Training programs refer to activities

involving instruction and strategies

whereby participants are required to
undergo:
• manual or practical exercises; and
• action learning
as a means of strengthening work and
job related skills.
Training Expenses – costs incurred for
the participation/attendance in and
conduct of trainings, conventions and
seminars/workshops. It includes
training fees, honoraria of lecturers,
cost of handouts, supplies, materials,
meals and snacks and all other training
related expenses.
• Water Expenses – cost of water
consumed in government
operations/projects
• Electricity Expenses – cost of
electricity consumed in government
operations/projects
 Postage and Courier Services – cost of
delivery/transmission of officials messages,
mails, documents, records and the like.
 Telephone Expenses – cost of transmitting
messages thru telephone lines (mobile or
landlines), faxes, telex and the like whether
prepaid or postpaid.
 Internet Subscription Expenses – cost of using
internet services in government operations
 Cable, Satellite, Telegraph and Radio Expenses –
cost of using cable/satellite/telegram/radio
services.
UGExp Slide 7.0-3
Awards/Rewards Expenses – amounts given in
recognition of any civic or professional
achievement and of rewards to informers for the
receipt of reliable information leading to the
successful arrest/capture of fugitives,
seizure/confiscation of smuggled goods, or
collection of unpaid taxes/
surcharges/fines/penalties.
Prizes – amounts paid to winners of competitive
and promotional activities.
These are the expenses incurred for:
• meetings, seminars and conferences;
• official entertainment;
• public relations, educational, athletic and
cultural activities;
• contributions to civic or charitable
institutions;
• membership fees in government
associations;
These are the expenses incurred for:
• Membership in national professional
organizations accredited by the PRC;
• Membership in the IBP;
• Subscription to professional technical
journals and informative magazines,
library books and materials;
• Office equipment and supplies; and
• Other similar expenses not supported by
the regular budget allocation.
• Legal Services
• Auditing Services
• Consultancy Services
• Other Professional Services
Incurred for authorized legal services rendered by private
lawyers. Also, includes special counsel allowance granted
by government lawyers deputized to represent the
government in court as special counsel.
Documentary Requirements :
• MOA or equivalent
• receipts of actual related expenses incurred
• certificate of availability of funds
• Cost of operating expenses provided by auditees for
auditing services rendered by the COA.

• There shall be in each agency of the government an

auditing unit which shall be provided by the audited agency
with a suitable and sufficient office space together with
supplies, equipment, furniture, and other necessary
operating expenses for its proper maintenance, including
expenses for travel and transportation. (Section 20, PD 1445)
Consultant is one who is contracted to render
professional service requiring highly specialized
or technical expertise in a field of special
knowledge or training which cannot be provided
by the regular staff of the agency.
 Contracts of consultancy services shall refer to the
following:
• The contract creates a professional-client relationship
between the parties;
• The position is not found in the index of position titles
approved by DBM ; and
• The duties enumerated in the consultancy contract are
mainly advisory in nature
is the cost of repairing and maintaining
PPE owned by the government.
is the cost of repairing and maintaining office
buildings, school buildings, hospitals and
health centers, markets, slaughterhouses,
hostels and dormitories; and other
structures owned by the government.
Rules Before Prosecution of Work by Administration Or
by Contract
There must be:
• Certificate of Availability of Appropriations free from
other obligations issued by the Chief Accountant;
• Program and estimate of work prepared by the
project engineer; and
• Prosecution by contract shall follow the
requirements of “Contracts”.
This is the cost of repairing and maintaining motor
vehicles; trains; aircrafts; watercrafts; and other
transportation equipment owned by the
government.
 These are the amounts of taxes, duties, licenses and
other fees due to regulatory agencies.
Includes:
Taxes on interest income on savings deposits, time
deposits and other government securities of the bond
sinking fund/other funds.
General Provisions
Employees accountable for funds and/or
property in the amount of P5,000.00 or more
shall bonded with the Fidelity Bond of the
Treasury of the Philippines. (Treasury Circular 02-2009
dated 08/06/09)

The Agency of the insured officers shall pay the

whole premium on his bond.
Other MOOE
• Rent/Lease Expenses
• Subscription Expenses
• Donations
1. Contract of lease shall be in accordance with the
guidelines formulated by the DPWH [COA Cir. 88-
282(a)]
2. Contract of lease should be co-extensive with the
period for which the appropriation is provided with a
prohibition to pay rentals in advance.
• A single advance payment not to exceed fifty percent (50%) of the
contract amount shall be allowed for contracts entered into by a
procuring entity for the following services where requirement of down
payment is a standard industry practice
•     1. Hotel and restaurant services;
    2. Use of conference/seminar and exhibit areas; and
  3. Lease of office space.
MO 172 dated 5/19/2005
3. The lease agreement should be signed by the
contracting parties duly authorized to execute
the contract and the witnesses thereto and
acknowledged before a Notary Public;
4. Its terms and conditions are fixed and must not
be disadvantageous to the government.
1.Subscription to library and other reading
materials may be done under these rules:
• The agency head of his authorized representative
shall approve the subscription.
• Library materials may be ordered provided the
funds are available therefor and that these are
kept in the agency’s library or research center for
reference.
 DONATIONS

These are the non-repayable transfers

given to other levels of government ,
private sector, non-government
organizations or international
institutions.
 DONATIONS
Examples are:
1. Aids for educational purpose
2. Grants for public health and sanitation
3. Grants for construction, maintenance and
operations of hospitals and puericulture center
4. Aid to cultural minorities
5. Contributions to economic development projects to
the UN and other international organizations.
Non-Cash Expenses
• Depreciation
• Amortization
• Impairment Loss
• Lossess
Depreciation Expense
• The gradual allocation of the cost of the use of
the property, plant and equipment for accounting
period shall be recorded in the books as expense
and is credited to the accumulated depreciation
account.
Amortization
• periodic allocation of cost of intangible assets (patents/copyrights,
computer software and other intangible assets)
Impairment Loss
• Impairment - a loss in the future economic benefits or service
potential of an asset, over and above the systematic recognition of
the loss of the asset’s future economic benefits or service potential
through depreciation.
• Loss on Foreign Exchange – loss incurred in
converting foreign currencies to Philippine peso.
• Loss on Sale of PPE –sale is less than carrying amount
• Loss of Assets – loss suffered by the government due
to theft/fortuitous events/calamities/civil unrest and
events of same nature.
• Management Supervision/ Trusteeship Fees
• Interest expenses
• Guarantee Fees
• Bank Charges
• Commitment Fees
• Other Financial Charges
 Financial expenses 
• Bank Charges

• This account is used to record the amount levied by

a bank for various services, such as charges for
encashed checks, charges for maintaining current
account, cost of check booklets, charges for
bouncing checks, over withdrawals, cost of
stoppage of payment, etc.
• 
 Financial expenses 

•Interest Expense

•This account is used to record charges imposed as a

consequence of the use of money belonging to others,
such as interest on bonds, loans, advances, treasury
bills, treasury notes, certificate of indebtedness, and
other interest bearing financial obligations.