GUIDELINES ON THE PROPER DISPOSITION OF DORMANT ACCOUNTS - COA Circular No. 2023-008

Sep 16, 2026

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Guidelines establish procedures for the proper disposition of all dormant accounts of NGAs, LGUs, and GOCCs not covered by specific laws, rules, and regulations. The circular amends COA Circular No. 2016-005 on the write-off of dormant receivable accounts, unliquidated cash advances, and fund transfers. It also aims to fast track cleansing of dormant accounts to support fair financial statement presentation. It outlines legal basis and general steps, including one-time cleansing and scheduling dormant receivables and related items.

LanguageEnglish

CategoryLetters

FormatPDF

Pages45

Reading Time16 min

AccessFree to download

Legal Basis

Scope and Objectives

Accounts Covered (Examples)

General Guidelines

One-time cleansing of all dormant accounts

Determine coverage by LRRs

Prepare schedules (Annexes 1-4)

If dormancy cannot be addressed, apply circular procedures

GUIDELINES ON THE PROPER DISPOSITION OF DORMANT ACCOUNTS OF NGAS, LGUS AND GOCCS VIRGINIA A. LERO, CPA March 26, 2025 Grand Menseng Hotel Davao City COA Circular No. 2023-008 dated August 17, 2023 re: Guidelines on the Proper Disposition of Dormant Accounts of NGAs and Instrumentalities, LGUs and GCs, Amending COA Circular No. 2016-005 dated December 19, 2016 re: Guidelines and Procedureson the Write-off of Dormant Receivable Accounts, Unliquidated Cash Advances, and Fund Transfers of NGAs, LGUs and GCs To prescribe the guidelines and procedures on the proper disposition of all dormant accounts of NGAs, LGUs and GCs, not covered by specific laws, rules and regulations, amending COA Circular No. 2016-005 , and to fast track the cleansing of dormant accounts of government agencies for the fair presentation of accounts in the financial statements. Legal Basis Section 2(2) Article IX-D P.D. 1445 Sec. 25* *In relation to Section 10 (4), Chapter 4 , subtitle B, Title I, Book V of the Administrative Code of 1987 Accounts Receivable Due from Officers and Employees Other Receivables Advances for Operating Expenses Advances for Payroll Advances to Special Disbursing Officer Advances to Officers and Employees Due from National Government Agencies Due from Government-Owned or Controlled Corporations/Other Government Corporations Due from Local Government Units Due from Non-Government Organizations/Civil Society Organizations/ People’s Organizations Due from Central Office/Home/Head Office Due from Bureaus Due from Regional Offices/Branch Offices Due from Operating/Field Units Due from Other Funds Due from Special Accounts Due from Local Economic Enterprise Due to NGAs Due to GOCCs/Other Government Corporations Due to LGUs Due to Central Office/Home/Head Office Due to Bureaus Due to Regional Offices/Branch Offices Due to Operating Units/Field Units Due to Other Funds Due to Special Accounts Due to Local Economic Enterprise 􀂙 Investments 􀂙 Inventories 􀂙 Investment Property 􀂙 Intagible Assets 􀂙 Deferred Credits 􀂙 Other accounts which are not covered by specific laws, rules and regulations for their proper disposition. • Write-off of loans and advances of Government Financial Institutions • Receivables arising from disallowances and charges ; • Receivables arising from cash shortages ; • Claims from entities’ officers and employees and other parties for transactions which are the subject of apending case in court or before investigative authorities ; • All dormant accounts covered by specific LRRs for their disposition Dormant accounts covered by specific LRRs for their disposition, but not limited to the following: 􀂾 Cash, unauthorized accounts, unnecessary special and trust funds and related accounts 􀂾 Accounts Payable Unliquidated obligations 􀂾 Property, Plant and Equipment 􀂾 Deferred Tax Assets/ Liabilities [https://forms.gle/d7rGLjB3QVmH2C1G6](https://forms.gle/d7rGLjB3QVmH2C1G6) 6.0 General Guidelines 6.1 One-time cleansing of all dormant accounts Determine the existence of dormant accounts Determine whether dormant accounts are covered by LRRs Prepare Schedules of Dormant Receivables, Unliquidated Cash Advances, Intra/Interagency Fund Transfersand Other Dormant Accounts (Annexes 1-4) 6.5 If dormancy cannot be addressed through 6.4, apply the procedures prescribed by the Circular.

FAQs

What is the purpose of COA Circular No. 2023-008?

It prescribes guidelines and procedures for the proper disposition of dormant accounts of NGAs, LGUs, and GOCCs not covered by specific laws or regulations. It also aims to fast track cleansing of dormant accounts for fair financial statement presentation.

Which earlier COA circular is amended by this document?

The circular amends COA Circular No. 2016-005 dated December 19, 2016, which provided guidelines and procedures on the write-off of dormant receivable accounts, unliquidated cash advances, and fund transfers.

What general steps are included in the guidelines?

The document includes determining the existence of dormant accounts, determining whether they are covered by LRRs, and preparing schedules of dormant receivables, unliquidated cash advances, intra/interagency fund transfers, and other dormant accounts (Annexes 1-4). If dormancy cannot be addressed, it instructs applying the procedures in the circular.

Sep 16, 2026

Upload by Dozel