ACT132

Gover
nmentAccount
ing(
Par
t2Lect
ure)

TheRev
isedChar
tofAccount
TheGov ernmentAuditi
ngCodeoft hePhili
ppi
nesprovidesthatt
her ecordingoffinanci
altransact
ionsand
oper at
ionsshallbeinconfor
mi t
ywiththeGAAP.I tal
sodirect
stheCOAt opr escr
ibeachar tofaccountsthat
willpermitasimplerandmoreor der
lyprocessofnati
onalconsi
der
ati
ont oenablethepublicoffi
cerstorev
iew
theiracti
vi
tiesaccor
dingtoselect
edareasofresponsi
bil
it
yandaccountabil
i
t y
.

TheChar
tofAccount
spr
ovi
desaf
ramewor
kwi
thi
nwhi
cht
heaccount
ingr
ecor
dsar
econst
ruct
ed.
TheUni fi
edAccount
sCodeSt r
uctur
eorUACSi sagov ernment-
wideharmonizedbudgetary,treasuryand
accounti
ngcodeclassi
fi
cat
ionf r
amewor kj
oint
lydevel
opedbyt heDepart
mentofBudgetandManagement
(DBM),theCommissi
ononAudi t(COA),
theDepart
mentofFinance(DOF)andtheBur eauoft
heTr easury(BTr
)
tofaci
li
tater
epor
ti
ngofallf
inanci
altr
ansact
ionsofagenci
esincl
udi
ngthoseforr
ev enuegener
ation.

Asacodi ngf
rameworkforfi
nanci
alt
ransact
ions,theUACSensur esthatallpr
ocesses,f
rom budgeti
ngand
cashmanagementtoaccount
ingandaudi
twillf
oll
owasi ngleclassi
fi
cati
onsy st
em orcommonl anguage.The
new codeswil
lmakei teasi
ertocoll
ect,aggregate,consol
idateandr eportfi
nancialt
ransact
ionsacross
gover
nment.

TheUACSi sthehear
toftheGov ernmentInt
egrat
edFinanci
alManagementInfor
mationSyst
em or
GI
FMISthatwi
llcol
l
ectandor
gani
zefi
nancialinf
ormat
ioninacentr
aldat
abasetosuppor
tbudgetpr
eparat
ion,
management
,executi
onandfi
nanci
alreporti
ngoraccounti
ngandauditinat i
mely,accur
ateandeffi
cient
manner.

Morepopul arl
yknownasFOLMO,t he5keyelementsoftheUACSwi t
hspecifi
ednumberofdi
git
sare
thefol
lowing: 
FundingSource(8),
 Organi
zati
on(12),
 
Locat
ion(9),
 MajorFi
nalOutput
/Pr
ogram,Acti
vi
tyand
Proj
ect(15),and 
Object(
10).Eachelementiscomposedofsegments.All
inal
l,
theUACShas54digi
ts.

Responsi
bil
i
tiesoft
heOv
ersi
ghtAgenci
esi
ntheAdopt
ionofUACS

 DBM –v
ali
dat
ionandassi
gnmentofnewcodesf
orf
undi
ngsour
ce,
organi
zat
ion,
sub-
obj
ectcodesf
or
expendi
tureit
ems
 COA–consi stencyofaccountclassi
fi
cat
ionandcodi
ngstruct
urewiththeRCA
 DOF-BTr–consi st
encyofaccountclassi
fi
cat
ionandcodi
ngstandardswith
 theGovernmentFinanceStati
sti
cs
 DBM andPr oponentAgency–v ali
dati
onandassi
gnmentofnewPr ogram,Act
ivi
ty,
Proj
ectcodes

All
headsofdepart
ment/agenciesandchief
soffinancial
andmanagementser
vicesshal
lensur
ethepr
oper
adopt
ionofal
laccount
’sclassi
ficat
ionandcodi
ngint heUACSmanual
.
Obj
ect
ives

1.Topr ovi
denewaccount sf
ortheadoptionof}thePhili
ppi
nePubli
cSectorAccounti
ngStandar
ds
(harmonizedwithIPSAS)
2.Topr ovideuniform account
sf ornati
onal}governmentaccounti
ngandbudgetsy st
emst o
facil
it
atethepreparat
ionofharmonizedfinanci
alandbudget
aryaccountabi
l
ityr
eports
3.Toexpandt heaccountcodef rom thr
ee( 3)digi
tsintheNGASChar tofAccountstoeight(8)
digit
s,toall
owexpansi onorcreati
onofnewaccount sasmaybenecessar ytoimplementnew
standardsorpol i
ciesandprovideupt of ourlevel
sofconsoli
dati
ondependingont heusers’
i
nf or
mat i
onneeds.

Maj
orChanges

1.Cover
ageisli
mitedonl
ytoallnati
onalgover
nmentagenci
esandGOCCsrecei
vi
ngf
undsconst
it
utedas
Speci
alAccount
sintheGeneralFund(SAGF)fr
om t
heNational
Gov
ernment

2. Expandedaccountcodest
ruct
ure-f
rom t
hree(
3)di
git
stoei
ght(
8)di
git
s
Codesar eassi
gnedtoaccountgroupstofaci
l
itatelocati
onofaccount
sinthegeneralandsubsi
diar
yledgers,
to provi
de systemati
c arr
angementand cl assif
icati
on ofaccounts and f
acil
i
t at
e prepar
ati
on oft he
consoli
datedfi
nanci
alrepor
tsasf
ollows:

Code AccountGroups
1 Assets
2 Liabi
li
ti
es
3 Equit
y
4 Income
5 Expenses

COARev
isedChar
tofAccount
s(AccountCodeSt
ruct
ure)

0 00 00 00 0

AccountGr
oup

Maj
orAccountGr
oup

Sub-
Maj
orAccountGr
oup

Gener
alLedgerAccount
s

Gener
alLedgerCont
ra-
Account

AccountGr
oups-r
epr
esent
stheaccountcl
assi
fi
cat
ionast
oAsset
s,Li
abi
l
iti
es,
Equi
ty,
IncomeandExpenses
Maj
orAccountGr
oup–r
epr
esent
scl
assi
fi
cat
ionwi
thi
ntheaccountgr
oup

 MajorAsset
s Account
s(Cash and Cash Equi
val
ent
,Inv
est
ment
s,Recei
vabl
es,I
nvent
ori
es,and
I
nvest
mentProper
ty)

 MajorLiabil
it
iesAccount
s(Fi
nanci
alLi
abi
l
iti
es,Int
er-
AgencyPayabl
es,I
ntr
a-AgencyPay
abl
es,Tr
ust
Li
abil
i
ties,Defer
red/
Unear
nedI
ncome,Pr
ovi
sion,andOtherPay
abl
es)

 MajorEquit
yAccount
s(Gov
ernmentEqui
ty,Rev
aluat
ionSur
plus,I
nter
medi
ateAccount
s,andEqui
tyi
n
Joi
ntVenture)

 Maj
orIncomeAccount(
TaxRev
enue,Serv
iceandBusinessI
ncome,Assi
stanceandSubsi
dy,Shar
es,
Gr
antsandDonat
ion,
Gai
ns,
andOtherNon-
Operat
ingI
ncome)

 MajorExpensesAccounts(Per
sonnelSer
vices,Mai
ntenanceandOt
herOper
ati
ngExpenses,Fi
nanci
al
Expenses,
DirectCostandNon-
CashExpenses)

Sub-
MajorAccountGroupr
epresent
sclassif
icat
ionwit
hint
hemaj oraccount
s(CashandCashEqui
val
ent
:
CashonHand,Cashi
nBank-
LocalCurr
ency,CashinBank-
For
eignCurr
encyetc.
)

GeneralLedgerAccountrepr
esent
stheaccounttobepresent
edinthedet
ail
edfi
nanci
alstat
ement
s( Cash-
Col
lecti
ngOfficer
,Pet
tyCashandetc.
).Thef
ir
sttwodigi
tfrom t
hel
efti
sthegener
all
edgercodeandthelast
di
giti
sfort
hecont
ra-
account
.

I
ntermedi
ateAccount
s–ar ecl
osedt
oGover
nmentEqui
tyaccountatt
heendoft
heaccount
ingper
iod.Thi
s
i
ncludesI
ncomeandExpenseSummary.

AssetWi
thoutCont
raAccount

Exampl
e:Cash-
Col
l
ect
ingOf
fi
cer
1 01 01 01 0

Asset
CashandCashEquival
ent
s
CashonHand
CashCol
lect
ingOff
icer
GLContr
a-Account

Asset
swi
thCont
raAccount

Exampl
e:Account
sRecei
vabl
e
1 03 01 01 1

Asset
Recei
vabl
e
LoansandRecei
v abl
eAccount
s
Account
sReceivable
All
owanceforI
mpai r
ment-AR

Account
ingf
orI
ncome,
Col
lect
ionsandRel
atedt
ransact
ion

Account
ingMet
hodsf
orI
ncome

1.Accr
ualMethods
2.CashBasi
s–usef oral
ltaxes,
fees,
char
gesandot
herr
evenuewher
eaccr
ual
met
hodi
simpr
act
ical
.

Accr
ualofRev
enuet
otheGener
alFund
Unless ot herwi
se speci
fi
cal
l
y pr ovi
ded by law,al lr evenue (i
ncome) accr ui
ng t ot he
depar
tment s,of
ficesandagenci
esbyv i
rt
ueoft heprovi
sionsofexi st
ingl
aws, ordersandregulat
ions
shal
lbedeposi t
edi ntheNTorinthedulyauthori
zeddeposi t
oryoft heGovernmentandshal laccrue
tothexxxGener alFundoft heGov er
nment :Prov
ided,thatamount sreceivedint r
ustandf rom
busi
ness-t
y peactivi
ti
esofgover
nmentmaybesepar at
elyrecordedanddisbursedi naccordancewith
suchrul
esandr egulat
ionsasmaybedet er
minedbyt hePer manentCommi t
tee.(Sec.44,ChapterV,
BookVI,E.O.No.292)

Speci
al,
Fiduci
aryandTr
ustFunds
Recei
ptsshallber
ecordedasr evenueofSpeci al,
Fiduciar
yorTr ustFunds( TF)orFundsother
thant
heGF, onlywhenauthor
izedbyl awandf oll
owingsuchr ul
esandr egul
ationsasmaybei ssued
bythePermanentCommi t
teeconsi st
ingoftheSecr etar
yofFi nanceasChai rman,andt heSecretar
y
oftheBudgetandt heChairman,Commi ssi
ononAudi t,asmember s.ThesameCommi tt
eeshal l
l
ikewi
semoni t
orandeval
uatet heacti
vit
iesandbalancesofal lFundsoftheNGot herthantheGFand
mayrecommendf ortheconsiderat
ionandappr ovalofthePr esi
dent,
ther ever
siont otheGFofsuch
amountsasare:
 1.No l ongernecessar yfort heat tai
nmentoft hepurposesf orwhi ch said Fundswer e
established;
2.Neededbyt heGFi nti
mesofemer gency;or
3.Violati
v e oft he rul
es and r egul
ations adopted bythe Commi tt
ee:pr ovided,thatthe
condi t
ionsor i
ginall
yagr eeduponatt heti
met hefundswerer ecei
vedshal lbeobser v
edin
caseofgi ft
sordonat ionsorot herpay mentsmadebypr i
vateparti
esforspeci f
icpurposes.
(Sec.45, Chapt erV,BookVI ,EO292)
Sour
cesofRev
enueandOt
herRecei
pts

1.Revenuefr
om ExchangeTransact
ions.Rev
enuesr
ecei
vedbyt
heNGAsf
rom exchanget
ransact
ions
ar
ederiv
edfrom t
hefol
lowi
ng:
1.
1Sal
eofgoodsorpr
ovi
sionsofser
vicest
othi
rdpar
ti
esort
oot
herNGAs.
Measur
ementandRecogni
ti
on
Revenue Rev
enueRecogni
ti
onPoi
nt
ServiceI ncome
Permi t Fees, Regi stration Fees, Whenser v i
cesar er ender edori fnotpr acticabl
e,when
Registration Pl at
es, Tags and f ees ar e col lect ed upon i ssuance of t he respect i
ve
Sti
cker s Fee, Cl ear ance and per mi ts, cer tificates of r egist rat
ion, pl ates, st i
ckers,
Certi
fication Fees, Fr anchi
sing clearance, cer ti
f i
cat ion, f
ranchi sesandl i
censes.
FeesandLi censingFees,
Super vi
sionandRegul at ion Whenser vicesar er enderedorwhent icket sorr el
evant
documentr epr esent ing v i
ol ation ar ei ssued ori fnot
practicable, whenf eesar ecol lect ed
Spect r
um UsageFees When bi l
l
s ar er ender ed f ort he use,al l
ocation and
assignmentofr adi of r
equencywav el engt hs ori fnot
practicable, whenf eesar ecol lect ed
I
nspect ionFees Whenbi l
lsar er ender edf ort heconductofi nspect i
onby
author i
zedgov er nmentof ficialori fnotpr act i
cable,when
feesar ecol lect ed
Legal Fees, Ver if
icat i
on and Whenf i
li
ngf eesar ebi l
ledori fnotpr acticable,whenf ees
Authent i
cation arecol lected
Passpor tandVi saFees Whenf eesar ebi l
leduponi ssuanceoft hepasspor tand
visaori fnotpr act icabl e,whenf eesar ecol l
ect ed
Processi ngFees Whenf eesar ebi lledorcol l
ect edf ort hepr ocessingof
document sf orsecur ingper mi ts/appl i
cati
ons.
OtherSer vi
ceIncome Whenf eesar ebi l
ledori fnotpr acti
cable,whenf eesar e
collected
Busi
nessI
ncome
School Fees, Af fi
l
iat
ion Fees, Whenf eesar ebi l
ledori fnotpr act
icable,whenf eesar e
Exami nati
on Fees, Semi nar/ collected
TrainingFees
Rent /Lease I
ncome, When f ees are bi ll
ed f orear ned r evenue fr
om use of
Communi cation Net work Fees, gov ernmentpr oper t
y/facil
iti
esori fnotpr acti
cable,when
Transpor tat i
onSy stem Fees,Road f eesar ecol lected
Networ kFees,Wat erworksSystem
Fees,PowerSuppl ySy stem Fees,
Seapor tSy stem Fees,Landi ngand
Parking Fees, I ncome f rom
Host els/ Dor mitories and Ot her
Li
keFaci lit
ies,Slaught er
house,and
OtherSer vi
ceI ncome
SalesRev enue Whent hesi gni f
icantr i
sksandr ewar dsofowner shiphav e
beent ransf erredt othebuy erasi ndicatedinthesal es
i
nv oice
Hospi talFees Whenf eesar ebi l
ledforhospi t
al andr el
atedservices
render ed, orifnotpr acticable,whenf eesarecollected
Shar ei nthePr ofitofJointVenture Vent ureWhenshar eint hepr ofi
tisear ned
OtherBusi nessI ncome Whenear nedori fnotpr acticable,whenf eesarecol lect
ed
 1.
2Usebyot
herent
it
yofasset
syi
eldi
ngi
nter
est
,roy
alt
iesanddi
vi
dendsorsi
mil
ardi
str
ibut
ions

2.
1Int
eresti
ncome–char
gesf
ort
heuseofcashorcashequi
val
ent
s,oramount
sduet
othe
ent
ity
;

Example:AssumethatonAugust5,2015,Ent
it
yArecei
veda60-
day,9%,P12,
000pr
omi ssor
y
not
ef rom X entit
yforaccount
ing manual
ssold.On Oct
ober4,2015,Ent
it
yX paid cash i
n
set
tlementofit
snote.

Date AccountTi
tl
e AccountCode Debit Cr
edi
t
Aug5 NotesRecei
v abl
e 10301020 P12,
000
SalesRevenue 40202160 P12,
000
Torecogni
zet hesal
e

Oct4 Cash-Collecti
ngOf f
icers 10101010 12,
180
NotesRecei vabl
e 10301020 12,
000
I
nterestIncome 40202210 180
Tor ecognizet hecol l
ecti
onofnot
es
recei
vable
I
nter
est=P12,
000x9% x60/
360=
P180

2.2Roy
alt
ies–feespai
dfort
heuseofent
it
y’sasset
ssuchast
rademar
ks,pat
ent
s,sof
twar
e,
and copyri
ght
s;

2.
3Di vi
dends– shar
eoftheNationalGover
nmentf
rom theearni
ngsofitscapit
al/
equi
ty
i
nvest
mentsinGover
nment
-OwnedorContr
oll
edCor
por
ati
ons(GOCCs)andot
herenti
ti
es
Exampl
e.Ent
it
yAi
saut
hor
izedt
opr
intaccount
ingmanual
sforsal
etoot
herNGAs.Assumet
hatonJul
y16,
2014,Ent
it
yAsol
daccount
ingmanual
sonaccountwi
thal
i
stpr
iceofP100,
000l
esst
radedi
scount
sof10%,
10%and5%.
Requi
red:
Comput
efort
hei
nvoi
cepr
iceoft
hemer
chandi
seandj
our
nal
i
zet
het
ransact
ion.

AccountTi
tl
e Account Debi
t Cr edit
Code
AccountsReceivabl
e 10301010 P76,
950
SalesRev enue 40202160 P76,
950
To recognize the sale of t
he account
ing
manuals
Li
stPrice P100,
000
Less:TradeDiscount(
P100,000x10%) 10,
000
P90,
000
Less:
TradeDi
scount(
P90,
000x10%) 9,
000
P81,
000
Less:Tr
adeDiscount(
P81,
000x5%) 4,
050
I
nvoicePri
ce P76,
950
2.Revenuef
rom Non-
ExchangeTr
ansact
ions
RevenueoftheNGAsf rom non-
exchanget
ransacti
onsarederi
vedmost lyfrom t
axes,gi
ftsand
donati
ons,goodsinki
ndandf i
nesandpenalt
ies.MostNGAsder i
verevenuesfrom tr
ansacti
ons
wheretheyrecei
veresour
cesandpr ovi
denoornomi nalconsi
derat
iondirectl
yinret
urn.These
areasfol
lows:
a.TaxRevenue
1.TaxRev
enue-I
ndivi
dualandCor
porat
ion
2.TaxRevenue-
Propert
y
3.TaxRev
enue-GoodsandServi
ces
 4.TaxRev
enue-
Other
s
b.Fi
nesandPenal
ties
1.TaxRevenue
2.Serv
iceI
ncome
3.Busi
nessIncome

c.Shar
es,GrantsandDonat ions
1.Sharefrom National Wealt
h
2.Sharefrom Philippi
neAmusementandGami
ngCor
por
ati
on(
PAGCOR)
/Phi
l
ippi
ne
Chari
tySweepst akesOf f
ice(PCSO)
3.Shar
ef r
om EarningsofGOCCs
4.I
ncomef rom GrantsandDonat ionsi
nCash
5.I
ncomef rom GrantsandDonat ionsi
nKi
nd
d.Rev enuefrom non- exchanget r
ansact i
onsmayal soar isewhen,inrespectofani nflow of
resources f
rom a non- exchange t r
ansacti
on,the entit
ysati
sfiesa pr esentobli
gati
on
recognizedasal i
abili
tywhichmaybeasf oll
ows:
1.TrustLi abil
i
ties– Cust omer s’DepositsPay ableand Guarant
y /
Secur i
tyDeposits
Pay
abl
e
2.Defer
redCr edits–DeferredFinanceLeaseRev enueandOt herDefer
redCr edi
ts
3.UnearnedRev enue–I nvestmentPr oper
tyandOt herUnear
nedRev enue

Recogni
ti
onofRev
enuef
rom Non-
ExchangeTr
ansact
ions

1.Thecashbasi sofaccount i
ngshallbeappliedbyallgovernmentagenci esi
nther ecogni
tionof
revenuefrom non-
exchangetransact
ionunti
lar el
i
ablemodelofmeasur ementofthisrevenueis
developed.Theref
ore,assetand the corr
esponding r
evenue orliabi
l
itythatar
isesf rom non-
exchanget r
ansact
ionshal
lberecognizedwhencoll
ectedorwhent hesearemeasurableandlegal
ly
coll
ecti
ble.

a.Taxationrevenueshallbedet er
minedatagrossamount .Itshallnotber educedforexpenses
paidthroughthet axsy
stem.
b.Gift
sanddonat ions,ot
hert hanservi
cesinki
ndshallberecognizedasasset sandrevenuewhen
iti
spr obabl
et hatthefutureeconomi cbenefi
tsorservi
cepot entialwil
lfl
ow totheentit
yand
shallbemeasur edatfai
rv alue.
c. Goodsin-ki
ndr ecei
vedwithoutconditi
onsshal
lberecognizedasr evenueimmediatel
y.
d.Donat i
onincashori nki
ndshal l
berecogni
zedasrevenue.

2.Revenuef r
om non-
exchangetransactionsshallbemeasuredatt heamountoft heincr
easeinnet
assetsrecogni
zedbytheentit
y,unlessitisalsorequi
redtorecognizealiabi
li
ty.Wherealiabi
li
tyis
recogni
zedandsubsequentlyr
educed, becausethetaxabl
eev entoccurs,
oracondi t
ionissati
sfi
ed,
theamountoft hereduct
ionintheliabil
it
ywillberecogni
zedasr evenue.(Pars.48and49,PPSAS
23)

3.MeasurementofAsset s on I ni
ti
alRecognit
ion from Non-
Exchange Tr
ansacti
ons.An asset
acqui
redthroughanon-exchangetransact
ionshal
linit
ial
l
ybemeasuredatitsfai
rval
ueasatt he
dateofacquisi
ti
on.(
Par
.42, PPSAS33)

4.MeasurementofLiabi
li
ti
esonIni
ti
alRecogni
ti
on.Wher
ethetimevalueofmoneyismater
ial
,the
l
iabi
li
tywillbemeasur
edatthepr
esentval
ueoftheamountexpect
edtoberequi
redtoset
tlethe
obli
gati
on.(Par
.58,
PPSAS23)

5.TaxRev enue.Taxesar eeconomi cbenefi

tsorser v
icepotentialcompul
sorypai
dorpayableto
publi
csect oragenci
es,inaccordancewithlawsandorr egul
ations,est
abl
i
shedtoprovi
der
evenue
tothegov ernment.Taxesdonoti ncl
udefinesorotherpenal
tiesimposedforbr
eachesoft
helaw.
Unlessotherwisespecif
iedi
nlawsandr egulat
ions,
thetaxabl
eev entfor
:

a.Incometaxistheearni
ngofassessableincomeduri
ngthetaxat
ionperi
odbythetaxpayer
;
b.Valueaddedtaxistheunder
taki
ngoft axabl
eact
ivi
tyduri
ngthetaxat
ionper
iodbythetaxpay
er;
c. Goodsandser v
icestaxist hepurchaseorsaleoft axabl
egoodsandser vi
cesdur i
ngthe
 taxat
ionperiod;
d.Cust omsdut yi sthemov ementofduti
ablegoodsorservi
cesacrossthecustomsboundar
y;
e. Deathdutyist hedeathofaper sonowningtaxabl
eproper
ty;and
f. Propert
ytaxi st hepassi
ngofthedateonwhi chthetaxislevi
ed,ort
heperiodforwhi
chthetax
i
sl ev
ied,i
fthet axislevi
edonaper i
odi
cbasi s
ExchangesofGoodsorSer
vicesf
orSi
mil
ar/
Dissi
mil
arGoodorSer
vices
Whengoodsorser vi
cesareexchangedorswappedf orgoodsorser viceswhi char
eofasi milarnat
ure
andv alue,theexchangei snotregardedasat ransacti
onwhi chgenerat
esr evenue.Howev er,whengoodsar e
soldorser vi
cesar erenderedinexchangef ordissimil
argoodsorser v i
ces,t heexchangei sregar
dedasa
transact i
onwhi chgeneratesrevenue.Ther ev
enuei smeasuredatt hef airv al
ueoft hegoodsorser vi
ces
received, adjustedbytheamountofanycashorcashequi val
entstr
ansferr
ed.Whent hefairv
alueofthegoods
orser vicesr eceivedcannotbemeasur edrel
i
ably,therevenueismeasur edatt hefairval
ueoft hegoodsgiven
up, adjustedbyt heamountofanycashorcashequi val
entstr
ansfer
red.(Par.17, PPSAS9)

Gener
alPr
ocedur
eforCashCol
lect

A.Domest
icSour
ces

 TheNGAcol
l
ect
sther
evenueoft
hegov
ernmentf
rom what
eversour
ce;

 TheNGAr
emi
tst
hecol
l
ect
ionst
otheBTrt
hruAut
hor
izedGov
ernmentDeposi
tor
yBank;

 TheAGDBadv
isest
heBTr
;

 TheBTrr
ecor
dst
hecol
l
ect
ionsi
nit
sbooks;
and

 TheBTrr
epl
eni
shest
heMDSaccount
(s)wi
tht
hebankf
orchecknegot
iat
ed.

B.For
eignSour
ces

 Forei
gnFundi
ngInst
it
uti
onr
emi
tst
heamounti
nfor
eigncur
rencyt
otheBangkoSent
ralng
Pil
i
pinas(
BSP);

 TheBSPadv
icest
heBTroft
her
ecei
ptoft
hef
orei
gncur
rencyr
emi
tt
ances;

 TheBTrr
ecor
dst
her
ecei
pti
nit
sbooki
npesov
alueequi
val
ent
;

 Uponr
ecei
ptoft
heNCAf
rom DBM,
theBTradv
icest
hebankt
otr
ansf
ercasht
otheagency
;and

 Thegov
ernmentagencyr
ecor
dsNCAi
nit
sbook.

Recei
ptandCol
lect
ionPr
ocess

Process Per
son/ Uni
tResponsi
ble
1.Recei vedpaymentf r
om cr
edit
orsandi ssue Col
lect
ingOffi
cer/
Cashi
erUni
t
OR
2.Recor dcol l
ecti
oni nCashReceiptRecor d Col
l
ect
ingOf
fi
cer
/Cashi
erUni
t
(CRR)
3.Deposi tcoll
ect
ions Col
l
ect
ingOf
fi
cer
/Cashi
erOff
ice
4.Recor ddepositinCRR Col
l
ect
ingOf
fi
cer
/Cashi
erUnit
5.Pr eparet he Report of Col
lect
ion and Col
l
ect
ingOf
fi
cer
/Cashi
erUni
t
Deposi t( RCD).Forwardto Account
ing Unit
withcopi esofOrsandv al
i
datedDepositSli
ps
6.Pr epar eJEV,r ecor
dintheCashRecei pt Account
ingUni
t
Journal (
CRJ)

Ty
pesofCol
lect
ionast
oAut
hor
it
y
 1.Wi
thoutAuthori
tytoUse: Asagener alrul
e,alli
ncomer egar
dlessofamountandf requencyof
col
lecti
onaretober emi
tt
edt otheNat i
onalTreasury
.Suchi ncomeshal lberecordedbyt he
col
lecti
ngagencyi naseparatebookofaccounti tshal
lmaint
ain,theNationalGover
nment( NG)
books.Thencollecti
onshallbecredit
edt otheincomeoft hecollect
ingagency,whichshallbe
debit
eduponremi t
tancetot
heNationalTr
easury
.

BooksofBI
R(Nat
ionalGov
ernmentBook)

AccountTitl
e AccountCode Debit Cr
edi
t
Cash–Collect
ingOffice 1-
01-01-
010 xxxxx
IncomeTax 4-
01-01-
010 xxxxx
Torecordi
ncomet axcollect
ion

I
ncomeTax 4-
01-
01-
010 xxxxx
Cash-Coll
ecti
ngOff
icer 1-
01-
01-
010 xxxxx
Torecor
dremit
tancewi
thBTr

Booksoft
heBTr

AccountTi
tl
e AccountCode Debit Cr
edi
t
CashinBank–LCSav i
ngsAccount 1-
01-02-
030 xxxxx
IncomeTax 4-
01-01-
010 xxxxx
Torecordi
ncometaxcoll
ect
ion

I
ll
ust
rati
on:Int
hey ear2020,t
heBureauofInt
ernalRevenuecol
lect
edatotalamountofP1Bwhi
ch
wasaccordi
ngl
yremitt
edtotheBur
eauofTreasury.Jour
nali
zet
heabovet
ransacti
on.

Bur
eauofI
nter
nal
Rev
enue(
Nat
ional
Gov
ernmentBook)

AccountTitl
e AccountCode Debi
t Cr
edi
t
Cash–Collect
ingOffice 1-
01-01-
010 P1B
IncomeTax 4-
01-01-
010 P1B
Torecordi
ncomet axcollect
ion

I
ncomeTax 4-
01-
01-
010 P1B
Cash-Coll
ecti
ngOff
icer 1-
01-
01-
010 P1B
Torecor
dremit
tancewi
thBTr

Booksoft
heBTr

AccountTi
tl
e AccountCode Debi
t Cr
edi
t
CashinBank–LCSav i
ngsAccount 1-
01-02-
030 P1B
IncomeTax 4-
01-01-
010 P1B
Torecordi
ncometaxcoll
ect
ion

2.Wi
thAut
hor
it
ytoUse: Foragenci
eswhi
char
eaut
hor
izedt
ousei
ncomef
ort
hei
roper
ati
ons,t
he
 col
lecti
onsshal
lberecordedasincomei ntheRegularAgency(RA)booksTheaut
hori
tymaybein
theform ofthespecialprov
isi
onoft heGAA,speci f
icauthor
it
yfrom thePer
manentCommit
tee
pursuantt
otherequi
rementofthegeneralpr
ovi
sionoraspeciall
aw.

Agency
’sRegul
arBooksf
orI
tsCashCol
lect
ions

AccountTi
tl
e AccountCode Debit Cr
edi
t
Account
sRecei
vable 1-
03-01-
010 xxxxx
Rent/
LeaseI
ncome 4-
02-02-
050 xxxxx
Torecor
drenti
ncome

Cash–Collecti
ngOffi
cer 1-
01-
01-
010 xxxxx
Account
sRecei v
able 1-
03-
01-
010 xxxxx
Torecor
dcollect
ionofaccount
s

CashinBank–Local
CurrencyCurr
entAccount 1-
01-
02-
020 xxxxx
Cash–Coll
ect
ingOff
icer 1-
01-
01-
010 xxxxx
Torecor
ddeposi
toft
hecollect
ion

El
ectr
ici
tyExpenses 5-
02-
04-
020 xxxxx
Cash in Bank – LocalCur rency Curr
ent 1-
01-
02-
020 xxxxx
Account
To record di
sbursement char
geable agai
nst
i
ncomecol l
ected

Il
lust
rat
ion:MSU,Marawi,
astateuni
ver
sit
yandcoll
egesofthecountr
yissuedabillf
ortherentofthe
DimaporoGy mnasi
um int heamountP25,000.Sever
aldaysaf t
er,thelesseepaidt her entand
subsequentl
ypai
dP12,000forsomeminorrepai
rofanequi
pment.Journal
izetheabovetransacti
on.

Agency
’sRegul
arBooksf
orI
tsCashCol
lect
ions

AccountTi
tl
e AccountCode Debi
t Cr
edi
t
Account
sRecei
vable 1-
03-01-
010 P25,
000
Rent/
LeaseI
ncome 4-
02-02-
050 P25,
000
Torecor
drenti
ncome

Cash–Collecti
ngOffi
cer 1-
01-
01-
010 P25,
000
Account
sRecei v
able 1-
03-
01-
010 P25,
000
Torecor
dcollect
ionofaccount
s

CashinBank–Local
CurrencyCurr
entAccount 1-
01-
02-
020 P25,
000
Cash–Coll
ect
ingOff
icer 1-
01-
01-
010 P25,
000
Torecor
ddeposi
toft
hecollect
ion

Repai
randMai nt
enanceExpenses 5-
02-
04-
020 P12,
000
Cash in Bank – LocalCur rency Curr
ent 1-
01-
02-
020 P12,
000
Account
To recor
d disbursement char
geable agai
nst
i
ncomecollect
ed

3.Authorit
ywithLi
mitati
ons:I ft
heauthori
tyi
ssubj
ecttothelimit
ati
ont hatanyexcessshal
lberemit
ted
totheNat i
onalTreasur
y,suchascol l
ecti
onforseminarandconv entionfees,thecol
l
ecti
onshallbe
recordedintheRAbooks.Theexpenseshal lbej
ournali
zed,thebalance/excesstoberemit
tedtothe
NationalTr
easur
yshallbetransf
err
edtotheNG.
 Agency
’sRegul
arBooks

AccountTi
tl
e AccountCode Debit Cr
edi
t
Cash–Collecti
ngOfficer 1-
01-01-
010 xxxxx
Seminar
/Traini
ngFees 4-
02-02-
150 xxxxx
Torecor
dcollecti
onofincome

CashinBank-LCCA 1-
01-
02-
020 xxxxx
Cash–Collect
ingOff
ice 1-
01-
01-
010 Xxxxx
Torecor
ddepositofcol
l
ecti
on

WaterExpenses 5-
02-
04-
010 xxxxx
Tel
ephoneExpenses 5-
02-
05-
020 xxxxx
PostageandCourierExpenses 5-
05-
05-
010 xxxxx
CashinBank–LCCA 1-
01-
02-
020 xxxxx
Torecordexpenseschargeagainstcol
l
ect
ion

I
ncomef rom Pr
int
ing&Publ icat
ions 4-
02-
02-
150 xxxxx
WaterExpenses 5-
02-
04-
010 xxxxx
Tel
ephoneExpenses 5-
02-
05-
020 xxxxx
PostageandCourierExpenses 5-
05-
05-
010 xxxxx
CashinBank–LCCA( Unexpended) 1-
01-
02-
020 xxxxx
To cl
ose the i
ncome f ort he tr
ansf
ert
o NG
books

Agency
’sNat
ionalGov
ernmentBooks

AccountTit
le AccountCode Debit Cr
edi
t
CashinBank-LCCA( Unexpended) 1-
01-02-
020 xxxxx
Incomefrom Pri
nti
ng&Publ icat
ions 4-
02-02-
150 xxxxx
To recordtransf
erofunexpended col l
ect
ion
fr
om regul
arbooktonationalagencybook

Incomefrom Pr
inti
ng&Publicat
ions 4-
02-
02-
150
CashinBank-LCCA( Unexpended) 1-
01-
02-
020
Torecor
dr emit
tancet
oBTroft heunexpended
i
ncome

BTrBooks

AccountTit
le AccountCode Debit Cr
edi
t
CashinBank-LCCA( Unexpended) 1-
01-02-
020 xxxxx
Incomefrom Pri
nti
ng&Publ icat
ions 4-
02-02-
150 xxxxx
To recordtransf
erofunexpended col l
ect
ion
fr
om regul
arbooktonationalagencybook

Il
lustr
ation:TheCommi ssiononAuditconduct
edasemi naraboutt heNewGov er
nmentAccounting
System.Theagencycol lectedatot
alamountofP100,000whi chwasdeposi tedwi thagency
depositorybankandpaidt hefol
l
owingexpensesofthesemi nar:Offi
ceSuppliesP25,000;rentf
orthe
venue,P15, 000andPri
ntingandbindi
ngP5,000,Theexcessoft heamountcol lectedwas
appropriatelyr
emit
tedtot heNat
ionalTr
easury
.Journal
izethest at
edtransactions.
 Agency
’sRegul
arBooks

AccountTi
tl
e AccountCode Debi
t Cr
edi
t
Cash–Collecti
ngOfficer 1-
01-01-
010 P100,
000
Seminar
/Traini
ngFees 4-
02-02-
150 P100,
000
Torecor
dcollecti
onofincome

CashinBank-LCCA 1-
01-
02-
020 100,
000
Cash–Collect
ingOff
ice 1-
01-
01-
010 100,
000
Torecor
ddepositofcol
l
ecti
on

Off
iceSuppli
esExpenses 5-
02-
99-
050 P25,
000
RentExpenses 4-
02-
02-
050 15,
000
Pri
nti
ngandPubl i
cat
ionExpense 5-
02-
99-
020 5,
000
CashinBank–LCCA 1-
01-
02-
020 45,
000
Torecordexpenseschar
geagainstcol
l
ect
ion

Seminar/
Traini
ngFee 4-
02-
02-
040 100,
000
Off
iceSuppli
esExpenses 5-
02-
99-
050 25,
000
RentExpenses 4-
02-
02-
050 15,
000
Pri
nti
ngandPubl icat
ionExpense 5-
02-
99-
020 5,
000
CashinBank–LCCA 1-
01-
02-
020 55,
000
To close t
he income fort he t
ransf
ert
o NG
books

Agency
’sNat
ionalGov
ernmentBooks

AccountTitl
e AccountCode Debi
t Cr
edi
t
CashinBank-LCCA( Unexpended) 1-
01-02-
020 P55,
000
Seminar/
Tr ai
ningFees 4-
02-02-
150 P55,
000
To recordtransferofunexpended coll
ect
ion
fr
om regul
arbookt onati
onalagencybook

Seminar
/Tr
aini
ngFees 4-
02-
02-
150 55,
000
CashinBank-LCCA( Unexpended) 1-
01-
02-
020 55,
000
Torecor
dremittancet
oBTroft heunexpended
i
ncome

BTrBooks

AccountTitl
e AccountCode Debi
t Cr
edi
t
CashinBank-LCCA( Unexpended) 1-
01-02-
020 P55,
000
Seminar/
Tr ai
ningFees 4-
02-02-
150 P55,
000
To recordtransferofunexpended coll
ect
ion
fr
om regul
arbookt onati
onalagencybook
2.Income f r
om Sal e ofEquipment: Pr oceedsf rom sal e ofnon- ser
viceable,obsol et
e and other
unnecessaryequipmentincludi
ngcars,v
ansandt helikemaybedeemedaut omat ical
lyappropr
iated
fort hepurchaseofnew onesandf orther epai
rofr ehabi
lit
ati
onofexi st
ingv i
talequipment.Itis
under st
oodthatthepurchaseofcarsandv ansissubjectt othepriorauthori
tyr equiredunderexi
sting
rules.

Agency
’sNat
ionalGov
ernmentBooks

AccountTi
tl
e AccountCode Debit Cr
edi
t
Cash–Col
l
ect
ingOfficer 1-
01-01-
010 xxxxx
 Accumulat
edDepreci
at i
on–Offi
ceEqui
pment 1-
06-
05-
021 xxxxx
Offi
ceEquipment(cost) 1-
06-
05-
020 xxxxx
GainonSaleofPPE 4-
05-
01-
040 xxxxx
Torecordsal
eofoffi
ceequipment

Gai
nonSal eofPPE 4-
05-
01-
040 xxxxx
GovernmentEquit
y 3-
01-
01-
010 xxxxx
Cash–Col l
ecti
ngOffi
cer 1-
01-
01-
010 xxxxx
Torecordremi
ttanceofcol
l
ect
iont
oBTr

BooksofBTr

AccountTi
tl
e AccountCode Debit Cr
edi
t
Cashi
nBank–LCSA 1-
01-02-
020 xxxxx
Gai
nonSaleofPPE 4-
05-01-
040 xxxxx
Gover
nmentEqui
ty 3-
01-01-
010 xxxxx

I
ll
ust
rat
ion:DPWHsol
danon-
ser
viceabl
ecarwi
tht
hef
oll
owi
ngi
nfor
mat
ion:

Cost P2,
000,
000
Accumul
atedDepr
eci
ati
on 1,
700,
000
Sal
esPri
ce P400,
000

DPWHwant st
opur
chaseanewcari ntheamountofP1,
500,
000andr
ecei
vedaSARO
f
ort
hepur
pose.Jour
nal
i
zet
hest
atedtr
ansact
ions.

Agency
’sNat
ionalGov
ernmentBooks

AccountTitl
e AccountCode Debi
t Cr
edi
t
Cash–Collecti
ngOf f
icer 1-
01-01-
010 P400,
000
Accumulat
edDepr eci
ation–MotorVehi
cle 1-
06-05-
021 1,
700,
000
MotorVehicl
e 1-
06-05-
020 2,
000,
000
GainonSaleofPPE 4-
05-01-
040 100,
000
Torecor
dsaleofof fi
ceequipment

Gai
nonSal eofPPE 4-
05-
01-
040 100,
000
GovernmentEquit
y 3-
01-
01-
010 300,
000
Cash–Col l
ecti
ngOffi
cer 1-
01-
01-
010 400,
000
Torecordremi
ttanceofcol
l
ect
iont
oBTr

BooksofBTr

AccountTi
tl
e AccountCode Debi
t Cr
edi
t
Cashi
nBank–LCSA 1-
01-02-
020 P400,
000
Gai
nonSaleofPPE 4-
05-01-
040 100,
000
Gover
nmentEqui
ty 3-
01-01-
010 300,
000
 Regi
str
yoft
heDPWHBudgetOf
fi
ce

Depar
tmentofPubl
i
cWor
ksandHghway
s

Regi
str
yofAl
l
otment
,Obl
i
gat
ionandDi
sbur
sement
-Capi
tal
Out
lay

Dat
e Ref PPA Account Al
lot
ment Obli
gati
on Bal
ance
Code Recei
ved I
ncurr
ed
1-
06-06-
010 P1,
500,
000 P1,
500,
000

Tor
ecor
dtheSARORecei
ved

Depar
tmentofPubl
i
cWor
ksandHghway
s

Regi
str
yofAl
l
otment
,Obl
i
gat
ionandDi
sbur
sement
-Capi
tal
Out
lay

Dat
e Ref PPA Account Al
lot
ment Obl i
gation Bal
ance
Code Recei
ved I
ncurred
1-
06-06-
010 P1,
500,
000
P1,500,000 -

Tor
ecor
dtheobl
i
gat
ion

Regul
arAgencyBook

AccountTi
tl
e Account Debi
t Cr
edi
t
Code
Cash-
Nati
onal
Treasur
y-Modi
fi
edDi
sbur
sement 1-
01-04-
040 P1,
400,
000
Scheme
Subsi
dyfr
om Nati
onalGov
ernment 4-
03-
01-
010 P1,
400,
000
Tor
ecordt
herecei
ptofNCAnetofTRA

MotorVehi
cle 1-
06-
06-
010 1,
500,
000
Account
sPayable 2-
01-
01-
010 1,
500,
000
Torecor
dthepurchaseofmot
orv
ehi
cle

Account
sPayable 2-
01-
01-
010 1,
500,
000
DuetoBI
R 2-
02-
01-
010 100,
000
Cash-
NT-MDS 1-
01-
04-
040 1,
400,
000
Torecor
dfullpaymentofobl
i
gat
ion

DuetoBIR 2-
02-
01-
010 100,
000
Subsi
dyfr
om Nat
ional
Gov
ernment 4-
03-
01-
010 100,
000

3.GrantsandDonat ionsIntendedforAgencyUses: I
ftherei
snospeci f
icaut
hori
tyfortheiruse,grants
anddonat i
onsf r
om what eversour
ceshallal
soberecordedintheNGbooksandshal lber emit
tedt o
theNationalTreasury.Thisagencyshal
lprepar
easpecialbudgetfortheuseofthei ncomer emitted
butitisintendedf ortheagency’susesuchasdonat i
onsandgr ant
s.Uponapprov aloft hespeci al
 budget
,TheDBM wi l
li
ssuetheSAROandt heNCA.Thefor
meri stheagency
’sadditi
onalal
lot
mentand
shal
lberecordedint
heappropr
iat
er egi
str
y.TheSAROistheagency’
saddit
ionalsubsi
dyincomefr
om
thenat
ionalgover
nmentandisj
ournali
zedinit
sRAbooks.

Agency
’sNat
ionalGov
ernmentBooks

AccountTi
tl
e AccountCode Debit Cr
edi
t
Cash–Collect
ingOf f
icer 1-01-
01-
010 xxxxx
Incomefrom GrantsandDonat
ioni
nCash 4-04-
02-
020 xxxxx
Torecordt
hereceiptofdonat
ion&grant
s

I
ncomef r
om GrantsandDonat
ioni
nCash 4-
04-
02-
020 xxxxx
Cash–Collecti
ngOffi
cer 1-
01-
01-
010 xxxxx
Torecor
dremittancet
oBTr

BooksofBTr

AccountTi
tl
e AccountCode Debit Cr
edi
t
CashinBank-LCCA 1-01-
02-
020 xxxxx
Incomefr
om Grant
sandDonat
ioni
nCash 4-04-
02-
020 xxxxx

Il
lust
rat
ion:TheDepar tmentofSoci alWelfareandDev el
opmentrecei
vedagrantintheamountofP100,000
andr emi t
tedthesamet ot heNat ionalTreasur
yt hr
ought hebank.Event
ual
ly,theagencyprepar
edand
submitt
edaspeci albudgetforthetraini
ngandsemi narofit
semployeest
oDBM.Uponappr ovaloft
hespecial
budgetf orDSWD,DBM r eleaset heSAROofP100, 000andNot i
ceofCashAl l
ocati
onofthesameamount .
Journal
izet hest
atedtr
ansactions/

Agency
’sNat
ionalGov
ernmentBooks

AccountTi
tl
e AccountCode Debi
t Cr
edi
t
Cash–Collect
ingOf f
icer 1-01-
01-
010 P100,
000
Incomefrom GrantsandDonat
ioni
nCash 4-04-
02-
020 P100,
000
Torecordt
hereceiptofdonat
ion&grant
s

I
ncomef r
om GrantsandDonat
ioni
nCash 4-
04-
02-
020 100,
000
Cash–Collecti
ngOffi
cer 1-
01-
01-
010 100,
000
Torecor
dremittancet
oBTr

BooksofBTr

AccountTi
tl
e AccountCode Debi
t Cr
edi
t
CashinBank-LCCA 1-01-
02-
020 P100,
000
Incomefr
om Grant
sandDonat
ioni
nCash 4-04-
02-
020 P100,
000

Regi
str
yoft
heDSWDBudgetOf
fi
ce
 Depar
tmentofSoci
alWel
far
eandDev
elopment

Regi
str
yofAl
l
otment
,Obl
i
gat
ionandDi
sbur
sement
-MOOE

Dat
e Ref PPA Account Al
lot
ment Obli
gati
on Bal
ance
Code Recei
ved I
ncurr
ed
5-
02-02-
010 P100,
000 P100,
000

Tor
ecor
dtheSARORecei
ved

Depar
tmentofSoci
alWel
far
eandDev
eopment

Regi
str
yofAl
l
otment
,Obl
i
gat
ionandDi
sbur
sement
-MOOE

Dat
e Ref PPA Account Al
lot
ment Obli
gati
on Bal
ance
Code Recei
ved I
ncurr
ed
1-
06-06-
010 P100,
000
P100,000 -

Tor
ecor
dtheobl
i
gat
ion

Regul
arAgencyBook

AccountTi
tl
e Account Debi
t Cr
edi
t
Code
Cash-
Nati
onal
Treasur
y-Modi
fi
edDi
sbur
sement 1-
01-04-
040 P100,
000
Scheme
Subsi
dyfr
om Nati
onalGov
ernment 4-
03-
01-
010 P100,
000
Tor
ecordt
herecei
ptofNCA

4.Mi
scel
laneousRecei
ptsandCol
lect
ions

6.
1Account
ingf
orLossofCashandPr
oper
ty

Accounti
ng f
orLoss ofCash and
Proper
ty
Ent
ry
 Cash Shor tage is discovered Due f rom Of fi
cer
s and 1- 03-05- xxxx
duringCashExami natonand Empl
i oyees 020
i
sr eport
edt hruRepor tofCash xxxx
Examinat i
on. If shor t
age i s Cash-Col
l
ect
ingOff
icer 1-
01-01-
establ
ished,t he audi tor wil
l 010
i
ssueamemor andum andt he
accountant wi ll prepare an
entryi
nt heJEV
  Set
tl
ementofCashShor
tage Cash-
Col
l
ect
ingOf
fi
cer 1-01-
01- xxxx
010
Due from Of
fi
cer
s and xxxx
Employ
ees 1-03-
05-
020
 LossofPr
oper
tyi
sest shed Due
abl
i f
rom Of
fi
cer
s and 1-03-
05- xxxx
Empl
oyees 020
xxxx
Accumul
atedDepr
eci
ati
on-
Prop 1-
06-
02-
xxxx
Proper
ty 1-
06-
 LossofPr opert
yduet ot hef, NoEnt
t ry
forcemaj eure,fi
re&t hel i
ke.
Theaccount abl
eof f
icershall
prepare a r eport for t he
purposeofr equesti
ngr el
i
efof
authori
ty.
Gr
antofRel
i
efofAccount
abi
li
tyi
s LossofAsset 5-05-
04- xxxx
Gr
ant
ed 090
Due from Of
fi
cer
s and xxxx
Employ
ees 1-03-
05-
020
GrantofRel
i
efofAccount
abi
li
tyi
s Cash-
Col
l
ect
ingOf
fi
cer 1-01-
01- xxxx
Denied 010
Due from Of
fi
cer
s and xxxx
Employ
ees 1-03-
05-
020
AccountingForCashOv er
age
 Cash Ov er
age shal l be Cash-
Collect
ingOffi
cer 1-01-
01- xxxx
forf
eit
ed in f avor of the 010
governmentand an OR shal
l Ot herServi
ceIncome xxxx
beissuedbytheCashi
er 4-02-
01-
990
St
aleMDSandCommercialChecks
 Checksi
ssuedi
nthepr evous Gov
i ernmentEqui
ty 3-01-
01- xxxx
year 010
Account
sPay
able xxxx
2-01-
01-
010
 Recor
dther
ecei
ptofNCA Cash-
MDS-
Regul
ar 1-01-
04-
040
Subsi
dy f
rom Nat
ional
Gov
t 4-
03-
01-
010
 I
ssuanceofnewCheck Account
sPay
abl
e 2-01-
01- xxxx
010
Cash-
MDS-
Regul
ar xxxx
1-01-
04-
040
 Cancel
lat
ion of cur
r ear Cash-
ent y MDS- Regul
ar 1-01-
01- xxxx
st
alecheck 010
AccountsPayabl
e xxxx
2-01-
01-
010
 NCAwil
lberequest pt Cash-
ed.Recei MDS-Regular 1-01-
01- xxxx
ofNCAr
equested 010
Subsi
dy f rom Nat
ional xxxx
 Gov
t 4-03-
01-
010
 I
ssuanceofnewCheck Account
sPay
abl
e 2-01-
01- xxxx
010
Cash-
MDS-
Regul
ar xxxx
1-01-
04-
040
CashSett
lementofDisal
lowance
 If disal
lowance was not Cash-
Coll
ect
ingOf
fi
cer 1-01-
01- xxxx
recor
ded(Recordsett
lement
) 010
Gover
nmentEqui
ty xxxx
3-01-
01-
010
 I
fdisal
lowancei
srecor as Cash-
ded( Col
l
ect
ingOf
fi
cer 1-01-
01- xxxx
Accountsr
ecei
vabl
e) 010
Recei
vabl
es xxxx
Di
sall
owances/Char
ges 1-03-
05-
010
 Cur
rentYearOv
erst
atement Cash-
Col
l
ect
ingOf
fi
cer 1-01-
01- xxxx
010
Account
sRecei
vabl
e xxxx
1-03-
01-
010
Set
tl
ementofChar ges
 Disallowances/ ges made Recei
Char vabl
es 1-03-
05- xxxx
i
npr evi
ousy earandset
tl
edin Disall
owances/
Char
ges 010
currentyear xxxx
GovernmentEqui
ty 3-01-
01-
010
 Set
tl
ement Cash-
Col
l
ect
ingOf
fi
cer 1-01-
01- xxxx
010
Recei
vabl
es xxxx
Di
sall
owances/Char
ges 1-03-
05-
010
 Disall
owances/ ges made Recei
Char vable- 1-03-
05- xxxx
i
ncur r
entyearandset
tl
edin Disall
owances/charges 010
currentyear xxxx
OtherServ
iceIncome 4-02-
01-
990

 Set
tl
ement Cash-
Col
l
ect
ingOf
fi
cer 1-01-
01- xxxx
010
Recei
vabl
es xxxx
Di
sall
owances/Char
ges 1-03-
05-
010
RefundofOv
er-
Pay
mentofsal
ari
es Due from Of
fi
cer
s and 1-01-
01- xxxx
andwages Empl
oyees 010
xxxx
Sal
ari
es and Wages-
Regul
ar
Set
tl
ement
xxxx
1-01-
01-
010
Cash-
Col
l
ect
ingOf
fi
cer xxxx

Due from Of
fi
cer
s and
Empl
oyees
RefundofCashAdv
ancesf
orsal
ari
es Cash-
Coll
ecti
ngOf f
icer 1-01-
01- xxxx
andwages 010
AdvancesforPayrol
l xxxx
1-99=01-
020

Cash-
Col
l
ect
ingOf
fi
cer xxxx
1-
01-
01-
Adv
ances t
o Of
fi
cer
s and xxxx
 Empl
oyees 010

1-99-
01-
040
Ref
undofCashAdv
ances(
Trav
el) Cash-
Col
l
ect
ingOf
fi
cer 1-01-
01- xxxx
010
Advances t
o Of
fi
cer
s and xxxx
Employ
ees 1-99-
01-
040
I
nter
-AgencyTransf
erredofFunds
 Recordt he t
ransf
eroff unds Duefrom NGAs 1-03-
03- xxxx
from SAtoIA(SABook) 010
Cash-
MDS-Regul
ar xxxx
1-01-
04-
040
 Recor
dthe r
ecei unds Cash-
ptoff Coll
ect
ingOf
fi
cer 1-01-
01-
(I
ABook) 010
DuetoNGAs
2-02-
01-
050
 Recor
dther
emi
tt
anceofI
Ato Duefrom NGAs 1-03-
03- xxxx
BTr 010
Cash-Col
lect
ingOf
fi
cer xxxx
1-01-
01-
010

Di
shonor
edChecks
 Recorddi
shonor
edchecks Ot
herRecei
vabl
e 1-
03-
05- xxxx

Ot
herSer
viceI
ncome 04-02-01- xxxx
990
 Col
l
ect
ion Cash-
Col
l
ect
ingOf
fi
ce 1-01-01- xxxx
010
Ot
herRecei
vabl
e xxxx
1-03-
05-
990
Per
for
manceBond Cash-Col
lect
ing xxxx
Off
icer/
GuarantyDeposi
t
xxxx
Guarant
y/Secur
it
y
Deposi
tPayable

Account
ingf
orDi
sbur
sementandRel
atedAccount
s

Fundament alPr i
nciplesforDi sbur sementofPubl icFunds.Sect ion4ofP. D.No.1445,t heGov ernment
Auditi
ngCodeoft hePhi l
ippi nes,pr ov i
dest hatal lfinancialtransactionsandoper ati
onsofanygov ernment
enti
tyshal lbegov ernedbyt hef ollowi ngf undament alpri
nciples:
1.Nomoneyshal lbepai doutofanypubl ictreasur yordeposi t
or yexcepti npursuanceofanappr opri
ati
onl aw
orot herspeci fi
c st atut
or yaut hor i
ty .
2.Gov ernmentf undsorpr oper tyshal l bespentorusedsol elyforpubl icpurposes.
3.Trustf undsshal lbeavailabl eandmaybespentonl yforthespeci ficpurposef orwhicht hetrustwascr eated
orthef undsr eceived.
4.Fi
scal responsibili
tyshall,tot hegr eatestext ent ,
beshar edbyal l
thoseexer cisingauthorit
yov erthef i
nanci al
affairs, t
ransactions,andoper ationsoft hegov ernmentagency .
5.Disbur sementordi spositionofgov ernmentf undsorpr oper t
yshal linvari
ablybeartheappr ov alofthepr oper
offi
cial s.
6.Claimsagai nstgov ernmentf undsshal lbesuppor t
edwi thcompl etedocument ati
on.
7.Alll
awsandr egul ati
onsappl icabl et ofinancial tr
ansactionsshal lbef ai
thful
lyadheredt o.
8.Gener all
yaccept edpr i
nci plesandpr acticesofaccount i
ngaswel lasofsoundmanagementandf i
scal
administ rati
onshal lbeobser ved, prov idedt hatt heydonotcont raveneexi sti
nglawsandr egulations.

Expendi
tur
eist
heobl
i
gat
ioni
ncur
redbyt
heagency
.

Di
sbur
sement
srepr
esentt
hemov
ementofcashf
rom t
heBTrorf
rom anaut
hor
izeddi
sbur
singof
fi
cert
othe
f
inal
reci
pient
.Pay
mentmadef
orgov
ernmentobl
i
gat
ions.

Jour
nal
izi
ngTr
ansact
ions/
Event
s

I
naccounti
ng,i
tisthepol
icythattr
ansact
ions/
event
sar
ejour
nal
i
zedbasedonf
act
swi
thoutr
ecogni
zi
ngt
he
r
egul
ari
ty/
legal
i
tyofthet
ransacti
on/ev
ent.

Ty
pesofDi
sbur
sement

1.Bycheck

1.
1Modi
fi
edDisbursementScheme(MDS)Checks
o I
ssuedbygov er
nmentchar
geableagai
nsttheaccountoft
heTr
easur
eroft
hePhi
l
ippi
nes
o Maint
ainedingover
nmentbankswithdi
ff
erentMDSaccount
o Cover
edbyNot i
ceofCashAll
ocati
on

Example:Depar
tmentofEducat
ionpai
dit
saccount
spay
abl
ear
isi
ngf
rom t
hepur
chaseofsuppl
i
esand
mater
ialsi
ntheamountofP500,000.

AccountTi
tl
e AccountCode Debit Cr
edi
t
Suppl
iesandMateri
ali
nvent
ory P500,
000
Cash-
MDS-Regular P500,
000

1.
2Commer
cialChecks
o Chargeagainstt
heagencyaccountwi
thcommer
cial
bank

AccountTi
tl
e AccountCode Debit Cr
edi
t
Suppl
iesandMateri
ali
nvent
ory P500,
000
CashinBank-
LCCA P500,
000

2.ByCash
o Madebycashadv
ancedr
awnandmai
ntai
nedi
naccor
dancewi
thCOAr
ulesandr
egul
ati
ons.

Ty
picalDi
sbur
sement
sTr
ansact
ions

1.Personnel Serv
ices(e.
g.Salar
iesandWages, Bonuses,All
owances, etc.
)
2.Maint enanceandOt herOperati
ngExpenses( e.
g.TravelExpenses,Of f
iceSuppl ies,Repai
rs&Mai
ntenance,
etc.
)
3.CapitalOutlay(e.
g.PurchaseofEqui
pment ,
Const r
ucti
onofBui l
ding/Office,etc.)
4.Fi
nanci alExpenses(e.
g.BankCharges,I
nterestExpense,LoanAmor t
ization,etc.
)

Jour
nalEnt
ri
es

1.Per
sonnelSer
vices

Sal
ari
esandwagesoft
heagencymaybemadet
hrought
hef
oll
owi
ng:

1.Payrol
lFundinthehandsoft heDisbursi
ngOf fi
cer(
DO)asCashAdvancePaymentsar
emadebythe
DOi ncasht
ot heemployees.
2.Payrol
lFunddeposi
tedi nanauthori
zeddeposi t
orybank,
wit
hdr
awalbytheemploy
eesist
hrought
he
automatedtel
l
ermachine( ATM).
3.Dir
ectpaymenttoempl oyeesbyindi
vidualcheck.

AccountTitl
e AccountCode Debi
t Cr
edi
t
PaymentofPay r
oll(Regular)
Sal
ari
esand wages– r egularpay,P2,
000,000;PERA
P200,
000;deductionscomposedof :wit
hholdi
ngt axes,
P120,
000; GSI S Li fe and Ret i
rement Pr emi um,
PP180,000;PagI
big,P10, 000andPhi l
Healt
h,P20, 000.
The net amount was adv ance by the agency ’s
di
sbursementoffi
cer.

Adv
ancesf
orPay
rol
l 1-
99-
01-
020 P1870,
000
 Cash-
MDS-Regul
ar 1-
01-
04-
040 P1,
870,
000
Torecor
dthecashadv
ancegr
ant
edt
odi
sbur
singof
fi
cer

Sal
ari
esandWages- RegularPay 5-
01-
01-
010 2,
000,
000
Per
sonnelEconomicReliefAll
owance 5-
01-
02-
010 200,
000
DuetoBIR 2-
02-
01-
010 120,
000
DuetoGSIS 2-
02-
01-
020 180,
000
DuetoPagIbi
g 2-
02-
01-
030 10,
000
DuetoPhil
Healt
h 2-
02-
01-
040 20,
000
AdvancestoPayrol
l 1-
99-
01-
020 1,
870,
000
Torecordpaymentofsal ar
iesandli
qui
dat
ionofcash
adv
ances

GovernmentShar e:GSIS,P240,000;PagI
big,P20,000,
Phi
lHealt
h,40,
000
Reti
rementandLi f
eInsur
ancePremium Cont
ribut
ion 240,
000
PagIbi
gContri
bution 20,
000
Phi
lHealt
hCont r
ibuti
on 40,
000
DuetoGSI S 2-
02-
01-
020 240,
000
DuetoPagIbig 2-
02-
01-
030 20,
000
DuetoPhilHealth 2-
02-
01-
040 40,
000
Torecordgovernmentshare

DuetoGSIS 2-
02-
01-
020 360,
000
DuetoPagIbi
g 2-
02-
01-
030 30,
000
DuetoPhil
Healt
h 2-
02-
01-
040 40,
000
Cash-
MDS-Regular 1-
01-
04-
040 430,
000
Torecor
dsremitt
ancesgov
tinst
it
uti
ons

DuetoDIR 2-
02-
01-
010 120,
000
Subsi
dyf
rom nat
ional
Gov
ernment 4-
03-
01-
010 120,
000

Clot
hingAll
owanceandPr oducti
vi
tyIncenti
veBonus
AdvancestoPayrol
l 1-
99-
01-
020 100,
000
Cash-MDS-Regular 1-
01-
04-
040 100,
000
Torecordcashadv ancegrant
edf orclot
hingandother
bonuses/
all
owances

Clot
hing/Uni f
orm All
owance 80,
000
Productiv
ityIncenti
veAll
owance 20,
000
Adv ancesf orPayrol
l 1-
99-
01-
020 100,
000
Tor ecordpay mentandl i
qui
dat
ionofcl
othi
ngandot
her
bonuses/allowances

Overt
imePay,P6000
Overt
imeandNightPay 6,
000
DuetoBIR 2-
02-
01-
010 100
Cash-
MDS-Regular 1-
01-
04-
040 5,
900
Torecor
dpaymentofov er
ti
mewor
k

DuetoBIR 2-
02-
01-
010 100
Subsidyfr
om nati
onalGov
ernment 4-
03-
01-
010 100
Torecordtaxremi
ttancef
orovert
imepay

2.Mai
ntenanceandOt
herOper
ati
ngExpense

CashAdv ancesGr antedfortr

avel,P27,000
AdvancestoOf fi
cersandEmpl oyees 1-
99-
01-
040 27,
000
Cash-MDS- Regular 1-
01-
04-
040 27,
000
Torecordscashadv ancegr
antedfortravel
Tr
avel
li
ngExpenses- Local 5-
02-
01-
010 25,
000
AdvancestoOfficersandEmpl
oyees 1-
99-
01-
040 25,
000
Torecordli
quidat
ionofcashadvancef
ort
rav
el

Cash-
Collect
ingOf
fi
cer 2,
000
AdvancestoOff
icer
sandEmployees 1-
99-
01-
040 2,
000
Torecordref
undofcashadvancef
ortrav
el

Suppl
ies and Materi
al (
Asset Met
hod, Per
petual
I
nventor
ywit
hStockCar
dandWeight
edAver
agemethos
ofCosti
ngI
nvent
ory)

Suppli
esandMateri
alI
nvent
ory 450,
000
Account
sPayable 450,
000
Tor ecor
dtherecei
ptsofsuppli
espur
chasef
rom PS-
DBM

Account
sPayabl
e 450,
000
DuetoBI
R 2-
02-
01-
010 45,
000
Cash-
MDS-Regul
ar 1-
01-
04-
040 405,
000
Torecor
dpaymentmadet
oPS-
DBM

DuetoBIR 2-
02-
01-
010 45,
000
Subsidyfr
om nati
onalGovernment 4-
03-
01-
010 45,
000
Torecordtaxremi
ttancestoBIR

Di
sbur
sementThr
oughPCF

Pet
tyCash 10,
000
Cash-
MDS-Regul
ar 1-
01-
04-
040 10,
000
Torecor
dest
abli
shmentofPCF

Offi
ceSuppl i
esExpense 500
PettycashFund 500
Tor ecordexpensesatt heendoft
hey
earwhenno
repl
enishmenthappened

Off
iceSuppl
i
esExpense 500
Cash-
MDS- Regul
ar 1-
01-
04-
040 500
Torecor
drepleni
shmentofPCFatt
heendoft
hey
ear

Const
ruct
ionPer
iodTheor
y

Adv
ancestoContractor 1-
99-
02-
010 1,
500,
000
Cash-
MDS-Regular 1-
01-
04-
040 1,
500,
000
Torecor
d15%mobi li
zati
ongr
ant
edt
ocont
ract
or

Constr
uctioninProgr
ess-Bl
dgandOtherSt
ruct
ure 1-
06-
10-
030 4,
000,
000
Adv ancestoContract
or 1-
99-
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Constr
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Construct
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EndofPr
eli
m Cov
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