Manual on the NEW GOVERNMENT ACCOUNTING SYSTEM for Local Government Units

TABLE OF CONTENTS

Sec. 41. Sec. 42. Sec. 43. Sec. 44. Sec. 45. Sec. 46. Sec. 47. Sec. 48. Sec. 49. Sec. 50. Sec. 51. Sec. 52. Sec. 53. Sec. 54. Sec. 55. Sec. 56. Sec. 57. Sec. 58. Sec. 59.

Volume II
The Accounting Books, Records, Forms and Reports
Chapter 1. The Books of Accounts, Registries and Cash Records Sec. 01. Books of Accounts 1 Sec. 02. Books of Original Entry 1 Sec. 03. General Journal 1 Sec. 04. Special Journals 1 Sec. 05. Cash Receipts Journal 2 Sec. 06. Check Disbursements Journal 2 Sec. 07. Cash Disbursements Journal 2 Sec. 08. Books of Final Entry 2 Sec. 09. General Ledger 2 Sec. 10. Subsidiary Ledger 2 Sec. 11. Supplies Ledger Card 3 Sec. 12. Work, Other Animals and Breeding Stocks Ledger Card 3 Sec. 13. Property, Plant and Equipment Ledger Card 3 Sec. 14. Investment Ledger Card 3 Sec. 15. Real Property Ledger Card 3 Chapter 2. Accounting Forms and Reports Sec. 29. Accounting Forms and Reports 8 Sec. 30. Allotment and Obligation Slip 8 Sec. 31. Journal Entry Voucher 8 Sec. 32. Disbursement Voucher 8 Sec. 33. Petty Cash Voucher 8 Sec. 34. General Payroll 8 Sec. 35. Daily Wage Payroll 8 Sec. 36. Index of Payment 9 Sec. 37. Purchase Order 9 Sec. 38. Purchase Request 9 Sec. 39. Acceptance and Inspection Report Sec. 40. Supplies Availability Inquiry 9

Requisition and Issue Slip 9 Acknowledgment Receipt for Equipment Summary of Supplies and Materials Issued Stock Card 9 Property Card 10 Work, Other Animals and Breeding Stocks Property Card 10 Check Register 10 Accountants Advice of Local Check Disbursements 10 Report of Collections and Deposits 10 Report of Accountability for Accountable Forms 11 Consolidated Report of Accountability for Accountable Forms 11 Abstract of Real Property Tax Collections Liquidation Report 12 Report of Disbursements 12 Report of Checks Issued 12 Report on the Physical Count of Inventories Report on the Physical Count of Property, Plant and Equipment 12 Waste Materials Report 12 Inventory and Inspection Report for Unserviceable Property 13

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Annex No. Page 1 General Journal (GJ) 16-17 2 Cash Receipts Journal (CRJ) 18-19 3 Check Disbursement Journal (CKDJ) 20-21 4 Cash Disbursement Journal (CDJ) 22-23 5 General Ledger (GL) 24-25 6 Subsidiary Ledger (SL) 26-27 7 Supplies Ledger Card (SLC) 28-29 8 Work, Other Animals and Breeding Stocks Ledger Card (WOABSLC) 30-31 9 Property, Plant and Equipment Ledger Card (PPELC) 32-33 10 Investment Ledger Card (ILC) 34-35 11 Real Property Ledger Card (RPLC) 36-37 12 Construction in Progress Ledger Card (CIPLC) 38-39 13 Registry of Appropriations, Allotments and

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17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

Obligations - Capital Outlay (RAAOCO) 40-41 Registry of Appropriations, Allotments and Obligations - Maintenance and Other Operating Expenses (RAAOMO) 42-43 Registry of Appropriations, Allotments and Obligations - Personal Services (RAAOPS) 44-45 Registry of Appropriations, Allotments and Obligations - Financial Expenses (RAAOFE) 46-47 Registry of Public Infrastructures (RPI) 48-49 Registry of Reforestation Project (RRP) 50-51 Cashbook Cash in Treasury (CB-CT) 52-53 Cashbook Cash in Bank (CB-CB) 54-55 Cashbook Cash Advances (CB-CA) 56-57 Allotment and Obligation Slip (ALOBS) 58-59 Journal Entry Voucher (JEV) 60-61 Disbursement Voucher (DV) 62-63 Petty Cash Voucher (PCV) 64-65 General Payroll (GP) 66-67 Daily Wage Payroll (DWP) 68-69 Index of Payment (IP) 70-71 Purchase Order (PO) 72-73 Purchase Request (PR) 74-75 Acceptance and Inspection Report (AIR) 76-77 Supplies Availability Inquiry (SAI) 78-79 Requisition and Issue Slip (RIS) 80-81 Acknowledgment Receipt for Equipment (ARE) 82-83 Summary of Supplies and Materials Issued (SSMI) 84-85 Stock Card (SC) 86-87 Property Card (PC) 88-89 Work, Other Animals and Breeding Stocks Property Card (WOABSPC) 90-91 Check Register (CR) 92-93 Accountants Advice of Local Check Disbursements 94-95 Report of Collections and Deposits (RCD) 96-98 Report of Accountability for Accountable Forms (RAAF) 99-100 Consolidated Report of Accountability for Accountable Forms (CRAAF) 101-102 Abstract of Real Property Tax Collections 103

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Liquidation Report (LR) 104-105 Report of Disbursement (RD) 106-107 Report of Checks Issued (RCI) 108-109 Report on the Physical Count of Inventories (RPCI) 110-111 Report on the Physical Count of Property, Plant and Equipment (RPCPPE) 112-113 Waste Materials Report (WMR) 114-115 Inventory and Inspection Report of Unserviceable Property (IIRUP) 116-117

Chapter 1. THE BOOKS OF ACCOUNTS, REGISTRIES AND CASH RECORDS Sec. 01. Books of Accounts. The books of accounts used by the local government unit shall consist of the following: 1. records for recording transactions in chronological order, known as the journals or books of original entry; and 2. records for classifying and summarizing the effects of the transactions on individual accounts, known as ledgers or books of final entry. Sec. 02. Books of Original Entry. Books of original entry or journals, shall be used to record in time sequence, financial transactions and information presented in duly certified and approved accounting documents. The books of original entry shall consist of the following journals: 1. General Journal 2. Special Journals a. Cash Receipts Journal b. Check Disbursements Journal c. Cash Disbursements Journal The basis of recording in the journals shall be the Journal Entry Voucher (JEV). Sec. 03. General Journal. This journal (Annex 1) shall be used to record all transactions which can not be entered in the special journals. It provides columns for the date, the JEV number, particulars which give explanation for the transactions recorded, the account code used, posting reference and the debit and credit amount. Sec. 04. Special Journals. The special journals are specifically designed to record transactions which are repetitive in nature. Special columns are provided to facilitate summation and postings in the general ledger. Sec. 05. Cash Receipts Journal (CRJ). This journal (Annex 2) is used to record all collections and deposits reported during the month. It provides columns for the date, RCD

number, JEV number, name of collecting officer, collections (debit and credit), deposits (debit and credit) and sundry columns in the collections and deposits columns (debit and credit). Sec. 06. Check Disbursements Journal (CkDJ). This journal (Annex 3) is used to record check payments made by the treasurer/cashier. It provides columns for the date, RCI number, JEV number, payee, debit and credit columns for appropriate disbursements accounts and sundry columns (debit and credit). Sec. 07. Cash Disbursements Journal (CDJ). This journal (Annex 4) is used to record all payments in cash by disbursing officers out of their cash advances. It provides columns for the date, reference/RD number, JEV number, accountable officer, debit and credit columns for appropriate disbursements accounts and sundry columns (debit and credit). Sec. 08. Books of Final Entry. The books of final entry are the General Ledger and Subsidiary Ledgers. Sec. 09. General Ledger (GL). The General Ledger (Annex 5) is a book of final entry containing accounts arranged in the same sequence as the chart of accounts. Totals of columns in the special journals and the individual entries in the General Journal are directly posted in this book. At the end of each month, the accounts are footed and at the end of the year, these are totaled, ruled and closed and the balance extracted to serve as the opening balance of the new fiscal year. Sec. 10. Subsidiary Ledger (SL). The Subsidiary Ledger (Annex 6) is a book of final entry containing the details or breakdown of the balances of the controlling account appearing in the General ledger. Postings to the subsidiary ledgers generally come from the source documents. Examples of general ledger accounts which has subsidiary ledgers are Cash Disbursing Officers, Cash in Bank Local Currency Current Accounts, Accounts Receivable, Accounts Payable, Special Accounts in the General Fund, etc. The totals of the subsidiary ledger balances shall be reconciled to their respective control account at the end of every month. Sec. 11. Supplies Ledger Card (SLC). The Supplies Ledger Card (Annex 7) is a subsidiary ledger to be maintained by the accounting office for each type of supplies, crops and other inventory items, to record acquisition, issuance and disposal. The SLC shall be the basis in filling up the Supplies Availability Inquiry (SAI). Sec. 12. Work, Other Animals and Breeding Stocks Ledger Card. The Work, Other Animals and Breeding Stocks Ledger Card (Annex 8) is a subsidiary ledger to be kept for each large cattle which includes cows, horses, mules, asses, carabaos and other members of the bovine family, acquired by purchase or raised which attained the age of one year. Small animals like pigs, goats, etc. shall also be singly recorded in this form and taken-up as inventory upon reaching marketable age or are ready for use.

Sec. 13. Property, Plant and Equipment Ledger Card (PPELC). The Property, Plant and Equipment Ledger Card (Annex 9) is a subsidiary ledger to be kept for each class of property, plant and equipment which shall record the acquisition, description, custody, estimated life, rate of depreciation, disposal and other information about the property, plant and equipment, based on the source documents of the transactions. Sec. 14. Investment Ledger Card (ILC). The Investment Ledger Card (Annex 10) is a subsidiary ledger to be kept for each type of investment which shall record the number of shares acquired, acquisition cost and other relevant information. Sec. 15. Real Property Ledger Card (RPLC). The Real Property Ledger Card (Annex 11) is a subsidiary ledger card to be kept for each real property (land) which record the property description, location, acquisition cost, additions, and disposition. Sec. 16. Construction in Progress Ledger Card (CIPLC). The Construction in Progress Ledger Card (Annex 12) is a subsidiary ledger card to be kept for each construction in progress which records the amount paid per billing of the contractor in case of construction by straight contract and the amount paid for materials, labor and overhead in case of construction by administration. Sec. 17. Registries. Registries are accounting records which shall be maintained to monitor accounts/assets not recorded in the books of accounts. Sec. 18. Registry of Appropriations, Allotments and Obligations (RAAO). The Registry of Appropriations, Allotments and Obligations is prepared per function/program/project, allotment class, current/continuing appropriations and fund. This record shall be maintained by the accounting office to monitor appropriations, allotments received and the obligations incurred against said allotments. The balance is extracted every time an entry is made to prevent incurrence of obligations in excess of allotments received or approved appropriations. The RAAOs are as follows: Registry of Appropriations, Allotments and Obligations Capital Outlay (RAAOCO); Registry of Appropriations, Allotments and Obligations Maintenance and Other Operating Expenses (RAAOMO); Registry of Appropriations, Allotments and Obligations Personal Services (RAAOPS); and Registry of Appropriations, Allotments and Obligations Financial Expenses (RAAOFE). Sec. 19. Registry of Appropriations, Allotments and Obligations Capital Outlay (RAAOCO). The Registry of Appropriations, Allotments and Obligations Capital Outlay (Annex 13) shall be used to record appropriations, allotments received and obligations incurred for capital outlay.

Sec. 20. Registry of Appropriations, Allotments and Obligations Maintenance and Other Operating Expenses (RAAOMO). The Registry of Appropriations, Allotments and Obligations Maintenance and Other Operating Expenses (Annex 14) shall be used to record appropriations, allotments received and obligations incurred for purchase of inventories and expenses classified under Maintenance and Other Operating Expenses in the Chart of Accounts. Sec. 21. Registry of Appropriations, Allotments and Obligations Personal Services (RAAOPS). The Registry of Appropriations, Allotments and Obligations Personal Services (Annex 15) shall be used to record appropriations, allotments received and obligations incurred for expenses classified under Personal Services in the Chart of Accounts. Sec. 22. Registry of Appropriations, Allotments and Obligations Financial Expenses (RAAOFE). The Registry of Appropriations, Allotments and Obligations Financial Expenses (Annex 16) shall be used to record appropriations, allotments received and obligations incurred for expenses classified under Financial Expenses in the Chart of Accounts. Sec. 23. Registry of Public Infrastructures (RPI). The Registry of Public Infrastructures (Annex 17) shall be used to record completed infrastructures for use of the general public. A separate Registry shall be maintained for each class of property or asset, as follows: Plazas, Parks and Monuments Roads Highways and Bridges Harbors, Seawalls, River Wall and Others Runways Railways Waterways, Aqueduct, etc. Irrigation canals and laterals Reforestation Projects Other Public Infrastructures. Sec. 24. Registry of Reforestation Project (RRP). The Registry of Reforestation Project (Annex 18) shall be used to record expenses incurred on reforestation projects. Sec. 25. Cash Records. Cash Records shall be used to record collections, deposits, withdrawals and disbursements of cash. It shall be maintained by the Accountable Officers. Sec. 26. Cashbook Cash in Treasury. Cashbook for Cash in Treasury (Annex 19) shall be used to record collections (Debit column) and deposits to the bank (Credit column) based on the RCD. The cashbook shall be maintained by the Treasurer by fund and shall be updated and balanced daily. The Accountable Officer shall, at the end of the month or when required to do so by proper competent authority, rule and foot the cashbook. He shall likewise accomplish the following certification in the cashbook: I HEREBY CERTIFY that the foregoing is a correct and complete record of the cash transactions had by me in my capacity as Treasurer/Cashier of ___________ during the period from ____________, 20___ to ___________, 20__, inclusive, as indicated in the corresponding columns.

Signature Over Printed Name ________________, 20___ Deposits shall also be recorded in the debit column of the Cashbook Cash in Bank. Sec. 27. Cashbook Cash in Bank. Cashbook for Cash in Bank (Annex 20) shall be used to record deposits of collections (Debit column) and withdrawals from the bank thru issuance of checks (Credit column). The cashbook shall be maintained by bank account and by fund and shall be updated and balanced daily. The Accountable Officer shall, at the end of the month or when required to do so by proper competent authority, rule and foot the cashbook. He shall likewise accomplish the following certification in the cashbook: I HEREBY CERTIFY that the foregoing is a correct and complete record of the cash transactions had by me in my capacity as Treasurer/Cashier of ___________ during the period from ____________, 20___ to ___________, 20__, inclusive, as indicated in the corresponding columns. Signature Over Printed Name ________________, 20___ Sec. 28. Cashbook Cash Advances. The accountable officer shall maintain a cashbook for cash advances (Annex 21) to record the cash advances received (Debit column) and payments, refunds and adjustments (Credit column) and the balance (Balance column). The Accountable Officer shall, at the end of the month or when required to do so by proper competent authority, rule and foot the cashbook. He shall likewise accomplish the following certification in the cashbook: I HEREBY CERTIFY that the foregoing is a correct and complete record of the cash transactions had by me in my capacity as Disbursing Officer of ___________ during the period from ____________, 20___ to ___________, 20__, inclusive, as indicated in the corresponding columns. Signature Over Printed Name ________________, 20___ Chapter 2. ACCOUNTING FORMS AND REPORTS Sec. 29. Accounting Forms and Reports. The Accounting Forms and Reports constitute the means by which financial transactions and information are reported and recorded in the journals. Sec. 30. Allotment and Obligation Slip (ALOBS). The Allotment and Obligation Slip (Annex 22) shall be used to record allotments received and to request for obligation charged

against the allotments. It shall be prepared before processing the claim to ensure that funds are available for the purpose. Sec. 31. Journal Entry Voucher (JEV). The Journal Entry Voucher (Annex 23) shall be used for all transactions of the government, whether cash receipts, cash/check disbursements or non-cash transactions. It shall be prepared by the Accounting Unit based on transaction documents presented. Accounting journal entries shall be reflected therein and it shall serve as the basis for recording the transactions in the appropriate journals. Sec. 32. Disbursement Voucher (DV). The Disbursement Voucher (Annex 24) shall be used by local government agencies for all money claims. The number shall be indicated on the DV and on every supporting document of the claim. The supporting documents shall be listed on the face of the voucher and in case more space is needed, the back of the DV shall be used. Sec. 33. Petty Cash Voucher (PCV). The Petty Cash Voucher (Annex 25) shall be used for disbursements out of the Petty Cash Funds. Sec. 34. General Payroll (GP). The General Payroll (Annex 26) shall be used for the payment of salaries, wages, overtime pay, honoraria and other emoluments of government officers and employees. Sec. 35. Daily Wage Payroll (DWP). The Daily Wage Payroll (Annex 27) shall be used for claims of laborers/casual employees and other daily wage earners. Sec. 36. Index of Payment (IP). The Index of Payment (Annex 28) shall be used to record payments made to each employee, supplier, and other agency creditor. Sec. 37. Purchase Order (PO). The Purchase Order (Annex 29) shall be used to support purchase of equipment, supplies and materials, etc. Sec. 38. Purchase Request (PR). The Purchase Request (Annex 30) shall be used to request for the purchase of inventory/item not available on stock and it shall be the basis of preparing the Purchase Order. Sec. 39. Acceptance and Inspection Report (AIR). The Acceptance and Inspection Report (Annex 31) shall be used to acknowledge the receipt of supplies and equipment purchased and inspection made thereof. Sec. 40. Supplies Availability Inquiry (SAI). The Supplies Availability Inquiry (Annex 32) shall be used to inquire the availability of supplies on stock from the Accounting Unit. Sec. 41. Requisition and Issue Slip (RIS). The Requisition and Issue Slip (Annex 33) shall be used to request supplies and materials that are carried in stock. Sec. 42. Acknowledgement Receipt for Equipment (ARE). The Acknowledgement Receipt for Equipment (Annex 34) shall be used to report on the receipt of property and equipment for official use from the Property Officer. Sec. 43. Summary of Supplies and Materials Issued (SSMI). The Summary of Supplies and Materials Issued (Annex 35) shall be prepared weekly by the Supply Officer and shall be used by the Accounting Unit as a basis in preparing the JEV to record the supplies and materials issued.

Sec. 44. Stock Card (SC). The Stock Card (Annex 36) shall be used to record all receipts and issuances of supplies. It shall be maintained by the Supply and Property Unit for each item in stock. Sec. 45. Property Card (PC). The Property Card (Annex 37) shall be used by the Supply and Property Unit to record the acquisition, description, custody, disposal and other information about the property, plant and equipment. It shall be kept for each class of property, plant and equipment. Sec. 46. Work, Other Animals and Breeding Stocks Property Card (WOABSPC). The Work, Other Animals and Breeding Stocks Property Card (Annex 38) shall be used by the Property Office to record details on the acquisition, birth of offspring and disposition of work, other animals and breeding stocks. Sec. 47. Check Register. The Check Register (Annex 39) shall be used to record all checks issued and where claimants shall be required to acknowledge receipt of the check. Sec. 48. Accountants Advice of Local Check Disbursements. An Accountants Advice of Local Check Disbursements (Annex 40) shall be prepared by the Accountant daily for each depository account, in four copies to be distributed as follows: Original Bank Duplicate Accountant Triplicate Treasurer Quadruplicate Auditor Sec. 49. Report of Collections and Deposits (RCD). The Report of Collections and Deposits (Annex 41) shall be prepared by the following: 1. Collectors for collections received and remittances made. 2. Liquidating Officers for collections received from collectors and remittances to the Treasurer/Cashier. 3. Treasurer/Cashier for collections received from liquidating officers, taxpayers and other sources and deposits to depository banks. The RCD shall consist of four (4) sections, namely: Section A for Collections; Section B for Remittances/Deposits; Section C for the Report on the Accountability for Accountable Forms; and Section D for the Summary of Collections and Remittances/ Deposits. Section A is composed of two parts: Part 1 for collections made by collecting officers as well as the type of accountable forms issued, serial numbers and amount of collections; and Part 2 for collections made by liquidating officers/treasurers from collecting officers. Section B presents remittances of collecting/liquidating officers to treasurers and deposits of treasurers to depository bank. Section C reports on the accountability for accountable forms which shall include the name of forms and number, beginning balance, received, issued and ending balance. Section D contains the summary of collections and remittances/deposits and breakdown of collections as to cash and details of checks received. The accountable officer shall certify as to the correctness of the report. The liquidating officer/treasurer shall verify the report and acknowledge receipt of collections/remittances.

The report and all supporting documents shall be submitted to the Accountant for the preparation of the JEV. Sec. 50. Report of Accountability for Accountable Forms (RAAF). The Report of Accountability for Accountable Forms (Annex 42) shall be used to report the quantity of accountable forms received, issued or cancelled by the accountable officer as of the end of the month. Treasurers/Collectors/tellers and other accountable officers shall render this report of accountability for accountable forms at the end of the month for consolidation by the local treasurer. Such report shall also be prepared in case of transfer of office or accountability by the accountable officer. Sec. 51. Consolidated Report of Accountability for Accountable Forms (CRAAF). The Consolidated Report of Accountability for Accountable Forms (Annex 43) shall be prepared by the Treasurer to consolidate the RAAF of accountable officers. The consolidated report accompanied by the individual reports shall be submitted to the unit auditor concerned for verification not later than the fifth day of the ensuing month. Sec. 52. Abstract of Real Property Tax Collections. The Abstract of Real Property Tax Collections (Annex 44) shall be prepared by the accountant to facilitate the distribution of real property tax collections. At the end of the month a copy of the abstract shall be submitted to the Provincial Accountant for reconciliation. Sec. 53. Liquidation Report (LR). The Liquidation Report (Annex 45) shall be prepared by the concerned employees/officers concerned to liquidate cash advances for travel or for other purposes except those cash advances granted to Regular/Special Disbursing Officer. Sec. 54. Report of Disbursements (RD). The Report of Disbursements (Annex 46) shall be prepared by the Accountable/Disbursing Officers to support the liquidation of their cash advances. The report shall be certified as to correctness by the Disbursing Officer and forwarded to the Accounting Unit for the preparation of the JEV. Sec. 55. Report of Checks Issued (RCI). The Report of Checks Issued (Annex 47) shall be prepared by the Cashier/Disbursing Officers daily to report checks issued during the period including cancelled ones. Sec. 56. Report on the Physical Count of Inventories (RPCI). The Report on the Physical Count of Inventories (Annex 48) shall be used to report the physical count of supplies by type of inventory as of a given date. It shows the balance of inventory items per cards and per count and shortage/overage, if any. Sec. 57. Report on the Physical Count of Property, Plant and Equipment (RPCPPE). The Report on the Physical Count of Property, Plant and Equipment (Annex 49) shall be used to report the physical count of property, plant and equipment by type as of a given date. It shows the balance of property and equipment per cards and per count and shortage/overage, if any.

Sec. 58. Waste Materials Report (WMR). The Waste Materials Report (Annex 50) shall be used to report all waste materials such as destroyed spare parts and other materials considered scrap due to replacement. Sec. 59. Inventory and Inspection Report for Unserviceable Property (IIRUP). The Inventory and Inspection Report for Unserviceable Property (Annex 51) shall be used as basis to record dropping from the books the unserviceable properties carried in the Property, Plant and Equipment and Inventory accounts.