Creation of Accounting Branches and Designation of Special Disbursing Officers in Regional Districts

November 19, 1963 REVENUE MEMORANDUM ORDER NO. 53-63 SUBJECT : Creation of Accounting Branches and Designation of Special Disbursing Officers in Regional Districts I PURPOSE : This Order is in line with the President's program, being implemented by the Bureau's Management Improvement Program, to rid the government of administrative roadblocks for the promotion of operational efficiency. Waste of time, effort and money has been observed in the current set-up of approving, processing and paying travel expense vouchers and general vouchers for recurring expenses in the National Office. The decentralization of some accounting and disbursing functions within practicable limits is expected to reduce "red tape". II GENERAL PROVISIONS : A. Accounting Branch In conformity to Republic Act No. 3845 (General Appropriation Act, 1963-64) there shall be created in each regional district an Accounting Branch which shall function under the administrative supervision of the Regional Director. It shall be headed by a Supervising Accounting Clerk. The branch shall have the following authority and responsibilities subject to existing accounting and auditing rules and regulations: 1. To process traveling expense vouchers, general vouchers and payrolls as covered by the provisions of Revenue Memorandum Order No. 52-63 dated November 19, 1963, entitled "Approval, Processing and Payment of Traveling Expense Vouchers, General Vouchers for Recurring Expenses and Payrolls or Salary Vouchers of Emergency or Casual Employees". This function shall include among others: a. Recording of the vouchers for control purposes; b. Check of the entries and supporting documents for accuracy, propriety, and legality; c. Classification and journalization of charges; d. Entering into individual index cards the amounts involved; and e. Certification as to availability of funds. 2. To maintain basic accounting records and books of accounts for purposes of control and to reflect accurately and currently the status of accounts in the regional districts; 3. To prepare reports and statements as required by accounting rules and regulations or as may be required by the Accounting Division for purposes of control. 4. To consolidate collection reports by collection agents (Form No. 12.31) and by administrative schedules (Form No. 12.01); keep individual ledger cards and such other necessary records for controlling the collection activities within the regional district; and to forward consolidated reports together with necessary supporting papers to the Accounting Division, National Office. 5. To perform such other tasks as may be assigned to the unit. B. Special Disbursing Officer In conformity to Memorandum Order No. 33-63 dated July 19, 1963, the Chief of the Administrative Branch in each regional district shall be designated as Special Disbursing Officer. Each Special Disbursing Officer shall be assisted by one employee from the Collection Branch who shall be given orders for such assignment by the Commissioner of Internal Revenue. The disbursing function shall be performed by the Chief of the Administrative Branch in addition to his regular duties until such time as appropriate positions shall be available. Every Special Disbursing Officer shall be bonded. He shall be given an initial cash advance by treasury warrant in the amount of five thousand pesos (P5,000.00) which he shall deposit in a local branch of the Philippine National Bank. In the absence of a local PNB Branch, he shall make deposits in any other bank subject to prior approval of the Commissioner of Internal Revenue. The amount deposited by the Special Disbursing Officer becomes his checking account. All his disbursements will be made thru pre-numbered cheques, except when the amount of a claim is less than five pesos (P5.00) for which he shall pay cash from his petty cash fund. His petty cash fund shall not be more than fifty pesos (P50.00) at any given time and this he shall be allowed to draw from his checking account. The Special Disbursing Officer shall request replenishment of his cash advance as often as necessary subject to availability of funds. He shall see to it that when his records show that the balance of his deposits with the bank is about one-fourth of his initial cash advance, he shall submit to the Accounting Division, National Office, his request for replenishment of cash advances. Replenishment of cash advances shall be based on actual disbursement as evidenced by paid payrolls and vouchers. All cheques issued by the Special Disbursing Officer will require the countersignature of the Regional Director or his duly authorized representative. The Special Disbursing Officer shall submit to the Accounting Division, National Office, such periodic reports on disbursement and financial status as are required by accounting and auditing rules and regulations. C. Accounting Division The Accounting Division, National Office, shall exercise technical supervision over all Accounting Branches and shall be responsible for developing and establishing accounting control techniques and procedures as are necessary to effect efficiency and proper coordination. D. Budget Division In order to insure a strong central leadership and control, it shall be the responsibility of the Budget Division, National Office, to devise a scheme for the distribution of funds by expense heading for every regional district for the guidance of Accounting Branches in the processing of vouchers and of the Special Disbursing Officers in the disbursing of funds. The expense distribution scheme shall be planned on the monthly basis and shall be subject to the approval of the Commissioner of Internal Revenue. In the event that funds assigned for certain expenses are found inadequate, the Budget Division shall recommend to the Commissioner of Internal Revenue the re-alignment and/or increase of the funds. Upon approval by the Commissioner of Internal Revenue, the Budget Division shall immediately notify the Accounting Branches and Special Disbursing Officers concerned thru the Accounting Division of the changes made. III IMPLEMENTING CLAUSE : The development of details of this Order and the schedule for implementation of the provisions herein set forth shall go hand-in-hand with the implementation and installation of the functions, authority and responsibility under Revenue Memorandum Order No. 52-63 dated November 19, 1963 entitled "Approval, Processing and Payment of Traveling Expense Vouchers, General Vouchers for Recurring Expenses, and Payrolls or Salary Vouchers of Emergency or Casual Employees in Regional Districts". The responsibility for installation and preparation of details shall be the same as provided in the abovementioned Order. LLjur IV RESCINDING CLAUSE : All provisions of orders and instructions in conflict with this Order are hereby superseded or modified. (SGD.) RAMON T. OBEN Acting Commissioner of Internal Revenue