Manual on Financial Management of Barangay

3.1. Specific Policies and Procedures

3.1.1 Expenditures/Obligations shall in no case exceed available appropriations.

3.1.2 The duly approved barangay appropriation ordinance shall be recorded in the Record of Appropriation and Obligations (RAO) as shown in Annex 6 that shall be maintained by the CCA. Separate RAO shall be maintained for the following: a) 10% percent share of the Sangguniang Kabataan; b) 5% Local Disaster Risk Reduction Management Fund (LDRRMF); and c) 20% Development Fund.

3.1.3 The RAO shall show the annual and supplemental appropriations and the obligations charged against the said appropriations. It shall be used to monitor the availability of appropriations to cover proposed expenditures/obligations.

3.1.4 Charges against the appropriations shall be based on the obligations made as shown in Contracts or Purchase Orders (POs) and in the Disbursement Voucher (DV), and Payrolls.

3.1.5 Based on the RAO, the CCA shall certify as to the existence of appropriation on the Contracts or POs, DV or Payrolls. As such, the CCA shall regularly update the RAOs by posting all certified obligations to determine available balance of the appropriations.

3.1.6 The CCA shall report the charges to and balances of appropriations to the Punong Barangay (PB) and the SB monthly through the Statement of Appropriations, Obligations and Balances (SAOB) (Annex 7). It shall be certified correct by the CCA.

3.1.7 The PB and SB shall use the SAOB in the evaluation of the status of barangay finances.

1. Share from the National and Local Taxes/Revenues

a. Internal Revenue Allotment

b. Utilization of national wealth, such as: lands of public domain, water, mineral, coal, petroleum, mining, oil, gas, oil deposits, etc.

c. Tobacco Excise Tax (RA No. 7171 and 8240)

d. Real Property Tax including interest and penalties imposed thereon

e. Tax imposed on sand, gravel and other quarry resources

f. Community Tax, if collections are made by the barangay

2. Barangay Fees and Taxes

a. Fees imposed on:

i. Peddlers

ii. Breeding of fighting cocks

iii. Use of barangay roads, waterways, bridges and parks

iv. Use of barangay properties/facilities

v. Parking

vi. Clearance/Certification

vii. Other fees imposed by the barangays

b. Taxes imposed on stores/retailers within the barangay

c. Penalties for violation of barangay ordinance

3. Other Fees and Charges

a. Operation of cockpits, places of recreation, etc.

b. Fund raising activities

c. Charges on billboards, signboards and other outdoor advertisements

d. Use of barangay-operated public markets, slaughterhouses and waterworks

e. Operation of other barangay economic enterprise

4. Other Receipts

a. Subsidies/Financial assistance from:

i. National Government

ii. Provinces/Cities/Municipalities

b. Grants and donations received

c. Dividend/Interest from investments

d. Proceeds from:

i. Loans and other indebtedness

ii. Sale of Plant, Property and Equipment

b. Only duly appointed or designated disbursing officers may perform disbursing functions. Officers and employees who are given cash advances for official travel need not be designated as Disbursing Officers.

c. Transfer of cash advance from one Accountable Officer (AO) to another shall not be allowed.

d. The cash advance shall be used solely for the specific legal purpose for which it was granted. Under no circumstance shall it be used for encashment of checks or for liquidation of a previous cash advance.

5.1.7 All cash advances shall be liquidated at year-end. No additional cash advances shall be given to any official or employee unless the previous cash advance is liquidated and accounted for in the books.

5.1.8 A cash advance shall be liquidated/reported as soon as the purpose for which it was granted has been served.

5.1.9 No cash advance shall be granted for payment on account of infrastructure projects or other undertaking on a project basis except for payment of labor payroll for projects undertaken by administration.

5.1.10 Cash Advances for special time-bound undertaking shall be liquidated by the accountable officer within a specified period.

5.1.11 Cash advance which are no longer needed or have not been used for a period of two months shall be returned to or deposited immediately with the proper collecting officer or cashier.

5.1.12 For designated disbursing officers, separate Cashbook shall be maintained for each type and purpose of cash advance.

5.1.13 Petty Cash Fund Record (Annex 13.1) shall be maintained for Petty Cash Fund.

Cash Advances and Liquidation

I. CASH ADVANCES

HONORARIA

A. BARANGAY OFFICIALS -

1. DISBURSEMENT VOUCHERS

2. DAILY TIME RECORD

3. CERTIFICATION RENDERED SERVICES ( FOR APPOINTED OFFICIALS)

4. CERTIFICATE OF SESSIONS ATTENDED ( FOR ELECTED BARANGAY OFFICIALS)

5. MINUTES OF MEETINGS OF TWO REGULAR SESSIONS DULY SIGNED BY THE SB MEMBERS

FOR NEWLY ELECTED OFFICIALS

2.TRAVEL - OUT OF TOWN TO ATTEND THE SEMINAR - CASH ADVANCE BY INDIVIDUAL

2.1. DISBURSEMENT VOUCHERS

2.2. MEMO BY THE BRGY. CAPT AUTHORIZING TO TRAVEL

2.3. FOR BRGY. CAPT. - MEMO FROM CITY MAYOR/ CITY ADMINISTRATOR

2.4. ENDORSEMENT LETTER FROM DILG

LIQUIDATION - TRAVEL

3.1 Receipt of Registration

3.2 Certificate of Appearance

3.3 Itinerary of Travel

MONETIZATION

3.1. DISBURSEMENT VOUCHERS WITH CHECK ISSUE

3.2APPROVED APPLICATION FOR LEAVE

3.3.ORIGINAL LEAVE RECORD DULY CERTIFIED CORRECT BY THE BRGY. SECRETARY & APPROVED BY THE BRGY. CAPTAIN.

3.4. CERTIFIED TRUE COPIES OF MINUTES OF MEETINGS OF TWO REGULAR SESSIONS MONTHLY FOR THE YEAR APPLIED

3.5. SUMMARY OF LEAVE CREDITS COMPUTATION DULY CERTIFIED CORRECT BY THE BRGY. SECRETARY & APPROVED BY THE BRGY. CAPTAIN

What is the barangay cash advance?

-The barangay cash advance is a relatively bigger amount of money given to regular or special disbursing officers

depending on the bond secured for specific public purposes. Regular cash advance includes expenses for salaries, wages,

commutable allowances, honoraria and other similar payments.

What are the rules in the grant, use and liquidation of cash

advances?

• Only permanently appointed officials/employees shall be granted cash advances;

• Only duly appointed or designated disbursing officers may perform disbursing functions;

• Only one disbursing officer shall be assigned/designated for a specific purpose;

• Transfer of accountability for cash advance shall not be allowed;

• Under no circumstances shall cash advance be used for the encashment of checks or for the liquidation of

a previous cash advance;

• A cash advance for a particular year shall not be usedto pay for expenses made in other years;

• A cash advance for petty operating expenses shall be sufficient for the recurring expenses for one month. It shall not be used for the payment of regular expenses such as rentals, subscriptions, light and water, etc;

• The cash advance must be returned or deposited immediately with the collecting officer when it is no

longer needed or has not been used for two (2) months; and,

• All cash advances shall be fully liquidated at the end of each year.

Are barangay officials allowed to handle cash advances?

-Only those properly authorized and bonded; namely: the

Punong Barangay and the BarangayTreasurer.

Reimbursement

is the act of compensating someone for an out-of-pocket expense by giving them an amount of money equal to what was spent.

should not exceed P5,000.00