RATA, or Representation Allowance and Transportation allowance, is granted to select government officials, as identified in the General Provisions of the Annual Government Appropriations Act (GAA), to cover related expenses incidental to and in connection with the actual performance of their respective functions.

RATA has two kinds — commutable and reimbursable.

What is Commutable RATA?

As derived from Section 317, Article 8, Chapter 5, Volume 1 of the Government Accounting and Auditing Manual, RATA is commutable if the grant thereof is specifically authorized by law and if funds for its payment are provided for in the Agency budget. The GAA serves as the law authorizing the payment of commutable RATA. Payment of the said allowances presupposes actual rendition of services in line with official duties.

When is RATA reimbursable?

When the RATA of certain government official has not been provided for in the Agency budget, unlike commutable RATA, although the incurrence of the same is allowed under existing rules and regulations, the said RATA is said to be on reimbursable basis.

As derived from Section 286, Article 1, Chapter 5, Volume 1 of the Government Accounting and Auditing Manual, reimbursable RATA should be duly supported by receipts or by a certification to the effect that the expenses had been incurred in accordance with the purpose for which the allowance is granted.

Under Local Budget Circular No. 103 — the amended guidelines on the rules and regulations on the grant of RATA for Local Government Units (LGUs), and National Budget Circular No. 548 — the amended guidelines on the rules and regulations on the grant of RATA for National Government Agencies, an Officer-In-Charge (OIC) of a position, authorized in an agency staffing pattern and entitled to RATA, may be allowed to collect the RATA for the position on reimbursable basis, provided, the said grant is stipulated or expressed in the Office Order designating him/her as such.

The Confusion

There is no question as to where should commutable RATA should be charged as the same has already been identified in the GAA, particularly under the budget for Personnel Services (PS).

The confusion among Accountants, as well as Budget Officers and State Auditors, lies in where to charge reimbursable RATA, that is whether to charge reimbursable RATA against the Agency budget for PS or to charge it against the Agency budget for Maintenance and Other Operating Expenses (MOOE).

Particularly, is reimbursable Representation Allowance (RA) more appropriately charged against available allotment under the Representation Allowance account under PS or should it be charged against the budget for Representation Expenses under MOOE?

Likewise, is reimbursable Transportation Allowance (TA) more appropriately charged against available allotment under the Transportation Allowance account under PS or should it be charged against the budget for Traveling Expenses under MOOE?

The answer is, whether commutable or reimbursable, RATA should be charged against available allotment under PS.

Related: Government Policy on the Use of Available PS Allotment

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The above answer is consistent with the definition of Representation Allowance and Transportation Allowance under the Revised Chart of Accounts, screenshot below:

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It is noted that RATA, as compared to Representation Expenses and Traveling Expenses, is used by select government officials as a matter of and incidental to the performance of their respective official functions while the latter are used by the Agency concerned in rendering its mandated services, as shown below:

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