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Local Fiscal Management

and
Fund Utilization

Resource Speaker: Ms. NILDA V. GENEROSO


Provincial Treasurer
Negros Occidental
Concept of Funds

Introduction

 In line with the increased fiscal responsibility pursuant to


good governance of local funds, it is incumbent upon the
Local Treasurers and other fiscal officers to embrace and
apply effective fund management practices benchmarked
from the private sector in the daily operations of local
government units.
Concept of Funds

Introduction

 Governance in the local context is how decisions are made and


implemented at the local level and by whom.

 Good governance is viewed as the exercise of economic, political


and administrative authority to manage a country's/local
government's affairs at all levels.

It comprises mechanisms, processes, and institutions through which


citizens and groups articulate their interests, exercise their legal
rights, meet their obligations, and mediate their differences.
 Good governance is about efficiency in the management of public
funds, demanding high standards of integrity, transparency and
accountability. Thus, Local Treasurers need to continuously update
their knowledge and skills on their specific area of good governance,
which is fund or cash management.
Concept of Funds

Introduction

 Fund
A sum of money or other resources set aside for the purpose of
carrying out specific activities or attaining certain objectives in
accordance with special regulations, restrictions or limitations, and
constitutes an independent fiscal and accounting entity.
[Sec. 3(1), PD1445; Sec. 2(1), Title I(B), Bk V, 1987 Adm. Code; Sec. 306(h), RA 7160]

 Government Funds
Government funds include public moneys of every sort and other
resources pertaining to any agency of the government.
[Sec. 3(2), PD 1445; Sec. 2(2), Title I(B), Bk V, 1987 Adm. Code]
Concept of Funds

Section 305 LGC (Sec. 138 GAAM vol. 1; Sec. 4 PD 1445)


SECTION 305. Fundamental Principles. - The financial affairs, transactions, and
operations of local government units shall be governed by the following
fundamental principles:
a) No money shall be paid out of the local treasury except in pursuance of
an appropriations ordinance or law;
b) Local government funds and monies shall be spent solely for public
purposes;
c) Local revenue is generated only from sources expressly authorized by
law or ordinance, and collection thereof shall at all times be
acknowledged properly;
d) All monies officially received by a local government officer in any
capacity or on any occasion shall be accounted for as local funds, unless
otherwise provided by law;
e) Trust funds in the local treasury shall not be paid out except in fulfillment
of the purpose for which the trust was created or the funds received;
f) Every officer of the local government unit whose duties permit or require
the possession or custody of local funds shall be properly bonded, and
such officer shall be accountable and responsible for said funds and for
the safekeeping thereof in conformity with the provisions of law;
Concept of Funds

Section 305 LGC (Sec. 138 GAAM vol. 1; Sec. 4 PD 1445)

g. Local governments shall formulate sound financial plans, and the


local budgets shall be based on functions, activities, and projects, in
terms of expected results;
h. Local budget plans and goals shall, as far as practicable, be
harmonized with national development plans, goals, and strategies in
order to optimize the utilization of resources and to avoid duplication
in the use of fiscal and physical resources;
i. Local budgets shall operationalize approved local development plans;
j. Local government units shall ensure that their respective budgets
incorporate the requirements of their component units and provide
for equitable allocation of resources among these component units;
k. National planning shall be based on local planning to ensure that the
needs and aspirations of the people as articulated by the local
government units in their respective local development plans are
considered in the formulation of budgets of national line agencies or
offices;
l. Fiscal responsibility shall be shared by all those exercising authority
over the financial affairs, transactions, and operations of the local
government units; and
Types of LGU Funds

Classification and Basic Maintenance of Funds

Government funds are generally classified into:

1. Local Funds (General Fund)

The General fund shall consist of monies and resources of the


local government which are available for the payment of
expenditures, obligations or purposes not specifically declared
by law as accruing and chargeable to, or payable from, any
other fund. (Sec. 308, RA 7160).
Types of LGU Funds

Classification and Basic Maintenance of Funds

2. Special Funds

a. Special Education Funds (SEF)


SEF shall consist of the respective shares of provinces, cities,
municipalities and barangays in the proceeds of the additional
tax on real property to be appropriated for purposes prescribed
in Section 272 of the Local Government Code.
b. Trust Funds
Trust funds shall consist of private and public monies which
have officially come into the possession of the local
government or of a local government official trustee, agent or
administrator, or fulfillment of some obligation. A trust fund
shall only be used for the specific purpose for which it was
created or for which it came into the possession of the local
government unit (Sec. 309, RA 7160).
Types of LGU Funds

Classification and Basic Maintenance of Funds

Special Accounts in the General Fund of the Local Government Units


caters to the following:

• Public utilities and other economic enterprises;


• Loans, interests, bond issues, and other contributions for specific
purposes; and
• Development projects funded from the share of the local government
unit concerned in the internal revenue allotment and such other special
accounts which may be created by law or ordinance

Profits or income derived from the operation of pubblic utilities and other
economic enterprises, after deductions for the cosdt of improvement, repair
and other related expenses of the public utility or economic enterprise
concerned, shall first be applied for the return of the advances or loans
made therefor. Any excess shall form part of the general fund of the local
government unit concerned (Sec. 313, RA 7160)
Fundamental Principles Governing Utilization of Local Funds

Basic Maintenance of Funds

• Separation of Books and Depository Accounts

Local accountants and treasurers shall maintain separate books


and depository accounts, respectively, for each fund in their
custody or under such rules and regulations as the Commission
on Audit may prescribe.

Legal Basis: (Sec. 310, LGC)


Fundamental Principles Governing Utilization of Local Funds

Basic Maintenance of Funds

• Depository Accounts

Local treasurers shall maintain depository accounts in the of


their respective local government units with banks, preferably
government-owned, located in or nearest to their respective
areas of jurisdiction. Earnings of each depository account shall
accrue exclusively thereto.

Legal Basis:(Sec. 311, LGC)


Fundamental Principles Governing Utilization of Local Funds

Basic Maintenance of Funds

• Separation of Personal Money from Public Funds.

Local treasurers and other accountable officers shall keep


personal monies separate and distinct from local public funds in
their custody and shall not make profit out of public money or
otherwise apply the same to any use not authorized by law or
ordinance.

Legal Basis:(Sec. 312, LGC)


DISBURSEMENT OF LOCAL FUNDS

General Principles Governing Fund Disbursements

 The Official Fiscal Year


The Official Fiscal Year of local government units shall be the period
beginning with the first (1st) day of January and ending with the thirty-first (31st) day of
December of the same year.

 Disbursements in Accordance with Annual or Supplemental


Appropriations
Disbursements shall be made in accordance with the ordinance authorizing the
annual or supplemental appropriations without prior approval of the sanggunian
concerned. Within 30 days after the close of each month, the local accountant
shall furnish the sanggunian with such financial, statements as prescribed by the
COA. In the case of the year-end statement of accounts, the period shall be 60
days after the thirty-first (31st) of December.
DISBURSEMENT OF LOCAL FUNDS

General Principles Governing Fund Disbursements

 Use of Appropriated Funds and Savings


Funds shall be available exclusively for the specific purpose for which they have
been appropriated. No ordinance shall be passed authorizing any transfer of
appropriations from one item to another. However, the local chief executive or
the presiding officer of the sanggunian concerned may, by ordinance be
authorized to augment any item in the approved annual budget for their
respective offices from savings in other items within the same expense class of
their respective appropriations.
 Restriction Upon Limit of Disbursements
Disbursements in accordance with appropriations in the approved annual budget
may be made from any local fund in the custody of the treasurer, but the total
disbursements from any local fund shall in no case exceed fifty percent (50%) of
the uncollected estimated revenue accruing to such local fund in addition to the
actual collections: Provided, however, That no cash overdraft in any local fund
shall be incurred at the end of the fiscal year.
DISBURSEMENT OF LOCAL FUNDS

General Principles Governing Fund Disbursements

 Prohibitions on Disbursements:
• Advance Payments - No money shall be paid on account of any
contract under which no services have been rendered or goods
delivered
• Expenditures for Religious or Private Purposes - No public
money or property shall be appropriated or applied for religious or
private purposes.
• Expenses for Reception and Entertainment - No money
shall be appropriated, used, or paid for entertainment or reception
except to the extent of the representation allowances authorized by law
or for the reception of visiting dignitaries of foreign governments or
foreign missions, or when expressly authorized by the President in
specific cases.
DISBURSEMENT OF LOCAL FUNDS
Basic Requirements for Disbursements from the General Fund and
Special Funds.
 Certification in the Disbursement Voucher by the Local Accountant

 Certification in the Disbursement Voucher by the Local Treasurer

 Approval by the Local Chief Executive, except for regularly recurring


administrative expenses

 The Disbursement Voucher for expenditures appropriated for the operation


of the sanggunian shall be approved by the Vice-Governor or the Vice-
Mayor of the province/city or municipality, as the case may be.

 The disbursements for Special Education Fund (SEF) shall be approved by


the Local Chief Executive as Chairperson of the Local School Board

 Trust Funds - should be utilized strictly in compliance with the provisions of


the Memorandum of Agreement (MOA), Funds Received from these sources
shall be maintained in separate bank accounts and shall never be
commingled with other funds of the LGU.
DISBURSEMENT OF LOCAL FUNDS
Modes of Disbursement

 Disbursements covered by Disbursement Vouchers and/or


Payrolls are usually paid either by check or in cash. Other
modes of disbursements include direct payments and/or bank
transfers. Ideally cash should be handled under the general
principles of the Imprest System where all payments must be
made by check and only payments in small amounts may be
made in cash through the petty cash fund.
(Sec. 172, Book III, Vol. I, GAAM)
DISBURSEMENT OF LOCAL FUNDS
Disbursement by Checks

 Upon receipt of the Disbursement Voucher for payment, the


Local Treasurer shall verify the propriety of the certifications
and approvals required therein. If complete, the Local Treasurer
shall then draw a check in payment therefor.
DISBURSEMENT OF LOCAL FUNDS
Preparation and Signing of Checks

 Checks shall be prepared and signed by the Local Treasurer and


countersigned by the Local Administrator (NGAs for LGUs, Sec 40)

 In case of temporary absence or incapacity of the aforesaid officials


these duties shall devolve upon their immediate assistants. (Sec. 345,
LGC; NGAs for LGUs, Sec. 40)

 In the case of municipalities where no Administrator has been


appointed, checks shall be countersigned by the Municipal Mayor. In
case, however, of expenditures for the operation of the sanggunian,
checks drawn thereon shall be countersigned by the provincial Vice
Governor, the city Vice Mayor, as the case may be. (Sec. 43, COA
Circular No. 92-382; NGAs for LGUs, Sec. 40)
DISBURSEMENT OF LOCAL FUNDS
Preparation and Signing of Checks

 Checks shall always be made payable to a specific person or entity


and never to “Cash” or “Bearer”. All checks shall be crossed for
deposit to the payee’s account, except checks which are payable to
government employees, financial assistance, Assistance for Individual
Crisis Situation (AICS), not exceeding P15,000.00. Unused checks shall
be kept in the vault, which shall be accessible only to the Local
Treasurer. The signing or countersigning of blank check shall not be
allowed.
DISBURSEMENT OF LOCAL FUNDS
Release of Checks

 The Local Treasurer shall release the check only to the payee or his
duly authorized representative. For purposes of releasing checks, the
Local Treasurer shall maintain a Check Register where all checks
issued shall be recorded chronologically and where the claimants shall
be required to acknowledge receipt hereof. (NGAs for LGUs, Sec. 41)

 It shall be released only when the Accountant’s Advice of Local Check


Disbursements’ has been prepared and submitted to the bank. All
checks issued shall be recorded chronologically in the Control Book of
Checks Issued/Check Register. Upon release of the check, the payee
shall be required to issue an Official receipt for the payment received
and/or affix his signature and the date of receipt of the check on the
Disbursement Voucher (Box “D”) and the Control Book of Checks
Issued. The Disbursement Voucher and the supporting documents
shall be stamped “PAID” by the Local Treasurer immediately after
claim is paid to prevent their possible re-use.
DISBURSEMENT OF LOCAL FUNDS
Reporting of Checks Issued

 Preparation of Report of Checks Issued


The checks issued including cancelled or voided checks shall be
recorded chronologically in the Report of Checks Issued which shall
be prepared daily for each fund in 3 copies by the Local Treasurer.

 Spoiled and Stale Checks


Checks may be cancelled when they become spoiled or stale. A
check is considered spoiled when it is torn, mutilated, defaced or
contains erasures/errors affecting the genuineness of material
information. On the other hand, a check is considered stale when it
is outstanding for over six months from date of issue, or as
prescribed by the government authorized depository bank.
DISBURSEMENT OF LOCAL FUNDS
Reporting of Checks Issued

 Lost Checks
A check is considered lost under the following circumstances:

 When it is misplaced, waylaid or left behind inadvertently or


negligently by the payee or holder in due course, or by the
custodian or carrier thereof, and after diligent search cannot be
found or located

 When it is lost due to fortuitous event such as fire, perils of tavel,


flood or typhoon or other causes due to force majeure and after
diligent search, cannot be found or recovered.

 When it is lost by theft or robbery. (Sec. 187 (a), Vol. I, GAAM)


DISBURSEMENT OF LOCAL FUNDS
Reporting of Checks Issued

 General Guidelines in the replacement of Lost, Destroyed and


Obsolete checks
If a check is lost, destroyed or become stale or obsolete the issuing
agency may issue a replacement check which shall be made under
such regulation in regard to issuance and payment and upon
compliance with requirements, to wit:

1. A sale and/or obsolete check shall be replaced with a new one


provided the original check is presented/surrendered for
cancellation.

2. MDS/other government check found to have been fraudulently


encashed shall be dishonored and charge back (photocopy
only to the GSB through the BTR.
(Section 190, GAAM, Vol. 1)
DISBURSEMENT OF LOCAL FUNDS
Reporting of Checks Issued

 Payment of lost or fraudulently encashed checks

When any check is lost, stolen or destroyed, the issuing officer may
issue a replacement check which shall be paid under the regulations of
the Commission on Audit in regard to issuance and payment and upon
execution of a bond to indemnify the issuing agency in such amount
and with such security as the Commission may require.

(Section 190, GAAM, Vol. 1)


DISBURSEMENT OF LOCAL FUNDS
Rules and Regulations on the Granting, Utilization and Liquidation
of Cash Advances
 General Principles
Ideally, cash should be handled under the general principles of the
imprest system, to wit:
1. Daily Receipts on collections must be deposited intact with the proper
bank.

2. All payments must be made by check

3. Only payments in small amounts may be made through the petty cash
fund. Replenishment of the petty cash fund shall be equal to the total
amount of expenditures mare therefrom.

In practice, however, there are certain instances when it may be very


difficult, impractical or impossible to make payments by check. In such a
case, payments may be made by the disbursing officer in the form of cash
through his cash advance.

COA Cir. No. 90-331 May 3, 1990


DISBURSEMENT OF LOCAL FUNDS
Disbursements Through Cash Advances

 Regular Cash Advances


• Salaries and Wages;
• Commutable
SpecialAllowances
cash
Regular Cashadvances
Advancesare arethose
thosegranted
granted
• Honoraria
on and
the other similar
explicit payments
authority of to Local
the officialsChief
and employees;
and to Cashiers, Disbursing Officers,
Executive only to duly designated disbursing
Paymasters and/or Property/Supply
• Petty operating expenses (COA Circular 2012-001, Officers
1.1.2)
officers or employees
separately forfollowing
for any of the other legally
purposes:
 Special authorized
Cash Advancespurposes such as:
• Confidential expenses; and/or
• Expenditures for activities of the agency undertaken in the field
when it is impractical to pay by check.
(Sections 46 and 47, COA Circular No. 92-382)
DISBURSEMENT OF LOCAL FUNDS

GRANTING AND UTILIZATION OF CASH ADVANCES

• Only permanently appointed officials and employees shall be granted cash advances.

• Only duly appointed or designated disbursing officers may perform disbursing functions.
Officers and employees who are given cash advances for foreign travel need not be
designated as Disbursing Officers.

• Only one disbursing officer shall be assigned/designated for a specific legal purpose.
Additional disbursing officers may be assigned/designated for the same purpose only when
fully justified by the Agency Head.

• Transfer of cash advance from one AO to another shall not be allowed.

• The cash advance shall be used solely for the specific legal purpose for which it was granted.
Under no circumstance shall it be used for encashment of checks or for liquidation of a
previous cash advance.

• The Accountant shall obligate all cash advances granted. He shall see that cash advances for
a particular year are not used to pay expenses of other years.
GRANTING AND UTILIZATION OF CASH ADVANCES

Salaries, Wages, Allowances, Honoraria and Other Similar Payments

• The cash advance shall be equal to the net amount of the payroll for a pay
period.

• The cash advance shall be supported by the following documents:

o Copy of designation by the Agency Head in case the AO is not a


disbursing officer by appointment (Attachment to initial cash
advance)

o Copy of approved application for bond (attachment to initial cash


advance)

o Payroll or list of payees with their net payments


GRANTING AND UTILIZATION OF CASH ADVANCES

Petty Operating Expenses


• The cash advance shall be sufficient for the recurring expenses of the agency for one month.
The AO may request replenishment of the cash advance when the disbursements reach at least
75% or as the need requires, by submitting a replenishment voucher with all supporting
documents duly summarized in a report of disbursements.

• The cash advance shall not be used for payments of regular expenses, such as rentals,
subscriptions, light and water and the like. Payments out of the cash advance shall be allowed
only for amounts not exceeding P5,000.00 for each transaction, except when a higher amount
is allowed by law and/or specific authority by the Commission on Audit. Splitting the
transactions to avoid exceeding the ceiling shall not be allowed.

• The cash advance shall be supported by the following documents:

- Copy of authority by the Agency Head (attachment to initial cash advance)

- Copy of approved application for bond (attachment to initial cash advance)

- Estimate of expenses
GRANTING AND UTILIZATION OF CASH ADVANCES

Field/Activity Current Operating Expenses (COE)


• The special cash advance shall be used to pay the salaries and wages of the employees and the
miscellaneous operating expenses of the activity. Payment for each transaction shall not be
subject to amount limitation. However, all payments shall be approved by the Director/Head of
field Office.

• The amount of the cash advance shall be limited to the requirements for two months. Within 5
days after the end of each month, the AO shall submit a Report of Disbursements. Additional
cash advances shall be granted on the basis of the activity budget or the requirements for two
months, whichever is lower.

• The cash advance shall be supported by following documents:

o Copy of authority by the Agency Head (attachment to initial cash advance)

o Copy of approved application for bond (attachment to initial cash advance)

o Budget for COE of the Agency field office or agency activity in the field.
GRANTING AND UTILIZATION OF CASH ADVANCES

Foreign Travel

The cash advance shall be supported by the following


documents:

• Authority to travel

• Itinerary of travel

• Authority from the Office of the President for representation


allowance
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

Liquidation of Cash Advances

1. The AO shall liquidate his cash advance as follows:

• Salaries, Wages, etc. - within 5 days after each 15 day/ end of the month
pay period.

• Petty Operating Expenses and Field Operating Expenses - within 20 days


after the end of the year; subject to replenishment during the year.

• Foreign Travel - within 60 days after return to the Philippines.

Failure of the AO to liquidate his cash advance within the prescribed period
shall constitute a valid cause for the withholding of his salary.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

Liquidation of Cash Advances

2. The AO shall prepare the Report of Disbursements (using Gen. Form No.
______) in three (3) copies and submit the same with the
vouchers/payrolls and supporting documents to the Accountant. For
payments based on receipts and invoices only, he shall also prepare a
liquidation voucher which shall be submitted with the report and the
supporting documents to the Accountant. He shall ensure that receipt of
the report is properly acknowledged by the Accountant.

3. Within 10 days after receipt of the report and supporting documents for
the AO, the Accountant shall verify the report, record it in the books and
submit the same with all the vouchers/payrolls and supporting
documents to the Auditor.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

Liquidation of Cash Advances

5. Within 30 days from receipt of the report and supporting


documents from the Accountant, the Auditor shall complete
the audit. He shall issue the corresponding Credit Notice to
the AO to inform the latter of the amount allowed in audit
and any suspensions and/or disallowances made. In case of
disallowance, a copy of the Credit Notice shall be furnished
the Accountant who shall record the restoration of the cash
advance for the amount disallowed.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

Liquidation of Cash Advances

6. The AO shall submit to the Auditor the documents to settle


his suspensions/disallowances. When the documents are
found in order, the Auditor shall lift the suspension and/or
issue another Credit Notice for the settled disallowance,
copy furnished the Accountant who shall draw a Journal
Voucher to record the credit to the cash advance. In case of
cash settlement, the AO shall present the necessary Official
Receipt to the Auditor for notation.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

Liquidation of Cash Advances

7. The Credit Notice issued by the Auditor to the AO shall be


deemed sufficient compliance with the requirements of
COA Circular No. 81-156 dated January 19, 1981 (Restating
the Requirements for the Use of the Certificate of
Settlement and Balances and Providing Guidelines on its
Issuance, Including the Accounting Treatment Thereof).

8. When a cash advance is no longer needed or has not been


used for a period of two (2) months, it must be returned to
or deposited immediately with the collecting officer.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

Liquidation of Cash Advances

9. All cash advances shall be fully liquidated at the end of each


year. Except for petty cash fund, the AO shall refund any
unexpended balance to the Cashier/Collecting Officer who
will issue the necessary official receipt.

10. At the start of an ensuing year, a new cash advance may be


granted, provided that a list of expenses against the
previous cash advance is submitted. However, when no
liquidation of the previous cash advance is received on or
before January 20, the Accountant shall cause the
withholding of the AO's salary.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

The following reports and documents are required to support the


liquidation:

• Salaries, Wages, etc. - Report of disbursements with all duly signed payrolls
and/or vouchers and all pertinent supporting documents, such as daily
time records, approved leaves of absence, etc.
• Petty Operating Expenses

 Report of Disbursements with supporting documents


 Approved Requisition and Issue Voucher with the Certificate of Emergency
Purchase, if necessary
 Receipts, sales invoices
 Certificate of Acceptance/Inspection
 Duly approved trip ticket, if for gasoline
 such other supporting documents as are required by the nature of the
expense
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

The following reports and documents are required to support the


liquidation:

• Current Operating Expenditures

 Same requirements as those for salaries, wages, etc. and petty operating
expenses, supra
 Canvass of at least three suppliers (Not required if purchase is made while on
official travel)

• Foreign Travel
 Itinerary of travel
 Certificate of travel completed
 Report on trip undertaken
 Plane, boat or bus ticket (if included in the cash advance)
 Receipts for hotel bills and incidental expenses
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

HANDLING, CUSTODY AND DISPOSITION OF THE CASHBOOK

• A newly appointed or designated AO shall start with a new cashbook,


Before discharging his duties, the new AO shall be briefed by the
Accountant and the Auditor on the proper recording of the transactions
and other matters related to his work.

• The AO shall maintain separate cashbooks for salaries, wages,


allowances, etc. and for petty operating expenses. The AO shall record
the transactions in the prescribed cashbook daily. He may record each
invoice/receipt/voucher individually or the total disbursements for the
day depending on the volume of the transactions.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

HANDLING, CUSTODY AND DISPOSITION OF THE CASHBOOK

• The AO shall reconcile the book balance with the cash on hand daily. He
shall foot and close the books at the end of each month. The AO and the
Accountant shall reconcile their books of accounts at least quarterly.

• The cashbooks shall be kept at the Office of the AO and placed inside the
safe or cabinet when not in use. It may be taken from his custody only by
the Auditor or an official duly authorized by the Agency Head, who shall
issue the necessary receipt.

• When the AO ceases to be one, the cashbook shall submitted to the


Accountant or the Treasurer (for local government units) and shall form
part of the accounting records. No clearance shall be issued to an AO if
he fails to submit the cashbook as required.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

BONDING OF ACCOUNTABLE OFFICERS

 Each accountable officer with a total cash accountability of more than


P2,000.00 shall be bonded. The amount of the bond shall depend on the
total accountability (cash and cash items) of the officer as fixed by the
Head of the Agency. In no case shall cash advances be granted in
amounts less than P2,000 each just to circumvent this requirement.

 The bonding requirements are as follows:


• Appointment and/or designation as accountable officer;
• Written character references by at least three officials of the Agency one of whom is
the Administrative and/or Legal Officer, other than the official who
appointed/designated him.
• Statement of assets and liabilities as of the end of the preceding year;

The foregoing documents shall be submitted, together with the application for bond,
to the auditor who shall fix and approve the amount of the bond and shall transmit the
same to the Fidelity Bond Division of the Bureau of the Treasury.
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

BONDING OF ACCOUNTABLE OFFICERS

 When the accountability is increased, the Accountant shall


ensure that additional bond is applied for.

 When the AO ceases to be one, the Accountant shall


immediately inform the Fidelity Bond Division of such
cessation.

 The schedule of the bonds necessary for the cash


accountability of the AO is as follows:
RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

BONDING OF ACCOUNTABLE OFFICERS


RULES & REGULATIONS ON THE GRANTING, UTILIZATION & LIQUIDATION
OF CASH ADVANCES

RESPONSIBILITY OF THE AGENCY HEAD

It shall be the responsibility of the Head of the Agency


to ensure proper granting, utilization and liquidation
of all cash advances in accordance with these rules
and regulations.
DISBURSEMENT OF LOCAL FUNDS

Reporting of Cash Disbursements

 To account for cash disbursements, from regular and special cash


advances, the Accountable/Disbursing Officer shall prepare the
Report of Disbursements and submit the original and duplicate copy
with vouchers/payrolls/petty cash vouchers to the Accountant.

 He shall ensure that the receipt of the report and supporting


documents are properly acknowledged by the Accountant.

The Accountant shall verify the report including the completeness of


the supporting documents, prepare the Journal Entry Voucher (JEV)
and record the transaction in the Cash Disbursement Journal.
(NGAs for LGUs, Sec. 46)
DISBURSEMENT OF LOCAL FUNDS
Specific Guidelines on the Grant of Cash Advance for
Payroll, Field Operating Expenses and Travel

 Documentary Requirements common to all cash advances


except for travels
 Payroll Fund for Salaries, Wages, Allowances, Honoraria and Other
Similar Payments
 Petty Cash Fund
 Field/Activity Current Operating Expenses(COE)

 Travelling Allowances
• General Guidelines
Travels shall cover only those that are urgent and extremely
necessary, will involve the minimum expenditure and are
beneficial to the agency concerned and/or country.
(EO 298, dated March 23, 2004, as amended)
DISBURSEMENT OF LOCAL FUNDS
Specific Guidelines on the Grant of Cash Advance for
Payroll, Field Operating Expenses and Travel

 Documentary Requirements on Official Local and Foreign Travel of


Local Treasurers and their Assistants –
• Local Travel:
 Travel Authority issued by the LCE
 Duly approved Itinerary of Travel
 Certification from the Accountant that the previous cash
advance has been liquidated and accounted for in books

• Foreign Travel:
 2.2.1 Funded by LGU
 2.2.2 Funded by the National Government
 2.2.3 Funded by a Foreign Institution/Country
 2.2.4 Personal Foreign Travel
DISBURSEMENT OF LOCAL FUNDS

Liquidation of Cash Advances

 General Guidelines. – The Accountable Officer shall liquidate each


cash advance within the following periods:

• Salaries, Wages, Allowances, Honoraria and other similar


payments – within 5 calendar days after the end of the pay
period.

• Field Operating Expenses – within 20 calendar days after the


end of the year subject to replenishment as frequently as
necessary during the year.
DISBURSEMENT OF LOCAL FUNDS
. Liquidation of Cash Advances
 General Guidelines. – The Accountable Officer shall liquidate each
cash advance within the following periods:

• Petty Cash Fund (PCF) – as soon as the disbursement reaches


75% or as needed, the PCF shall be replenished which shall be
equal to the total amount of expenditures made therefrom. In
case of termination, resignation, retirement or dismissal of the
PCF custodian, the remaining balance shall be liquidated
thereafter.
• Travelling Expenses – within 30 days after the return of the
official/employee concerned to his/her official station for local
travel and within 60 days after the return of the official/employee
concerned to the Philippines in the case of foreign travel.
• Special Purpose – as soon as the purpose of the cash advance
has been served.
DISBURSEMENT OF LOCAL FUNDS
Liquidation of Cash Advances

 Documentary Requirements

• Payroll Fund for Salaries, Wages, Honoraria and


other similar expenses

• Petty Cash Fund

• Field/ Activity Current Operating Expenses

• Travelling Expenses
 Local Travel
 Foreign Travel

(COA Circular 2012-001, dated June 14, 2012)


DISBURSEMENT OF LOCAL FUNDS
Guidelines on Granting of Cash Advance for Intelligence and
Confidential Expenses

 Cash advances shall be used for specific legal purpose related to CF


and/or IF. Under no circumstance shall it be used for liquidation of
the previous cash advance or be transferred from one accountable
to another.
 Required documents to support DV for the grant of cash advance for
CF and IF for a specific sector;
• For NGAs
• For GOCCs
• For LGUs

(COA-DBM-DILG-GOCCs-DND Joint Circular No. 2015-01 dated


January 8, 2015)
DISBURSEMENT OF LOCAL FUNDS

Handling, Custody and Disposition of Cash Book

 A newly appointed or designated Accountable Officer shall start with


a new cash book.

 Before discharging his/her duties, the new Accountable Officer shall


be briefed by the Local Accountant and the Auditor on the proper
recording of the transactions and other matters related to his/her
work.

Sec. 181, Book III, Vol. I, GAAM)


DISBURSEMENT OF LOCAL FUNDS
Disbursements out of Petty Cash Fund

 Petty Cash Fund shall be maintained under the Imprest System.

 The fund should be sufficient for the non-recurring, emergency and


petty expenses of the Local Government Unit for one (1) month.

 Disbursements from the Petty Cash Fund shall be through the Petty
Cash Voucher which shall be signed by the payee to acknowledge
the amount received.
Government Expenditures

 Government expenditures are classified as follows:

• Current Operating Expenditures

 Personal Services
 Maintenance and Other Operating Expenses
 Financial Expenses

• Capital Outlays
IRREGULAR

LEGAL BASIS
UNNECESSARY UNCONSCIONABLE
COA CIRCULAR
NO. 2012-003

EXCESSIVE EXTRAVAGANT
COA CIRCULAR NO. 2012-003
October 29, 2012

Updated Guidelines for the Prevention and


Disallowance of Irregular, Unnecessary,
Excessive, Extravagant & Unconscionable
Expenditures
IRREGULAR EXPENDITURES

• Expenditure incurred w/o adhering to established


rules, regulations, procedural guidelines, policies,
principles or practices that have gained recognition
in laws
• Transaction conducted in a manner that deviates or
departs from, or w/c does not comply w/ standards
set
• Transaction which fails to follow or violates
appropriate rules of procedure
IRREGULAR EXPENDITURES
EXAMPLES
 Grant of Christmas bonus, cash gift & other fringe benefits to consultants
& members of the Board who are not salaried officials of the
government (BCDA vs COA, GR No. 178160, 2/26/09)

 Loyalty service award granted to employees that have not rendered the
minimum service of ten years in government
(BCDA vs COA, GR No. 142760), 8/6/02)

 Grant of food allowance, rice subsidy and health care allowance, there is
no law authorizing such allowance
(BFAR Employees Union, RO VII vs COA, GR No. 169815, 8/13/08;
Benguet State University vs. COA, GR No. 169637, 6/8/07)
ILLEGAL EXPENDITURES
• Transactions in violation of laws
EXAMPLES:
 For widening, repairing & improving sidewalks of a privately owned
subdivision where the land it is situated has not been transferred to
the government by way of donation or acquired by the government
through expropriation (Albon vs Bayani Fernando et al., GR No.
148357, 6/30/06)

 Entering into contracts w/o covering certificates of availability of


funds issued by the Chief Accountant even if the contract is signed
by the Accountant as witness (DOH vs CVCAA, et al., GR N0s
151373-74, 11/17/05)
UNNECESSARY EXPENDITURES
• Not supportive of the implementation of the
objectives & mission of the agency relative to the
nature of its operations

EXAMPLES
 Continuous repair of vehicles & equipment already considered beyond
economic repair as evidenced by frequent breakdown and non-use after
repair
 Hiring of consultants whose functions are redundant to the respective
functions of concerned officials – hiring of procurement consultant,
financial consultant, media consultant
EXCESSIVE EXPENDITURES

• Signifies unreasonable expense or expenses


incurred at an immoderate quantity or
exorbitant price
• Expenses w/c exceed what is usual or proper
or unreasonably high and beyond just
measure or amount
• Expenses in excess of reasonable limits
EXCESSIVE EXPENDITURES
EXAMPLES
 Payment of repair of government equipment at a
cost exceeding 30 percent of the current market
price of the same or similar equipment
 Procurement of materials/items in excess of the
requirements w/c eventually expired such as
vaccines, medicines, seeds, fertilizer, pesticides,
among others.
EXTRAVAGANT EXPENDITURES
• Expenses incurred w/o restraint, judiciousness and economy
• Expenses that exceed the bounds of propriety
• Those w/c are immoderate, prodigal, lavish, luxurious,
grossly excessive and injudicious
EXAMPLES
 Purchase of wines, liquors, cigars & cigarettes except when
served during state functions and government-sponsored
international conferences and conventions
 Procurement and use of luxury vehicles (Administrative Order
No. 3, 2/27/01)
UNCONSCIONABLE EXPENDITURES

• Unreasonable and immoderate, and which no man in


his/her right sense would make, nor a fair and honest man
would accept as reasonable, and those incurred in
violation of ethical and moral standards.

EXAMPLES
 Grant of exorbitant & unreasonable bonuses, allowances
& fringe benefits to public officials and employees
 Live-in seminars in five-star hotels within an
unreasonable period of time
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization:

• Accounts Payable – Obligations of government agencies,


whether current year or prior years, for which services had been
rendered, goods have been delivered or projects have been
completed and accepted.
(COA & DBM Joint Circular No. 2013-1 dated March 15, 2013)

• Accountable Officer – the officer of any government agency


whose duties permit or require the possession or custody of
government funds or property,
(Local Treasurer, Collecting Officer, Disbursing Officer, Cashier,
Paymaster, Property Officer and others
(COA Circular No. 2009-006 dated September 15, 2009)
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization:

• Allotment – An allotment is an authorization issued by the Local


Chief Executive to a department office of the local government unit,
which allows it to incur obligations for specified amounts within the
appropriations ordinance (p. 87, UBOM for LGUs), (Sec. 8, COA
Cir. 2002-003 dated June 20, 2002). The authorization is called the
Allotment Release Order (ARO), which is a specific authority to
incur obligations not exceeding the amount for the specific purpose
indicated. (p. 88, UBOM for LGUs).

• Appropriation – refers to an authorization made by ordinance,


directing the payment of goods and services from local government
funds under specified conditions or for specific purposes. (Sec. 306
(b), LGC ) (Sec. 140, Book III, Vol. I, GAAM)
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization:

• Cash – Cash means money, which is the standard medium of


exchange in business transactions. Cash includes “money and
other negotiable instrument that is payable in money and
acceptable by the bank for deposit and immediate credit”. It
includes checks, bank drafts and money orders. (3.1, Annex A,
COA Resolution No. 2006-006 dated January 31, 2006, PGAS)

(Glossary of Terms of Budget of Expenditures and Sources of


Financing 2014, DBM, GAA 2014)
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Cash Analysis – Cash analysis begins with a starting balance and


generates an ending balance after accounting for all cash receipts
and paid expenses during the period.

• Cashbook for Cash in Bank – shall be used to record deposits of


collections (Debit column) and withdrawals from the bank thru the
issuance of checks (Credit column). The cashbook shall be
maintained by bank account and by fund and shall be updated and
balanced daily. The accountable officer shall, at the end of the
month or when required to do so by proper competent authority,
rule and foot the cashbook (Section 27, MNGAS for LGUs, Vol. II).
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Cash Analysis – Cash analysis begins with a starting balance and


generates an ending balance after accounting for all cash receipts
and paid expenses during the period.

• Cashbook for Cash in Bank – shall be used to record deposits of


collections (Debit column) and withdrawals from the bank thru the
issuance of checks (Credit column). The cashbook shall be
maintained by bank account and by fund and shall be updated and
balanced daily. The accountable officer shall, at the end of the
month or when required to do so by proper competent authority,
rule and foot the cashbook (Section 27, MNGAS for LGUs, Vol. II).
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Cashbook for Cash in Treasury – shall be used to record


collections (Debit column) and deposits to the bank (Credit
column) based on the RCD. The cashbook shall be maintained by
the Treasurer by fund and shall be updated and balanced daily.
The accountable officer shall, at the end of the month or when
required to do so by proper competent authority, rule and foot the
cashbook. (Section 26, MNGAS for LGUs, Vol. II).

• Cash flow – Record of inflows and outflows of cash, representing


the operating activities during a given period.

• Cash Flow Forecasting – Estimate of the timing and amounts of


cash inflows and outflows over a specific period, usually one year.
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Certificate of Settlement and Balances – a written notification


by the Auditor to the agency head and the accountable officer
concerned of the total suspensions, disallowances and charges
found in audit, as well as the settlements thereof.

• Charge – refer to pecuniary liability, as rents or fees against


persons or property. (Sec. 131 (g), LGC)

• Check – is a negotiable instrument drawn against deposited


funds, to pay a specific entity a specific amount of funds on
demand.
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Credit Memo – A credit memo is a contraction of the term


"credit memorandum," which is a document issued by the seller
of goods or services to the buyer, reducing the amount that the
buyer owes to the seller under the terms of an earlier invoice.
The credit memo usually includes details of exactly why the
amount stated on the memo has been issued, which can be
used later to aggregate information about credit memos to
determine why the seller is issuing them.

• Current Assets – cash and other assets that are not earmarked
for specific purposes other than the payment of a current liability
or a readily marketable investment. (p. 391, Glossary of Terms
for State Auditors)
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Current Liability – A current liability is an obligation that is


payable within one year.
• Debit Memo – A bank creates a debit memo when it charges a
fee on its bank statement, thereby reducing the balance in the
checking of account.
• Disallowance – the disapproval in audit of a transaction, either
in whole or in part.
• Disbursement - Disbursements constitute all payments made
during a given period either in currency, by check, through bank
and electronic transfers, telegraphic transfers, letters of credit,
credit/debit cards and other non-conventional modes of
payment.
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization


• Equity – residual interest of the government in an agency which is
the excess of the agency’s assets over its liabilities. (Sec. 3 (c), Vol
3, NGAS)
• Financial Expenses (FE) – These accounts include bank charges,
interest expense, commitment charges, documentary stamp
expense and other financial charges. It also includes losses incurred
relative to foreign exchange transactions and debt service subsidy
to GOCCs. (Sec. 7 (c), NGAS)
• Fixed Assets – fixed assets are items of property, plant and
equipment and are referred to as "fixed" because of their permanent
nature and because they are not subject to rapid turnover. They
include equipment, furniture and fixtures, land and buildings and any
other property considered tangible or long-lasting. (pp. 273-274,
Glossary of Terms for State Auditors)
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management x x x and Utilization


• Fund – refers to a sum of money, or other assets convertible to
cash, set aside for the purpose of carrying out specific activities or
attaining certain objectives in accordance with special regulations,
restrictions, or limitations, and constitutes as independent fiscal and
accounting entity. (Sec. 306 (h), LGC)
• Fund Transfer – a transfer of money from one bank account to
another, either within a single financial institution or across multiple
institutions.
• Government Expenditures – include all charges against the fund
of the local government unit for current operating expenditures,
capital outlays and provisions for retirement of long term
obligations. The charges are both the amounts actually paid and
those incurred and recorded as liabilities to be paid in the future.
(Sec. 154, Book 111, Vol. I, GAAM)
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization


• Government Funds – include public moneys of every sort and
other resources pertaining to any agency of the government.
(Sec. 3 (2), P.D. No. 1445)

• Head of Agency (HoA) – refers to the highest official of the NGA


and LGU. In the case of GOCCs, however, and solely for purposes
of this Circular, the HoA refers to the President and/or Chief
Executive Officer, who is in-charge of the day to day operations of
the corporation. (3.12, COA-DBM-DILG-GCG-DND Joint Circular
No. 2015-01 dated January 8, 2015)
• Intelligence and Confidential Fund Audit Unit (ICFAU) – refers
to the unit created under the Office of the Chairperson of the COA
in charge of the audit of CF and IF. (3.13, COA-DBM-DILG-GCG-
DND Joint Circular No. 2015-01 dated January 8, 2015)
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Long Term Liability – An obligation which will not become due


within a relatively short period, usually a year. (Sec. 28, Vol. III,
GAAM)
• Obligations – refers to an amount committed to be paid by the
local government unit for any lawful act made by an accountable
officer for and in behalf of the local unit concerned. (Sec. 306 (j),
LGC)
• Persons Liable – the persons determined by the auditor to be
answerable for an audit disallowance or charge arising from the
post-audit of transaction or examination of the cash and accounts
of an accountable officer.
• Persons Responsible – the persons determined by the auditor to
be answerable for compliance with the audit requirements as called
for in the notice of suspension.
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Quick Assets – a holding that can be converted into cash within


a short period of time. An example would be a marketable
security that is immediately saleable at a quoted price in the
open market. (p. 541, Glossary of Terms for State Auditors)

• Reconsideration – the process whereby an aggrieved party


requests the very officer or body who made the decision, order,
or ruling to review the same with the view of its modification or
reversal. This should be distinguished from "appeal" which is the
process of elevating to the next higher authority a decision, order,
or ruling.
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Responsibility – the obligation to prudently exercise assigned or


imputed authority attaching to the assigned or imputed role of an
individual or group participating in organizational activities or
decision.

• Real Property Tax Receivable – an annual ad valorem tax on


real property such as land, building, machinery, and other
improvement not hereinafter specifically exempted.
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization


xxx
• Receivables – represents amounts collectible from customers
and other debtors arising from sale of merchandise or the
performance of services on account and claims for money lent,
including real property taxes due the Local Government Units
(LGUs). (4.1, PGAS 4, Annex A, Resolution No. 2006-006 dated
January 31, 2006)
• Settlement – the process of determining the status or balance of
the accountability of an accountable officer.
• Special Disbursing Officer (SDO) – refers to the HoA or a
regular employee designated by the HoA to be in charge of
making disbursements of CF and/or IF so received and
accountable therefor. (3.29, COA-DBM-DILG-GCG-DND Joint
Circular No. 2015-01 dated January 8, 2015)
LOCAL FUND MANAGEMENT AND UTILIZATION

Relevant Terms on Fund Management and Utilization

• Special Education Tax Receivable – annual tax of one percent


(1%) on the assessed value of real property in addition to the
basic real property tax. (Sec. 235, LGC)

• Suspension – the deferment of action to allow or disallow in


audit a transaction pending compliance with certain
requirements.

• Trust Liability – An account used to record collections, income,


or receipts of agencies held in trust or guarantee for another
agency and for a specific purpose. (Glossary of Terms of Budget
of Expenditures and Sources of Financing 2014, DBM, GAA
2014)
CASH BOOK

Cash Book (Cash in Treasury)

LGU
B. The Treasurer shall maintain this record to monitor the cash in
Name of the province/city
treasury balance as of specific date. All transactions for the day
municipality FUND
shall be recorded immediately.
BALANCE Fund name/code
INSTRUCTIONS
The amount
and
CREDIT
DEBIT The difference between the Debit REFERENCE
DATE
deposited
Credit columns,with
PARTICULARS
which shall
The amount of
C. At the endthe collections
of each day, the debit and The be
credit number of Report
shall be ruled of
and
A. This form shall be
Date
based on RCD
of
banksthe source
based on documents
the
Details RCD’s
or nature of transactions
equal to the amount of cash collections
closed. All totals shall
attached be written
deposit slips. legibly
hands of the Treasurer
in the
in ink and and deposits
the balances

accomplished as follows:
shall be carried forward as opening balances of the Cash Book
for the next day.

D. The difference of the totals of Debit and Credit columns should


tie-up with the running balance column.
CASH BOOK

Cash Book (Cash in Bank)

LGU
B.Name
TheofTreasurer shall maintain this record to monitor the cash in
the province/city
bankmunicipality
balance as of specific date. All transactions
BANK ACCOUNT NO. for the FUND
day
be recorded immediately. The bank name and account
shallDEBIT Fund name/code
INSTRUCTIONS
The amount deposited for the day
The amount
CREDIT BALANCE number
based on the RCD’s depositchecks issued
slipsThe
and for thebetween
difference
DATE
day REFERENCE
the Debit
PARTICULARS
C. At based
the end of each day, the debitand
and credit
shallshall
be ofbe
theruled
sourceand
interest income
closed.
A. This form shall be
andonother
withholding
All
the Checks/Bank
and
related Credit
Date of the source
taxes/charges
totals
transactions based on Journal Entryshall
equalbe to
Advise
columns,
Detailsdocuments
and
written
the other
The
which
legibly
amount
number
or nature of transactions
in ink
of Cash in and the balance
document
chargesforward
based onas JEVopening
accomplished
shall be (JEV)
Vouchers carried
for the next day.
as follows: Bank balances of the Cash Book

D. The difference of the totals of Debit and Credit columns should


tie-up with the running balance column.
CASH BOOK

Cash Book (Cash Advances)

LGU
Name of the province/city
B. The Treasurer shall maintain this record to monitor the cashFUND
municipality
advances balance as of specific date. All OFFICER
DISBURSING transactions forThe thefund from
day shall be recorded immediately.Name of Disbursing Officer which cash advance
DEBIT INSTRUCTIONS
CREDIT
BALANCE
The difference between the Debit
DATE PARTICULARS
REFERENCE was made
The amount advanced
The amount by the and
disbursed out
Credit
of the
columns,
cash which
andThe number
shall beof the Voucher
C. AtOfficer
Disbursing the end
Voucher
A. This form shall be
ofofeach
Date
based
closed. Payroll
onthe
theday,Details
source
advances
the debit
documents
or nature credit
of shall be ruled and
transactions
equal to the amount of cash inPayroll
All totals shall hand
be written legiblyOfficers
in ink and the balance
of Disbursing
accomplished
shall be asbalances
carried forward as opening follows:
of the Cash Book
for the next day.

D. The difference of the totals of Debit and Credit columns should


tie-up with the running balance column.
CASH BOOK

Cash Book (Liquidating Officer)

LGU
Name of the province/city
municipality
LIQUIDATING OFFICER
Name of the designated

DEBIT INSTRUCTIONS
CREDIT
Liquidating Officer
BALANCE
The difference between the Debit
Amounts remitted or turned-over to
Collections remitted by theand Credit columns, which shall REFERENCE
be
A. This form shall be
the treasurer/cashierDATE
supported PARTICULARS
by
tellers and market/field equal to the amount
RCDsDate
andofduplicate ORsdocuments
the source
The
of number
cash on of the source
ofor nature of transactions
Details
collectors and based on RCD hand not yet turned over todocument
the
accomplished as follows:
tellers/collector
treasurer/cashier.
CASH BOOK

Cash Book (Teller/Collector)

LGU
Name of the province/city
municipality TELLER/COLLECTOR
Name of the designated
Teller/Collector
BALANCE
DEBIT
INSTRUCTIONS
individual tellers
CREDITThe difference between the Debit
Collections received by
Collections remitted toand
and
DATE
theCredit PARTICULARS
columns, which
designated
REFERENCE
shall be of the source
The number
Date
liquidating of thesupported
officers source
equal documents
Details
to or amount
the
by nature ofoftransactions
cash document
on
A. This form shall be
market/field collectors and
hand not yet remitted to the
ORs/Cash tickets
based on individual RCDs
designated liquidating officer.
accomplished as follows:
Bureau of Local Government Finance