COMMISSION ON AUDIT CIRCULAR NO.

85-25-E April 25, 1985

TO : All Heads of Ministries, Bureaus and Offices of the National Government

Managing Heads of Government-Owned or Controlled Corporations; Self-
Governing Board, Commissions and Agencies; Provincial Governors and City
Mayors; COA Regional Directors, Provincial and City Auditors; Provincial and
City Treasurers; and Others Concerned.

SUBJECT : Amendment to COA Circular No. 76-25A dated June 30, 1976 regarding service
and/or incentive fees, remunerations, honoraria and all other extra compensation
paid to government officials and employees, particularly the manner of payment
and the accounting treatment thereof.

RATIONALE: This Circular is issued to enable the government agencies which avail themselves of
the services of certain officials and employees of other government offices to
get the sustained cooperation of the latter and to make expedient the collection by
these officials and employees concerned of the extra compensation due them.

Effective immediately, items No. 3 and 4 of statement of Policies of COA Circular No 76-
25A are hereby amended to read as follows:

"Statement of Policies

1. xxxxxxxxxxxx

2. xxxxxxxxxxxx

3. The total amount of extra or additional compensation may be paid by the

paying office to the recipient official or employee. In case of extra
compensation paid by the mother agency to its own officials or
employees, the same shall be paid directly to the official or employee
subject to the provisions of Item below under this title. The paying office
shall, however, issue/submit a notice of payment and a monthly report
to the mother agency of the recipient official or employee regarding the
extra or additional compensation paid to the latter. The report herein
mentioned shall follow he prescribed format (attached as Annex A).
Likewise, the official or employee concerned shall, at year-end, submit a
summary report to his mother agency on service and/or incentive fees,
remunerations, honoraria and all other extra compensations received
by him during the year. The report format is attached as Annex B.

4. The total extra compensation shall, in no case, exceed fifty percentum

(50%) of his annual salary. Payments of allowances and the like on strictly
reimbursement basis shall not, however, be subject to the 50% limit as
herein prescribed.

5. x x x x x x x x x x x x x x x x x x x x."
 Accordingly, items No. 1 and 2 of the Accounting Treatment are hereby deleted.

Strict compliance with this circular is enjoined.

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

(SGD.) HERMOGENES P. POBRE, Commissioner

Attachments:

1. Annex A - Monthly Report on service and/or incentive fees remunerations,

honoraria and all other extra compensations paid to government officials and
employees.

2. Annex B - Summary Report on service and/or incentive fees, remunerations,

honoraria and all other extra compensations received during the year.