REPUBLIC OF THE PHILIPPINES

NATIONAL BUDGET CIRCULAR

COMMISSION ON AUDIT CIRCULAR
FINANCE CIRCULAR

(OBM-COA-FINANCE JOINT CIRCULAR NO. 5-82)

July 1, 1982

TO : Governor of Central Bank, Heads of Ministries, Bureaus and Offices, Self-

Governing Board and Commissions, State Universities and Colleges,
Government Owned and/or Controlled Corporations, Chief, Financial and
Management Services, Budget Officers, Chief Accountants/Heads of Accounting
Units, Property Officers/Custodians, COA Unit Auditors and Others Concerned

SUBJECT:Budgeting, Accounting and Inventory Control Procedures Applicable to Foreign

Assisted Projects

1.0 Purposes

1.1 To institute uniform procedures in the handling of foreign loan proceeds and
foreign grants accruing to any national government agency or government corporation by
providing specific budgeting and accounting guidelines necessary for its proper recording,
accounting and monitoring.

1.2 To prescribe guidelines for the implementation of pertinent sections of the

General Provisions in the annual General Appropriation Act pertaining Foreign Assisted Projects
(FAPs.)

2.0 Definition of Terms

For purpose of this joint circular, the following terms shall be construed to mean as
follows:

2.1 Foreign Assisted Projects (FAPs) shall include projects partly or fully financed by
foreign loans and foreign grants

2.2 Foreign loans are indebtedness covered loan agreements entered into by and
between the Republic of the Philippines and foreign/international financial institutions,
government or entities, availed of by national government agencies or for relending of
government-owned and/or controlled corporations to finance specific projects and/or
procurement of goods and services under deferred payment arrangements or contracts which
are to be repaid in accordance with the loan agreement.

2.3 Foreign grants are assistance in cash or in kind covered by agreements with
foreign governments, institutions, or individuals for purposes of financing specific projects and/or
procurement of goods and services without any obligation on the part of the donees to repay.
 2.4 Peso counterpart refers to the component of the project cost to be financed from
government-appropriated funds, as part of the governments commitment in the implementation
of the project. In the case of government-owned and/or controlled corporations, the total peso
counterpart may be constituted out of the equity contribution of the national government and/or
internally generated funds.

2.5 Peso cost financing refers to the components of the project cost to be
financed from the proceeds of the loan, which are converted into the Philippine currency, based
on the prevailing exchange rate and to the extent of financing as stipulated in the agreement.

2.6 Foreign exchange cost financing refers to the foreign exchange currency
payments from the proceeds of the loan made directly by the lending institution to the creditors
of the Philippine government abroad.

2.7 Cash Advances/Advanced Funding on the proceeds of loan on a

reimbursable basis when used to implement pertinent provisions of the annual General
Appropriation Act, as distinguished from the ordinary and usual connotation of cash advances,
refer to the peso equivalent of the loan proceeds released as an advance funding by the
national government to the availing/implementing agency through the issuance of Advice
Allotment (AA) and Notice of Cash Disbursement Ceiling (NCDC) based on the Work and
Financial Plan (WFP) prior to the actual receipt of loan proceeds as approved by the Office of
Budget and Management (OBM).

2.8 Long in cash are actual cash proceeds from foreign loan credited to the
account of the Treasurer of the Philippines with Central Bank or any authorized government
depository bank readily available for disbursement.

2.9 Constructive cash loans are foreign loans made available by any foreign
bank or lending institutions, which may be disbursed only upon prior authority from the borrower
to pay for goods and services.

2.10 Commodity loans are foreign loans in the form of goods received for the
direct use of specific projects and/or goods, which are converted into and made available in the
Philippine currency through certain government instrumentalities to finance specific projects.

2.11 Loans through suppliers credit are foreign loans availed of solely for the
procurement of goods on a deferred payment arrangement or contract wherein the supplier
directly transmit the goods and receives the repayment through the banking system.

2.12 Forward Obligational Authority (FOA) refers to the certificate of commitment

or authority given by the OBM to a national government agency certifying that funds shall be
available to cover loan proceeds and peso counterpart fund requirements for specific project
implementation. This will serve as an assurance that the loan proceeds and the peso
counterpart fund requirements are included in the long-term capital program of the national
government

2.13 Obligational Authority (OA) refers to the AA issued by the OBM to

government agencies as the budgetary authorization for the incurrence of obligation.
 2.14 Loan availments are amounts in foreign currency actually withdrawn or utilized
out of the proceeds of such loans through any or combinations of these methods:

2.14.1 Cash Method of loan availment is a scheme whereby the borrowers

receive actual cash proceeds from the lender.

2.14.2 Reimbursement method of loan availment is a scheme whereby the

government, through its instrumentalities, after having made payments from its own
resources for procurement of goods and services including civil works eligible for
financing under the loan, submits to the lender for approval of the application, the lender
makes payment/reimbursement to the borrower. This may involve progress payments on
contracts in accordance with an agreed percentage or portion of the appropriate
category in the allocation of proceeds of loan or as down payment or full payment on
completed transactions or as stipulated in the loan agreement.

2.14.3 Direct payment method of loan availment-is a scheme whereby the

lender pays directly the borrowers creditors. This may include progress payments on
contracts based on agreed financing, purchase or supply of goods and services and
interest due to loan and other charges.

2.14.4 Loan availment by means of Letter of Credit: through commercial banks

of suppliers. This is an availment of foreign exchange in suppliers country whereby upon
the request of the borrower, the lender issue to the commercial bank its irrevocable
agreement to reimburse such bank for payments made by the lender under a Letter of
Credit.

2.14.5 Non-cash availment authority (NCAA) is an authority granted by OBM to

government agency to account for the cash equivalent of loan proceeds availed of
through suppliers credit/constructive cash.

3.0 General Guidelines:

3.1 Proceeds of all foreign loans as well as grants in cash shall be included as source of
income in the budget proposals of agencies corresponding to the loan/grant availments
programmed for the calendar year.

3.2 The peso counterpart and the proceeds of all foreign loans as well as grants in cash
shall be included under separate Key Budgetary Inclusions (KBIs) within the
authorized/approved appropriation ceiling and the program of expenditures of the availing
agency or as lump sum appropriation in the General Appropriations Act or in the Public Works
Act or other appropriation laws.

3.3 The peso counterpart of government-owned and/or controlled corporations may be

provided out of their corporate funds, which do not form part of total expenditure program of
national government. It may also be provided out of the equity investment, which shall be
appropriated as such in the General Appropriations Act, request for release of which is subject
to the usual cash flow analysis.

3.4 The proceeds of loans contracted by the national government as the direct borrower
for relending to or equity investment in government-owned and/or controlled corporation shall
form part of the total expenditure program of government. These shall be covered by a
subsidiary loan agreement/subsidiary investment agreement, the proceeds of which shall be
released as loan/investment outlay through the Bureau of the Treasury (BTR). However, the
proceeds of loans contracted by government-owned and/or controlled corporation as direct
borrowers shall not form part of the total expenditure program of the national government.

3.5 All foreign loans as well as grants in cash shall be covered by an AA together with
the corresponding CDC and/or NCAA and shall be within the obligational authority and the
disbursement ceiling of the national agency/corporation.

3.5.1 Availments under the reimbursement scheme for peso cost financing by
the availing/implementing national agency to finance the project cost shall be duly
authorized through the issuance of an AA with the corresponding CDC (BF 126 C) to the
availing/implementing national agency.

3.5.2 Availments under foreign exchange cost financing by the

availing/implementing agency shall likewise be duly authorized by the OBM through the
issuance of an AA with corresponding NCAA (BF 126D).

3.6 The cash advanced/advanced funding on foreign component shall be made only to
national government agency implementing the projects with a built-in-reimbursement scheme to
meet exclusively the peso cost financing requirement of FAPs. This advance funding may be
utilized subject to the following conditions.

3.6.1 The actual amount of disbursement made out of the peso counterpart
and/or the advance funding shall be promptly requested for reimbursement from the
lending institution within each calendar year in accordance with the agreed
reimbursement procedure. Copies of the application for reimbursement shall be
furnished the BTR and the OBM.

3.6.2 Payment of project expenditures shall not exceed the CDC released for
the peso cost financing.

3.6.3 The head of the implementing agency/project director and chief

accountant shall be responsible for compliance with 3.6.1 and 3.6.2 respectively.

3.7 If the loan documents authorize availment of the loan proceeds on direct payment or
reimbursement scheme, the former shall be preferred.

3.8 A separate set of books of accounts for all FAPs shall be maintained under General
Fund Code 102.

3.9 Grants taken up, as income under the Special Account of General Fund shall be
availed of through the approval of special budget. Grants taken up as trust liability shall be
availed of following the guidelines in the proper handling, operation and accounting for trust
receipts as prescribed in the MB-Finance-COA Circular No. 9-81 dated October 19, 1981.

4.0 Availment Procedures

4.1 For National Government Agencies

4.1.1 Loans in Cash

A. Availments for Peso Cost Financing of Proceeds-Direct Remittance to the BTR.

a. The Central Bank of the Philippines, upon receipt of the proceeds of loans,
shall issue a credit advice to the BTR.

b. The BTR, upon receipt of the credit advice from the Central Bank, shall
notify the availing/implementing agency and B-I or B-II, OBM, of the availability of funds
from the loan proceeds.

c. The availing/implementing agency upon receipt of notification shall submit

four (4) legible copies of WFP in accordance with the approved loan agreement
indicating the projects for which the loan proceeds are intended and whenever
applicable/necessary the organization structure, staffing pattern, and list of equipment
approved by the Management Office (MO) of the OBM, supported by a copy of the credit
memo or certification of the availability of the loan proceeds from the BTR.

d. Based on the credit memo or certification from the BTR, and approved
WFP, the OBM shall issue the appropriate AA together with the corresponding CDC for
loan proceeds to the availing/implementing agency, copy furnished the BTR and the
Commission on Audit (COA). The allotment released shall not exceed the corresponding
programmed appropriation chargeable against the loan proceeds.

e. The BTR, based on the AA from the OBM, shall issue an authorization to
the Central Bank to transfer the amount from a special account to its regular demand
deposit account.

B. Availments for Peso Cost Financing of Proceeds-Reimbursement Method.

a. Under a Built-In-Reimbursement Scheme.

a.1 Based on the authorized appropriation/program and/or the scheduled

drawdown per loan agreement and the implementation program, the
availing/implementing agency shall prepare and submit four (4) legible copies of the
WFP to the OBM.

a.2 The OBM shall issue the appropriate AA to the availing/implementing

agency, copy furnished BTR, based on the approved WFP, equivalent to the total
programmed appropriation for the current year. However, initial release of CD
representing the cash advance/advance funding of the loan proceeds for a new project
shall be allowed in an amount not exceeding fifty percent (50%) of the programmed
availments or of the total reimbursable amount for the current year. Subsequent
advances o the programmed cash availments shall be made during the life of the project
upon showing proof that previous advances had been applied for reimbursement.
Advances for personal services component of the project shall be one hundred percent
(100%) built within the aforecited advance of fifty percent (50%) of programmed
availments.

a.3 The availing/implementing agency shall request for reimbursement from

the lending institution for the actual amount of disbursement made out of the peso
counterpart and/or the cash advances as promptly as possible which should not exceed
the amount of loan proceeds programmed for any particular calendar year to be
reimbursed per loan agreement. The application for reimbursement shall be prepared in
six copies to be distributed as follows:

Original - Lending Institution

Duplicate - NEDA
Triplicate - Debt Management, BTR
One Copy - NAO, OBM
One Copy - B-I/II, OBM
One Copy - Agency Chief Accountant

Said application shall indicate that the loan agreement number should be so specified in
the remittance.

a.4 The availing/implementing agency after it has submitted application for

reimbursement shall request the OBM for the issuance of a subsequent CDC to cover
the remaining 50% of the programmed availments.

a.5 The OBM shall review the agency request and issue subsequent CDC as
cash advance/advanced funding to the project equivalent up to the remaining balance of
fifty percent (50%) of the programmed cash availments.

a.6 The Central Bank, upon receipt of the loan proceeds/remittances from the
lending institution shall issue a credit advice to the BTR.

a.7 The BTR, upon receipt of the credit advice from the Central Bank, shall
notify the availing/implementing agency; the NAO, B-I or B-II, OBM; that the amount
requested has already been reimbursed.

b. Under the Fixed Amount Reimbursement Agreement (FARA)

b.1 Based on the authorized appropriation/program and/or the loan

agreement (FARA), the availing/implementing agency shall prepare and submit four (4)
legible copies of the WFP to the OBM.

b.2 The OBM shall the appropriate AA to the availing/implementing agency

copy furnished Budget Technical Service (BTS), OBM, based on the approved WFP
equivalent to the total programmed availment for the current year. The initial release of
CDC representing the cash advance/advanced funding of the loan proceeds equivalent
to 100% may be issued on specific components of the projects in accordance with the
specific plan and implementation schedule stipulated in the loan document. Application
for reimbursement from the lending institution of the cash advance/advanced funding
shall be made by the availing/implementing agency immediately upon completion of
project or at a certain stage of the project as provided for under the FARA scheme.

4.1.2 Constructive Cash

A. Availments of Foreign Exchange Cost Financing of Proceeds Direct Payments of

Availments Abroad.
 a. Based on the approved loan agreement, appropriation and
implementation program, together with organization structure, staffing pattern, and list of
equipment approved by MO, the availing/implementing agency shall prepare and submit
four (4) legible copies of WFP to OBM with the necessary supporting documents.

b. The OBM shall review the agency request and issue the appropriate AA
to the availing/implementing agency for the purpose of conducting bidding with the
supplier/contractor for the procurement of goods and services, subject to the
concurrence/approval of the creditor.

c. The availing/implementing agency, upon the receipt of the bill from the
supplier/contractor, shall file the application for withdrawal from the loan account with the
creditor to pay for the equipment, supplies, service, etc., abroad.

d. The BTR, upon the receipt of the withdrawal authorization and/or the
notice of disbursement from the lending institution shall record the amount of loan
proceeds as income.

e. Upon receipt of the goods procured abroad under the subject loan
together with the duly acknowledged shipping documents, the Property
Custodian/Officer of the implementing agency shall prepare the Certificate of
Acceptance (Annex A) duly verified by the COA Unit Auditor in five (5) copies to be
distributed as follows:

Original - Agency Accountant

Duplicate - Debt Management Division, BTR
Triplicate - B-I/II, OBM
One Copy - COA Unit Auditor
One Copy - Agency Budget

For the consultancy services rendered under the subject loan the cost shall be based on
a certified copy of the duly approved billing submitted by the Chief Accountant of the
availing/implementing agency.

f. The BTR, based on the withdrawal authorization furnished by the

servicing bank and the Certificate of Acceptance furnished by the availing agency, shall
prepare the Advice of Loan Utilization (Annex B) copy furnished the OBM, NEDA,
COA Unit Auditor and implementing agency.

g. The availing/implementing agency shall submit to OBM their request for

the issuance of NCAA to back up the corresponding expenditures supported by the
Advice of Loan Utilization and Certificate of Acceptance.

h. Based on the Advice of Loan Utilization from the BTR and Certificate
of Acceptance from the availing/implementing agency, the OBM shall review the agency
request and issue the corresponding NCAA to the availing/implementing agency equal to
the amount in the Advice of Loan Utilization copy furnished the BTR and COA.

4.1.3 Commodity Loan

A. Availment of loan proceeds in the form of goods, which are converted and made
available in Philippine Currency such as those under USPL 480.

a. The National Economic and Development Authority (NEDA) upon the

receipt of notice from creditors such as the US Department Of Agriculture and the United
States Agency for International Development (USAID) shall coordinate with
Development Bank of the Philippines (DBP)/Philippine Virginia Tobacco Administration
(PVTA)/National Food Authority (NFA) and other government corporations over the
distribution of goods to qualified importers.

b. The above mentioned government corporations shall distribute to

qualified importers the goods received and submit to NEDA the Schedule of Commodity
Availment. It shall collect from the importers payments for commodities purchased and
deposit the amount to the standby savings account maintained by the BTR with the DBP.
It shall prepare and submit the monthly report of collection to the BTR, copy furnished
NEDA and OBM.

c. The BTR (NCAD and Treasury Miscellaneous) shall record the loan
proceeds upon receipt of the credit advice from DBP covering collection received.

d. The availing agency shall request NEDA for loan availment to finance
qualified projects as appearing in the loan agreement and submit the WFP to the OBM
through NEDA.

e. The OBM shall issue the appropriate AA based on the approved WFP to
the availing agency, copy furnished the NEDA and BTR.

f. The BTR based on the AA and the corresponding CDC, shall request
DBP to transfer the corresponding amount from the Treasury savings account to the
regular demand deposit account of the Treasurer of the Philippines with the Central
Bank.

g. The availing agency shall record the allotment and Obligations incurred in
a separate Journal and Analysis of Obligation (JAO), properly identified as funded out of
the proceeds, USPL $*)-USAID Commodity Loan and submit to the NAO, OBM, COA
Unit Auditor, NEDA, and Debt Management Division, BTR the required accountability
reports.

h. The BTR upon receipts of the credit advice from the DBP for the interest
income earned from the savings account deposit, shall record the amount as income
under the General Fund.

i. The NEDA shall prepare and submit to the BTR the Monthly Status
Report on Commodity Loan (Annex C) copy furnished B-I/II and BTS, OBM.

4.1.4 Suppliers Credit

A. Availment of loan proceeds for the procurement of goods on a deferred payment

arrangement.
 a. The availing/implementing agency based on the approved loan
agreement, appropriation and implementation program, together with organization
structure, staffing pattern and list of equipment approved by MO shall prepare and
submit four (4) legible copies of the WFP to OBM.

b. The OBM shall review the agency request and issue the appropriate AA
equivalent to the actual programmed availment for the current year to the
availing/implementing agency.

c. Based on the AA received, the availing/implementing agency shall

transact business with the foreign supplier for the purchase of equipment on a deferred
payment plan.]

d. Upon receipt of the subject loan in he form of equipment, supplies, spare

parts and other materials supported by duly acknowledged shipping documents, the
availing/implementing agency shall prepare the Certificate of Acceptance in five (5)
copies distributed in accordance with 4.12. e.

e. Based on the withdrawal authorization and notice of disbursements

furnished by the servicing bank and the Certificate of Acceptance from the
availing/implementing agency, the BTR shall prepare and send the Advice of Loan
Utilization to the availing/implementing agency, copy furnished the OBM, NEDA and
COA Unit Auditor. The amount of the loan proceeds shall be recorded as income of the
General Fund by the BTR, Miscellaneous.

f. The availing/implementing agency, based on the Certificate of

Acceptance and Advice of Loan Utilization from the BTR shall prepare and submit a
request for the issuance of the NCAA to the OBM.

g. The OBM shall review the agency request and issue the NCAA to the
availing/implementing agency copy furnished COA Auditor and Debt Management
Division, BTR.

4.2 For Government Owned and/or Controlled Corporations.

4.2.1 Loans in Cash

A. Availment of government-owned and/or controlled corporation through the BTR as

recipient of loan proceeds being relent/invested by the Philippine Government as
the direct borrower.

a. The government corporation shall prepare the WFP for the submission to
the OBM through the BTR, based on the treasury certification in accordance with the
credit advice of the Central Bank.

b. The OBM shall issue the appropriate AA to the BTR together with the
corresponding CDC for loan proceeds as loans/investment outlay.

c. The BTR shall obligate and liquidate the allotment and issue journal
voucher to credit the account of the availing government corporations.
 4.2.2 Suppliers Credit/Constructive Cash

A. Availment by government-owned and/or controlled corporation as recipient of loan

proceeds being relent/invested by Philippine government as direct borrower.

a. The government corporation shall prepare the WFP for submission to the
OBM through the BTR based on project implementation program.

b. The OBM, based on the authorized appropriation/program, shall issue AA

to, the BTR.

c. The BTR upon receipt of the AA from the OBM, shall take it up in its book
of accounts.

d. The government corporation upon receipt of the subject loan in the form
of equipment, supplies, spare parts and other materials supported by duly acknowledged
shipping documents, shall prepare and submit Certificate of Acceptance in eight (8)
copies to be distributed as follows:

Original - Corporate Accountants

Three Copies - NCAD, Miscellaneous. Debt
Management, BTR
One Copy - B-I/II, OBM
One Copy - Corporate Auditor
One Copy - Corporate Budget Officer
One Copy - COA Unit Auditor

e. The BTR, based on the withdrawal authorization, notice of disbursement

furnished by the servicing bank and the Certificate of Acceptance from the government
corporation shall prepare and send the Advice of Loan Utilization to the government
corporation, copy furnished the OBM< NEDA and COA Unit Auditor. The amount of the
loan proceeds shall be recorded as income of the General Fund by the Bureau of the
Treasury.

f. The government corporation, based on the Certificate of Acceptance

and the Advice of Loan Utilization from the BTR shall prepare and submit a request for
the issuance of the NCAA to the OBM.

g. Based on the Certificate of Acceptance and the Advice of Loan

Utilization from the BTR, the OBM shall review the request and issue NCAA to, the BTR,
Miscellaneous as loans outlay of the government corporation, copy furnished the COA.

h. The BTR (Miscellaneous), based on the NCAA, shall liquidate the

corresponding amount in favor of the government corporation.

5.0 Property Inventory Control

5.1 All agencies utilizing foreign loan proceeds for peso cost financing and foreign
exchange cost financing shall maintain the proper inventory control by conducting regular
physical inventory. It shall prepare annually report of property Inventory (Annex D), in four (4)
copies to be distributed as follows:
 Original - Availing/Implementing Agency Chief Accountant
One Copy - BTS, OBM
One Copy - MO, OBM
One Copy - COA Unit Auditor

6.0 Reporting Requirements

6.1 The availing/implementing agency shall submit to the NAO of the OBM, two(2)
legible copies of BF 301, Financial Report of Operations (Breakdown of Obligation by Activity)
and BF 302, Physical Report of Operations as required under Budget Circular No. 263, dated
September 14, 1976 as amended.

6.2 A trial balance for all FAPs shall be submitted to the Accountancy Office, COA and
copy furnished the NAO, OBM, ten days after the end of the quarter, showing separate 0-9
000 accounts for each loan proceeds and the GOP counterpart. Agency with several FAPs shall
maintain 0-90-000 account equal to the number of the said projects. For accounts 0-82-000, the
object class of expenditures shall be shown.

6.3 FAPs and other Foreign Borrowing Monitoring Forms shall be submitted by the
availing/implementing agencies to the BTS of the OBM, COA and the BTR.

6.3.1 Base Data Forms 400 and 401, upon approval of the loan/agreement
thereafter BDF 401 at the start of every calendar year.

6.3.2 Base Data Form 404, upon completion of the project.

6.4 Summary of Reimbursements (Annex E) shall be prepared by the availing agencies

in seven (7) copies to be distributed as follows:

Original - FPS, OBM

Duplicate - BTS, OBM
Triplicate - NAO, OBM
One Copy - NCAD, BTR
One Copy - Accounting Division BTR]
One Copy - NEDA
One Copy - International Audit Division, COA

7.0 Accounting Entries

7.1 Illustrative accounting entries for loans in cash are shown in Annex F.

7.2 Illustrative accounting entries for constructive cash are shown in Annex G.

7.3 Illustrative accounting entries for commodity loan cash proceeds are shown in Annex
H.

7.4 Illustrative accounting entries for suppliers credit are shown in Annex I.
 7.5 Illustrative accounting entries for foreign grants are shown in Annex J.

8.0 Expansion of the New Chart of Accounts

Accounts for Fund 102

0-99-202 NCAA

This account is used to record in the books of the availing/implementing agency only the
authorization issued by the OBM o the government agency concerned to account for the cash
equivalent of loan proceeds availed through suppliers credit/constructive cash.

Debit this account for:

Receipt of NCAA
Receipt of NCAA for unliquidated obligations
Closure of Unused NCAA (debit in parenthesis)

Credit this account for:

Closure of used NCAA

8-99-712 National Clearing Account- Cash Earmarked for NCAA

This account is used to record in the books of the Bureau of the Treasury only, the
amount of loans proceeds covered by NCAA.

Debit this account for:

Amount of NCAA released to availing/implementing agencies

Closure of unused NCAA ( debit in parenthesis)

Credit this account for:

Amount of non-cash disbursement through JV by availing/implementing agency

8-70-712 NCAA Disbursement

This account is used to record the non-cash disbursement through JV made by the
availing/implementing agency.

Books of the Availing Agency

Debit this account for:

Closure of used NCAA

Credit this account for:

Liquidation of obligation

Books of the Bureau of the Treasury

 Debit this account for:

Receipt of withdrawal authorization/advice from foreign banks

Credit this account for:

Closure of used NCAA

8-70-725 Outstanding NCAA Disbursements

This account is used to record in the books of BTR-NCAD only transactions pertaining to
disbursements charged by foreign banks against the loan account/availments through Suppliers
Credit.

Debit this account for:

Amount of disbursement charged by foreign banks against the loan

account/availments through Suppliers credit.

Credit this account:

Receipt of withdrawal authorization from foreign banks/reports of receipt of

equipment/supplies.
8-99-1025 Unreleased NCAA

This account is used to record in the books of availing/implementing agencies only the
amount of released allotments not covered by NCAA

Debit this account for:

Amount of allotments not covered by NCAA

Balanced of unreleased NCAA
Balance of unobligated allotment (debit in parenthesis)

Credit this account for:

Release of NCAA for unliquidated obligations

8-99-400 National Clearing Account- Non-Cash Disbursement Authority

This account is used to record in the books of the Bureau of the Treasury only, the
amount of NCAA released to the availing/implementing agency.

Debit this account for:

Amount of non-cash disbursements made by the availing/implementing agency.

Credit this account for:

Amount of NCAA released to the availing/implementing agency

9.0 Repealing Clause

 All circulars including Budget Circular No. 278, dated June 30, 1978, National Budget
Circular 306-A and 341, COA General Circulars No. 125, as amended and No.126 and other
issuances inconsistent with this Circular are hereby rescinded, repealed and/or modified
accordingly.

10.0 Effectivity

This Circular shall take effect immediately.

(SGD.) CESAR E.A. VIRATA

Minister of Finance

(SGD.) FRANCISCO S. TANTUICO, JR. (SGD.) MANULE S. ALBA

Chairman, Commission On Audit Minister of the Budget