COMMISSION ON AUDIT CIRCULAR NO.

94-001 January 20, 1994

TO

SUBJECT:

All Heads of Departments, Bureaus, Agencies and Offices of the National

Government; Managing Heads of Government Owned and/or Controlled
Corporations, and Self-governing Boards or Commissions; Provincial
Governors; City and Municipal Mayors; COA Directors; All Heads of Auditing
Units, and All Others Concerned.
Prescribing the use of the Manual on Certificate of Settlement and Balance
(Revised 1993).

This Circular is issued to prescribe the use of the Manual on Certificate of Settlement and
Balances (Revised 1993), thereby superseding COA Circular No. 81-156 dated January 19,
1981 as amended. The main features of the Revised Manual, copy of which is hereto
attached as integral part of this Circular, include the following:
1. Limitation of the coverage of the CSB to the revenue and expenditure accounts of
the agencies;
2. Use of the Notice of Charge for disallowances found in the audit of revenues and
receipts;
3. Requirement to disclose in the manual audit report the amount of unsettled
disallowances, charges and suspensions as at year-end;
4. Submission of a special audit report detailing the facts constituting violations of law
or regulations which would warrant the filing of administrative or penal charges;
5.

Procedure in the determination of persons liable for transactions disallowed in audit;

6.

Recording in the books of accounts of disallowances and charges; and

7. Use of the Audit Observation Memorandum to communicate other deficiencies not

taken-up in the Notice of Suspension, Notice of Charge and Notice of Disallowance.
All COA Circular, Memoranda and other issuances inconsistent herewith are hereby
revoked or modified accordingly.
This Circular shall take effect immediately.

(SGD.) PASCASIO S. BANARIA, Chairman

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