REGISTRY OF PUBLIC

INFRASTRUCTURES
• REGISTRY OF REFORESTATION PROJECTS
• shall be maintained for each category:
– Registry of Public Infrastructures - Bridges (RPIB)
– Registry of Public Infrastructures - Roads (RPIR)
– Registry of Public Infrastructures - Parks (RPIP)
– Registry of Reforestation Projects (RRP)
• a summary shall be prepared and included in the Notes to
FS
 DEPRECIATION
• The straight-line method shall be used
• Depreciation shall start on the second month after
purchase of the property, plant and equipment
• A residual value equivalent to ten percent of the
purchase cost shall be set-up
• Public infrastructures or reforestation projects or
serviceable assets that are no longer being used shall not
be charged any depreciation
LEASEHOLD IMPROVEMENTS
• Useful life - depends on the
length of the lease
• Period of lease or the
estimated useful life of the
assets, whichever is shorter
RECLASSIFICATION OF ASSETS
• Serviceable assets no longer being used
shall be reclassified to “Other Assets”
account and shall not be subject to
depreciation.
• Also include obsolete and unserviceable
assets awaiting final disposition to Other
Assets
 ALLOWANCE FOR DOUBTFUL
ACCOUNTS
• shall be set up for estimated uncollectible trade
receivables to allow for their fair valuation
• used to record reduction in the value of trade receivable
accounts which is estimated as uncollectible
• it is debited for accounts of customers which have been
determined to be uncollectible for which authority to write-
off has been granted
• credited for estimated amount of uncollectible accounts
ELIMINATION OF CONTINGENT ASSETS
• Contingent accounts shall no longer be used.
• All financial transactions shall be recorded using the
appropriate account
• Cash shortages and disallowed payments, which become
final and executory, shall be recorded under receivable
accounts “Due from Officers and Employees” or
“Receivables-Disallowances/Charges”
 RECOGNITION OF LIABILITY
• Shall be recognized at the time goods and services are
accepted or rendered and supplier/creditor bills are
received
• The Accounts payable account is used to record
obligations/indebtedness to contractors/suppliers arising
from the purchase of goods and services and other
obligations in connection with the agencies'
operation/trade/business.
 INTEREST ACCRUAL
• When practical and appropriate, interest income and
interest expense shall be accrued and recognized.
• “Interest income” is used to record all interest earned on
deposits with banks, loans and investments in bonds,
treasury notes, treasury bills and promissory notes held.
• “Interest expense” is used to record charges imposed as
consequence of the use of money belonging to others.
 ACCOUNTING FOR BORROWING AND
LOANS

Shall be recorded to the appropriate liability

account
ELIMINATION OF COROLLARY AND
NEGATIVE JOURNAL ENTRIES
Acquisition or Disposition of assets
shall be debited or credited to the
appropriate asset accounts. If an
error is committed, a correcting
entry to adjust the original entry
shall be prepared.
 PETTY CASH FUND
• Imprest System - all replenishments shall be directly
charged to the expense account and at all times, the
Petty Cash Fund shall be equal to the total cash on hand
and the unreplenished expenses.
• Shall not be used to purchase regular inventory/items for
stock
• Used to record in the books of the government agency for
cash granted to Regular or Special Disbursing Officers for
the creation of the PCF
 PETTY CASH FUND
• The purpose - payment of petty or miscellaneous
authorized expenditures, which cannot be conveniently
paid by check
• Debited for replenishment for expenses not replenished at
the end of the year
• Credited for adjusting entry to recognize expenses paid
out of the petty cash fund but not replenished at the end
of the year
 FOREIGN CURRENCY ADJUSTMENT
• Computed at the exchange rate prescribed by the BSP
at the balance sheet date
• Total cash deposits and foreign loans payable shall be
adjusted at the end of each month
• Any gain or loss shall be recognized
• The liability shall be expressed both in the foreign and
local currency
 BUDGETARY ACCOUNTS
• APPROPRIATION - authorization made by law or
other legislative enactment, directing the payment
of goods and services out of government funds
under specified conditions or for special purposes
• ALLOTMENT - authorization issued by the DBM to
the Agency, which allows it to incur obligations, for
specified amounts, within the legislative
appropriation
 BUDGETARY ACCOUNTS
• OBLIGATION - refers to the commitment by a
goverment agency arising from an act of a duly
authorized official, which binds the government to
the immediate or eventual payments of a sum of
money
– Separate registries: RAOCO, RAOMOOE, RAOPS,
RAOFE
 AGENCY BUDGET MATRIX (ABM)
• In order that the appropriation may be released, the
Agency, in consultation with the DBM, is required to
prepare and submit the ABM
• The official document used as basis in the release of the
obligational authority
• Prepared by appropriation source and major programs
and the amounts are classified into “Needing Clearance”
and “Not Needing Clearance”
• For automatic appropriations, a separate ABM is prepared
and submitted
 ANNUAL CASH PROGRAM
• Shall provide cash to finance the
programs reflected in the ABM and the
prior years' accounts payable
• Should be submitted with the ABM
For requests “Not Needing Clearance”, the Notice of Cash
Allocation is issued as requested.

For items, “Needing Clearance”, the DBM issues the

Special Allotment Release Order (SARO), while the NCA
will be released upon request.
 The Balance Sheet Accounts
• Assets Liabilities
– Current Assets -Current Liabilities
• Cash -Long-term Liabilities
• Receivables -Other Liabilities
• Inventories Equity
• Prepaid Expenses -Accumulated Surplus/(Deficit)
• Other Current Assets
– Long-term Investments
– Property, Plant and Equipment
– Other Assets
 The Revenue/Income Account
General Income Accounts - encompasses all types
generated by government agencies in the exercise of their
administrative and regulatory function, income from public
enterprises/investments, and income from grants and
donations including subsidies
Tax Revenue Accounts - encompasses all taxes imposed
on taxable income, properties, and use or sale of goods and
services, taxes on international trade and transactions and
their taxes, income generated from local government,
schools and hospital operations
 Expenses
Personal Service (PS) - includes basic pay, all authorized
allowances, bonus, cash, gifts, incentives and other
personal benefits of officials and employees of the
government
Maintenance and Other Operating Expenses (MOOE) -
includes expenses necessary for the regular operations of
an agency like, among others, travelling expenses, training
and seminar expenses, water, electricity, supplies expense,
maintenance of PPE and other maintenance and operating
expenses
 Expenses
• Financial Expenses (FE) - includes bank charges,
interest expense, commitment charges, documentary
stamp expense and other financial charges
– includes those losses incurred relative to foreign
exchange transactions and debt service subsidy to
GOCCs
INTERMEDIATE ACCOUNTS
include account that will be
closed ultimately to the
Accumulated Surplus/(Deficit)
account at the end of the
accounting period
 ACCOUNTING FOR DISBURSEMENTS
AND RELATED TRANSACTIONS
• Shall start from the receipt of Notice of Cash Allocation
(NCA) from the Department of Budget and Management
• Government agency cannot pay its payables/obligations
without the NCA, since it is the sole purpose of the
agency in receiving their NCA for incurrence and eventual
payment of its obligation
 NOTICE OF CASH ALLOCATION
• NCA received by the agency may be net of the amount of
the taxes to be withheld by the agency because of the Tax
Remittance System
• The NCA may be used for payment of personal services,
maintenance and operating expenses, financial
expenses, capital outlay, and other miscellaneous
transactions
• Receipt of NCA shall be recorded in the Regular Agency
books as debit to Cash-Modified Disbursement
System, Regular and credit to Subsidy from National
 ACCOUNTING FOR OBLIGATION
• 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 agency is authorized to incur obligations only in the
performance of activities which are in pursuits of its
functions and programs authorized in appropriation
acts/laws within the limit of the Allotment Release Order
(ARO).
 DISBURSEMENTS
• Constitute all cash paid out during a given period either in
currency (cash) or by check
• Also mean the settlement of government
payables/obligations by cash or by check
• Shall be covered by Disbursement Voucher (DV) or
payroll and paid either by check or in cash
 Payment out of the Petty Cash Fund
• Shall be maintained under the IMPREST
SYSTEM
• Shall be sufficient for the non-recurring,
emergency and petty expenses of the local
government unit for one month
 DISBURSEMENT BY CHECK
MODIFIED DISBURSEMENT SYSTEM (MDS) CHECKS -
issued by government agencies chargeable against the
account of the Bureau of Treasury, which are maintained
with different MDS - Government Servicing Banks
– Covered by Notice of Cash Allocation (NCA), an authorization
issued by the Department of Budget and Management to
government agencies to withdraw cash from the National
Treasury through the issuance of the MDS checks or other
authorized mode of disbursements
 DISBURSEMENT BY CHECK
COMMERCIAL CHECKS - issued by the
government agencies chargeable against the Agency
Checking Account with government servicing banks
-these are covered by income/receipts authorized
to be deposited with authorized government
depository banks
 DISBURSEMENTS BY CASH
Shall be made from cash advances drawn and maintained
in accordance with Commission on Audit rules and
regulations

Shall be made based on duly approved

payroll/disbursements vouchers