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GOVERNMENT ACCOUNTING – (REGISTRIES, REVENUE, OTHER RECEIPTS) Obligation Request and Status.

The incurrence of obligations


shall be made through the issuance of Obligation Request and
Classification of Expenditures. Expenditures of NGAs shall be classified Status (ORS)
into categories as may be determined by the DBM including, but not
limited to the following: d. Registries of Budget, Utilization and Disbursements. The
Registries of Budget, Utilization and Disbursements (RBUD)
a. Entity incurring the obligation; shall be used to record the approved special budget and the
b. Program, Activity and Project (PAP); corresponding utilizations and disbursements charged to
c. Object of expenditures, including personnel services (PS), maintenance retained income authorized under R.A. 8292 for SUCs and other
and other operating expenditures (MOOE), financial expenses (FE), and retained income collection of a national government agency
capital outlays (CO); with similar authority, Revolving Funds and Trust
d. Region or locality of use; Receipts/Custodial Funds. It shall be maintained by
e. Economic or functional classification of the expenditures; legal/authority, fund cluster, MFO/PAP and budget
f. Obligational authority and cash transactions arising from fund releases; classification.
and
g. Such other classifications as may be necessary for the budget process. 1. Registry of Budget, Utilization and Disbursements-
Personnel Services (RBUD-PS) shall be used to record the
budget utilizations and disbursements classified under PS.
Monitoring of the Budget. The budget shall be monitored by the Budget 2. Registry of Budget, Utilization and Disbursements-
Division/Units of NGAs through the maintenance of registries for that Maintenance and Other Operating Expenses (RBUD-
purpose. MOOE) shall be used to record the budget utilizations and
disbursements classified under MOOE.
a. Registries of Revenue and Other Receipts. The Registries of 3. Registry of Budget, Utilization and Disbursements-
Revenue and Other Receipts shall be maintained by the Budget Financial Expenses (RBUD-FE) shall be used to record the
Division/Unit of NGAs to monitor the revenue and other budget utilizations and disbursements classified under FE.
receipts estimated/budgeted, collected and 4. Registry of Budget, Utilization and Disbursements-
remitted/deposited. Capital Outlays (RBUD-CO) shall be used to record the
b. Registry of Appropriations and Allotments. The Registry of budget utilizations and disbursements classified under
Appropriations and Allotments (RAPAL) shall be maintained by CO.
NGAs to monitor appropriations and allotments charged Budget Utilization Request and Status. The incurrence of
thereto. It shall show the original, supplemental and final budget utilization shall be made through the issuance of Budget
budget for the year and all allotments received charged against Utilization Request and Status (BURS).
the corresponding appropriation. The balance is extracted
every time an entry is made to prevent incurrence of overdraft ------------------------------------------------------------------------------------
in appropriations. Separate RAPAL shall be maintained by fund
cluster and by Major Final Output (MFO)/PAP/Appropriation Sources of Revenue and Other Receipts. Revenues received by
Acts. NGAs may arise from exchange and non-exchange transactions.

Procedures in Recording Appropriations and Allotments. Revenue from Exchange Transactions. Revenues received by
the NGAs from exchange transactions are derived from the
Staff Concerned following:
Receives the GAA and the allotment release documents from
the DBM. Records the same in the logbook and forwards these a. Sale of goods or provisions of services to third parties or to
documents to the Budget Staff for recording in the RAPAL and other NGAs. Examples are:
RAOD. 1. Service Income – Permit Fees, Registration Fees,
Registration Plates, Tags and Stickers Fee, Clearance and
Budget Staff Certification Fees, Franchising Fees, Licensing Fees, Supervision
Records the appropriations and allotments in the appropriate and Regulation Enforcement Fees, Spectrum Usage Fees, Legal
columns of the RAPAL and the RAOD. Forwards a copy of the Fees, Inspection Fees, Verification and Authentication Fees,
allotment release documents to the Accounting Division/Unit Passport and Visa Fees, Processing Fees and Other Service
for reference. Income; and
2. Business Income – School Fees, Affiliation Fees,
c. Registries of Allotments, Obligations and Disbursements. The Examination Fees, Seminar/Training Fees, Rent/Lease Income,
Registries of Allotments, Obligations and Disbursements Communication Network Fees, Transportation System Fees,
(RAOD) shall be maintained by the Budget Division/Unit of Road Network Fees, Waterworks System Fees, Power Supply
agencies to record allotments, obligations and disbursements. System Fees, Seaport System Fees, Landing and Parking Fees,
It shall show the allotments received for the year, obligations Income from Hostels/Dormitories and Other Like Facilities,
incurred against the corresponding allotment and the actual Slaughterhouse Operation, Income from Printing and
disbursements made. The balance is extracted every time an Publication, Sales Revenue, Hospital Fees, Share in the Profit of
entry is made to prevent incurrence of obligations in excess of Joint Venture and Other Business Income.
allotment and overdraft in disbursements against obligations
incurred. The RAODs shall be maintained by appropriation act, b. Use by other entity of assets yielding interest, royalties and
fund cluster, MFO/PAP, and allotment class. dividends or similar distributions. Examples are:
1. Interest income – charges for the use of cash or cash
1. Registry of Allotments, Obligations and Disbursements- equivalents, or amounts due to the entity;
Personnel Services (RAOD-PS) shall be used to record the 2. Royalties – fees paid for the use of entity’s assets such as
allotments received, obligations incurred and disbursements trademarks, patents, software, and copyrights; and
classified under PS. 3. Dividends – share of the National Government from the
2. Registry of Allotments, Obligations and Disbursements- earnings of its capital/equity investments in Government-
Maintenance and Other Operating Expenses (RAOD-MOOE) Owned or Controlled Corporations (GOCCs) and other entities.
shall be used to record the allotments received, obligations
incurred and disbursements classified under MOOE. Revenue from Non-Exchange Transactions. Revenue of the
3. Registry of Allotments, Obligations and Disbursements- NGAs from non-exchange transactions are derived mostly from
Financial Expenses (RAOD-FE) shall be used to record the taxes, gifts and donations, goods in kind and fines and
allotments received, obligations incurred and disbursements penalties. Most NGAs derive revenues from transactions where
classified under FE. they receive resources and provide no or nominal
4. Registry of Allotments, Obligations and Disbursements- consideration directly in return. These are as follows:
Capital Outlays (RAOD-CO) shall be used to record the
allotments received, obligations incurred and disbursements
classified under CO.
Tax Revenue Tax Remittance Advice. This shall be used to recognize: (1) in
1. Tax Revenue-Individual and Corporation the books of national government agencies, the constructive
2. Tax Revenue-Property remittance to BIR and BOC of taxes and customs’ duties
3. Tax Revenue-Goods and Services withheld, and the constructive receipt of NCA for those taxes
4. Tax Revenue-Others and customs duties; (2) in the books of the BIR and BOC, the
constructive receipt of tax revenue and customs duties; and (3)
Fines and Penalties in the books of the BTr, the constructive receipt of the taxes
1. Tax Revenue and customs duties remitted.
2. Service Income
3. Business Income NGA books (withholding agency)
Cash-Tax Remittance Advice P100,000
Shares, Grants and Donations Subsidy from National Government P100,000
1. Share from National Wealth To recognize constructive receipt of NCA for TRA
2. Share from Philippine Amusement and Gaming Corporation
(PAGCOR)/ Philippine Charity Sweepstakes Office (PCSO) Due to BIR P100,000
3. Share from Earnings of GOCCs Cash-Tax Remittance Advice P100,000
4. Income from Grants and Donations in Cash To recognize constructive remittance to BIR of taxes withheld
5. Income from Grants and Donations in Kind through TRA

Revenue from non-exchange transactions may also arise BIR Books


when, in respect of an inflow of resources from a non- Cash-Tax Remittance Advice P100,000
exchange transaction, the entity satisfies a present obligation Income Tax P100,000
recognized as a liability which may be as follows: To recognize constructive receipt of taxes remitted by NGAs
1. Trust Liabilities – Customers’ Deposits Payable and through TRA
Guaranty/Security Deposits Payable
2. Deferred Credits – Deferred Finance Lease Revenue and Receipt of Subsidy/Assistance from other NGAs, LGUs, GOCCs
Other Deferred Credits and Other Funds. The Collecting Officer shall issue OR upon
3. Unearned Revenue – Investment Property and Other receipt of cash subsidy/assistance.
Unearned Revenue
Cash-Collecting Officers P100,000
Other Receipts. Subsidy from Other NGAs P50,000
Other receipts of NGAs shall be composed of, but not limited Assistance from LGUs 25,000
to, the following: Assistance from GOCCs 25,000
To recognize receipt of subsidy/assistance from other
Receipt of NCA. The NCA specifies the maximum amount of government agencies
withdrawal that an entity can make from a government bank
for the period indicated. The Collecting Officer shall not issue Cash-Treasury/Agency Deposit, Trust P100,000
an OR for the receipt of NCA. Cash-Collecting Officers P100,000
To recognize remittance of collections to BTr
Cash-MDS XXXX
SING XXXX Refund of excess cash advances granted to officers and
To recognize receipt of NCA for Regular Agency Fund employees.

Non-Cash Availment Authority. The accounting entry to Cash-Collecting Officers P100,000


recognize the receipt of NCAA is as follows: Advances for Operating Expenses P50,000
Advances for Payroll 25,000
Accounts Payable (Dr) XXXX Advances to Special Disbursing
SING XXXX Officer 25,000
To recognize the receipt of NCAA To recognize collection of refund of excess cash advances

Cash Disbursement Ceiling. The accounting entries for the Intra-agency and inter-agency fund transfers. Cash received
collection of revenue of and the constructive receipt of from central office/regional office/operating units of an entity
disbursement authority to, Foreign Service Posts (FSPs) of DFA and from another entity for the purpose of implementing
and DOLE are as follows: specific projects.

Cash-Collecting Officers P100,000 Intra-entity Fund Transfer


Passport and Visa Fees P100,000
To recognize collection of revenue of FSPs Cash-Collecting Officers 5,000
Due to Central Office 5,000
Cash in Bank- To recognize receipt of intra-entity fund transfer
Foreign Currency, Current Account 100,000
Cash-Collecting Officers P100,000 Cash-Treasury/Agency Deposit, Trust P5,000
To recognize deposit of collections to authorized servicing bank Cash-Collecting Officers P5,000
of the FSPs To recognize remittance of collections to BTr

Cash-Constructive Income Remittance P80,000 ------------------------------------------------------------------------------------


Subsidy from National Government P80,000 UNUSED NCA
To recognize receipt of CDC from DBM
Subsidy from National Government P 10,000
Quarters Allowance-Civilian 50,000 Cash MDS, Regular P10,000
Rents-Buildings and Structures 30,000
Cash in Bank-
Foreign Currency, Current Account 80,000
To recognize payment of expenses charged to CDC

BTr Books:

Subsidy to NGAs P80,000


Cash-Constructive Income Remittance P80,000
To recognize constructive receipt of remitted collections by FSPs
and disbursements charged to the issued CDCs to FSPs.
PROBLEMS Books of Bureau of Internal Revenue

Provide entries for the following: 11. Unbilled Tax Revenue, Collection thru Agency Collecting
Officer:
1. Receipt of GAA Income Tax 1,500,0000
Professional Tax 100,000
PS 150,000 Estate Tax 600,000
MOOE 100,000 TOTAL 2,200,000
CO 200,000
Total 450,000 12. Same Data above assuming the unbilled tax revenues are
directly deposited thru Authorized Agent Banks.
2. Receipt of allotment from the DBM
13. Constructive receipt of NCA for TRA consisting of:
PS 130,000 PS 40,000
MOOE 95,000 MOOE 50,000
CO 190,000 CO 60,000
Total 415,000 TOTAL 150,000

3. Incurrence of obligation 14. Remittance of taxes thru TRA


PS 100,000 Income Tax 12,000
MOOE 91,000 Business Tax 14,000
CO 185,000 TOTAL 26,000
TOTAL 376,000
15. Same data in problem 14 what is the responding entry in
4. Receipt of Notice of Cash of Allocation from DBM the books of BIR for remittance of withholding taxes thru
a. For current year appropriation TRA assuming it was remitted by NGA (other than BIR and
BTR)
P300,000.
Books of Bureau of Treasury
b. For prior year’s accounts payable and not yet due
and demandable 16. Remittances of Revenue from Agencies (except BIR and
BOC) amounting to 10,000
P11,090
17. Remittances of TRA from BIR amounting to 18,880

5. Entity A is authorized to print accounting manuals for sale


to other NGAs. Assume that on July 16, 2014, Entity A sold Unused NCA
accounting manuals on account with a list price of
P100,000 less trade discounts of 10%, 10% and 5%. 18. NCA Received 300,000
Payments 120,000
Unused NCA 180,000
6. Assume that on August 5, 2015, Entity A received a 60-
day, 9%, P12,000 promissory note from X entity for
accounting manuals sold. On October 4, 2015, Entity X -----------------------------------------END-------------------------------------
paid cash in settlement of its note.

7. Billing of revenue/income
Rent/Lease Income 30,000
Waterworks System Fees 50,000
Power Supply System Fees 100,000
Seaport System Fees 45,000
Land and Parking Fees 75,000
TOTAL 300,000

8. Constructive receipt of NCA for TRA consisting of:


PS 40,000
MOOE 50,000
CO 60,000
TOTAL 150,000

9. Remittance of taxes thru TRA


Income Tax 90,000
Business Tax 60,000
TOTAL 150,000

10. Non Cash-Availment Loan Proceeds by NGAs


(Foreign Assisted Project Fund)

a. Receipt of allotment from the DBM


b. Obligation
c. Receipt of the following:
Equipment 440,000
Consultancy Services 44,000
TOTAL 484,000
d. Receipt of withdrawal authorization, advice of
payment or any proof of disbursement from lending
institution
e. Receipt of NCAA from DBM assuming no change in
exchange rates

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