Republic of the Philippines

OFFICE OF BUDGET AND MANAGEMENT

MINISTRY OF FINANCE
COMMISSION ON AUDIT

JOINT CIRCULAR NO. 6-82

June 1, 1982

TO : Heads of Ministries, Bureaus and Offices, Managing Heads of Government-

Owned and/or Controlled Corporations, Provincial Governors, City/Municipal
Mayors, local Treasurers, Regional Directors, heads of Accounting Units, Budget
Officers, COA Auditors and Others Concerned.

SUBJECT : Budgeting and Accounting Guidelines for the Creation/Operation/Monitoring of

the Kilusang Kabuhayan at Kaunlaran Local Government Special Fund and the
Project Development and Management Fund.

1.0 PURPOSE

To prescribe budgeting and accounting guidelines and procedures for the

creation/operation/monitoring of the Kilusang Kabuhayan at Kaunlaran (KKK) Local
Government Special Fund (LGSF) and the Project Development and Management Fund
(PDMF) pursuant to Executive Order No. 781 dated March 9, 1982

2.0 DEFINITION OF TERMS

The following terms as used in this circular, shall be construed to mean as

follows:

2.1 Local Government Special Fund (LGSF) refers to the Special Account of the KKK
in the Bureau of the Treasury (BTR) that shall constitute a Revolving Fund to
finance loans to be granted by provincial/city/municipal governments to private
individuals/enterprises that are proponents of livelihood projects. The fund shall
be taken from the Barangay Development fund (BDF) or other lump-sum
appropriations provided for the purpose in the annual General Appropriations Act
(GAA) to be released by the Office of Budget and Management (OBM) to the
BTR which shall in turn release the same to the provincial/city municipal
government units concerned.

2.2 Project Development and Management Fund (PDMF) refers to fund established
under the KKK National Secretariat to be utilized by KKK implementing agencies
such as national and local government agencies, government-owned and/or
controlled corporations and private enterprises that are commissioned to front-
end and implement livelihood projects in both production and marketing phases.
The fund shall be taken from the National Livelihood Program Support Fund
(NLPSF) or other lump-sum appropriations provided for the purpose in the
annual GAA. This shall be released by the OBM to the Military of Human
 settlements (MHS) KKK which shall in turn release the same to the implementing
agencies.

3.0 GENERAL GUIDELINES

3.1 Local Government Special Fund (LGSF)

3.1.1 The funding for LGSF which shall be taken from the BDF or other lump-
sum appropriations provided for the purpose by the OBM to the BTR.

3.1.2 The BTR shall record the fund released and set up a special account in
the general fund in separate books of accounts. It shall transfer the funds
to the local treasurers thru the facilities of the Philippine National Bank
(PNB)

3.1.3 Upon receipt of the funds transferred, the local government officials shall
approve and grant loans to project proponents pursuant to the guidelines
issued by MHS_KKK and Ministry of Local Government (MLG).

3.1.4 All repayments of loans received by the local treasurers shall be remitted
to the PNB branches nearest to the province or city for credit to the BTRs
Special Savings Deposit-KKK-LGSF maintained at the PNB Head Office.

3.1.5 Interest earned from the deposits shall accrue to the BTRs Special
Savings Deposit-KKK-LGSF and shall be utilized based on the advice
and guidelines that shall be issued by the MHS-KKK.

3.2 Project Development and Management Fund (PDMF)

3.2.1 The funding for PDMF which shall be taken from the NLPSF or other
lump-sum appropriations provided for the purpose in the GAA, shall be
released as investment outlay/current operating expenditures by the OBM
to the MHS-KKK.

3.2.2 KKK projects may be implemented by the following agencies:

a. MHS (central offices, regional offices and/or provincial offices)

b. Other national government agencies (central offices, regional

offices/district or field offices)

c. Local government units (provinces, cities, municipalities)

d. Government-owned and/or controlled corporations (main offices,

branches, field offices)

e. Private enterprises

3.2.3 Where projects are to be implemented by the MHS regional offices/field

offices, the decentralized accounting procedures prescribed under B.C.
246 shall be followed.
 3.2.4 Where the projects are to be implemented by other agencies, the
following system shall be observed:

Implementing Agency Fund Transfer

Other national government Thru BTR by JV (Joint

Agencies Circular No. 9-81 of
COA, OBM and MOF

Local government unit Funding Warrant

Government-owned and/or Funding Warrant

Controlled corporation

Private enterprises Funding Warrant

3.2.5 Income earned from the KKK projects shall accrue to the General Fund.

3.2.6 Disbursing Officers of implementing agencies shall prepare liquidation

reports such as Report of Treasury Warrants Issued (RWI), Report of
Checks Issued by Deputized Disbursing Officers (RCIDDO), Report of
Checks Issued (RCI) and Report of Disbursements by Disbursing Officers
(RDDO). The report shall be certified by the Disbursing Officer/Treasurer,
noted by the Chief Accountant, approved by the Head Office and verified
by the COA Unit Auditor.

4.0 PROCEDURAL GUIDELINES FOR LOCAL GOVERNMENT SPECIAL FUND

4.1 The MHS-KKK in coordination with MLG, shall prepare and submit a special
budget to the OBM supported by schedule of fund releases to be made to local
government units.

4.2 The OBM shall release the Advice of Allotment (AA) and Notice of Cash
Disbursement Ceiling (NCDC) to the BTR.

4.3 Upon receipt of the Advice of Allotment and NCDC, the BTR shall record the
same in separate book of accounts maintained under the special account in the
general fund to constitute the KKK-LGSF.

4.4 The BTR shall open a Savings Account with PNB Head Office in the name of the
Bureau of the Treasury. Said account shall be named BTR Special Savings
Deposit-KKK-LGSF

4.5 BTR shall release the funds by requesting the PNB Head Office to credit a
savings account for the respective provinces, cities and Metropolitan Manila
municipalities at the nearest PNB bank branches, chargeable against the BTR-
Special Savings Deposit KKK-LGSF. The release to the provinces shall include
the amount for the province itself and the municipalities within the province.
 Simultaneously, the BTR shall notify the treasurers of the provinces, cities
and municipalities of the funds released thru PNB.

4.6 As regards to funds for the municipalities, the PT shall request the PNB branches
to credit separate savings accounts the funds for each municipality chargeable
against the BTR Special Savings Deposit-KKK-LGSF. Said savings account shall
likewise be taken up as BTR Special Savings Deposit-KKK-LGSF (Municipality).

4.7 Upon receipt of the Advice from the bank that funds had already been credited to
their savings account, the local treasurers shall record the funds transferred as
trust liability in their trust fund books.

4.8 Project proponents shall submit their loan applications and project proposals to
the governor (in case of province) or to the mayor (in case of cities/municipalities)
for approval. Loans shall be granted to project proponents based on the
guidelines issued by MHS-KKK and MLG.

4.9 The governor/mayor shall effect releases for approved loans within 5 working
days from date of approval which shall be accompanied with acknowledgement
of receipt of Loan Approval and Fund Release Advice

The local treasurer shall make actual payments to the borrower in the basis
of duly approved disbursement vouchers.

4.10 Signatories on withdrawals from the savings account are as follows:

Signing Officer Countersigning Officer

City City Treasurer City Mayor

Province Provincial Treasurer Governor

Other Municipalities Municipal Treasurer Provincial Treasurer

(as custodian under Executive Order No. 781)

Metro Manila Municipal treasurer Municipal Mayor

Municipalities

4.11 All withdrawals from the savings account shall be supported by copies of the
Loan Approval and Fund Release Advice (KKK-LGSF Form No. 04) duly
approved by the governor/mayor concerned.

4.12 Borrowers shall repay the loans granted to them according to the approved terms
of agreement, to the provincial city/municipal treasurers who shall issue the
corresponding Official Receipt (OR) therefore.

Thereafter, the MT shall remit the loan repayments receipted for by them to
the PT who shall likewise issue an OR for such remittance.

4.13 Collection shall be remitted as follows:

 Collections Of To Be Remitted To

Municipal Treasurer Provincial Treasurer

(except Metro Manila
Municipal Treasurers)

Provincial Treasurer PNB Branch for credit

(including collections to BTR Special Savings Deposit
remitted by their res- KKK-LGSF
pective Municipal Treasurers)

City Treasurer -do-

Metro Manila Municipal -do-

Treasurer

4.14 The PNB branches shall transfer the collections thus remitted by the local
treasurers to the PNB Head Office for credit to BTR Special Savings Deposit-
KKK-LGSF.

4.15 The corresponding interest earned shall accrue to the BTR Special Savings
Deposit-KKK-LGSF.

4.16 PNB Head Office shall advice the BTR of all cash transferred, loans repaid and
interest earned.

4.17 The BTR shall record the cash transferred, loans repaid and interests earned
upon receipt of the PNB advice. The BTR shall maintain the necessary subsidiary
ledger accounts and records for each province/city/municipality to ensure proper
monitoring of the status of the KKK-LGSF

4.18 The local treasurers shall likewise maintain similar subsidiary accounts and
records for each municipality/borrowers.

4.19 The treasurer of the municipality shall prepare and submit a Status Report (See
Annex A) to be distributed as follows:

Original - Provincial Treasurer

Duplicate - BTR
Copy - COA Unit Auditor
Copy - Municipal treasurer (for file)

The PT shall consolidate such reports. (See Annex B)

 4.20 On a quarterly basis, the treasurer of the province/city shall submit a Status
Report of KKK-LGSF (See Annex B), approved by the governor/city mayor and
duly verified by the COA Auditor to be distributed as follows:

Original - BTR
Duplicate - MHS-KKK
Copy - COA Unit Auditor
Copy - Local Treasurer Concerned (For File)

4.21 On a quarterly basis, the BTR shall prepare a Status Report of KKK-LGSF to be
distributed as follows:

Original - MHS-KKK
Duplicate - National Accounting Office, OBM
Copy - COA Auditor, BTR
Copy - BTR (for file)

5.0 PROCEDURAL GUIDELINES FOR PROJECT DEVELOPMENT AND MANAGEMENT

FUND

5.1 Case A For projects to be implemented by the MHS Central Office (CO), Regional
Office (RO), Provincial Office (PO).

5.1.1 MHS (CO) shall follow the usual accounting procedure prescribed for central
offices.

5.1.2 MHS (RO) shall follow the decentralized accounting procedures prescribed
under Budget Circular 246 dated June 30, 1975.

5.1.3 Where projects are to be implemented by MHS (PO), the MHS (RO) shall
issue a TCAA checks equivalent to the monthly cash requirements of the
PO(s).

5.1.4 The MHS (PO) shall open a checking account with an authorized depository
bank and deposit the TCAA check issued by the MHS (PO). For this purpose,
the designated signing/countersigning officers regardless of the nature of
appointment, shall be duly bonded with the Fidelity Bond.

5.2 Case B For projects to be implemented by another national government agency

(Central Office)

5.2.1 Fund Release

a. The MHS as the source agency shall transfer the funds to

implementing agencies on the basis and upon submission of the
following documents:

1) Memorandum of Agreement
2) Program of work with an estimated breakdown of expenditures
and a schedule of disbursements.
b. Upon approval of the documents and on the basis of the AA received from
the OBM, the MHS (CO) Chief accountant shall release the Letter Advice
of Allotment (LAA) and Advice of Cash Disbursement Ceilings (ACDC) to
the implementing agency (CO) chief accountant. The LAA and ACDC
shall prepared in five (5) copies each to be distributed as follows:

Original - Chief Accountant,

Implementing Agency
(CO)
Duplicate - COA Unit Auditor
Implementing Agency
(CO)
Copy - Chief Accountant, MHS
(CO)
Copy - Budget Officer,
Implementing Agency
(CO)
Copy - COA Unit Auditor, MHS
(CO)

c. Simultaneously, the MHS (CO) Chief Accountant shall prepare a journal

voucher transferring the total amount indicated in the ACDC as a cash
advance to the implementing agency (CO). the journal voucher shall be
prepared in five (5) copies to be distributed as follows:

Original - Chief Accountant, MHS

(CO)
Duplicate - Chief, NCAD, BTR (with a
transmittal letter)
Copy - Chief Accountant,
Implementing Agency
(CO)
Copy - COA Unit Auditor, MHS
(CO)

d. Upon receipt of the duplicate copy of the journal voucher together wit the
transmittal letter from the MHS (CO), the Chief, NCAD, BTR shall charge
the account of the MHS (CO) and credit that of implementing agency
(CO). he shall furnish the chief accountant of MHS and the implementing
agencies a copy of each of the NCAD journal voucher together with a
transmittal letter.

e. Upon receipt of the NCAD journal voucher with the covering transmittal
letter from the BTR, the chief account of the implementing agency (CO)
shall prepare a responding journal voucher to take up in its book of
accounts the receipt of funds as trust liabilities. The journal voucher shall
be prepared in five (5) copies to be distributed as follows:

Original - Chief Accountant,

Implementing Agency
(CO)
 Duplicate - Chief, NCAD, BTR
Copy - Chief Accountant, MH (CO)
Copy - COA Unit Auditor, MHS (CO)
Copy - COA Unit Auditor,
Implementing Agency
(CO)

5.2.2 Fund Utilization/Liquidation

a. Immediately upon receipt of the LAA from the MHS (CO), the Chief
Accountant of the implementing agency (CO) shall certify as to
availability of funds for contracts entered into by the head of the
agency by accomplishing the Certificate as to Availability of Funds
(CAF) pursuant to Section 86 of PD 1445 and COA Circular No. 82-
122-B and National Budget circular No. 359.

b. After the Chief accountant of the implementing agency (CO) has

recorded the funds actually transferred through the BTR, the
disbursing officer shall make disbursements by drawing treasury
warrants (TW) wit the following codes:

1) Agency code of the implementing agency

2) Fund code 184
3) Expense code x

The disbursing officer shall use a separate series of TW and such

disbursement shall be made without the need of Cash Disbursement
Ceiling.

c. Any unobligated amount of the trust liability account at the end of the
year shall be returned to MHS by the implementing agency (CO)
within fifteen (15) days after the close of the year. A journal voucher
shall be drawn by the implementing agency (CO) to return by the
implementing agency (CO) to return to MHS, the unoblgated amount.
The MHS (CO) shall in turn record the amount thus returned, adjust
the corresponding obligation account and corollary entries and finally
revert it to unappropriated surplus.

5.2.3 Fund Reporting

a. The disbursing officer of the implementing agency (CO) shall prepare

a monthly Report of Warrants issued (RWI) in four (4) copies to be
distributed as follows:

Original - COA Unit Auditor,

Implementing Agency
(CO) thru the Chief
Accountant
Duplicate - Chief Accountant,
MHS (CO)
Copy - Chief Accountant,
 Implementing Agency
(CO)
Copy - Disbursing Officer,
Implementing Agency
(CO)

The duplicate copy duly verified by the COA Unit Auditor,

Implementing Agency shall be transmitted to the Chief Accountant,
MHS (CO).

b. The head of the implementing agency (CO) shall also submit to the
MHS (CO) a Monthly Status Report of KKK-PDMF (See Annex C)

c. On the basis of the liquidation reports duly verified by the COA Unit
Auditor of the implementing agency (CO), the Chief Accountant of the
MHS (CO) shall credit the cash advance of the implementing agency
(CO) by journal voucher which shall be prepared in three (3) copies to
be distributed as follows:

Original - COA Unit Auditor,

MHS (CO)
Duplicate - Chief Accountant,
MHS (CO)
Copy - Chief Accountant,
Implementing
Agency (CO)

5.3 Case C - For projects to be implemented by another national government agency

Regional Office (IA-RO)

5.3.1 Fund Release

a. The implementing agency (RO) shall submit to the implementing

agency (CO) the following documents:

1) Memorandum of Agreement
2) Program of work with an estimated breakdown of
expenditures and a schedule of disbursements.

The implementing agency (CO) shall in turn transmit said

documents to the MHS (CO) for evaluation and approval.

b. The MHS (CO) shall release the funds to the implementing agency
(CO) following the procedure prescribed under 5.2.1 hereof.

c. Upon receipt of the funds, the Chief Accountant of the implementing

agency (CO) shall prepare and release the Sub-Letter Advice of
Allotment (SLAA) and Sub-Advice of Cash Disbursement Ceiling
(SACDC) to the IA (RO) chief accountant. The SLAA and SACDC
shall be prepared in six (6) copies each to be distributed as follows:
 Original - Accountant Implementing
Agency (RO)
Duplicate - Chief Accountant,,
Implementing Agency (RO)
Copy - Budget Officer, Implementing Agency
(RO)
Copy - COA Unit Auditor, Implementing Agency
(RO)
Copy - Budget Officer, Implementing Agency
(CO)
Copy - COA Unit Auditor, Implementing Agency
(CO)

d. Simultaneously, the Disbursing Officer of the implementing agency

(CO) shall prepare a TW in the total amount indicated in the SACDC
using the following codes:

1) Agency code of the implementing agency

2) Fund code 184
3) Expense code x

The TW shall be issued in the name of the regional office for

deposit in a KKK-PDMF checking account with an authorized
government depository bank nearest the regional office.

e. The TW issued shall be included in the disbursing officers monthly

RWI. No CDC is required for the TW issued.

f. Upon receipt of the notice from the bank that the account of the
regional office has already been credited, the regional accountant
shall prepare a responding journal voucher to take up in the books
of accounts the amount transferred by the CO. the journal voucher
shall be prepared in three (3) copies to be distributed as follows:

Original - COA Unit Auditor,

Implementing Agency
(RO) thru the accountant
Duplicate - Accountant,,
Implementing Agency
(RO)
Copy - Chief Accountant,,
Implementing Agency
(CO)

5.3.2 Fund Utilization/Liquidation

a. Immediately upon receipt of the SLAA from the implementing agency

(CO), the accountant of the implementing agency (RO) shall certify as to
 availability of funds for contracts entered into by the Regional Director or
his authorized representative pursuant to the COA Circular No. 82-122-B
and National Budget Circular No. 359.

b. The DO of the implementing agency (RO) shall make disbursements by

using commercial checks.

c. Any unobligated amount of the trust liability account at the end of the year
shall be returned to MHS (CO) by the implementing agency (RO) within
fifteen (15) days after the end of the year. A commercial check shall be
drawn by the implementing agency (RO) in favor of MHS (CO) for
remittance to the BTR. The accountant of the implementing agency (RO)
shall furnish the chief accountants of both the implementing agency (CO)
and MHS with a copy each of the validated Remittance Advice(s). The
MHS (CO) shall inturn record the amount thus returned, adjust the
corollary entries and finally revert it to the unappropriated surplus.

5.3.3 Fund Reporting

a. The DO of the implementing agency (RO) shall prepare a monthly

Report of Checks Issued (RCI) in five (5) copies. He shall submit
the report to the Chief Accountant of the implementing agency
(RO) for recording in its Journal of Checks Issued (JCI) and for
distribution as follows:

Original - COA Unit Auditor,

Implementing Agency
(RO)
thru the Chief accountant
Duplicate - Chief Accountant,,
Implementing Agency
(RO)
Copy - Chief Accountant, MHS
(CO)
Copy - Chief Accountant,
Implementing Agency
(CO)
Copy - Disbursing Officer,
Implementing Agency
(RO)

Copy for the chief accountant, MHS (CO) shall be duly verified by
the COA Unit auditor, Implementing Agency (RO).

b. On the basis of the RCI duly verified by the COA Unit Auditor of
the implementing agency (RO), the chief accountant of the MHS
(CO) shall prepares a journal voucher taking up the liquidation of
the cash advance to the implementing agency. The journal
voucher shall be prepared in three (3) copies to be distributed as
follows:
 Original - COA Unit Auditor,
MHS (CO)
Duplicate - Chief Accountant, MHS
(CO)
Copy - Chief Accountant, MHS
Implementing Agency (CO)

c. The head of the implementing agency (RO) shall submit to the

implementing (CO) a Monthly Status Report of KKK-PDMF, copy
furnished the MHS (CO).

5.4 Case D For projects to be implemented by a Local Government Unit

5.4.1 Fund Release

a. The local government units shall submit to the MHS-KKK the

following documents for evaluation and approval:

1) Memorandum of Agreement
2) Program of work with an estimated breakdown of
expenditures and a schedule of disbursements.

b. Upon approval of the documents and on the basis of the AA, the
MHS chief accountant shall obligate the total amount to be
transferred and shall record such transfer of funds as a cash
advance to the local government units.

c. Based on the NCDC received from the OBM, the MHS disbursing
officer shall issue a TW on a monthly basis to the local government
units concerned.

d. Upon receipt of the TW from the MHS (CO), the local treasurer shall
record the funds received in the Trust Fund books.

e. The local treasurer shall deposit the TW received in the proper

depositories. He shall open a separate checking account for the
KKK projects and shall be known as KKK-PDMF checking
account.

5.4.2 Fund Utilization/Liquidation

a. The local government unit shall implement the KKK livelihood

projects and disbursements made shall be charged against the trust
liability account.

5.4.3 Fund Reporting

a. The local treasurer shall prepare and submit to the MHS chief
accountant a Monthly Status report of KKK-PDMF.
 b. On the basis of the Status Report Submitted by the local treasurer,
duly verified by the COA Unit Auditor and approved by the
Governor/Mayor, the Chief Accountant of the MHS (CO) shall credit
the cash advance account of the local government unit by journal
voucher which shall be prepared in two (2) copies to be distributed
as follows:

Original - COA Unit Auditor,

MHS (CO)
Duplicate - Chief Accountant, MHS
(CO)

5.5 Case E For projects to be implemented by a government-owned and/or controlled

corporation

5.5.1 Fund Release

a. The corporation shall submit to the MHS-KKK the following

documents for evaluation and approval:

1) Memorandum of Agreement
2) Program of work with an estimated breakdown of expenditures
and a schedule of disbursements.

b. Upon approval of the documents and on the bases of the AA, the
MHS chief accountant shall obligate the total amount to be
transferred and shall record such transfer of funds as a cash
advance to the corporation.

c. Based on the NCDC from the OBM, the MHS disbursing officer shall
issue monthly a TW to the corporation concerned.

d. Upon receipt of the TW, the corporate accountant shall record the
funds received in the corporate books as trust liabilities to the
national government.

e. The corporate cashier shall open a separate KKK-PDMF checking

account in an authorized government depository bank for the KKK
funds and shall deposit the TW/check received.

5.5.2 Fund Utilization/Liquidation

a. The corporation shall implement the livelihood projects.

Disbursements shall be made by commercial checks chargeable
against the Trust Liability account.

5.5.3 Fund Reporting

a. The corporation shall prepare the following reports to be distributed

as follows:
 1) Reports of Checks Issued (monthly)

Original - Corporate COA

Unit Auditor
Duplicate - Corporate Accountant
Copy - MHS-KKK

2) Status Report of PDMF (quarterly)

Original - MHS-KKK
Duplicate - Corporation

b. On the basis of the Report of Checks Issued duly verified by the

Corporate Unit Auditor and approved by the head of the
corporation, the MHS Chief Accountant shall prepare a journal
voucher crediting the cash advance account of the corporation.
The journal voucher shall be prepared in three (3) copies to be
distributed as follows:

Original - COA Unit Auditor, MHS

(CO)
Duplicate - Chief Accounting, MHS
(CO)
Copy - Corporate Accountant

5.6 Case F - For projects to be implemented by private enterprises

5.6.1 Fund Release

a. The private enterprise shall submit to MHS-KKK, the following

documents:

1) Memorandum of Agreement
2) Program of work with an estimated breakdown of expenditures
and a schedule of disbursements.

b. Upon approval of the documents and on the basis of the AA received from
the OBM, the MHS chief accountant shall obligate the total amount of
funds to be transferred to the private enterprise.

c. Based on the NCDC and the ROA, the disbursing officer of the MHS shall
issue a TW for the total amount to be transferred.

d. The MHS chief accountant shall record the funds transferred to the
private enterprise as a cash advance.

5.6.2 Fund Utilization/Liquidation

The private enterprise shall implement the livelihood projects and defray
the necessary expenses therefore.
 5.6.3 Fund Reporting

a. The head of the private enterprise shall submit to the MHS-KKK Status
Report of the PDMF and liquidation reports on a monthly basis.

b. On the basis of the liquidation reports duly approved by the head of the
private enterprise, the MHS Chief Accountant shall prepare a journal
voucher crediting the cash advance account of the private enterprise. The
journal voucher shall be prepared in three (3) copies to be distributed as
follows:

Original - COA Unit Auditor, MHS (CO)

Duplicate - Chief Accountant, MHS (CO)
Copy - Accountant, Private Enterprise

c. The accountant of the private enterprise shall also submit to the MHS
(CO) a quarterly Financial Statements.

5.7 Income and Collections

a. Collections of income shall be properly receipted by the collecting officer of

the implementing agencies.

b. Income generated from PDMF by all implementing agencies shall accrue to

the general fund.

c. Collections made by national, local and government-owned and/or controlled

corporations shall be remitted by their respective collecting officers to the
National Treasury through Remittance Advice in the nearest authorized
government depository bank for the account of the MHS-KKK. Collections
made by the private enterprises shall be remitted to the collecting officer of
the MHS (CO) who shall in turn remit the same to the National Treasury.

5.8 Reporting Requirements

The MHS chief accountant shall prepare and submit to the NAO, OBM a
quarterly Consolidation Status Report of the KKK-PDMF properly categorized into
national government agencies, local government units, government-owned and/or
controlled corporations and private enterprises. The report shall be certified by the
Chief Accountant and duly verified by the COA Unit Auditor.

6.0 ACCOUNTING ENTRIES

The accounting entries to record the operation of the LGSF and PDMF in the
books of the MHS-KKK, BTR, Local Government Units and Implementing Agencies are
prescribed in the following annexes:

Annex
D - LGSF Loans granted by Provincial/City/Metro
Manila Municipal
 E - LGSF Loans granted by Municipal Governments

F - PDMF Project implemented by MHS Central Office/

Regional Office/Provincial Office (Case A)

G - PDMF Projects implemented by Another National

Government Agency-Central Office (Case B)

H - PDMF Projects implemented by Another National

Government Agency-Regional Office (Case 3)

I - PDMF Projects implemented by Local Government

Units (Case 4)

J - PDMF Projects implemented by Government-

Owned and/or Controlled Corporations (Case E)

K - PDMF Projects implemented by Private Enterprises

(Case F)

7.0 REPEALING CLAUSE

All circulars, order, issuances, etc. which are inconsistent with the above
instructions/guidelines are hereby modified/repealed accordingly.

8.0 EFFECTIVITY DATE

This circular shall take effect January 1, 1982.

(SGD.) MANUEL S. ALBA (SGD.) CESAR E.A. VIRATA

Minister Minister of Finance
Office of Budget and Management

(SGD.) FRANCISCO S. TANTUICO, JR.

Chairman
Commission on Audit

Concurred In:

(SGD.) PANFILO DOMINGO

President
Philippine National Bank