(Illustrative Example Only)

ANNEX A

STATEMENT OF CASH ADVANCES AND LIQUIDATIONS

As of December 31, 200__

Name of Accountable Officer : ___________________________________

Position/Designation: Administrative Officer V/Special Disbursing Officer
CASH ADVANCES:
CA
Voucher No.

Date
200__
Beg. Balance
0210
Jan. 15
0261
Feb. 15
0311
Mar. 20
0361
Apr. 2
0391
July 14
0481
Oct. 10
0501
Oct. 20
Total Cash Advances

Check
No.

Purpose*

300,000.00
400,000.00
500,000.00
400,000.00
500,000.00
300,000.00
500,000.00
P 2,900,000.00

131
161
201
241
291
371
401

LIQUIDATIONS:
Liquidation
Date
Voucher No.
200__
0291
Feb. 20
0281
Mar. 2
0321
July 2
0381
Oct. 20
Total Liquidations

Purpose/Remarks**

Amount
P

300,000.00
100,000.00
500,000.00
700,000.00
P 1,600,000.00

UNLIQUIDATED CASH ADVANCES as of December 31, 200__

INSTRUCTIONS:
*Specify the purpose stated on the voucher. If
none is specified, indicate No purpose
specified.
**If specific CAs are liquidated, indicate In
Full/partial liquidation of CA voucher(s)
No(s) __. If no CA is specified, indicate
None specified.

Amount
NONE

P 1,300,000.00

Prepared by:

_______________________________
Audit Team Leader

(Illustrative Example Only)

ANNEX B
Republic of the Philippines
_______________________________
(Name of the Agency)
_______________________________
(Address)
OFFICE OF THE AUDITOR
______________
(Date)
DEMAND LETTER

__________________________
__________________________
__________________________

Sir/Madam:
Records of this Office show that as of ________________, you have outstanding unliquidated cash
advances in
the
total
amount
of ______________________________________________,
(P_______________), per attached Statement of Cash Advances and Liquidations.
Under Section 5.1, COA Circular No. 97-002, you are required to liquidate your cash advances as
follows:
1. Salaries, Wages, etc. within five (5) days after each fifteen (15) day/end of the month pay period;
2. Petty Operating Expenses and Field Operating Expenses within twenty (20) days after the end of
the year, subject to replenishment as frequently as necessary during the year;
3. Official Travel within sixty (60) days after return to the Philippines, in the case of foreign travel or
within thirty (30) days after return to permanent official station in the case of local travel, as
provided for in E.O. 248 and COA Circular No. 96-004.
In addition, Section 5.8 requires that all cash advances should be fully liquidated at the end of each year,
except for petty cash fund.
The prescribed period for you to liquidate your cash advance has already lapsed, but to date we have
neither received any of your liquidations nor a written explanation for your failure to do so.
In view of this, demand is hereby made of you to settle your accountabilities with the Accounting
Section within thirty (30) days from receipt hereof, through the submission of the necessary supporting
documents, and to refund any excess amount or submit a written explanation for your failure to do so.
Failure on your part to comply herewith shall constitute a ground for the withholding of the payment of
any money due you as provided for by COA Circular No. 97-002 dated February 10, 1997, and a prima facie
presumption under Article 217 of the Revised Penal Code that you have malversed the funds to your personal
use and benefit (Martinez vs. Sandiganbayan, GR No. 126413 dated August 10, 1999). Your failure shall
likewise constitute violation of Article 218 of the Revised Penal Code for failure to render accounts and of
Section 89 of PD 1445 which is punishable under Section 128 of the same Code.

___________________
Auditor

Cc: The Agency Head

ANNEX C

(Illustrative Example Only)

Narrative Report
On
Unliquidated Cash Advances
In compliance with COA Memorandum No. __________ dated _____________,
particularly item no. 1 thereof, I identified and verified outstanding cash advances aged
thirty (30) days or over from their due dates of liquidation. As a result, it was discovered
that
Mr________________________________,
an
employee/official
of
_______________________________________________________________________
has outstanding unliquidated cash advance as of December 31, 200__ in the amount of
P________________, in violation of Section 5.1.2, COA Circular No. 97-002.
Section 5.1.2. COA Circular No. 97-002 provides that the Accountable Officer
shall liquidate his cash advance within twenty (20) days after the end of the year.
It was observed that as of ____________________________________________
M _________________________________ has not yet liquidated his/her cash advances
which had a balance of P____________________ (Annex A) as of December 31, 200___.
Under the aforesaid rules and regulations Mr/Ms_______________ should have
liquidated his/her cash advance not later than January 20, 200 ___. The liquidation
therefore of his cash advance is overdue by more than twenty (20) days in violation of the
COA Circular cited above.
A demand letter was served to the Accountable Officer demanding liquidation or
explanation for non-liquidation. However, as of date of this report, after the lapse of
the thirty (30) day period given him/her within which to liquidate or explain why he/she
has not liquidated his/her outstanding cash advances, he/she still failed to comply with
our demand.

Prepared by:

_______________________________
Audit Team Leader