193963008 Government Accounting
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Transcript of 193963008 Government Accounting
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Government accounting has been defined as follows:
Government accounting encompasses all part of the process of recording, collecting and disbursing of government resources, and the making of reports concerning any or all of those operations or about their result.
Government accounting encompasses the processes of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and distribution of government funds, and property and interpreting the results thereof.
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Presidential Decree (PD) No. 1445 which ordains and institutes a
government accounting code of the Philippines, enumerates the
fourfold objectives of government accounting as follows:
To produce information concerning past operations and present
condition.
To provide a basis for guidance for future operations.
To provide for control of the account of public entities and
officers in the receipt, disposition and utilization of funds and
property.
To report on the financial position and the results of operations
of the government agencies for the information of all persons
concerned.
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Section 2(1) The Commission on Audit (COA) shall have the power, authority and duty to examine, audit, and settle all accounts, pertaining to the revenue and receipts of, and expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the Government, or any of its subdivisions, agencies or instrumentalities, including government-owned or controlled corporations with original charters, and on a post-audit basis: (a) constitutional bodies, commission and offices that have been granted fiscal autonomy under this Constitutions; (b) autonomous state colleges and universities; (c) other government-owned or controlled corporations and their subsidiaries; and (d) such non-governmental entities receiving subsidy or equity, directly
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...or indirectly, from or through the Government, which are
required by law or the granting institution to submit to such
audit as a condition of subsidy or equity. However, where the
internal control system of the audited agencies is inadequate,
the Commission may adopt such measures, including
temporary or special pre-audit, as are necessary and
appropriate to correct the deficiencies. It shall keep the
general accounts of the Government and, for such period as
may be provided by law, preserve the vouchers and other
supporting papers pertaining thereto.
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(2) The Commission shall have exclusive authority, subject to
limitations in this Article, to define scope of its audit and
examination, establish the techniques and methods required
therefor, and promulgate accounting and auditing rules and
regulations, including those for the prevention and
disallowance of irregular, unnecessary, excessive,
extravagant, or unconscionable expenditure, or uses of
government funds and properties.
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Section 3. No law shall be passed exempting any entity of the
Government or its subsidiary in any guise whatever, or any
investment of public funds, from the jurisdiction of the
Commission on Audit.
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Section 4. The Commission on Audit shall submit to the
President and Congress, within the time fixed by law, an
annual report covering the financial condition and operation
of the Government, its subdivisions, agencies, and
instrumentalities, including government-owned or controlled
corporations, and non-governmental entities subject to its
audit, and recommend measurers necessary to improve their
effectiveness and efficiency. It shall submit such other reports
as may be required by law.
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The offices responsible for government accounting are the Commission on Audit (COA), the Department of Budget and Management (DBM). The DBM is charged with the design preparation and approval of accounting systems of government agencies per PD 1379 of 1976.
Bureau of Treasury. This is an operating bureau of the Department of Finance which is charged with receiving and keeping national funds, managing and controlling disbursements thereof and maintaining of financial transactions of all national government offices, agencies and instrumentalities.
Government Agencies. Each government agencies records its transactions subject to technical supervision of COA.
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Agency :
M O O E
Appropriations Appropriations Appropriations Appropriations
Balance Balance Balance BalanceAppropriations Allotments Appropriations Allotments Appropriations Allotments Appropriations Allotments
Capital Outlay Financial Expenses
DEPARTMENT OF BUDGET AND MANAGEMENT
REGISTRY OF APPROPRIATIONS AND ALLOTMENTS
Personal Services
Sheet No._________
P.P.A.___________
Date Ref.
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REGISTRY OF APPROPRIATIONS AND ALLOTMENTS
(RAPAL)
INSTRUCTIONS
1. This form shall be accomplished as follows:
a. Agency - name of the agency b. Sheet No. sheet number which shall be one series per year c. Program/Project/Activity (P.P.A.) - code for program/project/
activity of the agency per General Appropriations Act/Budget
documents
d. Date date of recording e. Reference numbers of the General Appropriations Act,
Agency Budget Matrix (ABM) and Special Allotment Release
Order (SARO)
f. Appropriations amount of appropriations approved for PS, MOOE, FE and CO
g. Allotments - amount of allotments releases per ABM/SARO h. Appropriations Balance running balance of appropriations
2. This Registry shall be maintained by the Department of Budget
and Management for each Department/Agency of the National
Government by Program, Project and Activity to ensure that
allotment releases are within the authorized appropriation.
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Department /Agency : Sheet No.:
DEPARTMENT OF BUDGET AND MANAGEMENT
NCADate Reference
REGISTRY OF ALLOTMENTS AND NOTICE OF CASH ALLOCATION (NCA) ISSUED
Allotments
Issued Issued
BalanceUnfunded Allotment
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REGISTRY OF ALLOTMENTS and NCA ISSUED (RANCAI)
INSTRUCTIONS
1. This form shall be accomplished as follows:
a. Department/Agency name of the Department/Agency b. Sheet No. sheet number which shall be one series per year c. Date date of the reference document d. Reference reference document such as JEV No., SARO
No., etc.
e. Allotments Issued amount of allotments issued per approved ABM/SARO
f. NCA Issued amount of Notice of Cash Allocation issued to the agency
g. Balance running balance of unfunded allotment
2. At the end of the year, it shall be totaled and ruled.
3. This form shall be used by the Department of Budget and Management for each Department/Agency of the National
Government to ensure that NCAs issued are covered by
allotments released to agencies.
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Sheet No.: ______
Date No. Ref. Date No.
Bureau of the Treasury
REGISTRY OF NOTICE OF CASH ALLOCATION AND
REPLENISHMENTS
Notice of
Allocation
Balance
Notice of Cash
Amount Amount
Journal Entry Voucher (JEV)
Replenishments
Cash Allocation
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REGISTRY OF NOTICE OF CASH ALLOCATION (NCA)
AND REPLENISHMENTS (RENREP)
INSTRUCTIONS
1. The Registry shall be filled up with the following information:
a. Sheet No. sheet number which shall be one series per year b. Notice of Cash Allocation (NCA)
Date date of the NCA issued by the DBM No.- number of the NCA Amount amount of the NCA
c. Replenishments Ref report received from the bank evidencing the payment of
checks negotiated
Journal Entry Voucher (JEV) 1. Date date of the JEV 2. No. - number of the JEV 3. Amount amount of replenishment made
d. Notice of Cash Allocation Balance balance of the NCA after deducting replenishment made.
2. The RENREP shall be maintained by the Bureau of the Treasury for the year.
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All government expenditures must be based on a budget.
Section 22, Article VII of the Constitution states:
The President shall submit to Congress within thirty days
from the opening of every regular session, as the basis of
the general appropriation bill, a budget of expenditures
and sources of financing, including receipts from existing
and proposed revenue measures.
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The national budget may therefore be defined as a
statement of the estimated receipts based on existing and
proposed revenue measures and of expenditures which
serves as the basis of the general appropriation bill. The
budget process consist of the following phases:
1. Preparation
2. Authorization
3. Execution
4. Accountability
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Budgetary priorities and activities are determined and
translated into budgetary estimates. The various
government agencies prepares their budget which in turn
are reviewed and collated at different department level and
finalized by the President. The national budget is
subsequently submitted to the legislature and serve as
basis in the preparation of the annual appropriation law.
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This phase involves the review of the budget by the
legislature and the formulation of an appropriation act in
accordance with the process specified in the constitution.
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This phase involves the conversion of the plan into reality.
The different department are informed of their allotment
and cash allocations based on the agency budget.
The different deparments and their sub-units see to it that
the expenditures are made based on plans and the revenue
producing agencies see to it that the budgeted figure is
reached.
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This phase involves the comparison of performance with
the predetermined plans. Expenditures and performance
are evaluated. Obligations incurred, personnel utilized and
work accomplishments are compared with the plans and
goals previously submitted by the agencies before the
finalization of the national budget. The DBM and the budget
units of the agencies decide on the budget information they
need such as work performance and staffing pattern.
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The COA performs its share in the control of government
operations as provided in PD 898 and the Constitution.
Accounting rules and regulations are issued and technical
supervision is exercised over agency accounting units so
that budget information needed can be immediately
secured.
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The different types of budgets that have been introduced in government accounting are enumerated below:
Line Item Budget. This is the simplest type of budget for its refers merely to a listing of the expenditures. The objectives of expenditures are divided into 23 classes ranging from personal services to loans.
Performance Budgeting. This method emphasizes on functions, activities and expected results. The objects of expenditures are classified into (a) personal services, (b) maintenances and operating expenses, (c) financial expenses and (d) capital outlays. This is due to (a) the constraints such as the difficulty in work measurement because many of the agency activities could not be quantitatively measured in a meaningful manner (b) the additional requirement for the manager to be skillful in management and cost accounting.
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Planning, Programming Budgeting System (PPBS). This was introduced in 1976 with the organization of NEDA, a superbody on development which gave emphasis on planning. Long-term budgeting, the use of economic tools of analysis such as cost-benefit analysis, cost/utility analysis and ranking of priorities were introduced.
Zero Base Budgeting (ZBB). This technique involves the planning for the current budget period with a zero starting point, that is, unused appropriation in the past are not brought forward to the current budget period. Its emphasis is on objectives, the results that these objectives seek to achieve and the estimated cost involved in their accomplishment.
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a. Modified Accrual Basis of Accounting. Expenses shall be
recognized when incurred and reported in the financial
statements in the period to which they relate. Income shall
be on accrual basis except for transactions where accrual
basis is impractical or when other methods are required by
law.
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b. One Fund Concept. This system adopt the one fund
concept. Separate fund accounting shall be done only when
specifically required by law or by a donor agency or when
otherwise necessitated by circumstances subject to prior
approval of the COA.
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c. Charts of Accounts and Account Code. A new chart of
accounts and coding structure with a three-digit account
numbering system shall be adopted.
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d. Books of Accounts. All national agencies shall maintain two
sets of books, namely, the regular agency (RA) books and
the national government (NG) books. The different books of
accounts being used under the manual method are given
below. When agency accounting is already computerized,
only the general journal and the ledgers will remain in use.
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Regular Agency (RA) Books. There are for the recording of the
receipt and utilization of Notice of Cash Allocation (NCA)
and other income/receipts which the agencies are
authorized to use and to deposit with Authorized
Government Depository Bank (AGDB) and the National
Treasury.
Journals
Cash Receipts Journal (CRJ)
Cash Disbursement Journal (CDJ)
Check Disbursement Journal (CkDJ)
General Journal (GJ)
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Ledgers
General Ledger (GL)
Subsidiary Ledger (SL) for:
Cash Liabilities
Receivables Income
Inventories Expenses
Investments
Property, Plant and Equipment
Construction in Progress
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Sheet No. :__________
JEV Account
No. Code Debit Credit
Amount
GENERAL JOURNAL
Agency
___________________________
Particulars PDate
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GENERAL JOURNAL (GJ)
INSTRUCTIONS A. This journal shall be accomplished as follows:
1. Agency - name of the agency 2. Month month covered by the journal 3. Sheet No. sheet number of the General Journal, which shall
be one series for each year
4. Date date of the Journal Entry Voucher (JEV) 5. JEV No. assigned JEV number 6. Particulars brief description of the transaction 7. Account Code account code used to record the transaction
8. P (Posting Reference) put a check "" mark to indicate completion of posting in the appropriate GL account
9. Amount Debit - amount debited corresponding to the account 10. Amount Credit amount credited corresponding to the
account
11. Amount Credit amount credited corresponding to the account
B. Only transaction not recorded in the Special Journals shall be recorded in the General Journal.
C. Entries to the journal shall be made only on the bases of duly approved JEVs. Said entries shall be posted individually to the
General Ledger.
D. A new sheet shall be started at the beginning of each month. E. Each sheet shall be footed and the totals carried forward to the next
sheet.
F. Succeeding sheet shall start with the total brought forward. G. At the end of the month, it shall be footed, balanced and ruled. H. The totals of the debit and credit columns must be equal. I. Every page shall be certified correct by the Chief Accountant/Head
of the Accounting Unit as follows:
CERTIFIED CORRECT:
______________________________
Signature
______________________________
Designation
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Agency
Account of
Office/Address GL
Contact Person/Number SL
SUBSIDIARY LEDGER
Amount
Balance
Account Code
Debit Credit
Ref.ParticularsDate
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SUBSIDIARY LEDGER (SL)
INSTRUCTIONS
A. This ledger shall be accomplished as follows:
1. Agency name of the agency 2. Account of/Office/Address/Contact Person - name of the
individual/company/agency and office address of debtor/creditor. In case of an agency/company, include the contact person and telephone number/e-mail address
3. GL Account Code - General Ledger Account Code as used in the journals
4. SL Account Code - Subsidiary Ledger Account Code as provided by the agency
5. Date date of the source documents (i.e. JEV , OR, etc.) 6. Particulars - other information or details pertaining to the
transaction 7. Ref. - reference document such as the Statement of
Account/Journal Entry Voucher/Official Receipt/Disbursement Voucher number, etc.
8. Debit Column amount being debited to the account 9. Credit Column amount being credited to the account. 10. Balance - the difference between the Debit and Credit
columns. Place parentheses in the amount with a negative balance.
B. Subsidiary Ledgers shall be kept for each control account in the General Ledger. At the end of each month, the totals of the
subsidiary ledger balances shall be reconciled with the corresponding
controlling account.
C. Every sheet shall be footed in pencil. The difference of the totals of Debit and Credit columns should tie-up with the running balance
column. These totals shall be carried forward to the next sheet.
Succeeding sheets start with the totals brought forward.
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National Government (NG) Books. These are for the recording
of income which the agencies are not authorized to use and
are required to be remitted to the National Treasury.
Cash Journal (CJ)
General Journal (GJ)
General Ledger (GL)
Subsidiary Ledger (SL)
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Date RCD No. JEV No. Name of Collecting Debit Credit
Officer 106 Acct. Code P Amount Acct. Code P Amount 106
C r e d i t D e b i t
R E M I T T A N C E
SUNDRY SUNDRY
CASH JOURNAL
C O L L E C T I O N S
Sheet No.: ______
Agency : __________________________
Month : ___________________________
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CASH JOURNAL (CJ)
INSTRUCTIONS A. This journal shall be accomplished as follows:
1. Agency - name of the agency 2. Month - month covered by the journal 3. Sheet No. - number of sheet of the journal, which shall be one
series for each year 4. Date - date of JEV 5. RCD No. Report of Collections and Deposits Number 6. JEV No. - assigned JEV number 7. Name of Collecting Officer - name of the Collecting Officer 8. Collections Debit Column - amount collected based on the
Official Receipt issued 9. Collections Credit Columns amount of income, receivables and
other recurring accounts collected based on the Official Receipt issued
10. Collections Sundry Account Code Column code of accounts credited for which no column has been provided
11. Collections Sundry P (Posting Reference) Column put a check
"" mark to indicate completion of posting in the appropriate GL account
12. Collection Sundry, Amount Column amount to be credited to the account
13. Remittance Debit Columns amount debited upon remittance of collections to the Bureau of the Treasury (BTr)
14. Remittance Sundry Account Code Column code of accounts debited for which no column has been provided
15. Remittance Sundry P (Posting Reference) Column put a check
"" mark to indicate completion of posting in the appropriate GL account
16. Remittance Sundry, Amount Column - amount to be debited to the account
17. Remittance Credit Column - amount deposited to the BTr as deduction to the account of the Collecting Officer
B. This journal shall be used to record cash receipts/collections which are required to be recorded in NG books.
C. The sundry columns shall be summarized/recapitulated and shall be shown below the totals using the format below:
Recapitulation:
D. A new sheet shall be started at the beginning of each month. Each sheet shall be footed and the totals carried forward to the
next sheet. The succeeding sheet shall start with the totals
brought forward.
E. At the end of the month, it shall be footed, balanced and ruled. The ruling shall be made on the line immediately after the last
entry.
F. Posting to the General Ledger (GL) shall be made directly from this journal. A check mark immediately underneath the total of
the special columns shall be made to indicate completion of
posting to the GL.
G. Every sheet shall be certified by the Chief Accountant/Head of Accounting Unit as follows:
CERTIFIED CORRECT:
Signature
Designation
Account Code
Debit
Credit
P
Amount
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d. Books of Accounts. All national agencies shall maintain two
sets of books, namely, the regular agency (RA) books and
the national government (NG) books. The different books of
accounts being used under the manual method are given
below. When agency accounting is already computerized,
only the general journal and the ledgers will remain in use.
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e. Financial Statements. The following statements shall be
prepared:
Statement of Financial Position
Statement of Government Equity
Statement of Income and Expenses
Statement of Cash Flows
Notes to Financial Statements
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f. Two-Money Column Trial Balance. The two-money column
trial balance showing the account balances shall be used.
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g. Allotment and Obligation. Obligation accounting is modified to
simplify procedures in the incurrence and liquidation of
obligations and the recording of the budgetary account
(allotments and obligations incurred and liquidated). Separate
registries shall be maintained to control the allotments and
obligations for each of the four classes of allotments, namely:
Registry of Allotments and Obligations Capital Outlay
(RAOCO)
Registry of Allotments and Obligations Maintenance and
Other Operating Expenses (RAOMO)
Registry of Allotments and Obligations Personal Services
(RAOPS)
Registry of Allotments and Obligations Financial Expenses
(RAOFE)
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P.P.A. : ______________
Sheet No.: ______________
Date Balance
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY (RAOCO)
___________________________
Agency
ReferenceAllotmentReceived
ObligationIncurred
Account Code
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REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY (RAOCO)
INSTRUCTIONS
A. This form shall be accomplished as follows:
1. Agency - name of the agency 2. P.P.A. - code for program/project/activity as shown in the
ABM/SARO
3. Sheet No. sheet number which shall be one series per year 3. Date date of the Allotment and Obligation Slip (ALOBS)
4. Reference ALOBS number 5. Account Code account code used in accordance with the
prescribed Chart of Accounts
6. Allotment Received - amount of allotment received based on the approved ALOBS supported by ABM/SARO.
7. Obligation Incurred - amount of obligation incurred based on the approved ALOBS supported by pertinent documents
8. Balance balance of available allotment
B. This Registry shall be maintained by the Budget Unit of agencies.
C. The RAOs shall be maintained by Program, Project and Activity for Capital Outlay.
D. Separate Registry shall be maintained for each of the following:
1. Allotment chargeable to Current Years appropriations 2. Allotment Chargeable to Prior Years Unalloted Continuing
Appropriations
3. Alloted Continuing Appropriations
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P.P.A. :__________
Sheet No. :__________
Date Reference Balance
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
MAINTENANCE AND OTHER OPERATING EXPENSES (RAOMO)
____________________________
Agency
Allotment Received
ObligationIncurred
Account Code
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REGISTRY OF ALLOTMENTS AND OBLIGATIONS
MAINTENANCE AND OTHER OPERATING EXPENSES (RAOMO)
INSTRUCTIONS
A. This form shall be accomplished as follows:
1. Agency - name of the agency 2. Program/Project/Activity (P.P.A.) - code for program/project/
activity as shown in the ABM/SARO.
3. Sheet No. sheet number which shall be one series per year 3. Date date of the Allotment and Obligation Slip (ALOBS)
4. Reference ALOBS number 5. Account Code account code used in accordance with the
prescribed Chart of Accounts
6. Allotment Received - amount of allotment received based on the approved ALOBS supported by ABM/SARO
7. Obligation Incurred - amount of obligation incurred based on the approved ALOBS supported by pertinent documents
8. Balance balance of available allotment
C. This Registry shall be maintained by the Budget Unit of agencies.
B. The RAOs shall be maintained by Program, Project and Activity for
Maintenance and Other Operating Expenses.
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P.P.A. :__________
Sheet No. :__________
Date Reference Balance
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
PERSONAL SERVICES (PS)
____________________________
Agency
Allotment Received
ObligationIncurred
Account Code
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REGISTRY OF ALLOTMENTS AND OBLIGATIONS
PERSONAL SERVICES (PS)
(RAOPS)
INSTRUCTIONS
A. This form shall be accomplished as follows:
1. Agency - name of the agency 2. Program/Project/Activity (P.P.A.) - code for program/project/
activity as shown in the ABM/SARO.
3. Sheet No. sheet number which shall be one series per year 3. Date date of the Allotment and Obligation Slip (ALOBS)
4. Reference ALOBS number 5. Account Code account code used in accordance with the
prescribed Chart of Accounts
6. Allotment Received - amount of allotment received based on the approved ALOBS supported by ABM/SARO
7. Obligation Incurred - amount of obligation incurred based on the approved ALOBS supported by pertinent documents
8. Balance balance of available allotment
B. This Registry shall be maintained by the Budget Unit of agencies.
C. The RAOs shall be maintained by Program, Project and Activity for
Personal Services.
D. Separate Registry shall be maintained for Overdraft/Obligations Incurred in Excess of Allotment.
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P.P.A. :__________
Sheet No. :__________
Date Reference Balance
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
FINANCIAL EXPENSES (RAOFE)
____________________________
Agency
Allotment Received
ObligationIncurred
Account Code
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REGISTRY OF ALLOTMENTS AND OBLIGATIONS
FINANCIAL EXPENSES
(RAOFE)
INSTRUCTIONS
A. This form shall be accomplished as follows:
1. Agency - name of the agency 2. Program/Project/Activity (P.P.A.) - code for program/project/
activity as shown in the ABM/SARO.
3. Sheet No. sheet number which shall be one series per year 3. Date date of the Allotment and Obligation Slip (ALOBS)
4. Reference ALOBS number 5. Account Code account code used in accordance with the
prescribed Chart of Accounts
6. Allotment Received - amount of allotment received based on the approved ALOBS supported by ABM/SARO
7. Obligation Incurred - amount of obligation incurred based on the approved ALOBS supported by pertinent documents
8. Balance balance of available allotment
B. This Registry shall be maintained by the Budget Unit of agencies.
C. The RAOs shall be maintained by Program, Project and Activity for
Financial Expenses.
D. Separate Registry shall be maintained for Overdraft/Obligations Incurred in Excess of Allotment.
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h. Notice of Cash Allocation (NCA). An agency records receipt
of NCA by debiting Cash-National Treasury, Modified
Disbursement System (NT, MDS) and the entry is as follows:
Cash-NT, MDS xxx
Subsidy Income from
National Government (SING) xxx
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i. Financial Expenses. Financial expenses such bank charges,
interest expenses, commitment charges and other related
expenses are classified separately from Maintenance and
Other Operating Expenses (MOOE).
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j. Perpetual Inventory of Supplies and Materials . Supplies and
materials purchased for inventory purpose is recorded using
the perpetual inventory system.
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k. Inventory Valuation. The moving average method is used in
determining the cost of ending inventory of supplies and
materials.
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l. Ledger Cards for Supplies and for Property, Plant and
Equipment. The Accounting Units of agencies as well as the
Property Offices maintain Supplies Ledger Cards / Stock
Cards (by stock number) and Property, Plant and Equipment
Ledger Cards (by their respective categories).
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Receipt Balance No. of Days to
Date Reference Qty. Qty. Office Qty. Consume
Issuance
STOCK CARD
_______________________________________________
Agency
Stock No.:
Re-order Point:
Description:Item:
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STOCK CARD (SC)
INSTRUCTIONS
A. This form shall be accomplished as follows:
1. Agency name of the agency 2. Item/Description name of the item and its description 3. Stock No. stock number assigned by the property personnel for
each kind of supplies
4. Reorder Point quantity of stocks which when reached signal the need to re-order the item
5. Date date of the source document 6. Reference reference document used as a basis in the recording
of the transactions such as the receipt/issuance of supplies
7. Receipt-Qty number of supplies received 8. IssuanceQty./Office number of supplies issued and to what
office/unit issued
9. Balance-Qty the difference between the receipt and issuance which shall be equal to the quantity of supplies on hand by the
Supply Officer
10. No. of Days to Consume estimated number of days for which the stock is to be consumed as determined by the Supply and
Property Unit based on the historical data.
B. The SC shall be maintained by the Supply and Property Unit for each item of supplies to record all receipts and issuances.
C. Transactions shall be posted promptly from source documents.
D. The physical inventory of supplies shall be reconciled every six months with the stock cards and any discrepancy/ies shall be
immediately verified and adjusted.
E. The balance per stock card shall be reconciled regularly with the stock ledger card maintained by the Accounting Unit.
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Receipt Balance
Date Reference Qty. Qty. Qty.
Transfers/ Disposal
Office/Officer
PROPERTY CARD
_______________________________________________
Agency
Property Number:
Description:
Property, Plant and Equipment:
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PROPERTY CARD (PC)
INSTRUCTIONS
A. This ledger shall be accomplished as follows:
1. Agency name of the agency 2. Property, Plant and Equipment type of fixed asset
(i.e. Xerox machine, filing cabinet, etc.)
3. Description description of the property, plant and equipment (i.e. brand, size, color, serial no., etc.)
4. Property Number assigned property number by the Supply and Property Unit
5. Date date of acquisition/transfer 6. Reference reference document used as a basis in
recording the receipt or issuance of property, plant and
equipment
7. Receipt-Qty quantity of property, plant and equipment received based on source documents
8. Transfer/Disposal-Qty quantity of property, plant and equipment transferred to other NGAs or disposed, issued,
etc.
9. Balance-Qty difference between the quantity of the property, plant and equipment on hand less the transfers,
disposed or issued if any
B. The PC shall be kept for each class of property, plant and equipment to record the description, acquisition,
transfer/disposal and other information about the asset.
C. Transactions shall be posted promptly from source documents. The Supply and Property Unit shall maintain this card.
D. The physical inventory of the property, plant and equipment shall be reconciled with the property cards every year and any
discrepancies should be immediately verified and adjusted.
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Transfers/
Date Reference Qty. Unit Cost Total Cost Adjustment Balance
R e c e i p t Accumulated
PROPERTY, PLANT AND EQUIPMENT LEDGER CARD
_______________________________________________
Depreciation
Agency
Account Code:
Est. Useful Life:
Description:Rate of Depreciation:
Propery, Plant and Equipment:
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PROPERTY, PLANT AND EQUIPMENT LEDGER CARD
(PPELC)
INSTRUCTIONS
A. This ledger shall be accomplished as follows:
1. Agency name of the agency 2. Property, Plant and Equipment type of property, plant
and equipment (i.e. Xerox machine, filing cabinet, etc.) 3. Description description of the assets (i.e. brand, size,
color, etc.) 4. Account Code account code as provided in the Chart of
Accounts 5. Estimated Useful Life estimated useful life of Property,
Plant and Equipment as determined by the Commission on Audit
6. Rate of Depreciation rate of depreciation per month to be recorded in the books of accounts starting on the 2
nd month
following the date of acquisition/delivery. It shall be computed using the straight-line method of depreciation
7. Date date of the source document. 8. Reference reference documents used as the bases in
recording the transactions such as JEV 9. Receipt-Qty/Unit Cost/Total Cost the quantity received,
the unit cost and the total cost of the property, plant and equipment
10. Accumulated Depreciation the amount of depreciation charged to the property, plant and equipment.
11. Transfer/Adjustment the cost of the asset transferred to other NGAs or disposed/adjusted
12. Balance the difference between the total cost of the asset less the accumulated depreciation and transfers, if any
B. The PPELC shall be kept by the Accounting Unit for each class of asset to record promptly the acquisition, description, custody,
estimated life, depreciation, disposal and other information about the
asset.
C. The physical inventory of the asset shall be reconciled with the property, plant and equipment ledger cards and the control accounts
and any discrepancies shall be immediately verified and adjusted.
-
Description:
Issuance
Unit Total Unit Total No. of Days
Date Reference Qty. Cost Cost Qty. Qty. Cost Cost to Consume
R e c e i p t B a l a n c e
SUPPLIES LEDGER CARD
_______________________________________________
Item:
Agency
Stock No.:
Re-order Point:
-
SUPPLIES LEDGER CARDS (SLC)
INSTRUCTIONS
A. This ledger shall be accomplished as follows:
1. Agency name of the agency 2. Item/Description name of the item and its description 3. Stock No. stock number assigned by the property personnel
for each kind of supplies 4. Reorder Point quantity of stocks which when reached
signal the need of re-order of the item 5. Date date of the JEV/RIS 6. Reference reference documents used as a basis in the
recording of the transactions (i.e. JEV for receipt and RIS for issuance, etc.)
7. Receipt-Qty/Unit Cost/Total Cost quantity, unit cost and total cost of the supplies received
8. Issuance quantity of supplies issued 9. Balance-Qty difference between the receipt and issuance,
which shall be equal to the quantity of supplies on hand at the Supply and Property Unit
10. Balance-Unit Cost unit cost of the items based on moving average method
11. Balance-Total Cost total cost of items on hand/stock 12. No. of Days to Consume estimated number of days for
which the stock would be consumed as determined by the Supply and Property Unit based on the previous records
B. The SLC shall be maintained by the Accounting Unit for each type
of supplies to record all receipts and issuances.
C. Transactions shall be posted promptly from source documents.
D. The semestral physical inventory of supplies shall be reconciled with the supplies ledger cards and controlling accounts and any
discrepancy/ies shall be immediately verified and adjusted.
-
m. Construction Theory. This is applied on assets under
construction for costing purposes. Bonus paid to
contractors for early completion is added to the projects
total cost; liquidated damages charged and paid for by the
contractors are deduction. Any related expenses incurred
during the construction of the project, such as taxes,
interest, license fees, permit fees, clearance fees, etc. are
capitalized; those incurred after the construction are
treated as operating costs.
-
n. Registry of Public Infrastructure / Registry of Reforestation
Projects. The corresponding registry is to be maintained by
agencies that construct public properties / infrastructure,
such as roads, bridges, waterways, railways, plazas,
monuments, etc. and by those that invest in reforestation
projects. (Public properties/infrastructure are fixed assets
for use of the general public).
A Schedule of Public Infrastructure/Reforestation Projects
is prepared at year-end and included in the Notes to
Financial Statements.
-
Date Ref. Description Location Amount
REGISTRY OF PUBLIC INFRASTRUCTURES
Sheet No. :_______
Name of Public Intrastructure
Agency
-
REGISTRY OF PUBLIC INFRASTRUCTURES
(RPI)
INSTRUCTIONS
A. This form shall be accomplished as follows:
1. Agency name of the agency 2. Name of Public Infrastructures name of public
infrastructure classified as Highways, Roads, Bridges, Sea Walls, etc.
3. Sheet No. sheet number which shall be one series per year
4. Date date of the Journal Entry Voucher (JEV) or date of the document used as basis of entry in the Registry
5. Reference source documents, such as JEV No. 6. Description specifications such as length, type and
other information related to the infrastructures 7. Location exact location of the project such as
Barangay, Municipality and Province/City 8. Amount cost of the public infrastructures when it was
transferred from Regular Agency books based on the JEV
B. This Registry shall be used to record the cost of public
infrastructure transferred from the RA books.
C. In case the public infrastructures are destroyed due to fortuitous events, the said infrastructures shall be dropped from the Registry through a memorandum entry based on pertinent documents.
D. Every end of the quarter, it shall be footed and the total amount posted directly to the Summary.
E. It shall be maintained by the Accounting Unit and kept in a perpetual manner. No new sheet shall be prepared unless the preceding one is used up.
-
Date Reference Description Location Amount
REGISTRY OF REFORESTATION PROJECTS
Sheet No. :_______
Agency
-
REGISTRY OF REFORESTATION PROJECTS (RRP)
INSTRUCTIONS
A. This form shall be accomplished as follows:
1. Agency name of the agency 2. Sheet No. sheet/page number 3. Date date of the Journal Entry Voucher (JEV) or date
of the document used as basis of entry in the Registry 4. Reference source documents, such as JEV No., 5. Description specifications such as no. of hectares
planted, type of seedlings and other information related to the reforestation projects
6. Location exact location of the project such as Barangay, Municipality and Province/City
7. Amount cost of reforestation project when it was transferred from Regular Agency books based on the JEV
B. This Registry shall be used to record the cost of reforestation
projects transferred from the RA books.
C. In case the reforestation projects are destroyed due to fortuitous events, the said project shall be dropped from the Registry through a memorandum entry based on pertinent documents.
D. Every end of the quarter, it shall be footed. E. It shall be maintained by the Accounting Unit and kept in a
perpetual manner. No new sheet shall be prepared unless the preceding one is used up.
-
Public Infrastructures: Amount
Highways xx
Roads xx
Bridges xx
Plaza xx
Seawalls xx
Railways xx
Waterways xx
Irrigation xx
Canals xx
Harbors xx
Aqueducts xx
Laterals xx
Parks xx
Monuments xx
Totals xxxx
Certified Correct:
____________________
Chief Accountant
___________
Date
SCHEDULE OF PUBLIC INFRASTRUCTURES
_______________________
Agency Name
As of ____________________
-
o. Depreciation. Cost allocation is observed using the straight-
line method. The provision for depreciation starts with the
second month after purchase of property, plant and
equipment and a residual value of 10% of purchase cost is
set-up. . A table of the estimated useful lives of the different
depreciable assets is provided by COA. Public Infrastructure
/ Reforestation projects as well as serviceable assets that
are no longer being used are not charged any depreciation.
-
Annual Depreciation = Asset Cost less Estimated Residual/Salvage Value
Estimated Useful Life
Asset Cost - Purchase or Acquired Value of the Asset
Estimated Salvage Value - 10% of the asset cost
Estimated Useful Life - Estimated number of years the asset shall be
used as determined by the Commission
on Audit
A sample adjusting journal entry for depreciation expense is
as follows:
Account Title
Account
Code
Debit
Credit
Depreciation-Office Equipment 922 1,000
Accumulated Depreciation-Office
Equipment
322 1,000
-
p. Reclassification of Asset. Serviceable assets that are no
longer used are reclassified as Other Assets and are not
subject to depreciation.
-
q. Allowance for Doubtful Accounts. This is set up for
estimated uncollectible trade receivables to allow for their
fair valuation.
-
The determination of bad debts expense shall be derived from
computations based on percentages and aging of accounts receivable as
follows: Age of Accounts Percentage
1 - 60 days 1 %
61 - 180 days 2 %
181- 1 year 3 %
More than 1 year 5 %
An adjusting journal entry to take up bad debts expense is as follows:
Account Title
Account
Code
Debit
Credit
Bad Debts 929 1,000
Allowance for Doubtful Accounts 301 1,000
-
r. Elimination of Contingent Accounts. Appropriate accounts
are used in recording all financial transaction. Cash
shortages and disallowed payments, which have become
final and executory are charged to receivable accounts,
Due from Officers and Employees or Receivables
Disallowances/Charges, as the case may be.
-
s. Recognition of Liability. Liability is recognized at the time
goods and services are accepted or rendered and supplier /
creditor bills are received.
-
t. Interest Accrual. This is to be observed for both interest
income and interest expense whenever practical and
appropriate.
-
u. Accounting for Borrowing and Loans. All borrowing and
loans are recorded to the appropriate liability accounts.
-
v. Elimination of Corollary and Negative Journal Entries.
Acquisitions/dispositions of assets are debited/credited to
the appropriate asset accounts. Errors are corrected by
making a correcting entry.
(Under the old system, corollary entries were used as those
made upon contracting for the purchase of assets by
debiting an account such as Land and Land Improvement in
Process subject to transfer to the Land and Land
Improvement account upon consummation of the purchase
contract. Errors were corrected by making negative entries,
that is both debit and credit amount are negative.)
-
w. Imprest System for Petty Cash Fund. The Petty Cash Fund
shall be equal to the total cash on hand and the
unreplenished expenses. All expenses are charged to the
expense account at all times. The fund is not to be used to
purchase inventory/items for stock.
-
x. Foreign Currency Adjustment. Cash deposits in foreign
currency and outstanding foreign loans are computed at the
exchange rate prescribed by the Bangko Sentral ng Pilipinas
at balance sheet date. The total cash deposits and foreign
loans payable are adjusted at the end of each month and
any gain or loss on foreign exchange is recognized. The
subsidiary ledger for foreign currency obligations reflects
the appropriate foreign currency in which the loan is
payable. The liability is expressed both in foreign and local
currency.
-
BALANCE SHEET:
Assets = Liabilities + Government Equity
STATEMENT OF INCOME AND EXPENSES
Total Income Total Expenses = Excess of Income over
Expenses
-
STATEMENT OF GOVERNMENT EQUITY:
Government Equity, Beginning xx
Retained Operating Surplus:
Current Operations xx
Adjustment of Prior Years xx xx
Roads, Highways, Bridges (Public Infra) (xx)
Government Equity, End xx
-
STATEMENT OF CASH FLOWS:
Cash Flow from Operating Activities xx
Cash Flow from Investing Activities xx
Cash Flow from Financing Activities xx
Total Cash Provided by Operation, Investing and
Financing Activities xx
Add: Cash Balance, January 1, 20__ xx
Cash Balance, December 31, 20__ xx
-
The chart of accounts is a list of general ledger accounts
that are expected to appear in the financial statements.
Thus, the sequence followed in the listing of the accounts is
based on the sequence in which they are to appear in said
statements. Under the NGAS, code are simplified by using
three-digits codes. The grouping is as follows:
-
ACCOUNTS ACCOUNT
CODE
Assets 100-299
Asset Contra-Accounts 300-399
Liabilities 400-499
Equity 500-549
Income 550-699
Tax Revenue -
National Taxes 550-579
Local Taxes 580-599
General Income -
Permits and Licenses 600-609
Service Income 610-629
Business Income 630-649
Subsidy Income 650-659
Other Income 660-679
Gain or Loss Accounts 680-699
Expenses 700-999
Personal Services 700-749
MOOE 750-969
Financial Expenses 970-999
-
Cash National Treasury, Modified Disbursement System.
This account is used to record in the regular agency books
the receipt of Notice of Cash Allocation (NCA) from the DBM
and the corresponding withdrawals therefrom by national
government agencies (NGAs) by issuance of MDS checks. At
year-end, it is adjusted (or closed) for its unused portion.
Cash in Bank Local Currency, Current Account. This is
used for deposits/withdrawals of local currency in current
account maintained with accredited government depository
banks (AGDBs).
-
Due from National Government Agencies (NGAs). This is
used for amounts due from departments, bureaus and
other offices of the national government.
Due to National Treasury. This is used for collections due for
remittance to National Treasury.
Due to NGAs. This is used to record liabilities due to
national government agencies including inter-agency
transfer of funds for the implementation of specific
programs/projects.
-
Government Equity. It represents the difference between the total
assets and total liabilities of national government agencies.
Retained Operating Surplus. This is the account to which Income
and Expense Summary and Prior Years Adjustment are closed. It
is subsequently closed to the Government Equity account.
Subsidy Income from National Government (SING). This is the
revenue account credit for receipt of NCA, Tax Remittance Advice
(TRA), tax exemptions granted by the national government. At
year-end, it is adjusted for its unused portion and the used
portion is closed to Income and Expense Summary. This account
is also used for payment of national government agencies
liabilities by foreign lending/donor institutions.
-
National Government (NG) Books
Regular Agency (RA) Books
-
The national government books maintained by the agency are used to record the following income/receipts.
1. All collections of income not authorized for agency use and required to be remitted to the Bureau of Treasury (BTr). Examples are tax revenue, permits and licenses, operating and service income, business income, rent income, fines and penalties.
2. Income from grants and donations.
All income/receipts are supported by subsidiary ledger entries with the corresponding codes as contained in the Chart of Accounts. These are to be relayed to the BTr in the List of Collections upon remittance.
-
Illustrative Accounting Entries - Typical Transactions of Agencies with Collections/Income
to be recorded in the National Government (NG) Books
Beginning Balances: Cash - Collecting Officers 106 1,000
Accounts Receivables 121 5,000
Due to National Treasury 433 6,000
Income from Govt. Services 6,000
6,000 6,000
Transactions
Agency - National Government Books
Account Title Account Code
Debit Credit
-
A. Prior Year's Income
1. Deposit of prior year's collections Due to National Treasury 433 1,000
Income from Govt. Services 1,000
Cash Collecting Officers 106 1,000
2. Collection of prior years' receivables Cash - Collecting Officers 106 1,500
Accounts Receivables 121 1,500
3. Deposit of collections of prior years' Due to National Treasury 433 1,500
receivables Cash Collecting Officers 106 1,500
Transactions
Agency - National Government Books
Account Title Account Code
Debit Credit
-
B. Current Year's Income
4. Billing of operating and service Accounts Receivables 121 3,000
income Due to National Treasury 433 3,000
Income from Govt. Services 3,000
5. Collection of billed operating and Cash - Collecting Officers 106 2,500
service income Accounts Receivables 121 2,500
6. Collection of taxes Cash - Collecting Officers 106 2,200
Due to National Treasury 433 2,200
Source Amount Income Tax -Individuals 400
Income Tax-Individuals 400 Income Tax -Partnerships 300
Income Tax -Partnerships 300 Income Taxes -Corporations 1,200
Income Tax -Corporations 1,200 Capital Gross Tax 100
Property Transfer Tax 100 Value Added Tax 150
Value Added Tax 150 Fines and Penalties 50
Fines and Penalties 50
Total 2,200
7. Collection of rentals Cash - Collecting Officers 106 300
Due to National Treasury 433 300
Rent Income 300
Note: Subsidiary Ledger (SL) accounts shall be provided for "Due to National Treasury" account. The
code of the income accounts under the Chart of Accounts shall be used as SL accounts and shall be
indicated in the List of Collections which shall be submitted to the BTr.
Transactions
Agency - National Government Books
Account Title Account Code
Debit Credit
-
8. Deposit of income/collections
to BTr thru AGDB
a. Taxes Due to National Treasury 433 2,200
Income Tax -Individuals 400
Income Tax -Partnerships 300
Income Taxes -Corporations 1,200
Capital Gross Tax 100
Value Added Tax 150
Fines and Penalties 50
Cash - Collecting Officers 106 2,200
b. Rent Income Due to National Treasury 433 300
Rent Income 300
Cash - Collecting Officers 106 300
Transactions
Agency - National Government Books
Account Title Account Code
Debit Credit
-
C. Accounting for Collection of
Out-of-Town Checks with Bank
Charges - Income from Government
Services - P2,000
9. Collection upon issuance of OR Cash - Collecting Officers 106 2,000
Due to National Treasury 433 2,000
Income from Govt. Services 2,000
10. Remittance/Deposit to BTr Due to National Treasury 433 2,000
thru AGDB Income from Govt. Services 2,000 2,000
Cash - Collecting Officers 106
Note: BTr will record cash (at net amount),
bank charges and income (at gross).
Transactions
Agency - National Government Books
Account Title Account Code
Debit Credit
-
D. Accounting for Foreign Exchange Loss
11. Collection of Income from Cash - Collecting Officers 106 500
Govt. Services - $100 @ P50 Due to National Treasury 433 500
Income from Govt. Services 500
12. Remittance/Deposit to BTr Due to National Treasury 433 500
thru AGDB Income from Govt. Services 500 500
Cash - Collecting Officers 106
Note:There will be no bank charges and and foreign
exchange loss to be ecorded in the agency's
NG books.
Note: Subsidiary Ledger (SL) accounts shall be provided for "Due to National Treasury" account. The
code of the income accounts under the Chart of Accounts shall be used as SL accounts and shall be
indicated in the List of Collections which shall be submitted to the BTr.
Transactions
Agency - National Government Books
Account Title Account Code
Debit Credit
-
The regular agency books are used in recording transactions other than those that have to be recorded in the agency-NG books. Thus, collections and income to be recorded in the agency books are the following:
1. Receipts of Notice of Cash Allocation (NCA)
2. Income authorized for agency use and to be deposited with AGDB. Examples are tuition fees and income from sale of accountable forms and the funds are authorized to be treated as revolving funds.
3. Collection from sale of obsolete, unserviceable and unnecessary equipment authorized for agency use. They are required to be remitted to the Bureau of Treasury and are to be used by the agency upon receipt of Special Allotment Release Order (SARO) and NCA.
-
4. Non-income collections authorized for agency use, but
required to be remitted to the BTr and to be used by the
agency upon receipt of the NCA. These are as follows:
Inter-agency fund transfers
Receipts from various agencies intended for specific
purpose/project as shown in the Memorandum of
Agreement/Understanding
5. Collections which are subject to refund and are deposited
with the BTr.
Performance/bidders/bail bonds
Guaranty deposits
-
6. Collection not authorized for agency use but with related
asset/liability accounts recorded in the RA books. Examples are::
Proceeds from sale of assets not authorized for agency use
Proceeds from sale of confiscated properties and conveyances
Grants and donations
Refund of overpayment of expenses
Refund of cash advances
Cash settlement of disallowances and suspensions
Restitution of cash shortages recorded in the books
-
6. Collections authorized for agency use to defray actual
expenses incurred and paid for the purpose these were
collected. The excess income shall be remitted to the BTr
and recorded in the RA books. Examples are collections for
seminar and convention fees.
-
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units
(CO/RO/OU) receiving Notice of Cash Allocation direct from DBM.
Account
Code Debit Credit
Beginning Balances Office Equipment 222 1,000
Accounts Payable 401 350
Government Equity 501 650
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
Receipt of allotment and NCA
1. Receipt of allotment for: Posting in allotment column of the
Registry of Allotments and Obligations-
Allotment Class GAA CA 186 Capital Outlay, Maintenance and Other
CO 3,340 Operating Expenses, Personal Services
MOOE 1,010 and Financial Expenses
PS 550 55
FE 100
Total 5,000 55
2. Receipt of Notice of Cash Allocation Cash - National Treasury, MDS 102 4,500
from DBM - P4,500 Subsidy Income from National Government 601 4,500
Payment of Expenses
3. Obligation for PS - P 500 Posting in obligation column of Registry
of Allotments and Obligations - Personal
Services
4. Recording of expenses
Salaries 440 Salaries and Wages - Regular Pay 801 440
PERA 30 PERA 804 30
Additional Compensation 30 Additional Compensation 805 30
Total 500 Due to Officers and Employees 428 400
Less: Salary Deductions. Withholding Tax Payable 410 50
Withholding tax 50 GSIS Payable 411 32
Life & Ret. premiums 30 PAG-IBIG Payable 412 5
PAGIBIG premiums 5 PHILHEALTH Payable 413 3
PHILHEALTH premiums 3 Other Payables 450 10
GSIS-Salary loan 2
Employees' Association 10 100
Net Amount 400
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
5. Grant of Cash Advance for payroll - P400 Cash - Disbursing Officers 107 400
Cash - National Treasury, MDS 102 400
6. Liquidation of Cash Advance Due to Officers and Employees 428 400
Cash - Disbursing Officers 107 400
7. Remittance of Salary Deductions GSIS Payable 411 32
PAG-IBIG Payable 412 5
PHILHEALTH Payable 413 3
Other Payables 450 10
Cash - National Treasury, MDS 102 50
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
8. Obligation for government share Posting in obligation column of Registry
CA 186 - Life & Ret. Contribution 30 of Allotments and Obligations - Personal
GAA - PAG-IBIG Contribution 5 Services
GAA - PHILHEALTH Contribution 3
38
9. Remittance of Govt. Share
CA 186 - Life & Ret. Contribution 30 Life and Retirement Insurance Contributions 817 30
GAA - PAG-IBIG Contribution 5 PAG-IBIG Contributions 818 5
GAA - PHILHEALTH Contribution 3 PHILHEALTH Contributions 819 3
38 Cash - National Treasury, MDS 102 38
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
Receipt of Bills / Claim
10. Obligation for: Posting in obligation column of Registry of
Rent ( for 1 year) 70 Allotments and Obligations - Maintenance
Office Supplies 150 and Other Operating Expenses
MERALCO bill 50
PLDT bill 40
Travelling expense of
Mr. Alex Cruz 110
TOTAL 420
11. Payment of one year rent Prepaid Rent 161 70
(July 1, 2002 to June 30, 2003) Cash - National Treasury, MDS 102 70
12. Advance payment to Procurement Due from NGAs 130 150
Service (PS) for office supplies 150 Cash - National Treasury, MDS 102 150
13. Receipt of office supplies Office Supplies Inventory 149 150
and invoice from Procurement Service. Due from NGAs 130 150
14. Payment of MERALCO bill Electricity 835 50
Cash - National Treasury, MDS 102 50
15. Payment of PLDT bill Telephone/Telegraph and Internet 837 40
Cash - National Treasury, MDS 102 40
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
16. Granting of cash advance for travel of Due from Officers and Employees 128 110
Mr. Alex Cruz Cash - National Treasury, MDS 102 110
17. Liquidation of cash advance for travel of Traveling Expense - Local 831 98
Mr. Alex Cruz Due from Officers and Employees 128 98
18. Refund of excess cash advance for travelling Cash - Collecting Officers 106 12
expense of Mr. Alex Cruz Due from Officers and Employees 128 12
19. Adjustment of obligation by P12 for refund Negative posting in obligation column of
of excess advance for traveling expense Registry of Allotments and Obligations -
Maintenance and Other Operating Expenses
20. Deposit of collection from excess advance Subsidy Income from National Government 601 12
to BTr Cash - Collecting Officers 106 12
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
Petty Cash Fund
21. Obligation for Petty Cash Fund (PCF) Posting in obligation column of
for - P35 Registry of Allotments and Obligations -
Maintenance and Other Operating Expenses
22. Establishment of Petty Cash Fund (PCF) Petty Cash Fund 105 35
Cash - National Treasury, MDS 102 35
23. Obligation of P30 for replenishment Posting in obligation column of
of Petty Cash Fund Registry of Allotments and Obligations -
Maintenance and Other Operating Expenses
24. Replenishment of Petty Cash Fund Office Supplies Expenses 849 20
Bond paper 20 Postage and Deliveries 838 10
Postage stamps 10 Cash - National Treasury, MDS 102 30
30
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
25. Closing of the Petty Cash Fund within the Cash - Collecting Officers 106 5
year due to retirement of the PCF Custodian Petty Cash Fund 105 5
26. Adjustment of obligation for refunded PCF Negative posting in obligation
per ALOBS supported by Official Receipt Registry of Allotments and Obligations -
Maintenance and Other Operating Expenses
27. Deposit of collection from refund of Subsidy Income from NG 601 5
Petty Cash Fund Cash - Collecting Officers 106 5
28. Obligation for Petty Cash Fund for - P35 Posting in obligation column of
for the newly designated PCF Custodian Registry of Allotments and Obligations -
Maintenance and Other Operating Expenses
29. Establishment of Petty Cash Fund for Petty Cash Fund 105 35
the newly designated PCF Custodian Cash - National Treasury, MDS 102 35
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
Purchase of Equipment
30. Obligation for office equipment per Purchase Posting in obligation column of
Order - P100 Registry of Allotments and Obligations -
Capital Outlay
31. Payment to Procurement Service for office equipment Due from NGAs 130 100
Cash - National Treasury, MDS 102 100
32. Receipt of office equipment based on Invoice/ Office Equipment 222 100
delivery receipt Due from NGAs 130 100
33. Obligation prior to approval of purchase order for Posting in obligation column of
IT Software - P400 Registry of Allotments and Obligations -
Capital Outlay
34. Receipt of IT Software based on invoice/delivery IT Equipment and Software 215 400
receipt from Computer Technologies (corporation) Accounts Payable 421 400
35. Payment of IT Software to Computer Technologies Accounts Payable 421 400
Gross 400 Cash - National Treasury, MDS 102 364
Less: Withholding Tax (VAT) 36 Withholding Taxes Payable 410 36
364
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
Construction of Building
36. Obligation for building prior to the signing of the Posting in obligation column of
contract - P700 Registry of Allotments and Obligations -
Capital Outlay
37. Receipt of cash from the contractor paid Cash - Collecting Officers 106 50
as performance bond Performance/Bidders/Bail Bonds Payable 414 50
38. Deposit of ( cash) performance bond Due from National Treasury 134 50
to BTr thru AGDB Cash - Collecting Officers 106 50
39. Payment of 15% of contract amount as advances Advances to Contractors 168 105
to contractor - P700 x 15% Cash - National Treasury, MDS 102 105
40. Receipt of 1st progress billing for building Construction in Progress - Agency Assets 230 350
50% of P700 P350 Accounts Payable 401 300
Less: Recoupment 50 Advances to Contractors 168 50
Net Amount P300
41. Payment of 1st progress billing for building Accounts Payable 421 300
Accounts Payable 300 Cash - National Treasury, MDS 102 238
Less: 10% Retention 35 Guaranty Deposits Payable 408 35
Withholding Tax 27 62 Withholding Taxes Payable 410 27
Net Amount 238
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
42. Receipt of final billing for building Construction in Progress - Agency Assets 230 340
50% of P700 (delayed completion) P350 Accounts Payable 401 285
Less: Liquidated Damages 10 Advances to Contractors 168 55
Net Amount P340
Less: Recoupment 55
Amount Due P285
43. Adjustment of RAOCO by P10 to reduce original Posting in obligation column of
amount of obligation due to liquidated damages Registry of Allotments and Obligations -
Capital Outlay
44. Final payment for building Accounts Payable 401 285
Accounts Payable 285 Cash - National Treasury, MDS 102 253
Less: 10% Withholding Tax (VAT) 32 Withholding Taxes Payable 410 32
Net Amount 253
45. Turn-over & acceptance of building Buildings 204 690
Contract Amount 700 Construction in Progress - Agency Assets 230 690
Less: Liquidated Damages 10
Net Cost 690
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
-
Account
Code Debit Credit
Transfer of Funds to Implementing Agency
46. Obligation prior to approval of transfer of cash to Posting in obligation column of
another agency for construction of building-P250 Registry of Allotments and Obligations -
Capital Outlay
47. Issuance of check to implementing agency (IA) Due from NGAs 130 250
Cash - National Treasury, MDS 102 250
48. Receipt of liquidation reports/turn-over of building Buildings 204 250
by IA - P250 Due from NGAs 130 250
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
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Account
Code Debit Credit
Grants and Donations
52. Obligation of amount for tuition fees of employees Posting in obligation column of
(under scholarship grants) - P70 Registry of Allotments and Obligations -
Maintenance and Other Operating Expenses
53. Recording of the bill from educational institution for Grants and Donations 889 70
tuition fees of scholars Accounts Payable 401 70
54. Payment of tuition fees of scholars Accounts Payable 401 70
Cash - National Treasury, MDS 102 70
55. Obligation of stipend/book allowances Posting in obligation column of
of scholars - P 50 Registry of Allotments and Obligations -
Maintenance and Other Operating Expenses
56. Payment of stipend/book allowance to scholars Grants and Donations 889 50
Cash - National Treasury, MDS 102 50
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
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Account
Code Debit Credit
Payment thru ADA
57. Receipt of NCA for PY accounts payable - P350 Cash - National Treasury, MDS 102 350
Subsidy Income from National Government 601 350
58. Payment of PY accounts payable - P200 Accounts Payable 401 200
Cash - National Treasury, MDS 102 200
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
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Account
Code Debit Credit
Public Infrastructures
59. Receipt of cash from contractor paid as performance Cash - Collecting Officers 106 150
bond for the construction of roads Performance/Bidders/Bail Bonds Payable 414 150
60. Deposit of cash (performance bond) to BTr thru AGDB Due from National Treasury 134 150
Cash - Collecting Officers 106 150
61. Obligation for construction of roads prior to signing of Posting in obligation column of
contract - P2,000 Registry of Allotments and Obligations -
Capital Outlay
62. Payment of 15% of contract amount for the Advances to Contractors 168 300
advances to the contractor for the construction of Cash - National Treasury, MDS 102 300
roads P2,000 x 15%
63. Receipt of progress billing for construction of roads Construction in Progress - Roads,
50% of P2,000 1000 Highways and Bridges 232 1,000
Less: Recoupment 150 Accounts Payable 401 850
Net Amount 850 Advances to Contractors 168 150
64. Payment of bill for the construction of roads Accounts Payable 401 850
Accounts Payable (1,000 -150) 850 Cash - National Treasury, MDS 102 660
Less: Withholding Tax 90 Withholding Taxes Payable 410 90
10% Retention 100 190 Guaranty Deposits Payable 408 100
Net Amount 660
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
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Account
Code Debit Credit
65. Presentation of final billing for roads Construction in Progress - Roads,
50% of P2,000 1,000 Highways and Bridges 232 950
Less: Liquidated Damages 50 Accounts Payable 401 800
Net Cost 950 Advances to Contractors 168 150
Less: Recoupment 150
Amount Due 800
66. Adjustment of RAOCO by P50 to reduce original Negative posting in obligation column of
amount of obligation Registry of Allotments and Obligations -
Capital Outlay
67. Payment of final bill for the construction of roads Accounts Payable 401 800
Accounts Payable 800 Cash - National Treasury, MDS 102 619
Less: Withholding Tax 86 Withholding Taxes Payable 410 86
10% Retention 95 181 Guaranty Deposits Payable 408 95
Net Amount 619
68. Turn-over and acceptance of roads Public Infrastructures 243 1,950
Contract amount 2,000 Construction in Progress - Roads,
Less: Liquidated Damages 50 Highways and Bridges 232 1,950
Net Cost 1,950
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
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Account
Code Debit Credit
Remittance of Withholding Taxes Thru TRA
69. Remittance of Withholding Tax thru TRA Withholding Taxes Payable 410 321
Salaries 50 Subsidy Income from National Government 601 321
IT Software (Corporation) 36
Building (Corporation) 59
Roads (Corporation) 176
Total 321
Release of Performance Bond
70. Receipt of NCA for deposited performance bonds receivedCash-National Treasury, MDS 102 200
from contractors for the construction of the following: Due from National Treasury 134 200
Building 50
Roads 150
Total 200
71. Refund of performance bonds to contractors . Performance/Bidders/Bail Bonds Payable 414 200
Cash-National Treasury, MDS 102 200
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
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Account
Code Debit Credit
Refund of Retention Fees
72. Refund of retention fees to contractors . Guaranty Deposits Payable 408 406
Cash-National Treasury, MDS 102 406
Building P35
Roads 371
Total 406
Issuance of Supplies and Materials
73. Receipt of the Report of Supplies and Materials Issued Office Supplies Expenses 849 140
from the Property/Supply Unit Office Supplies Inventory 149 140
office supplies - P140
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
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Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units
(CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO.
Receipt of Allotment/NCA andTransfer of Subsidy
1. Receipt of allotment for:
Posting in allotment column of Posting in allotment column of Posting in allotment column of
Allotment Class CO RO OU Registry of Allotments and Obligations- Registry of Allotments and Obligations- Registry of Allotments and Obligations-
CO 1,800 Capital Outlay, Maintenance and Other Maintenance and Other Operating Maintenance and Other Operating MOOE 260 Operating Expenses, Personal Services Expenses, Personal Services Expenses, Personal Services
PS 200 250 150
Total 2,260 250 150
2. Receipt of Notice of Allocation CO RO OU Cash - National Treasury, MDS 102 2,000 Cash - National Treasury, MDS 102 250 Cash - National Treasury, MDS 102 150
from DBM 2,000 250 150 Subsidy Income from National Government 601 2,000 Subsidy Income from National Government 601 250 Subsidy Income from National Government 601 150
3. Release of sub-allotment to Regional Offices Negative posting in allotment column of Posting in allotment column of
Allotment Class RO Registry of Allotments and Obligations- Registry of Allotments and Obligations-
MOOE 160 Capital Outlay Capital Outlay
CO 1,500
Total 1,660
4. Release of Letter Advice of Allotment to OU Negative posting in allotment column of Posting in allotment column of
Allotment Class OU Registry of Allotments and Obligations- Registry of Allotments and Obligations-
MOOE 50 Capital Outlay, Maintenance and Capital Outlay, Maintenance and
CO 700 Other Operating Expenses Other Operating Expenses
Total 750
5. Transfer of subsidy to Regional Subsidy to Regional Offices/Staff Bureaus 538 1,400 Cash in Bank-Local Currency, Curr. Acct. 110 1,400
Office thru funding check or fund Cash - National Treasury, MDS 102 1,400 Subsidy from Central Office 602 1,400
transfer 1,400
6. Transfer of subsidy to Operating Subsidy to Operating Units 539 600 Cash in Bank-Local Currency, Curr. Acct. 110 600
Unit thru funding check or fund Cash in Bank-Local Currency, Curr. Acct. 110 600 Subsidy from Regional Office/Staff Bureau 603 600
transfer 600
Payment of Expenses
7. Obligation for Personal Services CO RO OU Posting in obligation column of Posting in obligation column of Posting in obligation column of
140 250 130 Registry of Allotments and Obligations- Registry of Allotments and Obligations- Registry of Allotments and Obligations-
Personal Services Personal Services Personal Services
Transactions
CENTRAL OFFICE (CO) REGIONAL OFFICE (RO)
Account
Code Debit Credit
Account
Code Debit Credit
OPERATING UNITS
Account Title Account Title Account TitleAccount
Code Debit Credit
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In accounting for allocations, allotments and obligations,
some of the terms often used are the following:
Appropriation an authorization under past Acts of
Congress or other legislative enactments, for payments
to be made with funds of the government under
specified conditions and/or for specific purposes.
-
Allotments authorization issued by the DBM to an
agency to enable it to incur obligations up to a specified
amount that is within a legislative appropriation.
Allotments are issued based on the agency budget
matrix (ABM). They are recorded by posting in the
Registries of Allotment and Obligations (RAO). For this
purpose, there are four registries used. They are as
follows:
RAOPS
RAOMO
RAOFE
RAOCO
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Allotment Release Order (ARO) a formal document
issued by DBM to the head of an agency containing the
authorization, conditions and amount of agency
allocation. It may be in the form of the ABM or the SARO.
ABM a document showing the disaggregation of
agency expenditures into components like, among
others, by source of appropriation, by allotment class
and by need of clearance.
-
NCA an authorization issued by the DBM to an agency to withdraw cash from BTr to pay expenses incurred, purchases of materials, purchases of PPE, payment of payables and other authorized disbursements thru the issuance of Modified Disbursement System (MDS) checks.
Obligation commitments by a government agency arising from an act of a duly authorized official which binds the government to the immediate or eventual payment of a sum of money. An obligation is recognized when contracted for and is recorded by a memorandum entry in the RAO.
-
MDS Checks. These are issued by national government agencies
chargeable to the account of the BTr maintained with different
MDS-Government Servicing Banks (GSBs). They are given to the
agencies based on their cash allocation per NCA and their
issuance reduces the amount of cash available per NCA. MDS
Checks issued are credited to Cash NT, MDS.
Commercial Checks. These are issued for disbursements out of
the agencys receipts/income that is authorized to use. Agencies
are required to deposit their receipts/income in a current
account in the AGDB. Upon said deposit, the account Cash in
Bank Local Currency, Current Account is debited so that upon
issuance against the current account, the credit is to the same
account.
-
Adjusting entries are similar to those made under
commercial accounting. They include those for accrual of
income and expenses, prepaid expenses, deferred income
tax and provision for depreciation.
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Account
Code Debit Credit
Adjusting Entries
74. Recording of depreciation for the following: Depreciation - Buildings 904 35
Cost Depn. Depreciation - IT Equipment 915 40
Buildings 690 35 Depreciation - Office Equipment 922 10
IT Equipment 400 40 Acc. Depn. - Buildings 304 35
Office Equipment 100 10 Acc. Depn. - IT Equipment 315 40
Total 1,190 85 Acc. Depn. - Office Equipment 322 10
75. Rent expense for the year Rent Expense 841 35
Prepaid Rent 161 35
Transactions
REGULAR AGENCY BOOKS
Account Title
CO/RO/OU
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As in commercial accounting, closing entries are made whereby income and expenses account are closed to Income and Expense Summary. Under the NGAS, the latter is closed to Retained Operating Surplus, which in turn is closed to Government Equity. The latter is reduced upon transfer of public properties/infrastructures to their registries. In addition to these, an entry is made for the unused NCA.
Unused NCA. Whatever cash allocation is still unused at the end of the year has to be reverted back to the national treasury. This is due to the DBM policy that NCA is valid only within the year of issue. The exception of NCA for accounts payable, which is valid for one month after its issuance.
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Account
Code Debit Credit
CLOSING ENTRIES
1. Unused NCA Subsidy Income from National Government 601 187
Cash-National Treasury, MDS 102 187
2. Subsidy Income from the National Government Subsidy Income from National Government 601 2,667
and Income Income and Expense Summary 533 2,667
3. Expenses Income and Expense Summary 535 1,131
Salaries and Wages-Regular Payroll 801 440
PERA 804 30
Additional Compensation 805 30
Life and Ret. Insurance Contribution 817 30
PAG-IBIG Contribution 818 5
PHILHEALTH Contribution 819 3
Traveling Expense, Local 831 148
Training and Seminar Fees 833 30
Electricity 835 50
Telephone/Telegraph and Internet 837 40
Postage and Deliveries 838 10
Rent Expenses 841 70
Office Supplies Expenses 849 40
Grants and Donations 890 120
Depreciation - Buildings 904 35
Depreciation - IT Equipment 915 40
Depreciation - Office Equipment 922