OVERVIEW OF GOVERNMENT ACCOUNTING GOVERNMENT ACCOUNTING VS. BUSINESS ACCOUNTING Compared to the accounting of business entities, government accounting places greater emphasis on the following: a. Sources and utilization of government fund; and b. Responsibility, accountability and liability of entities entrusted with government funds and properties. RESPONSIBILITY, ACCOUNTABILITY AND LIABILITY OVER GOVERNMENT FUNDS AND PROPERTY a. Government resources must be utilized efficiently and effectively in accordance with the law. b. The head of a government agency is directly responsible in implementing this policy. c. All other personnel entrusted with the custody of the government resources are responsible to the head of the government agency, are accountable for the safeguarding thereof, and are liable for any losses. COMMISSION ON AUDIT Responsibilities of COA a. Promulgate accounting and auditing rules for government entities b. Keep the general accounts c. Submit financial reports DEPARTMENT OF BUDGET AND MANAGEMENT Responsibilities of DBM a. Implementation of the national budget (set the goals and prioritization of the budget) BUREAU OF TREASURY Responsibilities of BTr a. Cash custody and control of disbursements GOVERNMENT AGENCIES Responsibility of government agencies a. Maintain accounting books and budget registries which are reconciled with the cash records of the BTr and the budget records of the COA and DBM The GAM for NGAs a. The Government Accounting Manual for National Government Agencies (GAM for NGAs) is promulgated by the COA under the authority conferred to it by the Philippine Constitution b. The Gam for NGAs was promulgated to harmonize the government accounting standards with the International Public Sector Accounting Standards (IPSAS). The IPSASs are based on the IFRS. OBJECTIVE OF THE GAM FOR NGAs To update the following: a. Standards, policies, guidelines and procedures in accounting for government funds and property b. Coding structure and accounts; and c. Accounting books, registries, records, forms, reports and financial statements BASIC ACCOUNTING AND BUDGET REPORTING PRINCIPLES a. b. c. d. e. f. g. Compliance with PPSAS and relevant laws, rules and regulations Accrual basis of accounting Budget basis for presentation of budget information in the financial statements Revised Chart of Accounts Double entry bookkeeping Financial statements based on accounting and budgetary records Fund cluster accounting Fund Clusters: (Code/Fund Clusters) 01 – Regular Agency Fund 02 – Foreign Assisted Project Fund 03 – Special Account – Locally Funded/Domestic Grants Fund 04 – Special Account – Foreign Assisted/Foreign Grants Fund 05 – Internally Generated Funds 06 – Business Related Funds 07 – Trust Receipts QUALITATIVE CHARACTERISTICS a. b. c. d. e. f. g. h. i. Understandability Relevance Materiality Timeliness Reliability Faithful Representation Substance over Form Neutrality Prudence j. Completeness k. Comparability COMPONENTS OF GENERAL-PURPOSE FINANCIAL STATEMENTS a. b. c. d. e. f. Statement of Financial Position Statement of Financial Performance Statement of Changes in Net Assets/Equity Statement of Cash Flows Statement of Comparison of Budget and Actual Amounts; and Notes to the Financial Statements THE BUDGET PROCESS NATIONAL BUDGET (government budget) is the government’s estimate of the sources and uses of government funds within a fiscal year. This forms the basis for expenditures and is the government’s key instrument for promoting its socio-economic activities. Performance-Informed Budgeting (PIB) – National Expenditure Plan (NEP) and GAA 2014 will show the link between the fund allocated for government programs and the projected results and outcomes of these. The Budget Cycle 1. Budget Preparation a. Budget Call – issued by DBM. It includes next year fiscal year’s targets, agency’s budget ceiling and other guidelines in the completion and submission of agency budget proposal. b. Budget Hearings – Government agencies defend their budget before the technical panel of DBM and subject for review and recommendation. c. Presentation to the Office of the President – proposed budget is presented by DBM to the President and its cabinet members for further refinement. 2. Budget Legislation a. House Deliberations – c/o the House Appropriation Committee (composed of 129 members/representatives). End product is House version of General Appropriations Bill (GAB) b. Senate Deliberations – c/o Senate Finance Committee. End product is Senate version of General Appropriations Bill (GAB). c. Bicameral Deliberations – to harmonize the two GABs. d. President’s Enactment – President and DBM will review the GAB. End product is General Appropriations Act (GAA) The Approved Budget Appropriation – is the authorization made by a legislative body to allocate funds for purposes specified by the legislative or similar authority. The approved budget consists of the following: a. New General Appropriations – annual authorizations for incurring obligations, as listed in the GAA b. Continuing Appropriations – authorizations to support the incurrence of obligations beyond the budget year (e.g. multi-year construction projects) c. Supplemental Appropriations – additional appropriations to augment the original appropriations which proved to be insufficient d. Automatic Appropriations – authorizations programmed annually which do not require periodic action by Congress. e. Unprogrammed Appropriations – standby appropriations which may be availed only upon the occurrence of certain instances. f. Retained Income/Funds – collections which the agencies can use directly in their operations g. Revolving Funds – receipts from business-type activities of agencies which are authorized to be constituted as such. These are self-liquidating and all obligations and expenditures incurred by virtue of said business-type activity shall be charged against the fund. h. Trust Receipts – receipts by a government agency acting as agent. 3. Budget Execution a. Release Guidelines and BEDs – DBM will issue guidelines in the release and utilization of funds. Agency’s are required to submit their Budget Execution Documents (BED) as reporting requirements to the DBM every November 30 before that particular financial year. Budget Execution Documents: 1. Financial Plan 2. Physical Plan 3. Monthly Disbursement Plan 4. Annual Procurement Plan for common use supplies and equipment Major recipients of budget: I. NGAs II. LGUs III. GOCCs b. Allotment – DBM set limit for allotments issued to an agency on an aggregate preparing allotment release program which corresponds to the total amount of agency’s specific budget under the GAA. Allotment is an authorization issued by DBM to government agencies to incur obligations for a specific amount contain in the appropriations in a form of budget release document (ARP). c. Incurrence of Obligations d. Disbursement Authority – DBM issues disbursement authority. This is the point where the government agencies obtain access to government funds. I. II. III. IV. Notice of Cash Allocation (NCA) – authority issued by the DBM to central, regional and provincial offices and operating units to cover their cash requirements. The NCA specifies the maximum amount of cash that can be withdrawn from a government servicing bank in a certain period. Notice of Transfer of Allocation – authority issued by an agency’s Central Office to its regional and operating units to cover the latter’s cash requirements. Non-Cash Availment Authority – authority issued by the DBM to agencies to cover the liquidation of their actual obligations incurred against available allotments for availment of proceeds from loans/grants through supplier’s credit/constructive cash. Cash Disbursement Ceiling – authority issued by the DBM to agencies with foreign operations allowing them to use the income collected by their Foreign Service Posts to cover their operating requirements. 1. Appropriation – authorization by a legislative body to allocate funds for specific purposes. 2. Allotment – authorization to agencies to incur obligations (i.e. obligational authority) 3. Obligation – amount contracted by an authorized officer for which the government is held liable 4. Disbursement – actual amount paid out of the budgeted amount 4. Budget Accountability – this phase occurs concurrently with budget execution. Budget is regularly monitored to determine the conformance of actual results with planned target. Steps in Budget Accountability: a. Budget Accountability Reports – government agencies are required to submit the following accountability reports: i. Monthly Report of Disbursements ii. Quarterly Physical Report of Operations iii. Statement of Appropriation, Allotment, Obligation and Disbursement Balances iv. Summary of Appropriation, Allotment, Obligations, Disbursements Balances by Object of Expenditure v. vi. vii. viii. ix. List of Allotments and Sub-allotments Statement of Approved Budget Utilization, Disbursements and Balances Summary of Approved Budget Utilization, Disbursements and Balances by Object of Expenditure Quarterly Reports of Revenue and Other Receipts Aging of Due and Demandable Obligation Submission of Reports i – every month ii-viii – within 30 days after each quarter ix – submitted to COA within 30 days after each year b. Performance Reviews – done by COA and DBM. Performed the periodic reviews in agency’s performance and budget accountability and report to the President. c. Audit – COA audits the agency. GOVERNMENT ACCOUNTING PROCESS This process is similar to that of a business entity, except that it incorporates budgetary controls, such as recording in the budget registries and preparing periodic budget accountability reports. Books of Accounts and Registries 1. Journals a. b. c. d. General Journal Cash Receipt Journal Cash Disbursements Journal Check Disbursements Journal 2. Ledgers a. General Ledgers b. Subsidiary Ledgers 3. Registries (Budget Record. Maintained by Budget Division) a. Registries of Revenue and Other Receipts (RROR) – used to monitor the revenue and other receipts estimated or budgeted, collected and remitted/deposited to the National Government/Bureau of Treasury. b. Registry of Appropriations and Allotments (RAPAL) – used and monitor when there is appropriations and allotment movement. c. Registries of Allotments, Obligations and Disbursements (RAOD) – shows the allotment received for the year, obligations incurred, and the actual disbursement. d. Registries of Budget, Utilization and Disbursements (RBUD) – to record the approved special budget and the corresponding utilization of disbursement that is charged to Retained Earnings. Object of Expenditures 1. Personnel Services (PS) – pertain to all types of employee benefits. 2. Maintenance and Other Operating Expenses (MOOE) – pertain to various operating expenses other than employee benefits and financial expenses. 3. Financial Expenses (FE) – pertain to finance costs. 4. Capital Outlays (CO) – pertain to capitalizable expenditures Obligation Request Status – another form used by the government in terms of monitoring disbursements and budget a. Incurrence of obligations shall be made through the issuance of ORS b. Prepared by the requesting/originating office c. Head of the requesting/originating office shall certify as to the necessity and legality of charges to the budget under his/her supervision, and validity. BASIC TRANSACTIONS OF THE GOVERNMENT 1. Receipt of Appropriation Entity A receives its GAA consisting of the following: PS 100,000.00 MOOE 60,000.00 FE - CO 200,000.00 Total Appropriations for CY 2020 360,000.00 Registries and Other Records RAPAL Journal Entry None 2. Allotment Entity A receives its allotment from DBM consisting of the following: PS 90,000.00 MOOE 40,000.00 FE - CO 170,000.00 Total Allotments for CY 2020 300,000.00 Registries and Other Records RAPAL RAOD - PS RAOD - MOOE RAOD - CO Journal Entry None 3. Incurrence of Obligation Entity A enters into the following contracts: a. PS - Employment Contracts (Job Order) amounting to P70,000 b. MOOE - Purchase contract for office supplies worth P25,000 c. CO - Purchase contract for office equipment worth P160,000 Registries and Other Records RAOD - PS RAOD - MOOE RAOD - CO 3 ORS Journal Entry None Note: In government entity, obligation means an act of a duly authorized official which binds the government to the immediate or eventual payment of a sum of money. In business entity, another term for liability. Notice of Obligation Request and Status Adjustment (NORSA) - Use in adjusting obligations recorded in RAOD and ORS. The adjustment shall be affected through a positive entry (addition) or a negative entry (reduction). 4. Notice of Cash Allocation (NCA) – specifies the maximum amount of withdrawal that an entity can make from a government bank for the period indicated. Collecting officers shall not issue an Official Receipt (OR) for the receipt of NCA. Entity A receives NCA from the DBM amounting to P200,000, net of tax Registries and Other Records RANCA Journal Entry Cash - MDS Regular 200,000 Subsidy from National Government 200,000 Registry of Allotments and Notice of Cash Allocation (RANCA) – used to determine the amount of allotment not covered by NCA and to monitor the available balance of NCA. Registry of Allotment and Notice of Transfer of Allocation (RANTA) – used to determine the amount of allotments not covered by NTA and to monitor the available balance of NTA 5. Disbursement Employees have rendered services and are now entitled to compensation Set up of payable to officers and employees upon arrival of payroll Salaries and Wages Personal Economic Relief Allowance Gross Compensation Withholding Tax GSIS Pag-ibig Philhealth Total Deductions 35,000 5,000 40,000 -10,000 -2,000 -2,000 -1,000 -15,000 Net 25,000 Registries and Other Records Journal Entry ORS Salaries and Wages, Regular 35,000.00 RAOD - PS PERA Due to BIR Due to GSIS Due to Pag-ibig Due to Philhealth Due to Officers and Employees 5,000.00 Grant of cash payroll Registries and Other Records ORS Registries and Other Records Liquidation of 10,000.00 2,000.00 2,000.00 1,000.00 25,000.00 Journal Entry Advances for Payroll 25,000 CASH - MDS, Regular 25,000 Journal Entry Due to Officers/Employees 25,000 Advances for Payroll 25,000 Entity A remits the P15,000 withheld to the other government agencies Registries and Other Records ORS RAOD - PS Journal Entry Due to GSIS Due to Pag-ibig Due to Philhealth 2,000.00 2,000.00 1,000.00 advance for Payroll Fund Cash - MDS, Regular 5,000.00 TAX REMITTANCE ADVICE (TRA) - Agencies, constructive remittance of taxes withheld to the BIR or customs duties withheld to BOC, and the constructive receipt of NCA for those taxes and customs duties BIR/BOC, Constructive receipt of taxes revenue or custom duties BTr, Constructive receipt of the taxes and customs duties remitted. Remittance of the Withholding Taxes Registries and Other Records Journal Entry Cash - TRA 10,000.00 Subsidy from the National Government 10,000.00 To recognize the constructive receipt of NCA for TRA Due to BIR 10,000.00 Cash - TRA 10,000.00 To recognize the constructive remittance of taxes withheld to the BIR through TRA Books of BIR Cash - TRA 10,000.00 Income Tax 10,000.00 To recognize constructive receipt of taxes remitted by NGAs through TRA Books of BTR Subsidy to NGAs 10,000.00 Cash - TRA 10,000.00 To recognize constructive receipt of remittance of taxes by NGAs through TRA 6. Collection - PD 1445 requires all collections must be remitted to the National Treasury - Collection and Remittance are recorded in the Cash Receipts Journal Entity A bills revenue of P100,000 for rent income Entity collects Registries and Other Records None Accounts Receivable Rent/Lease Income Journal Entry 100,000.00 100,000.00 A P100,000 from the billed revenue and remits the collection to the BTr Registries and Other Records None Journal Entry Cash - Collecting Officers 100,000.00 Accounts Receivable 100,000.00 To recognize collection of billed income Cash - Treasury/Agent Deposit, Regular 100,000.00 Cash – CO To recognize remittance of income to BTr 100,000.00 Government entities are required to revert any unused NCA at the end of the accounting period. Cash - MDS, Regular Receipt NCA 200,000.00 25,000.00 Advance for payroll 5,000.00 Remittance to GSIS, Pag-ibig and Philhealth 170,000.00 end Registries and Other Records RANCA Journal Entry Subsidy from National Government 170,000.00 Cash - MDS, Regular 170,000.00 To recognize reversion of unused NCA Basic Recordings/Summary Transaction b. Allotment c. Incureence of Obligations d. NCA Recording in: Registries & Other Records RAPAL RAPAL and appropriate RAOD ORS and apprpriate RAOD RANCA e. Disbursements updating of ORS and appropriate RAOD a. Appropriation Journal & Ledger None None None Cash - MDS, Regular xx Subsidy from NG xx Expense/Asset xx Payable xx Payable xx Cash-MDS, Regular xx f. Tax Remittance Advice updating of ORS and appropriate RAOD (TRA is used for remittance of taxes withheld Cash - TRA xx Subsidy from NG xx Due to BIR xx Cash - TRA xx g. Billings, Collections and Remittances RROR, RCD/CRReg (not illustrated) Accounts Receivable xx Income xx Cash - CO xx Accounts Receivable xx h. Reversion of Unused NCA RANCA Cash-Treasury/Agency Deposit, Regular xx Cash - CO xx Subsidy from NG xx Cash-MDS, Regular xx Account Code in the RCA Government Accounting Cycle 1. Appropriation 2. Allotment 3. Incurrence of Obligation 4. Disbursement Authority - NCA 5. Disbursements 6. Billings, Collections and Remittances 7. Unadjusted Trial Balance 8. Adjusting Entries 9. Pre-closing Trial Balance 10. Closing Entries 11. Post-Closing Trial Balance 12. Preparation of Financial Statements Section 50 – Adjusting Journal Entries 1. Accrued Items 2. Deferred Items 3. Unused NCA 4. Petty Cash Fund 5. Unreleased Commercial Checks 6. Allowance for/Accumulated Impairment Losses of asset accounts 7. Write-down of inventories 8. Correction/Reclassification of Entries 9. Adjustment for Reversal of Impairment Losses 10. Depreciation Expense 11. Exchange Differences on Foreign Currency 12. Other Adjustments REVENUE AND OTHER RECEIPTS Revenue – gross inflow of economic benefits or service potential during the reporting period when those inflows result in and increase in equity, other than increases relating to contribution from owners. Received or receivable. Receipts – is the actual cash collections from all sources during a period. Fundamental Principles for Revenue All revenues accruing to an entity by virtue of the provisions of existing law orders and regulations shall be deposited/remitted in the National Treasury (NT) or in any duly authorized government depository and shall accrue to the General Fund (GF) of the NG. Except as may otherwise be specifically provided by law or competent authority, all moneys and property officially received by a public officer in any capacity or upon any occasion must be accounted for as government funds and government property. Amounts received in trust and from business-type activities of government may be separately recorded and disbursed in accordance with such rules and regulations. Receipts shall be recorded as revenue of special, fiduciary or trust funds or funds other than the GF, only when authorized by law as implemented by rules and regulations issued by the Permanent Committee. No payment of any nature shall be received by a collecting officer without immediately issuing an official receipt in acknowledgment thereof. Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash receipts, the COA may approve, upon request, exemption from the use of accountable forms. At no instance shall temporary receipts be issued to acknowledge the receipt of public funds. Pre-numbered ORs shall be issued in strict numerical sequence. All copies of each receipt shall be exact copies or carbon reproduction in all respects of the original. An officer charged with the collection of revenue or the receiving of moneys payable to the government in the form of checks issued in payment of government obligations, upon proper endorsement and identification of the payee or endorsee. At no instance should money in the hands of the CO be utilized for the purpose of cashing private checks. Under such rules and regulations as the COA and the Department of Finance (DOF) may prescribe, the Treasurer of the Philippines and all AGDB shall acknowledge receipt of all funds received by them, the acknowledgment bearing the date of actual remittance or deposit and indicating from whom and on what account it was received. Sources of Revenue of the Government Revenue may arise from exchange and non-exchange transactions: a. Exchange transaction – transactions in which one entity receives assets or services or has liabilities extinguished and directly gives approximately equal value to another entity in exchange. Examples: sale of goods and rendering of services b. Non-exchange transactions – these are transactions in which an entity either receives value from another entity without direct giving approximately equal value in exchange. Examples: tax revenue, fines and penalties, and donations. Sale of Goods Revenue from sale of goods shall be recognized when all of the following conditions are satisfied: a. Significant risks and rewards of ownership of goods are transferred to the buyer. b. The entity does not retain continuing managerial involvement or effective control over the goods sold c. It is probable that economic benefits will flow to the entity d. Revenue can be measured reliably; and e. Costs relating to the transaction can be measured reliably. Rendering of Services Revenue from rendering of services is recognized on a straight line basis over the contract term. However, revenue is recognized by reference to the stage of completion if the outcome of the transaction can be estimated reliably, such as when all of the following conditions are satisfied. a. b. c. d. The stage of completion can be measured reliably It is probable that economic benefits will flow to the entity Revenue can be measured reliably Costs relating to the transaction can be measured reliably When the outcome cannot be estimated reliably, revenue is recognized only to the extent of recoverable cost. Interest, Royalties and Dividends a. Interest is recognized on a time proportion basis that takes into account the effective yield of asset b. Royalties is recognized as they are earned in accordance with the substance of the relevant agreement c. Dividends are recognized when the entity’s right to receive payment is established. Measurement of Revenue from Exchange Transactions a. Revenue from exchange transactions are measured at fair value of the consideration received or receivable. b. Any trade discounts and volume rebates shall be taken into account. c. When cash flows are deferred, the fair value of the consideration is the present value of the consideration receivable. Example: Entity A is authorized to print accounting manuals for sale to other NGAs. Assume that on July 6, 2020, Entity A sold accounting manuals on account with a list price of P100,000 less trade discounts of 10%, 10% and 5%. The invoice price of the merchandise is computed as follows List Price Less: 10% x 100,000 Less:10% x 90,000 Less: 5% x 81,000 100,000.00 10,000.00 90,000.00 9,000.00 81,000.00 4,050.00 Total 76,950.00 The journal entry shall be as follows: Account Title Accounts Receivable Sales Revenue Account Code 10301010 40202160 76,950.00 76,950.00 Example: Assume that on August 5, 2020 , Entity A received a 60-day, 9%, P12,000 promissory note from X entity for accounting manuals sold. On October 4, 2020, Entity X paid cash in settlement of its note. The accounting entries should be as follows Account Title Account Code Aug-05 Notes Receivable Sales Revenue To recognize the sale 10301020 40202160 Oct-04 Cash - Collecting Officers 10101010 Notes Receivable 10301020 Interest Income 40202210 To recognize the collection of notes receivable Debit Credit 12,000.00 12,000.00 12,180.00 12,000.00 180.00 Interest = P12,000 x 9% x 60/360 = P180 Exchanges of Goods and Services Similar – no revenue is recognized Dissimilar – revenue is recognized, measured using the following order of priority: Fair value of the goods or services received, adjusted by the amount of any cash transferred. Fair value of the goods or services given up, adjusted by the amount of any cash transferred. Non-exchange Transactions Revenue from non-exchange transactions are derived mostly from taxes, fines and penalties, gifts, donations and goods in kind. Tax Revenue Type of Tax Income Tax Value Added Tax Goods and Service Tax Customs Duty Death duty Property Tax Taxable Event Earning of Taxable Income Undertaking of a taxable activity Purchase or sale of taxable goods or services Movement of dutiable goods or services across the customs boundary Death of the owner of the taxable property Passage of the time period for which the tax is levied Gifts, Donations and Goods in-Kind Recognized as revenue measured at fair value when it is probable that future economic benefits will flow to the entity. If without condition, recognized immediately as revenue. If with condition, initially recognized as liability and recognized as revenue only when the condition is satisfied. Others Services in Kind – not recognized as revenue Debt Forgiveness – carrying amount of debt forgiven is recognized as revenue Bequests – (transfers made according to the provision of a deceased person’s will) recognized as revenue measured at fair value, if asset recognition criteria are met. Grant with Condition – initially recognized as liability until condition is satisfied Pledges – (unenforceable promises to give) not recognized as revenue Concessionary Loans – (loans w/ below market rate) difference between fair value and transaction price is recognized as revenue, if non-exchange transaction. Impairment Losses and Allowance for Impairment Losses When an amount already recognized as revenue becomes uncollectible, it is recognized as expense (i.e. impairment loss) rather than as an adjustment to the revenue originally recognized. Other Receipts Subsidy from NG and other NGAs Receipts from: a. excess cash advance b. overpayment of expenses c. performance bonds and security deposits d. collections on behalf of other entities; and e. inter or intra-agency fund transfers Recognized as revenue from assistance and subsidy Not recognized as revenue Receipt of NCA Account Title Account Code Regular Cash - Modified Disbursement System (MDS) - Regular Subsidy from Nat'l Government To recognize receipt of NCA for Regular Agency Fund 10104040 40301010 Special Account Cash - Modified Disbursement System (MDS) - Special Account 10104050 Cash-Treasury Agency Deposit, Special Account 10104020 To recognize receipt of NCA for Special Account in the General Fund Cash - Modified Disbursement System (MDS) - Trust 10104060 Cash-Treasury Agency Deposit, Trust 10104030 To recognize the receipt of NCA for Trust Receipt Fund Debit Credit 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 Receipt of NCAA Account Title Accounts Payable Subsidy from Nat'l Government To recognize the receipt of NCAA Account Code 20101010 40301010 Debit Credit 950,000.00 950,000.00 Receipt of CDC Account Title Cash - Collecting Officers Passport and Visa Fees To recognize collection of revenue of FSPs Account Code 10101010 40201120 Debit 100,000.00 100,000.00 Cash in Bank-Foreign Currency, Current Account 10103020 100,000.00 Cash - Collecting Officers 10101010 To recognize deposit of collections to authorized servicing bank of FSPs Cash-Constructive Income Remittance Subsidy from Nat'l Government To recognize receipt of CDC from DBM Quarters Allowance - Civilian Rents - Buildings and Structures Cash in Bank- Foreign Currency Current Account To record payment of expenses charged to CDC Credit 10104080 40301010 80,000.00 50102070 50299050 50,000.00 30,000.00 100,000.00 80,000.00 10103020 80,000.00 2. BTr Books Account Title Account Code Debit Credit Subsidy to NGAs 50214010 80,000.00 Cash- Constructive Income Remittance 10104080 80,000.00 To recognize constructive receipt of remitted collections by FSPs and disbursements charged to the issued CDCs to FSPs Receipt of Subsidy/Assistance from other NGAs, LGUs, GOCCs and Other Funds The collecting Officer shall issue OR upon receipt of cash subsidy/assistance. Account Title Cash - Collecting Officers Subsidy from other NGAs Account Code 10101010 40301020 Debit 100,000.00 Credit 50,000.00 Assistance from LGUs 40301030 Assistance from GOCCs 40301040 To recognize receipt of subsidy/assistance from other government agencies Cash-Treasury/Agency Deposit, Trust Cash-Collecting Officers To recognize remittance of collections to BTR 10104030 10101010 25,000.00 25,000.00 100,000.00 100,000.00 Dishonored Checks a. Collections remitted to BTr Account Title Account Code Debit 1. Cancellation of OR due to Dishonored Checks Other Receivables 10305990 xxx Cash-Treasury/Agency Deposit, Regular 10104010 To recognize the cancellation of current year's deposited collections due to dishonored checks Other Receivables 10305990 Accumulated Surplus/(Deficit) 30101010 To recognize the cancellation of prior year's deposited collections due to dishonored checks 2. Redemption of Dishonored Check Cash - Collecting Officers Other Receivables To recognize replacement of dishonored check 10101010 10305990 Credit xxxx xxx xxx xxx xxx Cash-Treasury/Agency Deposit, Regular 10104010 Cash - Collecting Officers 10101010 To recognize the remittance of the replacement of dishonored check xxx xxx Cash Overage/Shortage of Collecting Officer a. Cash Overage Account Title Account Code Cash - Collecting Officers 10101010 Miscellaneous Income 40609990 To recognize forfeiture of cash overage of the Collecting Officer Debit Credit xxx xxx Cash-Treasury/Agency Deposit, Regular 10104010 Cash - Collecting Officers 10101010 To recognize the remittance of forfeited cash overage to the BTr a. Cash Shortage Account Title Account Code Due from Officers and Employees 10305020 Cash - Collecting Officers 10101010 To recognize cash shortage of Collecting Officer Cash - Collecting Officers Due from Officers and Employees To recognize restitution of cash shortage xxx xxx Debit Credit xxx xxx 10101010 10305020 xxx Cash-Treasury/Agency Deposit, Regular 10104010 Cash - Collecting Officers 10101010 To recognize the remittance of restituted cash shortage to BTr xxx xxx xxx