01/10/2018

Accounting for
budgetary accounts

• In order that the appropriation may be released, the agency, in consultation

with the DBM, is required to prepare and to submit the Agency Budget
Matrix (ABM), the official document used as the basis in the release of the
obligational authority. This is prepared by appropriation/financing sources
to support expenditures to be made during the year broken down by
allotment class/expenses.
• The ABM shall contain, among others, the following information:
• The amount to be released categorized under “Not Needing Clearance” column,
• The amount that will be released through the issuance of Special Allotment Release
Order (SARO) categorized under “Needing Clearance” column including continuing
appropriations based on the Statement of Allotments, Obligations and Balances
(SAOB)

1
 01/10/2018

• An Annual Cash Program, which shall provide cash to finance the programs
reflected in the ABM and the prior year’s accounts payable, is also submitted
with the ABM. Upon approval of the total comprehensive release by the
DBM, it will be released to the agency.
• For request “Non-Needing Clearance”, the Notice of Cash Allocation (NCA)
is issued as requested.

Records of the DBM

• Upon the approval and issuance of the ABM and the SARO, the DBM shall
enter the pertinent data on releases for each government agency in the
Registry of Appropriations and Allotments (RAPAL).
• The DBM shall maintain the Registry of Allotments and NCA (RANCA) for the
allotments and the NCA issued to the agency. The RANCA shall be the
control and monitoring record of the DBM and shall furnish the BTr a copy of
the NCA.

2
 01/10/2018

Records of the BTr

• Upon receipt of the NCA from DBM, the BTr shall enter it in the Registry of
NCA and Replenishment (RENREP). It shall also enter the transfer of cash
from its bank account(s) to the appropriate MDS account.

Accounting of Obligations

• Obligation refers to a commitment by a government agency arising from an

act of a duly authorized official which binds the government to the
immediate or eventual payment of a sum of money
• The Head of the Requesting Unit shall prepare the Obligation Request (ObR)
or Budget Utilization Request (BUR) and Disbursement Voucher. He shall
certify on the necessity and legality of charges to appropriations/allotment
under his direct supervision as well as the validity, propriety and legality of
supporting documents.

3
 01/10/2018

• Obligations shall be taken up in the registries maintained by the Budget

Unit through the ALOBS (Allotment Obligation Slips) prepared/processed by
the office.
• The Budget Officer verifies the completeness of the documents. If
complete, then prepares the ALOBS.
• Verifies the availability of the allotment based on the RAOs.
• If no allotment is available, returns the documents to the office concerned,
if there is an available balance of allotment to cover the obligations,
prepares the ALOBS and record in the appropriate RAOs.

Income/Collections
and Deposits System

4
 01/10/2018

• This system covers the processes of acknowledging and reporting

income/collections, deposits of collections with Authorized Government
Depository Bank (AGDB) or through the AGDB for the account of the
Treasurer of the Philippines, and recording of collections and deposits in the
books of accounts of the agency.
• The sources of income and collections made by Agency are:
• Taxes
• Operating and Service Income
• Grants and Donations
• Borrowings
• Miscellaneous Receipts
• All collecting officers shall deposit intact all their collections with AGDB
daily or not later than the next banking day and shall record all the
deposits made in the Cash Receipts Record.

Receipt and Collection Process

• The Collecting Officer (CO) receives payment from creditors and issues Official
Receipt.
• The CO records collections in Cash Receipt Record.
• The CO deposits collections.
• The CO records deposit in Cash Receipt Record.
• The CO prepares the Report of Collections and Deposits and forwards to
accounting unit with copies of official receipts and validated Deposit Slips.
• The accounting unit prepares Journal Entry Voucher (JEV) and records in the Cash
Receipts Journal.

5
 01/10/2018

Without Authority to Use

• As a general rule, all revenues regardless of amount and frequency of

collection are to be remitted to the National Treasury.
• Receipt of cash payment of hospital fees
Cash – collecting officers 10101010 xxx
Hospital fees 40202170 xxx
• Remittance to the treasury
Accumulated Surplus/ (Deficit) 30101010 xxx
Cash-collecting officers 10101010 xxx

With Authority to Use

• For agencies which are authorized to use income for their operations, the
collections shall be recorded as income in the Regular Agency (RA) books
• Collection of prior year’s receivables
Cash- collecting officers 10101010 xxx
Accounts Receivables 10301010 xxx
• Issuance of bill for the rent of an office space
Accounts Receivables 10301010 xxx
Rent/Lease income 40202050 xxx
• Record collection of rent payment
Cash – collecting officer 10101010 xxx
Accounts Receivable 10301010 xxx

6
 01/10/2018

• Record temporary deposit to the NT thru the AGDB bank.

Cash-Treasury/Agency Deposit –Trust 10104010 xxx
Cash – collecting officer 10101010 xxx
• Release of NCA by DBM after request is made to the BTr to use the
deposited collections as augmentation of MOOE
Cash – MDS, Trust 10101060 xxx
Cash-Treasury/Agency Deposit –Trust 10104010 xxx
• Record disbursement for the repair
Repairs and Maintenance – Buildings And Other Structures 50213040 xxx

Cash- MDS, Trust 10101060 xxx

Authority with Limitations

• If the authority is subject to the limitation that any excess shall be remitted
to the National Treasury, such collections, e.g. seminar and convention fees,
the collections shall be recorded in the RA books. The expenses shall be
journalized, the balance/excess to be remitted to the National Treasury.

7
 01/10/2018

• Record collection of (e.g.)seminar fees

Cash – collecting officer 10101010 xxx
Seminar/Training fees 40202040 xxx
• Record deposit of collection
Cash in Bank – Local Currency Current Account 10102020 xxx
Cash – collecting officer 10101010 xxx
• Record payment of expenses
Office supplies expense 50203010 xxx
Cash in Bank – Local Currency Current Acct 10102020 xxx
• Record the unused collections
Cash – collecting officer 10101010 xxx
Cash in Bank – Local Currency Current Acct 10102020 xxx
• Record remittance of excess to the BTr through the AGDB
Accumulated Surplus/ (Deficit) 30101010 xxx
Cash-collecting officers 10101010 xxx

Cash from another agency to

implement its project

• Receipt of the check from the Source Agency

Cash – collecting officers 10101010 xxx
Due to NGAs (SA) 20201050 xxx
• Remittance of cash to the BTr
Cash-Treasury/Agency Deposit –Trust 10104010 xxx
Cash-Collecting officers 10101010 xxx

8
 01/10/2018

• Receipt of NCA from DBM

Cash-, MDS, Trust 10104060 xxx
Cash-Treasury/Agency Deposit –Trust 10104010 xxx
• Purchase of technical equipment
Technical & Scientific Equipment 10605140 xxx
Cash- MDS, Trust 10104060 xxx
Due to BIR 20201010 xxx
• Submission of liquidation report to the SA and remittance to BIR
Due to NGAs 20201050 xxx
Due to BIR 20201010 xxx
Technical and Scientific Equipment 10605140 xxx
Cash- MDS, Trust 10104060 xxx
• If there is still a balance of funds transferred
Due to NGAs 20201050 xxx
Cash- MDS, Trust 10104060 xxx

• To record remittance of withholding taxes thru TRA.

10104070 Cash-Tax Remittance Advice xxx
40301010 Subsidy from National Government xxx
20201010 Due to BIR xxx
10104070 Cash-Tax Remittance Advice xxx