Receipts and Deposits

Appropriations and Commitments

Disbursements

Supplies and Materials, Property, Plant and
Equipment, Public Infrastructures and
Reforestation Projects


1. Share in National and Local Taxes/Revenues
* IRA (Internal Revenue Allotment)
* Real Property Taxes
* Community Tax

2. Barangay Fees and Taxes
* Fees imposed on peddlers, parking, clearance,
certification, use of barangay properties.
* Taxes imposed on stores/retailers within the
barangay
* Penalties for violation of brgy. Ordinance




3. Other Fees and Charges
* Operation of places of recreation, etc.
* Fund raising activities
* Charges on billboards and signboards
* Use of barangay-operated markets and
waterworks systems
* Operation of other barangay economic
enterprises
4. Other Sources
* Subsidies/financial assistance from national
government, provinces and cities.
* Proceeds from loans, sale of PPEs
* Receipt of payment for lost properties
* Grants and donations received
* Dividend/interest from investments.
Basic Policies
- The Barangay Treasurer shall be responsible in handling collections of
income and other receipts of the barangay and the deposit of the
same with Authorized Govt depository Bank (AGDB)

- All collections shall be acknowledged by the issuance of a pre-
numbered Official Receipt (OR) Accountable Form 51, and
Community Tax Certificate (CTC); subject to proper custody,
accountability and audit

- Temporary or provisional receipts shall not be issued to acknowledge
collections

- Endorsed checks shall not be accepted as payment of obligations to
the barangay
Basic Policies
- Overages discovered during the cash count shall be receipted
and added to the accountability of the BT

- Cash shortages, including loss through force majeure, theft,
robbery, etc. shall be deducted from the total cash account
and the BT shall be held personally accountable , pending the
result of the Request for Relief from Cash Accountability
submitted to the COA
Basic Policies


- The BT shall deposit all his collections with AGDB intact daily
or not later than the following banking day. In case of
barangay where travel time to the bank is more than one day,
deposit of collections shall be made at least once a week or as
soon as the collections reach P10,000.00.


- Certificate of time deposit/bank book shall be in the name of
the barangay.


All disbursements of public funds, except those received for
specific purposes, shall be covered by an approved
General Appropriations Ordinance (GAO) authorizing
appropriation for the annual budget, the expenditure
items of which shall be in accordance with Phil. Govt
Chart of Accounts under NGAS, in no case shall
commitments exceed the approved appropriations.
The Kagawad, designated as the Chairman of the
Committee on Appropriations shall be responsible in
controlling the approved appropriations and the
charges/commitments made against the following
funds:

General Fund
20% Development Fund
Calamity Fund
Sangguniang Kabataan Fund
Gender and Development Fund

The CCA shall monitor the use of appropriated
funds thru the Registry of Appropriations and
Commitments (RAC) maintained by fund and by
class.

* The Barangay Treasurer shall prepare the RAC.

* Separate RAC shall be maintained for each
fund.

* Charges (deductions) against the appropriated
funds shall be based on the commitments as
shown in the DV/payroll/ contract/PO/Purchase
Request.
* Expenses for Personal Services(PS) and
Maintenance and Other Operating Expenses
(MOOE) shall be charged against respective
appropriation; and

* Investments, purchase of Property, Plant and
Equipment (PPE) and construction of Public
Infrastructures shall be charged against the
appropriations for capital outlay.

All disbursements of public funds are required to be
supported by documents necessary to prove their validity,
propriety and legality.

1. Disbursements by check

2. Disbursements out of cash advance for payroll

3. Disbursements out of cash advance for travel and special purpose

4. Disbursements out of the petty cash fund

All claims shall be approved by the Punong Barangay and
certified as to the validity, propriety and legality of the claim.
Republic Act 9184 The Government Procurement Reform
Act (prescribes the rules and regulations for procurement
activities of the government)

BAC Bids and Awards Committee (responsible for ensuring
that the barangay abides by the standards set forth by RA
9184 and its IRR)


It is the policy of the government that procurement of
infrastructure projects, goods and consulting services shall
be competitive and transparent, and therefore through
public bidding.
Alternative methods of procurement shall be resorted to
only in the highly exceptional cases.

1. Limited source bidding highly specialized goods

2. Direct contracting items proprietary in nature

3. Repeat order

4. Shopping immediate purchase; not exceeding 50,000

5. Negotiated procurement


Negotiated procurement the procuring entity directly
negotiates a contract with a legitimate supplier in any of
the following cases:

- two failed biddings

- emergency cases

- small value procurement (not more than P50,000)

- lease of real property



The basic supporting documents for typical
barangay disbursements include, but are not limited to
the following:

1. For payment of honoraria/salaries and other PS:
- approved payroll supported by DTRs
- approved appointment, oath of office, certificate
of assumption of office and statement of assets and
liabilities
- approved application for leave

2. For cash advance for payroll
- net amount of approved payroll for the period

3. For grant of cash advance for travel
- travel order
- itinerary of travel

4. Liquidation of cash advances
Payroll Fund paid DVs/Payroll
Travel original TO, plane/bus ticket, ORs,
boarding pass, cert. of appearance and
liquidation report
Training Expenses cert. of appearance, cert. of
training and invitation to attend the training
5. For payment of maintenance and other operating
expenses
a. membership dues statement of account
b. utilities bills
c. repairs and maint. job orders, invoices,
certificate of warranty/guarantee, pre-repair inspection
report and post-repair inspection report, inspection and
acceptance report, labor payroll or contract

6. For purchase of equipment, supplies, materials and
other items
a. purchase request
b. purchase order
c. bidding documents
d. suppliers invoice
e. delivery receipt
f. inspection and acceptance report

7. For infrastructure and reforestation projects
a. By contract (refer to RA 9184)
1. Bidding documents
2. Plans and specifications
3. Notice of bidding
4. Contract
5. Notice to proceed
6. Billings of contractors
7. Inspection and acceptance report
8. Completion report duly verified
9. Program of work
b. By Administration
1. Supplies PO, suppliers invoice, bidding
documents, delivery receipts and IAR
2. Wages labor payroll, DTR, contract for
labor
3. Plans/program of work

8. For repairs and maintenance of PPE
a. pre-repair inspection report
b. job order/contract
c. suppliers invoice
d. post-repair inspection report
e. inspection and acceptance report
What are the restrictions in the disbursement of
barangay funds? (RA 7160)

1. Disbursement shall not exceed the 50% of the
uncollected estimated revenue accruing to the brgy
funds in addition to the actual collections.

2. No obligation can be incurred or payments made
without the approval of the Punong Barangay.

3. No barangay fund shall be appropriated or disbursed
for religious or private purposes.

What are the restrictions in the disbursement of
barangay funds? (RA 7160)

4. Expenditures for reception and entertainment shall not
be charged against barangay funds.

5. No disbursement or advance payment shall be made for
services or goods not yet received.
Coa Circular 2012-003 dated October 29, 2012 prescribes guidelines for
the prevention and disallowance of the following expenditures:

IRREGULAR expenses incurred without adhering to established rules and
regulations

Acceptance of a project not in accordance with specifications
Including names and pictures of officials in billboards and
government projects

ILLEGAL - cases of violation of laws

Purchase of goods and services not specified in the appropriation
ordinance
Entering into a contract in excess of the appropriated amount


Coa Circular 2012-003 dated October 29, 2012 prescribes guidelines for
the prevention and disallowance of the following expenditures:

UNNECESSARY expenditure that is not essential or can be dispensed with

Continuous repair of vehicle and equipment already considered
beyond economic repair

Purchase of high-end electronic gadgets such as laptop

EXCESSIVE - expenses incurred at an immoderate quantity and
exorbitant price

Overpricing of purchases characterized by inflated quotations in
excess of the current market price by a 10 percent variance

Excessive allowances to participants and expenses in relation to
lakbay-aral, seminars and trainings



Coa Circular 2012-003 dated October 29, 2012 prescribes guidelines for
the prevention and disallowance of the following expenditures:

EXTRAVAGANT incurred without restraint and economy.

Conduct of out-of-town meeting which can be made within office
premises
Luxurious furnishings for government buildings

UNCONSCIONABLE - expenses which no man in his right sense would
make, nor a fair and honest man would accept as reasonable

Overpricing in significant amounts exceeding 100 percent of
current value

Puchase of supplies and materials in quantities far exceeding the
requirements





Requisition and Procurement

- The Brgy. Treasurer shall act as the Property Officer of the barangay

- All procurement shall be covered by APP as required in RA 9184
and should be in accordance with the requirement of the
Procurement Law

- Procurement of supplies shall be directly charged to MOOE

- Orders for procurement of supplies and property shall be covered with
approved Purchase Request
- Purchases shall be covered by approved Purchase Order

- All deliveries shall be covered by Inspection & Acceptance Report




Issuance of Supplies and Materials

- Issuances shall be covered by an approved Requisition and
Issue Slip

- Recipient of small tangible items with serviceable life of
more than 1 year shall be issued an Inventory Custodian Slip

- The recipient shall be responsible for the upkeep of the
issued items and shall be accountable thereto during the
estimated useful life of the item as determined by COA

Issuance of Property, Plant and Equipment

- Issuances shall be covered by a Property Acknowledgment
Receipt which shall be renewed every 3 years or whenever
there is a change of custodianship

- Any unserviceable PPE shall be returned to the BT for
cancellation of the PAR and its eventual disposal

- All unserviceable items for disposal shall be summarized in
the Inventory and Inspection Report of Unserviceable Property
(IIRUP)

- Once reported in the IIRUP, properties shall be disposed of in
accordance with regulations set by COA

- Outgoing brgy. officials/employees shall be cleared of
property accountabilities by accomplishing the
Transfer of Money and Property Accountabilities


Disposal of Property, Plant and Equipment

- the Brgy Treasurer, through the Punong Barangay, shall file
an application for disposal with the City Auditor who shall
conduct an inspection & determination of whether the
subject property is with or without value.

- The City Auditor shall indicate his findings in the IIRUP and
shall forward the same to the BAC with his
recommendation.

- The BAC shall appraise the property for disposal

- Valueless property shall be condemned by pounding or
throwing beyond recovery and the like. The PB shall ensure
its compliance.






Disposal of Property, Plant and Equipment

- Valuable property shall be disposed though public auction
under the supervision of the BAC and the City Auditor.

- The Punong Barangay shall authorize the condemnation or
disposal

- After disposal, the Brgy Treasurer shall return the IIRUP or
the Waste Materials Report to the City Accountant

- The disposed property may now be dropped from the book
of accounts




Physical Count of Property, Plant and Equipment

- A physical inventory of all barangay property shall be
conducted at least once a year and the result shall be
reported in the Report on the Physical Count of Property,
Plant and Equipment

- The report, approved by the Punong Brgy. shall be
submitted to the Commission on Audit and the City
Accountant for reconciliation with the recorded Property,
Plant and Equipment (PPE)

- Any unrecorded PPE shall be booked up at appraised cost

- Any unaccounted PPE shall be verified and in case of loss,
the Accountable Officer shall be held accountable


Loss of Property, Plant and Equipment

- For property lost through force majeure, theft, robbery, or
negligence, a Notice of Loss shall be rendered by the
Accountable Officer to the Punong Brgy. through the Brgy.
Treasurer

- The AO shall report the loss to the police authorities
immediately upon its discovery

- The AO shall immediately notify the Auditor upon discovery of
the loss

- A request for Relief from Property Accountability shall be
submitted to the COA through the PB within the statutory
period of 30 days

- Immediately upon receipt of the report of loss, the PB shall
notify the Property Insurance Fund of the GSIS



Loss of Property, Plant and Equipment

- The reported lost property shall be dropped from the books
and the AO shall be held accountable, pending receipt of the
COA decision on request for Relief from Property
Accountability

- Accountability for lost property shall be computed at sound
value of the property

- In case the request for relief is denied, the AO shall pay for
the sound value of the lost item

Disposal of Supplies and Materials

- All obsolete and unserviceable small tangible items which
could no longer be used shall be turned over to the BT for
disposal. The corresponding ICS shall be cancelled to relieve
the user from his accountability.

Disposal of Property, Plant and Equipment
- All unserviceable PPE shall also be turned over to the
BT for disposal. The corresponding PAR shall be
cancelled.

- Disposal procedures shall be in accordance with the
applicable rules and regulations on supply and property
management for LGUs.

- The Waste Materials Report and the IIRUP shall be
used


Disposal of Property, Plant and Equipment

- The PPE disposed of shall be dropped from the books
only upon receipt of the report on its disposal.


Insurance of Property, Plant and Equipment

All PPE with insurable risk shall be insured with the
Property Insurance Fund of the GSIS



SOURCE: Systems and Procedures Manual on the Management
of Barangay Funds and Property