Natl NGAS Ch1to6 AcctngPoliciesVol1

MANUAL ON THE
NEW GOVERNMENT ACCOUNTING SYSTEM

For National Government Agencie
ACCOUNTING !OLICIES
Vol"me I
C#a$ter %& Intro'"ction
Sec& %& O()ective o* t#e Man"al& The New Government
Accounting System (NGAS) Manual presents the basic policies and
procedures; the new coding system; the accounting systems, boos,
registries, records, !orms, reports, and !inancial statements; and
illustrative accounting entries to be adopted by all national government
agencies e!!ective "anuary #, $%%$& The ob'ectives o! the Manual are to
prescribe the !ollowing(
a& )ni!orm guidelines and procedures in accounting
!or government !unds and property;
b& New coding structure and chart o! accounts;
c& Accounting boos, registries, records, !orms,
reports and !inancial statements; and
d& Accounting entries&
Sec& +& Coverage& This Manual shall be used by all
national government agencies&
#
Sec& ,& Legal -ai& This Manual is prescribed by the
*ommission on Audit pursuant to Article +,-., Section $ par& ($) o! the
#/01 *onstitution o! the 2epublic o! the 3hilippines which provides
that:
The Commission on Audit shall have exclusive authority,
subject to the limitations in this Article, to define the scope of its
audit and examination, establish the techniques and methods
required therefor, and promulgate accounting and auditing rules
and regulations, including those for the prevention and
disallowance of irregular, unnecessary, excessive, extravagant, or
unconscionable expenditures, or uses of government funds and
properties". underscoring supplied!
C#a$ter +& -aic Feat"re an' !olicie
Sec& .& -aic Feat"re an' !olicie& The NGAS has the
!ollowing basic !eatures and policies, to wit(
a& Accr"al Acco"nting& A modi!ied accrual basis o!
accounting shall be used& )nder this method, all e4penses
shall be recogni5ed when incurred and reported in the
!inancial statements in the period to which they relate&
+ncome shall be on accrual basis e4cept !or transactions
where accrual basis is impractical or when other methods are
re6uired by law&
b& One F"n' Conce$t& This system adopts the one !und
concept& Separate !und accounting shall be done only when
speci!ically re6uired by law or by a donor agency or when
otherwise necessitated by circumstances sub'ect to prior
approval o! the *ommission&
c& C#art o* Acco"nt an' Acco"nt Co'e& A new chart o!
accounts and coding structure with a three-digit account
numbering system shall be adopted& (See 7olume +++, The
*hart o! Accounts)
d& -oo/ o* Acco"nt& All national agencies shall maintain
two sets o! boos, namely(
$
Reg"lar Agenc0 1RA2 -oo/& These shall be used
to record the receipt and utili5ation o! Notice o! *ash
Allocation (N*A) and other income8receipts which the
agencies are authori5ed to use and to deposit with
Authori5ed Government .epository 9an (AG.9) and the
National Treasury& These shall consist o! 'ournals and
ledgers, as !ollows(
"ournals
*ash 2eceipts "ournal (*2")
*ash .isbursements "ournal (*.")
*hec .isbursements "ournal (*.")
General "ournal (G")
:edgers
General :edger (G:)
Subsidiary :edgers (S:) !or(
*ash
2eceivables
+nventories
+nvestments
3roperty, 3lant and ;6uipment
*onstruction in 3rogress
:iabilities
+ncome
;4penses
National Government 1NG2 -oo/& These shall be
used to record income which the agencies are not authori5ed
to use and are re6uired to be remitted to the National
Treasury& These shall consist o!(
*ash "ournal (*")
General "ournal (G")
General :edger (G:)
Subsidiary :edger (S:)
<
=ith the implementation o! the computeri5ed agency
accounting system, only the General "ournal shall be used
together with the ledgers by both boos&
e& Financial Statement& The !ollowing statements shall be
prepared(
9alance Sheet
Statement o! Government ;6uity
Statement o! +ncome and ;4penses
Statement o! *ash >lows
Notes to >inancial Statements shall accompany the
above statements&
!& T3o4Mone0 Col"mn Trial -alance& The two - money
column trial balance showing the account balances shall be
used&
g& Allotment an' O(ligation& ?bligation accounting is
modi!ied to simpli!y procedures in the incurrence and
li6uidation o! obligations and the recording o! the
budgetary accounts (allotments and obligations incurred and
li6uidated)& Separate registries shall be maintained to
control the allotments and obligations !or each o! the !our
classes o! allotments, namely(
2egistry o! Allotments and ?bligations - *apital
?utlay (2A?*?)
2egistry o! Allotments and ?bligations -
Maintenance and ?ther ?perating ;4penses
(2A?M?)
2egistry o! Allotments and ?bligations - 3ersonal
Services (2A?3S)
2egistry o! Allotments and ?bligations- >inancial
;4penses (2A?>;)&
@
h& Notice o* Ca# Allocation 1NCA2& The receipt o! N*A by
the agency shall be recorded in the boos as debit to account
A*ash-National Treasury, Modi!ied .isbursement System
(M.S)B and credit to account ASubsidy +ncome !rom
National GovernmentB&
i& Financial E5$ene& >inancial e4penses such as ban
charges, interest e4penses, commitment charges and other
related e4penses shall be separately classi!ied !rom
Maintenance and ?ther ?perating ;4penses (M??;)&
'& !er$et"al Inventor0 o* S"$$lie an' Material& Supplies
and materials purchased !or inventory purpose shall be
recorded using the perpetual inventory system& 2egular
purchases shall be coursed thru the inventory account and
issuances thereo! shall be recorded as they tae place e4cept
those purchased out o! 3etty *ash >und which shall be
charged directly to the appropriate e4pense accounts&
& Val"ation o* Inventor0& *ost o! ending inventory o!
supplies and materials shall be computed using the moving
average method&
l& Maintenance o* S"$$lie an' !ro$ert06 !lant an'
E7"i$ment Le'ger Car'& >or appropriate chec and
balance, the Accounting )nits o! agencies, as well as the
3roperty ?!!ices, shall maintain Supplies :edger
*ards8Stoc *ards by stoc number and 3roperty, 3lant and
;6uipment :edger *ards83roperty *ards by category o!
property, plant and e6uipment, respectively&
m& Contr"ction o* Aet& >or assets under construction, the
*onstruction 3eriod Theory shall be applied !or costing
purposes& 9onus paid to the contractor !or completing the
wor ahead o! time shall be added to the total cost o! the
pro'ect& :i6uidated damages charged and paid !or by the
contractor shall be deducted !rom the total cost o! the
pro'ect& Any related e4penses incurred during the
construction o! the pro'ect, such as ta4es, interest, license
C
!ees, permit !ees, clearance !ee, etc& shall be capitali5ed, and
those incurred a!ter the construction shall !orm part o!
operating cost&
n& Regitr0 o* !"(lic In*ratr"ct"re8Regitr0 o*
Re*oretation !ro)ect& >or agencies that construct public
in!rastructures, such as roads, bridges, waterways, railways,
pla5a, monuments, etc&, and invest on re!orestation pro'ects,
a 2egistry o! 3ublic +n!rastructures (23+)82egistry o!
2e!orestation 3ro'ects (223) shall be maintained !or each
category o! in!rastructures8re!orestation pro'ects& ;4amples
are(
2egistry o! 3ublic +n!rastructures - 9ridges (23+9)
2egistry o! 3ublic +n!rastructures - 2oads (23+2)
2egistry o! 3ublic +n!rastructures - 3ars (23+3)
2egistry o! 2e!orestation 3ro'ects (223)
A Summary o! 3ublic +n!rastructures82e!orestation
3ro'ects shall be prepared and included in the Notes to
>inancial Statements&
o& 9e$reciation& The straight-line method o! depreciation shall
be used& .epreciation shall start on the second month a!ter
purchase o! the property, plant and e6uipment, and a residual
value e6uivalent to ten percent o! the purchase cost shall be
set-up& 3ublic in!rastructures8re!orestation pro'ects as well as
serviceable assets that are no longer being used shall not be
charged any depreciation&
p& Reclai*ication o* Aet& Serviceable assets no longer
being used shall be reclassi!ied to A?ther AssetsB account
and shall not be sub'ect to depreciation&

6& Allo3ance *or 9o"(t*"l Acco"nt& An Allowance !or
.oubt!ul Accounts shall be set up !or estimated uncollectible
trade receivables to allow !or their !air valuation&
r& Elimination o* Contingent Acco"nt& *ontingent accounts
shall no longer be used& All !inancial transactions shall be
D
recorded using the appropriate accounts& *ash shortages and
disallowed payments, which become !inal and e4ecutory,
shall be recorded under receivable accounts A.ue >rom
?!!icers and ;mployeesB or A2eceivables-.isallowances8
*hargesB, as the case may be&
s& Recognition o* Lia(ilit0& :iability shall be recogni5ed at
the time goods and services are accepted or rendered and
supplier8creditor bills are received&
t& Interet Accr"al& =henever practical and appropriate,
interest income and8or e4pense shall be accrued and
recogni5ed in the boos o! accounts&
u& Acco"nting *or -orro3ing an' Loan& All borrowings
and loans incurred shall be recorded to the appropriate
liability accounts&
v& Elimination o* corollar0 an' negative )o"rnal entrie& The
use o! corollary and negative 'ournal entries shall be
stopped& Ac6uisition8.isposition o! assets shall be
debited8credited to the appropriate asset accounts& +! an error
is committed, a correcting entry to ad'ust the original entry
shall be prepared&
w& !ett0 Ca# F"n'& The 3etty *ash >und shall be maintained
under the imprest system& As such, all replenishments shall
be directly charged to the e4pense account and at all times,
the 3etty *ash >und shall be e6ual to the total cash on hand
and the unreplenished e4penses& The 3etty *ash >und shall
not be used to purchase regular inventory8items !or stoc&
4& Foreign C"rrenc0 A')"tment& *ash deposits in !oreign
currency and outstanding !oreign loans shall be computed at
the e4change rate prescribed by the 9ango Sentral ng
3ilipinas at balance sheet date& The total cash deposits and
!oreign loans payable shall be ad'usted at the end o! each
month and any gain or loss on !oreign e4change shall be
recogni5ed& The subsidiary ledger !or !oreign currency
1
obligations shall re!lect the appropriate !oreign currency in
which the loan is payable& The liability shall be e4pressed
both in the !oreign and local currency&
0
C#a$ter ,& Acco"nting S0tem
Sec& :& General Acco"nting !lan& The General Accounting
3lan (GA3) shows the overall accounting system o! a government
agency8unit& +t includes the source documents, the !low o! transactions
and its accumulation in the boos o! accounts and !inally their
conversion into !inancial in!ormation8data presented in the !inancial
reports& 3resented on ne4t page is the General Accounting 3lan !or
national government agencies&
The !ollowing accounting systems are(
a& 9udgetary Accounts System;
b&2eceipts8+ncome and .eposit System;
c& .isbursement System; and
d&>inancial 2eporting System&
A& 9).G;TA2E A**?)NTS
Sec& ;& -"'getar0 Acco"nt S0tem& The 9udgetary
Accounts System encompasses the processes o! preparing Agency
9udget Matri4 (A9M), monitoring and recording o! allotments received
by the agency !rom the .9M, releasing o! Sub-Allotment 2elease ?rder
(Sub-SA2?) to 2egional ?!!ices (2?) by the *entral ?!!ice (*?);
issuance o! Sub-SA2? to ?perating )nits (?)) by the 2?; and
recording and monitoring o! obligations&
Sec& <& -"'getar0 Acco"nt& 9udgetary accounts consist o!
the appropriations, allotments and obligations& Appropriations re!er to
authori5ations made by law or other legislative enactment !or payments
to be made with !unds o! the government under speci!ied conditions
and8or !or speci!ied purposes& Appropriations shall be monitored and
controlled through registries and control worsheets by the .9M and
*?A, respectively& 9udgetary accounts allotments and obligations are
discussed in the succeeding sections&
/
+NS;2T G;N;2A: A**?)NT+NG 3:AN
!or
National Government Agencies
#%
<&:=&%&%&% Agenc0 -"'get Matri5
1A-M2& The A9M re!ers to a document showing the disaggregation o!
agency e4penditures into components lie, among others, by source o!
appropriations, by allotment class and by need o! clearance&
Sec& >& !roce'"re *or t#e !re$aration o* t#e A-M
Area o!
2esponsibility
Se6&
No& Activity
9udget )nit
*oncerned Sta!! # 9ased on the approved General
Appropriations Act (GAA) and in
coordination with the .9M, prepares the
A9M by appropriations8!inancing sources
to support e4penditures to be made during
the year broen down by allotment
class8e4penses&
Note 1
The ABM shall contain, among others, the
following information:
The amount to be released categorized
under Not Needing Clearance
column, and
The amount that will be released
through the issuance of !"ecial
Allotment #elease $rder %!A#$&
categorized under "Needing
Clearance column including
continuing a""ro"riations based on
the !tatement of Allotments,
$bligations and Balances %!A$B&'
$ +nitials under F3repared byF portion o! the
A9M&
Gead, 9udget )nit < 2eviews and signs H3repared byI portion o!
##
Area o!
2esponsibility
Se6&
No& Activity
the A9M&
*oncerned Sta!! @ >orwards the A9M together with a
transmittal letter !or the .9M to the Gead
o! the Agency !or signature8approval&
Gead o! the Agency C Approves8Signs the A9M and the
transmittal letter&
*oncerned Sta!! D 2ecords in the logboo maintained and
submits the signed A9M to the .9M !or
approval&
>&:=&%&%&% Allotment Releae Or'er
1ARO2& The A2? is a !ormal document issued by the .9M to the head
o! the agency containing the authori5ation, conditions and amount o! an
agency allocation& The document may be the A9M, where the amount o!
allocation not needing clearance is indicated, or the Special Allotment
2elease ?rder (SA2?), where the release o! which is sub'ect to
compliance with speci!ic laws or regulations or is sub'ect to separate
approval or clearance by competent authority& +n the case o! agencies
with decentrali5ed accounting procedures, Sub-A2?8Sub-SA2? is
issued8released&
>&:=&%&%&+ Recor'ing o* Allotment&
)pon receipt o! the approved A9M and A2?, the 9udget ?!!icer8Gead
o! the 9udget )nit8.esignated 9udget ?!!icer shall record the allotment
in the respective registries through the Allotment and ?bligations Slip
(A:?9S)& Separate registries shall be maintained !or the !our allotment
classes by 3rogram83ro'ect8Activity (3838A), to wit(
#& 2egistry o! Allotments and ?bligations - *apital ?utlay
(2A?*?)
$& 2egistry o! Allotments and ?bligations - Maintenance and
?ther ?perating ;4penses (2A?M?)
<& 2egistry o! Allotments and ?bligations - 3ersonal Services
(2A?3S)
#$
@& 2egistry o! Allotments and ?bligations - >inancial
;4penses (2A?>;)
Sec& =& !roce'"re in t#e Monitoring an' Recor'ing o*
Allotment Receive' *rom 9-M
Area o!
2esponsibility
Se6&
No& Activity
9udget )nit
*oncerned Sta!!
# 2eceives the approved A9M8SA2? !rom
the .9M& 2ecords the same in the logboo
and !orwards the A9M8SA2? to 9udget
Sta!! !or preparation o! an Allotment and
?bligation Slip (A:?9S)&
9udget Sta!! $ 3repares A:?9S in two copies, assigns
number and initials the same& >orwards the
A:?9S and A9M8SA2? to the Gead o!
the 9udget )nit !or review and signature&
Note 1
The numbering structure of the A($B!
shall be as follows:
)! ** ** ****
!erial Number
%$ne series for
the whole +ear&
Month

,ear

Allotment Class
%)!, M$$-, C$
and .-& shall be
used onl+ when
obligations are
recorded in the
A($B!

#<
Area o!
2esponsibility
Se6&
No& Activity
Note /
The A($B! shall be "re"ared in two
co"ies and shall be distributed as follows:
$riginal0#etained b+ the Budget 1nit to
su""ort recording in the
registries
Co"+ / 0Accounting 1nit
Gead o! the 9udget
)nit
< 2eviews, checs the small bo4 opposite
the F2eceivedF portion in 9o4 A o! the
A:?9S and a!!i4es signature certi!ying
receipt o! allotment& 2eturns to the 9udget
Sta!! !or recording in the appropriate
2egistry o! Allotments and ?bligations
(2A?s)&
9udget Sta!! @ 2ecords the A:?9S in the appropriate
2A?s& >iles the A:?9S !or re!erence&
Note 2
The following #A$s shall be maintained
b+ the Budget 1nit:
#egistr+ of Allotments and
$bligations 0 )ersonal !er3ices
%#A$)!&
$bligations 0Maintenance and $ther
$"erating -4"enses %#A$M$&
$bligations 0Ca"ital $utla+s
%#A$C$&
#egistr+ of Allotments and $bligations
0 .inancial -4"enses %#A$.-&
#@
Area o!
2esponsibility
Se6&
No& Activity
C >orwards *opy $ o! the A:?9S to the
Accounting )nit !or re!erence&
Sec& %?& !roce'"re *or t#e Recor'ing o* S"(4Allotment
Releae Or'er 1S"(4ARO2 (0 RO8 OU
Area o!
2esponsibility
Se6&
No& Activity
*entral ?!!ice8
2egional ?!!ice
9udget )nit
9udget Sta!!
# 9ased on the approved A9M received
!rom the .9M, prepares Sub-A2? !or
2?8?)& >orwards the Sub-A2? to the
Gead o! the 9udget )nit *?82? !or
review&
Gead o! the
9udget )nit
$ 2eviews and signs Sub-A2?& >orwards
the same to the Gead o! the *?82? !or
approval&
Gead o! *entral
?!!ice82egional
?!!ice8
Authori5ed
?!!icer
< Approves the Sub-A2?&
9udget Sta!! @ 9ased on the approved Sub-A2?, prepares
A:?9S in two copies& Assigns number
and initials the A:?9S& >orwards the
same with a copy o! approved Sub-A2? to
the Gead o! the 9udget )nit !or review and
signature&
Note 1
5istribution of A($B! shall be as
follows:
#C
Area o!
2esponsibility
Se6&
No& Activity
$riginal 0 C$6#$ Budget 1nit
Co"+ / 0 C$6#$ Accounting 1nit
Note /
#efer to A($B! numbering structures in
Note 1 !ec' 1/, )rocedures in the
Monitoring and #ecording of Allotments
#ecei3ed from 5BM
Gead o! the
9udget )nit
C 2eviews, checs the small bo4 opposite
the HSub-allottedI portion o! 9o4 A o! the
A:?9S and a!!i4es signature certi!ying as
to the amount sub-allotted to 2?8?)&
>orwards the same with the approved Sub-
A2? to 9udget Sta!! !or recording in the
appropriate 2A?s&
9udget Sta!! D 2ecords the A:?9S in the appropriate
2A?s& >iles the A:?9S and a copy o! the
Sub-A2?&
Note 2
The A($B! co3ering sub0allotment for the
#$6$1 shall be entered in the #A$s as
negati3e entr+ in the 7Allotment8 column
and shall be deducted from the allotment
balance'
Note 9
A co"+ of the A($B! co3ering allotment of
the #$6$1 shall be furnished the
Accounting 1nit for reference'
*oncerned Sta!! 1 2ecords in the logboo the release o! the
Sub-A2? to 2?8?)&
#D
Area o!
2esponsibility
Se6&
No& Activity
2egional ?!!ices8
?perating )nits
9udget )nit
*oncerned Sta!! 0 2eceives the approved Sub-A2? !rom the
*?82?& 2ecords the same in the logboo
maintained& >orwards the Sub-A2? to the
9udget Sta!! !or the preparation o!
A:?9S&
9udget Sta!! / 3repares A:?9S in two copies, assigns
number and initials the same& >orwards
the A:?9S and Sub-A2? to the Gead o!
the 9udget )nit !or review and signature&
Note :
#efer to Notes 1 and / of !ec'1/,
)rocedures for the Monitoring and
#ecording of Allotments #ecei3ed from the
5BM'
Gead o! the
9udget )nit
#% 2eviews the A:?9S based on the
Sub-A2?& *hecs the small bo4 opposite
the A2eceivedB portion o! 9o4 A o! the
A:?9S and a!!i4es signature certi!ying
that the allotment was received& >orwards
the A:?9S and Sub-A2? to the 9udget
Sta!! !or recording in the appropriate
2A?s&
Note ;
#efer to Note 2, of !ec'1/, )rocedures for
the Monitoring and #ecording of
Allotments #ecei3ed from the 5BM'
9udget Sta!! ## 2ecords the A:?9S in the 2A?s& >iles the
Sub-A2? and original o! the A:?9S&
#1
Area o!
2esponsibility
Se6&
No& Activity
#$ >orwards copy $ o! the A:?9S to the
Accounting )nit !or re!erence&
#0
Sec& %%& Acco"nting *or O(ligation& ?bligation re!ers to a
commitment by a government agency arising !rom an act o! a duly
authori5ed o!!icial which binds the government to the immediate or
eventual payment o! a sum o! money& The agency is authori5ed to incur
obligations only in the per!ormance o! activities which are in pursuits o!
its !unctions and programs authori5ed in appropriation acts8laws within
the limit o! the A2?&
?bligations shall be taen up in the registries through the
A:?9S prepared8processed by the 9udget )nit& The 9udget ?!!icer8
Gead o! the 9udget )nit8designated 9udget ?!!icer shall certi!y to the
availability o! allotment and such is duly obligated by signing in the
appropriate bo4 o! the A:?9S& ?n the other hand, the Accountant8Gead
o! the Accounting )nit shall certi!y to the correctness and validity o!
obligations, and availability o! !unds& 9oth 9udget and Accounting
)nits shall coordinate in the !illing up o! the Status o! the ?bligation in
their respective copies o! the A:?9S
Sec& %+& !roce'"re *or t#e Recor'ing o* O(ligation
Area o!
2esponsibility
Se6&
No& Activity
9udget )nit
*oncerned Sta!! # 2eceives the .isbursement
7oucher83ayroll (.783), and supporting
documents, *ontract8 3urchase ?rder
(*83?) !rom concerned o!!ices8personnel&
7eri!ies completeness o! the documents& +!
incomplete, returns the documents to
concerned o!!ices !or completion& +!
complete, records the same in the logboo
maintained& >orwards the documents to
9udget Sta!! !or the preparation o! the
A:?9S&
9udget Sta!! $ 7eri!ies availability o! allotment based on
the 2A?s& +! no allotment is available,
returns the documents to the
o!!ice8personnel concerned e4cept as
authori5ed by the .9M&
#/
Area o!
2esponsibility
Se6&
No& Activity
< +! there is an available balance o! allotment
to cover the obligations, prepares an
A:?9S in three copies& +nitials the
A:?9S and !orwards the same to the
Gead o! the 9udget )nit !or review and
signature&
Note 1
Co"+ 2 of A($B! shall be attached to the
5<' #efer to Note /, !ec' 1/, )rocedures
for the Monitoring and #ecording of
Allotments #ecei3ed from 5BM for the
distribution of the other co"ies of A($B!'
Gead o! the
9udget )nit
@ 2eviews, checs the small bo4 opposite
the HAvailable and duly obligatedI portion
o! 9o4 A o! the A:?9S and a!!i4es
signature& >orwards the A:?9S and
documents to the 9udget Sta!! !or
recording in the appropriate 2A?s&
9udget Sta!! C 2ecords the amount obligated under the
H?bligationI column o! the 2A?s&
>orwards all copies o! the A:?9S and the
documents to the Accounting )nit !or
processing and signature&
Note /
$bligations shall be "osted in the
7$bligation =ncurred8 column of the #A$s
to arri3e at the balance of allotment still
a3ailable at a gi3en "eriod'
D 2eceives original o! A:?9S !rom the
Accounting )nit& +! there is no correction,
!iles the same to support the 2A?s&
?therwise, e!!ects correction in the 2A?s
or prepares a new A:?9S, as the case may
be&
$%
Area o!
2esponsibility
Se6&
No& Activity
Note 2
.or the succeeding acti3ities, refer to
!ec' 29, )rocedures for 5isbursements B+
Chec>s'
Note 9
There is no need to "re"are a new A($B!
for corrections6ad?ustments made b+ the
Accounting 1nit after the "rocessing of the
claims but before "a+ment is made'
Ad?ustment in the #A$s shall be effected
thru a "ositi3e entr+ %if additional
obligation is necessar+& or a negati3e
entr+ %if reduction& in the 7$bligation
=ncurred8 column'
Note :
)re"aration of new A($B! for the
following ad?ustments of obligations as
negati3e entries in the 7$bligation
=ncurred8 column shall be made:
refund of cash ad3ance granted during
the +ear
o3er"a+ment of e4"enses during the
+ear
disallowances6charges which become
final and e4ecutor+
Certified co"ies of official recei"ts for the
o3er"a+ments6refunds, co"ies of bills for
o3er"a+ments and Notice that the
disallowances are final and e4ecutor+
shall be furnished the Budget 1nit b+ the
Accounting 1nit for the "re"aration of
new A($B! ta>ing u" the ad?ustments'
$#
9& +N*?M;8*?::;*T+?NS AN. .;3?S+TS
%+&:=&%&%&% Recei$t8Income
Collection an' 9e$oit S0tem& The 2eceipts8+ncome *ollections and
.eposits System covers the processes o! acnowledging and reporting
income8collections, deposits o! collections with Authori5ed Government
.epository 9an (AG.9) or through the AG.9 !or the account o!
Treasurer o! the 3hilippines, and recording o! collections and deposits in
the boos o! accounts o! the agency&
%+&:=&%&%&+ So"rce o* Income o* t#e
National Government& The income o! the National Government are
classi!ied into general income accounts and speci!ic income accounts&
The !ollowing comprise the general income accounts, among others(
#& Subsidy +ncome !rom National Government
$& Subsidy !rom *entral ?!!ice
<& Subsidy !rom 2egional ?!!ice8Sta!! 9ureaus
@& +ncome !rom Government Services
C& +ncome !rom Government 9usiness ?perations
D& Sales 2evenue
1& 2ent +ncome
0& +nsurance +ncome
/& .ividend +ncome
#%& +nterest +ncome
##& Sale o! *on!iscated Goods and 3roperties
#$& >oreign ;4change (>?2;,) Gains
#<& Miscellaneous ?perating and Service +ncome
#@& >ines and 3enalties-Government Services and 9usiness
?perations
#C& +ncome !rom Grants and .onations
The speci!ic income accounts o! national government
agencies are classi!ied as !ollows(
#& +ncome Ta4es
$& 3roperty Ta4es
<& Ta4es on Goods and Services
$$
@& Ta4es on +nternational Trade and Transactions
C& ?ther Ta4es
D& >ines and 3enalties-Ta4 2evenue
1& ?ther Speci!ic +ncome
The descriptions o! all the accounts and the instructions as to
when these are to be debited and credited are provided in 7olume +++ o!
the NGAS Manual&
%+&:=&%&%&, Met#o' o* Acco"nting *or
Income& National government agencies adopt the !ollowing accounting
methods o! recording income(
#& Accrual Method - Accrual method
o! accounting shall be used by national government agencies
when income is reali5ed (earned) during the accounting
period regardless o! cash receipt& Accounts receivable is set
up and the general or speci!ic income accounts according to
nature and classi!ication are credited&
$& Modi!ied Accrual J )nder the
modi!ied accrual basis, income o! an agency is recorded as
A.e!erred *redits to +ncomeB and the appropriate receivable
account is debited& The income account is recogni5ed upon
receipt o! collection and the A.e!erred *redits to +ncomeB
account is ad'usted accordingly&
<& *ash 9asis - *ash basis o!
accounting shall be used !or all other ta4es, !ees, charges and
other revenues where accrual method is impractical& The
income account is credited upon collection o! the cash or its
e6uivalent&
%+&:=&%&%&. Fine an' !enaltie& >ines
and penalties, either on ta4 revenues or other speci!ic income accounts,
shall be recogni5ed as income o! the year these were collected&
%+&:=&%&%&: Ot#er Recei$t& ?ther
receipts o! national government agencies shall be comprised o!, but not
limited to the !ollowing(
$<
#& 2e!und o! cash advances - =hen cash advances !or o!!icial
travels are granted, the account A.ue !rom ?!!icers and
;mployeesB is debited and when re!unds are made, the
same account is credited& *ash advances !or salaries and
wages shall be recorded as debits to the account A*ash-
.isbursing ?!!icersB and any re!unds thereo! shall be
credited to the same account&
$& 2eceipts o! per!ormance8bidders8bail bonds - 3er!ormance
bond posted by contractor or supplier to guaranty !ull and
!aith!ul per!ormance o! their contract may be in the !orm o!
cash or certi!ied checs or surety& 3er!ormance bond in cash
or certi!ied chec shall be acnowledged by the issuance o!
o!!icial receipt and recorded in the boo o! accounts by the
Accountant thru a "ournal ;ntry 7oucher (";7) !or the
purpose& +n case o! surety bond, an acnowledgement
receipt shall be issued by the authori5ed o!!icial&
<& 2e!und !or overpayment o! e4penses - 2e!unds as a result o!
overpayment o! e4penses shall be recorded as a credit to the
appropriate e4pense account i! paid in the same year or to
3rior EearsI Ad'ustments i! paid in the ensuing year& This
transaction shall reduce the amount o! e4pense previously
recorded&
@& *ollections made on behal! o! another agency or private
companies - *ollections made on behal! o! other agencies
which are later remitted to them are recorded under accounts
A.ue to NGAsB, A.ue to :G)sB or A .ue to G?**sB as
the case maybe& Authori5ed collections made on behal! o!
private entities, lie shares o! proponents o! 9uilt-?perate-
Trans!er (9?T) 3ro'ects are recorded as A?ther 3ayablesB&
C& +nter-agency trans!erred !unds - *ash received !rom another
agency !or the purpose o! implementing pro'ects o! that
agency is recorded in the boos as a credit to account A.ue
to NGAsB or A.ue to :G)sB, as the case maybe&
$@
%+&:=&%&%&; 9e$oit o* Collection& All
*ollecting ?!!icers shall deposit intact all their collections, as well as
collections turned over to them by sub-collectors8tellers, with AG.9
daily or not later than the ne4t baning day& They shall record all
deposits made in the *ash 2eceipts 2ecord&
%+&:=&%&%&< Re$orting o* Collection
an' 9e$oit& At the close o! each business day, the *ollecting ?!!icers
shall accomplish the 2eport o! *ollections and .eposits (2*.) in
accordance with the instructions provided in 7olume ++ o! the NGAS
Manual !or the 2*.& All collections shall be deposited with
AG.9 !or the account o! the agency or the Treasurer o! the 3hilippines
daily or not later than the ne4t baning day&
%+&:=&%&%&> !roce'"re *or Collection an' 9e$oit T#ro"g#
t#e Collecting O**icer
Area o!
2esponsibility
Se6&
No& Activity
*ash )nit .aily
.esignated Sta!! # 2eceives cash8chec !rom payor
representing collection based on the ?rder
o! 3ayment (?3) prepared by the
Accounting )nit&
$ +ssues ?!!icial 2eceipt (?2) to
acnowledge receipt o! cash8chec&
Note 1
.unding Chec>s recei3ed b+ the Cashier6
Collecting $fficer of the #$6$1 for its
o"erational re@uirements shall be issued
corres"onding $#''
Note /
!e"arate sets of $#s shall be used for the
$C
Area o!
2esponsibility
Se6&
No& Activity
#A and NA Boo>s'
Note 2
The $# shall be "re"ared in three co"ies
and shall be distributed as follows:
$riginal 0 )a+or
Co"+ / 0 To be attached to the #e"ort
of Collections and 5e"osits
%#C5&
Co"+ 2 0 Cash 1nit file
< 2ecords collections in the *ash 2eceipts
2ecord (*22)&
Note 9
!e"arate C## shall be maintained for
collections under the #A and NA Boo>s'
@ 3repares .eposit Slip (.S) in three copies&
Note :
The 5! shall be distributed as follows:
$riginal 0 AA5B
Co"+ / 0 To be attached to #C5
C .eposits collections with AG.9&
Note ;
Collections "ertaining to NA Boo>s shall
be de"osited with the AA5B for the
account of the Treasurer of the )hili""ines
D 9ased on the validated .S !rom the AG.9
and copy o! the ?2s on !ile, prepares
$D
Area o!
2esponsibility
Se6&
No& Activity
2eport o! *ollections and .eposits (2*.)
in two copies& +nitials on the 2*. and
!orwards the same together with *opy $ o!
the ?2s and .S to the Gead o! the *ash
)nit !or review and signature&
Gead o! the *ash
)nit
1 2eviews and signs the 2*.& >orwards
original o! 2*., *opy $ o! the ?2s and
.S to the .esignated Sta!! !or submission
to the Accounting )nit&
Note B
The #C5 shall be distributed as follows:
$riginal 0 Accounting 1nit together
with Co"+ No' / of the
$#s and 5! 0 to su""ort
the C-<
Co"+ / 0 Cash 1nit file
.esignated Sta!! 0 2ecords the 2*. in the logboo
maintained and !orwards the same with the
?2s and .S to the Accounting )nit !or
recording in the boos o! accounts&
Accounting )nit
Accounting Sta!! / 2eceives original o! 2*. with *opy $ o!
the ?2s and .S !rom the *ash )nit&
2ecords receipt in the logboo maintained
!or the purpose and !orwards the same to
the 9ooeeper !or review and preparation
o! the ";7&
9ooeeper #% 9ased on the 2*., prepares ";7 in two
copies and signs A3repared byB portion o!
the ";7& >orwards the ";7 and documents
to the Gead o! the Accounting )nit !or
$1
Area o!
2esponsibility
Se6&
No& Activity
review and signature&
Gead o! the
Accounting
)nit
## 2eviews and signs H*erti!ied *orrect byI
portion o! the ";7& >orwards the ";7 and
documents to the 9ooeeper !or
recording in the *ash 2eceipt "ournal
(*2") and8or *ash "ournal (*") as the case
may be&
Note D
C#C shall be used to record collection
under the #A Boo>s while the CC shall be
used to record collections under the NA
Boo>s'
Note E
!ec' B1, )re"aration and !ubmission of
Trial Balances and $ther #e"orts'
%+&:=&%&%&= !roce'"re *or Collection
t#ro"g# Accre'ite' Agent -an/ 1AA-2
Area o!
2esponsibility
Se6&
No& Activity
Accounting )nit
2eceiving8
2eleasing Sta!!
# 2eceives collection documents !rom the
AA98AG.9& 2ecords receipt in the
logboo maintained !or the purpose&
>orwards the same to the 9ooeeper !or
preparation o! the ";7&
9ooeeper $ 9ased on the received collection
documents, prepares ";7 in two copies,
Signs A3repared byB portion o! the ";7&
>orwards the ";7 and documents to the
$0
Area o!
2esponsibility
Se6&
No& Activity
Gead o! the Accounting )nit !or review
and signature&
Gead o! the
Accounting )nit
< 2eviews and signs A*erti!ied *orrect byB
portion o! the ";7& >orwards the ";7 and
documents to the 9ooeeper !or
recording in the General "ournal (G")&
Note 1
!ec' B1, )re"aration and !ubmission of
%+&:=&%&%&%? 9i#onore' C#ec/&
There are instances that checs received by *ollecting ?!!icers in
payment o! ta4es, !ees and other debt due the government are dishonored
by the drawee bans& A chec is said to be dishonored by non-payment
when, upon its being duly presented !or payment, such payment is
re!used or cannot be obtained& (Sec& 0<, 2A No& $%<#, Negotiable
+nstrument :aw)& +t may also be de!ined as those checs paid to the
agency, which were dishonored by the AG.9 due to .rawn Against
+nsu!!icient >und (.A+>) or .rawn Against )ncleared .eposits
(.A).)&
$/
%+&:=&%&%&%% !roce'"re in
Recor'ing 9i#onore' C#ec/
Area o!
2esponsibility
Se6&
No& Activity
*ash )nit
.esignated Sta!! # 2eceives !rom AG.9 the .ebit Memo
(.M) and copies o! dishonored checs&
$ 7eri!ies the dishonored checs against the
previous monthsI 2*.s maintained on !ile
to ascertain that the checs were included
in the previous monthsI collections& +! not
included, veri!ies !rom AG.9 the details
o! the dishonored checs&
< +! dishonored checs are included in the
2*.s, prepares Notice o! .ishonor to
in!orm the drawers8indorsers8payors that
the checs were dishonored by the AG.9&
Note 1
The Notice of 5ishonor shall be "re"ared
in three co"ies and shall be distributed as
follows:
$riginal 0 5rawer %To be deli3ered
"ersonall+ or thru registered mail&
Co"+ / 0 Accounting 1nit file
@ 2etrieves !rom !ile copy o! the ?2
covering the dishonored chec and
indicates in the ?2 the !ollowing notation(
Cancelled %date of Notice of 5ishonor& "er
Ban> 5ebit6<oucher No'FFFFF dated
FFFFFFFFF
<%
Area o!
2esponsibility
Se6&
No& Activity
C 2etrieves *22 on !ile and records the
dishonored checs with the !ollowing
notation(
ATo ta>e u" Ban>8s 5ebit Memo No' FFF
dated FFFF co3ering Chec> No' FFF for
) FFFFFFFFFFFF ac>nowledged under
$# No' FFFFF dated FFFFFFF'
D 3repares list o! dishonored checs in two
copies& >orwards *opy $ o! the list and the
dishonored checs to the Accounting )nit
!or preparation o! the ";7&
Accounting )nit
Accounting Sta!!
1 2eceives the list together with originals o!
dishonored checs and the .ebit Memo
!rom the *ash )nit and records the same in
the logboo maintained !or the purpose&
0 9ased on the list, prepares the ";7 in two
copies& Signs A3repared byB portion o! the
";7 and !orwards the same to the Gead o!
the Accounting )nit !or review and
signature&
Gead o! the
Accounting )nit
/ 2eviews and signs A*erti!ied *orrect byB
portion o! the ";7& >orwards the ";7
supported by the list, originals o!
dishonored checs and notice o! dishonor
to the 9ooeeper !or recording in the
boos o! accounts&
Note /
!ec'B1, )re"aration and !ubmission of
<#
Area o!
2esponsibility
Se6&
No& Activity
*& .+S9)2S;M;NTS
Sec& %,& 9i("rement 9e*ine'& .isbursements constitute
all cash paid out during a given period either in currency (cash) or by
chec& +t may also mean the settlement o! government
payables8obligations by cash or by chec& +t shall be covered by
.isbursement 7oucher (.7)83etty *ash 7oucher (3*7) or payroll&
Sec& %.& -aic Re7"irement *or 9i("rement& The basic
re6uirements applicable to all types o! disbursements made by national
government agencies are as !ollows(
#& ;4istence o! a law!ul and su!!icient allotment certi!ied as
available by the 9udget ?!!icer;
$& ;4istence o! a valid obligation certi!ied by the *hie!
Accountant8Gead o! Accounting )nit;
<& :egality o! transactions and con!ormity with laws, rules and
regulation;
@& Approval o! the e4pense by the *hie! o! ?!!ice or by his
duly authori5ed representative; and
C& Submission o! proper evidence to establish the claim&
Sec& %:& 9i("rement S0tem& The .isbursements System
involves the preparation and processing o! disbursement voucher (.7);
preparation and issuance o! chec; payment by cash; granting,
utili5ation, and li6uidation8replenishment o! cash advances&
<$
%:&:=&%&%&% Certi*ication on
9i("rement& .isbursements !rom government !unds shall re6uire the
!ollowing certi!ications on the .7(
#& *erti!ication and approval o! vouchers and payrolls as to
validity, propriety and legality o! the claim (9o4 A o! .7)
by head o! the department or o!!ice who has administrative
control o! the !und concerned;
$& Necessary documents supporting the .7 and payrolls as
certi!ied and reviewed by the Accountant8Gead o!
Accounting )nit (9o4 9 o! .7); and
<& *erti!ication that !unds are available !or the purpose by the
Accountant8Gead o! Accounting )nit (9o4 9 o! .7)&
%:&:=&%&%&+ 9i("rement (0 C#ec/&
*hecs shall be drawn only on duly approved .7 or 3*7& These shall be
reported and recorded in the boos o! accounts only when actually
released to the respective payees&
Two types o! checs are being issued by government agencies as
!ollows(
#& "odified #isbursement $ystem "#$! Chec%s -
issued by government agencies chargeable against the
account o! the Treasurer o! the 3hilippines, which are
maintained with di!!erent M.S - Government Servicing
9ans (GS9s)& These are covered by Notice o! *ash
Allocation, an authori5ation issued by the .9M to
government agencies to withdraw cash !rom the National
Treasury through the issuance o! M.S checs or other
authori5ed mode o! disbursements&
$& Commercial Chec%s - issued by government
agencies chargeable against the Agency *hecing Account
with GS9s& These are covered by income8receipts authori5ed
to be deposited with AG.9s; and !unding checs received
by 2?8?)s !rom *?s82?s, respectively&
<<
%:&:=&%&%&, Recor'ing o* C#ec/
9i("rement in t#e C#ec/ 9i("rement Recor' 1C/9R2& All
checs issued including cancelled checs shall be recorded
chronologically in the *.2& The dates checs were actually released
shall be indicated in the appropriate column provided !or in the *.2&
%:&:=&%&%&. Re$orting o* C#ec/
I"e'8Releae'& All checs actually released to claimants shall be
included in the 2eport o! *hecs +ssued (2*+), which shall be prepared
daily by the *ashier& The 2*+ shall be submitted to the Accounting )nit
!or the preparation o! ";7& All unreleased checs as o! the report date
shall be enumerated in a A:ist o! )nreleased *hecsB to be attached to
the 2*+&
%:&:=&%&%&: !roce'"re *or
9i("rement (0 C#ec/&
<@
Area o!
2esponsibility
Se6&
No& Activity
A& 3rocessing o! .isbursement 7oucher
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
# 2eceives *opies #-< o! .7, originals o!
supporting documents and *opies #-< o!
A:?9S !rom the 9udget )nit& *hecs
completeness o! supporting documents& +!
incomplete, returns to the concerned party
!or compliance&

$ +! complete, stamps A2eceivedB and
indicates date o! receipt and initials on the
stamped H2eceivedI portion o! the .7&
Note 1
5< that shall be "aid out of non0budgetar+
recei"ts shall not "ass the Budget 1nit'
No A($B! is needed' %-4am"le 0 refund of
cash bond&'
< Assigns .7 number and records in the
logboo the .7 number and date, payee,
particular and amount& >orwards *opies
#-< o! .7, originals o! supporting
documents and *opies #-< o! A:?9S to
the .esignated Sta!! !or processing&
Note /
The numbering structure for 5< shall be
as follows:
** 0 ** 0 ****

!erial Number
<C
(?ne series !or each year)
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
<D
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
<1
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
<0
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
</
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@%
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@#
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@$
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@<
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@@
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@C
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@D
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@1
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@0
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
@/
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
C%
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
C#
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
C$
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
C<
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
C@
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
CC
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
CD
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
C1
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
C0
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
C/
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
D%
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
D#
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
D$
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
D<
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
D@
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
DC
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
DD
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
D1
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
D0
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
D/
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
1%
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
1#
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
1$
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
1<
Area o!
2esponsibility
Se6&
No& Activity
(.7)
Accounting )nit
2eceiving8
2eleasing Sta!!
!or compliance&

Note 1
cash bond&'
Note /
as follows:
** 0 ** 0 ****

!erial Number
1@
%:&:=&%&%&; 9i("rement (0 Ca#&
.isbursements by cash shall be made !rom cash advances drawn and
maintained in accordance with *?A rules and regulations& *ash
payments shall be made based on duly approved payrolls8disbursements
vouchers&
%:&:=&%&%&< Ca# A'vance *or Travel&
*ash advances granted !or travel shall be accounted !or as .ue !rom
?!!icers and ;mployees and these are sub'ect to li6uidation upon travel
completion& >or li6uidation o! travel where the amount o! cash advance is
e6ual to or more than the travel e4penses incurred, the :i6uidation 2eport
!orm shall be prepared by the o!!icers8employees concerned and submitted
to the Accounting )nit as basis !or ";7 preparation& The e4cess cash
advance shall be re!unded and an ?2 shall be issued to acnowledge
receipt thereo!& +n case the amount o! cash advance is less than the travel
e4penses incurred, a :i6uidation 2eport shall be submitted to li6uidate the
cash advance previously granted and a .7 shall be prepared to claim
reimbursement o! the de!iciency in amount&
%:&:=&%&%&> !roce'"re *or 9i("rement (0 Ca# 4 !a0ment
*or !a0roll an' Ot#er E5$ene
Area o!
2esponsibility
Se6&
No& Activity
*ash )nit
Accountable8
.isbursing
?!!icer
# 2eceives the approved chec !rom the
*ashier& 2ecords in the *ash
.isbursements 2ecord (*.2) the date,
re!erence, name o! payee, particulars and
the amount o! chec in the debit column&
$ ;ncashes chec in a GS9&
< 3ays o!!icials and employees8other payees&
Note 1
-m"lo+ees6"a+ees shall sign on the
1C
Area o!
2esponsibility
Se6&
No& Activity
recei3ed "ortion of the "a+roll65< to
ac>nowledge recei"t of "a+ment'
Note /
=f there are unclaimed salaries, refund the
same within a reasonable time' $#
re"resenting the refund shall be issued b+
the Cashier&
@ 2ecords payment including the re!und !or
unclaimed salary in the credit column o!
the *.2&
At the ;nd o! the Month
C 9ased on the paid payroll8.7 and
supporting documents, prepares 2eport o!
.isbursements (2.) in two copies& Signs
the A*erti!icationB portion o! the 2.&
Note 2
The #5 shall ser3e as the li@uidation
re"ort of the cash ad3ance granted to the
5isbursing $fficer'
Note 9
The #5 shall be distributed as follows:
$riginal 0 Accounting 1nit together with
the originals of the "aid
5<s6)a+rolls and su""orting
documents for C-< "re"aration
Co"+ / 0 Cash 1nit file
Accounting )nit
2eleasing8
2eceiving *ler
D 2ecords in the logboo, indicates
H2eceivedI and signs all copies, !orwards
the 2. to the 9ooeeper !or ";7
1D
Area o!
2esponsibility
Se6&
No& Activity
preparation, and returns *opy $ to the *ash
)nit&
9ooeeper 1 3repares ";7 based on the 2. and
supporting documents received&
Note :
!ec'B1, )re"aration and !ubmission of
0 2ecords payroll payment in the individual
+nde4 o! 3ayments (+3) o! o!!icials and
employees&
11
%:&:=&%&%&= 9i("rement T#ro"g#
-an/ 4 !a0roll !a0ment
Area o!
2esponsibility
Se6&
No& Activity
*ash )nit
*ash Sta!! # 2eceives the approved chec, .7 and
>ollowing MonthsF 3ayroll (>M3), signs
the logboo o! the releasing o!!ice, and
!orwards the documents to the *ashier&
$ .eposits the chec to the 9an 3ayroll
Account together with the original o! the
Summary o! ;mployees Net ;arnings
(S;N;) received !rom Accounting )nit&
>iles temporarily *opies #-$ o! >M3, copy
$ o! the chec, and *opies #-< o! .7 !or
the preparation o! 2*+&
Note 1
The "a+ee of the chec> is the !er3icing
Ban> whose authorized re"resentati3e shall
ac>nowledge recei"t of the chec> b+
signing on the original of the 5<'
Note /
#efer to !e@' No' 1E, !ec'29, )rocedures
for 5isbursements b+ Chec>s'
Note 2
)a+roll "a+ment through ban> shall also
be recorded in the =) maintained b+ the
Accounting 1nit'
10
%:&:=&%&%&%? 9i("rement T#ro"g#
!ett0 Ca# F"n'& 3etty *ash >und shall be maintained under the imprest
system& The !und shall be su!!icient !or the non-recurring, emergency and
petty e4penses o! the agency& .isbursements !rom the !und shall be
through the 3etty *ash 7oucher (3*7) which shall be approved by
authori5ed o!!icials and signed by the payee to acnowledge the amount
received& The o!!icial receipt or its e6uivalent is attached to the 3*7&
%:&:=&%&%&%% !roce'"re *or
9i("rement T#ro"g# !ett0 Ca# F"n'
Area o!
2esponsibility
Se6&
No& Activity
7arious )nit
3etty *ash
*ustodian #
2eceipt o! *hec !or the ;stablishment8
2eplenishment o! 3etty *ash >und
2eceives chec !rom *ashier !or the
establishment8replenishment o! petty cash
!und& 2etrieves *ash .isbursement 2ecord
(*.2) and records the date, re!erence and
the amount o! chec in the
H.isbursementsI column&
$ ;ncashes chec in GS9 and eeps the cash
in a sa!ety vault&
2e6uesting
3ersonnel
<
)tili5ation o! 3etty *ash >und
Accomplishes 9o4 A H2e6uested byI
portion o! the 3etty *ash 7oucher (3*7)&

+mmediate
Supervisor
@ Signs 9o4 A HApproved byI portion o! the
3*7 and returns to 2e6uesting 3ersonnel&
2e6uesting
3ersonnel
C Submits to the 3etty *ash *ustodian !or
the release o! !und&
1/
Area o!
2esponsibility
Se6&
No& Activity
3etty *ash
*ustodian
D 2eceives !rom the 2e6uesting 3ersonnel
the 3*7 duly approved by concerned
o!!icial&
1 )pon granting o! the petty cash advance
and signs in 9o4 9 H3aid byI portion o! the
3*7&
2e6uesting
3ersonnel
0 2eceives petty cash and signs in 9o4 9
H*ash 2eceived byI portion o! the 3*7&
3etty *ash
*ustodian
/ +ssues *opy $ o! the 3*7 to re6uesting
personnel
#% 2etrieves *.2 !rom !ile and records paid
3*7s& >ills up the !ollowing columns(
date, re!erence, name o! payee, nature o!
payment, amount in the credit column and
cash advance balance&
## >iles the original o! 3*7 awaiting
li6uidation&
:i6uidation o! 3etty *ash Advance
#$
#<
2eceives !rom 2e6uesting 3ersonnel
*opy $ o! the 3*7 together with
supporting documents& *hecs and reviews
completeness o! documents such as the
date, amount and nature o! e4penses paid
as shown in the supporting documents&
+! incomplete, returns to 2e6uesting
3ersonnel !or completion o! needed
supporting documents&
+! complete, retrieves the original o! 3*7
0%
Area o!
2esponsibility
Se6&
No& Activity
!rom !ile and !ills up 9o4 . H:i6uidation
SubmittedI portion o! the original and
*opy $ o! 3*7s&
#@ *hecs the appropriate bo4es !or
H2eceived 2e!undI or H2eimbursement
3aidI portion and signs 9o4 * o! the 3*7&
2e6uesting
3ersonnel
#C *hecs and !ills up the appropriate bo4es
!or H:i6uidation SubmittedI and
H2eimbursement 3aidI upon submission o!
necessary supporting documents and
receipt or reimbursement o! cash, i! any,
and signs the 3*7&

3etty *ash >und
*ustodian
#D 2eturns *opy $ o! the 3*7 to the
2e6uesting 3ersonnel&
#1 +! the amount granted is e6ual to the
amount paid as shown in the li6uidated
3*7, proceeds to Se6uence No& #0&
+! the amount is not e6ual to the amount
paid, retrieves !rom !ile the *.2 and
records the necessary ad'ustments based
on the li6uidated 3*7& >ills up the
!ollowing columns( date, re!erence, name
o! payee, and nature o! payment, amount
in the appropriate debit, credit and
balance columns&
#0 >iles the original o! the 3*7 together with
the supporting documents awaiting
replenishment&
0#
Area o!
2esponsibility
Se6&
No& Activity
2eplenishment o! 3etty *ash >und
3etty *ash >und
*ustodian
#/ 2etrieves !rom !ile the original o! the 3*7
together with the supporting documents&
*hecs the completeness o! all 3*7s !or
replenishment&
$% 3repares the 3etty *ash 2eplenishment
2eport (3*22) in two copies based on
3*7s in numerical se6uence and !ills up
the !ollowing columns( date, 3*7 No&,
particulars and amount&
$# Signs in the HCertified Correct b+8 portion
o! the 3*22&
$$ 9ased on the 3*22, prepares .7 in three
copies& >orwards *opies #-< o! the .7,
original o! the 3*22 and 3*7, and
supporting documents to Authori5ed
?!!icial !or review and signature&
Authori5ed
?!!icial
$< Signs in 9o4 A portion o! the .7&
3etty *ash >und
*ustodian
$@ >orwards *opies #-< o! the .7, originals
o! 3*22 and 3*7s and supporting
documents to 9udget .ivision !or
preparation o! the A:?9S&
Note 1
!ec'1:, )rocedures in the #ecording of
$bligations'
0$
G. PROPERTY, PLANT AND EQUIPMENT, AND INVENTORY
ACCOUNTS
%:&:=&%&%&%+ !"rc#ae or Contr"ction
o* !ro$ert06 !lant an' E7"i$ment& 3roperty, plant and e6uipment
ac6uired through purchase shall include all costs incurred to bring them
to the location necessary !or their intended use, lie transportation costs,
!reight charges, installation costs, etc& These are recorded in the boos o!
accounts as Assets a!ter inspection and acceptance o! delivery&
.uring construction period, property, plant and e6uipment shall
be classi!ied and recorded as A*onstruction in 3rogressB with the
appropriate asset classi!ication& As soon as these are completed, the
K*onstruction in 3rogressK account shall be trans!erred to the appropriate
asset accounts&
Accounts A3ublic +n!rastructuresB and A2e!orestation 3ro'ectsB
are closed to AGovernment ;6uityB account and the asset is recorded in
the 2egistry o! 3ublic +n!rastructures82e!orestation 3ro'ects at the end o!
the year&
%:&:=&%&%&%, !ro$ert0 an' Inventor0
Acco"nting S0tem& The 3roperty and +nventory Accounting System
consists o! the system o! monitoring, controlling and recording o!
ac6uisition and disposal o! property and inventory&
The system starts with the receipt o! the purchased inventory
items and e6uipment& The re6uesting o!!ice in need o! the inventory
items and e6uipment a!ter determining that the items are not available in
stoc shall prepare and cause the approval o! the 3urchase 2e6uest (32)&
9ased on the approved 32 and a!ter accomplishing all the re6uired
procedures adopting a particular mode o! procurement, the agency shall
issue a duly approved 3urchase ?rder& 3rocedures relative to the
obligation o! the purchase order and payment o! the deliveries are
0<
discussed under Sections #@ and <#, Accounting !or ?bligation and
.isbursements by *hec, respectively&
The sub-systems are as !ollows(
#& 2eceipt, +nspection, Acceptance
and 2ecording .eliveries o! +nventory +tems and ;6uipment
$& 2e6uisition and +ssuance o!
+nventory +tems
<& 2e6uisition and +ssuance o!
;6uipment
Sec& %;& !er$et"al Inventor0 Met#o'& 3urchase o! supplies
and materials !or stoc, regardless o! whether or not they are consumed
within the accounting period, shall be recorded as +nventory account&
)nder the perpetual inventory method, an inventory control account is
maintained in the General :edger on a current basis&
2egular purchases shall be recorded under the +nventory account
and issuance thereo! shall be recorded based on the 2eport o! Supplies
and Materials +ssued& 3urchases out o! the 3etty *ash >und shall be
charged immediately to the appropriate e4pense accounts&
The Accounting )nit shall maintain perpetual inventory records,
such as the Supplies :edger *ards !or each inventory stoc, 3roperty,
3lant and ;6uipment :edger *ards !or each category o! plant, property
and e6uipment including wor and other animals, livestoc, etc& The
subsidiary ledger cards shall contain the details o! the General :edger
accounts&
>or chec and balance, the 3roperty and Supply ?!!ice8)nit shall
maintain 3roperty *ards (3*) !or property, plant and e6uipment, and
Stoc *ards (S*) !or inventories& The balance in 6uantity per 3* and S*
should always reconcile with the ledger cards o! the Accounting )nit&
0@
Sec& %<& Moving Average Met#o'& The moving average
method o! costing shall be used !or costing inventories& This is a method
o! calculating cost o! inventory on the basis o! weighted average on the
date o! issue& The Accounting )nit shall be responsible in computing the
cost o! inventory on a regular basis&
Sec& %>& !roce'"re in t#e Recei$t6 In$ection6 Acce$tance
an' Recor'ing 9eliverie o* Inventor0 Item an' E7"i$ment
Area o!
2esponsibility
Se6&
No& Activity
3roperty and
Supply )nit
3roperty8
Supply ?!!icer #
.elivery o! ;6uipment and +nventory
+tems
Signs A2eceivedB portion o! the original
and *opy $ o! the .elivery 2eceipt (.2)&
>iles the original and returns *opy $ o! the
.2 to the Supplier83rocurement Service&
$ 3repares +nspection and Acceptance 2eport
(+A2) in three copies& >orwards +A2,
original o! .2, and *opy $ o! approved
3? !rom !ile to 3roperty +nspector !or
inspection o! deliveries&
Note 1
5istribution of the =A# shall be as follows:
$riginal 0 !u""lier %to be attached to
the 5<&
Co"+ / 0 )ro"ert+ =ns"ector6
=ns"ection Committee
Co"+ 2 0 )ro"ert+ and !u""l+ 1nit file
3roperty
+nspector
< +nspects and veri!ies items as to 6uantity
and con!ormity with speci!ications based
0C
Area o!
2esponsibility
Se6&
No& Activity
on the .2 and approved 3?& +! in order,
signs and indicates date o! inspection in
the A+nspectionB column o! the +A2&
2etains copy < o! +A2 and !orwards the
items and *opy #-$ o! +A2, original o! .2
and *opy $ o! 3? to 3roperty8Supply
?!!icer !or acceptance&
@ +! speci!ications are not in order or
delivery is not complete, indicates notation
on the +A2 that the deliveries are not in
con!ormity with speci!ications agreed
under the approved 3? or deliveries are
not complete& >orwards the +A2 to the
3roperty8Supply ?!!icer&
3roperty8Supply
?!!icer
C Signs in HAcceptanceI column,
acnowledging receipt o! the items
delivered& *hecs the appropriate bo4
whether complete or partial (indicate
6uantity received) delivery, and indicate
the date o! receipt and remars, i! any&
>orwards items to 3roperty8Supply
*ustodian !or sa!e-eeping8storage&
D 3repares .7 indicating the Supplier as
3ayee& Attaches the original +A2, *opy $
o! .2, 3? and photocopy o! 32&
>orwards documents to 9udget )nit !or
the preparation o! A:?9S& >orwards copy
$ o! +A2 and copy o! 3? to the
3roperty8Stoc *ard Leeper !or recording
in the 3roperty8 Stoc *ards&
Note /
0D
Area o!
2esponsibility
Se6&
No& Activity
.or succeeding acti3ities on "rocessing of
"a+ment for deli3ered in3entor+ items and
e@ui"ment, refer to !ec'1:, )rocedures in
the #ecording of $bligations and !ec' 29
)rocedures in 5isbursements b+ Chec>s'
Note 2
.or "urchases made through the
)rocurement !er3ice %)!&, the 5< shall be
"re"ared on the basis of the A""ro3ed
Agenc+ )rocurement #e@uest' The
"a+ment shall be made directl+ to the )!'

Accounting )nit
33;:*8S:*
Leeper 1
A!ter 3ayment o! .eliveries
3osts necessary in!ormation to the
3roperty, 3lant and ;6uipment :edger
*ard (33;:*)8Supply :edger *ard (S:*)
based on the paid documents !orwarded by
the *ash )nit&
Sec& %=& !roce'"re in t#e Re7"iition an' I"ance o*
Inventor0 Item
01
Area o!
2esponsibility
Se6&
No& Activity
*oncerned ?!!ice
2e6uesting
3ersonnel #
+n6uiry !or the availability o! supplies
3repares the Supplies Availability +n6uiry
(SA+) in two copies& Accomplishes the
!orm !or item description, unit and
6uantity&
$ >ills up the H+n6uired byI portion o! SA+
and !orwards the same to Accounting )nit
!or processing&
Accounting )nit
Accounting Sta!! < 2eceives SA+ !rom 2e6uesting 3ersonnel&
2eviews and veri!ies the completeness o!
in!ormation&
@ 2etrieves !rom !ile the S:* and
determines availability8status o! stocs&
C >ills up the number, stoc number, status
o! stoc and HStatus provided byI portion
o! the SA+& 2eturns the original to the
2e6uesting 3ersonnel and !iles *opy $ o!
the SA+&
*oncerned ?!!ice
2e6uesting
3ersonnel D 2eceives the original o! SA+ !rom the
Accounting Sta!!& +! stoc is not available,
prepares 3urchase 2e6uest (32) !or the
item re6uested and !orwards the same to
3roperty and Supply )nit !or processing o!
the re6uest& +! stoc is available, prepares
2e6uisition and +ssue Slip (2+S) in three
copies& >ills up all the necessary
in!ormation e4cept !or the issuance portion
and signs H2e6uested byI portion o! the
2+S& >orwards the 2+S to Authori5ed
00
Area o!
2esponsibility
Se6&
No& Activity
*oncerned ?!!ice
2e6uesting
3ersonnel #
6uantity&
?!!icial !or approval&
Note 1
The #=! shall be distributed as follows:
$riginal 0 Accounting 1nit
Co"+ / 0 )ro"ert+ and !u""l+ 1nit
Co"+ 2 0 #e@uesting $ffice
Authori5ed
?!!icial
1 Signs the 7Approved byI portion o! the
2+S&
2e6uesting
3ersonnel
0 2eceives signed 2+S and !orwards to the
3roperty and Supply )nit together with the
original o! SA+ !or withdrawal o! inventory
items re6uested&
3roperty and Supply
)nit
Supply ?!!icer / 2eviews and veri!ies 2+S as to
completeness o! in!ormation& >ills up the
2+S No&8.ate, and Muantity, 2emars and
initials HApproved byI portion o! the 2+S,
and records 2+S in the logboo&
Gead o! the
3roperty and
Supply )nit
#% Signs the HApproved byI portion o! 2+S
and returns to the Supply ?!!icer !or
issuance o! the stoc&
Supply ?!!icer ## >ills up and signs the H+ssuanceI portion o!
the 2+S and issues inventory items
0/
Area o!
2esponsibility
Se6&
No& Activity
*oncerned ?!!ice
2e6uesting
3ersonnel #
6uantity&
re6uested to the 2e6uesting 3ersonnel&
*oncerned ?!!ice
2e6uesting
3ersonnel
#$ 2eceives supplies re6uested and sign in the
H2eceived byI portion o! the 2+S&
#< >iles permanently in numerical order *opy
$ o! 2+S and !iles temporarily the originals
o! 2+S and SA+ !or the preparation o!
2eport o! Supplies and Materials +ssued
(2SM+)&
#@
3reparation o! 2SM+
2etrieves the original copies o! 2+S and
SA+ !rom temporary !ile& *hecs the
completeness o! the 2+S& +! not complete,
veri!ies with the Supply ?!!icer& +!
complete, prepares 2SM+ in three copies&
#C +nitials in the H*erti!ied byI portion o! the
2SM+&
3roperty and Supply
)nit
Gead o! the
3roperty and
Supply )nit

#D Signs in the H*erti!ied byI portion o! the
2SM+&
/%
Area o!
2esponsibility
Se6&
No& Activity
*oncerned ?!!ice
2e6uesting
3ersonnel #
6uantity&
Stoc *ard
Leeper
#1 2eceives signed 2SM+ and !orwards to
Accounting )nit the original and *opy $
o! 2SM+ together with originals o! 2+S
and SA+& >iles *opy < o! 2SM+&

Accounting )nit
Accounting Sta!! #0
At the Start o! the .ay
2eceives original and *opy $ o! 2SM+,
and original SA+ and 2+S& *hecs and
veri!ies the completeness o! in!ormation&
2etrieves S:* !rom !ile and !ills up the
HTo be !illed up in the Accounting )nitI
portion o! 2SM+' 2ecords 2SM+ in the
S:*&
#/ Signs in the H3osted by8dateI portion o! the
2SM+&
$% >iles permanently in numerical order *opy
$ o! 2SM+ and !iles temporarily the
original 2+S, SA+ and 2SM+ !or recording
issuance o! inventory items in the boos o!
accounts&
$#
At Month ;nd
2etrieves the original 2+S, SA+ and 2SM+
!rom temporary !ile&
$$ 3repares ";7 in two copies based on the
/#
Area o!
2esponsibility
Se6&
No& Activity
*oncerned ?!!ice
2e6uesting
3ersonnel #
6uantity&
2SM+ to record the issuance o! stoc&
$< Signs in the H3repared byI portion o! the
";7&
Gead o! the
Accounting )nit
$@ Sign in the H*erti!ied *orrect byI portion
o! the ";7&
Accounting Sta!! $C 2eceives signed ";7 and !orwards to
9ooeeper the ";7, 2SM+, 2+S, and SA+
!or recording in the General "ournal& >iles
copy $ o! ";7&
Note /:
.or succeeding acti3ities, refer to !ec' B1,
)re"aration and !ubmission of Trial
Balances and $ther #e"orts'
%=&:=&%&%&% !roce'"re in t#e Re7"iition an' I"ance o*
E7"i$ment

Area o!
2esponsibility
Se6&
No& Activity
*oncerned ?!!ice
2e6uesting
3ersonnel # )pon receipt o! notice o! availability o! the
e6uipment re6uested, prepares 2+S in three
copies&

>ills up the necessary in!ormation
/$
Area o!
2esponsibility
Se6&
No& Activity
pertaining to re6uisition, e4cept H+ssuanceI
column o! the 2+S&
Authori5ed
?!!icial
$ 2eviews 2+S and signs H2e6uested 9yI in
the 2e6uisition column&
2e6uesting
3ersonnel
< 2ecords the signed 2+S in the logboo and
indicate date, particulars and remars&
>orwards the same to 3roperty and Supply
)nit !or processing o! the re6uisition&
3roperty and Supply
)nit
2eceiving Sta!! @ 2eceives signed 2+S !rom 2e6uesting
?!!ice& 2ecords the date, particulars and
2e6uesting ?!!ice in the logboo& Assigns
number on 2+S and issues *opy < to
2e6uesting 3ersonnel !or !ile&
3roperty ?!!icer C 7eri!ies 2+S and checs against the 32&
D +nitials 2+S and !orwards the original and
*opy $ o! 2+S to the Gead o! the 3roperty
and Supply )nit !or review and approval&
Gead o! the
3roperty and
Supply )nit
1 2eviews 2+S and signs the HApproved 9yI
portion o! 2+S& >orwards *opies #-$ o!
2+S to 3roperty *ustodian&
3roperty
*ustodian
0 9ased on the approved 2+S, assigns
number on the property being trans!erred8
issued& +ndicates the number in the 2+S&
/ 3repares Acnowledgment 2eceipt o!
;6uipment (A2;)& +ndicates the 6uantity,
unit, description and property number o!
/<
Area o!
2esponsibility
Se6&
No& Activity
the items being issued& Signs in the
H2eceived !romI and H+ssued byI portions
o! the A2; and 2+S, respectively& 2ecords
the date, number and particulars in the
A2; logboo&
Note 1
A#- shall be distributed as follows:
$riginal 0 )ro"ert+ and !u""l+ 1nit file
Co"+ / 0 #eci"ient or user of the
"ro"ert+ file
*oncerned ?!!ice
2e6uesting
3ersonnel
## 2etrieves *opy < o! 2+S& *hecs item i! it
is in con!ormity with 2+S& Signs
H2eceived 9yI portion o! original and
*opy $ o! A2; and 2+S&

#$ 2eturns original A2; and *opies #-$ o!
2+S to 3roperty *ustodian8?!!icer !or
recording in the 3roperty *ard& >iles *opy
$ o! A2; and *opy < o! 2+S&
Supply and 3roperty
)nit
3roperty ?!!icer #< >iles original o! A2; per accountable
o!!icer8employee and *opy $ o! 2+S&
>orwards the original 2+S to the
Accounting )nit&
Accounting )nit
33;:* Leeper
#@ 2eceives original o! the 2+S& 2etrieves the
33;:* and posts in!ormation pertaining
to issuance8trans!er o! property&
;& M+S*;::AN;?)S T2ANSA*T+?NS
/@
Sec& +?& Micellaneo" Tranaction& Miscellaneous transactions
are transactions types that are uni6ue and not recurring in the ordinary
course o! government operations& These seldom tae place or should not
happen at all& Some o! the miscellaneous transactions are as !ollows(
#& :oss o! *ash and 3roperty
$& 2e6uest !or 2elie! !rom Accountability
<& *ash ?verage
@& Stale M.S and *ommercial *hecs
C& Set-up and Settlement o! .isallowances
D& 2e!und o! ?verpayments
Sec& +%& Acco"nting *or Lo o* Ca# an' !ro$ert0& :oss o!
cash and property may be due to malversation, the!t, robbery, !ortuitous
event or other causes&
*ash shortage discovered during cash e4amination conducted by
auditors is reported through the 2eport o! *ash ;4amination& The
Auditor issues an audit report in case o! shortage in property
accountability& As soon as a shortage is de!initely established, the Auditor
shall issue a memorandum pertaining thereto and the Accountant shall
draw a ";7 to record the shortage as a receivable !rom the Accountable
?!!icer concerned&
+n case o! loss o! property due to other causes lie, the!t, !orce
ma'eure, !ire, etc&, a report thereon shall be prepared by the Accountable
?!!icer concerned !or purposes o! re6uesting relie! !rom accountability&
No accounting entry shall be made but the loss shall be disclosed in the
notes to !inancial statements pending result o! re6uest !or relie! !rom
accountability&
Sec& ++& Grant o* Relie* *rom Acco"nta(ilit0& When a
re6uest !or relie! !rom accountability !or shortages or loss o! !unds is
granted, a copy o! the decision shall be !orwarded to the *hie!
Accountant who shall draw a ";7 to record the transaction& The loss
shall be debited to the :oss o! Assets account and credited to the
appropriate receivable account& +n case the re6uest !or relie! is denied,
immediate payment o! the shortage shall be demanded !rom the
Accountable ?!!icer& 2estitution shall be acnowledged by the issuance
o! an o!!icial receipt&
/C
+n case the re6uest !or relie! !rom accountability !or loss o!
property caused by !ire, the!t, !orce ma'eure or other causes is granted, a
copy o! the decision shall liewise be !orwarded to the *hie! Accountant
!or the preparation o! the ";7& The loss shall be debited to the :oss o!
Assets account and credited to the appropriate asset account& +! re6uest
!or relie! !rom accountability is denied, the loss shall be taen up as a
receivable !rom the Accountable ?!!icer or employee liable !or the loss
and shall be credited to the appropriate asset account&
Sec& +,& Acco"nting *or Ca# Overage& +n case the cash
e4amination disclosed cash overage, as determined by the Auditor during
cash e4amination, the amount shall be !or!eited in !avor o! the
government and an o!!icial receipt shall be issued by the *ashier& The
cash overage shall be taen up as Miscellaneous +ncome&
Sec& +.& Acco"nting *or Stale C#ec/& *hecs may be
cancelled when they become stale& The depository ban considers a
chec stale, i! it has been outstanding !or over si4 months !rom date o!
issue or as prescribed&
reported in the 2*
A stale chec shall be mared cancelled on its !ace and reported
as !ollows(
#& )nclaimed stale checs which are
still with *ashier shall be cancelled and reported in the :ist
o! )nreleased *hecs as cancelled& The :ist o! )nreleased
*hecs is attached to the 2*+&
$& >or stale checs which are in the
hands o! the payees or holders in due course and re6uested
!or replacements, new checs may be issued upon
submission o! the stale checs to the Accounting )nit& A
certi!ied copy o! the previously paid .7s shall be attached
to the re6uest !or replacement& A ";7 shall be prepared to
tae up the cancellation& The replacement chec shall be
reported in the 2*+&
/D
Sec& +:& Acco"nting *or 9iallo3ance& .isallowances shall
be taen up in the boos o! accounts only when they become !inal and
e4ecutory& The Accountant shall prepare the ";7 to tae up the
2eceivable-.isallowances8*harges and credit the appropriate e4pense
account !or the current year or 3rior EearsI Ad'ustment account i!
pertaining to e4penses o! previous years&
*ash settlement o! disallowances shall be acnowledged through the
issuance o! an o!!icial receipt and reported by the *ashier in the 2*.&
Sec& +;& Acco"nting *or Over$a0ment& Sometimes
overpayments or even double payment o! e4penditures do happen in
agencies& These could be avoided with the institution o! proper controls
but some could not be avoided because o! built-in procedures& ?ne
e4ample is the payment o! payrolls& 3ayrolls are prepared in advance
and some agencies pay their employees through the baning system& All
these are done be!ore reports o! attendance are submitted, maing it
impossible to now the e4act amount to be paid in case there are
absences without pay during the pay periods& +n case o! overpayments,
re!unds shall be demanded o! the employees concerned&
Sec& +<& !ro4*orma Acco"nting Entrie& The !ollowing are
the pro-!orma accounting entries !or miscellaneous transactions(
!artic"lar Acco"nt Title
Acct&
Co'e
9r& Cr&
%& Ca# S#ortage
a. Cash shortage of the #isbursing &fficer
To tae up cash .ue !rom ?!!icers and ;mployees #$0 #C%
shortage *ash-.isbursing ?!!icers #%1 #C%
b. Cash $hortage of the Collecting &fficer
To tae up cash .ue !rom ?!!icers and ;mployees #$0 #C%
shortage *ash-*ollecting ?!!icers #%D C%
/1
Acct&
Co'e
9r& Cr&
+& Relie* *rom Acco"nta(ilit0 *or Lo o* Government F"n' an' !ro$ert0
a. 'equest for 'elief from Accountability (ranted.
To tae up relie! !rom
accountability
!or current year - -
!or prior years - -
:oss o! Assets
or
3rior EearsI Ad'ustments
/@0
C<< C%
.ue !rom ?!!icers and
;mployees #$0 C%
b. 'equest for 'elief from Accountability #enied.
To record the loss o!
!und by a .isbursing
?!!icer (allegedly
thru the!t ) - 3#C%
.ue !rom ?!!icers and ;mployees
*ash-.isbursing ?!!icers
#$0
#%1
#C%
#C%
c. Cash $ettlement)'estitution in case of denial of 'equest for 'elief from
Accountability
To tae up receipt o!
settlement
*ash-*ollecting ?!!icers
;mployees
#%D
#$0
C%
C%
To record deposit
c&# current year Subsidy +ncome !rom National
Government
D%# C%
*ash-*ollecting ?!!icers #%D C%
c&$ prior year 3rior EearsI Ad'ustment C<< C%
,& Ca# Overage
To tae up cash
overage discovered
during cash
e4amination
*ash J *ollecting ?!!icers
.ue to National Treasury
Miscellaneous $"erating
and !er3ice =ncome :*
#%D
@<<
C%
C%
To record deposit .ue to National Treasury
Miscellaneous $"erating
and !er3ice =ncome :*
@<< C%
/0
Acct&
Co'e
9r& Cr&
.& Stale C#ec/
a. $tale "#$ chec% issued in the current year for replacement
*hec cancellation *ash-National Treasury, M.S #%$ C%
Accounts 3ayable @%# C%
2eplacement Accounts 3ayable @%# C%
*ash-National Treasury, M.S #%$ C%
b. $tale "#$ chec% issued in the prior years for replacement
*hec cancellation 3rior EearsI Ad'ustments C<< C%
*ash-National Treasury, M.S #%$ C%
c. $tale commercial chec% issued in the current and prior years for replacement
*hec cancellation *ash in 9an-:ocal *urrency,
*urrent Account ##% C%
*ash in 9an-:ocal *urrency,
*urrent Account ##% C%
:& 9iallo3ance
a. 'ecording of disallowances for current year*s transaction
=hen the disallowances
becomes !inal and
e4ecutory -
overpayment o! o!!ice
supplies
2eceivables-.isallowances8
*harges
?!!ice Supplies ;4penses
#<0
0@/
#%
#%
Amount paid - 3#%%
Should be - /%

.i!!erence - #%
//
Acct&
Co'e
9r& Cr&
Settlement o!
.isallowance
2eceivables-.isallowances8
*harges
#%D
#<0
#%
#%
.eposit o! collection Subsidy +ncome !rom National
Government D%# #%
*ash-*ollecting ?!!icers #%D #%
Acct&
Co'e
9e(it Cre'it
b. 'ecording of disallowance for prior year*s transaction
=hen the disallowance
becomes !inal and
e4ecutory
2eceivables - .isallowances8
*harges
#<0
C<<
#%
#%
Settlement o!
disallowance
*ash - *ollecting ?!!icers
2eceivables - .isallowances8
*harges
#%D
#<0
#%
#%
.eposit o! collection 3rior EearsI Ad'ustments C<< #%
;& Re*"n' o* Over$a0ment
a. &verpayment ta%en up as receivable
To record
overpayment o!
salaries and wages
(=hen overpayment
is ascertained)
.ue !rom ?!!icers and ;mployees
Salaries and =ages - 2egular
3ay
#$0
0%#
#%
#%
To record receipt o!
re!und
;mployees
#%D
#$0
#%
#%
Government D%# #%
#%%
Acct&
Co'e
9e(it Cre'it
b. 'efund of overpayment not ta%en up as receivable
re!und o! Salaries and
=ages - 2egular 3ay
during the current
year
*ash - *ollecting ?!!icers
Salaries and =ages J 2egular
3ay
#%D
0%#
#%
#%
Government D%# #%
re!und o!
%verpayment in the
ensuing year
#%D
C<<
#%
#%
.eposit o! collection 3rior EearsI Ad'ustments C<< #%
#%#
C#a$ter .& Trial -alance6 Financial Re$ort
an' Statement
The >inancial Statements 3rocess
+<&:=&%&%&% Financial Re$orting
S0tem& This >inancial 2eporting System (>2S) includes the
preparation and submission o! trial balances, !inancial statements and
other reports needed by !iscal and regulatory agencies& The sub-systems
are as !ollows(
#& 3reparation and Submission o! Trial 9alances and
?ther 2eports
$& 3reparation and Submission o! >inancial Statements
#%$
3re-
*losing
T9
%&:=&%&%&%
3ost-
*losing
T9
Statement
o!
*ash
>lows
*losing
"ournal
;ntries
)nad'usted
Trial
9alance
Ad'ustin
g
;ntries
9alance
Sheet
Statement o!
+ncome and
;4penses
+<&:=&%&%&+ Trial -alance& The Trial
9alance shows the e6uality o! debit and credit balances o! all general
ledger accounts as o! a given period& +t is prepared and submitted
monthly, 6uarterly and annually& At the end o! the !iscal year, the pre-
closing and the post-closing trial balances shall be prepared&
+<&:=&%&%&, !"r$oe o* t#e Trial
-alance& The trial balance is prepared to(
#& prove the mathematical e6uality o!
the debits and credits a!ter posting;
$& uncover errors in 'ournali5ing and posting; and
<& serve as basis !or the preparation o! the !inancial
statements&
#%<
+<&:=&%&%&. !re4Cloing Trial -alance&
The 3re-*losing Trial 9alance (A""endi4 /) shall be prepared a!ter
recording the ad'usting 'ournal entries in the General "ournal and posting
the same to the General :edger& +t shows the ad'usted balances o! all
accounts as o! a given period& This is also described as the ad'usted trial
balance&
+<&:=&%&%&: A')"ting or Correcting
@o"rnal Entrie& )nder the matching principle, ad'ustments shall be
made !or economic activities that have taen place but are not yet
recorded at the time when the !inancial statements are prepared& Such
ad'usting 'ournal entries are made to ensure that revenues and e4penses
are recorded in the period when they are earned or incurred& Ad'ustments
are o! two main types( accrued items and de!erred items&
+<&:=&%&%&; A')"tment *or Accr"e'
Item& +t is an ad'usting entry !or an economic activity already
undertaen but not yet recorded into an asset and revenue accounts or a
liability and e4pense accounts& +t re6uires asset8revenue ad'ustments and
liability8e4pense ad'ustments&
+<&:=&%&%&< Aet8Reven"e
A')"tment& +t involves earned revenues not yet recorded as assets and
income at the end o! the accounting period& ;4amples are receivables
!or revenues already earned but not yet collected nor billed as o! the year
end&
Account Title
Account
Code #ebit Credit
+nterest 2eceivable #D# C%%
+nterest +ncome D$@ C%%
Sec& +>& Lia(ilit08E5$ene A')"tment& +t involves
e4penses, which already e4ist but remain unpaid at the end o! the
accounting period& ;4amples are salaries, wages and other e4penses
already incurred but not yet paid&

Account Title
Account
Code #ebit Credit
#%@
Salaries and =ages-2egular 3ay 0%# #,%%%
.ue to ?!!icers and ;mployees @$0 #,%%%
Sec& +=& A')"tment *or 9e*erre' Item& These are
ad'usting entries trans!erring data previously recorded in an asset account
to an e4pense account, or data previously recorded in a liability account
to a revenue account& +t also re6uires asset8e4pense ad'ustments and
liability8revenue ad'ustments&
Sec& ,?& Aet8E5$ene A')"tment& These pertain to
assets, portion o! which shall be recorded as e4pense o! the agency at the
end o! the accounting period& ;4amples are prepaid e4penses, bad debts
and depreciation&
Account Title
Account
Code #ebit Credit
Original Entr0A
3repaid 2ent #D# #,%%%
*ash-National Treasury, M.S #%$ #,%%%
A')"ting Entr0A
2ent ;4penses 0@# /%%
3repaid 2ent #D# /%%
Sec& ,%& -a' 9e(t& Trade receivables shall be valued at
their !ace amounts minus, whenever appropriate, allowance !or doubt!ul
accounts& 9ad .ebts e4pense and8or any anticipated ad'ustments, which
in the normal course o! events will reduce the amount o! receivables
!rom the debtors to estimated reali5able values, shall be set up at the end
o! the accounting period&
The Allowance !or .oubt!ul Accounts shall be provided in an
amount based on collectibility o! receivable balances and evaluation o!
such !actors as aging o! the accounts, collection e4periences o! the
agency, e4pected loss e4periences and identi!ied doubt!ul accounts&
The determination o! bad debts e4pense shall be derived !rom
computations based on percentages and aging o! accounts receivable as
!ollows(
Age o! Accounts 3ercentage
#%C
# - D% days # N
D# - #0% days $ N
#0#- # year < N
More than # year C N
An ad'usting 'ournal entry to tae up bad debts e4pense is as !ollows(
Account Title
Account
Code #ebit Credit
9ad .ebts /$/ #,%%%
Allowance !or .oubt!ul Accounts <%# #,%%%
Sec& ,+& 9e$reciation *or !ro$ert06 !lant an' E7"i$ment&
The costs o! property, plant and e6uipment are allocated to the periods
bene!ited through the provision o! accumulated depreciation&
.epreciation is the systematic and gradual allocation o! the depreciable
amount o! asset over its use!ul li!e& The depreciable or estimated use!ul
li!e !or di!!erent types o! agency assets are presented as A""endi4 1'
Sec& ,,& Met#o' o* 9e$reciation& .epreciation shall be
computed using the Straight :ine Method& .epreciation shall start on the
second month !rom purchase& A residual value e6uivalent to ten percent
o! the cost shall be set& Annual depreciation is computed as !ollows(
Annual .epreciation O Asset *ost less ;stimated 2esidual8 Salvage 7alue
;stimated )se!ul :i!e
Asset *ost - 3urchase or Ac6uired 7alue o! the Asset
;stimated Salvage 7alue - #%N o! the asset cost
;stimated )se!ul :i!e - ;stimated number o! years the asset shall be
used as determined by the *ommission
on Audit
A sample ad'usting 'ournal entry !or depreciation e4pense is
as !ollows(
Account Title
Account
Code #ebit Credit
.epreciation-?!!ice ;6uipment /$$ #,%%%
Accumulated .epreciation-?!!ice
;6uipment
<$$ #,%%%
Sec& ,.& Cloing @o"rnal Entrie& *losing 'ournal entries are
general 'ournal entries which close out the balances o! all nominal8
#%D
temporary and intermediate accounts at the end o! the accounting period&
The nominal and intermediate accounts that shall be closed at the end o!
the accounting period are as !ollows(
#& 2eversion o! the unused or
unutili5ed Subsidy +ncome !rom National Government at the
end o! the year due to the .9M policy that N*A will only be
valid within the year o! issue e4cept N*A !or accounts
payable, which is valid one month a!ter its issuance& There
is no need to issue an M.S *hec when reverting the
account&
Account Title
Account
Code #ebit Credi
t
Subsidy +ncome !rom National
Government
D%# #%%
*ash-National Treasury, M.S #%$ #%%
$& *lose the balance o! the Subsidy
+ncome !rom National Government account to +ncome and
;4pense Summary account&
Account Title
Account
Code #ebit Credi
t
Subsidy +ncome !rom National
Government
D%# #,%%%
+ncome and ;4pense Summary C<$ #,%%%
<& *lose the balance o! all income
accounts to +ncome and ;4pense Summary account&
Account Title
Account
Code #ebit Credi
t
+ncome !rom Government Services D## C%%
+ncome !rom Government 9usiness
?perations D#$ @%%
+ncome and ;4pense Summary C<$ /%%
#%1
@& *lose the balance o! all e4pense
accounts to +ncome an ;4pense Summary account&
+ncome and ;4pense Summary C<$ 0%%
Salaries and =ages-2egular 3ay 0%# 0%%
C& *lose the balance o! the +ncome and
;4pense Summary Account to the 2etained ?perating
Surplus account&
+ncome and ;4pense Summary C<$ #,#%%
2etained ?perating Surplus C<@ #,#%%
C& *lose the balance o! the 3rior EearIs Ad'ustments account to
2etained ?perating Surplus account
#%& &
3rior EearsI Ad'ustments C<< $%%
2etained ?perating Surplus C<@ $%%
D& *lose the balance o! the 2etained ?perating Surplus to
Government ;6uity account&
2etained ?perating Surplus C<@ #,<%%
Government ;6uity C%# #,<%%
1& *lose 3ublic +n!rastructures or 2e!orestation 3ro'ects
accounts to Government ;6uity account and trans!er the
corresponding amounts to the respective registries&
Government ;6uity C%# #,<%%
3ublic +n!rastructures8
2e!orestation 3ro'ects
$@<8
$@@ #,<%%
#%0
,.&:=&%&%&% !ot4Cloing Trial
-alance& The 3ost-*losing Trial 9alance (A""endi4 2& shall be prepared
a!ter recording the closing 'ournal entries in the General "ournal and
posting to the General :edger& +t contains a listing o! all general ledger
accounts that remain open a!ter the closing process is completed&
#%/
,.&:=&%&%&+ !roce'"re in t#e !re$aration an' S"(miion o*
Trial -alance an' Ot#er Re$ort
Area o!
2esponsibility
Se6&
No& Activity
3reparation o! )nad'usted Trial 9alance
Accounting )nit
9ooeeper # 2ecords ";7s !or the month in the Special
"ournals and General "ournal&
$ 3osts the 'ournal entries !rom the Special
"ournals and General "ournal to the
respective General :edgers&
< 2ecords the source8summari5ing
documents to the respective Subsidiary
:edgers&
Note 1
The summarizing6source documents are the
following:
#e"ort of Chec>s =ssued %#C=&
#e"ort of Collections and 5e"osits
%#C5&
#e"ort of 5isbursements %#5&
Cournal -ntr+ <oucher %C-<&
5isbursement <oucher %5<&
$ther !u""orting 5ocuments %$!5&
@ >oots and e4tracts the balances o! the
General :edgers and Subsidiary :edgers&
C 9ased on the General :edgers, prepares the
)nad'usted Trial 9alance ()T9) to chec
the postings made on the General :edgers
or the e6uality o! debit and credit balances
o! the general ledger accounts& >iles
temporarily&
##%
Area o!
2esponsibility
Se6&
No& Activity
3reparation o! 3re-*losing Trial 9alance
D 3repares ad'usting 'ournal entries thru the
";7 !or unrecorded transactions and !or all
accounts that need to be ad'usted8
corrected& 2ecords the ";7 in the General
"ournal&
Note /
Ad?usting ?ournal entries shall be "re"ared
for the following transactions:
Ad?ustment for Accrued =tems
Ad?ustment for 5eferred =tems
Correction6#eclassification -ntries
)ro3ision for Allowance for 5oubtful
Accounts
)ro3ision for Accumulated 5e"reciation
1 3osts the ad'usting 'ournal entries !rom the
General "ournal to the General :edgers and
Subsidiary :edgers&
0 >oots and e4tracts balances o! the General
:edgers and Subsidiary :edgers&
/ 9ased on the General :edgers, prepares
3re-*losing Trial 9alance in !our copies&
>iles temporarily the 3re-*losing Trial
9alance&
Note 2
1se of a Gor>sheet to facilitate the
"re"aration of the trial balances is
encouraged' The "re"aration of the
Gor>sheet is discussed in !ec' D/'
###
Area o!
2esponsibility
Se6&
No& Activity
Note 9
The "re"aration of the ad?usting ?ournal
entries is at month end or as necessar+'
3reparation o! ?ther 2eports
#% 2econciles the totals o! the Subsidiary
:edgers with the totals o! the General
:edgers accounts& +! unreconciled, checs
the di!!erence and prepares ad'usting8
correcting entries as maybe necessary thru
the ";7&
## +! reconciled, prepares individual
supporting schedules per account based on
the Subsidiary :edgers&
#$ +nitials the supporting schedules and the
3re-*losing Trial 9alance and !orwards the
same to the Gead o! the Accounting )nit
!or review and signature&
Gead o! the
Accounting
)nit
#< 2eviews and signs the H*erti!ied *orrectI
portion o! the 3re-*losing Trial 9alance
and the supporting schedules&
.esignated
Sta!!
#@ Submits the 3re-*losing Trial 9alance to
the ?!!ices concerned& 2ecords submission
in the logboo maintained& >iles *opy @ o!
the 3re-*losing Trial 9alance and *opy @
o! supporting schedules !or preparation o!
!inancial Statements&
##$
Area o!
2esponsibility
Se6&
No& Activity
3reparation o! 3ost-*losing Trial 9alance
at year-end&
9ooeeper #C 3repares closing 'ournal entries thru ";7
and records the same in the General
"ournal&
Note :
The following accounts shall be
closed6re3erted at +ear0end:
1nused !ubsid+ =ncome from National
Ao3ernment%Balance of account Cash0
National Treasur+, M5!&
Nominal6=ntermediate Accounts
=ncome accounts %including
!ubsid+ =ncome from National
Ao3ernment, #$ and $1& to
the =ncome and -4"ense
!ummar+ %=-!& account
-4"ense accounts to =-! account
)rior ,ears8 Ad?ustments
account to #etained $"erating
!ur"lus %#$!& account
Balance of =-! account to #$!
account
#$! account to Ao3ernment
-@uit+ account
&
Note ;
=n addition to the closing ?ournal entries,
the account =nfrastructure )ro?ects6
#eforestation )ro?ects shall be
transferred at +ear0 end to the #egistr+ of
=nfrastructures6#egistr+ of #eforestation
)ro?ects'
##<
Area o!
2esponsibility
Se6&
No& Activity
#D 3osts the 'ournal entries !rom the General
"ournal in the respective General :edgers&
#1 >oots and e4tracts the balances o! the
General :edgers and the Subsidiary
:edgers&
#0 9ased on the General :edgers, prepares
3ost-*losing Trial 9alance in !our copies&
#/ 2econciles the supporting schedules with
3ost-*losing Trial 9alance& +! not
reconciled, prepares the necessary
corrections thru ";7& 2ecords the ";7 in
the General "ournal&
$% +nitials the H*erti!ied *orrect byI portion o!
the 3ost-*losing Trial 9alance and
H3repared byI portion o! supporting
schedules&
$# 3repares transmittal letter and !orwards the
same together with the 3ost-*losing Trial
9alance and supporting schedules to the
Gead o! the Accounting )nit&
Gead o! the
Accounting
)nit
$$ 2eviews and signs H*erti!ied *orrect byI
portion o! the 3ost-*losing Trial 9alance,
supporting schedules and transmittal letter,
and !orwards the same to the Accounting
Sta!! !or distribution&
Accounting Sta!! $< .istributes the 3ost-*losing Trial 9alance
and supporting schedules to the *oncerned
?!!ices& 2ecords in the logboo the
##@
Area o!
2esponsibility
Se6&
No& Activity
submission o! the same&
Note B
Trial Balances and su""orting schedules
shall be distributed as follows:
Co"+ 1 H C$A #esident Auditor
Co"+ / H Accountanc+ $ffice, C$A
Co"+ 2 H 5BM
Co"+ 9 H Accounting 1nit .ile
Note D
The fre@uenc+ of submission of )re0
Closing Trial Balance6)ost0Closing Trial
Balance and other re"orts shall be as
follows:
)re0Closing Trial Balance and
other re"orts H monthl+, within ten
da+s after the end of the month to the
C$A #esident Auditor and 5BM
,ear0end )re0Closing Trial
Balance6 )ost0Closing Trial Balance
and other re"orts H on or before .eb'
19 of the following +ear to the C$A
#esident Auditor, 5BM and C$A,
Accountanc+ $ffice'
Sec& ,:& Generation o* Financial Statement an'
S"$$orting Sc#e'"le& >inancial statements and their supporting
schedules are the products o! the government accounting processes&
These are the principal comprehensive means by which the in!ormation
accumulated and processed in the state accounting system is periodically
communicated to those who use them& The !inancial statements generally
prepared in the National Government are( the 9alance Sheet, Statement
o! +ncome and ;4penses, Statement o! Government ;6uity, and
Statement o! *ash >lows&
##C
,:&:=&%&%&% Re$oni(ilit0 *or
Financial Statement& 2esponsibility !or the !air presentation and
reliability o! !inancial statements rests with the management o! the
reporting agency& This responsibility is discharged by applying generally
accepted state accounting principles that are appropriate to the entityIs
circumstances, by maintaining e!!ective system o! internal control and by
adhering to the chart o! accounts prescribed by the *ommission on
Audit&
To achieve !air presentation and reliable in!ormation o! the
!inancial statements, the !ollowing standards shall be observed&
a& Fairne o*
$reentation& This re!ers to the overall propriety in
disclosing !inancial in!ormation& >ull disclosure in !inancial
aspects re6uires observance o! the !ollowing standards o!
reporting(
All essential !acts relating to the scope and purpose o!
each report and the period involved shall be included and
clearly displayed&
All !inancial data
presented shall be accurate, reliable, and truth!ul& The
re6uirement !or accuracy does not rule out the
inclusion o! reasonable estimates when the maing o!
precise measurements is impracticable, uneconomical,
unnecessary, or conducive to delay& All appropriate
steps shall be taen to avoid bias, unclear !acts, and
presentation o! misleading in!ormation&
>inancial reports shall
be based on o!!icial records maintained under an
ade6uate accounting system that produces in!ormation
ob'ectively and discloses the !inancial aspects o! all
events or transactions taing place& =here !inancial
data or reports based on sources other than the
accounting systems are presented, their basis shall be
clearly e4plained&
##D
The !inancial data
reported shall be derived !rom accounts that are
maintained in all material respects on a consistent
basis !rom period to period; material changes in
accounting policies or methods and their e!!ect shall
be clearly e4plained&
*onsistent and non-
technical terminology shall be used in !inancial reports
to promote clarity and use!ulness&
b& Com$liance& The report
shall be in accordance with prescribed government
re6uirements and international accounting standards o!
reporting&
c& Timeline& All needed
reports shall be produced promptly to be o! ma4imum
use!ulness&
d& Ue*"lne& >inancial
reports shall be care!ully designed to present in!ormation
that is needed and use!ul to reports users&
,:&:=&%&%&+ Statement o* Management
Re$oni(ilit0 *or Financial Statement& The Statement o!
Management 2esponsibility !or >inancial Statements %A""endi4 9& shall
serve as the covering letter in transmitting the agencies !inancial
statements to the *ommission on Audit, .epartment o! 9udget and
Management, other oversight agencies and other parties& +t shows the
agencyIs responsibility !or the preparation and presentation o! the
!inancial statements& The statement shall be signed by the .irector o!
>inance and Management ?!!ice or *omptrollership ?!!ice, or the *hie!
o! ?!!ice who has direct supervision and control over the agencyIs
accounting and !inancial transactions, and the Gead o! Agency or his
authori5ed representative&
##1
,:&:=&%&%&, -alance S#eet& The
9alance Sheet %A""endices : and ;& is a !ormal statement which shows
the !inancial condition o! the agency as o! a certain date& +t includes
in!ormation on the three elements o! !inancial position - assets, liabilities
and government e6uity& +t shall be prepared !rom in!ormation taen
directly !rom the year-end 3ost-*losing Trial 9alance& The 9alance
Sheet shall be supported with the !ollowing schedules8statements(
Schedules o! Accounts 2eceivables (SA2)
(A""endi4 B&
Schedules o! Accounts 3ayables (SA3)
(A""endi4 D&
Schedules o! 3ublic +n!rastructures (S3+)
(A""endi4 E&
?ther schedules as may be re6uired
Although the allotments and obligations o! the agency are not
recorded in the boos o! accounts, the Statement o! Allotments,
?bligations and 9alances (SA?9) %A""endi4 1*& shall be submitted to
the *ommission on Audit by the 9udget ?!!icer8Agency ?!!icer
concerned& This statement shall to be included among the
a!orementioned schedules !or in!ormation o! government o!!icials and
oversight agencies&
,:&:=&%&%&. Statement o* Income an'
E5$ene& The Statement o! +ncome and ;4penses (A""endices 11 I
1/) shows the results o! operation8per!ormance o! the agency at the end
o! a particular period& This statement shall be prepared by the Accounting
)nit !rom in!ormation taen directly !rom the 3re-*losing Trial 9alance&
,:&:=&%&%&: Statement o* Government
E7"it0& The Statement o! Government ;6uity %A""endi4 12& shows the
!inancial transactions, which resulted to the change in Government
;6uity account at the end o! the year&
,:&:=&%&%&; Statement o* Ca# Flo3&
The Statement o! *ash >lows (A""endi4 19) is a statement summari5ing
all the cash activities o! an agency& This includes the operating, investing
and !inancing activities o! the entity and provides in!ormation on the
cash receipts and cash payments during the period& The primary purpose
##0
o! the Statement o! *ash >lows is to give relevant in!ormation on the
agencyIs overall cash position, li6uidity and solvency& )sing the
Statement o! *ash >lows, managers, investors and creditors could easily
assess i! the agency could meet its obligations in operating, investing and
!inancing activities&
,:&:=&%&%&< !re$aration o* t#e
Statement o* Ca# Flo3& To !acilitate the preparation o! the Statement
o! *ash >lows, the use o! a =oring 3aper is encouraged& +t shall show
the increase or decrease in the cash accounts between two periods& The
net increase in cash provided by #) operating $) investing and <)
!inancing activities in addition to the cash balance at the beginning shall
e6ual to the cash balance at the end o! the period&
#) O$erating Activitie& ?perating activities involves the
principal resources producing activities o! the enterprise and
other activities that are not investing or !inancing (S>AS $$)&
Generally, these include the cash e!!ect on transactions that
enter in the +ncome and ;4pense Summary account&
$) Inveting Activitie& +nvesting activities involves the
ac6uisition and disposal o! long-term assets and other
investments not included in cash e6uivalent (S>AS $$)& These
activities include cash transactions covering non-operating
assets, such as the purchase o! property, e6uipment, short and
long-term investments and other non-current assets&

Non-cash investing activities are not included in the
statement o! cash !lows&
<) Financing Activitie& >inancing activities are derived !rom
the e6uity capital and borrowings o! the agency (S>AS $$)&
These include cash transactions involving the government
e6uity and non-operational liabilities&
Non-cash !inancing activities are not included in the
statement o! cash !lows&
##/
The increase or decrease in the cash accounts are analy5ed and
the !ollowing computations are made(
*ash !lows !rom operating activities
*ash +n!lows(
2eceipt o! Notice o! *ash allocation (N*A)
!rom the .9M
2eceipt o! Notice o! Trans!er o! Allocation to
Agency 2?8?) !rom *?
*ash receipts !rom all sources o! revenues
2eceipt o! +nter J agency cash trans!ers (.ue to)
*ash receipts !rom the sale o! goods or rendition
o! services
*ash receipt o! interest income, rental income,
dividend income, etc&
2eceipt o! payment !or li6uidated damages
2eceipt o! re!und o! deposits
2eceipt o! re!unds o! cash advance or e4cess
payments
*ollection o! receivables
*ash receipt o! grants and donations
2eceipt o! cash dividends !rom enterprises (e&g&
3:.T)
*ash ?ut!lows(
3ayments o! accounts payable
*ash purchase o! merchandise !or sale
*ash advances granted !or travel
+nter-agency trans!ers (.ue !rom)
Notice o! Trans!er o! Allocation to Agency
2?8?) issued by the NGA Main ?!!ice to 2?8?)
and8or attached agencies through Government
Servicing 9ans
2eturn o! unused N*A
*ash payment !or operating e4penses
2emittance o! ta4es withheld not covered by
T2A and other deductions (i! any)
#$%
*ash purchase o! supplies and e6uipment
*ash payment o! retirement bene!its
*ash payment o! claims !or damages
*ash payment !or liabilities incurred in
operations
*ash payments !or interest
*ash !lows !rom investing activities(
*ash +n!lows(
3roceeds !rom sale o! maretable stocs and
bonds
*ash proceeds !rom the sale8disposal o!
e6uipment and other property, plant and e6uipment
2edemption o! long-term investments or
repayment by G?**8G>+ o! long-term loans
*ash ?ut!lows(
3urchase o! property, plant and e6uipment
3urchase o! land
+nvestment in stocs8bonds
+nvestment in G?**8G>+
;4posure as other long-term investments
*ash !lows !rom !inancing activities(
*ash +n!lows(
*ash received !rom domestic and !oreign loans
+ssuance o! treasury bills
*ash ?ut!lows(
3ayment o! domestic and !oreign loans
2edemption o! treasury bills outstanding
3ayment o! cash dividend
The net increase in cash provided by operating activities,
investing activities and !inancial activities !or the year, and the
cash balance at the start o! the year, shall e6ual the cash balance
#$#
at the end o! the year& Such amount shall tally with the total cash
account shown in the balance sheet&
Sec& ,;& Note to Financial Statement& Notes to >inancial
Statements (A""endi4 1:& are integral parts o! !inancial statements,
which pertain to additional in!ormation necessary !or !air presentation in
con!ormity with generally accepted accounting principles& These may
e4plain the headings captions or amounts in the statements o! present
in!ormation that cannot be e4pressed in money terms, and description o!
accounting policies&
+n!ormation shall be presented in a way that will !acilitate
understanding and avoid erroneous implications& The headings, captions
and amounts shall be supplemented by enough additional data so that
their meaning would be clear and not overshadowed by so much
in!ormation that important matters are buried in mass trivia&
=here Notes to >inancial Statements appear on a separate page,
indicate the phrase ASee accompanying Notes to >inancial StatementsB
placed at the bottom o! said statements&
Material changes in classi!ication o! accounts shall be indicated
and e4plained as notes to !inancial statements&
The !our types o! disclosure considered necessary are as !ollows(
a& C"tomar0 or ro"tine 'iclo"re& +n!ormation about
measurement bases o! important assets, restrictions on assets
and government e6uity, important long-term commitments
not recogni5ed in the body o! the statements, in!ormation on
terms o! ownerIs e6uity and long-term debt, and certain
other disclosures re6uired by pronouncements o! the
3hilippine +nstitute o! *erti!ied 3ublic Accountants,
Accounting Standards *ouncil, and regulatory bodies that
have 'urisdiction are necessary !or !ull disclosure&
b& 9iclo"re o* c#ange in acco"nting $rinci$le& *hanges
in accounting principles, practices, or the methods o!
applying them, together with the !inancial e!!ect, and the
#$$
'usti!ication !or the change shall be disclosed in the !inancial
statements or a note thereto&
+n particular, it shall include any o! the !ollowing(

Selection !rom e4isting acceptable
alternatives
3rinciples and methods peculiar to the
agency
)nusual application o! generally
accepted accounting principles&
c& 9iclo"re o* "(e7"ent event& .isclosure o! events that
a!!ect the agency directly and that occur between the date o!,
or end o! the period covered by, the !inancial statements and
the date o! completion o! the statements is necessary i!
nowledge o! the events might a!!ect the interpretation o! the
statements, even though the events do not a!!ect the
propriety o! the statements themselves&
d& 9iclo"re o* acco"nting $olicie& .escription o! the
accounting policies adopted by the reporting entity is
re6uired as an integral part o! the !inancial statements& +t is
usually captioned ASummary o! Signi!icant Accounting
3oliciesB, and placed as !irst item in the Notes& +t shall be
limited to description o! the policies and no 6uantitative data
shall be included&
;4amples o! accounting policy disclosures
commonly re6uired(
*onsolidation principles
Accounting !or long-term investments
Adoption o! policy on increasing bene!it
entitlements o! the program members& The
e!!ect o! the increase shall be disclosed&
9asis o! revenue recognition
#$<
+n general, disclosures shall include important
'udgment as to appropriateness o! principles relating to
recognition o! revenues and allocation o! asset costs to
current and !uture periods&
,;&:=&%&%&% Interim Re$ort& +nterim
reports are the !inancial statements re6uired to be prepared at any given
period or at a !inancial reporting period without closing the boos o!
accounts& The !ollowing interim !inancial statements shall be prepared
and submitted 6uarterly with the Notes to >inancial Statements(
a& Statement o! +ncome and ;4penses;
b& 9alance Sheet; and
c& Statement o! *ash >lows&
The interim !inancial statements shall be prepared employing the
same accounting principles used !or annual reports& Ad'usting and
closing 'ournal entries shall be prepared& Gowever, only the ad'usting
'ournal entries are recorded in the boos o! accounts& To !acilitate the
preparation o! the interim !inancial statements, the use o! the worsheet
is recommended&
Sec& ,<& Wor/#eet& A worsheet is a tool !or accumulating
and sorting in!ormation needed !or the preparation o! the !inancial
statements& +t is a columnar sheet used to ad'ust and close account
balances in preparation !or the preparation o! the !inancial statements&
The !ormat o! the worsheet shall be as !ollows(
Agency Name
=orsheet
As o! PPPPPPPPPP, $%PP
Accounts
Unadjusted
Trial
Balance
Adjustments
Adjusted/Pre-
Closing Trial
Balance
Closing
Entries
Statement
of Income
and
Expenses
Post-
Closing
Trial
Balance
Balance
Sheet
Title Code r! Cr! r! Cr! r! Cr! r! Cr! r! Cr! r! Cr! r! Cr!
#$@
a& Account Title and *ode columns show the accounts o! the
General :edger&
b& The )nad'usted Trial 9alance columns re!lect the amount
balances o! the General :edger accounts&
c& Ad'ustments columns show ad'usting 'ournal entries e!!ected
!or the accounts&
d& Ad'usted83re-*losing Trial 9alance columns show the
balances o! all the accounts a!ter ad'ustments are
added8deducted !rom the balances o! accounts in the
unad'usted trial balance&
e& *losing ;ntries debit and credit columns show the amounts
debited and credited to close the nominal accounts&

!& Statement o! +ncome and ;4penses columns show all the
debit and credit amount balances o! the nominal accounts
(subsidies, income and e4penses) and intermediate accounts&
g& 3ost-*losing Trial 9alance columns show the debit and
credit amount balances o! all accounts a!ter posting the
closing entries&
h& 9alance Sheet columns show all the debit and credit amount
balances o! all real accounts in the post-closing trial balance
(assets, liabilities and government e6uity)&
C#a$ter :& Re$oni(ilit0 Acco"nting
Sec& ,>& Re$oni(ilit0 Acco"nting 9e*ine'& 2esponsibility
accounting is a system that relates the !inancial results to a responsibility
center, which provides access to cost and revenue in!ormation under the
supervision o! a manager having a direct responsibility !or its
per!ormance& +t is a system that measures the plans (by budgets) and
actions (by actual results) o! each responsibility center&
#$C
Sec& ,=& Re$oni(ilit0 Center 9e*ine'& +t is a part, segment,
unit or !unction o! a government agency, headed by a manager, who is
accountable !or a speci!ied set o! activities& ;4cept !or some, which
derive most o! their income !rom collection o! ta4es and !ees, national
government agencies are basically cost centers whose primary purpose is
to render service to the public at the lowest possible cost& *ost centers
are established to provide each government agency accessibility to cost
in!ormation and to !acilitate cost monitoring at any given period& =hile
the use o! Subsidiary :edgers is su!!icient to control cost, it re6uires
considerable time to summari5e the cost incurred by agency !or its
di!!erent programs, pro'ects, activities and o!!ices8divisions, hence,
responsibility accounting shall be done only under the computeri5ed
accounting system&
Sec& .?& O()ective o* Re$oni(ilit0 Acco"nting&
2esponsibility accounting aims to( a) ensure that all costs and revenues
are properly charged8credited to the correct responsibility center so that
deviations !rom the budget can be readily attributed to managers
accountable there!ore; b) provide a basis !or maing decisions !or !uture
operations; and c) !acilitate review activities, monitoring the
per!ormance o! each responsibility center and evaluation o! the
e!!ectiveness o! agencyIs operations&
Sec& .%& Conce$t o* Re$oni(ilit0 Acco"nting& The
!ollowing are the concepts o! responsibility accounting(
a& 2esponsibility accounting involves accumulating and
reporting data on revenues and costs on the basis o! the
managerIs action who has authority to mae the day-to-day
decisions about the items;
b& ;valuation o! a managerIs per!ormance is based on the matters
directly under his control;
c& 2esponsibility accounting can be used at every level o!
management in which the !ollowing conditions e4ist(
#$D
#& *ost and
revenues can be directly associated with the speci!ic
level o! management responsibility;
$& *osts and revenues are controllable
at the level o! responsibility with which they are
associated&
<& 9udget data can be developed !or
evaluating the managerIs e!!ectiveness in controlling
the costs and revenues&
d& The reporting o! costs and revenues under responsibility
accounting di!!ers !rom budgeting in two respects(
#& A
distinction is made between controllable and non-
controllable costs&
a) A cost is considered controllable at a given level
o! managerial responsibility i! that manager has
the power to incur it within a given period o!
time& +t !ollows that (#) all costs are controllable
by top management because o! the broad range
o! its activity; ($) !ewer costs are controllable as
one moves down to lower level o! managerial
responsibility because o! the managerIs
decreasing authority&
b) Non-controllable costs are costs incurred
indirectly and allocated to a responsibility level&
$& 3er!ormanc
e reports either emphasi5e or include only items
controllable by individual manager&
e& A responsibility reporting system involves the preparation o! a
report !or each level o! responsibility& 2esponsibility reports
usually compare actual costs with !le4ible budget data& The
#$1
reports show only controllable costs and no distinction is made
between variable and !i4ed costs&
!& ;valuation o! a managerIs per!ormance !or cost centers is
based on his ability to meet budgeted goals !or controllable
costs&
Sec& .+& Re$oni(ilit0 Center Co'e Str"ct"re& ;ach
government agency shall be assigned a responsibility center code& The
coding structure shall be as !ollows(
%%%-%%-%%%-%%%-%%%

;4amples(
E5am$le %
#$0
.epartment8Agency83rovince8*ity
2esponsibility Area (*?82?)
Sub-responsibility Area (.istrict8
.ivision)
Sub-responsibility Area
(?!!ice8)nit83rogram83ro'ect)
Account *ode
%%% -%#- %%% -#$$ - 0<#
E5am$le +
%%% - %D- %$# - @%# - 0<#
Travelling ;4pense - :ocal
Sec& .,& Com$"teriBe' Acco"nting S0tem& Since
responsibility accounting cannot be done under the manual system, the
details o! this shall be discussed on the Manual !or *omputeri5ed
Accounting system to be issued by the *ommission on Audit&
#$/
.epartment o! A9*
?!!ice o! the Secretary
*entral ?!!ice
Travelling ;4pense-:ocal
None
Accounting )nit
.epartment
?!!ice o! the Secretary
2egional ?!!ice +++
?perating )nit +
:ocal 3ro'ect -
*omputeri5ation
C#a$ter ;& Ill"trative Acco"nting Entrie
Sec& ..& Ill"trative Acco"nting Entrie in Reg"lar
Agenc0 1RA2 -oo/&
a' +llustrative Accounting ;ntries !or Typical
Transactions o! *entral82egional ?!!ices and ?perating
)nits (*?82?8?)) receiving Notice o! *ash Allocation
(N*A) !rom the .epartment o! 9udget and Management
(.9M)'
*entral82egional ?!!ices and ?perating )nits receiving
N*A directly !rom the .9M shall be guided by the
illustrative accounting entries shown in Anne4 A&
b' +llustrative Accounting ;ntries !or .ecentrali5ed
Agencies
2egional ?!!ices and ?perating )nits receiving N*A
directly !rom the .9M and !unding checs !rom *?82?
shall be guided by the illustrative accounting entries shown
in Anne4 B'
Sec& .:& Ill"trative Acco"nting Entrie in National
Government 1NG2 -oo/&
National Government Agencies whose income8collections are
re6uired to be recorded in the NG 9oos and remitted to the National
Treasury through Authori5ed Government .epository 9ans shall !ollow
the illustrative accounting entries shown in Anne4 C&
#<%

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MANUAL ON THE

NEW GOVERNMENT ACCOUNTING SYSTEM

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