ACCOUNTING FOR

BUDGETARY ACCOUNTS
 BUDGETARY AND
FINANCIAL
ACCOUNTABILITY
REPORTS (BFARS)
 • GAARD, UACS, PPSAS AND PIB.
• Prescribed by the BDM and COA, to effectively
report, monitor and/or evaluate agency
performance versus plans and targets which shall
serve as a basis foe sound policy decisions.
• COA AND BDM joint circular No. 2014-1 .
• Dated July 2,2014.

ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 REPORTS OR DOCUMENTS
REQUIRED FOR ADMISSION
TO THE BDM AND COA
 1. Quarterly Physical Report of Operation- BAR No. 1
2. Statement of Appropriations, Allotments,
Obligations, Disbursements and Balances
(SAAODB)-FAR No. 1
It is represented by the following:
• Fund Authorization
• Major Final Output (MFO)
• Program/Activity/Project
• Major Programs/Projects

ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 3. Summary of Appropriations, Allotments,
Obligations, Disbursements and Balances by Object of
Expenditures (SAAODBOE)FAR No. 1-A

4. List Allotments and Sub-Allotments (LASA)-FAR

No.1-B

5. Statement of Approved Budget, Utilizations,

Disbursements and Balances (SABUDB)-FAR No. 2
(for off-budget fund)

ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 6. Summary of Approved Budget, Utilizations,
Disbursements and Balances by Object of
Expenditures (SABUDBOE)-
FAR-No.2-A (for off-budget fund)

7. Aging of Due and Demandable Obligation

(ADDO)- FAR No. 3

ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 8. Monthly Report of Disbursements (MRD)-FAR-No.
4

Following Disbursements Authorities:

• Notice of Cash Allocation
• NCA for Working Fund Issued by Bureau of
Treasury as an advance funding from loan/grant
proceeds of an agency.
• Tax Remittance Adviser (TRA) issued.
• Non-Cash Availment Authority (NCAA): and etc.
ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 9. Quarterly Report of Revenue and Other
Receipts (QRROR)-FAR No. 5

ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 To allow sufficient time in the consolidation of quarterly
reports, the ff. procedures shall be observed:

• Lower Operating Units (within 5 days after the end of

each quarter)
• Regional Office ( within 10 days after the end of each
quarter)
• Agency Central Office (within 30 days after the end of
each quarter)
ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 GENERAL
GUIDELINES ON THE
RELEASE
OF FUNDS

ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 National government agencies are authorized to
incur overdraft in allotment for obligations
corresponding to the actual requirement of their
regular operations chargeable against the GAA, as
re-enacted

ACCOUNTING FOR
BUDGETARY
ACCOUNTS
• Re – enacted budget pertains to the budget of
the preceding year which, by operation of
laws, becomes re – enacted and shall remain in
force in effect until the general appropriation
bill for the current year is passed by Congress.

• Upon the GAA’s effective date, the Allotment

Release Program (ARP) may be established.
 The Allotment Release Program (ARP), which
determines the level of allotment releases for a
given fiscal year is composed of the following:

1. Obligations incurred.
2. Obligations authorized as overdraft
3. Special Allotment Release Order
4. Releases from the unprogrammed fund (UF)
ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 Validity of Appropriations

• Personal Services (PS) until the end of the

current year.
• Maintenance and other Operating Expenses
(MOOE) and Capital Outlays 9co0 until the end
of the year.

ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 Validity of Appropriations

• Continuing Appropriation of the previous year for

MOOE and CO until the end of the current year
• Supplemental Budget for MOOE and CO
appropriation under RA 10652 until the end of the
current year
• All programmed Automatic Appropriations for PS,
MOOE, and CO shall be available for release and
obligation up to the end of the current year ONLY.
ACCOUNTING FOR
BUDGETARY
ACCOUNTS
 Guidelines on the Release of Disbursement
Authorities
1. Release of Notice of Cash Allocation (NCA)
NBC No. 556 dated January 5, 2015 provides that
an initial comprehensive NCA shall be issued
directly to the Operating Units (OU’s) covering the
first semester requirement chargeable against the
current year budget.
Succeeding comprehensive NCA shall be
issued to cover the 2nd semester requirements for
regular budget shall be subject to the submission
ACCOUNTING FOR
BUDGETARY
ACCOUNTS

of FAR’s/BAR’s as of end of June 30.

2. Release of Non – Cash Availment Authority
(NCAA)
Departments/Agencies/Operating Units
availing of foreign loan proceeds through direct
payment chargeable against availment allotment,
shall submit a request for the issuance of NCAA
supported by the following requirements:
 Photocopy of application for withdrawal
 List of Allotments and corresponding
obligations incurred
 Details of Disbursements
3. Release of Cash Disbursement Ceiling (CDC)
CDC is an authority issued by DBM to DFA
and DOLE to utilize their income collected and
retained by their Foreign Service Posts (FSP’s)
to cover its operating requirements but not to
exceed the released allotment for the said
post.
Request of CDC shall be supported by
Monthly Report of Income and BTr Certification
on Actual Income collected.
 Conduct of the Agency Performance Review
• According to NBC No. 556 dated January 5,
2015, departments/agencies/operating units
shall regularly submit their quarterly BFAR’s in
a timely manner through the Unified
Reporting System (URS) and the DBM shall
regularly monitor their compliance with the
quarterly BFARs.
• NBC No. 551, dated January 2, 2014 provides
that timely implementation of programs and
projects as a result of good planning will
ACCOUNTING FOR
BUDGETARY
ACCOUNTS
improve public spending and the quality of
service delivery to the public.
 Common Fund System
• The common fund system policy shall
continue to be used.
• Specific NCA’s shall be issued for the
purpose through their special MDS
accounts, consistent with circular letter
2005 – 2.
• The policy of having separate MDS sub –
account for retirement gratuity/terminal
leave benefits and prior years’ accounts
ACCOUNTING FOR
BUDGETARY
ACCOUNTS
payable, as well as trust liability account,
shall be maintained.
BOOKS OF
DBM
REGISTRIES MAINTAINED BY
DBM
Registry of Appropriations and Allotments
(RAPAL)
- for the general appropriations;
Registry of Special Purpose Fund
Appropriation (RESPFA)
- special purpose funds.
Registry of Allotments and Notice of Cash
Allocations (RANCA)
- for its control and monitoring of the Notice of Cash
Allocations (NCA) releases
THE REGISTRY OF APPROPRIATION
AND ALLOTMENTS (RAPAL)

shall be maintained by the Department

of Budget and Management for each
department of the National Government
in order to control approved
appropriations and allotments released.
THE REGISTRY OF SPECIAL PURPOSE
FUND APPROPRIATION (RESPFA)

shall contain funds appropriated for

purposes other than those provided in the
regular funds of the government
agencies.
THE REGISTRY OF ALLOTMENTS AND
NCA (RANCA)

shall be maintained by the DBM to control the

funding of allotments. Columns are provided for
each allotment class and NCA released to the
department/agency. A column for the unfunded
allotment is provided to determine the balance of
allotment without corresponding NCA.
BOOKS OF
TREASURY
 REGISTRY MAINTAINED
BY TREASURY
REGISTRY OF NOTICE OF CASH
ALLOTMENTS AND REPLENISHMENT
(RENREP)

shall be used by the Bureau of Treasury to

record the NCA releases and the bank
replenishment made to cover MDS checks
issued by the agencies.
BOOKS OF
AGENCIES
REGISTRIES MAINTAINED
BY AGENCIES
 Registry of Allotments and Obligations –
Personnel Services (RAOPS)
 Registry of Allotments and Obligations –
Maintenance and Other Operating Expenses
(RAOMO)
 Registry of Allotments and Obligations –
Capital Outlay (RAOCO)
 Registry of Allotments and Obligations –
Financial Expenses (RAOFE)
THE REGISTRY OF ALLOTMENTS AND
OBLIGATIONS – PERSONNEL
SERVICES (RAOPS)

shall be used to record allotments received

and obligations incurred for expenses
classified under Personnel Services, such
as: basic pay, all authorized allowances,
bonuses, cash gifts, etc.
THE REGISTRY OF ALLOTMENTS AND
OBLIGATION – MAINTENANCE AND
OTHER OPERATING EXPENSES
(RAOMO)

shall be used to record allotments received

and obligations incurred for expenses,
such as: traveling expenses, supplies and materials, repairs
and maintenance of property, plant and equipment,
representation expenses, training and seminar expenses, etc.
THE REGISTRY OF ALLOTMENTS AND
OBLIGATIONS – CAPITAL OUTLAY
(RAOCO)

shall be used to record allotments received

and obligations incurred for Capital Outlay,
such as: purchase and construction of
property, plant and equipment.
THE REGISTRY OF ALLOTMENTS AND
OBLIGATIONS – FINANCIAL
EXPENSES (RAOFE)

shall be used to record allotments received

and obligation incurred for Financial
Expenses,
such as: commitment fees, bank charges, interest expenses,
documentary stamps expenses, etc., to distinguish them from
the regular maintenance and other operating expenses.
Upon receipt of NCA:
“Cash – Modified Disbursement Scheme, Regular xxx
“Subsidy from National Government” xxx

The NCA received is the share of the agency in the income of the
National Government and a proof that there is cash allocated for
the agency by the National Treasurer.

The agency shall credit “Cash – MDS, Regular” each time a

payment is made charged against the NCA and debit the
specific account being paid for, either asset or expense
account.
 TYPES OF TRANSACTIONS

 Personnel Services (PS) – for payment of salaries,

wages and other compensations of permanent,
temporary, contractual and casual employees of the
government.

 Maintenance and Other Operating Expenses

(MOOE) – expenditures to support the
operations of the government agencies, such
as: expenses for supplies, utilities, etc.
 TYPES OF TRANSACTIONS
 Financial Expenses (FinEx) – a new expense category,
this is for management supervision/trusteeship fees,
interest expense, bank charges, and other financial
charges.
 Capital Outlay (CO) – for the purchase of goods and
services, the benefit of which extended beyond the fiscal
year and which add to the assets of the government.
 Miscellaneous Transactions (e.g. Cash to
another agency to implement a project of the
agency, Guaranty Deposit, Cash Advances, etc.)
 REGULAR AGENCY BOOKS

shall be used to record the regular transactions of the

agency like the receipt and utilization of NCA, as well
as, collections of income and other receipts, which the
agency can use. Likewise, income collected and
deposited under the agencies’ accounts with
Authorized Government Depository Banks
(AGDB), as authorized, shall be recorded in the
Regular Agency Books.
ACCOUNTING
FOR
OBLIGATIONS
OBLIGATION
a commitment 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.

ACCOUNTING FOR
OBLIGATION
Examples:

• Purchase Order
• Contracts
• Travel Authorization
• Request for Installation or Provision of Public
Utilities

ACCOUNTING FOR
OBLIGATION
Four Registries to Monitor and Control the Use
of Allotments:

RAOPS
RAOMO
RAOCO
ACCOUNTING FOR
RAOFE
OBLIGATION

*Approved Obligation Slip

Illustration:
General Appropriation Obligation
Incurred
-Personal Services 20,000
-Maint&Operating Exps 30,000
-Capital Outlay 50,000
-Financial Expenses 500

Special Purpose Fund

-Capital Outlay 25,000

ACCOUNTING FOR
OBLIGATION
 REGISTRY OF ALLOTMENTS AND OBLIGATIONS
PERSONNEL SERVICES (RAOPS)
AGENCY X

Sheet No.
Allotment Obligation
Date Ref PPA Account Code Received Incurred Balance
50,000 50,000
20,000 30,000

ACCOUNTING FOR
OBLIGATION
 REGISTRY OF ALLOTMENTS AND OBLIGATIONS
MAINTENANC AND OTHER OPERATING EXPENSES (RAOMO
AGENCY X

Sheet No.
Allotment Obligation
Date Ref PPA Account Code Received Incurred Balance
70,000 70,000
30,000 40,000

ACCOUNTING FOR
OBLIGATION
 REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY (RAOCO)
AGENCY X

Sheet No.
Allotment Obligation
Date Ref PPA Account Code Received Incurred Balance
125,000 125,000
75,000 45,000

ACCOUNTING FOR
OBLIGATION
 REGISTRY OF ALLOTMENTS AND OBLIGATIONS
FINANCIAL EXPENSES (RAOFE)
AGENCY X

Sheet No.
Allotment Obligation
Date Ref PPA Account Code Received Incurred Balance
2,000 2,000
500 1,500

ACCOUNTING FOR
OBLIGATION
TAX REMITTANCE ADVICE

• Tax Remittance Advice (TRA) System

• Provided for in a JC No. 1-2000, January 3, 2000
• Amended by JC No.1-2MOA, January 31, 2001
• DOF, DBM and COA

ACCOUNTING FOR
OBLIGATION
TAX REMITTANCE ADVICE

ACCOUNTING FOR
OBLIGATION
PERCENTAGES USED FOR ESTIMATED TAXES

• Personal Services- 8%
• Maintenance and Other Operating Expenses- 5%
• Capital Outlay- 5%

* The NCA received by the government agency

from the DBM is net of the applicable percentage
ACCOUNTING FOR
OBLIGATION
of TRA based on the Notice of Cash Allocation
received
 THANK YOU 