Sec. 11. Accounting Procedures for Budgetary Accounts.

Summarized hereunder is the process in accounting for budgetary accounts:

PROCESS

PERSON / UNIT RESPONSIBLE

a. Records in appropriate RAAOs approved appropriation Appropriation Ordinance.

the the per

Office of the Accountant

b. Forwards the advice of allotments to the Office of the Accountant and returns the work plan to the concerned departments/ offices. c. Enters allotments in the RAAOs. the

Office of the Budget Officer

Office of the Accountant

d. Prepares ALOBS based on disbursement vouchers/purchase requests and/or supporting documents. Signs the appropriate box for requesting office. Forwards the same to the Office of the Budget Officer. e. Certifies the ALOBS as to the existence of appropriations based on the appropriation ordinance. Assigns ALOBS number and forwards the same to the Office of the Accountant. f. Certifies the ALOBS as to the obligations of allotments. Records the

Heads of departments/offi ces

Budget Officer

Chief Accountant

PROCESS obligation in the appropriate column of the RAAOs and in the Status of Obligation portion (Obligation) of the ALOBS. g. Records paid disbursement vouchers in the Status of Obligation portion (Payments) of the ALOBS. Any balance appearing in the ALOBS after full payment of obligations shall form part of unobligated allotment. Adjust accordingly the amount of recorded obligations in the RAAOs.

PERSON / UNIT RESPONSIBLE

Office of the Accountant

h. At the end of each month, reconcile records on allotments available for obligation.

Budget Officer and Chief Accountant

Sec. 35. Receipts and Collection Process. The following is a summary of the receipt and collection process in the LGU:

PROCESS

PERSON / UNIT RESPONSIBLE PROCESS

Receive payment from taxpayers/ creditors and issue Official Receipt (OR). Prepare Report of Collections and Deposits. Remit to the Liquidating Officer (if one is designated) or Treasurer. Check remittances and verifies accountable forms of collectors/tellers. Consolidates collections and remits to the Treasurer/Cashier. Prepares RCD. Receive remitted collections, consolidates the same and prepares RCD. Records in the Cashbook Cash in Treasury. Deposit collections in the appropriate bank account per authorized depository bank. Records deposit in the Cashbook Cash in Bank. Forward RCD to Accounting Unit with copies of ORs and validated deposit slips.

Prepare Journal of Entry Voucher and record in the Cash Receipt Journal. Sec. 36.

PROCESS

PERSON / UNIT RESPONSIBLE Proforma Accounting Entries. The following are proforma accounting entries for income, collection and deposit:

Particulars

INCOME

1. Real Property Tax Basic A. Books of the Municipality

a. Setting-up of RPT Receivable

RPT = P1,000 RPT Sharing: Municipal - 40% Province - 35%

Barangay - 25%

b. Receipt of Payment

PROCESS

PERSON / UNIT RESPONSIBLE

Particulars

c. Distribution of Collection RPT Sharing: Municipal - 40% Province - 35%

Barangay - 25%

d. Deposit of Collections

e. Remittance of Share (Province)

f. Remittance of Share (Barangay)

B.

Books of the Province

a. Upon receipt of the Summary of the JEV from the Municipal Accountant

PROCESS

PERSON / UNIT RESPONSIBLE

Particulars

b. Upon receipt of share

2. Operating and Service Income

a. Receipt of Income

b. Deposit of Collections

3. Share from Internal Revenue Collections

a. Receipt of Notice of Funding Check Issued from the DBM and credit memo from the bank for Share from Internal Revenue Collections

PROCESS

PERSON / UNIT RESPONSIBLE

Particulars

b. Receipt of Notice of Funding Check Issued from the DBM for Share from Internal Revenue Collections

4. Grants and Donations

a. Receipt of grants and donations in cash (Donations in kind shall be bookedup using the appropriate asset account)

b. Receipt of grants and donations in kind Motor Vehicle: Original Cost P1,000 Less: Acc. Depn. 200 Book Value 800 P

PROCESS

PERSON / UNIT RESPONSIBLE

Particulars

5. BORROWINGS

a. Receipt of borrowed funds from bank Principal P1,000 Bank Charges - 10 Interest Expense- 12

b. Receipt of borrowed funds from other agency -

Principal P1,000 Interest Expense 6

c. Payment of loan amortization

6. SUBSIDIES

PROCESS

PERSON / UNIT RESPONSIBLE

Particulars

a. 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)

SPECIAL EDUCATION FUND BOOKS

Receipt of subsidy funds from Other funds

b. Special Accounts (subsidy from General Fund proper to Operation of Public Market)

BOOKS OF GENERAL FUND PROPER

PROCESS

PERSON / UNIT RESPONSIBLE

Particulars

Transfer of subsidy to Special Account

BOOKS OF SPECIAL ACCOUNT (OPERATION OF PUBLIC MARKET)

Receipt of subsidy from General Fund Proper

7. REFUND OF CASH ADVANCES

a. Cash Advance by an Officer for Local Travel

a. To take up the cash advance

b. To take up refund of cash advance

PROCESS

PERSON / UNIT RESPONSIBLE

Particulars

b. Cash Advance by a Disbursing Officer for Salaries and Wages

a. To take up the cash advance

b. To take up refund of cash advance

8. RECEIPT OF CASH BONDS

a. To take up receipt of performance bond in cash

b. To take up deposit of performance bond

Cash in Bank LCCA Cash in Treasury

110 101

50 50

PROCESS
c. To take up refund of performance bond Performance/ Bidders/ Bail Bonds Payable Cash in Bank LCCA

PERSON / UNIT RESPONSIBLE

414 110

50 50

Sec. 44. Check Disbursement Process. The steps in disbursements through issuance of check is shown below: PROCESS PERSON / UNIT RESPONSI BLE Concerned Office

a. Gather supporting documents, and approved ALOBS, prepare DV and forward to Head of Department. b. Sign Box A of DV and submit to the Accounting Unit. c. Check completeness of documents, assign number to DV, sign Box B and forward to Treasurer. d. Verify claim, certify cash availability (Box C) and forward to approving officer. Note: If funds are not available, return to Accountant for recording in the books as Accounts Payable (AP). For AP,

Supervisor/Head of Department Accounting Unit

Treasurer

PROCESS

PERSON / UNIT RESPONSI BLE

JEV shall be prepared by Accounting Unit and JEV number reflected in the DV. JEV for AP is recorded in General Journal. Accountant retains copy of DV and forwards to Treasurer.

e. Approve transaction (Box D) forward DV to Cashier.

and

Local Chief Executive or authorized approving officer

f. Prepare, sign check and forward check with DV to countersigning officer. g. Countersign check and forward to Accountant for preparation of the Accountants Advice of Local Check Disbursements. h. Prepare Accountants Advice of Local Check Disbursements and submit to bank. Return DV, check and supporting documents to Cashier/Treasurer. i. Record check in the Check Register and release check to claimant. Record disbursement in Cashbook Cash in Bank. Prepare Report of Checks Issued. Forward RCI with DV and supporting documents to Accounting Unit.

Treasurer

Administrator/ Vice-Mayor for the Local Sanggunian Disbursements Accountant

Treasurer

PROCESS

PERSON / UNIT RESPONSI BLE Accounting Unit

j. Prepare the JEV based on individual checks/voucher; sign Prepared By portion (approved by Chief Accountant), and record JEV in the Check Disbursements Journal. Post monthly to the General Ledger/Subsidiary Ledgers. k. Forward RCI, DV, supporting documents and JEV to the Office of the Auditor.

Accountant

Sec. 49. Cash Disbursement Process. Disbursement process for payment of salaries and wages out of cash advances is as follows: PROCESS PERSON / UNIT RESPONSI BLE Concerned offices

a. Processing of Payrolls to be paid by cash is the same as that of steps (a) to (e) for check disbursements. Gather duly certified and approved payrolls to be paid out of cash advance. Prepare DV for cash advance corresponding to the net amount of payroll/s. Sign Box A of DV and submit to the Accounting Unit. Check completeness of documents/ previous cash advance liquidated, assign number to DV, sign Box B and forward to Approving Officer. Approves DV and forward to Treasurer for preparation of checks.

Office of the Treasurer

Accounting Unit

Local Chief Executive

PROCESS

PERSON / UNIT RESPONSI BLE Treasurer

Prepare and sign check, and forward check with DV to countersigning officer. Countersign check and forward to Accountant for preparation of Advice. Prepare Accountants Advice of Local Check Disbursements and return DV, check and supporting documents to Cashier/Treasurer. Encash check and pay claimants. Record disbursement in Cashbook Cash Advances. Return unused cash to the Treasurer/ Cashier. An official receipt (OR) shall be issued by the Treasurer/Cashier to acknowledge the return of unused cash and indicate check no. of cash advance granted on the face of OR. Record the refund as credit to cash advance and attach OR to the Cashbook Cash Advances. Prepare Report of Disbursement, attach paid payrolls/ supporting documents and copy of OR for unused cash advance returned to Treasurer/Cashier. Sign "Certified Correct portion of Report of Disbursement and submit to Accounting Unit. Prepare JEV to record the liquidation of cash advance. Record JEV in the Cash Disbursements Journal (CDJ). Post monthly to the General Ledger/ Subsidiary Ledger.

Administrator

Accountant

Treasurer/ Disbursing Officer Disbursing Officer

Disbursing Officer

Accountant

PROCESS

PERSON / UNIT RESPONSI BLE Accountant

Forward Report of Disbursement and supporting documents including JEV to the Office of the Auditor.

Sec. 52. Pro-forma Accounting Entries. Pro-forma accounting entries for disbursement transactions are shown below:
Acct . Cod e

Particulars

Account Title

Debit

Credit

1.

Payment through Cash Advances

a. Cash advance for personal services

Enter obligation in RAAOPS for P18,000 Salaries and Wages, P5,000 Additional Compensation, and P3,000 Personnel Economic Relief Allowance (PERA).

1. Grant of cash advance for payroll

Cash Disbursing Officers Cash in Bank LCCA

107 110

21,00 0

21,000

2. Liquidation of cash advance for payroll

Salaries and Wages Regular Pay PERA Additional

801 804

18,00 0 3,000

Acct . Cod e

Particulars

Account Title Compensation Withholding Taxes Payable GSIS Payable PAG-IBIG Payable Cash Disbursing Officers

Debit 5,000

Credit

805

410 411 412

2,000 1,500 1,500

107

21,000

Enter obligation in RAAOPS for P1,500 Life and Retirement Insurance Contributions and P1,500 PAG-IBIG Contributions.

3. Government share for life and retirement insurance and PAG-IBIG Contributions

Life and Retirement Insurance Contributions PAG-IBIG Contributions 817 1,500

818 GSIS Payable PAG-IBIG Payable 411 412

1,500 1,500 1,500

b. Petty Cash Fund

For establishment of fund, Enter obligation in RAAOMO as Other Expenses for P6,000

1. Release of cash advance for petty cash fund

Petty Cash Fund

105

6,000

Acct . Cod e

Particulars miscellaneous expenses

Account Title Cash in Bank LCCA

Debit

Credit 6,000

110

Enter obligation in RAAOMO for Office Supplies P2,500, Travelling Expenses P500, Office Equipment Maintenance P1,000 and Other Expenses of P800.

2. Replenishment of petty cash fund during the year

Traveling Expenses Local Office Supplies Expenses Office Equipment Maintenance Other Expenses Cash in Bank LCCA

831

500

849

2,500

882 950 110

1,000 800 4,800

Enter obligation in RAAOMO for Office Supplies P4,000 and Traveling Expenses of P1,000.

3. Liquidation at year end

Traveling Expenses Local Office Supplies Expenses Petty Cash Fund

831

1,000

849 105

4,000 5,000

Acct . Cod e

Particulars

Account Title

Debit

Credit

Cancel RAAOMO for setting up of petty cash fund at the start of the year and refund for a total of P6,000.

4. Return of unused Petty Cash Fund.

Cash in Treasury Petty Cash Fund

101 105

1,000 1,000

c. Cash advance for travel

Enter obligation in RAAOMO for Travel of P1,000

1. Grant of cash advance

Due from Officers and Employees Cash in Bank LCCA

128 110

1,000 1,000

2. Liquidation of cash advance during the current year (assuming only P900 was utilized and P100 was refunded)

Traveling Expenses Local Due from Officers and Employees

831

900

128

900

Adjust RAAOMO for refund of cash advance of P100

3. For amount refunded where official receipt was issued

Cash in Bank LCCA Due from Officers

110

100

Acct . Cod e

Particulars

Account Title and Employees

Debit

Credit 100

128

2. Payment by Check

a. Maintenance and Other Operating Expenses

Enter obligation in RAAOMO for rent P3,000

1. Payment of rent

Rent Expense Cash in Bank LCCA

841 110

3,000 3,000

Enter obligation in RAAOMO for electricity of P1,500 and telephone/internet of P2,000

2. Payment of utilities (MERALCO and PLDT)

Electricity Telephone/Telegr aph and Internet Cash in Bank LCCA

835

1,500

837 110

2,000 3,500

Enter obligation in RAAOMO for training and seminar expenses of P1,000

3. Payment of seminar fee

Training and Seminar

Acct . Cod e

Particulars

Account Title Expenses Cash in Bank LCCA

Debit 1,000

Credit

833 110

1,000

b. Financial Expenses

Enter obligation in RAAOFE for bank charges of P300

1. Bank charges upon receipt of bank statement

Bank Charges Cash in Bank LCCA

951 110

300 300

Enter obligation in RAAOFE for interest expense of P400

2. Interest Expense

Interest Expenses Cash in Bank LCCA

952 110

400 400

c. Office Equipment Enter obligation in RAAOCO for P6,000 for purchase of equipment

1. Issuance of PO to dealer

No entry

2. Receipt of office equipment

Office Equipment Cash in Bank LCCA

222 110

6,000 6,000

Acct . Cod e

Particulars

Account Title

Debit

Credit

d. Construction of Roads by Contract Enter obligation in RAAOCO for P800,000 for construction of road. 1. Payment of first billing for 50% accomplishment Construction in Progress Roads, Highways and Bridges 232 Withholding Taxes Payable Cash in Bank LCCA 400,0 00

410 110

40,000 360,00 0

2. Payment of second billing 100% accomplishment

Construction in Progress Roads, Highways and Bridges 232 Withholding Taxes Payable Cash in Bank LCCA 400,0 00

410 110

40,000 360,00 0

SPECIAL EDUCATION FUND (SEF)

Acct . Cod e

Particulars

Account Title

Debit

Credi t

Particulars 1. Set-up Special education Tax

Account Title Special Education Tax Receivable

Acct . Cod e

Debit

Credi t

125

500,0 00

Receivable Total Receivables P500, 000 Provincial Share P250, 000

Deferred Special Education Tax

Income

449

500,0 00

2. Collection of Special Education Tax P200,000.

Cash in Treasury Special Education Tax Receivable

101

200,0 00 200,0 00

125

Computation of Shares of LGUs in RPT 50% of

Deferred Special Education Tax Income 449 200,0 00

P200,000 for Provincial

Special Education Tax

713 431

100,0 00 100,0 00

Share

Due to LGUs

Particulars 3. Deposit of collections with authorized depository bank

Account Title Cash in Bank LCCA Cash in Treasury

Acct . Cod e

Debit 200,0 00

Credi t

110 101

200,0 00

4. Remittance of share to Province ( Special Education Tax) P100,000

Due to LGUs (Province)

431

100,0 00

Cash in Bank LCCA

110

100,0 00

5. Receipt of allotment for Allotment Class: Personal Services P50,000 MOOE 20,000 Capital Outlay 30,000 Total P100,000 -

Memo entry in Registry of Appropriations , Allotments and Obligations (Personal Services (RAAOPS, MOOE RAAOMO, Capital Outlay RAAOCO)

6. Obligation for PS Salaries of teachers for extension class

Memo entry in RAAOPS

Particulars P30,000

Account Title

Acct . Cod e

Debit

Credi t

7. Grant of cash advance for payroll

Cash Disbursing Officers Cash in Bank LCCA

107 110

25,00 0

25,00 0

8. Payment of Salaries Salaries per Payroll P 30,000 Less: Deductions (Personal Share) Life & Ret. P 2,850 Pag-ibig 600

Salaries and Wages Regular Pay Cash Disbursing Officers Withholding Taxes Payable

801

30,00 0

107

25,00 0

410

1,050

PhilHealth 500 W/holding Tax 1,050 5,00 0 Net Pay per Payroll P25,000

GSIS Payable PAG-IBIG Payable

411 412

2,850 600

PHILHEALTH Payable 413 500

Particulars

Account Title

Acct . Cod e

Debit

Credi t

9. Remittance of salary deductions

Withholding Taxes Payable GSIS Payable PAG-IBIG Payable PHILHEALTH Payable Cash in Bank LCCA

410 411 412

1,050 2,850 600

413 110

500 5,000

10. Obligation for Government Share: Life & Ret. Ins. Contributions P2,850 Pag-ibig Contributions 600 PhilHealth Contributions 500 Total P3,950

Memo entry in RAAOPS

11. Payment of Government Share

Life & Retirement Insurance Contributions PAG-IBIG Contributions 817 2,850

Particulars

Account Title

Acct . Cod e

Debit 500

Credi t

818 PHILHEALTH Contributions Cash in Bank LCCA

819 110

600 3,950

12. Obligation of Traveling Expenses P500

Memo entry in RAAOMO

13. Grant of cash advance

Due from Officers & Employees Cash in Bank LCCA

128 110

500 500

14. Liquidation of cash advance

Traveling Expenses Local Due from Officers & Employees

831

480

128

480

15. Adjustment of obligation of travel.

Memo entry in RAAOMO

Particulars 16. Refund of cash advance

Account Title Cash in Treasury Due from Officers & Employees

Acct . Cod e

Debit 20

Credi t

101

128

20

17. Deposit of cash refund

Cash in Bank LCCA Cash in Treasury

110 101

20 20

18. Obligation of bill received from MERALCO

Memo entry in RAAOMO

19. Payment of MERALCO bill P800

Electricity Cash in Bank LCCA

835 110

800 800

20. Obligation for the purchase of Office Supplies P500

Memo entry in RAAOMO

21. Payment of office supplies

Office Supplies Inventory Withholding Taxes Payable Cash in Bank

149

500

410 110

20 480

Particulars

Account Title LCCA

Acct . Cod e

Debit

Credi t

22. Obligation of Equipment per Purchase Order P30,000

Memo entry in RAAOCO

23. Payment of equipment with Invoice/Delivery Receipt

Office Equipment Withholding Taxes Payable Cash in Bank LCCA

222

30,00 0 3,000 27,00 0

410 110

24. Receipt of fund transfer from General Fund thru bank

Cash in Bank LCCA Subsidy from Other Funds

110

5,000

605

5,000

Adjusting Entries:

1. Depreciation of Equipment using the Straight Line Method:

Depreciation Office Equipment Accumulated

922

6,00 0

Particulars Equipment : Life Amount 5 yrs. P6,000

Account Title Depreciation Office Equipment

Acct . Cod e

Debit

Credi t

322

6,000

Closing Entries :

1. Closing of Income Accounts

Special Education Tax Subsidy from Other Funds

713

100, 000

605

5,00 0

Income and Expense Summary

532

105,00 0

2. Closing of Expense Accounts

Income and Expense Summary Salaries & Wages Regular Pay Life & Retirement Insurance Contributions PAG-IBIG Contributions PHILHEALTH Contributions

532

41,2 30

801

30,000

817

2,850

818

600

819

500

Particulars

Account Title Traveling Expenses Local Electricity Depreciation Office Equipment

Acct . Cod e

Debit

Credi t

831 835

480 800

922

6,000

3. Closing of Income and Expense Summary

Income and Expense Summary Retained Operating Surplus

532

63,7 70

534

63,770

4. Closing of Retained Operating Surplus

Retained Operating Surplus Government Equity

534 501

63,7 70 63,770

a. Disbursement by check PROCESS PERSON / UNIT RESPONSIBLE Concerned

1. Gather

supporting

PROCESS documents, prepare DV/payroll and forward to Head of Department. 2. Sign Box A of DV and submit to the Accounting Unit. 3. Check completeness of documents and verify existence of funds held in trust, assign number to DV/Payroll, sign Box B and forward to Treasurer. 4. Verify claim, certify cash availability (Box C) and forward to approving officer. 5. Approve transaction (Box D) and forward DV to Cashier.

PERSON / UNIT RESPONSIBLE Office

Supervisor/Hea d of Department Accounting Unit

Treasurer

Local Chief Executive/ Administrator of the Fund Treasurer

6. Prepare and sign check and forward check with DV to countersigning officer. 7. Countersign check and forward to Accountant for preparation of the Accountants Advice.

Administrator

8. Prepare Accountants Advice of Local Check Disbursements and return DV, check and supporting documents to Cashier/Treasurer.

Accountant

PROCESS 9. Issue check to claimant. Record disbursement in Cashbook Cash in Bank. Prepare Report of Checks Issued (RCI), forward RCI with DV and supporting documents to Accounting Unit. 10. Prepare the JEV based on individual checks/voucher; sign Prepared By portion (approved by Chief Accountant), and record JEV in the Check Disbursements Journal. Post monthly to the General Ledger/Subsidiary Ledgers 11. Forward RCI, DV, supporting documents and JEV to the Office of the Auditor for final custody and post audit.

PERSON / UNIT RESPONSIBLE Treasurer

Accounting Unit

Accountant

b. Payments through cash advances For payments through cash advances, procedures 1 to 5 for check disbursement shall be followed. The rest of the procedures shall be the same as that of the General Fund. . Likewise, separate weekly Summary for Supplies and Materials Issued pertaining to the fund shall be prepared.

Sec. 104. Pro-forma Accounting Entries for Trust Funds. Accounting entries for typical transactions under the trust funds are as follows:

Particulars

Account Title

Acct . Cod e

Debit

Credit

1.

Receipt of grant from NGA

a. Receipt of grant direct to bank from NGA for: a. Construction of road P2M b. Purch ase of construction Equipment P500,000 Cash in Bank LCCA Project Equity 502-01 P2,500,000 502 2,500,00 0 110 2,500,0 00

b. Issuance of check with approved DV for payment to contractor upon receipt of first billing 50% accomplished

Construction in Progress Roads, Highways & Bridges Withholding Taxes Payable Cash in Bank LCCA 410 110

232

1,000,0 00 100,000 900,000

c. Submission of statement of disbursements to grantor

No entry

d. Issuance of check with

Construction in Progress

Particulars approved DV for payment to contractor upon receipt of second billing 100% accomplished

Account Title Roads, Highways & Bridges Withholding Taxes Payable Cash in Bank LCCA

Acct . Cod e

Debit

Credit

232

1,000,0 00 100,000 900,000

410 110

e. Transfer of completed construction to Public Infrastructure

Public Infrastructures Construction in Progress Roads, Highways & Bridges

243

1,000,0 00

232

1,000,0 00

f. Remittance of taxes w/held

Withholding Taxes Payable Cash in Bank LCCA

410 110

200,000 200,000

g. Purchase of equipment

Construction and Heavy

Particulars

Account Title Equipment Withholding Taxes Payable Cash in Bank LCCA

Acct . Cod e

212

Debit 500,000

Credit

410 110

50,000 450,000

h. Payment of withholding tax

Withholding Taxes Payable Cash in Bank LCCA

410 110

50,000 50,000

i. Submission of full liquidation to grantor and transfer of completed road and equipment to GF for LGU use

Project Equity Public Infrastructures Construction and Heavy Equipment

502 243

2,500,0 00

2,000,0 00

212 500,000

Note: Under the GF books, completed infrastructure project shall be recorded in the Registry of Public Infrastructures with the TF JEV No. as basis. The transferred equipment shall be recorded as follows: General Fund Books: Public Infrastructures Construction and Heavy Equipment Invested Equity 243 2,000,0 00

212 537

500,000 2,500,0 00

Particulars

Account Title

Acct . Cod e

Debit

Credit

At the end of the year:

a. Closing of Invested Equity to Government Equity

Invested Equity Government Equity

537 502

2,500,0 00

2,500,0 00

b. Transfer of Public Infrastructure to RPI

Government Equity Public Infrastructures

502 243

2,000,0 00

2,000,0 00

2.

Receipt of grant with counterpart fund from LGU

a. Project budget as agreed upon between grantor and LGU for project:

Grantor Building 1.2M Equipment .3M LGU Funded Office supplies -1M Salaries of project

Particulars Personnel .4M Total 2M

Account Title

Acct . Cod e

Debit

Credit

b.

Receipt of funds from foreign funding institution thru national government agency

Cash in Bank LCCA Project Equity 502-01 1,500,000 502-02 500,000

110 502

2,000,0 00

2,000,0 00

Note: Entry in LGU General Fund books shall be

Grants and Donations Cash in Bank LCCA

889 110

500,000 500,000

c.Issuance of check with approved DV for payment to contractor for Construction of Building, 50% accomplished.

Construction in Progress Agency Assets Withholding Taxes Payable Cash in Bank LCCA 410 110 50,000 450,000 230 500,000

Particulars

Account Title

Acct . Cod e

Debit

Credit

d. Remittance of withholding tax

Withholding Taxes Payable Cash in Bank LCCA

410 110

50,000 50,000

e. Issuance of check with approved DV for cash advance on salaries and wages of project administrative personnel

Cash Disbursing Officers Cash in Bank LCCA

107 110

170,000 170,000

f. Liquidation of Cash Advances

Salaries and Wages Casual/ Contractual Withholding Taxes Payable Cash Disbursing Officers 803 200,000

410

30,000

107

170,000

g.

Remittance of tax withheld

Withholding Taxes Payable

410

30,000

Particulars

Account Title Cash in Bank LCCA

Acct . Cod e

Debit

Credit 30,000

110

h. Issuance of check with approved DV for purchase of supplies and materials

Office Supplies Inventory Cash in Bank LCCA

149 110

100,000 100,000

i. Issuance of office supplies

Office Supplies Expenses Office Supplies Inventory

849

60,000

149

60,000

j. Purchase of IT equipment

IT Equipment and Software Withholding Taxes Payable Cash in Bank LCCA

215

250,000

410 110

25,000 225,000

k.

Remittance of withholding tax

Withholding Taxes Payable Cash in Bank LCCA

410 110

25,000 25,000

Particulars

Account Title

Acct . Cod e

Debit

Credit

l. Issuance of check for installation of equipment

IT Equipment and Software Cash in Bank LCCA

215 110

50,000 50,000

End of Year m.Closing. of expenses to Project Equity Project Equity 502-02 P260,000 Salaries and Wages Casual/ Contractual Office Supplies Expenses 849 60,000 502 260,000

803

200,000

Succeeding year n. Issuance of check with approved DV for payment to contractor for Construction of Building 100% accomplished.

Construction in Progress Agency Assets Withholding Taxes Payable Cash in Bank LCCA 410 110 70,000 630,000 230 700,000

Particulars

Account Title

Acct . Cod e

Debit

Credit

o. Remittance of withholding tax

Withholding Taxes Payable Cash in Bank LCCA

410 110

70,000 70,000

p. Transfer of construction in progress to property, plant and equipment account

Property Plant and Equipment Building Construction in Progress Agency Assets 230 1,200,0 00 204 1,200,0 00

q. Issuance of check for cash advance on salaries and wages

Cash Disbursing Officers Cash in Bank LCCA

107 110

170,000 170,000

r. Liquidation of salaries and wages

Salaries and Wages Casual/Contract ual Withholding Taxes Payable Cash Disbursing Officers

803

200,000

410

30,000

107

170,000

Particulars s. Remittance of withholding tax

Account Title Withholding Taxes Payable Cash in Bank LCCA

Acct . Cod e

Debit

Credit

410 110

30,000 30,000

t. Issuance of office supplies

Office Supplies Expenses Office Supplies Inventory

849

40,000

149

40,000

End of Year u. Closing of expenses to Project Equity Project Equity Salaries and Wages Casual/ Contractual Office Supplies Expenses 803 200,000 502 240,000

849

40,000

Project Completion v. Transfer of building and equipment to the General Fund as follows:

Project Equity Building IT Equipment and Software

502 204

1,500,0 00

1,200,0 00

215 300,000

Particulars General Fund Books:

Account Title Building IT Equipment and Software Invested Equity

Acct . Cod e

204

Debit 1,200,0 00

Credit

215 537

300,000 1,500,0 00

At end of year:

Invested Equity Government Equity

537 501

1,500,0 00 1,500,0 00

Sec. 122. Inventory Process. The following is the general process to be followed in the control of inventory:

PROCESS

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

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

PROCESS

PERSON / UNIT RESPONSIBLE office authorized to prepare the same.

c. Approve ALOBS and the PR.

The Budget Officer and the Chief Accountant, for the ALOBS; and the Local Chief Executive and the Local Treasurer, for the PR.

d. Prepare Purchase Order.

GSO/Local Treasurer

e. Approve Purchase Order.

Local Chief Executive

f. Receive delivered items, prepare Acceptance and Inspection Report (AIR) and signs acceptance portion.

GSO/Local Treasurer

g. Inspect items, and signs inspection portion of the AIR.

Property Unit/LGU Inspector

h. Record delivered items in

GSO/Local

PROCESS the stock/property cards. Prepare Disbursement Voucher (DV), sign box A and forward the same with the delivery receipt/invoice/ appropriate documents to Accounting Unit.

PERSON / UNIT RESPONSIBLE 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.

Accounting Unit

j. Prepare Stock Availability Inquiry (SAI) and forward to Accounting Unit.

Requisitioning Unit

k. Verify records, requisitioning unit.

advise

Accounting Unit

l. Prepare Requisition and Issue Slip (RIS) and forward to Property /Supply Unit.

Requisitioning Unit

m. Release supplies/equipment and record issuance in the stock cards/property cards.

GSO/Local Treasurer

PROCESS

PERSON / UNIT RESPONSIBLE GSO/Local Treasurer

n. Consolidate RIS for which supplies and materials were issued and prepare the Summary of Supplies and Materials Issued (SSMI) and forward to Accounting Unit.

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

Accounting Unit

Sec. 126. ProForma Accounting Entries. The following are the proforma accounting entries for supplies or property:

Acct . Cod e

Debit

Credit

Particulars

Account Title

1. Supplies and Materials 1.1 Spare parts Issuance of PR for spare parts

(enter Obligation in the RAAOMO- P100)

Record delivery of items and charge invoice, if procurement is on credit

Spare Inventory

Parts 155 100 100

Accounts Payable 401

Payment of Invoice

Acct . Cod e

Debit 100

Credit

Particulars

Account Title Accounts Payable Withholding Taxes Payable Cash in Bank LCCA

401

410 110 80

20

If Procurement is on Cash Spare Inventory Parts

155

100

Withholding Taxes Payable Cash in Bank LCCA

410 110 80

20

Spare parts worth P50 used for repairs of motor vehicles.

Motor Vehicles Maintenance Spare Parts Inventory

878 155

50 50

1.2 Office Supplies Issuance of PR for office supplies P100.

(Enter obligation in the RAAOMOP100)

Record delivery of items and charge invoice, if procurement is on credit.

Office Supplies Inventory Accounts Payable

149

100

401

100

Acct . Cod e

Debit

Credit

Particulars Payment of Charge Invoice

Account Title Accounts Payable Withholding Taxes Payable Cash in Bank LCCA 401 100

410 110

20 80

If procurement is on cash basis

Office Supplies Inventory Withholding Taxes Payable Cash in Bank LCCA

149

100

410 110 80

20

Withdrawal of Office Supplies for office use.

Office Supplies Expenses Office Supplies Inventory 849 100

149

100

1.3

Accountable Forms Issuance of PR for accountable forms Accountable Forms Inventory

(Enter obligation in the RAAOMO P100.00)

Acct . Cod e

Debit 100

Credit

Particulars Procurement on a cash basis

Account Title Withholding Taxes Payable Cash in Bank LCCA

148

410 110

20 80

Withdrawal of office supplies

Accountable Forms Expenses Accountable Forms Inventory 848 100

148

100

2. Equipment

2.1 Office Equipment Issuance of PR for Office Equipment -P20,000

(Enter obligation in RAAOCOP20,000)

Record charge invoice and Delivery of item.

Office Equipment Accounts Payable

222 401

20,00 0

20,000

Payment of delivered Equipment

Accounts Payable Withholding Taxes Payable Cash in Bank LCCA

401

20, 000

410 110

2,000 18,000

Acct . Cod e

Debit

Credit

Particulars

Account Title

2.2 Issuance of PR for Furniture and Fixture P20,000 Record Charge Invoice and delivery of item

(Enter Obligation in RAAOCOP20,000)

Furniture Fixtures

and

224 401

20,00 0

20,000

Payment of delivered furniture and fixture

Accounts Payable

401 Accounts Payable Withholding Taxes Payable Cash in Bank LCCA 410 110 20,00 0 2,000 18,000

3. Non-Personal Services

3.1 Security Services (Enter obligation in the RAAOMOP120,000)

Issuance of contract for security services P120,000

Security and

Acct . Cod e

Debit

Credit

Particulars Receipt of monthly BillingP10,000

Account Title Janitorial Services Accounts Payable 858 401 Accounts Payable 10,00 0

10,000

Payment of monthly billing

Withholding Taxes Payable Cash in Bank LCCA

401 10,00 0 410 110 1,000 9,000

3.2 Plumbing Services (Enter obligation in the RAAOMOP120,000)

Signing of contract for Plumbing Services P120,000

General Services Accounts Payable 857 401 Accounts Payable Withholding Taxes Payable Cash in Bank LCCA 401

10,000

Receipt of monthly billing P10,000

10,00 0

10,000

Payment of Monthly Billing

410 110

1,000 9,000

Sec. 126. ProForma Accounting Entries. The following are the proforma accounting entries for supplies or property:

Acct . Cod e

Debit

Credit

Particulars

Account Title

1. Supplies and Materials 1.4 Spare parts Issuance of PR for spare parts

(enter Obligation in the RAAOMO- P100)

Record delivery of items and charge invoice, if procurement is on credit

Spare Inventory

Parts 155 100 100

Accounts Payable 401

Payment of Invoice

Accounts Payable 401 Withholding Taxes Payable Cash in Bank LCCA 410 110

100

20 80

If Procurement is on Cash

Spare Inventory

Parts

155

100

Withholding Taxes Payable Cash in Bank

410

20

Acct . Cod e

Debit

Credit 80

Particulars

Account Title LCCA

110

Spare parts worth P50 used for repairs of motor vehicles. Motor Vehicles Maintenance Spare Parts Inventory

878 155

50 50

1.5 Office Supplies Issuance of PR for office supplies P100.

(Enter obligation in the RAAOMOP100)

Record delivery of items and charge invoice, if procurement is on credit.

Office Supplies Inventory Accounts Payable

149

100

401

100

Accounts Payable Payment of Charge Invoice Withholding Taxes Payable Cash in Bank LCCA

401

100

410 110

20 80

If procurement is on cash basis

Office Supplies Inventory

Acct . Cod e

Debit

Credit

Particulars

Account Title Withholding Taxes Payable Cash in Bank LCCA

149

100

410 Withdrawal of Office Supplies for office use. Office Supplies Expenses Office Supplies Inventory 849 100 110 80

20

149

100

1.6

Accountable Forms Issuance of PR for accountable forms Accountable Forms Inventory Procurement on a cash basis Withholding Taxes Payable Cash in Bank LCCA 148 100

(Enter obligation in the RAAOMO P100.00)

410 110

20 80

Withdrawal of office supplies

Accountable Forms Expenses Accountable Forms Inventory 848 100

Acct . Cod e

Debit

Credit 100

Particulars

Account Title 148

2. Equipment

2.3 Office Equipment Issuance of PR for Office Equipment -P20,000

(Enter obligation in RAAOCOP20,000)

Record charge invoice and Delivery of item.

Office Equipment Accounts Payable

222 401

20,00 0

20,000

Payment of delivered Equipment

Accounts Payable Withholding Taxes Payable Cash in Bank LCCA

401

20, 000

410 110

2,000 18,000

2.4 Issuance of PR for Furniture and Fixture P20,000 Record Charge

(Enter Obligation in RAAOCOP20,000)

Acct . Cod e

Debit

Credit

Particulars Invoice and delivery of item

Account Title Furniture Fixtures and 224 401 20,00 0

20,000

Payment of delivered furniture and fixture

Accounts Payable

401 Accounts Payable Withholding Taxes Payable Cash in Bank LCCA 410 110 20,00 0 2,000 18,000

3. Non-Personal Services

3.1 Security Services (Enter obligation in the RAAOMOP120,000)

Issuance of contract for security services P120,000

Security and Janitorial Services Accounts Payable 858 401 Accounts Payable 10,00 0

Receipt of monthly BillingP10,000

10,000

Payment of monthly billing

Withholding Taxes Payable Cash in Bank LCCA

401 10,00 0 410 1,000

Acct . Cod e

Debit

Credit 9,000

Particulars

Account Title 110

3.2 Plumbing Services (Enter obligation in the RAAOMOP120,000)

Signing of contract for Plumbing Services P120,000

General Services Accounts Payable 857 401 Accounts Payable Withholding Taxes Payable Cash in Bank LCCA 401

10,000

Receipt of monthly billing P10,000

10,00 0

10,000

Payment of Monthly Billing

410 110

1,000 9,000