New Government Accounting System Manual

THE NEW GOVERNMENT ACCOUNTING SYSTEM MANUAL
For Local Government Units

Ca!ter "# INTRO$UCTION
Sec. 01. Objectives of the Manual. The New Government Accounting Sstem
Manual !resents the basic !olicies an" !roce"ures# the new co"ing sstem an"
chart of accounts# the accounting boo$s% re!orts&forms an" financial statements%
an" illustrative accounting entries to be a"o!te" b all local government units
effective 'anuar 1% (00(. The objectives of the Manual are to !rescribe the
following)
a* +niform gui"elines an" !roce"ures in accounting for government fun"s an"
!ro!ert#
b* New co"ing structure an" new chart of accounts# an"
c* New accounting boo$s% re!orts&forms% financial statements an" accounting
entries.
Sec. 0(. ,overage. This Manual shall be use" b all local government units
-.G+s*.
Sec. 0/. .egal 0asis. This Manual is !rescribe" b the ,ommission on Au"it
!ursuant to Article 1234% Section ( !ar. -(* of the 1567 ,onstitution of the 8e!ublic of
the 9hili!!ines which !rovi"es that)
:The ,ommission on Au"it shall have e;clusive authorit% subject to the
limitations in this Article% to "efine the sco!e of its au"it an" e;amination% establish
the techni<ues an" metho"s re<uire" therefor% an" !romulgate accounting an"
au"iting rules an" regulations% inclu"ing those for the !revention an" "isallowance
of irregular% unnecessar% e;cessive% e;travagant% or unconscionable e;!en"itures%
or uses of government fun"s an" !ro!erties:. -un"erscoring su!!lie"*
Ca!ter %# &ASIC FEATURES AN$ 'OLICIES
Sec. 0=. 0asic >eatures an" 9olicies. The new government accounting sstem has
the following basic features an" !olicies% to wit)
1. Accrual Accounting. A mo"ifie" accrual basis of accounting is use". +n"er
this metho"% all e;!enses shall be recogni?e" when incurre". 1ncome shall
be on accrual basis -e.g. Share from 1nternal 8evenue ,ollections* e;ce!t
for transactions where accrual basis is im!ractical -e.g. Mar$et >ees* or
when other metho"s ma be re<uire" b law.
(. One >un" ,once!t. This sstem a"o!ts the one fun" conce!t. Se!arate
fun" accounting shall be "one onl when s!ecificall re<uire" b law or b
a "onor agenc or when otherwise necessitate" b circumstances subject
to !rior a!!roval of the ,ommission. As re<uire" un"er Sections /06% /05
an" /10 of the .ocal Government ,o"e% se!arate boo$s shall be maintaine"
for the General >un"% S!ecial @"ucation >un" an" Trust >un".
/. S!ecial Accounts in the General >un". S!ecial accounts in the General
>un" com!lete with subsi"iar le"gers% shall be maintaine" for the
following)
A 9ublic utilities an" other economic enter!rises#
A .oans% interests% bon"s issue"% an" other contributions for
s!ecific !ur!oses#
A 4evelo!ment !rojects fun"e" from the Share in the 1nternal
8evenue ,ollections# an"
A Such other s!ecial accounts which ma be create" b law or
or"inance.
=. ,hart of Accounts an" Account ,o"es. A new co"ing structure an" a new
chart of accounts with a three3"igit account numbering sstem shall be
a"o!te".
B. 0oo$s of Accounts. The 0oo$s of Accounts are as follows)
C. 'ournals
A ,ash 8ecei!ts 'ournal -,8'*
A ,ash 4isbursements 'ournal -,4'*
A ,hec$ 4isbursements 'ournal -,D4'*
A General 'ournal -G'*
7. .e"gers
A General .e"ger -G.*
A Subsi"iar .e"gers% where a!!licable for)
A ,ash
A 8eceivables
A 1nventories
A 1nvestments
A 9ro!ert% 9lant an" @<ui!ment
A .iabilities
A 1ncome
A @;!enses
6. All the above recor"s shall be maintaine" b the accounting unit of the
.G+s. Eowever% treasurers an" "isbursing officers shall also maintain their
res!ective cash recor"s such as)
A ,ashboo$ ,ash in Treasur
A ,ashboo$ ,ash in 0an$
A ,ashboo$ ,ash A"vances
5. The Treasurers&,ollectors shall !re!are the 8e!ort of ,ollections an"
4e!osits -8,4* "ail an" the 8e!ort of Accountabilit for Accountable
>orms -8AA>* monthl.
10. >inancial Statements. The following statements shall be !re!are")
A 0alance Sheet
A Statement of 1ncome an" @;!enses
A Statement of ,ash >lows
11. Notes to >inancial Statements shall accom!an the above statements.
1(. Trial 0alance. The two mone3column trial balance shall be use".
1/. A!!ro!riations% Allotments an" Obligations. 'ournal entr shall no longer be
!re!are" to recor" the a!!ro!riations% recei!t of allotments an" incurrence
of obligations. 1n lieu of this% se!arate registries shall be maintaine" b the
Accounting +nit to control the a!!ro!riations% allotments an" obligations
for each of the four classes of e;!en"itures% namel)
1
A 8egistr of A!!ro!riations% Allotments an" Obligations
,a!ital Outla -8AAO,O*
Maintenance an" Other O!erating @;!enses -8AAOMO*
9ersonal Services -8AAO9S*
>inancial @;!enses -8AAO>@*.
1=. >inancial @;!enses. >inancial e;!enses such as ban$ charges% interest
e;!enses% commitment fees an" other relate" e;!enses shall be se!aratel
classifie" from Maintenance an" Other O!erating @;!enses -MOO@*.
1B. 9er!etual 1nventor of Su!!lies an" Materials. Su!!lies an" materials
!urchase" for inventor !ur!ose shall be recor"e" using the !er!etual
inventor sstem. 8egular !urchases shall be course" thru the inventor
account an" issuances thereof shall be recor"e" as the ta$e !lace e;ce!t
those !urchase" out of !ett cash fun" which shall be for imme"iate use
an" not for stoc$. Such case shall be charge" imme"iatel to the
a!!ro!riate e;!ense accounts.
1C. Faluation of 1nventor. ,ost of en"ing inventor of su!!lies an" materials
shall be com!ute" using the moving average metho".
17. Maintenance of Su!!lies an" 9ro!ert% 9lant an" @<ui!ment .e"ger ,ar"s.
The Accounting +nit shall maintain Su!!lies .e"ger ,ar"s b stoc$ number
an" 9ro!ert% 9lant an" @<ui!ment .e"ger ,ar"s b categor of assets.
16. ,onstruction of Assets. >or assets un"er construction% the ,onstruction
9erio" Theor shall be a!!lie" for costing !ur!oses. 0onus !ai" to the
contractor for com!leting the wor$ ahea" of time shall be a""e" to the
total cost of the !roject. .i<ui"ate" "amages charge" an" !ai" for b the
contractor shall be "e"ucte" from the total cost of the asset. An relate"
e;!enses incurre" "uring the construction of the !roject% such as% license
fees% !ermit fees% clearance fees% etc. shall be ca!itali?e".
15. 9ublic 1nfrastructures. 9ublic infrastructures are assets for use of the
general !ublic% such as roa"s% bri"ges% waterwas% railwas% !la?as%
monuments% etc. A 8egistr of 9ublic 1nfrastructures -891* shall be
maintaine" accor"ing to classification to recor" all infrastructures for use of
the general !ublic. The following are the 8egistries to be maintaine"%
classifie" b categor of !ro!ert% !lant an" e<ui!ment)
A 8egistr of 9ublic 1nfrastructure 0ri"ges -8910*
A 8egistr of 9ublic 1nfrastructure 8oa"s -8918*
A 8egistr of 9ublic 1nfrastructure 9la?as% Monuments% etc.
-8919*
(0. 4uring construction these infrastructures shall be recor"e" in the boo$s
un"er the account G,onstruction in 9rogressH. +!on com!letion% the
com!lete" asset shall be transferre" to the account G9ublic 1nfrastructureH.
At the en" of the ear% com!lete" assets un"er G9ublic 1nfrastructureH shall
be transferre" to the res!ective registr.
(1. ,om!lete" !ublic infrastructures fun"e" out of a loan shall% however% be
retaine" in the boo$s of accounts until the loan is full !ai".
((. A Summar of all 9ublic 1nfrastructures -base" on the "ifferent registries*
shall be !re!are" annuall an" inclu"e" in the Notes to >inancial
Statements.
(/. 4e!reciation. The straight3line metho" of "e!reciation shall be use". A
resi"ual value e<uivalent to ten !ercent -10I* of the cost shall be set3u!
an" "e!reciation shall start on the secon" month after
!urchase&com!letion of the !ro!ert% !lant an" e<ui!ment. 9ublic
infrastructures shall not be charge" an "e!reciation.
(=. 8eclassification of Obsolete an" +nserviceable Assets% as well as Assets No
.onger +se" b the Agenc to GOther AssetsH Account. Assets "eclare" b
!ro!er authorities as obsolete an" unserviceable% inclu"ing assets of the
agenc no longer use"% shall be reclassifie" to GOther AssetsH account from
the corres!on"ing inventor an" !ro!ert% !lant an" e<ui!ment accounts.
(B. Allowance for 4oubtful Accounts. An Allowance for 4oubtful Accounts shall
be set u! for estimate" uncollectible receivables. This will allow for a fair
valuation of receivables. Allowance for 4oubtful Accounts shall be !rovi"e"
onl for tra"e receivables.
(C. @limination of ,ontingent Accounts. ,ontingent accounts shall no longer be
use". All financial transactions shall be recor"e" using the a!!ro!riate
accounts. ,ash shortages an" "isallowe" !aments shall be recor"e" un"er
receivable accounts G4ue >rom Officers an" @m!loeesH an"
G8eceivables 4isallowances&,hargesH% as the case ma be.
(7. 8ecognition of .iabilit. .iabilit shall be recogni?e" at the time goo"s an"
services are acce!te" or ren"ere" an" su!!lier&cre"itor bills are receive".
(6. 1nterest Accrual. Jhenever a!!licable an" a!!ro!riate% interest income
an"&or e;!ense shall be accrue" an" recogni?e" in the boo$s of accounts.
(5. Accounting for 0orrowings an" .oans. All borrowings an" loans incurre"
shall be recor"e" "irect to the a!!ro!riate liabilit accounts.
/0. @limination of corollar an" negative entries. The use of corollar an"
negative entries shall be sto!!e". Ac<uisition&4is!osition of assets shall be
"ebite"&cre"ite" "irect to the a!!ro!riate asset accounts. 1f an error is
committe"% a correcting entr shall be !re!are" to a"just the original entr.
Ca!ter (# ACCOUNTING SYSTEM
A# GENERAL ACCOUNTING 'LAN
Sec# )*# General Acco+ntin, 'lan# - The General Accounting 9lan shows the
overall accounting ccle in the .ocal Government +nit. Transactions shall emanate
from the "ifferent offices&"e!artments of the local government units -.G+s*. These
offices&"e!artments will !rovi"e&!ro"uce the source "ocuments an" other
accounting forms lea"ing to the !erfection of the transaction% whether it be
bu"getar% collections or "isbursements. The source "ocuments an" accounting
forms shall be the basis for the !re!aration of re!orts b the Office of the Treasurer.
The Office of the Accountant shall recor" the transactions to the registries or to the
corres!on"ing boo$s of original entr. 9osting to the boo$s of final entr an"
2
!re!aration of the financial re!orts shall also be un"erta$en b the Office of the
Accountant.
The General Accounting 9lan (Table 1) is !resente" as to the following t!e
of transactions)
1* A!!ro!riations% Allotments an" Obligations
(* ,ollections an" 4e!osits
/* 4isbursements
a* 0 cash
b* 0 chec$
=* Miscellaneous an" Other transactions
&# &U$GETARY ACCOUNTS
Sec# ).# &+/,etar0 Acco+nts# - 0u"getar accounts are com!ose" of
a!!ro!riations% allotments an" obligations.
Sec# )1# Acco+ntin, 2or A!!ro!riations# A!!ro!riation refers to an
authori?ation ma"e b or"inance% "irecting the !ament of goo"s an" services from
local government fun"s un"er s!ecifie" con"itions or for s!ecific !ur!oses.
G@N@8A. A,,O+NT1NG 9.AN -MS @;cel file*
3
The local sanggunian a!!roves the annual bu"get thru the issuance of a!!ro!riation
or"inance. On the first business "a of the fiscal ear% the entire annual bu"get of
the local government unit shall be recor"e" in the 8egistr of A!!ro!riations%
Allotments an" Obligations -8AAO*. The a!!ro!riations% in the amounts a!!rove" b
the legislative bo" an" confirme" b the reviewing authorities% are recor"e" in the
registries maintaine" b the accountant where the ma be com!are" with the
actual "evelo!ments of the !erio".
0u"getar reserves which are stan" b a!!ro!riations rea" for release in case of
calamities% as well as su!!lemental bu"get are similarl recor"e" in the 8AAO. 1n
case the .G+ is o!erating on a re3enacte" bu"get% sai" re3enacte" bu"get shall
li$ewise be recor"e" in the registr. Once current bu"get is a!!rove"% the necessar
a"justments shall be ma"e in the registr.
Se!arate registries shall be maintaine" for the four classes of e;!en"itures !er
res!onsibilit center% to wit)
1. 8egistr of A!!ro!riations% Allotments an" Obligations 3 ,a!ital Outlas
-8AAO,O*
(. 8egistr of A!!ro!riations% Allotments an" Obligations 3 Maintenance an"
Other O!erating @;!enses -8AAOMO*
/. 8egistr of A!!ro!riations% Allotments an" Obligations 3 9ersonal Services
-8AAO9S*
=. 8egistr of A!!ro!riations% Allotments an" Obligations 3 >inancial @;!enses
-8AAO>@*
Sec# )3# Acco+ntin, 2or Allotments# Allotment is the authori?ation issue" b
the .ocal ,hief @;ecutive -.,@* to a "e!artment&office of the .G+% which allows it to
incur obligations% for s!ecifie" amounts% within the a!!ro!riation or"inance.
Allotments are release" <uarterl base" on the Jor$ an" >inancial 9lan an" 8e<uest
for 8elease of Allotment. The Accountant% u!on recei!t of the A"vice of Allotment%
shall enter the allotment in the 8AAOs.
Sec# )4# Acco+ntin, 2or O5li,ations# Obligations refer to the amounts
committe" to be !ai" b the .G+ for an lawful act ma"e b an accountable officer
for an" in behalf of the local government unit concerne".
Obligations shall be ta$en u! in the registries as the are incurre". >or each
obligation% the re<uesting "e!artment&office shall !re!are the Allotment an"
Obligation Sli! -A.O0S* signe" b the "e!artment or office hea" as re<uesting
official an" forwar" this% together with the su!!orting "ocuments% to the 0u"get
Officer.
The 0u"get Officer shall certif to the e;istence of a!!ro!riation that has been
legall ma"e for the !ur!ose b signing the a!!ro!riate bo; in the A.O0S an"
assign the A.O0S number thereto. The Accountant shall review the A.O0S an"
certif as to obligation of the allotment b signing the a!!ro!riate bo; in the A.O0S.
Ee shall also fill u! the Status of Obligation. The Accountant shall recor" the amount
of obligation in the 8AAOs.
Sec# ")# A/6+stment o2 O5li,ations# - The ,hief Accountant shall recor" !ai"
"isbursement vouchers in the Status of Obligation !ortion -9aments* of the A.O0S.
An balance a!!earing in the A.O0S after full !ament of obligations shall form !art
of unobligate" allotment. The ,hief Accountant shall a"just accor"ingl the amount
of recor"e" obligations in the 8AAO using the same A.O0S number as reference. At
the en" of each month% the ,hief Accountant an" the 0u"get Officer shall reconcile
their recor"s on allotments available for obligation.
Sec# ""# Acco+ntin, 'roce/+res 2or &+/,etar0 Acco+nts# - Summari?e"
hereun"er is the !rocess in accounting for bu"getar accounts)
P R O C E S S PERSON / UNIT
RESPONSIBLE
a* 8ecor"s in the a!!ro!riate 8AAOs
the a!!rove" a!!ro!riation !er
A!!ro!riation Or"inance.
Office of the
Accountant
b* >orwar"s the a"vice of allotments to
the Office of the Accountant an" returns
the wor$ !lan to the concerne"
"e!artments& offices.
Office of the 0u"get
Officer
c* @nters the allotments in the 8AAOs. Office of the
Accountant
"* 9re!ares A.O0S base" on
"isbursement vouchers&!urchase
re<uests an"&or su!!orting "ocuments.
Signs the a!!ro!riate bo; for re<uesting
office. >orwar"s the same to the Office of
the 0u"get Officer.
Eea"s of
"e!artments&offices
e* ,ertifies the A.O0S as to the
e;istence of a!!ro!riations base" on the
a!!ro!riation or"inance. Assigns A.O0S
number an" forwar"s the same to the
Office of the Accountant.
0u"get Officer
f* ,ertifies the A.O0S as to the
obligations of allotments. 8ecor"s the
obligation in the a!!ro!riate column of
the 8AAOs an" in the Status of Obligation
!ortion -Obligation* of the A.O0S.
,hief Accountant
g* 8ecor"s !ai" "isbursement vouchers
in the Status of Obligation !ortion
-9aments* of the A.O0S. An balance
a!!earing in the A.O0S after full !ament
of obligations shall form !art of
unobligate" allotment. A"just accor"ingl
the amount of recor"e" obligations in the
8AAOs.
Office of the
Accountant
h* At the en" of each month% reconcile
recor"s on allotments available for
obligation.
0u"get Officer an"
,hief Accountant
Sec# "%# Terminolo,0 an/ Classi2ication# A common terminolog an"
classification shall be use" consistentl throughout the bu"get% the accounts an" the
financial re!orts.
4
>or this !ur!ose% the following s!ecific e;!en"itures shall be recor"e" in the
a!!ro!riate 8AAOs)
a. 8AAO,O
1nvestments outla -e.g. stoc$s% bon"s*
.an"% .an" 1m!rovements an" .easehol" 1m!rovements outla
0uil"ings an" Other Structures outla -e.g. school buil"ings%
mar$ets an" slaughterhouses% hos!ital an" health centers% etc.*
9ublic 1nfrastructures outla -e.g. !ar$s% !la?a% monuments%
bri"ges etc.*
>urniture an" >i;tures outla
Jor$ Animals outla
0ree"ing stoc$s
Machineries an" @<ui!ment outla -e.g. "um! truc$s% construction
e<ui!ment% in"ustrial machineries% technical an" scientific
e<ui!ment% etc.*
Aircrafts% Trains an" Motor Fehicles outla -e.g. motorccles% cars%
vans% etc.*
Artesian Jells% 8eservoirs% 9um!ing Stations an" ,on"uits outla
0oo$s outla
Or"nance outla
1T @<ui!ment an" Software outla
Other 9ro!ert% 9lant an" @<ui!ment outla
8eforestation 9rojects
Arts% Archeological S!ecimen an" Other @;hibits
b. 8AAO9S
Salaries an" Jages -e.g. regular !a% !art3time !a% overtime an"
night !a% holi"a !a% etc.*
Allowances -e.g. 9@8A% ha?ar" !a% 8ATA% etc.*
0enefits -e.g. bonus% cash gifts% !ro"uctivit% !ension% etc.*
Government Shares on @m!loeesK ,ontributions
c. 8AAOMO
Subsi"ies -e.g. Subsi" to .G+s% Subsi" to Other >un"s% etc.*
.ivestoc$ -e.g. swine% hogs% chic$en% goats% etc.*
,ro!s
Su!!lies -e.g. office% me"ical% "ental an" laboratories% s!are !arts%
gasoline an" oil% etc.*
8e!airs an" Maintenance
9rinting an" 0in"ing
Travel
,onsultanc
.ight% Jater an" Gas
,ommunication -e.g. tele!hone% telegra!h% internet% !ostage% etc.*
Au"iting Services
Other Services -e.g. janitorial% securit% hauling% etc.*
@;traor"inar an" Miscellaneous @;!enses
All other e;!en"itures in the ,hart of Accounts for MOO@% except
"e!reciation% obsolescence% ba" "ebts% loss on sale of assets% loss
of assets% "iscount on 8eal 9ro!ert Ta; an" S!ecial @"ucation
Ta;.
". 8AAO>@
0an$ ,harges
1nterest @;!enses
,ommitment ,harges
Other >inancial ,harges -e.g. un"erwriting fees% guarantee
fees*
.oan Amorti?ation
C# INCOME7COLLECTIONS AN$ $E'OSITS
Sec# "(# Se!aration o2 &oo8s an/ $e!ositor0 Acco+nts# - .ocal accountants
an" treasurers shall maintain se!arate boo$s an" "e!ositor accounts% res!ectivel%
for each fun" in their custo" or a"ministration.
Sec# "9# $e!ositor0 Acco+nts# - .ocal treasurer shall maintain "e!ositor
accounts in the name of their res!ective local government units with ban$s%
!referabl government3owne"% locate" in or nearest to their res!ective areas of
juris"iction. @arnings of its "e!ositor accounts shall accrue e;clusivel thereto.
Sec# "*# Remittance o2 Government Monies to te Local Treas+r0# - Officers
of the local government authori?e" to receive an" collect monies arising from ta;es%
revenue% or recei!ts of an $in" shall remit the full amount receive" an" collecte" to
the treasur of such local government unit which shall be cre"ite" to the !articular
account or accounts to which the monies in <uestion !ro!erl belong.
Sec# ".# So+rces o2 Income o2 LGUs# - The main sources of income of .G+s
are as follows)
a. Ta; revenues% fees an" charges
b. Share from 1nternal 8evenue ,ollections
c. Share from National Jealth
The sources of income are further classifie" into general income accounts an"
s!ecific income accounts.
Sec# "1# General Income Acco+nts# The following shall com!rise the General
1ncome Accounts a!!licable to .G+s)
a. Subsi" from Other .G+s
b. Subsi" from Other >un"s
c. Subsi" from S!ecial Accounts
". Sales 8evenue
e. 4ivi"en" 1ncome
f. 1nterest 1ncome
g. Gain on Sale of Securities
h. Gain on Sale of Assets
i. Sale of ,onfiscate" Goo"s an" 9ro!erties
j. >oreign @;change ->O8@2* Gains
$. Miscellaneous O!erating an" Service 1ncome
l. >ines an" 9enalties Government Services an" 0usiness
O!erations
m. 1ncome from Grants an" 4onations
Sec# "3# S!eci2ic Income Acco+nts# - The following major classification com!rise
the s!ecific income accounts for .G+s)
1. 9ro!ert Ta;es
5
(. Ta;es on Goo"s an" Services
/. Other Ta;es
=. Other S!ecific 1ncome
Sec# "4# Meto/s o2 Acco+ntin, 2or Income# The following accounting
metho"s shall be a"o!te" in recor"ing income)
a. Accrual Metho - Accrual metho" of
accounting shall be use" to recor" Share from 1nternal 8evenue
,ollections in the boo$s of accounts. +!on recei!t of the Notice of
>un"ing ,hec$ 1ssue" from 4e!artment of 0u"get an"
Management -40M*% Share from 1nternal 8evenue ,ollections
shall be ta$en u! as 4ue from NGAs an" cre"ite" to Share from
1nternal 8evenue ,ollections. Eowever% ,ash in 0an$ shall be
"ebite" u!on recei!t of 0an$ ,re"it A"vice as to recei!t of the
Share from 1nternal 8evenue ,ollections regar"less of whether or
not the Notice of >un"ing ,hec$ 1ssue" has been receive" from
40M.
b. Mo!"!e Accrual - Mo"ifie" accrual
metho" of accounting shall be use" for real !ro!ert ta;es. At the
beginning of the ear% 8eal 9ro!ert Ta; 8eceivable an" S!ecial
@"ucation Ta; 8eceivable shall be establishe". This is in view of
the nee" to recor" in the boo$s not mere income estimates from
real !ro!ert ta;es but actual receivables from sai" ta;es.
Eowever% to avoi" a!!ro!riating uncollecte" revenues which might
result to huge cash over"raft% the same shall be cre"ite" to
4eferre" 8eal 9ro!ert Ta;es 1ncome&4eferre" S!ecial @"ucation
Ta; 1ncome. 8eal 9ro!ert Ta; 1ncome&S!ecial @"ucation Ta;
1ncome shall be recogni?e" u!on recei!t of collection.
c. Ca#h Ba#!# - ,ash basis of accounting
shall be use" for all other ta;es% fees% charges an" other revenues.
Sec# %)# &asis o2 Recor/in, Real 'ro!ert0 Ta:7S!ecial E/+cation Ta:# 8eal
9ro!ert Ta; 8eceivables&S!ecial @"ucation Ta; 8eceivables shall be establishe" at
the beginning of the ear base" on 8eal 9ro!ert Ta; Account 8egister&Ta;!aerKs
in"e; car". At the beginning of the ear% the Treasurer shall furnish the ,hief
Accountant of a "ul certifie" list showing the name of ta;!aers an" the amount
"ue an" collectible for the ear. 0ase" on the list% the ,hief Accountant shall "raw a
'ournal @ntr Foucher -'@F* to recor" the "ebit to 8eal 9ro!ert Ta;
8eceivable&S!ecial @"ucation Ta; 8eceivable an" cre"iting to 4eferre" 8eal
9ro!ert Ta; 1ncome&4eferre" S!ecial @"ucation Ta; 1ncome.
+!on collection of 8eal 9ro!ert Ta;es from ta;!aers% the account 4eferre" 8eal
9ro!ert Ta; 1ncome&4eferre" S!ecial @"ucation Ta; 1ncome shall be "ebite" while
the 8eal 9ro!ert Ta; 1ncome "ue to the munici!alit is recogni?e"&cre"ite". The
share of the 9rovince an" 0aranga shall also be cre"ite" to 4ue to .G+s.
@ver en" of the wee$% thereafter the Munici!al Accountant shall furnish the
9rovincial Accountant with a summar of the '@Fs showing the brea$"own of the
amounts 4ue to .G+s. The summar% which shall be su!!orte" with co!ies of the
'@Fs% shall be the basis of the 9rovincial Accountant to "raw the '@F ta$ing u! the
89T 1ncome. The account 4ue from .G+ shall be "ebite" an" 8eal 9ro!ert Ta;
1ncome cre"ite".
At the en" of the month% the Munici!al Accountant shall li$ewise !re!are the
Abstract of 8eal 9ro!ert Ta; to facilitate the "istribution of real !ro!ert ta;
collection. A co! of the abstract shall be furnishe" the 9rovincial Accountant% for
!ur!oses of reconciliation with the wee$l summar of '@Fs.
Sec# %"# $elin;+encies 2or Real 'ro!ert0 Ta:7S!ecial E/+cation Ta: 'rior
to CY %))%# 9ament of "elin<uencies for real !ro!ert ta;es&s!ecial e"ucation
ta;es !rior to ,L (00( shall be recogni?e" as a "irect cre"it to 8eal 9ro!ert Ta;
1ncome&S!ecial @"ucation Ta; 1ncome account.
Sec# %%# $isco+nt on Real 'ro!ert0 Ta:7S!ecial E/+cation Ta:# - 4iscounts
for a"vance an" !rom!t !ament of 8eal 9ro!ert Ta; an" the a""itional one
!ercent -1I* ta; accruing to the S!ecial @"ucation >un shall be recogni?e" in the
ear the ta;es are "ue. Sai" "iscounts shall be a!!ortione" to the concerne" .G+s
in accor"ance with the sharing !rescribe" for real !ro!ert ta; an" a""itional one
!ercent -1I* ta; un"er the .ocal Government ,o"e.
Sec# %(# Fines an/ 'enalties# - >ines an" 9enalties% either from ta; revenue or
other s!ecific income% shall be recogni?e" as income of the ear it was collecte".
>ines an" 9enalties arising from real !ro!ert ta;es shall be "istribute" to
concerne" .G+s in accor"ance with the sharing !rescribe" un"er the .ocal
Government ,o"e for 8eal 9ro!ert Ta; an" the a""itional one !ercent -1I* ta; for
the S!ecial @"ucation >un".

Sec# %9# Oter Recei!ts# - Other recei!ts of the local government units shall be
com!rise" of% but not limite" to% the following)
a. 0orrowings
b. Sale of 9ro!ert% 9lant an" @<ui!ment
c. 8efun" of ,ash A"vances
". 8ecei!t of 9erformance&0i""ersK 0on"s
Sec# %*# &orro<in,s# 0orrowings are !rocee"s of re!aable obligations%
generall with interest from the ban$% national agenc% another local government
unit% an" !rivate sector. All borrowings incurre" shall be recor"e" "irect to the
a!!ro!riate liabilit accounts. +!on recei!t of the a"vice from the ban$ or len"ing
agenc informing the release of the !rocee"s% the Accountant shall "raw a 'ournal of
@ntr Foucher ta$ing u! the transaction.
Sec# %.# Sale o2 'ro!ert0= 'lant an/ E;+i!ment# - Sale of !ro!ert% !lant an"
e<ui!ment refers to the !rocee"s from the sale of lan"% buil"ings% e<ui!ment%
furniture an" other similar !ro!ert which are recor"e" in the boo$s as 9ro!ert%
9lant an" @<ui!ment. The a!!ro!riate 9ro!ert% 9lant an" @<ui!ment account shall
be cre"ite" u!on transfer of ownershi!.
Sec# %1# Re2+n/ o2 Cas A/vances# ,ash a"vances for official travel shall be
ta$en u! as a receivable from the concerne" official or em!loee. 8efun"s ma"e
shall be cre"ite" to the receivable account !reviousl set u!. ,ash a"vances for
salaries an" wages shall be recor"e" as "ebits to the account ,ash 4isbursing
Officer. An refun" ma"e shall be cre"ite" to this account.
Sec# %3# Recei!t o2 'er2ormance &on/s# 9erformance bon" !oste" b
contractor or su!!lier to guarant full an" faithful !erformance of the their wor$
ma be in the form of cash% certifie" chec$ or suret. 9erformance bon" in cash or
certifie" chec$ shall be ac$nowle"ge" b the issuance of official recei!t an"
recor"e" in the boo$s b the Accountant "rawing a '@F for the !ur!ose. 1n case of
suret bon"% an ac$nowle"gment recei!t shall be issue" b the authori?e" official.
6
Sec# %4# Re!ortin, 2or Collections an/ $e!osits# ,ollectors&tellers shall issue
a recei!t to ac$nowle"ge collections ma"e. The recei!t mabe in the form of !re3
numbere" Official 8ecei!ts% or cash tic$ets an" the li$e. At the close of each
business "a% these collectors&tellers shall accom!lish the 8e!ort of ,ollections an"
4e!osits -8,4* in four co!ies. The original an" two co!ies% together with the
"u!licates of the official recei!ts issue"% shall be submitte" to the treasurer&cashier
to whom the cash collecte" shall be turne" over. The fourth co! of the 8,4 shall
be retaine" b the collector&teller concerne". 0aranga Treasurers "e!uti?e" to
collect ta;es im!ose" b !rovinces% cities an" munici!alities shall follow the same
!roce"ures in turning over their collections to the treasurer&cashier concerne".
1n the case of collectors assigne" to the fiel"% where travel time from their
!laces of assignment to the TreasurerKs Office is more than one "a% turnover of
collections shall be ma"e at least once a wee$ or as soon as the collections reach
9B%000.00.
Sec# ()# Veri2ication o2 Collections an/ Acco+nta5le Forms# - The
Treasurer&,ashier shall verif the 8e!ort of ,ollections an" 4e!osits# chec$ the
statement of accountable forms as to initial balances on han"% recei!ts% issues an"
the en"ing balances on han"# ma$e a !hsical count of the accountable forms
remaining in the custo" of the collector&teller an" chec$ the same against the new
balances on han" column. Ee shall in"icate his verification b affi;ing his signature
at the bac$ of the tri!licate co! of the last official recei!t issue". Ee shall count the
mone turne" over to him an" sign the certification an" recei!t !ortion of all co!ies
of 8,4.
Sec# ("# $esi,nation o2 Li;+i/atin, O22icers# - The Treasurer ma "esignate
li<ui"ating officers from among the collectors&tellers whenever necessar.
a. ,ollector
s&tellers shall turn over their collections to their "esignate" li<ui"ating
officer. The 8,4 shall however be !re!are" in five co!ies% four co!ies
to be submitte" to the li<ui"ating officer% the fifth co! to be retaine"
b the collector&teller.
b. The
li<ui"ating officer shall !erform the !roce"ures for the recei!t an"
verification of collections turne" over to him. Ee shall also accom!lish
the 8,4 in four co!ies to summari?e the collections turne" over to him
b the collectors&tellers as well as his own collections.
c. The
li<ui"ating officer shall turn over intact the cash collections to the
Treasurer&,ashier together with the originals an" two co!ies of the
8,4s of collectors&tellers an" the "u!licates of the official recei!ts
issue". The Treasurer&,ashier shall ac$nowle"ge recei!t of the cash
an" all accom!aning "ocuments b signing all co!ies of the 8,4 of
li<ui"ating officer on the certification an" recei!t !ortion of the form.
The fourth co! of the 8,4 of the li<ui"ating officer an" 8,4s of
collectors&tellers shall be retaine" b the li<ui"ating officer.
Sec# (%# $e!osit o2 Collections# - The Treasurer&,ashier shall "e!osit intact all
his collections as well as all collections turne" over to him b the collectors&tellers
with the authori?e" "e!ositor ban$ "ail or not later than the ne;t ban$ing "a. Ee
shall recor" all "e!osits ma"e in the cashboo$ an" !re!are the 8,4.
The baranga treasurer shall "e!osit all collections intact with the cit&munici!al
treasurer% or in a "e!ositor ban$ account maintaine" in the name of the baranga%
within five -B* "as from recei!t thereof.
Sec# ((# $e!osit o2 Fiel/ Collections# - ,ollections b fiel" collectors shall be
remitte" to the ,ashier or "esignate" li<ui"ating officer of the fiel" office of the .G+.
Jhen travel "istance of the fiel" office to the local treasur ma e;!ose government
fun"s to the ris$ of loss while in transit% the ,ashier or "esignate" li<ui"ating officer%
u!on authori?ation b the Treasurer% ma "e!osit the collections in the authori?e"
"e!ositor ban$ near the fiel" office of the .G+. The !roce"ures in re!orting
collections an" "e!osits !rescribe" in this ,ha!ter shall be observe".
Sec# (9# Acco+ntin, 2or Collections an/ $e!osits# - The Accountant
shall "etermine the account classification of the collections covere" b the 8,4 an"
the su!!orting !a!ers submitte" b the Treasurer&,ashier an" shall accom!lish the
'ournal @ntr Foucher. The accountant shall also maintain the Abstract of 8eal
9ro!ert Ta; ,ollections to facilitate the "istribution an" remittance of the shares of
the "ifferent government units concerne" in the real !ro!ert ta; collections.

Sec# (*# Recei!ts an/ Collection 'rocess# - The following is a summar of the
recei!t an" collection !rocess in the .G+)
RESPONSIBLE
8eceive !ament from ta;!aers& cre"itors
an" issue Official 8ecei!t -O8*. 9re!are
8e!ort of ,ollections an" 4e!osits. 8emit to
the .i<ui"ating Officer -if one is "esignate"*
or Treasurer.
,ollector&Teller
,hec$ remittances an" verifies accountable
forms of collectors&tellers. ,onsoli"ates
collections an" remits to the
Treasurer&,ashier. 9re!ares 8,4.
.i<ui"ating Officer
8eceive remitte" collections% consoli"ates the
same an" !re!ares 8,4. 8ecor"s in the
,ashboo$ ,ash in Treasur.
Treasurer
4e!osit collections in the a!!ro!riate ban$
account !er authori?e" "e!ositor ban$.
8ecor"s "e!osit in the ,ashboo$ ,ash in
0an$.
Treasurer
>orwar" 8,4 to Accounting +nit with co!ies of
O8s an" vali"ate" "e!osit sli!s.
Treasurer
9re!are 'ournal of @ntr Foucher an" recor" in
the ,ash 8ecei!t 'ournal.
Accountant
Sec# (.# 'ro-2orma Acco+ntin, Entries# - The following are !ro3forma
accounting entries for income% collection an" "e!osit)
7
'artic+lars Acco+nt Title
Acct
#
Co/
e
$e5it Cre/i
t
I N C O M E
1. Real Property Tax Basic
A. 0oo$s of the
Munici!alit
a. Setting3u! of 89T
8eceivable
8eal 9ro!ert Ta;
8eceivable 1(= 1%000
89T M 91%000 4eferre" 8eal
89T Sharing) Munici!al
3 =0I
9ro!ert Ta; 1ncome ==6 1%000
9rovince 3 /BI
0aranga 3 (BI
b. 8ecei!t of ,ash in Treasur 101 100
9ament 8eal 9ro!ert Ta;
8eceivable 1(= 100
c. 4istribution of
,ollection
89T Sharing)
4eferre" 8eal
9ro!ert Ta; 1ncome
8eal 9ro!ert Ta;
==6
711
100
=0
Munici!al 3 =0I 4ue to .G+s =/1 C0
9rovince 3 /BI
0aranga 3 (BI
". 4e!osit of
,ollections
,ash in 0an$ .,,A
,ash in Treasur
110
101
100
100

e. 8emittance of
Share -9rovince*
4ue to .G+s
,ash in 0an$ .,,A
=/1
110
/B
/B
f. 8emittance of Share
-0aranga*
4ue to .G+s
,ash in 0an$ .,,A
=/1
110
(B
(B
0. 0oo$s of the
9rovince
a. +!on recei!t of the
Summar of the '@F
from the Munici!al
Accountant
4ue from .G+s
8eal 9ro!ert Ta;
1/1
711
/B
/B
b. +!on recei!t of
share
,ash in 0an$ .,,A
4ue from .G+s
110
1/1
/B
/B
2. Operating and Service Income
a. 8ecei!t of 1ncome ,ash in Treasur 101 100
Acct
#
Co/
e
$e5it Cre/i
t
8ecei!ts from
Mar$ets
Garbage >ees
76/
77(
50
10
b. 4e!osit of
,ollections
,ash in 0an$ .,,A
,ash in Treasur
110
101
100
100
3. Share rom Internal Reven!e "ollections
a. 8ecei!t of Notice of
>un"ing ,hec$ 1ssue"
from the 40M an"
cre"it memo from
,ash in 0an$ .,,A
Share from 1nternal
8evenue ,ollections
110
7=C
1%000
1%000
the ban$ for Share
from 1nternal 8evenue
,ollections

b. 8ecei!t of Notice of
>un"ing ,hec$ 1ssue"
4ue from NGAs
Share from 1nternal
1/0 1%000
from the 40M for
Share from 1nternal
8evenue ,ollections
8evenue ,ollections 7=C 1%000
#. $rants and %onations
a. 8ecei!t of grants
an" "onations in cash
-4onations in $in" shall
be boo$e"3u! using the
a!!ro!riate asset
account*
,ash in Treasur
1ncome from Grants
an" 4onations
101
CB1
100
100
b. 8ecei!t of grants
an" "onations in $in" 3
Motor Fehicle)
Motor Fehicles
1nveste" @<uit
(16
B/7
600
600
Original ,ost
91%000
.ess) Acc. 4e!n.
(00
(At the e$ o" %ear)
1nveste" @<uit B/7 600
0oo$ Falue 9
600
Government @<uit B01 600
*# &ORROWINGS
a. 8ecei!t of borrowe"
fun"s from ban$ 3
9rinci!al 3
91%000
,ash in 0an$ .,,A
.oans 9aable
,urrent% 4omestic
110
=0/
1%000
1%000
0an$ ,harges
1nterest @;!enses
5B1
5B(
10
1(
8
Acct
#
Co/
e
$e5it Cre/i
t
0an$ ,harges 3
10
1nterest @;!ense3
1(
,ash in 0an$ .,,A 110 ((
b. 8ecei!t of borrowe"
fun"s from other
agenc 3
,ash in Treasur
.oans 9aable
,urrent% "omestic
101
=0/
1%000
1%000
9rinci!al 3
91%000
1nterest @;!enses 5B( C
1nterest @;!ense 3
C
,ash in 0an$ .,,A 110 C
c. 9ament of loan
amorti?ation
.oans 9aable
,urrent% 4omestic =0/ (00
,ash in 0an$ 3 .,,A 110 (00
.# SU&SI$IES
a. S!&sidy rom Other '!nds ($eneral '!nd to Special )d!cation
'!nd*
G@N@8A. >+N4 0OODS
Transfer of subsi"
to S!ecial @"ucation
>un" -Ai" to S@> to
finance its !rojects*
Subsi" to Other
>un"s
,ash in 0an$ .,,A
657
110
B00
B00
S9@,1A. @4+,AT1ON >+N4 0OODS
8ecei!t of subsi"
fun"s from Other fun"s
,ash in Treasur
Subsi" from Other
101 B00
>un"s C0B B00

&. Special +cco!nts (s!&sidy rom $eneral '!nd proper to
Operation o P!&lic ,ar-et*
0OODS O> G@N@8A. >+N4 98O9@8
Transfer of subsi" to
S!ecial Account
Subsi" to S!ecial
Accounts 656 B00
,ash in 0an$ .,,A 110 B00
0OODS O> S9@,1A. A,,O+NT -O9@8AT1ON O> 9+0.1, MA8D@T*
Acct
#
Co/
e
$e5it Cre/i
t
8ecei!t of subsi"
from
General >un" 9ro!er
,ash in 0an$ .,,A
Subsi" from S!ecial
110 B00
Accounts C0C B00
1# REFUN$ OF CASH A$VANCES
a. "ash +dvance &y an Oicer or .ocal Travel
a. To ta$e u! the cash
a"vance
4ue from Officers N
@m!loees 1(6 10
,ash in 0an$ .,,A 110 10
b. To ta$e u! refun" of
cash a"vance
,ash in Treasur
4ue from Officers N
@m!loees
101
1(6
10
10
&. "ash +dvance &y a %is&!rsing Oicer or Salaries and /ages
a. To ta$e u! the cash
a"vance
,ash 4isbursing
Officers 107 10
,ash in 0an$ .,,A 110 10
b. To ta$e u! refun" of
cash a"vance
,ash in Treasur
,ash 4isbursing
Officers
101
107
10
10
3# RECEI'T OF CASH &ON$S
a. To ta$e u! recei!t of
!erformance bon" in
cash
,ash in Treasur
9erformance&
0i""ers& 0ail 0on"s
9aable
101
=1=
B0
B0
b. To ta$e u! "e!osit
of !erformance bon"
,ash in 0an$ .,,A
,ash in Treasur
110
101
B0
B0
c. To ta$e u! refun" of
!erformance bon"
9erformance&
0i""ers& 0ail 0on"s
9aable
=1= B0
,ash in 0an$ .,,A 110 B0
4. 41S0+8S@M@NTS
Sec# (1# $is5+rsements# - 4isbursements refer to the settlement of government
!aables&obligations b cash or b chec$.
9
T!ical transactions for which "isbursements are ma"e are as follows)
1. 9ersonal Services
(. Maintenance an" Other O!erating @;!enses
/. ,a!ital Outla
=. >inancial @;!enses
4isbursements shall be covere" b 4isbursement Fouchers -4F* or !arolls
an" !ai" either b chec$ or in cash. The Allotment an" Obligation Sli! -A.O0S* shall
be an integral !art of the 4F.
Sec# (3# Certi2ication on $is5+rsements# - 4isbursements from the general
fun" shall re<uire the following certifications on the 4F)
1. ,ertification an" a!!roval of vouchers an" !arolls as to vali"it% !ro!riet
an" legalit of the claim -0o; A of 4F* b the hea" of the "e!artment or
office who has a"ministrative control of the fun" concerne". 1n case of
tem!orar absence or inca!acit of the "e!artment hea" or chief of office%
the officer ne;t3in3ran$ shall automaticall !erform his function an" shall be
full res!onsible therefor.
(. Necessar "ocuments su!!orting the "isbursement vouchers an" !arolls
as certifie" to an" reviewe" b the Accountant. -0o; 0 of 4F*
/. ,ertification that fun"s are available for the !ur!ose b the .ocal
Treasurer. -0o; , of 4F*
Sec# (4# A!!roval o2 $is5+rsements# - A!!roval of "isbursements b the .ocal
,hief @;ecutive -.,@* himself shall be re<uire" whenever local fun"s are "isburse"%
e;ce!t for regularl recurring a"ministrative e;!enses such as) !arolls for regular
or !ermanent em!loees% e;!enses for light% water% tele!hone an" telegra!h
services% remittances to government cre"itor agencies such as GS1S% 018%
9E1.E@A.TE% .09% 409% N9O% 9S of the 40M an" others% where the authorit to
a!!rove ma be "elegate". 4isbursement vouchers for e;!en"itures a!!ro!riate"
for the o!eration of the Sanggunian shall be a!!rove" b the !rovincial Fice
Governor% the cit Fice Maor or the munici!al Fice Maor% as the case ma be.

Sec# 9)# 'a0ments 50 Cec8. ,hec$s shall be "rawn onl on "ul a!!rove"
"isbursement vouchers. 1t shall be "rawn b the local Treasurer an" countersigne"
b the local A"ministrator. 1n case of tem!orar absence or inca!acit of the
aforesai" officials% these "uties shall "evolve u!on their imme"iate assistants. 1n
the case of munici!alities where no A"ministrator has been a!!ointe"% chec$s shall
be countersigne" b the munici!al Maor. 1n case% however% of e;!en"itures
a!!ro!riate" for the o!eration of the Sanggunian% chec$s "rawn shall be
countersigne" b the !rovincial Fice Governor% the cit Fice Maor% or the munici!al
Fice Maor% as the case ma be.
Sec# 9"# Recor/in, Cec8 $is5+rsements in te Cas5oo8s# - All chec$s
issue" inclu"ing cancelle" chec$s shall be recor"e" chronologicall in the ,ashboo$
,ash in 0an$.
Sec# 9%# Release o2 Cec8s. The Treasurer shall release the chec$ onl to the
!aee or his "ul authori?e" re!resentative. >or !ur!oses of releasing chec$s% the
Treasurer shall maintain a ,hec$ 8egister where all chec$s issue" shall be recor"e"
chronologicall an" where the claimants shall be re<uire" to ac$nowle"ge recei!t
thereof.
Sec# 9(# Re!ortin, o2 Cec8s Iss+e/. The chec$s release" to claimants shall
be re!orte" in the 8e!ort of ,hec$s 1ssue" -8,1* which shall be !re!are" "ail b
the Treasurer for each fun". 1t shall be submitte" to the Accountant for !re!aration
of 'ournal of @ntr Foucher base" on in"ivi"ual chec$s issue" an" recor"ing in the
,hec$ 4isbursements 'ournal.
Sec# 99# Cec8 $is5+rsement 'rocess. The ste!s in "isbursements through
issuance of chec$ is shown below)
RESPONSIBLE
a. Gather su!!orting
"ocuments% an" a!!rove" A.O0S%
!re!are 4F an" forwar" to Eea"
of 4e!artment.
,oncerne" Office
b. Sign 0o; A of 4F an"
submit to the Accounting +nit.
Su!ervisor&Eea" of
4e!artment
c. ,hec$ com!leteness of
"ocuments% assign number to
4F% sign 0o; 0 an" forwar" to
Treasurer.
Accounting +nit
". Ferif claim% certif
cash availabilit -0o; ,* an"
forwar" to a!!roving officer.
Treasurer
0ote& I" "u$# are $ot a'a!lable(
retur$ to Accou$ta$t "or
recor!$) !$ the boo*# a#
Accou$t# Pa+able (AP), -or AP(
.E/ #hall be prepare b+
Accou$t!$) U$!t a$ .E/
$u0ber re"lecte !$ the 1/,
.E/ "or AP !# recore !$
2e$eral .our$al, Accou$ta$t
reta!$# cop+ o" 1/ a$
"or3ar# to Trea#urer,
e. A!!rove transaction
-0o; 4* an" forwar" 4F to
,ashier.
.ocal ,hief @;ecutive
or authori?e"
a!!roving officer
f. 9re!are% sign chec$
an" forwar" chec$ with 4F to
countersigning officer.
Treasurer
g. ,ountersign chec$ an"
forwar" to Accountant for
!re!aration of the
AccountantKs A"vice of .ocal
,hec$ 4isbursements.
A"ministrator& Fice3
Maor
for the .ocal
Sanggunian
4isbursements
h. 9re!are AccountantKs
A"vice of .ocal ,hec$
4isbursements an" submit to
Accountant
10
RESPONSIBLE
ban$. 8eturn 4F% chec$ an"
su!!orting "ocuments to
,ashier&Treasurer.
i. 8ecor" chec$ in the
,hec$ 8egister an" release
chec$ to claimant. 8ecor"
"isbursement in ,ashboo$
,ash in 0an$. 9re!are 8e!ort
of ,hec$s 1ssue". >orwar" 8,1
with 4F an" su!!orting
"ocuments to Accounting +nit.
Treasurer
j. 9re!are the '@F
base" on in"ivi"ual
chec$s&voucher# sign
G9re!are" 0H !ortion
-a!!rove" b ,hief
Accountant*% an" recor" '@F in
the ,hec$ 4isbursements
'ournal. 9ost monthl to the
General .e"ger&Subsi"iar
.e"gers.
Accounting +nit
$. >orwar" 8,1% 4F%
su!!orting "ocuments an" '@F
to the Office of the Au"itor.
Accountant
Sec# 9*# 'a0ments in Cas# - 4isbursements b cash shall be ma"e from a cash
a"vance "rawn an" maintaine" in accor"ance with ,OA rules an" regulations. ,ash
!aments shall be ma"e onl on "ul a!!rove" !arolls&"isbursement vouchers.
,ash a"vances% b regular an" s!ecial "isbursing officers shall be recor"e" through
a "ebit to ,ash 4isbursing Officers an" a cre"it to ,ash in 0an$ .ocal ,urrenc%
,urrent Account -.,,A*.
Sec# 9.# Re!ortin, o2 Cas $is5+rsements# - To account for cash
"isbursements% from regular an" s!ecial cash a"vances% the Accountable&4isbursing
Officer shall !re!are the 8e!ort of 4isbursements an" submit the original an"
"u!licate co! with vouchers&!arolls&!ett cash vouchers to the Accountant. Ee
shall ensure that recei!t of the re!ort an" su!!orting "ocuments% are !ro!erl
ac$nowle"ge" b the Accountant. The Accountant shall verif the re!ort inclu"ing
the com!leteness of the su!!orting "ocuments% !re!are the 'ournal of @ntr
Foucher -'@F* an" recor" the transaction in the ,ash 4isbursements 'ournal.
Sec# 91# Cas A/vances 2or Travel# - ,ash a"vances for travel shall be recor"e"
as "ebit to the account 4ue from Officers an" @m!loees an" a cre"it to ,ash in
0an$ .ocal ,urrenc% ,urrent Account.
>or li<ui"ation of travel where the amount of cash a"vance is e<ual to or more than
the travel e;!enses incurre"% the .i<ui"ation 8e!ort form shall be !re!are" b the
officers&em!loees concerne" an" submitte" to the accounting unit as basis for
!re!aration of the '@F to recor" li<ui"ation. 1n case the amount of cash a"vance is
less than the travel e;!enses incurre"% a 4isbursement Foucher shall be !re!are" to
li<ui"ate the !revious cash a"vance an" serve as a claim for reimbursement of the
"eficienc in amount.
Sec# 93# 'a0ments o+t o2 te 'ett0 Cas F+n/# - 9ett cash fun" shall be
maintaine" un"er the im!rest sstem. The fun" shall be sufficient for the non3
recurring% emergenc an" !ett e;!enses of the .G+ for one month. 4isbursements
from the fun" shall be through the 9ett ,ash Foucher -9,F* which shall be signe"
b the !aee to ac$nowle"ge the amount receive". The official recei!t shall be
attache" to the 9,F.
9ett cash fun" shall be set u! at the beginning of the ear. An A.O0S shall be
!re!are" for the fun"% recor"e" in the 8AAO an" obligate" as Other @;!enses.
9aments out of the fun" shall be ma"e through the use of 9,Fs "ul su!!orte" b
official recei!ts an" other re<uire" "ocuments. @ach 9,F shall not e;cee"
9h!1%000.00.
A 4isbursement Foucher shall be !re!are" for re!lenishments of the !ett cash fun"
"uring the ear "ul su!!orte" b a list&summar of 9,Fs% the 9,Fs an" its
su!!orting "ocuments. A.O0S shall be !re!are" for each re!lenishment an"
recor"e" in the 8AAO base" on actual e;!enses incurre".
At the en" of the ear% the !ett cash fun" shall be full li<ui"ate" b !re!aring a
8e!ort of 4isbursement su!!orte" b the list&summar of 9,Fs% the 9,Fs an" its
su!!orting "ocuments. The A.O0S setting u! the fun" at the beginning of the ear
shall be cancelle". Another A.O0S shall be !re!are" ta$ing u! the li<ui"ation an"
recor"e" in the 8AAO base" on the actual e;!enses incurre". +nuse" cash shall be
returne" to the Treasurer who shall issue an Official 8ecei!t to ac$nowle"ge the
amount returne". A new ,ash A"vance for 9ett ,ash >un" shall be set u! in the
ensuing ear.
Sec# 94# Cas $is5+rsement 'rocess# - 4isbursement !rocess for !ament of
salaries an" wages out of cash a"vances is as follows)
RESPONSIBLE
a* 9rocessing of 9arolls to be !ai"
b cash is the same as that of
ste!s -a* to -e* for chec$
"isbursements.
,oncerne" offices
b* Gather "ul certifie" an" a!!rove"
!arolls to be !ai" out of cash
a"vance. 9re!are 4F for cash
a"vance corres!on"ing to the net
amount of !aroll&s. Sign 0o; A of
4F an" submit to the Accounting
+nit.
Office of the
Treasurer
c* ,hec$ com!leteness of
"ocuments& !revious cash a"vance
li<ui"ate"% assign number to 4F%
sign 0o; 0 an" forwar" to
A!!roving Officer.
Accounting +nit
"* A!!roves 4F an" forwar" to
Treasurer for !re!aration of
chec$s.
.ocal ,hief @;ecutive
11
RESPONSIBLE
e* 9re!are an" sign chec$% an"
forwar" chec$ with 4F to
countersigning officer.
Treasurer
f* ,ountersign chec$ an" forwar" to
Accountant for !re!aration of
A"vice.
A"ministrator
g* 9re!are AccountantKs A"vice of
.ocal ,hec$ 4isbursements an"
return 4F% chec$ an" su!!orting
"ocuments to ,ashier&Treasurer.
Accountant
h* @ncash chec$ an" !a claimants.
8ecor" "isbursement in ,ashboo$
,ash A"vances.
Treasurer& 4isbursing
Officer
i* 8eturn unuse" cash to the
Treasurer& ,ashier. An official
recei!t -O8* shall be issue" b the
Treasurer&,ashier to ac$nowle"ge
the return of unuse" cash an"
in"icate chec$ no. of cash a"vance
grante" on the face of O8. 8ecor"
the refun" as cre"it to cash
a"vance an" attach O8 to the
,ashboo$ ,ash A"vances.
4isbursing Officer
j* 9re!are 8e!ort of 4isbursement%
attach !ai" !arolls& su!!orting
"ocuments an" co! of O8 for
unuse" cash a"vance returne" to
Treasurer&,ashier. Sign :,ertifie"
,orrectH !ortion of 8e!ort of
4isbursement an" submit to
Accounting +nit.
4isbursing Officer
$* 9re!are '@F to recor" the
li<ui"ation of cash a"vance.
8ecor" '@F in the ,ash
4isbursements 'ournal -,4'*. 9ost
monthl to the General .e"ger&
Subsi"iar .e"ger.
Accountant
l* >orwar" 8e!ort of 4isbursement
an" su!!orting "ocuments
inclu"ing '@F to the Office of the
Au"itor.
Accountant
Sec# *)# '+rcase or Constr+ction o2 'ro!ert0= 'lant an/ E;+i!ment# -
9ro!ert% !lant an" e<ui!ment inclu"e lan" an" lan" im!rovements% buil"ings%
e<ui!ment% motor vehicles% boo$s% machineries% or"nance% etc. an" !ublic
infrastructure. These are charge" against a!!ro!riations&allotments for ca!ital
outla when obligate".
9ro!ert% !lant an" e<ui!ment ac<uire" through !urchase shall inclu"e all costs
incurre" to bring it to the location necessar for its inten"e" use% li$e trans!ortation%
freight% installation costs% etc. 1n the boo$s of accounts% the !urchase is imme"iatel
recor"e" as asset.
9ro!ert% !lant an" e<ui!ment to be constructe" ma be classifie" as agenc assets
an" !ublic infrastructures. Agenc assets are those to be use" b the .G+
concerne"% li$e buil"ings% while !ublic infrastructures are those to be use" b the
general !ublic. The construction !erio" theor shall be use" in recor"ing both t!es
of assets. This means that e;!enses such as license fees an" bonus !ai" to
contractor for com!leting the wor$ ahea" of sche"ule% etc. "uring the construction
!erio" shall be a""e" to the total cost of the !roject. Eowever% li<ui"ate" "amages
charge" to the contractor for "elae" com!letion shoul" be "e"ucte" from the total
cost.
4uring the construction !erio"% agenc assets an" !ublic infrastructures shall be
ta$en u! in the boo$s as :,onstruction in 9rogressH with the a!!ro!riate asset
classification. As soon as the !roject is com!lete"% the ,onstruction in 9rogress for
agenc asset is close" to the a!!ro!riate asset account.
>or !ublic infrastructures fun"e" out of regular income% the ,onstruction in 9rogress
account is transferre" to the 9ublic 1nfrastructures account u!on com!letion. At the
en" of the ear% the latter account is close" to the Government @<uit an" the asset
is recor"e" in the 8egistr of 9ublic 1nfrastructures -891*. Eowever% com!lete" !ublic
infrastructures fun"e" out of a loan shall be close" to the Government @<uit
account onl u!on full !ament of the loan. A "isclosure of !ublic infrastructures
com!lete" fun"e" from loans shall be ma"e in the Notes to >inancial Statements.
Sec# *"# '+rcase o2 S+!!lies# - 9urchase of su!!lies an" materials for stoc$
regar"less of whether or not the are consume" within the accounting !erio" shall
be recor"e" as assets using the 1nventor account following the 9er!etual 1nventor
Metho" (re"er to Chapter 4 5 Suppl!e# or Propert+), Eowever% su!!lies an" materials
!urchase" out of the 9ett ,ash >un" for imme"iate use or for emergenc shall be
ta$en u! as e;!enses.
Sec# *%# 'ro>2orma Acco+ntin, Entries# - 9ro3forma accounting entries for
"isbursement transactions are shown below)
Acct
#
Co/
e $e5it Cre/it
"# 'a0ment tro+, Cas A/vances
a. "ash advance or personal services
E$ter obl!)at!o$ !$ RAAOPS "or P16(777 Salar!e# a$ 8a)e#( P9(777
A!t!o$al Co0pe$#at!o$( a$ P:(777 Per#o$$el Eco$o0!c Rel!e" Allo3a$ce
(PERA),
1. Grant of cash
a"vance for !aroll
,ash 4isbursing
Officers
,ash in 0an$ .,,A
107
110
(1%000
(1%000
(. .i<ui"ation of cash Salaries an" Jages
12
Acct
#
Co/
e $e5it Cre/it
a"vance for !aroll 8egular 9a
9 @ 8 A
601
60=
16%000
/%000
A""itional
,om!ensation 60B B%000
Jithhol"ing Ta;es
9aable =10 (%000
GS1S 9aable =11 1%B00
9AG3101G 9aable =1( 1%B00
,ash 4isbursing
Officers 107 (1%000
E$ter obl!)at!o$ !$ RAAOPS "or P1(977 L!"e a$ Ret!re0e$t I$#ura$ce
Co$tr!but!o$# a$ P1(977 PA2;IBI2 Co$tr!but!o$#,
/. Government share
for life an" retirement
insurance an" 9AG3
101G ,ontributions
.ife an" 8etirement
1nsurance
,ontributions
9AG3101G
,ontributions
617
616
1%B00
1%B00
GS1S 9aable =11 1%B00
9AG3101G 9aable =1( 1%B00
&. Petty "ash '!nd
-or e#tabl!#h0e$t o" "u$( E$ter obl!)at!o$ !$ RAAOMO a# Other Expe$#e#
"or P<(777
1. 8elease of cash
a"vance for !ett cash
fun" miscellaneous
e;!enses
9ett ,ash >un"
,ash in 0an$ .,,A
10B
110
C%000
C%000
E$ter obl!)at!o$ !$ RAAOMO "or O""!ce Suppl!e# P=(977( Tra'ell!$) Expe$#e#
P977( O""!ce E>u!p0e$t Ma!$te$a$ce P1(777 a$ Other Expe$#e# o" P677,
(. 8e!lenishment of
!ett cash fun" "uring
the ear
Traveling @;!enses
.ocal
Office Su!!lies
@;!enses
6/1
6=5
B00
(%B00
Office @<ui!ment
Maintenance 66( 1%000
Other @;!enses 5B0 600
,ash in 0an$ .,,A 110 =%600
E$ter obl!)at!o$ !$ RAAOMO "or O""!ce Suppl!e# P?(777 a$ Tra'el!$)
Expe$#e# o" P1(777,
/. .i<ui"ation at ear
en"
Traveling @;!enses
.ocal 6/1 1%000
Acct
#
Co/
e $e5it Cre/it
Office Su!!lies
@;!enses 6=5 =%000
9ett ,ash >un" 10B B%000
Ca$cel RAAOMO "or #ett!$) up o" pett+ ca#h "u$ at the #tart o" the +ear
a$ re"u$ "or a total o" P<(777,
=. 8eturn of unuse"
9ett ,ash >un".
,ash in Treasur
9ett ,ash >un"
101
10B
1%000
1%000
c. "ash advance or travel
E$ter obl!)at!o$ !$ RAAOMO "or Tra'el o" P1(777
1. Grant of cash
a"vance
4ue from Officers
an" @m!loees 1(6 1%000
,ash in 0an$ .,,A 110 1%000
(. .i<ui"ation of cash
a"vance "uring the
current ear
-assuming onl 9500
was utili?e" an" 9100
was refun"e"*
Traveling @;!enses
.ocal
4ue from Officers
an" @m!loees
6/1
1(6
500
500
A@u#t RAAOMO "or re"u$ o" ca#h a'a$ce o" P177
/. >or amount
refun"e" where official
recei!t was issue"
,ash in 0an$ .,,A
4ue from Officers
an" @m!loees
110
1(6
100
100
%# 'a0ment 50 Cec8
a. ,aintenance and Other Operating )xpenses
E$ter obl!)at!o$ !$ RAAOMO "or re$t P:(777
1. 9ament of rent 8ent @;!ense 6=1 /%000
,ash in 0an$ .,,A 110 /%000
E$ter obl!)at!o$ !$ RAAOMO "or electr!c!t+ o" P1(977 a$ telepho$e/!$ter$et
o" P=(777
(. 9ament of utilities
-M@8A.,O an" 9.4T*
@lectricit
Tele!hone&Telegra!
h an" 1nternet
,ash in 0an$ .,,A
6/B
6/7
110
1%B00
(%000
/%B00
13
Acct
#
Co/
e $e5it Cre/it
E$ter obl!)at!o$ !$ RAAOMO "or tra!$!$) a$ #e0!$ar expe$#e# o" P1(777
/. 9ament of
seminar fee
Training an"
Seminar @;!enses 6// 1%000
,ash in 0an$ .,,A 110 1%000
&. 'inancial )xpenses
E$ter obl!)at!o$ !$ RAAO-E "or ba$* char)e# o" P:77
1. 0an$ charges u!on
recei!t of ban$
statement
0an$ ,harges
,ash in 0an$ .,,A
5B1
110
/00
/00
E$ter obl!)at!o$ !$ RAAO-E "or !$tere#t expe$#e o" P?77
(. 1nterest @;!ense 1nterest @;!enses 5B( =00
,ash in 0an$ .,,A 110 =00
c, O""!ce E>u!p0e$t 5 E$ter obl!)at!o$ !$ RAAOCO "or P<(777 "or purcha#e
o" e>u!p0e$t
1. 1ssuance of 9O to
"ealer
No entr
(. 8ecei!t of office
e<ui!ment
Office @<ui!ment
,ash in 0an$ .,,A
(((
110
C%000
C%000
". ,onstruction of 8oa"s b ,ontract E$ter obl!)at!o$ !$ RAAOCO "or
P677(777 "or co$#truct!o$ o" roa,
1. 9ament of first
billing for B0I
accom!lishment
,onstruction in
9rogress 8oa"s%
Eighwas an"
0ri"ges (/( =00%00
0
Jithhol"ing Ta;es
9aable =10 =0%000
,ash in 0an$ .,,A 110 /C0%000
(. 9ament of secon"
billing 100I
accom!lishment
,onstruction in
9rogress 8oa"s%
Eighwas an"
0ri"ges (/( =00%00
0
Jithhol"ing Ta;es
9aable =10 =0%000
Acct
#
Co/
e $e5it Cre/it
,ash in 0an$ .,,A 110 /C0%000
/. 8emittance of
ta;es withhel"
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
=10
110
60%000
60%000
I !nded rom reg!lar agency income
=. To ta$e u! roa"s
com!lete"
9ublic 1nfrastructure
,onstruction in
(=/ 600%00
0
9rogress 8oa"s%
Eighwas an"
0ri"ges (/( 600%000
B. To transfer
com!lete" roa"s to
8egistr of 9ublic
1nfra3 structures at the
en" of the ear
Government @<uit
9ublic
1nfrastructures
B01
(=/
600%00
0 600%000
0ote1 U#!$) the .E/ "or the abo'e tra$#act!o$#( the publ!c !$"ra#tructure#
#hall be recore !$ the Re)!#tr+ o" Publ!c I$"ra#tructure#,
I !nded rom a
loan
C To recor"
com!lete"
9ublic
1nfrastructures
(=/ 600%00
0
roa"s ,onstruction in
9rogress 8oa"s%
Eighwas an"
0ri"ges (/( 600%000
+t year end2!pon
!ll payment o laon
Government @<uit
9ublic
1nfrastructures
B01
(=/
600%00
0 600%000
e. $eneral Repair3"onstr!ction o B!ilding &y +dministration
1. A!!roval of the
!roject 91M
No entr
E$ter obl!)at!o$ !$ RAAOCO "or P<77(777 "or co$#truct!o$ 0ater!al#
14
Acct
#
Co/
e $e5it Cre/it
(. 1ssue 9O for
buil"ing materials)
.umber% nails% cement%
san" an" gravel%
!aints% etc. M
9C00%000
No @ntr
/. 9ament for
construction materials
receive"
,onstruction
Materials 1nventor
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
1BC
=10
110
C00%00
0
C0%000
B=0%000
=. 1ssuance of
materials 9B50%000
,onstruction in
9rogress Agenc
Assets (/0 B50%00
0
,onstruction
Materials 1nventor 1BC B50%000
E$ter obl!)at!o$ !$ RAAOCO "or P:67(777 "or labor
B. ,ash a"vance
grante" to 4isbursing
Officer for !aroll
,ash 4isbursing
Officers
,ash in 0an$ .,,A
107
110
/B0%00
0 /B0%000
C. .i<ui"ation b
4isbursing Officer of
!ai" !aroll
,onstruction in
9rogress Agenc
Assets (/0 /60%00
0
Jithhol"ing Ta;es
9aable =10 /0%000
,ash 4isbursing
Officers 107 /B0%000
7. 8emittance of
withhol"ing ta;
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
=10
110
/0%000
/0%000
6. Accom!lishment
8e!ort a!!rove" b
the .,@
0uil"ings
,onstruction in
9rogress Agenc
Assets
(0=
(/0
570%00
0
570%000
. +c4!isition o .and
E$ter obl!)at!o$ !$ RAAOCO "or P=0!ll!o$ "or purcha#e o" la$
1. 9ament ma"e for
lan" !urchase"
.an"
Jithhol"ing Ta;es
(01 (M
Acct
#
Co/
e $e5it Cre/it
9aable =10 (00%000
,ash in 0an$ .,,A 110 1.6M
(. 8emittance of
withhol"ing ta;
Jithhol"ing ta;es
9aable =10 (00%00
0
,ash in 0an$ .,,A 110 (00%000
g. .and and B!ilding
E$ter obl!)at!o$ !$ RAAOCO "or P<77(777 "or la$ a$ P?77(777 "or
bu!l!$)
1. 9ament of the
lan" an" buil"ing
-assesse" value of
lan" is 9C00%000* for
91%000%000
.an"
0uil"ing
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
(01
(0=
=10
110
C00%00
0
=00%00
0
100%000
500%000
(. 8emittance of
withhol"ing ta;
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
=10
110
100%00
0 100%000
h. P!rchase o Inventories
E$ter obl!)at!o$ !$ RAAOMO "or purcha#e o" P=(977 3orth o" #pare art#
1. 9ament of
"elivere" s!are !arts
S!are 9arts
1nventor
Jithhol"ing Ta;es
9aable
1BB
=10
(%B00
(B0
,ash in 0an$ .,,A 110 (%(B0
i. E$ter obl!)at!o$ !$ RAAOMO "or purcha#e o" o""!ce #uppl!e#
1. 9ament of office
su!!lies "elivere"
Office Su!!lies
1nventor
Jithhol"ing Ta;es
9aable
1=5
=10
/%000
/00
,ash in 0an$ .,,A 110 (%700
5. '!nd Transers
E$ter obl!)at!o$ !$ RAAOMO "or #ub#!+ to L2U 5 A%B
15
Acct
#
Co/
e $e5it Cre/it
1. ,ash assistance to
.G+ 2LO
Subsi" to .ocal
Government +nits 65B /0%000
,ash in 0an$ .,,A 110 /0%000
*# E$ter obl!)at!o$ !$ RAAOMO "or #ub#!+ to SE-
1. ,ash transfer to
S@> as subsi"
Subsi" to Other
>un"s
,ash in 0an$ .,,A
657
110
10%000
10%000
l, E$ter obl!)at!o$ !$ RAAOMO "or )ra$t# a$ o$at!o$ to Tru#t -u$
1. ,ash transfer to
Trust >un" as
counter!art .G+
fun"s.
Grants an"
4onations
,ash in 0an$ .,,A
665
110
B00%00
0 B00%000
E# MISCELLANEOUS TRANSACTIONS
Sec# *(# Miscellaneo+s Transactions# - Miscellaneous transactions refer to
transactions that are uni<ue an" not recurring in the or"inar course of o!erations
of the government. These transaction t!es sel"om ta$e !lace or i"eall shoul" not
ha!!en at all. The following mabe consi"ere" miscellaneous transactions)
1. .oss of ,ash an" 9ro!ert Accountabilit
(. ,ash Overage
/. 4ishonore" ,hec$
=. .ost&4estroe"&Stale&Obsolete an" >rau"ulentl @ncashe" ,hec$
B. Settlement of Sus!ensions&4isallowances&,harges
C. 8efun" of Over!aments
Sec# *9# Loss o2 Cas an/ 'ro!ert0# - .oss of cash an" !ro!ert ma be "ue to
malversation% theft% robber or other causes.
,ash shortage "iscovere" "uring cash e;amination con"ucte" b au"itors is
re!orte" through the 8e!ort of ,ash @;amination within ten -10* wor$ing "as from
the com!letion of e;amination !ursuant to ,OA Memoran"um No. 6=3/7/A. The
au"itor issues an au"it re!ort in case of shortage in !ro!ert accountabilit. As soon
as a shortage is "efinitel establishe"% the Au"itor shall issue a memoran"um
!ertaining thereto an" the Accountant shall "raw a 'ournal of @ntr Foucher to ta$e
u! the shortage as a receivable from the accountable officer concerne".
1n case of loss of !ro!ert "ue to other causes -theft% force majeure% fire% etc.*% a
re!ort thereon shall be !re!are" b the accountable officer concerne" for !ur!oses
of re<uesting relief from accountabilit. No accounting entr shall be ma"e but the
loss shall be "isclose" in the notes to financial statements !en"ing result of re<uest
for relief from accountabilit.
Sec# **# Grant o2 Relie2 2rom Acco+nta5ilit0# - Jhen a re<uest for relief for
shortages or loss of fun"s is grante"% a co! of the "ecision shall be forwar"e" to
the ,hief Accountant who shall "raw a '@F to recor" the transaction. The loss shall
be "ebite" to the .oss of Assets account an" cre"ite" to the a!!ro!riate receivable
account. 1n case the re<uest for relief is "enie"% imme"iate !ament of the shortage
shall be "eman"e" from the accountable officer. 8estitution shall be ac$nowle"ge"
b the issuance of an official recei!t.
1n case the re<uest for relief from accountabilit for loss of !ro!ert cause" b fire%
theft% force majeure or other causes is grante"% a co! of the "ecision shall li$ewise
be forwar"e" to the ,hief Accountant for the !re!aration of the '@F. The loss shall
be "ebite" to the .oss of Assets account an" cre"ite" to the a!!ro!riate asset
account. 1f re<uest for relief from accountabilit is "enie"% the loss shall be ta$en u!
as a receivable from the accountable officer&!ersons liable an" shall be cre"ite" to
the a!!ro!riate asset account.
Sec# *.# Cas Overa,e# - 1n case the cash e;amination "isclose" cash overage%
as "etermine" b the au"itor% the amount shall be forfeite" in favor of the
government an" an official recei!t shall be issue" b the collector&teller. The cash
overage shall be ta$en u! as Other S!ecific 1ncome.
Sec# *1# $isonore/ Cec8s# - A chec$ is sai" to be "ishonore" when u!on its
being "ul !resente" for !ament% such !ament is refuse" or cannot be obtaine".
+!on recei!t of the "ebit memo an" the "ishonore" chec$-s* from the ban$%
constructive cancellation of the official recei!t covering the "ishonore" chec$ shall
be imme"iatel effecte" b the Treasurer on the co! in his !ossession# The
Treasurer shall imme"iatel !hotoco! the "ishonore" chec$s an" recor" as cre"it
in the ,ashboo$,ash in 0an$ an" cancel !ament in the ta;!aerKs in"e; car". Ee
shall also notif the collector&teller of the "ishonor an" the cancellation of the official
recei!t. The collector&teller shall note the cancellation in the tri!licate co!ies of the
recei!t# The Treasurer shall then inform the Au"itor who shall effect the cancellation
in the "u!licate co! of official recei!t% in case the same has alrea" been
submitte" for au"it.

The Treasurer shall forwar" the "ebit memo an" the !hotoco! of the "ishonore"
chec$s to the Accountant. The Accountant shall cancel the official recei!t if still in
his !ossession. Ee shall !re!are the 'ournal of @ntr Foucher -'@F* ta$ing u! the
"ishonore" chec$ b cre"iting the ,ash in 0an$ account an" "ebiting the
a!!ro!riate income account. 1n case of "ishonor of chec$ !aments for 8eal
9ro!ert Ta; -89T* or S!ecial @"ucation Ta; -S@T*% the 89T&S@T 8eceivables an"
corres!on"ing 4eferre" 89T&S@T 1ncome shall be restore". The accounts 4ue to
.G+s% 89T 1ncome% ,ash in 0an$ an" 89T 4iscount shall be a"juste" accor"ingl. Ee
shall furnish the Treasurer with a co! of the "ul a!!rove" '@F. The Treasurer shall
recor" the '@F number in the ,ashboo$3,ash in 0an$ as reference in the entr
effecting the cancellation of the "ishonore" chec$.
Sec# *3# Cancellation o2 Lost Cec8 Iss+e/# - A chec$ is consi"ere" lost when it
is mis!lace"% walai" or left behin" ina"vertentl&negligentl b the !aee or hol"er
in "ue course or b the custo"ian&carrier thereof an" after "iligent search cannot be
foun" or locate"# or when it is lost "ue to fortuitous event% theft or robber.
+!on submission of sworn statement from the !aee that a chec$ issue" b
the .G+ is lost% the treasurer shall imme"iatel notif the ban$ concerne" for the
sto!!age of !ament. Ee shall forwar" the sworn statement to the accountant who
shall !re!are the '@F to cancel the !ament ma"e. ,o! of the '@F shall be
furnishe" the treasurer as basis for him to "ebit the amount in the ,ashboo$ ,ash
in 0an$.
16
Sec# *4# S!oile/ an/ Stale Cec8s# - ,hec$s ma be cancelle" when the
become s!oile" or stale. A chec$ is consi"ere" s!oil when% it is torn% mutilate"%
"eface" or with erasures&errors affecting the genuineness of an material
information containe" therein.
1t is stale% if it has been outstan"ing for over si; months from "ate of issue or as
!rescribe" b the "e!ositor ban$. At least one month before a chec$ becomes
stale% the Treasurer shall sen" a written notice to the !aee of the e;istence of the
chec$.

A s!oile" or stale chec$ shall be mar$e" cancelle" on its face an" re!orte" as
follows)
1. >or s!oile" chec$s which are imme"iatel
cancelle" an" for which the 8e!ort of ,hec$s 1ssue" -8,1* has not et
been !re!are"% the cancelle" chec$ shall be attache" to the 8,1 an"
re!orte" chronologicall with the other chec$s issue" an" the wor"
CCa$celleD shall be in"icate" on the re!ort.
(. >or stale chec$s which have been unclaime"
an" thus% the original 4F an" su!!orting "ocuments are still with the
Treasurer% the cancelle" chec$ shall be !resente" in the 8,1 after the
last chec$ issue" for the !erio" in"icate" in the re!ort. The original 4F
an" su!!orting "ocuments shall be returne" to the Accountant who
shall !re!are a '@F to recor" the transaction as Accounts 9aable.
/. >or chec$s which became s!oile" or stale in
the han"s of the !aee an" which re<uire re!lacement% a new chec$
ma be issue" u!on submission of the s!oile" or stale chec$ to the
Treasurer. A certifie" co! of the 4F shall be re<ueste" from the
Au"itor for !resentation to the A"ministrator&.ocal ,hief @;ecutive who
shall countersign the chec$. The cancelle" chec$ shall be re!orte" an"
attache" to the 8,1 !re!are" at the !erio" of cancellation. The
re!lacement chec$ shall also be re!orte" chronologicall in the 8,1.
Sec# .)# S+s!ensions= $isallo<ances an/ Car,es# 4isallowances an"
charges shall be ta$en u! in the boo$s of accounts onl when the become final an"
e;ecutor. The Accountant shall !re!are the 'ournal of @ntr Foucher -'@F* to ta$e
u! the 8eceivable 4isallowances an" ,harges an" cre"it the a!!ro!riate e;!ense
account for the current ear or !rior earsK a"justment if !ertaining to e;!enses of
!revious ears.
,ash settlement of "isallowances shall be recor"e" thru the '@F b "ebiting ,ash in
Treasur an" cre"iting the 8eceivable 4isallowances an" ,harges account.
Sus!ensions in au"it an" settlement thereof shall not be recor"e" in the boo$s of
accounts.
Sec# ."# 'ro>2orma Acco+ntin, Entries# - The following the are !ro3forma
accounting entries for miscellaneous transactions)
Acct
#
Co/
e $e5it
Cre/i
t
"# Cas Sorta,e
a. "ash shortage o the o the %is&!rsing Oicer
To ta$e u! cash
shortage
4ue from Officers
an" @m!loees 1(6 B0
,ash 4isbursing
Officers 107 B0
&. "ash Shortage o the Treas!rer
To ta$e u! cash
shortage
4ue from Officers
an" @m!loees 1(6 B0
,ash in Treasur 101 B0
%# Grant o2 Relie2 2rom Acco+nta5ilit0 2or Loss o2 Government
F+n/s
To recor" the loss of
fun" b a 4isbursing
Officer -allege"l thru
theft * M 9B0
4ue from Officers
an" @m!loees
,ash 4isbursing
Officers
1(6
107
B0
B0
To ta$e u! relief from
accountabilit
.oss of Assets
-current ear* or
9rior LearsK
a"justments -!rior
ears*
5=6 B0
4ue from Officers
an" @m!loees 1(6 B0
(# Cas Settlement in case o2 /enial o2 Re;+est 2or Relie2 2rom
Acco+nta5ilit0
To ta$e u!
!ament&settlement
,ash in Treasur
4ue from Officers
an" @m!loees
101
1(6
B0
B0
9# Cas Overa,e
To ta$e u! cash
overage "iscovere"
"uring cash
e;amination
,ash in Treasur
Other S!ecific
1ncome of .G+
101
75(
B0
B0
*# $isonore/ Cec8s
17
Acct
#
Co/
e $e5it
Cre/i
t
-ro0 pa+0e$t o" real propert+ tax !$ the curre$t +ear or pr!or +ear
+!on recei!t of a"vice
of "ishonore" chec$
an" cancellation of
Official 8ecei!t
8eal 9ro!ert Ta;
8eceivable
4eferre" 8eal
9ro!ert Ta;
1ncome
1(=
==6
B0
B0
4ue to .G+s =/1 /0
8eal 9ro!ert Ta;
1ncome 711 (0
,ash in 0an$ .,,A 110 B0
8ecei!t of
refun"&settlement
,ash in Treasur
8eal 9ro!ert Ta;
8eceivable
101
1(=
B0
B0
.# Lost7$estro0e/7Stale7O5solete Cec8s
Chec* !##ue !$ the curre$t/pr!or +ear "or replace0e$t
,hec$ cancellation ,ash in 0an$ .,,A 110 B0
Accounts 9aable =01 B0
8e!lacement Accounts 9aable =01 B0
,ash in 0an$ .,,A 110 B0
1# $isallo<ances an/ Car,es
a. Recording o disallo6ance or c!rrent year7s transaction
Jhen the
"isallowance becomes
final an" e;ecutor
8eceivables
4isallowances&
Over!ament of Office
Su!!lies
,harges
Office Su!!lies
1/6 10
Amount !ai" 3 9100
Shoul" be 3 50
@;!ense 6=5 10
4ifference 3 10
Settlement of
4isallowance
,ash in Treasur
8eceivables
101 10
4isallowances&
,harges 1/6 10
&. Recording o disallo6ance or prior year7s transaction
Acct
#
Co/
e $e5it
Cre/i
t
Jhen the
"isallowance becomes
final an" e;ecutor
8eceivables
4isallowances&
,harges 1/6 10
9rior LearsK
A"justments B// 10
Settlement of
"isallowance
,ash in Treasur
8eceivables
101 10
4isallowances&
,harges 1/6 10
c. Settlement o "harges
c,1 Recor!$) o" char)e# 3h!ch collect!o$ 3ere 0ae !$ the curre$t
+ear
Jhen the charge
becomes final an"
e;ecutor
+n"er!ament of
>ranchise Ta;
8eceivables
4isallowances&
,harges
>ranchise Ta;
1/6
7(=
10
10
Amount 9ai" 3 9 100
Shoul" be 3 110
,harge 3 10
Settlement ,ash in Treasur 101 10
8eceivables
4isallowances&
,harges 1/6 10
c,= Recor!$) o" char)e# 3h!ch collect!o$ 3ere 0ae !$ the pr!or +ear
Jhen the charge
becomes final an"
e;ecutor
8eceivables
4isallowances&
,harges 1/6 10
9rior LearsK
A"justments B// 10
Settlement ,ash in Treasur 101 10
8eceivables
4isallowances&
,harges 1/6 10
3# Re2+n/ o2 Over!a0ment
18
Acct
#
Co/
e $e5it
Cre/i
t
a. Overpayment ta-en !p as receiva&le
To recor"
over!ament of
salaries an" wages
-Jhen over!ament is
ascertaine"*
4ue from Officers
an" @m!loees
Salaries an" Jages
8egular 9a
1(6
601
10
10
To recor" refun" of
over!ament
,ash in Treasur
4ue from Officers
an" @m!loees
101
1(6
10
10
&. Re!nd o overpayment not ta-en !p as receiva&le
8efun" of
over!ament of
Salaries an" Jages
8egular 9a "uring the
current ear
,ash in Treasur
Salaries an" Jages
8egular 9a
101
601
10
10
To ta$e u! refun" of
over !ament in the
ensuing ear
,ash in Treasur
9rior LearsK
A"justments
101
B//
10
10
F# A$?USTING AN$ CLOSING ENTRIES
Sec# .%# A/6+stin, Entries# - A"justing entries are accounting journal entries
ma"e in or"er to ensure that revenues an" e;!enses are recor"e" in the !erio"
when the are earne" or incurre" following the revenue recognition an" the
matching !rinci!les.
A"justing entries are re<uire" ever time financial statements are
!re!are". The use of the a"justing entries ma$es it !ossible to re!ort on the
0alance Sheet the a!!ro!riate assets% liabilities an" e<uit accounts at the
statement "ate an" the Statement of 1ncome an" @;!enses the net income&-loss* for
the !erio".
Sec# .(# T0!es o2 A/6+stin, Entries# - There are two t!es of a"justing entries)
a. 9re!aments# an"
b. Accruals
Sec# .9# 're!a0ments# - 9re!aments are e;!enses !ai" or revenues receive"
before the are incurre" or earne". A"justing entries for !re!aments are re<uire"
at the statement "ate to recor" the !ortion of the !re!ament that re!resents the
e;!ense incurre" or the revenue earne" in the current accounting !erio". Sub3
categories of !re!aments are !re!ai" e;!enses an" unearne" revenues.
9re!ai" e;!enses are e;!enses !ai" in cash an" recor"e" as assets before the are
use" or consume". 9re!ai" e;!enses e;!ire either with the !assage of time -e.g.
rent* or through use an" consum!tion -e.g. su!!lies*. The a"justing entr for
!re!ai" e;!enses is a "ebit to the e;!ense account an" a cre"it to the asset
account. @;am!les are rent% su!!lies% etc. Ac<uisition of !ro"uctive facilities is
viewe" essentiall as long term !re!aments% hence% !erio"ic a"justing entries for
"e!reciation are inclu"e" in this categor. >or "e!reciation% the entr is a "ebit to
"e!reciation e;!ense an" a cre"it to accumulate" "e!reciation, The "e!reciable or
estimate" life for "ifferent t!es of agenc assets are !resente" in Table ( (A$$ex
4).
+nearne" revenues are recor"e" as a liabilit when receive" an" consi"ere" earne"
u!on ren"ition of service -e.g. tuition fees* or the !assage of time -e.g. a"vance
!ament of real !ro!ert ta;es*. The a"justing entr for unearne" revenues is a
"ebit to a liabilit account an" a cre"it to revenue account.
Illu#trat!'e accou$t!$) e$tr!e#&
Acct
#
Co/
e $e5it
Cre/i
t
1. 8e!ort of su!!lies
utili?e" for 9(%000.
Office Su!!lies
@;!ense
Office Su!!lies
1nventor
6=5
1=5
(%000
(%000
(. A!!lication
of a"vance
89T for
9(%B00.
4eferre" ,re"its to
1ncome
8eal 9ro!ert Ta;
==0
711
(%B00
(%B00
Sec# .*# Accr+als# Accruals are revenues earne" an" e;!enses incurre" in the
current accounting !erio" that have not et been recor"e". A"justing entries for
accruals are re<uire" to recor" revenues earne" an" e;!enses incurre" in the
accounting !erio".
A"justing entr for accrue" revenues is a "ebit to a receivable account an" a cre"it
to an income account. @;am!les are interest% share from internal revenue
collections covere" b notice of fun"ing chec$s issue"% etc.
A"justing entr for accrue" e;!enses is a "ebit to the a!!ro!riate e;!ense
account an" a cre"it to a !aable account. @;am!les are accrue" salaries% ba"
"ebts% etc. >or ba" "ebts% the entr is a "ebit to 0a" 4ebts @;!ense an" a cre"it to
Allowance for 4oubtful Accounts.
Acct
#
Co/
e $e5it
Cre/i
t
1. 8ecei!t of the
Notice of >un"ing
,hec$ 1ssue" for the
4ue from NGAs
Share from 1nternal
8evenue
1/0
7=C
(0%000
(0%00
19
Acct
#
Co/
e $e5it
Cre/i
t
4ecember Share from
1nternal 8evenue
,ollections for
9(0%000.
,ollections 0
(. +n!ai" salaries
an" wages of
em!loees% at en" of
accounting !erio"%
9B0%000.
Salaries an" Jages
8egular 9a
4ue to Officers N
@m!loees

601
=(6
B0%000
B0%00
0
Sec# ..# Closin, ?o+rnal Entries# - ,losing journal entries are the accounting
entries !re!are" to re"uce all balances of the nominal accounts to ?ero at the en" of
the accounting !erio" in or"er to !re!are the accounts for the ne;t accounting
!erio". The !roce"ure followe" in the re"uction of the balances is calle" the closing
!rocess. The closing !rocess is as follows)
1. 4ebit all revenue accounts balances an" cre"it the total to the
1ncome an" @;!ense Summar account.
(. ,re"it all e;!ense accounts balances an" cost of goo"s sol" an"
"ebit the total to the 1ncome an" @;!ense Summar account.
/. 4ebit the cre"it balance of the 1ncome an" @;!ense Summar
account an" cre"it the amount in the 8etaine" O!erating Sur!lus
account% in case of a net income.
=. ,re"it the "ebit balance of the 1ncome an" @;!ense Summar
account an" "ebit the amount in the 8etaine" O!erating Sur!lus
account% in case of a net loss.
B. 4ebit all cre"it balances of the interme"iate accounts an" "ebit
the total to the Government @<uit account.
C. ,re"it all "ebit balances of the interme"iate accounts an" cre"it
the total to the Government @<uit account.
Acct
#
Co/
e $e5it Cre/it
1. To close the
8evenue accounts to
the 1ncome an"
@;!ense Summar
account.
8eal 9ro!ert Ta;
Share from 1nternal
8evenue ,ollections
0usiness Ta;es N
.icenses
8egistration >ees
1ncome an" @;!ense
Summar
711
7=C
7(/
7C1
B/(
100
10%000
B0
(0
10%170
Acct
#
Co/
e $e5it Cre/it
(. To close the
1ncome an" @;!ense
Summar to 8etaine"
O!erating Sur!lus
account.
1ncome an" @;!ense
Summar
8etaine" O!erating
Sur!lus

B/(
B/=
B%C70
B%C70
/. To close the
8etaine"
O!erating
Sur!lus to
Government
@<uit
account.
8etaine" O!erating
Sur!lus
Government @<uit
B/=
B01
B%C70
B%C70
Ca!ter 9# TRIAL &ALANCE= FINANCIAL RE'ORTS
AN$ STATEMENTS
Sec# .1# Trial &alance# - Trial balance is a list of all the general le"ger accounts
an" their balances at a given time. The accounts are liste" in the or"er in which the
a!!ear in the le"ger% with the "ebit balances in the left column an" cre"it balances
on the right column.
Sec# .3# '+r!ose o2 te Trial &alance# - The trial balance is !re!are")
a. To !rove the mathematical e<ualit of the "ebits an" cre"its
after !osting#
b. To uncover errors in journali?ing an" !osting# an"
c. As basis for the !re!aration of the financial statements.
Sec# .4# 'roce/+res in te 're!aration o2 te Trial &alance# - The
!roce"ures in trial balance !re!aration shall be)
a. .ist the account titles an" their "ebit&cre"it balances base" on
the accounts an" amount reflecte" in the general le"ger#
b. Total the "ebit an" cre"it columns# an"
c. 9rove the e<ualit of the two columns.
Sec# 1)# 're>Closin, Trial &alance# - The !re3closing trial balance is the trial
balance !re!are" from the general le"ger accounts after the a"justing journal
entries have been journali?e" an" !oste". This is also terme" as a"juste" trial
balance.
Monthl !re3closing trial balance for each fun" shall be submitte" not later than the
twentieth "a after the en" of the month. 1t shall be su!!orte" b the Status of
A!!ro!riations% Allotments an" Obligations% for both the current an" continuing
a!!ro!riations.

These re!orts shall be submitte" to the following)
20
,OA +nit Au"itor Original co!
.ocal Sanggunian 1 co!
.ocal Treasurer 1 co!
.ocal Accountant 1 co!
The trial balance at the en" of the <uarter shall also be su!!orte" b a sche"ule of
subsi"iar le"ger balances of the controlling accounts in the General .e"ger an" an
a""itional co! shall be submitte" to the ,OA 8egional Office thru the +nit Au"itor.
Sec# 1"# Stat+s o2 A!!ro!riations= Allotments an/ O5li,ations# - The status
of a!!ro!riations% allotments an" obligations is a sche"ule !re!are" showing the
a!!ro!riation% allotments an" obligations of each function% !rogram !roject an"
activit (See A$$ex 1). Se!arate sche"ules shall be !re!are" for current
a!!ro!riation an" for continuing a!!ro!riations using the following column
hea"ings)
-u$ct!o$/Pro)ra0/
Pro@ect/ Act!'!t+
Appropr!at!o$
#
Allot0e$
t
Obl!)at!o
$
U$obl!)at
e
Bala$ce
Sec# 1%# 'ost>closin, Trial &alance# - 9ost3closing trial balance is the trial
balance !re!are" at the en" of the ear after the closing entries are journali?e" an"
!oste" in the general le"gers. 1n the 9ost3closing Trial 0alance% all the nominal
accounts -revenue% e;!ense an" interme"iate* are close" an" the real accounts
-assets% liabilit an" e<uit* are shown with balances. 1t shall be submitte" not later
than the fourteenth "a of >ebruar after the en" of the calen"ar ear with the
following su!!orting sche"ules)
a. Status of A!!ro!riations% Allotments an" Obligations#
b. Subsi"iar Sche"ule of General .e"ger account balances# an"
c. Summar of 9ublic 1nfrastructures (A$$ex 6),
The !ost3closing trial balance with su!!orting sche"ules shall be "istribute" as
follows)
,OA ,entral Office thru the +nit Au"itor 1 co!
,OA 8egional Office 1 co!
,OA +nit Au"itor 1 co!
.ocal ,hief @;ecutive 1 co!
.ocal Sanggunian 1 co!
.ocal Treasurer 1 co!
.ocal Accountant 1 co!
Sec# 1(# Interim Re!orts# - 1nterim re!orts are financial statements re<uire" to
be !re!are" at an given !erio" or at a financial re!orting !erio" shorter than a full
financial ear% without closing the boo$s of accounts. The following interim financial
statements an" the Notes to >inancial Statements shall be !re!are" an" submitte"
<uarterl)
a. 0alance Sheet#
b. Statement of 1ncome an" @;!enses# an"
c. Statement of ,ash >lows
The interim re!orts shall be !re!are" em!loing the same accounting !rinci!les
use" for annual re!orts. A"justing entries shall be !re!are" for the interim !erio".
To facilitate the !re!aration of the interim financial statements% the use of the
wor$sheet is recommen"e".
Sec# 19# Wor8seet# - A wor$sheet is the accountants informal "evice for
accumulating an" sorting information nee"e" for the financial statements. 1t is a
columnar sheet of !a!er use" to a"just the account balances an" !re!are the
financial statements.
The use of the wor$sheet facilitates the en"3of3!erio" accounting an" re!orting
!rocess. Also% it hel!s accountants !re!are the financial statements on a more
timel basis. The following wor$sheet format shall be use")
Name of .G+
Jor$sheet
As of PPPPPPPPPPPP% (0PPPPP
Accou$t# Tr!al
Bala$ce
A@u#t0e$t
#
A@u#te
T/B
State0e$t
o" I$co0e
E
Expe$#e#
Bala$ce
Sheet
T!tle Co
e
1r, Cr, 1r, Cr, 1r, Cr, 1r, Cr, 1r, Cr,
1. Account title an" co"e columns show the account titles&co"es of the
general le"ger accounts.
(. Trial balance column reflects amounts obtaine" from the general le"ger
balances.
/. A"justment columns are the a"justments effecte" for the !re!aments an"
accruals.
=. A"juste" trial balance shows the balances of all the accounts after the
a"justment at the en" of the accounting !erio".
B. Statement of 1ncome an" @;!enses shows all the "ebit an" cre"it items in
the a"juste" trial balance for all the income an" e;!ense accounts. The
"ifference between the income an" e;!enses shall be reflecte" as Net
1ncome&.oss to be e;ten"e" to the cre"it column of the 0alance Sheet.
C. 0alance Sheet show all the "ebit an" cre"it items in the a"juste" trial
balance of all the asset% liabilit% e<uit an" interme"iate accounts
affecting "irectl the Government @<uit account.
Sec# 1*# Statement o2 Mana,ement Res!onsi5ilit0 2or Financial
Statements# Statement of Management 8es!onsibilit for >inancial Statements
(A$$ex =) shows the agenciesK res!onsibilit for the !re!aration an" !resentation of
its financial statements. The statement shall be signe" b the ,hief Accountant an"
the Eea" of the Agenc or his authori?e" re!resentative. 1t shall form an integral
!art of the financial statements% all of which shall be transmitte" to the concerne"
agencies.
Sec# 1.# Year>en/ Financial Statements# - .ocal accountants shall !re!are at
the en" of the ear the following financial statements for each fun")
a. 0alance Sheet#
b. Statement of 1ncome an" @;!enses# an"
The ,hief Accountant shall li$ewise !re!are the consoli"ate" financial statements
for all fun"s an" the Notes to the >inancial Statements.
21
Sec# 11# &alance Seet# - The 0alance Sheet (A$$ex :) shows the financial
con"ition of the agenc at a s!ecific "ate. 1t !resents information on the assets%
liabilit an" the government e<uit of the agenc.

Sec# 13# Statement o2 Income an/ E:!enses# - The Statement of 1ncome an"
@;!enses (A$$ex ?) shows the income an" e;!enses of the agenc at the en" of a
!articular !erio". 1t !resents the "etaile" information of the income an" e;!enses
recogni?e" "uring the !erio" covere".
Sec# 14# Statement o2 Cas Flo<s# - The Statement of ,ash >lows (A$$ex 9)
shows the agencKs cash activities. 1t re!orts cash recei!ts an" cash !aments an"
net change in cash resulting from o!erating% investing an" financing activities of an
agenc "uring a !erio"% in a format that reconciles the beginning an" en"ing cash
balances.
Sec# 3)# Notes to te Financial Statements# - The Notes to the >inancial
Statements (A$$ex <) are the accountantKs means of am!lifing or e;!laining the
items !resente" in the main bo" of the statements. These are e;!lanator notes on
the accounts an"&or accounting !olicies which will give a""itional information value
to the financial statements. 1n the Notes% the accountant is e;!ecte" to re!ort the
economic substance rather than the legal form of the transactions an" to ma$e
a"e<uate "isclosure.
The Notes to >inancial Statements inclu"e the following)
1. Summar of significant accounting !olicies a"o!te" an" followe" b the
re!orting entit#
(. Narrative "escri!tions or "etaile" analses of amounts shown on the face
of the balance sheet% statement of income an" e;!enses an" statement of
cash flows#
/. ,ustomar or routine "isclosure which are information about
measurement bases of im!ortant assets% restrictions on assets% contingent
assets&liabilities% im!ortant long term commitments not recogni?e" in the
bo" of the statements% etc.#
=. 4isclosures of changes in accounting !rinci!les3 changes in accounting
!rinci!les% !ractices or metho"s of a!!ling them# an"
B. 4isclosures of subse<uent events "isclosure of events that affect the
agenc "irectl an" that occur between the "ate of% or en" of the !erio"
covere" b% the financial statements an" "ate of com!letion of the
statements are necessar# if $nowle"ge of the events might affect the
inter!retation of the statements% even though the events "o not affect the
!ro!riet of the financial statements themselves.
Ca!ter *# S'ECIAL FUN$S
A. A,,O+NT1NG >O8 S9@,1A. @4+,AT1ON >+N4
Sec# 3"# S!ecial E/+cation F+n/# The S!ecial @"ucation >un" -S@>* consist of
the !rocee"s of one !ercent -1I* ta; on the assesse" value of real !ro!ert in
a""ition to the basic real !ro!ert ta;% which a !rovince or cit% or a munici!alit
within the Metro!olitan Manila Area% ma lev an" collect.
Sec# 3%# A!!lication o2 'rocee/s o2 te A//itional One 'ercent @"AB
S!ecial E/+cation F+n/ Ta:# - -a* The !rocee"s of the a""itional one !ercent
-1I* real !ro!ert ta; accruing to s!ecial e"ucation fun" shall be automaticall
release" to the local school boar"s.
-b* 1n case of !rovinces% the !rocee"s of the s!ecial e"ucation fun" shall be
"ivi"e" e<uall between the !rovincial an" munici!al school boar"s.
-c* Sai" !rocee"s shall be allocate" as "etermine" an" a!!rove" b the
local school boar"s concerne" onl for the following !ur!oses)
1. O!eration an" maintenance of !ublic schools#
(. ,onstruction an" re!air of school buil"ings% facilities an" e<ui!ment#
/. @"ucational research#
=. 9urchase of boo$s an" !erio"icals# an"
B. S!orts "evelo!ment.
(Art!cle :<: o" the IRR o" the Local 2o'er$0e$t Coe)
Sec# 3(# S!ecial E/+cation F+n/ &+/,et# - The .ocal School 0oar" shall
"etermine in accor"ance with the criteria set b 4@,S% the annual su!!lementar
bu"getar nee"s for the o!eration an" maintenance of !ublic schools within the
!rovince% cit% or munici!alit as the case mabe% an" the su!!lementar local cost
of meeting such nee"s% which shall be reflecte" in the form of an annual school
boar" bu"get corres!on"ing to its share of the !rocee"s of the s!ecial lev on real
!ro!ert constituting the s!ecial e"ucation fun" an" such other sources of revenue
as the .ocal Government ,o"e an" other laws or or"inances ma !rovi"e. (Art!cle
16?(b)(1) o" the IRR o" the Local 2o'er$0e$t Coe)
The "ivision su!erinten"ent% cit su!erinten"ent% or "istrict su!ervisor% as
the case mabe% shall !re!are the bu"get of the school boar" concerne". Such
bu"get shall be su!!orte" b !rograms% !rojects an" activities of the school boar"
for the ensuing fiscal ear. A majorit of all the members shall be necessar to
a!!rove the bu"get. (Art!cle 16?(") o" the IRR o" the Local 2o'er$0e$t Coe)
The annual school boar" shall give !riorit to the following)
1. ,onstruction% re!air an" maintenance of school buil"ings an" other facilities of
!ublic elementar an" secon"ar schools#
(. @stablishment an" maintenance of e;tension classes when necessar# an"
/. Eol"ing of s!orts activities at the "ivision% "istrict% munici!al% an" baranga
levels.
Sec# 39# &asis o2 Recor/in, S!ecial E/+cation Ta: S!ecial @"ucation Ta;
8eceivables shall be establishe" at the beginning of the ear base" on 8eal 9ro!ert
Ta; Account 8egister&Ta;!aerKs in"e; car". At the beginning of the ear% the
Treasurer shall furnish the ,hief Accountant with a "ul certifie" list of the name of
ta;!aers an" the amount "ue an" collectible for the ear. 0ase" on the list% the
,hief Accountant shall "raw a 'ournal @ntr Foucher -'@F* to recor" the S!ecial
@"ucation Ta; 8eceivables.
Sec# 3*# $elin;+encies 2or S!ecial E/+cation Ta: !rior to CY %))%#
9ament of "elin<uencies for s!ecial e"ucation ta;es !rior to ,L (00( shall be
recogni?e" as a "irect cre"it to S!ecial @"ucation Ta; 1ncome account.
22
Sec# 3.# Collection 'roce/+res 2or te S!ecial E/+cation Ta:# - The a""itional
one !ercent -1I* ta; on real !ro!ert shall be collecte" simultaneousl with the
basic real !ro!ert ta;. A single official recei!t shall be issue" for both ta;es%
in"icating therein the amount !ai" for the basic ta; an" the a""itional one !ercent
ta;. Eowever% the collecting officer shall !re!are se!arate re!orts of collections for
the two ta;es. >urther% the !rocee"s of the a""itional one !er cent ta; shall be
"e!osite" in a se!arate "e!ositor account.
9roce"ures for the turn over of collections% fre<uenc of "e!osit of
collection with the ban$% !re!aration of re!ort of collections% verification of
collections an" accountable forms% !re!aration of re!ort of accountabilit for
accountable forms as well as consoli"ation of re!orts of accountable forms shall be
the same as that !rescribe" for collections in the General >un".
Sec# 31# Se!arate Cas5oo8s 2or S!ecial E/+cation F+n/# - The Treasurer
an"&or the concerne" accountable officers shall maintain se!arate cashboo$s for the
S@> which shall be in accor"ance with the !rescribe" format.
Sec# 33# Se!arate Re,istries= &oo8s o2 Acco+nts= an/ Financial Re!orts 2or
S!ecial E/+cation F+n/# - The ,hief Accountant shall maintain se!arate registries
for a!!ro!riation% allotment an" obligations an" boo$s of accounts for S@>. Ee shall
li$ewise !re!are se!arate financial re!orts such as the Trial 0alance% 0alance Sheet%
Statement of 1ncome an" @;!enses% Statement of ,ash >lows an" su!!orting
sche"ules% to be submitte" within the !rescribe" timeframe.
>or "isbursements% se!arate set of '@Fs shall also be !re!are" which shall
be numbere" in accor"ance with the !rescribe" co"es.
Sec# 34# 're!aration an/ Control o2 ALO&S 2or S!ecial E/+cation F+n/# -
The Allotment an" Obligation Sli!s -A.O0S* !ertaining to the fun" shall be !re!are"
an" signe" b authori?e" official of the re<uesting "e!artment or office. This shall
be forwar"e" to the 0u"get Officer who% base" on the a!!rove" school boar"
bu"get% shall verif the e;istence of a!!ro!riation for the !ro!ose" e;!en"iture. Ee
shall certif the A.O0S to that effect an" number the same in accor"ance with the
!rescribe" co"es. This shall then be forwar"e" to the ,hief Accountant who shall
certif as to obligations of allotments an" shall recor" the same in the a!!ro!riate
8egistr of A!!ro!riations% Allotments an" Obligations -8AAO*. The A.O0S shall form
an integral !art of the "isbursement voucher&!aroll an" the certifications of the
local bu"get officer an" the accountant thereon shall serve as their certification of
the "isbursement as re<uire" b law.
Sec# 4)# Certi2ication as to Cas Availa5ilit0# - The Treasurer shall certif as to
cash availabilit for the fun" in the 4isbursement Foucher an" 9urchase 8e<uest.
>or infrastructure !rojects un"erta$en b contract% the Treasurer shall also certif as
to cash availabilit in the contract. This certification shall serve as the re<uire"
certification un"er the law.
Sec# 4"# $is5+rsement 'roce/+res# - 4isbursement !roce"ures inclu"ing the
re!orts to be submitte" b the accountable officer concerne" are the same as those
for the General >un". Eowever% "isbursements shall be a!!rove" b the .ocal ,hief
@;ecutive concerne" as co3chairman of the local school boar". The "ivision&cit
su!erinten"ent of schools or the "istrict su!ervisor concerne"% as the case mabe%
shall certif vouchers or !arolls as to vali"it% !ro!riet% an" legalit of the claim
involve".
Sec# 4%# Inventor0 'rocess# - The !er!etual inventor metho" an" the moving
average metho" shall li$ewise be a"o!te" in the accounting an" costing of
inventor. The general !roce"ures% the forms an" re!orts for the hol"ing of
inventor shall also be followe". Eowever% se!arate !er!etual inventor recor"s an"
stoc$ car"s shall be maintaine" b the Accounting +nit an" the General Services
Officer or the Treasurer% as the case mabe. .i$ewise% se!arate wee$l Summar for
Su!!lies an" Materials 1ssue" !ertaining to the fun" shall be !re!are".
Sec# 4(# 'ro>2orma Acco+ntin, Entries# - 9ro3forma accounting entries for the
fun"% follows)
S9@,1A. @4+,AT1ON >+N4 -S@>*
I# 'artic+lars Acco+nt Title
Acct
#
Co/
e $e5it Cre/it
1. Set3u! S!ecial
e"ucation Ta;
S!ecial @"ucation
Ta; 8eceivable 1(B B00%00
0
8eceivable
Total 8eceivables
4eferre" S!ecial
@"ucation Ta;
9B00%00
0
1ncome ==5 B00%00
0
9rovincial Share
9(B0%00
0
(. ,ollection of
S!ecial
@"ucation Ta;
9(00%000.
,ash in Treasur
S!ecial @"ucation
Ta; 8eceivable
101
1(B
(00%00
0
(00%00
0
,om!utation of
Shares of .G+s in 89T
B0I of
4eferre" S!ecial
@"ucation Ta;
1ncome ==5 (00%00
0
9(00%000 for 9rovincial S!ecial @"ucation
Ta; 71/ 100%00
0
Share 4ue to .G+s =/1 100%00
0
/. 4e!osit of
collections with
authori?e" "e!ositor
ban$
,ash in 0an$ .,,A
,ash in Treasur
110
101
(00%00
0 (00%00
0

=. 8emittance of share
to 9rovince - S!ecial
4ue to .G+s
-9rovince*
=/1 100%00
0
@"ucation Ta;*
9100%000
,ash in 0an$ .,,A 110 100%00
0

23
Acct
#
Co/
e $e5it Cre/it
B. 8ecei!t of allotment
for Allotment ,lass)
Memo entr in
8egistr of
9ersonal Services 3
9B0%000
MOO@ 3
(0%000
,a!ital Outla 3
A!!ro!riations %
Allotments an"
Obligations
-9ersonal
Services -8AAO9S%
MOO@ 8AAOMO%
/0%000
Total 9100%000
,a!ital Outla
8AAO,O*
C. Obligation for 9S
Salaries of teachers for
e;tension class
9/0%000
Memo entr in
8AAO9S

7. Grant of cash
a"vance for !aroll
,ash 4isbursing
Officers
,ash in 0an$ .,,A
107
110
(B%000
(B%000

6. 9ament of Salaries
Salaries !er 9aroll
9 /0%000
Salaries an" Jages
8egular 9a
,ash 4isbursing
601 /0%000
.ess) 4e"uctions
-9ersonal Share*
Officers
Jithhol"ing Ta;es
107 (B%000
.ife N 8et. 9 (%6B0
9ag3ibig C00
9aable =10 1%0B0
9hilEealth
B00
J&hol"ing Ta;
1%0B0
GS1S 9aable
9AG3101G 9aable
=11
=1(
(%6B0
C00
B%000 9E1.E@A.TE
Net 9a !er 9aroll
9(B%000
9aable =1/ B00
5. 8emittance of salar
"e"uctions
Jithhol"ing Ta;es
9aable =10 1%0B0
GS1S 9aable =11 (%6B0
9AG3101G 9aable =1( C00
9E1.E@A.TE 9aable
=1/ B00
,ash in 0an$ .,,A 110 B%000
10. Obligation for
Government Share)
Memo entr in
8AAO9S
.ife N 8et. 1ns.
Acct
#
Co/
e $e5it Cre/it
,ontributions
9(%6B0
9ag3ibig
,ontributions
C00
9hilEealth
,ontributions
B00
Total 9/%5B0
11. 9ament of
Government Share
.ife N 8etirement
1nsurance
,ontributions 617 (%6B0
9AG3101G
,ontributions 616 B00
9E1.E@A.TE
,ontributions 615 C00
,ash in 0an$ .,,A 110 /%5B0
1(. Obligation of
Traveling @;!enses
9B00
Memo entr in
8AAOMO
1/. Grant of cash
a"vance
4ue from Officers N
@m!loees 1(6 B00
,ash in 0an$ .,,A 110 B00
1=. .i<ui"ation of cash
a"vance
Traveling @;!enses
.ocal 6/1 =60
4ue from Officers N
@m!loees 1(6 =60
1B. A"justment of
obligation of travel.
Memo entr in
8AAOMO
1C. 8efun" of cash
a"vance
,ash in Treasur
4ue from Officers N
101 (0
@m!loees 1(6 (0
17. 4e!osit of cash
refun"
,ash in 0an$ .,,A 110 (0
,ash in Treasur 101 (0
16. Obligation of bill Memo entr in
24
Acct
#
Co/
e $e5it Cre/it
receive" from
M@8A.,O
8AAOMO
15. 9ament of
M@8A.,O bill 9600
@lectricit
,ash in 0an$ .,,A
6/B
110
600
600
(0. Obligation for the
!urchase of Office
Su!!lies 9B00
Memo entr in
8AAOMO
(1. 9ament of office
su!!lies
Office Su!!lies
1nventor 1=5 B00
Jithhol"ing Ta;es
9aable =10 (0
,ash in 0an$ .,,A 110 =60
((. Obligation of
@<ui!ment !er
9urchase Or"er
9/0%000
Memo entr in
8AAO,O
(/. 9ament of
e<ui!ment with
1nvoice&4eliver
Office @<ui!ment
Jithhol"ing Ta;es
((( /0%000
8ecei!t 9aable =10 /%000
,ash in 0an$ .,,A 110 (7%000
(=. 8ecei!t of fun"
transfer from General
>un" thru ban$
,ash in 0an$ .,,A
Subsi" from Other
>un"s
110
C0B
B%000
B%000
A/6+stin, EntriesC
1. 4e!reciation of
@<ui!ment using the
Straight .ine Metho")
@<ui!ment )
.ife Amount
B rs. 9C%000
4e!reciationOffice
@<ui!ment
Accumulate"
4e!reciation
Office
@<ui!ment

5((
/((
C%000
C%000
Closin, Entries C
Acct
#
Co/
e $e5it Cre/it
1. ,losing of 1ncome S!ecial @"ucation
Ta;
71/ 100%0
00
Accounts Subsi" from Other
>un"s C0B B%000
1ncome an" @;!ense
Summar B/( 10B%000
(. ,losing of @;!ense
Accounts
1ncome an" @;!ense
Summar B/( =1%(/
0
Salaries N Jages
8egular 9a 601 /0%000
.ife N 8etirement
1nsurance
,ontributions 617 (%6B0
9AG3101G
,ontributions 616 C00
9E1.E@A.TE
,ontributions 615 B00
Traveling @;!enses
.ocal 6/1 =60
@lectricit 6/B 600
4e!reciationOffice
@<ui!ment 5(( C%000
/. ,losing of 1ncome
an" @;!ense Summar
1ncome an" @;!ense
Summar
B/( C/%77
0
8etaine" O!erating
Sur!lus B/= C/%770
=. ,losing of 8etaine"
O!erating Sur!lus
8etaine" O!erating
Sur!lus B/= C/%77
0
Government @<uit B01 C/%770
0. T8+ST >+N4
Sec# 49# $e2inition o2 Tr+st F+n/. Trust >un" shall consist of !rivate an" !ublic
monies which have officiall come into the !ossession of the local government or of
a local government official as trustee% agent or a"ministrator% or which have been
receive" as a guarant for the fulfillment of some obligation. A trust fun" shall onl
be use" for the s!ecific !ur!ose for which it was create" or for which it came into
the !ossession of the local government unit.
Sec# 4*# Recei!ts Accr+in, to te Tr+st F+n/# - Grants an" "onations
coming from foreign fun"ing institutions% other levels of government an" !rivate
25
institutions&in"ivi"uals for s!ecific !rojects&!ur!ose shall accrue to the Trust >un".
@<uit of the .G+ on !rojects un"er a trust agreement shall also accrue to the Trust
>un". These recei!ts shall be cre"ite" to the 9roject @<uit account.
.oans of .G+s for income generating !rojects from the Munici!al 4evelo!ment >un"
Office -M4>O* re<uiring counter!art fun"ing from .G+s shall not be recor"e" in the
Trust >un" but as a S!ecial Account in the General >un".
Sec# 4.# Collection 'roce/+res 2or te Tr+st F+n/# - ,ash collections for the
Trust >un" shall be ac$nowle"ge" through the issuance of an official recei!t.
9roce"ures for the turn over of collections% fre<uenc of "e!osit of collection with
the ban$% !re!aration of re!ort of collections% verification of collections an"
accountable forms% !re!aration of re!ort of accountabilit for accountable forms as
well as consoli"ation of re!orts of accountable forms shall be the same as that
!rescribe" for collections in the General >un".
1n case of recei!t of fun"s through the ban$% the Accountant shall "raw a '@F base"
on the ban$ cre"it memo.
Sec# 41# 'ro6ect E:!en/it+res. The construction !erio" theor shall a!!l for
e;!en"itures on infrastructure !rojects of the Trust >un". >or other !rojects%
e;!en"itures shall be "ebite" to the a!!ro!riate e;!en"iture account. @;!en"itures
shall be close" to 9roject @<uit account at ear3en" or u!on !roject com!letion%
whichever comes first.

Sec# 43# Se!arate Cas5oo8s 2or Tr+st F+n/. The Treasurer an"&or the
concerne" accountable officers shall maintain se!arate cashboo$s for the Trust >un"
which shall be in accor"ance with the !rescribe" format.
Sec# 44# Se!arate &oo8s o2 Acco+nts an/ Financial Re!orts 2or Tr+st F+n/#
- The ,hief Accountant shall maintain se!arate boo$s of accounts for Trust >un". Ee
shall li$ewise !re!are se!arate financial re!orts such as the Trial 0alance% 0alance
Sheet% Statement of ,ash >lows an" su!!orting sche"ules% to be submitte" within
the !rescribe" timeframe.
Sec# "))# $is5+rsements <itin Tr+st A,reement7A!!rove/
&+/,et# - 4isbursements from trust fun"s shall be in accor"ance with the s!ecific
!ur!ose state" in the trust agreement&a!!rove" bu"get between the trustor an"
trustee -.G+* as certifie" b the ,hief Accountant. The certification on the 4F as to
e;istence of fun"s hel" in trust shall serve this !ur!ose.
Sec# ")"# Certi2ication an/ A!!roval o2 $is5+rsements 2rom
Tr+st F+n/s. - 4isbursements from the Trust >un" shall re<uire)
a. ,ertification an" a!!roval of vouchers an" !arolls as to
vali"it% !ro!riet an" legalit of the claim involve" b the
"e!artment& office hea" concerne"#
b. ,ertification as to e;istence of fun"s hel" in trust an"
com!leteness an" !ro!riet of su!!orting "ocuments b the
Accountant#
c. ,ertification as to cash availabilit b the Treasurer# an"
". A!!roval b the A"ministrator of the fun".
Sec# ")%# $is5+rsement 'rocess# - 4isbursements from the Trust >un" shall be
as follows)
a. %is&!rsement &y chec-
RESPONSIBLE
1. Gather su!!orting "ocuments%
!re!are 4F&!aroll an" forwar" to
Eea" of 4e!artment.
,oncerne" Office
(. Sign 0o; A of 4F an" submit to the
Accounting +nit.
Su!ervisor&Eea" of
4e!artment
/. ,hec$ com!leteness of "ocuments
an" verif e;istence of fun"s hel" in
trust% assign number to 4F&9aroll%
sign 0o; 0 an" forwar" to
Treasurer.
Accounting +nit
=. Ferif claim% certif cash availabilit
-0o; ,* an" forwar" to a!!roving
officer.
Treasurer
B. A!!rove transaction -0o; 4* an"
forwar" 4F to ,ashier.
.ocal ,hief @;ecutive&
A"ministrator of the
>un"
C. 9re!are an" sign chec$ an" forwar"
chec$ with 4F to countersigning
officer.
Treasurer
7. ,ountersign chec$ an" forwar" to
Accountant for !re!aration of the
AccountantKs A"vice.
A"ministrator
6. 9re!are AccountantKs A"vice of
.ocal ,hec$ 4isbursements an"
return 4F% chec$ an" su!!orting
"ocuments to ,ashier&Treasurer.
Accountant
5. 1ssue chec$ to claimant. 8ecor"
"isbursement in ,ashboo$ ,ash in
0an$. 9re!are 8e!ort of ,hec$s
1ssue" -8,1*% forwar" 8,1 with 4F
an" su!!orting "ocuments to
Accounting +nit.
Treasurer
10. 9re!are the '@F base" on in"ivi"ual
chec$s&voucher# sign G9re!are" 0H
!ortion -a!!rove" b ,hief
Accountant*% an" recor" '@F in the
,hec$ 4isbursements 'ournal. 9ost
monthl to the General
.e"ger&Subsi"iar .e"gers
Accounting +nit
11. >orwar" 8,1% 4F% su!!orting
"ocuments an" '@F to the Office of
the Au"itor for final custo" an"
!ost au"it.
Accountant
26
RESPONSIBLE
&. Payments thro!gh cash advances
>or !aments through cash a"vances% !roce"ures 1 to B for chec$ "isbursement
shall be followe". The rest of the !roce"ures shall be the same as that of the
General >un".
Sec# ")(# Inventor0 'rocess# - The !er!etual inventor metho" an" the moving
average metho" shall li$ewise be a"o!te" in the accounting an" costing of
inventor. The general !roce"ures% the forms an" re!orts for the hol"ing of
inventor shall also be followe". Eowever% se!arate !er!etual inventor recor"s an"
stoc$ car"s shall be maintaine" b the Accounting +nit an" the General Services
Officer or the Treasurer as the case mabe. .i$ewise% se!arate wee$l Summar for
Su!!lies an" Materials 1ssue" !ertaining to the fun" shall be !re!are".
Sec# ")9# 'ro>2orma Acco+ntin, Entries 2or Tr+st F+n/s# - Accounting entries
for t!ical transactions un"er the trust fun"s are as follows)
Acct
#
Co/
e
II#
III# $e5i
t Cre/it
"# Recei!t o2 ,rant 2rom NGA
a. 8ecei!t of grant
"irect to ban$ from
NGA for)
a. ,onstruction
of roa" 9(M
,ash in 0an$ .,,A
9roject @<uit
110 (%B00%00
0
b. 9urch
ase of
constr
uction
@<ui!ment
9B00%000
B0(301
9(%B00%000
B0( (%B00%00
0
b. 1ssuance of
chec$ with a!!rove"
4F for !ament to
contractor u!on
recei!t of first billing
B0I accom!lishe"
,onstruction in
9rogress
8oa"s% Eighwas
N 0ri"ges
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
(/(
=10
110
1%000%00
0
100%000
500%000
c. Submission of
statement of
"isbursements to
grantor
No entr
". 1ssuance of ,onstruction in
Acct
#
Co/
e
II#
III# $e5i
t Cre/it
chec$ with a!!rove"
4F for !ament to
contractor u!on
recei!t of secon"
billing 100I
accom!lishe"
9rogress 8oa"s%
Eighwas N
0ri"ges
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
(/(
=10
110
1%000%00
0
100%000
500%000
e. Transfer of
com!lete"
construction to
9ublic 1nfrastructure
9ublic
1nfrastructures
,onstruction in
9rogress
8oa"s% Eighwas
N 0ri"ges
(=/
(/(
1%000%00
0
1%000%00
0
f. 8emittance of
ta;es w&hel"
Jithhol"ing Ta;es
9aable =10 (00%000
,ash in 0an$ .,,A 110 (00%000
g. 9urchase of
e<ui!ment
,onstruction an"
Eeav @<ui!ment (1( B00%000
Jithhol"ing Ta;es
9aable =10 B0%000
,ash in 0an$ .,,A 110 =B0%000
h. 9ament of
withhol"ing ta;
Jithhol"ing Ta;es
9aable =10 B0%000
,ash in 0an$ .,,A 110 B0%000
i. Submission of full
li<ui"ation to
grantor an" transfer
of com!lete" roa"
an" e<ui!ment to
G> for .G+ use
9roject @<uit
9ublic
1nfrastructures
,onstruction an"
Eeav @<ui!ment
B0(
(=/
(1(
(%B00%00
0 (%000%00
0
B00%000

0ote1 U$er the 2- boo*#( co0plete !$"ra#tructure pro@ect #hall be
recore !$ the Re)!#tr+ o" Publ!c I$"ra#tructure# 3!th the T- .E/ No, a#
ba#!#, The tra$#"erre e>u!p0e$t #hall be recore a# "ollo3#&
$eneral '!nd
Boo-s1
Publ!c
I$"ra#tructure#
=?: =(777(77
7
Co$#truct!o$ a$
Fea'+ E>u!p0e$t =1= 977(777
27
Acct
#
Co/
e
II#
III# $e5i
t Cre/it
I$'e#te E>u!t+ 9:4 =(977(77
7
+t the end o the
year1
a, Clo#!$) o"
I$'e#te E>u!t+ to
2o'er$0e$t E>u!t+
I$'e#te E>u!t+
2o'er$0e$t E>u!t+
9:4
97=
=(977(77
7 =(977(77
7
b, Tra$#"er o" Publ!c
I$"ra; #tructure to
RPI
2o'er$0e$t E>u!t+
Publ!c
I$"ra#tructure#
97=
=?:
=(777(77
7 =(777(77
7
%# Recei!t o2 ,rant <it co+nter!art 2+n/ 2rom LGU
a. 9roject bu"get as
agree" u!on
between grantor
an" .G+ for !roject)

Grantor
0uil"ing 3
1.(M
@<ui!ment 3 .
/M
.G+ >un"e"
Office su!!lies
31M
Salaries of !roject
9ersonnel 3 .
=M
Total
(M
b. 8ecei!t of fun"s
from foreign
fun"ing
institution thru
national
government
agenc
,ash in 0an$ .,,A
9roject @<uit
B0(301 3
1%B00%000
B0(30( 3
B00%000
110
B0(
(%000%00
0 (%000%00
0
0ote1 E$tr+ !$ L2U 2e$eral -u$ boo*# #hall be 5
2ra$t# a$
1o$at!o$#
66G 977(777
Ca#h !$ Ba$* 5 LCCA 117 977(777
Acct
#
Co/
e
II#
III# $e5i
t Cre/it
c. 1ssuance of chec$
with a!!rove" 4F
for !ament to
contractor for
,onstruction of
0uil"ing% B0I
accom!lishe".
,onstruction in
9rogress
Agenc Assets
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
(/0
=10
110
B00%000
B0%000
=B0%000
". 8emittance of
withhol"ing ta;
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
=10
110
B0%000
B0%000
e. 1ssuance of
chec$ with
a!!rove" 4F for
cash a"vance
on salaries an"
wages of
!roject
a"ministrative
!ersonnel
,ash 4isbursing
Officers
,ash in 0an$ .,,A
107
110
170%000
170%000
f. .i<ui"ation of
,ash A"vances
Salaries an" Jages
,asual&
,ontractual 60/ (00%000
Jithhol"ing Ta;es
9aable =10 /0%000
,ash 4isbursing
Officers 107 170%000
g. 8emittance of
ta; withhel"
Jithhol"ing Ta;es
9aable =10 /0%000
,ash in 0an$ .,,A 110 /0%000
h. 1ssuance of
chec$ with a!!rove"
4F for !urchase of
su!!lies an"
materials
Office Su!!lies
1nventor
,ash in 0an$ .,,A
1=5
110
100%000
100%000
i. 1ssuance of office
su!!lies
Office Su!!lies
@;!enses 6=5 C0%000
28
Acct
#
Co/
e
II#
III# $e5i
t Cre/it
Office Su!!lies
1nventor 1=5 C0%000
j. 9urchase of 1T
e<ui!ment
1T @<ui!ment an"
Software (1B (B0%000
Jithhol"ing Ta;es
9aable =10 (B%000
,ash in 0an$ .,,A 110 ((B%000
$. 8emittance of
withhol"ing ta;
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
=10
110
(B%000
(B%000
l. 1ssuance of chec$
for installation of
e<ui!ment
1T @<ui!ment an"
Software
,ash in 0an$ .,,A
(1B
110
B0%000
B0%000
En/ o2 Year
m.,losing. of
e;!enses to 9roject
@<uit
9roject @<uit
B0(30( 3
9(C0%000
B0( (C0%000
Salaries an" Jages
,asual&
,ontractual
60/ (00%000
Office Su!!lies
@;!enses 6=5 C0%000
S+ccee/in, 0ear
n. 1ssuance of
chec$ with a!!rove"
4F for !ament to
contractor for
,onstruction of
0uil"ing 100I
accom!lishe".
,onstruction in
9rogress
Agenc Assets
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
(/0

=10
110

700%000
70%000
C/0%000
o. 8emittance
of withhol"ing ta;
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
=10
110
70%000
70%000
!. Transfer of
construction in
!rogress to
9ro!ert 9lant an"
@<ui!ment
0uil"ing (0=

1%(00%00
Acct
#
Co/
e
II#
III# $e5i
t Cre/it
!ro!ert% !lant an"
e<ui!ment account
,onstruction in
9rogress Agenc
Assets (/0
0
1%(00%00
0
<. 1ssuance of
chec$ for cash
a"vance on salaries
an" wages
,ash 4isbursing
Officers
,ash in 0an$ .,,A
107
110
170%000
170%000
r. .i<ui"ation
of salaries an"
wages
Salaries an" Jages
,asual&,ontractual 60/ (00%000
Jithhol"ing Ta;es
9aable =10 /0%000
,ash 4isbursing
Officers 107 170%000
s. 8emittance of
withhol"ing ta;
Jithhol"ing Ta;es
9aable =10 /0%000
,ash in 0an$ .,,A 110 /0%000
t. 1ssuance of office
su!!lies
Office Su!!lies
@;!enses 6=5 =0%000
Office Su!!lies
1nventor 1=5 =0%000
En/ o2 Year
u. ,losing of
e;!enses to
9roject @<uit
9roject @<uit
Salaries an" Jages
,asual&
,ontractual
B0(
60/
(=0%000
(00%000
Office Su!!lies
@;!enses 6=5 =0%000
'ro6ect
Com!letion
v. Transfer of
buil"ing an"
e<ui!ment to the
General >un" as
follows)
9roject @<uit
0uil"ing
1T @<ui!ment an"
Software
B0(
(0=
(1B
1%B00%00
0 1%(00%00
0
/00%000
$eneral '!nd
Boo-s1
Bu!l!$) =7? 1(=77(77
7
IT E>u!p0e$t a$
29
Acct
#
Co/
e
II#
III# $e5i
t Cre/it
So"t3are =19 :77(777
I$'e#te E>u!t+ 9:4 1(977(77
7
+t end o year1 I$'e#te E>u!t+ 9:4 1(977(77
7
2o'er$0e$t E>u!t+ 971 1(977(77
7
Ca!ter .# S'ECIAL ACCOUNTS
Sec# ")*# S!ecial Acco+nts in te General F+n/# - .ocal government units
shall maintain s!ecial accounts in the General >un" for !ublic utilities an" other
economic enter!rises% loans% interests% bon" issues% an" other contributions for
s!ecific !ur!oses# an" "evelo!ment !rojects fun"e" from the share of the local
government concerne" from the internal revenue collections an" "evelo!ment of
national wealth an" such other s!ecial accounts which ma be create" b law or
or"inance.
Sec# ").# O56ectives 2or te Maintenance o2 S!ecial Acco+nts# - Accounting
!roce"ures for the o!eration of the s!ecial accounts are a"o!te" in or"er to)
a. 4etermine whether the income generate" b the !ublic utilities or
economic enter!rises are sufficient to meet their res!ective o!erating
costs.
b. 9rovi"e a"e<uate information as to the assets% liabilities an" e<uit
of each s!ecial account.
Sec# ")1# S!ecial Acco+nts S+5si/iar0 Le/,er# - S!ecial accounts shall be
maintaine" through the use of com!lete subsi"iar le"ger. 1n case the local
government unit maintains a number of the same economic enter!rise% each shall
have its own set of subsi"iar le"ger -e.g. 6 mar$ets 3 6 subsi"iar le"gers for the
mar$et*.
Sec# ")3# S+5>co/es 2or te S!ecial Acco+nts# - The following shall be the sub3
co"es for the s!ecial accounts)
SPECIAL ACCOUNT SUB;CO1E
General >un" 9ro!er 01
Mar$et O!eration 0(
Slaughterhouse O!eration 0/
Jaterwor$s Sstem 0=
SPECIAL ACCOUNT SUB;CO1E
@lectric% .ight an" 9ower Sstem 0B
Tele!hone Sstem 0C
Toll 8oa"s% 0ri"ges an" >erries 07
Trans!ortation Sstem 06
Eos!ital 05
School 10
S!orts ,enter 11
8ecreational ,enter 1(
Eousing 9rojects 1/
,onvention&,onference ,enter 1=
9ar$ing S!ace 1B
1ce 9lant 1C
,emeter 17
(0I 4evelo!ment >un" 16
60I Share from @nerg Sources 15
Share from 4evelo!ment of National Jealth (0
.oans (1
1nterests ((
0on" 1ssues (/
Sec# ")4# 'ro2it 2rom O!eration# - 9rofits or income "erive" from the o!eration
of !ublic utilities an" other economic enter!rises% after "e"uction of the cost of
im!rovement% re!air an" other relate" e;!enses of the !ublic utilit or economic
enter!rises concerne"% shall first be a!!lie" for the return of the a"vances or loans
ma"e therefor% an e;cess shall form !art of the general fun" of the local
government unit concerne".
Sec# "")# Re!ortin,# - At the en" of the ear% !ost3closing trial balance
shall be !re!are" for each s!ecial account. Also% the following financial statements
shall be !re!are")
a. 0alance Sheet
b. Statement of 1ncome an" @;!enses
These re!orts shall form !art of the sche"ules of the General >un" trial balance.
Sec# """# 'ro>2orma Acco+ntin, Entries#
Transaction
+cct.
"ode %e&it "redit
a. 8ecei!t of Share from 18, for 9100%000.
,ash in 0an$ .,,A 110 100%00
0
,ash in 0an$ .,,A -01*
960%000
-16* (0%000
Share from 1nternal 8evenue ,ollections
-18,*
7=C 100%000
30
Transaction
+cct.
"ode %e&it "redit
Share from 18, -01*
60%000
-16* (0%000
b. 8ecei!t of collections for 91=6%B00.
4istribution)
89T3 0asic B6%B00 -net of 10I "iscount*
Mar$et fees =0%000
0us. Ta; B0%000
,ash in Treasur 101 1=6%B0
0
,ash in Treasur -01*
106%B00
,ash in Treasur -0(*
=0%000
4iscount on 89T 5/7 C%B0
0
4iscount on 89T -01*
C%B00
89T 8eceivable 1(= CB%000
89T 8eceivable -01*
CB%000
0usiness Ta;es N .icenses 7(/ B0%000
0usiness Ta;es N .icenses -01*
B0%000
8ecei!ts from Mar$ets 76/ =0%000
8ecei!ts from Mar$ets -0(*
=0%000
c. 8e<uisition of Office Su!!lies for the
following)
O!eration of Mar$et
910%000
No accounting entr
9rograms un"er the (0I 4ev. >un"
(%000
Office of the Treasurer
6%000
". Obligation of the re<ueste" su!!lies. @ntr in the 8AAOMO

e. 9ament of Office Su!!lies for the
following)
O!eration of Mar$et
910%000
9rograms un"er the (0I 4ev. >un"
(%000
6%000
Total
(0%000
Transaction
+cct.
"ode %e&it "redit
.ess) Jithhol"ing ta;
1%000
Net
15%000

Office Su!!lies 1nventor 1=5

(0%00
0
Office Su!!lies 1nventor -01* 6%000
Office Su!!lies 1nventor -0(*
10%000
Office Su!!lies 1nventor -16*
(%000
,ash in 0an$ .,,A 110 15%000
,ash in 0an$ 3 .,,A -01*
7%C00
1F. ,ash in 0an$ 3 .,,A -0(*
5%B00
,ash in 0an$ 3 .,,A -16*
1%500
Jithhol"ing Ta;es 9aable =10 1%000
Jithhol"ing Ta;es 9aable -01*
=00
Jithhol"ing Ta;es 9aable -0(*
B00
100
f. 8e!ort of +tili?ation of Office Su!!lies
O!eration of Mar$et (%000
/%000
(0I 4ev. >un"
1%000
Office Su!!lies @;!enses 6=5 C%00
0
Office Su!!lies @;!ense -01*
/%000
Office Su!!lies @;!ense -0(*
(%000
Office Su!!lies @;!ense -16*
1%000
Office Su!!lies 1nventor 1=5 C%000
/%000
Office Su!!lies 1nventor -0(*
(%000
1%000
31
Transaction
+cct.
"ode %e&it "redit
No accounting entr
g. 8e<uest for !rocurement of office
e<ui!ment
of the following offices.
Office of the Accountant B%000
Office of the Mar$et Master =%000
h. Obligation of the re<ueste" e<ui!ment @ntr in the 8AAO,O
i. 9ament of the !rocure" e<ui!ment)
Office of the Accountant
=%600
Office of the Mar$et Master
=%000
Gross
6%600
Jithhol"ing Ta;
==0
Net
6%/C0
Office @<ui!ment ((( 6%60
0
Office @<ui!ment -01*
=%600
Office @<ui!ment -0(*
=%000
Jithhol"ing Ta;es 9aable =10 ==0
(=0
Jithhol"ing Ta;es 9aable -0(*
(00
,ash in 0an$ .,,A 110 6%/C0
,ash in 0an$ .,,A -01* =%BC0
,ash in 0an$ .,,A -0(* /%600
j. Obligation of Subsi" to the O!eration of
the
Mar$et from the G> 9ro!er for 91(%000
@ntr in the 8AAOMO
$. Transfer of the fun"s for 91(%000.
Transaction
+cct.
"ode %e&it "redit
Subsi" to S!ecial Accounts 656 1(%00
0
Subsi" to S!ecial Accounts -01*
1(%000
,ash in 0an$ .,,A 110 1(%000
,ash in 0an$ .,,A -01*
1(%000
l. 8ecei!t of the transferre" fun"s.
,ash in 0an$ .,,A 110 1(%0
00
,ash in 0an$ .,,A -0(*
1(%000
Subsi" from S!ecial Accounts C0C 1(%000
Subsi" from S!ecial Accounts -0(*
1(%000
Ca!ter 1# SU''LIES OR 'RO'ERTY
A,,O+NT1NG >O8 S+99.1@S O8 98O9@8TL
Sec# ""%# $e2inition o2 S+!!lies or 'ro!ert0# - Su!!lies or !ro!ert inclu"e
everthing% e;ce!t real !ro!ert% which ma be nee"e" in the transaction of !ublic
business or in the !ursuit of an un"erta$ing% !roject or activit% whether in the
nature of e<ui!ment% furniture% stationer% materials for construction or !ersonal
!ro!ert of an sort% inclu"ing non3!ersonal or contractual services such as the
re!air an" maintenance of e<ui!ment an" furniture% as well as truc$ing% hauling%
janitorial% securit% an" relate" services. ( Sec, :9<c o" the L2C)
Sec# ""(# Classi2ication o2 S+!!lies or 'ro!ert0# - Su!!lies or !ro!ert shall
have the following classification)
a. Expe$able #uppl!e# or propert+ referring to articles which are
normall consume" in use within one ear or converte" in the !rocess
of manufacture or construction% or those having a life e;!ectanc of
more than one ear but which shall have "ecrease" substantiall in
value after being !ut to use for onl one ear. @;am!les are
stationer% fuel% s!are !arts. @;!en"able su!!lies forms !art of the
maintenance an" o!erating e;!enses of the .G+.
b. No$;expe$able #uppl!e# or propert+ referring to articles which are
not consume" in use an" or"inaril retain their original i"entit "uring
the !erio" of use% whose serviceable life is more than one ear an"
which a"" to the assets of the government. @;am!les are furniture%
fi;tures% trans!ort e<ui!ment an" other e<ui!ment. Non3e;!en"able
su!!lies or !ro!ert are !ro!er charges to ca!ital outla of the .G+.
32
c. No$;per#o$al #er'!ce# inclu"es% but is not limite" to re!airing%
cleaning% re"ecorating% an" furnishing of necessar re!air !arts or
other su!!lies as !art of the services !erforme". @;am!les are
contractual services li$e truc$ing% hauling% janitorial% securit an"
relate" services. Non3!ersonal services are !ro!er charges to
maintenance an" o!erating e;!enses of the .G+.
Sec# ""9# 'er!et+al Inventor0 Meto/# - 9urchase of su!!lies an" materials for
stoc$% regar"less of whether or not the are consume" within the accounting !erio"%
shall be recor"e" as inventor following the !er!etual inventor metho". +n"er the
!er!etual inventor metho"% an inventor control account is maintaine" in the
General .e"ger on a current basis. 1n a""ition% "etaile" inventor recor"s are
maintaine" for each inventor item.
8egular !urchases shall be course" thru the inventor account an"
issuances thereof shall be recor"e" as the ta$e !lace% e;ce!t those !urchase" out
of the !ett cash fun" which shall be for imme"iate use an" for stoc$ in which case
shall be charge" imme"iatel to the a!!ro!riate e;!ense accounts.
The ,hief Accountant shall maintain the !er!etual inventor recor"s
com!rising of Su!!lies .e"ger ,ar"s -S.,* for each commo"it&stoc$% 9ro!ert% 9lant
an" @<ui!ment .e"ger ,ar" -99@.,* for each categor of !lant% !ro!ert an"
e<ui!ment an" Jor$% Other Animals an" 0ree"ing Stoc$s .e"ger ,ar" -JOA0S.,*
for each t!e of livestoc$. Such le"ger car"s shall contain the "etails of the
!ro!ert% !lant an" e<ui!ment an" livestoc$ account in the inventor control
account in the general le"ger.
The General Services Officer or the Munici!al Treasurer% as the case
mabe shall li$ewise maintain stoc$ car"s an" !ro!ert car"s for su!!lies# !ro!ert%
!lant an" e<ui!ment# an" wor$ animals in their custo" to account for the recei!t
an" "is!osition of the same. The balance !er stoc$ car"&!ro!ert car"s shoul"
alwas reconcile with the le"ger car"s of the accounting unit. The shoul" also
reconcile with other !ro!ert recor"s li$e Ac$nowle"gement 8ecei!t for @<ui!ment
-A8@*.
Sec# ""*# Movin, Avera,e Meto/# - The moving average metho" of costing
shall be use" for costing inventories. This is a metho" of calculating cost of
inventor on the basis of weighte" average on the "ate of issue. The ,hief
Accountant shall com!ute the inventor cost monthl using the metho". 1llustrative
calculation of inventor using this metho" is as follows)
&all !en
Re2erence $ate Receive/ Iss+e/ &alance
&e,#
&alance
!er act+al
inventor0
?an#
"
%)) D
'") '%=))
)
$eliver0
Recei!t7
Invoice
No#
?an
"%
9))
D "% 9=3)
)
.)) D
""#(( .=3)
)
RIS No# ?an#
".
*))
D
""#(
(
*=..
*
")) D
""#(* "="(
*
$eliver0 ?an# ()) 9)) D
Recei!t7
Invoice
No#
%. D "" (=(
))
""#)4 9=9(
*
RIS No# ?an#
%4
%))
D
""#)
4
%=%"
3
%))
D""#)
4
%=%"
1
$eliver0
Recei!t7
Invoice
No#
?an#
()
"))
D "%
"=%)
)
()) D
""#(4

(=9"
1
-On 'an. 1(% the new unit cost of 911.// was foun" b "ivi"ing 9C%600% the
total cost% b C00% the number of units at han". Then on 'an. 1C% the !eso balance%
91%1/B re!resente" the !revious balance 9C%600 less 9B%CCB% the cost assigne" to
the B00 units issue" on this "ate. New unit costs were calculate" on 'an. (C an" /0
when a""itional units were ac<uire". *
Sec# "".# Re;+isition 'roce/+res# - -a* Re>u!re0e$t o" Re>u!#!t!o$ 3 An or"er
for su!!lies shall be fille" b the !rovincial general services officer% the cit general
services officer% or the munici!al treasurer% as the case mabe% for an office or
"e!artment of the .G+ concerne" onl u!on written re<uisition.
-b* -or0# to be u#e 3 8e<uisitions shall be accom!lishe" using the
following forms)
-1* 8e<uisition 1ssue Sli! -81S* 3 for su!!lies carrie" in stoc$#
an"
-(* 9urchase 8e<uest -98* 3 for su!!lies not carrie" in stoc$.
-c* Preparat!o$ o" Re>u!#!t!o$ 3 At the beginning of the ear% the Office of
the General Services Officer -GSO* or the Munici!al Treasurer% as the case mabe%
shall !re!are a 98 for su!!lies an" materials nee"e" for the <uarter base" on the
a!!rove" Annual 9rocurement 9rogram. Subse<uent re<uisition from stoc$ shall be
ma"e b the hea" of office or "e!artment nee"ing the su!!lies. A Su!!lies
Availabilit 1n<uir -SA1* shall be use" to in<uire as to availabilit of su!!lies nee"e"
from the Office of the ,hief Accountant. 1f su!!lies are available% the 81S shall be
!re!are" an" submitte" to the GSO&.ocal Treasurer for the issuance of su!!lies. 1f
the su!!lies nee"e" are not available from stoc$% a 98 shall be !re!are".
The hea" of office or "e!artment nee"ing the su!!lies shall certif as to
their necessit for official use an" shall s!ecif the !roject or activit where the
su!!lies or !ro!ert are to be use".
-"* Cert!"!cat!o$ o$ Allot0e$t a$ Obl!)at!o$ Sl!p (ALOBS) 3 @ver 98 must
be accom!anie" b an A.O0S showing the certification of the local bu"get officer
an" the local accountant% that an a!!ro!riation therefore e;ists# an" that the
estimate" amount of such e;!en"iture has been obligate". The .ocal Treasurer shall
certif as to cash availabilit in the !urchase re<uest.
-e* Appro'al o" Re>u!#!t!o$# 3 A!!roval of re<uisitions b the hea" of office
or "e!artment concerne" who has a"ministrative control of the a!!ro!riation
against which the !ro!ose" e;!en"iture is chargeable is "eeme" sufficient% e;ce!t
in case of re<uisition for su!!lies to be carrie" in stoc$ which shall be a!!rove" b
the local chief concerne".
33
Sec# ""1# Iss+ance o2 '+rcase Or/ers or Contract# - 1mme"iatel after the
.G+ has !erforme" all the re<uire" !roce"ures a"o!ting a !articular mo"e of
!rocurement% a !urchase&letter or"er or contract shall be issue".
The "ate when the !urchase&letter or"er was receive" b the su!!lier or contractor
shall be in"icate" clearl.
The !urchase or"er or contract shall be release" onl to% an" signe" for b% the
awar"ee or his "ul authori?e" re!resentative.
Sec# ""3# Acce!tance an/ Ins!ection o2 '+rcases# - 4eliveries of items
!urchase" b the local government units shall be acce!te" first b the general
services officer or munici!al treasurer as the case mabe before ins!ection.
1ns!ection of !urchases shall be ma"e b the authori?e" ins!ector&s for conformit
with s!ecification in the or"er. Acce!tance an" ins!ection shall be ma"e using the
Acce!tance an" 1ns!ection 8e!ort -A18*.
Sec# ""4# 'ro!ert0 Recor/s to 5e Maintaine/# - The General Services Officer
or the .ocal Treasurer% as the case mabe% shall number each t!e of su!!lies an"
maintain Stoc$ ,ar"s !er stoc$ number. Ee shall li$ewise maintain 9ro!ert ,ar"s
!er categor of !ro!ert% !lant an" e<ui!ment.
4eliveries of su!!lies or !ro!ert shall be imme"iatel recor"e" in the
!ro!ert recor"s on the basis of the A18 an" other su!!orting "ocuments. The A18
an" other su!!orting "ocuments shall be forwar"e" to the ,hief Accountant for the
!re!aration of the 4F an" recor"ing of "eliveries in the a!!ro!riate le"ger car"s.
Sec# "%)# Recor/in, o2 $eliveries o2 S+!!lies or 'ro!ert0 in te &oo8s o2
Acco+nts# - The ,hief Accountant shall maintain Su!!lies .e"ger ,ar"s !er stoc$
number# 9ro!ert% 9lant an" @<ui!ment .e"ger ,ar"s for each categor of assets#
an" 8eal 9ro!ert .e"ger ,ar"s for lan".
+!on recei!t of the A18 an" other su!!orting "ocuments% the ,hief
Accountant shall recor" the "eliveries in the a!!ro!riate le"ger car"s. +!on
com!letion of the "isbursement !rocess !ertaining thereto the ,hief Accountant
shall !re!are the '@F ta$ing u! the in the boo$s the !rocurement ma"e. Thereafter%
the ,hief Accountant shall reconcile the '@F with the a!!ro!riate le"ger car"s.
Sec# "%"# Re!ortin, on Iss+ance o2 S+!!lies7materials# - The General
Services Officer or the .ocal Treasurer% as the case mabe% shall consoli"ate wee$l
the 81S for which su!!lies an" materials were issue" using the Summar of Su!!lies
an" Materials 1ssue" -SSM1*. The SSM1 together with the original co! of the 81S
shall be submitte" to the ,hief Accountant% who shall com!ute cost of su!!lies
issue" an" en"ing inventor using the moving average metho". 0ase" on the SSM1%
a '@F shall be !re!are" to recor" the e;!en"itures using a!!ro!riate e;!en"iture
accounts.
Sec# "%%# Inventor0 'rocess# - The following is the general !rocess to be followe"
in the control of inventor)
P R O C E S S PERSON / UNIT RESPONSIBLE
a. 9re!are 9urchase 8e<uest
-98* for su!!lies an"
materials nee"e" for the
<uarter base" on the
Office of the General Services Officer
-GSO* or the Munici!al Treasurer as the
case mabe.
a!!rove" annual
!rocurement !rogram% at
the beginning of the ear
an" of each subse<uent
<uarters.
b. 9re!are A.O0S covering the
re<uisition un"er the 98.
Office of the GSO or the Munici!al
Treasurer or the office authori?e" to
!re!are the same.
c. A!!rove A.O0S an" the 98. The 0u"get Officer an" the ,hief
Accountant% for the A.O0S# an" the .ocal
,hief @;ecutive an" the .ocal Treasurer%
for the 98.

". 9re!are 9urchase Or"er. GSO&.ocal Treasurer
e. A!!rove 9urchase Or"er. .ocal ,hief @;ecutive
f. 8eceive "elivere" items%
!re!are Acce!tance an"
1ns!ection 8e!ort -A18*
an" signs acce!tance
!ortion.
GSO&.ocal Treasurer
g. 1ns!ect items% an" signs
ins!ection !ortion of the A18.
9ro!ert +nit&.G+ 1ns!ector
h. 8ecor" "elivere" items in
the stoc$&!ro!ert car"s.
9re!are 4isbursement
Foucher -4F*% sign bo; A an"
forwar" the same with the
"eliver recei!t&invoice&
a!!ro!riate "ocuments to
Accounting +nit.

GSO&.ocal Treasurer
i. 8ecor" "elivere" items in
Su!!l .e"ger ,ar"&9ro!ert%
9lant an" @<ui!ment .e"ger
,ar"&Jor$% Other Animals an"
0ree"ing Stoc$s .e"ger ,ar"%
on the basis of the A18.
9rocess 4F an" follow
"isbursement !rocess.
9re!are '@F. 8econcile '@F
with the entries in the le"ger
car"s recor"e" on the basis of
Accounting +nit
34
the A18.
j. 9re!are Stoc$ Availabilit
1n<uir -SA1* an" forwar" to
Accounting +nit.
8e<uisitioning +nit
$. Ferif recor"s% a"vise
re<uisitioning unit.
Accounting +nit
l. 9re!are 8e<uisition an"
1ssue Sli! -81S* an" forwar" to
9ro!ert &Su!!l +nit.
8e<uisitioning +nit
m. 8elease
su!!lies&e<ui!ment an" recor"
issuance in the stoc$
car"s&!ro!ert car"s.
GSO&.ocal Treasurer
n. ,onsoli"ate 81S for which
su!!lies an" materials were
issue" an" !re!are the
Summar of Su!!lies an"
Materials 1ssue" -SSM1* an"
forwar" to Accounting +nit.
GSO&.ocal Treasurer
o. 9re!are '@F on the basis
of SSM1% an" recor"
with"rawals in Su!!l .e"ger
,ar"s -S.,*.

Accounting +nit
Sec# "%(# Recei!ts o2 Iss+ance# - All issuances of su!!lies or !ro!ert shall be
!ro!erl recei!te" using the forms !rescribe" un"er a!!licable rules an" regulations
on su!!l an" !ro!ert management in local government units. >or transfer of
e<ui!ment% the Ac$nowle"gement 8ecei!t for @<ui!ment -A8@* shall however be
use".
Sec# "%9# Inventor0 o2 S+!!lies or 'ro!ert0# - The local chief e;ecutive shall
re<uire !erio"ic !hsical inventor of su!!lies or !ro!ert. 9hsical count of
inventor items b t!e shall be con"ucte" semestrall an" re!orte" in the 8e!ort
of the 9hsical ,ount of 1nventories -89,1*. This shall be submitte" to the Au"itor
concerne" not later than 'ul /1 an" 'anuar /1 of each ear for the first an" secon"
semesters% res!ectivel.
9hsical count of !ro!ert% !lant% an" e<ui!ment b t!e shall be ma"e
annuall an" re!orte" on the 8e!ort on the 9hsical ,ount of 9ro!ert% 9lant an"
@<ui!ment -89,99@*. This shall be submitte" to the Au"itor concerne" not later than
'anuar /1 of each ear.
Sec# "%*# $is!osal o2 S+!!lies or 'ro!ert0# > 4is!osal !roce"ures shall be in
accor"ance with a!!licable rules an" regulations on su!!l an" !ro!ert
management in local government units. The Jaste Materials 8e!ort -JM8* an" the
1nventor an" 1ns!ection 8e!ort of +nserviceable 9ro!ert -118+9* shall be use" .
Sec# "%.# 'ro-Forma Acco+ntin, Entries# - The following are the !ro3forma
accounting entries for su!!lies or !ro!ert)
Partic!lars +cco!nt Title
Acct
#
Co/
e $e5it Cre/it
"# S+!!lies an/ Materials
1.1 S!are !arts
3
1ssuance of
98 for s!are
!arts
8ecor" "eliver of
items an" charge
invoice% if
!rocurement is
on cre"it
9ament of
1nvoice
1f
9rocurement
is on ,ash
S!are
!arts worth 9B0
use" for re!airs of
motor vehicles.
-enter Obligation in
the 8AAOMO3 9100*
S!are 9arts
1nventor
Accounts 9aable
Accounts 9aable
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
S!are 9arts
1nventor
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
Motor Fehicles
Maintenance
S!are 9arts
1nventor
1BB
=01
=01
=10
110
1BB
=10
110
676
1BB

100

100

100

B0
100

(0
60

(0
60

B0
1.( Office
Su!!lies 3
-@nter obligation in
35
Acct
#
Co/
e $e5it Cre/it
1ssuance
of 98 for office
su!!lies 9100.
8ecor"
"eliver of items
an" charge
invoice% if
!rocurement is on
cre"it.
9ament of
,harge
1nvoice
1f
!rocurement
is on cash
basis
Jith"rawal of
Office
Su!!lies for
office use.
the 8AAOMO39100*
Office Su!!lies
1nventor
Accounts 9aable
Accounts 9aable
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A

Office Su!!lies
1nventor
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A

Office Su!!lies
@;!enses
Office Su!!lies
1nventor
1=5
=01
=01
=10
110
1=5
=10
110
6=5
1=5

100

100

100

100

100

(0
60

(0
60

100
1./ Accountable
>orms 3
1ssuance
of 98 for
accountable forms
9rocurement
on a cash
basis
Jith"raw
al of office
su!!lies
the 8AAOMO
9100.00*
Accountable >orms
1nventor
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
Accountable >orms
@;!enses
Accountable >orms
1nventor
1=6
=10
110
6=6
1=6
100
100
(0
60
100
%# E;+i!ment
Acct
#
Co/
e $e5it Cre/it
(.1 Office
@<ui!ment 3
1ssuance of
98 for Office
@<ui!ment
39(0%000
8ecor"
charge
invoice an"
4eliver of
item.

9ament of
"elivere"
@<ui!ment
8AAO,O39(0%000*
Office @<ui!ment
Accounts 9aable
Accounts 9aable
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
(((
=01
=01
=10
110

(0%000
(0%0
00

(0%000

(%000
16%000
(.( 1ssuance of
98 for
>urniture an"
>i;ture 3
9(0%000
8ecor"
,harge
1nvoice an"
"eliver of
item
9ament of
"elivere"
furniture an"
fi;ture
-@nter Obligation in
8AAO,O39(0%000*
>urniture an"
>i;tures
Accounts 9aable
Accounts 9aable
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
((=
=01
=01
=10
110

(0%000

(0%000

(0%000

(%000
16%000
(# Non>'ersonal Services
/.1 Securit
Services 3
1ssuance of
contract for
securit
services 3
91(0%000
the 8AAOMO3
91(0%000*
Securit an"
'anitorial 6B6

10%000

36
Acct
#
Co/
e $e5it Cre/it
8ecei!t
of monthl
0illing3 910%000
9ament of
monthl
billing
Services
Accounts 9aable
Accounts 9aable
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A
=01
=01
=10
110

10%000
10%000

1%000
5%000

/.( 9lumbing
Services 3
Signing of
contract for
9lumbing
Services
91(0%000
8ecei!t of
monthl
billing
910%000

9ament of
Monthl
0illing
the 8AAOMO3
91(0%000*
General Services
Accounts 9aable
Accounts 9aable
Jithhol"ing Ta;es
9aable
,ash in 0an$ .,,A

6B7
=01
=01
=10
110

10%000
10%000

10%000

1%000
5%000

37

New Government Accounting System Manual

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

New Government Accounting System Manual

Încărcat de

Drepturi de autor:

Formate disponibile

THE NEW GOVERNMENT ACCOUNTING SYSTEM MANUAL

For Local Government Units

S-ar putea să vă placă și