Lecture Notes

Accounting for Disbursements and Related Transactions

Learning Objectives:

Scope

This topics covers the rules and regulations followed the disbursement public funds, the
monitoring receipt and utilization NCA/NTA, preparation and processing DV/Payroll;
preparation and issue checks; payment cash; granting, utilization and
liquidation/replenishment cash advances; payment through ADA; remittance taxes
withheld through TRA; availment foreign loans through suppliers credit/constructive cash;
and payment operating requirements FSPs through CDC.

Definition Terms

For the purpose this topic, the terms used shall construed mean follows:

Accounts Payable refers valid and legal obligations NGAs/OUs, for which,
goods/services/projects have been delivered/rendered/completed and accepted,
regardless the year when these obligations were incurred.

Advice Debit Account refers authorization issued the NGA/OU appearing the lower portion
the List Due and Demandable Accounts Payable Advice Debit Account (LDDAP-ADA). serves
instruction the Modified Disbursement System, Government Servicing Banks (MDS-GSBs)
debit specified amount from its available NCA balance under regular MDS sub-account for
payment creditors/payees through the Expanded Modified Direct Payment Scheme
(ExMDPS).

Agency refers any department, bureau office the national government, any its branches and
instrumentalities, any political subdivision, well any GOCCs, including its subsidiaries, other
self-governing board commission the government.

Authorized Card Holder refers responsible official whom Purchase Card issued for purposes
making official purchases within specific categories enumerated Annex Joint Memorandum
No. 2014-01 dated May 15, 2014.

Billing Entity refers the accounting unit the concerned participating agency responsible the
consolidation the billing statement from the Credit Card Company (CCC) and payment the
said billing agency.

Credit Card Company refers Citibank the authorized credit card service provider for the
Cashless Purchase Card (CPC) System.
Commercial Check refers check issued government agencies chargeable against the agency’s
checking account with AGDBs. These are covered income/receipts authorized deposited
with AGDBs; and funding checks received Operating Units from Central/Regional/Division
Offices, respectively.

Direct Payment System refers the payment procedure whereby the MDS-GSB shall, upon
receipt NCA LDDAP-ADA from DBM pay the CCC not earlier than hours but not later than
hours, through direct credit the CCC current account.

Disbursements constitute all cash paid out during given period currency (cash) check/ADA.
may also mean the settlement government payables/obligations cash, check ADA. shall
covered DV/Petty Cash Voucher (PCV)/Payroll.

Expanded Modified Direct Payment Scheme refers the payment procedures whereby the
MDS-GSB shall pay the creditors/payees listed the LDDAP-ADA not later than hours but not
earlier than hours upon receipt the said document from the NGA/OU:

Direct credit the creditor’s current/savings/ATM account (CA/SA/ATM) maintained with

MDS-GSB;

Bank transfer, creditor’s account maintained outside the agency’s MDSGSB, where
corresponding bank charges shall borne/paid the creditor/payee concerned.

Implementing Agency refers the agency which the funds are transferred for the purpose
prosecuting/implementing the project.

Inter-Agency Transferred Fund refers cash money transferred Implementing Agency (IA)
for the undertaking project Source Agency (SA) which the allotment was released.

Letter Introduction refers letter addressed the MDS-GSB, issued the NGA/OU its
creditors/payees for the purpose opening account validation existing account.

List Due and Demandable Accounts Payable-Advice Debit Account refers accountable form
integrating the Advice Debit Account (ADA) with the LDDAP, which list reflecting the names
creditors/payees paid the NGA/OU and the corresponding amounts the unpaid claims.

Merchants refers those authorized the CCC the sellers/suppliers under the CPC System.

Modified Disbursement System (MDS) Check refers check issued government agencies
chargeable against the account the Treasurer the Philippines, which are maintained with
different MDS AGDBs. MDS checks are covered NCA.

Modified Disbursement System, Government Servicing Banks refers the authorized

government servicing banks, such Land Bank the Philippines (LBP), Development Bank the
Philippines (DBP), and Philippine Veterans Bank (PVB), which DBM issues the NCAs for
crediting the MDS sub-accounts NGAs.
Petty Cash Fund refers the amount granted duly designated Petty Cash Fund Custodian for
payment authorized petty miscellaneous expenses which cannot conveniently paid through
checks/LDDAP-ADA.

Program Administrator refers the designated the head the agency who are tasked
implement and administer the Cashless Purchase Card System.

Project refers the undertaking, whether construction work, research training program,
computer engagement other authorized activities which agency shall prosecute implement
favor behalf another agency.

Purchase Limit:

Cardholder Monthly Purchase Limit refers the limit established the Program Administrator
and approved the Steering Committee for the total value purchases that cardholder can
make one month.

Cardholder Single Purchase Limit refers the maximum amount allowed the cardholder for
each transaction.

Maximum Purchase Card Limit refers the maximum amount that the unit/office authorized
utilize stated the Purchase Card application

Regular Cash Advance refers the amount granted cashiers, disbursing officers, paymasters,
and/or other accountable officers for the payment expenses such salaries and wages,
commutable allowances, honoraria and other similar payments officials and employees.

Steering Committee refers the advisory committee composed representatives from DND
and the DBM which shall provide the guidance key issues such policy and objectives,
control, procedures, individual card limits, individuals authorized use the cards,
amendments, and decisions involving large expenditures.

Special Cash Advance refers the amount granted the explicit authority the Head the Agency
only duly designated disbursing officers employees for other legally authorized purposes,
such payment current operating expenditures, including salaries, wages and allowances,
travel expenditures, and maintenance and other operating expenses, the agency field office
for special purpose/time-bound undertaking the agency when impractical pay the same
check.

Source Agency refers the agency which the allotment has been originally released and
whose behalf benefit the project will prosecuted/implemented.

Tax Remittance Advice refers serially-numbered document prescribed the DBM that should
used the NGAs the remittance withheld taxes funds coming from DBM. This form being
distributed the BIR accomplished the NGAs. The same shall duly certified the Chief
Accountant and approved the Head the concerned NGA his duly authorized representative,
and attached every withholding tax return filed payment for taxes withheld. This shall the
basis for the BIR and the Bureau the Treasury (BTr) record the tax collection their
respective books accounts. (BIR No. 1-2013).

aa. Withdrawal Application written request from the borrower the development partner
pay funds against borrower’s loan account.

Fundamental Principles for Disbursement Public Funds

Basic requirement for disbursement and required certifications

Availability Funds

Notice Cash Allocation. The NCA shall the authority agency pay operating expenses,
purchases supplies and materials, acquisition PPE, accounts payable, and other authorized
disbursements through the issue MDS checks, ADA other modes disbursements.

MDS check/ADA shall issued without the covering NCA. Hence, the total MDS checks/ADA
issued shall not exceed the total NCA received. maximize the available NCAs the agency, the
Common Fund System policy shall adopted whereby cash allocation balances agencies
under the Regular MDS Account may used cover payment current year’s accounts payable
i.e., goods and services which have been delivered and accepted during the year charged
against appropriations prior year/s, after satisfying their regular operating requirements
reflected their Monthly Cash Program.

NCA issued and credited the Special MDS Accounts agencies for payment retirement
gratuity/terminal leave benefits well prior years’ accounts payable shall valid within the
period prescribed under existing rules and regulations. The NCA shall monitored through
the maintenance the Registry Allotments and Notice Cash Allocation (RANCA) (Appendix
30) the Accounting Division/Unit.

NCA issued and credited the Special MDS Accounts for Trust cover payments authorized
claims shall valid within the period prescribed under existing regulations.

For NCA issued for foreign assisted projects such grants from foreign country witha
separate MDS account maintained the spending agency with Government Servicing Banks
(GSBs), MDS check/ADA shall issued only for specific purpose until full implementation the
project, subject pertinent DBM issuances prescribing the validity the NCA.

Notice Transfer Allocation. The NTA shall the authority the regional and operating units pay
their operating expenses, purchases supplies and materials, acquisition PPE, accounts
payable, and other authorized disbursements through the issue MDS checks, ADA other
modes disbursements.

MDS check/ADA shall issued the ROs/OUs without the covering NTA. Hence, the total MDS
checks issued shall not exceed the total NTA received. NTA issued and credited the Regular
MDS Accounts ROs/OUs for their regular operations which are programmed for specific
month shall valid within the period prescribed under existing rules and regulations.
maximize the available NTAs the agency, the Common Fund System policy shall adopted
whereby cash allocation balances agencies under the Regular MDS Account may used cover
payment current year’s accounts payable i.e., goods and services which have been delivered
and accepted during the year charged against appropriations prior year/s, after satisfying
their regular operating requirements reflected their Monthly Cash Program.

NTA issued the Central Office and credited the Special MDS Accounts ROs/OUs for payment
retirement gratuity/terminal leave benefits well prior years’ accounts payable shall valid
within the period prescribed under existing rules and regulations. The NTA shall monitored
through the maintenance the Registry Allotment and Notice Transfer Allocation (RANTA)
(Appendix 31) the ROs/OUs.

Modes Disbursements. The different modes disbursements are follows: (a) checks (MDS
commercial checks), (b) cash (out cash advance granted authorized Disbursing Officer), (c)
advice debit the account, (d) tax remittance advice, (e) working Fund/CDC, and (f) direct
payment method.

Disbursements Check. Checks shall drawn only duly approved Disbursement Voucher (DV)
(Appendix 32) Payroll (Appendix 33). These shall used for payment regular expenses which
cannot conveniently nor practically paid using the ADA not authorized paid using the Petty
Cash Fund advances for operating expenses. Checks issued shall reported and recorded the
books accounts whether released unreleased the respective payees. There are two types
checks being issued government agencies follows:

Modified Disbursement System Checks are checks issued government agencies chargeable
against the account the Treasurer the Philippines, which are maintained with different
MDS-GSBs.

Commercial Checks are checks issued NGAs chargeable against the Agency Checking
Account with GSBs. These shall covered income/receipts authorized deposited with AGDBs.

Documentary Requirements. The documentary requirements for common government

transactions depending the nature expenses paid checks shall complied with prescribed
COA Circular No. 2012-001 dated June 14, 2012, amended COA Circular No. 2013-001 dated
January 10, 2013.

Illustrative: Accounting Entries for Disbursements Check

Account Title Account Code Debit Credit

Payment the following utility bills:

Meralco Bill 1,200

PLDT Bill 500

Maynilad Bill 200

Total 1,900

Journal Entry Voucher:

Water Expenses 50204010 200

Electricity Expenses 50204020 1,200

Telephone Expenses 50205020 500

Cash-Modified Disbursement

System (MDS), Regular 10104040 1,900

recognize payment bills from utility companies based individual checks issued.

Grant cash advance for travel amounting 1,000

Account Title Account Code Debit Credit

Advances Officers and Employees 19901040 1,000

Cash-Modified Disbursement

System (MDS), Regular 10104040 1,000

recognize granting travel allowance employees.

Advance payment Procurement Service amounting 2,500

Due from NGAs 10303010 2,500

Cash-Modified Disbursement

System (MDS), Regular 10104040 2,500

recognize advance payment Procurement Service for the purchase Office Equipment.

Establishment Petty Cash Fund (PCF) 20,000

Petty Cash Fund 10101020 20,000

Cash-Modified Disbursement

System (MDS), Regular 10104040 20,000

recognize establishment PCF cover petty expenses.

Replenishment PCF

Expenses charged the PCF:

Bond paper 14,000

Postage stamps 2,000

Total 16,000

Office Supplies Expenses 50203010 14,000

Postage and Courier Expenses 50205010 2,000

Cash-Modified Disbursement

System (MDS), Regular 10104040 16,000

recognize replenishment PCF based the Report Paid Petty Cash Vouchers (RPPCV) and SDs.

Remittance Government’s share:

Retirement and Life Insurance Premium 3,300

Pag-IBIG Contributions 500

PhilHealth Contributions 300

Total 4,100

Retirement and Life Insurance Premiums 50103010 3,300

Pag-IBIG Contributions 50103020 500

PhilHealth Contributions 50103030 300

Cash-Modified Disbursement System

(MDS), Regular 10104040 4,100

recognize remittance government’s share based individual checks issued GSIS, HDMF and
PHIC.

Remittance salary deductions:

Retirement and Life Insurance Premium 3,300

Pag-IBIG Contributions 500

PhilHealth Contributions 300

GSIS-Salary Loan 200

Employees' Association 100

Total 4,400
Journal Entry Vouchers:

Due GSIS 20201020 3,500

Due Pag-IBIG 20201030 500

Due PhilHealth 20201040 300

Other Payables 29999990 100

Cash-Modified Disbursement

System (MDS), Regular 10104040 4,400

recognize remittance salary deductions based individual checks issued Government Service
Insurance System (GSIS), Philippine Health Insurance Corporation (PHIC), Home
Development Mutual Fund (HDMF) and Employees’ Association.

Disbursements Cash. Cash disbursements constitute payments out cash advances granted
the regular and special disbursing officers for personal services, petty expenses and MOOE
for field operating requirements. All cash payments shall covered duly approved
DVs/payrolls/petty cash vouchers (PCVs). The cash advances may granted the
cashiers/disbursing officers/officials and employees cover the following: salaries and
wages, travels, special time-bound undertakings and petty operating expenses. The granting
and liquidation cash advances shall governed the following existing COA rules and
regulations and other pertinent issuances:

cash advance shall given unless for legally authorized specific purpose;

cash advance shall reported and liquidated soon the purpose for which was given has been
served;

additional cash advance shall allowed any official employee unless the previous cash
advance given him/her first settled/liquidated proper accounting thereof made;

Except for cash advance for official travel, officer employee shall granted cash advance
unless he/she properly bonded accordance with existing laws regulations. The amount cash
advance which may granted shall not exceed the maximum cash accountability covered
his/her bond;

Only permanently appointed officials shall designated disbursing officers;

Only duly appointed designated disbursing officer may perform disbursing functions.
Officers and employees who are given cash advances for official travel need not designated
Disbursing Officers;

Transfer cash advance from one accountable officer another shall not allowed; and
The cash advance shall used solely for specific legal purpose for which was granted. Under
circumstance shall used for encashment checks for liquidation previous cash advance. The
specific rules and regulations the granting, utilization and liquidation cash advances are
provided for under COA Circular No. 97-002 dated February 10, 1997, amended COA
Circular No. 2006-005 dated July 13, 2006.

Cash Advance for Payroll. Advances for Payroll shall granted Regular Disbursing Officers for
payment salaries, wages, honoraria, allowances and other personnel benefits officials and
employees. The Advances for Payroll shall not used for encashment checks for liquidation
previous other types cash advances. shall equal the net amount the processed payroll
corresponding the pay period. Liquidation the advances shall made within five (5) days
after the end the pay period. Any unclaimed salaries/allowances shall refunded and issued
official receipt close the account.

Documentary Requirements. The documentary requirements for Payroll Fund for salaries,
wages, allowances, honoraria and other similar expenses are provided under COA Circular
No. 2012-001 dated June 14, 2012, amended COA Circular No. 2013-001 dated January 10,
2013.

Illustrative: Accounting Entries for Granting and Liquidation Advances for Payroll and the
Set-up Salary Deductions and Due Officers and Employees

Set-up Due Officers and Employees and Salary Deductions

Assumptions:

Salaries and Wages 35,000

PERA 15,000

Total 50,000

Less: Salary Deductions

Withholding Tax 5,000

Life and Retirement

Premiums 3,000

Pag-IBIG premiums 500

PhilHealth premiums 600

GSIS Salary loan 200

Employees' Association 100 9,400

Net Amount 40,600

Account Title Account Code Debit Credit

Salaries and Wages-Regular 50101010 35,000

PERA 50102010 15,000

Due BIR 20201010 5,000

Due GSIS 20201020 3,200

Life and Retirement

Premiums 3,000

Salary Loan 200

Due Pag-IBIG 20201030 500

Due PhilHealth 20201040 600

Other Payables 29999990 100

Due Officers and Employees 20101020 40,600

recognize payable Officers and employees and set salary deductions

Granting Advances for Payroll

Account Title Account Code Debit Credit

Advances for Payroll 19901020 40,600

Cash-Modified Disbursement System

(MDS), Regular 10104040 40,600

record grant advances cover payment salaries and wages employees

Liquidation Payroll Fund

Account Title Account Code Debit Credit

Due Officers and Employees 20101020 40,600

Advances for Payroll 19901020 40,600

recognize liquidation Advances for Payroll based the RCDisb and SDs

Cash Advances for Operating Expenses Government Units without Complete Set Books
Accounts. Field/Extension/Satellite Offices are some the government units under the
central/regional/district offices without complete set books accounts. Those offices may
granted cash advances covering two months requirements for MOOE/authorized expenses
finance their operations. The cash advance shall granted the duly designated appointed
Disbursing Officers.

Documentary Requirements. The documentary requirements for the granting and

liquidation Cash Advances for Operating Expenses Government Units without Complete Set
Books Accounts are provided under COA Circular No. 2012-001 dated June 14, 2012,
amended COA Circular No. 2013-001 dated January 10, 2013.

Illustrative: Accounting Entries recorded the Central/ Regional/Division Office Books for
Advances for MOOE/Authorized Expenses Granted Government Units without Complete Set
Books Account

Central/Regional/Division Office Books

Assumptions:

Estimated Expenses for months requirements:

Office Supplies Expenses 10,000

Traveling Expenses 15,000

Water Expenses 8,000

Telephone Expenses 5,000

Electricity Expenses 12,000

Total 50,000

Account Title Account Code Debit Credit

Advances for Operating Expenses 19901010 50,000

Cash-Modified Disbursement

System (MDS), Regular 10104040 50,000

recognize granting cash advance field units without books accounts

Office Supplies Expenses 50203010 10,000

Traveling Expenses-Local 50201010 15,000

Water Expenses 50204010 8,000

Electricity Expenses 50204020 5,000

Telephone Expenses 50205020 12,000

Advances for Operating Expenses 19901010 50,000

recognize liquidation cash advance upon receipt the certified copies CDReg with paid DVs
and other supporting documents from field/extension/satellite offices/operating units.

Cash Advances for Travel. Section Executive Order (EO) No. 248 dated May 29, 1995,
amended No. 248A and No. 298 dated August 14, 1995 and March 23, 2004, respectively,
provide that travels shall cover only those that are urgent and extremely necessary, will
involve the minimum expenditure and are beneficial the agency concerned and/or the
country.

government fund shall utilized defray foreign travel expenses any government official
employee, except the case training, seminar conference abroad when the officials other
personnel the foreign mission cannot effectively represent the country therein, and travels
necessitated international commitments; provided that official employee, including
uniformed personnel the Department the Interior and Local Government (DILG) and
Department National Defense (DND) will sent foreign training, conferences attend
international commitments when they are due retire within one year after the said foreign
travel [Section 16(c) Fiscal Year (FY) 2012 GAA pertinent provisions the GAA for the Year].
Under Memorandum Circular No. dated October 2003 the Office the President, the grant
clothing allowance all categories trips suspended indefinitely.

Officials and employees authorized travel shall granted cash advance cover traveling
expenses. The amount granted shall accounted “Advances Officers and Employees”.
additional cash advance shall granted any official employee unless the previous cash
advance given him/her for travel first liquidated and accounted for the books. For local
travel, liquidation shall done within period days upon return the personnel’s workstation.
the other hand, cash advance for foreign travel shall liquidated within days upon return the
Philippines. The Liquidation Report (LR) (Appendix 44) shall prepared the
officers/employees concerned and submitted the Accounting Division/Unit with
appropriate SDs basis for JEV preparation. The excess cash advance shall refunded and shall
issued acknowledge receipt thereof. case the amount cash advance less than the travel
expenses incurred, the shall submitted liquidate the cash advance previously granted and
shall prepared claim reimbursement the deficiency amount.

Documentary Requirements. The documentary requirements for cash advance for travel
provided under 1.1.4 COA Circular No. 2012-001 dated June 14, 2012, amended COA
Circular No. 2013-001 dated January 10, 2013, are follows:

Granting Cash Advance

Local Travel

Office Order/Travel Order approved accordance with Section No. 298;

ii. Duly approved Itinerary Travel (IoT) (Appendix 45) and

iii. Certification from the accountant that the previous cash advance has been liquidated and
accounted for the books.

Foreign Travel

Office Order/Travel Order approved accordance with the provisions Sections and 459 dated
September 2005;

approved the Office the President the case the following officials:

Members the cabinet and officials equivalent rank

Heads agencies under attached the Office the President

The Chief Justice and Associate Justices the Supreme Court were exempted under
Memorandum Order No. dated July 31, 1986. Under E.O. No. 477 dated August 21, 1991, the
Chairmen and Commissioners the Constitutional Commissions, Chairman and Members the
Commission Human Rights, Ombudsman and Deputy Ombudsmen were also exempted
from securing prior approval from the connection with travels abroad.

approved the respective heads agencies the case other government officials and employees
regardless the length travel:

NGAs Department Secretaries their equivalent

State Universities and Colleges (SUCs) Chairman Commission Higher Education (CHED) the
case heads the SUCs and respective heads the case all other officials and employees

Technical and Vocational Schools Chairman Technical Education and Skills Development
Authority (TESDA) the case technical and vocational schools and respective heads the case
all other officials and employees

ii. Duly approved IT;

iii. Letter invitation host/sponsoring country/agency/organization;

iv. For plane fare, quotations three travel agencies its equivalent;

Flight itinerary issued the airline/ticketing office/travel agency;

vi. Copy the United Nations Development Programme (UNDP) rate for the daily subsistence
allowance (DSA) for the country destination for the computation DSA claimed;

vii. Document show the dollar peso exchange rate the date grant cash advance;

viii. Where applicable, authority from the claim representation expenses; and

ix. case seminars/trainings:

Invitation addressed the agency inviting participants (issued the foreign country)
Acceptance the nominee participants (issued the foreign country)

Programme Agenda and Logistics Information

Certification from the accountant that the previous cash advance has been liquidated and
accounted for the books.

Liquidation Cash Advance

For Local Travel

Paper/Electronic plane, boat bus tickets, boarding pass, terminal fee;

ii. Certificate Appearance/Attendance;

iii. Copy previously approved IT;

iv. Revised supplemental Office Order any proof supporting the change schedule;

Revised IT, the previous approved itinerary was not followed;

vi. Certification the Head Agency the absolute necessity the expenses together with the
corresponding bills receipts, the expenses incurred for official travel exceeded the
prescribed rate per day (certification affidavit loss shall not considered appropriate
replacement for the required hotel/lodging bills and receipts);

vii. (Appendix 44);

viii. Reimbursement Expense Receipt (RER) (Appendix 46);

ix. case refund excess cash advance;

Certificate Travel Completed (CTC) (Appendix 47); and

xi. Hotel room/lodging bills with official receipts the case official travel places within 50-
kilometer radius from the last city municipality covered the Metro Manila Area, the city
municipality where their permanent official station located the case those outside the Metro
Manila Area, the travel allowances being claimed include the hotel room/lodging rate.

For Foreign Travel

Paper/Electronic plane, boarding pass, boat bus ticket, terminal fee;

ii. Certificate Appearance/Attendance for training/seminar participation;

iii. Bill/Receipts for non-commutable representation expenses approved the President

under Section No. 248;

iv. For reimbursement actual travel expenses excess the prescribed rate No. 298):
Approval the President

Certification from the Head Agency that absolutely necessary

Hotel room bills with official receipts (certification affidavit loss shall not considered
appropriate replacement for the required hotel/lodging bills and receipts)

Revised IT, applicable;

vi. Narrative report trip undertaken/Report Participation;

vii. case refund excess cash advance;

viii. CTC; and

ix. LR.

Illustrative: Accounting Entries for the Granting and Liquidation Advances Officers and
Employees covering Official Travel

Account Title Account Code Debit Credit

Assumption: Cash advance for local travel Officers employees amounting 2,000.

Advances Officers and Employees 19901040 2,000

Cash-Modified Disbursement System

(MDS), Regular 10104040 2,000

recognize granting cash advance for local travel officers and employees based duly
approved and paid DV, Authority Travel and IT.

Traveling Expenses-Local 50201010 2,000

Advances Officers and Employees 19901040 2,000

recognize liquidation cash advance for local travel upon receipt and supporting documents.

Account Title Account Code Debit Credit

Assumption: Cash advance for Foreign Travel officers and employees amounting 200,000

Advances Officers and Employees 19901040 200,000

Training Expenses 50202010 80,000

Cash-Modified Disbursement System

(MDS), Regular 10104040 280,000

recognize granting cash advance for training abroad

Traveling Expenses-Foreign 50201020 200,000

Advances Officers and Employees 19901040 200,000

recognize liquidation cash advance for training abroad upon receipt and supporting
documents.

Cash Advance for Specific Purpose/Time-Bound Undertaking. Cash advance for special
purpose/time-bound undertaking shall granted only duly authorized accountable
officer/special disbursing officer. shall accounted for the books accounts “Advances Special
Disbursing Officer.” shall liquidated the accountable officer within specified period. Any
unutilized cash advance shall refunded and shall issued acknowledge collection thereof.

Documentary Requirements. The documentary requirements for cash advance for specific
purpose/time-bound undertaking are provided under COA Circular No. 2012- 001 dated
June 14, 2012, amended COA Circular No. 2013-001 dated January 10, 2013.

Illustrative: Accounting Entries for Advances Special Disbursing Officers

Assumptions:

Estimated Expenses for the celebration agency anniversary:

Office Supplies Expenses 10,000

Traveling Expenses 15,000

Printing and Publication Expenses 5,000

Total 30,000

Account Title Account Code Debit Credit

Advances Special Disbursing Officer 19901030 30,000

Cash-Modified Disbursement

System (MDS), Regular 10104040 30,000

recognize the granting cash advance for the anniversary celebration

Traveling Expenses-Local 50201010 15,000

Office Supplies Expenses 50203010 10,000

Printing and Publication Expenses 50299020 5,000

Advances Special Disbursing Officer 19901030 30,000

recognize the liquidation cash advance after the anniversary celebration based the RCDisb
and supporting documents submitted the Special Disbursing Officer.

Cash Advance for Petty Operating Expenses. The Petty Cash Fund (PCF) set shall sufficient
for the recurring petty operating expenses the agency for one month. shall maintained using
the Imprest System. All replenishments shall directly charged the expense account and all
times, the PCF shall equal the total cash hand and the unreplenished expenses. The PCF
shall replenished soon disbursements reach least 75% needed. The following are the
accounting policies regarding cash advance for PCF:

The fund shall kept separately from the regular cash advances/collections and shall not
used for payment regular expenses such rentals, subscriptions, light and water bills,
purchase supplies and materials for stock purposes, and the like. Payments out PCF, which
shall made through Petty Cash Voucher (PCV) (Appendix 48), should allowed only for
amounts not exceeding P15,000 for each transaction, except when higher amount allowed
law and/or specific authority the COA. Splitting transactions avoid exceeding the ceiling
shall not allowed. All disbursements out PCF shall covered duly accomplished and approved
PCV supported cash invoices, ORs other evidence disbursements;

The unused balance the PCF shall not closed/refunded the end the year. The fund shall
closed only upon termination, separation, retirement dismissal the Petty Cash Fund
Custodian (PCFC), who turn shall refund any balance close his/her cash accountability; and

the end the year, the PCFC shall submit the Accounting Division/Unit all unreplenished
Petty Cash Vouchers (PCVs) for recording the books accounts.

Documentary Requirements. The documentary requirements for PCF provided under COA
Circular No. 2012-001 dated June 14, 2012, amended COA Circular No. 2013-001 dated
January 10, 2013, and under this Chapter, are follows:

Granting Petty Cash Advance

Authority accountable officer issued the Head the Agency his/her duly authorized
representatives indicating the maximum accountability and purpose cash advance (for
initial cash advance);

Certification from the Accountant that previous cash advances have been liquidated and
accounted for the books; and

Approved application for bond and/or Fidelity Bond for the year for cash accountability
5,001 more provided under Treasury Circular No. 02-2009 dated August 2009.

Additional Documentary Requirements for initial cash advances

Approved estimates petty expenses for one month; and

Copy policy for maintaining PCF under the imprest system

Liquidation PCF

Report Paid Petty Cash Vouchers (RPPCV) (Appendix 49);

Approved purchase request with certificate Emergency Purchase necessary;

Bill, receipts, sales invoices

Inspection and Acceptance Report (IAR) (Appendix 62);

Waste Materials Report (WMR) (Appendix 65) case replacement/repair;

Approved Trip Ticket, for gasoline/fuel expenses;

Canvass from least three suppliers for purchases involving P1,000 and above, except for
purchases made while official travel;

Summary/Abstract Canvass;

PCVs duly accomplished and signed;

10. case refund;

11. For reimbursement toll receipts; and

Toll Receipts

ii. Trip Tickets

12. Such other supporting document that may required.

Illustrative: Accounting Entries for Disbursements Out Petty Cash

Assumptions:

Estimated Expenses:

Traveling Expenses P10,000

Office Supplies Expenses 8,000

Postage and Courier Expenses 5,000

Fuel, Oil and Lubricants Expenses 2,000

Other MOOE 5,000

Total 30,000

Account Title Account Code Debit Credit

Petty Cash 10101020 30,000

Cash-Modified Disbursement

System (MDS), Regular 10104040 30,000

record the establishment PCF

Traveling Expense-Local 50201010 10,000

Office Supplies Expenses 50203010 8,000

Fuel, Oil and Lubricants 50203090 2,000

Postage and Courier Expenses 50205010 5,000

Other Maintenance and Operating

Expenses 50299990 4,800

Cash-Modified Disbursement

System (MDS), Regular 10104040 29,800

record the replenishment Petty Cash based the DV, RPPCVs and SDs

Cash-Collecting Officer 10101010 200

Petty Cash 10101020 200

record return unused PCF upon retirement, resignation, separation and termination the
Petty Cash Custodian based the OR.

Assume the following are the unreplenished

PCVs December 31:

Office Supplies 300

Traveling Expenses-Local 400

Total 700

Account Title Account Code Debit Credit

Traveling Expenses-Local 50201010 300

Office Supplies Expenses 50203010 400

Petty Cash 10101020 700

record the unreplenished petty cash the end the year.

Cash Advances for Petty Cash Fund Government Units without Complete Set Books
Accounts. Government Units without complete set books accounts may granted cash
advance covering two months operating requirements for authorized petty and other
miscellaneous expenses finance their operations. The cash advance shall granted the duly
designated appointed Disbursing Officer.

Accounting Records, Forms and Reports Prepared and Maintained. The PCFC shall maintain
the Petty Cash Fund Register (PCFReg) (Appendix 51) monitor/summarize the PCF
established/replenished and the disbursements charged thereto. photocopy this Register
together with original PCV and its SDs shall submitted the Accounting Division/Unit the
agency’s respective Central/Regional/Division Office serve basis the preparation the
replenish the payments made the JEV, year-end, replenishment made.

Accounting for Cash Shortage/Overage Disbursing Officer. Cash overage discovered the
Auditor that cannot satisfactorily explained the Disbursing Officer shall forfeited favor the
government and official receipt shall issued the Collecting Officer/Cashier. The cash overage
shall taken Miscellaneous Income. Cash shortage which not restituted the Disbursing Officer
despite demand writing the Auditor shall taken receivable from the Disbursing Officer.

Illustrative: Accounting Entries for Cash Overage/Shortage Disbursing Officer

Cash Overage

Assumption: Cash overage Disbursing Officer amounting 2,000

Account Title Account Code Debit Credit

Cash-Collecting Officers 10101010 2,000

Miscellaneous Income 40609990 2,000

recognize forfeiture cash overage the Disbursing Officer

Cash-Treasury/Agency Deposit, Regular 10104010 2,000

Cash-Collecting Officer 10101010 2,000

recognize the remittance forfeited cash overage the BTr

Cash Shortage

Assumption: Cash shortage Disbursing Officer amounting 2,000

Due from Officers and Employees 10305020 xxx

Advances for Operating Expenses/ 19901010/

Advances for Payroll/ 19901020/

Advances Special Disbursing Officer 19901030 xxx

recognize cash shortage Disbursing Officer

Cash-Collecting Officers 10101010 xxx

Due from Officers and Employees 10305020 xxx

recognize restitution cash shortage.

Cash-Treasury/Agency Deposit, Regular 10104010 xxx

Cash-Collecting Officer 10101010 xxx

recognize the remittance restituted cash shortage the BTr

Accounting for Cancelled Checks. Checks may cancelled when they become stale, voided
spoiled. The depository bank considers check stale, has been outstanding for over six
months from date issue prescribed. stale, voided spoiled check shall marked cancelled its
face and reported follows:

Voided, spoiled unclaimed stale checks with the Cashier shall reported cancelled the List
Unreleased Checks that will attached the RCI.

New checks may issued for the replacement stale/spoiled checks the hands the payees
holders due course, upon submission the stale/spoiled checks the Accounting Division/Unit.
certified copy the previously paid DVs shall attached the request for replacement. JEV shall
prepared take the cancellation. The replacement check shall reported the RCI.

Illustrative Accounting Entries for Cancelled Checks

Cancellation and Replacement Stale/Voided/Spoiled MDS check issued the current year

Account Title Account Code Debit Credit

Cash-Modified Disbursement System

(MDS), Regular 10104040 xxx

Accounts Payable 20101010 xxx

recognize the cancellation stale/voided/spoiled MDS checks

Accounts Payable 20101010 xxx

Cash-Modified Disbursement System

(MDS), Regular 10104040 xxx

recognize the replacement stale/voided/spoiled MDS checks.

Cash-Modified Disbursement System

(MDS), Regular 10104040 xxx

Appropriate Account xxxxxxxx xxx

recognize the cancellation stale/voided/spoiled MDS checks without replacement

Cancellation and Replacement Stale/Voided/Spoiled MDS check issued the prior year

Account Title Account Code Debit Credit

Accumulated Surplus/(Deficit) 30101010 xxx

Accounts Payable 20101010 xxx

recognize the cancellation stale/voided/spoiled MDS checks

Accounts Payable 20101010 xxx

Cash-Modified Disbursement System

(MDS), Regular 10104040 xxx

recognize the replacement stale/voided/spoiled MDS checks

Accumulated Surplus/(Deficit) 30101010 xxx

Appropriate Account xxxxxxxx xxx

recognize the cancellation stale/voided/spoiled MDS checks without replacement

Cancellation and Replacement Stale/Voided/Spoiled commercial check issued the current

and prior year

Account Title Account Code Debit Credit

Cash Bank-Local Currency, Current

Account 10102020 xxx

Accounts Payable 20101010 xxx

recognize the cancellation stale/voided/spoiled commercial checks

Accounts Payable 20101010 xxx

Cash Bank-Local Currency, Current

Account 10102020 xxx

recognize the replacement stale/voided/spoiled commercial checks

Accumulated Surplus/(Deficit) 30101010 xxx

Appropriate Account xxxxxxxx xxx

recognize the cancellation stale/voided/spoiled commercial checks without replacement.

Accounting for Disallowances. Disallowances shall taken the books accounts only when they
become final and executory. The Accountant shall prepare the JEV take the Receivable-
Disallowances/Charges and credit the appropriate account for the current year
Accumulated Surplus/(Deficit) account pertaining expenses previous years.

Cash settlement disallowances shall acknowledged through the issue official receipt and
reported the Cashier the RCD.

Illustrative: Accounting Entries for Disallowances

Recording disallowances for current year’s transaction

Assume that the entity incurred overpayment Office Supplies:

Amount paid 100,000

Should 90,000

Difference 10,000

Account Title Account Code Debit Credit

Receivables-Disallowances/Charges 10305010 P10,000

Office Supplies Expense 50203010 P10,000

recognize the overpayment purchased office supplies directly issued end-user

Cash-Collecting Officers 10101010 P10,000

Receivables-Disallowances/Charges 10305010 P10,000

recognize the settlement disallowance

Cash-Treasury/Agency Deposit, Regular 10104010 P10,000

Cash-Collecting Officers 10101010 P10,000

recognize the deposit collection

Recording disallowance for prior year’s transaction

Account Title Account Code Debit Credit

Receivables-Disallowances/Charges 10305010 10,000

Accumulated Surplus/(Deficit) 30101010 10,000

recognize the overpayment office supplies purchased during the prior year

Cash-Collecting Officers 10101010 10,000

Receivables-Disallowances/Charges 10305010 10,000

recognize the settlement disallowance

Cash-Treasury/Agency Deposit, Regular 10104010

Cash-Collecting Officers 10101010

recognize the deposit collection

Accounting for Overpayments. Sometimes overpayments even double payment

expenditures happen agencies. These could avoided with the institution proper controls but
some could not avoided because built-in procedures. One example the payment payrolls.
Payrolls are prepared advance and some agencies pay their employees through the banking
system. All these are done before reports attendance are submitted, making impossible
know the exact amount paid case there are absences without pay during the pay periods.
case overpayments, refunds shall demanded the employees concerned.

Illustrative Accounting Entries for Overpayments

Overpayment taken receivable

Account Title Account Code Debit Credit

Due from Officers and Employees 10305020 xxx

Salaries and Wages-Regular 50101010 xxx

recognize overpayment salaries and wages (When overpayment ascertained)

Cash-Collecting Officers 10101010 xxx

Due from Officers and Employees 10305020 xxx

recognize receipt refund

Cash-Treasury/Agency Deposit, Regular 10104010 xxx

Cash-Collecting Officers 10101010 xxx

recognize the deposit collection

Refund overpayment not taken receivable

Cash-Collecting Officers 10101010 xxx

Salaries and Wages-Regular 50101010 xxx

recognize receipt refund Salaries and Wages-Regular during the current year

Cash-Treasury/Agency Deposit, Regular 10104010 xxx

Cash-Collecting Officers 10101010 xxx

recognize the deposit collection

Cash-Collecting Officers 10101010 xxx

Accumulated Surplus/(Deficit) 30101010 xxx

recognize receipt refund overpayment the ensuing year

Cash-Treasury/Agency Deposit, Regular 10104010 xxx

Cash-Collecting Officer 10101010 xxx

recognize the deposit collection

Disbursements through List Due and Demandable Accounts Payable- Advice Debit Account.
The use LDDAP-ADA mode settlement accounts payable due the creditors/payees all NGAs
and their OUs was prescribed under DBM Circular Letter No. 2013-16 dated December 23,
2013 which implemented the ExMDPS, amended DBM Circular Letter Nos. 2013-16A and
2013-16B dated February 2014 and February 25, 2014, respectively. The following are
excluded from the implementation ExMDPS:

Payment Terminal Leave and Retirement Gratuity (TL/RG) benefits which governed
Republic Act No. 10154 implemented CSC Resolution No.1300237 and Budget Circular No.
2013-1;

Remittance social insurance premium contributions government corporations, such GSIS,

PHILHEALTH, and HDMF;

Payment Accounts Payable utility companies, such as: supplier petroleum, oil and
lubricants, water, illumination and power services, telephone, internet and other
communication services; and

Other payables which cannot conveniently nor practicably paid using the ADA.

Signatories the List Due and Demandable Accounts Payable-Advice Debit Account. The
LDDAP (Box shall certified correct the Chief Accountant/Head Accounting Division/Unit
and approved the Head Agency/Authorized Official. The ADA (Box II) shall signed the
Cash/Treasury Unit Authorized Signatory and countersigned the Head Agency/Authorized
Signatory. The signatories Box shall bonded.
Accounting Books, Records, Forms and Reports Prepared and Maintained. All LDDAP-ADA
prepared/issued during the day shall recorded chronologically the CkADADRec (Appendix
34) maintained the Cash/Treasury Unit. The dates the LDDAP-ADAs were actually delivered
the MDS-GSB shall indicated the appropriate column provided for the CkADADRec. The
RADAI shall prepared the Cash/Treasury Unit daily. All approved LDDAP-ADA including
those not yet delivered the MDS-GSB shall included the RADAI. The RADAI together with the
original copies the DVs and other SDs shall submitted the Accounting Division/Unit for the
preparation JEV.

Monitoring Receipt Validated LDDAP-ADA and Official Receipt other Acceptable Evidence
Receipt Payment. The Cash/Treasury Unit shall monitor the receipt the validated LDDAP-
ADA from the MDS-GSB and the issue Official Receipt (OR) other acceptable evidence
receipt payments the creditors/payees.

Recording LDDAP-ADA Issued/Invalidated. The Head the Accounting Division/Unit shall

prepare JEV and credit the “Cash-Modified Disbursement System (MDS), Regular” account
upon receipt from the Cash/Treasury Unit the RADAI supported with and SDs. The JEV shall
recorded the ADA Disbursements Journal (ADADJ) (Appendix 52).

LLDAP-ADA may invalidated due any inconsistency information (i.e., bank branch, account
name/number) between the bank records and LDDAP-ADA errors stated item 8.0 DBM
Circular Letter 2013-16 dated December 23, 2014. invalidated ADA shall reported follows:

New LDDAP-ADA may issued for the replacement invalidated LDDAP-ADA, upon
submission the validated LDDAP-ADA indicating non-payment creditors/payees due any
inconsistency information (i.e., bank branch, account name/number) the Accounting
Division/Unit the Cash/Treasury Unit. certified copy the previously paid DVs shall attached
the request for replacement.

JEV shall prepared take the cancellation the invalidated LDDAP-ADA. The replacement
LDDAP-ADA shall reported the RADAI.

Illustrative Accounting Entries for Disbursements through LDDAP-ADA

Particulars Account Code Debit Credit

Upon set payables Suppliers and Contractors

Buildings 10604010 80,000

Accounts Payable 20101010 80,000

set payables contractors and suppliers based approved DVs

Payment through ADA

Accounts Payable 20101010 80,000

Cash-Modified Disbursement System

(MDS), Regular 10104040 80,000

recognize payment payables suppliers contractors through ADA

Payment salaries through ATM

Salaries and Wages 50101010 35,000

PERA 50102010 15,000

Due BIR 20201010 5,000

Due GSIS 20201020 3,200

Due Pag-IBIG 20201030 500

Due PhilHealth 20201040 600

Other Payables 29999990 100

Due Officers and Employees 20101020 40,600

recognize expenses for salaries and wages paid through ATM

Cash Bank-Local Currency, Current

Account 10102020 40,600

Cash-Modified Disbursement

System (MDS), Regular 10104040 40,600

recognize deposit for salaries and wages paid through ATM

Due Officers and Employees 20101020 40,600

Cash Bank-Local Currency,

Current Account 10102020 40,600

recognize payment salaries and wages through ATM

Granting Payroll Fund

Assumptions:

Salaries and Wages 35,000

PERA 15,000
Total 50,000

Less: Salary Deductions

Withholding Tax 5,000

Life and Retirement

Premiums 3,000

Pag-IBIG premiums 500

PhilHealth premiums 600

GSIS Salary loan 200

Employees' Association 100

Net Amount 40,600

Journal entry

Particulars Account Code Debit Credit

Advances for Payroll 19901020 40,600

Cash-Modified Disbursement System

(MDS), Regular 10104040 40,600

recognize granting cash advance for payroll based duly approved payroll through ADA

Payment for delivery supplies and materials for consumption

Office Supplies Inventory 10404010 2,500

Cash-Modified Disbursement System

(MDS), Regular 10104040 2,500

recognize payment for the delivery supplies and materials based Delivery Receipt No.
12451

Payment rent

Prepaid Rent 19902020 1,300

Cash-Modified Disbursement System

(MDS), Regular 10104040 1,300

recognize payment one year rent photocopying machine (July, 2015– June, 2016)
Advances Contractors

Advances Contractors 19902010 8,000

Cash-Modified Disbursement System

(MDS), Regular 10104040 8,000

recognize 15% mobilization fees contractors recouped from progress billings

Payment Accounts Payable

Gross 40,000

Less: Withholding Tax (VAT) 3,600

Net 36,400

Particulars Account Code Debit Credit

Accounts Payable 20101010 P40,000

Due BIR 20201010 3,600

Cash-Modified Disbursement System

(MDS), Regular 10104040 36,400

recognize payment payables based duly approved and SDs

Disbursements Through electronic Modified Disbursement System part the Modified

Disbursement Scheme. part the implementation the Treasury Single Account (TSA) system
for government disbursement, the electronic Modified Disbursement System (eMDS) has
been adopted one the modes disbursement under Joint Administrative Order (JAO) No.
2015-1 dated March 12, 2015 the DBM and DOF. This facilitate efficient and prompt
reconciliation spending agencies’ disbursements vis-à-vis the accounts the BTr maintained
the LBP Authorized Government Servicing Bank (AGSB).

This JAO shall apply all spending agencies, offices and instrumentalities under the Executive
Branch, including SUCs, together with other Executive Offices using LBP GSB. The Judicial
Branch, the Legislative Branch, Constitutional Offices, and all other Agencies, Offices and
Instrumentalities banking with LBP and therefore maintaining MDS sub-accounts with said
bank are likewise covered the JAO for have holistic view the budgetary transactions all
spending agencies. The policy guidelines are follows:

Heads Departments, Bureaus, Offices and other instrumentalities under the Executive
Branch, maintaining MDS sub-accounts with LBP, including SUCs, together with other
Executive Offices, are enjoined enroll and subscribe the eMDS perform selected MDS
transactions online; and monitor disbursements and generate MDS reports under the
Government’s MDS;

Enrolment the eMDS shall free charge; and

All other spending agencies, offices, and instrumentalities government maintaining MDS
sub-accounts with GSBs other than LBP shall continue observe the current procedure the
MDS System, unless they voluntarily transfer their accounts with LBP avail the latter’s eMDS
facility until after enrolment and subscription the eMDS upon amendment repeal
Memorandum Order Nos. 276 (s. 1990) and/or (s. 1994).

Disbursements through Cashless Purchase Card System. The CPC System was prescribed
alternative mode payment for goods and services under Joint Memorandum Circular (JMC)
No. 2014-1 dated May 15, 2014 the Department National Defense (DND), Armed Forces the
Philippines (AFP) and the DBM. The general guidelines the implementation the CPC System
are follows:

The CPC System implemented participating agencies mode procure specific eligible items
through the use electronic card. The CPC functions similarly credit card and shall only used
for pre-identified items within body limits mutually agreed upon members the Steering
Committee. shall also used only with specific merchant groups already enumerated under
agreement with the credit card company.

Only individuals recommended the Program Administrator and authorized the Steering
Committee shall allowed use the CPC and pre-identified items within monthly limits set
levels mutually agreed upon members the Steering Committee. The CPC shall likewise used
only with specific merchant groups already enumerated under agreement with the credit
card company.

Only individuals recommended the Program Administrator and authorized the Steering
Committee shall allowed use the CPC predetermined monthly purchase limits. Authorized
individuals shall permanent employees the participating agencies and shall, much possible
involved the procurement goods and services their unit/office.

Individual credit limits which have been approved the Steering Committee may only
increased and/or amended the Steering Committee.

Approvals increased individual credit limits well additional personnel participating

agencies entitled the CPC shall only granted after three (3) months pilot testing
implementation the CPCS.

the event the participating agencies determine that additional personnel should entitled the
CPC case its existing cardholders need replaced, the Program Administrator shall inform the
Steering Committee the writing about the changes proposed. The Program Administrator
must support these changes with written explanation why the changes are being sought.
Chief Offices the Participating Agencies who approved CPC are jointly accountable with
their Special Disbursing Officers.

The CPC System shall not, any way, supplant, replace revise the procurement policies and
procedures prescribed under No. 9184 otherwise known the Procurement Law.

The total amount authorized covered the CPC shall form part the cash advance levels the
participating agencies. The CPC shall not used nor intended allow justify the increase cash
advance levels for the participating agencies.

The CPC shall initially used for purchase small value non-common use items which are not
available with the Procurement Service.

The cost purchasing unauthorized items using the CPC shall for the personal account the
individual who undertook the transaction. This without prejudice the suspension the
cardholder’s privilege use the issued CPC and other penalties which the participating
agencies may impose.

case the participating agencies find specific items which disputes having been procured
(based the receipts the individual CPC holder has), they shall immediately inform CCC this
discrepancy.

The participating agencies shall ensure the timely payment the CPC billing received from
the CCC. the event that delays payment the CPC billings occur, any additional charges such
late payment charges/penalties shall charged against the personal account the employee
directly responsible for the cause such delays. case shall the NCA issued used settle late
payment charges.

The existing disbursement policies and procedures the use NCA and the Common Fund
System shall continue apply where the CPC System concerned.

Payment the CCC for legitimate purchases made out the CPC shall consistent with the
existing MDS disbursement procedures pursuant DMB Circular Letter No. 2013-16.

The specific guidelines the implementation the CPC System are provided under Item 5.0
DND-AFP-DBM JMC No. 2014-1 dated May 15, 2014, are follows:

Once the allotment made available the participating agencies, the latter shall obligate
amount under supplies, materials and other services corresponding the amount allocated
for the CPC system.

The CPC holder shall entitled purchase goods from accredited merchants once the
obligation for the CPC has been made.

The CPC holder shall secure the charge slips/receipts issued the accredited merchant and
file the same for the purposes submission the agency accounting units. These documents
shall also used for inspection actual goods purchased and payments the CCC.
Inspection and acceptance the procured items shall comply with the existing procedures
adopted the agency for the purpose.

The accounting offices/units shall ensure that procured items are within the items
enumerated Annex the above-mentioned JMC and consistent with the limitations under
Annex the same JMC.

Upon receipt the CCC billing statement, the agency accounting units shall compare the totals
the charge slips against the amounts reflected the billing statement and confirm the
correctness the same.

The Finance Service Unit the agency concerned shall ensure that payments are made before
the dates specified the CCC billing statement.

The cost items being disputed shall likewise included the payment made. Adjustments
payments, required, shall made the subsequent billing cycle.

the event the CPC lost stolen the cardholder must immediately notify the Program
Administrator. must likewise responsible reporting the CCC via phone electronic modes, the
loss the card prevent unauthorized utilization the same.

The privilege the CPC holder procure goods through CPC shall temporarily suspended case
his card stolen lost.

The Program Administrator shall determine whether the CPC holder was negligent and/or
culpable the loss his CPC. shall recommend remedial steps case notes procedural gaps;
permanent suspension the privilege restoration the same. all instances, the Program
Administrator shall inform the Steering Committee the measures taken.

The CPC person shall held accountable terms payment for the purchases made against the
card during the period was lost stolen.

Disbursements through Tax Remittance Advice. The Tax Remittance Advice (TRA) refers
serially-numbered document prescribed the DBM that should used the NGAs the remittance
withheld taxes funds coming from DBM. With the inclusion all NGAs among the taxpayers
who are mandated use the Electronic Filing and Payment System (eFPS) under the Bureau
Internal Revenue Regulations No. 1-2013 dated January 23, 2013, the TRA accomplished
on-line which called the Electronic TRA (eTRA). The eTRA certified correct the Chief
Accountant/Head Accounting Division/Unit and approved the Head Agency/Authorized
Official, and used record the remittance taxes withheld the BIR. The same document shall
the basis for the BIR and the BTr draw JEV record the tax collection and deposit their
respective books accounts. The JEV shall recorded the GJ.

The eTRA shall supported with the Summary Taxes Withheld (STW) certified the Chief
Accountant. The STW the document which summarizes the type and amount taxes withheld.
The Accounting Division/Unit shall maintain monitor remittances taxes withheld from
individual employees, suppliers and contractors.
Illustrative Accounting Entries for Remittance Taxes Withheld through TRA

Particulars Account Code Debit Credit

Agency Books

Constructive Receipt NCA for TRA

Cash-Tax Remittance Advice 10104070 5,000

Subsidy from National Government 40301010 5,000

recognize constructive receipt NCA for TRA

Remittance taxes withheld through TRA

Due BIR 20201010 5,000

Cash-Tax Remittance Advice 10104070 5,000

recognize remittance taxes withheld through TRA

BIR Books

Constructive Receipt Tax Revenue through TRA from the NGAs

Cash-Tax Remittance Advice 10104070 5,000

Income Tax 40101010 5,000

recognize constructive receipt tax revenue based the TRA received from the agency

BTr Books

Constructive Utilization NCA for TRA the remitting NGAs

Subsidy NGAs 50214010 5,000

Cash-Tax Remittance Advice 10104070 5,000

recognize remittance taxes withheld the agency based the TRA received

Disbursements Foreign-based Government Agencies. CDC authorization issued the DBM

DFA and other agencies with foreign posts utilize their collections retained their Foreign
Service Posts (FSPs) cover operating requirements, but not exceed the released allotment
the said post. (National Budget Circular No. 535 dated December 29, 2011). The following
are the accounting policies regarding disbursements Foreign-based Government Agencies
(FBGAs):
Based the proposed budget FSP/Foreign Attaché, Working Fund shall established cover
payment and MOOE. The Finance Officer shall required maintain CBReg and CDReg monitor
and control the Working Fund.

All disbursements from the Working Fund shall covered duly approved DV/Payroll with the
required SDs. the end the month, the Finance Officer FSPs/Foreign Attachés shall prepare
and submit RCDisb together with the SDs the Central Office concerned for preparation JEV
record the liquidation made the accountable officer. The JEV shall recorded the CkDJ and
CDJ based the CBReg and CDReg, respectively.

Cash Disbursement Ceiling. The accounting entries for the collection revenue of, and the
constructive receipt disbursement authority to, Foreign Service Posts (FSPs) DFA and DOLE
are follows:

DFA and DOLE’s Books

Account Title Account Code Debit Credit

Cash-Collecting Officers 10101010 P100,000

Passport and Visa Fees 40201120 P100,000

recognize collection revenue FSPs

Cash Bank-Foreign Currency,

Current Account 10103020 P100,000

Cash-Collecting Officers 10101010 P100,000

recognize deposit collections authorized servicing bank the FSPs

Cash-Constructive Income

Remittance 10104080 P80,000

Subsidy from National

Government 40301010 P80,000

recognize receipt CDC from DBM

Quarters Allowance-Civilian 50102070 P50,000

Rents-Buildings and Structures 50299050 30,000

Cash Bank-Foreign

Currency, Current Account 10103020 P80,000

recognize payment expenses charged CDC

BTr Books:

Account Title Account Code Debit Credit

Subsidy NGAs 50214010 P80,000

Cash-Constructive Income

Remittance 10104080 P80,000

recognize constructive receipt remitted collections FSPs and disbursements charged the
issued CDCs FSPs

Disbursements through Direct Payment Method. This type disbursement should covered
NCAA. This mode disbursement made through the JEV issued the BTr the
availing/implementing agency record payment goods and services made directly the
lending institution the supplier contractor. The JEV shall recorded the GJ.

Illustrative Accounting Entries for Disbursements through Direct Payment Scheme Loan
Availment

Particulars Account Code Debit Credit

Agency Books

Assumption: The Agency procure PPE items through direct payment scheme amounting
P500,000.

Communication Equipment 10605070 P500,000

Accounts Payable 20101010 500,000

recognize receipt PPE procured through the direct payment scheme

Accounts Payable 20101010 500,000

Subsidy from National Government 40301010 500,000

recognize receipt NCAA and payment payables based the WA/advice payment any proof
disbursement received from the FLI/DP

BTR Books

Subsidy NGAs 50214010 500,000

Loans Payable-Foreign 20102050 500,000

recognize the replenishments made AGSB negotiated MDS- checks and payments account
the NGA.

Thank you..