barangay.acctg. system.edited.emr

8/10/2019 Barangay.acctg. System.edited.emr

1/104

Barangay AccountingSystem Manual

For Use by

City/MunicipalAccountants


2/104

Objectives of the Manual

1. Prescribes uniform guidelines andprocedures in accounting for barangayfunds and property;

2. Provides new coding and chart of accountsin accordance with the New GovernmentAccounting System; and

3. Prescribes accounting records to bemaintained and financial statements to berendered.


3/104

Registersand

Reports

Cash Receiptsand DepositsRegister

CashDisbursementsRegister

CheckDisbursementsRegister

Cash on Handand in BankRegister

Petty Cash FundRegister

Inspection andAcceptanceReport

Basis ofRecording

J

EVs

Books ofOriginal

Entry

GJ

Books ofFinalEntry

GLs

S

L

s

TrialBalance

Pre-andPost

Closing

TB

FinancialStatements

andSchedules

Statement ofIncome andExpenses

BalanceSheet

Statement ofCash Flows

Statement ofChanges inGovernmentEquity

Schedule of AccountsReceivableSchedule of AccountsPayable

Schedule of PublicInfrastructures/Schedule ofReforestation Projects

Registries of PI andRP

Recordi ng and Generati on of F i nan cial Statements and Reports/Schedul es

Liquida t ion Repor t


4/104

General Accounting Policies

1. Modified Accrual Accounting2. Barangay Books of Accounts

3. Bookkeeping Procedures

4. Chart of Accounts

5. Journal Entry Voucher

6. Appropriations and Commitments7. Financial Expenses

8. Petty Cash Fund


5/104


9. Payroll Fund

10. Advances to Officers and Employees

11. Recognition of Liability

12. Purchase/Issuance of Supplies &Materials

13. Depreciation of PPE

14. Public Infrastructures and ReforestationProjects


6/104


15. Reclassification of Assets16. Borrowings and Loans

17. Completed Public Infra

18. Trial Balance

19. Financial Statements and Schedules

20. Consolidation of Trial Balance and FS


7/104

RECEIPTS and DEPOSITS

1.CRDReg shows the receipts and depositsof the barangay. Recording is based on theSCD and CM.

2.SCD shall be used to ascertain thecorrectness of receipts and deposits recordedin the CHBReg

3.CHBReg shall be used in reconciling thedeposits and in the preparation of BankReconciliation Statement (BRS)

Accounting Poli cies


8/104


4. BRS- shall be prepared by the City/Municipal Accountant and shall be submitted to theCOA Auditor on or before the 20 th of the

following month.5. Interest earned on bank deposits shall be

recorded at gross.

Accounting Policies


9/104


Illustrative AccountingEntries


10/104

Acc oun t Tit le Acc ount Code Dr. Cr

Cash in Vault 101 xxx

Tax on Sand, Gravel and Other QuarryProducts 593 xxx

Income from Grants and Donations 662 xxxPermit Fees 605 xxxFines and Penalties Permits and Licenses 609 xxxClearance and Certification Fees 613 xxxGarbage Fees 616 xxx

Rent Income 642 xxxSubsidy from Other NGAs 652 xxxOther Service Income 628 xxx

To reco rd c ollect ion s fo r the period ____to____ per CRDReg No. __ ___ __ ___ _.

1. Collection of the BT as reported in CRDReg



11/104

A c c o u n t A c c o u n t

Title Cod e Dr. Cr

Cash in Vault 101 xxxDue to LGUs 418 xxx

To record co llect ions f or the period ____to_____ per CRDRegNo. ___________.

2. Collections of the BT as deputized by City/MunicipalTreasurer



12/104

Accoun t Ti t le Accoun t

Cod e Dr. Cr

Cash in Bank, Local Currency, Current Account 111 xxxCash in Vault 101 xxx

To record depo sits o f collect io ns fo r the period _________ per CRDRegNo. ___________.

3. Deposit of Collections with AGDB



13/104

Accoun t Ti t le Accoun t

Cod e Dr. Cr

Due to LGUs 418 xxxCash in Vault 101 xxx

To reco rd d epos it of c ollect ion s p er cert i f ied CRDReg No.___________

4. Remittance of collections by deputized BT to the City/Municipal Treasurer



14/104

Accoun t Tit l e Accoun t

Cod e Dr. Cr

Cash in Bank, Local Currency, Current Account 111 xxx

Internal Revenue Allotment 665 xxxReal Property Tax 588 xxx

To record barangay share f rom IRA and RPT di rec t ly depos i ted to theautho rized bank as repo rted in the CRDReg No. __________.

5.a Credit Memo from the bank for direct deposit ofbarangay share from IRA and RPT



15/104

5.b Interest on bank deposit as reflected in theBnkS/passbook

Account Title Code Dr. Cr

Cash in Bank, Local Currency, Current Account

Cash in Bank, Local Currency, Savings AccountCash in Bank, Local Currency, Time Deposit

Interest Income

111

112113664

xxx

xxxxxx

xxx

To reco rd in terest earned for th e quarter endin g _______, 2006 per bankstatement/pass bo ok for th e period _____ and in the CRDReg No. _____.



16/104

6.a Recognition of cash shortage


Loss of Assets Cash in Vault

961101

xxxxxx

To record th e shor tage incurred by the BT dur ing the cash examinat ionconducted on ____ per COA Auditors report.

6.b Set-up of accountability of BT for the cash shortage incurred


Due from Officers and EmployeesOther Deferred Credits

123455

xxxxxx

To record th e accou ntabi l i ty o f the BT over the cash shor tage incurred .

Cash Shortage


17/104

6.c Receipt of COA Decision granting relief to the BT for the cashshortage


Other Deferred Credits Due from Officers and Employees

455123

xxxxxx

To c lose the rece ivable and o ther d efer red credi t s acco unts due to COADecision No. ___ dated ____ grantin g rel ief to the BT for the sho rtageincurred .

6.d Receipt of payment of cash shortage due to COA Decisiondenying the request for relief from cash accountability


Cash in Vault Due from Officers and Employees

101123

xxxxxx

To record payment m ade by the BT for s hor tage incurred per CRDReg No.(OR No.__ dated __ ) as the request for r el ief from cash acc ou ntabil i ty wasdenied per COA Decision No___ dated ___ .

Cash Shortage


18/104

6.e Adjustment of Other Deferred Credits Account


Other Deferred Credits Miscellaneous Income

455678

xxxxxx

To adjust the deferred credits account due to COAs denial of thereques t for re lie f f rom cash accoun tabi l ity and paym ent by AO of theshor tage .

Cash Shortage


19/104

7.a Receipt of BnkS with Debit Memo (DM) and original of thedishonored check


Other Receivables Cash in Bank, Local Currency, Current Account

149111

xxxxxx

To record receipt of DM for ch eck no .___ dated___ paid by ____which was d i shonored and r etu rned by the bank .

7.b Receipt of payment for the dishonored check


Cash in Vault Other Receivables

101149

xxxxxx

To record the rece ip t o f paym ent rece ived equivalent to th edis ho no red ch eck p er CRDReg No. __ (OR No.__ dated __).

Dishonered Check


20/104

8.a Proceeds received by the BT


Cash in Vault Interest ExpenseBank Charges

Loans Payable - Domestic

101975971444

xxxxxxxxx

xxx

To record the proceeds of loan secured f rom the___ (name of th e

bank /lendin g ins t i tut ion ) as per SB Resolutio n No___ dated___ net ofthe bank c harges and in terest charg ed thereon p er CRDReg No___ (ORNo___ d ated___).

Receipt of proceeds fromborrowings and other loans


21/104

8.b Proceeds directly credited to the bank account of the barangay


Cash in Bank, LCCA Interest ExpenseBank Charges

Loans Payable - Domestic

111975971444

xxxxxxxxx

xxx

To record the pro ceeds of loan secured f rom the (name of thebank/lendin g ins t i tut ion ) per SB Resolut ion No.___ dated ___ net of thebank c harges and interest ch arged thereon per CRDReg No. ____ (CMdated___).

Receipt of proceeds fromborrowings and other loans


22/104

9.a Refund of Payroll Fund


Cash in Vault Payroll Fund

101106

xxxxxx

To record the refund o f the BT of u ncla imed s a lar ies /hon orar ia perCRDReg No___ (OR No______ dated _____).

9.b Refund of cash advances for travel

Account Title Code Dr. Cr Cash in Vault

Advances to Officers and Employees101148

xxxxxx

To record the refund of excess c ash advances g iven to th e PB foroffi cial travel to Manila per CRDReg No.___(OR No_____ dated _______).

Refund of excess cash advancefrom officers and employees


23/104

10. Receipt of Performance Bond (cash)

Account Title Code Dr. Cr Cash in Vault

Performance/Bidders/Bail Bonds Payable101427

xxxxxx

To record the receip t of c ash bo nd f ro m supp l ier ____ per CRDRegNo . ____ (OR No ____ dat ed ____).

Performance Bond (Cash)


24/104

11. Receipt on settlement of audit disallowances


Cash in Vault Receivables Disallowances/Charges

101146

xxxxxx

To record th e payment of audit dis al lowanc es/charges by Mr.____asper CRDReg No______ (Aud it Charg e No______ dated ______ and OR No

__ __ ___ d ated ____ _ ).

Settlement of Audit disallowanaces


25/104


26/104

13. Refund of PCF balance due to resignation/replacement of PettyCash Fund Custodian (PCFC)


Cash in Vault Petty Cash Fund 101104 xxx xxx

To recor d the refun d of PCF balance due to resign ation o f the PCFC,as p er CRDReg No ____ (OR No____ dated ____) and PCFReg No .___ .

Refund of petty Cash


27/104

14. Receipt of financial assistance from the city/municipality/province


Cash in Bank, LCCA Subsidy from Other LGUs

111656

xxxxxx

To record th e receip t of CM for the sub s idy g iven by the c i ty /mu nic ipa l i ty /prov ince of ______

15. Receipt of financial assistance from National GovernmentAgencies, ex: from PDAF of Congressmen or Senators


Cash in VaultCash In Bank, LCCA

Subsidy from Other NGAs

101111652

xxxxxx

xxx

To record the receip t of subs idy f ro m agency sp onso red by

Cong ressm en o r Senators _______________.

Financial Assitance


28/104

16. . Receipt of PPE from National Government Agencies, ex: fromPDAF of Congressmen or Senators


Property Plant and Equipment (Specific PPE Account)Income from Grants and Donations

???662

xxxxxx

To record th e rece ip t of PPE f rom agency spo nso red byCongressm en or Senators .

17. . Receipt of PPE donated by private entities


Property Plant and Equipment (Specific PPE Account)Income from Grants and Donations

???662

xxxxxx

To record the receipt of PPE from priv ate enti t ies

Financial Assistance


29/104

PPROPRI TIONSND COMMITMENTS


30/104

1. Yearly, the SACB of eachbarangay for the five fundsshall be consolidated by fundfor submission to the DBM and

COA.

Accounting Policies

Appropriations and Commitments


31/104

2. The City/Municipal Budget Officer shall prepare the CSACB( Appendix7 ) of all barangays underthe city/municipality in 3 copies.

Accounting Policies



32/104

3. CSACB shall be submitted to the following officeswithin sixty (60) days after the 31 st of December

1. GAFMIS, COA thru the Audit Team Leader/Auditor

2. DBM thru its regional offices

3. City/Municipal Budget Officer file

Accounting Policies

The report for submission to COA shall be prepared inprinted and digital copies (diskette or compact disc).



33/104

DISBURSEMENTS


34/104

1. Disbursements by checks and in

cash shall be recorded in the booksbased on the certified CKDReg andCDReg submitted by the BRK to theCity/Municipal Accountant on orbefore the 5 th day of the followingmonth.

Accounting Policies

Disbursements


35/104

2. Taxes withheld from interest earnedon bank deposits reported in thebank statement/passbook shall beaccounted for as expense and shallbe covered by an appropriation;

Accounti ng Policies

Disbursements


36/104

3. The CDReg and the Petty CashFund Register (PCFReg) shallbe used as reference in postingthe transaction in the SL

maintained for the AOs; and

Accounting Policies

Disbursements


37/104

4. At year end, expenses forunreplenished PCF reflected inthe PCFReg shall be recordedthru a JEV

Accounti ng Poli cies

Disbursements


38/104

Illustrative ccountingEntries

Disbursements by Checks


39/104

1. Disbursements as recapitulated in the CkDReg


Payroll FundAdvances to Officers and EmployeesHonoraria

Traveling Expenses - LocalTraining ExpensesOffice Supplies ExpensesElectricity ExpensesWater ExpensesTelephone Expenses, Landline

Cash in Bank, LCCA

106148720

751753755767766772111

xxxxxxxxx

xxxxxxxxxxxxxxxxxxxxx

xxx

To record ch ecks i ssued per cer t i f ied CkDReg No. ___ for

_____, 2007.



40/104

2. Cash purchase of office equipmentAccount Title Code Dr. Cr

Office Equipment Cash in Bank, LCCA Due to BIR

221111412

xxxxxx xxx

To record the purc hase of off ice equ ipm ent per CkDRegNo .__ (Ch eck No. __ dated __).

3. Remittance of taxes withheld to Bureau of Internal Revenue (BIR)


Due to BIRCash in Bank, LCCA

412111

xxxxxx

To record the remit tance of taxes w i thheld to the BIR perCkDReg No. __ (Check No . __ dated __).



41/104

4. Establishment of the PCF


Petty Cash FundCash in Bank, LCCA

104111

xxxxxx

To record the grant o f PCF per SB Reso lut ion No.___ dated ____an d Ck DReg No . _____ (C h ec k No . ___ d ated __ ).



42/104


43/104

6. Payment of Accounts Payable

Account Title Code Dr. Cr Accounts Payable

Cash in Bank, LCCA Due to BIR

401111412

xxxxxx xxx

To record paym ent of accou nts p ayable per CkDReg No.____

(Check No ______ dated _____).

7. Payment of repairs and maintenance of motor vehicles


Repairs and Maintenance - Motor VehiclesCash in Bank, LCCA Due to BIR

841111412

xxxxxx xxx

To record p ayment o f r epa ir s and m ain tenance o f m otor

vehi cles per CkDReg No. _____ (Check No ____ dated ____ )




44/104

8.a Lost/Spoiled/Stale check for replacement


Cash in Bank, LCCA Accounts Payable (or appropriate

liability account previously debited)

111

401

xxx

xxx

To record the receipt of o r ig inal los t /spo i led/s ta le Check No.

___ d ated ____ is s u ed in fav o r o f ____ (s to p p ag e o f p ay m en tissu ed to the bank) and request for replacement .

Disbursements by ChecksOther Related Transactions



45/104

8.b Replacement of the check


Accounts Payable (or appropriateliability account previously restored)

Cash in Bank, LCCA 401111

xxxxxx

To reco rd th e replac emen t of Chec k No .__ dated ____

repo rted lo st / spo iled/stale per CkDReg No .__ (Check No.__dated ___).




46/104

8.c Taxes withheld by the bank (per bank statement)


Taxes, Duties and Licenses Cash in Bank, LCCACash in Bank, LCSACash in Bank, LCTD

891111112113

xxxxxxxxxxxx

To record taxes wi th held by th e bank f rom th e in teres t

earned on depos i t s .




47/104

8.d Prior years expenses


Prior Years adjustments Cash in Bank, LCCA

684111

xxxxxx

To record payment of unrecorded prior years expenses perCkDReg No .___ (Check . No.___ dated __ ).



48/104

Pro-forma Accounting Entries


Salaries and Wages RegularSalaries and Wages CasualHonoraria

Payroll Fund

Due to BIR

701705720106

412

xxxxxxxxx

xxx

xxx

To record the paym ent of s a lar ies and ho norar ia per cer t i f ied CDRegNo. _______.

1. Payment of salaries and honorarium (per recapitulation in theCDReg)

Accounting for Payroll Fund


49/104

1. Supplies and materials purchased shall bedirectly charged to appropriate supplies andmaterials expense account.

2. Small items like stapler, puncher, ruler,mechanical tools, and other barangaysupplies, with a life of more than one year,

but small enough to be considered as PPE,shall be classified as expense uponpurchase.

Accounting Policies

Supplies and Materials


50/104

3. The disposal of obsolete supplies andmaterials and unserviceable small items

shall be covered by Inventory andInspection Report of UnserviceableProperty (IIRUP).

4. Cost of transporting supplies andmaterials to the barangay shall becharged to Delivery Expense account.

Accounting Policies



51/104

IllustrativeAccounting

Entries



52/104

1a. Purchase of Supplies and Materials and smalltangible items


a. Purchase on account covered by IAR

Office Supplies ExpensesAccountable Forms ExpensesDrugs and Medicines ExpensesMilitary and Police Supplies ExpensesOther Supplies Expenses

Accounts Payable

755756759764765401

xxxxxxxxxxxxxxx

xxx

To record the i tems received per IAR and se t up thecor respond ing l i ab i l i ty.



53/104

1b. Purchase of Supplies and Materials


b. Cash Purchases

Office Supplies ExpensesAccountable Forms ExpensesDrugs and Medicines ExpensesMilitary and Police Supplies ExpensesOther Supplies Expenses

Due to BIRCash in Bank LCCA

755756759764765

412111

xxxxxxxxxxxxxxx

xxxxxx

To record pu rchases o n cash CKD Reg No. (CheckNo.___dated____.


S li d M i l


54/104

2. Receipt of supplies and materials as financialassistance from private parties.


Office Supplies ExpensesDrugs and Medicines Expenses

Income from Grants and Donations

755759662

xxxxxx

xxx

To record the i tems received f rom pr ivate ent i t ies



55/104

3. Receipt of supplies and materials as subsidy from thecity/municipality/province.


Office Supplies ExpensesDrugs and Medicines Expenses

Subsidy from other LGUs

755759656

xxxxxx

xxx

To record the i tem s received f rom thec i ty /munic ipa l i ty /p rov ince .



56/104

4. Proceeds from sale of obsolete supplies, materials andunserviceable items.


Cash in VaultMiscellaneous Income

101678

xxxxxx

To record sale of obsolete supplies, materials andunserviceable items per CRDreg No. ___dated____.


P t Pl t d E i t


57/104

1.Cost of PPE includespurchase cost or invoice costand all incidental costs

Accounti ng Policies

Property, Plant and Equipment

P t Pl t d E i t


58/104

2. Cost of assets under construction shall

include all costs incurred duringconstruction.

Expenses incur red after the completion of the projectsshall be charged to operation

Accounting Policies


Property Plant and Equipment


59/104

Accounting Policies

3. All projects under construction shall berecorded under Construction inProgress Agency Assets.

Upon completion, it shall be closed andrecorded in its appropriate PPE account




60/104

Accounting Policies

4. All PPE except land shall be subject to

depreciation. A 10% residual value shall beset aside in computing the depreciationusing the straight line method.

5. Depreciation shall start on the monthfollowing the month of purchase orcompletion of the project.



61/104

Property No. ofyearsLAND IMPROVEMENTS

Land Improvements 10BUILDINGS - those that are predominantlyWood 10Mixed 20Concrete 30

LEASEHOLD IMPROVEMENTS (Note 1)Land 10Buildings

Wood 10Mixed 20Concrete 30

OFFICE EQUIPMENT, FURNITURE ANDFIXTURES

Office Equipment 5Furniture and Fixtures 10IT Equipment Hardware 5Library Books 5

Estimated Useful Lives of PPE (COA Circular No. 2003-007 dated December

11, 2003)

Estimated Useful lives of PPE


62/104

(COA Circular No. 2003-007 dated December 11, 2003)

Property No. of

yearsMACHINERIES AND EQUIPMENTMachinery 10

Agricultural, Fishery and Forestry 10Communication Equipment 10Construction and Heavy Equipment 10Firefighting Equipment and Accessories 7Medical, Dental and Laboratory Equipment 10Military and Police Equipment 10Sports Equipment 10Technical and Scientific Equipment 10Other Machineries and Equipment 10

TRANSPORTATION EQUIPMENTMotor Vehicles 7Watercrafts 10

Other Transportation Equipment 10OTHER PROPERTY, PLANT ANDEQUIPMENT

5

Note 1Th e estimated useful l i fe shal l depend on the length of thelease. I t shall be the per iod of the lease or the estimateduseful l i fe of the assets, as given, whi chever is lower .



63/104

Accounting Policies

6. Fully depreciated PPE which are still in

operation shall remain as PPE for balancesheet presentation

7. Disposal of unserviceable PPE shall becovered by IIRUP. The same shall bedropped from the books only after itsdisposal



64/104



65/104

Accounting Policies

10. Lost PPE shall be dropped from the books uponreceipt of the notice of loss. The loss shall be

charged to account Loss of Assets at an amountequal to the net book value.

Sample Computation:Cost of motor vehicle P400,000

Accumulated Depreciation 257,000Net Book Value or Loss of Assets P143,000




66/104

Accounting Policies

11. The accountability of the AO over the loss ofdepreciable asset shall be based on the sound value.

The sound value shall be computed by deducting theestimated depreciation of the lost asset based on thereplacement cost.

Sample Computation:Replacement Cost P500,000

Accumulated Depreciation 321,000Net Book Value or Sound Value P179,000




67/104

Accounting Policies

12. Repairs and maintenance of equipment shall becharged to account Repairs and Maintenance of the

specific equipment. Major repairs which resulted inincreased economic benefits or service potential shallbe added to its carrying amount ( Item 7.3 of the PhilippineGovernment Accounting Standards, COA Resolution No. 2006-006

dated January 31, 2006. )




68/104

Pro-formaAccounting

Entries


Purchase of PPE


69/104


Office EquipmentIT EquipmentMotor Vehicles

Accounts Payable

221223241401

xxxxxxxxx

xxx

To record the del ivery and receipt o f PPE per IAR No . __ and

Inv oic e No, ___ dated _____.

a. On account covered by IAR

Purchase of PPE


70/104


Depreciation - Office EquipmentDepreciation - Motor Vehicles

Accum. Depreciation - Office EquipmentAccum. Depreciation - Motor Vehicles

921941321341

xxxxxx

xxxxxx

To record deprecia t ion expens e for the mo nth of _______


71/104


Cash in VaultAccum. Depreciation - Motor Vehicles

Gain/Loss on Sale of Disposed AssetsMotor Vehicles

101341682241

xxxxxx

xxxxxx

To record sa le of un serviceable moto r vehic le a t less than netbo ok valu e per CRDReg. No. _________

a. Disposal thru sale (less than net book value)


72/104


Cash in VaultAccum. Depreciation - Motor VehiclesGain/Loss on Sale of Disposed Assets

Motor Vehicle

101341682241

xxxxxxxxx

xxx


b. Disposal thru sale (above net book value)


DonationsAccum. Depreciation - Motor Vehicles

Motor Vehicles

878341241

xxxxxx

xxx


c. Disposal thru donation


73/104


Repairs and Maintenance Office EquipmentRepairs and Maintenance IT EquipmentRepairs and Maintenance Motor Vehicles

Cash in Bank, LCCA

821823841111

xxxxxxxxx

xxx

To record paym ent of repai rs and m aintenanc e of PPE perCkDReg No . (Check No . ______dated ____)


74/104


Loss of AssetsAccum. Depreciation - Motor Vehicles

Motor Vehicles

961341241

xxxxxx

xxx

To record loss of m oto r vehic le (ex . Own er Typ e Jeepn eySWK722 of th e barang ay per not ic e of loss and p ol ice repor t ____dated _____.

a. Recording of the loss


Due from Officers and EmployeesOther Deferred Credits

123455

xxxxxx

To se t up the acco un tabi l i ty of the accou ntable off icer for the

los t mo tor veh ic le.

b. Setting up of the accountability of the accountableofficer for loss of motor vehicle


75/104


Other Deferred CreditsDue from Officers and Employees

455123

xxxxxx

To adjus t the journ al ent ry made taking up th e accou ntabi l i ty ofthe accoun tab le o ffi ce r fo r the los t m otor v eh ic le based on COADecis io n No . ____ dated grant ing re l ief f rom pro per tyaccoun tab i l i ty

c. Receipt of COA Decision granting the AO relief from propertyaccountability

d. Receipt of COA Decision denying the request of the AO forrelief from property accountability

NO ENTRY


76/104


Cash in VaultDue from Officers and Employees

101123

xxxxxx

To record th e receipt of paym ent for los t m oto r vehic le perCRDReg No . ____________

e. Receipt of payment of AO for property lost


Other Deferred CreditsMiscellaneous Income

455678

xxxxxx

To adjus t Other Deferred Credi ts acco un t and recog nizeincom e due to paym ent by the AO.

f. Adjustment of account Other Deferred Credits


77/104

PUBLICINFR STRUCTURES

NDREFOREST TION

PROJECTS

Pubic Infrastructures andReforestation Projects


78/104

1. All costs incurred on the construction ofPublic Infrastructures and ReforestationProjects shall be part of the cost of theproject,

Expenses incurred after the completion shall

be charged to operation

Accounting Policies

Reforestation Projects



79/104

2. All projects under construction shall be recordedunder the specific Construction in Progress Public Infrastructures and Construction inProgress Reforestation Project accounts.

Upon completion, it shall be transferred to the specificPublic Infrastructures and Reforestation Projects accounts

Accounting Policies




80/104

3. Completed Public Infrastructures and ReforestationProjects during the year shall be transferred to theappropriate Registry of Public Infrastructures andReforestation Projects at yearend

4. A separate Registry shall be maintained for eachPublic Infrastructures and Reforestation projects tomonitor its status, cost and cumulative cost ofrepairs and maintenance

5. All public infrastructures and reforestation projectsare not subject to depreciation

Accounting Policies




81/104

6. Repairs and maintenance of public infrastructuresand reforestation projects shall be charged to theappropriate repairs and maintenance expenseaccount of the specific projects; and

7. The total cost of each public infrastructures andreforestation projects shall be disclosed in theNotes to Financial Statements

Accounting Policies




82/104

4. Transfer of Public Infrastructures and Reforestation Projects tothe Registries at year end


a. Public Infrastructures

Government equityRoads, Highways and Bridges

501251

xxxxxx

To record t rans fer of the co m pleted road to the Regis t ry ofPubl ic Infras t ruc ture Roads , Highw ays and Br idg es a t

yearend.




83/104

4. Transfer of Public Infrastructures and Reforestation Projects tothe Registries at year end


b. Reforestation Projects

Government EquityReforestation Upland

501261

xxxxxx

To record t rans fer of the co m pleted refores ta t ion pro jec t to

the Regis t ry of Refores ta t ion Projec ts a t yearend .




84/104

5. Repairs and Maintenance


a. Public Infrastructures

Repairs and Maintenance Roads Highways andBridges

Cash in Bank LCCA

851111

xxxxxx

To record th e cos t of repai rs of Barangay roads .


Monitoring of Barangay PublicInfrastructures And reforestation Projects


85/104

Monitoring of Barangay Public Infrastructuresand Reforestation Projects

To monitor the cost including repair and maintenanceincur red on these projects, separate registr ies shall be

main tained for each specif ic publi c infrastructur es andreforestation projects. The registr ies shall include, butare not li mi ted to the following:

1. Registry of Public Infrastructures (RPI) Roads ( A p p e n d i x 8 )

2. Registry of Public Infrastructures (RPI) Bridges3. Registry of Public Infrastructures (RPI) Parks4. Registry of Public Infrastructures (RPI) Monuments5. Registry of Reforestation Projects (RRP) (A p p e n d i x 9 )

Infrastructures And reforestation Projects

Trial Balance


86/104

Trial Balance is a list of all the accounts withbalances in the GL. The accounts shall be listedfollowing the sequence in the chart of accounts.The TB is prepared to check the equality of thedebit and credit balances of all GL accounts as ofa given period and to serve as basis for thepreparation of Financial Statements (FS).

Submission of Trial Balance


87/104

Trial Balances (TBs) shall be submitted within thirty (30) daysafter the close of each month. The yearend Pre-Closing andPost-Closing TBs shall be submitted on or before February 14of each year. The Trial Balances shall be prepared in fourcopies to be distributed as follows:

Original COA Auditor who has supervision over theCity/Municipality where the barangay is located

2nd copy Sangguniang Barangay3rd copy PB/BRK4th copy City/Municipal Accountant

Closing Entries


88/104

Clos in g Ent r ies

1. Income Accounts2. Expense Accounts3. Income and Expense Summary

Closing Entries


89/104

4. Prior Years Adjustments 5. Retained Operating

Surplus6. Transfer of PI and RP to

the Registries

Working Trial Balance


90/104

Tool for sorting and accumulatinginformation needed for thepreparation of the financial

statements. It is a columnar sheetused to adjust and close the accountbalances.


91/104

Financial Statements


92/104

Balance SheetStatement of Income and Expenses

Statement of Changes inGovernment Equity

Statement of Cash Flows

Balance Sheet, Defined


93/104

Balance Sheet (BS) is a formal statementshowing the financial condition of the barangayas of a particular date. It shows information on

the three elements of financial position, namely:assets, liabilities and government equity. It shallbe prepared based on information taken from theyearend Post Closing TB. Samples of the BS indetailed and condensed formats are shown inAp pendices 12 and 13 .


94/104

Statement of Cash Flows, Defined


95/104

Statement of Cash Flows (SCF) is a statementsummarizing all cash transactions of thebarangay. It shall be prepared using the DirectMethod. It shows the amount of cash receivedand disbursed for the operating, investing andfinancing activities and the net cash providedby/(used in) each activity as of a given date. Theending balance of SCF should tally with the cash

balance per BS. A sample of the SCF is shown inAp pendix 16 .


96/104

Supporting Schedules


97/104

Schedule of Public InfrastructuresSchedule of Reforestation Projects

Schedule of Accounts ReceivableSchedule of Accounts Payable

Other Schedules that may be required

Notes to Financial Statements


98/104

Notes to Financial Statements shall be made anintegral part of the FSs. The disclosures pertainto additional information to enhance the value of

financial data in the FSs. These may explaininformation that cannot be expressed in moneyterms and description of present accountingpolicies.

Distribution of reports


99/104

Original - COA Auditor who has supervisionover the City/Municipality wherethe barangay is located

2nd Copy - Sangguniang Barangay 3 rd Copy - PB/BRK4 th Copy - City/Municipal Accountant

Statement of ManagementResponsibility


100/104

The FSs shall be supported with theStatement of Management Responsibility forthe Financial Statements ( Ap pendix 22 ).

p y


101/104

Consolidation of Financial Statements


102/104

The City/Municipal Accountant shall consolidate the followingFSs and schedules of all barangays under the city/municipalityat yearend.

a. Detailed and Condensed Balance Sheetb. Detailed and Condensed Statement of Income and

Expensesc. Statement of Cash Flows (Direct Method)d. Statement of Changes in Government Equitye. Schedule of Infrastructure Projects and Reforestation

Projects (if applicable)f. Schedule of Accounts Receivableg. Schedule of Accounts Payable


103/104

Submission of Consolidated TBs and FSs.The City/Municipal Accountant shall submit the

Consolidated TBs and FSs for Barangays together with those of theCity/Municipality to the GAFMIS Sector, Commission on Audit,

Central Office, and COA Auditor/ATL in printed and digital copieswithin 60 days after the 31 st of December.


104/104

barangay.acctg. system.edited.emr

Documents