The New Barangay

Accounting
System

-The COA Circular 2013-002

dated January 30 2013,
provides the revised chart of
accounts for national
Government Agencies only.

(subject: adoption of the

revised Chart of Accounts
for NGA). Likewise , the COA
Circular No. 2014-003 dated

April 15, 2014 also provides that

the Chart of Accounts of GOCCs
and local Government Units
(LGUs) and its conversion to the
new chart of Accounts shall be
covered by separate guidelines;
thus pending the new circulars
for LGU/Barangays, current
circulars for accounting for
Barangays shall be used.

Similar with the NGAS for

National Government Agencies
and Local Government Units, the
Commission on Audit, in exercise
of the authority granted under
Article IX-D Section 2, par 2 of the
1987 Constitution of the
Philippines , prescribed the New
Government Accounting System o
for Barangay to be implemented
starting fiscal year 2007.

BASIC FEATURES AND

POLCIES
1. Accounting MethodThe IPSASBs Conceptual
Framework deals with the
concepts that apply to general
purpose financial reporting
under accrual basis of
accounting.

Accounting Method
transactions and other events
are recognized in financial
statements when they occur and
not only when cash or its equivalent
is received or paid.
The IPSASB has also issued a
comprehensive cash basis IPSASs

Accounting Method
that includes mandatory and
encouraged disclosures sections.
The cash basis IPSASs
encourages an entity to
voluntary disclosure accrual
based information.
c

2. Recognition of Liability
Liabilities shall be taken up only
for goods actually delivered and
accepted or services rendered or
upon receipt of bills from suppliers.
cash received to guaranty
c
faithful performance of an activity
c

Recognition of Liability

shall be recorded as a
liability.
Surety Bonds shall not
recorded in the books.
c

3. Purchase of Supplies and

Materials and Small items
c
Purchase
of supplies and Materials
and small items with serviceable
life of more than 1 year, (Stapler,
punches ruler, mechanical tools,
etc., ) shall be recorded as
inventories upon acquisition and
Expense upon issuance., Except
Tangible Assets.
Assets

4. Cash Advances
Cash advance for payment of
personnel services shall be
accounted for Advances for
Payroll
c
Cash advance for travel and
other special time advances to
officers and Employees.
c

5. Audit Disallowances
Shall be Recorded only
when they become final
and executory.
c

6. Barangay Accounts
Shall be kept within
the framework of the
New Government
Accounting System
charts of Accounts.
c

7.
and
R

Processing of transaction
recording in the Books

Barangay

City/Municipal

Shall be done

Processing
of
Transaction
s

Recording in
the books
through
Journal
Entry
voucher

Processing of transaction
and Recording in the book

The financial
Records of the
barangay shall
be kept in the
office of the
City/Municipal
Accountant.

Recording in the
Barangay books
shall be based
on the Report
submitted by
the barangay
Treasurer.

Reports and Documents

supporting entries in the
reports shall remain with
the Barangay
Treasurer/Barangay
Record Keeper in the
Barangay and shall be
made available to the
Commission On Audit
anytime for examination.

8. Certified registers
In accordance with the New Barangay
Accounting System, the following
certified registers shall be used:
1. Cash Receipt Registers
2. Cash on hand and in Bank Registers
3.Cash Disbursement Registers
4.Check Disbursement Registers
5.Petty Cash fund Registers

9.

Status of Appropriations,
Commitments and Balances

the Status of Appropriations,

Commitments and Balances of
each barangay under the
City/municipality shall be
consolidated by the
City/Municipal Budget Officer.
c

10. Trial Balance

The two money

column trial Balance
shall be used.
c

11. Financial Statements

The new Barangay
Accounting System requires the
preparation of the ff. Financial
System:
c

1. Balance Sheet(Detailed and

Condensed)

2. Statement of Income and

Expense
(Detailed and Condensed)

3.Statement of Cash Flow

(Direct Method)

4. Statement Of Changes
in Net Assets/Equity

12.

Schedules Supporting
the Financial Statements

The following Schedules supporting the Financial

Statements prepared by the Barangay shall be used:
c

1. Schedule Of Public Infrastructures

and Reforestation Projects.

2. Schedule of Accounts Payable

3. Schedule of Accounts Receivable

13.

E- NGAS

Electronic New
EGovernment
Accounting
NGAS
System

E-NGAS at the City/Municipality

level is encourage to facilitate the
Recording of barangay
transactions to facilitate the
recording of Barangay

Transactions and to hasten

the consolidation of all
barangay financial
statements and reports.

BARANGAY ACCOUNTING
SYSTEM PLAN

shows the accounting flow of

barangay transactions in the books
maintained by the City/Municipal
Accountant.
c

It starts with the -receipt of the

certified registers/reports from
Barangay Record Keeper on or before
the 5th day of the following month.

BARANGAY ACCOUNTING
SYSTEM PLAN

Includes the Following:

1.Receipts and Deposits
2.Disbursement (cash or checks)
3.Public Infrastructures and

Reforestation Projects
4.Registries of Public and
Reforestation Projects

MAJOR FINANCIAL
TRANSACTIONS
The NGAS for Barangay prescribes the ff.
Major categories of Financial transactions:
1. Appropriation and
Commitments
2. Receipts and Deposits
3. Disbursement
4. Supplies and Materials,
Property,, plant and Equipment, Public
infrastructures/Reforestation Project.

1.

Appropriations and
Commitments

Section 29,par 1 of the

constitution provides that:

No money shall be paid

out of treasury except in
pursuance of an
appropriation made by
law.

Appropriations and
Commitments

General Appropriation
Ordinance:
- GAO shall covered laws rules and
regulations of the government provide that all
disbursements of public funds, Except those

received for specific purpose.

-Authorizing appropriation for the
annual budget.

following funds:
1. General funds
2. 20% Development Fund
3.Calamity Fund
4. Sangguniang Kabataan Fund

5.Gender and Development

Fund

The committee on Appropriations

shall monitor the use of appropriated
funds through the:
Registry of Appropriations and
Commitments
Fund class-1. RACPS-personnel Services
2. RACMOOE-maintenance
Other operating expenses :
3.RACCO-capital outlay
4.RACFE- Financial expenses.

Illustration
:

On January 2 2014, the

Barangay Magcalon of San
Jose, Antique receives of copies
of General Appropriation
Ordinance (GAO) for the ff.
approved apropriations for the
fiscal year 2014:

General Fund:
Personal Service
P 60 000
Maintenance and
other operating expenses 25 000
Financial expenses
2 500
Capital outlay
32 000
Calamity Fund
10 000
20% development Fund
40 000
Sangguniang Kabataan Fund
20 000
Gender and Development Fund 10 000

Journal entry/Memo
entry:
Registry of Appropriation and CommitmentsGeneral Fund
PERSONNEL SERVICES
For the Calendar Year 2014
Barangay: Magcalon
Municipality: San Jose
Province: Antique
Dat
e

Particul
ars

1/2

GAO 0107

Re Appro.
f

60 000

Salaries
and
wagesRegular

Salaries
and
WagesCasual

Com
mime Balance
nts

60

Registry of Appropriation and Commitments- General

Fund
MAINTENANCE AND OTHER OPERATING EXPENSE
For the Calendar Year 2014
Barangay: Magcalon
Municipality: San Jose
Province: Antique
Dat
e

Particula
rs

1/2

GAO 0107

Ref Appro.

25
000

Salaries
and
wagesRegular

Salaries
and
WagesCasual

Com
mim
ents

Balance

25 000

Registry of Appropriation and Commitments- General

Fund
FINANCIAL EXPENSES
For the Calendar Year 2014
Barangay: Magcalon
Municipality: San Jose
Province: Antique
Dat
e

Particula
rs

1/
2

GAO 0107

Ref Appro.

2
500

Bank
Charg
es

Doc.
Stamps

Commi
ments

Balanc
e

2
500

Registry of Appropriation and CommitmentsGeneral Fund

CAPITAL OUTLAY
For the Calendar Year 2014
Barangay: Magcalon
Municipality: San Jose
Province: Antique
Dat
e

Particul
ars

1/
2

GAO
01-07

Re Appro.
f

325
00

IT
Motor
equi Vehicle
pt.

Com
mime
nts

Balance

32
500

Registry of Appropriation and Commitments- Calamity

Fund
For the Calendar Year 2014
Barangay: Magcalon
Municipality: San Jose
Province: Antique
Dat
e

Particula
rs

Ref Appr
o.

Food
Supplie
s

Medica Commimen
l&
ts
Dental

Balanc
e

Suppli
es
1/2

GAO 01-

10

10 000

Registry of Appropriation and Commitments - 20%

Development Fund
For the Calendar Year 2014
Barangay: Magcalon
Municipality: San Jose
Province: Antique
Date

Particulars

1/2

GAO 01-07

Re Appro.
f

40
000

Repair &
Maintenan
ce

Commi
ments

Balance

40

000