COMMISSION ON AUDIT CIRCULAR NO.

90-317 January 2, 1990

TO : The Secretaries, Department of Education, Culture and Sports and Department

of Budget and Management; Treasurer of the Philippines; the
Presidents/Chancellors, Chiefs of the Financial and Management Services,
Chief Accountants, Budget Officers, and Auditors, State Universities and
Colleges and All Others Concerned.

SUBJECT: Accounting and Procedural Guidelines in the Closure of the Special Accounts in
the General Fund of State Universities and Colleges.

1.0 PURPOSE

This Circular is issued to prescribe the accounting and procedural guidelines in the
closure of the Special Accounts in the General Fund (SAGF) of State Universities and
Colleges (SUCs).

2.0 RATIONALE

Until 1988 the SUCs were authorized under the annual General Appropriations Act
(GAA) to maintain SAGF where all school fees and other charges were accounted for.
However, Republic Act No. 6688, the GAA for Calendar Year 1989, no longer provides for
the maintenance of SAGF for such income from school fees and other charges.

3.0 GENERAL GUIDELINES

3.1 Effective January 1, 1989, income of SUCs derived from tuition fees, school
charges and other sources as may be imposed by their respective governing
boards shall be accounted for as income of the General Fund and deposited with
the Bureau of the Treasury (BTR).

3.2 The existing SAGF shall be closed and the account balances as of December 31,
1988 are transferred to the General Fund in accordance with the procedures
prescribed herein.

4.0 SPECIFIC GUIDELINES

4.1 Income derived from tuition fees and other charges of SUCS shall be accounted
for as income of the General Fund and deposited with the Bureau of the
Treasury.

4.2 Balances of assets, liabilities and surplus accounts of the SAGF pertaining to the
SUCs shall be transferred to the General Fund of the SUCs concerned in
accordance with the accounting entries prescribed in Annex A. A copy each of
the journal voucher effecting the transfer shall be furnished the Accountancy
Office, COA, the National Cash Accounting Division (NCAD), Bureau of the
Treasury and the Department of Budget and Management.

4.3 Any book balance of the Cash, Other Banks (Account 8-70-300) without the
corresponding trust/depository liability shall be withdrawn and deposited direct to
 the Bureau of the Treasury or through authorized government depository banks
after the transfer of account balances has been made. Accounting entries
regarding the withdrawal and deposit are provided in Annex A1.

4.4 The Chief Accountant shall prepare and submit to BTR and COA Bank/Treasury
Reconciliation Statements as of December 31, 1988 for cash accounts
maintained with the depository bank/BTR for SAGF. Items requiring adjustments
by either the SUCs or BTR shall be adjusted by the party concerned before the
closure/transfer to the General Fund. In this connection, the BTR shall furnish the
SUCs copies of the Treasury/Agency Account Current - Deposits Statements (8-
70-700) as of December 31, 1988.

4.5 The BTR shall transfer the balance of the Treasury/Agency Account Current -
Deposits (Account 8-70-700) of the SAGF originating from appurtenant
transactions to the General Fund of the SUCs concerned. For this purpose, a
journal voucher shall be drawn by BTR, a copy of which shall be furnished the
SUCs concerned and the Accountancy Office, COA.

4.6 State Universities and Colleges shall coordinate with their respective servicing
banks for the transfer of the balance from their current account (8-70-307) under
SAGF to their current account under General Fund (Fund 101 ).

4.7 The funding warrant for prior years' unliquidated obligations under SAGF shall,
henceforth, be released by DBM to the General Fund of SUCs concerned.

5.0 ACCOUNTING ENTRIES

5.1 The accounting entries to be followed by SUCs concerned are provided under
the following Annexes:

Annex A - Transfer of account balances of the SAGF in the

General Fund.

Annex A1 - Withdrawal of amount from the agency current account

(8-70-300) for deposit with the Bureau of the Treasury.

Annex B - Transfer to the General Fund books of 1989

transactions already recorded in SAGF books.

6.0 TRANSITORY PROVISIONS

Transactions recorded in the books of the SAGF after January 1, 1989 shall be
adjusted immediately and transferred to the books of the General Fund in accordance
with procedures/entries shown in Annex B. A copy of the journal voucher drawn in
effecting the transfer shall be furnished the Accountancy Office, Commission on Audit.

7.0 SAVING CLAUSE

Cases not covered by this Circular shall be referred to the Accountancy Office,
Commission on Audit.
8.0 EFFECTIVITY

This Circular shall take effect January 1, 1989.

(SGD.) ALBERTO P. CRUZ, Commissioner

(SGD.) BARTOLOME C. FERNANDEZ, JR., Commissioner
(SGD.) EUFEMIO C. DOMINGO, Chairman