GRANTING, IMPLEMENTATION AND

LIQUIDATION
OF FINANCIAL ASSISTANCE
BOHOL CULTURAL CENTER, JULY 4-6, 2018
TOPICS

 Basis for request

 Supporting Documents

 Principles under PD 1445

 IUUEE Expenditures

 Transaction Cycle and Financial Process

 Reminders
BASIS FOR THE REQUEST

 Your own needs

 Strength Weaknesses Opportunities
and Threats (SWOT) Analysis
 VMG of the Province of Bohol

 PGBh Developmental Framework

BASIC REQUIREMENTS
 BASIC REQUIREMENTS

1. Certificate of Availability of Fund

2. Approval of claim or expenditure by head
of office or his duly authorized
representative.
3. Documents to establish validity of claim
4. Legality of transactions and conformity of
the expenditure to existing laws and
regulations.
5. Proper accounting treatment
DOCUMENTS TO PREPARE

 Barangay
Resolution
 Program of Work
or Activity Design
 Memorandum of
Understanding
DOCUMENTS TO PREPARE

 Barangay Resolution  Should be

addressed to the
Governor
 If asking thru the
BM, address it to
the Governor thru
the BM
DOCUMENTS TO PREPARE

 Memorandum of  Should have a blank

Understanding space for the amount
 Should have as
contracting party the
Barangay Captain and
the Governor
DOCUMENTS TO PREPARE

 Memorandum of  For those request from

Understanding SP, it should identify the
the donor SP member as
one of the witness
 Should be signed by the
Barangay Captain and
one Barangay official as
witness prior to
submission to the Capitol
FUNDAMENTAL PRINCIPLES UNDER
SECTION 4 OF PD 1445
FUNDAMENTAL PRINCIPLES UNDER
SECTION 4 OF PD 1445
1. No money shall be paid out of any public
treasury or depository except in pursuance of
an appropriation law or other specific
statutory authority.
2. Government funds or property shall be spent
or used solely for public purposes.
3. Trust funds shall be available and may be
spent only for the specific purpose for which
the trust was created or the funds received.
FUNDAMENTAL PRINCIPLES UNDER
SECTION 4 OF PD 1445
4. Fiscal responsibility shall, to the greatest
extent, be shared by all those exercising
authority over the financial affairs,
transactions, and operations of the
government agency.
5. Disbursements or disposition of
government funds or property shall
invariably bear the approval of the proper
officials.
FUNDAMENTAL PRINCIPLES UNDER
SECTION 4 OF PD 1445
6. Claims against government funds shall be
supported with complete documentation.
7. All laws and regulations applicable to
financial transactions shall be faithfully
adhered to.
8. Generally accepted principles and practices
of accounting as well as of sound
management and fiscal administration shall
be observed, provided that they do not
contravene existing laws and regulations.
USE OF TRUST FUNDS
 USE OF TRUST FUNDS

• Trust fund shall not be paid out of any

public treasury or depository except in
fulfillment of the purpose of which trust
was created or funds were received, and
upon authorization of the legislative
body or head of the agency of the
government having control thereof, and
subject to pertinent budget law, rules
and regulations.
PREVENTION OF IRREGULAR, UNNECESSARY,
EXCESSIVE OR EXTRAVAGANT OR
UNCONSCIONABLE (IUEEU) EXPENDITURES
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Irregular Expenditures
• Without adhering to established rules,
regulations, procedural guidelines, policies,
principles or practices that have gained
recognition in law.
• Not conforming to prescribed usages and
rules of discipline.
• Deviates from the standards set
• Violates appropriate rules of procedure
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Unnecessary Expenditures
• Not pass the test of prudence or the required
diligence of a good father of a family
• Not responsive to the exigencies of the service
• Not supportive of the objectives and mission of
the agency
• Not dictated by the demands of good
government
• Necessity of which cannot be ascertained at a
specific time.
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Factors to be considered
• Time of Need
• Volume of purchases enough to fill the three (3)
months’requirements
• November/December purchases limited to three
(3) months’ supply only
• Three (3) months’ supply is determined by
computing the average monthly consumption of
the agency for the last six (6) months plus 10%
allowance for contingencies multiplied by three.
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Frequency/Nature of Use
• If the item/object is not used according to
normal usage/practice.
• Location
• If it is not needed or useful in the place
where it is intended to be used.
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Excessive Expenditures
• Unreasonable expenses incurred at an
immoderate quantity or exorbitant price.
• Exceeds what is usual or proper as well as
expenses which are unreasonably high and
beyond just measure or amount.
• In excess of reasonable limits.
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Variables to be considered
• Price – if it is more than the 10% allowable
price variance
• Volume Discounts – if the discounts allowed
in bulk purchases are not considered in the
price offered or in the award or in the
purchase/payment document
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Factors to be considered
• Supply and demand forces in the market
• Government Price Quotations
• Warranty of Products or Special Features –
when service/item is offered with warranty or
special features which are relevant to the
needs of the agency and are reflected in the
offer or award.
• Brand of Products
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Extravagant Expenditures
• Without restraint, judiciousness and
economy
• Exceeds the bounds of propriety
• Immoderate, prodigal, lavish, luxurious,
wasteful, grossly excessive and injudicious
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Factors to be considered
• Nature of agencies’operations
• Agency mission
• Profitability of their past operational
performance
• Availability of financial resources derived from
income or retained earnings
• Variable to be considered
• Quantity is relative to the level or the rank of
the user and the purpose for such expenditure.
PREVENTION OF IRREGULAR, UNNECESSARY, EXCESSIVE OR
EXTRAVAGANT OR UNCONSCIONABLE (IUEEU) EXPENDITURES

• Unconscionable Expenditures
• Without knowledge or sense of what is right,
reasonable and just
• Not guided or restrained by conscience
• Unreasonable and immoderate expenses
• Incurred in violation of ethics and morality by
one who does not have a feeling of guilt for
the violation.
TRANSACTION CYCLE AND THE PROCESS
TRANSACTION CYCLE

Preparation of supporting
documents

Processing and approval

at the PGBh

Implementation of the
Financial Assistance

Submission of
Liquidation Report
PROCESS FLOW

GOVERNOR’S
OFFICE

TREASURER’S BUDGET
OFFICE OFFICE

ACCOUNTING
OFFICE
REMINDER
 Previous Financial  Should be liquidated
Assistance  Submission of a copy of
the Fund Utilization Report
stamp received by COA to
the Provincial Accounting
Office
 Clearance from the Office
of the League of Barangay
is done before the granting
of Financial Assistance
REMINDER

 Financial assistance and Aid to Barangay are

subject to RA 9184 which is the Procurement
Law
 Competitive Bidding is the default Mode of
procurement
 Do not start the implementation until it is
properly procured
 Notice To Proceed
REMINDER

 Paidvouchers are submitted to the

Municipal Accountant for
bookkeeping
 Submitted to COA for post audit

 Solana Covenant with the

Ombudsman
 Free template from www.brainybetty.com 7/11/2018

FROM THE BIBLE

Whatever your hand finds to do, do it with all your

might, for in the realm of the dead, where you are
going, there is neither working nor planning nor
knowledge nor wisdom.
-Ecclesiastes 9:10
Whatever you do, work at it with all your heart, as
working for the Lord, not for human masters
-Colossians 3:23

33
THANK YOU