Disbursements

The Barangay Treasurer (BT) shall also observe the following specific policies and
procedures on disbursements of the barangay funds pursuant to existing laws, rules and
regulations:

4.1 Specific Policies and Procedures

4.1.1 Disbursements shall generally be made by checks drawn against the depository
accounts of the barangay.

4.1.2 Disbursements shall be made only on duly

certified and approved Disbursement Voucher (DV) – Annex 12 and Petty Cash
Voucher (PCV) – Annex 13 and Payroll – Annex 14.

4.1.3 The CCA of the SB shall certify as to the

existence of appropriation including those disbursements of the Sangguniang
Kabataan (SK).

4.1.4 The BT shall certify the DV as to the availability

of funds for the purpose and as to the completeness and propriety of the supporting
documents.

4.1.5 The PB shall certify as to the validity, propriety,

and legality of the transaction and shall approve for payment the DV or payroll.

4.1.6 In case of disbursements chargeable against the

special trust fund, certification in No. 5.1.3 is not necessary.

4.1.7 Disbursements in cash shall be made only from

the cash advances granted for the purpose (e.g. to pay salaries and wages,
honorarium, etc.) and petty cash.

Cash advance for payroll

4.1.8 The cash advance for payroll shall be equal to the
net amount of the payroll for a pay period.

4.1.9 The cash advance shall be used solely for the

specific purpose it was drawn and shall not be used for encashment of checks or for
liquidation of previous cash advances or other purposes.

4.1.10 The cash advance for payroll shall be liquidated

within 5 days after the end of the pay period. Any unexpended cash and unreleased
salaries/allowances shall be submitted together with appropriate supporting
documents shall be returned to the BT and an OR shall be issued.
Cash advances for travel and other special purpose
4.1.11 The grant of cash advance for both local and
foreign travel shall be governed by the provisions of Executive Order No. 298, as
amended.

4.1.12 Liquidation shall be done within 30 days for local

travel and 60 days for foreign travel, upon return to the official station. Liquidation
documents shall include certificate of travel completed, certificate of appearance,
used tickets, official receipts, etc.

4.1.13 Cash advances can be granted for special

purpose/time-bound undertaking such as conduct of barangay general assembly,
public hearing, calamity, etc. These cash advances shall be liquidated upon
accomplishment of the purpose for which these were granted.

4.1.14 Liquidation documents shall be summarized in a

Liquidation Report (LR) as shown in Annex 15 and it shall be supported with
disbursement documents such as: authority for the purpose, list of participants or
attendees, official receipts, etc.

4.1.15 Any unexpended balance of cash advances shall

be returned and an OR shall be issued by the BT. The LR shall be submitted
together with appropriate supporting documents to the BT. All cash advances
should be liquidated at yearend.

Petty Cash
4.1.16 The BT/Petty Cash Custodian (PCC) may be
authorized by the SB to hold a petty cash in the maximum amount of P10,000.00
which shall be maintained under the imprest system where a sum kept on hand is
used for small expenditures and periodically replenished and shall be replenished
when the total expenses amounts to at least seventy five per cent or as needed. It
shall be fully liquidated at yearend and renewed in the ensuing year using the
current year’s appropriation.

4.1.17 The BT/PCC may be authorized to make direct

purchases amounting to not more than one thousand pesos (P 1,000.00) at any time
for the ordinary and essential needs of the barangay.

4.1.18 The petty cash shall be kept separately from the

regular collections and advances granted for a particular purpose.

Modes of Disbursements
4.1.19 Payment by Check

a. The BT shall:
 (1) upon receipt of the DV/Payroll duly funded by the CCA, verify/review
the completeness and propriety of the supporting documents and certify as
to availability of funds;

(2) forward the DV/Payroll to the PB for approval;

(3) prepare and issue check in the name of the payee based on the approved
DV/Payroll. The check shall be signed by the BT and countersigned by the
PB; and

(4) submit to the C/M Accountant the approved DV and signed check
together with the supporting documents for the preparation of the
Accountant’s Advice (AA) – Annex 16.

b. The C/M Accountant shall review the DV/Payroll and their supporting documents
and shall issue the AA if the requirements are satisfied. If the requirements are not
complete, the C/M Accountant shall issue a memorandum to the barangay
returning the DV/Payroll and stating the deficiencies or additional requirements
within two (2) working days from receipt thereof.

c. The AA shall be prepared in three (3) copies to be distributed as follows:

Original – to the depository bank to be released directly by

the C/M Accountant
Duplicate copy – to the BT together with the original of the
approved DV
Triplicate copy – to be retained by the C/M Accountant and
attached to the duplicate copy of the DV and
supporting documents

d. The BT shall record the disbursement transaction in the cashbook in “Cash In

Bank-Check Issued” column.

e. The BT shall release the check to the supplier/company after issuance of official
receipt and signing in the receipt portion of the DV and to other payees upon
signing in the receipt portion of the DV.

f. Within ten days after the end of the month, the BT shall prepare a Transmittal
Letter - Annex 17 and submit to the C/M Accountant the duly acknowledged
original of the DVs together with the supporting documents.

4.1.20 Payment through Cash Advance for Payroll

a. The BT shall:

(1) prepare the Payroll in three copies to be distributed as follows:

 Original – to Local Auditor concerned, through the C/M
Accountant
Duplicate copy – to C/M Accountant
Triplicate copy – BT file

(2) forward the Payroll to the PB for approval;

(3) prepare and issue check in the name of the payee based on approved payroll.
The check shall be signed by the BT and countersigned by the PB;

(4) submit to the C/M Accountant the approved Payroll and signed check together
with the supporting documents for the preparation of the AA;

(5) record the receipt of the check for the cash advance in the cashbook under the
“Cash Advance – Receipt(Disbursements)” column and “Cash in Bank –
Check Issued” column.;

(6) certify the payroll paid by signing in Box D-Certification of the payroll when
the payments have been made;

(7) record in his Cashbook the total amount paid under “Cash Advance –
Receipts/ (Disbursements)” column;

(8) in case there are unreleased pay, return the amount by issuing an OR, and
record the same in the Cashbook under the “Cash
Advance-Receipt/(Disbursements) column in parenthesis and column “Cash
in Local Treasury-Collection” column. Then, deposit the amount and record
the same in the Cashbook under “Cash in Local Treasury-Deposit” and Cash
in Bank-Deposits” columns; and

(9) prepare a LR and transmit it together with the paid payroll and DV for cash
advance to the C/M Accountant for recording in the JBT.

b. The C/M Accountant shall review the Payroll and their supporting documents and
shall issue the AA if the requirements are satisfied. If the requirements are not
complete, the C/M Accountant shall issue a memorandum to the barangay
returning the Payroll and stating the deficiencies or additional requirements within
two working days from receipt hereof.

c. It is understood that the amount of cash advance returned acknowledged by an

OR shall be reported by the BT in the RCD for the month and submitted to the
C/M Accountant for recording in the JBT.

4.1.21 Cash Advance for Travel and Special Purpose

Undertaking
 a. The BT granted cash advance shall:

(1) submit LR within 30 days for local travel and 60 days for foreign travel,
upon return to the official station supported by a certificate of appearance,
used tickets, official receipts, etc. for cash advance for travel;

(2) submit LR upon accomplishment of the purpose for special purpose/time-

bound undertaking such as conduct of barangay general assembly, public
hearing, calamity, etc.;

(3) summarize in a LR the duly supported disbursements such as: authority to

undertake the activity, list of participants or attendees, official receipts, etc.;

(4) return any unexpended cash advances and issue an OR; and

(5) submit the LR together with the supporting documents and covering TL to
the C/M Accountant.

4.1.22 Payment by Cash – Petty Cash

a. To set up Petty Cash – The BT/PCC shall:

(1) prepare in the name of the BT/PCC the DV for the amount of the petty
cash on the basis of the authority issued by the SB;

(2) acknowledge the receipt of the petty cash by signing in the receipt
portion of the DV; and

(3) record the receipt of the petty cash in the “Petty Cash
Receipt/Replenishment/(Payments)” column and “Cash in Bank – Check
Issued” column of the Cashbook.

b. Disbursements from the Petty Cash

(1) Disbursements out of petty cash shall be documented by a PCV and

supported with invoices, OR, or other evidence of payments, as required under
applicable accounting and auditing rules and regulations.

(2) The BT/PCC shall record each PCV in the barangay cashbook under the
“Petty Cash – Replenishment/(Payments)” column of the Cashbook in
parenthesis.

c. Replenishment of the Petty Cash

(1) The petty cash shall be replenished as soon as disbursements reach at least 75
per cent of the petty cash or as needed.
 (2) Replenishment of the petty cash shall be made through a DV prepared by the
BT/PCC, supported by a Summary of Petty Cash Disbursements (SPCD) -
Annex 18, paid PCVs and supporting documents.

(3) The BT/PCC shall prepare the SPCD in two copies to be distributed as
follows:
Original – to the local auditor concerned, through the C/M
Accountant to be attached to DV for replenishment)
Duplicate copy – BT file

(4) The BT/PCC shall acknowledge the receipt of the replenishment check by
signing in the receipt portion of the DV.

(5) The BT/PCC shall record the replenishment in the Cashbook in the “Petty
Cash - Receipt/ Replenishment/(Payments)” and in the “Cash in Bank –
Check Issued” column. The “Balance” columns of the Petty Cash and Cash in
Bank shall always be updated.

d. Full liquidation of the Petty Cash

There are two instances when full liquidation of petty cash is required: 1) in
case the BT/PCC ceases to be one or resigns and 2) at the end of the year. In no
case shall the remaining cash of the former BT/PCC be transferred to the
incoming BT/PCC.

(1) The old BT shall:

 return the balance of the petty cash to the new BT and the latter shall
issue an OR to acknowledge receipt of the cash;

 record in his cashbook the returned cash under the Petty Cash –
Receipt/Replenishment/ (Payments)” column in parenthesis using the
OR as reference; and

 prepare the SPCD and LR to be submitted to the new BT.

(2) The new BT shall submit the LR together with the supporting documents to
the C/M Accountant.

(3) The C/M Accountant shall record the SPCD and LR in the JBT.

4.2 Reporting of Accountable Forms

4.2.1. The BT shall report on his accountability for all

accountable forms using the Report of Accountability for Accountable Forms
 (RAAF) shown in Annex 19. Only one RAAF for all accountable forms (official
receipts, cash tickets, checks, etc.)

4.2.2. The RAAF shall be prepared at the end of each

month in four copies to be distributed as follows:
:
Original – to COA Auditor
2nd copy – to C/M Accountant
3rd copy – to C/M Treasurer
4th copy – BT File

4.2.3. It shall be submitted to the COA Auditor and

C/M Accountant on or before the 5th day of the following month.