--FIRST SLIDE—

THE GOVT ACCTG PROCESS COMPRISES 6 ACTIVITIES NAMELY (READ)

COMMUNICATING TRANS. INVOLVING RECEIPT AND PLACEMENT OF GOVERNMENT FUNDS

AND LASTLY, INTERPRETING THE RESULTS.

IN A WAY THIS PROCESS IS VERY SIMILAR TO A BUS. ENTITY’S ACCTG PROCESS, EXCEPT THAT GOVT
ACCCTG INCLUDESBUDGETARY CONTROLS SUCH AS RECORDING IN THE BUDGET REGISTRIES AND
PREPARING BUDGET REPORTS

--2ND—

BOOKS OF ACCTS AND REG CONSIST OF THE FF: JOURNALS, LEDGERS AND REGISTRIES. SO THE MAIN
DIFFERENCE BET. THE FIRST 2 IS THAT JOURNALS ARE SUBSIDIARY WHEREAS LEDGERS ARE THE
PRINCIPAL BOOKS. LEDGER IS THE CLASSIFICATION OF RECORDED TRANSACS IN THE JOURNAL INTO
SEPARATE ACCTS.

CASH REC. JOURN- KEEPS TRACK OF SALES WHEN CASH IS RECEIVED. DR. CASH, CR. SALES

CASH DISBUR. JOURN-RECORDS CASH OUTFLOWS MADE TO SETTLE OBLI SUCH AS OPEX, LOAN
PAYMENTS ETC

CHCK DIBURS JOURN-REORD DISBURSE MADE THRU CHCKS BY THE DISBURSING OFFICER

SUBLEDGER-DETAILS OF RECORDS UNDER GEN LEDGER

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ONLY JURN AND LEGERS ARE CONSIDERED ACCTG RECORDS. REGISTRIES ARE BASICALLY BUDGET
RECORDS .(READ REG)

ACCT UNIT (READ) WHILE BUDG DIV (READ)

(READ NOTE: FUNDCLUSTER AS MENTIONED IN CHAP 1 – REGULAR AGENCY FUND, FOREIGN ASSISTED
PROJS. ETC)

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ALLOTTMENTS- AMOUNT/ASSET ALLOCATED TO A PARTICULAR PROJECT OR PURPOSE

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CAPITALIZABLE- RECORDED AS ASSET

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THESE ARE THE SEPARATE RAODS SOR PERSONNEL SERVICES, MAINTENANCE AND OTHER OPEX,
FINANCIAL EXP, AND CAPITAL OUTLAYS

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RE- NET EARNINGS LESS DIVS

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(READ TITLE) THE COA IS RESPONSIBLE FOR THIS. COA (READ MEANING)

VOUCHER EXAMPLE- DISCOUNT, COUPONS, STUB

(READ APPROPRIATION)

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THESE WILL THEN BE RECORDED TO THE RAPAL AS FOLLOWS:

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(READ ALLOTTMENT)

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AGAIN, THESE WILL BE RECORDED UNDER ALLOTMENTS. THEN UNDER UNRELEASED APPROPRIATION,
RECORD THE EXCESS OF APPROPRIATION OVER THE ALLOTMENT. SO (READ)

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AND THEN UNDER RAOD, ALSO RECORD THE ALLOTMENT

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(READ FIRST PARAGRAPH)

THIS IS IMPORTANT TO SUPPORT ALL OBLIGATION REQUESTS FOR PAYMENT OF TRANSACTIONS

THESE ARE THE STEPS IN PROCESSING ORS (READ)

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(READ)

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(READ)

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(READ)

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POSITIVE-ADDITION

NEGATIVE-REDUCTION

(RED FIRST SENTENCE NOTE)

J.E. WILL ONLY BE MADE WHEN (READ)

SO ONLY THEN WILL THE FINANCIAL STATEMNTS BE AFFECTED. FOR THE MEAN TIME OBLIGATIONS ARE
REFFERED TO AS NOT YET DUE AND DEMANDABLE

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(READ)

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(READ FIRST PARAGRAPH AND LAST)

NET OF TAX-NOT TAX

(READ ENTRY) THIS IS HOW WE RECORD THE RECOGNITION OF RECEIPT OF NCA FROM THE DBM

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NCA-CASH AUTHORITY ISSUED TO COVER CASH REQUIREMENTS (TO OFFICES)

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TOTAL ALLOTMENTS FROM THE PREVIOUS RECORDS OF REG. OF APPRROPRIATION AND ALLOTMENTS

UNFUNDED OF 100K. DIFF BET ALLOTMENT AND NCA RECEIVED

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READ

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READ

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READ

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SINCE THE NCA RECEIPT DOES NOT CONSTITUTE A COLLECTION THAT CAN BE RECORDED IN THE CASH
RECEIPTS JOURNAL, IT WILL JUST BE RECORDE AS FOLLOWS TO THE GENERAL LEDGER

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NOTE THAT: READ FIRST PARAGRAPH

READ

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RECORD THE ENTRIES AS FOLLOWS TO RECOGNIZE THE PAYABLE TO OFFICERS UPON APPROVAL OF
PAYROLL

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PAYABLE- GROSS COMPENSATION TOTAL OF 40K

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SO TO RECOGNIZE THE CASH GRANT OF CASH ADVANCE FOR PAYROLL RECORD (READ)

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WE WILL NOW RECORD THE PAYMENT OF 25K, FROM 40K, DUE AND DEMANDABLE WILL NOW BE 15K

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UNOBLIGATED-DIFFERENCE OF ALLOT AND OBLI

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THE PAYMENT AND DISBURSEMENT OF 25K WILL BE (READ)

TO RECOGNIZE LIQUIDATION OF PAYROLL RECORD (READ ENTRY)

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(READ FIRST PAR) THE BREAKDOWN WILL BE (READ)

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BOC-BUREAU OF CUSTOMS

BTR-BUREAU OF TREASURY

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The (read) IS RECORDED AS FOLLOWS (READ)

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(READ FIRST SENTENCE) Entity A has the authority to use the amount withheld in its operations SINCE
TRA BEING JUST ANOTHER FORM OF DISBURSEMENT IS RECOGNIZED SIMILARLY TO THE RECEIPT OF
REGULAR NCA

(READ ENTRY)

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Cash-TRA, as if entity A remits cash to BIR/BTr, then the latter remits it back to the entity without
physically transferring the cash.

(READ)

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NOTE THAT (READ LAST)

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DR & CR IS THE CASH ENTRY

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(READ IV.) THEY ARE REQUIRED TO DO THIS FOR ANY UNUSED NCA AT THE END OF THE PERIOD. TO
COMPUTE: READ

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THEN TO RECORD THE ENTRIY: READ