Elinon, Mark Kevin B.

Gamatan, Crystalkeil Nikka N.

BSA - 22A1

GOVERNMENT ACCOUNTING
Accounting for Cash Overage/Shortage of Collecting Officer/Disbursing Officer

 Cash Overage discovered by the Auditor that cannot be satisfactory explained by the
Collecting/Disbursing Officer shall be forfeited in favor of the government and an
official receipt shall be issued by the Collecting Officer/Cashier. This shall be taken
up as Miscellaneous Income.
 Cash Shortage which is not restituted by the Collecting/Disbursing officer despite
demand of the Auditor shall be taken up as receivable from the Collecting
Officer/Disbursing Officer.

Other Receipts:

1. Tax Remittance Advice (TRA)

 Refers to serially – numbered document prescribed by the DBM that should
be used by the NGAs in the remittance of withheld taxes on funds coming
from DBM.
 Accomplished on – line which is called the Electronic TRA (eTRA) that shall
be supported with Summary of Taxes Withheld (STW).

2. Refund of Excess Cash Advances Granted to Officers and Employees

Cash advances may be classified into:

 Advances to officers and employees – for official travels;
 Advances for operating expenses – granted to regular disbursing officer for
operating expenses of operating/field units and foreign post not maintaining
complete set of books.
 Advances for payroll
 Advances to special disbursing officer (SDO) – for special/time – bound
undertakings to be liquidated within specific period.

Miscellaneous Transactions:

Responsibility, Accountability, and Liability over Government Funds and Property

RESPONSIBILITY

 It is the declared policy of the State that all resources of the government shall be
managed, expanded or utilized in accordance with laws and regulations, and
safeguard against loss or wastage through illegal or improper disposition, with a view
 to ensuring efficiency, economy, and effectiveness in the operations of the
government. The responsibility to take care that such policy is faithfully adhered to
rests directly with the chief or head of the government agency concerned.

ACCOUNTABILITY

 Every officer of any government agency whose duties permit or require the
possession or custody of government funds or property shall be accountable therefore
and the safekeeping thereof in conformity with the law.

LIABILITY

 Expenditures of government funds or uses of government properties in violation of

law or regulation shall be a personal liability of the employee or official found to be
directly responsible therefore.

 Receipt of Subsidy/Assistance from other NGAs, LGUs, GOCCs, and Other Funds
 Performance Bond/Security Deposits
 Refund of Overpayment of Expenses
 Collection Made on Behalf of Another Entity or Non – Government/Private
Organizations

Intra – Agency and Inter – Agency Fund Transfer

Intra – agency fund transfer

 These are cash received from central office/regional office/operating units of an entity
for the purpose of implementing specific projects.

Inter – agency fund transfer

 These are cash received from another entity for the purpose of implementing specific
projects.

Accounting for Cancelled Checks

 Checks may be cancelled when they become stale, voided or spoiled.

Accounting for Disallowances

 Disallowances shall be taken up in the book of accounts only when they become final
and executory.
 Cash settlement of disallowances shall be acknowledged through the issue of an
official receipt and reported by the Cashier in the Report of Collections and Deposits.

Reporting of Collections and Deposits

 At the close of business day, the Collecting Officers shall prepare the RCD for
submission to Accounting Office or Unit. The report list all the OR issued in
numerical sequence including cancelled ones.
 The RCD shall be supported by documentary evidence such as duplicate copies of
ORs and validated deposit slips.