Republic of the Philippines COMMISSION ON AUDIT Commonwealth Avenue, Quezon City, Philippines CIRCULAR To + Provincial Governors, City/Municipal Mayors; Accountants, Cashiers, Local Treasurers, and Budget Officers; COA Assistant Commissioners, Directors and Auditors; and All Others Concerned SUBJECT : Prescribing the Use of the Manual on Financial Management for Barangays ‘The Commission on Audit pursuant to the constitutional mandate to promulgate accounting and auditing rules and regulations pertaining to the funds and property of the Government prepared the Manual on Financial Management for Barangays. In line with the foregoing, this Commission hereby promulgates and prescribes the use of the Manual on Financial Management for Barangays (MFMB).The Manual adopted the Philippine Public Sector Accounting Standards (PPSAS) prescribed under COA Resolution No. 2014-003 dated January 4, 2014. The Manual provides for the following: + new accounts: * recognition; measurement; and presentation of accounts in accordance with the PPSAS; © other financial procedures providing guidelines in the exercise of the duties and responsibilities of the barangay officials as provided in the Code and other laws; and © reporting requirements for barangay accounts compliant with the standards. This supersedes the previous issuances on the presentation and accou financial transactions, 1g of barangay MM € EL G. AGUINALDO Chairman sost (halen ‘Commhissioner