University of Saint Louis

Tuguegarao City, Cagayan

School of Accountancy, Business, and Hospitality
Junior Philippine Institute of Accountants
Federation Year 2019-2020

FINANCIAL STATEMENTS
BOOKKEEPING AND AUDIT
SEMINAR
February 29, 2020
Topics to be discussed:
• Revised financial management policies
for all departments and student
organizations
• Bookkeeping
• Financial Statement Preparation
• Financial Statement Audit
 REVISED FINANCIAL
MANAGEMENT POLICIES
FOR ALL DEPARTMENTS AND
STUDENT ORGANIZATIONS
Effective First Semester School Year 2011-2012
Revised financial management policies
for all departments and student
organizations

1. Every department and organization

must maintain a book or any record of
their transactions maintained by the
treasurer which should bear the date
of transactions, including the specifics
of the financial transactions.
Revised financial management policies
for all departments and student
organizations

2. All collections of any kind must be

deposited immediately to the
Accounting Office; otherwise, the same
must be kept under the custody of the
treasurer and not to any other persons
in order to avoid unauthorized use of
their funds
 Revised financial management policies
for all departments and student
organizations

3. Receipts must be issued for all

collections made. The receipts must be
maintained only by the treasurer,
prenumbered and used chronologically.
Entries on the receipts must be made
properly
 Revised financial management policies
for all departments and student
organizations

4. To avoid missing collections, aside from

receipts, a separate sheet must be used
to list the names of all the members who
had paid with the amount they paid and
their signatures, including the date of
payment.
 Revised financial management policies
for all departments and student
organizations

5. Withdrawal of funds from the

Accounting Office must also be made
and strictly followed. The withdrawal
form from the Office of the Dean of
Student Affairs must be filled up for all
transactions.
 Revised financial management policies
for all departments and student
organizations

In no way that withdrawals be made

without the consent of the president/
governor, treasurer, adviser, dean.
 Revised financial management policies
for all departments and student
organizations

6. Departmental and/or organizational

funds must be used for the purpose or
intention of the department or
organization not for personal needs of the
officers.
Revised financial management policies
for all departments and student
organizations

7. Any form of penalty, such as not attending

an activity in school, even of agreed by
officers and members must be first
approved by the Administration; hence
permission from the same should be
sought through the Academic Dean.
Monetary penalties were earlier
prohibited in the University.
Revised financial management policies
for all departments and student
organizations

8. All department or organizational t-shirts,

jerseys, costumes and projects should be
purchased through Accounting office
following our University’s bidding procedure.
(Organizational/departmental t-shirts can
be included in the assessment of students.
Dept’l t-shirts will be used every wash day)
Revised financial management policies
for all departments and student
organizations
9. Any kind of contribution/collection to be
made by the Department or
Organization must be properly
communicated and duly recommended
by the Academic Dean and endorsed to
the DSA for appropriate
recommendation to the Office of the
University President.
Revised financial management policies
for all departments and student
organizations

10.Transfer of Department/ Organization

Fund must be properly communicated
and be duly recommended by the
Academic Dean and endorsed to the
DSA for appropriate recommendation to
the Office of the President.
 Revised financial management policies
for all departments and student
organizations

11.An official receipt must be secured for

every purchase made by the departments
and organizations. For purchases below
P25, temporary receipts can be secured
but at least containing the following:
Revised financial management policies
for all departments and student
organizations

a. Date of Purchase
b. Name of the Store and the address if
possible
c. Item purchased and the amount
d. Signature of the store owner/seller
Revised financial management policies
for all departments and student
organizations

12.Purchase above P25 without official

receipts must be reimbursed by any one
who made the purchase. This is to ensure
that purchases are made legitimately
and to avoid material disbursements that
are on hundreds and even thousands
which are evidenced only in a piece of
paper as temporary receipts.
 Revised financial management policies
for all departments and student
organizations

13.Only purchases below P10.00

will be allowed without official
receipts.
Revised financial management policies
for all departments and student
organizations

14.Transportation expenses must be

reasonable and must be put at the top
of the Official Receipts of the purchase
from which the said transportation
expense was incurred. Limit the
number of the one of those going for
purchase.
Revised financial management policies
for all departments and student
organizations

15. All unreceipted disbursements must

be charged against the person who
made the purchase. This is to avoid
illegitimate and inappropriate
disbursements of funds.
Revised financial management policies
for all departments and student
organizations

16. Receivables from the members and

officers must be avoided at the end of
the second semester.
Revised financial management policies
for all departments and student
organizations

17.Effective Second semester of School

Year 2009-2010, a proper turnover by
the predecessor officers to the next set
of officers must also be made.
Important things to be handed to the
new set of officers to include:
Revised financial management policies
for all departments and student
organizations

a. Important documents such as the

Financial Statements
b. Supplies and Equipment (for future use)
c. Cash on Hand (if not deposited in the
Accounting Office)
 Revised financial management policies
for all departments and student
organizations
18. Advances made by the officers must
be properly liquidated with official
receipts. An acknowledgement receipt
must be secured by their treasurer for
every disbursement made to the
officers to avoid possibility of
occurrence of unaccountable and/or
unliquidated advances
 Revised financial management policies
for all departments and student
organizations
19. Organizations sponsoring a seminar must
make a financial report three days after
the activity. Financial report should be
backed up by corresponding registration
and receipts. In no way must an Adviser
or Dean or Governor/President hold an
amount out of seminar. Excess or
proceeds from the seminar should be
deposited to the Accounting Office
BOOKKEEPING
(Sample illustrations)
JPIA-USL had the following transactions during the
first semester of the academic year 2019:
(DISCLAIMER: amounts are only assumed)

• Sept 1 Collected a total of P 93,000 from JPIA

students for their local membership fee.
JE: Cash 93,000
JPIA-USL, Capital 93,000
• Sept 3 JPIA officers bought a printer worth P
5,500.
JE: Office Equipment 5,500
Cash 5,500
• Sept 3 The officers in charge in buying the
printer paid P 50 for transportation.
JE: Transportation Expense 50
Cash 50
• Sept 7 JPIA officers bought a laptop worth
P 15,500 and paid 50 for transportation.
JE: Office Equipment 15,550
Cash 15,550
• Sept 10 Printer ink worth P 1,500 and bond paper supplies
worth P 1,000 were purchased. Fare paid was P 20.
JE: Office Supplies 2,500
Cash 2,500
Transportation Expense 20
Cash 20
OR
JE: Office Supplies 2,500
Transportation Expense 20
Cash 2,520
• Sept 11 JPIA-USL bought supplies for the organizational fair
worth P 5,000.
JE: Office Supplies 5,000
Cash 5,000
• Sept 17 The officers were able to raise P 7,000 during the said
event.
JE: Cash 7,000
JPIA-USL, Capital 7,000
• Sept 30 A seminar was conducted and the ff costs were
incurred:
Foods and Drinks P1,500
Honorarium P3,000
Token P 500

JE: Trainings and Seminars Expenses 5,000

Cash 5,000
Topics to be discussed:
• Source Documents
• Acknowledgement Receipt
• Liquidation Report
• Liquidation Report Template
• Statement of Cash Flows
• Statement of Financial Position
• Overview of Financial Statements Audit
• Auditor’s Report
• Abolishment of Audit Fees
FINANCIAL STATEMENT
PREPARATION
 Source Documents
• Types of source documents
 Sales invoices
 Official Receipts
 Acknowledgment Receipts
• Issues with certain source documents
 Damaged/Missing receipts
 Purchases with value less than 25 Php
 Temporary Receipts
 Tampered Receipts
 No receipts issue
 Fading text on thermal receipt
Source Documents
Source Documents
Source Documents
Source Documents
 Liquidation Report
• Components
Statement of Liquidation
Notes to Statement of Liquidation
Statement of Transportation Expenses
Source Documents
Statement of Liquidation
Junior
JuniorPhilippines
PhilippinesInstitute
InstituteofofAccountants
Accountants
Federation Year 2019-2020 Org/Dept
Logo
Financial
Financial Statements
Statements Audit
Audit Seminar
Seminar
 Letter Head
• KEY ELEMENTS
• ORG LOGO
• DEPARTMENT
• ORGANIZATION NAME

Federation Year 2019-2020

 Notes to Liquidation

Junior Philippines Institute of Accountants

Financial Statements Audit Seminar

Statement of Transportation Expenses
Junior Philippines Institute of Accountants
Federation Year 2019-2020

Financial Statements Audit Seminar

Sample Liquidation Report
 FINANCIAL STATEMENTS
FOR THE END OF SEMESTER

•Comprises of:
Statement of Financial Position or
merely, Statement of Assets and
Liabilities and Note Disclosures

Statement of Cash Flow

Notes to Financial Statements
Sample Notes to Financial Statements
Statement of Cash Flows
Sample Statement of Cash Flows
 Statement of Financial Position/
Statement of Assets and Liabilities
Sample Statement of Financial Position/
Statement of Assets and Liabilities
FINANCIAL STATEMENT
AUDIT
 What is the purpose of auditing our
organizations and departments?
• To enhance the comprehensibility and
accurateness of the Financial Statements of
different organizations and departments, to
faithfully reflect the different transactions
affecting their fund and appropriateness of
such transactions for the welfare of its
members.
AUDIT PROCESS in Reviewing the
Financial Statements

•Scanning
•Calculations
•Inquiry
•Examinations of Tangible Assets
 Auditor’s Report

• The external auditors, after their audit of the

financial statements of the
organization/department assigned to them
are to prepare an auditor’s report which,
shall be passed to the secretary of the
Student Affairs office, along with the
audited financial statements.
 Auditor’s Report

• Without the auditor’s report and the audited

financial statements, the clearances of the
auditors and the treasurers will not be
signed.
 Abolishment of audit fees of external
auditors
• No audit fee – fund is lower than P4,000.00

• 1% - fund is more than or equal to P4,000.00

• Limits
• Organization – shall pay minimum of P100.00 and maximum of P200.00
• Department - shall pay minimum of P100.00 and maximum of P200.00

As of Federation Year, 2017-2018 payment of Audit fees to

external auditors has been abolished.
T H A N K Y O U !