Coa Circular 2016-005.docx

Date: February 8, 2019 Subject: COA Circular 2016-005 dated December 19, 2016 Debtors are not entitled to relief under COA Circular 2016-005. The Circular merely provides for guidelines and procedures for the Write-off of Dormant Receivable Accounts. Its purpose is to reconcile and clean the books of accounts of NGAs, LGUs, and GOCCs of dormant receivable accounts, unliquidated cash advances, and fund transfers for fair presentation of accounts in the FSs1. Write-off of Dormant Accounts as defined therein means the process of derecognizing the asset account and the corresponding allowance for impairment from the books of accounts and transferring the same to the Registry of Accounts Written off (RAWO). This does not mean condoning/extinguishing the obligation of the accountable officer/debtor2. Furthermore, the Circular provides for a Saving Clause which expressly states that COA Circular 2016-005 neither condones the written off accounts nor extinguishes the obligations. The Management shall continue to exert effort to collect the accounts appearing in the RAWO when circumstances would warrant3.

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2.0, COA Circular 2016-005 dated 12-19-2016. 5.9, COA Circular 2016-005 dated 12-19-2016. 3 11.0, COA Circular 2016-005 dated 12-19-2016. 2