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Commission On Audit Circular No. 97-005: July 1, 1997
Commission On Audit Circular No. 97-005: July 1, 1997
97-005
July 1, 1997
SUBJECT : Amendment of COA Circular No. 86-200B dated January 3, 1986, increasing
toP10,000 and above the value of items to be categorized as Furniture,
Fixtures, Equipment, Work Animals and Books.
2.0 PURPOSE
In order to maintain adequate control over furniture, fixtures, equipment, books and
work animals costing below P10,000 and classified as Inventories-Semi-expendable
Supplies, Containers and Property, the following internal control measures and
accounting shall be instituted by the concerned agencies.
4.1 Furniture, fixtures, equipment, books and work animals costing below P10,000 per
unit of item shall be recorded as semi-expendable property or other appropriate
equivalent asset account in the concerned agency's books of accounts. In addition,
Memorandum Receipts (MRs) shall be maintained for purposes of control and
accountability.
4.2 The following accounts shall be used to record items classified as semi-expendable
property:
8-72-600 Inventories-Semi-Expendable
Supplies, Containers and
Property
8-86-600 Deferred Credits Semi-
Expendable Supplies,
Containers and Property
3-07-000 Supplies and Materials
4-36-000 Furniture, Fixture, Fixtures,
Equipment, and Books Outlay
4.3 A separate inventory-taking of all furniture, fixtures, equipment, books and work
animals classified under the category of semi-expendable Supplies, Containers and
Property and Fixed Asset accounts shall be done every year in accordance with
existing rules and regulations. Results of such inventory-taking shall be reconciled
with the books of accounts and adjustment(s), if any, shall be immediately effected.
5.0 EXCEPTIONS
5.1 Purchases and acquisition of library books and materials as well as livestock and
other non-expendable property used solely in research and development work shall
be governed by COA Circular No. 94-012 dated September 13, 1994 and COA
Circular Nos. 92-380 dated June 23, 1992 and 92-380A dated August 18, 1992,
respectively while purchases of Information Technology (IT) resources shall be
covered by COA Circular No. 97-003 dated May 22, 1997.
5.2 Request for exemptions from implementing the provisions of this Circular shall be
addressed to the Commission Proper.
7.0 EFFECTIVITY