MODE OF

DIS BUR S EM EN TS
: OTHERS
GROUP 6
MODE OF
DISBURSEMENTS
A. CHECKS
B. CASH
C. ADVICE TO DEBIT THE
ACCOUNT
D. TAX REMITTANCE ADVICE
E. WORKING FUND/ C D C
F.DIRECT PAYMENT METHOD
M O D E OF
DISBURSEMENT: RE CAP
Introduction to Mode of Disbursement:

·Disbursement activities of the National Government Agencies start from

the receipt of Notice of Cash Allocation from the DBM.

·NCA received may be of the amount of the taxes to be withheld by the

agency, because of the Tax Remittance System.

· Payment for PS, MOOE, FE, CO, and other miscellaneous transactions.
M O D E OF
DIS BUR S EM EN T:
RECAP
Definition of Disbursement:
· Constitute all cash paid out during a period

Disbursement System:
·Involves the preparation and processing of
disbursement voucher, preparation and issuance
of check; payment by cash; granting, utilization,
and liquidation of cash advances.
M O D E OF DISBURSEMENT: OTHERS

D. TAX REMITTANCE ADVICE

E. WORKING FUND/ C D C

F.DIRECT PAYMENT
METHOD
TAX REMITTANCE ADVICE
Tax Remittance Advice (TRA) system was originally introduced
in New Government Accounting System

amended by Joint Circular No. 1-2MOA dated July 31, 2001 of the Department of Finance (DOF),
the Department of Budget and Management (DBM), and the Commission on Audit (COA)

the Notice of Cash Allocation received by the government agency from the
DBM is net of the applicable percentage of TRA based on the NCA received.

estimated taxes are computed based on the following percentages: Personnel

Services 8%, Maintenance and Other Operating Expenses 5% and Capital
Outlay 5%.
TAX REMITTANCE
ADVICE (TRA)
The Tax Remittance Advice (TRA) is an accountable document
issued by NGA and approved by the Agency Head to record the
remittance of all taxes withheld to the BIR. The same document
shall be the basis for the BIR and the BTr to draw a Journal Entry
Voucher to record the tax collection and deposit in their
respective books of accounts.
TAX REMITTANCE
ADVICE (TRA)
TRA refers to a serially numbered document prescribed by the DBM that should
be used by the NGA in the remittance of withheld taxes on funds coming from
DBM.

The TRA shall be supported with the Summary of Taxes Withheld (STW) certified
by the Chief Accountant/Head of Accounting Division/Unit and approved by the
Head of Agency/Authorized Official, and used to record the remittance of taxes
withheld to the BIR. The STW is the document which summarizes the type and
amount of taxes withheld based on the withholding tax returns. The Accounting
Division/Unit shall maintain a Sub Ledger to monitor remittances of taxes
withheld from individual employees, suppliers and contractors.
PROCEDURES FOR DISBURSEMENTS THROUGH
TRA
PROCEDURES FOR DISBURSEMENTS THROUGH
TRA
PROCEDURES FOR DISBURSEMENTS THROUGH
TRA
PROCEDURES FOR DISBURSEMENTS THROUGH
TRA
TAX REMITTANCE
ADVICE (TRA)
It is noteworthy that NCA received by the National
Government Agencies from DBM may include or net of
the TRA.
DI SBURSEMENTS BY FOREI GN-
BASED GOVERNMENT AGENCI ES
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 exceed the released
allotment to the said post (National Budget Circular No. 535 dated December
29, 2011).
DISBURSEMENTS BY FOREIGN-
BASED GOVERNMENT
AGENCIES Governmen
t
The following are the accounting policies regarding disbursements by Foreign-
based Agencies
a.Based (FBGAs):
on the proposed budget of FSP/Foreign Attaché, a Working Fund shall be established to cover
payment of PS and MOOE. The Finance Officer shall be required to maintain CBReg and CDReg to
monitor and control the Working Fund.

b.All disbursements from the Working Fund shall be covered by duly approved DV/Payroll with the
required SDs. At the end of the month, the Finance Officer of FSPs/Foreign Attachés shall prepare and
submit RCDisb together with the SDs to the Central Office concerned for preparation of JEV to record
the liquidation made by the accountable officer. The JEV shall be recorded in the CkDJ and CDJ based
on the CBReg and CDReg, respectively
ILLUSTRATIVE ACCOUNTING ENTRIES FOR DISBURSEMENTS
THROUGH CASH DISBURSEMENT CEILING
DIRECT PAYMENT
METHOD
Direct Payment method should be covered by a Non-Cash Availment
Authority (NCAA). This mode of disbursement is made through the JEV
issued by the BTr, the availing implementing agency, to record payment of
goods and services directly by the lending institution to the supplier or
contractor. The JEV shall be recorded in the General Journal.
PROCEDURES FOR DISBURSEMENTS THROUGH DIRECT PAYMENT SCHEME OF FOREIGN LOANS
AVAILMENT
PROCEDURES FOR DISBURSEMENTS THROUGH DIRECT PAYMENT SCHEME OF FOREIGN LOANS
AVAILMENT
PROCEDURES FOR DISBURSEMENTS THROUGH DIRECT PAYMENT SCHEME OF FOREIGN LOANS
AVAILMENT
ILLUSTRATIVE ACCOUNTING ENTRIES FOR
DISBURSEMENTS THROUGH DIRECT PAYMENT SCHEME OF
LOAN AVAILMENT
A. AGENC Y BOOKS
1. Receipt of goods procured through the direct payment
scheme

2. Receipt of NC AA and Settlement of Accounts

Payable

B. BUREAU O F TREASURY
BOO KS
OVERALL CONCLUSION
Most of the transactions in the
government involve the receipt and
disbursement of cash.
THANK YOU
FOR
LISTENING!
- GROUP 6