Receipts and Deposits

Appropriations and Commitments

Disbursements

Supplies and Materials, Property, Plant and Equipment, Public Infrastructures and Reforestation Projects

1. Share in National and Local Taxes/Revenues* IRA (Internal Revenue Allotment)* Real Property Taxes* Community Tax

2. Barangay Fees and Taxes* Fees imposed on peddlers, parking,

clearance, certification, use of barangay properties.

* Taxes imposed on stores/retailers within the barangay

* Penalties for violation of brgy. Ordinance

3. Other Fees and Charges

* Operation of places of recreation, etc.

* Fund raising activities

* Charges on billboards and signboards

* Use of barangay-operated markets and

waterworks systems

* Operation of other barangay economic

enterprises

4. Other Sources

* Subsidies/financial assistance from

national government, provinces and cities.

* Proceeds from loans, sale of PPEs

* Receipt of payment for lost

properties

* Grants and donations received

* Dividend/interest from investments.

Basic Policies - The Barangay Treasurer shall be responsible in handling

collections of income and other receipts of the barangay and the deposit of the same with Authorized Gov’t depository Bank (AGDB)

- All collections shall be acknowledged by the issuance of a pre-numbered Official Receipt (OR) – Accountable Form 51, and Community Tax Certificate (CTC); subject to proper custody, accountability and audit

- Temporary or provisional receipts shall not be issued to acknowledge collections

- Endorsed checks shall not be accepted as payment of obligations to the barangay

Basic Policies

- Overages discovered during the cash count shall be receipted and added to the accountability of the BT

- Cash shortages, including loss through force majeure, theft, robbery, etc. shall be deducted from the total cash account and the BT shall be held personally accountable , pending the result of the Request for Relief from Cash Accountability submitted to the COA

Basic Policies

- The BT shall deposit all his collections with AGDB intact daily or not later than the following banking day. In case of barangay where travel time to the bank is more than one day, deposit of collections shall be made at least once a week or as soon as the collections reach P10,000.00.

- Certificate of time deposit/bank book shall be in the name of the barangay.

All disbursements of public funds, except those received for specific purposes, shall be covered

by an approved General Appropriations Ordinance (GAO) authorizing appropriation for

the annual budget, the expenditure items of which shall be in accordance with Phil. Gov’t

Chart of Accounts under NGAS, in no case shall commitments exceed the approved

appropriations.

The Kagawad, designated as the Chairman of the Committee on Appropriations shall be responsible in controlling the approved appropriations and the charges/commitments made against the following funds:

General Fund 20% Development Fund Calamity Fund Sangguniang Kabataan Fund Gender and Development Fund

•The CCA shall monitor the use of appropriated funds thru the Registry of Appropriations and Commitments (RAC) maintained by fund and by class.

* The Barangay Treasurer shall prepare the RAC.

* Separate RAC shall be maintained for each fund.

* Charges (deductions) against the appropriated funds shall be based on the commitments as shown in the DV/payroll/ contract/PO/Purchase Request.

* Expenses for Personal Services(PS) and Maintenance and Other Operating Expenses (MOOE) shall be charged against respective appropriation; and

* Investments, purchase of Property, Plant and Equipment (PPE) and construction of Public Infrastructures shall be charged against the appropriations for capital outlay.

All disbursements of public funds are required to be supported by documents necessary to prove their validity, propriety and legality.

1. Disbursements by check

2. Disbursements out of cash advance for payroll

3. Disbursements out of cash advance for travel and special purpose

4. Disbursements out of the petty cash fund

All claims shall be approved by the Punong Barangay and certified as to the validity, propriety and legality of the claim.

Republic Act 9184 – The Government Procurement Reform Act (prescribes the rules and regulations for procurement activities of the government)

BAC – Bids and Awards Committee (responsible for ensuring that the barangay abides by the standards set forth by RA 9184 and its IRR)

‘It is the policy of the government that procurement of infrastructure projects, goods and consulting services shall be competitive and transparent, and therefore through public bidding.’

‘Alternative methods of procurement shall be resorted to only in the highly exceptional cases.’

1. Limited source bidding – highly specialized goods

2. Direct contracting – items proprietary in nature

3. Repeat order

4. Shopping – immediate purchase; not exceeding 50,000

5. Negotiated procurement

Negotiated procurement – the procuring entity directly negotiates a contract with a legitimate supplier in any of the following cases:

- two failed biddings

- emergency cases

- small value procurement (not more than P50,000)

- lease of real property

The basic supporting documents for typical barangay disbursements include, but are not limited to the following:

1. For payment of honoraria/salaries and other PS:- approved payroll supported by DTRs- approved appointment, oath of office,

certificate of assumption of office and statement of assets and liabilities

- approved application for leave

2. For cash advance for payroll- net amount of approved payroll for the

period

3. For grant of cash advance for travel- travel order- itinerary of travel

4. Liquidation of cash advancesPayroll Fund – paid DVs/PayrollTravel – original TO, plane/bus ticket, ORs,

boarding pass, cert. of appearance and liquidation report

Training Expenses – cert. of appearance, cert. of training and invitation to attend the training

5. For payment of maintenance and other operating expenses

a. membership dues – statement of account

b. utilities – billsc. repairs and maint. – job orders, invoices,

certificate of warranty/guarantee, pre-repair inspection report and post-repair inspection report, inspection and acceptance report, labor payroll or contract

6. For purchase of equipment, supplies, materials and other items

a. purchase requestb. purchase orderc. bidding documents

d. supplier’s invoicee. delivery receiptf. inspection and acceptance report

7. For infrastructure and reforestation projectsa. By contract (refer to RA 9184)

1. Bidding documents2. Plans and specifications3. Notice of bidding4. Contract5. Notice to proceed6. Billings of contractors7. Inspection and acceptance report8. Completion report duly verified9. Program of work

b. By Administration1. Supplies – PO, supplier’s invoice,

bidding documents, delivery receipts and IAR

2. Wages – labor payroll, DTR, contract for labor

3. Plans/program of work

8. For repairs and maintenance of PPEa. pre-repair inspection reportb. job order/contractc. supplier’s invoiced. post-repair inspection reporte. inspection and acceptance report

What are the restrictions in the disbursement of barangay funds? (RA 7160)

1. Disbursement shall not exceed the 50% of the uncollected estimated revenue accruing to the brgy funds in addition to the actual collections.

2. No obligation can be incurred or payments made without the approval of the Punong Barangay.

3. No barangay fund shall be appropriated or disbursed for religious or private purposes.

What are the restrictions in the disbursement of barangay funds? (RA 7160)

4. Expenditures for reception and entertainment shall not be charged against barangay funds.

5. No disbursement or advance payment shall be made for services or goods not yet received.

Coa Circular 2012-003 dated October 29, 2012 prescribes guidelines for the prevention and disallowance of the following expenditures:

• IRREGULAR – expenses incurred without adhering to established rules and regulations

• Acceptance of a project not in accordance with specifications

• Including names and pictures of officials in billboards and government projects

• ILLEGAL - cases of violation of laws

• Purchase of goods and services not specified in the appropriation ordinance

• Entering into a contract in excess of the appropriated amount

Coa Circular 2012-003 dated October 29, 2012 prescribes guidelines for the prevention and disallowance of the following expenditures:

• UNNECESSARY – expenditure that is not essential or can be dispensed with

• Continuous repair of vehicle and equipment already considered beyond economic repair

• Purchase of high-end electronic gadgets such as laptop

• EXCESSIVE - expenses incurred at an immoderate quantity and exorbitant price

• Overpricing of purchases characterized by inflated quotations in excess of the current market price by a 10 percent variance

• Excessive allowances to participants and expenses in relation to lakbay-aral, seminars and trainings

Coa Circular 2012-003 dated October 29, 2012 prescribes guidelines for the prevention and disallowance of the following expenditures:

• EXTRAVAGANT – incurred without restraint and economy.

• Conduct of out-of-town meeting which can be made within office premises

• Luxurious furnishings for government buildings

• UNCONSCIONABLE - expenses which no man in his right sense would make, nor a fair and honest man would accept as reasonable

• Overpricing in significant amounts exceeding 100 percent of current value

• Puchase of supplies and materials in quantities far exceeding the requirements

Requisition and Procurement

- The Brgy. Treasurer shall act as the Property Officer of the barangay

- All procurement shall be covered by APP as required in RA 9184and should be in accordance with the requirement of the Procurement Law

- Procurement of supplies shall be directly charged to MOOE

- Orders for procurement of supplies and property shall be covered with approved Purchase Request- Purchases shall be covered by approved Purchase Order

- All deliveries shall be covered by Inspection & Acceptance Report

Issuance of Supplies and Materials

- Issuances shall be covered by an approved Requisition and Issue Slip

- Recipient of small tangible items with serviceable life of more than 1 year shall be issued an Inventory Custodian Slip

- The recipient shall be responsible for the upkeep of the issued items and shall be accountable thereto during the estimated useful life of the item as determined by COA

Issuance of Property, Plant and Equipment

- Issuances shall be covered by a Property Acknowledgment Receipt which shall be renewed every 3 years or whenever there is a change of custodianship

- Any unserviceable PPE shall be returned to the BT for cancellation of the PAR and its eventual disposal

- All unserviceable items for disposal shall be summarized in the Inventory and Inspection Report of Unserviceable Property (IIRUP)

- Once reported in the IIRUP, properties shall be disposed of in accordance with regulations set by COA

- Outgoing brgy. officials/employees shall be cleared of property accountabilities by accomplishing the

Transfer of Money and Property Accountabilities

Disposal of Property, Plant and Equipment

- the Brgy Treasurer, through the Punong Barangay, shall file an application for disposal with the City Auditor who shall conduct an inspection & determination of whether the subject property is with or without value.

- The City Auditor shall indicate his findings in the IIRUP and shall forward the same to the BAC with his recommendation.

- The BAC shall appraise the property for disposal

- Valueless property shall be condemned by pounding or throwing beyond recovery and the like. The PB shall ensure its compliance.

Disposal of Property, Plant and Equipment

- Valuable property shall be disposed though public auction under the supervision of the BAC and the City Auditor.

- The Punong Barangay shall authorize the condemnation or disposal

- After disposal, the Brgy Treasurer shall return the IIRUP or the Waste Materials Report to the City Accountant

- The disposed property may now be dropped from the book of accounts

Physical Count of Property, Plant and Equipment

- A physical inventory of all barangay property shall be conducted at least once a year and the result shall be reported in the Report on the Physical Count of Property, Plant and Equipment

- The report, approved by the Punong Brgy. shall be submitted to the Commission on Audit and the City Accountant for reconciliation with the recorded Property, Plant and Equipment (PPE)

- Any unrecorded PPE shall be booked up at appraised cost

- Any unaccounted PPE shall be verified and in case of loss, the Accountable Officer shall be held accountable

Loss of Property, Plant and Equipment

- For property lost through force majeure, theft, robbery, or negligence, a Notice of Loss shall be rendered by the Accountable Officer to the Punong Brgy. through the Brgy. Treasurer

- The AO shall report the loss to the police authorities immediately upon its discovery

- The AO shall immediately notify the Auditor upon discovery of the loss

- A request for Relief from Property Accountability shall be submitted to the COA through the PB within the statutory period of 30 days

- Immediately upon receipt of the report of loss, the PB shall notify the Property Insurance Fund of the GSIS

Loss of Property, Plant and Equipment

- The reported lost property shall be dropped from the books and the AO shall be held accountable, pending receipt of the COA decision on request for Relief from Property Accountability

- Accountability for lost property shall be computed at sound value of the property

- In case the request for relief is denied, the AO shall pay for the sound value of the lost item

Disposal of Supplies and Materials

- All obsolete and unserviceable small tangible items which could no longer be used shall be turned over to the BT for disposal. The corresponding ICS shall be cancelled to relieve the user from his accountability.

Disposal of Property, Plant and Equipment- All unserviceable PPE shall also be turned over to the

BT for disposal. The corresponding PAR shall be cancelled.

- Disposal procedures shall be in accordance with the applicable rules and regulations on supply and property management for LGUs.

- The Waste Materials Report and the IIRUP shall be used

Disposal of Property, Plant and Equipment

- The PPE disposed of shall be dropped from the books only upon receipt of the report on its disposal.

Insurance of Property, Plant and Equipment

All PPE with insurable risk shall be insured with the Property Insurance Fund of the GSIS

SOURCE: Systems and Procedures Manual on the Management of Barangay Funds and Property