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COMMISSION ON AUDIT
Quezon City
NATIONAL BUDGET CIRCUALR NO. 342
COMMISSION ON AUDIT CIRCULAR NO. 81-160
April 21, 1981
TO
SUBJECT :
Rules, Regulations and Accounting Procedures for the Receipt and Disposition of
Insurance Proceeds on Damaged/Lost Government Property
1.0
Purpose
This Circular is issued to provide guidelines, rules, regulations and procedures in
the disposition and accounting of insurance proceeds received on damaged/lost national
government property pursuant to Letter of Instruction No. 999 dated March 13, 1980.
2.0
Coverage
Insurance proceeds referred to in this circular include all insurance proceeds
received on damaged/lost national government property such as inventories, land
improvements, buildings and structures, furniture, equipment and work animals of
national government agencies.
3.0
Government properties shall be insured against fire or other insurable risks with
the General Insurance Fund (GIF) of the Government Service Insurance System
(GSIS). Premiums shall be charged against the appropriate appropriations.
3.2
3.3
The Ministry of the Budget shall release an amount equivalent to the insurance
proceeds plus any additional funds needed to fully restore the damaged property
chargeable against the Calamity Fund to be released either to the Ministry of
Public Works (MPW) or the agency concerned.
4.0
3.4
Releases from the Calamity Fund shall be used solely for the
restoration/reconstruction/rehabilitation of the damaged property covered by the
insurance.
3.5
Allotments release and obligations incurred out of the Calamity Fund shall be
identified in the books of accounts of agencies.
3.6
The Building Services and Real Property Management Office (BSRPMO) and
other agencies shall close the balance of the trust liability account (8-84-000),
insurance reserve account (8-87-200) and any other account appearing in their
books representing the insurance proceeds prior to the issuance of LOI No. 999
to general fund income. However, in order not to disrupt on going construction,
any balance of the above accounts pertaining to such construction shall continue
to be used until such time that construction has been completed.
Responsibilities
4.1
4.1.2
Where the damage/loss involves buildings, the head of the agency shall
notify the Director of the BSRPMO who shall determined the extent of the
damage/loss.
4.1.3
4.1.4
The officer accountable for the damaged, lost property shall, within thirty
(30) days from the date of loss or damage, request relief from
accountability. Such request shall be submitted to the Commission on
Audit (COA) supported by sufficient evidence to prove the validity of the
loss such as affidavits containing statement of facts and circumstances
surrounding the loss.
4.1.5
4.1.6
The agency chief accountant shall record claims against the GIF only
after the GSIS exercises its option not to repair/replace the property
damaged/lost.
4.1.7
The agency chief accountant shall record in the agency books the receipt
of insurance proceeds as income of the General Fund. Such proceeds
shall be deposited with the National Treasury.
4.1.8
The agency chief accountant shall record the allotment and obligation in a
separate JAO sheet properly identified as release against the Calamity
Fund.
4.1.9
The chief accountant of the agency concerned shall close the balanced of
the trust liability account (8-84-000) insurance reserve account (8-87200) and any other account appearing in the books representing
insurance proceeds prior to the issuance of LOI No. 999 to General Fund
income, except for on-going construction, wherein any balance of the
above accounts pertaining to such construction shall continue to be used
until such time that construction has been completed.
4.1.10 The chief accountant of the agency concerned shall submit to the
National Accounting Office of the Ministry of the Budget the list of ongoing projects and the amount still available for its project. He shall also
submit to the National Accounting Office a copy of the journal voucher
closing the balance of the trust liability account, insurance reserve
account and any other account representing insurance proceeds received
prior to the issuance of LOI No. 999 to general fund income.
4.2
4.3
The GSIS, after approval of the claim, shall immediately effect payment
directly to the agency concerned.
4.2.2
4.4
5.0
4.4.2
The Ministry of the Budget shall release the Advice of Allotment (AA) and
the corresponding Cash Disbursement Ceiling (CDC) to the agency
concerned pertaining to par. 4.4.1.
Fixed Assets -
5.1.1
5.1.2
5.1.3
5.2
r. Cr.
8-77-?
xx
8-78-?
xx
8-79-?
xx
To record the book value of fixed assets lost for which claims for
insurance or request for relief has already been filed:
Contingent Assets Claims
Unrelieved Losses of Fixed
Assets
8-74-200
8-87-200
xx
xx
8-87-200
8-74-200
xx
xx
8-72-100
8-72-200
8-72-300
8-72-360
8-72-400
8-72-950
(xx)
(xx)
(xx)
(xx)
(xx)
(xx)
5.2.3
xx
8-74-100 xx
Contingent surplus
8-96-000
xx
8-96-000 xx
8-74-100
xx
8-99-000 xx
8-96-000 xx
xx
xx
- Goods/Merchandise confiscated
- Semi-expendable supplies,
Containers,Furniture &
Equipment
- Supplies & Materials Charged
to Appropriations
- Supplies & Materials Acquired
Free of Charge
- Miscellaneous
8-72-500
(xx)
8-72-600
(xx)
8-72-700
(xx)
8-72-800
8-72-900
(xx)
(xx)
5.3.3
8-86-500
(xx)
8-86-600
(xx)
8-86-700
(xx)
8-86-800
8-86-900
(xx)
(xx)
8-74-100
Contingent Surplus
8-96-000
xx
xx
8-96-000
xx
5.5
xx
8-71-300
8-86-920
xx
xx
5.5.1
5.5.2
xx
xx
To record income:
Miscellaneous Liabilities and Deferred Credits Miscellaneous Insurance
8-86-920 xx
Income (1-58-900)
5.6
5.7
0-91-000
8-70-700
8-70-400
xx
5.7.1
Where
the
MPW
or
agency
concerned
undertakes
repair/replacement,
the
usual
accounting
entries
for
acquisition/restoration of the damaged property shall be followed.
5.7.2
Where the GSIS undertakes the repair/replacement, the entry shall be:
the
the
xx
0-94-172
xx
6.0
xx
5.8
xx
8-81-?
8-84-?
xx
xx
8-87-? xx
0-91-00
xx
Repealing Clause
All provisions of circulars, guidelines and instructions which are inconsistent with
this circular are hereby repealed, superseded or otherwise modified.
7.0
Saving Clause
Cases not covered by this Circular shall be referred to the National Accounting
Office, Ministry of the Budget.
8.0
Effectivity
This Circular shall take effect immediately.
(SGD.) FRANCISCO S. TANTUICO, JR.
Acting Chairman