Liquidation by Certification at Extraordinary and Miscellaneous Expenses ng Government Officials

Ano ang “Liquidation”?

Technically, ang ibig sabihin ng liquidation kapag accounting o finance ang paguusapan ay:

Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. Liquidation can also refer to the process of selling off inventory, usually at steep discounts. [1]

Samantala, ang ibig sabihin naman ng Commission on Audit (COA) kapag liquidation ang paguusapan ay:

Liquidation – means the recording of the liquidation documents in the books of accounts by the accountant as a credit to the cash advance account after verifying the same, although not yet audited by the auditor. [2]

In practice, ang liquidation sa public finance ay ginagawa upang i-account ng Accountant ang cash advances ng government officials o employees bago pa ito i-audit ng COA. Sinusuri ng Accountant kung kumpleto ang supporting documents at kung naisumite ito bago ang itinakdang deadline.

2 Klase ng Cash Advances

May dalawang (2) uri ng cash advances na pwedeng ibigay sa mga accountable government officials and employees. Kabilang dito ang mga sumusunod:

• Regular Cash Advances — kabilang dito ang cash advances para sa sahod, commutable allowances katulad ng RATA, honoraria and other similar payments to certain officials and employees, at petty operating expenses. [3]
• Special Cash Advances — kabilang dito ang ilang current operating expenses ng ahensya na impraktikal bayaran ng cheke tulad ng sahod ng ilang empleyado, at ilang Maintenance and Other Operating Expenses (MOOE). Kabilang din sa special cash advance ang travel allowances (foreign o local travel) ng government officials and employees. [4]

Ang mga cash advances, mapa-regular or special cash advance man, ay dapat ma-liquidate o ma-account at dapat suportado ng ibat-ibang dokumento na hinihingi ng COA.

Ang COA Circular No. 2012-001 (Revised Guidelines and Documentary Requirements for Common Government Transactions) ay naglalaman ng listahan ng lahat ng kailangan isumite sa COA upang ma-liquidate ang expenses at cash advances ng lahat ng ahensya ng gobyerno.

Sa ibang pagkakataon, nagtatakda din mismo ang ahensya ng karagdagang mga pulisiya at requirements para ma-liquidate ang cash advance o expenses, kung kinakailangan.

Ano ang Certification?

In legal terms, ang ibig sabihin ng Certification ay:

A qualification or attribute meaning to being officially attested or authoritatively confirmed as being genuine or true as represented, or complying or meeting specified requirements or standards. A certificate may or may accompany this qualification. [5]

In layman’s terms, ang Certification ay pagpapatunay o panunumpaa ng isang indibidwal o opisina sa isang kasulatan na sya o ito ay sumunod sa mga alituntunin at ang mga isinasaad sa dokumento ay totoong nangyari.

Ano ang Liquidation by Certification?

Karaniwan sa lahat ng cash advances, regular o special cash advances man, kailangang mag-sumite sa COA ng ibat-ibang mga supporting documents tulad ng payroll, official receipts, sales invoice, minutes of meeting, attendance, proof of receipt, procurement documents, mga larawan, at iba pa, depende sa cash advance o expenses.

Ngunit meron isang klase ng expense na pwedeng gamitan ng Certification upang maliquidate ito. Sa ibang salita, pwede itong i-liquidate by means of a Certification. Ang expense na ito ay tinatawag na Extraordinary and Miscellaneous Expenses.

Ano ang Extraordinary and Miscellaneous Expenses?

Ang extraordinary and miscellaneous expenses ay ibinibigay sa piling government officials na awtorisado sa General Appropriations Act (GAA) upang gamitin sa “discretionary, business development expenses, representation expenses and the like.” [6]

Specifically, ang budget o appropriations para sa Extraordinary and Miscellaneous Expenses ay maaring gamitin sa mga sumusunod:

• Meetings, seminars and conferences;
• Official entertainment;
• Public relations;
• Educational, athletic and cultural activities;
• Contributions to civic and charitable institutions;
• Membership in government associations;
• Membership in national professional organizations duly accredited by the Professional Regulatory Commission;
• Membership in the Integrated Bar of the Philippines;
• Subscription to professional technical journals and informative magazines and materials (include library books and materials);
• Office equipment and supplies; and
• Other similar expenses not supported by the regular budget allocation. [7]

Nilinaw ng COA na ang mga nasa itaas ay hindi exclusive or exhaustive and is intended merely to exemplify the nature and kinds of possible disbursement which may be categorized as extraordinary and miscellaneous expenses within its contemplation. [8]

Gayundin, ang General Provisions ng GAA sa bawat taon ay nagtatakda ng karagdagang probisyon ukol sa paggamit ng Extraordinary and Miscellaneous Expenses.

Magkaano ang Extraordinary and Miscellaneous Expenses ng Government Officials?

Ang halaga ng Extraordinary and Miscellaneous Expenses ng government officials ay depende sa nakasaad sa General Provisions ng GAA at sa position ng government officials.

Sa taong 2024, ang halaga ng Extraordinary and Miscellaneous Expenses ay ang sumusunod:

Sec. 51. Extraordinary and Miscellaneous Expenses. Appropriations authorized in this Act may be used for the annual extraordinary expenses of the following officials with the following ranks and their equivalent, as may be determined by the DBM or by the GCG for GOCCs/GFIs covered by RA. No. 10149, not exceeding the amounts indicated:

P264,000 for each Department Secretary;

P108,000 for each Department Undersecretary;

P60,000 for each Department Assistant Secretary;

P45,600 for each head of bureau or organization of equivalent rank, and for each head of a Department Regional Office including General Manager of Local Water District in Categories A and B;

P26,400 for each head of a Bureau Regional Office or organization of equivalent rank including General Manager of local Water District in Categories C and D, and

P19,200 for each Municipal Trial Court Judge, Municipal Circuit Trial Court Judge, and Shari’a Circuit Court Jodge. [8]

Maliban sa mga nasabing halaga ng extraordinary expenses, ang mga opisina ng mga nasabing government officials ay awtorisado ding gumastos ng hanggang P90,000.00 kada taon para sa miscellaneous expenses.

Kapag kulang ang budget para sa mga nasabing Extraordinary and Miscellaneous Expenses, maari itong kunin sa available na appropriation o budget ng ahensya.

Paano i-liquidate ang Extraordinary and Miscellaneous Expenses?

Sa isang Circular ng COA, sinabi nito na:

The underlying principle behind the provision for authority to use appropriations for extraordinary and miscellaneous expenses recognizes the need to grant some form of assistance to officials occupying key positions in the National Government to enable them to meet various financial demands that otherwise would not have been made on them.  

Verily, by reason of their incumbency to these positions, they have to incur expenses of the sort which are not normally charged to or covered by their salaries and other emoluments. These officials should thus be accorded as much flexibility as possible in the utilization of the funds involved, subject to limitations imposed by law. [9] (underscoring and emphasis supplied)

Speaking of “flexibility in the utilization” of the Extraordinary and Miscellaneous Expenses, sinabi din ng COA sa nasabing Circular na:

The entitlement to the benefit provided under the General Appropriations Act shall be on a strictly non-commutable or reimbursement basis.  

The corresponding claim for reimbursement of such expenses shall be supported by receipts and/or other documents evidencing disbursement, if these are available, or, in lieu thereof, by a certification executed by the official concerned that the expenses sought to be reimbursed have been incurred for any of the purposes contemplated under Section 19 and other related sections of RA 6688 (or similar provision in subsequent General Appropriations Acts) in relation to or by reason of his position. In the case of miscellaneous expenses incurred for an office specified in the law, such certification shall be executed solely by the head of the office. [10]

Consistently, sabi sa COA Circular No. 2012-001 ang paggamit ng Extraordinary and Miscellaneous Expenses ay dapat suportado ng mga sumusunod:

• Invoices/Receipts — para sa mga nasa GOCCs, GFIs at LGUs
• Receipts and/or other documents evidencing disbursement, if there are available, or in lieu thereof, certification executed by the official concerned that the expense sought to be reimbursed have been incurred for any of the purposes contemplated under the provisions of the GAA in relation to or by reasons of his position — para sa mga nasa National Government Agencies (NGAs)
• Other supporting documents as are necessary depending on the nature of expense charged [11]

Ang COA Circular No. 2012-001 ay aplikable sa NGAs, LGUs, GOCCS, at GFIs.

Ang Congress (House of Representatives at Senate of the Philippines) ay mayroon ding katulad na annual budget para sa Extraordinary and Miscellaneous Expenses na saklaw din ng audit ng COA. [12]

Sa Senate Concurrent Resolution No. 10, s. 2011, sinabi ng Congress na:

WHEREAS, Section 20, Article VI of the Constitution provides that the records and books of accounts of Congress shall be preserved and be open to the public in accordance with law, and such books shall be audited by the Commission on Audit which shall publish annually an itemized list of amounts paid to and expenses incurred for each Member [13]

WHEREAS, in recognition of the delicate and unique nature of the functions, operational and organizational structures of the Senate, the House of Representatives, the Commission on Appointments and the Senate and House Electoral Tribunals, the Commission on Audit has consistently allowed the current system of liquidation by way of certification, duly signed by each Senator and Member of the House of Representatives, that such amounts allocated to each Member of Congress as part of their Maintenance and Other Operating Expenses (MOOE) were utilized or expended in the performance of their legislative functions; [14]

Now, therefore, be it Resolved, as it is hereby resolved by the Senate, the House of Representatives concurring, That the prevailing system of accounting and liquidation of the respective budgetary allocations of each Member of the Senate and the House of Representatives as classified and consistent with applicable accounting and auditing rules shall be maintained. [15]

Ano ang pagkakaiba ng MOOE at Extraordinary and Miscellaneous Expenses?

Ang MOOE ay isang klase ng allotment class. Sa Philippine budgeting, mayroong apat (4) na klase ng allotment class. Ito ang mga sumusunod:

1. Personnel Services (PS) — kabilang dito ang budget para sa sahod, allowances, bonus at incentives ng kawani ng gobyerno.

2. Maintenance and Other Operating Expenses (MOOE) — budget ito para operating expenses ng gobyerno tulat ng traveling expenses, training expenses, supplies expenses, atbp. Kabilang ang Extraordinary and Miscellaneous Expenses sa allotment class na MOOE.

What’s the difference between Appropriation and Allotment?

3. Financial Expenses — kabilang dito ang budget para sa pambayad ng utang ng gobyerno at interest nito.

4. Capital Outlay — kabilang dito ang budget para sa infrastructure, machineries, at equipment ng gobyerno.

Muli, ang Extraordinary and Miscellaneous Expenses ay isang uri lamang ng expenditure sa MOOE.

Ayun sa COA Circular No. 2012-01, magkakaiba ang paraan ng pag-liquidate ng cash advances o expenses charged against the MOOE.

Ang pinagkaiba ng Extraordinary and Miscellaneous Expenses sa ibang item ng MOOE ay pwede itong i-liquidate gamit ang Certification kung hindi available ang resibo o ibang dokumento na pwede sumuporta dito.

Ngunit aplikable lamang ang liquidation by means of a Certification sa National Government Agencies at Congress ayun sa mga nasabing Circular at Senate Concurrent Resolution.

COA’s Role in Auditing MOOE if Spent in Accordance with Law

Nilinaw ng COA na ang MOOE ay hindi discretionary fund. [15] Sinabi nito na:

MOOE appropriations may only be used for the purposes specified and listed in the GAA. In the case of the Senate, these are general administration and support, legislative services and operational requirements of [xxx] congressional commissions and oversight committees listed in the GAA. [16]

Per type of expenditure, the MOOE is specified in the GAA to be used for traveling, communication, repairs and maintenance, transportation and delivery, supplies and materials, rents, utility, training and scholarship, extraordinary and miscellaneous, taxes insurance premium and other fees, professional services, printing and binding, advertising, representation, subscription, and membership duties and contribution [17]

Iginiit ng COA na tungkulin nito na suriin at i-audit ang paggastos ng mga ahensya sa kanilang MOOE; kung ang paggasta dito ay naayun sa batas at alituntunin; at naaayun sa layunin na isinasaad sa naturang batas.

Related Topic

Di Na Kailangan ng COA ang Resibo?