BARANGAY OBLIGATIONS AND

DISBURSEMENTS
Barangay Obligations and Disbursements

Session Overview
 Obligation
- Definition
- Requirements or Policies
- Recording and Reporting

 Disbursements
- Definition
- Policies
- Basic Documentary Requirements
- Mode of Disbursements
- Recording and Reporting
Barangay Obligations and Disbursements

Learning Objectives
The participants will be able to describe the
obligation process, charges to the Special
Trust Fund, the disbursement process, the
required documentation and its flow to the
records and report of the barangay.
Barangay Obligation and Disbursements

Definition
Obligations refer to the amounts committed to be
paid by the LGU for any lawful act made by an
accountable officer for and in behalf of the local
government unit concerned.
Barangay Obligations and Disbursements

Definition
Disbursements refer to the settlement of
government payables/obligations by cash
or check.
Barangay Obligations and Disbursements

Definition
Record of Appropriations and
Obligations (RAO) records the
obligations incurred charged to the
approved budget.
Barangay Obligations and Disbursements

Definition
The Registry of Special Trust Fund (RSTF)
records charges to the Special Trust Fund.
Barangay Obligations and Disbursements

Basic Policies for Obligations

No money shall be paid out of the treasury

except in pursuance of an appropriation
ordinance or law.

All expenditures/obligations shall in no case

exceed available appropriations.
Barangay Obligations and Disbursements

Basic Policies for Obligations

 Special trust funds shall not be paid out except in

fulfillment of the purpose for which the trust was
created or funds received.
 Barangay Obligations and Disbursements

Obligation Process
Transaction CCA BT PB

1. Cash Advance for Payroll for the
month of December 2016
- the Barangay Treasurer
prepares the DV & payroll
- attach the supporting
documents in the payroll
The BT forwards the DV &
payroll and supporting
documents to the CCA to certify
as to availability of appropriation
for obligation. (Certification A of
the DV & payroll)
The CCA returns the DV & The BT forwards the DV & payroll
payroll and supporting and supporting documents to the
0
documents to the BT to certify as PB to certify as to validity,
to availability of funds, and 0 propriety and legality of the claim,
completeness and propriety of and to approve for payment.
supporting documents. (Certification C of the DV &
(Certification B of the DV & payroll)
payroll)

The CCA records the obligation The PB returns the approved DV

in the RAO. & payroll and supporting
documents to the BT for the
preparation of checks.

The BT prepares and signs the

check, and forwards the signed
check to the PB for
countersigning.
Barangay Obligations and Disbursements

All claims against government funds shall be

supported with complete documentation.

(Refer to COA Circular No. 2012-001 for the basic documentary

requirement of a particular transaction.)
Barangay Obligations and Disbursements

Specific Policies for Disbursements

Disbursement shall generally be made by

checks drawn against the depository account
of the barangay.
Barangay Obligations and Disbursements

Specific Policies for Disbursements

 Disbursement by cash shall be made only from the
cash advance granted for the purpose and petty
cash, observing the following guidelines:
 Only permanently appointed officials shall be
designated as disbursing officers.

 Only duly appointed or designated disbursing

officers may perform disbursing functions.
Barangay Obligations and Disbursements

Specific Policies for Disbursements

 Transfer of cash advance from one Accountable

Officer to another shall not be allowed.
 The cash advance shall be used solely for the
specific legal purpose for which it was granted.
Under no circumstance shall it be used for
encashment of checks or for liquidation of a
previous cash advance.
Barangay Obligations and Disbursements

Specific Policies for Disbursements

 Disbursements or disposition of government funds

or property shall invariably bear the approval of the
proper officials.

 Disbursements shall be made only on duly certified

and approved DV, PCV and Payroll.
Barangay Obligations and Disbursements

Specific Policies for Disbursements

All disbursements shall be supported with

Punong Barangay Certification.
- DVs are duly certified by the proper barangay
officials and approved by the PB;
- expenditure or disbursement is proper and valid;
and
- supporting documents are complete