1. SIMPLIFIED ACCOUNTING for SCHOOL HEADS OF NON-IMPLEMENTING UNITS/SCHOOLS

2. RATIONALE
Division Offices and other sources of funds are unable to provide funds to non-implementing units/schools due to absence of specific guidelines and procedures in the receipt, utilization, recording and accounting for such funds.

3. PURPOSE
For use of school heads of non-implementing 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

4. Assist the accountable officer in the preparation of liquidation reports, which will facilitate the recording of disbursements in the division office’ books of accounts.

5. COURSE OUTLINE Introduction Government Accounting L A R G E
Definition
Scope
Government Accounting
L A R G E
Documentation
Simple Bookkeeping
Liquidation Report
Users of Report

6. INTRODUCTION

7. 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

8. 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

9. 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

10. SCOPE OF ACTIVITIES
IDENTIFYING
MEASURING
COMMUNICATING

11. SCOPE OF ACTIVITIES
Identifying means the recognition or non-recognition of “accountable” events/ transactions

12. Philippine Peso is the unit of measurement.
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.

13. 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

14. SCOPE OF ACTIVITIES
Recording is the process of systematically maintaining a record of all economic transactions after they have been identified and measured.

15. SCOPE OF ACTIVITIES
Classifying is the sorting or grouping of similar and interrelated transactions into their respective class or object of expenditure.

16. Summarizing is the preparation of financial reports.
SCOPE OF ACTIVITIES
Summarizing is the preparation of financial reports.

17. GOVERNMENT ACCOUNTING

18. 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.

19. 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

20. Laws, and Rules in Government Expenditures

21. DBM (Budget) Circulars DepEd-DBM Joint Circular #2004-01
PD 1445
COA-GAFMIS Circulars
DBM (Budget) Circulars
DepEd-DBM Joint Circular #
DepEd Order 19 s. 2008
Downloading of MOOE

22. COA-GAFMIS Circulars
dtd May 3, 1990 – rules and regulations on the granting, utilization and liquidation of Cash Advances
dtd Feb. 10, 1997 – restatement with amendments on the rules and regulations on the granting, utilization of cash advance

23. NO CASH ADVANCE shall be given unless for a legally specific purpose.
COA CIR # dtd Feb 10, 1997
General Guidelines:
NO CASH ADVANCE shall be given unless for a legally specific purpose.
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.

24. COA CIR # dtd Feb 10, 1997
A cash advance shall be REPORTED on as soon as the purpose for which it was given has been served.
Only PERMANENTLY APPOINTED OFFICIALS shall be designated as disbursing officers

25. COA CIR # dtd Feb 10, 1997
Only duly appointed or designated disbursing officers may PERFORM disbursing functions
TRANSFER of cash advance from one accountable Officer to another shall not be allowed
The Cash advance shall be used solely for the specific legal purpose for which it was granted.

26. COA CIR # dtd Feb 10, 1997
Under no circumstance shall be it be used for encashment of checks or for liquidation of a previous cash advance.
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.

27. Appointment and/or designation as accountable officer
COA CIR # dtd Feb 10, 1997
Bonding Requirement:
Appointment and/or designation as accountable officer
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

28. COA CIR # dtd Feb 10, 1997
Bonding Requirement
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.

29. COA-GAFMIS Circulars
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

30. 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.

31. COA-GAFMIS Circulars
dtd Dec. 2,2003 – use of simplified accounting forms
Cash Receipts Registry
Petty Cash Register
Cash in Bank Register
dtd June 24, 2004 – supplemental form prescribed under COA Circular No dtd Dec. 2, 2003
Cash Disbursements Register

32. DepEd-DBM Joint Circular 2004-1
Sec. ___ authorizes the grant of cash advance to School Heads of non-Implementing Units/schools for the current operating expenses of the school.

33. 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.

34. GAAM PROVISIONS ON FISCAL MANAGEMENT

35. 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.

36. 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

37. Fiscal Responsibility, (Secs 2 & 4(4), PD 1445)
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

38. 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

39. Fundamental Principles on Gov’t Expenditure and Disbursement
Sec 138, GAAM (Sec. 4, PD 1445)
No money shall be paid out of any public treasury or depository except in pursuance of an appropriation, law or other specific statutory authority.

40. Fundamental Principles
Government funds or property shall be spent or used solely for public purposes.
Trust funds shall be available and may be spent only for specific for which the trust was created of the funds received.

41. Fundamental Principles
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.

42. Fundamental Principles
Disbursement or disposition of government funds or property shall invariably bear the approval of the proper officials.
Claims against government funds shall be supported with completed documentation.

43. Fundamental Principles
All laws, and regulations applicable to financial transactions shall be faithfully adhered to

44. Fundamental Principles
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

45. DOCUMENTATION

46. Purchase of Supplies Requisition Issue Slip
DOCUMENTATION
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

47. Traveling Expenses Travel Order or Authority to Travel
DOCUMENTATION
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

48. Training & Scholarship Expenses
DOCUMENTATION
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)

49. Payment of Utility Bills (water, electric, telephone, etc.)
DOCUMENTATION
Payment of Utility Bills (water, electric, telephone, etc.)
Statement of Account or Billing from the utility company
Official Receipt

50. SIMPLIFIED BOOKKEEPING

51. 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

52. LIQUIDATION REPORT

53. Certified photocopy of the Cash Disbursement Register
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

54. LIQUIDATION REPORT
Duplicate (second) copy of check issued if working fund received was deposited in a GSB and checks were issued to pay expenditures

55. Submit to Division Accountant
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.

56. LIQUIDATION REPORT
PURPOSE:
Relieve the Accountable Officer (School Head) of his/her money accountability
New or additional working fund can be granted

57. REPORT USERS Members of the school community Division Office
Regional Office
DepEd Central Office
DBM
COA
Local Government Units
Congress, Senate

58. THANK YOU