GOVERNMENT ACCOUNTANCY AND

FINANCIAL MANAGEMENT INFORMATION SYSTEM

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 Systems and Procedures Manual on the
Management of Barangay Funds and Property

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 Learning Objective

 To understand the policies on

operating, recording and
reporting governing
appropriations and
commitments

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 OUTLINE
 Budget Accounting Process
 Legal Provision
 Definition of Terms
 Appropriations and Commitments
 Policies
 Operating, Recording and Reporting
Policies

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The Budget Accounting Process
Approved
Budget RAC
(GAO)

DV/ Payroll/
PR /PO/
Contract

City/Municipal
CSACB Budget Office SACB

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 Sec. 29, (1) of the
Constitution provides:

“No money shall be paid out of the

treasury except in pursuance of an
appropriation made by law.”

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Definition of Terms

Appropriations
Appropriations – are amounts in the
annual or supplemental budget that are
authorized by the Sanggunian or
legislative body to be obligated or spent
for the undertaking of a particular
function, program, activity or project, for
which services have been rendered or
goods delivered.

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Definition of Terms

Commitments
Commitments – are amounts
earmarked by the barangay, arising
from an act of a duly authorized
official which binds the barangay to
the immediate or eventual payment
of a sum of money.
Note: “Commitments” shall be used
synonymously as “Obligations”
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 Policies
Laws, rules and regulations of the
government provide that all
disbursements of public funds, except
those received for specific purposes,
shall be covered by an approved General
Appropriations Ordinance (GAO)
authorizing appropriation for the annual
budget, the expenditure items of which
shall be in accordance with Philippine
Government Chart of Accounts under
NGAS.

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 Policies

Unless authorized and covered by

subsequent SB Resolution
approving the appropriation,
commitments shall not exceed
the approved appropriations.

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Policies on Appropriations

The Kagawad, designated as Chairman, Committee

on Appropriations (CCA) shall be responsible in
monitoring the approved appropriations and the
charges against the following funds:

 General Fund
 20% Development Fund
 Calamity Fund
 Sangguniang Kabataan Fund
 Gender and Development Fund

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Policies on Appropriations

The CCA shall monitor the use of

appropriated funds thru the Registry of
Appropriations and Commitments (RAC)
which shall be maintained by Fund, by
class (PS, MOOE, FE and CO) with
breakdown as to account classification.

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Policies on Appropriations

The BRK shall prepare the RAC

The CCA may examine/check anytime,

the balance of appropriations and the
recording in the registries.

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Policies on Commitments

1. Charges (deductions) against the

appropriated funds shall be based on
commitments made by the Barangay
as shown in the Disbursement
Vouchers/Payrolls for Personal
Services, Contracts or Purchase
Orders and Purchase Requests ;

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Policies on Commitments

2. In addition to the certification in the

Disbursement Vouchers Payrolls, the
existence of available appropriations as
reflected in the SB Resolution shall
also be shown on the face of the
Contracts and Purchase Orders (POs);

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Policies on Commitments

The certification of the CCA on the

“existence of available
appropriations” means the
availability of appropriations to
cover the commitment.

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Policies on Commitments

3. For all procurement including infrastructure

projects, the CCA shall certify the availability
of funds by stamping “Funds (Appropriations)
Available” on the face of the Purchase
Request (PR) and affix his signature
indicating the estimated required amount on
the available appropriation on the PR based
on the SB Resolution authorizing the
construction/ procurement; and

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Policies on Commitments

4. Expenses for Personal Services (PS),

Maintenance and Other Operating
Expenses (MOOE) and Financial
Expenses (FE) shall be charged against
respective appropriation; and

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Policies on Commitments

Investments, purchase of PPE and

construction of Public
Infrastructures (PI) and
Reforestation Projects (RP) shall be
charged against appropriations for
Capital Outlay (CO).

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 Major Classes of
Expenditures

- Personal Services (PS)

- Maintenance and Other Operating
Expenses (MOOE)
- Capital Outlay (CO)
- Financial Expenses (FE)

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 Commitments/Charges against
Appropriated Funds

Commitments/Charges against the

appropriations for the four major classes of
expenditures shall include but are not limited to
the following:
Personal Services
 Salaries and Wages – Regular
 Salaries and Wages – Contractual
 Honoraria
 Cash Gift

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 Commitments/Charges against
Appropriated Funds

Maintenance and Other Operating

Expenses
 Traveling Expenses – Local

 Training Expenses

 Supplies and Materials Expenses

 Utility Expenses

 Communication Expenses

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 Commitments/Charges against
Appropriated Funds

Maintenance and Other Operating Expenses

 Membership Dues and Contributions to

Organizations
 Rent Expenses
 Repairs and Maintenance of PPE
 Repairs and Maintenance of PIs and RPs
 Taxes, Insurance Premiums and Other Fees

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 Commitments/Charges against
Appropriated Funds

Capital Outlay
 Investments in Treasury Bills
 Purchase/Construction of the following
PPE:
 Land
 Land Improvements
 Buildings
 Leasehold Improvements

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 Commitments/Charges against
Appropriated Funds

Capital Outlay

 Office Equipment
 Furniture and Fixtures
 Books
 Motor Vehicles
 Other Equipment
 Public Infrastructures
 Reforestation Projects

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 Commitments/Charges against
Appropriated Funds

Financial Expenses

 Bank Charges (cost of checkbooks)

 Interest Expenses
 Other Financial Charges

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 Policies on Monitoring of Appropriations

Basic principle in government finance -

 No funds shall be spent without the
necessary appropriations
 Monitoring of the approved approp-
riations of barangays and the
commitments/ charges against such
appropriations to prevent the
incurrence of commitments/charges
with insufficient or without
appropriations

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Policies on Recording the GAO and Commitments

1. The following registries shall be

maintained by the CCA/BRK for the five
funds of the barangay by class and by
object of expenditures:
 Registry of Appropriations and
Commitments – General Fund

 Registry of Appropriations and

Commitments – Calamity Fund

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Policies on Recording the GAO and Commitments

 Registry of Appropriations and

Commitments – 20% Development
Fund

 Registry of Appropriations and

Commitments- Sangguniang Kabataan
Fund

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Policies on Recording the GAO and Commitments

 Registry of Appropriations and

Commitments – Gender and
Development Fund
2. Postings in the appropriations columns of
the Registry of Appropriations and
Commitments (RAC) shall be based on the
GAO of the barangay;

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Policies on Recording the GAO and Commitments

3. Postings of commitments in the RAC

shall be based on the amount of
commitments/charges as certified in the
Disbursement Voucher (DV), Payroll,
Contract/Purchase Order (PO);

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Policies on Recording the GAO and Commitments

4. Commitments/Charges for Personal

Services (PS), Maintenance and Other
Operating Expenses (MOOE), Financial
Expenses (FE) and Capital Outlay (CO)
shall be recorded in their respective
RAC for the General Fund (GF);

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Policies on Recording the GAO and Commitments

5. Commitments/Charges against the

Calamity Fund (CF), 20% Development
Fund (DF), Sangguniang Kabataan
Fund (SKF) and Gender and
Development Fund (GDF) shall be
recorded in their respective RAC with a
detailed breakdown of expenditures;

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Policies on Recording the GAO and Commitments

6. The balance of appropriations for PS,

MOOE, FE and CF shall be
reverted/closed at the end of the year
and shall not be made available for
commitments/charges after the
calendar year unless otherwise
authorized to be retained as
continuing appropriations;

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Policies on Recording and the GAO and Commitments

7. Balance of appropriations for CO, 20%

Development Fund and SK Fund,
however, shall be valid until fully spent
or until the project is completed. The
balance, if any, shall be forwarded to
the RAC of the following year.

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 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - GENERAL FUND
PERSONAL SERVICES
For the Calendar Year 2007

Barangay: SIMAMLA City/Municipality:VIRAC

Tel. No.: 811-0936 Province: CATANDUANES

Date Breakdown
Particulars Ref Appropriations Salaries & Sal. & Wages- Commitments Balance
2007 Wages-Reg Contractual
Honoraria Cash Gift

1/2 Ordinance NO. 001-07 330,200.00 108,000.00 64,800.00 132,000.00 25,400.00 330,200.00
1/18 Payroll salaries of employees 2007-01-013 5,000.00 5,000.00 325,200.00
1/18 Payroll of security guard 2007-01-021 1,700.00 1,700.00 323,500.00
1/25 Honorarium of barangay officials 2007-01-015 13,200.00 13,200.00 310,300.00
Honorarium of of PB 2007-01-014 1,400.00 1,400.00 308,900.00

12/31 Grand Totals 330,200.00 106,000.00 64,500.00 132,000.00 25,400.00 327,900.00 2,300.00

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
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 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - GENERAL FUND
MAINTENANCE AND OTHER OPERATING EXPENSES
For the Calendar Year 2007
Barangay: SIMAMLA City/Municipality: VIRAC
Virac
Tel. No.: 811-0936 Province: CATANDUANES
Catandunaes
Breakdown
Date Gas, Oil &
Repair &
Particulars Ref Appropriations Repair & Maint.- Insurance Tel. Exp.- Office Taxes Duties & Post. & Total Balance
Maint.- Electricity Lubricants Others
Motor Vehicles Premuims Moblie Supplies Licenses Deliveries Commitments
2007 Office Bldg Exp.

1/2 Ordinance No. 001-07 194,138.00 35,000.00 40,000.00 25,000.00 3,500.00 5,000.00 38,394.00 20,000.00 10,000.00 2,500.00 14,744.00 194,138.00
1/3 Electric bill from FICELCO 2007-01-017 1,480.50 1,480.50 192,657.50
Registration of motor vehicles 2007-01-008 1,600.00 1,600.00 191,057.50
Renewal of property insurance 2007-01-006 985.00 985.00 190,072.50
1/6 Establishment of PCF 2007-01-010 5,000.00 5,000.00 185,072.50
Gasoline - Petron Gas Station 2007-01-018 1,500.00 1,500.00 183,572.50
1/10 Job Order repair of motor vehicles 2007-01-019 2,000.00 2,000.00 181,572.50
1/18 Payroll of repair of barangay hall 2007-01-020 800.00 800.00 180,772.50
1/26 Replenishment of PCF 2007-01-016 300.00 350.00 80.00 730.00 180,042.50

12/31 Grand Totals 194,138.00 35,000.00 40,000.00 25,000.00 3,000.00 4,500.00 38,394.00 20,000.00 9,500.00 2,500.00 13,500.00 191,394.00 2,744.00

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date 37
 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - GENERAL FUND
CAPITAL OUTLAY
For the Calendar Year 2007
Barangay: SIMAMLA City/Municipality: VIRAC
Tel. No.: 811-0936 Province: CATANDUANES
Breakdown
Date Buildings Parks, Plaza Total
Particulars Ref Appropriations Office Furniture Other Motor Other Roads & Reforesta- Balance
Land and & Commitments
2007 Equipmt. & Fixtures Equipment Vehicles PPE Bridges tion
Structure Monuments

1/2 Ordinance No. 001-07 81,101.94 81,101.00 81,101.00

1/5 PO for 1 set of computer 2007-01-012 30,000.00 30,000.00 51,101.00

12/31 Grand Totals 81,101.00 75,986.00 75,986.00 5,115.00

Balance forwarded 5,115.00 5,115.00
to 2008 RAC-Continuing

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
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 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - CALAMITY FUND
For the Calendar Year 2007

Barangay: SIMAMLA City/Municipality: VIRAC

Tel. No.: 811-0936 Province: CATANDUANES
Breakdown
Date Total
Particulars Ref Appropriations Food Supplies Med, Dental & Balance
Commitments
2007 Expenses Lab. Supplies
1/2 Ordinance No. 001-07 60,858.00 60,858.00
1/8 Purchase of groceries & medicines 2007-01-001 500.00 2,000.00 2,500.00 58,358.00

12/31 Grand Totals 60,858.00 40,000.00 5,000.00 5,000.00 10,858.00 60,858.00 -0-

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
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 REGISRTY OF APPROPRIATIONS AND COMMITMENTS - 20% DEVELOPMENT FUND
For the Calandar Year 2007

Barangay: SIMAMLA City/Municipality: VIRAC

Tel. No.: 811-0936 Province: CATANDUANES
Breakdown
Date
Particulars Ref Appropriations Repairs & Maint - Commitments Balance
2007 Roads

1/2 Ordinance No. 001-07 102,000.00 102,000.00

1/11 Purchase of construction 2006-01-001 15,000.00 15,000.00 87,000.00

materials for barangay roads

12/31/07 Grand Totals 102,000.00 102,000.00 102,000.00 -0-

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
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 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - SANGGUNIANG KABATAAN FUND
For the Calendar Year 2007
Barangay: SIMAMLA City/Municipality: VIRAC
Tel. No.: 811-0936 Province: CATANDUANES
Breakdown
Date
Buildings Total
Particulars Ref Appropriations Office Balance
and Commitments
2007 Equipmt.
Structures

1/2 Ordinance No. 001-07 50,066.00 25,066.00 25,000.00 50,066.00

1/11 Purchase of construction materials 2007-01-001 12,500.00 12,500.00 37,566.00

12/31 Grand Totals 50,066.00 25,066.00 25,000.00 50,066.00 -0-

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
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 Policies on Reporting the GAO
and Commitments

The Status of Appropriations, Commitments

and Balances (SACB) shall be prepared to
check on the utilization of the appropriated
funds of the barangays. To comply with the
requirement and to facilitate the work of the
City/Municipal Budget Officer, the basic
policies in reporting the General
Appropriation Ordinance (GAO) and the
commitments are as follows:

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 Policies on Reporting the GAO
and Commitments

1. The BRK shall close and certify the

correctness of entries in the RACs at
year end

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 Policies on Reporting the GAO
and Commitments

2. The BRK shall prepare the Status of

Appropriations, Commitments and
Balances (SACB) for Current Legislative
Appropriations and Continuing
Appropriations for the barangay based on
the RACs for the five funds.

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 Policies on Reporting the GAO
and Commitments

3. The SACB shall be submitted annually

to the City/Municipal Budget Officer on
the 5th day of January of the ensuing
year for review and consolidation with
all the SACB of the different barangays
in the city/municipality.

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 STATUS OF APPROPRIATIONS, COMMITMENTS AND BALANCES
(Current Legislative Appropriations)
As of _________________________
As of December 31, 2007

Barangay: SIMAMLA City/Municipality: VIRAC

Tel. No.: 811-0936 Province: CATANDUANES
Appropriations
Fund Commitments Balance
Total Annual Supplemental
General Fund
Personal Services 330,200.00 330,200.00 327,900.00 2,300.00
Maintenance and Other Operating Expenses 194,138.00 194,138.00 191,394.00 2,744.00
Capital Outlay 81,101.00 81,101.00 75,986.00 5,115.00
Sub-total
Calamity Fund
Maintenance and Other Operating Expenses 60,858.00 60,858.00 60,858.00 0.00
Sub-total
20% Development Fund
Maintenance and Other Operating Expenses
Capital Outlay 102,000.00 102,000.00 102,000.00 0.00
Sub-total
Sangguniang Kabataan Fund
Maintenance and Other Operating Expenses
Capital Outlay 50,066.00 50,066.00 50,066.00 0.00
Sub-total
Gender and Development Fund
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Grand Total 818,363.00 808,204.00 10,159.00
Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
Noted by:

Signature over Printed Name

Punong Barangay
46
Date
 STATUS OF APPROPRIATIONS, COMMITMENTS AND BALANCES
(Continuing Appropriations)
As of December 31, 2007

Barangay: Simamla City/Municipality: Virac

Tel. No.: 811-2318 Provinve: Catanduanes
Appropriations
Fund Commitments Balance
Total Annual Supplemental
General Fund
Capital Outlay
Sub-total
20% Development Fund
Maintenance and Other Operating Expenses
Capital Outlay
Sub-total
Sangguniang Kabataan Fund
Maintenance and Other Operating Expenses
Capital Outlay
Sub-total
Grand Total
Prepared by: Certified by:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
Noted by:

Signature over Printed Name

Punong Barangay 47

Date
The Budget Accounting Process
Approved
Budget RAC
(GAO)

DV/ Payroll/
PR /PO/
Contract

City/Municipal
CSACB Budget Office SACB

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