Government Expenditures

• Government expenditures are classified as follows:

  • Current Operating Expenditures: Personal Services, Maintenance and Other Operating Expenses, Financial Expenses
  • Capital Outlays
• COA Circular No. 2012-003 (October 29, 2012)


  Updated Guidelines for the Prevention and Disallowance of Irregular, Unnecessary, Excessive, Extravagant & Unconscionable Expenditures
• Expenditure incurred without adhering to established rules, regulations, procedural guidelines, policies, principles or practices that have gained recognition in laws

  Irregular Expenditures
• Transaction conducted in a manner that deviates or departs from, or which does not comply with standards set

  Irregular Expenditures
• Transaction which fails to follow or violates appropriate rules of procedure

  Irregular Expenditures
• Example: Grant of Christmas bonus, cash gift & other fringe benefits to consultants & members of the Board who are not salaried officials of the government

  Irregular Expenditures
• Example: Loyalty service award granted to employees that have not rendered the minimum service of ten years in government

  Irregular Expenditures
• Example: Grant of food allowance, rice subsidy and health care allowance, there is no law authorizing such allowance

  Irregular Expenditures
• Transactions in violation of laws

  Illegal Expenditures
• Example: For widening, repairing & improving sidewalks of a privately owned subdivision where the land it is situated has not been transferred to the government by way of donation or acquired by the government through expropriation

  Illegal Expenditures
• Example: Entering into contracts without covering certificates of availability of funds issued by the Chief Accountant even if the contract is signed by the Accountant as witness

  Illegal Expenditures
• Not supportive of the implementation of the objectives & mission of the agency relative to the nature of its operations

  Unnecessary Expenditures
• Example: Continuous repair or vehicles & equipment already considered beyond economic repair as evidenced by frequent breakdown and non-use after repair

  Unnecessary Expenditures
• Example: Hiring of consultants whose functions are redundant to the respective functions of concerned officials - hiring of procurement consultant, financial consultant, media consultant

  Unnecessary Expenditures
• Signifies unreasonable expense or expenses incurred at an immoderate quantity or exorbitant price

  Excessive Expenditure
• Expenses which exceed what is usual or proper or unreasonably high and beyond just measure or amount

  Excessive Expenditure
• Expenses in excess of reasonable limits

  Excessive Expenditure
• Example: Payment of repair of government equipment at a cost exceeding 3o% of the current market price of the same or similar equipment

  Excessive Expenditure
• Example: Procurement of materials/items in excess of the requirements which eventually expired such as vaccines, medicines, seeds, fertilizer, pesticides, among others.

  Excessive Expenditure
• Expenses incurred without restraint, judiciousness and economy

  Extravagant Expenditures
• Expenses that exceed the bounds of propriety

  Extravagant Expenditures
• Those which are immoderate, prodigal, lavish, luxurious, grossly excessive and injudicious

  Extravagant Expenditures
• Example: Purchase of wines, liquors, cigars & cigarettes except when served during state functions and government-sponsored international conferences and conventions

  Extravagant Expenditures
• Example: Procurement and use of luxury vehicles

  Extravagant Expenditures
• Unreasonable and immoderate, and which no man in his/her right sense would make, nor a fair and honest man would accept as reasonable, and those incurred in violation of ethical and moral standards

  Unconscionable Expenditures
• Example: Grant of exorbitant & unreasonable bonuses, allowances & fringe benefits to public officials and employees

  Unconscionable Expenditures
• Example: Live-in seminars in five-star hotels within an unreasonable period of time

  Unconscionable Expenditures