In order to undertake the project for which the transferred funds are intended and to liquidate these funds, the following documentation requirements must be met as prescribed by COA Circular 2012-001 dated June 14, 2012:
Implementing Agency:
- Necessary supporting documents depending on the nature of transactions
- Copy of MOA/Trust Agreement
- Copy of OR upon receipt of funds transferred
- Copy of OR issued by the Source Agency evidencing refund of unexpended/unutilized balance of fund transfer
Source Agency (Liquidation):
- Report of Checks Issued and Report of Disbursements certified correct by the Accountant, approved by the Head of the IA, and duly audited by the Auditor of the IA
- Copy of Credit Notice issued by the Auditor of the IA
- Copy of OR issued for the refund of unexpended/unutilized balance of fund transferred
(Source: COA Circular 2012-001 dated June 14, 2012)
*COA Circular No. 2023-004 dated June 14, 2023 prescribes the Updated Documentary Requirements for common government transactions including fund transfers to Non-Government Organizations/People’s Organizations/Civil Society Organizations and fund transfers to Implementing Agencies.
3.0 Fund Transfers to Implementing Agency
3.1 Transfer of Fund – Source Agency
- Copy of duly signed MOA/Trust Agreement or its equivalent
- Copy of Approved Program of Work (for infrastructure project)
- Approved Project Expenditures or Estimated Expenses indicating the project objective and expected output (for projects other than infrastructure)
- For GCs/GFis, Board Resolution ratifying the MOA or its equivalent in case of transfers not incorporated in the Corporate Operating Budget and/or beyond the signing authority of the Agency Head
- For local government units (LGUs), authorization by local Sanggunian for the Local Chief Executive to enter into contract in case of the following:
- o In the case of a reenacted budget: For the new contracts entered into by the local chief executive for contractual obligations included in the previous year’s annual and supplemental budget
- o In the case of the regularly enacted budget: ■ For projects described in generic terms, such as infrastructure projects, inter-municipal waterworks, drainage and sewerage, flood control, irrigation system projects, reclamation projects, or roads and bridges. ■ For purchase of goods and services which are neither specified nor encompassed within the regular personnel services and maintenance and other operating expenses
- Certification by the Chief Accountant that funds previously transferred to the Implementing Agency (IA) have been liquidated and accounted for in the books
- Copy of the OR/eOR/AR or equivalent issued by the IA to the Source Agency acknowledging receipt of funds transferred (for post-audit activities)
- Copy of the OR/eOR/AR or equivalent from IA to source agency, if transfer of funds is thru List of Due and Demandable Accounts Payable Advice to it Accounts (LDDAP-ADA)
- Acknowledgement Receipt for those recipients of research fund
- Copy of the TCT of the land where the project will be built and a certification from the implementing agency that the site is clear from impediments, e.g. informal settlers, legal claims of property ownership by other claimants, mountain obstruction, right of way
3.2 Liquidation of Funds Transferred – Implementing Agency
- Copy of duly signed MOA/Trust Agreement/Terms of Reference or its equivalent
- Original copy of the Report of Checks Issued/Report of Advice to Debit Account Issued and/or Report of Cash Disbursements and supporting documents duly Certified Correct by the Chief Accountant and approved by the Agency Head
- Copy of OR/eOR/AR or equivalent issued by the Source Agency evidencing refund of unexpended/unutilized balance of fund transfer
- Status of Project/Program/Activity Accomplishment Inspection and Acceptance Report of research outputs of Completed (Research) Projects, approved by the Agency Head and duly acknowledged by the SA.
Liquidation of Funds – Source Agency
- Copies of Approved Journal Entry Vouchers of all transactions charged from the fund drawn by the Chief Accountant of the IA
- Duplicate copy of the Report of Checks Issued/Report of Advice to Debit Account Issued and/or Report of Cash Disbursements and supporting documents duly certified correct by the Chief Accountant and approved by the Agency Head, stamped “received” by the Auditor of the IA
- Copy of OR/eOR/AR or equivalent upon receipt of funds transferred
- Copy of Notices of Disallowance and subsequent audit decisions issued, if any
Copy of OR/eOR/AR or equivalent issued for the refund of unexpended/unutilized balance of fund transferred