Systems and Procedures Manual on the

Management of Barangay Funds and

Property

Carmen Z. Zafe
State Auditor IV
Government Accountancy and Financial Management
Information System

Definition of Terms
Sources of Barangay Collections
Policies for Receipts and Deposits

RECEIPTS all collections in the

form of cash, checks, credit
memos received
and interest
earned by the barangay for a given
period such as share in national
taxes and revenues, barangay
taxes, other revenues and other
sources.

Deposit

money
or
its
equivalent received by the bank
for safekeeping and for credit
to a checking, savings or time
deposit
account
of
the
barangay.

Authorized Government Depository Bank

(AGDB) includes the DBP, LBP and
the PVB which have been authorized to
act as depository of government funds.
Other banks as may be authorized by
the Monetary Board of the BSP as
depository banks of the barangay.
DBP
LBP
PVB

Sources of Barangay Collections

Share in national and local
taxes/revenues
a.

Internal Revenue Allotment

b.

Utilization of National Wealth

c.

Tobacco Excise Tax (RA 7171)

Sources of Barangay Collections

Share in national and local taxes/revenues
d.

e.
f.

Real Property Tax, including

interests and penalties imposed
thereon
Tax imposed on sand, gravel and
other quarry products
Community Tax

Sources of Barangay Collections

Barangay fees and taxes

a. Fees imposed on peddlers, breeders
of fighting cocks, use of barangay
properties/facilities, issuance of
certification/clearance

b. Taxes imposed on stores/retailers

within the barangay

Sources of Barangay Collections

Barangay fees and taxes

c. Penalties for violation of barangay
ordinance

Sources of Barangay Collections

Other fees and charges
a.

Operation of cockpits, place of

recreation, etc.,

b.

Fund-raising activities,

c.

Charges on billboards, signboards

and other outdoor advertisements,

Sources of Barangay Collections

Other fees and charges
d.

On the use of barangay-operated

public markets, slaughterhouses
and waterworks

e.

Operation of other economic

enterprises

Sources of Barangay Collections

Other sources
a. Subsidies/Financial assistance from
National Government, provinces,
cities or municipalities
b.

Proceeds from loans and other

indebtedness and sale of PPE

Sources of Barangay Collections

Other sources

c. Receipt of:

performance/bidders/bail
bonds
refund of payroll
fund/advances to officers
funds intended for specific
purpose

Sources of Barangay Collections

Other sources

Receipt of:

payment for lost properties

payment due to overpayment
of claims
other receipts

Sources of Barangay Collections

Other sources
d.

Grants and donations received

e.

Dividend/Interest from investments

Operating Policies on Receipts and Deposits

1.

Receipts/Collections
a. The Barangay Treasurer (BT)
shall
be
responsible
in
handling collections of income
and other receipts of the
barangay and the deposit of
the same with Authorized
Government Depository Bank
(AGDB);

Operating Policies on Receipts and Deposits

b. All collections, either in cash or

in check, shall be acknowledged
by the issuance of a prenumbered Official Receipt (OR)
General Form 51 or its equivalent
like Real Property Tax Receipts
(RPTR) and Community Tax
Certificate (CTC) subject to
proper custody, accountability
and audit;

Operating Policies on Receipts and Deposits

c. Temporary or provisional receipts

shall not be issued to acknowledge
collections;

d. All accountable forms shall be

secured from the City/Municipal
Treasurer;

Operating Policies on Receipts and Deposits

e. All checks shall be in the name of

the barangay;
f. Endorsed checks shall not be
accepted
as
payment
of
obligations to the barangay;

Operating Policies on Receipts and Deposits

g. For checks received, the OR

number and date of issue shall be
indicated at the back of the check
for reference purposes;
h. All particulars in the OR shall be
filled out. Duplicate and triplicate
copies of the OR shall be the exact
carbon copy of the original;

Policies for Receipts and Deposits

i. Overages discovered during

the
cash
count/cash
examination shall be receipted
and
added
to
the
accountability of the BT;

Policies for Receipts and Deposits

j. Cash shortages, including the loss of

cash through force majeure, theft,
robbery, fire, etc. shall be deducted
from the total cash account and the
BT/Accountable Officer (AO) shall be
held personally accountable, pending
the result of the Request for Relief
from Cash Accountability submitted
to the Commission on Audit (COA);
and

Policies for Receipts and Deposits

k. All collections by the BT for

the barangay shall be reported
in the Summary of Collections
and Deposits (SCD).

Policies for Receipts and Deposits

2.

Deposit of Collections

a. The BT shall deposit all his

collections including those turned
over by the Deputized Barangay
Collector (DBC) with AGDB intact
daily or not later than the following
banking day.

Policies for Receipts and Deposits

In case of barangay where

travel time to the depository
bank is more than one day,
deposit of collections shall be
made at least once a week or as
soon as the collections reach
P10,000.00;

Policies for Receipts and Deposits

b. In the absence of an AGDB,

deposits may be made in any bank
nearest the barangay, which is
authorized by the Monetary Board
of the Bangko Sentral ng Pilipinas;

Policies for Receipts and Deposits

c. The selection of a depository

bank other than the AGDB shall be
covered by a Resolution of the
Sangguniang Barangay (SB) and
approved by the Punong Barangay
(PB).

Policies for Receipts and Deposits

The Resolution shall indicate the

name of the bank, the type of
deposit to be maintained, whether
current, savings or time deposit and
the authorized signatories to the
checks/fund withdrawals;

Policies for Receipts and Deposits

d. Funds
earmarked
for
future
operation which are not immediately
needed may be transferred to time
deposits for the account of the
barangay.
Placement
in
time
deposits shall be duly authorized by
the SB and approved by the PB.

Policies for Receipts and Deposits

Certificate of time deposit/bank

book shall be in the name of the
barangay. Upon maturity, the check
for the proceeds shall be issued in
the name of the barangay. Pretermination of time deposit or its
renewal/roll-over shall have prior
authorization of the SB and
approval of the PB;

Policies for Receipts and Deposits

e. In case of dishonored check, a

Notice of Dishonor shall be
immediately sent to the payor
upon receipt of the Debit Memo
(DM) and the dishonored check
from the bank;

Policies for Receipts and Deposits

f. The original of the dishonored

check and a copy of the bank DM
shall remain with the BT; and
g. All deposits by the BT for the
barangay shall be reported in the
SCD.

Policies for Receipts and Deposits

3. Collections by the BT as Deputized

by the City/Municipal Treasurer

a. The City/Municipal Treasurer shall

issue an Authority deputizing the
BT to collect Real Property Tax
(RPT), Community Tax (CT), etc.
on his behalf;

Policies for Receipts and Deposits

b. Collections made by the BT on behalf

of the City/Municipal Treasurer, as
deputized, shall be remitted intact
daily to the City/Municipal Treasurer.

Policies for Receipts and Deposits

c. For barangay where travel time to

the City/Municipal Treasurers
office is more than one (1) day,
remittance of collections shall be
made at least once a week, or as
soon as the collections reach
P5,000.00;

Policies for Receipts and Deposits

d. All remittances shall be supported

by a Summary of Collections and
Remittances (SCR) which is further
supported by the second copy of
the OR and

Policies for Receipts and Deposits

e. The BT shall be accountable for all

the forms received from the
City/Municipal Treasurer for use in
the collection.

Policies for Receipts and Deposits

f. The BT shall be the custodian of

all the accountable forms. A
complete record of the receipts,
issuances and transfers of
accountable forms shall be
maintained;

Policies for Receipts and Deposits

4. Collections by Barangay Collector

(DBC) as Deputized by SB
a. The SB shall issue a resolution
deputizing the barangay collector
to collect market fees, parking
fees, CT, etc. on behalf of the BT;

b. Collections of DBC shall

remitted daily to the BT;

be

Policies for Receipts and Deposits

c. All remittances shall be supported

by
SCR
and
Report
of
Accountability for Accountable
Forms (RAAF); and
d. The DBC shall be accountable for
all forms received from the BT.

Policies on Receipts and Deposits

e. There shall be no transfer of
accountable forms between/
among DBCs; and
f. The BT and DBC shall render their
Report of Accountability for
Accountable Forms (RAAF).

Policies for Receipts and Deposits

5. Credit

Memo

a. Credit Memo (CM) received from the

bank for direct remittance made by Local
Government Units (LGUs) or
the
Department of Budget and Management
(DBM) for the barangay share in Real
Property Tax (RPT) or the Internal
Revenue Allotment (IRA), respectively,
shall be recorded in the Cash on Hand
and in Bank Register (CHBReg) and in
the Cash Receipts and Deposits Register
(CRDReg);

Policies for Receipts and Deposits

b. The LGUs or the DBM making the
direct remittance shall furnish the
barangay a copy of the advice for
information and counterchecking
with the CM received from the
bank; and
c. Interest earned on bank deposits
shall be recorded at gross in the
CHBReg and CRDReg.

Policies for Receipts and Deposits

Accountable Officers and Transfer of
Accountabilities
a. All AOs leaving the office, either thru
resignation or completion of terms/
suspension/retirement, shall seek
clearances from money and property
accountabilities using the prescribed
form Transfer of Money and Property
Accountability (TMPA).

Recording Policies on Receipts

and Deposits
a. Summary of Collections and Deposits
1. Collections and deposits by the BT as
Treasurer of the barangay shall be
recorded in the Summary of Collections
and Deposits daily or as transaction
occurs;

2. Issued ORs including cancelled ones shall

be recorded in correct numerical
sequence;

Policies on Recording Receipts

and Deposits
3. Deposits shall be based
Validated Deposit Slip (VDS);

on

4. Collections and remittances by the

DBC recorded in the Summary of
Collections and Remittances shall
also be recorded in the Summary of
Collections and Deposits of the BT
daily or as transaction occurs;

Policies on Recording Receipts

and Deposits
5. Collections and remittances by the
DBT recorded in
the SCR shall also
be recorded in the SCD of the BT daily
or as transaction occurs;
6. The SCD shall be sub-totaled daily;

Policies on Recording Receipts

and Deposits
7. The daily sub-totals of the SCD shall
be recorded in the Cash on Hand and
in Bank Register (CHBReg) maintained
by the BT;
8. Weekly the SCD shall be totaled,
balanced and ruled submitted to the
BRK supported by duplicate copies of
the OR and VDS.

Policies on Recording Receipts

and Deposits
9. Receipt of the certified SCD and its
supporting documents shall be
acknowledged by the BRK; and
10. The SCD shall serve as basis of the
BRK
in
recording
the
weekly
collections and deposits in the Cash
Receipts and Deposits Register
(CRDReg).

SUMMARY OFCOLLECTIONS AND DEPOSITS

For the period January 2 -6, 2007
Barangay: Simamla
Barangay Treasurer:

City/Municipality: Virac
Province: Catanduanes

SCD No.: 07-01-001

Page: 1 of 1

Date
OR/VDS/SCR No.
2007
1/2

Payor/Bank

Collections
Beginning Balance
Rosario Lumbao
Kapisanang Magsasaka Coop.
VDS 07-01-001
Land Bank of the Phil.
Sub total
SCR(BT) 07-01-001 Various
1234553
Aling Claring Sari-Sari Store
SCR(DBC1) 07-01-006 Manuel Pantino
SCR(DBC2) 07-01-006 Hedulfo Zuniega
VDS 07-01-002
Land Bank of the Phil.
SCR(BT) 07-01-001 City/Municipal Treasurer
Sub total
1234556
Domingo Zafe
1234557
Armando Panesa
1234559
Francisca Medialdea
VDS 07-01-003
Land Bank of the Phil.
Sub total
1234560
Juliet Macato
Sub total
Grand total
1234551
1234552

1/3

1/4
1/5

1/6

Particulars

Barangay clearance
Rental of barangay hall
Deposit

100.00
1,500.00
1,600.00

Collection by BT for City/Municipality

Business Permit Fees
Collections from market
Collections of garbage fees
Deposit
Remittance of RPT
Refund of cash advance
Business Permit Fees
Donation
Deposit
Barangay clearance

Certification:
I hereby certify that the foregoing is the complete and correct records of all
my collections and deposits from Jan. 2 to Jan 6, 2007. The duplicate copies of
the ORs issued, SCRs and the originals of the VDSs are hereto attached.

Barangay
Deposits

2,620.00
2,620.00

As deputized by City/Municipality
Balance Collections Remittances Balance
1,020.00
1,120.00
2,620.00
-02,746.00

1,000.00
3,485.00
4,200.00
8,685.00
8,685.00
800.00
500.00
1,000.00
2,300.00
50.00
50.00
12,635.00

8,685.00

2,300.00
2,300.00

13,605.00

2,746.00

1,000.00
4,485.00
8,685.00
-02,746.00
2,746.00

-0-

2,746.00

2,746.00

0.00

-0-

800.00
1,300.00
2,300.00
-050.00
50.00
50.00

Acknowledgment:
I hereby acknowledge receipt of the certified SCD complete with the
duplicate copies of the ORs issued, SCRs and the VDSs covering deposits
as reported.

Signature over Printed Name

Barangay Treasurer

Signature over Printed Name

Barangay Record Keeper

Date

Date

Policies on Recording Receipts

and Deposits
b. Summary of Collections and Remittances
1. BT as deputized by City/Municipal Treasurer

a. Collections of BT shall be recorded

daily in the Summary of Collections
and Remittances-BT or as a
collection is made;

Policies on Recording Receipts

and Deposits
b. Issued Community Tax Certificates
(CTCs), Real Property Tax Receipts
(RPTRs) including cancelled ones
shall be recorded in correct
numerical sequence;

Policies on Recording Receipts

and Deposits
c. Remittance of collections to the
City/Municipal Treasurer shall be
covered by a certified SCR
supported by the duplicate copies
of the issued CTCs and RPTRs;
and

Policies on Recording Receipts

and Deposits
d. Remittances shall be done daily, which
shall
be
acknowledged
by
the
City/Municipal Treasurer in the appropriate
portion of the SCR. For a barangay where
the travel time to the City/Municipality is
more than one day, remittance of
collections shall be made at least once a
week or as soon as collection reaches
P5,000.00.

Policies on Recording Receipts

and Deposits
2. Barangay Collector as deputized by SB

a. Collections of DBC as deputized

by the SB shall be recorded daily
in the Summary of Collections and
Remittances-DBC as collections
are made;

Policies on Recording Receipts

and Deposits
b. Issued ORs and accountable forms
with money value shall be recorded
in batches showing the inclusive
serial numbers (if available),
quantity issued and the total
amount collected;

Policies on Recording Receipts

and Deposits
c. Remittance of collections to the BT
shall be covered by the certified
SCR supported by duplicate copies
of the ORs issued; and
d. Remittances shall be done daily
which shall be acknowledged by
the BT in the appropriate portion of
the SCR.

Policies on Recording Receipts

and Deposits
Recording in the Registers
a. The CHBReg shall be maintained by
the BT to record the total collections
and deposits daily based on the SCD.
The CHBReg shall serve as the cash
book of the BT;

Policies on Recording Receipts

and Deposits
b. Weekly, all collections shall be
recorded by the BRK in the CRDReg
using the SCD as reference. The
nature of collections shall be
distributed in the special columns
provided and those that cannot be
matched with existing columns shall
be recorded in the Others column;

Policies on Recording Receipts

and Deposits

c. Direct deposits made by the Department of

Budget and Management (DBM) for share
of the barangay in the Internal Revenue
Allotment (IRA) and remittance made by
city/municipality for its share in the Real
Property Tax (RPT) covered by Credit
Memos (CMs) issued by the bank shall be
recorded in the CHBReg and CRDReg;
and

Policies on Recording Receipts

and Deposits
d. Interest earned on bank deposits as
reflected in the bank statement (BnkS)
shall be recorded at gross by the BT in
the CHBReg and CRDReg to fully
account for the receipts and deposits
of the barangay.

Policies on Reporting Receipts

and Deposits
1. Use of Cash Receipts and Deposits Register

a. The BRK shall record weekly all receipts

in the Cash Receipts and Deposits
Register based on the Summary of
Collections and Deposits;
b. Bank Credit Memos and interests
earned shall be recorded in the Cash
Receipts and Deposits Registers by the
BRK;

Policies on Reporting Receipts

and Deposits
c. At the end of the month, the CRDReg
shall be totaled, balanced, ruled,
recapitulated and certified; and
d. The certified CRDReg together with the
SCDs shall be submitted to the
City/Municipal Accountant on or before
the 5th day of the following month.

CASH RECEIPTS AND DEPOSITS REGISTER

For the Month of January, 2007
Barangay: Simamla
Barangay Treasurer: Aida Aguilar
Date

Particulars

City/Municipality: Virac
Province: Catanduanes

Ref.

Receipts

Undeposited/
Remittances
Unremitted
Deposits
C/MT
Collections

2007
1/2 Beginning Balance
1/6 Various collections

SCD 07-01-001 15,381.00 13,605.00

1/8
1/9
1/24
1/25
1/25

CM 07-01-001
BnkS
CM 07-01-002
CM 07-01-003
CM 07-01-004

Receipt of IRA
Receipt of bank interest
Receipt of IRA
Receipt of Share in CTC
Receipt of share in RPT
Total

56,000.00
4,085.25
14,000.00
1,373.00
25,895.00
116,734.25

56,000.00
4,085.25
14,000.00
1,373.00
25,895.00
114,958.25

2,746.00

2,746.00

IRA

RPT

1,020.00
50.00

Market
Fees

Distributiion of Receipts
Clearance Business
Garbage
Rent
Misc.
& Cert. Permit
Fees
Income Income
Fees
Fee

3,485.00 4,200.00

50.00 56,000.00
50.00
50.00 14,000.00
50.00
50.00
25,895.00
50.00 70,000.00 25,895.00 3,485.00

CRDReg No.: 07--01-001

Page: 1 of 1

4,200.00

150.00 1,500.00 1,500.00

OTHERS
Account Classification
Due from Officers and Employees
Inc from Grants and Donations
Due to LGUs

800.00
1,000.00
2,746.00

Interest Income

4,085.25

Community Tax

1,373.00

150.00 1,500.00 1,500.00

10,004.25

Recapitulation:
Inc from Grants and Donations
Due to LGUs
Due from Officers and Employees
Interest Income
Community Tax
Total

Certification:
I hereby certify to the correctness of the above data. Recordings are based on the certified SCDs supported
with duplicate copies of ORs and VDS submitted by the BT, CMs, and bank statements which are all in my file.

Signature over Printed Name

Barangay Record Keeper

Date

Amount

1,000.00
2,746.00
800.00
4,085.25
1,373.00
10,004.25

Policies on Reporting Receipts

and Deposits
2. Use of Cash on Hand and in Bank Register
a. The BT shall record all collections and
deposits in the Cash on Hand and in Bank
Register daily based on the SCD;
b. Bank Credits/Charges per Debit Memo
(DM)/CM, interests earned and withholding
taxes
as
reflected
in
the
bank
statement/passbook shall be recorded in the
Cash on Hand and in Bank Register by the
BT;

Policies on Reporting Receipts

and Deposits
2. Use of Cash on Hand and in Bank Register
c. At the end of the month, the CHBReg shall be
totaled, balanced, ruled, recapitulated and
certified;
d. The certified CHBReg shall be submitted to
the City/Municipal Accountant on or before the
5th day of the following month; and
e. Balance on hand and in bank shall be
forwarded to the next months CHBReg.

Policies on Reporting Receipts

and Deposits
3. Use of Report of Accountability for
Accountable Forms

a. The BT shall prepare the Report of

Accountability for Accountable Forms
to report the receipts and issuances of
accountable
forms
and
the
outstanding
balance
under
his
custody;

Policies on Reporting Receipts

and Deposits
b. The Deputized Barangay Collectors
(DBCs) shall also prepare and submit
their individual Report of Accountability
for Accountable Forms (RAAF) daily to
the BT to summarize the receipts and
issuances of accountable forms under
their custody;

Policies on Reporting Receipts

and Deposits

c. The BT shall consolidate the

individual RAAF submitted by the
DBCs with his RAAF and shall
submit the certified consolidated
RAAF to the BRK;

Policies on Reporting Receipts

and Deposits

d. The BRK shall certify the consolidated

RAAF and submit to the City/Municipal
Treasurer on the 5th day of the
following month.

Process Flow for Receipts and Deposits

BT
BT

as deputized

BT

Issues

as treasurer

DBC

Issues

ORs/RPTRs/
CTCs

ORs

Issues

ORs/Accountable
forms w/ money
value

Prepares

Prepares

SCR-DBC

SCR-BT

(Daily)

(Daily)

Distribution:
1 - C/M Accountant
2 - BRK
3 - BT

BT

prepares

SCD

Distribution:
1 - BT
2 - BRK
3 - DBC

C/M Treasurer
Distribution:
1 - C/M Accountant, 2 - BRK, 3 -BT
BT records SCD in the

CHBReg

CM
Interest (BnkS)

CRDReg
(Weekly)

(Daily)
Distribution:
1 - C/M Accountant
2 - BT
3 - BRK

BRK records SCD in the

BRK

Distribution:
1 - C/M Accountant
2 - BRK

C/M Accountant

JEV
GJ

GL
Trial balance
Financial
Statements

SL

Practice Set
On
Receipts and Deposits