financial and budgetary problems affecting school.manuel

FINANCIAL AND BUDGETARY FINANCIAL AND BUDGETARY PROBLEMS AFFECTING PROBLEMS AFFECTING

SCHOOL SCHOOL ADMINISTRATORSADMINISTRATORS

RECEIPT AND COLLECTIONSRECEIPT AND COLLECTIONS/ DISBURSEMENT/ DISBURSEMENT

OBJECTIVEOBJECTIVE• To determine the basic functions of the To determine the basic functions of the

School Administrator at the field levelSchool Administrator at the field level• To define the receipts and collections / To define the receipts and collections /

disbursementsdisbursements• To discuss the collection and disbursement To discuss the collection and disbursement

systemsystem• To determine the laws and regulations, To determine the laws and regulations,

and common rules on internal controland common rules on internal control– Cash Receipt and CollectionsCash Receipt and Collections– DisbursementDisbursement

Functions of School Functions of School Administrator at the Field LevelAdministrator at the Field Level• To develop and install the internal control structure, To develop and install the internal control structure,

accounting system and proceduresaccounting system and procedures

• To safeguard assets, provide reliable accounting data and To safeguard assets, provide reliable accounting data and promote operational efficiency and effectivenesspromote operational efficiency and effectiveness

• To manage, operate and control the operations at the field To manage, operate and control the operations at the field level in accordance with laws, rules and regulationslevel in accordance with laws, rules and regulations

• To maintain an annual or periodic evaluation report of To maintain an annual or periodic evaluation report of operations relating to the expenditures of funds and other operations relating to the expenditures of funds and other resourcesresources

• To supervise the accountable officers under his/her To supervise the accountable officers under his/her jurisdiction to assure compliance to existing laws, rules jurisdiction to assure compliance to existing laws, rules and regulations in the disposition of fund and regulations in the disposition of fund

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

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

SOURCES OF RECEIPTS AND SOURCES OF RECEIPTS AND COLLECTIONSCOLLECTIONS

• Subsidy income from the National Government Subsidy income from the National Government • Subsidy from the central officeSubsidy from the central office• Subsidy from Regional office/Staff BureauSubsidy from Regional office/Staff Bureau

• Income from Government ServiceIncome from Government Service• Income from Grants and DonationsIncome from Grants and Donations

• Refund of Cash AdvanceRefund of Cash Advance

• Performance Bidders/Bail BondsPerformance Bidders/Bail Bonds• Collections made on behalf of another agenciesCollections made on behalf of another agencies• Inter-agency transferred fundsInter-agency transferred funds

THE COLLECTIONS THE COLLECTIONS SYSTEMSYSTEM• RECORDRECORD

– CASH RECEIPT RECORDSCASH RECEIPT RECORDS

• BOOKS OF ACCOUNTBOOKS OF ACCOUNT– CASH RECEIPT JOURNAL CASH RECEIPT JOURNAL – CASH JOURNALCASH JOURNAL– GENERAL LEDGERGENERAL LEDGER– SUBSIDIARY LEDGERSUBSIDIARY LEDGER

• REPORTREPORT– REPORT OF COLLECTION AND DEPOSITSREPORT OF COLLECTION AND DEPOSITS– REPORT ON ACCOUNTABLE FORMS REPORT ON ACCOUNTABLE FORMS

POLICIES ON COLLECTIONSPOLICIES ON COLLECTIONS • All moneys and property officially received by a All moneys and property officially received by a

public officer in any capacity or upon any occasion public officer in any capacity or upon any occasion must be accounted for as government fund and must be accounted for as government fund and government property (Sec 42, chapter 7, Title 1, government property (Sec 42, chapter 7, Title 1, Book V, 1987 Administrative Code).Book V, 1987 Administrative Code).

• No payment of any nature shall be received by a No payment of any nature shall be received by a collecting officer with out immediately issuing an collecting officer with out immediately issuing an OR in acknowledgement thereof (Sec 44, chapter 7, OR in acknowledgement thereof (Sec 44, chapter 7, Title 1, Book V, 1987 Administrative Code).Title 1, Book V, 1987 Administrative Code).

• Official Receipt are designed to cover a particular Official Receipt are designed to cover a particular kind of collection only and at no instance shall kind of collection only and at no instance shall temporary receipt be issued to acknowledge receipt temporary receipt be issued to acknowledge receipt of public funds (Sec. 72. GAAM Volume 1). of public funds (Sec. 72. GAAM Volume 1).

POLICIES ON COLLECTIONSPOLICIES ON COLLECTIONS

• Pre-numbered Official Receipts shall be issued in Pre-numbered Official Receipts shall be issued in strict numerical sequence. All copies of each receipt strict numerical sequence. All copies of each receipt shall be exact copies or carbon reproduction in all shall be exact copies or carbon reproduction in all aspect of the original…(Sec 73, Article 2, Chapter 3, aspect of the original…(Sec 73, Article 2, Chapter 3, Book II, GAAM).Book II, GAAM).

• At no instance should money in the hands of the At no instance should money in the hands of the collecting officers be utilized for the purpose of en-collecting officers be utilized for the purpose of en-cashing private checks (Sec. 67 (1) and (3), P.D 1445).cashing private checks (Sec. 67 (1) and (3), P.D 1445).

• Accountable Officers shall submit to the COA Unit Accountable Officers shall submit to the COA Unit Auditor all obsolete, spoiled and cancelled OR and Auditor all obsolete, spoiled and cancelled OR and other accountable forms for inspection and other accountable forms for inspection and destruction in compliance with Sec. 99, GAAM Volume destruction in compliance with Sec. 99, GAAM Volume 11

Policies on DepositsPolicies on Deposits• All collecting officers shall deposit intact all All collecting officers shall deposit intact all

their collections, as well as collections turned their collections, as well as collections turned over to them by sub-collector, through AGDB over to them by sub-collector, through AGDB to the National Treasury daily or not later than to the National Treasury daily or not later than the next banking day.the next banking day.

• Where Combined Savings and Current Account Where Combined Savings and Current Account (COMBO) are authorized to be maintained, (COMBO) are authorized to be maintained, deposits shall be made only through the deposits shall be made only through the Savings Account and withdrawals shall be Savings Account and withdrawals shall be drawn made only by the issuance of checks to drawn made only by the issuance of checks to be drawn on approved vouchers against the be drawn on approved vouchers against the current account (Sec. 113, GAAM Vol.1)current account (Sec. 113, GAAM Vol.1)

COMMON RULES ON INTERNAL CONTROLCOMMON RULES ON INTERNAL CONTROL OVER OVER

CASH RECEIPT AND COLLECTIONSCASH RECEIPT AND COLLECTIONS

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

• Adequate records should be maintained and Adequate records should be maintained and reports regularly submittedreports regularly submitted

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



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

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

• No disbursement should be made from cash No disbursement should be made from cash receipt unless specifically authorized receipt unless specifically authorized



• Cash receipt should be deposited intact daily Cash receipt should be deposited intact daily

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

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

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

THE DISBURSEMENT SYSTEMTHE DISBURSEMENT SYSTEM• RECORDRECORD

– Cash Disbursement RecordsCash Disbursement Records– Check Disbursement RecordsCheck Disbursement Records

• BOOKS OF ACCOUNTBOOKS OF ACCOUNT

– Check Disbursement Journal Check Disbursement Journal – Cash Disbursement JournalCash Disbursement Journal– General LedgerGeneral Ledger– Subsidiary LedgerSubsidiary Ledger

• REPORTREPORT

– Report of Checks Issued Report of Checks Issued – Report of Disbursement Report of Disbursement – Petty Cash Replenishment ReportPetty Cash Replenishment Report– Liquidation ReportLiquidation Report

POLICIES ON DISBURSEMENTPOLICIES ON DISBURSEMENT • Basic Requirements Applicable to all Types Basic Requirements Applicable to all Types

of Disbursementsof Disbursements

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

office or his duly authorized representativeoffice or his duly authorized representative– Submission of documents and other evidences Submission of documents and other evidences

to establish the validity and correctness of the to establish the validity and correctness of the claim for paymentclaim for payment

– Conformity of the expenditure to existing laws Conformity of the expenditure to existing laws and regulationsand regulations

– Proper accounting treatmentProper accounting treatment

POLICIES ON DISBURSEMENTPOLICIES ON DISBURSEMENT • Only permanently appointed officials and Only permanently appointed officials and

employees shall be granted cash advancesemployees shall be granted cash advances

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

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

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

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

POLICIES ON DISBURSEMENTPOLICIES ON DISBURSEMENT • No additional cash advance shall be allowed to any official or No additional cash advance shall be allowed to any official or

employee unless the previous cash advance given to him is first employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made (Sec. 89, PD settled or a proper accounting thereof is made (Sec. 89, PD 1445)1445)

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

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

• When a cash advance is no longer needed or has not been used 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 for a period of two months, the same should be returned to, or deposited immediately with the collecting officer (COA Circular deposited immediately with the collecting officer (COA Circular No. 97-002) No. 97-002)

POLICIES ON DISBURSEMENTPOLICIES ON DISBURSEMENT • The AO shall liquidate his/her cash advance as follows:The AO shall liquidate his/her cash advance as follows:

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

– Petty Cash Fund – within 20 days after the end of the year, Petty Cash Fund – within 20 days after the end of the year, subject to replenishment during the yearsubject to replenishment during the year

– Foreign travel –within 60 days after return to the PhilippinesForeign travel –within 60 days after return to the Philippines

– Local travel – immediately upon completion of the official travelLocal travel – immediately upon completion of the official travel

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

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

POLICIES ON DISBURSEMENTPOLICIES ON DISBURSEMENT • No officer or employee shall be granted No officer or employee shall be granted

a cash advance unless he/she is a cash advance unless he/she is properly bonded in accordance with lawproperly bonded in accordance with law

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

COMMON RULES ON INTERNAL CONTROLCOMMON RULES ON INTERNAL CONTROL OF OF

DISBURSEMENTDISBURSEMENT

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

– Adequate records should be maintained Adequate records should be maintained and reports regularly submittedand reports regularly submitted

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



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

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



– Vouchers and supporting papers Vouchers and supporting papers should be stamped “PAID” upon should be stamped “PAID” upon paymentpayment

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

DepEd Order No. 5, s. 2008DepEd Order No. 5, s. 2008• Dissemination of the code of signing Dissemination of the code of signing

authorities on Administrative and Financial authorities on Administrative and Financial Matters to Central and Field OfficesMatters to Central and Field Offices

• Financial MattersFinancial Matters– Petty Cash VouchersPetty Cash Vouchers– Requisition and Issue SlipRequisition and Issue Slip– Purchase Request and Job/Work RequestPurchase Request and Job/Work Request– Purchase Order, Job/work Order, MOA etc.Purchase Order, Job/work Order, MOA etc.– Obligation RequestObligation Request– Disbursement VoucherDisbursement Voucher– CheckCheck

Petty Cash VoucherPetty Cash Voucher• Regional OfficesRegional Offices• Division OfficesDivision Offices• SchoolSchool

• Approval by the Approval by the Officials authorized Officials authorized by the Head of by the Head of OfficeOffice

Requisition and Issue SlipRequisition and Issue SlipSigned by the head Signed by the head

of requisitioning of requisitioning officeoffice

• Regional OfficesRegional Offices• Division OfficesDivision Offices• SchoolSchool

Approved by the Approved by the following officialsfollowing officials

• Chief Adm. OfficersChief Adm. Officers• SDSSDS• PrincipalPrincipal

Purchase Request and Job/Work RequestPurchase Request and Job/Work Request

Signed by the head Signed by the head of requisitioning of requisitioning officeoffice

• Regional OfficesRegional Offices• Division OfficesDivision Offices• SchoolSchool


• Regional DirectorRegional Director• SDSSDS• Head of SchoolHead of School

Purchase Order, Job/work Order, MOA, Purchase Order, Job/work Order, MOA, Contract for Delivery of Goods and Services Contract for Delivery of Goods and Services and other Commitments / Contractsand other Commitments / ContractsSigned by the head of Signed by the head of

requisitioning officerequisitioning office• Regional OfficesRegional Offices• Division OfficesDivision Offices

– Not over 5 MNot over 5 M– Over 5 MOver 5 M

• School with School with Financial StaffFinancial Staff– Not over 1 MNot over 1 M– Over 1M but not over Over 1M but not over

5M5M– Over 5 MOver 5 M


• Regional DirectorRegional Director

• SDSSDS• Regional DirectorRegional Director

• Head of SchoolHead of School


Obligation RequestObligation Request• PS, Electricity, Water, PS, Electricity, Water,

Telephone and RentTelephone and Rent– Regional OfficesRegional Offices– Division OfficesDivision Offices– SchoolSchool

• MOOE & COMOOE & CO– Head of Requesting UnitHead of Requesting Unit

– Box B of the ObR shall be Box B of the ObR shall be signed by the Head of the signed by the Head of the budget Division / budget Division / Section / Unit to certify on Section / Unit to certify on the availability of the availability of allotment and obligation allotment and obligation incurredincurred

• ApprovalApproval

– CAO, Administrative CAO, Administrative OfficerOfficer

– Administrative OfficerAdministrative Officer– Administrative OfficerAdministrative Officer

Disbursement VoucherDisbursement Voucher• Regional OfficesRegional Offices• Division Office and Schools Division Office and Schools

without financial Staffwithout financial Staff– PSPS– MOOE/CO MOOE/CO

• Not over P 5 MNot over P 5 M• Over 5 MOver 5 M

• School with Financial StaffSchool with Financial Staff– PSPS

– MOOE/CO MOOE/CO • Not over P 1MNot over P 1M• Over P1M but not over Over P1M but not over

5M5M• Over 5 MOver 5 M




• Head of SchoolHead of School

• Head of SchoolHead of School• SDSSDS• Regional DirectorRegional Director

OfficeMonetary

LimitSigning Official

Countersigning official

Regional Office None Asst. Regional Director Regional DirectorChief Administrative OfficerCashier

Division OfficeSchool w/o Financial

Staff

PS None Asst. School Div Supt School Division Supt.Administrative OfficerCashier

MOOE / CO Not over P 5M Asst. School Div Supt School Division Supt.Administrative OfficerCashier

Over P 5M School Division Supt. Regional Director

OfficeMonetary

LimitSigning Official

Countersigning official

School w/ Financial Staff

PS None Disbursing Officer Head of School

Administrative OfficerCashier

MOOE / CO Not over P 1M Disbursing Officer Head of SchoolAdministrative OfficerCashier

Over P 1M Head of School School Division Supt.but not Over P 5M

Over P 5M School Division Supt. Regional Director

financial and budgetary problems affecting school.manuel

Documents

collections receipt

temporary receipt

disposition of fund

internal control cash

receipt of public funds

collections disbursementsto

government fund

collections subsidy