Disbursements Mommy

8/6/2019 Disbursements Mommy

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Receipts/Income Collections and

Deposits System

The Receipts/Income Collections and Deposits

System covers the processes of acknowledging andreporting income/collections, deposits of collections

with Authorized Government Depository Bank (AGDB)

or through the AGDB for the account of Treasurer of thePhilippines, and recording of collections and deposits in

the books of accounts of the agency.


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Sources of Income of the NationalGovernment

The income of the National Government are

classified into general income accounts and specific

income accounts. The following comprise the general

income accounts, among others:


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1. Subsidy Income from National Government

2. Subsidy from Central Office3. Subsidy from Regional Office/Staff Bureaus4. Income from Government Services5. Income from Government Business Operations6. Sales Revenue7. Rent Income8. Insurance Income9. Dividend Income10. Interest Income11

. Sale of Confiscated Goods and Properties12. Foreign Exchange (FOREX) Gains13. Miscellaneous Operating and Service Income14. Fines and Penalties-Government Services and

Business Operations

15. Income from Grants and Donations


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The specific income accounts of national governmentagencies are classified as follows:

1. Income Taxes

2. Property Taxes

3. Taxes on Goods and Services

4. Taxes on International Trade and Transactions

5. Other Taxes

6. Fines and Penalties-Tax Revenue

7. Other Specific Income


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Methods of Accounting for IncomeNational government agencies adopt the following accounting

methods of recording income:

1. Accrual Method - Accrual method of accounting shall beused by national government agencies when income isrealized (earned) during the accounting period regardlessof cash receipt. Accounts receivable is set up and thegeneral or specific income accounts according to natureand classification are credited.


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2. Modified Accrual Under the modified accrual basis,income of an agency is recorded as Deferred Credits toIncome and the appropriate receivable account is debited.

The income account is recognized upon receipt ofcollection and the Deferred Credits to Income account isadjusted accordingly.

3. Cash Basis - Cash basis of accounting shall be used for all

other taxes, fees, charges and other revenues whereaccrual method is impractical. The income account iscredited upon collection of the cash or its equivalent.


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Fines and PenaltiesFines and penalties, either on tax revenues or

other specific income accounts, shall be recognized as

income of the year these were collected.


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1. Refund of cash advances - When cash advances for

official travels are granted, the account Due fromOfficers and Employees is debited and whenrefunds are made, the same account is credited.Cash advances for salaries and wages shall be

recorded as debits to the account Cash-DisbursingOfficers and any refunds thereof shall be credited tothe same account.

O

ther ReceiptsOther receipts of national government agencies shall becomprised of, but not limited to the following:


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2. Receipts of performance/bidders/bail bonds -

Performance bond posted by contractor or supplier toguaranty full and faithful performance of their contractmay be in the form of cash or certified checks or surety.Performance bond in cash or certified check shall beacknowledged by the issuance of official receipt andrecorded in the book of accounts by the Accountant thru aJournal Entry Voucher (JEV) for the purpose. In case ofsurety bond, an acknowledgement receipt shall be issuedby the authorized official.

3. Refund for overpayment of expenses - Refunds as aresult of overpayment of expenses shall be recorded as acredit to the appropriate expense account if paid in thesame year or to Prior Years Adjustments if paid in theensuing year. This transaction shall reduce the amount of

expense previously recorded.


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4. Collections made on behalf of another agency orprivate companies - Collections made on behalf ofother agencies which are later remitted to them arerecorded under accounts Due to NGAs, Due to LGUsor Due to GOCCs as the case maybe. Authorized

collections made on behalf of private entities, like sharesof proponents of Built-Operate-Transfer (BOT) Projectsare recorded as Other Payables.

5. Inter-agency transferred funds - Cash received fromanother agency for the purpose of implementing projectsof that agency is recorded in the books as a credit toaccount Due to NGAs or Due to LGUs, as the casemaybe.


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Deposit of Collections

All Collecting Officers shall deposit intact all

their collections, as well as collections turned over tothem by sub-collectors/tellers, with AGDB daily or not

later than the next banking day. They shall record all

deposits made in the Cash Receipts Record.


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Reporting of Collections and Deposits

At the close of each business day, the Collecting

Officers shall accomplish the Report of Collections and

Deposits (RCD). All collections shall be deposited with

AGDB for the account of the agency or the Treasurer of

the Philippines daily or not later than the next bankingday.


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y Designated Staff (Daily)

Receives cash/check from payor representing collectionbased on the Order of Payment (OP) prepared by theAccounting Unit.

Issues Official Receipt (OR) to acknowledge receipt ofcash/check.

Note 1 :

Funding Checks received by the Cashier/ Collecting Officerof the RO/OU for its operational requirements shall be issuedcorresponding OR..

Cash Unit


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Note 2

Separate sets of ORs shall be used for the RA and NG Books.

Note 3

The OR shall be prepared in three copies and shall bedistributed as follows:

Original - PayorCopy 2 - To be attached to the Report of Collections andDeposits (RCD)

Copy 3 - Cash Unit file


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Records collections in the Cash Receipts Record (CRR).

Note 4

Separate CRR shall be maintained for collections under theRA and NG Books.

PreparesDeposit Slip (DS) in three copies.

Note 5

The DS shall be distributed as follows:Original - AGDB

Copy 2 - To be attached to RCD



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Deposits collections with AGDB.

Note 6

Collections pertaining to NG Books shall be deposited with

the AGDB for the account of the Treasurer of the Philippines

Based on the validated DS from the AGDB and copy ofthe ORs on file, prepares Report of Collections and

Deposits (RCD) in two copies. Initials on the RCD andforwards the same together with Copy 2 of the ORs andDS to the Head of the Cash Unit for review andsignature


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y Head of the Cash UnitReviews and signs the RCD. Forwards original of RCD,

Copy 2 of the ORs and DS to the Designated Staff forsubmission to the Accounting Unit.

Note 7

The RCD shall be distributed as follows:

Original - Accounting Unit together with Copy No. 2of the ORs and DS - to support the JEV



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Disbursements DefinedDisbursements constitute all cash paid out

during a given period either in currency (cash) or

by check. It may also mean the settlement of

government payables/obligations by cash or by

check. It shall be covered by Disbursement

Voucher (DV)/Petty Cash Voucher (PCV) or

payroll.


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Basic Requirements for DisbursementsThe basic requirements applicable to all types of disbursementsmade by national government agencies are as follows:

1. Existence of a lawful and sufficient allotmentcertified as available by the Budget Officer;

2. Existence of a valid obligation certified by the ChiefAccountant/Head of Accounting Unit;

3. Legality of transactions and conformity with laws,rules and regulation;

4. Approval of the expense by the Chief of Office or byhis duly authorized representative; and

5. Submission of proper evidence to establish the claim.


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Disbursements System

The Disbursements System involves the

preparation and processing of disbursement

voucher (DV); preparation and issuance of check;

payment by cash; granting, utilization, and

liquidation/replenishment of cash advances.


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Certification on DisbursementsDisbursements from government funds shall require the followingcertifications on the DV:

1. Certification and approval of vouchers and payrollsas to validity, propriety and legality of the claim (Box

A of DV) by head of the department or office whohas administrative control of the fund concerned;

2. Necessary documents supporting the DV andpayrolls as certified and reviewed by the

Accountant/Head of Accounting Unit (Box B of DV);

and3. Certification that funds are available for the purpose

by the Accountant/Head of Accounting Unit (Box Bof DV).


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Disbursements by Checks

Checks shall be drawn only on duly approved

DV or PCV. These shall be reported and recorded

in the books of accounts only when actually

released to the respective payees. Two types of

checks are being issued by government agencies as

follows:


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1.Modified Disbursement System (MDS) Checks

issued by government agencies chargeable against

the account of the Treasurer of the Philippines, which are

maintained with different MDS Government ServicingBanks (GSBs). These are covered by Notice of Cash

Allocation, an authorization issued by the DBM to

government agencies to withdraw cash from the NationalTreasury through the issuance of MDS checks or other

authorized mode of disbursements.


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2. Commercial Checks

- issued by government agencies chargeable

against the Agency Checking Account with GSBs.

These are covered by income/receipts authorized to be

deposited with AGDBs; and funding checks received

by RO/OU

s from COs/ROs, respectively.


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Recording of Check Disbursementsin the Check Disbursements Record

(CkDR)

All checks issued including cancelled checks shall

be recorded chronologically in the CkDR. The dates

checks were actually released shall be indicated in theappropriate column provided for by the CkDR.


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Reporting of Checks Issued/ReleasedAll checks actually released to claimants shall be

included in the Report of Checks Issued (RCI) which

shall be prepared daily by the Cashier. The RCI shall be

submitted to the Accounting Unit for the preparation

of JEV. All unreleased checks as of the report date shallbe enumerated in a List ofUnreleased Checks to be

attached to the RCI.


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y Receiving/Releasing Staff Receives copies 1-3 of approved DV Copy 3 of OS and originals

of supporting documents. Records in the logbook the date ofreceipt, DV number, payee, particulars and amount.

y Designated StaffVerifies completeness of signatories on the DV. Prepares

check in three copies.

Retrieves from the file the Check Disbursements Records

(CkDR) and records the date, reference or check number,name of payee, nature of payment and amount of the DVand extract the new balance of the NCA/bank account.Forwards Copies 1-3 of check, Copies 1-3 of DV, Copy 3 ofOS and originals of supporting documents to Cashier for

review and signature.

Cash Unit


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y CashierVerifies completeness of signature on the DV. Reviews the

amount of the check against the DV and supporting documents.Signs the check.

y Authorized Official Countersigns check. Forwards Copies 1-3 of check, Copies 1-3 of

DV, Copy 3 of OS and supporting documents to theReceiving/Releasing Staff for return to the Cashier.

y Receiving/Releasing Staff Records in the logbook the date of release of Copies 1-3 of

check, Copies 1-3 of DV, Copy 3 of OS and supportingdocuments.

y Cashier Releases the original check and Copy 3 of DV to the payee.

Attaches OR/Invoice on Copy1 of DV. Files Copies 2-3 of check,

Copies 1-2 of DV, originals of the supporting documents.


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y Cashier (Daily)

With Copies 1-2 of DV, Copy 3 of OS, supportingdocuments, Copies 2-3 of checks, prepares RCI in twocopies.

Note 1:

RCI shall include only those checks actually released to thepayee during the day.

Note 2:

The RCI shall be distributed as follows:

Original Accounting Unit together with

the originals of the paidDVs/payroll and supportingdocuments for JEV preparation

Copy 2 Cash Unit file

Initials in Certification portion of the RCI.


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Disbursements by Cash

Disbursements by cash shall be made by cash

advances drawn and maintained in accordance with

COA rules and regulations. Cash payments shall be

made based in duly approved payrolls/disbursements

vouchers


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Cash Advances for TravelCash advances granted for travel shall be accountedfor as Due from Officers and Employees and these are

subject to liquidation upon travel completion. For

liquidation of travel where the amount of each advance is

equal to or more than the travel expenses incurred, the

Liquidation Report form shall be prepared by the

officers/employees concerned and submitted to the

Accounting Unit as basis for JEV preparation.


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The excess cash advance shall be refunded and an

OR shall be issued to acknowledge receipt thereof. In

case the amount of cash advance is less than the travel

expenses incurred, a Liquidation Report shall be

submitted to liquidate the cash advance previously

granted and a DV shall be prepared to claimreimbursement of the deficiency in amount.


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yAccountable/Disbursing OfficerReceives the approved check from the Cashier. Records

in the Cash Disbursements Record (CDR) the date,reference, name of payee, particulars and the amount ofcheck in the debit column.

Encashes check in a GSB.Pays officials and employees/other payees.

Note 1:

Employees/payees shall sign on the received portion of thepayroll/DV to acknowledge receipt of payment.

Note 2:If there are unclaimed salaries, refund the same within a

reasonable time. OR representing the refund shall be issued bythe Cashier.

Records payment including the refund for unclaimed

salary in the credit column of the CDR.

Cash Unit


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yAccountable/Disbursing Officer

(At the End of the Month)Based on the paid payroll/DV and supporting

documents, prepares Report of Disbursements (RD) intwo copies. Signs the Certification portion of the RD.

Note 3:

The RD shall serve as the liquidation report of the cashadvance granted to the Disbursing Officer.

Note 4:

The RD shall be distributed as follows:

Original Accounting Unit together with the originalsof the paid DVs/Payrolls and supportingdocuments for JEV preparation

Copy 2 Cash Unit file


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y Cash Staff

Receives the approved check, DV and Following MonthsPayroll (FMP), signs the logbook of the releasing office,

and forwards the documents to the Cashier.Deposits the check to the Bank Payroll Account together

with the original of the Summary of Employees NetEarnings (SENE) received from Accounting Unit. Files

temporarily Copies1

-2 of FMP, Copy 2 of the check, andCopies 1-3 of DV for the preparation of RCI.

Cash Unit


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y Cash Staff

Note 1:

The payee of the check is the Servicing Bank whoseauthorized representative shall acknowledge receipt of thecheck by signing on the original of the DV.

Note 2:

Refer to slide 16

Note 3:

Payroll payment through bank shall also be recorded in theIP maintained by the Accounting Unit


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Disbursements Through Petty Cash Fund

Petty Cash Fund shall be maintained under the

imprest system. The fund shall be sufficient for the

non-recurring, emergency and petty expenses of theagency. Disbursements from the fund shall be through

the Petty Cash Voucher (PCV) which shall be approved

by authorized officials and signed by the payee toacknowledge the amount received. The official receipt

or its equivalent is attached to the PCV.


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Various Unit

y Petty Cash Custodian

Receives check from Cashier for the establishment/replenishment of petty cash fund. Retrieves CashDisbursement Record (CDR) and records the date,reference and the amount of check in the

Disbursements columnEncashes check in GSB and keeps the cash in a safety

vault.

Receipt of Check for the Establishment/

Replenishment of Petty Cash Fund


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Utilization of Petty Cash Fund

y Requesting PersonnelAccomplishes Box A Requested by portion of the Petty

Cash Voucher (PCV)

y Immediate Supervisor

Signs Box A Approved by portion of the PCV andreturns to Requesting Personnel.

y Requesting Personnely Submits to the Petty Cash Custodian for the release of

fund.

y Petty Cash CustodianReceives from the Requesting Personnel the PCV duly

approved by concerned official.

Upon granting of the petty cash advance and signs in

Box B Paid by portion of the PCV.


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y Requesting PersonnelReceives petty cash and signs in Box B Cash Received by

portion of the PCV.


Issues Copy 2 of the PCV to requesting personnelRetrieves CDR from file and records paid PCVs. Fills up

the following columns: date, reference, name of payee,nature of payment, amount in credit column and cash

advance balance.Files the original of PCV awaiting liquidation.


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Liquidation of Petty Cash Advance


Receives from Requesting Personnel Copy 2 of the PCVtogether with supporting documents. Checks and

reviews completeness of documents such as the date,amount and nature of expenses paid as shown in thesupporting documents.

If incomplete, returns to Requesting Personnel forcompletion of needed documents. If complete, retrievesthe original of PCV from file and fills up Box DLiquidation Submitted portion of the original and Copy2 of PCVs.


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Checks the appropriate boxes for Received Refund orReimbursement Paid portion and signs Box C of thePCV.

Checks the appropriate boxes for Received Refund or

Reimbursement Paid portion and signs Box C of thePCV.

y Requesting Personnel

Checks and fills up the appropriate boxes for

Liquidation Submitted and Reimbursement Paid uponsubmission of necessary supporting documents andreceipt or reimbursement of cash, if any, and signs thePCV.


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y Petty Cash Fund CustodianReturns Copy 2 of the PCV to the Requesting Personnel.

If the amount granted is equal to the amount paid asshown in the liquidated PCV, proceeds to 4th bullet.

If the amount is not equal to the amount paid, retrievesfrom file the CDR and records the necessaryadjustments based on the liquidated PCV. Fills up thefollowing columns: date, reference, name of payee, andnature of payment, amount in the appropriate debit,

credit and balance columns.

Files the original of the PCV together with thesupporting documents awaiting replenishment.


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Replenis ent f etty asFund

y Petty Cash Fund Custodian

Retrieves from file the original of the PCV together with

the supporting documents. Checks the completeness ofall PCVs for replenishment.

Prepares the Petty Cash Replenishment Report (PCRR)in two copies based on PCVs in numerical sequence and

fills up the following columns: date, PCV No.,particulars and amount.


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Signs in the Certified Corrected byportion of the PCRR.Based on the PCRR, prepares DV in three copies,

Forwards Copies 1-3 of the DV, original of the PCRR andPCV, and supporting documents to Authorized Official

for review and signature.yAuthorized Official

Signs in Box A portion of the DV.


Forwards Copies 1-3 of DV, originals of PCRR and PCVsand supporting documents to Budget Division forpreparation of the OS.

Documents

Disbursements Mommy