payments of ₱50,000.00, for which the beneficiaries of the cooperative shall be
jointly and severally liable. Further examination of the account also showed that
the corresponding amounts due from individual persons under the label “Others”
have had no movements for at least the past three years.
5.8 It is emphasized that COA Circular No. 2007-001 dated October 25, 2007, was
issued to provide for the rules and procedures in the grant and utilization of funds
to NGOs/POs and to establish necessary controls, including promoting
transparency and accountability, and in monitoring projects funded out of funds
granted to these organizations. Hence, it is imperative that the guidelines and
established controls are followed in the release of funds to NGOs/POs, following
the provisions of the aforementioned Circular, as these funds will maintain their
status as public funds.
5.9 In the current set-up of the City Government, organizations can request financial
assistance, by identifying their projects. Upon approval, they receive financial
assistance through loans. The loan beneficiaries must meet their obligations
according to the terms and conditions outlined in the MOA. However, COA has
established requirements for NGOs/POs to access government funds, which
include submission of various documents and reports listed in Section 4.4 of the
same Circular.
5.10 Moreover, Section 4.5.1 of the said COA Circular strictly mandates that it is the
government organization which will identify the priority projects under its Work
and Financial Plan, which may be implemented by the NGO/PO, their purpose/s,
specifications and intended beneficiaries as well as the time frame within the
projects are to be undertaken. To ensure transparency, the foregoing information
shall be published in newspapers, agency websites, bulletin boards, and the like, at
least three months prior to the target date of commencement of the identified
projects.
5.11 In the accounting and reporting aspect, the NGO/PO must provide all records and
documents, including disbursement vouchers related to the utilization of the funds.
The granting government agency, namely, the City Government, is obligated to
maintain financial and accounting records of the funds granted in accordance with
accounting standards. The utilization of the funds granted shall then be recorded in
the City Government’s books of accounts, supported by appropriate documents for
liquidation purposes.
5.12 Under COA Circular No. 2015-009 dated December 1, 2015, which prescribes the
Revised Chart of Accounts for LGUs. Annex B thereof describes the following
accounts as:
❑ Loans Receivable – Others (1-03-01-990)
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