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OPERATING PROCEDURES

IN THE
MANAGEMENT OF BARANGAY FUNDS AND PROPERTY

Volume I

Introduction

Objectives of the Manual.

1. To provide uniform guidelines in the administration and recording of barangay


funds and property; and
2. To prescribe barangay financial reports to be submitted to the City/Municipal
Accountant.

Legal Basis. Article 1X-D, Section 2 par. (2) of the 1987 Constitution of the Republic
of the Philippines provides:

“The Commission on Audit shall have the exclusive authority xxx to


promulgate accounting and auditing rules and regulations xxx.”

Coverage. This Manual presents:

1. The general and basic policies in monitoring barangay funds and property; and
2. The detailed narrative operating procedures and the corresponding procedural
flow charts for the following major financial transactions:

a. Receipts and Deposits


b. Appropriations and Commitments
c. Disbursements
d. Inventory, Property, Plant and Equipment (PPE), Public Infrastructures (PI)
and Reforestation Projects (RP)

The different forms prescribed are provided with instructions and presented as
appendices in this Manual. For a comprehensive understanding of the operations of
barangays in managing their funds and property, this Manual should be read side by side
with the other two volumes on recording and reporting procedures.

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Receipts and Deposits

Policies and Procedures. The basic policies for receipts and deposits of collections
are as follows:

1. Collections

a. The Barangay Treasurer (BT) shall be responsible in handling collections of income


and other receipts of the barangay and their deposit with the Authorized
Government Depository Bank (AGDB);
b. All collections, either in cash or in check, shall be acknowledged by the issuance of
a pre-numbered Official Receipt (OR) – General Form 51 or its equivalent;
c. All accountable forms shall be secured from the City/Municipal Treasurer;
d. All checks shall be in the name of the Barangay;
e. Temporary or provisional receipts shall not be issued to acknowledge collections;
f. Endorsed checks shall not be accepted as payment of obligations to the Barangay;
g. For checks received, the OR number and date of issue shall be indicated at the back
of the check for reference purposes;
h. All particulars in the OR shall be filled out. Duplicate and triplicate copies of the
OR shall be the exact carbon copy of the original;
i. Overages discovered during the cash count/cash examination shall be receipted and
added to the accountability of the BT;
j. Cash shortages, including the loss of cash through force majeure, theft, robbery,
fire, etc. shall be deducted from the total cash account and the BT/Accountable
Officer (AO) shall be held personally accountable, pending the result of the
“Request for Relief from Cash Accountability” submitted to the Commission on
Audit (COA); and
k. All collections by the BT for the barangay shall be reported in the Summary of
Collections and Deposits (SCD).

2. Deposit of Collections

a. The BT shall deposit collections intact with AGDB, preferably on the following
banking day and in exceptional cases deposit shall be done within five (5) days after
receipt;
b. In the absence of an AGDB, deposits may be made in any bank nearest the
Barangay as may be authorized by the Monetary Board of the Bangko Sentral ng
Pilipinas;
c. The selection of a depository bank other than the AGDB shall be covered by a
Resolution of the Sanggunian Barangay (SB) and approved by the Punong
Barangay (PB). The said Resolution shall indicate the name of the bank, the type of
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deposit to be maintained, whether current, savings or time deposit and the
authorized signatories to the checks/fund withdrawals;
d. Funds earmarked for future operation which are not immediately needed may be
transferred to time deposits for the account of the Barangay. Placement in time
deposits shall be duly authorized by the SB and approved by the PB. Certificate of
time deposit/bank book shall be in the name of the Barangay. Upon maturity, the
check for the proceeds shall be issued in the name of the Barangay. Pre-termination
of time deposit or its renewal/rollover, shall have prior authorization of the SB and
approval of the PB;
e. In case of dishonored check, a “Notice of Dishonor” shall be immediately sent to
the payor upon receipt of the Debit Memo (DM) from the bank;
f. The original of the dishonored check and a copy of the bank DM shall remain with
the BT; and
g. All deposits by the BT for the Barangay shall be reported in the SCD.

3. Collections by the BT as deputized by the City/Municipal Treasurer

a. Collections made by the BT on behalf of the City/Municipal Treasurer, as


deputized, shall be remitted intact daily to the City/Municipal Treasurer. In
exceptional circumstances, remittances of said collections must be made within five
(5) days after receipt;
b. All remittances shall be supported with a Summary of Collections and Remittances
(SCR); and
c. The BT shall be accountable for all the forms received from the City/Municipal
Treasurer for use in the collection.

4. Collections by the Barangay Collector as deputized by PB

a. Collections of Deputized Barangay Collector (DBC) shall be remitted daily to the


BT;
b. All remittances shall be supported with SCR;
c. The DBC shall be accountable for all the forms received from the BT for use in the
collection.

5. Credit Memo and Bank Statement

a. Credit memo received from the bank for direct remittance made by
Local Government Units (LGUs) or the Department of Budget and Management
(DBM) for the barangay share in Real Property Tax (RPT) or the Internal Revenue
Allotment (IRA), respectively shall be recorded direct to the Cash on Hand and in

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Bank Register (CHBReg) and in the Cash Receipts and Deposits Register
(CRDReg);
b. The LGU or the DBM making the direct remittance shall furnish the
barangay, a copy of the advice, for information and counter-check with the CM
received from the bank: and
c. Interest earned on bank deposits shall be recorded at gross to the
CHBReg and CRDReg.

6. Accountable Officers and Transfer of Accountabilities

a. The PB/BT and all AOs shall be bonded in accordance with the
Department of the Interior and Local Government (DILG) Memo Circular No. 99-
186 dated October 11, 1999. The corresponding premium shall be paid out of the
barangay funds;
b. All PPE with insurable risk shall be covered by the Property
Insurance Fund of the Government Service Insurance System;
c. All AOs leaving the office, either thru resignation or completion of
terms/ suspension/retirement, shall seek clearances from money and property
accountabilities. They shall accomplish the Transfer of Property and Money
Accountability (TPMA) form.

1) All cash held shall be refunded/account closed and any unused accountable
forms shall be surrendered and property accountabilities returned;
2) The Property Acknowledgement Report (PAR) and Inventory Custodian Slip
(ICS) held shall be cancelled upon return of the items; and
3) The AO’s shall likewise transfer/submit/surrender all documents supporting the
entries in the registers submitted to the City/Municipal Accountant and any
records in their possession to the incoming officers.
4) All AOs shall seek clearance from the PB
5) The PB shall seek clearance from the City/Municipal Mayor
6) The approved clearance shall served as one of the supporting documents to the
last claim for honoraria/salaries of the officials

7. Barangay Record Keeper

When the funds of the barangay permits a Barangay Record Keeper (BRK) shall
be hired to do the following:

a. Maintain the different registers and registries;


b. Examine correctness of recording and completeness of supporting documents in the
different summaries:

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1) Act as custodian of the different summaries and supporting
documents of the different AOs;
2) Prepares the Disbursement Vouchers (DVs)/payroll, Purchase
Requests (PRs), Purchase Orders (POs), contracts; and
3) Prepares the transmittal letter submitting the registers, DM/Credit
Memo (CM) bank statement, copies of the summaries and other documents to
the City/Municipal Accountant.

Barangay Collections. Barangay collections include, but are not limited, to the
following:

1. Share in national and local taxes/revenues:

a. Internal Revenue Allotment


b. Utilization of national wealth, such as: lands of public domain, water, mineral, coal,
petroleum, mining, oil, gas and oil deposits, etc.
c. Tobacco Excise Tax (R.A. 7171)
d. Real Property Tax, including interests and penalties imposed thereon
e. Tax imposed on sand, gravel and other quarry products
f. Community Tax Certificate (CTC)

2. Barangay fees and taxes:

a. Fees imposed on:

1) Peddlers
2) Breeding of fighting cocks
3) Use of barangay roads, waterways, bridges and parks
4) Parking
5) Use of barangay properties/facilities
6) Clearance/certification
7) Other fees imposed by the barangay

b. Taxes imposed on stores/retailers within the barangay


c. Penalties for violation of barangay ordinance

3. Other fees and charges from:

a. Operation of cockpits, places of recreation, etc.


b. Fund raising activities

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c. Charges on billboards, signboards and other outdoor advertisements
d. Use of barangay operated public markets, slaughterhouses and waterworks
e. Operation of other barangay economic enterprises

4. Others sources:
a. Subsidies from:

1) National Government
2) Financial assistance from provinces, cities or municipalities

b. Proceeds from:
1) Loans and other indebtedness
2) Sale of PPE

c. Receipt of:

1) Performance/Bidders/Bail bonds
2) Refund of Payroll Fund/Advances to Officers
3) Funds intended for specific purpose
4) Payment for lost properties
5) Payment due to overpayment of claims
6) Other receipts

d. Grants and donations received


e. Dividend/Interest from investments

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Table 1
Receipt of Collections by Barangay Treasurer
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
Barangay Treasurer 1 Receives cash/checks from payor representing
collections of income/other receipts as well as
remittances of DBC.
2 Prepares the OR.
Note 1. The OR shall be prepared in three
copies to be distributed as follows:
Original – payor
2nd copy – to support the SCD )
3rd copy – BT (retained in the booklet)
3 Issues OR to the payor to acknowledge
collection.
Payor 4 Receives the original OR.
Barangay Treasurer 5 Retains the duplicate OR for submission to the
BRK, as supporting document to the SCD.
6 Retains the 3rd copy of the OR in the booklet for
file.

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OPERATING PROCEDURES
RECEIPT OF COLLECTIONS BY BARANGAY TREASURER
Procedural Flow Chart (Table 1a)
Barangay Treasurer

from payor

1 receives
Cash/Check

from vault

2 prepares
note 1

3 OR
1-3
issues

OR OR OR
1 2 2

5 6 files
receive 4 retains
4 to payor to BRK

Legend: Symbols:

OR Official
- Receipt - Flow of documents
SCDSummary
- of Collections and Deposits - Prepares
- File
Notes:
1. The OR shall be prepared in three copies - Document
to be distributed as follows:
Original – Payor - Cash/Check
2 nd copy – to support the SCD
3 rd copy – BT (retained in the booklet)
- Process

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Table 2
Collection and Remittance by Deputized Barangay Collectors
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
A Deputization of Barangay Collectors
Deputized Barangay 1 Receives the Authority from PB deputizing the
Collector DBC to collect markets/parking fees, etc.
2 Receives the accountable forms to be
used/issued to acknowledge collections.
3 Files the Authority.
B Collections
4 Collects fees on market operation by issuing
cash tickets to market peddlers or parking fee
tickets on the use of barangay pay parking lots.
5 Records collections in the SCR daily.
Note 1. See Table 2, Volume 11 for the
recording of collections in the SCR and
submission to the BT by DBC.
C Remittance of Collections
6 Submits three copies of duly certified SCR to
the BT together with the remitted collections.
Barangay Treasurer 7 Receives three copies of the SCR, together with
the remittance.
8 Reviews the SCR and checks the completeness
of data. Checks computation of accountable
forms issued/sold as against the reported
collections. Informs the collector in case of
discrepancy.
9 Acknowledges the remittance by completing the
acknowledgement portion of the SCR.
Note 2. The “acknowledgement” portion of the
SCR shall be filled out by recording thereat the
amount received and date of receipt.
10 Forwards a copy of the acknowledged SCR to
the DBC and keeps the original file of SCR.
Deputized Barangay 11 Receives the copy of the acknowledged SCR.
Collector Checks the amount remitted against the amount
as acknowledged. Files copy of the SCR.

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Area of Responsibility/
Seq. Activity
Person Responsible
Note 3. In case of discrepancy, informs the BT
immediately.
Barangay Treasurer 12 Forwards another copy of the duly
accomplished SCR to the BRK for file and
checking the Report of Accountability for
Accountable Forms (RAAF).

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OPERATING PROCEDURES
COLLECTION AND REMITTANCE BY DEPUTIZED BARANGAY COLLECTORS
Procedural Flow Chart (Table 2a)
Deputized Barangay Collector Barangay Treasurer

receives 1
from Punong
Barangay AF
1 2 receives
Authority
1

3 files 7 receives

8 reviews
collects &
issues SCR
From Payor
PFT 3 Cash
4 2
1
CT
Cash

9 acknowledges
5 records
Note 2
Note 1

SCR
1-3
3
Cash
10 forwards
6 submits

receives
SCR
11
3
2

12 forwards

to BRK
Legend: Symbols:
AF - Accountable Forms - Flow of Documents
CT - Cash Tickets - Records/Issues
PFT - Parking Fee Tickets - File
SCR - Summary of Collections & Remittance
BRK - Barangay Record Keeper - Document

Note: - Cash
1 See Table 2, Volume 11 for the recording
of collections in the SCR and submission - Process
to the BT by DBC.
2 The “acknowledgement” portion of the SCR
shall be filled out by recording thereat the
amount received and date of receipt.
3 In case of discrepancy, informs the BT
immediately

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Table 3
Collection and Remittance by BT as Deputized by
City/Municipal Treasurer
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
A Deputization of the BT
Barangay Treasurer 1 Receives the Authority from the City/Municipal
Treasurer deputizing the BT to collect RPT,
Community Tax (CT), etc. in his behalf.
2 Receives the accountable forms to be
used/issued to acknowledge collections.
3 Files the Authority.
B Collections
4 Collects RPT, CT and other authorized
collectibles.
5 Issues receipts and CTC to payor, retains the
2nd copy to support the SCR and the 3rd copy in
the booklet for file.
6 Records/Prepares daily collections in the SCR.
Note 1. See Table 3, Volume II for the
recording of collections in the SCR.
C Remittance of Collections
7 Submits the three copies of the certified SCR
supported by duplicates of the ORs issued to
the City/Municipal Treasurer with the full
remittance.
City/Municipal 8 Examines the SCR as to completeness of
Treasurer supporting documents and correctness of
recording of the OR issued.
9 Acknowledges receipt of the SCR and the
remittance. Signs the acknowledgement portion
of the SCR.
Note 2. The acknowledgement portion of the
SCR shall be filled out, indicating therein the
amount received and date of receipt.
10 Forwards two copies of the acknowledged SCR
to the BT and retains the original copy for file.
Barangay Treasurer 11 Receives the two acknowledged copies of the
SCR.

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Area of Responsibility/
Seq. Activity
Person Responsible
12 Checks correctness of amount received and
acknowledged against the actual remittance.
13 Files the acknowledged copy of the SCR.
14 Forwards a copy of the acknowledged SCR to
the BRK.
Note 3. The acknowledged SCR shall be used
in checking the RAAF rendered by AOs.

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OPERATING PROCEDURES
COLLECTION AND REMITTANCE BY BT AS DEPUTIZED BY CITY/MUNICIPAL TREASURER
Procedural Flow Chart (Table 3a)
Barangay Treasurer as Deputized City/Municipal Treasurer

receives 1

Authority Authority
receives 1
1 AF
2 AF
1
1
3 files
collects
from payor
issues
4 8 examines
5
CTC

Cash/check 1-3 RPTR acknowledges SCR Cash/Check


1-3 Note 2 1-3
9 3 CTC
2
RPTR
10 2
RPT RPT RPT forwards
2 3
1 CTC CTC CTC
2 3

1
5 6
issues records
Note 1
SCR
7 1-3

submits

SCR
11
12 checks
receives 2
3

files 13 14 forwards
2 Note 3
to BRk

Legend: Symbols:
AF - Accountable Forms
CTC - Community Tax Certificates - Flow of Documents
RPTR - Real Property Tax Receipt - Records/Issues
SCR - Summary of Collections and - File
Remittances
BRK - Barangay Record Keeper - Document

Note: - Cash/Check
1. See Table 3, Volume II for the recording
of collections in the SCR. - Process
2. The acknowledgement portion of the SCR
shall be filled out, indicating therein the
amount received and date of receipt.
3. The acknowledged SCR shall be used in
checking the Report of Accountability for
Accountable Forms rendered by AOs.

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Table 4
Deposit of Collections with the Bank
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
Barangay Treasurer 1 Counts collections (cash and checks).
2 Compares actual cash counted with the total
collections indicated in the ORs issued and
recorded in the SCD.
3 Prepares deposit slip.
Note 1. The Deposit Slip shall be prepared in
three copies for bank validation, to be
distributed as follows:
Original – bank
2nd copy – to support the recording in the
SCD
3rd copy – BT
4 Deposits collections intact with the depository
bank, the following banking day.
Note 2. See Table I, Volume II for the recording
of deposits in the SCD.
5 Receives two (2) copies of the VDS from the
bank.
6 Retains a copy for file and attaches the original
copy of the VDS to the SCD for submission to
the BRK.

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OPERATING PROCEDURES
DEPOSIT OF COLLECTIONS WITH THE BANK
Procedural Flow Chart (Table 4a)
Barangay Treasurer

from vault Note 2


compares from file deposits
2 Cash 4

Cash OR DS Checks
2
1-3 DS to bank
SCD

Checks 1 1-3
1

counts 3

prepares
Note 1

from bank

VDS 5 receives

1-2

VDS
2 6
1 retains

attaches to SCD for


submission to the BRK

Legend: Symbols:

DS
- Deposit Slip - Flow of Documents
VDS
- Validated Deposit Slip - Prepares
OR
- Official Receipts - File
SCD
- Summary of Collections and
Deposits
BRK - Barangay Record Keeper - Documents
Notes:
1. The Deposit Slip (DS) shall be prepared
in three copies for bank validation, to be - Cash and Checks
distributed as follows:
Original – bank - Process
2nd copy – to support the recording in the SCD
3rd copy – BT
2. See Table I, Volume II for the recording of
deposits in the SCD.

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Table 5
Receipt of Bank Debit/Credit Memo and Statement
Narrative Procedures

Area of Responsibility/
Seq Activity
Person Responsible
A Receipt of Debit/Credit Memo
Barangay Treasurer 1 Receives the CM/Advice from the bank on the
receipt of IRA/RPT due the Barangay.
2 Receives the DM on the dishonored checks
3 Submits the DM/CM/Advice received to the BRK
and keeps a xerox copy for file.
Barangay Record 4 Receives the DM/CM and temporarily files,
Keeper pending recording in the Register.
B Receipt of Bank Statement
Barangay Treasurer 5 Receives the bank statement (BnkS).
6 Submits the BnkS received to the BRK and
keeps a xerox copy for file.
Barangay Record 7 Receives the BnkS and temporarily files,
Keeper pending reconciliation.

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OPERATING PROCEDURES
RECEIPT OF BANK DEBIT/CREDIT MEMO AND STATEMENT
Procedural Flow Chart (Table 5a)
Barangay Treasurer Barangay Record Keeper

receives
from bank
2
receives
DM 4 receives
CM/Advice DM
1
1
Credit Memo/ Credit Memo/
DM Advice x Advice 1
x 1

3 submits & xerox

from bank

xerox
Bank Statement 7 receives & files
1
5 receives
Bank Statement
x 1
6 submits

Legend: Symbols:

x - xerox copy - Flow of Documents


DM - Debit Memo
- File

- Document

- Process

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Appropriations and Commitments

Policies and Procedures. Laws, rules and regulations of the government provide
that all disbursements of public funds, except those received for specific purposes, shall be
covered by an approved General Appropriations Ordinance (GAO) authorizing
appropriation for the annual budget. Unless authorized by the DBM, and covered by
subsequent SB Resolution approving the appropriation, in no case shall commitments
exceed the approved appropriations. The policies and procedures in monitoring the
approved appropriations and its utilization are as follows:

1. Appropriations

a. The Kagawad, designated as Chairman, Committee on Appropriations (CCA) shall


be responsible in monitoring the approved appropriations and the charges against
the following funds:

1) General Fund )
2) 20% Development Fund
3) Calamity Fund
4) Sanggunian Kabataan Fund
5) Gender and Development Fund

b. The CCA shall monitor the use of appropriated funds thru the Registry of
Appropriations and Commitments (RAC) which shall be maintained by Fund and
object of expenditures. In case the BRK maintains the registries, the CCA shall be
provided a copy of the RAC monthly for his file. The CCA may
inspect/examine/check anytime, the availability of funds and the recording in the
registries.

2. Commitments

a. Charges (deductions) against the appropriated funds shall be based on


the commitment made by the Barangay as shown in its Disbursement Vouchers
(Appendix 1)/Payrolls (Appendix 2), Contract or Purchase Order (Appendix 3) and
Requisition and Issue Slip (Appendix 4);

b. For infrastructure projects or purchase of equipment, the CCA shall


certify availability of Funds by stamping “Funds Available” on the face of the PR
and affixes his signature indicating the estimated required amount on the available
appropriation on the Purchase Request (Appendix 5) based on the SB Resolution
authorizing the construction/procurement;
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c. In addition to the certification in the DVs/payrolls, the existence of
available appropriation as reflected in the SB Resolution shall also be shown on the
face of the contracts and PO; and
d. Expenses for Personal Services (PS), Maintenance and Other Operating
Expenses (MOOE) and Financial Expenses (FE) shall be charged against Current
Operating Expenses (COE) while investments, purchase of PPE and construction of
infrastructures and reforestation projects shall be charged against appropriations for
Capital Outlay (CO).

3. Certification of the CCA on the PO/Contract, etc.

The certification of the CCA that “funds available” is construed to mean the
“availability of appropriations” to cover the commitment made on the PO, contract, etc.

Charges against Appropriated Funds. Commitments/Charges against the


appropriations for the four major classes of expenditures shall include but not limited to the
following:

1. Personal Services
a. Salaries and Wages – Regular
b. Salaries and Wages – Contractual
c. Honoraria
d. Cash Gift
2. Maintenance and Other Operating Expenses

a. Traveling Expenses – Local


b. Training Expenses
c. Supplies and Materials Expenses
d. Utility Expenses
e. Communication Expenses
f. Membership Dues and Contributions to Organizations
g. Rent Expenses
h. Repairs and Maintenance of PPE
i. Repairs and Maintenance of PIs/RPs
j. Taxes, Insurance Premiums and Other Fees
3. Capital Outlay

a. Investments in Treasury Bills


b. Purchase/Construction of the following PPE:

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1) Land
2) Land Improvements
3) Buildings
4) Leasehold Improvements
5) Office Equipment
6) Furniture and Fixtures
7) Books
8) Motor Vehicles
9) Other Equipment
10) Public Infrastructures
11) Reforestation Projects

4. Financial Expenses

a. Bank Charges (cost of checkbooks)


b. Interest Expenses
c. Other Financial Charges

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Table 6
Appropriated Funds
Narrative Procedures

Area of Responsibility/ Seq. Activity


Person Responsible
Chairman, Committee 1 Receives a copy of the Ordinance enacting
on Appropriations the appropriations of the Barangay for the
year.
2 Forwards the GAO to the BRK for recording.
Barangay Record 3 Receives the GAO.
Keeper
4 Records the receipt of the GAO in the logbook
for the incoming documents.
5 Records the details of the GAO in the
appropriate RACs of the specific fund.
Note 1. See Table 4, Volume II for the
recording of appropriations in the applicable
RAC.
6 Files the GAO.

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OPERATING PROCEDURES
APPROPRIATED FUNDS
Procedural Flow Chart (Table 6a)
Chairman, Committee on Appropriations Barangay Record Keeper

1 receives receives
3

4 records
GAO GAO
1 2 1
forwards LB

6 files
5
records
Note 1

RAC

Legend: Symbols:
- Flow of Documents
RAC - Registry of Appropriations and - Records
Commitments - File
LB - Log Book
GAO - General Appropriations Ordinance - Document

Note:
1 See Table 4, Volume II for the recording - Book /Registry
of appropriations in the applicable RAC.
- Process

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Table 7
Use of Appropriated Funds
Narrative Procedures

Area of Responsibility/ Seq. Activity


Person Responsible
Barangay Record 1 Receives DV/payroll/claims/PR/contract/PO/
Keeper request together with all the supporting
documents, for certification on the existence
of available appropriation to cover the
claims/PO/contract.
2 Checks the applicable Registry on the
availability of appropriations for the specific
charges/expenses.
3 If appropriations are not sufficient to cover the
charges/expenses presented, returns the
documents to the BT with the necessary
information. In case the appropriations are
sufficient, initials below the name of the CCA
in Box A of the DV/payroll or in the applicable
PO/contract.
4 Forwards the DV/payroll/PO/contract to the
CCA for certification as to availability of
appropriation.
Chairman, Committee 5 Examines the documents, checks the initial of
on Appropriations the BRK and if in order, certifies on the
“availability of appropriation” by signing in Box
A of the DV/payroll/PO or in the case of
infrastructure projects certifies availability of
funds by stamping “Funds Available” on the
face of the PR/contract.
6 Sends the certified documents back to the
BRK for recording in the appropriate RAC.
Barangay Record 7 Acknowledges receipt of the certified
Keeper document and records receipt in the logbook.
8 Records the commitments made in the
appropriate RAC.
Note 1. See Volume II Table 4, 11 for the
recording of the commitments incurred in the
appropriate Registry.
9 Files a copy of the certified document.
10 Forwards the original documents together with
supporting papers to the BT for

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Area of Responsibility/ Seq. Activity
Person Responsible
processing/appropriate action.

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Disbursements

Policies and Procedures. Existing rules and regulations require that all
disbursements of public funds be supported by documents necessary to prove their validity,
propriety and legality. The basic policies on disbursement are as follows:
1. Disbursements by check
a. All disbursements shall be covered with duly processed and approved
DVs/payrolls;
b. The DVs/payrolls shall be prepared by the BT/BRK;
c. The BT shall be responsible for paying claims against the Barangay. All
disbursements shall be in accordance with existing rules and regulations;
d. All claims shall be approved by the PB and certified as to the validity,
propriety and legality of the claim. In case of claim chargeable against Sanggunian
Kabataan Fund (SKF) the Sanggunian Kabataan (SK) Chairman shall initial under
the name of the PB;
e. Payments shall be drawn against the depository account maintained by the
Barangay with AGDB;
f. The check shall be issued in the name of the payee as indicated in the
DV/payroll;
g. The check shall be signed by the BT and countersigned by the PB;
h. All disbursements by check shall be reported in the Summary of Checks
Issued (SCkI);
i. In case of check which is waylaid, lost through theft or force majeure, etc.,
the BT shall be immediately notified and a “Stoppage of Payment” shall
immediately be given to the bank; and
j. Stale check shall be replaced only when the original is submitted to the BT for
replacement.

2. Disbursements out of cash advance for payroll

a. Cash payments shall be made out of the cash advance given to the
BT/AO;
b. The cash advance shall be used solely for payment of salaries, honoraria and other
allowances due the barangay officials;
c. Proceeds of the cash advance shall not be used for the encashment of checks or for
liquidation of previous cash advances;
d. The cash advance shall be equal to the net amount of the payroll corresponding to
the pay period;

26
e. The cash advance shall be liquidated within five (5) days after the end of the pay
period. Any unclaimed honoraria/salaries/allowances shall be refunded to close the
account;
f. The Summary of Cash Payments (SCP), supported by paid DVs/payroll shall be
accomplished to support the liquidation of the cash advance for payroll. In case the
cash advance is more than the disbursements the excess shall be refunded and an
OR shall be issued. If disbursements is more than the cash advance a
reimbursement shall be made;
g. All paid DVs/payrolls shall be recorded in the SCP; and
h. Succeeding cash advance shall be granted only after full liquidation of the previous
one.

3. Disbursements out of cash advance for travel and special purpose

a. For local/foreign travel, liquidation shall be done within


30/60 days upon return to their respective station;
b. Cash advance for time-bound special activity shall be
liquidated upon completion of the purpose for which it was granted;
c. The Liquidation Report (LR) shall be accomplished to
support the liquidation of the cash advance. In case the cash advance is more than
the disbursements, the excess shall be refunded and an OR shall be issued. If total
disbursements is more than the cash advance, a reimbursement shall be made; and
d. In case the cash advance is equal to the total
disbursements the LR supported with appropriate documents shall be submitted to
the BRK who in turn shall submit it to the City/Municipal Accountant for recording
in the books on the first week of the following month with transmittal letter.

4. Disbursements out of the Petty Cash Fund

a. The Petty Cash Fund (PCF) shall be maintained using the Imprest System;
b. The fund shall be kept separately from the regular collections and advances granted
for a particular purpose;
c. The amount of the PCF shall be determined by the SB but “not to exceed twenty
percent (20%) of the funds available and to the credit of the barangay treasury”
(Sec. 334 (b) of R.A. 7160);
d. All disbursements out of PCF shall be covered by duly approved and accomplished
Petty Cash Vouchers (Appendix 6) supported by cash invoices, ORs or other
evidences of disbursements required under applicable accounting and auditing rules
and regulations;
e. All paid Petty Cash Vouchers (PCVs) shall be reported in the Summary of Paid
PCVs (SPPCVs) to be certified by the BT/Petty Cash Fund Custodian (PCFC);

27
f. The PCF shall be replenished as soon as disbursements reach seventy five percent
(75%) or as needed;
g. Replenishment of the PCF shall be supported with duly certified SPPCVs, paid
PCVs and supporting documents;
h. The balance of the PCF shall not be closed at the end of the year;
i. In case the PCFC resigns or ceases as custodian of the Fund, full
accounting/liquidation of the Fund shall be made. Any remaining cash shall be
refunded to close the account; and
j. In no case shall the remaining cash of the former PCFC be transferred to the
incoming PCFC. For a complete accounting, the account of the former PCFC shall
be closed and a new account shall be opened for the incoming PCFC.

Basic Supporting Documents for Disbursements. The basic supporting documents


for typical barangay disbursement include but not limited to the following:

1. For payment of salaries/honoraria and other personal services:

a. Approved payroll supported by Daily Time Record (DTR)


b. Minutes of Meeting of the Barangay Council duly signed by the council members
and Barangay Secretary granting honoraria to barangay personnel (for first claim)
c. Approved application for leave (for leave with pay)
d. Approved Appointment, Oath of Office, Certificate of Assumption of Office and
Statement of Assets and Liabilities for newly hired employees (for first claim)

2. For cash advance for payroll

a. Net payroll for the period

3. For grant of cash advance for travel

a. Travel Order (TO)


b. Itinerary of Travel (IT)

4. Liquidation of cash advances

a. Payroll Fund – paid DVs/payroll and LR


b. Travel - original of the TO, plane/bus tickets or its equivalent, ORs, if any, boarding
pass, Certificate of Appearance and Liquidation Report (Appendix 7)
c. Training Expenses – Certificate of Appearance and Certificate of Training (for
claims after the training) and Invitation to attend the training (claim before the
training)

28
5. For payment of maintenance and other operating expenses

a. Membership Dues – Statement of Accounts/bills of the organization


b. Utility and Communication expenses – Bills
c. Repairs and Maintenance – Job Orders, Invoices, Certificate of
Warranty/Guarantee, Pre-repair Inspection Report and Post-repair Inspection
Report, Inspection and Acceptance Report (IAR), labor payroll (for repairs
undertaken by administration) or contract (for repairs undertaken by contract)
6. For purchase of equipment, supplies and other items (please refer to R.A. 9184 for the
modes of procurement, necessary procedures and documents needed):

a. Purchase Order
b. Bidding Documents (If through bidding)
c. Supplier’s Invoice
d. Delivery Receipt or the “Receipt” portion of the supplier’s invoice duly signed
e. Inspection and Acceptance Report
7. For infrastructures and reforestation projects
a. By contract (please refer to R.A. 9184 for the necessary procedures and documents
needed)

1) Bidding documents
2) Plan and specifications
3) Notice of Bidding
4) Contract
5) Notice to proceed
6) Billings of contractors
7) Inspection and Acceptance Report
8) Duly verified Contractor’s Project
Accomplishment/Completion Report
9) Program of Work
b. By administration

1) Supplies – PO, Suppliers Invoice, Bidding documents or


equivalent (depending on the mode of procurement used), Delivery Receipts
and IAR
2) Wages – Labor payroll, DTR and contract for labor
3) Plans/Program of Work
29
8. For repair and maintenance of PPE
a. Pre-Repair Inspection Report
b. Job Order/Contract
c. Supplier’s Invoice
d. Inspection and Acceptance Report
e. Post-Repair Inspection Report

30
Table 8
Certification and Approval of Payment
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
Barangay Treasurer 1 Receives DV/payroll in three copies duly
certified in Box A by the CCA as to availability
of funds together with all supporting
documents.
2 Checks the availability of fund (cash) to
support the claim.
3 Signs Box B of the DV/payroll certifying in the
availability of fund (cash).
4 Forwards the signed DV/payroll to the PB
together with the supporting documents for
certification and approval.
Punong Barangay 5 Certifies the DV/payroll as to validity, propriety
and legality, and approves it by signing in Box
C.
6 Forwards the approved DV/payroll to the BT
for the preparation of the check.
Barangay Treasurer 7 Receives the approved DV/payroll for the
preparation of the check/cash payments.

31
OPERATING PROCEDURES
CERTIFICATION AND APPROVAL OF PAYMENT
Procedural Flow Chart (Table 8a)
Barangay Treasurer Punong Barangay

5 certifies
1 receives

I DV
2 DV/P
DTR 6 I
checks 1-3
1-3 OSD DTR
forwards
3 OSD
signs

4 forwards

7 DV
I
receives 1-3 DTR
OSD

Se procedural flowchart on
Payment by check (Table 9a)

for the preparation of the check/payment

Legend: Symbols:

DV - Disbursement Voucher - Flow of Documents


I - Invoices - Document
DTR - Daily Time Record
OSD - Other Supporting Documents - Process
P - Payroll

32
Table 9
Payment by Check
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
Barangay Treasurer 1 Verifies completeness of signatures on the
DV/payroll.
2 Prepares the check in the name of the payee
for the amount indicated in the DV/payroll
Note 1. The check shall be prepared with a
carbon copy, to be distributed as follows:
Original – Payee
Carbon copy – attach to the DV/Payroll
3 Signs the check.
4 Forwards the check together with the
DV/payroll and supporting documents to the
PB for countersignature on the check.
Punong Barangay 5 Countersigns the check and returns it to the
BT together with the supporting documents for
release.
Barangay Treasurer 6 Receives and releases the check and a copy
of the DV to the payee. Temporarily files the
carbon copy of the check to be attached to the
DV/payroll paid.
Payee/Supplier 7 Acknowledges the receipt of payment by
signing in Box D of the DV and retains third
copy of the file.
8 Issues an OR to acknowledge the payment
received.
Note 2. The OR (if applicable) shall be made
as an additional supporting document for the
disbursements
9 Returns back the signed DV together with the
OR to the BT.
Barangay Treasurer 10 Attaches the OR issued by the payee/supplier
to the DV together with the carbon copy of the
check.
11 Records the paid DV/payroll in the SCkI to
33
Area of Responsibility/
Seq. Activity
Person Responsible
account for all checks issued.
Note 3. See Table 5, Volume II for the
recording of the check issued in the SCkI.
12 Files the paid DV together with all supporting
documents temporarily.

34
OPERATING PROCEDURES
Payment by Check
Procedural Flow Chart (Table 9a)
Barangay Treasurer Punong Barangay Payee/ Supplier

5 countersigns
1 verifies

DV 7
DV/P
3 acknowledges
DV/P I I 2
DTR 1
DTR 1-3 CC
1-3 OSD OSD
CC Check

2 Check
prepares 8 Issues
Note 1 Note 2
CC
1 OR
3 signs
Check
4 forwards 9
returns back

I DV/P
DTR
1-3 6
OSD
Check receives/
releases
cccc

11 records Note 3
Notes:
1. The check shall be prepared with a duplicate
DV
copy, to be distributed as follows:
2 SCkI
1 OR Original – Payee
2nd copy – attach to the DV/Payrol
2. The OR (if applicable) shall be made as an
additional supporting document for the
10 attaches
12 disbursements.
files 3. See Table 5, Volume II for the recording of the
check issued in the SCkI.

Legends: Symbols:
- Flow
- Flow of Documents
of documents
DV - Disbursement Voucher - Prepares/Records
- Recorded prepare
I - Invoices - File
- file
DTR - Daily Time Record
OSD - Other Supporting Documents - -Document
Documents
CC - Carbon Copy of the Check
OR - Official Receipt - -Cash/Check
Check
SCkl - Summary of Checks Issued
- Process
- connector

35
Table 10
Payment in Cash
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
Barangay Treasurer 1 Receives the check for the cash advance.
2 Signs in Box D, under the “Received payment”
caption of the DV to acknowledge the receipt
of the check. Files his copy of the DV.
3 Encashes the check and prepares the
distribution of payment based on the approved
payroll.
4 Pays the officers/employees named in the
payroll.
Note 1. The officers/employees shall be
required to sign in the last column of the
payroll to acknowledge the receipt of
payment from the BT.
5 Refunds any unclaimed salaries/wages/
honoraria to fully liquidate the cash advance
received for the pay period. Issues the OR for
the refund.
6 Records payments in the SCP.
Note 2. See Table 6, Volume II for the
preparation of the SCP.
7 Files the paid DV/payroll temporarily to
support SCP.

36
OPERATING PROCEDURES
PAYMENT IN CASH
Procedural Flow Chart (Table 10a)
Barangay Treasurer

pays Note 1
receives 4
1
encashes Officer/employees
3

Cash AP DV
Check
1
DV
1 7
2 6
AP 5 files
refunds
records
signs
Note 2

Cash
SCP
OR

Legend: Symbols:
- Flow of Documents
DV - Disbursement Voucher - Records/Encashes/Refunds/Pays
AP - Approved Payroll
SCP - Summary of Cash Payments - File
OR - Official Receipt

Notes: - Document
1. The officers/employees shall be required
to sign in the last column of the payroll to
acknowledge the receipt of payment from - Cash/Check
the BT.
2. See Table 6, Volume II for the preparation - Process
of the SCP.

37
Table 11
Liquidation of Cash Advance
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
Barangay Treasurer/ 1 Prepares the LR based on cash payments
Accountable Officer made.
Note 1. The LR shall be prepared in three
copies to be distributed as follows:
Original – to support the liquidation of
the Cash Advance
2nd copy – BRK
3rd copy – BT/AO
2 Checks supporting documents against the
SCP.
3 Signs Box A “Prepared by” portion of the LR.
4 Submits the duly accomplished LR to the
BRK for signature in Box B under the
“Certified Correct” caption of the LR, together
with all paid DVs/payrolls and the certified
SCP.
Barangay Record 5 Records the receipt of the LR in the log book.
Keeper
6 Examines the LR as to correctness and
completeness of supporting documents.
7 Signs in Box B of the LR.
8 Sends the LR together with the supporting
documents to the PB for approval and
signature in Box C.

38
OPERATING PROCEDURES
LIQUIDATION OF CASH ADVANCE
Procedural Flow Chart (Table 11a)
Barangay Record Keeper Barangay Treasurer

from file Note 1 2 checks


prepares

1
SCP
AP 1 LR
1-3 3
1
DV signs
1
examines
6 records
3 5

4 forwards
LR LB
DV
1-3
AP 1 7
SCP 1 examines
1

8 sends

to PB

Legend: Symbols:
DV - Disbursement Voucher - Flow of Documents
AP - Approved Payroll - Records/ prepares
SCP - Summary of Cash Payments - File
LR - Liquidation Report
LB - Log Book - Document
PB - Punong Barangay

Note 1: - Book
The LR shall be prepared in three copies
to be distributed as follows: - Process
Original – to support the liquidation of the
Cash Advance
nd
2 copy – BRK
rd
3 copy – AO

39
Table 12
Grant and Payments out of Petty Cash Fund
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
A Receipt of the authority to act as PCFC
Barangay Treasurer/ 1 Receives the approved SB Resolution
Petty Cash Fund designating the BT or an official as PCFC.
Custodian
2 Forwards the documents to the BRK for the
preparation of the DV for the establishment of
the PCF.
Note 1. See Table 8 for the certification and
approval of payment.
B Request for PCF
Requesting Officials 3 Prepares the PCV.
Note 2. The PCV shall be prepared in two
copies to be distributed as follows:
Original – to support to the liquidation
report
2nd copy – Requesting Office
4 Signs in Box A of the PCV.
5 Forwards the signed PCV to the PB for
approval.
Punong Barangay 6 Approves the PCV by signing in Box B.
7 Returns the PCV to the PCFC for payment.
Barangay Treasurer/ 8 Pays the amount requested and signs Box C
Petty Cash Fund of the PCV.
Custodian
Requesting Official 9 Receives the amount requested and signs
Box D of the PCV.
10 Returns the signed PCV to PCFC and retains
file copy for file.
C Liquidation of the PCV
11 Submits the documents supporting the
disbursement to liquidate the amount
received, upon completion of the purpose for
which the fund is requested.

40
Area of Responsibility/
Seq. Activity
Person Responsible
Barangay Treasurer/ 12 Receives invoice and other evidence of
Petty Cash Fund payments/disbursements from the Requesting
Custodian Officer.
13 Retrieves the original PCV and computes the
amount due to/from the recipient of the fund.
14 Pays the requesting official for the advances
made, if any.
Note 3. In case disbursements are more than
the petty cash fund received, the PCFC shall
pay the difference between the fund and the
total disbursement.
Receiving Official 15 Receives the refunds of the advances made.
Note 4. In case the disbursement is less than
the petty cash fund received, the receiving
officer shall return the excess to the PCFC.
16 Records the PCV in the Summary of Paid
PCVs.
Note 5. See Table 7, Volume II for the
recording of the paid PCVs in the SPPCVs.

41
Table 13
Replenishment of Petty Cash Fund
42
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible

Barangay Record 1 Retrieves paid PCVs and SPPCVs on file.


Keeper

2 Prepares the DV for the replenishment of the


PCFC.

Note 1. The replenishment shall be equal to


the amount disbursed per SPPCVs.

Attaches the original of the SPPCVs and the paid PCVs to the DV for the replenishment of
the PCF.
3

43
44
Inventory, Property, Plant and Equipment,
Public Infrastructures and Reforestation Projects

Polices and Procedures. Requisitions, procurement, issuance, physical inventory and


loss of inventories and PPE are governed by existing government rules and regulations.
The basic policies are:

1. Requisition and procurement

a. The BT shall act as the Property Officer of the Barangay and shall be responsible
for the receipt, upkeep, issuance and physical inventory of Barangay properties;
b. All procurement shall be in accordance with the requirements of RA 9184 or the
Procurement Law;
c. Purchases shall be covered by a PO;
d. Receipts shall be covered by IAR;
e. Receipts shall be recorded in a logbook (Appendix 8 )maintained for the purpose;
f. Procurement of supplies shall be charged to appropriation for MOOE while
procurement of PPE and construction of public infrastructures and reforestation
projects shall be charged against appropriation for CO;
g. Purchase of supplies shall be directly charged to expense while purchase of PPE
shall be capitalized and recorded in the Property, Plant and Equipment Register
(PPEReg) for control and monitoring purposes; and
h. All deliveries shall be inspected by the designated Kagawad and accepted by the
BT.

2. Issuance of Inventory and PPE

a. Inventory

1) Issuances of inventories shall be recorded in the logbook;


2) For accountability purposes, the end-user or the recipient of small tangible
items shall be issued an Inventory Custodian Slip (Appendix 9);
3) The recipient shall be responsible for the upkeep of the issued small tangible
items and shall be accountable thereto during the estimated useful life of the
item as determined by COA; and
4) Unserviceable small tangible items shall be returned to the BT for cancellation
of accountability and the ICS for replacement.

45
b. Property, Plant and Equipment

1) Issuance of property to end-user shall be covered by a Property


Acknowledgement Receipt (PAR) (Appendix 10) which shall be renewed at least
every three years or whenever there is a change in custodianship;
2) Any unserviceable PPE shall be returned to the BT for the cancellation of the
PAR and its eventual disposal;
3) All unserviceable items for disposal shall be summarized in the Inventory and
Inspection Report of Unserviceable Properties (IIRUP);
4) Properties which are no longer needed by the Barangay and reported in the
IIRUP shall be disposed of in accordance with regulations set by COA; and
5) Elected Officials/Employees of the Barangay shall be cleared of property
accountability by accomplishing the Transfer of Money and Property
Accountability (Appendix 11).

3. Physical Count of PPE

a. A physical inventory of all Barangay property shall be conducted at least once a


year;
b. A committee headed by the PB shall conduct the physical count of PPE owned by
the Barangay;
c. The result on the physical inventory shall be reported in the Report on the
Physical Count of PPE (RPCPPE);
d. The report, approved by the PB, shall be submitted to the BRK and the
City/Municipal Accountant for reconciliation with the recorded PPE;
e. Any unrecorded inventory shall be booked up at appraised cost; and
f. Any shortages shall be looked into and the AO shall be held accountable for the
loss.

4. Disposal of PPE and Inventory

a. All obsolete and unserviceable small items covered by ICS which could no longer
be used, shall be turned over to the BT for disposal. For small items covered by
ICS,the corresponding ICS shall be cancelled to erase the accountability of the user.
b. All unserviceable PPE shall also be turned over to the BT for disposal. The
corresponding PAR previously issued shall be cancelled
c. Items for disposal shall be summarized in the Inventory and Inspection Report of
Properties ( IIRUP)
d. The PPE disposed of, shall be dropped from the books m, only upon receipt of the
report on its disposal.

46
5. Loss of PPE

a. For property lost through force majeure, theft, robbery or negligence, a


“Notice of Loss” shall immediately be rendered by the AO to the PB;
b. Immediately upon receipt of the report of loss, the PB shall notify the
Property Insurance Fund of the GSIS for the recovery of the insurable value of the
lost asset.
c. Simultaneously, a request for “Relief from Property Accountability” shall be
submitted through the PB to the COA for decision;
d. The property lost shall be dropped from the books and the AO shall be held
accountable for the lost property pending the receipt of the COA decision on the
request for Relief from Property Accountability;
e. Accountability over lost property shall be computed at “sound value” of the
property lost;
f. Sound value is computed at replacement cost less accumulated depreciation
based on replacement cost; and
g. In case the request for relief is denied, the AO shall pay for the item lost.

6. Public Infrastructure/Reforestation Project

a. Infrastructure project, such as roads, parks, etc, which are constructed for public
use, shall be classified as Public Infrastructures. Project such as marshland or
swampland, shall be classified as Reforestation Projects;
b. The cost incurred for the projects shall be monitored, with the use of the
appropriate Registries, ie,

1) Registry of Public Infrastructure- Road


2) Registry of Public Infrastructure – Parks
3) Registry of Reforestation Projects – Marshland

c. The registry shall include information such as the cost and the cumulative repair
and maintenance cost of the project;
d. The projects are not subject to depreciation; and
e. Total project cost shall be included in the Notes to Financial Statements, when the
FS are submitted to COA.

Costing of Inventory. The cost of inventory acquired through purchase shall cover
only the invoice cost. Due to difficulty in apportioning incidental expenses incurred in
bringing the supplies to the Barangay shall be charged to account “Delivery Expenses”.

47
Property, Plant and Equipment. The PPE of the Barangay include but not limited
to the following:

1. Land and Land Improvements


2. Building purchased/constructed
3. Leasehold Improvements
4. Equipment
5. Furniture and Fixtures
6. Books
7. Motor Vehicles

Costing of Property. The cost of property acquired through purchase shall include
the purchase cost and all expenses incurred in bringing the asset to its intended location and
make it operational. Such expenses include transportation cost, insurance, arrastre, freight
charges, installation cost, etc. These shall be recorded as part of the total cost of the
purchased asset.

Normally, the costs chargeable against the PPE include but are not limited to the
following:

1. Land

a. Purchase price
b. Cost of clearing and demolishing unnecessary structures
c. Payment to squatters/illegal tenants for vacating the place (if any)
d. Cost of survey
e. Fees for registration and transfer of title
f. Taxes paid (transfer and capital gain tax depending on the agreement)

2. Building - through purchase

a. Purchase price
b. Payment to tenants for vacating the place (if part of the agreement)
c. Payment of any liability or encumbrance on the property (if assumed
by the buyer per agreement)
d. Cost incurred in renovating the building to put it to suitable condition
such as lighting installation, partitions and repairs made prior to occupancy

3. Building – by contract

a. Contract cost

48
b. Cost of advertising the bidding
c. Consultancy fee as supervision cost
d. Any expenses related to the construction

4. Building – by administration

b. Materials used, labor and overhead expenses incurred during construction


c. Supervision fee (consultant)
d. Excavation cost
e. Cost of bunk house (used as temporary construction office, materials and tools
storeroom)
f. Rental of service equipment
g. Cost of building permits and other permits
e. Architectural fees

5. Machinery, equipment, furniture and fixtures

a. Purchase price
b. Insurance while in transit
c. Freight in
d. Storage, handling and any cost related to the purchase
e. Installation cost, including site preparation and assembly
f. Testing, trial run and other expenses necessary for the machinery and other
equipment to function
g. Taxes and customs duties

49
Table 14
Requisition of Inventory and PPE
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
Requisitioner 1 Prepares the PR, by filling out information in
the “Requisition” portion.
2 Signs under the “Requested by” caption.
3 Forwards the signed PR to the BT.
Barangay Treasurer 4 Receives the PR.
5 Checks the availability of the stock.
6 Forwards the PR to the PB for approval.
Punong Barangay 7 Approves the PR by signing under the
“Approved for Issuance” caption.
8 Forwards the approved PRS to the BT for the
issuance of the inventory/PPE stated therein.
Note 1. If available, the item shall be issued
to the requisitioner. If not available, the item
shall be procured.

50
51
Table 15
Procurement of Inventory and PPE
Narrative Procedures

Area of Responsibility/
Seq. Activity
Person Responsible
Bids and Awards 1 Based on the PR, makes an estimate of the
Committee cost of the items to come up with the
Approved Budget for the Contract (ABC).
2 Forwards, the PR and the estimate or ABC to
the CCA for earmarking of appropriation.
Chairman, Committee 3 Receives the request for earmarking.
on Appropriation
4 Forwards the PR to the BRK for earmarking of
the funds needed.
Barangay Record 5 Checks the RAC and verify the availability of
Keeper the fund.

6 Earmarks the needed account.


7 Sends back the PR to the CCA for certification
in the availability of appropriation.
Chairman, Committee 8 Receives and returns the PR to the BAC with
on Appropriation the amount needed duly earmarked.
Bids and Awards 9 Conducts biding or adopts alternative mode
Committee of procurement under RA 9184.
10. Forward the result recommendation for award
of contract/PO to the PB for approval
Punong Barangay 11 Approves the result of the bidding

12 Sends the approved result of the BAC to BRK


for the preparation of PO
Barangay Record 13 Receives and prepares the contract/PO
Keeper
14 Initials below the name of the CCA under the
“Fund available” caption of the contract/PO.
15 Forwards the contract/PO to the CCA for
release to the supplier/Contractor
Chairman, Committee 16 Signs the certification of “funds available”
on Appropriation
17 Forward the contract/PO to the PB for
Approval

52
Area of Responsibility/
Seq. Activity
Person Responsible
Punong Barangay 18 Approves or signs the contract/PO
19 Forward the contract/PO to the BT for release
Barangay Treasurer 20 Receives the signed contract/[PO and release
it to contractor/Supplier

53
54
Table 16
Delivery of Inventory and PPE
Narrative Procedures

Area of Responsibility/ Seq. Activity


Person Responsible
Barangay Treasurer 1 Receives deliveries.
Requisitioner/BT 2 Inspects deliveries and checks in conformity
with the specifications stated in the PO.
3 Signs the “Received by” portion of the
suppliers invoice/delivery receipt.
Barangay Treasurer 4 Prepares the IAR.
Note 1. The IAR shall be prepared in three
copies to be distributed as follows:
Original – to support the DV for the
payment
2 copy – BT
nd

3rd copy – BRK


Note 2. In case of partial delivery, only the
quantity actually delivered and accepted shall
be indicated in the IAR
5 Forwards two copies of the duly accomplished
IAR to the BRK for recording of deliveries and
of the amount due the supplier. Retains the
2nd copy for file.
Barangay Record 6 Acknowledges the receipt of the IAR. Retains
Keeper the 3rd copy for file (the original shall be
attached to the DV for payment).
Note 3. See Table 8, Volume II for the
recording of the delivered items in the
PPEReg and amount due the supplier in the
Creditor’s Card (CC)

55
56
Table 17
Issuance of Supplies and Small Items Inventory
Narrative Procedures

ActivityArea
of Responsibility/
Person Responsible
Seq.
Issuance of Supplies
A
Barangay Treasurer 1 Receives the request from the requisitioner.

2 Fills out the “Issuance” section of the logbook,


noting the quantity issued and giving
“Remarks”, if needed.

3 Issues the items requested.

Requisitioner 4 Acknowledges the receipt by signing under


the “Received by” caption of the logbook.

B Issuance of Small Tangible Items

Barangay Treasurer 5 Prepares the ICS for the issuance of small


tangible items.

Note 1. The ICS shall be prepared in three (3)


copies to be distributed as follows:
Original – BT
2nd copy – BRK
3rd copy –Requisitioner

6 Forwards the ICS to the requisitioner for


signature and issue the items requisitioned.
Requisitioner 7 Signs under the “Received by” caption of the
ICS.

8 Returns the signed ICS to the BT.

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ActivityArea
of Responsibility/
Person Responsible

Barangay Treasurer 9 Signs under the “Received from” caption of


the ICS and files the original. Forwards the 2nd
and 3rd copies to the BRK and the
requisitioner, respectively for their file.

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59
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Table 18
Issuance of Property, Plant and Equipment
Narrative Procedures

Area of Responsibility/ Seq. Activity


Person Responsible
Barangay Treasurer 1 Prepares the PAR.
Note 1: The PAR shall be prepared in three
copies distributed as follows:
Original – BT
2nd Copy – BRK
3rd Copy – Requisitioner
2 Issues the item to the requisitioner together
with the PAR for signature.
Requisitioner 3 Signs under the “Received by” caption of the
PAR and receives the items requisitioned.
Returns the PAR to the BT.
Barangay Treasurer 4 Receives the PAR and signs under the
“Issued by” caption of the PAR and retains a
copy for file.
5 Furnishes the requisitioner a copy of duly
signed PAR for his file.
6 Forwards the duly accomplished PAR to the
BRK for recording in the Register and for file.
Barangay Record 7 Acknowledges receipt of the duly
Keeper accomplished PAR and files the PAR.
Note 1. See Table 8, Volume II for the
recording of the PAR in the PPEReg.

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Table 19
Loss of PPE
Narrative Procedures

Area of Responsibility/ Seq. Activity


Person Responsible
Accountable Officer 1 Notifies the PB through the BT on the loss of
the property immediately upon discovery of
the loss.
Punong Barangay 2 Receives the notification and conducts
immediate investigation on the cause of the
loss.
3 Prepares transmittal letter and submits the
notification of the accountable officer, the
investigation report and all the required
documents to GSIS for indemnification of the
lost property.
4 Forw
ards
copie
s of
all
the
docu
ment
s on
the
loss
of the
PPE
to the
City/
Muni
cipal
Acco
untan
t and
to the
BRK.

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Table 20
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Request for Relief from Property Accountability
Narrative Procedures

Area of Responsibility/ Seq. Activity


Person Responsible
A Request for Relief from Property
Accountability
Accountable Officer 1 Submits “Request for Relief from Property
Accountability” to the PB thru the BT for his
favorable endorsement to COA.
Barangay Treasurer 2 Endorses the request of the AO to the PB for
approval.
Punong Barangay 3 Signs the endorsement and forwards to COA,
through the field auditor, the “Request for
Relief from Property Accountability” with all
the necessary documents.
B Request for Relief from Property
Accountability granted by COA
4 Receives COA resolution granting relief to the
AO on the loss of the property.
5 Forwards the COA decision to the BT.
Barangay Treasurer 6 Receives the COA decision granting relief
from accountability on the loss of the property.
7 Provides the AO, BRK and the City/Municipal
Accountant with the copies of COA decision.
C Request for Relief Denied by COA
Accountable Officer 8 Pays for the “sound value” of the lost item.
Barangay Treasurer 9 Issues OR to acknowledge receipt of
payment.

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Fiscal Responsibilities of Barangay Officials

Fiscal Responsibilities of Barangay Officials. The responsibilities of barangay officials


in the management of the funds and properties of the barangay are as follows:
Punong Barangay

a. General Administration

1) Implements functions, projects, activities to provide basic services and facilities


as appropriated;
2) Negotiate, enter into, and sign contracts for and in behalf of the barangay, upon
authorization of the Sanggunian Barangay.
Certifies vouchers and payrolls as to validity, propriety and legality of the claim
involved ( Sec. 344 of 7160 )
3) Approves the claims (Sec. 344 of RA 7150) relating to the disbursement of
barangay funds
4) Countersigns the checks in payment of the claims
5) Transmit the registers and other documents to the city/municipal accountant
which will serve as basis in recording the barangay transactions in the book,
preparation of the bank reconciliation statement and the checking the Report on
Accountability for Accountable Forms ( RAAF) submitted by the BRK.
6) Signs the Management Responsibility over the Financial Statement (MRFS), on
or before February 14 of the ensuing year, when the city/municipal accountant
transmits the FS to COA.

2. Chairman, Committee on Appropriations

a. Use of appropriated Funds

1) Certifies the DV/payroll/contract/PO on the existence of available


appropriation to cover the claims/commitments;
2) Monitors the use of appropriated fund with the use of the appropriate
RAC;
3) Maintains the RACs, with the assistance of the BRK, for the
following five funds:

a) General Fund
b) 20 % Development Fund
c) Calamity Fund
d) Sanggunian Kabataan Fund

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e) Gender and Development Fund

4) Ensures that commitments do not exceed the available appropriations.

b. Reporting

1) Certifies and submits the Status of Appropriation, Commitment and


Balances (SACB) to the city/municipal budget officer one month after the
close of the calendar year; and
2) Certifies the RAC.

3. Barangay Treasurer

a. Collection

1) Keep custody of barangay funds and properties;


2) Collects all taxes, fees and other charges due and contributions
accruing to the barangay;
3) Deposits collections with the AGDB;
4) Collects for the city/municipal treasurer, when deputized and
remits all collection intact; and
5) Renders report on collections and deposits made.

b. Disbursements

1) Certifies to the availability of cash for the claim presented;


2) Issues and signs the check in payment of obligations;
3) Maintains the CHBReg and the PCFReg, if designated as the PCC; and
4) Renders the report on checks, cash and PCF disbursement.

c. Properties

1) Keeps the logbook for the receipt and issuance of supplies and materials;
2) Issues ICS to end-user of the issuance of materials with serviceable life of more
than one year.
3) Prepares the PAR for the issuance of property; and
4) Assist the PB in the conduct of physical count of properties.

d. Reporting

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1) Renders a written accounting reports of all barangay funds and properties under
his custody; and
2) Certifies the CHBReg and the PCFReg and submits a copy to the BRK at
month end.

4. Barangay Record Keeper

a. Prepares the DV/payroll, contract, Purchase order or RIS;


b. Maintains all the registers, except the CHBReg and the PCFReg which are
maintained by the BT;
c. Checks correctness of entries in the CHBReg and the PCFReg;
d. Keeps and files all documents submitted by the accountable officers supporting the
Summaries intact and free from loss;
e. Make all financial documents available to COA representative anytime for
audit/examination;
f. Prepares the Transmittal Letter (Appendix 12), forwarding the certified registries and
documents to the City/Municipal Accountant/Treasurer/Budget Officer, as the case
maybe; and
g. Assist the CCA in the maintenance of the different RAC.

5. Sanggunian Kabataan Chairman

a. Implements the SK project in accordance with the approved


appropriation; and
b. Initials below the name of the PB on claims against the SK
Fund.

6. Accountable Officers

a. All AOs shall be bonded in accordance with the Department of the Interior and
Local Government (DILG) Memo Circular No. 99-186 dated October 11, 1999; and
b. Upon resignation or completion of terms/suspension/retirement, all AOs shall seek
Clearance from Money and Property Accountability (Appendix 13).

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MATRIX OF FORMS

Appen Frequency Number Barangay


Title Barangay
-dix of Prepared by of Record Others
Treasurer
No. Preparation copies Keeper
1 Disbursement As needed BT/BRK 3 1 1 SCkI/
Voucher SCP/
Payee
2 Payroll As needed BT/BRK 2 1 1 SCP
3 Purchase Order As needed BT/ 3 1 1 Supplier
BRK
4 Requisition and As needed Requestor 3 1 1 PO
Issue Slip

5 Purchase Request As needed Requestor 3 1 PO


Requestor
6 Petty Cash Voucher As needed PCFC 2 1 SPPCV

7 Liquidation Report As needed BT/ 3 1 AO


BRK DV
8 Logbook As needed BT/PC 1 Property
Custodian
9 Inventory Custodian As needed BT 3 1 1 User
Slip
10 Property As needed BT 3 1 1 User
Acknowledgement
Receipt
11 Transfer from Money As needed Elected 4 1 1 AO/
and Property Officials/BT User/
Accountability /Employee COA
12 Transmittal Letter As needed BRK 2 1 City/Muni
cipality
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13 Clearance from As needed AOs 2 1 AOs
Money and Property
Accountability

DESCRIPTION OF PRESCRIBED FORMS

For the convenience of Barangay Officials, sample forms have entries as illustrated in
the different forms prescribed in this Manual.

Instructions on how to accomplish the forms are also provided at the back of the form
for easy compliance of users. Some of these forms are also mentioned in the narrative
procedures and flowcharts in other volumes of this Manual.

Included in this Volume are the forms commonly used in the operation of the
Barangay. Forms needed to record the transactions are found in Volume II while those used
for reporting are in Volume III.

Disbursement Voucher. The DV shall be prepared by the BT/BRK and shall be used
by the Barangay for all money claims. The voucher number shall be indicated on the DV
and on every supporting document to the claim. The supporting documents shall be listed
on the face of the voucher. In case more space is needed, the back of the DV shall be used.

Payroll. This form shall be prepared by the BT/BRK and shall be used for payment
of salaries, wages, overtime pay, honoraria and other emoluments of Barangay officers and
employees.

Purchase Order. The PO is a letter addressed to the supplier requiring the


supply/delivery of the items specified therein in accordance with the terms of the purchase
as agreed upon during the procurement process. This shall be prepared by the BT/BRK for
every purchase to be made.

Requisition and Issue Slip. The RIS shall be prepared by the BRK or the
requisitioner to request for supplies, materials and equipment.

Purchase Request. This form shall be prepared by the BRK every time a purchase is
to be made. Based on the approved PR, the BRK shall prepare the PO.

Petty Cash Voucher. The PCV shall be prepared by the requesting officials and shall
be used for all disbursements out of the Petty Cash Fund.

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Liquidation Report. This report shall be prepared by the BT/BRK or concerned
accountable employees/officers in liquidating the cash advance and cash advances granted
for travel or for special undertaking.

Logbook. The logbook shall be used by the BT/property custodian to record the
receipt and issuance of supplies and materials to end users.

Inventory Custodian Slip. The ICS shall be prepared by the BT for the issuance of
small tangible items with a serviceable life of more than one year, but small enough to be
considered as PPE.

Property Acknowledgment Receipt. The PAR shall be prepared by the BT and shall
be used to acknowledge the receipt from the BT of property and equipment.

Transfer from Money and Property Accountability. This form shall be


accomplished by elected officials/accountable officers/employees upon completion of their
terms or resignation/separation from service.

Transmittal Letter. This form shall prepare in transmitting reports, register and
other documents to the City/Municipal Office.

Clearance from Money and Property Accountability. This form shall be used to
by all AOs upon resignation or completion of terms/suspension/retirement.

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