Sec. 1. Disbursements by Cash.

Disbursements by cash shall be made from cash advances drawn and maintained in accordance with COA rules and regulations. Cash payments shall be made based on duly approved payrolls/disbursements vouchers. Sec. 2. Cash Advances for Travel. Cash advances granted for travel shall be accounted for as Due from Officers and Employees and these are subject to liquidation upon travel completion. For liquidation of travel where the amount of cash advance is equal to or more than the travel expenses incurred, the Liquidation Report form shall be prepared by the officers/employees concerned and submitted to the Accounting Unit as basis for JEV preparation. The excess cash advance shall be refunded and an OR shall be issued to acknowledge receipt thereof. In case the amount of cash advance is less than the travel expenses incurred, a Liquidation Report shall be submitted to liquidate the cash advance previously granted and a DV shall be prepared to claim reimbursement of the deficiency in amount. Sec. 3. Expenses Area of Responsibility Cash Unit Accountable/ Disbursing Officer Procedures for Disbursements by Cash - Payment for Payroll and Other

Seq. No.

Activity

Receives the approved check from the Cashier. Records in the Cash Disbursements Record (CDR) the date, reference, name of payee, particulars and the amount of check in the debit column. Encashes check in a GSB. Pays officials and employees/other payees. Note 1 Employees/payees shall sign on the received portion of the payroll/DV to acknowledge receipt of payment. Note 2 If there are unclaimed salaries, refund the same within a reasonable time. OR representing the refund shall be issued by the Cashier.

2 3

Records payment including the refund for unclaimed salary in the credit column of the CDR. At the End of the Month

Based on the paid payroll/DV and supporting documents, prepares Report of Disbursements (RD) in two copies. Signs

Area of Responsibility

Seq. No.

Activity the Certification portion of the RD. Note 3 The RD shall serve as the liquidation report of the cash advance granted to the Disbursing Officer. Note 4 The RD shall be distributed as follows: Original - Accounting Unit together with the originals of the paid DVs/Payrolls and supporting documents for JEV preparation Copy 2 - Cash Unit file

Accounting Unit Releasing/ Receiving Clerk

Records in the logbook, indicates Received and signs all copies, forwards the RD to the Bookkeeper for JEV preparation, and returns Copy 2 to the Cash Unit. Prepares JEV based on the RD and supporting documents received. Note 5 For the succeeding activities, refer to Sec.71, Preparation and Submission of Trial Balances and Other Reports.

Bookkeeper

Records payroll payment in the individual Index of Payments (IP) of officials and employees.

Sec. 4. Area of Responsibility Cash Unit Cash Staff

Disbursements Through Bank - Payroll Payment Seq. No. 1

Activity Receives the approved check, DV and Following Months' Payroll (FMP), signs the logbook of the releasing office, and forwards the documents to the Cashier. Deposits the check to the Bank Payroll Account together with the original of the Summary of Employees Net Earnings (SENE) received from Accounting Unit. Files temporarily Copies 1-2 of FMP, copy 2 of the check, and Copies 1-3 of DV for the preparation of RCI. Note 1 The payee of the check is the Servicing Bank whose authorized representative shall acknowledge receipt of the check by signing on the original of the DV. Note 2 Refer to Seq. No. 19, Sec.34, Procedures for Disbursements by Checks.

Note 3 Payroll payment through bank shall also be recorded in the IP maintained by the Accounting Unit. Sec. 5. Disbursements Through Petty Cash Fund. Petty Cash Fund shall be maintained under the imprest system. The fund shall be sufficient for the non-recurring, emergency and petty expenses of the agency. Disbursements from the fund shall be through the Petty Cash Voucher (PCV) which shall be approved by authorized officials and signed by the payee to acknowledge the amount received. The official receipt or its equivalent is attached to the PCV. Sec. 6. Area of Responsibility Procedures for Disbursements Through Petty Cash Fund Seq. No.

Activity Receipt of Check for the Establishment/ Replenishment of Petty Cash Fund

Various Unit Petty Cash Custodian

Receives check from Cashier for the establishment/replenishment of petty cash fund. Retrieves Cash Disbursement Record (CDR) and records the date, reference and the amount of check in the

Area of Responsibility

Seq. No.

Activity Disbursements column.

Encashes check in GSB and keeps the cash in a safety vault. Utilization of Petty Cash Fund

Requesting Personnel Immediate Supervisor Requesting Personnel

Accomplishes Box A Requested by portion of the Petty Cash Voucher (PCV). Signs Box A Approved by portion of the PCV and returns to Requesting Personnel. Submits to the Petty Cash Custodian for the release of fund.

Petty Cash Custodian

Receives from the Requesting Personnel the PCV duly approved by concerned official. Upon granting of the petty cash advance and signs in Box B Paid by portion of the PCV. Receives petty cash and signs in Box B Cash Received by portion of the PCV. Issues Copy 2 of the PCV to requesting personnel Retrieves CDR from file and records paid PCVs. Fills up the following columns: date, reference, name of payee, nature of payment, amount in the credit column and cash advance balance. Files the original of PCV awaiting liquidation. Liquidation of Petty Cash Advance

Requesting Personnel Petty Cash Custodian

9 10

11

12

Receives from Requesting Personnel Copy 2 of the PCV together with supporting documents. Checks and reviews completeness of documents such as the date, amount and nature of expenses paid as shown in the supporting

Area of Responsibility

Seq. No. documents. 13

Activity

If incomplete, returns to Requesting Personnel for completion of needed supporting documents. If complete, retrieves the original of PCV from file and fills up Box D Liquidation Submitted portion of the original and Copy 2 of PCVs. Checks the appropriate boxes for Received Refund or Reimbursement Paid portion and signs Box C of the PCV. Checks and fills up the appropriate boxes for Liquidation Submitted and Reimbursement Paid upon submission of necessary supporting documents and receipt or reimbursement of cash, if any, and signs the PCV. Returns Copy 2 of the PCV to the Requesting Personnel. If the amount granted is equal to the amount paid as shown in the liquidated PCV, proceeds to Sequence No. 18. If the amount is not equal to the amount paid, retrieves from file the CDR and records the necessary adjustments based on the liquidated PCV. Fills up the following columns: date, reference, name of payee, and nature of payment, amount in the appropriate debit, credit and balance columns.

14

Requesting Personnel

15

Petty Cash Fund Custodian

16

17

18

Files the original of the PCV together with the supporting documents awaiting replenishment. Replenishment of Petty Cash Fund

Petty Cash Fund Custodian

19

Retrieves from file the original of the PCV together with the supporting documents. Checks the completeness of all PCVs for replenishment.

Area of Responsibility

Seq. No. 20

Activity Prepares the Petty Cash Replenishment Report (PCRR) in two copies based on PCVs in numerical sequence and fills up the following columns: date, PCV No., particulars and amount. Signs in the Certified Correct by portion of the PCRR. Based on the PCRR, prepares DV in three copies. Forwards Copies 1-3 of the DV, original of the PCRR and PCV, and supporting documents to Authorized Official for review and signature. Signs in Box A portion of the DV.

21

22

Authorized Official Petty Cash Fund Custodian

23

24

Forwards Copies 1-3 of the DV, originals of PCRR and PCVs and supporting documents to Budget Division for preparation of the ALOBS. Note 1 For the succeeding activities, refer to Sec.15, Procedures in the Recording of Obligations.