MODES

OF
DISBURSEMEN
T
NACION, Alyssa Marie
NGANHAYNA, Krishamae
NONONG, Nichole Jade
OCAMPO, Christy Ann
MODES OF DISBURSEMENT

A. CHECKS
B. CASH
C. ADVANCE TO DEBIT ACCOUNT
D. TAX REMITTANCE ADVICE
E. WORKING FUND/CDC
F. DIRECT PAYMENT METHOD
 A. CHECKS

MODES OF DISBUREMENT BY CHECK

-used for payment of regular expenses which
cannot be conveniently nor practically paid
using ADA or not authorized to be paid using
PCF or advances for Operating expenses

REPORT AND RECORD

-Released or unreleased
1. MODIFIED
DISBUSEREMENT
SYSTEM CHECKS
2.COMMERCIAL CHECKS
 A. CHECKS

1. MODIFIED DISBUSEREMENT SYSTEM CHECKS

checks issued by government agencies chargeable against the account of

the Treasurer of the Philippines, which are maintained with different MDS-
GSBs.

2. COMMERCIAL CHECK

checks issued by NGAs chargeable against the Agency Checking Account

with GSBs. These shall be covered by income/receipts authorized to be
deposited with AGDBs
A. ILLUSTRATIVE ACCOUNTING ENTRIES FOR
DISBURSEMENT BY CHECK
A. ILLUSTRATIVE ACCOUNTING ENTRIES FOR
DISNURSEMENT BY CHECK
 B. CASH (OUT OF CASH ADVANCE GRANTED TO
AUTHORIZED DISBURSEMENT OFFICER)
-constitute payments out of cash advances granted to the regular and special disbursing
officers for personal services, petty expenses and MOOE for field operating requirements

All cash payments shall be covered by duly approved disbursements

vouchers/payrolls/petty cash vouchers.

Cash advances may be granted to the cashiers/disbursing officials and employees to cove
the salaries and wages, travels, special time-bound undertakings and petty operating
expenses
 B. CASH (OUT OF CASH ADVANCE GRANTED TO
AUTHORIZED DISBURSEMENT OFFICER)
The granting and liquidation of cash advances shall be governed by the following existing
COA rules and regulations and other pertinent issuances.

a. No cash advances shall be given unless for a legally authorized specific purpose

b. A cash advances shall be reported on and liquidated as soon as the purpose for which it
was given has been served.
c. No additional cash advances shall be allowed unless previous cash advances given is
first settled/liquidated or a proper accounting
d. Except for cash advance for official travel, no officer or employee shall be granted
cash advance unless he/she is properly bonded in accordance with existing laws or
regulations. The amount of cash advance which may be granted shall not exceed the
maximum cash accountability covered by his/her bond;
 B. CASH (OUT OF CASH ADVANCE GRANTED TO
AUTHORIZED DISBURSEMENT OFFICER)
e. Only permanently appointed officials shall be designated as disbursing officers;

f. Only duly appointed or designated disbursing officer may perform disbursing

functions. Officers and employees who are given cash advances for official travel need
not be designated as Disbursing Officers;

g. Transfer of cash advance from one accountable officer to another shall not be allowed;
and
h. The cash advance shall be used solely for 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.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PAYROLL
Granted to Regular Disbursing Officers for
payment of salaries, wages, honoraria, allowances
and other personnel benefits of officials and
employees and not to be used for encashment of
checks or for liquidation of previous or other types
of cash advances.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PAYROLL
• Equal to the net amount of the processed
payroll corresponding to the pay period

• Liquidation shall be made within FIVE (5)

DAYS after the end of the pay period. Any
unclaimed salaries/allowances shall be
refunded and issued official receipt to
close the account
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PAYROLL
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PAYROLL
 B. CASH
DISBURSEMENT
ACCOUNTING FOR OVER PAYMENT
could be avoided with the institution of proper internal control but sometimes could
not be avoided because of built-in procedures.

Payment of payrolls:
-Payrolls are prepared in advance and some agencies pay their employees through
banking system.
-Done before reports of attendance are submitted, making it impossible to know the
exact amount to be paid in case there are absences without pay during the pay
period.
-Incase overpayment, refunds shall be demandable of employees concerned.
B. CASH
DISBURSEMENT
ACCOUNTING FOR OVER PAYMENT
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR OPERATING EXPENSES OF GOVERNMENT UNITS
WITHOUT COMPLETE SET OF BOOKS OF ACCOUNTS
Field/Extension/Satellite Offices
• WITHOUT complete set of books of accounts
• may be granted cash advances covering TWO (2) MONTHS requirements for
authorized expenses to finance their operation.
• Cash advances are granted to designated Disbursing Officers

Cash Disbursement Register (CDReg)

• Shall be maintained to record, monitor, and report transactions involving the
grants, utilizations, and liquidation of the cash advances
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR OPERATING EXPENSES OF GOVERNMENT UNITS
WITHOUT COMPLETE SET OF BOOKS OF ACCOUNTS

• Disbursing officer shall submit within five days after month-end the certified
copies of the CDReg with supporting paid DVs and other documents to the
accounting units of their respective Central/Regional/Division Offices and
Operating Units for JEV preparation or whenever a request for replenishment is
made.
B. CASH
DISBURSEMENT
B. CASH
DISBURSEMENT
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR TRAVEL

SCOPE OF TRAVEL
• URGENT AND NECESSARY TRAVEL ONLY

• MINIMUM EXPENDITURE INVOLVED

• BENEFICIAL TO THE AGENCY OR COUNTRY

• FOREIGN TRAVEL RESTRICTIONS: TRAINING SEMINAR

AND CONFERENCE
EXECUTIVE ORDERS 248, 248-A, 298 AND RELATED
 DOCUMENTARY
REQUIREMENTS

LOCAL
TRAVEL
OFFICE ORDER/TRAVEL ORDER
APPROVED IN ACCORDANCE WITH
SECTION 3 OF EO NO. 298
DULY APPROVED ITINERARY
OF TRAVEL(IT) (APPENDIX
44)

CERTIFICATION FROM THE ACCOUNTANT THAT

THE PREVIOUS CASH ADVANCE HAS BEEN
LIQUIDATED AND ACCOUNTED FOR IN THE
BOOKS.
 DOCUMENTARY
REQUIREMENTS

FOREIGN
FOR PLANE
FARE,
TRAVEL LETTER OF
OFFICE DULY INVITATION OF
QUOTATIONS ORDER/TRAVEL APPROVED HOST/SPONSORIN
OF THREE
ORDER IT G
TRAVEL
AGENCIES OR
COUNTRY/AGENCY
ITS /ORGANIZATION
EQUIVALENT DOCUMENT TO
COPY OF THE WHERE
SHOW THE APPLICABLE, FLIGHT
UNITED ITINERARY
DOLLAR TO PESO AUTHORITY
NATIONS EXCHANGE RATE ISSUED BY THE
FROM THE OP TO
DEVELOPMENT AT THE DATE OF AIRLINE/TICKETI
CLAIM
PROGRAMME GRANT OF CASH REPRESENTATIO NG
(UNDP) RATE ADVANCE N EXPENSES OFFICE/TRAVEL
AGENCY
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR TRAVEL

RESTRICTIONS ON FOREIGN TRAVELS

• RETIREMENT RULE: NO FOREIGN TRAVEL IF RETIRING

WITHIN ON YEAR

• COVERED DEPARTMENTS: DILG AND DND

• INTERNATIONAL COMMITMENTS:EXCEPTION TO

RESTRICTIONS
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR TRAVEL

• CASH ADVANCES GRANTED FOR TRAVELS

• LOCAL TRAVEL: LIQUIDATION IS WITHIN 30 DAYS

• FOREIGN TRAVEL: LIQUIDATION IS WITHIN 60 DAYS

• COA CIRCULAR NO. 97 - 002: GUIDELINES FOR

HANDLING CASH ADVANCES

 B. CASH
DISBURSEMENT
CASH ADVANCES FOR TRAVEL

LIQUIDATION OF CASH ADVANCES

• LIQUIDATION REPORT (LR): SUBMITTED WITH SUPPORTING DOCUMENTS
• EXCESS CASH ADVANCES: REFUNDED WITH AN OFFICIAL RECEIPT (OR)
• INSUFFICIENT CASH ADVANCE: REIMBURSEMENT VIA DISBURSEMENT

VOUCHER (DV)
• COA CIRCULAR NO. 2016-004: UPDATED GUIDELINES FOR LIQUIDATION
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR TRAVEL

LIQUIDATION OF CASH ADVANCES

• LOCAL TRAVEL LIQUIDATION: • Foreign Travel Liquidation:
• Tickets, boarding passes, Certificate of • Tickets, boarding passes, Certificate of

Appearance Attendance
• Revised IT, if applicable • Hotel bills, receipts for non-
• Reimbursement Expense Receipt (RER) commutable expenses
• Certificate of Travel Completed (CTC) • Narrative report on trip
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR TRAVEL
SUSPENSION OF ALLOWANCES AND NON-
COMPLIANCE
• MEMORANDUM CIRCULAR NO. 52 (2003): SUSPENSION OF
CLOTHING ALLOWANCE FOR ALL TRIPS
• No Additional Cash Advances until previous advance is
liquidated
• Penalties for Non-Compliance: Withholding of salary,
disciplinary action, legal consequences
CASH
ADVANCE
S FOR
TRAVEL
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR SPECIFIC PURPOSE/ TIME-BOUND UNDERTAKING

GRANTING OF CASH ADVANCES

• Who can be granted: Duly authorized accountable offi cer or special
disbursing offi cer.
• Book of Accounts: Recorded as 'Advances to Special Disbursing
Offi cer.'
• Legal Reference: COA Circular No. 97-002, rules on cash advances.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR SPECIFIC PURPOSE/ TIME-BOUND UNDERTAKING

LIQUIDATION AND REFUND OF UNUSED CASH

• LIQUIDATION MUST HAPPEN WITHIN A SPECIFIED PERIOD.

• Unused funds must be refunded.
• Offi cial Receipt (OR) issued for refunds.
• Penalties for non-liquidation: Administrative penalties apply.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR SPECIFIC PURPOSE/ TIME-BOUND UNDERTAKING

RECORDING IN THE BOOKS

• THE RCDISB IS USED TO PREPARE A JOURNAL ENTRY VOUCHER (JEV).
• JEV is recorded in the Cash Disbursement Journal (CDJ).
• Subsidiary Ledger (SL) and Index of Payment (IP) maintained by
Accounting Division/Unit.
CASH
ADVANCES FOR
SPECIFIC
PURPOSE/
TIME-BOUND
UNDERTAKING
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PETTY OPERATING EXPENSES

WHAT IS PETTY CASH FUND?

• PCF IS ESTABLISHED TO COVER SMALL, RECURRING OPERATING EXPENSES FOR

ONE MONTH.
• Maintained using the Imprest System, meaning the fund must balance between
cash on hand and unreplenished expenses.
• Replenishments are triggered when 75% of the fund is used or as needed.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PETTY OPERATING EXPENSES

KEY POLICIES GOVERNING PCF

• SEPARATE FROM REGULAR EXPENSES: PCF SHOULD NOT COVER REGULAR
EXPENSES SUCH AS RENT, UTILITIES, OR STOCK PURCHASES.
• Transaction Limit: Each disbursement should not exceed P15,000.
• No Splitting: Transactions cannot be split to stay under the P15,000 ceiling.
• Year-End Closure: PCF is not closed at the end of the year; only when the
custodian leaves or is dismissed.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PETTY OPERATING EXPENSES

DOCUMENTARY REQUIREMENTS FOR PCF

• FOR INITIAL CASH ADVANCE:
• Authority from the Head of Agency or representative.
• Certification from the Accountant that previous advances are liquidated.
• Fidelity Bond if cash accountability exceeds P5,000.
• Additional Documents:
• Approved estimates of petty expenses for one month.
• Policy documentation for maintaining the Imprest System.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PETTY OPERATING EXPENSES

DOCUMENTARY REQUIREMENTS FOR PCF

• FOR INITIAL CASH ADVANCE:
• Authority from the Head of Agency or representative.
• Certification from the Accountant that previous advances are liquidated.
• Fidelity Bond if cash accountability exceeds P5,000.
• Additional Documents:
• Approved estimates of petty expenses for one month.
• Policy documentation for maintaining the Imprest System.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PETTY OPERATING EXPENSES

LIQUIDATION OF PCF

DOCUMENTS FOR LIQUIDATION:

• Report on Paid Petty Cash Vouchers (RPPCV).
• Receipts, sales invoices, inspection reports.
• Canvass of suppliers for purchases over P1,000.
• Trip tickets and toll receipts for fuel-related expenses.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PETTY OPERATING EXPENSES

ACCOUNTING AND REPORTING REQUIREMENTS

• PCFC MUST PRepare RPPCV and maintain Petty Cash Fund Records (PCFR).
• UNReplenished PCVs submitted at year-end for accounting.
• ACCOUNTing Division/Unit maintains Subsidiary Ledger (SL) to track fund
accountability.
 B. CASH
DISBURSEMENT
CASH ADVANCES FOR PETTY OPERATING EXPENSES

ACCOUNTING AND REPORTING REQUIREMENTS

• PCFC MUST PRepare RPPCV and maintain Petty Cash Fund Records (PCFR).
• UNReplenished PCVs submitted at year-end for accounting.
• ACCOUNTing Division/Unit maintains Subsidiary Ledger (SL) to track fund
accountability.
CASH
ADVANCES
FOR PETTY
OPERATING
EXPENSES
 B. CASH
DISBURSEMENT

CASH ADVANCES FOR GOVERNMENT UNITS WITHOUT

COMPLETE SET OF BOOKS

• CASH ADVANCES COVERING TWO MONTHS OF OPERATING

REQUIREMENTS MAY BE GRANTED.
• Advances are for authorized petty and miscellaneous expenses.
• The advance is given to the appointed Disbursing Offi cer.
 B. CASH
DISBURSEMENT

ACCOUNTING RECORDS AND REPORTING

REQUIREMENTS
• PETTY CASH FUND REGISTER (PCFREG): MAINTAINED BY THE PCFC TO
SUMMARIZE PCF TRANSACTIONS.
• A photocopy of the PCFReg, original PCV, and its supporting documents
are submitted to the Accounting Division.
• These documents serve as the basis for preparing Disbursement
Vouchers (DV) for replenishments or Journal Entry Vouchers (JEV) at
year-end.
 B. CASH
DISBURSEMENT

ACCOUNTING FOR CASH SHORTAGES AND OVERAGES

• CASH OVERAGE: IF DISCOVERED AND UNEXPLAINED, IT WILL BE

FORFEITED TO THE GOVERNMENT AND CLASSIFIED AS MISCELLANEOUS
INCOME.
• Cash Shortage: If not restituted despite auditor's written demand, it
becomes a receivable from the Disbursing Officer.
CASH
ADVANCES
FOR PETTY
OPERATING
EXPENSES
CASH
ADVANCES
FOR PETTY
OPERATING
EXPENSES
 C. ADVICE TO DEBIT ACCOUNT (ADA)

• AUTHORIZATION ISSUED BY A GOVERNMENT AGENCY

• INSTRUCTING THE MDS-GSB TO DEBIT A SPECIFIED
AMOUNT FROM ITS AVAILABLE NCA FOR PAYMENT TO
CREDITORS/PAYEES
• ONLY FOR THOSE LISTED IN THE LDDAP-ADA (AN
ACCOUNTABLE FORM)
ELECTRONIC MODIFIED DISBURSEMENT SYSTEM
(eMDS)

• SIMILAR TO ADA
• EXCEPT THAT DISBURSEMENTS ARE MADE DIRECTLY FROM
THE ACCOUNTS OF BTR THAT ARE MAINTAINED WITH THE
LAND BANK OF THE PHILIPPINES (LBP)
• AGENCIES SUBSCRIBED UNDER LBP-CAN MAKE ONLINE
DISBURSEMENTS FOR SELECTED TRANSACTIONS
 CASHLESS PURCHASE CARD (CPC) SYSTEM

> DISBURSEMENTS ARE MADE THROUGH THE USE OF AN ELECTRONIC

CARD (SIMILAR TO A CREDIT CARD)

GENERAL GUIDELINES
• USED ONLY FOR SPECIFIC ELIGIBLE ITEMS AND ONLY FOR SPECIFIC
MERCHANTS
• ONLY AUTHORIZED INDIVIDUALS SHALL BE ALLOWED TO USE THE
CPC, SUBJECT TO MONTHLY CREDIT LIMIT
• CHANGES IN CREDIT LIMIT OR CARDHOLDERS REQUIRE THE PRIOR
APPROVAL OF THE STEERING COMMITTEE
 CASHLESS PURCHASE CARD (CPC) SYSTEM

• AGENCY OFFICIAL WHO APPROVES CPC ARE JOINTLY ACCONTABLE

WITH THE CARDHOLDERS
• THE CPC SYSTEM SHALL NOT SUPPLANT, REPLACE, OR REVISE THE
PROCUREMENT LAW (RA NO. 9184)
• USED FOR PURCHASE OF SMALL VALUE NON-COMMON USE ITEMS
WHICH ARE NOT AVAILABLE WITH THE PS
• PARTICIPATING AGENCY SHALL ENSURE THE TIMELY PAYMENT OF THE
CPC BILLINGS
• THE CARDHOLDER SHALL SUBMIT ALL RECEIPTS FROM USE OF THE
CPC TO THE ACCOUNTING UNIT
D. TAX REMITTANCE ADVICE

• SERIALLY-NUMBERED DOCUMENT
• USED BY THE NGAs IN THE REMITTANCE OF WITHHELD TAXES
ON FUNDS COMING FROM DBM
• DISTRIBUTED BY THE BIR TO BE ACCOMPLISHED BY THE NGAs
• SHALL BE THE BASIS FOR THE BIR AND THE BTR TO RECORD
THE TAX COLLECTION IN THEIR RESPECTIVE BOOKS OF
ACCOUNTS
 E. CASH DISBURSEMENT CEILING (CDC)

• CDC is an authorization issued by the DBM to DFA and other agencies with
foreign posts to utilize their collection retained by their Foreign Service Posts
(FSPs) to cover operating requirements, but not to exceed the released allotment
to the said post.

ACCOUNTING POLICIES REGARDING DISBURSEMENTS BY FOREIGN-

BASED GOVERNMENT AGENCIES (FBGAS):

• Working Fund shall be established to cover the payment of PS and MOOE.

• All disbursements from the working fund shall be covered by duly approved
DV/Payroll with the required supporting documents.
E. CASH DISBURSEMENT CEILING (CDC)

JOURNAL ENTRIES FOR THE COLLECTION OF REVENUE AND THE

CONSTRUCTIVE RECEIPT OF DISBURSEMENT AUTHORITY
E. CASH DISBURSEMENT CEILING (CDC)
F. DIRECT PAYMENT METHOD (ISSUANCE OF NCAA)

• Should be covered by a NCAA

• Is made through the JEV issued by the BTr to the
availing/implementing agency to record payment
of goods and services made directly by the
lending institution to the supplier or contractor
⚬ **The JEV shall be recorded in the GJ
F. DIRECT PAYMENT METHOD (ISSUANCE OF NCAA)

PROCEDURES OF DISBURSEMENT THROUGH DIRECT PAYMENT SCHEME

OF FOREIGN LOANS AVAILMENT

• Received inspection and acceptance report, shipping documents,

and certified copy of the approved billing from supplier/contractor
• Prepare JEV to record goods/property in the books of accounts
• Receive the WA/advice of payment or any proof of disbursement
from the FLI/DP
• Prepare the JEV in the copies
• Receive NCAA from the DBM, records in the logbook
F. DIRECT PAYMENT METHOD (ISSUANCE OF NCAA)
THAN
K
YOU!
END SLIDE