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Copy of New Barangay Accounting System
Burn Celestialon 22 February 2013
Transcript of Copy of New Barangay Accounting System
Accounting System Accounting Method Basic Features and Policies God bless us all! THE END! :3 >Modified Accrual Accounting is adopted
>Income shall be recorded when earned except when the use of accrual basis is impractical or when other methods are required by law
>Expenses shall be recorded when incurred irrespective of time of payment
>Income and expenses shall be reported in the financial statements in the period they relate Recognition of Liability >Liabilities shall be taken up only for goods actually delivered and accepted or services rendered or upon receipt of bills from suppliers or creditors
>Cash received to guaranty faithful performance of an activity shall be recorded as liability
>Surety bonds shall not be recorded in books
>All borrowings & secured loans shall be recorded using appropriate liability account Purchase of Supplies and Materials and Small Items >It shall be recorded as Inventories upon acquisition and Expense upon issuance
>Other tangible assets shall be classified as Property, Plant and Equipment subject to depreciation Cash Advances >Cash advance for payment of personal services shall be accounted for as “Payroll fund”
>Cash advance granted for travel and other special-time bound undertaking shall be accounted for as “Advances to Officers and Employees” Audit Disallowances >Shall be recorded only when they become final and executory Barangay Accounts >Shall be kept within the framework of the New Government Accounting System chart of accounts Processing of Transaction and Recording
in the Books >Processing of transactions shall be done at the barangay level
>Recoding in the books through Journal entry voucher shall be done by the City/Municipal accountant
>The financial records of the barangay shall be kept in the office of the City/Municipal Accountant
>Recording in the barangay books shall be based on the reports submitted by the Barangay Treasurer/Barangay record keeper
>Reports and documents supporting entries in the reports shall remain with the Barangay Treasure/Barangay Record keeper and shall be made available on the Commission on Audit anytime for examination Certified Registers The following Cash registers shall be used:
>Cash Receipt Registers
>Cash on Hand and In Bank registers
>Cash Disbursement Registers
>Check Disbursement Registers
>Petty Cash Fund Registers Status of Appropriations, Commitments and Balances
It shall be consolidated by the City or Municipal Budget Officer
Trial Balance The two-money column trial balance shall be used Financial Statements
Balance Sheet (Detailed and Condensed)
Statement of Income and Expenses (Detailed and Condensed)
Statement of Cash Flows (Direct Method)
Statement of Changes in Government Equity The City/Municipal accountant shall furnish the Sangguniang Barangay and the Auditor with the Financial Statements within 30 days after the close of each month.
the Financial Statements Schedule of Public Infrastructures and Reforestration Projects
Schedule of Accounts Payable
Schedule of Accounts Receivables E-NGAS Whenver possible the use of Electronic New Government Accounting System at the City/Municipality level is encourage to facilitate the recording of barangay transactions and to hasten the consolidation of all barangay financial statements and reports. Barangay Accounting System Plan >It shows the accounting flow of barangay transactions in the books maintained by the City/Municipal Accountant
>Presented in the Accounting System Plan are the following:
Receipts and Deposits
Disbursements (Cash or Checks)
Public Infrastructures and Reforestation projects
Registries of Public Infrastructures and Reforestation Projects Major Financial Transactions The NGAS for Barangays prescribes for the following major categories of financial transactions
Appropriations and Commitments
Receipts and Deposits
Supplies and Materials, Property, Plant and Equipment, Public Infrastructures and Reforestation projects To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments Are amounts earmarked by the barangay, arising from an act of a duly authorized official, which binds the barangay to the immediate or eventual payment of a sum of money.
Charges against the appropriated funds shall be based on the commitments made by the Barangay. Commitments The KAGAWAD shall be responsible in monitoring the approved appropriations and the charges against the following funds:
20% Development fund
Sangguniang Kabataan fund
Gender and Development fund Appropriations Are amounts in the annual or supplemental budget that are authorized by the Sanggunian to be spent for the undertaking of a particular function, program, activity or project, for which services have been rendered or goods delivered. Appropriations Section 29, paragraph 1 of the Constitution
No money shall be paid out of the treasury except in pursuance of an appropriation made by law.
All disbursements of public funds, except those received for special purposes, shall be covered by an approved General Appropriation Ordinance (GAO) authorizing appropriation for the annual budget.
The expenditure items of which shall be in accordance with the Philippines Government Chart of Accounts under NGAS.
Commitments shall not exceed the approved appropriation unless authorized by the DBM. Appropriations and Commitments Illustration To record approved appropriations in the respective Registry of Appropriations and Commitments Status of Appropriations, Commitments and Balances Department of Budget and Management Government Accountancy and Financial Management Information System – COA City/Municipal Budget Officer Chairman of Committee of Appropriation Barangay Record Keeper To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record approved appropriations in the respective Registry of Appropriations and Commitments To record commitments/charges incurred. Oprah Winfrey has six toes. Coca-Cola was originally green. Thomas Edison,
the inventor of light bulb is afraid of DARK. Illustration Property, Plant and Equipment,
Public Infrastructure/Reforestation Project The Barangay Jose Rizal contracted Tapal-tapal Construction Co. For the construction of its road that was started and completed in 2009. The contract price was P25,000. Upon completion of the project, Barangay Jose Rizal was billed and after inspection of the project, the contractor was paid, net of 10% withholding tax. Illustration In case the relief of accountability was granted by COA The following reports shall be prepared:
Inventory and Inspection report of Unserviceable Property
Report on the Physical Count of Property
Inspection and Acceptance Report Property, Plant and Equipment The following registers and records shall be maintained:
Property, Plant and Equipment Register
Creditor’s Card Property, Plant and Equipment Journal Entries: At the end of the year, the Barangay Jose Rizal recorded the following transactions: Illustration Unserviceable PPE
> shall be returned to the Barangay Treasurer for the cancelation of the Property Acknowledge Recipient
> reported in Inventory and Inspection Report of Unserviceable Property > recipient of the Property, Plant and Equipment shall be covered by the Property Acknowledge Recipient Property, Plant and Equipment Registry of Public Infrastructure – Roads, highways and bridges
Registry of Public Infrastructure – Parks, plazas, and monuments
Registry of Reforestation Projects >the cost of the projects and cumulative cost of repairs and maintenance shall be monitored using the appropriate registries >are for public use and not for the exclusive use of the barangay Infrastructures and reforestation Projects After inspection, the IT equipment was paid in full, net of 10% withholding tax. The Barangay Jose Rizal acquired the following property, plant and equipment: Illustration > charged against appropriation of capital outlay and recorded in Property, Plant and Equipment Registry for control and monitoring purposes >Inspection Committee – inspect every delivery
Head: Barangay Treasurer
Member: designated Kagawad >all procurement shall be in accordance with the requirements of RA 9184, with insured GSIS Property, Plant and Equipment Repairs and maintenance shall be charged to the appropriate Repairs and maintenance expense account of the specific project. All Public Infrastructures and reforestation Projects shall not be subject to depreciation. The total cost of each Public Infrastructures and reforestation Projects shall be disclosed in the Notes to Financial Statements. Upon completion, projects shall be transferred to the specific Public Infrastructures and reforestation Projects account. Completed Public Infrastructures and reforestation Projects during the year shall be transferred to the appropriate Registry of Public Infrastructures and reforestation Projects at the year-end, where its cost and cumulative costs of repairs and maintenance shall be monitored. All projects under construction shall be recorded under Construction in Progress - Infrastructures and reforestation Projects accounts. In accordance with the Construction Theory, all cost incurred during the construction of Public Infrastructure and Reforestation projects shall form part of the cost of the projects. Expenses incurred after the completion shall be charged to operation. Infrastructures and reforestation Projects To record depreciation To record disposal of unserviceable motor vehicle through sale Journal Entry To set up accountability of accountable officer for loss of IT Equipment To record loss of PPE through theft At the end of the year, during the physical count PPE ,it was discovered that an IT Equipment costing P22,500, with accumulated depreciation of P7,500 was stolen. Accordingly, the accountable officer requested for relief from accountability. Illustration Remittance of withholding tax to
BIR Payment of the purchase To record receipt of donations To record Purchase on Account Useful life Depreciation Cost Residual
Value Property, Plant and Equipment Prescribed by COA, which will be used in computing the depreciation Use straight line method 10% of the Cost Duties and Responsibilities of the City/Municipal Accountant and Budget Officer Financial Statements
*Statement Of Income and Expenses
*Statement of Cash Flows
*Statement of Changes in Government’s Equity
*Notes to Financial Statements Financial Statements and Supporting Schedules The trial balance is a list of all the accounts with balances in the General Ledger. TRIAL BALANCE TRIAL BALANCES AND ADJUSTING/CLOSING ENTRIES Consolidate the Statement of Appropriations, Commitments and Balances of each barangay for the five funds, such as: General Fund, 20% Development Fund, Calamity Fund, Sangguniag Barangay Fund, and Gender and Development Fund.
Submit the Consolidated Statement of Appropriations, Commitments and Balances of all barangays under the city/municipality to GAFMIS-COA through the auditor/audit team leader and to DBM. Budget Officer Maintain the General Journal, General Ledger, Subsidiary Ledgers, and Registries of Public Infrastructures/Reforestation Projects for each of the barangays under the city/municipality.
Prepare the Journal Entry Voucher.
Record and post the Journal Entry Vouchers.
Prepare the required monthly and year-end Trial Balances, Financial Statements and reports/schedules for each of the barangays.
Prepare and submit the Bank Reconciliation Statement to COA auditor/audit team leader concerned.
Consolidate the year-end trial balances and financial statements and reports/schedules of the barangays.
Submit monthly and year-end barangay individual financial reports to the Sangguniang Baranay, and the printed and digital copies of the consolidated year-end trial balances, FS and reports/schedules of the barangays together with those of the city/municipality to GAFMIS-COA and to the auditor/audit team leader concerned.
*GAFMIS – Governement Accounting and Financial Management Information System City/Municipal Accountant Prepared in 4 copies to be distributed as follows:
Original – Commission on Audit (COA)
2nd Copy – Sangguniang Barangay
3rd Copy – Punong Barangay/Barangay Record Keeper
4th Copy – City/Municipal Accountant
Shall be supported with the Statement of Management Responsibility Financial Statements shall be: Schedule of Public Infrastructures
Schedule of Reforestation Projects
Schedule of Accounts Receivable
Schedule of Accounts Payable Supporting Schedules These are the disclosures pertaining to additional information to enhance the value of financial data in the financial statements. Notes to Financial Statements Statement showing the result or changes in Government Equity account as of a given period. Statement of Changes in Government Equity Statement summarizing all cash transactions of the barangay. It shall be prepared using the Direct Method. Statement of Income and Expenses Formal statement showing the financial condition of the barangay as of a particular date. Balance Sheet Prepared to close the balances of all nominal/intermediate accounts at the end of the year prior to the preparation of the Post-Closing trial balance and generation of financial statements. Closing Journal Entries Prepared to recognize all revenues and expenses earned and incurred during the period but not yet recorded. Depreciation shall be taken up monthly. Adjusting Journal Entries Prepared in four (4) copies
Submitted within thirty (30) days after the close of each month.
*Year-end trial balances shall be submitted on or before February 14 of each year The trial balance shall be: It is prepared at year-end after all the closing journal entries have been recorded in the General Journal and the accounts are posted to the General Ledger. Post-Closing Trial Balance It is prepared after all the adjusting entries have been recorded in the General Journal and the accounts are posted to the General Ledger and respective Subsidiary Ledger. Pre-Closing Trial Balance Pre-Closing Trial Balance
Post-Closing Trial Balance Types of Trial Balance tadaaaa!