FINANCIAL AND BUDGETARY

PROBLEMS AFFECTING
RECEIPTSCHOOL
AND COLLECTIONS
/ DISBURSEMENT
ADMINISTRATORS

OBJECTIVE
To determine the basic functions of the

School Administrator at the field level

To define the receipts and collections /
disbursements
To discuss the collection and disbursement
system
To determine the laws and regulations, and
common rules on internal control
Cash Receipt and Collections
Disbursement

Functions of School
Administrator at the Field Level
To develop and install the internal control structure,
accounting system and procedures

To safeguard assets, provide reliable accounting data and

promote operational efficiency and effectiveness

To manage, operate and control the operations at the field

level in accordance with laws, rules and regulations

To maintain an annual or periodic evaluation report of

operations relating to the expenditures of funds and other

resources

To supervise the accountable officers under his/her

jurisdiction to assure compliance to existing laws, rules

and regulations in the disposition of fund

RECEIPT AND COLLECTIONS

Receipt refers to all cash inflow whether

actual
or constructive regardless of source
or purpose
and whether pertaining to the
agency or not.

It includes not only income or revenue

actually collected but also trust receipts,
fund deposits, inter-fund and inter agency
transfers and equity contributions received
by corporate agencies
(COA Memo 84411).

SOURCES OF RECEIPTS AND

COLLECTIONS
Subsidy income from the National Government
Subsidy from the central office
Subsidy from Regional office/Staff Bureau
Income from Government Service
Income from Grants and Donations
Refund of Cash Advance
Performance Bidders/Bail Bonds
Collections made on behalf of another agencies
Inter-agency transferred funds

THE COLLECTIONS
SYSTEM
RECORD

CASH RECEIPT RECORDS

BOOKS OF ACCOUNT

CASH RECEIPT JOURNAL

CASH JOURNAL
GENERAL LEDGER
SUBSIDIARY LEDGER

REPORT

REPORT
REPORT

OF COLLECTION AND DEPOSITS

ON ACCOUNTABLE FORMS

POLICIES ON COLLECTIONS

All moneys and property officially received by a

public officer in any capacity or upon any occasion
must be accounted for as government fund and
government property (Sec 42, chapter 7, Title 1,
Book V, 1987 Administrative Code).

No payment of any nature shall be received by a

collecting officer with out immediately issuing an
OR in acknowledgement thereof (Sec 44, chapter 7,
Title 1, Book V, 1987 Administrative Code).

Official Receipt are designed to cover a particular

kind of collection only and at no instance shall
temporary receipt be issued to acknowledge receipt
of public funds (Sec. 72. GAAM Volume 1).

POLICIES ON COLLECTIONS
Pre-numbered Official Receipts shall be issued in

strict numerical sequence. All copies of each receipt

shall be exact copies or carbon reproduction in all
aspect of the original(Sec 73, Article 2, Chapter 3,
Book II, GAAM).

At no instance should money in the hands of the

collecting officers be utilized for the purpose of encashing private checks (Sec. 67 (1) and (3), P.D 1445).

Accountable Officers shall submit to the COA Unit

Auditor all obsolete, spoiled and cancelled OR and

other accountable forms for inspection and
destruction in compliance with Sec. 99, GAAM Volume
1

Policies on Deposits
All collecting officers shall deposit intact all

their collections, as well as collections turned

over to them by sub-collector, through AGDB
to the National Treasury daily or not later than
the next banking day.

Where Combined Savings and Current Account

(COMBO) are authorized to be maintained,
deposits shall be made only through the
Savings Account and withdrawals shall be
drawn made only by the issuance of checks to
be drawn on approved vouchers against the
current account (Sec. 113, GAAM Vol.1)

COMMON RULES ON INTERNAL CONTROL

OVER
CASH RECEIPT AND COLLECTIONS

The collecting officer should be familiar with

the laws and regulations affecting his work. He

should not have access to or responsibility over
the accounting records related cash .

Adequate records should be maintained and

reports regularly submitted

Reconciliation of banking transaction should be

done by persons other than those responsible

for the handling of cash received and deposited

COMMON RULES ON INTERNAL CONTROL

OVER
CASH RECEIPT AND COLLECTIONS

Control over cash, including remittances

through mails, should be established

immediately once received, acknowledge with
pre-numbered official receipts and recorded
promptly

Monthly report of accountability for the

accountable forms should be prepared and

submitted by all accountable officers

No disbursement should be made from cash

receipt unless specifically authorized

COMMON RULES ON INTERNAL CONTROL

OVER
CASH RECEIPT AND COLLECTIONS

Cash receipt should be deposited intact daily

Safes and other facilities should be provided
to ensure protection of cash and unused
accountable forms

Surprise cash examinations should be made

frequently by internal and external auditors.

The collecting officer as well as his assistant

should be adequately bonded.

THE DISBURSEMENT SYSTEM

RECORD

Cash Disbursement Records

Check Disbursement Records

BOOKS OF ACCOUNT

Check Disbursement Journal

Cash Disbursement Journal
General Ledger
Subsidiary Ledger

REPORT

Report of Checks Issued

Report of Disbursement
Petty Cash Replenishment Report
Liquidation Report

POLICIES ON DISBURSEMENT

Basic Requirements Applicable to all Types

of Disbursements

Certificate of availability of fund

Approval of claim or expenditure by head of
office or his duly authorized representative
Submission of documents and other evidences
to establish the validity and correctness of the
claim for payment
Conformity of the expenditure to existing laws
and regulations
Proper accounting treatment

POLICIES ON DISBURSEMENT

Only permanently appointed officials and

employees shall be granted cash advances

Only duly appointed or designated disbursing

officer may perform disbursing functions.

Only one disbursing officer shall be assigned /

designated for a specific legal purpose.

Transfer of cash advance from one accountable

officer to another shall not be allowed

The cash advance shall be used for the specific

legal purpose for which it was granted.

POLICIES ON DISBURSEMENT

No additional cash advance shall be allowed to any official or

employee unless the previous cash advance given to him is first
settled or a proper accounting thereof is made (Sec. 89, PD
1445)

No cash advance shall be given unless for a legally authorized

specific purpose. A cash advance shall be reported on and
liquidated as soon as the purpose for which it was given has
been served.

Cash advances granted for travel shall be accounted for as Due

to Officers and Employees which are subject to liquidation
upon travel completion.

When a cash advance is no longer needed or has not been used

for a period of two months, the same should be returned to, or
deposited immediately with the collecting officer (COA Circular
No. 97-002)

POLICIES ON DISBURSEMENT

The AO shall liquidate his/her cash advance as follows:

Salaries, wages, etc. within 5 days after each 15 day/end of

the month pay period

Petty Cash Fund within 20 days after the end of the year,
subject to replenishment during the year

Foreign travel within 60 days after return to the Philippines

Local travel immediately upon completion of the official travel

All cash advances shall be fully liquidated at the end of each year

When no liquidation of the previous cash advance is received on

or before January 20, the Accountant shall cause the withholding
of the AOs salary (COA Cir. 97-002)

POLICIES ON DISBURSEMENT

No officer or employee shall be granted

a cash advance unless he/she is

properly bonded in accordance with law

Every official or employee authorized to

travel abroad shall render an account of

the cash advances received by him
within sixty (60) days after his return to
the Philippines

COMMON RULES ON INTERNAL CONTROL

OF
DISBURSEMENT
The disbursing officer (DO) should be
familiar with the laws and regulations
affecting his work. He should not have
access to or responsibility over the
accounting records related to
disbursement.
Adequate records should be maintained and
reports regularly submitted
Officers authorized to sign checks should
have no authority over the accounting
records or the custody of cash

COMMON RULES ON INTERNAL CONTROL

OF
DISBURSEMENT

Checks should be countersigned,

the signing and countersigning of
checks should not be made in
advance
Vouchers should be approved by
one or more individuals other than
the disbursing officer

COMMON RULES ON INTERNAL CONTROL

OF
DISBURSEMENT

Vouchers and supporting papers

should be stamped PAID upon
payment
The disbursing officer as well as
his/her assistants, should be
bonded with the Fidelity Bond
Division of BTR

DepEd Order No. 5, s. 2008

Dissemination of the code of signing

authorities on Administrative and Financial

Matters to Central and Field Offices
Financial Matters

Petty Cash Vouchers

Requisition and Issue Slip
Purchase Request and Job/Work Request
Purchase Order, Job/work Order, MOA etc.
Obligation Request
Disbursement Voucher
Check

Petty Cash Voucher

Regional Offices
Division Offices
School

Approval by the

Officials authorized
by the Head of
Office

Requisition and Issue Slip

Signed by the head
of requisitioning
office

Regional Offices
Division Offices
School

Approved by the
following officials

Chief Adm. Officers

SDS
Principal

Purchase Request and Job/Work Request

Signed by the head

of requisitioning
office

Regional Offices
Division Offices
School

Approved by the
following officials

Regional Director
SDS
Head of School

Purchase Order, Job/work Order, MOA,

Contract for Delivery of Goods and Services
and other Commitments / Contracts
Signed by the head of
requisitioning office
Regional Offices
Division Offices
Not over 5 M
Over 5 M

School with

Approved by the
following officials
Regional Director
SDS
Regional Director

Financial Staff

Not over 1 M
Over 1M but not over
5M
Over 5 M

Head of School
SDS
Regional Director

Obligation Request
PS, Electricity, Water,
Telephone and Rent

Regional Offices
Division Offices
School

MOOE & CO

Head of Requesting Unit

Box B of the ObR shall be
signed by the Head of the
budget Division / Section /
Unit to certify on the
availability of allotment
and obligation incurred

Approval
CAO, Administrative
Officer
Administrative Officer
Administrative Officer

Disbursement Voucher
Regional Offices
Division Office and Schools
without financial Staff
PS
MOOE/CO
Not over P 5 M
Over 5 M

Regional Director
Regional Director
SDS
Regional Director

School with Financial Staff

PS

Head of School

MOOE/CO
Not over P 1M
Over P1M but not over
5M
Over 5 M

Head of School
SDS
Regional Director

Office

Monetary
Limit

Regional Office

None

Signing
Official
Asst. Regional Director

Countersigning
official
Regional Director

Chief Administrative
Officer
Cashier
Division Office
School w/o Financial
Staff
PS

None

Asst. School Div Supt

School Division Supt.

Administrative Officer
Cashier
MOOE / CO

Not over P 5M

Asst. School Div Supt

School Division Supt.

Administrative Officer
Cashier
Over P 5M

School Division Supt.

Regional Director

Office

Monetary
Limit

Signing
Official

Countersigning
official

School w/ Financial Staff

PS

None

Disbursing Officer

Head of School

Administrative Officer
Cashier
MOOE / CO

Not over P 1M

Disbursing Officer

Head of School

Administrative Officer
Cashier
Over P 1M

Head of School

School Division Supt.

School Division Supt.

Regional Director

but not Over P 5M

Over P 5M