Sec. 1. Scope. This Chapter provides the standards, policies, guidelines and procedures in
accounting for revenue and other receipts including those collections through authorized agent banks, remittance of collections to the NT through AGDB and deposits with the AGDB in accordance with !A! "#$evenue from %&change Transactions and !A! '(#$evenue from Non#e&change Transactions) Transactions) Sec. 2. Definition of Terms. Terms. *or the purpose of this +anual, the following terms shall be
construed to mean as follows - Bequest – is a transfer made according to the provisions of a deceased person.s will) The past event giving rise to the control of resources embod/ing future economic benefits or service potential for a be0uest occurs when the entit/ has an enforceable claim, for e&le on the death of the testator, or the granting of probate, depending on the laws of the 1urisdiction) 2 Par. 90, PPSAS 233 ' Concessionary loans – are loans received b/ an entit/ at below market terms) ( Exchange transactions – are transactions in which one entit/ receives assets or services, or has liabilities e&tinguished, and directl/ gives appro&imatel/ e0ual value 2primaril/ in the Par. 11, form of cash, goods, services, or use of assets3 to another entit/ in e&change) 2 Par. PPSAS 93 4 air !alue – is the amount for which an asset could be e&changed, or a liabilit/ settled, between knowledgeable, willing parties in an arm.s arm.s length length transaction 5 ines – are economic benefits or service potential received or receivable b/ NGAs, from an individual or other entit/, as determined b/ a court or other law enforcement bod/, as a conse0uence of the individual or other entit/ breaching the re0uirements of laws or Par. "", PPSAS PPSAS 23 3 regulations) 2 Par. 6 #i$ts, %onations an& #oo&s 'n()in& – are voluntar/ transfers of assets, including cash or other monetar/ assets, goods in#kind and services in#kind that one entit/ makes to another, normall/ free from stipulations) The transferor ma/ be an entit/ or an individual) *or gifts and donations of cash or other monetar/ assets and goods in#kind, the past event giving rise to the control of resources embod/ing future economic benefits or service potential is normall/ normall/ the receipt of the gift or donation) 2 Par. 93, PPSAS 233 - *on(exchange transactions – are transactions in which an entit/ either receives value from another entit/ without directl/ giving appro&imatel/ e0ual value in e&change, or gives value to another entit/ without directl/ receiving appro&imatel/ e0ual value in Par. 11, 11, PPSAS 93 e&change) 2 Par. ' Ple&ges – are unenforceable undertakings to transfer assets to the recipient entit/) ( +e!enue – is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets7e0uit/, other than increases relating to contributions from owners)
5888 Ser!ices in()in& – are services provided b/ individuals to public sector agencies in a non#e&change transaction) Sec. Sec. 3. Accru ccrual al of Reve Revenu nuee to the the Ge Gene nera rall Fund Fund) 9nless 9nless otherwise otherwise specifical specificall/ l/
provided b/ law, all revenue 2income3 accruing to the departments, offices and agencies b/ virtue of the provisions of e&isting laws, orders and regulations shall be deposited in the NT or in the dul/ authorized depositor/ of the Government and shall accrue to the &&& General *und of the Govern Governmen ment t rovid rovided, ed, that that amount amountss receiv received ed in trust trust and fro from m busine business# ss#t/p t/pee activi activitie tiess of govern governmen mentt ma/ be separa separatel/ tel/ recorded recorded and disbur disbursed sed in accord accordanc ancee with with such such rules rules and regulations as ma/ be determined b/ the ermanent Committee) 2 Sec. , Cha-ter , Boo) ', E./. *o. 292 3 Sec. 4. Special, Special, Fiduciar and Trust Trust Funds. $eceipts shall be recorded as revenue of
!pecial, *iduciar/ or Trust *unds 2T*3 or *unds other than the G*, onl/ when authorized b/ law and follow following ing such such rules rules and regula regulatio tions ns as ma/ be issued issued b/ the erman ermanent ent Commi Committee ttee consisting of the !ecretar/ of *inance as Chairman, and the !ecretar/ of the Budget and the Chairman, Commission on Audit, as members) The same Committee shall likewise monitor and evaluate the activities and balances of all *unds of the NG other than the G* and ma/ recommend for the consideration and approval of the resident, the reversion to the G* of such amounts as are 2-3 no longer necessar/ for the attainment of the purposes for which said *unds were established, 2'3 needed b/ the G* in times of emergenc/, or 2(3 violative of the rules and regulations adopted b/ the Committee provided, that the conditions originall/ agreed upon at the time the funds were received shall be observed in case of gifts or donations or other pa/ments made b/ private parties for specific purposes) 2 Sec. , Cha-ter , Boo) ', E/ 292 3) Sec. !. Sources of Revenue and "ther Receipts. $evenues received b/ NGAs ma/ arise
from e&change and non#e&change transactions) :n a transaction where the entit/ ma/ provide some consideration directl/ in return for the resources received, but that consideration does not appro&imate the fair value of the resources received, the entit/ determines whether there is a combination of e&change and non#e&change transactions) %ach component of which is recognized separatel/) 2 Par. 10, PPSAS 233 There are transactions where it is not immediatel/ clear whether the/ are an e&change or a non#e&change transaction) :n these cases, an e&amination of the substance of the transaction will determine if the/ are on e&change or non#e&change transactions) *or e&le, the sale of goods is normall/ classified as an e&change transaction) :f, however, the transaction is conducted at a subsidized price, that is, a price that is not appro&imatel/ e0ual to the fair value of the goods sold, that transaction falls within the definition of a non#e&change transaction) Agencies ma/ receive trade discounts, 0uantit/ discounts, or other reductions in the 0uoted price of assets for a variet/ of reasons) These reductions in price do not necessaril/ mean 11, PPSAS 23 3 that the transaction is a non#e&change transaction) 2 Par. 11, Sec. #. Revenue from $%chan&e Transactions. Transactions. $evenues received b/ the NGAs from
e&change transactions are derived from the following -
!ale of of goods goods or provis provisions ions of of services services to third parties parties or to other other NGAs) NGAs) %&le %&less are -
Ser! Ser!ice ice 'nco 'ncoe e ; ermit ermit *ees, *ees, $egistratio $egistrationn *ees, *ees, $egistratio $egistrationn lates, lates, Tags Tags and
!tickers *ee, Clearance and Certification *ees, *ranchising *ees,
5888 Ser!ices in()in& – are services provided b/ individuals to public sector agencies in a non#e&change transaction) Sec. Sec. 3. Accru ccrual al of Reve Revenu nuee to the the Ge Gene nera rall Fund Fund) 9nless 9nless otherwise otherwise specifical specificall/ l/
provided b/ law, all revenue 2income3 accruing to the departments, offices and agencies b/ virtue of the provisions of e&isting laws, orders and regulations shall be deposited in the NT or in the dul/ authorized depositor/ of the Government and shall accrue to the &&& General *und of the Govern Governmen ment t rovid rovided, ed, that that amount amountss receiv received ed in trust trust and fro from m busine business# ss#t/p t/pee activi activitie tiess of govern governmen mentt ma/ be separa separatel/ tel/ recorded recorded and disbur disbursed sed in accord accordanc ancee with with such such rules rules and regulations as ma/ be determined b/ the ermanent Committee) 2 Sec. , Cha-ter , Boo) ', E./. *o. 292 3 Sec. 4. Special, Special, Fiduciar and Trust Trust Funds. $eceipts shall be recorded as revenue of
!pecial, *iduciar/ or Trust *unds 2T*3 or *unds other than the G*, onl/ when authorized b/ law and follow following ing such such rules rules and regula regulatio tions ns as ma/ be issued issued b/ the erman ermanent ent Commi Committee ttee consisting of the !ecretar/ of *inance as Chairman, and the !ecretar/ of the Budget and the Chairman, Commission on Audit, as members) The same Committee shall likewise monitor and evaluate the activities and balances of all *unds of the NG other than the G* and ma/ recommend for the consideration and approval of the resident, the reversion to the G* of such amounts as are 2-3 no longer necessar/ for the attainment of the purposes for which said *unds were established, 2'3 needed b/ the G* in times of emergenc/, or 2(3 violative of the rules and regulations adopted b/ the Committee provided, that the conditions originall/ agreed upon at the time the funds were received shall be observed in case of gifts or donations or other pa/ments made b/ private parties for specific purposes) 2 Sec. , Cha-ter , Boo) ', E/ 292 3) Sec. !. Sources of Revenue and "ther Receipts. $evenues received b/ NGAs ma/ arise
from e&change and non#e&change transactions) :n a transaction where the entit/ ma/ provide some consideration directl/ in return for the resources received, but that consideration does not appro&imate the fair value of the resources received, the entit/ determines whether there is a combination of e&change and non#e&change transactions) %ach component of which is recognized separatel/) 2 Par. 10, PPSAS 233 There are transactions where it is not immediatel/ clear whether the/ are an e&change or a non#e&change transaction) :n these cases, an e&amination of the substance of the transaction will determine if the/ are on e&change or non#e&change transactions) *or e&le, the sale of goods is normall/ classified as an e&change transaction) :f, however, the transaction is conducted at a subsidized price, that is, a price that is not appro&imatel/ e0ual to the fair value of the goods sold, that transaction falls within the definition of a non#e&change transaction) Agencies ma/ receive trade discounts, 0uantit/ discounts, or other reductions in the 0uoted price of assets for a variet/ of reasons) These reductions in price do not necessaril/ mean 11, PPSAS 23 3 that the transaction is a non#e&change transaction) 2 Par. 11, Sec. #. Revenue from $%chan&e Transactions. Transactions. $evenues received b/ the NGAs from
e&change transactions are derived from the following -
!ale of of goods goods or provis provisions ions of of services services to third parties parties or to other other NGAs) NGAs) %&le %&less are -
Ser! Ser!ice ice 'nco 'ncoe e ; ermit ermit *ees, *ees, $egistratio $egistrationn *ees, *ees, $egistratio $egistrationn lates, lates, Tags Tags and
!tickers *ee, Clearance and Certification *ees, *ranchising *ees,
*ees, :nspection *ees, =erification and Authentication *ees, assport and =isa =isa *ees, rocessing *ees and >ther !ervice :ncome? and Business 'ncoe ; !chool *ees, Affiliation *ees, %&amination *ees, !eminar7Training
*ees, *ees, $ent7
ther >ther perat >peration ion,, :ncome :ncome fro from m rint rinting ing and ublication, !ales $evenue, ospital *ees, !hare in the rofit of oint =enture and >ther Business :ncome) -
9se 9se b/ othe otherr enti entit/ t/ of asse assets ts /iel /ieldi ding ng inte intere rest st,, ro/ ro/alti alties es and and divi divide dend ndss or sim similar ilar distributions) %&les are - 'nterest incoe ; charges ; charges for the use of cash or cash e0uivalents, or amounts due to the entit/? ' +oyalties ; fees paid for the use of entit/.s assets such as trademarks, patents, software, and cop/rights? and ( %i!i&en&s ; share ; share of the National Government from the earnings of its capital7e0uit/ investments in Government#>wned or Controlled Corporations 2G>CCs3 and other entities) Sec. '. Reco&nitio Reco&nition n and (easurem (easurement ent of Revenue Revenue from $%chan&e $%chan&e Transa Transaction ctionss )
$evenue from e&change transaction shall be measured at fair value of the consideration received or receivable) - $evenue shall be recognized when it is probable that future economic benefits or service potential will flow to the entit/ and these benefits can be measured reliabl/) reliabl/) $evenue from the sale of goods shall be recognized when all the following conditions have been satisfied -
The entit/ entit/ has has transfe transferre rredd to the purchas purchaser er the signif significa icant nt risks risks and rewards rewards of ownership of the goods? 2 Par. 2", PPSAS 93 '
The entit/ entit/ retain retainss neither neither continu continuing ing manag manageri erial al involvem involvement ent to the degre degreee usuall/ associated with ownership nor effective control over the goods sold?
iii) iii) The The am amount ount of revenue can be measured reliabl/?
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:t is prob probab able le that the econ econom omic ic bene benefi fits ts or serv servic icee pote potent ntia iall asso associ ciat ated ed with the transaction will flow to the entit/? and
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The costs costs incur incurred red or to be incur incurred red in resp respect ect of the trans transact action ion can can be measure measuredd reliabl/)
$evenu $evenuee from the supp suppl/ l/ of services services shall shall be recogn recognize izedd on a straig straight ht line basis basis over over the specified period of the services unless an alternative method better represents the stage of completion of the transaction)
@hen the outcome of a transaction involving the rendering of services can be estimated reliabl/, revenue associated with the transaction shall be recognized b/ reference to the stage of completion of the transaction at the reporting date) The outcome of a transaction can be estimated reliabl/ when all the following conditions are satisfied -
The amount of revenue can be measured reliabl/?
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:t is probable that the economic benefits or service potential associated with the transaction will flow to the entit/?
(
The stage of completion of the transaction at the reporting date can be measured reliabl/? and
4
The costs incurred for the transaction and the costs to complete the transaction can be measured reliabl/) 2 Par. 19, PPSAS 93
*or practical purposes, when services are performed b/ an indeterminate number of acts over a specified time frame, revenue is recognized on a straight line basis over the specified time frame unless there is evidence that some other method better represents the stage of completion) 2 Par. 2, PPSAS 93 @hen the outcome of the transaction involving the rendering of services cannot be estimated reliabl/, revenue should be recognized onl/ to the e&tent of the e&penses recognized that are recoverable) 2 Par. 2, PPSAS 93) -
$evenue arising from the use b/ others of entit/ assets /ielding interest, ro/alties and dividends or similar distributions shall be recognized when it is probable that the economic benefits or service potential associated with the transaction will flow to the entit/? and the amount of the revenue can be measured reliabl/) 2 Pars. 33 an& 3, PPSAS 9 3 -
:nterest shall be recognized on a time proportion basis that takes into account the effective /ield on the asset?
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$o/alties shall be recognized as the/ are earned in accordance with the substance of the relevant agreement? and
(
Dividends or similar distributions shall be recognized when the shareholder.s or the entit/.s right to receive pa/ment is established)
%&les Revenue
Revenue Reco&nition )oint
Service *ncome
ermit *ees, $egistration *ees, $egistration lates, Tags and !tickers *ee, Clearance and Certification *ees, *ranchising *ees and
@hen services are rendered or if not practicable, when fees are collected upon issuance of the respective permits, certificates of registration, plates, stickers, clearance, certification, franchises and
Revenue Reco&nition )oint
!upervision and %nforcement *ees
$egulation
licenses @hen services are rendered or when tickets or relevant document representing violation are issued or if not practicable, when fees are collected
!pectrum 9sage *ees
@hen bills are rendered for the use, allocation and assignment of radio fre0uenc/ wave lengths or if not practicable, when fees are collected
:nspection *ees
@hen bills are rendered for the conduct of inspection b/ authorized government official or if not practicable, when fees are collected
@hen filing fees are billed or if not practicable, when fees are collected
assport and =isa *ees,
@hen fees are billed upon issuance of the passport and visa or if not practicable, when fees are collected
rocessing *ees
@hen fees are billed or collected for the processing of documents for securing permits7applications)
>ther !ervice :ncome
@hen fees are billed or if not practicable, when fees are collected
+usiness *ncome
!chool *ees, Affiliation *ees, %&amination *ees, !eminar7 Training *ees
@hen fees are billed or if not practicable, when fees are collected
@hen fees are billed for earned revenue from $ent7ther ther !ervice :ncome @hen the significant risks and rewards of !ales $evenue ownership have been transferred to the bu/er as indicated in the sales invoice @hen fees are billed for hospital and related services rendered, or if not practicable, when fees are collected
ospital *ees
(
Revenue
Revenue Reco&nition )oint
!hare in the rofit of oint =enture
@hen share in the profit is earned
>ther Business :ncome
@hen earned or if not practicable, when fees are collected
$evenue shall be measured at the fair value of the consideration received or receivable) An/ amount of trade discounts and volume rebates allowed b/ the entit/ shall be taken into account) 2 Par. 1(1, 'PSAS 93 %&le %ntit/ A is authorized to print accounting manuals for sale to other NGAs) Assume that on ul/ -6, '-4, %ntit/ A sold accounting manuals on account with a list price of -, less trade discounts of -E, -E and 5E) The invoice price of the merchandise is computed as follows
-,
-, ", ", 8-, 4,5 6,"5
The 1ournal entr/ shall be as follows Account Title Account Code Debit Accounts $eceivable 6,"5 -(-- !ales $evenue 4''-6 To recognize the sale of the accounting manuals
Credit 6,"5
@hen the inflow of cash or cash e0uivalents received or receivable is deferred, the fair value of the consideration ma/ be less than the nominal amount of cash received or receivable) The fair value of the consideration is determined b/ discounting all future receipts using an imputed rate of interest) The difference between the fair value and the nominal amount of the consideration is recognized as interest revenue) 2 Par. 1, 'PSAS 93 %&le Assume that on August 5, '-5, %ntit/ A received a 6#da/, "E, -', promissor/ note from F entit/ for accounting manuals sold) >n >ctober 4, '-5, %ntit/ F paid cash in settlement of its note)
The accounting entries shall be as follows Account Title
Account Code
Debit
-(-' 4''-6
-',
August 5 Notes $eceivable !ales $evenue To recognize the sale
>ctober 4 Cash#Collecting >fficers ---- Notes $eceivable -(-' :nterest :ncome 4'''- To recognize the collection of notes receivable
Credit
-',
-',-8 -',
-8
:nterest -', & "E & 67(6 -8 Sec. . $%chan&es of Goods or Services for Similar-Dissimilar Good or Services )
@hen goods or services are e&changed or swapped for goods or services which are of a similar nature and value, the e&change is not regarded as a transaction which generates revenue) owever, when goods are sold or services are rendered in e&change for dissimilar goods or services, the e&change is regarded as a transaction which generates revenue) The revenue is measured at the fair value of the goods or services received, ad1usted b/ the amount of an/ cash or cash e0uivalents transferred) @hen the fair value of the goods or services received cannot be measured reliabl/, the revenue is measured at the fair value of the goods given up, ad1usted b/ the amount of an/ cash or cash e0uivalents transferred) 2 Par. 1, PPSAS 93 Sec. . *mpairment /osses and Allo0ance for *mpairment /osses. @hen an
uncertaint/ arises about the collectibilit/ of an amount alread/ included in revenue, the uncollectible amount, or the amount in respect of which recover/ has ceased to be probable, is recognized as an e&pense 2impairment losses3, rather than as an ad1ustment of the amount of revenue originall/ recognized) %ntities shall evaluate the collectibilit/ of accounts receivable on an ongoing basis based on historical bad debts, customer7recipient credit#worthiness, current economic trends and changes in pa/ment activit/) An allowance is provided for known and estimated bad debts) Sec. 1. Disclosure. An entit/ shall disclose
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The accounting policies adopted for the recognition of revenue, including the methods adopted to determine the stage of completion of transactions involving the rendering of services?
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The amount of each significant categor/ of revenue recognized during the period, including revenue arising from
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- $endering of services? ' !ale of goods? ( :nterest? 4 $o/alties? 5 Dividends or similar distributions? and Amount of revenue arising from e&changes of goods or services included in each significant categor/ of revenue)
Sec. 11. Revenue from on$%chan&e Transactions. $evenue of the NGAs from non#
e&change transactions are derived mostl/ from ta&es, gifts and donations, goods in kind and fines and penalties) +ost NGAs derive revenues from transactions where the/ receive resources and provide no or nominal consideration directl/ in return) These are as follows -
Ta& $evenue -Ȁ⸀HᜀHᜀ 'Ȁ⸀HᜀHᜀ (Ȁ⸀HᜀHᜀ 4Ȁ⸀HᜀHᜀ
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Ta& $evenue#:ndividual and Corporation Ta& $evenue#ropert/ Ta& $evenue#Goods and !ervices Ta& $evenue#>thers
*ines and enalties -Ȁ⸀HᜀHᜀ Ta& $evenue 'Ȁ⸀HᜀHᜀ !ervice :ncome (Ȁ⸀HᜀHᜀ Business :ncome
(
!hares, Grants and Donations
-Ȁ⸀HᜀHᜀ !hare from National @ealth 'Ȁ⸀HᜀHᜀ !hare from hilippine Amusement and Gaming Corporation 2AGC>$37 hilippine Charit/ !weepstakes >ffice 2C!>3 (Ȁ⸀HᜀHᜀ !hare from %arnings of G>CCs 4Ȁ⸀HᜀHᜀ :ncome from Grants and Donations in Cash 5Ȁ⸀HᜀHᜀ :ncome from Grants and Donations in Iind 4
$evenue from non#e&change transactions ma/ also arise when, in respect of an inflow of resources from a non#e&change transaction, the entit/ satisfies a present obligation recognized as a liabilit/ which ma/ be as follows -Ȁ⸀HᜀHᜀ Trust ther Deferred Credits (Ȁ⸀HᜀHᜀ 9nearned $evenue ; :nvestment ropert/ and >ther 9nearned $evenue Sec. 12. Reco&nition of Revenue from on$%chan&e Transactions. The cash basis of
accounting shall be applied b/ all government agencies in the recognition of revenue from non# e&change transaction until a reliable model of measurement of this revenue is developed) Therefore, asset and the corresponding revenue or liabilit/ that arises from non#e&change transaction shall be recognized when collected or when these are measurable and legall/ collectible) Ta&ation revenue shall be determined at a gross amount) :t shall not be reduced for e&penses paid through the ta& s/stem) Gifts and donations, other than services in kind shall be recognized as assets and revenue when it is probable that the future economic benefits or service potential will flow to the entit/ and shall be measured at fair value) Goods in#kind received without conditions shall be recognized as revenue immediatel/) Donation in cash or in kind shall be recognized as revenue )
Sec. 13. (easurement of Revenue from on$%chan&e Transactions ) $evenue from
non#e&change transactions shall be measured at the amount of the increase in net assets recognized b/ the entit/, unless it is also re0uired to recognize a liabilit/) @here a liabilit/ is recognized and subse0uentl/ reduced, because the ta&able event occurs, or a condition is satisfied, the amount of the reduction in the liabilit/ will be recognized as revenue) 2 Pars. " an& 9, PPSAS 233 Sec. 14. (easurement of Assets on *nitial Reco&nition from on$%chan&e Transactions ) An asset ac0uired through a non#e&change transaction shall initiall/ be measured at its fair value as at the date of ac0uisition) 2 Par. 2, PPSAS 333 Sec. 1!. (easurement of /iailities on *nitial Reco&nition. @here the time value of
mone/ is material, the liabilit/ will be measured at the present value of the amount e&pected to be re0uired to settle the obligation) 2 Par. ", PPSAS 233 Sec. 1#. Ta% Revenue. Ta&es are economic benefits or service potential compulsor/ paid
or pa/able to public sector agencies, in accordance with laws and or regulations, established to provide revenue to the government) Ta&es do not include fines or other penalties imposed for breaches of the law) 9nless otherwise specified in laws and regulations, the ta&able event for '( :ncome ta& is the earning of assessable income during the ta&ation period b/ the ta&pa/er? '4 =alue added ta& is the undertaking of ta&able activit/ during the ta&ation period b/ the ta&pa/er? '5 Goods and services ta& is the purchase or sale of ta&able goods and services during the ta&ation period? '6 Customs dut/ is the movement of dutiable goods or services across the customs boundar/? ' Death dut/ is the death of a person owning ta&able propert/? and '8 ropert/ ta& is the passing of the date on which the ta& is levied, or the period for which the ta& is levied, if the ta& is levied on a periodic basis) Sec. 1'. *llustrative Accountin& $ntries. $efer to Anne&es to N for illustrative
accounting entries) Sec. 1. Transfer of *nternal Revenue Allotment. @here an NG imposes a ta&, the
entire proceeds of which is collected b/ NGAs and transferred to
Cash#+odified Disbursement !/stem 2+D!3, $egular --44 To recognize transfer of :$A to
-,
Sec. 1. $%penses )aid Throu&h the Ta% Sstem and Ta% $%penditures. Ta&ation
revenue shall be determined at gross amount) :t shall not be reduced for e&penses paid through the ta& s/stem) %&penses of the government paid through the ta& s/stem or as reduction from ta& revenue received should not be offset or deducted from that ta& revenue) Therefore, ta&ation revenue shall be recognized at the gross amount and the e&penses deducted shall be recognized and shall form part of the statement of financial performance) %&penses paid through the ta& s/stem are those e&penses which should be paid irrespective of whether the ta&pa/er pa/ ta&es, or use a particular mechanism to pa/ ta&es) 2 Par. 1, PPSAS 23 3 Sec. 2. Ta%ation Revenue Shall ot +e Grossed 5p For the Amount of Ta% $%penditures. Ta& e&penditures are preferential provisions of the ta& law that provide certain
ta&pa/ers with concessions that are not available to others) Ta& e&penditures are foregone revenue, not e&penses, and do not give rise to inflows or outflows of resources that is, the/ do not give rise to assets, liabilities, revenue, or e&penses of the government) 2 Pars. 3 an& , 'PSAS 233 %&les are the ta& e&penditure fund, which is a subsid/ released b/ the DB+ to government#owned or controlled corporations and government financial institutions to settle customs duties and other ta&es arising from the importation of goods? and benefits granted to ta&pa/ers like the ta& credits) Sec. 21. Reco&nition of Asset throu&h Transfers. An entit/ shall recognize an asset in
respect of transfers when the transferred resources meet the definition of an asset and satisf/ the criteria for recognition as an asset) 2 Par. , PPSAS 233 '( Transfers meet the definition of an asset when the entit/ controls the resources as a result of a past event 2the transfer3, and e&pects to receive future economic benefits or service potential from those resources) Transfers satisf/ the criteria for recognition as an asset when it is probable that the inflow of resources will occur, and their fair value can be reliabl/ measured) :n certain circumstances, such as when a creditor forgives a liabilit/, a decrease in the carr/ing amount of a previousl/ recognized liabilit/ ma/ arise) :n these cases, instead of recognizing an asset as a result of the transfer, the entit/ decreases the carr/ing amount of the liabilit/) 2 Par. ", PPSAS 233
'( Transfers include grants, debt forgiveness, fines, be0uests, gifts, donations and goods and services in#kind) All of these transactions transfer resources without appro&imate e0ual value in e&change and are not ta&es but some are with conditions) '4 Transfers are established b/ a binding arrangement that includes conditions, such as inter# entit/ and intra#entit/ fund transfers '( *rom an NGA to another NGA? '4 *rom the NGA.s Central >ffice to its $egional7Bureau >ffices and >perating7*ield 9nits? '5 *rom an NGA to an CC and vice#versa? 4'
'( *rom an entit/ that is created b/ law or regulation to perform specific functions with operational autonom/? and '4 *rom donor entit/ to NGAs) '( An entit/ shall recognize an asset in respect of transfers when the transferred resources meet the definition of an asset and satisf/ the criteria for recognition as an asset) '4 An entit/ obtains control of transferred resources either when the resources have been transferred to the entit/, or the entit/ has an enforceable claim against the transferor) +an/ arrangements to transfer resources become binding on all parties before the transfer of resources takes place) 2 Par. 9, PPSAS 233 '5 Transfers of resources that satisf/ the definition of contributions from owners will not give rise to revenue) Agreements that specif/ that the entit/ providing resources 2a3 is entitled to distributions of future economic benefits or service potential during the recipient entit/.s life, or distribution of an/ e&cess of assets over liabilities in the event that the recipient entit/ is wound up, or 2b3 ac0uires a financial interest in the recipient entit/ that can be sold, e&changed, transferred or redeemed, are, in substance, agreements to make a contribution from owners) 2 Par. "0, PPSAS 23 3 Sec. 22. (easurement of Transferred Assets ) Transferred assets are measured at their fair value as at the date of ac0uisition) 2 Par. "3, PPSAS 23 3 Sec. 23. Det For&iveness and Assumption of /iailities
'(
'( *ines are recognized as revenue when the receivable meets the definition of an asset and satisfies the criteria for recognition as an asset) 2 Par. "9, PPSAS 233 '4 @here an entit/ collects fines in the capacit/ of an agent, the fine will not be recognized as revenue of the collecting entit/) 2 Par. "9, PPSAS 23 3 '5 Assets arising from fines are measured at the best estimate of the inflow of resources to the entit/) 2 Par. "9, PPSAS 233 4(
Sec. 2!. Reco&nition and (easurement of +e6uests
-
'
Be0uests which satisf/ the definition of an asset are recognized as assets and revenue when it is probable that the future economic benefits or service potential will flow to the entit/ and the fair value of the assets can be measured reliabl/) Determining the probabilit/ of an inflow of future economic benefits or service potential ma/ be problematic if a period of time elapses between the death of the testator and the entit/ receiving an/ asset) The entit/ will need to determine if the deceased person.s estate is sufficient to meet all claims on it, and satisf/ all be0uests) :f the will is disputed, this will also affect the probabilit/ of assets flowing to the entit /) 2 Par. 91, PPSAS 233
The fair value of be0ueathed assets is determined in the same manner as for gifts and donations) @here deceased estates are sub1ect to ta&ation, the ta& authorit/ ma/ alread/ have determined the fair value of the asset be0ueathed to the entit/, and this amount ma/ be available to the entit/) Be0uests are measured at the fair value of the resources received or receivable) 2 Par. 92, PPSAS 233 Sec. 2#. Reco&nition and (easurement of Gifts, Donations and Goods *n7ind
- Gifts and donations 2other than services in#kind3 are recognized as assets and revenue when it is probable that the future economic benefits or service potential will flow to the entit/ and the fair value of the assets can be measured reliabl/) @ith gifts and donations, the making of the gift or donation and the transfer of legal title are often simultaneous, in such circumstances, there is no doubt as to the future economic benefits flowing to the entit/) 2 Par. 9, PPSAS 233 ' Goods in#kind are tangible assets transferred to an entit/ in a non#e&change transaction, without charge, but ma/ be sub1ect to stipulations) %&ternal assistance provided b/ multilateral or bilateral development organizations often includes a component of goods in#kind) 2 Par. 9, PPSAS 233 ( Goods in#kind are recognized as assets when the goods are received, or there is a binding arrangement to receive the goods) :f goods in#kind are received without conditions attached, revenue is recognized immediatel/) :f conditions are attached, a liabilit/ is recognized, which is reduced and revenue recognized as the conditions are satisfied) 2 Par. 9, PPSAS 23 3 4 >n initial recognition, gifts and donations including goods in#kind are measured at their fair value as at the date of ac0uisition, which ma/ be ascertained b/ reference to an active market, or b/ appraisal) An appraisal of the value of an asset is normall/ undertaken b/ a member of the valuation profession who holds a recognized and relevant professional 0ualification) *or man/ assets, the fair value will be readil/ ascertainable b/ reference to 0uoted prices in an active and li0uid market) *or e&le, current market prices can usuall/ be obtained for land, non#specialized buildings, motor vehicles and man/ t/pes of plant and e0uipment) 2 Par. 9, PPSAS 233 Sec. 2'. Grant 0ith 8ondition) :f conditions are attached to a grant, a liabilit/ is
recognized, which is reduced and revenue recognized as the conditions are satisfied) :f the government is re0uired to recognize a liabilit/ in respect of an/ conditions relating to assets recognized as a conse0uence of specific purposes, it does not recognize revenue until the condition is satisfied and the liabilit/ is reduced) As an entit/ satisfies a present obligation recognized as a liabilit/ in respect of an inflow of resources from a non#e&change transaction 44
recognized as an asset, it shall reduce the carr/ing amount of the liabilit/ recognized and recognize an amount of revenue e0ual to that reduction) %&le The NG received a foreign grant amounting to - million for the construction of a railroad s/stem) 9nder the terms of the grant, the construction pro1ect shall be completed within a period of two /ears from the receipt of the grant, otherwise, the mone/ shall be returned to the grantor) The mone/ can onl/ be used as stipulated and the NG is re0uired to include a note in the financial statement detailing how the mone/ was spent) The Department of ublic @orks and ighwa/s 2D@3 will be the implementing entit/) The transactions shall be recognized as follows a) $eceipt of the Grant Debit Credit Account Title Account Code Books of the NG # BTr Cash in Bank#ther Deferred Credits '5-"" -,, To recognize receipt of grant directl/ credited to the account of the NG maintained b/ the B!
Books of the :mplementing NGA ; D@ Cash#+odified Disbursement -,, !/stem 2+D!3, !pecial Account --45 !ubsid/ from National Government 4(-- -,, To recognize receipt of the NCA for the construction of a railroad s/stem -
urchase of construction materials and pa/ment for labor for the construction of a railroad s/stem amounting to -,,)
Credit Account Title Debit Account Code Books of the :mplementing NGA#D@ Construction in rogress# :nfrastructure Assets -6""' -,, Cash#+odified Disbursement !/stem 2+D!3, !pecial -,, Account --45 To recognize pa/ment for the materials and labor for the construction of a railroad s/stem
Books of the NG#BTr
!ubsid/ from National Government 4(-- -,, Cash in Bank#
$eceipt of the report from D@ for the completion of the construction of a railroad s/stem amounting to -,,)
Account Title Books of the NG # BTr >ther Deferred Credits
:ncome from Grants and
Account Code
Debit
'5-"" 44'-
-,,
Credit
-,,
Donations in Cash To recognize the income from grants and donations representing pa/ment for e&penses in connection with the grant agreement) d) Turnover and Acceptance of Completed :nfrastructure Asset Debit Credit Account Title Account Code Books of the :mplementing NGA # D@ -,, $ailwa/ !/stems -6(- Construction in rogress# :nfrastructure Assets -6""' -,, To recognize the turnover and acceptance of completed railwa/ s/stem Sec. 2. Reco&nition and (easurement of Services *n7ind. These services meet the definition of an asset because the entit/ controls a resource from which future economic benefits or service potential is e&pected to flow to the entit/) These assets are, however, immediatel/ consumed and a transaction of e0ual value is also recognized to reflect the consumption of these services in#kind) 2 Par. 9", PPSAS 23 3
-
ublic sector entities ma/ be recipients of services in#kind under voluntar/ or involuntar/ schemes operated in the public interest) *or e&le - Technical assistance from other governments or international organizations? ' ersons convicted of offenses ma/ be re0uired to perform communit/ service for public sector entit/? ( ublic hospitals ma/ receive the services of volunteers? and 4 ublic schools ma/ receive voluntar/ services from parents as teachers. aides or as board members) 2 Par.100, PPSAS 233
'
Due to the man/ uncertainties surrounding services in#kind, including the abilit/ to e&ercise control over the services, and measuring the fair value of the services, the entit/ is not re0uired to recognize services in#kind as revenue and as an asset but is encouraged to disclose the nature and t/pe of services in#kind received during the reporting period) 2 Par.102, PPSAS 233 Sec. 2. Reco&nition and Disclosure of )led&es. ledges do not meet the definition of an
asset because the recipient entit/ is unable to control the access of the transferor to the future economic benefits or service potential embodied in the item pledged) Agencies do not recognize pledged items as assets or revenue) :f the pledged item is subse0uentl/ transferred to the recipient entit/, it is recognized as a gift or donation) ledges ma/ warrant disclosure as contingent assets) 2 Par. 10, PPSAS 233 Sec. 3. Advance Receipts of Revenue. @hen an entit/ receives resources before a
transfer arrangement becomes binding, the resources are recognized as an asset when the/ meet the definition and satisf/ the criteria for recognition as an asset and recognized as a liabilit/ until the event that makes the transfer arrangement binding occurs, and all other conditions under the agreement are fulfilled) @hen that event occurs and all other conditions under the agreement are fulfilled, the liabilit/ is discharged and revenue is recognized) 2 Par.10, PPSAS 233 Sec. 31. Reco&nition and (easurement of 8oncessionar /oans
The portion of the loan that is repa/able, along with an/ interest pa/ments, is an e&change transaction and is accounted for in accordance with !A! '", *inancial :nstruments $ecognition and +easurement, Chapter of this +anual)
-
An entit/ considers whether an/ difference between the transaction price 2loan proceeds3 and the fair value of the loan on initial recognition is non#e&change transaction) @hen an entit/ determines that the difference between the transaction price 2loan proceeds3 and the fair value of the loan on initial recognition is non# e&change revenue, an entit/ recognizes the difference as revenue, e&cept if a present obligation e&ists, e)g), where specific conditions imposed on the transferred assets b/ the recipient result in a present obligation) @here a present obligation e&ists, it is recognized as a liabilit/) As the entit/ satisfies the present obligation, the liabilit/ is reduced and an e0ual amount of revenue is recognized) 2 Par. 10A an& B, PPSAS 23 3
Sec. 32. Dishonored 8hec7s. A check is dishonored either b/ non#pa/ment or non#
acceptance) Dishonor b/ non#pa/ment occurs when 2a3 the check is dul/ presented for pa/ment and pa/ment is refused or cannot be obtained? or 2b3 presentment is e&cused and the check is overdue and unpaid 2 Sec. "3, +A *o. 2031, *egotia4le 'nstruents 5a6 3) Dishonor b/ non# acceptance happens when 2a3 the check is dul/ presented for acceptance, and such an acceptance as is prescribed b/ law is refused or cannot be obtained? or 2b3 presentment for acceptance is e&cused and the check is not accepted 2 Sec. 19, +A *o. 2031, *egotia4le 'nstruents 5a6 3) A dishonored check ma/ also be defined as a check paid to the agenc/ that was dishonored b/ the AGDB due to JDrawn Against :nsufficient *und 2DA:*3K or JDrawn Against 9ncleared Deposits 2DA9D3)K @hen a check drawn in favor of the government is not accepted b/ the drawee for an/ reason, the drawer shall continue to be liable for the sum due and all penalties resulting from dela/ed pa/ments) @here the reason for non#acceptance b/ the drawee bank is insufficienc/ of funds, the drawer shall be criminall/ liable therefor) $esponsibilit/ over dishonored checks -
@hen a check is dishonored b/ non#pa/ment or non#acceptance, the Collecting >fficer should issue a Notice of Dishonored Checks 2NDC3 2 A--en&ix 23 to the drawer and to each endorser, and an/ drawer or endorser to whom such notice is not given is discharged from liabilit/) The NDC shall be furnished to the Agenc/ ead, Accountant, Auditor and a cop/ thereof retained b/ the Collecting >fficer) The Collecting >fficer shall cancel the >$ covering the dishonored check) :f necessar/, the head of the agenc/ shall promptl/ institute the corresponding action for the collection of the amount involved)
'
The Collecting >fficer neglecting or failing to give the re0uired NDC to the drawer 2or to the endorser#pa/or of the government check3, who, as a result thereof, is discharged from liabilit/, shall be personall/ answerable for the resulting loss suffered b/ the government)
(
The making, drawing and issuance of a check pa/ment of which is refused b/ the drawee because of insufficient funds in or credit with such bank, when presented within ninet/ 2"3 da/s from the date of the check, shall be -ria $acie evidence of knowledge of such insufficienc/ of funds or credit unless such maker or drawer pa/s the holder thereof the amount due thereon, or makes arrangements for pa/ment in full b/ the drawee of such check within five 253 banking da/s after receiving notice that such check has not been paid b/ the drawee)
4
A dishonored check shall be settled b/ tendering pa/ment in cash or b/ certified check to the Collecting >fficer concerned) No other mode of pa/ment shall be accepted)
5
9pon settlement of the dishonored check in the manner herein prescribed, the Collecting >fficer shall not return the check to the pa/or concerned unless the latter 4
first surrenders the previous >$ therefor) :f the previous receipt is no longer available, sworn statement to the effect that it has been lost or misplaced should be submitted b/ the pa/or) 5-'
Dishonored checks shall remain in the custod/ of the Collecting >fficer, pending their redemption, unless the agenc/ head or the court shall direct otherwise, in which case appropriate receipts should be secured from the officer authorized to take custod/ of the checks) The Collecting >fficer shall immediatel/ advise the transfer of custod/ of the check)
Sec. 33. )rocedures in Recordin& Dishonored 8hec7s Area of
Se6.
Responsiilit
2o.
Cash7Treasur/ Division79nit Collecting >fficer7 Designated !taff
Activit
-
$eceives from AGDB the Debit +emo 2D+3 and copies of dishonored checks)
'
=erifies the dishonored checks against previous months. $CD7C$$ec maintained on file to ascertain that the checks were included in the previous months. collections) :f not included, verifies from AGDB the details of the dishonored checks)
(
:f dishonored checks are included in the $CDs, prepares NDC to inform the drawers7endorsers7pa/ors that the checks were dishonored b/ the AGDB) *ote 1 – The NDC shall be prepared in five copies and
distributed as follows /riginal Co-y 2 Co-y 3 Co-y Co-y
– Drawer7%ndorser 2To be delivered personall/ or thru registered mail3 – Accounting Division79nit file – Agenc/ ead.s file – C>A Auditor.s file – Cash7Treasur/ 9nit file
$etrieves from file Cop/ ( of the >$ covering the dishonored check and cancels the >$ indicating the following notation 7Cancelle& 8&ate o$ *otice o$ %ishonore& Chec)s -er Ban) %e4it :eo;oucher *o.<<<<< &ate& <<<<<<<<<=
$etrieves $CD7C$$ec on file covering the dishonored checks and stamps the following notation on the face of the report7record 7Cancelle& /+ *o. <<<<<< &ate& <<<<<<< aounting to P <<<<<<<<<<<< &ue to &ishonore& Chec) *o. <<<<<< -er Ban)>s %e4it :eo *o. <<<<<<<< &ate& <<<<<<<<<<<.=
48
*ote 2 ; :n case of collections of >9s without complete
set of books, C$$eg will be used instead of $CD7C$$ec) 6
repares list of dishonored checks in two copies) *orwards Cop/ ' of the list of dishonored checks together with originals of dishonored checks, AGDB.s Debit +emo and Cop/ ' of NDC to the Accounting Division79nit for preparation of the %=)
$eceives Cop/ ' of the list of dishonored checks, originals of dishonored checks, AGDB.s Debit +emo and Cop/ ' of NDC from the Cash7Treasur/ 9nit and records the same in the logbook maintained for the purpose)
8
Based on the list of dishonored checks, prepares the %= in two copies) !igns the Jrepared b/K portion of the %= and forwards the same to the ead of Accounting Division79nit for review and signature)
"
$eviews and signs the JCertified Correct b/K portion of the %=) *orwards the %= supported b/ Cop/ ' of the list of dishonored checks, originals of dishonored checks, AGDB.s Debit +emo and Cop/ ' of NDC to the Bookkeeper for recording in the C$)
Accounting Division79nit Accounting !taff
ead of Accounting Division79nit
*ote 3 – *or the succeeding activities, refer to Chapter -" of
this +anual for the reparation and !ubmission of Trial Balances, *inancial !tatements and >ther $eports) Sec. 34. *llustrative Accountin& $ntries for Dishonored 8hec7s
a) Collections remitted to BTr Account Title
Account Code
-) Cancellation of >$ due to Dishonored Checks >ther $eceivables -(5"" Cash#Treasur/7Agenc/ Deposit, $egular --4-
Debit
Credit
&&&
&&&
To recognize the cancellation of current /ear.s deposited collections due to
dishonored checks &&& >ther $eceivables -(5"" Accumulated !urplus72Deficit3 &&& (--- To recognize the cancellation of prior /ear.s deposited collections due to dishonored checks
4"
Account Title
Account Code
') $edemption of Dishonored Check Cash#Collecting >fficers ---- >ther $eceivables -(5"" To recognize replacement of dishonored check
Debit
Credit
&&&
&&&
Cash#Treasur/7Agenc/ Deposit, $egular --4- &&& Cash#Collecting >fficers &&& ---- To recognize the remittance of the replacement of dishonored check b) Collections deposited to AGDB Debit Credit Account Title Account Code -) Cancellation of >$ due to Dishonored Checks &&& >ther $eceivables -(5"" Cash in Bank#
') $edemption of Dishonored Check Cash#Collecting >fficers ---- >ther $eceivables -(5"" To recognize replacement of dishonored check
&&&
&&&
Cash in Bank#fficers ---- To recognize the deposit of the replacement of dishonored check
&&&
Sec. 3!. Accountin& for 8ash "vera&e-Shorta&e of 8ollectin& "fficer. Cash overage
discovered b/ the Auditor that cannot be satisfactoril/ e&plained b/ the Collecting >fficer shall be forfeited in favor of the government and an official receipt shall be issued b/ the Collecting >fficer7Cashier) The cash overage shall be taken up as +iscellaneous :ncome) Cash shortage which is not restituted b/ the Collecting >fficer despite demand in writing b/ the Auditor shall be taken up as receivable from the Collecting >fficer) Sec. 3#. *llustrative Accountin& $ntries for 8ash "vera&e-Shorta&e of 8ollectin& "fficer
a) Cash >verage Account Title Account Code Debit Cash#Collecting >fficers &&& ---- +iscellaneous :ncome 46""" To recognize forfeiture of cash overage of the Collecting >fficer Cash#Treasur/7Agenc/ Deposit, $egular --4- &&& Cash#Collecting >fficers ---- To recognize the remittance of forfeited cash overage to the BTr
Credit
&&&
&&&
Account Title Account Code Debit &&& Due from >fficers and %mplo/ees -(5' Cash#Collecting >fficers ---- To recognize cash shortage of Collecting >fficer Cash#Collecting >fficers ---- Due from >fficers and %mplo/ees -(5' To recognize restitution of cash shortage
Credit &&&
&&&
&&& Cash#Treasur/7Agenc/ Deposit, $egular --4- Cash#Collecting >fficers ---- To recognize the remittance of restituted cash shortage to the BTr
&&&
&&&
Sec. 3'. Disclosures. An entit/ shall disclose pertinent revenue transactions as follows
either on the face of, or in the notes to, the G*! - Disclosure on the face of, or in the notes to, the G*! 2ar) -6, :!A! '63 - The amount of revenue from non#e&change transactions recognized during the period '
Ta&es, showing separatel/ ma1or classes of ta&es? and Transfers, showing separatel/ ma1or classes of transfer revenue)
' The amount of receivables recognized in respect of non#e&change revenue? ( The amount of liabilities recognized in respect of transferred assets sub1ect to conditions? 4 The amount of liabilities recognized in respect of concessionar/ loans that are sub1ect to conditions on transferred assets? 5 The amount of assets recognized that are sub1ect to restrictions and the nature of those restrictions? 6 The e&istence and amounts of an/ advance receipts in respect of non#e&change transactions? and The amount of an/ liabilities forgiven) ' Disclosure in the notes to the G*! 2 Par. 10, 'PSAS 2 3 - The accounting policies adopted for the recognition of revenue from non#e&change transactions? ' *or ma1or classes of revenue from non#e&change transactions, the basis on which the fair value of inflowing resources was measured? ( *or ma1or classes of ta&ation revenue that the entit/ cannot measure reliabl/ during the period in which the ta&able event occurs, information about the nature of the ta&? and
5-
The nature and t/pe of ma1or classes of be0uests, gifts, and donations, showing separatel/ ma1or classes of goods in#kind received) -
%ntities are encouraged to disclose the nature and t/pe of ma1or classes of services in#kind received, including those not recognized) !uch disclosures ma/ assist users to make informed 1udgment about -
the contribution made b/ such services to the achievement of the entit/.s ob1ectives during the reporting period? and
'
the entit/.s dependence on such services for the achievement of its ob1ectives in the future)
Sec. 3. "ther Receipts. >ther receipts of NGAs shall be composed of, but not limited
to, the following HȀ⸀HHȀ $eceipt of NCA) The NCA specifies the ma&imum amount of withdrawal that an entit/ can make from a government bank for the period indicated) The Collecting >fficer shall not issue an >$ for the receipt of NCA) The accounting entries to recognize receipt of NCA are as follows Account Title
Account Code
Debit
$egular Cash#+odified Disbursement !/stem 2+D!3, $egular --44 -, !ubsid/ from National Government 4(-- To recognize receipt of NCA for $egular Agenc/ *und
Credit
-,
!pecial Account
Cash#+odified Disbursement !/stem 2+D!3, !pecial Account --45 -, Cash#Treasur/7Agenc/ Deposit, !pecial Account --4' -, To recognize receipt of NCA for !pecial Account in the General *und Cash#+odified Disbursement !/stem 2+D!3, Trust --46 -, Cash#Treasur/7Agenc/ Deposit, Trust --4( To recognize the receipt of NCA for Trust $eceipts *und -
-,
Non#Cash Availment Authorit/) The accounting entr/ to recognize the receipt of NCAA is as follows Account Title Account Code Accounts a/able '--- !ubsid/ from National Government 4(-- To recognize the receipt of NCAA
Debit
Credit
"5, "5,
'( Cash Disbursement Ceiling) The accounting entries for the collection of revenue of, and the constructive receipt of disbursement authorit/ to, *oreign !ervice osts 2*!s3 of D*A and D><% are as follows -) D*A and D><%.s Books Account Title
Account Code
Cash#Collecting >fficers ---- assport and =isa *ees 4'--' To recognize collection of revenue of *!s
Debit -,
Credit -,
Cash in Bank#*oreign Currenc/, Current Account --(' -, Cash#Collecting >fficers ---- -, To recognize deposit of collections to authorized servicing bank of the *!s Cash#Constructive :ncome $emittance --48 !ubsid/ from National Government 4(-- To recognize receipt of CDC from DB+
8,
8,
Luarters Allowance#Civilian 5-' 5, $ents#Buildings and !tructures 5'""5 (, Cash in Bank#*oreign Currenc/, Current Account --(' To recognize pa/ment of e&penses charged to CDC
8,
') BTr Books Account Title
Account Code
Debit
Credit
!ubsid/ to NGAs 5'-4- 8, Cash#Constructive :ncome $emittance --48 8, To recognize constructive receipt of remitted collections b/ *!s and disbursements charged to the issued CDCs to *!s '( Ta& $emittance Advice) This shall be used to recognize 2-3 in the books of national government agencies, the constructive remittance to B:$ and B>C of ta&es and customs. duties withheld, and the constructive receipt of NCA for those ta&es and customs duties? 2'3 in the books of the B:$ and B>C, the constructive receipt of ta& revenue and customs duties? and 2(3 in the books of the BTr, the constructive receipt of the ta&es and customs duties remitted) -) Ta& @ithheld b/ NGAs Account Title
Account Code
NGAs. 2withholding agenc/3 Books Cash#Ta& $emittance Advice --4
Debit
Credit
-,
!ubsid/ from National
Government 4(-- To recognize constructive receipt of NCA for T$A
-,
Account Title
Account Code
Debit
Credit
Due to B:$ ''-- -, Cash#Ta& $emittance Advice --4 -, To recognize constructive remittance to B:$ of ta&es withheld through T$A B:$ Books
Cash#Ta& $emittance Advice --4 -, :ncome Ta& 4--- -, To recognize constructive receipt of ta&es remitted b/ NGAs through T$A BTr Books
!ubsid/ to NGAs 5'-4- -, Cash#Ta& $emittance Advice --4 -, To recognize constructive receipt of remittance of ta&es b/ NGAs through T$A ') B>C Customs Duties charged to T%* Account Title
Account Code
Debit
NGAs. 2withholding agenc/3 Books +ilitar/, olice and !ecurit/ -,, %0uipment -65- Cash#+odified Disbursement !/stem 2+D!3, $egular --44 Due to NGAs ''-5 To recognize the purchase of patrol boat b/ hilippine Nav/ 2Cost"",? Customs Duties -,3
Credit
"",
-,
-, Cash#Ta& $emittance Advice --4 !ubsid/ from National -, Government 4(-- To recognize constructive receipt of NCA for customs duties charged against T%* -, Due to NGAs ''-5 -, Cash#Ta& $emittance Advice --4 To recognize constructive remittance to B>C of custom duties through T$A
B>C Books
Cash#Ta& $emittance Advice :mport Duties
-, --4 -, 4-(- To recognize constructive receipt of import duties remitted b/ NGAs through
T$A BTr Books -, !ubsid/ to NGAs 5'-4- -, Cash#Ta& $emittance Advice --4 To recognize constructive receipt of the remittance of import duties b/ NGAs through T$A
'( $eceipt of !ubsid/7Assistance from other NGAs, CCs and >ther *unds) The Collecting >fficer shall issue >$ upon receipt of cash subsid/7assistance) Account Title
Account Code
Debit
Credit
Cash#Collecting >fficers ---- -, !ubsid/ from >ther NGAs 4(-' 5, Assistance from CCs 4(-4 '5, To recognize receipt of subsid/7assistance from other government agencies Cash#Treasur/7Agenc/ Deposit, Trust --4( Cash#Collecting >fficers ---- To recognize remittance of collections to BTr
-, -,
'( $efund of e&cess cash advances granted to officers and emplo/ees) Cash advances ma/ be classified into Advances to >fficers and %mplo/ees ; for official travels? Advances for >perating %&penses ; granted to regular disbursing officer for operating e&penses of operating7field units and foreign post not maintaining complete set of books? Advances for a/roll ; for pa/ment of salaries, wages and other personnel benefits? and Advances to !pecial Disbursing >fficer 2!D>3 ; for special purpose7time#bound undertakings) Account Title
Account Code
Debit
Cash#Collecting >fficers ---- -, Advances for >perating %&penses -""-- Advances for a/roll -""-' Advances to !pecial Disbursing >fficer -""-( or Advances to >fficers and -""-4 %mplo/ees To recognize collection of refund of e&cess cash advances Cash#Treasur/7Agenc/ Deposit, --4- $egular or Cash#Treasur/7Agenc/ Deposit, --4' !pecial Account or Cash#Treasur/7Agenc/ Deposit, --4( Trust Cash#Collecting >fficers ---- To recognize remittance of collections to BTr
Credit 5,
'5, '5,
-,
-,
'( erformance bond7securit/ deposits) $eceipts of performance bond posted b/ contractor or supplier to guarant/ full and faithful performance of their contract) :t ma/ be in the form of cash or certified checks) Account Title
Account Code
Debit
Cash#Collecting >fficers ---- -, Guarant/7!ecurit/ Deposits a/able -""-- To recognize collection of performance bond7securit/ deposits Cash#Treasur/7Agenc/ Deposit, Trust --4- Cash#Collecting >fficers ---- To recognize remittance of collections to BTr
Credit
-,
-, -,
'( $efund of overpa/ment of e&penses) $eceipts of refunds from officers, emplo/ees and suppliers7creditors resulting from overpa/ment of e&penses) Account Title
Account Code
Debit
Cash#Collecting >fficers ---- -, !pecific %&pense account To recognize collection of refund of overpa/ment of e&penses)
Credit -,
Cash#Treasur/7Agenc/ Deposit, --4- $egular or Cash#Treasur/7Agenc/ Deposit, --4' -, !pecial Account or Cash#Treasur/7Agenc/ Deposit, --4( Trust Cash#Collecting >fficers ---- -, To recognize remittance of collections of refund of overpa/ment of e&penses to BTr '( Collections made on behalf of another entit/ or non#government7private organizations) $eceipts of income, receivables or trust funds for the account of other NGAs, CCs or non#government7private organizations) These collections are later remitted to the government agencies or non#government7private organizations concerned) NGAs 2other than 9niversit/ of the hilippines#
Account Code
Debit
Cash#Collecting >fficers ---- 5, Due to NGAs ''-5 To recognize collection of fees accruing to the 9#<$*
Credit 5,
Due to NGAs ''-5 5, Cash#Collecting >fficers ---- 5, To recognize remittance of collections to BTr for the account of 9#<$*
) B T r B o o k s Account Title Cash in Bank#
Trust
Account Code --'(
Debit
Credit
5,
--4(
5,
To recognize receipt of remitted collections for 9#<$* () 9#<$* Books Account Title
Account Code
Debit
Cash#Treasur/7Agenc/ Deposit, Trust --4( 5, Trust
Credit
5,
'( :ntra#agenc/ and inter#agenc/ fund transfers) Cash received from central office7regional office7operating units of an entit/ and from another entit/ for the purpose of implementing specific pro1ects) -) :ntra#entit/ *und Transfer Account Title
Account Code
Cash#Collecting >fficers ---- Due to Central >ffice '(-- or Due to Bureaus '(-' or Due to $egional >ffices '(-( or Due to >perating 9nits '(-4 or Due to >ther *unds '(-5 To recognize receipt of intra#entit/ fund transfer Cash#Treasur/7Agenc/ Deposit, Trust --4( Cash#Collecting >fficers ---- To recognize remittance of collections to BTr
Debit
Credit
5,
5,
5,
5,
') :nter#agenc/ *und Transfer Account Title
Account Code
Debit
Credit
or Due to CCs ''-6 To recognize receipt of inter#entit/ fund transfer
5,
5 Account Title Account Code Cash#Treasur/7Agenc/ Deposit, Trust --4( Cash#Collecting >fficers ---- To recognize remittance of collections to BTr
Debit
Credit
5,
5,
Sec. 3. Reportin& of 8ollections and Deposits. $eceipts and deposits shall be
reported as follows '( At the close of the business da/, the Collecting >fficers shall prepare the $eport of Collections and Deposits 2$CD3 8A--en&ix 2 for submission to Accounting >ffice79nit) The report lists all the >$s issued in numerical se0uence including cancelled ones) '4 The $CD shall be supported b/ documentar/ evidence such as duplicate copies of >$s and validated deposit slips) '5 The Collecting government entit/ issuing electronic >fficial $eceipt 2e>$3 should generate and submit dail/ to the Auditor a cop/ of the $CD) :n case the collection s/stem is not integrated with the accounting s/stem, the Accounting Division79nit shall recognize the collections and deposits based on the generated reports dul/ certified b/ the Collecting >fficer7Cashier7ead of Cash7Treasur/ 9nit) '6 *ield >ffices 2*>s37>perating 9nits 2>9s3 without complete set of books shall record their collections of income chronologicall/ in the Cash $eceipts $egister 2C$$eg3 2 A--en&ix 2. The certified cop/ of the C$$eg together with the re0uired supporting documents, duplicate copies of >$s and Deposit !lip 2D!s3 shall be submitted within five 253 da/s after the end of each month to the concerned mother unit 2central7regional7division office3 b/ the *>s 2a unit under the central7regional7 division office3 for review and recording of the transactions in the C$ b/ the Chief Accountant) Sec. 4. Detailed )rocedures for 8ollections and Deposits throu&h the 8ollectin& "fficer Area of Responsi4ilit Cash7Treasur/ 9nit
Collecting >fficer
Se6. 2o. -
'
Activit
Dail/
$eceives cash7check from pa/or representing collection based on the >rder of a/ment 2>3 2 A--en&ix 2"3 prepared b/ the Accounting Division79nit) :ssues >$ to acknowledge receipt of cash7check)
/riginal ; a/or Co-y 2 ; To be attached to the $CD7C$$eg Co-y 3 ; Cash7Treasur/ 9nit file (
$ecords collections in the Cash $eceipts $ecord 2C$$ec3 2 A--en&ix 293)
58 Area of Responsiilit
Se6. 2o. 4
Activit
repares D!s in three copies) *ote 2 ; The D!s shall be distributed as follows /riginal ; Co-y 2 ; Co-y 3 ;
5
AGDB To be attached to $CD7C$$ec Cash7Treasur/ 9nit file
Deposits collections through AGDB for the account of the National Treasurer) *ote 3 ; As prescribed in Treasur/ Circular No) (#'-4 dated
une -6, '-4, amended b/ Treasur/ Circular No) 5# '-4 dated !eptember '6, '-4, a
Based on the duplicate copies of >$s on file and validated D!s from the AGDB, prepares the $CD in four copies) :nitials on the $CD and forwards the same together with Cop/ ' of the >$s and validated D!s to the ead of the Cash7Treasur/ 9nit for review and signature)
ead of Cash7Treasur/ 9nit
$eviews and signs the $CD) *orwards original of $CD, Cop/ ' of the >$s and validated D!s to the Collecting >fficer7Designated !taff for submission to the Accounting Division79nit)
Designated !taff
8
$ecords the $CD in the logbook maintained b/ the Cash7Treasur/ 9nit and forwards the same with the cop/ ' of the >$s and validated D!s to the Accounting Division79nit for recording in the books of accounts)
Accounting Division79nit Accounting !taff
"
$eceives original of $CD with Cop/ ' of the >$s and validated D!s from the Cash7Treasur/ 9nit) $ecords receipt in the logbook maintained for the purpose and forwards the same to the Bookkeeper for review and preparation of the %=)
-
Based on the $CD, prepares %= in two copies and signs
Bookkeeper
5" Area of
Se6.
Responsi4ilit
2o.
ead7Chief Accountant
Activit
--$eviews and signs JCertified Correct b/K portion of the %=) *orwards the %= and documents to the Bookkeeper for recording in the C$) *ote ; *or the succeeding activities, refer to the
Chapter on *inancial $eporting for the preparation and submission of Trial Balances, *inancial !tatements and >ther $eports) Sec. 41. )rocedures for 8ollections throu&h AA+-AGD+ Area of
Se6.
Responsiilit
2o.
Accounting Division79nit $eceiving7 $eleasing !taff
Activit
-
$eceives the Consolidated $eport of Dail/ Collections 2C$DC3 from the AAB7AGDB) $ecords receipt in the logbook maintained for the purpose) *orwards the same to the Bookkeeper for preparation of the %=)
Bookkeeper
'
Based on the C$DC, prepares %= in two copies to recognize the collections and deposits, and signs Mrepared b/M portion of the %=) *orwards the %= and supporting documents to the Accounting Division79nit ead7Chief Accountant for review and signature)
ead7Chief Accountant
(
$eviews and signs MCertified Correct b/M portion of the %=) *orwards the %= and supporting documents to the Bookkeeper for recording in the G) *ote ; *or the succeeding activities, refer to the
Chapter on *inancial $eporting for the preparation and submission of Trial Balances, *inancial !tatements and >ther $eports)
Sec. 42. Sumission of the 9uarterl Report of Revenue and "ther Receipts.
The Chief Accountant shall prepare the Luarterl/ $eport of $evenue and >ther $eceipts 2L$$>$3 8A--en&ix 2 and submit the report to the GA!, C>A, the DB+ and the BTr within ( da/s after the end of each 0uarter) A separate report shall be prepared and
6
