Commission on Human Rights

United Nations Development Programme

PHI/02/011 RIGHT TO DEVELOPMENT:

STRENGTHENING INSTITUTIONAL CAPACITIES
TO MAINSTREAM GENDER AND HUMAN RIGHTS

CHR Reengineering Project

Financial Accounting
System
DESIGN REPORT
OCTOBER 2003

CENTER FOR PUBLIC RESOURCE MANAGEMENT, INC. Consultants, inc.

 PHI/02/011 RIGHT TO DEVELOPMENT:
STRENGTHENING INSTITUTIONAL CAPACITIES
TO MAINSTREAM GENDER AND HUMAN RIGHTS

CHR Reengineering Project

Financial Accounting
System
DESIGN REPORT
OCTOBER 2003
CHR REENGINEERING PROJECT DRAFT DESIGN REPORT
Financial Accounting System

CONTENTS

EXECUTIVE SUMMARY ii

CHAPTER 1 GENERAL INTRODUCTION

1 Introduction 1
2 Objectives 2
3 Context 2
4 Framework 3

CHAPTER 2 POLICIES AND PROCEDURES

1 Accounting for Cash Receipts 4
2 Accounting for Disbursements 5
3 Accounting for Inventories and Properties 7

CHAPTER 3 FINANCIAL ACCOUNTING PROCESS

1 CHR Accounting Process 9
2 Accounting Policies, Rules and Procedures 9
3 Accounting Books, Records, Forms and Reports 10
4 Chart of Accounts 10
5 Financial Statement Preparation Process 10

CHAPTER 4 MAINTENANCE BUDGET ACCOUNTING RECORDS

1 Introduction 11
2 Recording and Reporting Procedures 12

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EXECUTIVE SUMMARY

FINANCIAL ACCOUNTING

1 INTRODUCTION
1.1.1 Financial Accounting encompasses the processes of analyzing, recording,
classifying, summarizing and communicating all transactions involving the receipt
and disposition of government funds and property, and interpreting the results
thereof.

1.1.2 The Commission on Human Rights of the Philippines (CHRP) adopts the New
Government Accounting System (NGAS). The design report on Financial Accounting
for the CHRP is thus based on this consideration.

1.1.3 The policies, processes and procedures indicated in the COA manual on NGAS will
no longer be reflected in this report. Instead the proposed design of an accounting
for budgetary accounts will be reflected. The system will be set up in the CHRP for
appropriate tracking of balances of appropriations and allotments, NCAs received,
cash balances of the regions, and allotment balances of the individual offices.

2 OBJECTIVES
2.1.1 The objectives of the financial accounting system under the law are to:

a) Produce information concerning past operations and present conditions;

b) Provide a basis for guidance for future operations;

c) Provide for control of the acts of public bodies and officers in the receipt,
disposition, and utilization of funds and property; and

d) Report on the financial position and results of operation of government

agencies for the information of all persons concerned. (Sec.110, Presidential
Decree 1445; Sec.41, Subtitle B, Book V, E.O.292, The Revised Administrative
Code of 1987).

2.1.2 In addition, in line with the reform vision of this study, the design objectives for the
financial accounting system of the CHRP are to enhance accountability,
transparency, and to provide accounting information for economic and administrative
decision-making.

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3 CONTEXT
3.1.1 The existing financial management system in the CHRP is highly centralized. All
financial transactions of the CHRP, including those of the Regional Offices are
handled by the Financial Management Office (FMO).

3.1.2 It is the thrust of the CHRP to decentralize its operations. The essence of
decentralization is delegation of authority and assignment of responsibility to the
middle/lower echelon of management. In the case of CHRP, to its Regional Offices.

3.1.3 However, the present set-up of the CHRP, even with the newly approved staffing
pattern, shows that the individual offices especially those in the Regions do not have
the capacity yet for a decentralized accounting system. In fact, the duly approved
staffing pattern does not provide for an Accountant or Accounting Specialist in the
Region. Thus, limited delegation of authority could be made to the regions.

3.1.4 The authority which will be delegated to the regions include the following:

a) Preparation and submission of budget proposals to the FMO for consolidation

with the overall budget of the CHRP;

b) Authority to incur obligations within the limits of the released allotments;

c) Authority to disburse funds within the limits of the allotments received, and
accordingly approve vouchers for the payment of obligations in accordance
with laws and regulations.

4 FRAMEWORK
ADOPTION OF THE NGAS

4.1.1 As required by the National Government through its accounting and auditing arm, the
Commission on Audit, the CHRP will fully adopt the New Government Accounting
System.

STRENGTHENING ACCOUNTABILITY OF PERSONNEL

4.1.2 Accounting for government funds, and in this case, accounting for the funds of the
National Government as allocated to the CHRP, carries with it public accountability.
The personnel involved in the processing of such funds have the responsibility to:

a) safeguard government resources against loss and wastage;

b) adhere to the requirements of law and administrative policies and regulations;
c) practice economy and efficiency in operations; and
d) deliver the desired results of programs and projects.

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ENHANCING ACCOUNTING RECORDS

4.1.3 The newly adopted NGAS focuses on the recording and preparation of reports on the
financial transactions. It is important that budgetary transactions will also be taken
into consideration. The keeping of the records for these types of transactions is also
important to determine the actual financial standing of the CHRP and of its individual
offices.

5 CHRP ACCOUNTING PROCESS

5.1.1 The CHRP accounting system will be implemented through a centralized
arrangement. Tracking of financial operations will be more manageable using this
kind of system. Regional Offices will therefore have to reckon with Central Office
rules. Delegated authority up to the allowable limit requires the administration of
regular operations budget for mandatory PS and MOOE items.

5.1.2 The accounting policies, books, records, forms, reports, and chart of accounts as
prescribed in the Manual on the New Government Accounting System will be
adopted and will be used by the CHRP in the preparation of its Financial Statements
for reporting to management and other oversight agencies.

6 MAINTENANCE BUDGET ACCOUNTING RECORDS

6.1.1 Under the NGAS, obligation accounting is modified to simplify procedures in the
incurrence and liquidation of obligations and the recording of budgetary accounts
(allotments and obligations incurred and liquidated). Journal entries will no longer be
prepared to record the receipt of allotments from the Department of Budget and
Management (DBM) and the incurrence of obligations by the CHRP. In lieu of this,
separate registries are maintained to control the allotments and obligations for each
of the four classes of allotments, namely:

a) Registry of Allotments and Obligations Capital Outlay (RAOCO)

b) Registry of Allotments and Obligations Maintenance and Other Operating

Expenses (RAOMO)

c) Registry of Allotments and Obligations Personal Services (RAOPS)

d) Registry of Allotments and Obligations - Financial Expenses (RAOFE)

6.1.2 This report on financial accounting will enhance the NGAS by presenting procedures
and processes in accounting for the following transactions:

a) Approval of Appropriations upon approval of appropriations, the following

records will be prepared:
Appropriations Registry - a record showing the total appropriations for the
year, the allotments received, and the balance of appropriations as of a

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given date. This will keep track of the total government support receivable
from the National Government.

Appropriations Registry, per allotment class a record showing the

appropriations, and balance of appropriations receivable from the National
Government per PS, MOOE, CO and FE.

Schedule of Appropriations, per PPA the total appropriations received for

the year will be prepared with a schedule detailing the program, project, or
activity that it is appropriated for.

Schedule of Appropriations, per office a total appropriations received will

be prepared with a schedule detailing the subdivision of the total
appropriations per office. This schedule will be the basis for the preparation
of the allotments to the different offices.

b) Release of Appropriations and Incurrence of Obligations the total

appropriations received by the CHRP will be further released to its different
offices. The following records will be kept to keep track of the total releases to
the different offices:
Registry of Appropriations and Allotments Issued this registry will be kept
by both the FMO and all CHRP offices. This will show the total allotments
issued to the offices and the balance of appropriations as of a given period.
It will also show the total obligations incurred and the balance of allotments
issued.

c) Receipt of Allotment, NCAs, Cash releases and liquidation of obligations

aside from the RAOs, which are prescribed under the NGAS, the following
records, will be kept by the Budget Division.
Allotment and NCA Registry this registry will detail the total allotments
received by the CHRP as of a given time and the corresponding NCAs
issued by the DBM to cover the allotment. This record will show the
balance of unfounded allotment as of a given period.

Registry of Allotments and Cash Issued this record will be maintained by

both the FMO and the Regional Offices. It shows the total allotments
issued/received as of a given date, cash released/received and the total
balance of unfounded allotments. It will also show the cash position as of a
given date.

6.1.3 The BCAD will be the office responsible for keeping track of the budgetary accounts.

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1
GENERAL INTRODUCTION

1 INTRODUCTION
1.1.1 Financial Accounting encompasses the processes of analyzing, recording,
classifying, summarizing and communicating all transactions involving the receipt
and disposition of government funds and property, and interpreting the results
thereof. (Sec. 109, President Decree 1445; Sec.40, Subtitle B, Book V, E.O.292,
The Revised Administrative Code of 1987).

1.1.2 The Commission on Audit (COA) in its Circular No. 2001-004 prescribed the use by
government agencies of the New Government Accounting System (NGAS) effective
January 1, 2002. The NGAS is a set of accounting concepts, guidelines, and
procedures for recording government financial transactions and production of
financial reports.

1.1.3 The Commission on Human Rights of the Philippines as a government agency must
adhere to and strictly follow the accounting system prescribed by the National
Government through the COA.

1.1.4 This report on Financial Accounting for the CHRP therefore adopts fully the New
Government Accounting System (NGAS) as designed for the all government
agencies to comply. As such, the policies, processes and procedures indicated in the
Manual on the NGAS will not anymore be repeated on this report.

1.1.5 In addition to the NGAS, an accounting for budgetary accounts will be set up in order
for the CHRP and all its offices to properly track the balances of appropriations,
allotments, NCAs received, cash balances of the regions, and allotment balances of
the individual offices.

1.1.6 This design report consists of the following components:

a) Policies and procedures for the following:

Accounting for Cash receipts;
Accounting for Disbursements; and
Accounting for Inventories and Properties
b) General Accounting Processes of the CHRP
c) Maintenance of Budget Accounting Records

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2 OBJECTIVES
2.1.1 The objectives of the financial accounting system under the law are to:

a) Produce information concerning past operations and present conditions;

b) Provide a basis for guidance for future operations;

c) Provide for control of the acts of public bodies and officers in the receipt,
disposition, and utilization of funds and property; and

d) Report on the financial position and results of operation of government

agencies for the information of all persons concerned. (Sec.110, Presidential
Decree 1445; Sec.41, Subtitle B, Book V, E.O.292, The Revised Administrative
Code of 1987).

2.1.2 In addition to the above, and in line with the reform vision of this study, this report is
made with the desire to enhance accountability, transparency, and the provision of
accounting information for economic and administrative decision-making.

3 CONTEXT
3.1.1 The existing financial management system in the CHRP is highly centralized. All
financial transactions of the CHRP, including that of the Regional Offices are handled
by Financial Management Office.

3.1.2 It is the thrust of the CHRP to decentralize its operations. The essence of
decentralization is delegation of authority and assignment of responsibility to the
middle/lower echelon of management. In the case of CHRP, to its Regional Offices.

3.1.3 However, the present set-up of the CHRP, even with the newly approved staffing
pattern, shows that the individual offices especially those in the Regions do not have
the capacity yet for a decentralized accounting system. In fact, the duly approved
staffing pattern does not provide for an Accountant or Accounting Specialist in the
Region. Thus, the Accounting system will still be centralized, but there would be a
limited authority delegated to the regions.

3.1.4 The authority delegated shall include among others, the following:

a) Preparation and submission of budget proposals to the FMO for consolidation

with the overall budget of the CHRP;

b) Authority to incur obligations that are within the limits of the released
allotments;

c) Authority to disburse funds within the limits of the allotments received and
accordingly approve vouchers for the payment of obligations in accordance
with laws and regulations.

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4 FRAMEWORK
ADOPTION OF THE NGAS

4.1.1 As required by the National Government through its accounting and auditing arm, the
Commission on Audit, the CHRP will fully adopt the New Government Accounting
System.

STRENGTHENING ACCOUNTABILITY OF PERSONNEL

4.1.2 Accounting is not merely a simple process of recording and summarizing financial
transactions. Accounting for government funds, and in this case, accounting for the
funds of the National Government as allocated to the CHRP, carries with it public
accountability. The personnel involved in the processing of such funds have the
responsibility to:

a) safeguard government resources against loss and wastage;

b) adhere to the requirements of law and administrative policies and regulations;
c) practice economy and efficiency in operations; and
d) deliver the desired results of programs and projects.

ENHANCING ACCOUNTING RECORDS

4.1.3 The newly adopted NGAS focuses on the recording and preparation of reports on the
financial transactions. It is important that budgetary transactions will also be taken
into consideration. The keeping of the records for these type of transactions is also
important to determine the actual financial standing of the CHRP and of its individual
offices.

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2
POLICIES AND PROCEDURES

1 ACCOUNTING FOR CASH RECEIPTS

1.1.1 Accounting for receipts of cash covers the processes of acknowledging and reporting
collections, deposits of collections with Authorized Government Depository Bank
(AGDB), and recording the same in the books of accounts.

POLICIES

1.1.2 Accounting for Cash Receipts is anchored on the following policies:

a) All collections shall be acknowledged, deposited with Authorized Government

Depository Banks (AGDB) and recorded in the books of account.

b) The collection function shall be performed by the Cashier or by duly designated

Collecting Officers who shall be bonded with the Fidelity Fund of the Treasury
of the Philippines.

c) All monies of whatever nature/source received by the CHRP shall be promptly

acknowledged by issuing pre-numbered Official Receipts (ORs). In no case
shall Temporary Receipts be used in lieu thereof.

d) For collections in the form of checks, the following shall be observed:

Checks shall be made payable to the Commission on Human Rights of the

Philippines.
If the amount of the check is more than what is due, the entire amount
should be receipted for. Payor may claim the refund of the excess amount
through the disbursement procedure.
No endorsed check or post-dated check shall be accepted.

e) Recording of collections and deposits shall be made in the appropriate

accounting book within the working day when the supporting documents were
received.

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CASH RECEIPTS FROM NATIONAL GOVERNMENT

1.1.3 The National Government Budget support, equivalent to the appropriations of the
CHRP for the year is transferred to the account of the CHRP through the Notice of
Cash Allocation released to the CHRP. This is directly deposited by the DBM to the
Regular under the Modified Disbursement Scheme (MDS) Account of the CHRP.

CASH RECEIPTS FROM DONOR AGENCIES AND LOCAL GOVERNMENT

SUPPORT

1.1.4 Various donor institutions as well as local government units are funding various
programs and projects of the CHRP. Funding from these donor agencies are covered
by Memorandum of Agreements such that this funding can be used only for
expenditures explicitly stated in the Agreement. These receipts shall not be included
in the general fund of the CHRP to avoid mix-up with the funds for regular
operations. A Special Account or Trust Fund Account shall therefore be set-up for the
same.

CASH TRANSFERRED TO AND RECEIVED BY REGIONAL OFFICES

1.1.5 Cash transferred to the Regional Offices are taken from the general fund of the
CHRP. These are disbursements from the Regular MDS Account of the CHRP and
are recognized in the CHRP books as Cash Advances to the Regional Offices. The
transfer of funds to the Regional Offices are the funding for the allotments released
regularly.

1.1.6 The Regional Offices shall keep track of the total cash receipts from the Central
Office. The receipt of such shall also be recorded in the Registry of Allotments and
Cash Issued/Received kept by both the Regional Office and the BCAD-FMO.

RECORDING PROCEDURES

1.1.7 The accounting staff in the Accounting Division will, upon receipt of the Report of
Collections and Deposits (RCD) with the copy of the Official Receipt (OR) and
deposit slip (DS), record the same in the logbook and then forward it to the
bookkeeper for review and preparation of the Journal Entry Voucher (JEV).

1.1.8 The bookkeeper prepares the JEV and, upon approval by the head of the accounting
unit, records it in the Cash Receipts Journal (CRJ).

2 ACCOUNTING FOR DISBURSEMENTS

POLICIES FOR THE PREPARATION AND APPROVAL OF DISBURSEMENT
VOUCHERS

2.1.1 Disbursements involves the processes of preparing and processing of disbursement

vouchers; preparation and issuance of check payment by cash; granting utilization,
and liquidation/replenishment of cash advances.

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2.1.2 Disbursement Voucher is the form used when there are money claims. The use of
disbursement vouchers shall not be regarded to as an easy task. Because it carries
with it the responsibility or accountability for the use of the government fund.

2.1.3 The office requesting for settlement of claims shall be the office where the DV
emanates. The person who prepares the same certifies that it is 1) necessary, 2)
lawful, and that 3) the incurrence of the same is under his/her direct supervision.

2.1.4 Certifying for the claim to be necessary means that such claim is essential and
indispensable. It means that the incurrence of the same is a requisite for the
performance or functioning of the office, program, or project.

2.1.5 To be lawful means that such claim is legitimate, legally qualified, and that the
incurrence of the same is allowed or within the bounds of law.

2.1.6 The National Government through the DBM, COA, and National Treasury and the
government itself through its pronouncements and administrative circulars, has lots
of rules, regulations, sanctions, and other controlling, mechanisms regarding the
proper use of funds and the withdrawal of the same from the National Treasury. It is
very important that all personnel within the CHR will be aware of this.

2.1.7 Aside from the office or personnel requesting for the claim, it is very important that
the Accounting Division who attests for the completeness and propriety of the
documents that supports the claim or Disbursement voucher be aware of it.

2.1.8 Much more shall the person in-charge for the approval of the same to be very aware
of it as it he/she who controls or holds the power for the actual disbursement.

2.1.9 Accountability which means to answer for ones responsibilities, to report, to explain,
to give reasons, to respond, to assume obligations, to render a reckoning and to
submit to an outside or external judgment. (Caiden, 1998), shall be very clear to all
the people involved in the use of government funds.

PROCEDURE FOR DISBURSEMENTS (NGAS)

2.1.10 The Disbursement System (DS) involves the processes of preparing and processing
of disbursement vouchers; preparation and issuance of check payment by cash;
granting utilization, and liquidation/replenishment of cash advances. The sub
systems are as follows:

a) Disbursement through checks

b) Disbursement through Cash Payroll Payment

c) Disbursement through Bank Payroll Payment

d) Disbursement through Petty Cash Fund

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2.1.11 For check disbursements, upon receipt of the Disbursement Voucher from the
requesting office, the accounting staff will check the completeness of the supporting
documents, assign DV number and record the same in the logbook. The Head of the
accounting unit is tasked to review the DV and supporting documents.

2.2.12 Upon receipt of the Report of Checks Issued (RCI), the accounting staff records the
same in the logbook and then forwards it to the bookkeeper for review and
preparation of the Journal Entry Voucher (JEV).

2.2.13 The bookkeeper prepares the JEV and, upon approval by the head of the accounting
unit, records it in the Check Disbursements Journal (CkDJ).

2.2.14 For payroll paid in cash, the procedure is as follows:

a) Upon receipt of the Report on Disbursements (RD), the accounting staff

records the same in the logbook and forwards it to the bookkeeper for JEV
preparation. The bookkeeper likewise records the payroll payment in the
individual Index of Payment (IP) of officials and employees. JEV review and
approval is as always, the responsibility of the Accounting Division Manager.

b) For payroll paid through the bank, the procedure for check disbursements is
used. Payroll payment through the bank will also be recorded in the IP.

2.2.15 Accounting of petty cash fund disbursements, particularly the establishment and
replenishment of the same, will follow the procedure for check disbursements.

3 ACCOUNTING FOR INVENTORIES AND PROPERTIES

3.1.1 Accounting for properties and inventories consists of processes for monitoring,
controlling and recording of acquisition and disposal of property and inventory. It
includes the following:

a) Receipt, Inspection, Acceptance and Recording Deliveries of Inventory Items

and Equipment
b) Requisition and Issuance of Inventory Items
c) Requisition and Issuance of Equipment

3.1.2 Accounting for Inventories and Properties starts with the receipt of the purchased
inventory items and equipment. The requesting office in need of the inventory items
and equipment, after determining that the items are not available in stock, shall
prepare and cause the approval of the Purchase Request (PR). On the basis of the
approved PR and after accomplishing all the required procedures adopting a
particular mode of procurement, the CHRP shall issue a duly approved Purchase
Order.

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3.1.3 The accounting procedure for the payment of the purchase order and its subsequent
booking will follow the procedure for check disbursements.

3.1.4 After the payment of deliveries, the Accounting Division PPELC keeper posts the
necessary information on the supply ledger card (SLC)/Property, Plant and
Equipment Ledger Card (PPELC), based on the paid documents forwarded by the
cash unit.

3.1.5 For the requisition and issuance of inventory items, the accounting procedure is as
follows:

a) The accounting staff receives the Supplies Availability Inquiry (SAI) from the
requesting personnel for determination of availability/status of stocks. The
accounting staff processes the SAI and then returns the original to the
requesting personnel, while filing copy 2.

b) The accounting staff receives the Report of Supplies and Materials Issued
(RSMI) together with the original of the SAI and Requisition and Issue Slip
(RIS) for recording of the information in the former to the Stock Ledger Card
(SLC). At the end of the month, the bookkeeper, based on the original RSMI,
prepares the JEV to record the issuance of stock. The JEV is checked and
approved by the Head of the accounting unit and returned to the bookkeeper
for recording in the general journal.

3.1.6 For the requisition and issuance of equipment, upon receipt of the original of the RIS,
the accounting unit PPELC keeper posts the information pertaining to the
issuance/transfer of property.

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3
FINANCIAL ACCOUNTING PROCESS

1 CHRP ACCOUNTING PROCESS

1.1.1 The financial management system of the CHRP in its existing structure is still
centralized. We have designed the Budgeting and Cash Administration System in
such a way that there is participation from the different regional offices and from the
different bureaus in the Central Office.
1.1.2 The Accounting system, however, will still have to be centralized. Tracking of
financial operations will be more manageable using the centralized accounting
system. Regional Offices, on the other hand, therefore will have to reckon withal the
rules of the Central Office in all its financial operations except for the delegated
authority to administer its regular operations budget, which includes only, the
regular/mandatory PS and MOOE items.

POLICIES/PROCEDURES

1.1.5 The CHRP accounting process is anchored on the following policies and procedures:

a) The CHRP shall release on a quarterly basis the allotment to each office for the
regular operations budget only.

b) The cash program for Central Office will be administered by the FMO. Only the
cash requirements of the Regional Offices for regular operations will be
transferred, but will be in the form of Cash Advance.

c) The Regional Offices shall not make any disbursement in excess of funds
released to it.

1.1.1 Accounting books will be maintained in the Financial Management Office. The
Regional Office, however, will maintain its own set of records for budgetary accounts,
which will be reported to the Central Office on a regular basis.

2 ACCOUNTING POLICIES, RULES AND PROCEDURES

2.1.1 Volume One(1) of the Manual on the New Government Accounting System details
the basic features and policies of the NGAS, the government accounting plan,
discussion on the financial statements and other related records required and the
illustrative journal entries.

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3 ACCOUNTING BOOKS, RECORDS, FORMS AND REPORTS

3.1.1 Volume Two (2) of the Manual on the New Government Accounting System contains
the various formats of the books of accounts, registries, records, forms and reports
including transactions on their use.

4 CHART OF ACCOUNTS
4.1.1 The Chart of Accounts that will be adopted by the CHRP are also those that are
prescribed in the NGAS. Volume III of the Manual contains the list of these accounts
and the definitions/descriptions of each account.

5 FINANCIAL STATEMENT PREPARATION PROCESS

5.1.1 Applying all the accounting polices in the NGAS, the financial statement of the CHRP
will be generated for submission to the management, COA, DBM, and other
oversight agencies requiring such reports.

5.1.2 The process of coming up with a financial statement is depicted in the diagram
illustrated below.

THE FINANCIAL STATEMENT PROCESS

Statement of
Unadjusted Adjusting Pre-Closing
Income and
Trial Balance Entries Trial Balance
Expenses

Closing Statement of
Journal Cash Flows
Entries

Post-Closing
Balance Sheet
Trial Balance

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4
MAINTENANCE BUDGET ACCOUNTING
RECORDS

1 INTRODUCTION
1.1.1 Under the New Government Accounting System (NGAS), obligation accounting is
modified to simplify procedures in the incurrence and liquidation of obligations and
the recording of budgetary accounts (allotments and obligations incurred and
liquidated). Journal entries will no longer be prepared to record the receipt of
allotments from the Department of Budget and Management (DBM) and the
incurrence of obligations by the CHRP and other agencies of the CHRP. In lieu of
this, separate registries are maintained to control the allotments and obligations for
each of the four classes of allotments, namely:

a) Registry of Allotments and Obligations Capital Outlay (RAOCO)

b) Registry of Allotments and Obligations Maintenance and Other Operating
Expenses (RAOMO)
c) Registry of Allotments and Obligations Personal Services (RAOPS)
d) Registry of Allotments and Obligations - Financial Expenses (RAOFE)

1.1.2 This report will enhance the NGAS by presenting procedures and processes in
accounting for the following transactions:

a) Approval of Appropriations
b) Release of Appropriations
c) Incurrence of Obligations
d) Payment of Obligations

1.1.3 This report will also present the methods in accounting for the budgets released to
the different offices and the cash releases to the regional offices.

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2 RECORDING AND REPORTING PROCEDURES

APPROVAL OF APPROPRIATIONS

2.1.1 Upon receipt of advise from the DBM that about the total appropriations of the
CHRP, the BCAD shall immediately record the same in the a ledger so as to keep
track of the total appropriations and the releases for the year.

2.1.2 The ledger to be used shall be as follows:

APPROPRIATIONS REGISTRY

Approved Allotments Appropriations

Date Reference
Appropriations Received Balance

2.1.3 A ledger for the breakdown of Appropriations as to Personal Services (PS),

Maintenance and Other Operating Expenses (MOOE), Financial Expenses (FE) and
Capital Outlay (CO) shall also be maintained as follows:

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Financial Accounting System

APPROPRIATIONS REGISTRY
Per Allotment Class
P e rso n a l S e rvice s MOOE F in a n cia l E x p e n se s C a p ita l O u tla y
D ate R ef. A pproved A llotm ents A ppropriations A pproved A llotm ents A ppropriations A pproved A llotm ents A ppropriations A pproved A llotm ents A ppropriations
A ppropriations R eceived B alance A ppropriations R eceived B alance A ppropriations R eceived B alance A ppropriations R eceived B alance

RECEIPT OF ALLOTMENTS AND NCAS

2.1.4 In addition to the RAOs, where receipt of Allotments are recorded as prescribed in
the NGAS, a Ledger for Allotments and NCAs received must also be prepared. This
ledger will keep track of the funding for the allotments so far received from the DBM.

2.1.5 The registry to be maintained shall be as follows:

ALLOTMENT AND NCA REGISTRY
Allotments Balance
Date Reference NCAs Received
Received (Unfunded Allotment)

2.1.6 Upon receipt of the Allotment from the DBM, and once the ALOBS is prepared to
support the same, the same shall be recorded in both the RAOs and the Allotment
and NCA Ledger. The ALOBS number shall be indicated in the reference column of
the Allotment and NCA Registry.

2.1.7 The total appropriations per program, project and activities shall be kept by the FMO
for their accounting purposes.

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CHR REENGINEERING PROJECT DESIGN REPORT
Financial Accounting System

SCHEDULE OF APPROPRIATIONS, PER PPA

PROGRAM/PROJECT/ACTIVITY PS MOOE CO TOTAL
General Administration
Support to Operations
Operations
Programs
Program 1
Program 2
Program n
Projects
Project 1
Project 2
Project n
TOTAL APPROPRIATIONS

2.1.8 A schedule of allocations of the total appropriations per office shall also be prepared
by the FMO for the give year. This will enable the offices to keep track of their budget
allocation.

SCHEDULE OF APPROPRIATIONS, PER OFFICE

OFFICES PS MOOE CO TOTAL
Legal and Investigation Office
Assistance and Visitorial Office
Instruments and Monitoring Office
Education and Research Office
Government Cooperation Office
NGO and Media Cooperation Office
Strategic Planning and Development
Office
Office of the Chairperson
Office of the Commissioner-in-
Charge
Office of the Executive Director
Office of the Commission Secretary
Financial Management Office
General Administration Office
Regional Offices
Region 1
Region 2
Region n
UNALLOCATED BUDGET
TOTAL APPROPRIATIONS

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Financial Accounting System

RELEASE OF ALLOTMENTS TO REGIONAL OFFICES AND OTHER OFFICES IN

THE CENTRAL OFFICE

2.1.9 Upon receipt of the allotment from the DBM, the CHR shall also immediately make a
corresponding transfer of allotments to the different offices. A record for each office
shall be prepared using the following format of subsidiary ledger.

REGISTRY OF APPROPRIATIONS AND ALLOTMENTS ISSUED

Office:
Allotments and Obligations Balance of
Date Reference Appropriations Allotments Obligations Balance of Appropriations
Issued Incurred Allotments
(3-4)
(4-5)
1 2 3 4 5 6 7

RELEASE OF CASH TO THE REGIONAL OFFICES

2.1.10 Regional Offices are given delegated authority to administer their own allotments for
the Regular Operations budget. Cash is released to them equivalent to their one
month operating requirements. A ledger for the individual offices shall also be
prepared to keep track of the total allotments released, the equivalent cash released
for each office that will fund their allotments, and the total cash balance remaining on
hand.

REGISTRY OF ALLOTMENTS AND CASH ISSUED/RECEIVED

Office:
Cash Position Balance of
Allotments
Cash Cash Unfunded
Date Reference Issued/ Obligations
Released/ Balance Allotments
Received Liquidated
Received (4-5) (3-4)
1 2 3 4 5 6 7

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2.1.11 At the end of every month, the FMO shall be able to come up with reports detailing
the current financial position of the CHRP in terms of the following:

a) Balances of Unreleased Appropriations

b.1 CHRP
b.2 per office ROs and other CO Offices
b) Allotment Balances
b.1 CHRP
b.2 per office ROs and other CO Offices
c) Balances of Unfunded Allotments
b.1 CHRP
b.2 per office ROs and other CO Offices
d) Balances of Unliquidated Obligations
c.1 CHRP
c.2 per office ROs and other CO Offices
e) Cash Balances/Cash Position
d.1 CHRP
d.2 per office ROs and other CO Offices

2.1.12 These reports are for internal purposes only so that each office will be able to track
down how well it has used it resources to fund the various programs, projects, and
activities under each office.

2.1.13 The reporting requirements of the oversight agencies which is currently being done
by the CHRP shall continue to be in force and strictly complied with.

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