COMMISSION ON AUDIT CIRCULAR NO. 90-332 April 20, 1990

TO : The Chairman, Civil Service Commission; The Commissioner, Chief Accountant, Budget Officer, and COA Resident Auditor of the Professional Regulation Commission; and All others concerned.

SUBJECT: Accounting System and Procedures Governing the Operation of the Professional Regulation Commission (PRC) Revolving Fund Pursuant to the Special Provisions of Republic Act No. 6831 (General Appropriations Act For 1990).

1.0 Purpose

1.1 This circular is issued to prescribe general accounting guidelines for the operations of the PRC Revolving Fund in accordance with Special Provisions No. 1 page 1064 of R.A. No. 6831.

2.0 General Guidelines

2.1 During CY 1990 the PRC shall set aside two million pesos (P2,000,000.00) out of its income derived from examination, registration, annual registration fees and other sources, to be constituted into a Revolving Fund which shall be used for maintenance and operating expenses and equipment outlay, except motor vehicles, to enhance its examination and regulatory functions concerning professionals.

2.2 The fund shall be deposited in an authorized government depository bank and shall be withdrawable upon the joint signature of the duly authorized officials of PRC. All obligations or expenditures incurred in connection with the operation of the Fund shall be charged against the P2 million seed capital set aside for the purpose.

2.3 Any bank interest earned on such deposit shall be remitted to the National Treasury and shall accrue to the General Fund.

2.4 The Revolving Fund shall be deemed abolished upon the exhaustion of its seed capital of P2 million. In no case shall the Fund be replenished out of subsequent collections/income of the PRC derived from examination, registration, annual registration fees and other sources.

2.5 Upon abolition of the Revolving Fund, balances of all accounts, shall be transferred to the General Fund - Fund 101.

3.0 Procedural Guidelines

3.1 A separate set of books of accounts for the PRC Revolving Fund shall be maintained where all transactions relating to said Fund shall be recorded.

3.2 All disbursements/withdrawals from the Revolving Fund shall be made thru the issuance of commercial checks subject to existing accounting and auditing rules and regulations.

3.3 Interest earned on the Fund shall be remitted to the National Treasury for the account of the PRC General Fund (Fund 101). The remittance shall be made five days after the receipt of the advice/statement showing that the interest has been credited to the Revolving Fund. The collecting/disbursing officer of the Revolving Fund shall furnish the Chief Accountant of the PRC with a validated copy of the Remittance Advice within five days after making such remittance.

3.4 The Chief Accountant of the PRC, upon receipt of the Remittance Advice, shall draw a journal voucher taking up the remittance as income under Fund 101.

3.5 The accounting entries to be followed shall be in accordance with Annex "A" hereof.

4.0 Reporting Requirements

A monthly trial balance of the Fund shall be prepared and submitted to the Resident Auditor of the PRC for verification and audit. Year-end trial balances, together with a Status Report of the Fund, shall be submitted to the Accountancy Office of this Commission on or before February 14 of every year.

5.0 Repealing Clause

The provisions of all circulars, instructions and orders which are inconsistent with this Circular are hereby rescinded/repealed and/or modified accordingly.

6.0 Saving Clause

Cases not covered by this Circular shall be referred to the Accountancy Office, Commission on Audit.

7.0 Effectivity

This Circular shall take effect January 2, 1990.

(SGD.) ALBERTO P. CRUZ, Commissioner(SGD.) BARTOLOME C. FERNANDEZ, JR., Commissioner(SGD.) EUFEMIO C. DOMINGO, Chairman

Attachment:Annex A: Illustrative Sample Accounting Journal Entries