COMMISSION ON AUDIT CIRCULAR NO.

86-253 January 31, 1986

TO : Heads of Ministries, Bureaus, Offices and Local Government Units; Managing

Heads of Government Owned and/or Controlled Corporations, Boards and
Commissions; COA Managers and Regional Directors; Provincial, City and
Municipal Treasurers; Chief Accountants and Heads of Accounting Units; COA
Auditors; and Others Concerned.

SUBJECT : Audit of Journal Vouchers/Special Journal Vouchers

Reports reveal that some irregularities involving public funds have been effected thru the
improper use of Journal Vouchers/Special Journal Vouchers (JVs/SJVs). JVs/SJVs have been
misused to conceal overdrafts, unliquidated cash advances, uncollectible receivables, etc., or
otherwise to manipulate the accounts for illegal ends.

In order to minimize if not prevent this form of irregularity, all COA Auditors concerned
are directed to require the submission to their offices for examination of all JVs/SJVs before
these are recorded in the books of accounts of their respective agencies. The examination of
these JVs/SJVs shall be the responsibility of the Unit Head of the Auditing Unit concerned.

The JVs/SJVs and their related accounts shall however be still subject to the usual post-
audit, including other supplemental audit procedures necessary to determine the regularity of
the transactions involved.

This circular shall take effect immediately. All COA Circulars, Memoranda and
regulations inconsistent herewith are hereby amended or superseded accordingly.

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

(SGD.) HERMOGENES P. POBRE, Commissioner