LOCAL FUND

MANAGEMENT AND
UTILIZATION
IMPORTANT TERMS

• Accountability
• Accountable Officer
• Disallowance
• Disbursements
• Liability
• Persons Liable
IMPORTANT TERMS

• Government Expenditures include all charges against the fund of the

LGU for current operating expenditures, capital outlays and provisions
for retirement of long term obligations. The charges are both the
amounts actually paid and those incurred and recorded as liabilities to
be paid in the future. (Sec. 154, Book 111, Vol. I, GAAM)
• Fund Transfer is a transfer of money from one bank account to
another, either within a single financial institution or across multiple
institutions.
IMPORTANT TERMS

• ILLEGAL EXPENDITURES PERTAIN TO EXPENSES INCURRED IN

VIOLATION OF THE LAW.
• IRREGULAR EXPENDITURES PERTAIN EXPENSES IN VIOLATION OF
APPLICABLE RULES AND REGULATIONS OTHER THAN THE LAW (SEC.
162, Book III, Vol. I, GAAM).
 CONCEPT OF FUNDS

Fund is a sum of money or other resources set aside for the purpose of
carrying out specific activities or attaining certain objectives in accordance
with special regulations, restrictions or limitations and constitutes an
independent fiscal accounting entity. (Sec. 306 (h) LGC)
Government funds include public monies of every sort and other
resources pertaining to any agency of the government.
GEN. CLASSIFICATION OF FUNDS

A. General Funds (Local Funds) are used to account for each

monies and resources as may be received by and disbursed from the
local treasury. They consist of monies and resources of the local
government available for the payment of expenditures, obligations or
purposes not specifically declared by law as accruing and chargeable
to or payable from any other fund.(Sec. 308, R.A. 7160).
SPECIAL ACCOUNTS MAINTAINED IN THE
GENERAL FUND
1. Public utilities and other economic enterprises
2. Loans, interests, bond issues and other contributions for specific
purposes.
3. Development projects funded for the share of the LGU in internal
revenue allotment.
B. SPECIAL FUNDS
1. Special Education Funds consist of the respective shares of
provinces, cities, municipalities and barangays in the proceeds of
the additional one percent (1%) tax on real property which shall
be automatically released to the local school board. In provinces,
the proceeds shall be divided equally between the provincial and
municipal school boards. Sharing of proceeds: 50% goes to the
provincial school board and 50% goes to the municipal school
board.
2. Trust funds consist of private and public monies which have
officially come into the possession of the local government or of a
local government official as trustee, agent or administrator of
which have been received as guaranty for the fulfillment of some
obligations. Each shall only be used for a specific purpose for
which it was created or for which it came into the possession of
the local government unit (Sec. 309, R.A. 7160).
 USES OF SPECIAL EDUCATION FUND

1. Operation and maintenance of public schools

2. Construction and repair of school buildings, facilities, and
equipment
3. Educational research
4. Purchase of books and periodicals
5. Sports development
* The budget for the local school board shall be prepared by the local
budget officer
SEC. 100 (C) OF R.A. NO. 7160

• Priority Projects (SEF)

*Construction, repair and maintenance of school buildings
and other facilities of public elementary and secondary
schools
*Establishment and maintenance of extension classes
where necessary
*Sports activities at the division, district, municipal and
barangay levels
JOINT CIRCULAR NO. 1, S. 2017 OF
DEPED, DBM AND DILG -SEF
• Allowances/compensation of teachers locally-hired in
elementary and secondary schools
• Salaries/wages of utility workers and security guards hired
in public elementary and secondary schools
• Expenses pertaining to the operation of schools which
include utilities and communication expenses
SPECIAL EDUCATION FUND

• Acquisition and titling of school sites

• Acquisition of laboratory, technical and similar apparatus and
information technology equipment
• Purchase of library books and periodicals
• For sports development
• Funding for ECCD Program (Salaries/Allow, facilities, operation
expenses
(electricity, water, telephone and communication expenses
(Sec 7 of RA 10410)
FUNDAMENTAL PRINCIPLES GOVERNING UTILIZATION
OF LOCAL FUNDS (SECTION 305 OF LGC)

A. No money shall be paid out of the local treasury except in pursuance

of an appropriation ordinance, or law.
B. Local government funds and monies shall be spent solely for public
purposes.
C. Trust fund shall not be paid out except in fulfillment of the purpose
for which the trust was created or the funds received.
D. Fiscal responsibility shall be shared by all those exercising authority
over the financial affairs, transactions, and operations of the LGUs.
FUNDAMENTAL PRINCIPLES GOVERNING UTILIZATION
OF LOCAL FUNDS (SECTION 305 OF LGC)

E. Claims against government funds shall be supported with complete

documentation
F. No contract involving the expenditure of public fund shall be entered
into unless there is an appropriation therefore the unexpended
balance shall be sufficient to cover the proposed expenditure.
G. Expenditures of government funds or uses of government property
in violation of law or regulations shall be the personal liability of the
official or employee found to be directly responsible therefore.
FUNDAMENTAL PRINCIPLES GOVERNING UTILIZATION
OF LOCAL FUNDS (SECTION 305 OF LGC)

H. Disbursements or disposition of government funds or property

shall invariably bear the approval of the proper officials,
I. All laws and regulations applicable to financial transactions shall
be faithfully adhered to.
BASIC MAINTENANCE OF FUNDS

• Depository Accounts
Local Treasurer shall maintain depository accounts in their respective
LGUs with banks, preferably government-owned, located in or nearest to
their respective areas of jurisdiction. Earnings of each depository
account shall accrue exclusively thereto.
(Sec. 311, LGC).
BASIC MAINTENANCE OF FUNDS

• Separation of Personal Money from Public Funds

Local Treasurers and other accountable officers shall keep personal
monies separate and distinct from local public funds in their custody and
shall not make profit out of public money or otherwise apply the same to
any use not authorized by law or ordinance (Sec. 312, LGC).
BASIC REQUIREMENTS ON DISBURSEMENTS FROM
GENERAL FUND AND SPECIAL EDUCATION FUND

1. Certification as to the existence of appropriation that has been legally made for
the purpose by the local budget officer.
2. Certification as to the necessity, legality, as well as to the validity, propriety,
and legality of supporting documents (Box A of obligation request) by the
head of requesting department.
3. Certification in the disbursement voucher (Box A) by the local accountant
that allotment has been obligated for the purpose and the supporting
documents are completed.
4. Certification in the disbursement voucher (Box B) by the local treasurer that
funds are available for the purpose.
BASIC REQUIREMENTS ON DISBURSEMENTS FROM
GENERAL FUND AND SPECIAL EDUCATION FUND

5. Approval by the local chief executive (Box C) except for regularly

recurring administrative expenses such as payrolls for regular or
permanent employees, expenses for light, water, telephone services,
remittance to government creditor agencies such as GSIS, BIR,
PhilHealth, LBP, DBP and others, where the authority to approve may be
delegated. Disbursement vouchers for expenditures appropriated for the
operation of the Sanggunian shall be approved by the provincial vice
governor, the city vice mayor or the municipal vice mayor as the case
may be for special education fund, disbursement vouchers shall be
approved by the local chief executive
BASIC REQUIREMENTS ON DISBURSEMENTS FROM
GENERAL FUND AND SPECIAL EDUCATION FUND

6. Necessary documents supporting the disbursement vouchers and

payrolls are reviewed by the local accountant/ head of accounting
unit.
BASIC REQUIREMENTS ON DISBURSEMENT
FROM TRUST FUND
1. Certification by the Local Treasurer that Trust Funds are
available for disbursement (Box C) of Disbursement voucher
2. Certification by the Local Accountant that supporting
documents are complete (Box A)
3. Approval by the Local Chief Executive (Box C)
MODES OF DISBURSEMENT

A. Disbursements covered by Disbursement Voucher and/or payrolls

are usually paid either by check or in cash. Other modes of
disbursement include direct payments and or bank transfers.
Cash should be handled under the general principles of the
imprest system where all payments must be made by
check and only payments in small amounts are paid in
cash through the petty cash fund. (Sec. 172, Book iii, Vol. I
GAAM)
MODES OF DISBURSEMENT

B. Disbursement by checks- upon receipt of the Disbursement

Voucher for payment, the local treasurer shall verify the propriety
of the certification and approvals required therein. If complete,
the local treasurer shall issue a check.
1. PREPARATION AND SIGNING OF CHECKS

Checks shall be drawn by the local treasurer and countersigned by

the mayor/local administrator. They shall always be made payable to
a specific person or entity, not to cash or bearer.
Signing, issuing or countersigning of blank checks shall not be
allowed.
In case of temporary absence or incapacity of the aforesaid
officials these duties shall devolve upon their immediate assistants.
• In the case of municipalities where no
Administrator has been appointed, checks shall
be countersigned by the Municipal Mayor. In
case, however, of expenditures for the operation
of the Sanggunian, checks drawn thereon shall be
countersigned by the Provincial Vice Governor,
the City Vice Mayor or the Municipal Vice Mayor.
• All checks issued shall be recorded
chronologically in the Control Book of Checks
Issued/Check Register.
2. RELEASE OF CHECKS

The local treasurer shall release the check only to the payee or his
duly authorized representative. It shall be released only when the
accountant’s advice of local check disbursement has been prepared
and submitted to the bank. Upon payment, the disbursement
voucher shall be stamped paid by the local treasurer to prevent their
possible re-use
REPORTING OF CHECKS ISSUED

• Preparation of Checks Issued

The checks issued including cancelled or voided checks shall be recorded
chronologically in the Report of Checks Issued which shall be prepared daily for each
fund in 3 copies by the Local Treasurer.
Spoiled and Stale Checks
Checks may be cancelled when they become spoiled or stale. A check is considered
spoiled when it is torn, mutilated, defaced or contains erasures/errors affecting the
genuineness of material information. On the other hand, a check is considered stale
when it is outstanding for over six months from date of issue, or as prescribed by the
government authorized depository bank.
WHAT YOU NEED TO KNOW ABOUT ISSUING
CHECKS
• The Monetary Board has approved the adoption of the electronic clearing of
checks which shall be implemented beginning January 20, 2017.
CHECK IMAGE CLEARING SYSTEM (CICS)
1. Authorize and waive. 7. Do not staple, crumple, fold, bind
2. Use dark colored ink. or pin checks.
3. Left justify when writing on the spaces. 8. Do not issue an unfunded
check.
4. Do not use erasable ink or correction ribbon 9. Make sure authorized
signatories are
5. Do not issue a postdated check updated with the bank.
6. End the amount in words with “only”. 10. Write legibly
LOST CHECKS

• A check is considered lost under the following

circumstances:
• When it is misplaced, waylaid or left behind inadvertently or
negligently by the payee or holder in due course, or by the
custodian or carrier thereof, and after diligent search
cannot be found or located.
• …Fortuitous events such as fire, perils of travel, flood or
typhoon or other causes due to force majeure and after
diligent search cannot be found or recovered
• --- lost by theft or robbery
DISBURSEMENTS THROUGH CASH ADVANCES

Cash payments shall be made only on duly approved payrolls /

disbursement vouchers / liquidation vouchers out of regular cash
advances or special cash advances
TWO TYPES OF CASH ADVANCES

1. Regular cash advances-granted to cashiers, disbursing officers,

paymasters and/or supply officers separately for any of the following
purposes.
A. salaries and wages
B. commutable allowances
C. honoraria and other similar payments to officials and employees
D. petty operating expenses- consist of small payments for maintenance
and other operating expenses which cannot be conveniently paid by
check or are required to be paid immediately.
2. SPECIAL CASH ADVANCES

SPECIAL CASH ADVANCES ARE THOSE GRANTED ON THE

EXPLICIT AUTHORITY OF THE Local Chief Executive only to duly
designated disbursing officers or employees for legally authorized
purposes such as: confidential expenses and expenses for activities
of the agency undertaken in the field when it is impractical to pay by
checks.
GUIDELINES ON CASH ADVANCE
FOR INTELLIGENCE AND CONFIDENTIAL EXPENSES

• Intelligence and/or confidential expenses represent the amount of goods and

services used or consumed in connection with defense, security, peace and
order, internal security or counter insurgency, warfare and surveillance
operation and other specified intelligence and confidential operations. These
maybe in the form of any of the following:
• Purchase of information relevant to security and peace and order
• Rewards
• Rental of safe houses
• Supplies, materials and equipment for confidential operation
Note: Please read JC No. 2015-01 issued on Jan. 8, 2015 (COA, DBM, DILG and DND)
 Sec. 339 of LGC provides “No cash advance shall be granted to
any official or employee, elective or appointive, unless made in
accordance with the rules and regulations as the COA may
prescribe.”
When a cash advance is no longer needed or has not been used
for a period of two (2) months, it must be returned to the
Treasurer/ Cashier for Official Receipt (OR) issuance.
GUIDELINES IN GRANTING AND
UTILIZATION OF CASH ADVANCES
• Only permanently appointed officials and employees shall be granted cash
advances.
• Only duly appointed or designated disbursing officers may perform
disbursing functions. Officers and employees who are given cash advances
for seminars/trainings need not be designated as disbursing officers.
• Only one disbursing officer shall be assigned/designated for a specific legal
purpose. Additional disbursing officers may be assigned/designated for the
same purpose only when fully justified by the agency head.
• Transfer of cash advance from one AO to another shall not be allowed.
GRANTING AND UTILIZATION OF CASH
ADVANCES
• The cash advance shall be used solely for the specific legal purpose
for which it was granted. Under no circumstances shall it be used
for encashment of checks or for liquidation of a previous cash
advance.
• The accountant shall obligate all cash advances granted. He shall
see to it that cash advances for a particular year are not used to
pay expenses incurred during the previous years.
CA ON SALARIES, WAGES, ALLOWANCES,
HONORARIA AND OTHER SIMILAR
PAYMENTS
• The cash advance shall be equal to the net amount of the payroll for a
pay period.
• The cash advance shall be supported by the following documents:
I. Copy of the designation by the Agency Head in case the AO is not a
disbursing officer by appointment (Attachment to initial cash advance)
II. Copy of approved application for bond ( Attachment to initial cash
advance)
III. Payroll or list of payees with their net payments.
GRANTING AND UTILIZATION OF CASH ADVANCES
PETTY OPERATING EXPENSES

• The cash advance shall be sufficient for the recurring expenses of

the agency for one (1) month. The AO may request for
replenishment of the cash advance when the disbursements reach
at least 75% or as the need so requires by submitting a
replenishment voucher with all supporting documents duly
summarized in a report of disbursement.
 GRANTING AND UTILIZATION OF CASH
ADVANCES
PETTY OPERATING EXPENSES

• The cash advance shall not be used for payments of regular

expenses such as rentals, subscriptions, light and water and the
like. A transaction not exceeding php.5,000.00 can be paid out of
the petty cash fund, except when a higher amount is allowed by
law and/or specific authority by the Commission on Audit. Splitting
of transactions to avoid exceeding the ceiling shall not be allowed.
 FIELD/ACTIVITY CURRENT OPERATING
EXPENSES (COE)
• The special cash advance shall be used to pay the salaries and
wages of the employees and the miscellaneous operating expenses
of a particular project or activity. Payment for each transaction shall
be approved by the Head of field office.
 All cash advances shall be fully liquidated at the end of each
year. Except for Petty Cash Fund the AO shall refund any
unexpended balance to the cashier/liquidating officer who shall
issue the corresponding official receipt. The Petty Cash Fund
shall have a zero (0) balance at the end of the fiscal year.
 At the start of the ensuing year, a new cash advance may
be granted. No cash advance shall be granted unless the
previous cash advance has been liquidated.

Legal Basis: EO 248 and COA Circular No. 96-004

FOREIGN TRAVEL
The cash advance shall be supported by the following documents:
• Authority to travel
• Itinerary of travel
• Authority from the Office of the President for representation
allowance
TIMETABLE IN LIQUIDATING CASH
ADVANCES
1. The AO shall liquidate his cash advance as follows:
• Salaries, wages, etc. – within 5 days after each 15 day/ end of the month
pay period
• Petty operating expenses and field operating expenses – within 20 days
after the end of the year; subject to replenishment during the year.
• Local Travel – within 30 days after return to his permanent official station
• Foreign travel – within 60 days after return to the Philippines.
*Failure of the AO to liquidate his cash advance within the prescribed period
shall constitute a valid cause for the withholding of his salary.
CASH PROGRAMMING TOOLS

• These tools are used to guide the Local Chief

Executive, the Local Treasurer and the Local Budget
Officer to control the releases of allotment
depending on the collection/expenditure
performance during the period.
 Cash Flow Forecast
Cash inflows from Operating Activities, Investing Activities and
Financing Activities
Less: Cash Outflows
Net increase in Cash
Add: Cash at the beginning of the Period
Cash at the end of the Period
 Cash Receipts Forecast
Cash Inflows from Operating , Investing and Financing
Activities= Cash Receipts this Month + Cash Receipts
Prior Month=Total Cash Receipts This Month
 Cash Disbursement Forecast
Cash Outflows from Operating Activities + Investing Activities +
Financing Activities=Cash Disbursement this Month + Cash
Disbursement Prior Month= Total Cash Disbursement this Month
CASH MANAGEMENT AND PROGRAMMING
TOOLS
Cash Flow Analysis
Cash Flows from Operating, Investing and financing Activities- Cash
Outflows=Net Increase in Cash + Cash at the Beginning of the
Period=Cash at the End of the Period
 Operating Activities:
Inflows Outflows
Collection from Taxpayers Payments for Personal Services
IRA Miscellaneous and other Operating Receipts from Sale of Goods and
Expenses
Services
Interest Income Other Expenses
Other Receipts
 • Investing Activities
Inflows Outflows
Sale of PPE Purchase of PPE
Sale of Debt Securities Purchase of Debt Securities
Loan Proceeds
 • Financing Activities
Inflows Outflows
Issuance of Debt Securities Retirement/Redemption
of Debt Securities
Loan Proceeds Payment of Loan Amortization
TYPES OF PROHIBITED LOCAL EXPENDITURES (LEGAL BASIS
COA CIRCULAR NO.2012-003)

1. Irregular expenditures do not adhere to established rules,

regulations, procedural guidelines, policies, principles or practices
that have gained recognition in law. These are incurred without
prescribing to usages and rules of discipline.
2. Unnecessary expenditures could not pass the test of prudence
or the obligation of a good father of a family thereby not
responsible to the exigencies of the service.
 TYPES OF PROHIBITED LOCAL EXPENDITURES

3. Excessive expenditures are unreasonable expenses or those

incurred at an immoderate quantity or exorbitant price.
4. Extravagant expenditures are those incurred without restraint,
judiciousness and economy. They exceed the bounds of propriety.
5. Unconscionable expenditures are those without knowledge or
sense of what is right, reasonable and just and not guided or
restrained by conscience. They are incurred in violation of ethics
and morality.
EXAMPLES OF IRREGULAR EXPENDITURES

1. Payment of claims under a contract awarded not strictly in

accordance with R.A. 9184 (Procurement Law)
2. Payment of allowances and other forms of additional compensation
without proper authority
EXAMPLES OF IRREGULAR EXPENDITURES

4. Payment of repair of government property or equipment

undertaken by shops, mechanics or contractors not duly accredited
in accordance with an existing government policy, except in places
where there is no accredited shop in the locality.
5. Payment for emergency purchase, where there is no emergency.
As defined under the general appropriations act, emergency
involves the loss of, or danger to, life and/or property or that
which will cause detriment to the public service.
EXAMPLES OF IRREGULAR EXPENDITURES

6. Reimbursement of expenses incurred by persons other than

authorized representatives of the LGU for attending conferences,
meetings and other official functions.
7. Payment of salaries or wages of laborers under a labor payroll to
persons other than the payees unless properly authorized by the
payees.
EXAMPLES OF IRREGULAR EXPENDITURES

9. Bringing home government motor vehicles after office hours by

officials to whom these are assigned, except when the LGU does not
have a garage that could ensure the safety of the vehicle, or when in
terms of mileage/time it is more economical for the official to park the
vehicle at his residence.
EXAMPLES OF UNNECESSARY EXPENDITURES

1. Grant of overtime pay for work that is not urgent in nature as to

require completion within a specified time or that can be
undertaken during regular office hours.
2. Expenses for advertisements of anniversaries, etc. in newspapers,
television or radio merely for public or propaganda purposes
except when the nature of the LGU’s mission would require such
expenses as in the case of promotion of trade and business.
EXAMPLES OF UNNECESSARY EXPENDITURES

3. Use of air conditioners when not needed, or even during absence

of the official in whose room the air conditioner is installed
4. Use of table lamps while working in the office where the room is
adequately illuminated from the ceiling lights
5. Hiring of consultants whose functions are redundant to the
respective functions of concerned officials
EXAMPLES OF EXCESSIVE EXPENDITURES

In determining whether or not the price is excessive, the following

factors may be considered:
I. Supply and demand forces in the market- where there is shortage of
supply of a particular product, such as cement or GI sheets, prices of
these products may vary within a given day.
II. Government price quotations.
EXAMPLES OF EXCESSIVE EXPENDITURES

I. Overpricing of purchases characterized by grossly exaggerated or inflated

quotations, in excess of the current and prevailing market price by ten
percent (10%) variance from the purchased item.
I. Payment for repair of government equipment at a cost exceeding thirty
percent (30%) of the current market price of the same or similar
equipment.
II. Expenditures for supplies and materials in quantities beyond what is
required and needed by the LGU for a determinable period, resulting in
overstocking.
EXAMPLES OF EXTRAVAGANT EXPENDITURES

• Purchase of luxurious and expensive office furnishings for office

buildings (e.g. rugs, carpets, draperies, wall decors, utensils, desks,
chairs and lamps), except for the offices of the president of the
Philippines; justices of the supreme court, intermediate
appellate court and other court of equivalent rank; speaker of
the house of representatives; and the heads and members of
the constitutional commissions; the department secretaries;
governors; mayors; the bureau directors and their equivalent
ranks in government corporations and other agencies.
EXAMPLES OF EXTRAVAGANT EXPENDITURES

• Luxurious furnishings for government buildings except those intended for

showcase, trade and commerce, promotions of arts and culture, and use
of dignitaries.
• Purchase of expensive cars, except for the use of the following
officials.:
1. the President and the Vice-President of the Philippines; the Senate
President; the Speaker of the House of Representatives; the
Justices of the Supreme Court; and the Heads of Constitutional
Commissions- Mercedes Benz or its equivalent brand.
 EXAMPLES OF EXTRAVAGANT EXPENDITURES

2. the members of congress; the members of the constitutional

commissions; the Department Secretaries; the Heads of Agencies; the
Governors of class A provinces; mayors of class A cities and
municipalities, the justices and the judges of lower courts- heavy and
medium cars. (DILG Memo Circular 2014-155 issued on
12/17/2014, Guidelines on Motor Vehicles Acquired by the
LGUs).
• Installation of highly sophisticated outdoor signs, billboards and neon signs
advertising the office, except banks, trading corporations, hotels, or
buildings used for culture and arts.
EXAMPLES OF EXTRAVAGANT EXPENDITURES

• Purchase of wines, liquors, cigars and cigarettes except when served

to foreign dignitaries during state functions and government-
sponsored international conferences and conventions.
• Payment for rental of expensive halls or rooms in luxury hotels or
restaurants used for meetings and other official functions except
when such hotels or restaurants are used for government-sponsored
international conventions, meetings and the like.
EXAMPLES OF UNCONSCIONABLE
EXPENDITURES
• Grant of exorbitant and unreasonable bonuses, allowances and fringe
benefits to public officials and employees
• Live-in seminars in five-star hotels within an unreasonable period of
time.
EXAMPLES OF ILLEGAL EXPENDITURES

• Entering into contracts without an appropriation ordinance

• Construction of a public building on a private land.
• Other violations of the provisions of the LGC under R.A. 9160
OTHER PROVISIONS PROVIDED IN LGC

• Sec. 335 of LGC- No public money or property shall

be appropriated or applied for religious or private
purposes.
• Sec. 337 – Disbursements in accordance with
appropriations in the approved Annual Budget may
be made from any local fund, but the total
disbursements shall in no case exceed fifty percent
(50%) of the uncollected estimated revenue accruing
to such local fund in addition to the actual
collections. Provided, however, that no cash
• In case of emergency arising from a typhoon, earthquake, or any
calamity, the sanggunian concerned may authorize the local
treasurer to continue making disbursement from any local fund in
his possession in excess of the limitations herein provided, but only
for such purposes and amounts included in the approved annual
budgets.
• Any overdraft which may be incurred at the end of the year in any
local fund by virtue of the provisions hereof shall be covered with
the first collections of the immediately succeeding fiscal year
accruing to such local fund.
• Sec. 341 Prohibitions Against Pecuniary Interest-
Without prejudice to criminal prosecution under applicable
laws, any local treasurer, accountant, budget officer, or
other accountable local officer having any pecuniary
interest, direct or indirect, in any contract, work or other
business of the LGU of which he is an accountable officer
shall be administratively liable therefor.
SEC. 342- LIABILITY FOR ACTS DONE UPON
DIRECTION OF SUPERIOR OFFICER
• Unless he registers his objection in writing, the local treasurer,
accountant, budget officer or other AO shall not be relieved of liability
for illegal or improper use or application or deposit of government
funds or property by reason of his having acted upon the direction of a
superior officer, elective or appointive, or upon participation of other
department heads, or officers of equivalent rank.
• Sec. 353- The official fiscal year of LGUs shall be the period beginning
with
the 1st day of January and ending with the 31st day of the year.
OTHER PROVISIONS PROVIDED IN THE
LGC
• Sec. 343- Prohibition Against Expenses for Reception
and Entertainment- No money shall be appropriated,
used, or paid for entertainment or reception except to the
extent of the representation allowances authorized by law
or for the reception of visiting dignitaries of foreign
governments or foreign missions, or when expressly
authorized by the President in specific cases
GUIDELINES ON MOTOR VEHICLES ACQUIRED
BY THE LGUS
• DILG Memorandum Circular No. 2014-155 issued on December 17,
2014
DISBURSEMENT
VOUCHER
OBLIGATION REQUEST
BONDING OF ACCOUNTABLE OFFICERS
Minimum Cash Maximum Cash
Amount of Bond Bond Premium
Accountability Accountabilty
2,000.00 5,000.00 75% of

} }
Bond Premium
5,001.00 7,000.00 maximum
shall not be
Cash
7,001.00 9,000.00 less than
Accountability
9,001.00 12,000.00 9,000.00 100.00
12,001.00 15,000.00 11,250.00 150.00
15,001.00 18,000.00 13,500.00 168.75
18,001.00 21,000.00 16,750.00 202.50
25,001.00 25,000.00 18,900.00 251.25
30,001.00 30,000.00 22,500.00 283.50
35,001.00 35,000.00 26,250.00 337.50
40,001.00 40,000.00 30,000.00 393.75
BONDING OF ACCOUNTABLE OFFICERS
Minimum Cash Maximum Cash
Amount of Bond Bond Premium
Accountability Accountabilty
40,001.00 50,000.00 37,500.00 450.00
50,001.00 60,000.00 45,000.00 562.50
60,001.00 80,000.00 60,000.00 675.00
80,001.00 100,000.00 75,000.00 900.00
100,001.00 250,000.00 100,000.00 1,125.00
250,001.00 500,000.00 225,000.00 1,500.00
500,001.00 750,000.00 350,250.00 3,375.00
750,001.00 1,000,000.00 500,000.00 5,253.75
1,000,001.00 5,000,000.00 1,500,000.00 7,500.00
5,000,001.00 25,000,000.00 3,500,000.00 22,500.00
25,000,001.00 75,000,000.00 4,000,000.00 52,500.00
75,000,001.00 100,000,000.00 5,000,000.00 60,000.00
75,000.00
“IF YOU’LL CHOOSE BETWEEN
MONEY & TRUST, CHOOSE
TRUST BECAUSE MONEY CAN
BE EARNED BACK BUT NOT
TRUST.”
BY: DR. KAPIL JAIN
THANK YOU!