CE No. 2 Flashcards
In charge of availability of allotment/budget for obligation/utilization
Budget Officer / Head of Budget Unit
In charge of obligations/Utilizations properly charged against available allotment/budget
Chief Accountant / Head of Accounting Unit
In charge of availability of funds and cash and completeness of supporting documents
Chief Accountant
In charge of legality of the transactions and conformity with rules and regulations
Head of requesting unit
In charge of approval of the disbursement
Head of Agency or by his duly authorized representative
authority issued by the DBM to central, regional and provincial offices and operating units to cover their cash requirements
Notice of Cash Allocation (NCA)
authority issued by an agency’s Central Office to its regional and operating units to cover the latter’s cash requirements
Notice of Transfer of Allocation (NTA)
authority issued by DBM to agencies to cover the liquidation of their actual obligations incurred against available allotments for availment of proceeds from loans/grants through supplier’s credit/constructive cash
Non-Cash Availment Authority (NCAA)
authority issued by DBM to to the Department of Foreign Affairs (DFA) and Department of Labor and Employment (DOLE) to utilize their income collected / retained by their Foreign Service Post (FSP) to cover their operating requirements
Cash Disbursement Ceiling (CDC)
2 types of Checks issued by the Government
- MDS checks
- Commercial checks
payments out of cash advances granted to the regular and special disbursing officers
Disbursements through Cash
maintains the Cash Disbursement Record. prepares the Report of Cash Disbursements
Disbursing Officer
disbursements made directly from the accounts of the BTr maintained with LBP
Disbursements through electronic Modified Disbursement System (eMDS)
consists of machinery, equipment, furniture and fixtures and similar items that are not capitalized as PPE because their costs are below the ₱50,000 capitalization threshold for PPE
Semi-Expendable Property
Subsequent measurement of goods held for sale
lower of cost and net realizable value
Subsequent measurement of goods held for distribution
Lower of cost and current replacement cost
If acquired through a non-exchange transaction, their cost shall be measured as their _____________ as at the date of acquisition.
fair value
refers to the amount an entity expects to realize from the sale of inventory in the ordinary course of business; estimated selling price less the estimated cost to complete and to sell.
Net Realizable Value
the amount for which the same inventory could be exchanged between knowledgeable and willing parties in an arm’s length transaction.
Fair value
the cost the entity would incur to acquire the inventory on the reporting date.
Current Replacement Cost
used in assigning cost to
inventories for interchangeable items.
Weighted average
used in assigning cost to inventories that are not ordinarily interchangeable.
Specific identification method
Reversals arising from an increase in net realizable value are recognized as ____________________ in the period in which they occur
reduction of the inventory expense
consists of the system of monitoring, controlling and recording of acquisition and disposal of inventory.
Accounting System of Inventory
Sub-systems for inventory accounting
- Receipt, inspection, acceptance and recording deliveries of inventory items.
- Requisition and issue of inventory items.
- Transfer and/or disposal of inventory items.
End users prepare the _____________.
Purchase Request (PR) form
Purchasing Unit prepares the ______________
Purchase order
How many suppliers are required to be canvassed for purchases amounting PHP 1,000 and above?
A canvass from at least 3 suppliers is required for purchases amounting to ₱1,000 and above.
Property/Supply Division prepares the ____________________ and forwards it to the Property Inspector.
Inspection and Acceptance Report (IAR)
The Property/Supply Division records accepted deliveries in the ___________________
Stock Card (SC)
The Accounting Division records accepted deliveries in the books of accounts and in the ________________________
Supplies Ledger Card (SLC).
The Property/Supply Division prepares the ______________________ then forwards it, together with the supporting documents, to the Accounting Division for processing of payment.
Disbursement Voucher (DV)
End users prepare the ________________________ to request for the issuance of inventory.
Requisition and Issue Slip (RIS)
The Property/Supply Division prepares the _____________________.
Report of Supplies and Materials Issued (RSMI)
The Accounting Division uses the ________ for recording in the books of accounts and updating of the Stock Ledger Card.
RSMI
used to report wasted materials, such as destroyed spare parts and other spoilages.
Waste Materials Report
used in reporting the results of physical counts of inventories.
Report on the Physical Count of Inventories
used to report the movement and status of accountable forms.
Report of Accountability for Accountable Forms
prepared when issuing semi- expendable property.
Inventory Custodian Slip
promise by a surety or guarantor to pay one party a certain amount if a second party fails to meet some obligation, such as fulfilling the terms of a contract. It protects the agency against losses resulting from the contractor’s failure to meet the obligation.
Surety bond
include all activities and associated costs for transportation of contractor’s personnel, equipment, and operating supplies to the site; establishment of offices, buildings, and other necessary general facilities for the contractor’s operations at the site.
Mobilization Fee
Have historical, cultural and environmental significance, and are intended to be preserved for future generations
Heritage Assets
Measurement of Heritage assets
Cost
renewal of a forest cover by planting seeds or young trees
Reforestation projects
PPE purchased under installment basis is initially measured at the ____________.
cash price equivalent
In case of ______________, the total cost paid shall be allocated to the asset acquired based on the relative fair value of the asset acquired.
lump sum price acquisition
What is the cost of assets acquired by contractor?
Contract price
What is the cost of assets acquired by administration?
cost includes direct materials, labor and other construction overheads
How to recognize donations without condition?
At fair value
(Income from Grant and Donations in Kind)
How to recognize donations with condition?
(Other Deferred Credits) and subsequently recognized as income when the condition is met
How is intra-agency transfer recognized?
measured at the original historical cost of the asset received less accumulated depreciation and accumulated impairment loss
How is inter-agency transfer recognized?
measured at the carrying amount of the asset received
How are grants measured?
Measured at its fair value as at the date of acquisition
Transfers substantially all the risks and rewards incident to ownership of an asset
Acquisitions through finance lease
When is a PPE impaired?
carrying amount exceeds its recoverable service amount or recoverable amount.
assets that are temporarily taken out of active use or temporarily abandoned; not derecognized but continued to be depreciated.
Idle PPE
when an asset’s carrying amount is equal to zero or its residual value and is not derecognized.
Fully depreciated PPE
those which do not have future economic benefits; it is derecognized.
Unserviceable property
used by the Supply/Property Division to record all movements in items of PPE. This is the equivalent of the Stock Card used for inventories.
Property Card
used by the Accounting Division to record all movements in items of PPE, both in quantity and monetary amount. This is the equivalent of the Stock Ledger Card used for inventories.
Property, Plant and Equipment Ledger Card
used by the Supply/Property Division to record the issuance of PPE to the end user. This is based on the approved Requisition and Issue Slip (RIS) submitted by the requesting individual. This is the equivalent of the Report of Supplies and Materials Issued used for inventories.
Property Acknowledgement Receipt
At the end of each year, the entity shall perform a physical count of PPE and prepare this report. This report shall be submitted to the COA not later than January 31 of the following year.
Report on the Physical Count of Property, Plant and Equipment
used to account for all unserviceable property subject to disposal.
Inventory and Inspection Report for Unserviceable Property
used by the accountable officer to notify the concerned officials of the lost, stolen, damaged or destroyed property.
Report of Lost, Stolen, Damaged or Destroyed Property
used to record transfers of property from one accountable officer to another.
Property Transfer Report
Borrowing costs expensed in the period incurred.
Benchmark Treatment
Method of capitalizing the borrowing costs if they are directly attributable to the acquisition of a qualifying asset.
Allowable alternative treatment
asset that necessarily takes a substantial period of time to get ready for its intended use or sale. (PPSAS 5.5)
Qualifying asset
The borrowing costs on loans borrowed by National Government
Expensed
The borrowing costs on loans borrowed by Government agencies
Capitalized
constitute all cash paid out during a given period either in currency (cash) or by check.
Disbursements
involves the preparation and processing of disbursement voucher, preparation and issuance of check; payment by cash; granting, utilization, and liquidation/replenishment of cash advances.
The Disbursement System
government’s estimate of the sources and uses of government funds within a fiscal year. This forms the basis for expenditures and is the government’s key instrument for promoting its socio-economic objectives.
National Budget (government budget)
Executive prepares the proposed National Budget
Budget Preparation
Congress authorizes the GAA
Budget Legislation
Agencies utilize their approved budgets
Budget execution
Executive monitor and evaluate the use of the budget
Budget accountability
Departments and agencies tasked to partner with civil society organizations (CSOs) and other citizen-stakeholders in preparing their agency budget proposals
Stakeholder Engagement
a reform that restructures the current Budget by grouping activities and projects under major programs or key strategies. Through this innovation, the government will be able to assign performance targets—both outputs and outcomes—at the level of programs.
Program Expenditure Classification (PREXC)
conducted after departments and agencies submit their Agency Budget Proposal to the DBM
Technical Budget Hearing
The recommendations are presented before an Executive Review Board which is composed of the DBM Secretary and senior officials
Executive Review
DBM then consolidate the recommended agency budgets and recommendations into a National Expenditure Program and a Budget of Expenditures and Sources of Financing (BESF).
Consolidation, Validation and Confirmation (CVC)
The proposed budget is presented by DBM, together with the DBCC, to the President and Cabinet for further refinements of prioritization.
Presentation to President and Cabinet
The House of Representative, in plenary, assigns the President’s Budget to the House Appropriations Committee.
House Deliberations
Senate conducts its own committee hearing and plenary deliberations on the GAB.
Senate Deliberations
Once both House of Congress have finished their deliberations, they will each constitute a panel to the Bicameral Conference Committee.
Bicameral Deliberations
The Harmonized or “Bicam” Version is then submitted to both Houses, which will the vote to ratify the final GAB for submission to the President.
Ratification and Enrollment
where budget items subjected to direct veto or conditional implementation are identified, and where general observations are made.
Veto message
When the GAA is not enacted before fiscal year starts, the previous year’s GAA is automatically reenacted.
Reenactment
authorization made by a legislative body to allocate funds for purposes specified by the legislative or similar authority.
Appropriation
annual authorizations for incurring obligations, as listed in the GAA.
New General Appropriations
authorizations to support the incurrence of obligations beyond the budget year
Continuing Appropriations
additional appropriations to augment the original appropriations which proved to be insufficient.
Supplemental Appropriations
authorizations programmed annually which do not require periodic action by Congress.
Automatic Appropriations
standby appropriations which may be availed only upon the occurrence of certain instances
Unprogrammed Funds
collections which the agencies can use directly in their operations.
Retained Income/Funds
receipts from business-type activities of agencies which are authorized to be constituted as such. These are *self-liquidating *and all obligations and expenditures incurred by virtue of said business-type activity shall be charged against the fund.
Revolving Funds
receipts by a government agency acting as agent.
Trust Receipts
These documents outline agency plans and performance targets.
Budget Execution Documents
DBM prepares _________________, which corresponds to the total amount of the agency- specific budget under the GAA
Allotment Release Program (ARP)
Released by DBM to all agencies comprehensively through the ABM and individually via SAROs
Allotment Release
Comprehensive allotment release document for appropriations which do not need clearance, or those which have already been itemized and fleshed out in the GAA
Agency Budget Matrix
Issued for items identified as “needing clearance” after approval of the agency’s Special Budget Request
Special Allotment Release Orders (SAROs)
Agencies incur liabilities on behalf of the government in implementing programs, activities and projects.
Incurring Obligations
Adopted to ensure the immediate implementation of programs, projects and activities.
The GAA as Allotment Order [Release] (GAAAO)
DBM issues a disbursement authority to an agency to pay the obligation it incurs.
Cash Allocation
A cash authority issued periodically by the DBM. Specifies the maximum amount of cash. Based on agency’s submission of Monthly Cash Program
Notice of Cash Allocation (NCA)
Issued for non-cash disbursements
Non-Cash Availment Authority (NCAA)
Issued to departments with overseas operations, allowing them to use income collected by their foreign posts for their operating requirements.
Cash Disbursement Ceiling (CDC)
Government monies are actually spent mostly through the __________________________________
Modified Disbursement Scheme
DBM monitors the efficiency of fund utilization, assesses agency performance and provides a vital basis for reforms and new policies
Budget Accountability
Agencies are held accountable not only for how these use public funds ethically, but also on how these attain performance targets and outcomes using available resources
PERFORMANCE & TARGET OUTCOMES
Required reports that show how agencies used their funds and identify their corresponding physical accomplishments
Budget and Financial Accountability Reports (BFARs)
conducted to determine each agency’s accomplishments and performance by the year-end
Annual Budget Performance Review (BPAR)
Recognizes and rewards good performance among government employees
Performance-Based Incentive System
an authorization made by a legislative body to allocate funds for purposes specified by the legislative or similar authority
Appropriation
an authorization issued by the DBM to government agencies to incur obligations for specified amounts
Allotment
a commitment by an agency arising from an act of duly authorized official binding the government to the immediate or eventual payment
Obligations
the budget of the preceding year which, by operation of
laws, becomes re-enacted and shall remain in force in effect until the general appropriation bill for the current
year is passed by Congress.
re-enacted budget
Shall be released directly to the RO or OU upon submission of Special Budget Request (SBR) with complete details of the activities or projects
Funds for Centrally-Managed Items (CMI) or Lump sum appropriations
Any change within an activity or project
Modification
An act of constitutional officers authorized to use savings in their respective appropriations to cover actual deficiencies incurred
Augmentation
portions or balances of any released appropriations which have not been obligated
Savings
What are the two documents / reports, which are required by the DBM to be submitted on a regular basis?
1.Budget Execution Documents (BEDs)
2.Budget and Financial Accountability Reports (BFARs)
When to submit BEDs
not later than November 30.
Revisions: on or before January 7 of the year.
shall include the comparative obligation levels for the budget year and current year
Financial Plan (FP)
BED No. 1
shall consist the performance indicators
department/agency
BED No. 2: Physical Plan (PP)
Reflect the total cash and non-cash program for the budget year by type of fund category, by allotment class and by type of disbursement authority
BED No. 3: Monthly Disbursement Program (MDP)
shall reflect the monthly quantity and cash requirements by items categorized:
* Available at Procurement Service Stores, and
* Other items not available at Procurement Service but regularly
purchased from other sources.
Annual Procurement Plan for Common-Use Supplies and Equipment (APP-CSE)
BED No. 4
reflect the Department’s/Agency’s actual physical accomplishments as at a given quarter, in terms of the performance measures indicated in its Physical Plan in BED No. 2.
Quarterly Physical Report of Operation (QPRO)
Budget Accountability Report - BAR No.1.
reflect the authorized appropriations and adjustments, total allotments received including transfers/adjustments, total obligations, total disbursements and the balances of unreleased appropriations, unobligated allotments, and unpaid obligations of a department/office/entity by fund cluster and by allotment class.
Statement of Appropriations, Allotments, Obligations, Disbursements and Balances - Financial Accountability Report (SAAODB) FAR No. 1 .
shall be prepared by Funding Source Code (FSC) as clustered. shall reflect the summary of appropriations, allotments, obligations, disbursements and balances detailed by object of expenditures consistent with the COA Revised Chart of Accounts per COA Circular No. 2013-002 dated January 30, 2013 and the Conversion from the Philippine government chart of accounts to the Revised Chart of Accounts
Summary of Appropriations, Allotments, Obligations, Disbursements and Balances by Object of Expenditures -
(SAAODBOE) - FAR No. 1.A.
shall reflect the allotments released by the DBM and the sub-allotments issued by the Agency Central Office/RO, their corresponding numbers, date of issuance, and amounts by allotment class and by Fund Cluster
List of Allotments and Sub-Allotments (LASA)
FAR No. 1-B
shall reflect the approved budget, the utilizations, disbursements and balance of the entity’s income authorized by law to use, such as OWWA/SUCs, duly approved by their Board of Trustee/Regents
Statement of Approved Budget, Utilizations, Disbursements and Balances (SABUDB)
FAR No. 2 (For Off-Budget Fund).
shall reflect the details of the approved budget, utilizations, disbursements and balance of the entity’s income authorized by law to use presented by object of expenditures consistent with the COA Revised Chart of Accounts
Summary of Approved Budget, Utilizations, Disbursements and Balances by Object of Expenditures (SABUDBOE)
FAR No. 2.A (For Off-Budget Fund)
shall be prepared by FSC as clustered and shall reflect the balance of unpaid obligations as indicated in the Obligation Request and the aging of due and demandable obligations as of year-end
Aging of Due and Demandable Obligations (ADDO)
FAR No. 3.
shall reflect the total disbursements made by department, office or entity and operating unit by Fund cluster
Monthly Report of Disbursements - (MRD) FAR No. 4.
shall reflect the actual revenue and other receipts/collections from all sources of the agency/OU for the current year presented by quarter, and by specific sources consistent with the COA Revised Chart of Accounts.
Quarterly Report of Revenue and Other Receipts (QRROR)
FAR No . 5
