5 Simple Techniques to Spot Errors

in your BFARs (Budget and

Financial Accountability Reports)
To be submitted on a quarterly basis: (within 30 days after the end of each quarter)

FAR No. 1 – Statement of Appropriations, Allotments, Obligations, Disbursements, and

Balances

FAR No. 1-A – Statement of Appropriations, Allotments, Obligations, Disbursements, and

Balances by Object of Expenditures

FAR No. 1-B – List of Allotments and Sub-Allotments

[NEW!] FAR No. 1-C – Statement of Obligations, Disbursements, Liquidations, and Balances
for Inter-Agency Fund Transfers

FAR No. 2 – Statement of Approved Budget, Utilization, Disbursements, and Balances for
Off-Budgetary Funds

FAR No. 2-A – Statement of Approved Budget, Utilization, Disbursements, and Balances by
Object of Expenditures for Off-Budgetary Funds

FAR No. 5 – Quarterly Report of Revenue and Other Receipts

[NEW!] FAR No. 6 – Statement of Approved Budget, Utilization, Disbursements, and

Balances for Off-Budgetary Funds for Trust Receipts

To be submitted on a monthly basis: (within 10 days after the end of each month)

FAR No. 4 – Monthly Report of Disbursements

To be submitted annually: (within 30 days after the end of each year)

FAR No. 3 – Aging of Due and Demandable Obligations

5 Simple Techniques to Spot Errors in the BFARS:

Technique No. 1 — There are errors in FAR Nos. 1, 1-A, 2, and 2-A if the total amount of
appropriations in FAR No. 1 and FAR No. 1-A are not equal. The same applies to FAR No. 2
and 2-A.

Note: FAR No. 1 and 2 are just summaries of FAR No. 1-A and FAR No. 2-A, respectively.
Hence, the total amount of appropriations in FAR No. 1 and 2 should tally with the amount of
appropriations in FAR No. 1-A and 2-A.

Tip: The difference between Total Appropriations and Total Allotments is the Unreleased
Appropriations.
Technique No. 2 — There are errors in FAR Nos. 1 and 1-A if the total amount
of allotments in FAR No. 1 and 1-A do not tally with the total amount of allotments and
sub-allotments in FAR No. 1-B.

Note: FAR No. 1-B contains the lists of all allotments and sub-allotments (as the name of the
report implies) received by the agency as of reporting period through
Special Allotment Release Orders (SAROs). It also includes the budget of the agency
(Agency Specific Budget) which was comprehensively released through the General
Appropriations Act as an Allotment Order (GAAAO), including the agency budget for
Retirement and Life Insurance Premium (RLIP) which was likewise comprehensively released
m through the General Allotment Release Order (GARO).

Technique No. 3 — There are errors in FAR Nos. 1-A or 2-A if the balance of each object
of expenditures in FAR No. 1-A or FAR No. 2-A (unobligated allotments) does not
reconcile with their respective balance in your registries (i.e., Registry of
Appropriations, Allotments, Obligations, Disbursements, and Balances by Object of
Expenditures)

Note: To ensure that your BFARs are correct, the balances of each object of expenditures
(unobligated allotment) in the BFARs should reconcile with their respective balance in the
registries.

Technique No. 4 — There is an error in FAR No. 4 if it does not reconcile with your total
disbursements in FAR Nos. 1 and 1-A.

Tips:

✅ The Total Disbursements under FAR No. 1 and 1-A include cash and non-cash
disbursements (i.e., taxes withheld and remitted through Tax Remittance Advice). This
shall include only disbursements under current year budget. It does not include
disbursements for accounts payable for prior years’ budget. (This is a reconciling item for
FAR Nos. 1 and 1-A, and FAR No. 4)

✅ The Total Disbursements under FAR No. 1 and 1-A should reconcile with the Total
Disbursements under the Current Year Budget column of FAR No. 4.

✅ Total Cash Disbursements plus Taxes Withheld (TRAs) equals Total Obligations.
Should there be any excess it is the effect of either Accounts Payable or Cash Advance or
both.

Technique No. 5 — There are errors in FAR Nos. 1 and 1-A and FAR Nos. 2 and 2-A if
the unpaid obligations appearing in the FARs do not tally.

Tips:

✅ The difference between Total Obligations and Total Disbursements is either Due and
Demandable Obligations or Not Yet Due and Demandable Obligations. Both are called unpaid
obligations.

✅ Due and Demandable Obligations pertain to the goods purchased which have already
been delivered or services which have already been rendered. On the other hand, Not Yet
Due and Demandable Obligations are contracts which the government entered into for which
the goods have not been delivered or services have not been rendered.