Requirements in Opening Depository Accounts for LGUs with Banks Other than Authorized Government-Owned Depository Banks

February 20, 2006 BLGF MEMORANDUM CIRCULAR NO. 003-06 TO : The Regional Directors of this Bureau, District Treasurers of Metropolitan Manila; Provincial, City and Municipal Treasurers and All Others Concerned SUBJECT : Requirements in Opening Depository Accounts for Local Government Units (LGUs) with Banks Other than Authorized Government-Owned Depository Banks In order to uniformly and expeditiously address all similar queries of LGUs in connection with their desire to open depository accounts with banks other than government-owned depository banks, and as provided under Department Order No. 27-05 (Amendment to Department Order. 32-03) dated, December 9, 2005, Department Order No. 32-03 (Authorized Government Depository Banks) dated November 10, 2003 and Department Order No. 11-99 dated February 24, 1999, all of the Department of Finance, in accordance with the provisions of Circular No. 110, s. 1996 of the Bangko Sentral ng Pilipinas (Guidelines to implement various legal provisions governing the acceptance by banks of deposits of the government, its political subdivisions and instrumentalities, as well as government-owned or controlled corporations) and Sections 12 and 19 of Commission on Audit Circular No. 92-382 (Circular on Accounting and Auditing Rules and Regulations) dated July 3, 1992, the following requirements shall be complied with and submitted to this Bureau for proper indorsement to the Department of Finance for its approval: 1. A Resolution of the local sanggunian concerned, authorizing the LGU to open and maintain depository account with a non-government owned depository bank with the approval of the Local Chief Executive; 2. A Certification from the LGU concerned on the absence of any government-owned depository bank located in or nearest its area of jurisdiction; 3. A Certification to the effect that the Philippine Government owns shares of stocks in the proposed depository bank or said bank is allowed by law to be a government depository bank; 4. An Accreditation issued by the Monetary Board in favor of the proposed depository bank to accept government deposits for the current year; and CADHcI 5. A Certification of the proposed depository bank that no elective or appointive local government official of the LGU concerned is a director, officer or stockholder of said bank, unless certified that it is the only bank existing therein. Failure to submit the foregoing requirements shall cause the immediate return of the request to open a depository account with a bank other than government-owned depository bank to the requesting LGU for proper compliance thereof. The District Treasurers of Metropolitan Manila and the Provincial Treasurers are hereby instructed to disseminate copies of this Circular to their respective Local Chief Executives, the Members of the local sanggunian and the Municipal Treasurers within their respective jurisdiction, who in turn are likewise directed to provide copies for their Municipal Mayors and the Members of the Sangguniang Bayan, for their proper information and guidance. Strict compliance hereof is enjoined. (SGD.) MA. PRESENTACION R. MONTESA Executive Director ATTACHMENT DOF Order No. 027-05 dated December 9, 2005 DOF Order No. 032-03 dated November 10, 2003 DOF Order No. 011-99 dated February 24, 1999 July 3, 1992 COA CIRCULAR NO. 382-92 TO : ALL PUBLIC OFFICERS CONCERNED: The General Manager, Metro Manila; Provincial Governors, City and Municipal Mayors; the Deputy General Manager for Finance, Metro Manila Authority; Local Treasurers, Accountants, and Budget Officers; COA Directors; Heads of Provincial, City, Municipal and Circuit Municipal Audit Units; and All Others Concerned. SUBJECT AND PURPOSE : This Circular on Accounting and Auditing Rules and Regulations designed to implement the provisions of Republic Act No. 7160, the Local Government Code of 1991, is issued pursuant to Section 2(2), Article IX-D, of the Constitution. I. GENERAL GUIDELINES SECTION 1. Local Funds. Provinces, cities and municipalities shall maintain a General Fund which shall be used to account for such monies and resources as may be received by and disbursed from the local treasury. The General Fund shall consist of monies and resources of the local government which are available for the payment of expenditures, obligations or purposes not specifically declared by law as accruing and chargeable to, or payable from, any other fund. (Sec. 308, RA 7160) SECTION 2. Special Funds. There shall also be maintained in every provincial, city or municipal treasury the following special funds: a. Special Education Fund which shall consist of the respective shares of provinces, cities, and municipalities in the proceeds of the additional tax on real property to be appropriated for purposes prescribed in Section 272 of the Local Government Code; and b. Trust Funds which shall consist of private and public monies which have officially come into the possession of the local government or of a local government official as trustee, agent or administrator, or which have been received as a guaranty for the fulfillment of some obligation. A trust fund shall only be used for the specific purpose for which it was created or for which it came into the possession of the local government unit. (Sec. 309, Ibid) SECTION 3. Separate books and depository accounts. Local accountants and treasurers shall maintain separate books and depository accounts, respectively, for each fund in their custody or administration. (Sec. 310, Ibid) dctai SECTION 4. Acknowledgment of collections. For every payment received, the collecting officer shall immediately issue an official receipt in acknowledgment thereof. The receipt may be in the form of cash tickets and the like, or officially numbered receipts subject to proper custody, accountability and audit. SECTION 5. Collection of local taxes, fees, and charges. All local taxes, fees and charges shall be collected by the provincial, city, or municipal treasurer, or their duly authorized deputies. The provincial, city or municipal treasurer may designate the barangay treasurers as his deputies to collect local taxes, fees, or charges in their respective jurisdictions. In case a bond is required for the purpose, the provincial, city or municipal government shall pay the premiums thereon in addition to the premiums for the bond/s that may be required for a barangay treasurer under the Local Government Code of 1991. (Sec. 170, Ibid) SECTION 6. Collection of real property tax. The collection of the real property taxes shall be the responsibility of the city or municipal treasurer concerned. (Sec. 247, Ibid) SECTION 7. Remittance of government monies to the local treasury. Officers of the local government unit authorized to receive and collect monies arising from taxes, revenues or receipts of any kind shall remit the full amount received and collected to the treasury of such local government unit which shall be credited to the particular account or accounts to which the monies in question properly belong. (Sec. 307, Ibid) SECTION 8. Deposit intact of collections. All collections shall be deposited intact with authorized depositories. The practice of retaining part of the collections as a cash reserve for cash disbursements shall be discontinued. SECTION 9. Disbursements by check. All disbursements shall be made by check, except as otherwise provided herein. SECTION 10. Disbursements by cash. Disbursements by cash shall be made from a cash advance drawn and maintained in accordance with COA rules and regulations. SECTION 11. Accountability and responsibility for local government funds. Every officer of the local government unit whose duties permit or require the possession or custody of local funds shall be properly bonded, and such officer shall be accountable and responsible for said funds and for the safekeeping thereof in conformity with the provisions of law. (Sec. 305 (f), Ibid) SECTION 12. Depository accounts in banks. Provincial, city and municipal treasurers shall maintain depository accounts in the name of their respective local government units with banks, preferably government-owned, located in or nearest to their respective areas of jurisdiction. (Sec. 311, Ibid) SECTION 13. Obligation accounting system. The obligation accounting system shall be implemented in provinces, cities and municipalities. SECTION 14. Special accounts in the General Fund. Special accounts in the General Fund shall be maintained through the use of complete subsidiary accounts. SECTION 15. Rendition of accounts by accountable officers. Local treasurers, accountants and other local accountable officers shall render their accounts in accordance with COA regulations. II. SPECIFIC GUIDELINES A. Reconciliation and Closing of Depository Accounts of Municipalities SECTION 16. Reconciliation of municipal deposits. Municipal treasurers shall reconcile the Cash, Other Government Treasury Account (8-70-102) of each fund in the municipal books with the corresponding Trust Liability Account (8-84-200) in the provincial or city (in the case of Metro Manila municipalities) treasurer's books. SECTION 17. Withdrawal of municipal deposits. An application to withdraw the reconciled balance of the municipal deposit shall be prepared by the municipal treasurer by fund in the prescribed form and submitted to the provincial/city treasurer concerned. The approved withdrawal voucher shall then be submitted to the provincial/city auditor concerned for pre-audit. SECTION 18. Check drawn for deposit to appropriate account. Based on the pre-audited disbursement voucher, the provincial/city treasurer shall prepare a check for each fund balance of the municipal deposits. The checks shall be drawn in the name of the municipality for deposit under the appropriate fund. B. Bank Depository Accounts SECTION 19. Opening of depository accounts. Provincial, city and municipal treasurers shall open and maintain in the name of their respective local government units separate depository accounts for each fund with a government-owned bank located in or nearest the locality. In the case there is no government-owned bank located in or nearest the locality, depository accounts may be opened with a bank duly designated as government depository by the Central Bank of the Philippines, upon prior authority of the sanggunian and the approval of the chief executive. Pending the reconciliation and withdrawal of their deposits with the provincial/city treasurers concerned, municipalities may immediately open depository accounts for each fund. SECTION 20. Combined savings and current accounts. Provinces, cities, and municipalities may open a combined savings and current account (COMBO) for the General and Special Education Funds in the duly authorized depository bank. The opening of the bank accounts shall be documented with a depository contract or other appropriate documentation required by the bank, signed by the local treasurer concerned in behalf of the local government unit. Deposits to the COMBO account shall be made only through the savings account and withdrawals shall be made only by the issuance of checks to be drawn on approved vouchers, against the current account. At the termination of the COMBO contract, the balance of the savings account shall be transferred to the current account which shall be henceforth be subject to the regulations on current accounts. SECTION 21. Time deposit accounts. Provinces, cities and municipalities may deposit with duly authorized depository banks idle funds in the General Fund under time deposit accounts, upon prior authority of the sanggunian and the approval of the chief executive. SECTION 22. Definition of idle funds. Idle funds in excess of normal operating requirements shall generally mean the level of funds which an entity can freely invest in government securities and/or fixed term deposits after considering provisions for coverage of regular and recurring operating expenses like salaries and wages, repairs and maintenance, inventories and supplies, debt servicing, etc., within the context of the entity's cash operating cycle. Unremitted national collections and funds set aside for payment of obligations to government corporations/cooperatives shall not form part of the idle funds of local government units. (DOF Department Circular No. 6-90, Dec. 6,1990) SECTION 23. Depository accounts earnings. Earnings of each depository account shall accrue exclusively thereto. C. Collections SECTION 24. Custodianship of accountable forms. The treasurer shall be the custodian of all accountable forms requisitioned by the local government unit. He shall maintain a complete record of the receipt, issue and transfer of accountable forms. SECTION 25. Requisition of accountable forms. Collectors/tellers shall file requisitions of accountable forms for their use with treasurer through a Requisition and Issue Voucher. They shall be accountable for all accountable forms issued to them. There shall be no transfer of accountable forms between collectors/tellers. SECTION 26. Daily turn over of collections. At the close of the business day, collectors/tellers shall turn over all of their collections intact to the treasurer/cashier. They shall accomplish the Daily Statement of Collections and Accountable Forms (DSCAF), Prov. Form No. 95 (A), in four copies. The original and two copies, together with the duplicates of official receipts issued and the cash collected, shall be submitted to the treasurer/cashier. The fourth copy of the DSCAF shall be retained by the collector/teller concerned. Barangay Treasurers deputized to collect taxes imposed by provinces, cities and municipalities shall follow the same procedures in submitting their collections to the treasurer/cashier concerned. In the case of collectors assigned to the field, where travel time from their places of assignment to the treasurer's office is more than one day, turn over of collections shall be made at least once a week, or as soon as the collections reach P5,000.00. SECTION 27. Verification of collections and accountable forms. The treasurer/cashier shall verify the DSCAF: check the statement of accountable form as to initial balances on hand, receipts, sales and issues, and new balances on hand; make a physical count of the accountable forms remaining in the custody of the collector/teller and check the same to the new balances on hand column. He shall indicate his verification by affixing his signature at the back of the triplicate copy of the last official receipt issued. He shall count the money turned over to him and signed the certification and receipt portion of all copies of the DSCAF. SECTION 28. Deposit of collections with banks. The treasurer/cashier shall deposit intact all his collections, as well as all collections turned over to him by the collectors/tellers, with authorized depository bank daily or not later than the next banking day. He shall summarize the collections and deposits by accomplishing the Cashier/Treasurer's Report of Daily Collections and Deposits (CTRDCD), Prov. Form No. 213(A), (Annex B), in three copies. The original and duplicate, together with the original and duplicate copies of the DSCAF's and the deposit slips and the duplicates of official receipts, shall be submitted daily to the accountant. The third copies of the CTRDCD and the DSCAF shall be retained by the treasurer/cashier. In the case of municipalities where travel time to the depository bank is more than one day, deposit of collection shall be made at least one week, or as soon as the collections reach P10,000.00. SECTION 29. Recording of collections in the cashbook. The treasurer/cashier shall record in his cashbook all collections received by him. He shall provide in his cashbook columns for the accounts Cash-in-Treasury and Cash-Other Banks. The Cash-in-Treasury account shall be debited with the collections received, and credited with the collections deposited with the authorized depository bank. The Cash-Other Banks account shall be debited with the deposits of collections with the bank, and credited with the withdrawals from the depository account. SECTION 30. Liquidating officer for collections. The Treasurer may designate liquidating officers from among the collectors/tellers whenever necessary. SECTION 31. Turn over all collections to liquidating officer. Collectors/tellers shall turn over their collections to their designated liquidating officer, following the procedures prescribed in Sec. 26. The DSCAF shall however be prepared in five copies, four copies to be submitted to the liquidating officer, the fifth copy to be retained by the collector/teller. SECTION 32. Verification of collections and accountable forms by liquidating officer. The liquidating officer shall perform the procedures for the receipt and verification of collections turned over to him, as in Sec. 27. He shall also prepare the Report of Collection by Liquidating Officer (RCLO), Prov. Form No. 225 (A), (Annex C) in four copies to summarize the collections turned over to him by the collectors/tellers as well as his own collections. SECTION 33. Turn over of collections by liquidating officer. The liquidating officer shall turn over intact the cash collections to the treasurer/cashier together with the original and two copies of the RCLO, the original and two copies of the DSCAF, and the duplicates of the official receipts issued. The treasurer/cashier shall acknowledge of the cash and all accompanying documents by signing all copies of the RCLO on the certifications and receipt portion of the form. The fourth copies of the RCLO and the DSCAFs shall be retained by the liquidating officer. SECTION 34. Deposit of collections and recording in the cashbook. The treasurer/cashier shall deposit all collections and prepare the CTRDCD summarizing the collections and deposits for recording in his cashbook and submission to the accountant, accompanied by all supporting documents, as in Sec. 28 and Sec. 29, including two copies of the RCLO. SECTION 35. Account classification of collections. The accountant shall determine the account classification of the collections covered by the CTRDCD and the supporting papers submitted by the Treasurer/Cashier, and shall accomplish the accounting recapitulation section of the CTRDCD accordingly. The account Undistributed Income (8-86-200) shall be used only in cases where the income account classification cannot be immediately determined. The accountant shall also maintain the Abstract of Real Property Tax Collections, P.F. No. 10(A), to facilitate the distribution and remittance of the shares of the different government units concerned in the real property tax collections. SECTION 36. Remittance of collections to other government units. Collections made by provincial, city, or municipal treasurers for other government units, shall be promptly remitted to the government units concerned. At least once a week, the accountant concerned shall prepare the disbursement vouchers covering such remittances and the supporting statements containing the complete descriptions of the collections being remitted. The disbursement vouchers and their supporting statements, duly certified by the accountant, shall be transmitted to the treasurer for certification as to availability of funds, and forwarded to the local chief executive or the duly authorized official for approval. The disbursement vouchers and statements shall then be returned to the treasurer for the preparation of the checks to cover the remittances. The checks, duly approved or signed, each accompanied by a copy of the corresponding statements, shall be transmitted to the government units concerned. The remittances shall be acknowledged by the recipient government units by the issuance of official receipts. SECTION 37. Report of accountable forms. Treasurers, collectors/tellers and other accountable officers shall render their report of accountability for accountable forms on Gen. Form No. 16 (A); Annex D, at least once a month. Such report shall also be prepared in case of transfer of office or accountability by the accountable officer. The treasurer shall consolidate these reports on Prov. Form No. 224 (A), (Annex E), and submit the consolidated report accompanied by the individual reports to the unit auditor concerned not later than the fifth day of the ensuing month. D. Disbursements SECTION 38. Certification and approval of disbursement vouchers. No money shall be disbursed unless the local budget officer certifies to the existence of appropriation that has been legally made for the purpose, the local accountant has obligated said appropriation, and the local treasurer certifies to the availability of funds for the purpose. In the case of disbursement from the Trust Fund, it shall be sufficient that the local accountant certifies to the existence of the trust liability and the local treasurer, to the availability of funds for the purpose. Vouchers and payrolls shall be certified to and approved by the head of the department or office who has administrative control of the fund concerned as to validity, propriety, and legality of the claim involved. In case of temporary absence or incapacity of the department head or chief of office, the officer next-in-rank shall automatically perform his function and shall be fully responsible therefor. SECTION 39. Approval of vouchers. Approval of the disbursement vouchers by the local chief executive himself shall be required whenever local funds are disbursed, except for regularly recurring administrative expenses such as payrolls for regular or permanent employees, expenses for light, water telephone and telegraph services, remittances to government creditor agencies such as GSIS, SSS, LBP, DBP, National Printing Office, Procurement Service of the DBM and others where the authority to approve may be delegated. However, disbursement vouchers for expenditures appropriated for the operation of the sanggunian shall be approved by the provincial vice governor, the city vice mayor or the municipal vice mayor, as the case may be. SECTION 40. Approval of Special Education Fund disbursements. In the case of the Special Education Fund, disbursements shall be approved by the chief executive concerned as co-chairman of the local school board. The division/city superintendent of schools or the district supervisor concerned, as the case may be, shall certify and approve vouchers or payrolls as to validity, propriety, and legality of the claim involved. SECTION 41. Approval of Trust Fund disbursement. In the case of the Trust Funds, disbursements shall be approved by the chief executive concerned, and certified and approved as to validity, propriety, and legality of the claim involved by the department/office head concerned. SECTION 42. Checks drawn on disbursement vouchers. Checks in settlement of obligations shall be drawn only on duly approved disbursement vouchers. SECTION 43. Officials authorized to draw and sign checks. Checks shall be drawn by the local treasurer and countersigned by the local administrator. In case temporary absence or incapacity of the aforesaid officials these duties shall devolve upon their immediate assistants. In the case of municipalities where no administrator has been appointed, checks shall be countersigned by the municipal mayor. In the case, however, of expenditures appropriated for the operation by the provincial vice governor, the city vice mayor, or the municipal vice mayor, as the case may be. SECTION 44. Report on checks issued. The treasurer/cashier shall prepare weekly the Report of Checks Issued, Prov. Form No. 226 (A), (Annex F), in three copies and submit the original and duplicate of the same to the accountant with the vouchers/payrolls and supporting documents. SECTION 45. Cash payments on disbursement vouchers. Cash payments shall be made only on duly approved payrolls/disbursement vouchers/liquidation vouchers out of regular cash advances or special cash advances. SECTION 46. Regular cash advances. Regular cash advances are those granted to cashier, disbursing officers, paymasters, and /or property/supply officers separately for any of the following purposes: a. Salaries and wages; b. Commutable allowances; c. Honoraria and other similar payments to officials and employees; and d. Petty operating expenses. SECTION 47. Special cash advances. Special cash advances are those granted on the explicit authority of the local chief executive only to duly designated disbursing officers or employees for other legally authorized purposes such as: a. Confidential expenses; and/or b. Expenditures for activities of the agency undertaken in the field when it is impractical to pay by check. SECTION 48. Rules on grant, use, and liquidation of cash advances. In the granting, utilization, and liquidation of cash advances the following shall be observed: (a) Only permanently appointed officials and employees shall be granted cash advances. (b) Only duly appointed or designated disbursing officers may perform disbursing functions. Officers and employees who are given cash advances for foreign travel need not be designated as disbursing officers. (c) Only one disbursing officer shall be assigned/designated for a specific legal purpose. Additional disbursing officers may be assigned/designated for the same purpose only when fully justified by the local chief executive. (d) Transfer of cash advance from one accountable officer to another shall not be allowed. (e) The cash advance shall be used solely for the specific legal purpose for which it was granted. Under no circumstance shall it be used for encashment of checks or for liquidation of a previous cash advance. (f) The accountant shall obligate all cash advances granted. Cash advances for a particular year shall not be used to pay expenses of other years. (g) The cash advance for salary payments shall be equal to the net amount of the payroll for a pay period. (h) The cash advance for petty operating expenses shall be sufficient for the recurring expenses of the agency for one month. The accountable officer may request replenishment of the cash advance when the disbursements reach at least 75%, or as needed, by submitting a replenishment voucher with all supporting documents duly summarized in a report of disbursement. (i) The cash advance for petty operating expenses shall not be used for payment of regular expenses, such as rentals, subscriptions, light and water and the like. (j) Payments out of the cash advance shall be allowed only for amounts not exceeding P10,000.00 for each transaction, except when a higher amount is allowed by law and/or specific authority by the Commission on Audit. Splitting of transactions to avoid exceeding the ceiling shall not be allowed. (k) The cash advances shall be liquidated as follows: Salaries, wages, etc. - within 5 days after each 15 day/end of the month pay period. Petty operating expenses - within 20 days after the end of the year; subject to replenishment during the year. Foreign Travel - within 60 days after return to the Philippines (l) The accountable officer shall prepare the Report of Disbursements. Gen. Form No.____, (Annex G) in three (3) copies and submit the original and duplicate of the same with the vouchers/payrolls and supporting documents to the accountant. For payments based on receipts and invoices only, he shall also prepare a disbursement (liquidation) voucher which shall be submitted with the report is properly acknowledged by the accountant. (m) Within ten days after receipt of the report and supporting documents from the accountable officers, the accountant shall verify the report including the completeness of the supporting documents, record it in the Journal of Disbursement by Treasurer/Disbursing Officer and submit the report with all the vouchers/payrolls and supporting documents to the unit auditor. (n) When a cash advance is no longer needed or has not been used for a period of two (2) months, it must be returned or deposited immediately with the collecting officer. (o) All cash advances shall be fully liquidated at the end of each year. The accountable officer shall refund any unexpected balance to the cashier/collecting officer who shall issue the necessary official receipt. (p) At the start of the ensuing year, a new cash advance may be granted, provided that a list of expenses against the previous cash advance is submitted. However, when no liquidation of the previous cash advance is received on or before January 20, the accountant shall cause the withholding of the accountable officer's salary. (q) The accountable officer shall maintain an official cashbook to record the transactions on each cash advance fund. E. Transfer of the accounting functions to the local accountant. SECTION 49. Updating of accounts before transfer of accounting functions to the accountant. To effect the transfer of the accounting functions from the treasurer to the accountant, all the books and records (cashbooks, journals, ledgers, etc.) shall be updated, incorporating all the necessary reconciliations and adjustments, to the date of transfer, which shall be as of the end of the month. The trial balances shall then be drawn in the usual manner, including all required supporting statements. Pending the actual transfer of the accounting books and records, the local accountant may open a new set of appropriate journals and ledgers to record the transactions made after the cut-off date. SECTION 50. Rendition of accounts. The treasurer shall render his accounts as of the date of transfer, to the unit auditor concerned, in accordance with existing regulations. The unit auditor shall verify the completeness of the accounts submitted. SECTION 51. Transfer of books of accounts and all accounting records. The treasurer shall transfer to the accountant all journals and ledgers; copies of trial balances, statements of operations and balance sheets, with supporting schedules and statements; copies of transactions documents, inventory reports of supplies and property, and such other financial statements and reports which form the accounting records. Under existing regulations, cashbooks of accountable officers who have ceased to be such, shall also be submitted to the accountant and shall form part of the accounting records. SECTION 52. Preparation of invoice-receipts. The treasurer shall prepare an invoice-receipt in triplicate to cover the transfer of the records to the accountant. The invoice-receipt, duly signed by the treasurer and the accountant, shall be distributed as follows: dctai Original - to the unit auditor concerned; Duplicate - to the local accountant; and Triplicate - to the local treasurer. F. Merging of Funds SECTION 53. Maintenance of local and special funds. The Local Government Code of 1991 (RA 7160) requires the maintenance by the provinces, cities and municipalities of the General Fund as a local fund, and the Special Education Fund and Trust Funds as special funds . The Infrastructure Fund which was abolished, shall therefore be merged with the General Fund. Development projects implemented within the Infrastructure Fund shall be incorporated as special accounts of the General Fund . The NALGU Fund and the Municipal Development Fund shall be merged with the Trust Funds. The Special Education Fund shall continue to be maintained. Accounting procedures on the merging of the funds are shown in Annex J. G. The Obligation Accounting System for Expenditures and Transfer SECTION 54. Accounting for expenditures and transfers. Expenditures and transfers of the General Fund and the Special Education Fund shall be taken in the accounts as the obligations are incurred. Obligations refer to the amounts committed to be paid by the local government unit for any lawful act made by an accountable officer for and in behalf of the local government unit concerned. SECTION 55. Advice of allotment. The advice of allotment of appropriations issued by the local chief/office of the local government unit to incur obligations within the limits of the authorized allotment. SECTION 56. Request for obligation of allotment (ROA). For all anticipated expenditures and transfers of the funds concerned, the requesting department/office shall prepare the Request for Obligation of Allotment (ROA), Prov, Form No. 227 (A), (Annex H), signed by the department or office head as requesting official. SECTION 57. Certification of budget officer. The budget officer shall certify to the existence of appropriation that has been legally made for the purpose by signing Certification No. 1 of the ROA. SECTION 58. Certification of the treasurer. The treasurer shall certify that funds are available by signing Certification No. 2 of the ROA. SECTION 59. Certification of the accountant. The accountant shall review the ROA, assign an obligation number thereto, and record the amount of the obligation in the Journal and Analysis of Obligations (JAO), Prov. Form No. 228(A), (Annex I). The accountant shall then certify as to the obligation of the allotment by signing the ROA. SECTION 60. ROA as integral part of the disbursement voucher. The ROA shall form an integral part of the covering disbursement voucher/payroll and the certifications of the local budget officer, treasurer and accountant thereon shall serve as their certifications on the disbursement as required by law. SECTION 61. Liquidation of obligations. The disbursement voucher for payment or liquidation of the obligation duly accomplished as to Certificates No. 1, 2 and 3, and supported with the duly approved ROA and other necessary papers, shall be submitted by the department/office head to the accountant who shall accomplish certificates No. 4. The disbursement voucher with the ROA other supporting papers shall then be forwarded to the chief executive or the duly authorized official for approval, after which the same shall be transmitted to the treasurer for payment by check or by cash. SECTION 62. Accounting procedures for the obligation accounting system. Detailed accounting procedures to be used in the obligation accounting system are shown in Annex K. H. Maintenance of Special Accounts in the General Fund SECTION 63. Special accounts in the General Fund. Local government units shall maintain special accounts in the General Fund for public utilities and other economic enterprises; loans, interests, bond issues, and other contributions for specific purposes; and development projects funded from the share of the local government unit concerned in the internal revenue allotment and such other special accounts which may be created by law or ordinance. SECTION 64. Profits from Operations. Profits or income derived from the operations of public utilities and other economic enterprises, after deduction of the cost of improvement, repair and other related expenses of the public utility or economic enterprises concerned, shall first be applied for the return of the advances or loans made therefor. Any excess shall form part of the general fund of the local government unit concerned. SECTION 65. Objectives of maintenance of special accounts. Accounting procedures for the operation of the special accounts are hereby adopted in order to (a) Determine whether the incomes generated by the public utilities or economic enterprises are sufficient to meet their respective operating costs. (b) Provide adequate information as to the assets, liabilities and cumulative results of operation of each special account. SECTION 66. Special accounts subsidiary ledgers. No separate book of accounts shall be maintained for the special accounts. Transactions pertaining thereto shall be recorded in the books maintained for the General Fund with subsidiary postings to the special accounts subsidiary ledgers. SECTION 67. Accounting procedures for special accounts. Detailed accounting procedures in the maintenance of special accounts in the General Fund are shown in Annex L. I. New/Revised Account Codes and Books of Accounts SECTION 68. New/revised account description/codes and books of accounts. The list of new/revised account description/codes and journals which are hereby prescribed for use by the local government units in the implementations of the Local Government of 1991 are attached as Annexes M, N, O, and P. III. REPEALING CLAUSE SECTION 69. Repealing clause. All COA Circulars, Memoranda and other issuances inconsistent herewith are hereby revoked or modified accordingly. IV. EFFECTIVITY SECTION 70. Effectivity. This Circular shall take effect immediately. EUFEMIO C. DOMINGO Chairman ROGELIO B. ESPIRITU SOFRONIO B. URSAL Commissioner Commissioner ANNEX A Daily Statement of Collections and Accountable Forms ANNEX A-1 INSTRUCTIONS DAILY STATEMENT OF COLLECTIONS AND ACCOUNTABLE FORMS This Daily Statement of Collections and Accountable Forms shall be prepared in four copies by each municipal treasurer's collecting clerk, market, slaughterhouse, and ferry collector at the close of business of each day. The first certificate at the bottom of the form shall be filled out and signed by the collector upon turning over his collections to the municipal treasurer who shall likewise fill out and sign the last certificate and receipt thereon after having verified the correctness of the statement, and actually received from the collector the amount of the collections. The original copy of this statement shall be forwarded to the Auditor; one copy shall be kept by the municipal treasurer for his file, one copy to be sent to the Provincial Treasurer, and one copy to be retained by the collection clerk or collector. ANNEX B Report of Daily Collections and Deposits INSTRUCTIONS CASHIER/TREASURER'S REPORT OF DAILY COLLECTIONS AND DEPOSITS 1. The Cashier/Treasurer shall indicate in the spaces provided in the heading, the name of the local government unit, the date of the report, the fund code and the report number. 2. Summary of Collections This section shall be used to summarize the daily collections of collecting officers including those collected directly by the Cashier/Treasurer. All collections reported to and received by the Cashier/Treasurer shall be included in the Summary. The date and number of the DSCAF and RCLO shall be indicated in their respective columns. 3. Summary of Deposits This section shall be used to summarize the daily deposits of the Cashier/Treasurer. It shall indicate the name of the bank or treasury where the deposit was made, the deposit slip validation or official receipt number and amount. 4. Certification This section shall contain the certification of the Cashier/Treasurer as to the correctness of the report. 5. Acknowledgment This section shall be used by the accounting unit to acknowledge receipt of the report and its supporting documents. 6. Accounting Recapitulation This section shall be used by the accounting unit to recapitulate the daily collections for recording in/posting to the Treasurer's Journal of Collections and Deposit/Subsidiary Ledgers. 7. This report shall be prepared in triplicate an distributed as follows: Original - Provincial or city Auditor (with supporting documents) Duplicate - Local Treasurer Triplicate - Accounting Unit ANNEX C Report of Collections by Liquidating Officer ANNEX D Monthly Report of Accountability for Accountable Forms ANNEX D-1 INSTRUCTIONS MONTHLY REPORT OF ACCOUNTABILITY FOR ACCOUNTABLE FORM The property Officer duly designated by the Head of Agency to keep stock of accountable forms of all accountable officers to whom these forms are issued shall prepare this report in three (3) copies at the end of each month and upon transfer of office to be submitted to the Resident Auditor for verification. The accountable forms shall be issued only to bonded accountable exceed three (3) months. They shall be issued from the stock in numerical order beginning with the lowest number on hand. Heading The month for which the report is prepared and the name of the agency shall be indicated on the heading. Particulars The beginning and ending dates of the period, the name of persons/offices from/to which the forms were received/transferred/issue shall be written in the boxes provided. Quantity and Serial Number The quantity and the corresponding serial numbers of the forms on the hand at the start of the period; those receive, and those issued or transferred during the period covered; and the balance at the end of the period shall in these columns. Certification The Accountable Officer shall sign above his printed name in the certification box. ANNEX E Treasurer's Monthly Report of Accountability for Accountable Forms ANNEX E-1 INSTRUCTIONS MONTHLY REPORT OF ACCOUNTABILITY FOR ACCOUNTABLE FORMS 1. This report shall be prepared by local treasurers at the end of each month or upon their transfer of office or accountability for all accountable forms handled by them. 2. Accountable forms requisitioned and received by the municipal treasurers from the provincial treasurer shall be reported by the provincial treasurer as issued whether or not the forms have already been used by the municipal treasurers. For this purpose, the name of the municipal treasurer shall be indicated under "Remarks" column. However, accountable forms distributed to collecting officers and clerks for their issuance and for which a separate report of accountability is not prepared, shall be included in the report of accountability of the treasurer. 3. This report shall be prepared in triplicate and distributed as follows: Original - Provincial or City Auditor Duplicate - Provincial or City Treasurer Triplicate - File ANNEX F Report of Checks Issued ANNEX F-1 INSTRUCTIONS REPORT OF CHECKS ISSUED 1. Fill up all the blank spaces and columns as follows: a. Heading The disbursing officer shall fill in the blank spaces provided in the heading. b. Date Issued (1) The date the check was issued shall be entered in this column. c. Check Number (2) The serial number of the check shall be entered in this column. d. Date paid by bank (3) The date the check was paid or debited by the depository bank as shown in the monthly bank statement shall be entered in this column. e. Payee (4) The name of the person, office or firm to whom the check is payable shall be entered in this column. f. Voucher Number (5) The number of the voucher covering the check shall be entered in this column. g. Obligation Number (6) The number of the Request for obligation of Allotment (ROA) pertaining to the liquidated obligation shall be entered in this column. h. Account 8-70-300 (Credit) (7) The amount paid under each check chargeable against the agency's bank account for funding checks shall be entered in this column. i. Account Code, Sundry (Credit) (8) The code of an account credited other than accounts 8-70-300 be entered in this column. j. Posted (9) A check mark shall be written in this column to indicate completion of posting to the subsidiary ledger of the account appearing in the Sundry (Credit) column or the recording of the amount in the Journal of Checks Issued. k. Amount, Sundry (Credit) (10) The amount credited to the account indicated in the account code column shall be entered in this column. Recapitulation of this column shall be made to the extent necessary for recording in the Journal of checks Issued. l. Object of Expenditures (11) The object expenditure of the accounts to be debited in columns 12 to 17 shall be entered in this column. m. Account 0-83-000 (12) The amount of liquidation for current year's obligation shall be entered in this column. n. Account 8-70-500 (13) The amount of cash advances granted to disbursing officers whether regular or special shall be entered in this column. o. Account 8-81-400 (14) The amount paid to settle prior years' obligation shall be entered in this column. p. Account 8-84-100 (15) The amount of remittance to national government agencies concerned of collections received or amounts withheld for their account liquidation of amounts received based on reports verified by auditor, and refund of unused transferred funds by implementing agencies shall be entered in this column. q. Account 8-84-300 (16) The amount of remittance of collections or received or amounts withheld for the account of government owned and/or controlled corporations concerned or amount of refund of unused funds transferred from government corporations shall be entered in this column. r. Account 8-84-900 (17) The amount paid/refunded for miscellaneous trust liabilities shall be entered in this column. s. Blank Column (18) Blank column may be used for other accounts debited. t. Account code, Sundry (Debit) (19) The code of an account for which no special column has been provided shall be entered in this column. u. Posted (20) A check mark shall be written in this column to indicate completion of posting to the subsidiary ledger of the account appearing in the Sundry (Debit) column or the recording of each recapitulated amount in the Journal of Checks Issued. v. Amount, Sundry (Debit) (21) The amount debited to the account indicated in the account code column shall be entered in this column. Recapitulation of this column shall be made to the extent necessary for recording in the Journal of Checks Issued. 2. This report shall be prepared by fund. 3. The Disbursing Officer shall number his reports as follows: RCI - 1-92 for the first report in 1992 RCI - 2-92 for the second report in 1992 If there are more than one Disbursing Officer, the Officer's Code shall be prefixed to Report Number. 4. The sheet number of each report shall always start from number 1. 5. Every sheet shall be footed and the total carried forward to the next sheet. Succeeding sheets shall start with the totals brought forward. 6. This report shall be footed, balanced and ruled at the end of the period covered. The ruling shall be made on the line immediately after the last entry. 7. The report shall be certified by the disbursing officer on the last sheet of each report. I certify that this Report of Checks Issued in ________ sheet/s is a full, true and correct statement of all checks issued by me in payment for obligations for the period stated above and as shown in the attached vouchers. __________________________ Name & Signature __________________________ Designation ANNEX-G Report of Disbursement by Treasurer/Disbursing Officer ANNEX G-1 INSTRUCTIONS REPORT OF DISBURSEMENT BY TREASURER/DISBURSING OFFICER 1. Fill up all the blank spaces and columns as follows: a. Heading The Treasurer/Disbursing Officer shall indicate the nature of the Cash Advance (for salaries, miscellaneous/petty cash, etc.), the period covered by the report, the agency head, sheet and report number, and fund name/code. b. Date The date payment is made shall be entered in this column. c. Payee The name of the person, office or firm to whom payment is made shall be entered in this column. d. Reference The number of voucher/payroll or other supporting documents shall be entered in this column. e. Expense Code The expenditure object or expense code corresponding to the payment shall be entered in this column. f. Amount The amount of disbursement under each voucher/payroll shall be entered in this column. g. Totals The amount column shall be footed and the total written at the bottom thereof. 2. This report shall be prepared for each type of Cash Advance for each fund. 3. The Disbursing Officer shall number his report as follows: RD-1-92 for the first report in 1992 RD-2-92 for the second report in 1992 RD-1-93 for the first report in 1993 If there are more than one Disbursing Officer in the agency, the officer's code shall be prefixed to the report number. 4. Every sheet shall be footed and the totals carried forward to the next sheet. Succeeding sheets shall start with the totals brought forward. 5. The following certification shall be made by the Treasurer/Disbursing Officer at the last page of the report after the totals. "I, certify that this Report of Disbursement in __________ pages is a full, true and correct statement of the disbursements made by me and that this in liquidation of the cash advance granted last ______________________, 199__ in the amount of P______________ per check no. __________________." _____________________ Accountable Officer 6. The Chief Accountant, after verifying the report as to its correctness and completeness shall prepare the accounting entries corresponding to the reported disbursements at the bottom of the last page of the report and affix his signature under the accounting entries. ANNEX H Request for Obligation of Allotment ANNEX H-1 INSTRUCTIONS REQUEST FOR OBLIGATION OF ALLOTMENTS (Local) 1. This form shall be accomplished in six copies for each obligation incurred. 2. it shall be supported by necessary documents such as payrolls, requisitions, issue vouchers, etc. 3. The Head of the Department making the request shall sign the Request portion; the Budget Officer shall sign the certification as to the existence of appropriation; the Accountant, as to availability of allotment; and the Treasurer, as to availability of funds. 4. The Accountant shall assign a number to each ROA in the following manner: 5. The ROA shall be distributed as follows: Original - Accounting Unit (to serve as subsidiary ledger) Duplicate - (with supporting documents) - Accounting Unit (to serve as basis for recording the obligation in the JAO) 1 copy - to be attached to the Disbursement Voucher as an integral part thereof 1 copy - Budget Officer 1 copy - Treasurer 1 copy - Requesting Office 6. Posting to the subsidiary ledger of the obligation (0-82-000), credit, and the liquidation (0-83-000), debit shall be made by the Accounting Unit. The difference between the debit and the credit shall be indicated in the balance column. Any excess certification shall be adjusted by posting the amount in the credit column in parenthesis to bring the balance to zero. This shall be communicated to the JAO keeper who shall record the adjustment directly in the JAO without the need for a Journal Voucher. 7. ROAs which have been fully liquidated or with zero balances shall be filed separately from unliquidated ROAs. ANNEX Journal and Analysis Obligations ANNEX I-4 INSTRUCTIONS JOURNAL AND ANALYSIS OF OBLIGATIONS (Local) 1. The blank spaces and columns shall be filled up accordingly as follows: a. Heading The name of the agency, the fund, function/program/project allotment class and the month for which the JAO is prepared shall be indicated in the heading. b. Memorandum Section The amount of approved budget corresponding to the allotment class to which the particular JAO pertains shall be entered in the first column. The amount of allotment released from such appropriations as per Advice of Allotment (AA) shall be entered in the same column as a negative entry (in parenthesis) and in the second column along the same line, as a positive entry. All entitled in the memorandum column shall be in red ink. The amount of allotment shall be excluded also in red ink to the Journal Section under the amount of obligation and distributed to the various columns in the Analysis of obligation Section in accordance with the allocation indicated in the AA. c. Date The date of the Journal Voucher taking up the approved budget, or the AA, the date allotment was released as shown in the AA of the date the obligation was incurred, as the case may be, shall be entered in this column. d. Obligation/JV/AA Number The number of each obligation incurred or the AA and JV number for new releases of allotment shall be entered in this column. e. Amount of Obligation The amount of obligation under each Request for obligation of Allotment shall be entered in this column. f. Analysis of Obligations The amount columns under this section shall be headed by the classification codes of the expenditures for which releases were made and against which the expenditures shall be charged. The amount of obligation for each expenditures object shall be entered in their corresponding column. 2. This special journal shall be prepared by fund, by function/program/project and by allotment class. 3. The JAO shall be footed from time to time to determine the availability of funds at any time. 4. Each sheet shall be footed and the totals carried forward to the next sheet. Succeeding sheets shall start with the totals brought forward. 5. At the end of each month, the JAO shall footed, balanced and ruled. A single horizontal line shall be drawn immediately after the last entry. The total of the Amount of Obligation column for the month shall be written after the horizontal line and captioned as "Total this Month". This shall be posted directly to the General Ledger as a debit to Appropriations Allotted (0-90-000/100/200/300/400/500/600) and a credit to Obligations Incurred (0-82-000/100/200/300/400/500/600). 6. To indicate completion of posting, two check marks shall be written on the space below the amount posted. 7. The cumulative total of obligations captioned "Total to Date" in the preceding month's JAO shall be brought forward, entered below the check marks and captioned "Total to Date Last Month". This shall be added to the "Total this Month" to get the "Total to Date". The difference between the total allotments available and the "Total this Month represents the unobligated balance of allotments and shall be written in the second column of the Memorandum Section of the JAO. 8. The sum of released allotments entered in parenthesis in the first Memorandum column shall be written after a horizontal line in the same column, in parenthesis and deducted from the amount of appropriations. The difference which represents the unallocated balance shall be written immediately after the total releases. Double lines from the first to the last columns shall be drawn after these amounts. 9. In case there are many JAO's prepared during the month, a Summary Sheet (S) consolidating all the obligations may be prepared from where posting shall be made. In this case, check marks shall be made of the SS to indicate completion of posting to the General Ledger. Those made in the JAO's represents the inclusion of the amount in the SS. 10. The journal shall be certified correct by the Chief Accountant/Head of Accounting Unit on every sheet as follows: CERTIFIED CORRECT: __________________ Signature __________________ Designation ANNEX J ACCOUNTING PROCEDURES FOR MERGING OF FUNDS The following procedures shall be followed in the merging of funds. A. General Fund and Infrastructure Fund 1. Prepare the trial balance and supporting statements as of cut-off date for the Infrastructure Fund. 2. Prepare journal entries to eliminate the accounts in the books of the Infrastructure Fund as of the date of the trial balance. 3. Prepare journal entries to take up the accounts of the Infrastructure Fund in the General Fund books. 4. Revise the accounts in the General Fund to conform with the new/revised codes and descriptions prescribed in this circular. 5. Take up the necessary subsidiary ledger accounts in the General Fund books for revenues, appropriations, allotments and expenditures by just restating what had been accounted for in the Infrastructure Fund books. 6. Transactions after the merging shall be taken-up in the books pursuant to the accounting procedures for special accounts in the General Fund as illustrated in Annex L of this circular. 7. Henceforth, the accountant shall work to identify the Special Accounts for all transactions from January 1, 1992 to the cut-off date and record them accordingly in the books. 8. Obligation accounts such as Obligations Incurred (82) and Obligations Liquidated (83) supposed to be accounted for from January 1, 1992 to the cut-off date shall be reflected in a constructive basis in their lump-sum amounts for the period covered. B. Trust Funds, NALGU Funds and Municipal Development Funds 1. Prepare the trial balances and supporting statements of the cut-off date for the NALGU Fund and Municipal Development Fund. 2. Prepare journal entries to convert NALGU Fund and Municipal Development Fund accounts to Trust accounts. cdt 3. Prepare journal entries to eliminate the accounts in the books of NALGU Fund and Municipal Development Fund respectively, using the data after the conversion. 4. Prepare journal entries to take-up the accounts of the NALGU Fund Municipal Development Fund in the Trust Fund books. B. Merging of Trust Funds, NALGU Funds and Municipal Development Funds a. NALGU Fund (1) Trial Balance as of July 31, 1992 Debit Debit Credit Credit Account Code Balance Total Total Balance Cash In Treasury 8-70-100 P100,000 P900,000 P800,000 P-0- Other Local Gov't. Treasury 8-70-102 80,000 100,000 20,000 -0- Other Banks 8-70-300 600,000 800,000 200,000 -0- Fixed Assets Land and Land Improvements 8-77-800 3,800,000 3,900,000 100,000 -0- Appropriations Allotted/ Expenditures 0-90-000(1) -0- 100,000 510,000 410,000 Unexpended or Unobligated Allotments (Continuing Allotment Not Subject to Budgeting) 8-90-000(1) -0- 100,000 150,000 50,000 Income/Estimated Revenue (Summary Account) 0-91-000 -0- -0- 50,000 50,000 Current Surplus Unappropriated Balance at the end of the Year 8-92-110 -0- -0- 200,000 200,000 Surplus Adjustments Others 7-92-419 -0- -0- 70,000 70,000 Invested Surplus Principal 8-94-000 -0- -0- 3,700,000 3,700,000 Purchase or Construction 0-94-110 -0- -0- 200,000 200,000 Adjustment (Reduction) 0-94-270 -0- 100,000 -0- (100,000) GRAND TOTALS P4,580,000 P6,000,000 P6,000,000 P4,580,000 ========= ========= ======== ======== (2) Report of Revenues and Receipts as of July 31, 1992 Balance Actual (Undercollected) Code Estimated Collections Overcollected 0-90-220: 1-56-330 P-0- P50,000 P50,000 ______ ______ ______ Total P-0- P50,000 P50,000 Journal Entries 1) Journal entry to eliminate the accounts of the Infrastructure Fund Books Code Dr. Cr. 8-70-100 (1,600,000) (900,000) 8-70-102 (100,000) (80,000) 8-70-500 (200,000) (150,000) 8-77-800 (650,000) 8-79-800 (450,000) 8-81-100 (30,000) (90,000) 0-90-000 (400,000) (1,500,000) 8-90-000 (270,000) (300,000) 0-91-000 (1,500,000) (400,000) 8-92-110 (680,000) 0-92-210 (1,400,000) 0-92-240 (100,000) 0-92-310 (1,700,000) 0-93-310 (1,500,000) (1,700,000) 8-94-000 (450,000) 0-94-110 (440,000) 0-94-170 (210,000) 2) Journal entry to take-up the accounts of the Infrastructure Fund in the books of the General Fund. Code Dr. Cr. 8-70-100 1,600,000 900,000 8-70-102 100,000 80,000 8-70-500 200,000 150,000 8-77-800 650,000 8-79-800 450,000 8-81-100 30,000 90,000 0-90-000 400,000 1,500,000 8-90-000 270,000 300,000 0-91-000 1,500,000 400,000 8-92-110 680,000 0-92-210 1,400,000 0-92-240 100,000 0-92-310 1,700,000 0-93-310 1,500,000 1,700,000 8-94-000 450,000 0-94-110 440,000 0-94-170 210,000 (2) Report of Revenues and Receipts, as of July 31, 1992 Balance Actual (Undercollected) Code Estimated Collections Overcollected 0-92-210: 1-55-990 P1,400,000 P390,000 (P1,010,000) Sub-total P1,400,000 P390,000 (P1,010,000) 0-92-240: 2-60-200 P100,000 P10,000 (P90,000) Sub-total P100,000 P10,000 (P90,000) Grand Total P1,500,000 P400,000 P1,100,000) ======== ======== ========= (3) Continuing Allotment (Not Subject to Budgeting) Status of Allotments and Expenditures, as of July 31, 1992 Code AL EX AL BAL 8731-300 P50,000 P40,000 P10,000 8733-200 250,000 230,000 20,000 P300,000 P270,000 P30,000 ======= ======= ======= (4) Current Legislative Appropriation Status of Appropriations, Allotments and Expenditures, as of July 31, 1992 Code AP AL AP BAL EX AL BAL 8731-100 P100,000 P90,000 P10,000 P-0- P90,000 -200 150,000 140,000 10,000 -0- 140,000 -300 50,000 45,000 5,000 -0- 45,000 8732-100 200,000 190,000 10,000 40,000 150,000 -200 100,000 75,000 25,000 -0- 75,000 -300 300,000 240,000 60,000 200,000 40,000 8914-100 100,000 80,000 20,000 -0- 80,000 -200 300,000 250,000 50,000 -0- 250,000 -300 400,000 390,000 10,000 160,000 230,000 P1,700,000 P1,500,000 P200,000 P400,000 P1,100,000 ======== ======== ======= ======= ======== Legend: AP Appropriations AL Allotments AP BAL Appropriation Balance EX Expenditures AL BAL Allotment Balance ILLUSTRATION A. Merging of General Fund and Infrastructure Fund. (1) Trial Balance of the Infrastructure Fund as of July 31, 1992. Debit Debit Credit Credit Account Code Balance Total Total Balance Cash In Treasury 8-70-100 P700,000 P1,600,000 P900,000 P-0- Other Local Gov't. Treasury 8-70-102 20,000 100,000 80,000 -0- Disbursing Officer 8-70-500 50,000 200,000 150,000 -0- Fixed Assets Land and Land Improvements 8-77-800 650,000 650,000 -0- -0- Furniture, Fixtures, Equipment, Work Animal and Books 8-79-800 450,000 450,000 -0- -0- Payables Nat'l. Gov't. Units 8-81-100 -0- 30,000 90,000 60,000 Appropriations Allocated/ Expenditures 0-90-000 -0- 400,000 1,500,000 1,100,000 Unexpended or Unobligated Allotments (Continuing Allotment Not Subject to Budgeting) 8-90-000 -0- 270,000 300,000 30,000 Income/Estimated Revenue (Summary Account) 0-91-000 -0- 1,500,000 400,000 (1,100,000) Current Surplus Unappropriated Balance at the end of the Year 8-92-110 -0- -0- 680,000 680,000 Tax Revenue 0-92-210 -0- -0- 1,400,000 1,400,000 Grants 0-92-240 -0- -0- 100,000 100,000 Legislative Appropriations Current Year 0-92-310 -0- 1,700,000 -0- (1,700,000) Current Surplus Appropriated Legis- lative Appropriations 0-93-310 -0- 1,500,000 1,700,000 200,000 Invested Surplus Principal 8-94-000 -0- -0- 450,000 450,000 Purchase or Construction 0-94-110 -0- -0- 440,000 440,000 Adjustment - Addition 0-94-170 -0- -0- 210,000 210,000 ________ _______ _______ ________ GRAND TOTALS P1,870,000 P8,400,000 P8,400,000 P1,870,000 ======== ======== ======== ======== 3) Journal entry to eliminate the accounts in the Municipal Development Fund book. Code Dr. Cr. 8-70-100 (3,500,000) (2,000,000) 8-70-102 (300,000) (200,000) 8-70-300 (4,500,000) (3,500,000) 8-84-100 (1,200,000) (3,600,000) 8-84-200 (200,000) 8-77-800 (17,300,000) 8-89-100 (700,000) (8,000,000) 8-94-000 (10,000,000) 5) Journal entry in the Trust Fund book to take up the accounts of the Municipal Development Fund. Code Dr. Cr. 8-70-100 3,500,000 2,000,000 8-70-102 300,000 200,000 8-70-300 4,500,000 3,500,000 8-84-100 1,200,000 3,600,000 8-84-200 200,000 8-77-800 17,300,000 8-89-100 700,000 8,000,000 8-94-100 10,000,000 b. Municipal Development Fund (1) Trial Balance as of July 31, 1992 Debit Debit Credit Credit Account Code Balance Total Total Balance Cash In Treasury 8-70-100 P1,500,000 P3,500,000 P2,000,000 P-0- Other Local Gov't. Treasury 8-70-102 100,000 300,000 200,000 -0- Other Banks 8-7-300 1,000,000 4,500,000 3,500,000 -0- Fixed Assets Land and Land Improvements 8-77-800 17,300,000 17,300,000 -0- -0- Trust Liabilities National Government Agencies 8-84-100 -0- 1,200,000 3,600,000 2,400,000 Long Term Liabilities National Government Agencies 8-89-100 -0- 700,000 8,000,000 7,300,000 Current Surplus Unappro- priated Interfund Transfer 0-92-500 -0- -0- 200,000 200,000 From Infrastructure Fund 2-95-515 -0- 200,000 200,000 -0- Invested Surplus Principal 8-94-000 -0- -0- 8,100,000 8,100,000 Adjustment Addition 0-94-170 -0- -0- 1,200,000 1,200,000 Reduction in Long-Term Indebtedness 0-94-190 -0- -0- 700,000 700,000 GRAND TOTALS P19,900,000 P27,700,000 P27,000,000 19,900,000 ========= ========= ========= ======== Journal Entries 1) Journal entry to convert current surplus accounts to trust liability account. Code Dr. Cr. 0-92-500 (200,000) 2-92-501 (200,000) (200,000) 8-84-200 200,000 2) Journal entry to convert Invested Surplus minor accounts to principal account. Code Dr. Cr. 0-94-170 (1,200,000) 0-94-190 (700,000) 8-94-100 1,900,000 3) Continuing Allotment (Not Subject to Budgeting) Status of Allotments and Expenditures, as of July 31, 1992 Code AL EX ALBAL 8732-300 P150,000 P100,000 P50,000 Journal Entries 1) Journal entry to convert current surplus accounts to trust liabilities accounts in the books of NALGU Fund: Code Dr. Cr. 0-90-000(1) (100,000) (510,000) 8-90-000(1) (100,000) (150,000) 0-91-000 (50,000) 8-92-110 (200,000) 7-92-419 (70,000) 8-84-100 200,000 980,000 2) Journal entry to convert invested surplus minor accounts to principal accounts. Code Dr. Cr. 0-94-110 (200,000) 0-94-270 (100,000) 8-94-000 100,000 200,000 3) Journal entry to eliminate the accounts in the NALGU Fund: Code Dr. Cr. 8-70-100 (900,000) (800,000) 8-70-102 (100,000) (20,000) 8-70-300 (800,000) (200,000) 8-77-800 (3,900,000) (100,000) 8-84-100 (200,000) (980,000) 8-94-000 (100,000) (3,900,000) (6,000,000) (6,000,000) 4) Journal entry in the Trust Fund book to take up the accounts of the NALGU Fund. Code Dr. Cr. 8-70-100 900,000 800,000 8-70-102 100,000 20,000 8-70-300 800,000 200,000 8-77-800 3,900,000 100,000 8-84-100 200,000 980,000 8-94-000 100,000 3,900,000 A NNEX K ACCOUNTING PROCEDURES FOR APPROPRIATIONS AND OBLIGATION A. Appropriation 1. On the basis of the approved Annual Budget, the Accountant shall draw a journal voucher to take it up as follows: Cumulative Results of Operations Unappropriated (CROU) Legislative Appropriation-Current Year 0-92-310 xxx CROU Receipts Automatically Appropriated 0-92-340 xxx Cumulative Results of Operations Appropriated (CROA) Legislative Appropriation 0-93-310 xxx CROA Receipts Automatically Appropriated 0-93-340 xxx (Details) 2. The journal voucher shall be recorded in the General Journal and a memorandum entry shall be made in the Memorandum Section of the Journal and Analysis of obligation (JAO). B. Allotment 1. Based on the advice of Allotment, the Accountant shall draw a journal voucher to take up the released allotment as follows: CROA Legislative Appropriations 0-93-310 xxx CROA Receipts Automatically Appropriated 0-93-340 xxx Appropriations Allotted/Expenditures (AA/E) 0-90-000 xxx AA/E-Interfund Transfer 0-90-500 xxx AA/E-Interlocal Government Transfer 0-90-600 xxx AA/E-Interspecial Account Transfer 0-90-700 xxx (Details) 2. The journal voucher shall be recorded in the General Journal and a memorandum entry shall be made in the Memorandum Section of the JAO as follows. Appropriation Column as negative entry (in parenthesis) Allotment Column as a positive entry 3. The details thereof shall be entered in their respective columns in the Analysis Section of the JAO. C. Obligation 1. For each obligation incurred, a Request for Obligations of Allotment (ROA) shall be prepared in six copies by the requesting department. The original and four copies of the ROA together with the supporting documents shall be forwarded to the Budget Officer and a file copy retained. 2. The Budget Officer shall certify as to the existence of appropriation by signing the appropriate box on the ROA. He shall forward the original and three other copies to the local treasurer and retain a file copy. 3. The local treasurer shall certify as to the availability of funds by signing the appropriate box of the ROA. He shall forward three copies (original included) to the Accounting Department and retain a file copy. 4. The Accounting Department shall process the ROA. The journal keeper shall: a. examine the ROA for regularity b. verify by reference to the JAO whether there is an unobligated balance of allotment sufficient to meet the requested obligation; c. if funds are sufficient, assign an obligation number to the ROA for identification and indicate thereon the approved amount and the date of approval. d. Enter the amount obligated in the JAO under the column "Amount Obligated" and in the appropriate column in the "Analysis of Obligations" section. e. Pass the ROA to the Accountant for signature. f. Give the original copy of the signed ROA to the ledger-keeper, file one copy numerically with the supporting documents and return the last copy to the requesting official to be attached to the Disbursement Voucher. 5. Numbering the ROA The ROA shall be numbered in the following manner: To illustrate, the coding pattern of the obligation of the Office of the Provincial Governor for salaries for the month of January 1, 1992 shall be as follows: To identify the General Fund Proper and Special Accounts Obligation Codes, the fund code shall be affixed with the assigned numbers enclosed in parenthesis such as General Fund Proper, 101(1); Market Operation, 101(51); Slaughterhouse Operation, 101(52); etc. 6. Keeping Subsidiary Ledger Accounts a. The Accounting Department shall use the original copy of the ROA as a subsidiary ledger to support the general ledger accounts Obligations Incurred, 0-82-000 and Obligations Liquidated, 0-83-000. b. The ledger keeper shall: File obligation ledger sheets according to obligation number. Post to the credit column of the ledger sheet the total amount of the obligation, using parenthesis if a negative change is to be recorded. Post to the debit column the amounts of liquidation from the Journal of Cash Disbursement (JCD)/Journal of Checks Issued (JCI) or record of stores issued. cdaisa Enter the unliquidated balance in the balance column as each individual entry is made. Check at the end of each month that the total of the balances on the ledger sheets agrees with the excess of the balance for all funds on general ledger account 0-82-000 over that of 0-83-000. When an obligation is fully paid, but the subsidiary ledger shows a balance, the ledger keeper shall advise the journal keeper about it. The ledger keeper shall post the credit balance to the credit column of the ledger sheet in the negative to reduce the balance to zero and notify the JAO keeper who will make an entry in the journal for a negative (minus) obligation amount. The ledger keeper shall remove the closed ledger sheets from the active files and put them in a closed file. Journal entries of this nature will need no documentary support other than reference to the ROA number. c. At the end of each fiscal year, the accounting official shall close the balances on accounts 0-82-000 and 0-83-000 to account 8-81-400. The subsidiary ledger sheets for the past fiscal year will then be retained in a separate file to support the account until liquidated. 7. Keeping the Journal and Analysis of Obligations a. Detailed instructions for keeping the JAO are shown as attachment to the form (Annex I ) b. The totals of all the obligations in the journals for each fund will be posted each month to the debit of general ledger account 0-90-000 and to the credit of the general ledger account 0-82-000 for each respective fund. c. The following steps shall be taken to prove the accuracy of the JAO totals every month: The sum of the appropriations columns for all JAO for each fund shall be equal to the credit of accounts 0-93-310 and 0-93-340. The sum of the amount of obligation column shall be equal to the sum of all columns in the analysis section. The sum of the balances of allotments columns for all JAO for each fund shall be equal to the credit balance on general ledger account 0-90-000 for such fund. 8. Analyzing Expenditures a. The JAO contains columns on the right-hand side for the analysis of obligations according to the object class code. b. As each obligation is entered in the obligation column of the JAO, the journal keeper shall also enter it in proper object column of the journal. c. At the end of each month, he shall total each object class column to get the total for the month. This shall be added to the cumulative totals as of the end of the preceding month to keep a running total of each object class. 9. Miscellaneous a. Local government units may elaborate on the information provided by the obligation accounting system procedures, and on the records used in the obligation accounting system, if needed for the provision of additional management information. However, any modification shall have the prior authority of the Commission on Audit. ANNEX L ACCOUNTING PROCEDURES FOR SPECIAL ACCOUNTS IN THE GENERAL FUND 1. Subsidiary ledger accounts sub-codes, as shown below, are hereby prescribed for use to identify the special accounts, viz: General Fund Proper (1) Market Operation (51) Slaughterhouse Operation (52) Waterworks Systems (53) Electric Light and Power System (54) Telephone System (55) Toll Roads, Bridges and Ferries (56) Transportation System (57) Cemeteries (58) Local Development Project Agriculture (59) Local Development Project Tourism (60) Local Development Project Commercial Development (61) Local Development Project Community Development (62) Local Development Project Industrial Development (63) Loans (81) Interests (82) Bond Issues (83) Use of sub-codes for special accounts other than those mentioned shall require prior approval of the Commission on Audit. 2. Journal entries of transactions in the vouchers shall identify the special accounts by the proper sub-codes, as provided in this Circular, e.g.: Receipt of cash, P300,000 representing settlement of receivables from a national government agency, allocated as follows: General Fund Proper P200,000 Market Operation 50,000 Telephone Operation 30,000 Local Development Projects Tourism 20,000 P300,000 Dr. Cr. 8-70-100 300,000 8-70-100(1) P200,000 8-70-100(51) 50,000 8-70-100(55) 30,000 8-70-100(60) 20,000 P300,000 ======= 8-71-100 300,000 8-71-100(1) P200,000 8-71-100(51) 50,000 8-71-100(55) 30,000 8-71-100(60) 20,000 P300,000 ======= 3. The subsidiary ledger accounts for appropriations, allotments, obligations and liquidations shall further be identified by codes for the function/program/project/activity, e.g. Legislative appropriation for other equipment of market operation, P30,000. Dr. Cr. 0-92-310 30,000 0-92-310(51) P30,000 ====== 0-93-310 30,000 0-93-310(51) P30,000 ====== 8811-300 P30,000 ====== The code 8811-300 is the subsidiary ledger code for 0-93-310. 4. Interspecial account transfers Transfer of amount from one special account to another, as well as to and from the General Fund Proper may be made, subject to the pertinent provisions of the sanggunian concerned in an approved budget ordinance. Accounting procedures for interspecial account transfers are illustrated below with the use of new accounts which are hereby prescribed for the local government units: a. Appropriations Allotted/Expenditures Interspecial Account Transfers (0-90-400). This account is used to record in the books of local government units only transfers of funds from the General Fund Proper to any of the special accounts in the General Fund or vice-versa. Sub-codes may be suffixed for proper account identification. The code thus suffixed in parenthesis to the function/program/project/activity code indicates the special account to where transfer is made. Illustrative Transactions (1) Market Operation Allotment Advice for interspecial account transfer to General Fund Proper, P 2,000. 0-93-310 2,000 0-93-310(51) P2,000 ===== 9996-490(1) P2,000 ===== 0-90-400 2,000 0-90-400 (51) P2,000 ===== 9996-490(1) P2,000 ===== (2) General Fund Proper Allotment Advice for Interspecial Account Transfer to Market Operation, P3,000. 0-93-310 3,000 0-93-310(1) P3,000 ===== 9996-490(51) P3,000 ===== 0-93-400 3,000 0-90-400(1) P3,000 ===== 996-490(51) P3,000 ===== (3) Electric Light and Power System Allotment Advice for interspecial transfer to General Fund Proper P 6,000. 0-93-310 6,000 0-93-310(54) P6,000 ===== 9996-490(1) P6,000 ===== 0-93-400 6,000 0-93-400(54) P6,000 ===== 9996-490(1) P6,000 ===== (4) Market Operation Obligation for transfer of fund to General Fund Proper P2,000. 0-90-400 2,000 0-90-400(51) P2,000 ===== 9996-490(1) P2,000 ====== 0-82-400 2,000 0-82-400(51) P2,000 ===== 9996-490(1) P2,000 ===== b. Interspecial Account Transfer Summary Account (0-91-700). This account is used to record interspecial account transfers within the General Fund. This account shall have a sub-code affixed after the minor code of the principal account to identify the fund transfers. (1) Interspecial Account Transfers in the General Fund Proper from Market Operation 0-91-700(1)51 where: 0-91-700 Stands for the principal account code (1) Stands for the sub-code of General Fund Proper account 51 Stands for the sub-code to identify where the amount of transfer comes from (2) Interspecial Account Transfer in the Market Operation from the General Fund Proper. 0-91-700(51)1 where: 0-91-700 Stands for the principal account code 51 Stands for the sub-code of Market Operation account 1 Stands for the sub-code to identify where the amount of transfer comes from (3) Interspecial Account Transfers in the Slaughterhouse Operation from Market Operation. 0-91-700(52) 51 where: 0-91-700 Stands for the principal account code (52) Stands for the sub-codes of Slaughterhouse Operation account 51 Stands for the sub-code to identify where the amount of transfer comes from. c. Cumulative Results of Operation Unappropriated Interspecial Account Transfers (0-92-700). This account is used to record the estimated and actual transfers from general fund proper/special accounts of the General Fund. Illustrative Transactions (a) Estimates of transfer in the General Fund Proper from: Market Operation 2,000 Slaughterhouse Operation 3,000 _____ 5,000 0-91-700 5,000 0-91-700(1)51 P2,000 0-91-700(1)52 3,000 ______ P5,000 ===== 0-92-700 5,000 0-92-700(1) P5,000 ===== (b) Estimates of transfer in Market Operation from General Fund Proper P4,000 and from Slaughterhouse Operation, P5,000. 0-91-700 9,000 0-91-700(51)1 P4,000 0-91-700(51)52 5,000 ______ P9,000 ====== 0-92-700 9,000 0-92-700(51) P9,000 ====== (c) Estimates of transfer in Slaughterhouse Operation from General Fund Proper P3,000 and Market Operation, P2,000. 0-91-700 5,000 0-91-700(52)1 P3,000 0-91-700(52)51 2,000 ______ P5,000 ====== 0-92-700 5,000 0-92-700(52) P5,000 ====== 5. Financial Statements a. Monthly trial balances and year-end preliminary and final trial balances shall be prepared for the General Fund. For the General Fund Proper and each Special Account in the General Fund, separate preliminary and final trial balances shall also be prepared at year-end. b. The trial balances shall be supported by the Report of Revenues and Receipts, and the report on the Status of Appropriations, Allotments, and Obligations. The revenues and receipts, and the appropriations, allotments, and obligations, shall be classified as to General Fund Proper and Special Accounts. c. The statement of Operations and Balance Sheet shall be prepared to support the year-end final trial balance of the General Fund. Separate Statements of Operations and Balance Sheets shall also be prepared to support the year-end final trial balances for the General Fund Proper and the Special Accounts in the General Fund. The Revenue Subsidiary Ledgers. B.4.4 To transfer Account Balances of Devolved NGAs Maintaining Special Accounts in the General Fund (SAGF) and Receiving Notice of Allocation from DBM Account Code Debit Credit 8-81-400 55,000 8-84-100 1,500 8-84-300 7,500 8-86-600 5,000 8-86-700 10,000 8-92-110 120,000 8-94-000 350,000 8-96-000 90,000 8-70-100 5,000 8-70-300 148,000 8-70-500 4,000 8-71-100 5,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-100 70,000 8-78-100 200,000 8-79-100 30,000 ANNEX 9 C.1 Recording of Transferred Account Balances in the Books of the LGU Case I All collections were remitted to the National Treasury and cash advances were fully liquidated . C.1.1 To record the transferred account balances from devolved NGA (Operating Unit) receiving NCA from DBM Account Code Debit Credit 8-70-300 80,000 8-71-100 5,000 8-71-100 (DBM) 48,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-100 70,000 8-78-100 200,000 8-79-100 30,000 8-81-400 51,000 8-84-100 1,500 8-84-300 7,500 8-84-900 80,000 8-86-600 5,000 8-86-700 10,000 7-92-419 15,000 8-94-000 350,000 8-96-000 90,000 Note: The amount of account 8-71-100(DBM) is equivalent to the unliquidated obligations (net of prepayments) for which the NCA shall be released by DBM to the CO/RO of the devolved NGAs. The CO/RO shall in turn issue a check of equivalent amount to LGU to pay the transferred obligations. Case II Cash Collections were unremitted and cash advances were unliquidated during the devolution . C.1. To record the transferred account balances from devolved NGA (Operating Unit) receiving NCA from DBM Account Code Debit Credit 8-70-100 5,000 8-70-300 80,000 8-70-500 4,000 8-71-100 5,000 8-71-100 (DBM) 48,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-100 70,000 8-78-100 200,000 8-79-100 30,000 8-81-400 55,000 8-84-100 1,500 8-84-300 7,500 8-84-900 80,000 8-86-600 5,000 8-86-700 10,000 7-92-419 20,000 8-94-000 350,000 8-96-000 90,000 Note: The amount of account 8-71-100 (DBM) is equivalent to the unpaid obligations for which the NCA shall be released by DBM to the CO/RO of the Devolved NGAs. The CO/RO shall in turn issue a check of equivalent amount to the LGU to pay the transferred obligations. ANNEX 10 C.2 Recording of Transferred Account Balances of Devolved NGAs in the Books of the LGUs CASE I All collections were remitted to the National Treasury and cash advances were fully liquidated . C.2.1 To record the transferred account balances from devolved NGA (Operating Unit) receiving Funding Check from RO Account Code Debit Credit 8-70-300 188,000 8-71-100 5,000 8-71-100 (NGA-RO) 50,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-300 70,000 8-78-300 200,000 8-79-300 30,000 8-81-100 105,000 8-81-400 51,000 8-84-100 1,500 8-84-300 7,500 8-84-900 80,000 8-86-600 5,000 8-86-700 10,000 8-86-900 15,000 8-94-000 350,000 8-96-000 90,000 Note: Account 8-71-100 (NGA-RO) represents the amount of funding check to be released by the Regional Office to pay the transferred obligations. Case II Cash Collections were unremitted and cash advances were unliquidated during the devolution . C.2.2 To record the transferred account balances from NGA (Operating Unit ) receiving Funding check from RO Account Code Debit Credit 8-70-100 5,000 8-70-300 178,000 8-70-500 4,000 8-71-100 5,000 8-71-100 (NGA-RO) 50,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-300 70,000 8-78-300 200,000 8-79-300 30,000 8-81-100 105,000 8-81-400 55,000 8-84-100 1,500 8-84-300 7,500 8-84-900 80,000 8-86-600 5,000 8-86-700 10,000 8-86-900 15,000 ANNEX 11 C.3 Recording of Transferred Account Balances in the Books of the LGUs CASE I All collections were remitted to the National Treasury and cash advances were fully liquidated . C.3.1 To record the transferred account balances from devolved NGA (Operating Unit ) receiving Funding Check from RO and NCA from DBM Account Code Debit Credit 8-70-300 130,000 8-71-100 5,000 871-100 98,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-400 70,000 8-78-400 200,000 8-79-400 30,000 8-81-100 100,000 8-81-400 51,000 8-84-100 1,500 8-84-300 7,500 8-84-900 80,000 8-86-600 5,000 8-86-700 10,000 8-86-900 15,000 7-92-419 11,000 8-94-000 350,000 Note: The amount for account 8-71-100 (DBM) is equivalent to the unliquidated obligations (net of prepayments) for which the NCA shall be released by DBM to the CO\RO of the devolved NGAs. The CO/RO shall in turn issue of check of equivalent amount to the LGU to pay the transferred obligations. Case II Cash Collections were unremitted and cash advances were unliquidated during the devolution . C.3.2 To record the transferred account balances from NGA (Operating Unit) receiving Funding check from RO and NCA from DBM Account Code Debit Credit 8-70-100 5,000 8-70-300 130,000 8-70-500 4,000 8-71-100 5,000 8-71-100 (DBM) 98,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-400 70,000 8-78-400 200,000 8-79-400 30,000 8-81-100 100,000 8-81-400 51,000 8-84-100 1,500 8-84-300 7,500 8-84-900 80,000 8-86-600 5,000 8-86-700 10,000 8-86-900 15,000 ANNEX 12 C.4 Recording of Transferred Account Balances in the Books of the LGUs CASE I All collections were remitted to the National Treasury and cash advances were fully liquidated . C.4.1 To record the transferred account balances from NGA maintaining SAGF and receiving NCA from DBM Account Code Debit Credit 8-70-300 153,000 8-71-100 5,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-100 70,000 8-78-100 200,000 8-79-100 30,000 8-81-400 51,000 8-84-100 1,500 8-84-300 7,500 8-86-600 5,000 8-86-700 10,000 8-94-000 350,000 8-96-000 90,000 8-92-110 120,000 Case II Cash Collection were unremitted and cash advances were unliquidated during the devolution . C.4.2 To record the transferred account balances from NGA maintaining SAGE and receiving NCA from DBM Account Code Debit Credit 8-70-100 5,000 8-70-300 148,000 8-70-500 4,000 8-71-100 5,000 8-71-900 10,000 8-72-600 5,000 8-72-700 10,000 8-73-500 12,000 8-74-100 15,000 8-74-200 25,000 8-74-400 10,000 8-74-700 40,000 8-75-900 50,000 8-77-100 70,000 8-78-100 200,000 8-79-100 30,000 8-81-400 55,000 8-84-100 1,500 8-84-300 7,500 8-86-600 5,000 8-86-700 10,000 8-92-110 120,000 8-94-000 350,000 8-96-000 90,000 ANNEX M NEW/REVISED ACCOUNT CODES FOR USE OF LOCAL GOVERNMENT UNITS 1. Inventory Supplies and Materials - Accountable Forms with Face Value (8-72-720) This account is used to record the face value of accountable forms with face value acquired/requisitioned for use in the course of government operations. Its contra account is 8-90-520. cda Illustrative Transactions (a) Purchase of accountable forms P700 for use with face value of P1,000. 0-90-000 P700 0-82-000 P700 1091-207 P700 ==== (b) Payment made P700 on the preceding purchase of accountable forms with face value of P1,000. 0-83-000 P700 1091-207 P700 ==== 8-70-300 P700 Corollary Entry 8-72-720 P1,000 8-90-620 P1,000 (c) Inventory adjustment for the issuance of accountable forms with face value of P900. 8-90-620 P900 8-72-720 P900 2. Payables Unliquidated Obligations Continuing Appropriations, Personal Services (8-81-410) This account is used to record at the close of the year the amount of unpaid obligations for personnel services charged against 0-90-100. Illustrative Transactions (a) Year-end adjustment of Unliquidated obligations charged against continuing allotment for consultancy services for the Office of the Mayor, P1,000.00 0-82-100 P1,000.00 1011-101-100 P1,000.00 ======== (b) Payment from cash advance of the consultancy services for the office of the Mayor obligated out of continuing allotment as follows: Total Consultancy Services P1,000 Less: Withholding Tax 80 Net Amount Paid P920 ===== 8-81-410 1,000 8-70-500 920 8-84-100 80 3. Payables Unliquidated Obligations Continuing Appropriations, Maintenance and Other Operating Expenses (8-81-420) This account is used to record at the close of the year the amount of unpaid obligations for maintenance and other operating expenses charged against 0-90-200. Illustrative Transactions (a) Year-end adjustment of Unliquidated obligation on continuing allotment on repair and maintenance for the Office of Municipal Accountant, P5,000.00. 0-82-100 5,000 1081-204 5,000 ==== 8-81-420 5,000 (b) Payment by check of the repair and maintenance on the Office of the Municipal Accountant obligated at year-end out of continuing allotment are as follows: Total Vouchers Obligated 5,000 Less: Contractor's Tax 500 BIR Withholding Tax 50 550 Amount Due 4,450 8-81-420 5,000 8-70-300 4,450 8-84-100 500 4. Payables - Unliquidated Obligations, Capital Outlay (8-81-430) This account is used to record at the close of the year the amount of unpaid obligations for capital outlay charged against 0-90-300. Illustrative Transactions (a) Year-end adjustments of Unliquidated obligations on continuing allotment on the purchase of xerox machine for the Office of the Assessor, P10,000. 0-82-300 10,000 1101-336 10,000 ===== 8-70-300 10,000 (b) Payment by check of the above obligation. 8-81-430 10,000 8-79-300 10,000 Corollary Entry 8-79-100 10,000 8-79-115 10,000 ===== 8-79-301 10,000 5. Obligation Incurred (0-82-000) This account is used to record orders placed, contracts awarded, services received or other transactions which are legally earmarked or established against an allotment during the current year. Illustrative Transactions Refer to 1 (a) and Annex K. 6. Obligations Incurred Continuing Appropriations, Personal Services (0-82-100) This account is used to record the amount of transactions which are to be charged against the unexpended balance of appropriations/allotment of the past year. Illustrative Transactions (a) Transfer of the unobligated or unexpended continuing allotment (8-90-00) for personal services P1,000 to Appropriations Allotted/Expenditures Continuing Appropriations, 0-90-100 of the Mayor's Office. 8-90-000 P1,000 1011-100 P1,000 ===== 0-90-100 P1,000 1011-100 P1,000 ===== (b) Obligation for payment of allotment on the above problem P600. 0-90-100 P 600 0-82-100 P 600 1011-101-100 P600 ==== 7. Obligations Incurred Continuing Appropriations, Maintenance and Other Operating Expenses (0-82-200). This account is used to record the amount of transactions which are to be charged against the unexpended balance of appropriations/allotment for maintenance and other operating expenses of the past year. Illustrative Transactions (a) Transfer of the unobligated or unexpended continuing allotment (8-90-000) for maintenance and other operating expenses to Appropriations Allotted/ Expenditures - Continuing Appropriations (0-90-000) for the Office of the Accountant. 8-90-000 P2,000 1081-200 P2,000 ====== 0-90-200 P2,000 1081-200 P2,000 ====== (b) obligations for payment of travelling expenses P700 out of continuing appropriations/allotment of the past year. 0-90-200 P700 0-82-200 P700 1081-200 P 700 ====== 8. Obligations Incurred - Continuing Appropriations, Capital Outlay (0-82-300) This account is used to record the amount of orders placed, contracts awarded, or other transactions which are to be charged against the unexpended balance of allotment for capital outlays of the past year. Illustrative Transactions (a) Transfer of the unobligated or unexpended continuing allotment (8-90-000) for capital outlay to Appropriations Allotted/Expenditures - Continuing Appropriations (0-90-300) P7,000 for office equipment of the Barangay Secretariat. 8-90-000 P7,000 1014-300 P7,000 ====== 0-90-300 P7,000 1014-300 P7,000 (b) Obligation for payment of office equipment of the Barangay Secretariat out of the continuing allotment of the previous year P3,000. 0-90-300 P3,000 0-82-300 P3,000 1014-336 P3,000 ====== Corollary Entry 8-79-901 P3,000 0-94-110 P3,000 11. Obligations Incurred - Interspecial Account Transfers (0-82-400). This account is used to record the interspecial account transfers among the General Fund Proper and the Special Accounts maintained in the General Fund which are legally earmarked or established against allotment during the current year. Illustrative Transactions Refer to Annex L. 9. Obligations Incurred - Interfund Transfers (0-82-500) This account is used to record interfund transfers which are legally earmarked or established against an allotment during the current year. cdrep Illustrative Transactions (a) Obligations in the Special Education Fund for interfund transfers to General Fund P800. 0-90-501 P800 0-82-500 P800 9992-525 P800 ==== (b) Obligations in the General Fund for interfund transfers to Special Education Fund P900. 0-90-502 P900 0-82-500 P900 3995-526 P900 ==== 10. Obligations Incurred Interlocal Government Transfers (0-82-600) This account is used to record interlocal government transfers which are legally earmarked or established against an allotment during the current year. Illustrative Transactions Obligations for interlocal government transfers to Province of Oavad P 5,000 City of Oavad 6,000 Municipality of Lamas 7,000 Barangay of Nas Leugim 4,000 P22,000 ===== 0-90-601 P5,000 0-90-602 6,000 0-90-603 7,000 0-90-604 4,000 0-82-600 22,000 9995-650 P 5,000 -660 6,000 -670 7,000 -680 4,000 P22,000 ====== 12. Obligations Liquidated (0-83-000) This account is used to record the payments or liquidations made during the current year of obligations incurred during the same year. Illustrative Transactions (a) Payments made for salaries and wages of the Office of the Administrator P500. 0-83-000 P500 1031-101-100 P500 ==== 8-70-500 P500 (b) Payments for supplies charged to the appropriation of the Planning and Development Coordination P6,000. 0-83-000 P6,000 1041-207 P6,000 ====== 0-70-300 P6,000 Corollary Entry 8-72-700 P6,000 8-90-570 P6,000 (c) Payment for the delivery of office equipment for the Maintenance of Prisoners P9,000. 0-83-000 P9,000 1012-336 P9,000 ====== 8-70-300 P9,000 Corollary Entry 8-79-100 P9,000 8-79-116 P9,000 ====== 8-79-901 P9,000 (N. B. When delivery and payment of fixed assets is made, the in process account should be charged to the proper functional fixed assets account) 13. Obligations Liquidated Continuing Appropriations, Personal Services (0-83-100). This account is used to record the payments or liquidations made for Personal Services during the current year, of obligations incurred during the same year out of continuing appropriations/allotments of the past year. Illustrative Transactions Payments for salaries and wages of the Vice Mayor's Office out of the obligation on continuing allotments of the past year, P11,000 in personal services. 0-83-100 P11,000 1016-101-100 P11,000 ======= 8-70-500 P11,000 14. Obligations Liquidated - Continuing Appropriations, Maintenance and Other Operating Expenses (0-83-200). This account is used to record the payments or liquidations made for maintenance and other operating expenses during the current year of obligations incurred during the same year of continuing appropriations/allotment of the past year. Illustrative Transactions Issued a check P7,000 for payment of semi-expendable property obligated out of the continuing allotment of the past year for License Inspection Service. 0-83-200 P7,000 1015-207 P7,000 ====== 8-70-300 P7,000 Corollary Entry 8-72-600 P7,000 8-90-560 P7,000 15. Obligations Liquidated Continuing Appropriations, Capital Outlay (0-83-300) This account is used to record the payments or liquidations made for capital outlay during the current year, of obligations incurred during the same year of continuing appropriations/allotments of the past year. Illustrative Transactions Payment of transportation equipment for the Civil Security P700,000 obligated out of the continuing allotment of the past year. 0-83-300 P700,000 1014-336 P700,000 ======= 8-70-300 P700,000 Corollary Entry 8-79-100 P700,000 8-79-112 P700,000 ======= 8-79-901 P700,000 18. Obligations Liquidated Interspecial Account Transfers (0-83-400). This account is used to record the liquidations of obligations made for interspecial account transfers during the current year, of obligations incurred during the year. Illustrative Transactions (a) Transfer of bank account from General Fund Proper to Market Operation, P10,000. 0-83-400 P10,000 0-83-400 (1) P10,000 ====== 9996-490 (51) P10,000 ====== 8-70-300 P10,000 8-70-300 (1) P10,000 ====== (N.B. Journal Voucher is used for the transaction as it is recorded as a constructive cash transaction so there is no need of a check for the purpose.) (b) Transfer of bank account from market operation to General Fund Proper, P6,000. 0-83-400 6,000 0-83-400 (51) P6,000 ===== 9996-490 (1) P6,000 ===== 8-70-300 6,000 (c) Transfer of bank account from Slaughterhouse Operation to Market Operation, P5,000. 0-83-400 P5,000 0-83-400 (52) P5,000 ====== 9996-490 (51) P5,000 ====== 8-70-300 P5,000 16. Obligations Liquidated Interfunds Transfers (0-83-500) This account is used to record the payments or liquidations made for interfund transfers during the current year of obligations incurred during the same year. Illustrative Transactions Issued a check amounting to P4,000 to liquidate obligation of transfer of the General Fund to the Special Education Fund. 0-83-500 P4,000 9992-526 P4,000 ====== 8-70-300 P4,000 17. Obligations Liquidated Interlocal Government Transfers (0-83-600). This account is used to record the payments or liquidation made for interlocal government transfers during the current year, of obligations incurred during the same year. Illustrative Transactions Issued checks for liquidations of obligations in interlocal government transfer to Province of Oavad P 8,000 City of Nozueq 6,000 Municipality of Lamas 4,000 Barangay Omomagam 3,000 P17,000 ====== 0-83-000 P17,000 9995-650 P8,000 -660 6,000 -670 4,000 -680 3,000 P17,000 ====== 8-70-300 P17,000 19. Appropriations Allotted/Expenditures Continuing Appropriations, Personal Services (0-90-100). This account is used to record the amount of unexpended allotment for personal services retained in the books which does not require the preparation of special budget or plans of work to be available for expenditure in the succeeding year. Illustrative Transactions Refer to No. 3(a) and No. 3 (b) 20. Appropriations Allotted/Expenditures Continuing Appropriations, Maintenance and Other Operating Expenses (0-90-200). This account is use to record allotment for maintenance and other operating expenses retained in the books which does not require the preparation of special budget or plans of work to be available for expenditure in the succeeding year. Illustrative Transactions Refer No. 4 (a) and No. 4 (b) 21. Appropriations Allotted/Expenditures Continuing Appropriations, Capital Outlay (0-90-300). This account is used to record the amount of unexpended allotment for capital outlays retained in the books which does not require the preparation of special budget or plans of work to be available for expenditure in the succeeding year. Illustrative Transactions Refer to No. 5 (a) and No. 5 (b) 22. Appropriations Allotted/Expenditures Interspecial Account Transfers (0-90-400). This account is used to record in the books of local government units only transfers of funds proper to special accounts or vise-versa within the General Fund. This account may have sub-code enclosed in parenthesis to identify that the account is for the General Fund Proper or to the Special Accounts. The number in parenthesis affixed to the function/program/project/activity code indicates the account to where transfer is made. Illustrative Transactions Refer to Annex L. 23. Appropriations Allotted/Expenditures Interfund Transfers (0-90-500). This account is used to record allotments and actual transfer to other fund. The following sub-account shall be used to identify the fund to which the transfers were made: 0-90-501 To General Fund 0-90-502 To Special Education Fund Illustrative Transactions (a) Allotments of transfer to General Fund in the Special Education Fund book, P6,000. 0-93-310 P6,000 9992-525 P6,000 ====== 0-90-501 P6,000 9992-525 P6,000 ====== (b) Allotments to transfer to Special Education Fund in the General Fund book, P5,000. 0-93-310 P5,000 0-93-310 (1) P5,000 ===== 3995-526 (1) P5,000 ===== 0-90-501 P5,000 0-90-501 (1) P5,000 ===== 3995-526 (1) P5,000 ===== (c) Obligations of transfers: To General Fund in the Special Education Fund (Refer to 6 (a)] To Special Education Fund in the General Fund [Refer to 6 (b)] 25. Appropriations Allotted/Expenditures Accountable Forms With Face Value (8-90-520) This account is used as contra-account of 8-72-720 representing the face value of accountable forms. Illustrative Transactions Refer No. 1. 26. Appropriations Allotted/Expenditures Interlocal Government Transfers (0-90-600). This account is used to record in the books of local government units only transfers of funds to other local government units as aids or contributions. The following sub-accounts shall be used to identify the units to which the transfers were made: 0-90-601 To Provincial Governments 0-90-602 To City Governments 0-90-602 To Municipal Governments 0-90-604 To Barangay Governments Illustrative Transactions (a) Allotments of transfers to Province of Oavad P10,000 City of Nozueq 8,000 Municipality of Lamas 5,000 Barangay Omomagam 7,000 P30,000 ====== 0-93-310 P10,000 9936-650 P10,000 -660 8,000 -670 5,000 -680 7,000 P20,000 ====== 0-90-603 P10,000 9996-650 P10,000 ====== 0-90-602 8,000 9996-660 P8,000 ===== 0-90-603 5,000 9996-670 P5,000 ===== 0-90-604 7,000 9996-680 P7,000 ===== (b) Obligations of interlocal government transfers to LGU's Illustrative Transactions Refer to No. 7. 27. Income Summary Account (6-31-100). This account in used to record the realized accumulated amount of all income account of the government units, entities or funds. Illustrative Transactions (a) Estimates of revenues: Tax Revenue Municipal Business Taxes P80,000 Internal Revenue Allotment 40,000 Operating and Miscellaneous Revenue Certification or Secretary's Fees P10,000 Interest on Deposits with Government Bank 60,000 70,000 Capital Revenue Sale of Assets, Fixed Assets, P40,000 Sale of Assets, Gain on Sale of Assets 10,000 ===== 50,000 ===== Total P240,000 ===== 0-91-100 P240,000 0-91-100(1) 0-92-210: 1-52-101 P80,000 1-55-950 40,000 P120,000 ======= 0-92-220: 1-57-108 P10,000 1,59-220 60,000 P70,000 ====== 0-92-230: 2-61-200 P40,000 2-61-300 10,000 P50,000 ====== P240,000 ====== 0-92-210 P120,000 0-92-210(1) P120,000 ====== 0-92-220 70,000 0-92-220(1) P70,000 ====== 0-92-230 50,000 0-92-230(1) P50,000 ====== (b) Collections & remittance Tax Revenue Municipal Business Taxes P70,000 Internal Revenue Allotment 40,000 ======= P110,000 Operating and Miscellaneous Revenue Certification or Secretary's Fees P10,000 Interest on Deposit with Gov't. Banks 35,000 ====== 45,000 Capital Revenue Sales of Assets Fixed Assets P20,000 Sales of Assets Gain on Sale of Fixed Assets 5,000 ====== 25,000 ====== Total P180,000 ====== 8-70-100 P180,000 0-91-100 P180,000 1-51-101 P70,000 1-55-950 40,000 P110,000 1,-57-108 P10,000 1-59-220 60,000 70,000 2-61-200 P20,000 2-61-300 5,000 25,000 P180,000 ======= Corollary Entry: 0-94-190 P20,000 8-79-100 P20,000 28. Grants and Aids Summary Account (0-91-200). This account is used to record all non-repayable transfers, whether in cash or in kind received from other levels of the government private sector, and international institutions. Illustrative Transactions (a) Estimates of grants and aids: Grants and Aids from - Foreign Government, Rep. of Korea P1,500,000 Other Levels of Government, Dept. of Budget & Management 500,000 P2,000,000 0-91-200 P2,000,000 2-62-100 P1,500,000 2-62-200 500,000 P2,000,000 ======== 0-92-240 P2,000,000 (b) Collections of grants from the Dept. of Budget & Management P400,000. 8-70-100 P400,000 0-91-200 400,000 2-62-200 P400,000 ======= 29. Extraordinary Receipts Summary Account (0-91-300) This account is used to record repayment of loans and advances and other non-recurrent investments of the government. Illustrative Transactions (a) Estimates of extraordinary receipts. (a) Estimates of extraordinary receipts. Government Corporations, DBP P700,000 Local Government's Unit, Province of Otabatoc 300,000 P1,000,000 ======== 0-91-300 P1,000,000 2-63-100 P 700,000 2-63-200 300,000 P1,000,000 ======== 0-92-250 P1,000,000 (b) Collections from the province of Otabatoc for partial payment of a long-term non-interest bearing loan P3,000. 8-70-100 P3,000 0-91-300 P3,000 2-63-100 P3,000 ===== Corollary Entry 0-94-280 P3,000 8-75-200 P3,000 30. Interfund Transfers Summary Account (0-91-500) This account is used to record interfund transfers received from other fund within the local government unit. To identify the source of fund transferred, the following sub-accounts shall be used. 0-91-501 From General Fund 0-91-502 From Special Education Fund Illustrative Transactions (a) Estimate of transfer from General Fund P600 to Special Education Fund. 0-91-501 P600 0-92-500 P600 (b) Actual transfers from General Fund P600, to Special Education Fund, 8-70-100 P600 0-91-501 P600 (c) Estimate of transfer from Special Education Fund, P700. 0-91-502 P700 0-92-500 P700 (d) Actual transfer from Special Education Fund to General Fund, P700. 8-70-100 P700 0-92-502 P700 31 Interlocal Government Transfers Summary Account (0-91-60). This account is used to record interlocal government transfers received from other local government units. To identify the source of funds transferred, the following accounts shall be used: 0-91-601 From Provincial Governments 0-91-602 From City Governments 0-91-603 From Municipal Governments 0-91-604 From Barangay Governments (a) Estimates of transfers from: Province of Onitsuaf P8,000 City of Atepmurt 2,000 Municipality of Zerreitug 4,000 Barangay Unit 1,000 ====== P15,000 0-91-601 P8,000 0-91-602 2,000 0-91-603 4,000 0-91-604 1,000 ====== 0-92-600 P15,000 (2) Actual transfers from: Province of Onitsuaf P3,000 City of Atepmurt 2,000 Municipality of Zerretug 4,000 Barangay of Onit 1,000 P10,000 ======= 8-70-400 P10,000 0-91-601 P3,000 0-91-602 2,000 0-91-603 4,000 0-91-604 1,000 32. Borrowing Summary Account (0-91-700). This account used to record borrowing in cash or in kind whether domestic or foreign. Illustrative Transactions (a) Estimates of borrowings: Domestic, In Cash, National Government P3,000,000 Foreign, In Kind 10,000,000 P13,000,000 ========= 0-91-700 13,000,000 2-64-111 P3,000,000 2-64-200 10,000,000 P13,000,000 ========= 0-92-260 P13,000,000 (b) Receipts of notice from the bank that the loan in cash from the national government has been credited to the account of the LGU. 8-70-300 P3,000,000 0-91-700 P3,000,000 2-64-111 ======== P3,000,000 Corollary Entry 0-94-290 P3,000,000 8-89-100 P3,000,000 (c) Received from European Equipment Corporation as loan from the German Government as a foreign loan P10,000,000. The Sangguniang Bayan passed a resolution recognizing the receipt of the equipment. (NB The transactions are to be taken up under the constructive cash method whereby cash is debited/credited though no such receipt/payment has transpired.) Receipt of notice of loan P10,000,000. 8-70-300 P10,000,000 0-91-700 P10,000,000 2-64-220 P10,000,000 ========= Corollary Entry 0-94-290 P10,000,000 8-89-400 P10,000,000 Appropriation P10,000,000 0-92-310 P10,000,000 0-93-310 P10,000,000 8714-300 P10,000,000 Allotment P10,000,000. 0-93-310 P10,000,000 8714-300 P10,000,000 ========= 0-90-000 P10,000,000 8714-300 P10,000,000 ========= Obligations incurred P10,000,000. 0-90-000 P10,000,000 0-82-000 P10,000,000 8714-336 P10,000,000 ========= Corollary Entry 8-79-908 P10,000,000 0-94-110 P10,000,000 Obligations Liquidated P10,000,000. 0-83-000 P10,000,000 8714-336 P10,000,000 ======== 8-70-300 P10,000,000 Corollary Entry 8-79-800 P10,000,000 8-79-829 P10,000,000 ========= 8-79-908 P10,000,000 33. Interspecial Account Transfers Summary Account (0-91-400). This account is used to record interspecial account transfers within the General Fund account. This account shall have a sub-code affixed after the minor code of the principal account to identify the fund transfers. cdasia Illustrative Transactions Refer to Annex L. 34. Cumulative Results of Operations Unappropriated Retained Earnings (8-92-110) This account is used to record in the books of the agency the balance of the cumulative results of operation unappropriated at year-end after closing all the minor accounts of the cumulative results of operation unappropriated. 35. Cumulative Results of Operations Unappropriated Tax Revenue (0-92-210) This account is used to record in the books the estimated and actual income from taxes, licenses, and duties. Illustrative Transactions Refer to No. 25 36. Cumulative Results of Operation Unappropriated Operating and Miscellaneous Revenue (0-92-220) This account is used to record the estimated and actual income from government operations, services, property, non-financial public enterprises, public financial institutions, administrative fees and charges, non-industrial sales, fines and forfeitures, interest on investments and other operating and miscellaneous revenues. Illustrative Transactions Refer to No. 25. 37. Cumulative Results of Operation Unappropriated Capital Revenue (0-92-230) This account is used to record the estimated and actual income from sales of fixed capital assets, stocks, bonds, lands and intangible assets. Illustrative Transactions Refer to No. 25. 38. Cumulative Results of Operation Unappropriated - Grants (0-92-240) This account is used to record in the books the estimated/actual income from subsidies, grants, aids, gifts, reparations and transfers from foreign entities, individuals, and other levels of government within the country Illustrative Transactions Refer to No. 26. 39. Cumulative Results of Operation Unappropriate Extraordinary Receipts (0-92-250) This account is used to record estimated and actual income from repayment of loans and advances and other non-recurrent investments of the government. Illustrative Transactions Refer to No. 27. 40. Cumulative Results of Operation Unappropriated Borrowing (0-92-260) This account used to record the estimated and actual income from borrowings. Illustrative Transactions Refer to No. 28. 41. Cumulative Results of Operation Unappropriated Interspecial Transfer (0-92-400) This account is used to record the estimated and actual transfers from general fund proper/special accounts of the General Fund. Illustrative Transactions Refer to Annex L. 42. Cumulative Results of Operations Unappropriated Interfund Transfers (0-92-500) This account is used to record the amount of estimated and actual transfer from other funds. Illustrative Transactions Refer to No. 30. 43. Cumulative Results of Operations Unappropriated Interlocal Government Transfers. This account is used to record in the books of local government units only the amount of estimated and actual transfers from other local government units as aid or contributions. Illustrative Transactions Refer to No. 31. 44. Income Subsidiary Accounts (a) New Account Description/Codes 1-52-401 Property Tax, Special Education Fund Current Year 1-52-402 Property Tax, Special Education Fund Preceding Year 1-52-403 Property Tax, Special Education Fund Penalty 1-52-800 Property Taxes, Fines & Penalties (Discontinued) 1-55-600 Other Taxes Community Tax 1-55-914 Other Taxes Fishery Rentals/Charges 1-55-919 Other Taxes Miscellaneous-Others 1-55-950 Other Taxes Miscellaneous Local Government Shares on Internal Revenue Collections 1-55-960 Other Taxes Miscellaneous Local Government Shares on the Proceeds from the Development and Utilization of the National Wealth 1-56-200 Fines and Penalties on Tax Revenue, Property Taxes (except penalties on real property under sub-codes 1-52- 103 and 1-52-403) 1-57-101 Government Services Registration Fees 1-57-102 Government Services Survey or Cadastral Fees 1-57-103 Government Services Naturalization Fees 1-57-104 Government Services Ante Mortem Fees 1-57-105 Government Services Harbor Fees 1-57-106 Government Services Irrigation Fees 1-57-107 Government Services Inspection Fees 1-57-108 Government Services Certification or Secretary Fees 1-57-109 Government Services Circus or Menageries Parade Fee 1-57-110 Government Services Building Permit Fees 1-57-111 Government Services Registration of Cart and Sledge 1-57-112 Government Services Registration of Large Cattle 1-57-113 Government Services Registration on Civil Status 1-57-114 Government Services Marriage Fees 1-57-115 Government Services Burial Permit Fees 1-57-116 Government Services Exhumation or Removal of Cadaver 1-57-117 Government Services Impounding and or Sale of Stray Animals 1-57-118 Government Services Dog License Fees 1-57-119 Government Services Bicycle Permit Fees 1-57-120 Government Services Charges or Holding Benefits 1-57-121 Government Services Police Clearance Fees 1-57-122 Government Services Sheriff Fees 1-57-123 Government Services Court Fees 1-57-124 Government Services Mayor's Permit Fees 1-57-125 Government Services Occupancy Permit Fees 1-57-126 Government Services Electrical Permit Fees 1-57-127 Government Services Plumbing Permit Fees 1-57-128 Government Services Hospital Fees 1-57-129 Government Services Tuition Fees 1-57-130 Government Services Excavation Fee 1-57-131 Government Services Garbage Fee 1-57-150 Government Services Miscellaneous 1-57-201 Government Business Operations Rentals 1-57-202 Government Business Operations Profit Realized from Sales of Manufactured Articles and Goods 1-57-203 Government Business Operations Commission on Consignments 1-57-204 Government Business Operations Sale of Plant and Other Farm Products 1-57-205 Government Business Operations Arrastre and Custom Charges 1-57-206 Government Business Operations Postal and Communication Charges 1-57-210 Government Business Operations Receipts from Public Utilities 1-57-211 Government Business Operations Waterworks System 1-57-212 Government Business Operations Electrical Light and Power 1-57-213 Government Business Operations Telephone System 1-57-214 Government Business Operations Transportation System 1-57-220 Government Business Operations Receipts from Market 1-57-221 Government Business Operations Receipts from Slaughterhouse 1-57-230 Government Business Operations Receipts from Toll Roads, Bridges and Bridges 1-57-240 Government Business Operations Receipts from Cemeteries 1-57-290 Government Business Operations Receipts from Other Business Operations 1-57-300 Operating and Service Income Interest 1-57-400 Operating and Service Income Commission 1-57-600 Operating and Service Income Rent 1-57-700 Operating and Service Income Trading/Production 1-56-800 this account code of 1983 SGCA is discontinued 1-57-900 Operating and Service Income Miscellaneous 1-58-100 Income from Public Enterprises/Investments Interest on Loans 1-58-200 Income from Public Enterprises/Investments Dividends on Stock 1-58-300 Income from Public Enterprises/Investment Interest on Bonds 1-58-400 Income from Public Enterprises/Investments Interest on Treasury Notes/Bills 1-58-500 Income from Public Enterprises/Investments Interest on Promissory Notes 1-58-600 Income from Public Enterprises/Investments Interest on Receivables, Acceptance, and Discounted Notes 1-58-700 Income from Public Enterprises/Investments Gain on Sale of Acquired Assets/Stocks/Bonds 1-58-800 Income from Public Enterprises/Investments Royalties 1-58-900 Income from Public Enterprises/Investments Miscellaneous 1-59-200 Miscellaneous Income Sale of Goods/Merchandise Confiscated 1-59-250 Miscellaneous Income Sale of Scrap Construction Materials 1-59-300 Miscellaneous Income Gain on Foreign Exchange 1-59-400 Miscellaneous Income Contribution 1-59-500 Miscellaneous Income Inventory Adjustments 1-59-700 Miscellaneous Income Sale of Waste Materials 1-59-900 Miscellaneous Income Miscellaneous 1-60-100 Fines and Penalties Operating and Service Income 1-60-200 Fines and Penalties Income from Public Enterprises/Investments 1-60-300 Fines and Penalties Miscellaneous Income 2-61-100 Sale of Assets Public Domain 2-61-200 Sale of Assets Fixed Assets 2-61-300 Sale of Assets Gain on Sale of Fixed Assets 2-61-400 Sale of Assets Scrap Fixed Assets 2-61-500 Sale of Assets Intangible Assets 2-61-800 Sale of Assets Investments/Stocks/Bonds 2-61-850 Sale of Assets Gain on Sale of Investments/Stocks/Bonds 2-62-100 Grants and Aids From Foreign Countries 2-62-200 Grants and Aids From Other Levels of Government 2-62-300 Grants and Aids Domestic 2-63-100 Repayment of Advances/Loans and Other Extraordinary Receipts Government Corporation 2-63-200 Repayment of Advances/Loans and Other Extraordinary Receipts Local Government Units 2-63-900 Repayment of Advances/Loans and Other Extraordinary Receipts Miscellaneous 2-64-100 Borrowings Domestic In Cash, National Government 2-64-112 Borrowings Domestic In Cash, Local Government Agencies 2-64-113 Borrowings Domestic In Cash, Government owned and/or controlled Corporation 2-64-121 Borrowings Domestic In Kind, National Government 2-64-122 Borrowings Domestic In Kind, Local Government Agencies 2-64-123 Borrowings Domestic In Kind, Government-owned and/or controlled Corporation 2-64-124 Borrowings Domestic In Kind, Non-Government Entities 2-64-210 Borrowings Foreign In Cash 2-64-220 Borrowings Foreign In Kind (b) Account Descriptions/Codes Discontinued/Changed 1-52-800 Property Taxes, Fines & Penalties (Discontinued) 1-53-800 Taxes on Goods and Services, Fines & Penalties (Discontinued) 1-55-600 Other Taxes Residence Tax (replaced with Other Taxes-Community Tax) 1-55-800 Other Taxes Fines and Penalties (Discontinued) 1-55-914 Other Taxes Water Rental (replaced with Other Taxes Fishery Rentals/Charges) 1-56-101) replaced with account codes 1-57-101 to) to 1-56-129) 1-57-129 1-56-201) replaced with account codes 1-57-201 to ) to 1-56-206) 1-57-206 1-56-300) replaced with account codes 1-57-300 to) to 1-56-700) 1-57-700 1-56-800 Government Business Operations Fines and Penalties (Discontinued) 1-57-100) replaced with account codes 1-58-100 to) to 1-57-900) 1-58-900 1-58-400) replaced with account codes 1-59-400 to) to 1-58-900) 1-59-900 1-59-100) replaced with account codes 2-61-100 to) to 1-59-500) 2-61-500 2-60-100) replaced with account codes 2-62-100 to) to 2-60-300) 2-62-300 45. Expense Subsidiary Accounts (a) New Expense Account Descriptions/Codes Personal Services 3-01-320 Social Security Contributions- Pag-ibig Contributions Maintenance and Other Operating Expenses 3-05-000 Repairs and Maintenance of Government Vehicles 3-06-000 Transportation Services 3-17-000 Training and Seminar Expenses 3-18-000 Extraordinary and Miscellaneous Expenses 3-13-200 Loss/Depreciation/Depletion Losses of Fixed Assets 3-19-000 Confidential and Intelligence Expenses 3-20-000 Anti-Insurgency/Contingency/Emergency Expenses 100 Anti-Insurgency Operations 200 Contingency Expenses 300 Emergency Expenses 3-23-000 Advertising and Publication Expenses 3-24-000 Fidelity bond and Insurance Premium 3-25-000 Loss on Foreign Exchange 3-29-000 Other Expenses Capital Outlay 4-31-000 Investment Outlay 4-32-000 Loans Outlay 4-33-000 Livestock and Crops Outlay 4-34-000 Land and Land Improvements Outlay 4-35-000 Buildings and Structure Outlay 4-36-000 Furniture, Fixtures, Equipment and Books Outlay 4-37-000 Work Animals Outlay (b) Account Descriptions/Codes Discontinued/Changed Maintenance and Other Operating Expenses 3-06-000 Other Services (Discontinued) replaced by Other Expenses with account code 3-29-000 3-17-000 Maintenance of Motor Vehicles Used for Official Travels of Officials and Employees (Discontinued) replaced by Repairs and Maintenance of Government Vehicles with account code 3-05-000 100 Repairs and Servicing )(Discontinued) 200 Spare Parts ) 300 Gasoline and Oil ) 3-18-000 Discretionary Expenses (Discontinued) replaced by Confidential and Intelligence Expenses with account code 3-19-000) 3-19-000 Representation Expenses (Discontinued) replaced by Extraordinary and Miscellaneous Expenses with account code 3-18-000) 3-20-000 Extraordinary/Contingency/Emergency Expenses changed to Anti-Insurgency/Contingency/Emergency Expenses 100 Extraordinary Expenses (Discontinued) replaced with Anti-Insurgency Operations 400 Foreign Exchange Losses (Discontinued) 32. Function/Program/Project/Activity Codes for Expenditures and Transfers FUNCTION / PROGRAM / PROJECT CODE I. GENERAL PUBLIC SERVICES 1000 Executive Services (Governor/Mayor) General Administration 1011 Maintenance of Prisoners 1012 Civil Security 1013 Barangay Secretariat 1014 License Inspection Service 1015 Vice Governor/Mayor 1016 Legislative Service (Sangguniang Bayan) Legislation 1021 Support Services (Secretariat) 1022 Administrative Services (Administrator) General Administration 1031 Personnel Officer 1032 Planning and Development Coordination General Administration 1041 Civil Registry (Civil Registrar) General Administration 1051 General Services (General Services Officer) General Administration 1061 Budgeting Services (Budget Officer) General Administration 1071 Accounting Services (Accountant) General Administration 1081 Treasury Services (Treasurer) General Administration 1091 Assessment of Real Property (Assessor) General Administration 1101 Real Property Tax Administration (Tax Mapping, Revision of Assessment, etc.) Auditing Services (Auditor) General Administration 1111 Information Services General Administration 1121 Library Services 1122 Legal Services (Attorney/legal Officer) General Administration 1131 Prosecution Services (Fiscal) General Administration 1141 Administration of Justice (Inferior Court) Regional Trial Court 1151 Circuit Criminal Court 1152 Court of Agrarian Relations 1154 Juvenile and Domestic Relations Courts 1155 City/Municipal Trial Court 1158 Land Registration Services (Register of Deeds) General Administration 1161 Mining Claim Registration Services (Mining Recorder) General Administration 1171 Police Services General Administration 1181 Fire Protection Services General Administration 1191 Local Development Fund Referendum/Election 1912 Real Property Tax Administration 1913 Peace and Order 1914 Repair and Maintenance of Governor Facilities General Public Service 1917 Purchase, Construction and Improvement of Government Facilities General Public Service 1918 Others 1919 Miscellaneous General Public Services Election Reserve 1991 Sinking Fund Contributions 1992 Others 1999 III. EDUCATION, CULTURE, SPORTS AND MANPOWER DEVELOPMENT 3000 School Supervision (Superintendent of Schools) General Administration 3311 Public Education Elementary Schools 3321 Secondary Schools 3322 University/College Education 3323 Vocational/Technical School 3324 Adult Education 3325 Education Subsidiary Services Medical Subsidiary Services 3331 Manpower Development Management Tool (Seminar Expenditures and Training Projects) 3351 Maintenance of Sports Centers, Athletic Fields, Playgrounds General Administration 3361 Operation of Culture/Conference/Convention Center General Administration 3371 Revolving Loan Fund 3381 Other Education, Sports and Manpower Development Services Cultural Projects 3391 Sports/Development/Physical Fitness 3392 Sundry Education Services 3399 Local Development Fund Management Tool 3911 Revolving Loan Fund 3915 Repair and Maintenance of Government Facilities Education, Culture, Sports and Manpower Development 3917 Purchase, Construction and Improvement of Government Facilities Education, Culture, Sports and Manpower Development 3918 Others 3919 Miscellaneous Education, Sports and Manpower Development Services Aids and Contributions to National Governments 3993 Aids and Contributions to Government Agencies Other than National or Local 3994 Transfer to Special Education Fund 3995 Interlocal Government Transfers 3996 Aids to Non-Government Entities 3998 Others 3999 IV. HEALTH SERVICES 4000 Health Services (Health Officer) General Administration 4411 Field Projects (Immunization, Inoculation, Blood Donor Services, etc.) 4412 Day Care Clinic 4413 Hospital General Administration 4421 Chest Clinic General Administration 4431 Local Development Fund Repair and Maintenance of Government Facilities Health 4917 Purchase, Construction and Improvement of Government Facilities Health 4918 Others 4919 Miscellaneous Health Services Aids and Contribution to National Government 4993 Aids and Contribution to Government Agencies Other than National or Local 4994 Others V. LABOR AND EMPLOYMENT 5000 Miscellaneous, Labor and Employment Aids and Contributions to National Government 5993 Others 5999 VI. HOUSING AND COMMUNITY DEVELOPMENT 6000 Housing Projects General Administration 6511 Sanitary Services Street Cleaning 6521 Garbage Collection 6522 Sewerage and Drainage System 6523 Street Lighting General Administration 6531 Community Development General Administration 6541 Resettlement, Zonal Improvement Projects Urban and Rural Renewal, etc. 6542 Beautification 6543 Maintenance of Plazas, Parks and Monuments 6544 Local Development Fund Community Development Projects 6911 Revolving Loan Fund 6915 Repair and Maintenance of Government Facilities Housing and Community Development 6917 Purchase, Construction and Improvement of Government Facilities Housing and Community Development 6918 Others 6919 Miscellaneous Housing and Community Development Others 6999 VII. SOCIAL WELFARE SERVICES 7000 Social Welfare Services (Social Welfare & Development Officer) General Administration 7611 Family Planning Services (Population Officer) General Administration 7621 Miscellaneous, Other Social Service Aids and Contributions to National Government 7993 Aids and Contributions to Government Agencies Other than National or Local 7994 Others 7999 VIII. ECONOMIC SERVICES 8000 Agricultural Services General Administration (Agriculturist) 8711 Extension and on-site research services 8712 Demonstration/Farm Nurseries 8713 Operation of Farm Equipment Pool 8714 Quality Control of Agricultural Products 8715 Irrigation System 8716 Veterinary Services (Veterinarian) General Administration 8721 Natural Resources Services (Environment & Natural Resources Officer) General Administration 8731 Architectural Services (Architect) General Administration 8741 Engineering Services General Administration 8751 Construction 8752 Maintenance 8753 Operation of Motor Pool 8754 Operation of Rock Crusher 8755 Cooperative Services(Cooperative Officer) General Administration 8761 Operation of Waterworks System General Administration 8771 Operation of Electric Light and Power System General Administration 8781 Operation of Telephone System General Administration 8791 Operation of Toll Roads, Bridges and Ferries General Administration 8801 Operation of Markets General Administration 8811 Operation of Slaughterhouse General Administration 8812 Operation of Transportation System General Administration 8821 Weather and Meteorological Services General Administration 8831 Operation of Cemeteries General Administration 8841 Economic Development Programs Agricultural Development Projects 8851 Tourism Projects 8852 Commercial Development (Trade, fair, etc.) 8853 Industrial Development Projects (Cottage Industry, etc.) 8854 Revolving Loan Fund 8855 Other Economic Development Projects (Price Control Council, Coop. Development, etc.) 8859 Local Development Fund Agricultural Development Projects 8911 Tourism Projects 8912 Commercial Development Projects 8913 Industrial Development Projects 8914 Revolving Loan Fund 8915 Repair and Maintenance of Government Facilities Economic Services 8917 Purchase, Construction and Improvement of Government Facilities Economic Services 8918 Other Economic Services Projects 8919 Energy Development Project General Administration 8861 Livelihood Projects General Administration 8871 Miscellaneous Economic Services Advances to Economic Enterprise 8991 Investments 8992 Interlocal Government Transfer for Economic Services 8996 Others 8999 II. OTHER PURPOSES 9000 Local Development Projects Public Debt Loan Amortization Domestic 9911 Foreign 9912 Interest Payments Domestic 9913 Foreign 9914 Revolving Loan Fund 9915 Outlays in Connection with Disasters and Other Calamities, Other than Budgetary Reserves 9919 Public Debt - Loan Amortization Domestic 9921 Foreign 9922 Interest Payments Domestic 9923 Foreign 9924 Retirement and Other Benefits Lump Sun Appropriations 9931 Miscellaneous Other Purposes Outlays In Connection with Disasters and Other Calamities, Other than Budgetary Reserves 9991 Interfund Transfers, Hot Elsewhere Classified 9992 Aids to National Government Agencies 9993 Aids and Contributions to Government Agencies Other than National and Local, Hot Elsewhere Classified 9994 Interlocal Government Transfers, Hot Elsewhere Classified 9995 Interspecial Account Transfer 9996 Aids to Non-Government Entities, Not Elsewhere Classified 9997 Budgetary Reserves 9998 Others 9999 ANNEX N Journal of Collections and Deposits ANNEX N-1 INSTRUCTIONS JOURNAL OF COLLECTIONS AND DEPOSITS 1. The blank columns and spaces shall be filled up accordingly as follows: a. Heading The name of the local government unit, the month and year, the sheet number and fund code shall be indicated therein. b. Date (1) The date when the collection is being reported shall be entered in this column. c. Report No. (2) The number of the report being recorded shall be entered in this column. d. Account 8-70-100, Debit (3) The total amount of cash received shall be entered in this column. e. Account 8-70-300, Debit (4) cda The total amount deposited with the bank as shown in the Cashier/Treasurer's Report of Daily Collections and Deposits (CTRDCD) shall be entered in this column. f. Account Code, Sundry Debit (5) The code of the account debited in the report other than accounts 8-70-100 and 8-70-300 shall be entered in this column. g. Posted, Sundry Debit (6) A check mark shall be written in this column to indicate completion of posting to the general ledger of the individual account entered in column 5 h. Amount, Sundry Debit (7) The total amount debited to the account indicated in the account code column (5) shall be entered in this column. Recapitulation of this column shall be made for posting to the general ledger. i. Account 8-70-100, Credit (8) The total amount deposited with the bank as entered in column 4 hereof shall be entered in this column. j. Account 0-91-100, Credit (9) The total amount collected from tax revenues, operating and miscellaneous revenues and capital revenues shall be entered in this column. k. Account 0-91-200, Credit (10) The amount of income from grants and aids shall be entered in this column. l. Blank Columns (11) & (12) These blank columns may be used for other accounts frequently credited. m. Account Code, Sundry Credit (13) The code of an account credited for which no special column has been provided shall be indicated in this column. n. Posted, Sundry Credit (14) A check mark shall be written in this column to indicate completion of the postings to the general ledger. o. Amount, Sundry Credit (15) The amount credited to the account indicated in the account code column (13) shall be entered herein. Recapitulation of this column shall be made for posting to the general ledger. 2. This special journal shall be prepared by fund. 3. A new sheet shall be started at the beginning of each month. The sheets shall be numbered in one series for each fiscal year. 4. Each sheet shall be footed and the totals carried forward to the next sheet. Succeeding sheets shall start with the totals brought forward. 5. At the end of the month, this journal shall be footed, balanced and ruled. The ruling shall be made on the last line immediately after the last entry. 6. Posting to the general ledger shall be made from the journal. A check mark immediately underneath the total of the special columns shall be made to indicate completion of posting to the general ledger. 7. The journal shall be certified by the local accountant on every sheet for the month as follows: CERTIFIED CORRECT, _________________ Signature ________________ Designation ANNEX O Journal of Checks Issued (Local) ANNEX O-1 JOURNAL OF CHECKS ISSUED (Local) 1. All blank spaces and columns shall be filled up accordingly as follows: a. Heading The name of the agency, month, year, sheet number and fund name/code shall be indicated in the appropriate spaces. b. Date The date the Report of Checks Issued (RCI) is received shall be entered in this column. c. Report Number The number of the RCI shall be entered in this column. d. Check Number Series The check number series or batch shall be entered in this column. e. Period covered The period covered by the report shall be entered in this column. f. Treasurer/Disbursing Officer The name of the Treasurer/Disbursing Officer whose report is being recorded shall be entered in this column. g. Account 8-70-300 (Credit) The total amount of the checks issued for account 7-70-300 as shown in the RCI being recorded shall be entered in this column. h. Account Code, sundry Credit The code of the account credited in the report shall be entered in this column. i. Posted A check mark shall be written in this column to indicate completion of posting to the general ledger of the individual or recapitulated amount entered in the next column. j. Amount, Sundry (Credit) The total credited to the accounts indicated in the preceding column shall be entered in this column. k. Account 0-83-000 (Debit) The total of the column for account 0-83-000 in the RCI being recorded shall be entered in this column. l. Account 8-81-400 (Debit) The total of the column for account 8-81-400 in the RCI being recorded shall be entered in this column. m. Account 8-70-500 (Debit) The total of the column for account 8-70-500 in the RCI being recorded shall be entered in this column. n. Blank Column (Debit) These blank columns may be utilized for other recurring accounts credited. o. Account Code, Sundry (Debit) The code of the account being debited in the report shall be entered in this column. p. Posted A check mark shall be written in this column to indicate completion of posting to the general ledger of the individual or recapitulated amount entered in the next column. q. Amount, Sundry (Debit) The amount being debited to the accounts indicated in the preceding column shall be entered in this column. 2. This special journal shall be prepared by fund. 3. A new sheet shall be started at the beginning of each month. The sheets shall be numbered in one series for each fiscal year. 4. Each sheet shall be footed and the totals carried forward to the next sheet. The succeeding sheet shall start with the totals brought forward. 5. At the end of each month, the journal shall be footed, balanced and ruled. The ruling shall be made on the line immediately after the last entry. 6. Postings shall be made directly from this journal to the General Ledger. Check marks beneath the column totals shall be made to indicate completion of postings. 7. Each sheet of the journal shall be certified by the Chief Accountant/Head of Accounting Unit as follows: CERTIFIED CORRECT: ________________ Signature _______________ Designation ANNEX P Journal of Disbursement by Treasurer/Disbursing Officer ANNEX P-1 INSTRUCTIONS JOURNAL OF DISBURSEMENTS BY TREASURER/DISBURSING OFFICER (JDTDO) 1. The blank spaces and columns shall be filled up accordingly as follows: a. Heading The name of the local government unit, the month and year, the sheet number and fund code shall be indicated in the heading. b. Date The date the Report of Disbursement was recorded shall be entered in this column. c. Report Number The number of the report being recorded shall be entered in this column. d. Treasurer/Disbursing Officer The name of the Treasurer or Disbursing Officer whose report is being recorded shall be entered in this column. e. Period Covered The period Covered by the report being recorded shall be entered in this column. f. Account 8-70-500 (Credit) The total amount of disbursements paid from Cash, Disbursing Officer as shown in the Report of Disbursement shall be entered in this column. g. Account Code, Sundry Credit The code of the account being credited shall be entered in this column. Deductions from payrolls for GSIS premiums and loans, real estate installment accounts, medicare premiums, etc. are usually the nature of the items that will be credited to the accounts in this sundry column. h. Posted, Sundry Credit A check mark shall be written in this column to indicate completion of posting of the accounts appearing in the preceding column to the general ledger. i. Amount, Sundry Credit The total amount being credited to the account indicated in the preceding column shall be entered in this column. k. Account 0-83-000, Debit The amount of liquidation for current year's obligations shall be entered in this column. l. Account 0-81-400, Debit The amount of liquidation of prior years' payables shall be entered in this column. m. Blank Columns, Debit Blank columns may be used for other accounts debited in the report of disbursement. When the blank columns are insufficient to record other debit accounts not provided with special columns, the Sundry (Debit) section may be used. n. Account Code, Sundry Debit The code of an account being debited shall be entered in this column. o. Posted, Sundry Debit A check mark shall be written in this column to indicate completion of postings of the account appearing in the preceding column. p. Amount, Sundry Debit The total amount being debited to the account indicated in column 14 shall be entered in this column. 2. This special journal shall be prepared by fund. 3. A new sheet shall be started at the beginning of each month. The sheets shall be numbered in one series for each fiscal year. 4. Each sheet shall be footed and the totals carried forward to the next sheet. Succeeding sheets shall start with the totals brought forward. 5. At the end of the month, journal shall be footed, balanced and ruled. The ruling shall be made on the line immediately after the last entry. 6. Postings to the general ledger shall be made from this journal. A check mark immediately underneath the total of the special columns and recapitulated amounts of the Sundry columns shall made to indicate completion of posting. 7. The journal shall be certified by the local accountant on every sheet for the month as follows: CERTIFIED CORRECT: _________________ Signature ________________ Designation June 14, 1996 BSP CIRCULAR NO. 110-96 The Monetary Board, in its Resolution No. 578 dated June 13, 1996 approved the following guidelines to implement various legal provisions governing the acceptance by banks of deposits of the Government, its political subdivisions and instrumentalities, as well as of Government-owned or controlled corporations: SECTION 1. Legal provisions . The relevant legal provisions on the acceptance by banks of deposits of the Government, its political subdivisions and instrumentalities, as well as of Government-owned or controlled corporations are as follows: 1. Republic Act No . 7845 ( " General Appropriations Act of 1995") "Section 14. Restrictions on the Use of Government Funds . No government funds shall be utilized for the following purposes: cdasia xxx xxx xxx 5. To be invested in non-government securities, money market placements and similar investments or deposited in private banking institutions . "The provisions of this section shall apply to local government units, political subdivisions and government-owned and/or controlled corporation. . . ." 2. Republic Act No . 7653 (" The New Central Bank Act ") "Section 113. Official Deposits . The Bangko Sentral shall be the official depository of the Government, its political subdivisions and instrumentalities as well as of Government-owned or controlled corporations and, as a general policy, their cash balances should be deposited with the Bangko Sentral , with only minimum working balances to be held by government-owned banks and such other banks incorporated in the Philippines as the Monetary Board may designate, subject to such rules and regulations as the Board may prescribe: Provided , that such banks may hold deposits of the political subdivisions and instrumentalities of the Government beyond their minimum working balances whenever such subdivisions and instrumentalities have outstanding loans with such banks ." 3. Republic Act No . 7160 (" Local Government Code of 1991 ") "Section 311. Depository Accounts . Local treasurers shall maintain depository accounts in the name of their respective local government units with banks, preferably government-owned located in, or nearest to their respective areas of jurisdiction. Earnings of each depository account shall accrue exclusively thereto. 4. Republic Act No . 7906 (" Thrift Banks Act of 1995 ") "Section 10. Powers of Thrift Banks . In addition to powers granted it by this Act and existing laws, any thrift bank may": xxx xxx xxx (e) Act as official depository of national agencies and of municipal, city or provincial funds in the municipality, city or province where the thrift bank is located, subject to such guidelines as may be established by the Monetary Board ." 5. Republic Act No . 7353 (" Rural Banks Act of 1992 ") "Section 12. In addition to the operations specifically authorized in this Act any rural bank may: xxx xxx xxx (e) Act as official depository of municipal, city or provincial funds in the municipality, city or province where it is located, subject to such guidelines as may be established by the Monetary Board ". 6. Republic Act No . 6938 (" Cooperative Code of the Philippines ") "Article 108. Privileges Cooperative banks shall have the following privileges subject to the approval of the Central Bank and compliance with applicable banking laws, rules and regulations : xxx xxx xxx (2) To act as a depository of government funds . For this purpose, all government departments, agencies and units of the national and local governments, including government-owned and controlled corporations are hereby authorized to deposit their funds in any cooperative bank." 7. Republic Act No . 3844 ( Code of Agrarian Reform ) Section 75. Powers in General . The Land Bank of the Philippines shall have the power: xxx xxx xxx "(12) to act as an official depository with full authority to maintain deposits of the Government, its branches, subdivisions and instrumentalities, and of government-owned or controlled corporations which deposits shall be subject to liquidity floor and/or reserve requirements as may be imposed by the Monetary Board upon other commercial banks". 8. Republic Act No . 6848 ( Al-Amanah Islamic Investment Bank Charter ). Section 6. Islamic Bank's Powers . The Al-Amanah Islamic Bank of the Philippines, upon its organization, shall be a body corporate and shall have the power: xxx xxx xxx "(8) to act as an official government depository, or its branches, subdivisions and instrumentalities and of government-owned or controlled corporations, particularly those doing business in the autonomous regions". 9. Republic Act No . 7169 "Section 6. Veterans Bank as a Government Depository . The Secretary of Finance, the National Treasurer and his authorized representatives, city and municipal treasurers, as well as custodians of public funds or those belonging to government-owned or controlled-corporations, are hereby authorized if they so desire to make and actually maintain deposits of any government or corporate funds with the Veterans Bank , which is hereby declared to be a government depository ." SECTION 2. Opinion of the Secretary of Justice . The Secretary of Justice in his Opinion No. 57 dated May 29, 1995 , ruled that: ". . . harmonization of all the abovementioned laws is possible and the rules of harmonization may be stated as follows: "The general prohibition under Section 14(5) of the GAA stays no government funds shall be deposited in private banking institutions. "By way of exception , the Monetary Board may approve, subject to such guidelines as it may establish , a request for the deposit of government funds, whether pertaining to national or local agencies or government-owned or controlled corporations, in any rural bank pursuant to R.A. No. 7353 , or any cooperative bank pursuant to R.A. No. 6938 or any thrift bank pursuant to R.A No. 7906 , or in any private bank designated by the Monetary Board pursuant to R.A. No. 7653 . " It should be stressed that unless the Monetary Board approves it, government funds shall not be deposited in any private banking institution in view of the general prohibition in Section 14(5) of the GAA ." SECTION 3. Statement of policy . As a general policy, cash balances of the Government, its political subdivisions and instrumentalities as well as of Government-owned or controlled corporations shall be deposited with the Bangko Sentral, with only minimum working balances to be held by Government-owned banks and such other banks incorporated in the Philippines as the Monetary Board may designate pursuant to this Circular: Provided, that such banks may be authorized by the Monetary Board to hold deposits of the political subdivisions and instrumentalities of the Government beyond their minimum working balances whenever such subdivisions and instrumentalities have outstanding loans with said banks. cda SECTION 4. Prior Monetary Board approval . No private bank shall, without prior approval of the Monetary Board, accept, as depository, any fund or money from the Government, its political subdivisions and instrumentalities, and Government-owned or controlled corporations; nor shall a private bank borrow any fund or money therefrom, through the issuance or sale of its acceptances, notes or other evidences of indebtedness. cdt SECTION 5. Banks which may accept government funds . 1. Banks, the majority of the capital of which is owned by the Government, may act as depository of funds of the Government, its political subdivision and instrumentalities, and Government-owned or controlled corporations. 2. Private banks incorporated in the Philippines may act as depository of government funds only with the prior approval of the Bangko Sentral. Local government units may maintain depository accounts preferably in Government banks and, in exceptional cases and with the prior approval of the Monetary Board, in the name of their respective government units in private banks located in or nearest to their respective areas of jurisdiction but the depository bank(s) must also seek the prior approval of the Bangko Sentral; Provided, That a private thrift, rural and cooperative bank may only act as official depository of government funds pursuant to Republic Act Nos. 7906, 7353 and 6938, as follows: a. a thrift bank may only act as official depository of national agencies, and of municipal, city or provincial funds in the municipality, city or province where the thrift bank is located; b. a rural bank may only act as official depository of municipal, city or provincial funds in the municipality, city or province where the rural bank is located; and c. a cooperative bank may accept deposits of all government departments, agencies and units of the national and local governments including government-owned or controlled corporations. 3. Where there is no Government bank or Bangko Sentral office in the province and the nearest Government bank or Bangko Sentral office is inaccessible by ordinary transportation, or transporting/withdrawing the government deposits to and from the said office is impractical or risky, the province, as well as cities and municipalities located therein, may seek approval of the Monetary Board to consider all their funds eligible for deposits with a qualified private depository bank within the province, city or municipality, as the case may be. 4. Banks acting as official depository of Government funds may accept demand, savings or time deposits. 5. The authority of a bank to accept Government deposits does not obligate the Government, its subdivisions and instrumentalities and Government-owned or controlled corporations to deposit with that bank. Thus, even if a thrift or rural bank is authorized by the Monetary Board to accept Government deposits, a municipality is not obligated to deposit with that thrift or rural bank. Similarly a bank which is authorized to accept deposits of the Government or a Government corporation because of outstanding loans granted by the bank cannot demand as a matter of right that the Government or Government corporation make deposits unless there is a stipulation in the loan agreement. SECTION 6. Limits on funds of the Government and government entities that may be deposited with banks . 1. Funds of the Government, its subdivisions and instrumentalities, and Government-owned or controlled corporations, deposited with banks authorized to receive deposits shall be limited to the minimum working balance of the depositor. With prior Monetary Board approval, Government or private banks may be authorized to accept amounts in excess of minimum working balances if the Government or government entity making the deposit has outstanding loan obligations to the depository bank but such amounts shall not exceed the amount of its outstanding loan obligations to the depository bank. The amount of non-transferable and non-negotiable Government securities with market or below market interest rate at the time of issue, issued by the National Government to the depository bank shall be considered as "outstanding loans" of the National Government to said bank within the meaning of Section 113 of Republic Act No. 7653. 2. The aggregate amount of government funds which a private bank can hold at any given time shall not exceed 200% of the bank's networth. 3. Where any director, officer or stockholder of a private bank, as defined under Subsec. 326.1 of the Manual of Regulations, is also an elective or appointive official of a municipality, city or province, said bank is prohibited from accepting deposits from said municipality city or province unless it is the only bank existing therein: Provided, That this provision shall not be construed as a grant of authority to such elective or appointive public official to act as director or officer of a private bank. SECTION 7. Definition of Terms . For purposes of these Guidelines, the following terms shall have the meaning indicated unless the contents clearly indicate otherwise: 1. The term "government-owned or controlled corporations" shall refer to government-owned or controlled corporations which are created by special laws. It shall exclude government financial institutions such as the Development Bank of the Philippines, Land Bank of the Philippines and Al-Amanah Islamic Investment Bank of the Philippines, corporations which are created corporation under the provisions of Act 1459, as amended, or the new Corporation Code and private corporations which are taken over by government-owned or controlled corporations. 2. The term "minimum working balances" represents the minimum amounts necessary to enable the government instrumentality/political unit making the deposit to transact business efficiently and effectively which shall be determined by the Department of Finance. SECTION 8. Application for authority . 1. An application for authority to accept government deposits shall be signed by the President of the bank and shall be filed with the appropriate supervising and examining department of the Bangko Sentral. The application shall be accompanied by a certification by the bank president or executive vice president that the bank has complied with all the requirements enumerated under Section 8. 2. Banks authorized to accept government funds as depository shall continuously comply with the conditions enumerated under Section 8 even after the authority to accept government deposits has been granted during the period while the banks actually hold government deposits, otherwise, any violations may be a basis for the imposition of sanctions against the bank, its directors and officers, or revocation of the authority to accept government deposits. dctai 3. Deposits maintained by the Government, its subdivisions and instrumentalities and Government-owned or controlled corporations shall be supported by the following documents whenever applicable: a. A copy of the resolution of the barangay, municipal or city council (Sangguniang Bayan/Panlungsod) or the provincial board (Sangguniang Panlalawigan) authorizing the deposit of municipal, city or provincial funds; b. A copy of the resolutions of the board of directors of the government-owned or controlled corporations authorizing the deposit of funds of said corporations; or c. In case of the National Government, its unincorporated branches, agencies and instrumentalities, a written authority to deposit government funds signed by the duly authorized official of the department, agency, office or unit making the deposit. The resolution or authority should state the name and location of the depository bank; type and terms of the deposit; and that the amount to be deposited represents working balances. cdt SECTION 9. Pre-requisites for the grant of authority to accept deposits from the Government and government entities . Private banks applying for authority to accept deposits from the Government, its subdivisions and instrumentalities and Government-owned or controlled corporations and Government banks applying for authority to accept Government deposits in excess of minimum working balances must comply with the following conditions: a. The bank, during the last sixty (60) days immediately preceding the date of application, has: 1. Not been deficient in its networth-to-risk assets ratio; and 2. Complied with the ceilings on credit accommodations to directors, officers stockholder and/or their related interests (DOSRI); b. It has complied with the minimum capital required under existing regulations; c. It had not incurred losses during the last six (6) months prior to the date of application; d. It had not incurred net weekly reserve deficiency against deposit liabilities and deposit substitutes during the last eight (8) weeks immediately preceding the date of application; e. It has complied with the loans-to-deposits ratio during the quarter immediately preceding the date of application. f. It has no float items outstanding for more than sixty (60) calendar days in the "Due From/To Head Office/Branches/Other Officer" accounts and the "Due from Bangko Sentral" account exceeding one percent (1%) of the total resources as of date of application; g. Its total past due loans does not exceed 20% of the total loan portfolio as of date of application; h. It has conducted its business in a safe and sound manner during the last six (6) months immediately preceding the date of application; i. It has corrected as off date of application the violations noted in its last examination related to (1) single borrower's loan limit; and (2) investment in bank premises and other fixed assets; j. The Bank's accounting records are satisfactorily maintained and adequate internal control measures are in place; k. It has no past due obligation with the Bangko Sentral or with any government financial institution; and l. It is a member of the Philippine Deposit Insurance Corporation in good standing. SECTION 10. Reports . Banks shall submit a quarterly report of their Government deposits from all sources in the aggregate in the form to be prescribed by the Bangko Sentral. The report shall be submitted to the appropriate department of the Supervision and Examination Sector of the Bangko Sentral within five (5) banking days after the end of every reference month. SECTION 11. Sanction s. Any violation of these regulations shall be a ground for the imposition of the following sanctions: 1. The deposit account with the Bangko Sentral of the bank concerned shall be debited by the Accounting Department of the Bangko Sentral in the amount of the unauthorized deposit or borrowing upon receipt of a report or notice from the appropriate supervising and examining department of the Bangko Sentral and the deposit account of a government bank with Bangko Sentral shall be credited for the same amount. A copy of said report or notice of the supervising and examining department shall be furnished each to the bank concerned and the government bank whose deposit account was credited. 2. The withdrawal of previously granted authority to accept government funds; 3. Without prejudice to the sanctions under Sections 35 of Republic Act No. 7653, the following administrative sanctions shall be imposed if any part of the certification as required in this regulation is found to be false or misleading; a. On the Bank Cancellation of the authority to accept government deposits if one has already been granted and/or disqualification to act as a government depository for not more than one (1) year. b. On the Certifying Officer A fine of P5,000 per day from the time the certification was made up to the time the certification was found to be false, for each application filed with the Bangko Sentral. SECTION 12. Nothing in this Circular shall be interpreted as amending or repealing any rules or regulations of the National Government in accordance with law on the placement and terms of placement of government cash balances. The existing provisions of the Manual of Regulations for Banks and Other Financial Intermediaries on liquidity floor and required reports remain in force and effect. This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation. FOR THE MONETARY BOARD: (SGD.) GABRIEL C. SINGSON Governor