To define the receipts and collections / disbursement

The collection and disbursement system

To determine the laws and regulations Cash Receipt and Collections Disbursement

Receipt refers to all cash inflow whether actual or constructive regardless of source or purpose and whether pertaining to the agency or not.

It includes not only income or revenue actually collected but also trust receipts, fund deposits, inter-fund and inter agency transfers and equity contributions received by corporate agencies (COA Memo 84-411).

Subsidy income from the National Government

Subsidy from the central officeSubsidy from Regional office/Staff

Bureau Income from Government Service Income from Grants and DonationsRefund of Cash AdvancePerformance Bidders/Bail BondsCollections made on behalf of

another agencies Inter-agency transferred funds

RECORD CASH RECEIPT RECORDS

BOOKS OF ACCOUNT CASH RECEIPT JOURNAL CASH JOURNAL GENERAL LEDGER SUBSIDIARY LEDGER

REPORT REPORT OF COLLECTION AND DEPOSITS REPORT ON ACCOUNTABLE FORMS

All moneys and property officially received by a public officer in any capacity or upon any occasion must be accounted for as government fund and government property

No payment of any nature shall be received by a collecting officer with out immediately issuing an OR in acknowledgement thereof.

Official Receipt are designed to cover a particular kind of collection only and at no instance shall temporary receipt be issued to acknowledge receipt of public funds.

Pre-numbered Official Receipts shall be issued in strict numerical sequence. All copies of each receipt shall be exact copies or carbon reproduction in all aspect of the original

At no instance should money in the hands of the collecting officers be utilized for the purpose of en-cashing private checks.

The collecting officer should be familiar with the laws and regulations affecting his work. He should not have access to or responsibility over the accounting records related cash.

Adequate records should be maintained and reports regularly submitted

Reconciliation of banking transaction should be done by persons other than those responsible for the handling of cash received and deposited

Control over cash, including remittances through mails, should be established immediately once received, acknowledge with pre-numbered official receipts and recorded promptly

Monthly report of accountability for the accountable forms should be prepared and submitted by all accountable officers

No disbursement should be made from cash receipt unless specifically authorized

Cash receipt should be deposited intact daily

Safes and other facilities should be provided to ensure protection of cash and unused accountable forms

Surprise cash examinations should be made frequently by internal and external auditors.

The collecting officer as well as his assistant should be adequately bonded.

RECORD

Cash Disbursement Records Check Disbursement Records

BOOKS OF ACCOUNT

Check Disbursement Journal Cash Disbursement Journal General Ledger Subsidiary Ledger

REPORT

Report of Checks Issued Report of Disbursement Petty Cash Replenishment Report Liquidation Report

Basic Requirements Applicable to all Types of Disbursements

Certificate of availability of fund Approval of claim or expenditure by head

of office or his duly authorized representative

Submission of documents and other evidences to establish the validity and correctness of the claim for payment

Conformity of the expenditure to existing laws and regulations

Proper accounting treatment

Only permanently appointed officials and employees shall be granted cash advances

Only duly appointed or designated disbursing officer may perform disbursing functions.

Only one disbursing officer shall be assigned / designated for a specific legal purpose.

Transfer of cash advance from one accountable officer to another shall not be allowed

The cash advance shall be used for the specific legal purpose for which it was granted.

No additional cash advance shall be allowed to any official or employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made.

No cash advance shall be given unless for a legally authorized specific purpose. A cash advance shall be reported on and liquidated as soon as the purpose for which it was given has been served.

Cash advances granted for travel shall be accounted for as “Due to Officers and Employees” which are subject to liquidation upon travel completion.

When a cash advance is no longer needed or has not been used for a period of two months, the same should be returned to, or deposited immediately with the collecting officer

The AO shall liquidate his/her cash advance as follows:

Salaries, wages, etc. – within 5 days after each 15 day/end of the month pay period

Petty Cash Fund – 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

Local travel – immediately upon completion of the official travel

All cash advances shall be fully liquidated at the end of each year

When no liquidation of the previous cash advance is received on or before January 20, the Accountant shall cause the withholding of the AO’s salary (COA Cir. 97-002)

No officer or employee shall be granted a cash advance unless he/she is properly bonded in accordance with law

Every official or employee authorized to travel abroad shall render an account of the cash advances received by him within sixty (60) days after his return to the Philippines

The disbursing officer (DO) should be familiar with the laws and regulations affecting his work. He should not have access to or responsibility over the accounting records related to disbursement.

Adequate records should be maintained and reports regularly submitted

Officers authorized to sign checks should have no authority over the accounting records or the custody of cash

Checks should be countersigned, the signing and countersigning of checks should not be made in advance

Vouchers should be approved by one or more individuals other than the disbursing officer

Vouchers and supporting papers should be stamped “PAID” upon payment

The disbursing officer as well as his/her assistants, should be bonded with the Fidelity Bond Division of BTR