GOVERNMENT ACCOUNTING ACCOUNTING STANDARDS

CHAPTER 1: GOVERNMENT ENTITIES

Three (3) types of governmental organization

1. National Government Agencies (NGA)

2. Local Government Units (LGU)

3. Government Corporations (GCs)

 Commercial Public Sector Enterprises (formerly

classified as Government Business Entities)*
 Non-Commercial Public Sector Enterprises (formerly Adoption of International Public Sector Accounting Standards
classified as Non-Government Business Entities)* (IPSAS)
*Classifications renamed per COA Resolution No. 2020-013 dated  COA Resolution No. 2014-003 dated January 24, 2014
January 31, 2020 was issued upon recommendation of the PSASB to
adopt the IPSAS and to be referred as Philippine Public
Sector Accounting Standards (PPSAS). 25 standards
National Government Agencies (NGAs) were adopted on the said issuance as follows:

 NGAs are Departments, bureaus, offices and other

instrumentalities of the National Government, including
the Congress, the Judiciary, the Constitutional bodies,
state colleges and universities and other self-contained
institutions and hospitals
 (e.g. Department of Social Welfare and Development,
Bureau of Customs, Office of the President, University of
the Philippines)

Local Government Units (LGUs)

 These are the Provinces, Cities, Municipalities, and

Barangays. LGUs oversee local governance in 81
provinces, 144 cities, 1,490 municipalities, and 42,028
barangays across the country. LGU officials are
responsible for providing direct and basic services to
the people and ensuring peace and order within
communities.

Government Corporations

 Refers to government-owned and controlled

corporations, government financial institutions, and
government instrumentalities with corporate powers
(GICPs)/government corporate entities (GCEs), and
their subsidiaries, and water districts.
 COA Resolution No. 2020-013
 (e.g. BSP, LBP, PhilHealth, SSS, Pag-IBIG, NFA, LRTS, etc.)

Government Corporations

• Is an entity with power to contract in its own name

Commercial • assigned the financial and operational authority to carry on a business
Public Sector • sells good and services
• not reliant on continuing government funding, and is controlled by
Enterprises public sector entity.
(CPSE) • (e.g. Banking Institutions, Social Security System, PagIBIG, Manila
International Airport, etc.)

Non- • Entities who do not meet all of the characteristics of a CPSE.

Commercial
Public Sector • (e.g. Light Rail Transit Authority (LRTA), National Food Authority (NFA), Adoption of International Public Sector Accounting
Enterprises Metropolitan Waterworks And Sewerage System (MWSS) etc.)
(Non-CPSE) Standards (IPSAS)
Additional six (6) standards were adopted based on
COA Resolution No. 2017-006 dated April 26, 2017, as
Examples of CPSE follows:

 Bangko Sentral ng Pilipinas

 Development Bank of the Philippines
 Land Bank of the Philippines
 Government Service Insurance System
 Home Development Mutual Fund
 Social Security System

Examples of Non-CPSE

 Philippine National Railways Government Accounting Manual (GAM)

 Light Rail Transit Authority
 The GAM presents the basic accounting policies and
 Philippine Postal Corporation
principles in accordance with the International Public
 National Food Authority
Sector Accounting Standards (IPSAS) and other
 Philippine Coconut Authority
pertinent laws, rules and regulations.
 Philippine Heart Center
 It includes the accounting procedures, financial
statements, and illustrative accounting entries (Volume
I), the books, registries, records, forms and reports
(Volume II) and Revised Chart of Account (Volume III).

CHAPTER 2: Philippine Budget Cycle

Government Budgeting
The House of The Senate
Representati conducts its
ves (HoR) own
It is the critical exercise of allocation revenues and deliberates committee
Afterwards,
The
HoR and
borrowed funds to attain the economic and social goals the budget hearings. harmonized
Senate
documents Amendments version is
of the country. constitute a
submitted by can only be presented to
panel each to
the DBM and submitted the President
sit in
drafts the after HoR for approval.
the Bicameral
It also entails the management of government General version is The
Conference
Appropriatio formally President
expenditures in such a way that will create the most Committee to
ns Bill (GAB). transmitted. reviews the
harmonize
economic impact from the production and delivery of Once The Senate GAB and
their
approved on version of the prepares
goods and services while supporting a healthy fiscal respective
Third GAB is Veto
versions of
position. Reading, GAB likewise Message.
GAB.
is approved on
transmitted Third
to the Senate. Reading.
Philippine Development Plan (2023-2028)
General Appropriations Bill
 PDP 2023-2028 will provide a roadmap towards
improving the investment climate in the country  It is a proposed law that authorizes the expenditure
with the objective of generating more and higher- of government funds.
quality employment in the medium term. This is to
transform the economy and make it more inclusive
and resilient to unexpected shocks. The Plan will
also be drafted with short-term issues in mind.

Philippine Budget Cycle

Budget Preparation House Bill No. 7727 – 2021 GAA

and Presentation

Budget
Accountability Budget Legislation
or Authorization

Budget Execution
or Implementation

Budget Preparation and Presentation

 This phase covers estimation of government

2021 GENERAL APPROPRIATIONS ACT
revenues, the determination of budgetary priorities
and activities within the constraints imposed by
available revenues and by borrowing limits, and
the translation of approved priorities and activities
into expenditure levels.
The DBM
consolidates
the budget
Various
into National The DBM
Commence Expenditure finalizes
departments
d with the Program and the budget
and agencies
issuance of Budget of
submit
Expenditures
documents
“budget Agency
and Sources and
call” by the Budget submits the
of Financing
DBM. Proposals to same to the
and submits
the DBM.
to the Congress
President
and Cabinet RA No. 11518
for review.
Budget Execution or Implementation

National Expenditure Program  Covers the various operational aspects of

budgeting, this making budgeting as one of the
 The National Expenditure Program is submitted to principal tools of management control to ensure
assist Congress in the review and deliberation of that public funds are spent only for the specific
the proposed national budget for the legislation of purposes for which they are intended.
the annual appropriations measures for the next
fiscal year.
Agencies submit
Budget Legislation or Authorization Budget Execution
Documents (BEDs)
 The Budget Legislation Phase covers the period to the DBM to
DBM issues fund
outline their plans
commencing from the time Congress receives release documents
and performance
to agencies such as
the President’s Budget, which is inclusive of DBM issues targets by laying
obligational
guidelines on down the physical
the NEP and the BESF, up to the President’s authority or
and financial
the release and allotment (i.e.
approval of the GAA. This phase is also known as utilization of
plan, the monthly
GAARD, SARO,
cash
the Budget Authorization Phase, and involves the funds. program, the esti
GARO) and
disbursement
significant participation of the Legislative through mate of monthly
authority (i.e. NCA,
its deliberations. income, and
NCAA, CDC, NTA)
the list of
obligations that
are not yet due
and demandable.
National Budget Circular for 2021 GAA

DBM Releases

Extension of Bayanihan 2 and 2020 GAA

 RA 11519 extends the availability of funds appropriated

through the Bayanihan 2 or Bayanihan to Recover As
One Act until June 30, 2021.
Budget Accountability  (original effectivity is until Dec. 19, 2020)
 RA 11520 extends the availability of the P4.1-trillion 2020
 A significant phase of the budget cycle because it
national budget until December 31, 2021.
ensures that the government funds have been
 (original effectivity is until Dec. 31, 2020)
effectively and efficiently utilized to achieve the
 Source: Official Gazette (www.officialgazette.gov.ph)
State’s socio-economic goals. It also allows the
DBM to assess the performance of agencies during
the fiscal year for the purpose of implementing CHAPTER 3: OVERVIEW OF GOVERNMENT ACOUNTING
reforms and establishing new policies
GOVERNMENT ACCOUNTING
An agency’s  Encompasses the process of analyzing, recording,
accountability may
be examined and classifying, summarizing and communication all
evaluated through transactions involving the receipt and disposition of
Budget
(1) performance
accountability government fund and property and interpreting the
targets and
starts with the
setting of targets
Submission of outcomes; result thereof.
monthly and (2) budget
that agencies are to
quarterly Budget accountability
be held Objectives of Government Accounting (Sec. 110, PD 1445)
Accountability reports;
accountable for
Reports (BFARs). (3) review of
based on the BEDs
agency 1. To produce information concerning past and present
submitted by the
performance; and
agencies.
(4) audit condition
conducted by the
Commission on 2. To provide a basis for guidance for future operations
Audit (COA).
3. To provide for control of the acts of public bodies and
officers in the receipt, disposition and utilization of funds
COVID-19 FUNDING
and property.
 Bayanihan 1 Law – Republic Act 11469 approved
4. To report on the financial position and the results of
on March 24, 2020 (Bayanihan to Heal as One Act)
operation of government agencies for the information
 Bayanihan 2 Law – Republic Act 11494 approved
of all persons concerned
on September 11, 2020 (Bayanihan to Recover as
One Act) Government Accounting vs. Business Accounting
 Bayanihan 3: Aug. 18, 2021 - House version of
Bayanihan 3 endorsed to Senate - Inquirer.net  Compared to the accounting for business entities,
government accounting places greater emphasis on
Terminologies the following:
 Sources and utilization of government funds; and
Appropriation Allotment  Responsibility, accountability and liability of entities
• is the authorization made by a • is an authorization issued by the DBM to
legislative body to allocate funds for NGAs to incur obligations for specified entrusted with government funds and properties.
purposes specified by the legislative or amounts contained in a legislative
similar authority appropriation in the form of budget
release documents. It is also referred to
as Obligational Authority
Responsibility, Accountability and Liability over Government
Funds and Property

 Government resources must be utilized efficiently and

Obligation Disbursements
• are annual authorizations for incurring • are the actual amounts spent or paid out
effectively in accordance with the law.
obligations during a specified budget
year, as listed in the GAA
of the budgeted amounts  The head of a government agency is directly
responsible in implementing this policy.
 All other personnel entrusted with the custody of
government resources are responsible to the head of
the government agency, are accountable for the
Cash-based Budgeting System (CBS) vs. Obligation-based safeguarding thereof, and are liable for any losses.
Budgeting (OBS)
Accounting responsibility
 Under CBS, all appropriations shall be made available
for obligation and disbursement only until the end of The following offices are charged with government accounting
each fiscal year. Moreover, obligations incurred by the responsibility:
national government within each fiscal year should be
1. Commission on Audit (COA)
implemented within the same fiscal year.
 In an obligation-based budget, inspection, verification 2. Department of Budget and Management (DBM)
and payment of obligations can be done even after
the fiscal year; the government has a running balance 3. Department of Finance - Bureau of the Treasury (BTr)
of due-and-demandable accounts payables.
4. Government agencies
Commission On Audit a. Generally accepted government accounting principles
in accordance with IPSAS and pertinent laws, rules and
 Promulgate accounting and auditing rules regulations;
 Keep the general accounts
 Submit financial reports b. Accrual basis of accounting
 -Article IX-D, Section 2 par. (2) of the 1987 Constitution
of the Philippines c. Budget basis for presentation of budget information in
 -Presidential Decree No. 1445 FS (PPSAS 24)

Department of Budget and Management d. RCA prescribed by COA

 Formulation and Implementation of the national e. Double entry bookkeeping

budget with the goal of attaining our national socio-
f. FS based on accounting and budgetary records
economic plans and objectives
 Responsible for the efficient and sound utilization of g. Fund cluster account
government funds and revenues to effectively achieve
the country’s development objectives Qualitative Characteristics
 -Section 2, Chapter 1, Title XVII, Book IV of the
Administrative Code of the Philippines (Executive Order Understandability
No. 292)
Relevance
Department of Finance - Bureau of the Treasury
◦ Materiality
 cash custody and control of disbursements.
Reliability
 Receive and keep national funds, management and
control the disbursements thereof; ◦ Faithful representation
 Maintain accounts of financial transactions of all
national government offices, agencies and ◦ Substance over form
instrumentalities.
 -Revised Administrative Code ◦ Neutrality

Government Agencies ◦ Prudence

 Maintain accounting books and budget registries ◦ Completeness

which are reconciled with the cash records of the BTr
Comparability
and the budget records of the COA and DBM.
Fund Accounting
Section 12 Chapter 2 of GAM for NGAs Vol. I

Registries
(Maintained by the Budget Division)
Section 12 Chapter 2 of GAM for NGAs Vol. I

Accounting Standards  Registries of Revenue and Other Receipts (Appendices

7, 7A, 7B, 7C and 7D)
 Registry of Appropriations and Allotments (Appendix 8)
 Registries of Allotments, Obligations and Disbursements
(Appendices 9A, 9B, 9C and 9D)
 Registries of Budget, Utilization and Disbursements
(Appendices 10A, 10B, 10C and 10D)

Registries
(Maintained by the Accounting Division)
Section 12 Chapter 2 of GAM for NGAs Vol. I

The GAM for NGAs a. Journals

 The Government Accounting Manual for National  General Journal (Appendix 1)

Government Agencies (GAM for NGAs) is promulgated  Cash Receipts Journal (Appendix 2)
by the COA under the authority conferred to it by the  Cash Disbursements Journal (Appendix 3)
Philippine Constitution.  Check Disbursements Journal (Appendix 4)
 The GAM for NGAs was promulgated primarily to
harmonize the government accounting standards with b. Ledgers
the International Public Sector Accounting Standards
1. General Ledgers (Appendix 5)
(IPSAS). The IPSASs are based on the IFRSs.
2. Subsidiary Ledgers (Appendix 6)
Objectives of the GAM for NGAs
Components of General Purpose Financial Statements
To update the following:
a. Statement of Financial Position
 Standards, policies, guidelines and procedures in
b. Statement of Financial Performance
accounting for government funds and property;
 Accounting books, registries, records, forms, reports and c. Statement of Changes in Net Assets/Equity
financial statements.
 Coding structure and accounts d. Statement of Cash Flows

Basic Government Accounting & Budget Reporting Principles e. Statement of Comparison of Budget and Actual
Amounts
Each entity shall recognize and present its financial transactions
and operations conformably to the following: f. Notes to Financial Statements
CHAPTER 4: DISBURSEMENT  The NCA shall be the authority of an agency to pay
operating expenses, purchases of supplies and
Fundamental Principles for Disbursement of Public Funds (Section
4 of PD 1445)

No money shall be paid out of any public treasury or depository except in pursuance of an appropriation
law or other specific statutory authority.

Government funds or property shall be spent or used solely for public purposes.
materials, acquisition of PPE, accounts payable, and
other authorized disbursements through the issue of
MDS checks, ADA or other modes of disbursements.
Fiscal responsibility shall, to the greatest extent, be shared by all those exercising authority over the
financial affairs, transactions, and operations of the government agency. Illustrative Entries:

Trust funds shall be available and may be spent only for the specific purpose for which the trust was
created or the funds received..

Disbursement or disposition of government funds or property shall invariably bear the approval of the
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.

Generally accepted principles and practices of accounting as well as of sound management and fiscal
administration shall be observed, provided that they do not contravene existing laws and regulations. Notice of Transfer of Allocation

 The NTA shall be the authority of the regional and

operating units to pay their operating expenses,
Budget Execution, Monitoring and Reporting purchases of supplies and materials, acquisition of PPE,
accounts payable, and other authorized disbursements
through the issue of MDS checks, ADA or other modes
of disbursements.
prescribes the guidelines in monitoring, accounting and
reporting of the budget in the financial statements
Monitoring of the Budget

The budget shall be monitored by the Budget

prescribes the records to be maintained by the national Division/Units of NGAs through the maintenance of
government agencies, forms to be used and reports to be registries for that purpose.
prepared
◦ Registries of Revenue and Other Receipts

◦ Registry of Appropriations and Allotments

Fund Release Documents
◦ Registries of Allotments, Obligations and
Disbursements
Obligational Authority or Allotment
◦ Registries of Budget, Utilization and
Disbursement Authority Disbursements

Obligation Request and Status

Obligational Authority or Allotment
 The incurrence of obligations shall be made through
General • serves as the obligational authority for the comprehensive release of budgetary items
the issuance of Obligation Request and Status (ORS)
Appropriatio
ns Act
appropriated in the GAA, categorized as For Comprehensive Release (FCR) (Appendix 11). The ORS shall be prepared by the
Release
Document
Requesting/Originating Office supported by valid claim
(GAARD) documents like DVs, payrolls, purchase/job orders,
itinerary of travel, etc.
• covers budgetary items under For Later Release (FLR) (negative list) in the entity submitted
Special Budget Execution Documents (BEDs), subject to compliance of required
Allotment documents/clearances. Releases of allotments for Special Purpose Funds (SPFs) (e.g., Notice of Obligation Request and Status Adjustment
Release Order Calamity Fund, Contingent Fund, E-Government Fund, Feasibility Studies Fund, International
(SARO) Commitments Fund, Miscellaneous Personnel Benefits Fund and Pension and Gratuity Fund)
are also covered by SAROs  The NORSA shall be prepared by the Accounting
Division/Unit after the processing of the claim which
General
• is a comprehensive authority issued to all national government agencies, in general, to incur
obligations not exceeding an authorized amount during a specified period for the purpose shall be used in adjusting the original amount obligated
to the actual obligations incurred in the RAOD. It shall
Allotment indicated therein.
Release
Order (GARO)
be forwarded by the Accounting Division/Unit to the
Budget Division/Unit to take up the adjustments of
obligation in the RAOD.
Disbursement Authority

Notice of • authority issued by the DBM to central, regional and provincial offices and operating units to
MODES OF DISBURSEMENTS
Cash cover the cash requirements of the agencies
Allocation
(NCA)
(Chapter 6 of GAM for NGAs, Volume I)
Non-Cash
Availment
• authority issued by the DBM to agencies to cover the liquidation of their actual obligations
incurred against available allotments for availment of proceeds from loans/grants through 1. Disbursements by Check
Authority supplier’s credit/constructive cash
(NCAA)
Modified Disbursement System (MDS) Checks – are checks
• authority issued by DBM to the Department of Foreign Affairs (DFA) and Department of Labor issued by government agencies chargeable against the
Cash
Disbursement
and Employment (DOLE) to utilize their income collected/retained by their Foreign Service
Posts (FSPs) to cover their operating requirements, but not to exceed the released allotment to account of the Treasurer of the Philippines, which are
Ceiling (CDC) the said post
maintained with different MDS-GSBs.

Notice of
• authority issued by the Central Office to its
• regional and operating units to cover the latter’s cash requirements
Commercial Checks – are checks issued by NGAs
Transfer of
Allocation chargeable against the Agency Checking Account with
GSBs. These shall be covered by income/receipts authorized
to be deposited with AGDBs.
Notice of Cash Allocation
 Accounting Books, Records, Forms and Reports to be
Prepared and Maintained

 All checks drawn during the day, whether released or

unreleased including cancelled checks shall be
recorded chronologically in the Checks and ADA
Disbursements Record (CkADADRec) (Appendix 34)
maintained by the Cash/Treasury Unit.
 The dates the checks were actually released shall be
indicated in the appropriate column provided for in the
CkADADRec.
 All checks/ADA drawn whether released or unreleased
shall be included in the Report of Checks Issued (RCI) 2. Disbursement by Cash
(Appendix 35) or Report of ADA Issued (RADAI)
(Appendix 13), which shall be prepared daily by the payments out of:
Cashier.
a. Cash advances granted to the regular and special
 The RCI/RADAI together with the original copies of the
disbursing officers for personal services;
supporting documents (SDs) shall be submitted to the
Accounting Division/Unit for the preparation of JEV b. Petty expenses; and
(Appendix 36).
c. MOOE for field operating requirements.
Procedures for Disbursements by Checks (Sec. 12)
Accounting Books, Records, Forms and Reports to be Prepared
and Maintained
1. Preparation of ORS and DV
by the Requesting Office  The Disbursing Officer shall maintain the Cash
Disbursements Record (CDRec) (Appendix 40) to
monitor the cash advances/payroll, current operating
2. Processing of DV by the expenses, and special purpose/time-bound
undertakings and prepare the Report of Cash
Accounting Division Disbursements (RCDisb) (Appendix 41) to report its
utilization.

3. Preparation/Approval of Cash advances on Government Units without Complete set of

Checks by the Cash Division Books:

 A Cash Disbursements Register (CDReg) (Appendix 43)

shall be maintained to record, monitor and report
4. Preparation of Reports – transactions involving the grant, utilization and
liquidation of the cash advance.
ACIC by CD and RCI by AD
For Petty Cash Expenses:

5. Preparation of JEV by  The PCFC shall prepare the RPPCV and maintain the
Petty Cash Fund Record (PCFR) (Appendix 50) to
Accounting Division monitor and control the granting and utilization of the
fund. The RPPCVs (Appendix 49) shall be the basis in the
preparation of the DV to replenish the PCF.
6. Recording in CkDJ by the
Accounting Division Petty Cash Expenses on Government Units without Complete set
of Books:

 The PCFC shall maintain the Petty Cash Fund Register

Illustrative Entries:
(PCFReg) (Appendix 51) to monitor/summarize the PCF
established/replenished and the disbursements
charged thereto.

Illustrative Entry on Liquidation of Cash Advances

Accounting for Cash Shortage/ Overage of Disbursing Officer

 Cash overage discovered by the Auditor that cannot

be satisfactorily explained by the Disbursing 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. Cash shortage which is not restituted by the
Disbursing Officer despite demand in writing by the
Auditor shall be taken up as receivable from the
Disbursing Officer.

Accounting for Disallowances

 Disallowances shall be taken up in the books of

accounts only when they become final and executory.
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.

IUEEU Expenses - Unnecessary, Excessive, Extravagant and

Unconscionable expenditures

3. Disbursements through List of Due and Demandable

Accounts Payable- Advice to Debit Account

The use of LDDAP-ADA as a mode of settlement of accounts

payable due the creditors/payees of all NGAs and their OUs was
prescribed under DBM Circular Letter No. 2013-16 dated
December 23, 2013 which implemented the ExMDPS, amended
by DBM Circular Letter Nos. 2013-16A and 2013-16B dated
February 6, 2014 and February 25, 2014, respectively.

Accounting Books, Records, Forms and Reports to be Prepared

and Maintained

 All LDDAP-ADA prepared/issued during the day shall be

recorded chronologically in the CkADADRec
(Appendix 34) maintained by the Cash/Treasury Unit.
The dates the LDDAP-ADAs were actually delivered to
the MDS-GSB shall be indicated in the appropriate
column provided for in the CkADADRec.

4. Disbursements Through eMDS as part of the Modified

Disbursement Scheme.

As part of the implementation of the Treasury Single Account

(TSA) system for government disbursement, the electronic
Modified Disbursement System (eMDS) has been adopted as
one of the modes of disbursement under Joint Administrative
Order (JAO) No. 2015-1 dated March 12, 2015 of the DBM and
DOF. This is to facilitate an efficient and prompt reconciliation of
spending agencies’ disbursements vis-à-vis the accounts of the
BTr maintained at the LBP as Authorized Government Servicing
Bank (AGSB).

5. Disbursements through Cashless Purchase Card (CPC)

System

The CPC System was prescribed as an alternative mode of

payment for goods and services under Joint Memorandum
Circular (JMC) No. 2014-1 dated May 15, 2014 of the Department
of National Defense (DND), Armed Forces of the Philippines (AFP)
and the DBM.

6. Disbursements through Tax Remittance Advice

 The Tax Remittance Advice (TRA) refers to a serially-

numbered document prescribed by the DBM that
should be used by the NGAs in the remittance of
withheld taxes on funds coming from DBM.
 The eTRA shall be supported with the Summary of Taxes
Withheld (STW) certified by the Chief Accountant. The
STW is the document which summarizes the type and
amount of taxes withheld. The Accounting Division/Unit
shall maintain SL to monitor remittances of taxes
withheld from individual employees, suppliers and
contractors.

7. Disbursement for Inter-Agency Transferred Funds (IATF)

 Refers to cash or money transferred to an
Implementing Agency (IA) for the undertaking
of a project by a Source Agency (SA) in which
the allotment was released.
 SA uses Inter-Agency Receivables and IA uses
Inter-Agency Payables accounts.
8. Disbursements by Foreign-based Government
Agencies
 CDC is an authorization issued by the DBM to DFA
and other agencies with foreign posts to utilize
their collections retained by their Foreign Service
Posts (FSPs) to cover operating requirements, but
not to exceed the released allotment to the said
post. (National Budget Circular No. 535 dated
December 29, 2011).

9. Disbursements through Direct Payment Method

 This type of disbursement should be covered by an
NCAA. This mode of disbursement is made through
the JEV issued by the BTr to the
availing/implementing agency to record payment
of goods and services made directly by the
lending institution to the supplier or contractor.