GOVERNMENT ACCOUNTING
CHAPTER 2  Revolving Funds
(UNIFIED ACCOUNT CODE STRUCTURE)
- is a government-wide harmonized budgetary,
treasury and accounting code classification framework
jointly developed by the Department of Budget and
Management (DBM), the Commission on Audit (COA),
the Department of Finance (DOF) and the Bureau of the
Treasury (BTr) to facilitate reporting of all financial
transactions of agencies including revenue reporting.
-its key purpose is to enable the timely and
accurate reporting of actual revenue collections and
expenditures against budgeted programmed revenues
and expenditures.
Key Elements:
 Funding Source Code (8 digits)
 Fund Cluster (2)
01- Regular Agency Fund
02- Foreign Assisted Projects Fund
03- Special Accounts- locally funded/ Domestic
Grant Fund
04- Special Accounts- foreign assisted/ Foreign
Grant Fund
05- Internally Generated Fund
06- Business Related Fund
07- Trust Receipts
 Financing Sources (1)
1- General Funds- are funds available for any
purpose that Congress may choose to apply, and is
composed of all receipts or revenues that do not
otherwise accrue to other funds.
2- Off-budgetary Funds- refer to receipts for
expenditure items that are not part of the National
Expenditure Program, and which are authorized for
depositing in government financial institutions.
These are categorized into:
 Retained Income/Receipts, and
3- Custodial Funds- refer to receipts or cash
received by any government agency, whether from
a private source or another government agency, to
fulfill a specific purpose. Custodial receipts include
receipts collected as an agent for another entity.
 Authorization Code (2)
01- New General Appropriations- are annual
authorizations for incurring obligations during a
specified budget year, as listed in the General
Appropriations Act (GAA). The GAA is the
legislative authorization that identifies new
appropriations for the implementation of
programs, projects and activities of all
departments, bureaus and offices of government
for a given year.
02- Continuing Appropriations- are authorizations
to support obligations for a specified purpose or
project, even when these obligations are incurred
beyond the budget year. Because MOOE and CO
appropriations in the GAA are valid for two years,
unobligated and unreleased appropriations for
these budget items are valid until the end of their
second year and are classified as Continuing
Appropriations.
03- Supplemental Appropriations- are additional
appropriations enacted by Congress to augment
original appropriations that have proven
insufficient for their intended purpose because of
economic, political or social conditions.
Supplemental Appropriations must also be
supported by a certification of availability of funds
by the BTr.
04- Automatic Appropriations- are authorizations
made annually or for some other period prescribed
by law, by virtue of standing legislation, which do
not require periodic action by the Congress. These
are automatically and annually included in the
National Expenditure Program of the National
Government. Examples:
1. Retirement and Life Insurance Premiums
2. Pension under R.A. No. 2087, as amended
by P.D. No. 1625 and R.A. No. 5059
 GOVERNMENT ACCOUNTING
3. Domestic Grant Proceeds
4. Customs duties and taxes, including tax
expenditures.
05- Unprogrammed Funds- are standby
appropriations for priority programs or projects of
the government. The utilization of Unprogrammed
Funds may be approved if any of the following
conditions are met:
 Revenue collections for the year exceed
targets
 New revenues not included in the original
revenue targets are successfully
generated, or
 Foreign loan proceeds are generated for
newly approved projects covered by
perfected loan agreements.
06-Retained Income/Funds- are collections that are
authorized by law to be used directly by agencies
for their operation or specific purposes. These
include but are not limited to receipts from:
 State Universities and Colleges (SUCS) - tuition
and matriculation fees and other internally
generated receipts
 Department of Health (DOH) - hospital
income.
07- Revolving Funds- are receipts derived from
business-type activities of departments/agencies
as authorized by law, and which are deposited in
an authorized government depository bank. These
funds shall be self-liquidating. All obligations and
expenditures incurred because of these
business-type activities shall be charged against
the Revolving Fund.
08- Trust Receipts- are receipts that are officially in
the possession of government agencies or a public
officer as trustee, agent, or administrator, or which
have been received for the fulfillment of a
particular obligation.
These receipts may be classified as:
 Inter-Agency Transferred Funds (IATF), which
are receipts or fund transfers from any
government-agency or Government Owned
and/or Controlled Corporations (GOCC) to
another agency, and which are deposited in
the National Treasury to facilitate project
implementation;
 Receipts deposited with the National
Treasury other than IATF, which are receipts
from other sources—including private persons
or foreign institutions—which are deposited
with the National Treasury, pursuant to E.O.
No. 338, for the fulfillment of some
obligations; and,
 Receipts deposited with Authorized
Government Depository Bank (AGDB), which
are receipts from other sources that should be
deposited in the AGDB for the fulfillment of
some obligations.
 Fund Category Code (3)
101-150: Specific Budgets of National
Government Agencies- refers to the budgets
appropriated for a specific department or
agency of the National Government.
151-250: GoP Counterpart Funds and
Loans/Grants from Development Partners or
the Multilateral/Bilateral Assistance- fund
category code for counterpart funds, loan
proceeds and grant proceeds. The
authorization code—which precedes the fund
category code—will vary depending on
whether funds were loans or grants, as
well as if they were unprogrammed or
included in the regular budget. Appropriated
loan proceeds will use authorization code 01,
grant proceeds will use authorization
code 04 and unprogrammed loan
proceeds will use authorization code 05.
251-275:Allocation to Local Government Units
(ALGU)- refers to the share of Local
Government Units (LGUs) from the revenue
collections of the National Government. The
total ALGU is based on a sharing scheme
computed for each LGU, as provided for under
the Local Government Code and other special
laws.
 GOVERNMENT ACCOUNTING
276-300:Budgetary Support to Government
Corporations (BSGC)- refers to either subsidies
for operations or projects, equity
contributions, and net lending and/or
advances to Government-Owned or
Controlled Corporations (GOCC) for loan
repayments.
301-320: Financial Assistance to Metropolitan
Manila Development Authority- refers to
national government subsidy in the form of
regular appropriations as provided in the GAA
which shall only be used to augment any
deficiency in the consolidated funds of the
MMDA to cover valid and authorized
expenditures.
321-400: Special Account in the General Fund
(SAGF)- is a fund where proceeds from specific
revenue measures and grants earmarked by
law for priority projects are recorded. These
sources are automatically appropriated.
 Location Codes (9 digits)
401-420: Special Purpose Funds (SPF)- are
lump-sum funds included in the GAA which
are not within the approved appropriations of
Departments/Agencies/Lower Level Operating
Units, and which are available for allocation to
any Department/Agency/Lower Level
Operating Unit or Local Government Unit for a
specific purpose, as may be duly approved in
accordance with special provisions on the use
of these funds.
421-440: Unprogrammed Funds
441-500: Retained Income/Funds
501-600: Revolving Funds
601-610: Trust Funds
611-999: Others (Specify)
 Organization Code (12 digits)
 Department (2) - the primary subdivision of
the Executive Branch responsible for the
overall management of a sector or a
permanent national concern with nationwide
or international impact. A department is
headed by a Secretary or an official with an
equivalent position level.
 Agency (3) – refers to any of the various units
of the government, including an office,
instrumentality or Government-Owned and/or
Controlled Corporation (GOCC) that may not
approximate the size of a Department, but
which nevertheless performs tasks that are
equally important and whose area of concern
is nationwide in scope (e.g., Other Executive
Offices [OEOs]).
 Operating Units (2) – organizational entities
charged with carrying out specific substantive
functions or with directly implementing
programs/ projects of a department or agency,
such as line bureaus and field units.
 Lower Level Operating Unit (5) - assigned
codes for the individual operating units
without reference to the Region Code.
 Region (2)- a sub-national administrative unit
composed of several provinces having more or
less homogenous characteristics, such as
ethnic origin of inhabitants, dialect spoken,
agricultural produce, etc.
 Region Code. This is a two-digit code that
identifies a specific region. It ranges from
01 to 99.
 Province (2) - a political corporate unit of
government which consists of a cluster of
municipalities, or municipalities and
component cities. A province serves as a
dynamic mechanism for developmental
processes and effective governance of local
government units within its territorial
jurisdiction.
 Province Code. This is a two-digit code
that identifies the province. It ranges
from 01 to 99,
generally defining the relative alphabetic
sequence of all provinces in the country,
except those created after 1977, which
 GOVERNMENT ACCOUNTING
were added to the list following the
updating procedures.
 City (2) - a political corporate unit of
government which consists of a more
urbanized and developed group of barangays.
It serves primarily as a general-purpose
government for the coordination and delivery
of basic, regular and direct services and
effective governance of the inhabitants within
its territorial jurisdiction.
Municipality - a political corporate unit of
government which consists of a group of
barangays. It serves primarily as a
general-purpose government for the
coordination and delivery of basic, regular and
direct services and effective governance of the
inhabitants within its territorial jurisdiction.
 Municipality Code. This is a two-digit
code that generally used to identify the
municipalities, cities or municipal districts
in a particular province, and is dependent
upon the Province Code to fully establish
the identity of municipality. It ranges
from 01 to 99.
 Barangay (3) - the basic political unit of
government. It serves as the primary planning
and implementing unit of government policies,
plans, programs, projects and activities in the
community, and also as a forum where the
collective views of its constituents may be
expressed, crystallized and considered, and
where disputes may be amicably settled.
 Barangay Code. This is a three-digit code
which generally defines the relative
alphabetical
sequence of the barangays within the
municipality. The code ranges from 001
to 999.
Barangay Code 010 means it is the 10th
barangay in alphabetical sequence within
that municipality. The Barangay Code is
dependent upon the Municipality
Identifier to fully
establish the identity of a given barangay.
*Municipality Identifier- 4 digit no.
that defines the identity of the
municipality.
 Major Final Output (MFO)/Program, Activity and
Projects (PAP) Code (15 digits)
 Sector Values (3) /Horizontal Outcomes (2) -
are specific programs implemented with the
aim of achieving common policy objectives
among government agencies.
 Program/ Project/ Purpose (1)- Program- is an
integrated group of activities that contributes
to an agency or department’s continuing
objective. Examples include General
Administration and Support, Support to
Operations, and Operations.
 Major Final Output/ Project Category Codes
(2) - MFO- defined as a good or service that a
department or agency is mandated to deliver
to external clients through the
implementation of programs, activities and
projects. -Projects- are special department/
agency undertakings carried out within a
definite timeframe, and which are designed to
produce a pre-determined measure of goods
or services (MFOs). A project is considered an
investment toward expanding the capacity of
a department/agency to deliver MFOs.
 Activity- is defined as a work process that
contributes to the fulfillment of a program or
project. Each activity shall be attributed to
only one MFO. Activities are to be assigned to
General Administration and Support, or
Support to Operations if they benefit internal
clients. On the other hand, an activity that
benefits external clients shall be attributed to
an MFO.
 Activity Level 1 (2)
 Activity Level 2 (5)
 Object Codes (10 digits)
 GOVERNMENT ACCOUNTING
-provides information on the object code
classification for assets, liabilities, equity, income
and expense accounts.
 COA Revised Chart of Accounts (8)
 Sub-Object (2)
*The basis for coding the object classification in
the COA Revised Chart of Accounts is accrual
accounting.
Assets (1)- economic resources of an agency.
Liabilities (2)- economic obligation of an agency.
Equity (3)- residual interest of the government in
an agency.
Income (4)- gross inflow of economic benefits or
service potential during the reporting period.
Expenses (5)- decrease in economic benefits or
service potential during the reporting period.
CHAPTER 3
(THE REVISED CHART OF ACCOUNTS)
Based on:
 COA Circular no. 2013-002: prescribing the
adoption of the Revised Chart of Accounts for
NGAs.
 The account code structure consists of 8
mandatory digits.
 COA Resolution no. 2014-003: prescribing the
adoption of the PPSAS.
 COA Circular no. 2014-003: providing the
implementting rules and guidelines on the
conversion from the Philippine Government Chart
of Accounts under the New Government
Accounting System.
 COA-DBM-BOF Joint Circular no. 2013-1:
prescribing the UACS.
 COA-DBM-DOF Joint Circular no. 2014-1: providing
the enhancement of UACS.
8 digits:
 Account Group (1) - represents the account
classifications as to ALEIE.
 Major Account Group (2) - represents classification
within the account group (eg. Cash and cash
equivalents, receivables, payables, etc.)
 Sub-Major Account Group (2) - represents
classifications within the major account. (eg. Cash
in bank-foreign currency, etc.)
 General Ledger Account (2) - represents the
accounts to be presented in the detailed FS. (eg.
Cash collecting officer, petty cash, etc.)
 General Ledger Contra-Accounts (1) - eg.
Allowance for impairment, accumulated
depreciation, etc.
 GOVERNMENT ACCOUNTING
CHAPTER 4
(ACCOUNTING FOR BUDGETARY ACCOUNTS)
Article VI of the 1987 Constitution Section 29 (1). “No
money shall be paid out of the Treasury except in
pursuance of an appropriation by law.”
General Appropriations Act (GAA)- contains the legal
authorization to use public money for various programs,
activities, and projects of the national government.
PH Government Accounting System:
General Accounting Plan (GAP) - shows the overall
accounting system of a government agency/unit.
 Budgetary Accounts System
 Receipt/Income and Deposit System
 Disbursement System
 Financial Reporting System
The National Budget
 - plan for financing the government activities
for a fiscal year prepared and submitted by responsible
executive to a representative body whose approval and
authorization are necessary before the plan can be
executed.
 definite proposal or estimate or statement of
receipts and expenditures that may be approved or
rejected.
 the financial blue print of a country’s
development plan.
Balanced Budget
-The budget where the proposed expenditures are
equal or less than the estimated revenues.
Performance-Informed Budgeting (PIB)
 Budgeting approach that uses performance
information to assist in deciding where the funds
will go. Performance information typically includes:
 The purpose for the funds required.
 The outputs that would be produced or the
services that would be rendered.
 The outcomes that would be achieved by the
outputs and services.
 The cost of the programs and activities
proposed to achieve the objectives.
 Simplified budgeting approach that focuses more
on outputs and outcomes and places less emphasis
on the inputs.
 Required government agencies to strengthen the
link between planning and budgeting and to
simplify the presentation of the budget.
 PIB is an integral process whereby agency
performance information and their corresponding
indicators under their Organizational Performance
Indicator Framework (OPIF) is presented
hand-in-hand with the agency budget to ensure
that the outcomes an agency is committing to
deliver in exchange for its budget are clear to the
public and the legislators.
 GOVERNMENT ACCOUNTING
Kinds of Budget: 1. Budget Preparation- estimation of government
revenues, the determination of budgetary priorities and
activities within the constraints imposed by available
revenues and by borrowing limits, and the translation
of approved priorities and activities into expenditure
levels.

 Determination of the overall economic targets,

expenditure levels, revenue projection and the
financing plan by the Development Budget
Coordinating Committee (DBCC). The DBCC is an
inter-agency body composed of the DBM Secretary
as Chairman and the Bangko Sentral Governor, the
Secretary of the Department of Finance, the
Director General of the National Economic and
Development Authority and a representative of the
Office of the President as members.

 Issuance by the DBM of the Budget Call (issued in

December) which defines the budget framework;
sets economic and fiscal targets; prescribe the
priority thrusts and budget levels; and spells out
the guidelines and procedures, technical
instructions and the timetable for budget
preparation;

 Preparation by various government agencies of

their detailed budget estimates ranking programs,
projects and activities using the capital budgeting
approach and submission of the same to DBM;

 Conduct a budget hearings were agencies are

called to justify their proposed budgets before
DBM technical panels;

 Submission of the proposed expenditure program

of department/agencies/special for confirmation
by department/agency heads.

 Presentation of the proposed budget levels of

department/agencies/special purpose funds to the
DBCC for approval.

 Review and approval of the proposed budget by

the President and the Cabinet;

 Submission by the President of proposed budget to

Congress. (President’s Budget)

The Budget Cycle:  President’s Budget Message (PBM)

 GOVERNMENT ACCOUNTING
 Budget of Expenditures and Sources of
Financing (BESF)
 National Expenditure Program (NEP)
 Details of Selected Programs and Projects
 Staffing Summary
2. Budget Legislation- starts upon the receipt of the
President’s Budget (must be submitted a day after the
State of the Nation Address) by the House Speaker and
ends with the President’s enactment of the General
Appropriation Act.
 The President submits his/her proposed annual
budget in the form of Budget of Expenditure and
Sources of Financing (BESF) supported by details of
proposed expenditures in the form of a National
Expenditure Program (NEP) and the President's
Budget Message which summarizes the budget
policy thrusts and priorities for the year.
 The proposed budget goes first to the House of
Representatives, which assigns the task of initial
budget review to its Appropriation Committee.
 The Appropriation Committee together with the
other House Sub-Committee conduct hearings on
the budgets of departments/agencies and
scrutinize their respective programs/projects.
Consequently, the amended budget proposal is
presented to the House body as the General
Appropriations Bill (GAB).
 While budget hearings are on-going in the House
of Representatives, for expediency, the Senate
Finance Committee, through its different
subcommittees also starts to conduct its own
review and scrutiny of the proposed budget and
proposes amendments to the House Budget Bill to
the Senate body for approval. The Committee
submits its proposed amendment to the GAB to
plenary only after it has been formally transmitted
by the House of the Representatives.
 To thresh out differences and arrive at a common
version of the General Appropriations Bill, the
House and the Senate creates a Bicameral
Conference Committee that finalizes the General
Appropriations Bill.
 The Bicam version is then submitted to both
Houses, which will then vote to ratify the final GAB
for submission to the President. Once submitted to
the President, the GAB is considered enrolled.
 Budget legislation ends when the President signs
the GAA into law. Prior to this, the President may
veto or set conditions for implementation of
certain items in the GAA, which are then specified
in the President’s Veto Message. Unlike other
legislation, the President may effect a “line item
veto” of specific provisions of the GAB.
If in case Congress fails to pass the GAB on
time, the President may re-enact the previous
year’s GAA until such time that the fresh Budget is
passed.
 The General Appropriations Act (GAA) is the
legislative authorization that contains the new
appropriations in terms of specific amounts
for salaries, wages and other personnel
benefits; maintenance and other operating
expenses; and capital outlays authorized to be
spent for the implementation of various
programs/projects and activities of all
departments, bureaus and offices of the
government for a given year.
3. Budget Execution and Operation- serves as a
medium through which plans for operation can be
implemented using available resources and funds.
 Early Procurement Activities - Agencies are
required to prepare their Annual Procurement
Plans and other bid documents before the new
fiscal year starts. Moreover, the government
adopted a policy of allowing agencies—such as the
DPWH and others which implement infrastructure
projects—to bid their projects before the GAA is
enacted. Early bidding allows agencies to award
their approved projects as soon as the new GAA
takes effect.
 Budget Program- Agencies submit Budget
Execution Documents (BEDs) to outline their
financial plans and performance targets for the
year. The DBM consolidates these plans into the
budget program, which breaks down the allotment
and cash releases for each month of the year.
 GOVERNMENT ACCOUNTING
 Allotment Release- The DBM issues allotments to open format. In addition, the government also
agencies to authorize the latter to incur obligations. publishes the People’s Budget along with other
With the GAA-as-Release Document, the enacted technical documents and reports.
Budget itself serves as the allotment release for all
 Monitoring and Evaluation- Agencies must set-up
budget items except those contained in a negative
and implement monitoring and evaluation
list that are issued the Special Allotment Release
mechanisms to ascertain the effectiveness of the
Orders (SAROs) after agencies comply with the
programs and projects on which they spend.
documentary requirements.
Agencies must have internal control mechanisms
 Obligation - Agencies incur liabilities that the to ensure that public funds are spent and
national government will pay for, as they accounted for properly.
implement programs, activities, and projects.
 Agencies’ Accountability Reports- Agencies submit
Agencies incur obligations when they hire new
Financial Accountability Reports on a monthly or
staff or enter into a contract with suppliers of
quarterly basis, as required by the DBM and the
goods and services that are subject to a
COA. These reports are submitted online through
transparent and competitive procurement process.
the Unified Reporting System.
 Cash Allocation- The DBM issues disbursement
 Performance Review- The DBM reviews the
authorities, such as the Notice of Cash Allocation
financial and physical performance of agencies
(NCA), to authorize an agency to pay the
against their targets.
obligations it incurs. To ease budget execution, the
DBM issues comprehensive NCAs to cover the cash  In -Year Reports- The DoF and the DBM regularly
requirements of agencies for the first semester. publish snapshots of the government’s fiscal
performance, revenue collections, debt, and
 Disbursement- Monies are paid out from the
expenditures.
Treasury to settle obligations that government
incurred for the delivery of services to citizens. To  DBCC Mid-Year Report- The DBCC publishes a
ease the payments process, the DBM introduced comprehensive report on macroeconomic
checkless and cashless disbursement schemes. developments, the fiscal situation of the national
government, and the performance of key programs
4. Budget Accountability- the DBM monitors the
and projects. The Mid-Year Report also discusses
efficiency of fund utilization, assesses agency
any adjustments that the DBCC makes to the
performance and provides a vital basis for reforms and
government’s economic projections and fiscal
new policies.
targets for the rest of the year
 Performance Targets- Budget accountability starts
 DBCC Year-End Report- The DBCC publishes
with the setting of targets that agencies are to be
another comprehensive report covering the full
held accountable for. With the
year. Compared to the Mid-Year Report, the
Performance-Informed Budget, the GAA now
Year-End Report provides more discussions and
contains the targeted outcomes, outputs and
details about actual revenue and expenditure
performance indicators of each agency. These
outturns against program, and the financial and
targets are also reflected in agencies’ BEDs (see
physical performance of priority programs.
“Budget Program” under Budget Execution), which
effectively serve as the agencies’ plans for the year  Audit- The COA reviews the accounts of each
agency to ascertain if public funds are used
 Citizen Engagement- To empower citizens during
properly, according to the law and standards, and
Budget Accountability, the government ensures
with value-for-money. The COA produces audit
transparency-agencies disclose their budgets,
reports for each agency; a whole-of-government
reports, and other relevant information through
Annual Financial Report; as well as Special Audit
the Transparency Seal; and make available data in
Reports. The DBM uses COA’s Audit Reports in
 GOVERNMENT ACCOUNTING
confirming agency performance, determining
budgetary levels for agencies, and addressing
issues in fund usage.
Budgetary Account System
Allotment Release Program (ARP)- shall serve as the
ceiling for the aggregate allotment releases during the
year from all sources.
Composed of the following:
 Obligations incurred,
 Obligations authorized as overdraft,
 Special Allotment Release Order (SAROs) issued
from the beginning of the fiscal year to the
effectivity date of the current GAA,
 Releases from the unprogrammed fund (UF).
Budgetary Accounts
 Appropriation – an authorization made by law or
other legislative enactment, directing payment of
goods and services out of government funds under
specific purposes.
 Allotment- An Authorization issued by the DBM to
the government agencies, which allow them to
incur obligations, for specified amounts, within the
legislative appropriation.
 Obligation- a commitment by government agency
arising from an act of duly authorized official which
binds the government to the immediate or
eventual payment of sum of money.
Fund Release Documents
1. Obligational Authority or Allotment
 General Appropriation Act Release Document
(GAARD)- serves as the obligational authority for
the comprehensive release of budgetary items
appropriated in GAA, categorized as For
Comprehensive Release (FCR).
 Special Allotment Release Order (SARO)- covers
budgetary items under For Later Release (FLR)
(negative list) in the entity submitted Budget
Execution Documents (BEDs), subject to
compliance of required documents/clearances.
Releases of allotments for Special Purpose Funds
(SPFs), like Calamity Fund, are also covered by
SARO.
 General Allotment Release Order (GARO)- is a
comprehensive authority issued to all national
government agencies, in general, to incur
obligations not exceeding an authorized amount
during a specified period for the purpose indicated
therein. It covers automatically appropriated
expenditures common to most, if not all, agencies
without need of special clearance or approval from
competent authority, i.e. Retirement and Life
Insurance Premium.
2. Disbursement Authority
 Notice of Cash Allocation (NCA) – authority issued
by the DBM to central, regional and provincial
offices and operating units to cover the cash
requirements of the agencies;
 Non-Cash Availment Authority (NCAA) – authority
issued by the DBM to agencies to cover the
liquidation of their actual obligations incurred
against available allotments for availment of
proceeds from loans/grants through supplier’s
credit/constructive cash;
 Cash Disbursement Ceiling (CDC) – authority
issued by DBM to the Department of Foreign
Affairs (DFA) and Department of Labor and
Employment (DOLE) to utilize their income
collected/retained by their Foreign Service Posts
(FSPs) to cover their operating requirements, but
not to exceed the released allotment to the said
post; and
 Notice of Transfer of Allocation – authority issued
by the Central Office to its regional and operating
units to cover the latter’s cash requirements.
Reporting Requirements:
1. Budget Execution Documents (BEDs)
 Reflected the plans, targets and schedules that will
guide agencies in the early implementation of
priority programs and projects.
 Must be submitted to the DBM every November 30,
before financial year. If there are any
 GOVERNMENT ACCOUNTING
adjustments, revision shall be submitted on or
before January 7 of the financial year.
 BED No. 1: Financial Plan
 Includes the comparative obligation level for
the budget year (2019) broken down by
quarter, versus current year (2018) actual
obligations as of September 30 and the
emerging level obligations for the remaining
quarter.
 BED No. 2: Physical Plan
 Consists the performance indicators and
targets of department/ agency such as:
 For Operations, the performance
indicators by MFOs.
 For Major Programs and Projects
committed to the President and closely
monitored by Presidential Staff.
 For other projects, consider those
milestones indicated in approved
project profile.
 Physical Plan must be same with those
appearing in the Financial Plan.
 BED No. 3: Monthly Disbursement Program (MDP)
 Used by the DBM as basis for determining the
monthly level of disbursement authorities to
be used by national government agencies.
 Reflects the total cash and non-cash program
for the budget year, by fund category, by
allotment class and by type of disbursement
authority, such as:
 NCA for cash requirements of the
national government.
 CDC for authorized disbursements
charged against income collected and
retained by the Foreign Service Post of
FDA and DOLE.
 NCAA for the cost of goods and services
paid directly by lending institutions to
creditors of the NGAs/GOCCs.
 Tax Remittance Advice (TRA) for the
remittance of tax withheld computed and
estimated: PS (8%), MOOE and CO (5%).
 Other tax expenditures such as: Custom
Duties and Taxes, BTr Documentary
Stamps.
 BED No. 4: Annual Procurement Plan for
Common-Use Supplies and Equipment
 Shall reflect the monthly quantity and cash
requirements by items categorized:
 Available at Procurement Service Stores
 Other items not available at Procurement
Service but regularly purchased from
other sources.
 Submitted through e-mail to DBM-PS and
Philippine Government Electronic
Procurement System (PhilGEPS).
2. Budget and Financial Accountability Reports (BFARs)
 Use to monitor and/or evaluate agency
performance versus plans and target which shall
serve as a basis for sound policy decisions.
 BAR No. 1: Quarterly Report of Operation (QRPO)
 Reflects the department’s/ agency’s actual
physical accomplishments as of given quarter
in terms of performance measures indicated
in BED No. 2 (Physical Plan.)
 Submitted to DBM and COA within 30 days
after the end of each quarter.
 FAR No. 1: Statement of Appropriations,
Allotments, Obligations, Disbursements and
Balances (SAAODB)
 Shall reflect the authorized appropriations and
adjustments, total allotments received
including transfers/adjustments, total
obligations, total disbursements and balances
of unreleased appropriations, unobligated
allotments, and unpaid obligations of
department/office/agency by fund cluster and
by allotment class. Presented by the following:
 Fund Authorization
 GOVERNMENT ACCOUNTING
 Major Final Output
 Program/Activity/Project
 Major Programs/Project
 Submitted to DBM and COA within 30
days after the end of each quarter.
 FAR No. 1-A: Summary of Appropriations,
Allotments, Disbursements and Balances by
Object of Expenditures (SAADBOE)
 Reflect the summary of appropriations,
allotments, obligations, disbursements and
balances detailed by object of expenditures
consistent with RCA.
 Prepared by Fund Cluster
 Submitted to COA and DBM within 30 days
after the end of each quarter.
 FAR No. 1-B: List of Allotments and
Sub-Allotments (LASA)
 Reflects the allotments released by DBM and
the sub-allotments issued by Central
Office/Regional Office, and their
corresponding numbers, date of issuances,
and amounts by allotment class and by Fund
Cluster.
 Total allotments per this report should be
equal to the total allotments appearing in the
FAR No. 1 (SAAODB)
 Submitted to COA and DBM within 30 days
after the end of each quarter.
 FAR NO. 2: Statement of Approved Budget,
Utilizations, Disbursements and Balances
(SABUDB) (For Off-Budget Fund)
 Shall reflect the approved budget, utilizations,
disbursements, and balances of the agency
authorized by law to use their income. ( ex.
SUC)
 Submitted to COA and DBM within 30 days
after the end of each quarter.
 FAR No.2-A: Summary of Approved Budget,
Utilizations, Disbursements and Balances by
Object of Expenditures (SABUDBOE)
(for Off-Budget Fund)
 Reflects the details of the approved budget,
utilizations, disbursements and balances of
the agency authorized by law to used their
income presented by object of expenditures
consistent with RCA.
 Submitted to COA and DBM within 30 days
after the end of each quarter.
 FAR No. 3: Aging of Due and Demandable
Obligations (ADDO)
 Reflect the balances of unpaid obligations as
indicated in the Obligation Request and the
aging of due and demandable obligations as of
year end.
 Submitted to COA and DBM on or before the
30th day of the month following end of the
year.
 FAR No. 4: Month Report of Disbursements (MRD)
 Reflect the total disbursements made by
department, office or agency and operating
unit by Fund Cluster through disbursement
authorities.
 Track the actual disbursement of the
department/agencies against their
Disbursement Program, and the reason for
over or under spending shall be indicated.
 Submitted to DBM and COA on or before the
30th day of the following month covered by
the report.
 FAR No. 5: Quarterly Report of Revenue and
Other Receipts (QRROR)
 Reflects the report of actual revenue and
other receipts of the agency/operating units
for the current year presented by quarter and
by specific sources consistent with RCA.
 Shall be submitted to COA and DBM within 30
days after the end of each quarter.
Consolidation of Quarterly Reports
 GOVERNMENT ACCOUNTING
 Central Office- Prepare an overall consolidated  (Remittance to BIR) Dr. Due to BIR ; Cr. Subsidy
reports of the department/agency and submit the from National Government.
report to the Central Office of DBM and COA
Agency Performance Review
within 30 days after the end of each quarter
 The DBM shall conduct a quarterly evaluation by
 Regional Office- Consolidate report covering the
comparing agency plans and targets per BEDs to
report of the region and its lower operating units,
the actual accomplishments reflected on the
submit the same to the Central Office within 10
BFARs.
days after the end of each quarter.
 This is to ensure that programs and projects
 Lower Operating Unit- Furnish the Regional and
reflected in the financial and physical plan will be
Agency Central Office copies of their reports within
accomplished.
5 days at the end of each quarter.

 Non-submission of the said reports will result

to the automatic suspension of the salary payments to the
concerned Budget Officer/Chief Accountant or their
authorized representatives.

 Three consecutive violations during the year

without justifiable cause shall be a ground for administrative
disciplinary action, subject to pertinent civil service rules and
regulations.

Validity of Appropriation

 Personnel Service – until the end of the current

year.

 MOOE and CO – until the end of the following

year.

 Continuing Appropriation of the previous year

(MOOE & CO) – until the end of the current year.

 Supplemental Budget for MOOE and CO

appropriation – until the end of the current year.

 Automatic Appropriations for PS,MOOE and CO –

until the end of the current year.

Tax Remittance Advice (TRA) System

 The NCA released to the government agency is

reduced by the amount of the estimated taxes
expected to be remitted by the agency.
(NCA net of TRA)

 PS = 8%

 MOOE & CO = 5%

 (Receipt of NCA) Dr. Cash-MDS, Regular ; Cr.

Subsidy from National Government.