Manual

on
Financial Management
of
Barangays
Module 4
1
Fiscal Responsibilities of Barangay
Officials
• In connection with the management of the barangay funds and
property, the duties and responsibilities of the barangay officials are
as follows:
1. Punong Barangay
a. Implements function, project contracts and activities to provide basic
services and facilities to the barangay as appropriated;
b. In coordination with the barangay development council, prepare the
annual executive and supplemental budgets of the barangay;
c. Negotiates, enters into and signs contracts for and in behalf of the barangay
upon authorization of the SB;
d. Certifies DVs and payrolls as to validity, propriety and legality of the claim;
2
Fiscal Responsibilities of Barangay
Officials
1. Punong Barangay
e. Approves claims relating to the disbursements of barangay
funds;
f. Countersigns checks in payment of the claims;
a. Signs the Statement of Management Responsibility over the Financial
Statements; and
b. Ensures that all accounting documents and records are properly kept by
concerned barangay officials and staff.
c. Inform the COA Auditor’s Office of the resignation, retirement, suspension
of the barangay officials including change of barangay treasurer so that the
latter could be subjected to audit.

3
Chairman, Committee on Appropriations
a. Certifies the Disbursement Voucher/payroll, contract/Purchase Order
on the existence of available appropriations to cover the claim;
b. Monitor the utilization of appropriations with the use of the
appropriate Records of Appropriations and Obligations (RAO);
c. Maintains the Records of Appropriations and Obligations (RAO);
d. Ensures that commitments/charges to the approved appropriations
do not exceed the available appropriations; and
e. Certifies the RAO and submits the SAOB at month end and year end to
the Municipal or City Budget Officer for consolidation and eventual
submission to the COA Auditor.
4
Barangay Treasurer
A. Collection
a. Keeps custody of barangay funds and property and ensure the safety of
cash, cash items and barangay records;
b. Collects all taxes, fees and other charges due and contributions accruing to
the barangay and deposit the same with authorized depository bank;
c. Collects for the C/M Treasurer when deputized and remits all collections
intact;
d. Renders report on collections and deposit made.

5
Barangay Treasurer
B. Disbursement
a. Certifies to the availability of cash for the DV/Payroll presented;
b. Issues and signs checks for payment of obligations;
c. Renders the report on checks, cash and PCF disbursements;
d. Maintains the Cashbook to record in and out of cash in the
treasury, in depository banks and petty cash fund;

6
Barangay Treasurer
C. Supplies and Materials and Property
a. Keeps the records of supplies and materials and property of the barangay;
b. Prepares and maintains the ICS for the issuance of small items with
serviceable life of more than one year and PAR for the issuance of property
and equipment to end-users; and
c. Assists the PB in the conduct of physical count of property.

7
Bonding of Accountable Officer
• The Barangay Treasurer shall be bonded in accordance with existing laws in an
amount to be determined by the SB but not exceeding Ten Thousand Pesos
(P10,000.00), premiums for which shall be paid by the barangay. (Sec. 395 (d) of
RA 7160).
• The provincial/city or municipal treasurer may designate the BT as his deputy to
collect local taxes, fees or charges. In case a bond is required for the purpose the
provincial, city or municipal government shall paythe premiums thereon in
addition to the premiums of bond that may be required under this Code. (Sec.
170 of RA 7160).
• Copy of the fidelity bond with the appointment and oath of office of each
accountable officer shall be furnished to the local auditor concerned for record
purposes.
8
Maintenance and Custody of Records
• Every officer primarily accountable for government property shall
keep a complete record of all properties under his charge and render
his accounts therefore semi annually to the PB. (Sec. 375 (d) of RA
7160).
• All copies of documents are required to be retained by the C/M
Accountant.

9
Transfer of Accountability
• All accountable officers leaving the office (either through resignation, completion
of term, suspension or retirement) shall seek clearance from money and
property accountabilities.
• Outgoing barangay officials shall secure money and property clearance as
provided in DILG Memorandum Circular No. 2002-122 dated August 5, 2002.
• The outgoing PB should turn-over to the incoming PB all the barangay properties
and records listed in the Turnover - Receipt form. Both PBs shall sign the invoice-
receipt before the outgoing PB secure clearance from the C/M mayor.
• The outgoing BT shall update, rule and certify his cashbook. He shall submit all
paid vouchers and report of collections up to his last day of service as BT to the
C/M accountant.

10
Transfer of Accountability
• The outgoing BT shall prepare and sign the Turnover–Receipt form for all his accountabilities
and records maintained. The incoming BT shall acknowledge receipt of said accountabilities by
signing the Turnover–Receipt form also, duly witnessed by the PB.
• The outgoing BT shall submit the cashbook to the City or Municipal Accountant as part of the
accounting records. All these should be received by the City or Municipal accountant before the
clearance of the outgoing BT is signed.
• The duly accomplished Turnover - Receipt shall be furnished the following:
a. Incoming Punong Barangay
b. Outgoing Punong Barangay
c. Incoming Barangay Treasurer
d. Outgoing BT
e. City or Municipal Accountant
f. COA Auditor

11
Rendition of Accounts
• The PB and BT shall be responsible for the timely submission of the
reports and accounts to the C/M Accountant. Observance to the
provision of Article 218 of the Revised Penal Code that “Any public
officer, whether in the service or separated therefrom by resignation
or any other cause, who is required by law or regulations to render
account to the Insular Auditor,* or to a Provincial Auditor and who
fails to do so for a period of two months after such account shall be
rendered shall be punished by prision correccional in its minimum
period, or by a fine ranging from 200 to 6,000, or both”. (* now
Commission on Audit)

12
Rendition of Accounts
• The Barangay Treasurer shall submit the Report of Collections and Deposits
(RCDs), Liquidation Report, Official Receipts/Disbursement Vouchers/Payrolls
and Monthly Report of Accountability for Accountable Forms (RAAF) to the
City or Municipal Accountant on or before the 5th day of the succeeding
month.
• The City or Municipal Accountant shall submit to the local auditor concerned
the collections and disbursements accounts of each month on or before the
10th working day of the succeeding month.
• The PB shall submit to the City or Municipal Accountant and the local auditor
concerned the Reports on the Property Inventory and Supplies Inventory at
year-end, not later than the 10th day of January of the following year.

13