,000.00 - 500,000.00 2,000,000.00 - 2,500,000.00

2. Special Purpose Funds

a. Calamity Fund
SARO No. C-08-0002716 327,500,000.00 327,500,000.00 327,498,250.00 327,498,250.00 - - 1,750.00 1,750.00
SARO No. C-08-0002717 137,254,000.00 137,254,000.00 137,253,750.00 137,253,750.00 - - 250.00 250.00
Sub-Totals - - 464,754,000.00 - 464,754,000.00 - - 464,752,000.00 - 464,752,000.00 - - 2,000.00 - 2,000.00

Total Other Releases 13,527,000.00 12,000,000.00 489,754,000.00 - 515,281,000.00 13,525,647.30 11,500,000.00 485,752,000.00 - 510,777,647.30 1,352.70 500,000.00 4,002,000.00 - 4,503,352.70

Total Current Year's Allotments 4,459,619,712.00 4,095,601,000.00 3,519,313,000.00 - 12,074,533,712.00 4,020,115,527.35 3,108,736,900.00 3,303,077,200.00 - 10,431,929,627.35 439,504,184.65 986,864,100.00 216,235,800.00 - 1,642,604,084.65
 Statement of Allotments, Obligations and Balances
Department/Agency XYZ
Period Covered: January - December, 2008

1/
Particulars/ ALLOTMENTS OBLIGATIONS BALANCES
SARO No. PS MOOE CO FE TOTAL PS MOOE CO FE TOTAL PS MOOE CO FE TOTAL

3/
B. Prior Year's Allotment
(Alloted Continuing Appropriations)
1.Regular Appropriation
ABM No. BMB-C-07-000001 1,250,000.00 5,000,000.00 6,250,000.00 - 1,212,500.00 4,000,000.00 5,212,500.00 - 37,500.00 1,000,000.00 1,037,500.00
SARO No. BMB-C-07-0001700 1,000,000.00 1,000,000.00 - 850,000.00 850,000.00 - 150,000.00 - 150,000.00
Total Regular Appropriation - 2,250,000.00 5,000,000.00 - 7,250,000.00 - 2,062,500.00 4,000,000.00 - 6,062,500.00 - 187,500.00 1,000,000.00 - 1,187,500.00

2.Special Purpose Funds

a. Contingent Fund
SARO No. C-07-0001701 25,000,000.00 25,000,000.00 24,500,000.00 24,500,000.00 - 500,000.00 - 500,000.00
Total Special Purpose Funds - 25,000,000.00 - - 25,000,000.00 - 24,500,000.00 - - 24,500,000.00 - 500,000.00 - - 500,000.00

Total Prior Year's Allotments - 27,250,000.00 5,000,000.00 - 32,250,000.00 - 26,562,500.00 4,000,000.00 - 30,562,500.00 - 687,500.00 1,000,000.00 - 1,687,500.00

Grand Total 4,459,619,712.00 4,122,851,000.00 3,524,313,000.00 - 12,106,783,712.00 4,020,115,527.35 3,135,299,400.00 3,307,077,200.00 - 10,462,492,127.35 439,504,184.65 987,551,600.00 217,235,800.00 - 1,644,291,584.65

Notes: 1 / In case details for obligations by allotment per ABM/SARO are not available, total/sub-totals for each group may be shown
2 / Allotments chargeable to 2007 GAA released in CY 2008
3/ Unobligated balance of allotments in CY 2007 extended in CY 2008
 Annex B

Significant Audit Observations and Key Recommendations

AUDIT OBSERVATIONS RECOMMENDATIONS

I. Common Audit Areas

A. Cash

B. Cash Advances
C. Advances to Procurement Service

D. Receivables
E. Inventories
F. Prepayments
G. Investments
H. Property, Plant and Equipment

I. Income
J. Expenses

Notes:1. Please add additional accounts, where necessary.

2. Classify observations and recommendations as to financial, compliance and value
for money audits.

II. By Department

Cluster A - General Public Services I

1. Office of the President

2. Office of the Vice President

3. Department of Finance

A. Office of the Secretary

B. Bureau of Customs

C. Bureau of Internal Revenue

Note: Please add other departments/agencies as necessary and similar format for Clusters B,
C and D and Regional Offices