chapter 5

Question 1

constitute all payments in cash, in whatever manner ( through cash, check, or other means).

Answer 1

Disbursements

Question 2

disbursements shall be supported by

Answer 2

Disbursement Vouchers (including Petty Cash Vouchers) or Payroll

Question 3

Fundamental principles for disbursements of public funds

Answer 3

✓ All government resources shall be used only in accordance with the law and only for public purposes

✓ Trust funds shall be used only for their specific purposes

✓ Fiscal responsibility shall be strictly shared by all those exercising authority over a government agency

✓ The use of government resources shall be approved by proper officials

✓ Claims against government funds shall be supported with complete documentation

✓ All laws and regulations applicable to financial transactions shall be faithfully adhered to, including generally accepted principles and practices of accounting, management and fiscal administration, provided that they do not contravene existing laws and regulations.

Question 4

Expenditures funded by borrowings are included in the expenditure program of the entity

Answer 4

True

Question 5

The loan proceeds should not be used without the corresponding release of funds through a

Answer 5

Special Budget

Question 6

An entity can make disbursements only after it has received a disbursement authority, based on the:

Answer 6

Notice of Cash Allocation
Notice of Transfer of Allocation
Tax Remittance Advice
Non-cash Availment Authority
Cash Disbursement Ceiling

Question 7

authority issued by the DBM to agencies with foreign operations (DFA and DOLE) allowing them to use the income collected by their Foreign Service Posts to cover their operating requirements

Answer 7

Cash Disbursement Ceiling

Question 8

shall certify the availability of allotment

Answer 8

Budget Officer (or Head of Budget Unit)

Question 9

shall charge obligations against available allotment

Answer 9

Chief Accountant (or Head of Accounting Unit)

Question 10

Why does the chief accountant charge obligations against available allotment?

Answer 10

To ensure that no overdraft shall be incurred

Question 11

is incurred if obligations exceed the allotment

its incurrence is prohibited

Answer 11

Overdraft

Question 12

shall certify the availability of funds/cash and the completeness of the supporting documents before the Head of Agency (or his authorized representative) can enter into any contract involving the expenditure of public funds.

Answer 12

Chief Accountant (or Head of Accounting Unit)

Question 13

All disbursements require the certification of

Answer 13

Chief Accountant (or Head of Accounting Unit)

Question 14

must be based on valid and properly authorized claims

Answer 14

Certifications

Question 15

shall ensure that the disbursements are legal and conform to applicable rules and regulations

Answer 15

Requesting and Approving Officials

Question 16

shall certify the necessity and legality of disbursements

Answer 16

Head of Requesting Unit

Question 17

Payments shall be made through … and supported by the original copies of supporting documents

Answer 17

Disbursement Vouchers or Payroll

Question 18

shall approve all DVs or Payrolls

Answer 18

Head of Agency (or his authorized representative)

Question 19

Basic Requirements and Certifications for Disbursements

Answer 19

a. The Budget Officer (or Head of Budget Unit) shall certify the availability of allotment ;

b. The Chief Accountant (or Head of Accounting Unit) shall charge obligations against available allotment ;

c. The chief Accountant (or Head of Accounting Unit) shall certify the availability of funds/cash and the completeness of the supporting documents before the Head of Agency (or his authorized representative) can enter into any contract involving the expenditure of public funds.

d.The requesting and approving officials shall ensure that the disbursements are legal and conform to applicable rules and regulations ;

e. The Head of Requesting Unit shall certify the necessity and legality of disbursements. Payments shall be made through Disbursement Vouchers or Payroll and supported by the original copies of supporting documents; and

f. The Head of Agency (or his authorized representative) shall approve all DVs or Payrolls.

Question 20

Modes of Disbursements

Answer 20

a. Check

b. Cash

c. Cashless Payments

i. Advice to Debit Account (ADA)

ii. Electronic Modified Disbursement Systems (eMDS)

iii. Cashless Purchase Card System (Credit Card)

iv. Non-Cash Availment Authority (NCAA)

v. Tax Remittance Advice (TRA)

Question 21

are used whenever payments cannot conveniently, or are not authorized to, be made through cash or ADA.

Answer 21

Checks

Question 22

Two types of checks issued by government entities

Answer 22

a. Modified Disbursement System Checks

b. Commercial Checks

Question 23

checks chargeable against the account of the Treasurer of the Philippines maintained with different Modified Disbursement System-Government Servicing Banks (MDS-GSBs)

Answer 23

Modified Disbursement System Checks

Question 24

checks chargeable against the Agency Checking Account with GSBs. These are covered by income/receipts authorized to be deposited with Authorized Government Depository Banks (AGDBs)

Answer 24

Commerical Checks

Question 25

All checks drawn, whether released or unreleased to payees, including cancelled checks, are recorded chronologically in the … maintained by the…

Answer 25

Checks/ADA