Commission On Audit: Republic of The Philippines

Republic of the Philippines
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines
CIRCULAR No. : 2020 - 009

Date : April 21, 2020
TO : All Heads of Departments, Bureaus/Offices and Local Government

Units; Chiefs of Financial and Management Services, Chief
Accountants, Cashiers, Disbursing Officers, and Budget Officers;
Assistant Commissioners, Directors and State Auditors of the
Commission on Audit (COA); and All Others Concerned
SUBJECT : Temporary relaxation in the application of certain provisions of COA

Circular No. 2014-002 dated April 15, 2014 and COA Memorandum No.
2014-009 dated August 28, 2014 in areas subject to quarantine during the
period of the State of Calamity declared under Proclamation No. 929,
dated March 16, 2020
I. RATIONALE
As the nation faces difficult times due to the outbreak of the Coronavirus
Disease 2019 (COVID-19), there is a need for the Commission to support the efforts
of the government in providing the needs of the citizens and health workers during
the period of the State of Calamity declared in Proclamation No. 929 last March 16,
2020. Distribution of various donations in-kind and relief goods received by
government agencies from private organizations or individuals should not be
unnecessarily delayed on account of the rules contained in the above-mentioned
COA issuances. Thus, there is a need to temporarily relax the application of certain
provisions thereon in areas subject to a quarantine in so far as receipt, recording,
distribution, reporting and direct release of donations in-kind and relief goods to the
beneficiaries are concerned during this period, without necessarily disregarding
basic controls to ensure that the donations are properly accounted for.
For purposes of this Circular, a "quarantine" may refer to the Enhanced

Community Quarantine (ECQ), or a general community quarantine, and any form of
quarantine directly due to the COVID-19 outbreak as recognized in Proclamation
No. 929, dated March 16, 2020, declaring a State of Calamity throughout the
Philippines. Except as otherwise provided, reference to a quarantine in this Circular
shall mean the particular quarantine in the area where the government agency is
located.
II. GUIDELINES
1. COA Circular No. 2014-002
The implementation of the provisions under Item IV - C, Accounting

Guidelines: In-kind Donations from Local and Foreign Sources; and Item V - A
and B, Reporting Guidelines: DRRMF sourced from GAA and Cash Donations,
and In-kind Donations is relaxed as follows:
a) Donations in-kind from local and foreign sources
1. The recording of donations in kind before repacking and distribution is

put on hold during the quarantine. The acknowledgement of the donations
in-kind and accounting of distribution and balances by the recipient
agencies will suffice during this period.
2. To ensure that the aids and donations received by the recipient agencies
during the quarantine are properly accounted for, the recipient agencies
shall be required to submit a Summary/List of Donations Received,
Distributed and Balances. The Summary/List should be categorized (i.e.
food, medical supplies, medicines, etc...) and can be submitted within ten
(10) working days after the end of the quarantine, or if the quarantine
exceeds three (3) months, within ten (10) working days after the end of
each quarter, supported with:
(1) acknowledgement receipts of the donations in-kind;

(2) proof of receipt by and distribution to the beneficiaries, not
necessarily in the required form; and
(3) inventory of remaining undistributed items, if any.
3. The costing and recording of the donations will be done after the
quarantine and only the remaining balances shall be costed and recorded
in the books or in the registries.
b) Reporting Guidelines
1. In lieu of the monthly report, the concerned agencies shall submit a one-
time report, separately for cash donations and in-kind donations, within
ten (10) working days after the end of the quarantine to the National
Disaster Risk Reduction and Management Council (NDRRMC), through
the Office of the Civil Defense (OCD), copy furnished the respective
COA Auditors. However, if the quarantine exceeds three (3) months, the
report shall be submitted within ten (10) working days after the end of
each quarter.
2. The OCD shall consolidate the report and submit the consolidated report
to the NDRRMC within fifteen (15) working days after the end of the
quarantine or after the end of each quarter, if the quarantine exceeds three
(3) months, copy furnished the Auditor of the OCD. The consolidated
report shall be included in the annual report being prepared by the OCD.
2. COA Memorandum No. 2014-009
The application of certain provisions of Item VI, Specific Guidelines,

Nos. 19 and 34 is relaxed as follows:
a) Sorting, recording, and inventory of relief goods
The recording of donations in kind before repacking and distribution is

put on hold during the quarantine and that only the remaining balance at the
end of the quarantine shall be costed and recorded in the books or in the
registries. The Auditors shall be guided by the above provisions on the
“donations in kind from local and foreign sources” and the required reports
in accounting and auditing donations received, distributed and balances
during the period of the quarantine.
b) Release of the goods directly to the intended beneficiaries
Subject to the orders from the Office of the President, the agencies may
transfer the responsibility to distribute the goods to the local government
units (LGUs), based on the validated list of affected families. During the
quarantine, the goods need not be released by the agency directly to the
intended beneficiaries, but it may be done through the LGUs, particularly if
the concerned agencies lack the resources or facilities to do so.
3. All other provisions of COA Circular No. 2014-002, and COA Memorandum No.
2014-009 which are necessary controls to ensure that all donations, be it in cash
or in-kind, are accounted for shall remain in effect.
4. Recipient agencies may use an electronic tracking platform to facilitate

recording, monitoring, and utilization of donations, whether in cash or in kind.
For this purpose, the following guidelines shall be observed when electronic
tracking platforms are used to account, record, and report during the period of
quarantine:
a) The recipient agencies must ensure that these electronic tracking platforms
have the facility to record data on receipts and disbursements as well as
distributions of donations in-kind in the appropriate ledgers and registries
and at the very least, the minimum data needed to display the ledgers and
registries are available in the electronic tracking platform.
b) The electronic tracking platform should be able to generate an audit trail on

the processing of the transactions, including the authorization or approval
process.
c) For cash donations, electronic receipts or records as proof of receipt, in lieu

of traditional official receipts, will comply with the requirements of COA
Circular No. 2014-002 and COA Memorandum No. 2014-009, provided that
the electronic tracking platform can provide the minimum data content to
reflect the transaction such as but not limited to the following:
(i) the date of receipt of the donation;
(ii) the name of donor;
(iii) the nature of donation;
(iv) the amount or volume of the donation; and
(v) the reference number, if applicable.
d) For donations made directly to the recipient agency's bank account, the credit
memo or bank statement shall serve as proof of receipt. For other donations
transferred electronically to an electronic wallet (e.g. Landbank IAcess,
Gcash, Peso Net, Insta Pay), the transaction reference will be the basis of
proof and recording. For donations in-kind, an electronically produced
acknowledgment receipt or similar document automatically generated by the
system shall also be accepted.
e) If the utilization or distribution of the cash donation is done electronically

(e.g. transfer to bank account, cash card, e-wallet, online transaction), the
bank statement/transaction receipt/transaction reference shall be the basis of
proof and recording. An electronically produced invoice receipt or similar
document automatically generated by the system shall also be acceptable.
f) Recipient agencies may submit electronically generated reports through e-

mail provided that the agency’s authorized officer shall certify as to the
accuracy and correctness of the content of the report. To improve the
authenticity and integrity of the report, the signatory to the report may affix
his/her electronic signature using the digital certificate given by the
Department of Information and Communication Technology in relation to the
Public Key Infrastructure (PKI) program.
g) A validation on the sufficiency and integrity of the implemented controls to

ensure data confidentiality, integrity, and availability shall be undertaken by
the information technology auditors of the Commission. Among the areas to
be reviewed during the audit engagement are as follows:
(i) The preservation of the confidentiality, integrity, and

availability of data. Proper controls should be in place with
respect to the data and information in the electronic tracking
platform, especially those related to cash receipts and
disbursements, to ensure the data and information is not subject
to manipulation. If the data contains Personally Identifiable
Information (PII) as defined in Republic Act No. 10173, or the
Data Privacy Act, such as when personal information is
obtained from beneficiaries, such information should only be
accessible to those authorized under the law. Subject to the
proper controls, the data and information processed and
produced by the system should also be available for use anytime
by the recipient agency.
(ii) The reasonable level of control over the input, processing,
and output of information. The recipient agency should have
appropriate review processes such as, for example, supervisory
review and random manual audit, to ensure accuracy of the data
and information encoded and to compensate for the limitations
of the electronic tracking platform, if any.
(iii) The traceability by presenting adequate information that

can establish the events that transpired during the
quarantine period. The electronic tracking platform should
provide at a minimum information as to where the funds came
from, how much was spent, where was it spent, what was it
spent for, when was it spent and who were the recipients. For
beneficiary tracking systems, minimum information would refer
to who received the aid, what did was received (cash or in
kind), where they received the aid from (LGU, DSWD, etc.),
when did they receive the aid, and how much was received. For
cash and banking transactions, the minimum information refers
to the check numbers and dates, the receipt numbers and dates,
and names of the payor/s and payees.
III. EFFECTIVITY
This Circular is effective immediately upon publication. Unless sooner revoked or

amended by the Commission, this Circular shall remain in effect for the duration of the
period of the State of Calamity under Proclamation No. 929.
MICHAEL G. AGUINALDO
Chairperson
ROLAND C. PONDOC
Commissioner

Commission On Audit: Republic of The Philippines

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Republic of the Philippines

CIRCULAR No. : 2020 - 009

TO : All Heads of Departments, Bureaus/Offices and Local Government

SUBJECT : Temporary relaxation in the application of certain provisions of COA

For purposes of this Circular, a "quarantine" may refer to the Enhanced

1. COA Circular No. 2014-002

The implementation of the provisions under Item IV - C, Accounting

a) Donations in-kind from local and foreign sources

1. The recording of donations in kind before repacking and distribution is

(1) acknowledgement receipts of the donations in-kind;

The application of certain provisions of Item VI, Specific Guidelines,

a) Sorting, recording, and inventory of relief goods

The recording of donations in kind before repacking and distribution is

b) Release of the goods directly to the intended beneficiaries

4. Recipient agencies may use an electronic tracking platform to facilitate

b) The electronic tracking platform should be able to generate an audit trail on

c) For cash donations, electronic receipts or records as proof of receipt, in lieu

e) If the utilization or distribution of the cash donation is done electronically

f) Recipient agencies may submit electronically generated reports through e-

g) A validation on the sufficiency and integrity of the implemented controls to

(i) The preservation of the confidentiality, integrity, and

(iii) The traceability by presenting adequate information that

This Circular is effective immediately upon publication. Unless sooner revoked or

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