Amendment to MC No. 28 Series of 2005 on Guidelines on Monetary Valuation of Foreign and Local Donations for Disaster Relief and Rehabilitation

December 17, 2007

DSWD MEMORANDUM CIRCULAR NO. 010-07

 

Section 5.4. of M.C. No. 28 series of 2005 on Methods/Basis for Valuation of Donations prescribed the procedures in booking/recording of donations in-kind received in the books of accounts of the Department. It provides that the monetized value of such donations be recorded in the DSWD books. In the case of inventories, the International Accounting Standards provides that Property, Plant and Equipment (PPE) should be booked at valuation cost including value added cost that are incidental in receiving, hauling and delivery of such PPE. According to COA, however, the same treatment cannot be adopted to donations in-kind received by DSWD. The COA though agrees that for purposes of reporting to management and stakeholders, it is necessary that all costs incurred in the hauling of donations in-kind be accounted from acceptance to disposal.

In view of this, a separate ledger shall be maintained for every donation received, which shall account for the cost of donations both the direct cost attributed to it and the value added cost. A management report in the form Monetization Report of Donation Received in-Kind and Other Related Expenses Incurred (Annex B) shall be prepared and submitted to the Secretary by the Financial Management Service (FMS) which shall disclose all costs and other information related to the donations. HTcADC

The report incorporating all expenses incurred in the receipt of donation is for financial information only not for booking or recording purposes. These expenses include duties and taxes, license fees, permit fees, freight/transportation, handling and hauling and personnel and other administrative expenses, among others.

On this, Sections 7 and 8 of M.C. No. 28 series of 2005 are hereby amended to read as follows:

7. REPORTING

xxx xxx xxx

7.3 The Statement of Expenses Incurred for Donations Received in-Kind (Annex A) per donor shall be submitted by the Administrative Service/Management Division to the Accounting Division/Unit within ten (10) days upon receipt of Monetary Valuation Report in-Kind from the Committee on Monetary Valuation.

7.4 The FMS-Accounting Division/Unit shall prepare and submit Monetization Report of Donation Received in-Kind and Other Related Expenses Incurred (Annex B) to the Office of the Secretary/Office of the Regional Director.

8. RECORDING

Annexes C-1 and C-2 provide for the accounting journal entries for the receipt, transfer and distribution of donations received in-kind both in Central Office and Field Offices Books of Accounts.

Issued at Quezon City, this 17th day of December 2007.

(SGD.) ESPERANZA I. CABRALSecretary

ANNEX A

Department of Social Welfare and Development

Report No. of Committee on Monetary Valuation:

NAME OF DONOR:

ADDRESS:

GOODS RECEIVED:

VALUE OF GOODS:

DATE RECEIVED: 

PARTICULARS	PAYMENTS	Amount
Thru Check	Thru Cash Advance (CA)
Check Number	Date of Check	Check No. of CA	Date of Check
A. Bureau of Customs:
Duties and Taxes
Sub-total
B. Port Charges:
Bill of Lading Fee
Terminal Fee
Handling Fee
Arrastre
Documentation, Turn over Fee
Manifest Fee
Sub-total
C. Shipping Lines Charges:
Storage Fee
Demurrage Charges
Wharfage
Container Deposit
Sub-total
D. Forwarders/Trucking Services:
Transportation Expenses
Sub-total
E. Other Administrative Charges
Cost of Personnel Services (Estimates)
Gasoline and Oil
Toll Fees
Photocopy Expenses
Notarial Fees
Telephone Calls
Fax Services
Transportation Expenses
Meals and Snacks (Staff in Charge)
Others
Sub-total
TOTAL DSWD OVERHEAD EXPENSES	P

 

Prepared by:	Certified by:
	Admin Officer		Director, AS

 

 

ANNEX B

Department of Social Welfare and DevelopmentMonetization Report on Donation Received in-Kind

JEV NO. & REFERENCE NO.	DATE	DONOR	ITEMS/DESCRIPTION	TOTAL MONETIZED VALUE	TOTAL RELATED COST PER ANNEX A	REMARKS

 

Prepared by:		Certified by:		Noted by:
	Accountant II		Chief Accountant	Director, FMS

 

 

ANNEX C-1

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENTReceipt, Transfer and Distribution of Donation Received in-Kind

CENTRAL OFFICE BOOKS
Particulars	Account Title	Account Code	Debit	Credit
1. Receipt of Donations in kind from outside sources	Other Supplies Inventory	165	XX
(used clothing, medicines and equipment, etc.)
	Appropriate PPE account	X	XX
	Income from Grants and Donations	662		XX
2. Transfer of donations to DSWD Field Offices	Subsidy to Field Offices	872	XX
Other Supplies Inventory	165		XX
Supplies
Subsidy to Field Offices	872	XX
Accumulated Depreciation (if any)	x	XX
Appropriate PPE account Equipment
	x		XX
3. Transfer of donated equipments direct to LGUs by way of Deed of Donation	Income from Grants and Donations
Appropriate PPE account	662	XX
	x		XX
4. Distribution of supplies to beneficiaries	Other Supplies Expenses	765	XX
Other Supplies Inventory	165	XX
5. Payment to Bureau of Customs, Port and Shipping Lines charges
Duties and Taxes
Bill of Lading fee	Storage Expenses	785	XX
Handling Fee	Transportation and Delivery Expenses	784	XX
Arrastre	Taxes, duties and Licenses
Documentation, Turn-over fee	Cash, NT-MDS or	891	XX
Other charges to file import	Cash, LCCA	108		XX
entry at the BOC		111		XX
Storage fee
Wharfage
Container Deposit
Detention charges
6. Payment of administrative and other related expenses including but not limited to the following:
Photocopy expenses	Telephone Expenses	772	XX
Notarial fees	Travelling Expenses	751	XX
Telephone calls	Gasoline, Oil and Lubricants Expenses	761	XX
Fax services	Other Maintenance and Operating Expenses
Transportation expenses	Cash, NT-MDS or	969	XX
Gasoline expenses	Cash, LCCA
Meals and Snacks		108		XX
		111		XX

ANNEX C-2

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENTReceipt, Transfer and Distribution of Donation Received in-Kind

CENTRAL OFFICE BOOKS
Particulars	Account Title	Account Code	Debit	Credit
1. Receipt of Donations in kind from outside sources	Other Supplies Inventory	165	XX
(used clothing, medicines and equipment, etc.)
	Appropriate PPE account	X	XX
	Income from Grants and Donations	662		XX
2. Receipt of donations from Central Office	Other Supplies Inventory	165	XX
Subsidy from Central Office	163		XX
Supplies
Appropriate PPE account	x	XX
Subsidy from Central Office	653		XX
Accumulated Depreciation (if any)	x		XX
Equipment
3. Distribution to beneficiaries either received from CO or outside sources
Other Supplies Expenses	765	XX
Other Supplies Inventory	165		XX
4. Payment to Bureau of Customs, Port and Shipping Lines charges (if applicable)
Duties and Taxes	Storage Expenses	785	XX
Bill of Lading fee	Transportation and Delivery Expenses	784	XX
Handling Fee	Taxes, duties and Licenses	891	XX
Arrastre	Cash, NT-MDS or
fee	Cash, LCCA	108		XX
Other charges to file import		111		XX
entry at the BOC
Storage fee
Wharfage
Container Deposit
Detention charges
5. Payment of administrative and other related expenses including but not limited to the following (if applicable):
Photocopy expenses
Notarial fees	Telephone Expenses	772	XX
Transportation expenses	Travelling Expenses	751	XX
Meals and Snacks	Gasoline, Oil and Lubricants Expenses	761	XX
Gasoline Expenses	Other Maintenance and Operating Expenses
	Cash, NT-MDS or	969	XX	XX
	Cash, LCCA			XX
		108
		111