NPO NOTES
CHAPTER 2 -standby appropriation which may be
BUDGET PROCESS availed only upon the occurrence of
certain instances.
THE NATIONAL BUDGET 5. Retained Income/Funds – collections
-govt. budget/ govt. estimates of the sources which agencies can use directly in their
and uses of govt funs within fiscal yr. operations.
-instrument for promoting its socio-economic 6. Revolving funds – receipts from
objectives business-type activities of agencies
which are authorized to be constituted
PERFORMANCE INFORMED BUDGETING (PIB) as such.
-National Expenditure Plan/NEP and GAA link -self-liquidating and all obligations and
between the fund and the projected results and expenditures incurred by virtue of said
outcomes of these business-type activity shall be charged
against the fund.
BUDGET PREPARATION 7. Trust Receipts – receipts by a govt.
1. Budget Call agency acting as agent.
2. Budget Hearing
3. Presentation to the Office of the
President BUDGET EXECUTION
BUDGET LEGISLATION – making a law. 8. Release Guidelines and BEDs
4. House Deliberations a. Major recipients of budget
5. Senate Deliberations i. NGAs – Deped, DPWH,
6. Bicameral Deliberations DOH, DOF
7. President’s Enactment ii. LGUs – municipality,
regionality
APPROPRIATION iii. GOCCs – PhilHealth,
Is the authorization made by a SSS, GSIS etc.
legislative body to allocate funds for purposes 9. Allotment – ARP, obligational authority
specified by the legislative or similar authority. 10. Incurrence of Obligations
11. Disbursements
APPROVED BUDGET Disbursement Authority
1. New General Appropriation – annual 1. Notice of Cash Allocation/ NCA
authorization for incurring obligations a. Issued by DBM
listed by GAA. 2. Notice of Transfer of Allocation
2. Continuing Appropriations – a. Issued by agency’s central office
authorization to support incurrence of to cover the latter’s cash reqs.
obligations beyond the budget year. 3. Non-cash Availment Authority
3. Supplemental Appropriations – a. Issued by DBM to agencies to
additional to augment the original cover liquidation of annual
which proved to be insufficient. obligations.
4. Unprogrammed Funds – programmed 4. Cash Disbursement Ceiling
annually which do not require periodic a. Issued by DBM to agencies to
action by congress. with foreign operations.
12. BUDGET ACCOUNTABILITY REPORTS 2. Maintenance and Other Operating
1 - monthly report Expenses/MOOE – traveling expense,
2 – 8 – within 30 days after each quarter office supplies expense, semi
9 – within 30 days after each year expendable expenses.
3. Financial Expenses/FE – e.g. interest
13. PERFORMACE REVIEW expenses, bank expenses
-done by COA and DBM to the president 4. Capital Outlays CO – capitalizable
expenses e.g. purchase of land,
14. AUDIT infrastructure assets, building expenses
-COA only
Obligation Request Status/ORS
Chapter 3 - Incurrence of obligations shall be made
Government Accounting Process through the issuance of ORS
- Process is similar to that of a business - Prepared by the head of the agency
entity, EXCEPT that incorporates Requesting/Originating Office
budgetary controls
BOOKS OF ACCOUNTS AND REGISTRIES BASIC TRANSACTIONS
1. Journals – accounting records
a. General journal RECEIPTS OF APPROPRIATION
b. Cash receipts journal
c. Cash disbursements journal
d. Check disbursements journal
2. Ledgers – accounting records
a. General ledgers
b. Subsidiary
3. Registries – budget records
a. Registries of Revenue and Other
Receipts/RROR – receipts of
revenues
b. Registry of Appropriations and
Allotment/RAPAL – receipts for
appropriation and allotments
c. Registries of Allotments,
Obligations and
Disbursements/RAOD – records
or allotments and obligations
budget
d. Registries of Budget, Utilization
and Disbursements/ RBUD –
same as RAOD but used to
record approved budgets to
retained earnings/income
Object of Expenditures
1. Personnel Services/PS – e.g. salaries,
wages, clothing allowance
*INCURRENCE OF OBLIGATIONS =/ LIABILITY
Incurrence of Obligations means an act of a duly
authorized official which binds the government
to the immediate or eventual payment of a sum
of money/
If done incorrectly,
NOTICE OF OBLIGATION REQUEST AND STATUS
ADJUSTMENT/NORSA
- Used in adjusting obligations recorded
in RAOD and ORS
Tax remittance Advice/TRA
Chapter 4
Revenue and Other Receipts
Rvenue VS. Receipts
Revenue - gross inflow of economic benefits or
service potentital during the reporting period
when those inflows result in and increase in
equity
- Received or receivable
Receipts – actual cash collections from all
sources during a period.
COLLECTION
- PD 1445 requires ALL collections must be
remitted to the National Treasurer and recorded
in Cash receipts Journal
“when you collect, remit”
GOVERNMENT ACCOUNTING CYCLE
1. Appropriation
2. Allotment
3. Incurrence of Obligation
4. Disbusement Authority -NCA
5. Disbursement
6. Billings, Collections & remittances
7. Unadjusted Trial Balance
8. Adjusting Entries
9. Pre-Closing Trial Balance
10. Closing Entries
11. Post-closing Trial Balance
12. Preparationf of financial statements
