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COMMISSION ON AUDIT CIRCULAR NO. 80-92-A September 17, 1980

TO : All Heads of Ministries, Bureaus and Offices of National Government; ManagingHeads of Government Owned and/or Controlled Corporations, Boards and

Commission; Chief Accountants/Corporate Treasurers; Provincial Governors,City/Municipal Mayors; Local Treasurers; COA Managers/Regional Directors,Auditors and All Others Concerned.

SUBJECT : Amendment of COA Circular 78-92, to delete from the Standard GovernmentChart of Accounts (SGCA) the account 3-23-000, pursuant to the provisions ofP.D. No. 1421.

To conform with the amended definition of current operating expenditures (COE), asembodied in P.D. No. 1421, the Standard Government Chart of Accounts is hereby amended todelete from the account codes 3-23-000, intended for Furniture, Equipment and Books, under

the maintenance and operating expenditures of agencies. Henceforth, all furniture, equipmentand books the cost of which amount to P300 or more, whose serviceable life is more than oneyear and which add to the assets of the government, shall be charged to account 4-33-000.Furniture and Equipment Outlay.

Thus, the definition for the account 4-33-000, Furniture and Equipment Outlay, isamended to read as follows:

"This account includes furniture, equipment and books the cost of whichamount to P300 or more, whose serviceable life is more than one year and whichadd to the assets of the government".

As a result of such amendment, properties having value of less than P300 and which arenormally consumed within a year shall be classified as supplies and materials.

However, for properties having value of less than P300 but with a life expectancy ofmore than one year, or the benefits from which, last for more than one year, but which will havedecreased substantially in their value, i.e., these will have nominal value after being used foronly one year, shall likewise be treated as semi-expendable supplies and materials which will beaccounted for as follows:

To record receipt of semi-expendable supplies and materials upon payment:

Dr. Cr.

8-72-600 xx8-86-600 xx

To record disposition:

8-86-600 xx8-72-600 xx

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These items should be duly covered by Memorandum Receipts when issued for use bythe property officer.

In view of these, the definitions and instructions of when to debit and credit the accounts8-72-600 and 8-86-600 are likewise amended and shall read as follows:

"8-72-600 Inventories - Semi-Expendable Supplies Containers and Property

This account is used to record the cost of semi- expendable supplies, containersand property purchased for use in the course of government operations and charged toappropriation or allotments. It includes containers, acquired after the contents wereused such as drums, bottles, etc., which have market value but for which no depositswere paid when the contents were purchased. This has a contra account 8-86-600.

Debit this account for:

Semi-expendable supplies, containers, furni- ture, equipment and bookswith a value of not more than P300 each and/or with a life expectancy of

more than one year, charged to appropriations.

Containers charged to appropriations.

Empty containers left after contents were used.

Credit this account for:

Use, sale and other disposition of the above items.

8-86-600 Miscellaneous Liabilities and Deferred Credits - Semi-Expendable Supplies,Containers and Property

This account is used as a contra-account of 8-72-600, representing semi-expendable supplies, containers and property which had already been chargedto appropriations.

Debit this account for:

Loss of semi-expendable items.

Use, sale and other disposition of semi-expendable items.

Credit this account for:

Semi-expendable supplies, containers, furniture, equipment and bookswith a value of not more than P300 each and/or with a life expectancy ofmore than one year, charged to appropriations.

Containers charged to appropriations.

Empty containers left after contents were used".

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