CTU Consolacion Presentation_120923updated.pptx

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1. ORIENTATION ON PROCESSING OF GOVERNMENT TRANSACTIONS Rener L. Malagapo, CPA

2. Session Overview Fundamental Principles Governing the financial transactions and operations of government agency as provided under Section 4 of Presidential Decree (PD) No. 1445 General Requirements for All Types of Disbursements Cash Advances Including Documentary Requirements Travelling Allowances Travelling Expenses – Local Travel Petty Cash Fund Inventories Semi-expendable Property Property Plant and Equipment (PPE) Sample AOMs of Other CTU Campuses 2 CTU Consolacion Campus Accounting Office

3. Learning Objective At the end of the session, you will be able to familiarize and apply policies on the different modes , forms, records, reports on disbursements, cash advances on local travel or time-bound activities, inventories, semi-expendable properties, PPEs and follow the set policies and procedures in accordance with Government Accounting Manual. 3 CTU Consolacion Campus Accounting Office

4. Fundamental Principles Governing the financial transactions and operations of government agency as provided under Section 4 of Presidential Decree (PD) No. 1445: 4 CTU Consolacion Campus Accounting Office No money shall be paid out of any public treasury or depository except in pursuance of an appropriation law or other specific statutory authority. Government funds or property shall be spent or used solely for public purposes. Trust funds shall be available and may be spent only for the specific purpose for which the trust funds was created or the funds received. 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. Disbursements or disposition of government funds or property shall invariably bear the approval of the proper officials. Claims against government funds shall be supported with complete documentation. All laws and regulations applicable to financial transactions shall be faithfully adhered to.

5. General Requirements for All Types of Disbursements 5 CTU Consolacion Campus Accounting Office Certificate of Availability of Funds issued by the Accountant Existence of lawful and sufficient allotment duly obligated as certified by authorized official Legality of transactions and conformity with laws, rules or regulations Approval of expenditure by Head of Office or his authorized representative Sufficient and relevant documents to establish validity of claim

6. Basic Requirements for Disbursements and the Required Certifications A L A S A - availability of Funds L - legality of the transaction A - approved by competent authorities S - supported with documentation 6 CTU Consolacion Campus Accounting Office

7. CASH ADVANCES 1.1 Granting of Cash Advance (COA Circular No. 97-002 dated February 10, 1997 and reiterated in COA Circular No. 2009-002 dated May 18, 2009 and Section 89 of PD No. 1445) 7 CTU Consolacion Campus Accounting Office 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. No additional cash advance shall be allowed to any official or employee unless the previous cash advance given to him/her is first settled/liquidated or a proper accounting thereof is made. Except for cash advance for official travel, no officer or employee shall be granted cash advance unless he/she is properly bonded in accordance with existing laws or regulations. The amount of cash advance which may be granted shall not exceed the maximum cash accountability covered by his/her bond. Only permanently appointed officials shall be designated as disbursing officers. Only duly appointed or designated disbursing officer may perform disbursing functions. Officers and employees who are given cash advances for official travel need not be designated as Disbursing Officers. Transfer of cash advance from one accountable officer to another shall not be allowed; and The cash advance shall be used solely for specific legal purpose for which it was granted. Under no circumstance shall it be used for encashment of checks or for liquidation of a previous cash advance .

8. Documentary Requirements common to all cash advances (except for travels) 8 CTU Consolacion Campus Accounting Office Authority of the accountable officer issued by the Head of the Agency or his duly authorized representative indicating the maximum accountability and purpose of cash advance (for initial cash advance) Certification from the Accountant that previous cash advances have been liquidated and accounted for in the books. Approved application for bond and/or Fidelity Bond for the year for cash accountability of P2,000 or more Memo from the Campus Director Signature of the accountant in the DV

9. Cash Advance for Time-Bounded Activities 9 CTU Consolacion Campus Accounting Office Approved letter to conduct the activity with attached budgetary requirements and training plan if necessary. Memo to cash advance from the Campus Director List of Bonded Accountable Officers Atty. Christian T. Bacus - Mr. Arvin B. Salera -

10. 10 CASH ADVANCES 1.2 Liquidation of Cash Advances The accountable officer shall liquidate cash advances within the following period: Travelling Expenses- within 30 days after the return of the official/employee concerned to his official station for local travels and within 60days for foreign travel Time bounded activities – 20 calendar days from the accomplishment of the purpose. Consequence of non-liquidation Pursuant to COA Circular No. 97-002, failure of the AO to liquidate his cash advance within the prescribed period shall constitute a valid cause for the withholding of his salary and the instruction of other sanctions as provided for under paragraphs 9.2 and 9.3 of the Circular. CTU Consolacion Campus Accounting Office

11. 11 CTU Consolacion Campus Accounting Office Travelling Allowances (EO No. 248 dated May 29, 1995 as amended by EO No. 248-A dated August 14, 1995 and EO No. 298 dated March 23, 2004) - Travels shall cover only those that are urgent and extremely necessary, will involve the minimum expenditure and are beneficial to the agency concerned. Local Travels Documentary Requirements Office Order/Travel Order approved in accordance with Section 3 of EO No. 298 Duly approved itinerary of travel Certification from the accountant that previous cash advance has been liquidated and accounted for in the books Request to travel precede the issuance of TO.

12. 12 Travelling Expenses (Local Travel) Documentary Requirements Paper/electronic plane, boat or bus tickets, boarding pass, terminal fee Certificate of appearance/attendance Copy of previously approved itinerary of travel Revised or supplemental Travel Order/Office Order or any proof supporting the change of schedule Revised Itinerary of Travel, if the previous approved itinerary was not followed Certification by the Head of the Agency as to the absolute necessity of the expenses incurred for official travel exceeded the prescribed rate per day (Certification or affidavit of loss shall not be considered as an appropriate replacement for the required hotel/lodging bills and receipts) CTU Consolacion Campus Accounting Office

13. Sample Forms (Travel) 13 CTU Consolacion Campus Accounting Office B C

14. 14 CTU Consolacion Campus Accounting Office Certification of Expenses not Requiring Receipts (COA Circular 2017-001) In view of the reduced purchasing power of the peso, expenses incurred by government officials and employees in the discharge of their official functions amounting to P300.00 or less need not be supported by official receipts, except for the following: Payment of fares in public utility vehicles issuing receipts such as bus, train, vessel/ship; and Purchases in business establishments issuing receipts. The official/employee concerned shall be required to submit a certification for expenses P300.00 or less as supporting document (Annex "A'). (Agency Name) CERTIFICATION OF EXPENSES NOT REQUIRING RECEIPTS Pursuant to COA Circular No. 2017-001 dated June 19, 2017 Name of Employee   Employee No.   Office   Division   Particulars Amount (P)                         TOTAL   Purpose I hereby certify that the above expenses are incurred as they are necessary for the above cited purpose, that above goods and services were acquired from parties not issuing receipts. And that I am fully aware that wilful falsification of statements is puniŠhab /e by law.   Certified correct: Noted by: Signature     Printed Name           Employee     Immediate Supervisor Date   Date  

15. DAILY TRAVEL EXPENSES (EO 77) 15 CTU Consolacion Campus Accounting Office (c) Apportioned Travel Expenses. The allowable DTE for travel beyond the 50 - kilometer radius from the permanent official station shall be based on the following apportionment : Particulars Percentage To Cover Day of arrival at point of destination (regardless of time) and succeeding day/s thereof on official business 100% Hotel/lodging (50%), meals (30%), and incidental expenses (20%) Particulars Percentage To Cover Day of departure for permanent official station (regardless of time) if other than date of arrival Meals (30%), and incidental expenses (20%) (b) Daily Travel Expenses (DTE). The maximum allowable DTE of government personnel, regardless of rank and position, shall be at the following ra tes: Destination Maximum DTE Cluster I Region I Region Il Region Ill Region V Region Vlll Region IX Region Xll Region Xlll ARMM PI ,500 Cluster I l Cordillera Administrative Region Region VI Region Vll Region X Region Xl PI ,800 Cluster Ill National Capital Region Region IV - A Region IV - B P2,200 (ii) Claims for payment of DTE as provided under Section 5(b)(i) hereof shall not require presentation of bills and receipts.

16. 16 CTU Consolacion Campus Accounting Office Petty Cash Fund (PCF) The PCF to be set up shall be sufficient for the recurring petty operating expenses of the agency for the month. It shall NOT be used for payments of regular expenses, such as rentals, subscriptions, light and water bills and the like. Payments out of PCF, which shall be made through the Petty Cash Voucher, shall be allowed only for amounts not exceeding P15,000 for each transaction Splitting of transactions to avoid exceeding the ceiling shall not be allowed Additional Documentary Requirements Approved estimates of petty expenses for the month

17. 17 CTU Consolacion Campus Accounting Office Petty Cash Fund Documentary Requirements Summary of Petty Cash Vouchers Report of Disbursements Petty Cash Replenishment Report Approved Purchase Request with Certificate of Emergency Purchase, if necessary Bills, receipts, sales invoices Certificate of Inspection and Acceptance Report of Waste Materials in case of replacement/repairs

18. INVENTORIES 18 CTU Consolacion Campus Accounting Office Inventories are assets: In the form of materials or supplies for sale, for distribution, for manufacturing and for consumption Semi-expendable property Tangible items with estimated service life of more than one year but not within the capitalization threshold. (below 50,000/item) Recognition as an expense (Sec 7, Chapter 8 GAM Volume 1 ) Sold Exchanged Distributed Issued to end-users

19. Records, Forms and Reports 19 CTU Consolacion Campus Accounting Office Stock Card Purchase Order ( PO ) Report of Supplies and Materials Issued ( RSMI ) Supplies Ledger Card ( SLC ) Requisition and Issue Slip ( RIS ) Purchase Request ( PR )

20. Semi-expendable Property (COA Circular No. 2022-004) 20 CTU Consolacion Campus Accounting Office KEY TERMS: Semi-expendable property — tangible items which meet the definition and recognition criteria of (PPE ), but below the capitalization threshold of P50,000.00 . 2. Capitalization threshold — refers to the monetary value at which an entity elects to capitalize tangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period . 3 . Current Replacement Cost — is the cost the entity would incur to acquire the asset on the reporting date. 4. Tangible Assets/ ltems — are identifiable non-monetary assets with physical substance.

21. Implementing Guidelines (COA Circular No. 2022-004) 21 CTU Consolacion Campus Accounting Office Tangible items which meet the definition and recognition criteria of PPE but cost is below Fifty Thousand Pesos (P 50,000.00) shall be accounted in the books of accounts of the agencies as semi-expendable property. This shall be supported by the issuance of the Inventory Custodian Slip (ICS) to establish accountability of the end-user. ICS shall be issued to the end-user and shall be renewed every three years or every time there is a change in custodianship/user of the property. The threshold shall be applied on an individual asset or per item basis . The increase in the capitalization threshold from P I5,000.00 to P 50,000.00 shall be considered as a change in accounting policy and shall be applied retrospectively

22. Implementing Guidelines (COA Circular No. 2022-004) 22 CTU Consolacion Campus Accounting Office Additional Controls…. Low-valued items — cost of each item is P 5,000.00 or less — accountability shall be extinguished upon expiration of the estimated useful life, or upon return of the property before the end of its useful life, whether serviceable or non-serviceable , to the Property and/or Supply Division/Unit High-valued items — cost of each item is more than P 5,000.00 but less than P50,000.00 — accountability shall only be extinguished upon return of the item to the Property and/or Supply Division/Unit or in case of loss, upon approval of the request for relief from property accountability, regardless of the expiration of the estimated useful life.

23. PROPERTY PLANT AND EQUIPMENT (PPE) Tangible Assets 23 CTU Consolacion Campus Accounting Office purchased, constructed , developed or otherwise acquired held for ….. use in the production or supply of goods or services or to produce program outputs for rental to others for administrative purposes expected to be used during more than one reporting period not intended for resale in the ordinary course of operations.

24. Different Forms and Reports (PPE) 24 CTU Consolacion Campus Accounting Office Property Card ( PC ) Inspection and Acceptance Report ( IAR ) Inventory and Inspection Report for Unserviceable Property ( IIRUP ) Report of Lost, Stolen, Damaged or Destroyed Property ( RLSDDP ) Property Transfer Report ( PTR ) Property Acknowledgement Receipt ( PAR ) Property, Plant and Equipment Ledger Card ( PPELC ) Report on the Physical Count of Property, Plant and Equipment ( RPCPPE )

25. SAMPLE AOM’s (violation on RA 9184) 25 CTU Consolacion Campus Accounting Office

26. Thank You 26