COMMISSION ON AUDIT CIRCULAR NO.

80-65-A January 22, 1980

TO : All COA Managers Concerned; COA Regional Directors, Provincial and City
Auditors; Provincial, City and Municipal Treasurers; and Others Concerned.

SUBJECT : Trial Balances, Documents, and Supporting Schedules and Statements to be

submitted to the Local Government Audit Office, Commission on Audit, in
Connection with the Preparation of the Annual Financial Report of the
Commission for the Local Governments.

This Circular is issued to prescribe amendments to COA Circular No. 77-65 dated
November 28, 1977 regarding financial statements and supporting schedules and documents
to be submitted to the Commission on Audit in connection with the preparation of the Annual
Financial Report of the Commission for the local governments.

Beginning with the fiscal year ending December 31, 1979, and every year thereafter,
Provincial, City and Municipal Treasurers shall submit to the Local Government Audit Office,
Commission on Audit, through the Provincial and City Auditors concerned, not later than the
fourteenth day of February following the end of the fiscal year, the following trial balances,
documents and supporting schedules and statements, wherever applicable to the fund
concerned, for each of the funds maintained by the local governments:

1. Post-closing Trial Balance for the year ended December 31(Original), supported by
the following:

a. Post-closing Report of Revenues and Receipts, Prov. Form No. 215(A)

(Original), to support the Income Account (0-91).

b. Post-closing Report of the Status of Appropriations, Allotments and

Expenditures, Prov. Form No. 218(A) (Original), to support the
Expenditures Accounts (0-90 and 8-90)

c. Subsidiary ledger balances of assets, liabilities and surplus shown short-

extended on the trial balance, or in separate schedules when there are
more than five (5) sub-accounts. The Current Surplus Unappropriated -
Balance at the End of the Year Account (8-92-110) should show the
following subsidiary balances short-extended on the trial balance:

(1) Balance of the unappropriated portion of the current surplus of public

utilities, markets and slaughterhouses, and other economic enterprises;
and loans, interests, bond issues and other contributions for specific
purposes.

(2) Other restricted portions of the unappropriated surplus, such as

Certificates of Indebtedness.

d. Balance Sheet as of December 31

 e. Statement of Operations for the fiscal year ended December 31

2. Pre-closing Trial Balance for the year ended December 31(Original) supported by
the following:

a. Pre-closing Report of Revenues and Receipts, Prov. Form No. 215 (A)
(Original), to support the Income/Estimated Revenue Accounts (0-91)

b. Pre-closing Report of the Status of Appropriations, Allotments and

Expenditures, Prov. Form No. 218 (A) (Original) to support the
Appropriations, Allotments and Expenditures Accounts (0-93, 8-90 and 8-
90)

c. Proof of Correctness of the Pre-closing Trial Balance

d. Closing Special Journal Vouchers (clear copies)

e. Computation Statement of Aids and Transfers (Consolidated for the year)

f. Computation Statement of Excess Additional Real Property Taxes from the

Special Education Fund

g. Statement of contributions to the bgry. development fund under P.D. No.

144

h. Reconciliation Statement of barangay deposits

i. Statement of 20% Development Fund under P.D. No. 144

j. Analysis of the Cash Account(Sec. 289, Revised Manual of Instructions to

Treasurers, 1954 Edition)

The consolidation of the Post-closing Trial Balances of municipalities by the Auditors

concerned shall be discontinued. For purposes of the computerized data processing of the
trial balances and subsidiary schedules, the following procedures should be strictly observed:

1. The fund Name and Code, and the Rurban Code for the Province/City
Municipality should be shown on the headings of the trial balances and the
subsidiary schedules for income, P.F. 215 (A), and expenditures, P.F. 218 (A).

2. The subsidiary schedule for income, Prov. Form No. 215(A), should show the
name and the account code of each subsidiary income account classification.

3. The subsidiary schedule for appropriations, allotments and expenditures, Prov.

Form No. 218 (A), should show the name and the account code of each
subsidiary expenditure account classification. Expenditures from continuing
appropriations shall be shown under separate captions from expenditures from
current appropriations. Expenditures shall be arranged according to functional
classification under each caption. Non-office expenditures shall be shown after
the office expenditures under each functional classification.
 The Provincial or City Auditor concerned shall verify all the foregoing trial balances,
documents and supporting schedules and statements, and in addition, prepare the following
statements to be attached to the trial balances, wherever applicable:-

1. Reconciliation Statements of Municipal Deposits, Inter-fund transfer, Inter-Local

Government Transfers, National Aids and Internal Revenue Allotments; and

2. Statement of Long Term Liabilities which shall be shown under the following
columns:

a. Name of the lending institution

b. Beginning Balances

c. Loans Received and/or Adjustments for loan increases

d. Loans Paid and/or Adjustments for loan reductions

e. Ending Balance

A copy of Prov. Form 145, Report of Provincial Assessor (Statement of Taxable and
Exempt Assessments of Real Property) for the period ended December 31 shall also be
attached to the trial balances.

All of the foregoing shall be forwarded to the Local Government Audit Office on or
before March 1, following the close of the fiscal year.

All existing rules and regulations inconsistent with this Circular are hereby revoked or
amended accordingly.

Provincial and City Auditors are requested to furnish copies of this Circular to all
treasurers under their respective jurisdictions.

(SGD.) FRANCISCO S. TANTUICO, JR., Acting Chairman

Copy furnished:

The Ministry of Finance

Manila