COMMISSION ON AUDIT CIRCULAR NO.

92-379 May 26, 1992

TO : All Directors, COA Central and Regional Offices, Unit Auditors of the Central and
Regional Offices and Chief Accountant of the Department of Agriculture and all
others concerned.

SUBJECT: Submission of Audited Financial Statements for the Fishery Sector Program
(FSP) funded by the Asian Development Bank (ADB).

I. Purpose

This circular is issued to prescribe the necessary guidelines for the preparation and
submission of audited financial statements for the Fishery Sector Program of the Department
of Agriculture (DA) which is funded from loan proceeds pursuant to the loan agreement
between the Philippine Government and the Asian Development Bank (ADB).

The Fishery Sector Program is being implemented by the DA central and regional field
offices, hence, there is a need to consolidate the audited reports for submission to the ADB.
To ensure the timely submission of these required reports, there is likewise a need to require
the active participation of the auditors of the central and regional offices of DA and to define
their respective duties and responsibilities.

II. Coverage

This circular shall cover the ADB-funded projects of DA from 1990 - 1994.

III. Prescribed Reports

Pursuant to the loan agreement with ADB, the Borrower (the Philippine Government thru
the DA) shall maintain or caused to be maintained separate accounts for the program; have
such accounts and related financial statements audited annually, in accordance with sound
auditing standards, by auditors acceptable to the Bank; furnish the Bank, as soon as
available but in any event not later than six (6) months after the end of each related fiscal
year, unaudited copies of such accounts and financial statements, and not later than twelve
(12) months after the end of each related fiscal year, certified copies of such audited
accounts and financial statements and the report of the auditors relating thereto, all in the
English language; and furnish the bank such other information concerning such accounts and
financial statements and the audit thereof as the Bank shall from time to time reasonably
request. Conformably to Philippine Laws, only Auditors of the Commission on Audit shall
undertake the audit in accordance with sound auditing standards and the guidelines
prescribed in the agreement.

IV. Responsibility of Auditors in DA Central and Regional Offices.

Auditors assigned in the DA central and regional offices implementing the ADB-funded
fishery projects shall submit the following documents:

a. Audit certificate containing the auditor's opinion on the financial statements.

b. Balance Sheet duly certified by the Chief Accountant.

 c. Statements of Operations duly certified by the Chief Accountant.

d. Notes to Financial Statements

V. Consolidation of Financial Statements

The financial statements covering the fishery projects submitted by the DA Regional
Offices and the DA Central Office shall be consolidated and certified by the DA Chief
Accountant and audited by the DA Auditor. The consolidated audited financial statements
shall include the following documents:

a. Audit certificate containing the opinion of the Department Auditor on the

consolidated financial statements.

b. Consolidated Balance Sheet.

c. Consolidated Statement of Operations.

d. Notes to the Consolidated Financial Statements.

In the consolidation of financial statements, the accounts of the central and regional
offices pertaining to the program shall be combined by adding together like items of assets,
liabilities, surplus, income and expenses. The consolidation of the accounts shall appear only
in the working papers and not in the books of accounts of the agency.

To ensure the timely consolidation of the financial statements and the submission of the
required reports to the lending institutions, the 1990 and 1991 audited financial statements of
the regions shall be simultaneously submitted to the Department Auditor on or before June
30, 1992. On the other hand, the 1990 and 1991 consolidated audited financial statements
shall be submitted to the COA Chairman thru the Central Office Director exercising audit
jurisdiction over the DA, on or before November 30, 1992 for transmittal to the DA Secretary,
together with the supporting regional audited financial statements. Every year thereafter,
the same deadlines for submission of audited financial statements shall be observed by all
those concerned.

VI. Responsibilities

The COA Central Office Director concerned shall supervise the submission by the DA
Auditor of the consolidated audited financial statements herein required on or before the
prescribed deadline, and prepare the letter for signature of the Chairman or his authorized
representative, transmitting the audited financial statements to the DA Secretary.

The Regional Office Directors shall supervise the submission by the DA Regional
Auditors of the required audited financial statements to the DA Department Auditor for
consolidation on or before the prescribed deadline.

The DA Auditor shall prepare the required reports on the program directly implemented by
the Central Office and shall cause the consolidation of all financial statements related to the
program in order to portray the financial condition and results of operation of the entire
Fishery Program funded by the ADB. Separate consolidated reports shall be prepared for
the ADB-funded projects.

The DA Regional Auditors shall prepare reports herein required and submit the same on
or before the prescribed deadline. Separate audited financial statements shall be prepared for
the ADB-funded projects.

VII. Effectivity

This Circular shall take effect immediately.

(SGD.) EUFEMIO C. DOMINGO, Chairman

(SGD.) ROGELIO B. ESPIRITU, Commissioner
(SGD.) SOFRONIO B. URSAL, Commissioner