COMMISSION ON AUDIT CIRCULAR NO.

80-26 (G) April 8, 1980

TO : All Heads of Ministries, Chiefs of Bureaus and Offices, Managing Heads of

Government-Owned or Controlled Corporations, Provincial Governors and City
Mayors, Provincial and City Treasurers, All Auditors and Others Concerned.

SUBJECT : Implementation of COA Circular No. 80-26 (F) concerning the amendment to the
partial withdrawal of pre-audit.

In order to effect the smooth implementation of COA Circular No. 80-26(F), dated
February 25, 1980, Heads of National Agencies/Local Government Units/Government-Owned or
Controlled Corporations are hereby advised to designate the proper officials of the Agency who
shall countersign treasury warrants/checks covering claims which are not subject to pre-audit as
specified in the circular. In designating the countersigning officials, the Agency head shall
consider the principles of Internal Control as enunciated in COA Circular No. 77-48 dated
January 31, 1977. Specifically, no employee/official assigned to the Accounting Office or
Internal Control Unit shall be authorized to countersign checks and treasury warrants. As much
as possible, no one should have complete control of a transaction. Physical custodianship
should be separated from record keeping. Furthermore, as far as practicable, the
countersigning official shall be higher in rank than the official designated to sign the
warrant/check.

This relaxation on pre-audit function by the Commission on Audit is in line with the
Commission's objective to place fiscal responsibility on Agency management as mandated
under Presidential Decree No. 1445.

As regards the Advice or Notice sent previously by the Unit Auditor of the Agency to the
Bureau of the Treasury consisting of a list of countersigned treasury warrants and TCAA checks
required under COA Circular Nos. 79-100 and 79-110, dated June 1, 1979 and August 24, 1979,
respectively, immediately upon implementation of this COA Circular No. 80-26(F), the proper
officials of the Agency designated to countersign the treasury warrants/checks shall accomplish
the Notice or Advice to the Bureau of the Treasury under the same procedures prescribed in the
above-mentioned COA Circular Nos. 79-100 and 79-110. The countersigning official shall be
responsible in preparing the Advice or Notice to the Bureau of the Treasury. He shall use the
same form as the one being used by the Deputized Disbursing Officer with certain modifications
on the title or name of the Advice sample Form attached. This advice shall be certified as
correct by the countersigning Agency official and approved by the Head/Authorized
representative of the issuing Agency. The signatories to the TCAA checks, treasury warrants
and this Advice shall submit the required specimen signature cards to the bank and Bureau of
the Treasury duly accomplished.
 Accordingly, COA Circular No. 80-26(F) shall be implemented in all National
Agencies/Local Government Units/Government Corporations as soon as they have set up the
mechanism described above, but in no case later than April 30, 1980.

Any circular, memorandum or order previously issued by this Commission which is

inconsistent herewith is hereby repealed or amended accordingly.

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