Prince Lucky Godines BSA/IS-22A1 f) f) Only duly appointed or designated disbursing officer

may perform disbursing functions. Officers and employees

Sunshine Salangsang who are given cash advances for official travel need not be
designated as disbursing officers;
Desiree Verana
g) g) Transfer of cash advance from one accountable officer to
another shall not be allowed; and

Measurement After Recognition h) h) The cash advance shall be used solely for specific legal
purpose for which it was granted. Under no circumstance
 An entity shall choose either the cost model or the
shall it be used for encashment of checks or for liquidation
revaluation model
of a previous cash advance.
 Cost less any accumulated depreciation and any
Cash Advance for Payroll
accumulated impairment losses
Advances for payrollshall be granted to regular disbursing officers for
 Under the revaluation
payment of salaries, wages, honoraria, allowances and other
 Fair value can be measured reliably shall be carried at personnel benefits of officials and employees.
revalued amont less any subsequent accumulated
Accounting for Overpayments
depreciation and subsequent accumulated impairment
losses  Sometimes overpayments or even double payment of
expenditures do happen in agencies.
Depreciation
 In case of overpayments, refunds shall be demanded of the
 Is a charged systematically over the useful life of the
employees concerned.
depreciation asset
Cash Advances for operating expenses of government units
 Begins when it is available for use and even it is idle or
without complete set of books of Accounts
retired from active use and held for disposal because
depreciation ceases when recognized or fully depreciated Firld/Extension/Satelite Offices are some of the government unit
under the sentral/regional/district offices. Without complete set of
 No depreciation is recognized when there is no production
books of accounts.
 The useful life of an asset is the asset’s expected utility to
Cash Advances for Travel
the entity
 Section 2 of executive order (EO) No. 248 dated May 29,
Disbursement by Cash
1995, as amended by EO No. 248A and No. 298 dated
Constitute payments out of cash advances granted to the regular and August 14, 1995 and March 23, 2004, respectively, provide
special disbursing officers for personal services, petty expenses and that travels shall cover only those that are urgent and
MOOE for field operating requirements. extremely necessary, will involve the minimum expenditure
and are beneficial to the agency concerned and/or the
a) No cash advance shall be given unless for a legally country.
authorized specific purpose;
 No government fund shall be utilized to defray foreign
b) A cash advance shall be reported on and liquidated as soon travel expenses of any government official or employee,
as the purpose for which it was given has been served; except in the case of training, seminar or conference abroad
when the officials or other personnel of the foreign mission.
c) c) No additional cash advance shall be allowed to any
official or employee unless the previous cash advance  Due to retire within one year after the said foreign travel
given to him/here is first settled/liquidated or a proper [Section 16(c) of fiscal year (FY) 2012 GAA or pertinent
accounting thereof is made; provisions of the GAA for the year]. Under memorandum
Circular No. 52 dated October 2, 2003 of the office of the
d) d) Expense for cash advance for officials travels, no officer president, the grant of clothing allowance in all categories
or employee shall be granted cash advance unless he/she is of trips is suspended indefinitely.
properly bonded in accordance with existing laws or
regulations. The amount of cash cash advance which may  Officials and employees authorized to travel shall be
be granted shall not exceed the maximum cash granted cash advance to cover traveling expences.
accountability covered by his/her bond;
 “Advances to officers and Employees”
e) e) Only permanently appointed officials shall be designated
as disbursing officers;  No additional cash advance shall be granted to any official
or employee.
  For the local travel, liquidation shall be done within a 16A and 2013-16B dated Febraury 6, 2014 and February 25,2014,
period of 30 days upon return to the personnel’s respectively.
workstation.
Disbursements through Electronic Modified Disbursement
 60 days upon return to the philippines System as part of the Modified Disbursement Scheme

 The excess cash advance shall be refunded and an OR shall  The Electronic Modified Disbursement System (Emds) has
be issued to acknowlegde receipt thereof. been adopted as one of the modes of disbursement under
joint. Administrative order (JAO) No.2015-1 dated March
 Prepared to claim reimbursement of the deficiency in 12, 2015 of the DBM and DOF, this is to facilitate an
amount. efficient and prompt reconciliation of spending agencies’
disbursements vis-à-vis the accounts of the BTr maintained
at the Land Bank of the Philippines (LBP) as Authorized
Government Servicing Bank (AGSB).
Cash Advance for Specific Purpose/Time-Bound Undertaking
 Monitor disbursements and generate MDS reports under the
 Cash advance for special purpose/time-bound undertaking
government MDS.
shall be granted only to duly authorized accountable
officer-special disbursing officer. Disbursements through Cashless Purchase Card (CPC) System

 “ Advances to Special Disbursing Officer” The CPC System was prescribed as an alternative
mode of payment.
 Any unutilized cash advance shall be refunded and an OR
shall be issued to acknowledge collection thereof. The general guidelines on the implementation of the CPC System
are as follows:
Cash Advance for Petty Operating Expenses
1) The CPC System to be implemented by participating
 The petty cash fund (PCF) to be set up shall be sufficient
agencies is a mode to procure specific eligible items
for the recurring petty operating expenses of the agency for
through the use of an electronic card. The CPC
one month.
functions similarly to a credit card and shall only be
 The PCF shall be replenished as soon as disbursements used for pre-identified items within body limits
reach at lease 75% or as needed. mutaully agreed upon by members of the Steering
Committee. It shall also be used only with specific
The Following are the accounting policies regarding cash merchant groups already enumerated under agreement
advance for PCF: with the credit crd company.

a) The fund shall be kept separately from the regular cash 2) 2) Only individuals recommended by the program
advances/collections and shall not be used for payment of administrator and authorized by the steering committee
regular expenses such as rentals, subscriptions, light and shall be allowed to use the CPC and pre-identified items
water bills, purchase of supplies and materials for stock within monthly limits set at levels mutually agreed upon
purposes, and the like. by members of the steering committee. The CPC shall
likewise be used only with specific merchant groups
b) The unused balance of the PCF shall not be closed/refunded already enumerated under agreement with the credit
at the end of the year. The fund shall be closed only upon card company.
termination, separation, retirement or dismissal of the petty
cash fund custodian (PCFC), who in turn shall refund any 3) 3) Only individuals recommended by the prgram
balance to close his/her cash accountability; and administrator and authorized by the steering committee
shall be allowed to use the CPC at predetermined
c) At the end of the year, the PCFC shall submit to the monthly purchase limits. Authorized individuals shall
accounting division/unit all unreplenished petty cash be permanent employees of the participating agencies
voucher (PVCs) for recording in the books of accounts. and shall, as much as possible be involved in the
procurement of goods and services of their unit/office.

4) a) Individual credit limits which have been

Disbursements through list of due and demandable Accounts approved by the steering committee may only be
Payable-Advice to debit Account (LDDAP-ADA) increased and/or amended by the steering committee.

The use of LDDAP-ADA as a mode of settlement of accounts 5) b) Approvals or increased individual credit
payable due the creditors/payees of all NGAs and their Ous was limits as well as additional personnel of participating
prescribed under DBM circular letter No. 2013-16 dated December agencies to be entitled to the CPC shall only be granted
23,2013 which implemented the Expanded modified direct payment after three(3) months pilot testing of implementation of
scheme (ExMDPS), AMENDED BY dbm Circular letter Nos. 2013- the CPCS.
 6) 4) Chief of offices of the participating agencies who This type of disbursement should be covered by a non-cash
approved CPC are jointly accountable with their special availment authority (NCAA). This mode of disbursement is made
disbursing officers. through the JEV issued by the BTr to the availing/implementing
agency to record payment of goods and services made directly by
7) 5) The CPC system shall not, in any way, suplant, the lending institution to the supplier or contractor. The JEV
replace or revise the procurement policies and shall be recorded in the general journal (GJ).
procedures prescribed under RA No. 9184 otherwise
known as the procurement law. Disbursements through Direct Payment Method

8) 6) The total amount authorized to be covered by the This type of disbursement should be covered by a non-cash
CPC shall form part of the cash advance levels of the availment authority (NCAA). This mode of disbursement is made
participating agencies. The CPC shall not be used nor through the JEV issued by the BTr to the availing/implementing
intended to aloow or justify the increase in cash advance agency to record payment of goods and services made directly by
levels for the participating agencies. the lending institution to the supplier or contractor. The JEV
shall be recorded in the general journal (GJ).
9) 7) The CPC shall initially be used for purchase of small
value non-common use items which are not available
with the procurement service.

10) 8) The cost of purchasing unauthorized items using the

CPC shall be for the personal account of the individual
who undertook the transaction. This is without
prejudice to the suspension of the cardholder’s privilege
to use the issued CPC and other penalties which the
participating agencies may impose.

11) 9) In case the participating agencies find specific items

which it disputes as having been procured (based on
the receipts the individual CPC holder has), they shall
immediately inform credit card company (CCC) of this
discrepancy.

12) 10) The participating agencies shall ensure the timely

payment of the CPC billing received from the CCC. In
the event that delays in payment of the CPC billing
occur, any additional charges such as late payment
charges/penalties shall be changed againts the personal
account of the employee directly responsible for the
cause of such delays. In no case shall the NCA issued be
used to settle late payment charges.

13) 11) The existing disbursement policies and procedures

on the use of NCA and the common fund system shall
continue to apply where the CPC system is concered.

14) 12) Payment to the CCC for legitimate purchases made

out of the CPC shall be consistent with the existing
MDS disbursement procedures pursuant to DMB
circular letter No. 2013-16.

Disbursements by Foreign-based Government Agencies

CDC is an authorization issued by the DBM to DFA and other

agencies with foreign posts to utilize their collections retained by
their foreign service posts (FSPs) to cover operating
requirements, but not exceed the released allotment to the said
post (National Budget Circular No. 535 dated December 29,
2011).

Disbursements through Direct Payment Method