COMMISSION ON AUDIT CIRCULAR NO.

90-322 February 7, 1990

TO : All Heads of Departments, Bureaus, Offices Agencies and Instrumentalities of

the National Government, Heads of Local Government Units, Managing Heads
of Government-Owned and/or Controlled Corporations including their
subsidiaries, COA Directors, COA Auditors and all Others Concerned.

SUBJECT: Audit Guidelines on Disbursements for Representation Expenses Incurred in

connection with Official Travel Abroad Pursuant to Title II, Section 17 of
Executive Order No. 129; Series of 1968, as Amended.

I - RATIONALE

The present requirements for the processing of claims for the reimbursement of, or for
the liquidation or accounting of cash advances for, representation expenses incurred in
connection with official travel abroad under Executive Order No. 129 have been observed to
be cumbersome and complicated on the part of the claimants or accountable officials, as the
case may be. They are required to produce receipts of similar documents showing that they
actually incurred such expenses in the course of entertaining government officials and other
dignitaries in foreign countries or other representation expenses. These officials, who are
sent abroad to represent the Philippines, are holding positions of respectability, honor and
trust. They are expected and presumed to discharge their duties and functions in accordance
with the standards set by the Constitution on public accountability, i.e., they "must at all times
be accountable to the people, serve them with utmost responsibility, integrity, loyalty and
efficiency, act with patriotism and justice, and lead modest lives". (Sec 1, Art. XI, Constitution).

To enable Philippine Government officials to concentrate on the task of representing the

Philippines and avoid embarrassing or undignified situations while on official travel abroad, and
to simplify and facilitate the processing of claims for reimbursement of representation
expenses or the liquidation of cash advances for said expenses, this Commission, in
pursuance of its constitutional mandate to promulgate accounting and auditing rules and
regulations, hereby issues this circular.

II - DEFINITION

For purposes of this Circular, representation expenses incurred during foreign travel shall
be confined to items of expense enumerated in Title II, Section 17 of Executive Order No. 129,
such as entertainment, contributions, flowers, wreaths, and the like, which shall be absolutely
necessary for achieving the objectives of the travel, and in conformity with generally accepted
customs, usages and practices prevailing in the country and locality visited.

III - GUIDELINES

1. Entitlement to the representation expenses provided for in the aforecited provision

shall be on strictly non-commutable or reimbursement basis.

2. The usual requirements for submission of receipts or other documents in support of

claims for reimbursement of representation expenses or liquidation of the cash
advance therefor is dispensed with. In lieu thereof, a certification under oath
executed by the official concerned that the expenses in question have been
 incurred for any of the purposes enumerated in Section 17, supra, in accordance
with prior authority obtained from the President of the Philippines or his duly
authorized representative shall suffice.

3. The amount of representation expenses fixed in the authority granted by the

President or his duly authorized representative shall serve as the ceiling for
purposes of controlling the disbursement of funds of this nature. In the event the
President or his duly authorized representative does not fix said ceiling, agency
heads are required to set the maximum amount of representation expenses that
may be incurred by their officials authorized to incur the same. Said ceiling shall be
in such amount as may be necessitated by the importance and duration of the
necessitated by the importance and duration of the conference, convention or
special mission for which the foreign travel is undertaken.

4. Except as herein provided, the manner of granting, utilization and liquidation of the
cash advance for representation expenses on account of foreign travel shall be
governed by existing auditing and accounting rules and regulations.

IV - EFFECTIVITY

This circular takes effect immediately.

(SGD.) ALBERTO P. CRUZ, Commissioner

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