ACCOUNTING SECTION

SCHOOL DISBURSEMENT
PROCESS
 Session Overview
PUBLIC FINANCIAL MANAGEMENT
DISBURSEMENT PROCESS
COA AUDIT DECISIONS
COA ISSUED DOCUMENTS

DEPARTMENT OF EDUCATION 2
PUBLIC FINANCIAL MANAGEMENT
PFM includes all components of a country's budget process - both
upstream (including strategic planning, medium term expenditure framework,
annual budgeting) and downstream (including revenue management,
procurement, control, accounting, reporting, monitoring and evaluation,
audits and oversight).

SIP RA 9184

Asset
Planning Budgeting Procurement Disbursement
Management

APP/WFP/ Implementing
Cash Program Guidelines

The aim of financial management in the public sector is: "to manage limited
financial resources with the purpose to ensure economy and efficiency
in the delivery of outputs required to achieve desired outcomes
(effectiveness), that will serve the needs of the community
(appropriateness)"

DEPARTMENT OF EDUCATION 3
 Disbursement Process

ADAS III AO II

Asset
Disbursement
• Purchase Request • Preparation of Check Management
• BAC Resolution • Advice of Check
• • Obligation Request Issued and Cancelled • Inspection and
Request for Quotation
• • DV Preparation • Official Receipt (upon Acceptance Report
Abstract of Canvass • RIS/ICS
• Purchase Order payment)

Check
Procurement
Issuance
SBAC ADAS II

DEPARTMENT OF EDUCATION 4
 Standard Disbursement Procedures
Preparation of Claims
Refer to the APP/WFP/SOB for the alignment of the
approved budget matrix.

Monitor Cash Availability

Evaluate cash balances to prevent bank penalties
Preaudit
Compliance with Applicable Laws, Rules and Regulations
(RA 9184, NIRC and Implementing Guidelines)
Refer to the CHECKLIST for the list of required documents
(COA Circular 2012-001)
Preparation of DV
Prepares in accordance with Appendix 32
Computation of Withholding Tax

Check Issuance
Preparation of Check
Submission of ACIC
DEPARTMENT OF EDUCATION 5
Fundamental Principles of
Disbursement

Existence of Completeness
Appropriation of Documents

Compliance
Proper
with Laws,
Accounting
Rules and
Treatment
Regulations

DEPARTMENT OF EDUCATION 6
 Common-Use Supplies
Certificate of Non-
Availability from
DBM-PS Local
DBM PS Supplier

Alternative Mode
Not of Procurement
Available (Shopping)

Common-Use Supplies are goods, materials and equipment that are repetitively
used in the day-to-day operations of procuring entities in the performance of their
functions and included in the Electronic Catalogue of the PhilGEPS.
DEPARTMENT OF EDUCATION 7
 Non-Common-Use Supplies

PREAUDIT

ADAS III AO II
Procurement Law
Asset
Disbursement
• Purchase Request • Preparation of Check Management
• BAC Resolution • Advice of Check Issued
• Request for Quotation • Obligation Request and Cancelled • Inspection and
• Abstract of Canvass • DV Preparation • Official Receipt (upon Acceptance Report
• Purchase Order payment) • RIS/ICS

Check
Procurement
Issuance
Taxation Law
SBAC ADAS II

Non-Common Use Supplies are goods, materials and equipment that are not CSEs,
may include goods, materials and equipment that are required by the Agency for a
specific project only.
DEPARTMENT OF EDUCATION 8
 Travelling Expenses
Travel Order/Travel
Authority DO No. 22 s. 2017

Itinerary of Travel Appendix 45 GAM

Tickets/RER/Certification
Not Requiring Receipts
COA Circular 2017-01

Certificate of
Appearance

DEPARTMENT OF EDUCATION 9
 Ap
Sta Billin Co prove
te m g ntra d
en t ct
DT
R

Pa

DEPARTMENT OF EDUCATION
Inv
o i ce yro
/OR ll
IAR
/De
l i ve
Re ry
ce i
pt
Utilities/Janitorial/Telephone

10
 MINOR REPAIR
Division Memorandum No. 338 s. 2020

DEPARTMENT OF EDUCATION 11
COA Audit Decisions
Notice of Notice of
Charge Disallowance

Illegal
Irregular
Amount
assessed/billed/ Excessive
collected
Extravagant
Is less than wha
t
is due to the Unnecessary
government
Unconcionable

DEPARTMENT OF EDUCATION 12
 COA issued Documents

AOM (Audit Observation

Memorandum)
• Issued for observation relating to
financial/operational deficiencies such as
accounting, internal control, or property
management which do not involve
pecuniary loss, including for documentary
or other information requirements to
enable auditor to make a decision in audit.

DEPARTMENT OF EDUCATION 13
 COA issued Documents

Notice of Suspension
• Issued for transactions of doubtful
legality/propriety/regularity which may
result in pecuniary loss of the
government to obtain further
explanation or documentation
(temporary disallowance; requirements
must be complied within 90 days)

DEPARTMENT OF EDUCATION 14
 COA issued Documents

Notice of Disallowance
• The disapproval in audit of
transaction, either in whole or in
part. The term applies to the audit
of “disbursements” as
distinguished from “charge” which
applies to the audit of
revenues/receipts.
DEPARTMENT OF EDUCATION 15
COA Circular No. 2012-003

DEPARTMENT OF EDUCATION 16
Thank You!