Session 4 - Disbursements
Session 4 - Disbursements
GAM: Accounting
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Session 4
APPLYING ACCOUNTING
POLICIES ON
DISBURSEMENTS
GAM: Accounting
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Session Overview
Basic requirements applicable to all modes of
disbursements;
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Learning Objective
At the end of the Session, you will be able to apply
the policies on the different modes, forms, records,
reports and books of accounts applicable to
disbursements and policies on inter-agency
transferred funds in accordance with the GAM.
GAM: Accounting
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GAM: Accounting
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Definition of Terms
Authorization issued by the DBM to an agency to
withdraw cash from the BTr to cover payment of
operating expenses, purchases of supplies and
materials, acquisition of PPE, payment of payables,
and other authorized disbursements thru the issuance
of MDS checks, ADA or other modes of disbursements.
a. Special Allotment Release Order
b. Notice of Cash Allocation
c. Notice of Transfer of Allocation
GAM: Accounting
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Definition of Terms
An authorization issued by the CO of the
department/agency to their ROs/OUs to withdraw cash
from the BTr to cover payment of operating expenses,
purchases of supplies and materials, acquisition of
property, plant and equipment, payment of payables,
and other authorized disbursements thru the issuance
of MDS checks or other modes of disbursements.
a. Special Allotment Release Order
b. Notice of Cash Allocation
c. Notice of Transfer of Allocation
GAM: Accounting
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Definition of Terms
Valid and legal obligations of NGAs/OUs, for which,
goods/services/projects
have
been
delivered/rendered/completed
and
accepted,
regardless of the year when these obligations were
incurred.
a. Accounts Payable
b. Advice to Debit Accounts
c. Disbursements
GAM: Accounting
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Definition of Terms
Authorization issued by the NGA/OU appearing in the
lower portion of the List of Due and Demandable
Accounts Payable (LDDAP). It serves as instruction to
the Modified Disbursement System, Government
Servicing Banks (MDS-GSBs) to debit a specified
amount from its available NCA balance under regular
MDS sub-account for payment of creditors/payees
through the Expanded Modified Disbursement Payment
Scheme(ExMDPS).
a. Accounts Payable
b. Advice to Debit Accounts
c. Disbursements
GAM: Accounting
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Definition of Terms
A check issued by government agencies chargeable
against the account of the Treasurer of the
Philippines, which are maintained with different MDS
AGDBs. It is covered by NCA.
a. MDS Checks
b. Managers Checks
c. Commercial Checks
GAM: Accounting
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Definition of Terms
A check issued by government agencies chargeable
against the agencys checking account with AGDBs.
These are covered by income/receipts authorized to
be deposited with AGDBs; and funding checks
received
by
Operating
Units
from
Central/Regional/Division Offices, respectively.
a. MDS Checks
b. Managers Checks
c. Commercial
Checks
GAM: Accounting
Session 4: Applying Accounting Policies on Disbursements
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Definition of Terms
Payment procedures whereby the MDS-GSB shall pay the
creditors/payees listed in the LDDAP-ADA not later than 48
hours but not earlier than 24 hours upon receipt of the said
document from the NGA/OU:
a. Direct credit to the creditors current/savings/ATM account
(CA/SA/ATM) maintained with MDS-GSB; or
b. Bank transfer, if creditors account is maintained outside
the agencys MDS-GSB, where corresponding bank
charges shall be borne/paid by the creditor/payee
concerned.
GAM: Accounting
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Definition of Terms
GAM: Accounting
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Definition of Terms
A letter addressed to the MDS-GSB, issued by the
NGA/OU to its creditors/payees for the purpose of
opening an account or validation of an existing
account.
a. Letter of Intent
b. Letter of Introduction
c. Letter of Application
GAM: Accounting
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Definition of Terms
Accountable form integrating the Advice to Debit Account
(ADA) with the LDDAP-ADA, which is a list reflecting the
names of creditors/payees to be paid by the NGA/OU and
the corresponding amounts of the unpaid claims.
a. Advice to Debit Account (ADA)
b. List of Due and Demandable Accounts Payable
(LDDAP)
c. LDDAP-ADA
GAM: Accounting
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Definition of Terms
The authorized government servicing banks, such as Land Bank of the
Philippines (LBP), Development Bank of the Philippines (DBP), and
Philippine Veterans Bank (PVB),to which DBM issues the NCAs for
crediting to the MDS sub-accounts of NGAs.
a. Modified Disbursement System, Government
Servicing Banks (MDS-GSB)
GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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Disbursement Authority
NCAA
NCA
NTA
TRA
CDC
1. Check
2. Cash
3. ADA
4. TRA
5. Working
Fund/CDC
6. Direct
Payment
Cash Advance
for Payroll
Cash Advance
for Operating
Expenses
GAM:
Cash Advance
for Travel
Cash Advance for
Petty Operating
Expense
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GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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GAM: Accounting
shall
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be
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Disbursement Authority
NCAA
NCA
NTA
TRA
CDC
1. Check
2. Cash
3. ADA
4. TRA
5. Working
Fund/CDC
6. Direct
Payment
Cash Advance
for Payroll
Cash Advance
for Operating
Expenses
GAM:
Cash Advance
for Travel
Cash Advance for
Petty Operating
Expense
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GAM: Accounting
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GAM: Accounting
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Electronic MDS
Prescribed under JAO No. 2015-1 dated March 12, 2015 of
the DBM and DOF to:
facilitate an efficient and prompt reconciliation of
spending agencies disbursements vis--vis the accounts
of the BTr maintained at the LBP
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GAM: Accounting
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be
covered
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by
GAM: Accounting
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ACCOUNTING FORMS/
RECORDS/REPORTS/
BOOKS OF ACCOUNTS
FOR
DISBURSEMENTS
Accounting
Forms
GAM: Accounting
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Mode of Disbursements
Check
Source Documents/Basis
of Recording by the
Accountable Officer
DV/P/Ck/
SDs
Reports/Summarizing
Documents for
Recording
DV/Ck/PCV/
SDs
Basis of Recording in
the Books of Accounts
GAM: Accounting
DV/P/CK/
SDs
Petty Cash
JEV
Cash Advancefor
Payroll
JEV
ADADV/ADA/
SDs
?
?
JEV
JEV
?
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Mode of Disbursements
Check
Source Documents/Basis
of Recording by the
Accountable Officer
DV/P/Ck/
SDs
Cash Advancefor
Payroll
DV/P/CK/
SDs
Petty Cash
DV/Ck/PCV/
SDs
ADADV/ADA/
SDs
SDs
Reports/Summarizing
Documents for
Recording
CkADADRec
CDRec
PCFR
RCI
RCDisb
RPPCV
RADAI
JEV
JEV
JEV
JEV
CkDJ
CDJ
CDJ
Basis of Recording in
the Books of Accounts
Special Journal s/Books
of Original Entry
GAM: Accounting
CkADADRec
ADADJ
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Forms:
DV -Disbursement Voucher or Payroll
LDDAP-ADA
Petty Cash Voucher
JEV Journal Entry Voucher
GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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Records:
RANCA/RANTA - Registry of Allotment and Notice of
Cash Allocations/Registry of
Allotment and Notice of Transfer
of Allocations
CkADADRec Checks and Advice to Debit Account
Disbursements Record
CDRec
Cash Disbursements Record
PCFR
Petty Cash Fund Record
GAM: Accounting
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GAM: Accounting
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GAM: Accounting
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Reports:
RCI - Report of Checks Issued
RADAI - Report of ADA Issued
SLIIAE Summary of List of Due and Demandable
Accounts Payable Issued and Invalidated Entries
RCDisb - Report of Cash Disbursements
LR Liquidation Report
RPPCV Report on Paid Petty Cash Voucher
GAM: Accounting
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Registers:
CBReg Cash in Bank Register
CDReg Cash Disbursements Register
PCFReg Petty Cash Fund Register
GAM: Accounting
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Books of Accounts:
CkDJ Check Disbursements Journal
CDJ Cash Disbursements Journal
ADADJ ADA Disbursements Journal
GJ General Journal
GAM: Accounting
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j.
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