REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City

CIRCULAR
No. 2024-05
Date MAR T4 Z02

TO All Heads of Departments, Bureaus, Commissions, Boards, and Offices

of the the National Government Agencies including State Universities
and Colleges; Government Corporations including their Subsidiaries;
Water Districts; Government Financial Institutions; Local Government
Units; Chiefs of Financial Management and Service; Chief
Accountants/Heads of Accounting Units; Commission on Audit (COA)
Assistant Commissioners, Directors and Auditors; and All Others
Concerned

SUBJECT Expansion of the Coverage of Advertising Expenses and Recognition

of Accounts to Include those Relative to the Dissemination of
Information Connected with the Official Functions and Programs of
Government Agencies, through Social Media Platforms

1.0 RATIONALE

I. I Section 53.6, Rule XVI of the Implementing Rules and Regulations (IRR) of
Republic Act (RA) No. 9184' provides that media documentation, advertisement, or
announcement through television, radio, newspaper, internet and other communication media,
may be procured through negotiated procurement from a particular supplier, contractor or
consultant.

1.2 Considering that the rapid progression into the digital era is inevitable, especially
seen in the surge of using virtual platforms and digital payments during the pandemic, it is
necessary to update this Commission's guidelines on the proper utilization of funds of agencies
that use social media to post advertisements and disseminate agency information, including
digitalization of agencies' processes, records, and database through electronic governance.

1.3 This Circular is issued pursuant to this Commission's exclusive authority to define
the scope of its audit and examination, establish the techniques and methods required therefor,
and promulgate accounting and auditing rules and regulations, including those for t e
prevention and disallowance of irregular, unnecessary, excessive, e travagant,

1 Government Procurement Refonn Act.

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unconscionable expenditures, or uses of government funds and properties, as expressly stated
under Section 2(2), Article IX-D of the 1987 Philippine Constitution.

2.0 COVERAGE

This Circular shall apply to all kinds of advertising procured through negotiated
procurement under Section 53.6, Rule XVI of the IRR of RA No. 9184 by any branch, agency,
department, bureau, office, or instrumentality of the government, including government
corporations, government financial institutions, state universities and colleges, and local
government units.

3.0 DEFINITION OF TERMS

(a) Advertisement2 pertains to contents that are required in the issuance of agency
guidelines, the conduct of public biddings, the dissemination of important public
announcements, and the promotion of the agency's trade and business.

(b) Content3 means any text, photos, videos, or a combination of such, from the
agency or third party entities, whether paid or made gratuitously, created by the
agency or in its behalf, which is aligned to its mission and vision, for the benefit
of the public.

(c) Boosted post4 is a regular post existing on the agency's feed, timeline, home page
or business page, that is promoted by the agency through a paid advertisement to
ensure that the post will reach a wider range of audience based on a set of
parameters.

(d) Social media applications5 are downloadable applications that can be stored in
one's computer, smart phone, tablet, or other similar gadgets. They are virtual
communities that let users interact with one another by sharing information,
messages, and contents, and posting reactions and comments thereon, free of
charge.

(e) Electronic wallets or e-wallets6 are wallets in digital form that can be used to
purchase goods and services sold on any available platform, whether virtual or
in-person, such as Paymaya, Gcash, Grabpay and the like.

(f) Electronic Payment or e-payment' refers to the disbursement of money or

equivalent electronic representations of legal tender, for purposes of paying
government expenditures, solely through electronic means as opposed to the use
of cash, check, or physical notes to accomplish the same. This includes the
manner by which an obligation is extinguished by means of sending instruction

- https://www.investopedia.com/terms/a/advertising-costs.asp, date accessed: October 3, 2023.

3 https://www.lawinsider.com/dictionary/social-media-content, date accessed: October 3, 2023.
4
https://www.facebook.com/business/help/24020896608058 l ?id=352109282177656, date accessed: Octob r 3, 2023.
https://www.igi-global.com/dictionary/moocs/52294. date accessed: October 3, 2023.
https://capital.com/e-wallet-definition, date accessed: October 3, 2023.
7 As defined under Section 3.0(7) of COA Circular No. 2021-014 dated December 22, 2021, on the Guide ines on the use of

Electronic Collection (e-collection) and Electronic Pt

_ ment (e-payment) for Government Transactions.
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 for the debit of the government entity's account and the corresponding credit to
the payee's account.

4.0 GUIDELINES

4.1 Items 4.0 and 5.3 ofCOA Circular No. 2021-014 dated December 22, 2021 are
hereby adopted insofar as e-payments are concerned. The directives under said
provisions shall be strictly complied with considering that payments under this
mode do not require the personal appearance of the payee, whose account the
government funds are directly credited.

4.2 The provision on "Advertising Expenses" under Item 9.1.3.5 of COA Circular
No. 2012-001 dated June 14, 2012 is hereby amended to read as follows:

9.1.3.5 Advertising Expenses

General Guidelines

One of the austerity measures adopted under

Administrative Order No. 103 dated August 31, 2004 is
the suspension, among others, of paid media
advertisements, except those required in the issuance of
agency guidelines, rules and regulations, the conduct of
public bidding and the dissemination of important public
announcements.

Advertisements or contents posted on social media

applications, like Facebook, Instagram, Twitter, and the
likes, by the verified official account of the agency, shall
be allowed following the guidelines under Section
V(D)6)a)i)e), Annex Hof the 2016 Revised IRR of
RA No. 9184.

The use of government-funded social media campaigns

for political objectives or to promote partisan interests by
government officials and agencies is strictly prohibited
and may result in administrative and/or criminal charges.

To promote transparency and accountability, all

government-funded social media campaigns should be
publicly disclosed. The details of the campaigns,
including the purpose, scope, target audience, and cost,
should be made available to the public through
overnment websites
media platforms.

8 Ibid.

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 Additional Documentary Requirements Depending on
Advertisement Media

O Bill/Statement of Account, or monthly progress

billings, which may include electronic invoice or
screenshots of electronic payment covering total
cost of activities, fees, inclusive of all applicable
government taxes and charges based on
deliverables agreed in the agency's work plan.
Screenshots of electornic payment may be
allowed if accompanied with a Certification
issued by an authorized agency officer9
certifying the veracity of the content of the
screenshots.
D Copy of newspaper clippings evidencing
publication and/or CD in case of TV/Radio
commercial
O Complete link of the advertisement or content
posted on social media
□ Market study/Feasibility study confirming that
the supplier, contractor or consultant could
undertake the project at more advantageous
terms
□ Market study/Feasibility study of the social
media applications best suited to the agency's
needs
D Agency's Monitoring and Evaluation Report of
social media services rendered by the
contractor/consultant complying with
requirements, goals, initiatives, campaign, etc_,
of the agency within a prescribed timeframe
O Report on advertising/campaign through social
media applications duly reviewed and approved
by the agency containing but not limited to the
following:
■ Content of advertising/information
disseminated in various social media
applications
■ Data relative to reactions/perception/
comments of the public such as mentions,
sentiments, trends, etc.
■ For boosted posts:
o The type of boost availed of,
duration of the boost, and the
results of the boost (the
number and kinds of audience
reached, number of views,

9 For added security (non-repudiation) and improve the authenticity and integrity of the report, the si' mnatory to
the report may affix his/her electronic signature using the digital certificate given by the Dep rtment of
Information and Communication Technology in relaw. to the Public Key Infrastructure.

Pagrof6
 engagement acquired, and
reactions/comments received)
0 Annexes A and H of COA Circular No. 2021-
0141"

4.3 The agency concerned shall include in its Annual Procurement Plan the specific
mode of advertisement and/or media platfonn to be implemented and the
corresponding budget, fund source and mode of procurement to be adopted,
among others, in accordance with the provisions of RA No. 9184.

4.4 In view of the peculiarity of the virtual platforms used by social media
applications, their global presence and far-reaching effect to the public,
registration" with the Philippine Government Electronic Procurement System
may be dispensed with, subject to the conditions for exemption to be issued by
the Government Procurement Policy Board.'

4.5 An Information and Communication Plan shall be prepared showing the brief
description of the project, programs and activities to be covered, and the
corresponding target and number of beneficiaries, and period of its
implementation.

4.6 The agency shall continuously undertake a strict monitoring and evaluation of
its communication and information dissemination activities/campaigns.

4. 7 Recognition of Accounts

Advertising expenses incurred under this Circular shall be debited against the
appropriate account code under Advertising, Promotional and Marketing
Expenses.' This account is debited to recognize the costs incurred for
advertisement expenses to promote and market products and services; publish
invitations to bid and other authorized government advertisements; and
disseminate important public announcements.

5.0 SAVING CLAUSE

Any clarification or request for assistance on the implementation of this Circul r

cases not covered herein shall be referred to this Commission through the Govemm nt
Accountancy Sector.

I0 Guidelines on the use of Electronic Collection (e-Collection) and Electronic Payment e-Payment) for Government
Transactions
'' Section 54.6 of the 2016 Revised Implementing Rules and Regulations (IRR) of Republic At (RA) No. 9184.
2 Under Section 63 of RA No. 9184, the Government Procurement Policy Board is mandated o formulate and amend public
procurement policies, rules and regulations, and amend the IRR, whenever necessary.
pursuant to COA Circular No. 2020-001 dated January 8, 2020, Prescribing Volume III-Revised Chart of Accounts (Updated
2019) to replace Volume 111-The Revised Chart of Accounts (Updated 2015) of the Government Accounting Manual for
National Government Agencies; COA Circular No. 2020-002 dated January 28, 2020, Adoption of the Updated Revised
Chart of Accounts for Government Corporations (2019); andf COA Circular No. 20 I 5-009 dated December I, 2015,
Prescribing the Revised Chart of Accounts for Local Governmen nits.

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 In the event that any of the provision of this Circular is declared invalid or
unconstitutional, all the provisions not affected thereby shall remain valid and with legal effect.

6.0 REPEALING CLAUSE

All circulars, memoranda, and other issuances or any part thereof inconsistent with
this Circular are hereby revoked, amended or modified accordingly.

7.0 EFFECTIVITY

This Circular shall take effect after 15 days from publication in a newspaper of general
circulation.
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