DILG BNEO Presentation

Definition of Terms

Disbursements

refer to all cash paid out during a given period

settlement of government expenditures/payables by cash or by check

represent the movement of cash from an AGDB or from the Barangay Treasurer/authorized disbursing officer to the final recipient

include the amount actually issued/expended for goods delivered or services rendered whether paid or not.

EXPENSES

Modes of Disbursements

1. By Check

Commercial checks for disbursements covered by deposit with Authorized Government Depository Bank (AGDB).

Modes of Disbursements

2. By Cash (thru Barangay Treasurer/AO) disbursements out of cash advances

given to BT/AO for specific purpose and for personal services.

disbursements made by Petty Cash Custodian out of his Petty Cash Fund.

Existing rules and regulations require that all disbursements of

public funds be supported by documents necessary to prove

their -

Validity Propriety Legality

Operating Policies on Disbursements


1. Disbursements by Check

a. All disbursements shall be covered by duly processed and approved DVs/payrolls;

b. The DVs/payrolls shall be prepared by the BT;

c. The BT shall be responsible for paying claims against the Barangay;

d. All claims shall be approved and certified by the Punong Barangay (PB) as to validity, propriety and legality of the claim. In case of claim chargeable against SK Fund, the Chairman, SK shall initial under the name of the PB.

e. Claims are forwarded to the office of the Municipal Accountant for the issuance of Accountant’s Advice.


f. Payments shall be drawn against the depository account maintained with depository bank by the Barangay;

g. The check shall be issued in the name of the payee as indicated in the DV/payroll;

h. The check shall be signed by the BT and countersigned by the PB;


2. Disbursements out of cash advance for payroll

a. Cash payments shall be made out of the cash advance given to the BT/AO;

b. The cash advance shall be used solely for payment of salaries, honoraria, and other allowances due the barangay officials and employees;



c. The cash advance shall not be used for encashment of checks or for liquidation of previous cash advances;


d. The cash advance shall be equal to the net amount of the payroll corresponding to the pay period;

e. The cash advance shall be liquidated within five (5) days after the end of the pay period. Any unclaimed honoraria/salaries/ allowances shall be refunded to close the account;



f. Succeeding cash advance shall be granted only after full liquidation of the previous cash advance.



3. Disbursements out of cash advance for travel and special purpose/time-bound undertaking

a. For local/foreign travel, liquidation shall be done within a period of 30/60 days upon return to the personnel’s workstation;


3. Disbursements out of cash advance for travel and special purpose/time-bound undertaking

b. Cash advance for special purpose/ time-bound undertaking shall be liquidated upon accomplishment of the purpose for which it was granted;


3. Disbursements out of cash advance for travel and special purpose/“time-bound undertaking”

c. Excess cash advance shall be refunded and an OR shall be issued by the BT;

d. The Liquidation Report with appropriate supporting documents shall be submitted to the BT, who in turn shall submit it to the City/Municipal Accountant for recording in the books on or before the 5th day of the following month.


a. Approved payroll supported by Daily Time Record (DTR);

b. Minutes of Meeting of the SB duly signed by the members of the SB and Barangay Secretary;

c. Approved application for leave (for leave with pay);

d. Approved Appointment, Oath of Office; Certificate of Assumption to Office, and Statement of Assets and Liabilities for newly hired employees (for first claim).

Basic supporting documents for barangay disbursements:

1. For payment of salaries/honoraria and other personal services

Basic supporting documents for barangay disbursements:

2. For cash advance for LABOR PAYROL

a. Approved payroll for the period

b. Accomplishment Reports

c. Pictures

d. Program/Drawings

3. For grant of cash advance for travel

a. Travel Order

b. Itinerary of Travel

c. Letter of invitation/communication

Statement of Accounts/ Bill of the organization

Basic supporting documents for barangay disbursements

4. For payment of maintenance and other operating expenses

a. Membership Dues

b. Utility and Communication Expenses

Bills

Inspection and Acceptance Report (IAR)


Job Orders, Invoices, Certificate of Warranty/ Guarantee

c. Repairs and Maintenance -

Pre-repair Inspection Report and Post-repair Inspection Report

Labor Payroll (for repairs undertaken by administration) or contract (for repairs undertaken by contract)

Waste Materials Report Procurement Documents

a. Purchase Request

b. Purchase Order

c. Procurement /Bidding documents (if through bidding)

d. Supplier’s Invoice

e. Delivery Receipt or the “Receipt” portion of Supplier’s Invoice duly signed

f. Inspection and Acceptance Report


5. For purchase of equipment, supplies and other items (refer to RA 9184)

6. For Infrastructure and Reforestation Projects

Bidding documents Plan and specifications Notice of Bidding Contract Notice to proceed Billings of contractors IAR Duly verified Contractor’s Project Accomplishment/ Completion

Report Program of Work, Pictures

a. By Contract


6. For Infrastructure and Reforestation Projects

b. By Administration


Supplies – PO, Suppliers’ Invoice, Bidding documents or equivalent, Delivery Receipts and IAR

Wages – Labor payroll, DTR and contract for labor

Plans/Program of Work

b. Travel

Basic supporting documents to barangay disbursements

7. Liquidation of cash advancesa. Payroll Fund

• paid DVs/payroll

• original of the Travel Order• plane/bus ticket or its equivalent• ORs, if any• boarding pass• Certificate of Appearance • Liquidation Report


c. Training Expenses• Certificate of Appearance

• Certificate of Training

• Invitation to attend the training

Recording Disbursements

To adequately monitor the accountability of the Barangay Treasurer/Accountable Officer

on the disbursements of barangay funds, appropriate documents have to be submitted to the Barangay Record Keeper to serve as

bases in recording disbursements in the Registers and in the preparation of the

necessary reports.

1. Disbursements by Checks

a. All checks issued, including cancelled ones shall be recorded by the BT in correct numerical sequence in the Summary of Checks Issued (SCkI);

b. Recordings shall be based on the original paid DVs/Payrolls supported with carbon copy of the checks issued and other supporting documents;

Recording Policies on Disbursements


c. Recordings in the SCkI shall be done by the BT daily;


e. The SCkI shall be submitted to the Barangay Treasurer (BT) weekly.

d. Daily, the SCkI shall be sub-totaled and the sub-total shall be recorded in the Cash on Hand and in Bank Register (CHBReg); and


a. Cash advances for payroll shall be recorded by the BT in the Cash Disbursements Register (CDReg) based on the SCkI submitted

b. All payments out of cash advances for payroll shall be recorded by the BT in the Summary of Cash Payments (SCP);

c. Recording in the SCP shall be based on the paid DVs/Payrolls;


2. Disbursements out of cash advance for payrol

d. The SCP shall be submitted to the BT supported by original paid DVs/Payrolls; and

e. Liquidation of cash advance for payroll shall be made by the BT by submitting the SCP together with paid DVs/Payrolls.


3. Disbursements out of cash advance for travel and special time-bound undertaking

a. Liquidation of cash advances shall be supported by Liquidation Report (LR) and pertinent documents; and

b. The LR shall be submitted by the AO to the City/Municipal Accountant thru the BT to serve as basis in recording the liquidation in the books.


All disbursements shall be reported to the City/

Municipal Accountant for recording in the barangay

books.

Reporting Disbursements


a. The BRK shall record check disbursements in the Check Disbursements Register (CkDReg) weekly based on the certified Summary of Checks Issued (SCkI);

b. At the end of each month, CkDReg shall be totaled, balanced, ruled, recapitulated and certified; and

Reporting Policies on Disbursements


c. The BT shall submit the CkDReg together with the SCkI to the City/ Municipal Accountant for recording of the checks issued in the books on or before the 5th day of the following month.


2. Disbursements in Cash

a. The BT shall record the cash disbursements in the Cash Disbursements Register (CDReg) based on the certified Summary of Cash Payments (SCP);

b. At the end of the month, the CDReg shall be totaled, balanced, ruled, recapitulated and certified; and


2. Disbursements in Cash

c. The BT shall submit the CDReg to the City/Municipal Accountant for recording of the payments made in the books and posting of the transactions to the SL maintained for the BT/AO on or before the 5th day of the following month.


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

SUPPLIES & MATERIALS,

PROPERTY, PLANT & EQUIPMENT,

PUBLIC INFRASTRUCTURES and REFORESTATION PROJECTS

In the acquisition and disposal of supplies in the barangay, the general rule is applied:

The General Rule

Acquisition of supplies should be through public bidding and those that have become unserviceable or no longer needed shall be sold whenever applicable, at public auction subject to applicable rules and regulations

Policies on Requisition and Procurement

a. The BT shall act as the Property Officer responsible for the receipt, upkeep, issuance and physical inventory of barangay property;

b. All procurement shall be covered by Approved Procurement Plan(APP);

On or before the 15th day of July of every year, the Punong Barangay shall prepare an Annual Procurement Plan for the ensuing year which shall contain the following:

Itemized list of the estimated quantity of supplies needed for such year;

A complete description as to kind and quality; Estimated cost Balance on hand

ANNUAL PROCUREMENT PLAN

c. Total estimated cost of the APP shall not exceed the total appropriations authorized for the acquisition of supplies or property;


d. All procurement shall be in accordance with the requirements of RA 9184, the Procurement Law;

Revised Implementing Rules and Regulations

Republic Act 9184

Procurement Planning (Sec. 7)

◦End – user shall prepare

APP (Annual Procurement Plan) BAC shall finalize modes of

procurement under the proposed APP

Revised IRR - RA 9184

COMPETITIVE BIDDING (Sec. 10)

GENERAL RULE:All procurement shall be done through competitive bidding,

except as provided in Rule XVI of this IRR(Alternative Modes of Procurement)


Observers (sec. 13)

◦Allows observers from cooperatives

◦Requires 3 days prior written notice for invitation of observers

◦Requires observers to inhibit in case of actual or potential conflict of interest

◦Access to documents upon signing of confidentiality agreement


Advertisement/Posting (Sec. 21.2)◦At least ONCE in one (1) newspaper of

general nationwide circulation(for more than 2M of goods & more than 5M for infras)

◦PHILGEPS Website for Seven (7) calendar days starting on the date of advertisement

◦Posted at conspicuous place for Seven (7) calendar days (certified by the head of BAC Secretariat of the procuring entity)


Alternative Methods of Procurement (Secs. 48 to 53)

◦Limited Source Bidding (Sec. 49)

◦Direct Contracting (Sec. 50)

◦Repeat Order (Sec. 51)


Shopping (Sec. 52) a. Unforeseen Contingencies b. Ordinary or regular office

supplies



◦Negotiated Procurement (Sec. 53) 1. Two Failed Biddings

2. Emergency Cases (during a state of calamity or when time is of the essence arising from natural or man-made calamities)



◦Negotiated Procurement (Sec. 53) 3. Take-Over of Contracts

4. Adjacent or Contiguous Projects

5. Agency to Agency e.g. Procurement of Supplies to PS-DBM



◦Negotiated Procurement (Sec. 53) 6. Procurement Agent

e.g. Request other Agency to undertake procurement activities for them

7. Highly Technical Consultants

IRR Revisions


◦Negotiated Procurement (Sec. 53) 8. Defense Cooperation Agreement 9. Small Value Procurement 10. Lease of Real Property 11. NGO Participation 12. Community Participation 13. United Nations Agencies

IRR Revisions

COMMONLY USED MODES OF PROCUREMENT FOR BARANGAYS

1. Shopping (Sec. 52)a. Unforeseen Contingenciesb. Ordinary/Regular Supplies

2. Negotiated Procurement (Sec 53) under:a. Two Failed Biddings (Sec. 53-1)c. Emergency Cases (Sec 53 -2)b. Small Value Procurement (Sec. 53-9)

IRR Revisions


◦THRESHOLD AMOUNT FOR UNFORSEEN CONTINGENCIES, ORDINARY OR

REGULAR SUPPLIES AND SMALL VALUE PROCUREMENT

BARANGAY = P 50,000.00


Terms and Conditions for the use of Alternative Methods

In all instances, the most advantageous price for government shall be obtained ( Sec. 48.1)

Splitting of contracts is not allowed (Sec. 54.1)


Posting may be dispensed with,EXCEPT for:

a. Shopping [Sec. 52.1(b)] b. Two-failed biddings [Sec. 53.1] c. Small Value Procurement [ Sec. 53.9]


Performance and Warranty Securities necessary except:

a. Shopping [Sec. 52] b. Emergency Cases [Sec. 53.2] c. Small Value Procurement [ Sec. 53.9] d. Lease of Real Property[Sec. 53.10] e.Procurement from UN Agencies[Secs. 53.13]


e. Procurement of supplies shall be directly charged to MOOE

f. Procurement of PPE and construction of Public Infrastructures shall be charged against appropriations for CO


g. Request for procurement of supplies and property shall be covered by approved Purchase Requests (PR);

h. Purchases shall be covered by approved Purchase Orders (PO);


i. All deliveries shall be covered by IAR and shall be inspected by the Inspection Committee headed by BT with a designated Kagawad as member; and

j. The supplies and property inspected shall be accepted by BT.


a. Issuance of supplies and materials shall be covered by an approved Requisition and Issue Slip (RIS);

b. For accountability purposes, the recipient of small tangible items with serviceable life of more than one year shall be issued an Inventory Custodian Slip (ICS); and

Policies on Issuance of Supplies and Materials

c. The recipient shall be responsible for the upkeep of the issued small tangible items and shall be accountable thereto.

Policies on Issuance of Supplies and Materials

a. Issuance of property to end-user shall be covered by Property Acknowledgement Receipt (PAR) which shall be renewed at least every three years;

b. Any unserviceable PPE shall be returned to the BT for cancellation of the PAR

Policies on Issuance of PPE

c. Outgoing barangay officials/staff shall be cleared of money and property accountabilities by accomplishing the Transfer of Money and Property Accountabilities.

Policies on Issuance of PPE

Inventory and Turn-over of Barangay Financial Records and Properties

DILG MC 2010 – 127

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

Policies on Physical Count of PPE

b. A Committee headed by the PB or his authorized representative shall conduct the physical count of PPE owned by the barangay;


c. The RPCPPE shall be submitted to the City/Municipal Accountant for reconciliation with the recorded PPE;

d. Any unrecorded PPE shall be booked

up at appraised cost, and

e. Any unaccounted PPE shall be verified and the AO shall be held accountable in case of loss.


a. For property lost through force majeure, theft, robbery, or negligence, a Notice of Loss shall immediately be rendered by the AO to the PB through the BT;

b. The AO shall report the loss to the police authorities immediately upon its discovery;

Policies on Loss of PPE

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

c. The AO shall immediately notify the Auditor upon discovery of the loss;


e. Immediately upon receipt of the report

of loss, the PB shall notify the Property Insurance Fund Division of GSIS for the recovery of insurable value of the lost asset;

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


g. Accountability for lost property shall be computed at sound value of the property; h. Sound value is computed at replacement cost less accumulated depreciation based on replacement cost; and

i. In case the request for relief is denied, the AO shall pay the amount equivalent to the sound value of the lost item.


Affidavit of accountable officer containing a statement of the facts and circumstances of loss;

Affidavit of two (2) disinterested persons cognizant of the facts and circumstances of loss;

Final investigation report of the office or department head and proper government investigating agency;

A list & description including book value, date acquired etc., certified by the barangay treasurer.

In case of loss of barangay property occurring in transit or due to calamity, the following documents are necessary to be relieved of accountability:

a. 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 accountability;

b. All unserviceable PPE shall be turned over to the BT for cancellation of previously issued PAR and for subsequent disposal of the items;

Policies on Disposal of Supplies and Materials and PPE

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

d. The Waste Materials Report (WMR) and the IIRUP shall be prepared ; and

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

Policies on Disposal of Supplies and Materials and PPE

All PPE with insurable risk shall be insured with the Property Insurance Fund of the Government Service Insurance System (GSIS).

Policies on Insurance of PPE

RECORDING

SUPPLIES & MATERIALS,

PROPERTY PLANT & EQUIPMENT (PPE),

PUBLIC INFRASTRUCTURES and REFORESTATION

PROJECTS

a. The recording of procurement and issuance of Supplies and Materials, PPE, Public Infrastructures and Reforestation Projects is necessary for the proper documentation of assets of the barangay and in monitoring their utilization/location; and

POLICIES ON RECORDING SUPPLIES & MATERIALS, PPE,PUBLIC INFRASTRUCTURES and REFORESTATION PROJECTS

Policies on Recording Supplies and Materials

b. The disposal and loss must also be recorded to effect the reduction in the books.

c. The BT shall maintain a Supplies Logbook to record the receipts and issuances; and

Policies on Recording PPE

Property, Plant and Equipment Register (PPEReg) shall be used to record the PPE owned by the barangay, including their location;

Policies on Recording the Disposal of Supplies and Materials and PPE

a. Supplies and Materials and PPE for disposal shall be reported in the Waste Material Report (WMR) and Inventory and Inspection Report of Unserviceable Property (IIRUP);

b. The disposal of PPE shall be recorded in the PPEReg maintained by the BT as a reduction from the asset of the barangay based on the IIRUP submitted by the BT.

Policies on Recording Loss of Supplies and Materials and PPE

a. Loss of supplies and materials shall be recorded in the Supplies Logbook as a reduction from the stocks; and

b. Loss of PPE shall be recorded in the PPEReg maintained by the BT as a reduction from the assets of the barangay based on the Notice of Loss submitted by the AO to the PB thru the BT.

Policies on Reporting PPE

a. A physical count of all PPE shall be conducted at least once a year by an inventory committee headed by the PB as chairman or his authorized representative and BT as member;

b. Upon completion of the physical inventory, a Report on the Physical Count of Property, Plant and Equipment (RPCPPE) shall be prepared by the inventory team;


c. The RPCPPE shall be submitted to the City/Municipal Accountant for reconciliation with the recorded PPE;

d. Unserviceable items returned by end user shall be summarized in the Inventory and Inspection Report of Unserviceable Property (IIRUP);


e. The disposal team created by the PB shall recommend the mode of disposition; and

f. The PB shall approve the disposal.

"It is not only what we do,

but also what we do not do, for which we

are accountable."

-Moliere

89

Systems and Procedures Manual on the Management of Barangay Funds and

Property

90

The Budget Accounting Process

Approved Budget (GAO)

DV/ Payroll/PR /PO/

Contract

SACBCity/Municipal Budget OfficeCSACB

RAC

91

“No money shall be paid out of the treasury except in pursuance of an appropriation made by law.”

Sec. 29, (1) of the Constitution provides:

92

AppropriationsAppropriations – are amounts in the annual or supplemental budget that are authorized by the Sanggunian or legislative body to be obligated or spent for the undertaking of a particular function, program, activity or project, for which services have been rendered or goods delivered.

Definition of Terms

93

CommitmentsCommitments – are amounts earmarked

by the barangay, arising from an act of a duly authorized official which binds the barangay to the immediate or eventual payment of a sum of money.

Note: “Commitments” shall be used synonymously as “Obligations”

Definition of Terms

94

Laws, rules and regulations of the government provide that 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 Philippine Government Chart of Accounts under NGAS.

Policies

95

Unless authorized and covered by subsequent SB Resolution approving the appropriation, commitments shall not exceed the approved appropriations.

Policies

96

The Kagawad, designated as Chairman, Committee on Appropriations (CCA) shall be responsible in monitoring the approved appropriations and the charges against the following funds:

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

Policies on Appropriations

97

The CCA shall monitor the use of appropriated funds thru the Registry of Appropriations and Commitments (RAC) which shall be maintained by Fund, by class (PS, MOOE, FE and CO) with breakdown as to account classification.


98

The BT shall prepare the RAC

The CCA may examine/check anytime, the balance of appropriations and the recording in the registries.


99

1. Charges (deductions) against the appropriated funds shall be based on commitments made by the Barangay as shown in the Disbursement Vouchers/Payrolls for Personal Services, Contracts or Purchase Orders and Purchase Requests ;

Policies on Commitments

100

2. In addition to the certification in the Disbursement Vouchers Payrolls, the existence of available appropriations as reflected in the SB Resolution shall also be shown on the face of the Contracts and Purchase Orders (POs);


101

The certification of the CCA on the “existence of available appropriations” means the availability of appropriations to cover the commitment.


102

3. For all procurement including infrastructure projects, the CCA shall certify the availability of funds by stamping “Funds (Appropriations) Available” on the face of the Purchase Request (PR) and affix his signature indicating the estimated required amount on the available appropriation on the PR based on the SB Resolution authorizing the construction/ procurement; and


103


4. Expenses for Personal Services (PS), Maintenance and Other Operating Expenses (MOOE) and Financial Expenses (FE) shall be charged against respective appropriation; and

104

Investments, purchase of PPE and construction of Public Infrastructures (PI) and Reforestation Projects (RP) shall be charged against appropriations for Capital Outlay (CO).


105

- Personal Services (PS)

- Maintenance and Other Operating Expenses (MOOE)

- Capital Outlay (CO)- Financial Expenses (FE)

Major Classes of Expenditures

106

Basic principle in government finance -

No funds shall be spent without the necessary appropriations

Monitoring of the approved approp-riations of barangays and the commitments/ charges against such appropriations to prevent the incurrence of commitments/charges with insufficient or without appropriations

Policies on Monitoring of Appropriations

107

1. The following registries shall be maintained by the CCA/BT for the five funds of the barangay by class and by object of expenditures:

Registry of Appropriations and Commitments – General Fund

Registry of Appropriations and Commitments – Calamity Fund

Policies on Recording the GAO and Commitments

108

Registry of Appropriations and Commitments – 20% Development Fund

Registry of Appropriations and Commitments- Sangguniang Kabataan Fund


109

Registry of Appropriations and Commitments – Gender and Development Fund


2. Postings in the appropriations columns of the Registry of Appropriations and Commitments (RAC) shall be based on the GAO of the barangay;

110


3. Postings of commitments in the RAC shall be based on the amount of commitments/charges as certified in the Disbursement Voucher (DV), Payroll, Contract/Purchase Order (PO);

111


4. Commitments/Charges for Personal Services (PS), Maintenance and Other Operating Expenses (MOOE), Financial Expenses (FE) and Capital Outlay (CO) shall be recorded in their respective RAC for the General Fund (GF);

112


5. Commitments/Charges against the Calamity Fund (CF), 20% Development Fund (DF), Sangguniang Kabataan Fund (SKF) and Gender and Development Fund (GDF) shall be recorded in their respective RAC with a detailed breakdown of expenditures;

113

6. The balance of appropriations for PS, MOOE, FE and CF shall be reverted/closed at the end of the year and shall not be made available for commitments/charges after the calendar year unless otherwise authorized to be retained as continuing appropriations;


114

7. Balance of appropriations for CO, 20% Development Fund and SK Fund, however, shall be valid until fully spent or until the project is completed. The balance, if any, shall be forwarded to the RAC of the following year.

Policies on Recording and the GAO and Commitments

115

The Status of Appropriations, Commitments and Balances (SACB) shall be prepared to check on the utilization of the appropriated funds of the barangays. To comply with the requirement and to facilitate the work of the City/Municipal Budget Officer, the basic policies in reporting the General Appropriation Ordinance (GAO) and the commitments are as follows:

Policies on Reporting the GAO and Commitments

116

1. The CCA/BT shall close and certify the correctness of entries in the RACs at year end


117

2. The CCA/BRK shall prepare the Status of Appropriations, Commitments and Balances (SACB) for Current Legislative Appropriations and Continuing Appropriations for the barangay based on the RACs for the five funds.


118


3. The SACB shall be submitted annually to the City/Municipal Budget Officer on the 5th day of January of the ensuing year for review and consolidation with all the SACB of the different barangays in the city/municipality.

DILG BNEO Presentation

Documents

Transcript of DILG BNEO Presentation