Chapter 9: Accounting for Local Government Units Features & Policies governing national government transactions that are

e applicable to Local Government Units: 1) Accrual Accounting 2) One Fund Concept 3) Special Accounts in the General Fund 4) Chart of Accounts & Account Codes 5) Books of Accounts aside from the Journals (CRJ, CDJ, CkDJ, GJ) & Ledgers (GL, Subsidiary Ledger), the treasurers & disbursing officers shall maintain cash records (Cash book-Cash in Treasury, Cash book-Cash in Bank, Cash book-Cash Advances). Treasurers/ Collectors shall prepare for the Report of Collections & Deposits (RCD) daily & Report of Accountability for Accountable Forms (RAAF) monthly. 6) Financial Statement 7) Appropriations, Allotments & Obligations 8) Financial Expenses 9) Perpetual Inventory of Supplies & Materials 10) Valuation of Inventory 11) Maintenance of Supplies & PPE Ledger Cards 12) Construction of Assets Construction Period Theory shall be applied for costing purposes 13) Public Infrastructure registry for construction of infrastructures are maintained (RPIB, RPIR, RPIP). 14) Depreciation straight-line method, residual value is 10% of cost. 15) Reclassification of Assets 16) Allowance for Doubtful Accounts 17) Elimination of Contingent Accounts 18) Recognition of Liability 19) Interest Accrual 20) Accounting for Borrowings & Loans 21) Elimination of Corollary & Negative Entries Form & Content of Budget The local government budget primarily consists of two parts:

1) The estimates of income certified collectible by the treasurer. 2) The total appropriations covering the current operating expenditures & the capital outlays. BUDGET PROCESS 1) Preparation a) Local Treasurer shall submit a certified statement covering the income & expenditures pertaining to the preceding fiscal year; the actual income & expenditures for the first 3 quarters & the estimated income & expenditures for the fourth quarter of the current year; & the estimated income for the ensuing year to their local chief executive. On the other hand each head of office shall submit a statement of the proposed expenditures recommended by him for his office to the local chief executive. b) Upon receipt of the statements & proposals, the local chief executive prepares the budget for the ensuing year & submits the same to the local council/sanggunian on/before the deadline set for the submission of the budget. 2) Legislative Authorization The local council/sanggunian approves the annual budget for each fund of the local government through the enactment of an appropriation ordinance. Its approval requires the affirmative votes of a majority of a majority of all members. In case of cities, the enacted budget enacted by the local council, is subjected to the approval by the City Mayor. The approved annual budget is deemed operative & enforceable as of the beginning of the fiscal year. 3) Execution & Accountability The treasurer of the local government unit, as chief financial officer, shall provide technical &

staff services in the execution & accountability phases of the budget process. The projects & activities under each program are performed & pursued in accordance w/ the functions of the government unit to realize expected results. Note: a) Changes in the annual budget may be made within the fiscal year by way of supplemental budget; w/c is enacted in the same manner as that of an annual budget. b) Failure to pass annual budget before the beginning of the ensuing fiscal year or when the enacted budget is declared unenforceable, it shall deem the reenactment of the authorized appropriations in the authorized annual budget. Budgetary Accounting Similar to national government accounting, the budgetary accounts of local government units are composed of: 1) Appropriations referred to as expense budgets - Annual budget is approved through the issuance of Appropriation Ordinance 2) Allotments upon receipt of Advice of Allotment, the accountant shall enter the Allotment in the Registry of Appropriations, Allotments & Obligations (RAAO) 3) Obligations entered in the registries as they are incurred through the Allotment & Obligation Slip (ALOBS) INCOME/COLLECTIONS & DEPOSITS Sources of Income Main Sources of LGUs income: 1) Tax revenues, fees & charges

2) Share from Internal Revenue Collections 3) Share from National Wealth Sources of income are further classified into: a) General Income Accounts 1) Subsidy from local government units 2) Subsidy from other funds 3) Subsidy from special accounts 4) Sales revenue 5) Dividend revenue 6) Interest income 7) Gain on sale of securities 8) Gain on sale of assets 9) Sale of confiscated goods & properties 10) Foreign exchange gains 11) Miscellaneous operating and service income 12) Fines and penalties 13) Income from grants & donations b) Specific Income Accounts 1) Property taxes 2) Taxes on goods & services 3) Other taxes 4) Other specific income Methods of Accounting for Income 1) Accrual Method used to record Share from Internal Revenue Collections in the books of accounts. - Upon receipt of Notice of Funding Checks Issued from the DBM, Share from Internal Revenue Collections shall be taken up as Due from National Government Agencies & credited to Share from Internal Revenue Collections. However, Cash in Bank account shall be debited upon receipt of the Share from Internal Revenue

Collections regardless of whether/not the Notice of Funding Check Issued has been received from the DBM. 2) Modified Accrual Method - Used for real property taxes; that is, Real Property Tax Receivable & Special Education Tax Receivable shall be established at the beginning of the year. - To avoid appropriating uncollected revenues, w/c might result to huge cash overdraft, the same shall be credited to Deferred Real Property Taxes Income/Deferred Special Education Tax Income (shall be recognized upon collection). - Fines & penalties arising from real property taxes shall be distributed to concerned LGUs in accordance w/ the sharing prescribed under the local government code for real property tax & the additional 1% tax for the special education fund. 3) Cash Basis shall be used for all other taxes, charges & other revenues. Other Receipts- comprise of but not limited to: 1) Borrowings proceeds of repayable obligations, generally with interest from the bank, national agency, another LGU, & private sector. 2) Sale of Property, Plant & Equipment-refers to proceeds from the sale of fixed assets such as: land, building, equipment, furniture & fixtures, etc. Similar to commercial accounting, the applicable asset accounts shall be

cancelled from the books upon disposal. The journal entry to record disposal is similar to the recording in national government accounting. 3) Refund of Cash Advances journal entry to record cash advances is the similar to the recording in national government accounting: a) Official travel cash advances shall be recorded as a receivable from the concerned official/employee as Advances to Officers & Employees & will be credited once refunds are made. b) Cash advances for salaries & wages shall be recorded as debits to the account Payroll Fund & refunds will be credited to it. 4) Receipt of Performance/Bidders Bonds similar to national government accounting: - Performance bond posted by contractor or supplier to guaranty full & faithful performance of their work may be in form of cash or certified check (acknowledged through the issuance of official receipt & recorded in the books by the accountant using a Journal Entry Voucher) or surety (recognized by an acknowledgement receipt to be issued by the authorized official). Accounting for Collections & Deposits (Process) Local Treasurer/Cashier shall deposit all collections with the authorized depositary bank

daily/not later than the next banking day. He shall record all deposits made in the cashbook & prepare the Report of Collections & Deposits (RCD). The barangay treasurer shall deposit all collections intact w/ the city/municipal treasurer, or in a depositary bank account maintained in the name of the barangay, w/in 5 days from receipt thereof. On the other hand, the accountant shall determine the account classification of the amounts collected covered by the RCD & the supporting papers submitted by the Treasure/Cashier & shall accomplish the Journal Entry Voucher for the recording. Disbursements settlement of government payables/obligations by cash/check. - Typical transaction: PS, MOOE, CO, FE Shall be covered by Disbursement Voucher (DV) or payrolls & paid either by check or in cash. Allotment & Obligations Slip (ALOBS) is an integral part of the DV.

- Debit to Payroll Fund & a credit to Cash in Bank-Local Currency Current Account shall be recorded when there are cash advances for salaries & wages by disbursing officers. Payment Out of the Petty Cash Fund petty cash fund shall be maintained under the imprest system. The fund shall be sufficient for the non-recurring, emergency & petty expenses of the local government unit for one month. Disbursement to the fund shall be through Petty Cash Voucher (each PCV shall not exceed P1,000), w/c shall be signed by the payee to acknowledge the amount received. Purchase or Construction of Property, Plant & Equipment PPE are charged against allotments/appropriations for capital outlay when obligated (includes all costs incurred to bring the asset to location necessary for its intended use.) - PPE to be constructed may be classified as Agency Assets (to be used by the LGU) and Public Infrastructure (to be used by General Public). Construction Theory shall be used in recording both assets. During the construction period both assets shall be taken up as Construction in Progress account w/ appropriate asset classification & as soon as the project is completed, the account is closed to the appropriate asset account. - For Public infrastructures funded out of regular income, the Construction in Progress account is transferred to Public Infrastructures account upon completion w/c is closed to

Payments by Check Checks shall be drawn only on duly approved disbursement voucher. It shall be drawn by the local treasurer & countersigned by the local administrator. - In case of incapacity/temporary absence of officials, duties shall devolve to their immediate assistants. In case of municipalities w/o administrator appointed, checks shall be countersigned by the municipal Mayor. In case of expenditures appropriated for the operation of the Sanggunian, checks shall be countersigned by the provincial Vice Governor, the City Vice Mayor, of the Municipal Vice Mayor, as the case may be. Payments by Cash Cash payment shall be made only on duly approved payrolls/disbursements vouchers.

Government equity & the asset is recorded at the end of the year in the Registry of Public Infrastructures. - However, completed infrastructures funded out of loan shall be closed to Government Equity account upon full payment of the loan. Disclosures shall be made in the Notes to Financial Statement. Purchase of Supplies Purchase of supplies and material for stock,regardless of whether or not consumed within the accounting period, shall be recorded as assets using the inventory account following the perpetual inventory method. However, supplies and material purchased out of petty cash fund for immediate use or emergency shall shall be expensed. Items with more than one year service life but small enough to be considered property, plant and equipment shall be recorded in the inventory account upon acquisition and expensed upon issuance. Examples are; blackboards/whiteboard, mini calculators, stapler, scissors, punchers, and so on. Miscellaneous Transactions Refer to transactions that are unique and not recurring in the ordinary course of operations of the government.These transaction types seldom take place or ideally should not happen at all. The following may be considered miscellaneous transaction: 1. Loss of cash and property accountability 2. Cash overage 3.Dishonored checks 4.Lost/Destroyed/Stale/Obsolete and Fraudently Encashed Check 5.Settlement of suspension/Disallowance charges 6.Refund of overpayment Loss of cash and property accountability May be due to malversation, theft, robbery, or other causes. Cash shortage

discovered during cash examination pursuan to Memorandum No. 84-373A In case of shortage in property accountability, the auditor shall issue an audit report. As soon as a shortage is definitely established, the auditor shall issue a memorandum pertaining thereto and the accountant shall draw a Journal Entry Voucher to record shortage as a receivable from the accountable officer concerned. In case of shortage in property due to other causes( theft, force majeure, fire, etc) a report shall be prepared by the accountable officer concerned for purposes of requesting relief from accountability. No accounting entry shall be made but the loss shall be disclosed in the Notes to Financial Statements pending result of request for relief from accountability. When a request for relief from accountability was granted, a copy of the decision shall be forwarded to the chief accountant, who shall draw a JEV to record the transaction by debiting the Loss of Asset account and credit to the appropriate receivable account.In case of request denied, immediate payment of the amount due shall be demanded from the accountable office. Restitution shall be acknowledged by the issuance of official receipt. Cash Overage If cash examination disclosed cash overage, as determined by the auditor, the amount shall be forfeited in favor of the government and an official receipt shall be issued by the collector/teller. The cash overage shall be recorded as a debit to Cash in Treasury and a credit to Other Specific Income of LGU. Dishonored Checks A check is said to be dishonored when upon presentation for payment(eg.to the bank), such payment is refused or cannot be obtained. Upon receipt of the debit memo and the dishonored check from the bank, constructive cancellation of the official receipt covering the dishonored check shall be immediately effected by the treasurer on the copy in his possession. The treasurer shall immediately photocopy the

dishonored checks and record as credit in the Cashbook- Cash in Bank and cancel payment in the taxpayer's index card. Upon notice of the cancellation, the collector/teller shall note the cancellation in the triplicate copies of the receipt. The treasurer shall then inform the auditor, who shall effect the cancellation in the duplicate copy of the official receipt, in case the same has already been submitted for audit.The treasurer shall forward the debit memo and dthe photocopy of the dishonored check to the accountant. The accountant shall cancel the official receipt in his possession and prepare the JEV by crediting the Cash in Bank account and debiting the appropriate income account. Cancellation of Lost Check Issued A check is considered lost when it is misplaced, waylaid or left behind negligently by the payee or holder in due course or by the cutodian/carrier thereof and after diligent search cannot be found or located; or when it is losst due to fortuitous event, theft or robbery.Upon submission of sworn statement from the payee that the check issued by the LGU is lost, the treasurer shall immediately notify the bank concerned for the stoppage of payment.He shall forward the sworn statement to the accountant, who shall prepare the JEV to cancel the payment made. Copy of the JEV shall be forwarded to the treasurer as basis for him to debit the amount in the Cashbook Cash in Bank. Spoiled or Stale Checks Checks maybe cancelled when spoiled or stale. A check is considered spoil when it is torn, mulitated, defaced or with erasures/errors affecting the genuineness of any material information contaiined therein. It is stale if is has been outstanding for over six month from date of issue or as prescribed by the depository bank. Atleast a month before the check becomes stale, the treasurer shall send a written notice to the payee of the existence of the check. A spoiled or stale check shall be marked cancelled on its face.

Trial Balance and Financial Statements Trial Balance is a list of all the general ledger accounts and their balances at a given time. The accounts are listed in the order in which they appear iin the ledger, with the debit balances in the left column and credit balance on the right column. Adjusting Journal Entries Are accounting journal entries made in order to ensure that revenues and expenses are recorded in the perios when earned or incurred following the revenue recognition and matching principles. It is required every time financial statements are prepared. The two types of adjusting journal entries: 1. Prepayments- these are expenses paid or revenues received befor they are incurred or earned, repectively. Adjusting entries are required at the date of the finacial statement to recognize the portion of the prepayments that was already incurred or revenue already earned. 2. Accruals- these are revenues already earned and expenses already incurred in the current period that have not yet been recorded. Pre- closing Trial Balance(Adjusted Trial Balance) The once prepared from the general ledger accounts after the adjusting journal entries have been journalized and posted. Monthly pre-closing trial balance for each fund shall be submitted not later than the twentieth day after the end of each month supported by the Status of Appropriations, Allotments and Obligation and Obligations.The original copy shall be submitted to the COA Unit Auditor, while the remainiing copies shall be submitted one copy each to the Local Sanggunian, the Local Treasurer and the Local Accountant. Closing Journal Entries Accounting entries prepared to reduce all balances of the nominal accounts to zero at the end of the accounting period in order to preparethe accounts for the next accounting period.

Post- Closing Trial Balance Prepared at the end of the year after the closing entries are journalized and posted in the general ledgers.Nominal accounts are already closed and real accounts are shown with their balances.It shall be submitted not later than the fourteenth day of February after the end of the calendar year with the following schedules: Status of Appropriations, Allotments and Obligations. Subsidiary Schedule of General Ledger account balances Summary of Publiic Infrastructure Shall be submitted with supporting schedules to the following:COA Central Office through the unit auditor, COA Regional Office, COA Unit Auditor, Local Chied Executice, Local Sanggunian, Local Treasurer, and Local Accountant. Interim Reports Financial statesments required to be prepared at any given period or at a financial reporting period shorter than a full financial year, without closing the books of accounts.Adjusting journal entries shall be prepared. The following interim financial statements and Notes to Financial Statements shall be prepared and submitted on quarterly basis: Balance Sheet Statement of Income and Expenses Statement of Cash Flow Statement of Management Responsibility for Financial Statements An integral part of the financial statements that shows the local government agencies responsibility for the preparation and presentation of its financial statements. It shall be signed by the Chief Accountant and the Head of the Agency or his authorized representative. Year-end Financial Statements Prepared by the Local Accountants at the end of each year.Includes:

Balance Sheet- Shows the financial condition of the local government agency at a specific date. Presents information on the assets, liabilities and the government equity of the agency. Statement of Income and Expenses- Shows the income and expenses of the local government agency at the end of a particular period. Statement of Cash Flows- Shows the local government agencys cash activities. It reports cash receipt and cash payment and net change in cash resulting from operating, investing and financing activities of the local government agency during a period, in a format that reconciles the beginning and ending cash balances. Notes to Financial Statements-These are the means of explaining the items presented in the main body of the financial statements.They are explanatory notes on the accounts and/or accounting policies, which will give additional information value to the financial statements. General Fund Consists of monies and resources not accruing to any other fund and shall be available for payment of expenditures, obligations or purposes not specifically declared by law as chargeable to or payable from, any other fund, though transfers of monies or resources therefrom to other funds of local government may be made by proper appropriation. Special Education Fund Consists of the respective shares of provinces, cities and municipalities in the proceeds of the additional one percent (1%) tax on the assesed value of real property for education purposes under the Real Property Tax Code. This amount shall be automatically released to the local schools. In case of provinces, the proceeds of the special education fund shall be divided equally between the provincial the municipal school boards, and allocated as determined and approved by the local

school boards concerned intended only for the following puposes: Operation and maintenance of public schools Construction and repair of school buildings, facilities and equipment Education research Purchase of books and periodicals sSports development Basis of Recording Special Education Tax Based on Real Property Tax Account Register/Taxpayers index card, the Special Education Tax Receivable shall be extablished at the beginning of the year, where the treasurer shal furnish the chief accountant with a duly certified list of the name of taxpayers and the amount due and collectible for the year. Based on the list, the chief accountant shall record the Special Education Tax Receivable using the Journal Entry Voucher. The additional one percent (1%) tax on real property shall be collected simultaneously with the basic real property tax and a single official receipt shall be issued indicating the amount applicable for the basic tax and additional one percent. The collecting officer shall report the collections and deposits separately. Accounting for Special Education Fund The treasurer and/or the concerned accountable officers shall maintain separate cashbook for the special education fund. The chief accountant, on the other hand, shall maintain separate registries for appropriation, allotment and obligations and books of accounts.He will also prepare separate financial reports, such as: Trial Balance, Balance Sheet, Statement of Income and Expenses, Statement of Cash Flows and supporting schedules to be submitted on time.For disbursements, separate set of Journal Entry Voucher shall also be prepared.

Trust Fund - refers to funds which have come officially into the possession of any agency of the government or of a public officer as trustee, agent, or administrator, or which have been received for the fulfillment of some obligation - it shall only be used for the specific purpose for which it was intended Accounting for Trust Fund 1. Cash Collections - shall be acknowledge by issuance of official receipt - in case of receipt through bank, the accountant shall draw a Journal Entry Voucher (JEV) based on the bank credit memo 2. Disbursements - shall be in accordance with the specific purpose stated in the trust agreement or approved budget between the trustor and the trustee (LGU) as certified by the chief accountant as to existence of funds held in trust 3. Expenditures 1. Infrastructure Projects - the construction period theory shall be applied * Construction Period Theory - All expenses such as interests, license fees, etc., during the construction period are capitalized. This ensures the accounting for the true cost of the construction. And so that the financial statements will be reflective of the operations of the agency, the balance sheet statement will show only the property, plant and equipment of an agency that are used for its operations 2. Other Projects - shall be debited to appropriate expenditure account

* Expenditures shall be closed to Government Equity account at the end of the year or upon project completion, whichever comes first. 4. Inventory Process - the perpetual inventory method and the moving average of accounting and costing the inventory shall be followed - separate perpetual inventory records shall be maintained and separate weekly Summary for Supplies and Materials for the fund shall be prepared Example: Local Disaster Risk Reduction and Management Fund Particulars Incurrence of expenses charged to the LDRRMF (current appropriations ) Transfer of unexpended Quick Response and Mitigation Funds MOOE at the end of the year Incurrence of expenses charged to the previous years unexpended Quick Response and Mitigation Funds Purchase of Equipment LGU Books General Fund Trust Fund Dr. Expense/Asse t Cr. Accounts Payable/Cash

Year-end Accounting Entries Transfer of Assets to the General Fund Dr. Disaster Response and Rescue Equipment Cr. Equity

Equipment Cr. Cash Dr. Trust Liability DRRMF Cr. Expenses Dr. Trust Liability DRRMF Cr. Disaster Response and Rescue Equipment

The New Coding Structure - designed to achieve uniformity in accounting and reporting facility in consolidating financial data and adaptability to computerization - the coding structure for Local Government Unit codes shall be: 00 (Region) 000 (City/Province) 00 Municipality Examples: Caloocan City 00-001-00 Province of Pampanga 03-061-00 Municipality of Apalit, Pampanga 03-061-01 Municipality of Jolo, Sulu 14-295-03 Baguio City 15-304-00 Province of Benguet 15-303-00 Municipality of La Trinidad, Benguet 15-303-09 * Responsibility Area - shall be composed of the functional classification of expenditures and transfers - 0 (Project) 00 (Program) 0 (Function)

Dr. Subsidy to Other Funds Cr. Cash

Dr. Cash Cr. Trust Liability DRRMF

Dr. Expenses Cr. Accounts Payable/Cas h

Dr. Disaster Response and Rescue

Special Accounts in the General Fund

Local government units shall maintain special accounts in the General Fund for the following: 1. public utilities and other economic enterprises 2. loans, interests, bond issues and other contributions for specific purposes 3. development projects funded from the share of the local government concerned from the Internal Revenue Collections 4. other special accounts which may be created by law or ordinance

Accounting for Special Accounts - shall be maintained through the use of complete subsidiary ledger - to determine whether income generated by the public utilities or economic enterprises are sufficient to meet their respective operating costs - to provide adequate information as to the assets, liabilities and equity of each special account

Hospital School Sport Center Recreational Center Housing Projects Convention/Conference Center Parking Space Ice Plant Cemetery 20% Development Fund 80% Share from Energy Sources Share from Development of National Wealth Loans Interests Bond Issues Example:

09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Subsidy from Other Funds (General Fund to Special Education Fund) GENERAL FUND BOOKS: Transfer of subsidy to Special Education Fund (Aid to SEF to finance its projects) Subsidy to Other Funds xxx Cash in Bank LCCA xxx SPECIAL EDUCATION FUND BOOKS: Receipt of subsidy funds from Other funds Cash in Treasury xxx Subsidy from Other Funds xxx Special Accounts (subsidy from General Fund proper to Operation of Public Market) BOOKS OF GENERAL FUND PROPER: Transfer of subsidy to Special Account Subsidy to Special Accounts xxx Cash in Bank LCCA xxx BOOKS OF SPECIAL ACCOUNT (OPERATION OF PUBLIC MARKET): Receipt of subsidy from General Fund Proper Cash in Bank LCCA xxx Subsidy from Special Accounts xxx

Fund/Special Account Code The following are the fund codes and special account codes that the Local Government Units shall use: FUND CODE General Fund 100 Special Educational Fund 200 Trust Fund 300 The following shall be the sub-codes for the special accounts under the General Fund: SPECIAL ACCOUNTS General Fund Proper Market Operation Slaughterhouse Operation Waterworks System Electricity, Light, and Power System Telephone System Toll Roads, Bridges, and Ferries Transportation System SUBCODE 01 02 03 04 05 06 07 08

Accounting for Profit from Operations - profits or income derived from the operation of public utilities and other economic enterprises shall first be applied for the return of the advances or loans made therefor, and any excess shall form part of the general fund of the local government unit concerned

Accounting for Supplies or Property - shall be recorded as inventory following the perpetual inventory method whether consumed or not within the accounting period - the moving average method shall be used for costing inventories - items with serviceable life of more than one year but small enough to be considered as property, plant and equipment shall be recorded as inventories upon acquisition and expense upon issuance - supplies and materials purchased out of the Petty Cash Fund for immediate use or for emergency shall be taken up as expenses

added to the assets of the government - capital outlays of the LGU eg. furniture, fixtures, transport equipment 3. Non-personal Services - include but not limited to repairing, cleaning, redecorating, and furnishing of necessary repair parts or other supplies as part of the services performed - charged to maintenance and operating expenses eg. contractual services Example: Spare parts - Issuance of PR for spare parts (enter Obligation in the RAAOMO) - Record delivery of items and charge invoice, if procurement is on credit Spare Parts Inventory xxx Accounts Payable xxx - Payment of Invoice Accounts Payable xxx Withholding Taxes Payable xxx Cash in Bank LCCA xxx If procurement is on cash Spare Parts Inventory xxx Withholding Taxes Payable xxx Cash in Bank LCCA xxx - Withdrawal of spare parts used for repair of motor vehicles Motor VehiclesMaintenance xxx Spare Parts Inventory xxx Furniture and fixture

Classification of Supplies or Property 1. Expendable Supplies or Property - normally consumed within one year or converted in the process of manufacture or construction, or those having a life expectancy of more than one year but which shall have decreased substantially in value after being put to use - part of the maintenance and operating expenses of the LGU eg. stationery, fuel, spare parts 2. Non-expendable Supplies or Property - not consumed and ordinarily retain their original identity during the period of use - have serviceable life of more than one year

Issuance of PR for Furniture and Fixture (Enter Obligation in RAAOCO) Record Charge Invoice and delivery of item Furniture and Fixtures xxx Accounts Payable xxx - Payment of delivered furniture and fixture Accounts Payable xxx Withholding Taxes Payable xxx Cash in Bank LCCA xxx

program, at the beginning of the year and of each subsequent quarters. b. Prepare ALOBS covering the requisition under the PR. Office of the GSO or the Municipal Treasurer or the office authorized to prepare the same. The Budget Officer and the Chief Accountant, for the ALOBS; and the Local Chief Executive and the Local Treasurer, for the PR. GSO/Local Treasurer Local Chief Executive GSO/Local Treasurer

c. Approve ALOBS and the PR.

Security Services - Issuance of contract for security services (Enter obligation in the RAAOMO) - Receipt of monthly billing Security and Janitorial Services xxx Accounts Payable xxx - Payment of monthly billing xxx Accounts PayableWithholding Taxes Payable xxx Cash in Bank LCCA xxx Requisitions, Deliveries, and Issuance of Supplies or Property Requisition an and Deliveries PERSON / UNIT RESPONSIBLE

d. Prepare Purchase Order. e. Approve Purchase Order. f. Receive delivered items, prepare Acceptance and Inspection Report (AIR) and signs acceptance portion. g. Inspect items, and signs inspection portion of the AIR.

Property Unit/LGU Inspector

PROCESS

a. Prepare Purchase Request (PR) for supplies and materials needed for the quarter based on the approved annual procurement

Office of the General Services Officer (GSO) or the Municipal Treasurer as the case maybe.

h. Record delivered items in the stock/property cards. Prepare Disburse-ment Voucher (DV), sign box A and forward the same with the delivery receipt/ invoice/appropriate documents to Accounting Unit.

GSO/Local Treasurer

i. Record delivered items in Supply Ledger Card/Property, Plant and Equipment Ledger Card/Work, Other Animals and Breeding Stocks Ledger Card, on the basis of the AIR. Process DV and follow disbursement process. Prepare JEV. Reconcile JEV with the entries in the ledger cards recorded on the basis of the AIR. j. Prepare Stock Availability Inquiry (SAI) and forward to Accounting Unit. k. Verify records, advise requisitioning unit. l. Prepare Requisition and Issue Slip (RIS) and forward to Property/ Supply Unit. m. Release supplies/equipment and record issuance in the stock cards/property cards. n. Consolidate RIS for which supplies and materials were issued and prepare the Summary of Supplies and Materials Issued

Accounting Unit

(SSMI) and forward to Accounting Unit. o. Prepare JEV on the basis of SSMI, and record withdrawals in Supply Ledger Cards (SLC). Accounting Unit

Issuance - issuances of supplies or property shall be properly receipted using the forms prescribed under applicable rules and regulations on supply and property management in local government units - the Acknowledgement Receipt for Equipment (ARE) shall be used for transfer of equipment * Physical count of inventory items by type shall be conducted semestrally and reported in the Report of the Physical Count of Inventories (RPCI). - submitted to the Auditor concerned not later than July 31 and January 31 of each year for the first and second semesters, respectively * Physical count of property, plant, and equipment by type shall be made annually and reported on the Report on the Physical Count of Property, Plant and Equipment (RPCPPE). - submitted to the Auditor concerned not later than January 31 of each year * The Waste Materials Report (WMR) and the Inventory and Inspection Report of Unserviceable Property (IIRUP) shall be used in the disposal of supplies or property.

Requisitioning Unit

Accounting Unit

Requisitioning Unit

GSO/Local Treasurer

GSO/Local Treasurer

Revised Rates of Representation and Transportation Allowances (RATA) - Local Budget Circular No. 2009-91 dated March 27, 2009 under Section 44, General Provisions of R.A. No. 9524, General Appropriations Act

45%/55% limit on personal services expenditures mandated under Section 325(a), R.A. No. 7160, Local Government Code of 1991 The following officials and employees of provincial, city, and municipal governments are equated to national government officials and employees entitled to RATA under the General Appropriations Act: 1. Local Chief Executive 2. Local Vice Executive 3. Sanguninan Members 4. Department Heads 5. Assistant Department Heads 6. Chiefs of Hospitals 7. Division Chiefs in Special Cities