Commision On Audit & GAAP,
We're Aligned
Below presents how TRAKIT aligns with the key principles and practical requirements of COA Circular No. 97-002, helping organizations improve fund accountability, enforce internal controls, and streamline liquidation workflows.
COA Circular 97-002 Requirement
❗ Cash advances limited to specific lawful purposes.
❗ Only permanently appointed officials may be granted advances.
❗ Liquidation must be made within prescribed periods.
❗ No new advance if prior is unliquidated.
❗ Receipts and documentation must be complete and submitted.
❗ Accountability of officers must be tracked.
❗ Refund of unused cash must be recorded.
❗ Use of the imprest system for petty cash.
❗ Liquidation reports and schedules for audit.
❗ Maintenance of individual cashbooks.
❗ Transfer of advances between officers prohibited.
❗ Bonding of officers with ₱2,000+ accountability.
TRAKIT Alignment
✅ Cash advance requests in TRAKIT require a clearly stated purpose and fund type classification.
✅ TRAKIT role management restricts accountable officer roles to assigned users.
✅ System-enforced deadlines and automatic reminders for liquidation.
✅ Advance blocking rule for users with outstanding obligations.
✅ Digital upload of receipts and liquidation documents.
✅ Real-time ledger of cash advances by user, business unit, and project.
✅ Workflow for returning unused amounts and generating proper journal entries.
✅ TRAKIT supports the imprest replenishment model.
✅ Automated generation of liquidation summaries, disbursement schedules, and audit-ready exports.
✅ Digital cashbooks maintained per accountable officer.
✅ TRAKIT disallows transfer of fund responsibility between users.
⚠️ Organization must manually track bonding eligibility.
Notes
📝 Mandatory field in all cash advance forms.
📝 Organizations configure eligibility based on internal HR data.
📝 Based on fund type: travel, salaries, petty cash, etc.
📝 System enforces policy before submission.
📝 Required for submission and approval.
📝 Includes liquidation history and overdue flags.
📝 Tagged to original cash advance.
📝 Petty cash fund management module tracks usage and balances.
📝 Exportable to Excel or PDF with document links.
📝 Includes transactions, balances, and audit log.
📝 Must be closed and reissued to new user.
📝 TRAKIT can flag unbonded status, but bonding compliance is outside the platform’s enforcement scope.
TRAKIT & GAAP
TRAKIT is more than just a cash and expense management platform, it's designed to align with Generally Accepted Accounting Principles (GAAP) to give your organization the structure, transparency and control it needs.
Whether you're handling petty cash, revolving funds, or employee reimbursements, TRAKIT ensures that every peso is approved, traceable, and auditable.
💡 Built-In Best Practices
TRAKIT simplifies financial governance while empowering teams to move faster - with the confidence that financial controls are built-in, not bolted on.
🧾 Matching Principle
Our workflow allows custodians to record and liquidate approved expenses even before funds are physically issued. Supporting GAAP’s matching principle and accurate financial period reporting.
✅ Approval & Authorization
With a clearly defined request-approval-issuance workflow, TRAKIT enforces authorization at every step. Liquidations are only permitted within the approved limits, ensuring full compliance with company policy and accounting best practices.
📊 Transparent Reporting
TRAKIT provides real-time dashboards showing total requested, approved, issued, and liquidated funds. With clear balances and audit trails, finance teams can easily reconcile cash movements and close the books with confidence.
📁 Full Audit Trail
Every transaction is timestamped, user-logged, and fully documented. Detailed histories and supporting attachments make TRAKIT audit-ready and compliant with both GAAP and local regulatory standards (like BIR and COA in the Philippines).
💸 Employee Reimbursements
If custodians spend their own money on approved expenses, TRAKIT recognizes the transaction and ensures reimbursement from future issued funds. This aligns with GAAP’s treatment of valid, substantiated business expenses.
Disclaimer: TRAKIT is not a COA-certified platform. This matrix is intended to demonstrate alignment with COA Circular No. 97-002 and applicable GAAP (Generally Accepted Accounting Principles) for internal policy compliance and audit readiness. While TRAKIT provides tools that support documentation, traceability, and financial control, organizations remain fully responsible for ensuring final compliance through proper internal governance, financial oversight, and adherence to applicable regulatory and accounting standards.
TRAKIT by TOTALFLOW
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