MISCELLANEOUS TRANSACTIONS

Losses of government fund/s:

 From unlawful use/application of govt fund:
o Personal liability of the Accountable officer and the supervisor directing such payment/s
- Supervising Officer directing any illegal payment or disposition of the funds shall be
primarily liable for the loss,
- AO Accountable officer who fails to serve the required written notice shall be secondarily
liable.
 From negligence
o Personal liability of the Accountable officer

 Relief from Accountability:

- AO Accountable officer notified the superior officer in writing prior to the act of the illegality
of the payment, application, or disposition of fund.
. - Application for Relief within 30 days upon reporting loss as caused by fire,
theft, or other casualty or force majeure,

Cash Overage of Collecting Officer. Cash overage discovered by the Auditor that cannot be
satisfactorily explained by the Collecting Officer shall be forfeited in favor of the government and an
official receipt shall be issued by the Collecting Officer/Cashier. The cash overage shall be taken up
as Miscellaneous Income.

Disallowances- these are pertaining to expenses incurred during the validity period of the budget
that are found unauthorized and such finding is final and executor.

The Accountant shall prepare the JEV to take up the Receivable-Disallowances/Charges and credit the
appropriate account for the current year or Accumulated Surplus/(Deficit) account if pertaining to expenses of
previous years.

Cash settlement of disallowances shall be acknowledged through the issue of an official

Receipt and reported by the Cashier in the RCD.

Overpayments - refunds shall be demanded of the employees/suppliers/payees concerned.

The Accountant shall prepare the JEV to take up the Receivable and credit the appropriate account for the
current year or Accumulated Surplus/(Deficit) account if pertaining to expenses of previous years.

Dishonored Checks. A dishonored check may be defined as a check paid to the agency that
was dishonored by the AGDB due to “Drawn Against Insufficient Fund (DAIF)” or “Drawn
Against Uncleared Deposits (DAUD). A check is dishonored either by non-payment or
nonacceptance.

When a check is dishonored by non-payment or non-acceptance, the Collecting Officer should issue a Notice
of Dishonored Checks to the drawer and to each endorser.
The Collecting Officer neglecting or failing to give the required NDC to the drawer (or to the endorser-payor
of the government check), who, as a result thereof, is discharged from liability, shall be personally
answerable for the resulting loss suffered by the government.

The Collecting officer retrieves from file Copy 3 of the OR covering the dishonored check
and cancels the OR indicating the following notation:
“Cancelled (date of Notice of Dishonored Checks) per Bank
Debit Memo/Voucher No._____ dated _________”

The Accountant shall prepare the JEV to take up the Receivable and credit the appropriate
bank account.
Cancelled Checks. Checks may be cancelled when they become stale, voided or spoiled.
Stale check -The depository bank considers a check stale, if it has been outstanding for over six months from date of
issue or as prescribed.

A stale, voided or spoiled check shall be marked cancelled on its face and reported as follows:
a. Voided, spoiled or unclaimed stale checks with the Cashier shall be reported as cancelled in the List
of Unreleased Checks that will be attached to the RCI.
b. New checks may be issued for the replacement of stale/spoiled checks in the hands of the payees or
holders in due course, upon submission of the stale/spoiled checks to the Accounting Division/Unit.
A certified copy of the previously paid DVs shall be attached to the request for replacement. A JEV
shall be prepared to take up the cancellation. The replacement check shall be reported in the RCI.

Amortization of Discount/Issue cost

The amortization of bond discount and bond issue costs is recognized by debiting interest expense and
crediting bond discount bond issue cost.

Borrowing Cost
Shall be recognized as an expense in the period in which they are incurred, except to the extent that they are
capitalized. Borrowing costs that are directly attributable to the acquisition, construction, or
production of a qualifying asset shall be capitalized as part of the cost of that asset.
 Amount of borrowing costs eligible for capitalization shall be determined by applying a capitalization rate to
the outlays on that asset.
 The capitalization rate shall be the weighted average of the borrowing costs applicable to the
borrowings of the entity that are outstanding during the period, other than borrowings made
specifically for the purpose of obtaining a qualifying asset.
 any investment income on the temporary investment of those specific borrowings should be deducted from
borrowing cost to be capitalized..
 The amount of borrowing costs capitalized during a period shall not exceed the amount of borrowing costs
incurred during that period,
 The capitalization of borrowing costs as part of the cost of a qualifying asset shall commence when outlays for
the asset are being incurred, borrowing costs are being incurred,
 Capitalization of borrowing costs shall cease when substantially all the activities necessary to prepare the
qualifying asset for its intended use or sale are complete.