Bureau of Local Government Finance Opinion

April 30, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the OIC-Regional Director, Bureau of Local Government Finance, Department of Finance, CARAGA Administrative Region, Baladad Compound, J.C. Aquino Avenue, Libertad, Butuan City, his preceding 1st Indorsement dated July 4, 2011, forwarding the letter dated June 30, 2011, of OIC-Provincial Treasurer Alvin G. Elorde of Agusan del Sur, requesting for comments on his proposal for computer generated Cash Books for said province. In this connection, that level should take note of the provisions of Chapter 2, Section 04 (e), Volume I and Chapter I, Sections 26, 27 and 28, Volume II of the Manual on the New Government Accounting System (NGAS) of the Local Government Units (LGUs), which state: "Sec. 04. Basic Features and Policies . . . .: "(e). Books of Accounts. The Books of Accounts are as follows: Journals Cash Receipts Journal Cash Disbursement Journal Check Disbursement Journal General Journal Ledgers General Ledger Subsidiary Ledger xxx xxx xxx. "However, treasurers and disbursing officers shall also maintain their respective cash records such as: DCESaI Cash Book Cash in Treasury Cashbook Cash in Bank Cashbook Cash Advances The Treasurers/Collectors shall prepare the Report of Collections and Deposits (RCD) daily and Report of Accountability for Accountable Forms (RAAF) monthly." "Sec. 26. Cashbook Cash in Treasury. Cash Book for Cash in Treasury shall be used to record collections . . . . The cashbook shall be maintained by the Treasurer by fund and shall be updated and balanced daily. . . . "Sec. 27. Cashbook Cashbook for Cash in Bank . Cashbook for Cash in Bank shall be used to record deposits of collections and withdrawals from the bank thru the issuance of checks. . . . . "Sec. 28. Cashbook Cash Advances . The accountable officer shall maintain a cashbook for cash advances received and payments, refunds and adjustments and the balance. . . . ." Accordingly, treasurers and disbursing officers are required to maintain daily, the manually generated Cash Books as prescribed by the Commission on Audit (COA) to ensure proper accounting of all financial transactions for audit examination purposes. However, the Office of the Provincial Treasurer of Agusan del Sur is not precluded from maintaining computer generated Cash Books aside from the manually generated Cash Books as prescribed by COA. Such computer generated Cash Books could be utilized for immediate reference on the daily cash balances of the province, provided, reconciliation of both the manually and computer generated Cash Books be regularly conducted to avoid discrepancies, and in case of conflict, the manually generated Cash Book prescribed by COA shall prevail. Be guided accordingly. EDcIAC (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director