CASHIERING AND

BONDING PROCEDURES
CASHIERING AND DISBURSEMENT

✓ Involves cash management and

payments whether by check, in cash or
any other legal means accepted by the
general public

DEPARTMENT OF EDUCATION 2
A. Basic Concepts and Principles
Fundamental Principles in Disbursement
• No money shall be paid out of any public treasury or depository except
in pursuance of an appropriation law or specific authority;
1

• Government fund or property shall be used solely for public purposes;

2

• Trust fund shall be available and shall be spent only for specific purpose
in which the trust was created or fund received;
3

• Disbursement or disposition of government funds or property shall

invariably bear the approval of the proper officials;
4
• Claims against government funds shall be supported with complete
documentation (COA Circular No. 2012-001 dated June 14, 2012
5 amended by COA Circular No. 2013-001 dated January 10, 2013).

• All laws and regulations applicable to financial transactions shall be

faithfully adhered.
6

DEPARTMENT OF EDUCATION 3
B. Standard Disbursement Procedures
(General Fund)
1. Preparation of Claims
Refer to COA Cir. 2012-001 dated June 2012 for the list of required documents

2. Certification of availability of Allotment

(Evaluate/determine appropriate charging, check completeness of supporting documents, Encode to
eBMS (Assign ORS No./ Object Code)

3. Pre-audit of claim and certification of NCA

Refer to COA Cir. 2012-001 dated June 2012

3.1 Monitor Cash Availability

3.2 Posting to Registry of Allotment and Notice of Cash Allocation

(RANCA) Instruction

4. Approval of DV

DEPARTMENT OF EDUCATION 4
...con’t. Standard Disbursement
Procedures (General Fund)
5. Preparation of LDDAP-ADA, and Summary of LDDAP-ADA Issued and
Invalidated-ADA Entries (SLIIE) or Check and Advice of Check
Issued and Cancelled (ACIC), as the case may warrant.

6. Approval of the LDDAP-ADA or Checks and ACIC

7. Submission of approved LDDAP-ADA with SLIIE and/or ACIC to AGDB

8. AGDB to credit to Payee's Account (for LDDAP-ADA); OR

9. Release of check by the Cash Division

DEPARTMENT OF EDUCATION 5
...con’t. Standard Disbursement
Procedures (General Fund)

10. Receipt of Official Receipt from creditor

11. Recording of LDDAP-ADA and Checks Issued by the Cashier in the

Check Registry/Logbook

12. Submission of RCI and Report of ADA Issued by the Cashier to the
Accounting

13. Journalization thru eFRS and report generation

DEPARTMENT OF EDUCATION 6
MODES OF DISBURSEMENT

1. Checks
2. Cash (out of cash advance granted to
authorized disbursing officer)
3. Advice to Debit Account (ADA)
4. Tax Remittance Advice (TRA)

DEPARTMENT OF EDUCATION 7
1. Checks
Checks shall be drawn only on duly
approved Disbursement Voucher (DV) or
Payroll. These shall be used for payment
of regular expenses which cannot be
conveniently nor practically paid using
ADA or not authorized to be paid using the
Petty Cash Fund or advances for
operating expenses.

DEPARTMENT OF EDUCATION 8
Two Types of Checks issued by government
agencies:
1. Modified Disbursement System Checks
➢ Checks issued by government agencies
chargeable against the account of the Treasurer
of the Philippines, which are maintained with
different MDS-GSBs (MDS-Government
Servicing Banks)

2. Commercial Checks
➢ Checks issued by NGAs chargeable against the
Agency Checking Account with GSBs. These
shall be covered by income/receipts authorized to
be deposited with AGDBs

DEPARTMENT OF EDUCATION 9
Updating of Disbursement Reports
Flowchart

DEPARTMENT OF EDUCATION 10
Required GAM Forms for Disbursement of
Check

Report of Checks Issued (RCI)

Instruction

Check Disbursement Journal (CkDJ)

Instruction

DEPARTMENT OF EDUCATION 11
2. Cash (out of cash advance granted
to authorized disbursing officer)

Cash disbursements constitute

payment out of cash advances granted to
the regular and special disbursing officers
for personnel services, petty expenses
and MOOE for field operating
requirements

DEPARTMENT OF EDUCATION 12
Illustrative Example for Check and Cash
Disbursement (out of Cash Advance)

Assumptions :
1. Grants cash advance to special disbursing officer amounting to
P12,000.00 under Check No. 123456, dated June 1, 2016 to defray
expenses on the celebration of agency anniversary.
2. Actual Expenses incurred for the celebration of agency anniversary
were as follows:

Particulars Amount
Office Supplies P 1,000.00
Travel Expenses 1,500.00
Snacks 8,000.00
Stipend for the priest during mass 1,000.00
Flowers and candles for the mass 500.00

DEPARTMENT OF EDUCATION 13
Accounting Entry for Check Disbursement

Account Title UACS Code Debit Credit

Granting of Cash Advance to Special Disbursing Officers
Advances to Special 19901030 12,000.00
Disbursing Officer
Cash – MDS, Regular 10104040 12,000.00
To recognize cash advance for payment of agency anniversary celebration,
Check No. 123456 dated June 1, 2016

DEPARTMENT OF EDUCATION 14
Accounting Entry for Cash Disbursement (out of cash
advance granted to authorized disbursing officer)

Account Title UACS Code Debit Credit

Liquidation of Cash Advance
Travelling Expenses – Local 50201010 1,500.00

Office Supplies Expenses 50203010 1,000.00

Other Maintenance and 50209990 9,500.00
Operating Expenses
Advances to Special 19901030 12,000.00
Disbursing Officer
To record liquidation of cash advance (Check No. 123456 dtd. June 1, 2016) after the
anniversary celebration based on the Report of Disbursements and supporting
documents submitted by the special Disbursing Officer

DEPARTMENT OF EDUCATION 15
3. Advice to Debit Account (ADA)

The ADA is an authorization issued by

the NGA/OU to Debit a specified amount
from its availabe NCA balance under
regular MDS Sub Account for payment of
creditors/payees thru ExMDPS. This
appears in the lower portion of the List of
Due and Demandable Accounts Payable –
Advice to Debit Accounts (LDDAP-ADA)

DEPARTMENT OF EDUCATION 16
Required GAM Form for LDDAP-ADA

REPORT OF ADVICE TO DEBIT ACCOUNT

ISSUED (RADAI)

Instruction

DEPARTMENT OF EDUCATION 17
4. Tax Remittance Advice (TRA)

The TRA is an accountable document

issued by NGA, certified correct by the Chief
Accountant/Head of Accounting Division/Unit
and approved by the Agency Head/Authorized
Official, and used to record the remittance of
taxes withheld to the BIR. The same
document shall be the basis for the BIR and
the BTr to draw a JEV to record the tax
collection and deposit in their respective
books of accounts. The JEV shall be recorded
in the GJ.

DEPARTMENT OF EDUCATION 18
Sample Entries for ADA and TRA Disbursement

Account Title UACS Code Debit Credit

1. Upon set up of payable to suppliers
Office Equipment 10605020 80,000.00

Accounts Payable 20101010 80,000.00

To set up payable for the purchase of Xerox machine based on processed/approved DV

2. Payment thru ADA

Accounts Payable 20101010 80,000.00
Due to BIR 20201010 5,000.00
Cash – MDS , Regular 10104040 75,000.00
To record payment of payables to supplier thru ADA.
Note : Due to BIR amounting to 5,000.00 will be used as an example for TRA

DEPARTMENT OF EDUCATION 19
con’t... Sample Entries for ADA and TRA Disbursement

Account Title UACS Code Debit Credit

AGENCY BOOKS

1. Constructive Receipt of NCA for TRA

Cash – Tax Remittance Advice 10101070 5,000.00
Subsidy from National 40301010 5,000.00
Government
To record constructive receipt of NCA for TRA

2. Remittance of withholding taxes through TRA

Due to BIR 20201010 5,000.00
Cash – Tax Remittance 10101070 5,000.00
Advice
To record remittance of withholding taxes through TRA

DEPARTMENT OF EDUCATION 20
Bonding of the Accountable Officer

Bond

Is an undertaking that is sufficiently secured

Bonded Officer (School Head and/or Special

Disbursing Officer)
Is one whose duties permits or requires the custody of
funds or property for which he is accountable

DEPARTMENT OF EDUCATION 21
 Duties of Bonded Official
• Shall faithfully account for all funds and
public property in his/her custody.

• Shall exercise control over Cash Advance,

collection, as well as lawful payment/
disbursement of all funds transfers in
his/her custody

DEPARTMENT OF EDUCATION 22
 Guidelines for Bonding
• Each accountable Officer (The School Head / Special
Disbursing Officer) with a cash accountability beyond
Php5,000.00 or more shall be insured with the Bureau of
the Treasury- Fidelity Bond Division(FBD) as provided

1. under Treasury Circular No. 02-2009 dated 06 August

2009, as previously mentioned;

• The Accountable official shall accomplish General Form

No. 57A and request for application of fidelity bond to the
Bureau of Treasury (BTr) duly signed by the head of the

2. office

DEPARTMENT OF EDUCATION 23
con’t... Guidelines for Bonding

• Bond Requirement:
• 1. Appointment and/or designation as accountable officer. With
Character references by at least three (3) officials in the DepEd
Division office, who is the Administrative Officer or Legal Officer,
other than the appointing/designating official;
3. • 2. Statement of Assets, Liabilities and Net Worth (SALN) as of the
end of the preceding year; and
• 3. Certification of No Pending Administrative and criminal case

• Items 2 (General Form 57A) and 3 (Bond Requirement),

shall be submitted, together with the application for bond, to
the Office of the Schools Division Superintendent who shall
fix and approve the amount of the bond and transmits the
Note same to the Fidelity Bond Division of the Bureau of the
Treasury.

DEPARTMENT OF EDUCATION 24
con’t... Guidelines for Bonding

• When the amount of accountability is increased, we should insure

that the bond is also increased;

4.
• The Accountable official/employee whose accountability ceases by
reason of retirement, separation from the government, promotion,
or transfer to another agency, suspension of the office or for any
other cause, shall submit immediately a request to the BTr for bond

5. cancellation in the respective CO,RO DO using the General Form

57(A), items 10 - 16;

DEPARTMENT OF EDUCATION 25
con’t... Guidelines for Bonding
• If the School Head /designated Special
Disbursing Officer is already bonded, he/she
shall attach a copy of approved fidelity bond

6. certificate on his/her request for cash advance;

and

• SDO submits the “Requests for Cash Advance”

together with approved fidelity bond certificate
to the Schools Division Superintendent for
7. his/her appropriate action.

DEPARTMENT OF EDUCATION 26
Thank
You!
DEPARTMENT OF EDUCATION 28