Collection and Deposit Workshop on Posting of Collections and Deposits.pdf

Collection and Deposit Workshop on Posting of Collections and Deposits I. INTRODUCTION 1. General Accounting Instructions a. Article IX-D Section 2(2) of the 1987 Philippine Constitution gives the Commission on Audit the authority to...

Collection and Deposit Workshop on Posting of Collections and Deposits I. INTRODUCTION 1. General Accounting Instructions a. Article IX-D Section 2(2) of the 1987 Philippine Constitution gives the Commission on Audit the authority to promulgate accounting rules and regulations. b. Section 334(c) of RA 7160, otherwise known as the Local Government Code of the Philippines, states that: “The financial records of the barangay shall be kept in the office of the city or municipal accountant in simplified manner as prescribed by the Commission on Audit”. (underscoring supplied) c. COA Resolution No. 2014-003 dated January 24, 2014 requires the adoption of Philippine Public Sector Accounting Standards (PPSAS) by all government agencies, hence, the need for the alignment of the barangay accounting to the said standards. 2. General Accounting Policies The following general policies shall be observed in accounting for barangay funds and property: a. For accounting purposes, the fiscal year for the barangay shall start on January 1st and end on December 31st of each year. b. The barangay financial transactions shall be recorded using the Chart of Accounts prescribed by the Commission on Audit. 3. Collections and Deposits The Barangay Treasurer shall be responsible for the proper handling of the funds of the barangay. a. Barangay collections include, but are not limited to, the following: 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 Barangay Fees and Taxes a. Fees imposed on: Peddlers Breeding of fighting cocks Use of barangay roads, waterways, bridges and parks Use of barangay properties/facilities Parking Clearance/Certification Other fees imposed by the barangays b. Taxes imposed on stores/retailers within the barangay c. Penalties for violation of barangay ordinance 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 Other Receipts a. Subsidies/Financial assistance from: National Government Provinces/Cities/Municipalities b. Grants and donations received c. Dividend/Interest from investments d. Proceeds from: Loans and other indebtedness Sale of Plant, Property and Equipment e. Receipt of: Performance/Bidders/Bail Bonds Refund of Payroll Fund/Advances to Officers and Employees Funds intended for specific purpose Payment for lost properties Payment due to overpayment of claims Other receipts II. Specific Roles 1. The BT and all accountable officers shall be bonded in accordance with Section 305 (f) of R.A. 7160 and DILG Memorandum Circular No. 99-186 dated October 11, 1999. The corresponding premium shall be paid out of barangay funds. 2. All collections, either in cash or in checks, shall be acknowledged through the issuance of an Official Receipt (OR) - Accountable Form No. 51 or other specific purpose receipts like Real Property Tax Receipt (RPTR) -Accountable Form No. 56, Community Tax Certificate (CTC) or pre-numbered cash tickets. 3. The prescribed officially numbered receipts shall be issued in strict numerical sequence. Strictly, erasures and alterations are not allowed in preparing the OR. 4. All particulars in the OR shall be filled out. Duplicate and triplicate copies of the OR shall be the exact carbon copy of the original. 5. Temporary or provisional receipts shall not be issued to acknowledge collections. 6. The OR shall be subject to proper custody, accountability and audit. 7. The BT shall be the custodian of all accountable forms. A complete record of the receipts, issuances and transfers of accountable forms shall be maintained. He shall also be responsible for the pre- numbering and control of cash tickets. 8. The BT and DBC shall render their Report of Accountability for Accountable Forms (RAAF) - Annex 18. 9. Only checks in the name of the barangay shall be accepted as payment of obligation to the barangay and issued the corresponding OR. The OR number and date of issue including the payor's control details shall be indicated at the back of the check for reference purposes. The details of the check shall be indicated in the space provided in the OR. 10. Collections shall not be used to encash checks or pay barangay obligations/liabilities. 11. Collections accruing to the barangay shall be deposited intact daily. Where travel time to the depository bank is more than one day, deposit shall be made at least once a week or as soon as the collections reach P5,000.00.  III. Specific Procedures 1. For collections made for the Barangay, the BT shall: a. Upon receipt of cash/check payment, issue an OR to acknowledge the amount received. The OR shall be issued strictly in numerical sequence and it shall be prepared in three copies to be distributed as follows: Original – Payee Duplicate copy - Attached to the RCD for submission to the C/M Accountant; then forwarded to the Auditor Triplicate copy - BT file b. At the end of the day, deposit the collections by preparing three copies of deposit slips for bank's validation. Original - to Bank Duplicate copy - to be attached to the RCD for submission to the C/M Accountant; then forwarded to the Auditor Triplicate copy - BT file c. Prepare the RCD to summarize daily transactions of the BT. d. Record daily in the cashbook the total collections and deposits made during the day based on RCD. e. Forward two copies of the RCD to the C/M Accountant, together with the supporting ORs and validated DS every end of the week for recording in the JCT. 2. Collections and deposits for the barangay shall be recorded in the Cashbook (Annex 8) maintained by the BT based on the RCD. 3. The C/M Accountant shall summarize all CMs including Debit Memos (DMs) received from the Bank with the Bank Statement of the Barangay in the Report of Bank Debit and Credit Memos (RBDCM) - Annex 10 and furnish the BT copy of the RBDCM as basis in posting collections. The RBDCM shall likewise be the basis of recording the transactions in the JCT. 4. Collections received through the bank or directly credited to the depository account of the barangay shall be recorded in the Cashbook based on the RBDCM. 5. Upon receipt of the Bank Statement, the C/M Accountant shall prepare a monthly Bank Reconciliation Statement (Annex 11). 6. Requisitions for new accountable forms for regular collections of the barangay shall be made from the C/M Treasurer. 7. Requisitions and issuances of accountable forms shall be reported in the monthly RAAF. Source: MANUAL ON THE FINANCIAL MANAGEMENT OF BARANGAYS https://www.coa.gov.ph/wp-content/uploads/ABC-Help/Financial_Management_Brgy/Toc.htm ADD: RAAF (ANNEX 18 (BRGY RAAF)).xlsx Cashbook entry of NTA Proper Receipt Entry