Manual on Financial Management of Barangay

Collections
and
Deposits

Disbursements
Appropriations
and and
Obligations Reimbursements

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 Appropriations and Obligations

The budget of the barangay as authorized by the

Sangguniang Barangay (SB) through an appropriation
ordinance serves as the authorization for the barangay to
incur obligations. The Chairman of the Committee on
Appropriations (CCA) shall be responsible for the proper
monitoring and control of the barangay budget.

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 The specific policies and procedures

3.1. Specific Policies and Procedures

3.1.1 Expenditures/Obligations shall in no case exceed
available appropriations.
3.1.2 The duly approved barangay appropriation
ordinance shall be recorded in the Record of
Appropriation and Obligations (RAO) as shown in Annex 6
that shall be maintained by the Chairman of the
Committee on Appropriations (CCA). Separate RAO shall
be maintained for the following:
a) 10% percent share of the Sangguniang Kabataan;
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 The specific policies and procedures (Cont’d.)

b) 5% Local Disaster Risk Reduction Management Fund

(LDRRMF); and
c) 20% Development Fund.

3.1.3 The Appropriation and Obligations (RAO) shall show

the annual and supplemental appropriations and the
obligations charged against the said appropriations. It
shall be used to monitor the availability of appropriations
to cover proposed expenditures/obligations.

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 The specific policies and procedures (Cont’d.)

3.1.4 Charges against the appropriations shall be based

on the obligations made as shown in Contracts or
Purchase Orders (POs) and in the Disbursement Voucher
(DV), and Payrolls.
3.1.5 Based on the RAO, the Chairman of the Committee
on Appropriations shall certify as to the existence of
appropriation on the Contracts or POs, DV or Payrolls. As
such, the Chairman of the Committee on Appropriations
shall regularly update the RAOs by posting all certified
obligations to determine available balance of the
appropriations.
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 The specific policies and procedures (Cont’d.)

3.1.6 The CCA shall report the charges to and balances of

appropriations to the Punong Barangay (PB) and the SB
monthly through the Statement of Appropriations,
Obligations and Balances (SAOB) (Annex 7). It shall be
certified correct by the CCA.

3.1.7 The PB and SB shall use the SAOB in the evaluation

of the status of barangay finances.

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 Collections and Deposits/Remittances

1. Share from the National and Local Taxes/Revenues;

2. Barangay Fees and Taxes;
3. Other Fees and Charges; and
4. Other Receipts.

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 Collections and Deposits/ Remittances (Cont’d.)

1. Share from the National and Local Taxes/Revenues

a. Internal Revenue Allotment;
b. Utilization of national wealth, such as: lands of public
domain, water, mineral, coal, petroleum, mining, oil,
gas, oil deposits, etc.;
c. Tobacco Excise Tax (RA No. 7171 and 8240);
d. Real Property Tax including interest and penalties
imposed thereon;
e. Tax imposed on sand, gravel and other quarry
resources; and

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 Collections and Deposits/ Remittances (Cont’d.)

f. Community Tax, if collections are made by the

barangay;

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 Collections and Deposits/ Remittances (Cont’d.)

2. Barangay Fees and Taxes

a. Fees imposed on:
i. Peddlers
ii. Breeding of fighting cocks
iii. Use of barangay roads, waterways, bridges and
parks
iv. Use of barangay properties/facilities
v. Parking
vi. Clearance/Certification
vii. Other fees imposed by the barangays

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 Collections and Deposits/ Remittances (Cont’d.)

b. Taxes imposed on stores/retailers within the

barangay;
c. Penalties for violation of barangay ordinance

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 Collections and Deposits/ Remittances (Cont’d.)

3. Other Fees and Charges

a. Operation of cockpits, places of recreation, etc.
b. Fund raising activities
c. Charges on billboards, signboards and other outdoor
advertisements
d. Use of barangay-operated public markets,
slaughterhouses and waterworks
e. Operation of other barangay economic enterprise

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4. Other Receipts
a. Subsidies/Financial assistance from:
i. National Government
ii. Provinces/Cities/Municipalities
b. Grants and donations received
c. Dividend/Interest from investments
d. Proceeds from:
i. Loans and other indebtedness
ii. Sale of Plant, Property and Equipment

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 Disbursements and Reimbursements

5.1 Specific Policies on Disbursements

5.1.1 Disbursements or disposition of government funds
or property shall invariably bear the approval of the
proper officials.

5.1.2 All claims against government funds shall be

supported with complete documentation.

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 Disbursements and Reimbursements

5.1.3 Disbursements shall be made only on duly certified

and approved Disbursement Voucher (DV) - Annex 12,
Petty Cash Voucher (PCV) - Annex 13 and Payroll - Annex
14.

5.1.4 Disbursements shall generally be made by checks

drawn against the depository accounts of the barangay.

5.1.5 All check disbursements shall be supported with

Punong Barangay Certification.

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 Disbursements and Reimbursements

5.1.6 Disbursements in cash shall be made only from the

cash advances granted for the purpose (e.g. to pay
salaries and wages, honorarium, etc.) and petty cash,
observing the following basic guidelines, to wit:
a. Only permanently appointed officials shall be
designated as disbursing officers. Elected officials may
be granted a cash advance only for their official
travelling expenses.

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 Disbursements and Reimbursements

b. Only duly appointed or designated disbursing officers

may perform disbursing functions. Officers and
employees who are given cash advances for official
travel need not be designated as Disbursing Officers.
c. Transfer of cash advance from one Accountable Officer
(AO) to another shall not be allowed.
d. The cash advance shall be used solely for the specific
legal purpose for which it was granted. Under no
circumstance shall it be used for encashment of checks
or for liquidation of a previous cash advance.

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 Disbursements and Reimbursements

5.1.7 All cash advances shall be liquidated at year-end. No

additional cash advances shall be given to any official or
employee unless the previous cash advance is liquidated
and accounted for in the books.

5.1.8 A cash advance shall be liquidated/reported as soon

as the purpose for which it was granted has been served.

5.1.9 No cash advance shall be granted for payment on

account of infrastructure projects or other undertaking
on a project basis except for payment of labor payroll for
projects undertaken by administration.
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 Disbursements and Reimbursements

5.1.10 Cash Advances for special time-bound undertaking

shall be liquidated by the accountable officer within a
specified period.

5.1.11 Cash advance which are no longer needed or have

not been used for a period of two months shall be
returned to or deposited immediately with the proper
collecting officer or cashier.

Disbursements and Reimbursements

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 Disbursements and Reimbursements

5.1.12 For designated disbursing officers, separate

Cashbook shall be maintained for each type and purpose
of cash advance.

5.1.13 Petty Cash Fund Record (Annex 13.1) shall be

maintained for Petty Cash Fund.

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Cash Advances and Liquidation
I. CASH ADVANCES
1. HONORARIA
A. BARANGAY OFFICIALS -
i. DISBURSEMENT VOUCHERS
ii. DAILY TIME RECORD
iii. CERTIFICATION RENDERED SERVICES ( FOR
APPOINTED OFFICIALS)
iv. CERTIFICATE OF SESSIONS ATTENDED ( FOR
ELECTED BARANGAY OFFICIALS)

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 v. MINUTES OF MEETINGS OF TWO REGULAR
SESSIONS DULY SIGNED BY THE SB MEMBERS
FOR NEWLY ELECTED OFFICIALS

2. TRAVEL - OUT OF TOWN TO ATTEND THE SEMINAR -

CASH ADVANCE BY INDIVIDUAL
i. DISBURSEMENT VOUCHERS
ii. MEMO BY THE BRGY. CAPT AUTHORIZING TO
TRAVEL
iii. FOR BRGY. CAPT. - MEMO FROM CITY MAYOR/ CITY
ADMINISTRATOR
iv. ENDORSEMENT LETTER FROM DILG

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LIQUIDATION - TRAVEL
3.1 Receipt of Registration
3.2 Certificate of Appearance
3.3 Itinerary of Travel

MONETIZATION
1. DISBURSEMENT VOUCHERS WITH CHECK ISSUE
2. APPROVED APPLICATION FOR LEAVE
3. ORIGINAL LEAVE RECORD DULY CERTIFIED CORRECT
BY THE BRGY. SECRETARY & APPROVED BY THE BRGY.
CAPTAIN.

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4. CERTIFIED TRUE COPIES OF MINUTES OF MEETINGS
OF TWO REGULAR SESSIONS MONTHLY FOR THE YEAR
APPLIED
5. SUMMARY OF LEAVE CREDITS COMPUTATION DULY
CERTIFIED CORRECT BY THE BRGY. SECRETARY &
APPROVED BY THE BRGY. CAPTAIN

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What is the barangay cash advance?

“The barangay cash advance is a relatively bigger amount of

money given to regular or special disbursing officers
depending on the bond secured for specific public purposes.
Regular cash advance includes expenses for salaries, wages,
commutable allowances, honoraria and other similar
payments.”

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What are the rules in the grant, use and liquidation of cash
advances?
 Only permanently appointed officials/employees shall be
granted cash advances;
 Only duly appointed or designated disbursing officers
may perform disbursing functions;
 Only one disbursing officer shall be assigned/designated
for a specific purpose;
 Transfer of accountability for cash advance shall not be
allowed;
 Under no circumstances shall cash advance be used for
the encashment of checks or for the liquidation of a
previous cash advance;
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 A cash advance for a particular year shall not be usedto
pay for expenses made in other years;
 A cash advance for petty operating expenses shall be
sufficient for the recurring expenses for one month. It
shall not be used for the payment of regular expenses
such as rentals, subscriptions, light and water, etc;
 The cash advance must be returned or deposited
immediately with the collecting officer when it is no
longer needed or has not been used for two (2) months;
and
 All cash advances shall be fully liquidated at the end of
each year.

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Are barangay officials allowed to handle cash advances?
 Only those properly authorized and bonded; namely: (1)
the Punong Barangay and (2) the Barangay Treasurer.

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 Reimbursement
is the act of compensating someone for an out-of-pocket
expense by giving them an amount of money equal to what
was spent?
should not exceed P5,000.00

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“Public employment contributes neither to advantage
nor happiness. It is but honorable exile from one's
family and affairs.”

Thomas Jefferson

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Thank you!

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