Disbursements Mommy

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    Receipts/Income Collections and

    Deposits System

    The Receipts/Income Collections and Deposits

    System covers the processes of acknowledging andreporting income/collections, deposits of collections

    with Authorized Government Depository Bank (AGDB)

    or through the AGDB for the account of Treasurer of thePhilippines, and recording of collections and deposits in

    the books of accounts of the agency.

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    Sources of Income of the NationalGovernment

    The income of the National Government are

    classified into general income accounts and specific

    income accounts. The following comprise the general

    income accounts, among others:

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    1. Subsidy Income from National Government

    2. Subsidy from Central Office3. Subsidy from Regional Office/Staff Bureaus4. Income from Government Services5. Income from Government Business Operations6. Sales Revenue7. Rent Income8. Insurance Income9. Dividend Income10. Interest Income11

    . Sale of Confiscated Goods and Properties12. Foreign Exchange (FOREX) Gains13. Miscellaneous Operating and Service Income14. Fines and Penalties-Government Services and

    Business Operations

    15. Income from Grants and Donations

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    The specific income accounts of national governmentagencies are classified as follows:

    1. Income Taxes

    2. Property Taxes

    3. Taxes on Goods and Services

    4. Taxes on International Trade and Transactions

    5. Other Taxes

    6. Fines and Penalties-Tax Revenue

    7. Other Specific Income

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    Methods of Accounting for IncomeNational government agencies adopt the following accounting

    methods of recording income:

    1. Accrual Method - Accrual method of accounting shall beused by national government agencies when income isrealized (earned) during the accounting period regardlessof cash receipt. Accounts receivable is set up and thegeneral or specific income accounts according to natureand classification are credited.

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    2. Modified Accrual Under the modified accrual basis,income of an agency is recorded as Deferred Credits toIncome and the appropriate receivable account is debited.

    The income account is recognized upon receipt ofcollection and the Deferred Credits to Income account isadjusted accordingly.

    3. Cash Basis - Cash basis of accounting shall be used for all

    other taxes, fees, charges and other revenues whereaccrual method is impractical. The income account iscredited upon collection of the cash or its equivalent.

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    Fines and PenaltiesFines and penalties, either on tax revenues or

    other specific income accounts, shall be recognized as

    income of the year these were collected.

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    1. Refund of cash advances - When cash advances for

    official travels are granted, the account Due fromOfficers and Employees is debited and whenrefunds are made, the same account is credited.Cash advances for salaries and wages shall be

    recorded as debits to the account Cash-DisbursingOfficers and any refunds thereof shall be credited tothe same account.

    O

    ther ReceiptsOther receipts of national government agencies shall becomprised of, but not limited to the following:

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    2. Receipts of performance/bidders/bail bonds -

    Performance bond posted by contractor or supplier toguaranty full and faithful performance of their contractmay be in the form of cash or certified checks or surety.Performance bond in cash or certified check shall beacknowledged by the issuance of official receipt andrecorded in the book of accounts by the Accountant thru aJournal Entry Voucher (JEV) for the purpose. In case ofsurety bond, an acknowledgement receipt shall be issuedby the authorized official.

    3. Refund for overpayment of expenses - Refunds as aresult of overpayment of expenses shall be recorded as acredit to the appropriate expense account if paid in thesame year or to Prior Years Adjustments if paid in theensuing year. This transaction shall reduce the amount of

    expense previously recorded.

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    4. Collections made on behalf of another agency orprivate companies - Collections made on behalf ofother agencies which are later remitted to them arerecorded under accounts Due to NGAs, Due to LGUsor Due to GOCCs as the case maybe. Authorized

    collections made on behalf of private entities, like sharesof proponents of Built-Operate-Transfer (BOT) Projectsare recorded as Other Payables.

    5. Inter-agency transferred funds - Cash received fromanother agency for the purpose of implementing projectsof that agency is recorded in the books as a credit toaccount Due to NGAs or Due to LGUs, as the casemaybe.

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    Deposit of Collections

    All Collecting Officers shall deposit intact all

    their collections, as well as collections turned over tothem by sub-collectors/tellers, with AGDB daily or not

    later than the next banking day. They shall record all

    deposits made in the Cash Receipts Record.

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    Reporting of Collections and Deposits

    At the close of each business day, the Collecting

    Officers shall accomplish the Report of Collections and

    Deposits (RCD). All collections shall be deposited with

    AGDB for the account of the agency or the Treasurer of

    the Philippines daily or not later than the next bankingday.

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    y Designated Staff (Daily)

    Receives cash/check from payor representing collectionbased on the Order of Payment (OP) prepared by theAccounting Unit.

    Issues Official Receipt (OR) to acknowledge receipt ofcash/check.

    Note 1 :

    Funding Checks received by the Cashier/ Collecting Officerof the RO/OU for its operational requirements shall be issuedcorresponding OR..

    Cash Unit

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    y Designated Staff (Daily)

    Note 2

    Separate sets of ORs shall be used for the RA and NG Books.

    Note 3

    The OR shall be prepared in three copies and shall bedistributed as follows:

    Original - PayorCopy 2 - To be attached to the Report of Collections andDeposits (RCD)

    Copy 3 - Cash Unit file

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    y Designated Staff (Daily)

    Records collections in the Cash Receipts Record (CRR).

    Note 4

    Separate CRR shall be maintained for collections under theRA and NG Books.

    PreparesDeposit Slip (DS) in three copies.

    Note 5

    The DS shall be distributed as follows:Original - AGDB

    Copy 2 - To be attached to RCD

    Copy 3 - Cash Unit file

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    y Designated Staff (Daily)

    Deposits collections with AGDB.

    Note 6

    Collections pertaining to NG Books shall be deposited with

    the AGDB for the account of the Treasurer of the Philippines

    Based on the validated DS from the AGDB and copy ofthe ORs on file, prepares Report of Collections and

    Deposits (RCD) in two copies. Initials on the RCD andforwards the same together with Copy 2 of the ORs andDS to the Head of the Cash Unit for review andsignature

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    y Head of the Cash UnitReviews and signs the RCD. Forwards original of RCD,

    Copy 2 of the ORs and DS to the Designated Staff forsubmission to the Accounting Unit.

    Note 7

    The RCD shall be distributed as follows:

    Original - Accounting Unit together with Copy No. 2of the ORs and DS - to support the JEV

    Copy 2 - Cash Unit file

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    Disbursements DefinedDisbursements constitute all cash paid out

    during a given period either in currency (cash) or

    by check. It may also mean the settlement of

    government payables/obligations by cash or by

    check. It shall be covered by Disbursement

    Voucher (DV)/Petty Cash Voucher (PCV) or

    payroll.

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    Basic Requirements for DisbursementsThe basic requirements applicable to all types of disbursementsmade by national government agencies are as follows:

    1. Existence of a lawful and sufficient allotmentcertified as available by the Budget Officer;

    2. Existence of a valid obligation certified by the ChiefAccountant/Head of Accounting Unit;

    3. Legality of transactions and conformity with laws,rules and regulation;

    4. Approval of the expense by the Chief of Office or byhis duly authorized representative; and

    5. Submission of proper evidence to establish the claim.

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    Disbursements System

    The Disbursements System involves the

    preparation and processing of disbursement

    voucher (DV); preparation and issuance of check;

    payment by cash; granting, utilization, and

    liquidation/replenishment of cash advances.

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    Certification on DisbursementsDisbursements from government funds shall require the followin