SIMPLIFIED
ACCOUNTING for
SCHOOL HEADS OF
NON-IMPLEMENTING
UNITS/SCHOOLS
RATIONALE
• Division Offices and other
sources of funds are unable to
provide
funds
to
nonimplementing units/schools due
to absence of specific guidelines
and procedures in the receipt,
utilization,
recording
and
accounting for such funds.
PURPOSE
a. For use of school heads of nonimplementing
units/schools
to
record, account for and liquidate
cash advance and other cash
transfers by the division offices
and other sources using the
simplified accounting procedures
b. Assist the accountable
officer in the preparation
of liquidation reports,
which will facilitate the
recording
of
disbursements
in
the
division office’ books of
accounts.
COURSE OUTLINE
I.
Introduction
•
•
Definition
Scope
II. Government Accounting
III. L A R G E
IV. Documentation
V. Simple Bookkeeping
VI. Liquidation Report
VII. Users of Report
INTRODUCTION
ACCOUNTING
• Definition 1 –
– is a service activity. Its function
is
to
provide
quantitative
information, primarily financial in
nature, about economic entities,
that is intended to useful in
making economic decision.
–
Accounting Standards Council
ACCOUNTING
Definition 2 –
Accounting is the art of recording,
classifying and summarizing in a
significant manner and in terms of
money, transactions and events which
are in part at least of a financial
character and interpreting the
results thereof.
--
Committee on Accounting Terminology of the AICPA
ACCOUNTING
Definition 3 –
Accounting is the process of
identifying,
measuring
and
communicating
economic
information to permit informed
judgment and decision by users of
the information.
American Accounting Association in its Statement of Basic Accounting Theory
SCOPE OF
ACTIVITIES
• IDENTIFYING
• MEASURING
• COMMUNICATING
SCOPE OF ACTIVITIES
• Identifying
means
the
recognition
or
nonrecognition of “accountable”
events/ transactions
SCOPE OF ACTIVITIES
• Measuring means determining the
monetary amounts at which the
elements
of
the
financial
statements are to be recognized
and carried in the balance sheet
and income statement.
• Philippine Peso is the unit of
measurement.
SCOPE OF ACTIVITIES
• Communicating is the process
preparing
and
distributing
accounting reports to potential
users of accounting reports.
• Implicit in the communication
process are the recording,
classifying
and
summarizing
aspects of accounting
SCOPE OF ACTIVITIES
• Recording is the process of
systematically maintaining
a record of all economic
transactions after they have
been
identified
and
measured.
SCOPE OF ACTIVITIES
• Classifying is the sorting
or grouping of similar and
interrelated transactions
into their respective class
or object of expenditure.
SCOPE OF ACTIVITIES
• Summarizing
is
the
preparation of financial
reports.
GOVERNMENT
ACCOUNTING
GOVERNMENT ACCOUNTING
-
encompasses the process of
analyzing,
classifying,
summarizing
and
communicating all transaction
involving the receipt and
disposition of government
funds and property, and
interpreting
the
results
thereof.
GOVERNMENT ACCOUNTING
The focus of government
accounting is the custody
and
administration
of
public funds.
Authorized amount
Authorized person
How, what, where, and when to
use the funds in custody
Laws, and Rules in
Government
Expenditures
• PD 1445
• COA-GAFMIS Circulars
• DBM (Budget) Circulars
• DepEd-DBM Joint Circular
#2004-01
• DepEd Order 19 s. 2008
– Downloading of MOOE
COA-GAFMIS Circulars
90-331 dtd May 3, 1990 – rules and
regulations
on
the
granting,
utilization and liquidation of Cash
Advances
97-002 dtd Feb. 10, 1997 –
restatement with amendments on the
rules and regulations on the granting,
utilization of cash advance
COA CIR #97-002 dtd Feb 10, 1997
General Guidelines:
1. NO CASH ADVANCE shall be
given unless for a legally specific
purpose.
2. NO ADDITIONAL cash advances
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.
COA CIR #97-002 dtd Feb 10, 1997
3. A
cash
advance
shall
be
REPORTED on as soon as the
purpose for which it was given has
been served.
4. Only
PERMANENTLY
APPOINTED OFFICIALS shall be
designated as disbursing officers.
...
COA CIR #97-002 dtd Feb 10, 1997
5. Only duly appointed or designated
disbursing officers may PERFORM
disbursing functions. . . .
6. TRANSFER of cash advance from
one accountable Officer to
another shall not be allowed
7. The Cash advance shall be used
solely for the specific legal
purpose for which it was granted.
COA CIR #97-002 dtd Feb 10, 1997
8. Under no circumstance shall be it
be used for encashment of checks
or for liquidation of a previous
cash advance.
9. The accountant shall obligate all
cash advances granted. He shall
see that cash advances for a
particular year are not used to
pay expenses of other years.
COA CIR #97-002 dtd Feb 10, 1997
 Bonding Requirement:
1. Appointment and/or designation
as accountable officer
2. Written character references by
at least three officials of the
agency, one of whom is the
administrative
and/or
legal
officer, other than the official
who appointed/designated him
COA CIR #97-002 dtd Feb 10, 1997
 Bonding Requirement
3. Statement of Assets and
Liabilities as of the end of
the preceding year.
 The foregoing documents shall
be submitted, together with
the application for bond to the
fidelity bond division of the
Bureau of the Treasury.
COA-GAFMIS Circulars
2006-005 dtd July 13, 2006 –
amendment to the rules and
regulations on the granting,
utilization and liquidation of cash
advances
P5,000. and less, cash accountability,
AO need not be bonded
Bonding of Accountable
Officers
• Sec. 101, PD 1445;
• Sec. 305 (f) RA 7160
– Every officer of any government agency
whose duties permit or require the
possession or custody of government
funds or property shall be accountable
therefore and for safekeeping thereof
in conformity with law and shall be
properly bonded in accordance with law.
COA-GAFMIS Circulars
2003-006 dtd Dec. 2,2003 – use of
simplified accounting forms
 Cash Receipts Registry
 Petty Cash Register
 Cash in Bank Register
2004-003 dtd June 24, 2004 –
supplemental form prescribed under
COA Circular No.2003-006 dtd Dec.
2, 2003
 Cash Disbursements Register
DepEd-DBM Joint Circular
2004-1
• Sec. ___ authorizes the
grant of cash advance to
School
Heads
of
nonImplementing Units/schools
for the current operating
expenses of the school.
DepEd Order 19 dtd
____2008
• The Secretary of Education,
Jesli
Lapus,
orders
the
downloading of MOOE to schools
without complete financial staff,
to
both
elementary
and
secondary schools.
GAAM
PROVISIONS ON
FISCAL MANAGEMENT
AUDITING, Sec. 6 par. 1
• Auditing is an integral part of
the accountability process in
government.
– Ensures sound and prudent financial
management
by
monitoring
and
evaluating the spending activities of the
government agencies to keep them
within the bounds of law and regulations,
and the standards of economy,
efficiency and effectiveness.
ACCOUNTABILITY, Sec 6 par 2
• The concept of accountability is
an integral whole, and fiscal
accountability is part of, not apart
from, the larger accountability of
government
and
government
officials to the people. All public
officers
and
employees
are
accountable to the people for their
overt acts, neglects or omissions while
in government service
Fiscal Responsibility,
4(4), PD 1445)
(Secs 2 &
• The head of an agency and all those who
exercise authority over the financial
affairs, transactions, and operations of the
agency, shall take care of the management
and utilization of government resources in
accordance with law and regulations, and
safeguard against loss or wastage to ensure
efficient,
economical
and
effective
operations of the government
Transfer of government funds
from officer to another
• Sec. 77, PD 1445
– When government funds or property are
transferred from accountable officer to
another, or from an outgoing officer to
his successor, it shall be done upon
properly itemized invoice and receipt
which shall be invariably support the
clearance to be issued to the relieved or
out going officer
Fundamental Principles on Gov’t
Expenditure and Disbursement
•
Sec 138, GAAM (Sec. 4, PD 1445)
a) No money shall be paid out of
any
public
treasury
or
depository except in pursuance
of an appropriation, law or
other
specific
statutory
authority.
Fundamental Principles
b) Government funds or property
shall be spent or used solely for
public purposes.
c) Trust funds shall be available
and may be spent only for
specific for which the trust was
created of the funds received.
Fundamental Principles
d) Fiscal responsibility shall, to
the greatest extent, be shared
by
all
those
exercising
authority over the financial
affairs,
transactions,
and
operations of the government
agency.
Fundamental Principles
e) Disbursement or disposition of
government funds or property
shall
invariably
bear
the
approval of the proper officials.
f) Claims
against
government
funds shall be supported with
completed documentation.
Fundamental Principles
g) All
laws,
and
regulations
applicable
to
financial
transactions shall be faithfully
adhered to
Fundamental Principles
h) Generally accepted principles
and practices of accounting as
well as sound management and
fiscal administration shall be
observed, provided that they do
not contravene existing laws
and regulations
DOCUMENTATION
DOCUMENTATION
A.Purchase of Supplies
 Requisition Issue Slip
 Abstract of Canvass, Price
Quotation of at least 3 suppliers
 Purchase Order
 Sales Invoice, or Official Receipt
 Inspection and Acceptance Report
DOCUMENTATION
B.Traveling Expenses
Travel Order or Authority to Travel
Certificate of Appearance
Fare tickets (Bus, plane, taxi, etc)
Itinerary of Travel (Appendix A)
Certificate of Travel Completed
(Appendix B)
 Travel Report – narrative





All in original copies
DOCUMENTATION
C.Training & Scholarship
Expenses
 All that are required of the
Traveling Expenses, plus the
following:
 Official Receipt of the
Registration fee payment
 Certificate of Participation
(xerox copy only)
DOCUMENTATION
D.Payment of Utility Bills
(water, electric, telephone,
etc.)
 Statement of Account or Billing
from the utility company
 Official Receipt
SIMPLIFIED
BOOKKEEPING
SIMPLIFIED ACCOUNTING
• CASH
DISBURSEMENT
REGISTER to be accomplish in
duplicate
– Date
– Particulars
– Amount Received
– Amount Disbursed
– Amount on hand or in bank
– Breakdown of Expenditures
LIQUIDATION REPORT
LIQUIDATION REPORT
• Accomplish Liquidation Report form
• Attachments:
– Certified photocopy of the Cash
Disbursement Register
– Disbursement
Vouchers
and
supporting documents of every
expenditures incurred and paid
LIQUIDATION REPORT
– Duplicate (second) copy of
check issued if working fund
received was deposited in a
GSB and checks were issued to
pay expenditures
LIQUIDATION REPORT
• Submit to Division
Accountant
– On a regular monthly basis, or
as soon as working fund is on a
critical balance, whichever
comes first.
LIQUIDATION REPORT
PURPOSE:
Relieve
the
Accountable
Officer (School Head) of
his/her money accountability
New or additional working fund
can be granted
REPORT USERS
•
•
•
•
•
•
•
•
Members of the school community
Division Office
Regional Office
DepEd Central Office
DBM
COA
Local Government Units
Congress, Senate
•THANK YOU