RESOLUTION No. 104

WHEREAS, the Civil Service Commission (CSC)
Resolution No. 87-388 dated October 20, 1987 thereof, adopted policies
that R.A. 1080 (CPA) eligibililty be required for appointment as
Accountant and for higher positions in Allied Occupational groups, the
duties of which involve the practice of Accountancy as defined in P.D.
692 — “The Revised Accountancy Law”, in the government agencies, as well
as to the position of Chief Accounting Division in second and lower
class cities, provinces and municipalities;

WHEREAS, the CSC issued on October 20, 1987
Memorandum Circular No. 17, Series of 1987 implementing the said
Resolution and issued on June 27, 1989 Memorandum Circular No. 25
allowing a NON-CPA for appointment or promotion to a permanent
accountant position, provided that he/she possesses the relevant second
level CS eligibility and is a holder of a Bachelor of Science in
Commerce or Bachelor of Science in Business Administration degree major
in Accounting or any B.S. degree major in accounting;

WHEREAS, Section 3, Article I of P.D. 692 states, in
part, to wit “A Certified Public Accountant shall be considered in the
practice of his profession x.x.x if he holds or is appointed to a
position in the accounting occupational group in the government or in
government-owned or controlled corporations, including those performing
proprietary functions, where a civil service eligibility as a Certified
Public Accountant is a pre-requisite.”;

WHEREAS, Resolution No. 87-388 and Memorandum
Circular No. 17 are more in keeping with Sec. 3, Art. I of P.D. 692 than
Memorandum Circular No. 25, inasmuch as R.A. 1080 (CPA) eligibility is a
pre-requisite therein to the appointment to, or holding of, a position
in the accounting occupational group, the duties of which involve
knowledge and practice of accounting and auditing principles and
procedures;

WHEREAS, Memorandum Circular No. 25 runs counter to
the CSC’s call for a “blueprint for the information and
professionalization of the civil service”, does not attract and maintain
a corps of competent and highly skilled professionals in the civil
service, does not promote and maintain professionalism, competence, and
merit system in public personnel administration and does not enhance
further the level of performance in public fiscal management services;

WHEREAS, the Board of Accountancy and the
Professional Regulation Commission will be deprived of the opportunity
to regulate government personnel in the accounting occupational group
whose duties involve the knowledge and practice of accounting and
auditing principles and procedure if Memorandum Circular No. 25’s
implementation is not aborted;

WHEREAS, Memorandum Circular No. 25 is not only
adverse to the professionalization of civil service but is also a
setback against the standard of the accountancy profession;

NOW, THEREFORE, IN VIEW OF THE FOREGOING, the Board RESOLVED, as it hereby RESOLVES,
to adopt and sustain CSC Resolution No. 87-388 and Memorandum Circular
No. 17 as the appropriate construction and application of Sec. 3, Art. I
of P.D. 692 — “The Revised Accountancy Law” and to move for the
reconsideration of CSC Memorandum Circular No. 25, as it is not only
incongruent with the letter and spirit of the said Sec. 3, Art. I of
P.D. 692, but is likewise prejudicial to the thousands of unemployed
CPA’s whose interest must prevail over that of the few non-CPAs aspiring
for appointment and/or promotion.

This Resolution shall take effect immediately.

Adopted: 23 Feb. 1990

(SGD.) HERMOGENES P. POBRE Chairman	(SGD.) LUPO S. RAMOS Vice-Chairman
(SGD.) PURIFICACION A. UNTALAN  Member	(SGD.) GUILLERMO A. CRUZ Member
(SGD.) JESUS A. CASIÑO Member	(SGD.) ALEJANDRO C. REYES Member
(SGD.) EDUARDO B. DE GUIA Member

Approved as part of the Rules and regulations governing the practice
of Accountancy in the Philippines , this 23rd day of February 1990.

(SGD.) JULIO B. FRANCIA, JR. Commissioner
(SGD.) ROSALINDA A. VICENTE Associate Commissioner	(SGD.) MARIANO A. MENDIETA Associate Commissioner