Finance Group Manual (Policies, Procedures, and Guidelines)

Download as pdf or txt
Download as pdf or txt
You are on page 1of 33

I.

INTRODUCTION
II. ABOUT US

TABLE OF CONTENTS
A. Finance Group Departments
1. Office of the Deputy Administrator for Finance
2. Accounting Department
3. Financial Planning and Budget Department
4. Treasury Department
B. Mission and Vision
C. Organizational Structure
D. Contact Information
III. LIST OF POLICIES, PROCEDURES, AND GUIDE-
LINES
A. Office of the Deputy Administrator for Finance
1. Policy On Petty Cash Fund
2. Manual Billing Assessment Procedures/
Guidelines
3. Guidelines on Authority for Chargeable Ex-
penses and Free-Of-Charge
4. Policy on Payment Under Protest
B. Accounting Department
1. Proposal to Implement the 2011 Peso Rates
2. Omnibus Policy of the Subic Bay Metropoli-
tan Authority on the Imposition of Perfor-
mance Bond and Its Applicable Rates
3. Policy on and Operating Guidelines in Han-
dling Unidentified Collections
4. Policy on Allowance For Doubtful Accounts
FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES

INTRODUCTION

5. Imposition of the Common User Service Area I. Foreword


(CUSA)
TABLE OF CONTENTS
This Finance Group Manual is initiated by the Office of the Deputy Adminis-
6. Board Approval on the Adjustment of Imposi- trator for Finance to compile the policies, procedures and guidelines of the
tion on Interest Rates Office of the Deputy Administrator for Finance, Accounting Department, Fi-
nancial Planning and Budget Department, and Treasury Department.
7. Salary Deduction of Personal Charges
8. Special Deduction of Personal Charges
II. How to Use this Manual
9. Special Garbage Collection and Tipping Fee
The main objective of this manual is to be an electronic reference/guide to all
10. Stoppage of the Interest and Penalties for the departments and offices of SBMA (Subic Bay Metropolitan Authority).
Unpaid Accounts of Ten (10) Years and Above
This is also a means to check if the policies, procedures and guidelines are
11. Policy on Sublease Agreements up to date or there is a need of an amendment to address the concerns of
C. Financial Planning and Budget Department the agency and its stakeholders and it jive with the current situation.

1. Guidelines on Food Provision Likewise, this manual is also posted and can be downloaded in the official
website of SBMA at www.mysubicbay.com.ph under the Office of the Deputy
2. Guidelines on Expenses
Administrator for Finance.
D. Treasury Department
1. Collection of Php10.00 on Every Certified
Copy of Official Receipts (OR) and IFMS
Print Out
2. Minimum Amounts That Will Be Allowed for
Payment Scheme
3. Policy on Payment Scheme
4. Stringent Policy to Collect SBMA Receiva-
bles
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

A. FINANCE GROUP DEPARTMENTS 2. ACCOUNTING DEPARTMENT

1. OFFICE OF THE DEPUTY ADMINISTRATOR FOR FINANCE The Accounting Department generates timely, meaningful, and accurate financial
reports in accordance with International Financial Reporting Standards; maintains the
The Office of the Deputy Administrator for Finance is the backbone of the Subic
integrity of financial records; ensures propriety of claims for payment; processes valid
Bay Metropolitan Authority which aimed to have a continued financial stability, and
claims expeditiously; and maximizes SBMA revenues through an effective billing sys-
is the forefront in providing reliable financial reports and records, giving sound fi-
tem.
nancial advice, and delivering world class financial services without sacrificing cus-
tomer satisfaction. OUR FUNCTIONS AND CORE SERVICES

Billings

OUR FUNCTIONS AND CORE SERVICES • Bills all Locators and Housing Residents for rental and utility charges
• To have a systematic and standard budget preparation, budget preparation, admin- • Records all billings in the Journal of Accounts Receivable
istration and control processes for agency-wide operational cost effectivity and
Payables & Payments
provident expenditure
• Processes the payment of fully documented billings and claims from suppliers of
• To develop effective operational methods for increased productivity of revenue cen-
goods and services, maintenance contractors, customers, and employee's cash
ters
advance for local travel; and ensures liquidation thereof
• To execute the procedure for more effective and efficient corporate revenue receiv-
• Processes for the payment of consultancy fees and employee's cash advance for
ing and disbursing system, cashiering, collection services and management of in-
foreign travel, and initiates action for the pre-audit of the cash advance and its
vestment of excess funds
liquidation thereof
• To establish system and procedures in financial planning and control
Payroll
• To come up with a timely and accurate transactions in accordance with the perti-
• Processes the payment of compensation of regular and contractual employees,
nent Budgeting, Accounting, and Auditing Rules and Regulations
monetization of leave credits, and final pay
• To adhere and comply with all existing COA Rules and Regulations
• Records all accrued expenses and corresponding payments /disbursements
made by the Treasury Department in the Journal of Accounts Payable

Collections And Deposits

• Reports of collections and deposits received from the Treasury Department on a


daily basis for recording in the Journal of Collections and Deposits

• Financial Statements And Reports Preparation


• Summarizes all accounting transactions recorded in all Journals
Prepares monthly financial statements and reports
• Summarizes all accounting transactions recorded in all Journals
• Prepares monthly financial statements and reports
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

3. FINANCIAL PLANNING AND BUDGET DEPARTMENT 4. TREASURY DEPARTMENT

The Financial Planning and Budget Department (FPBD) is committed to provide The Treasury Department is tasked to provide efficient and effective cashiering and
quality service to the SBMA departments and offices through the implementation of disbursing services, and ensure availability of funds through successful collection of
the Quality Management System and the continuous improvement of services for accounts receivables, adequate control and effective management of cash re-
an efficient and effective quality work. sources.

OUR FUNCTIONS AND CORE SERVICES


OUR FUNCTIONS AND CORE SERVICES
Financial Planning Division
Collection
• Formulates financial policies for approval by the SBMA Board of Directors
• Collect all kinds of revenues, security deposits, advances, cash/performance/bid
• Prepares monthly Profit and Loss Report for submission to the Chairman and the bonds and other financial instruments
Administrator
• Issue official receipts
• Prepares monthly reports of the Finance Group for the Board of Directors (BOD),
i.e., Comprehensive Report per Strategic Business Unit (SBU) and Earnings be-
fore Interest, Taxes and Depreciation and Amortization (EBITDA) Report per de- Deposit
partment/office
• Deposit daily collections
• Provides financial analyses with respect to investment proposals, investment
returns, and the like
Disbursement

• Issue payments for obligations to suppliers and service providers, employees,


Budget Division
institutions, utility companies, mandatory contributions, and government agen-
• Formulates guidelines for the preparation of the Annual Corporate Operating cies.
Budget (COB) and Budget Estimates for the succeeding years

• Provides technical assistance to departments/offices in the preparation of their


respective budgets

• Validates and consolidates budget submissions of departments/offices for


presentation to and approval of the SBMA Board

• Establishes an effective system of budget management, monitoring, and control


• Analyzes actual performance against operating budget and prepares a monthly
utilization report per department/office

• Provides budget certification on availability of budgetary funds and recommends


necessary realignment for approval by the management/Board of Directors
FINANCE GROUP MANUAL:
FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES
POLICIES PROCEDURES, AND GUIDELINES

B. FINANCE GROUP MISSION AND VISION C. ORGANIZATIONAL STRUCTURE (CURRENT)

MISSION
Generate and maintain reliable financial reports and records, give sound fi-
nancial advice, deliver world-class financial services, and manage financial
needs and resources effectively.

VISION
The Finance group shall be the backbone of SBMA's continued financial sta-
bility and shall be at the forefront in providing total customer satisfaction.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

CONTACT INFORMATION
C. ORGANIZATIONAL STRUCTURE (RE-STRUCTURING PLAN)
1. Office of the Deputy Administrator for Finance
Tel. No.:+6347.252.4168/ 4167

2. Accounting Department
Tel. No.: +6347.252.4419 / 4045
Fax No.: +6347.252.4858
Billing Division I - Locators and Investors - 252.4654
Billing Division II- Housing - 252.4016
Cost Accounting Division - 252.4606 / 4017
General Accounting Division - 252.4364
Payable Division - 252.4018

3. Financial Control And Analysis Department


Tel. No.: +6347.252.4459 / 4099
Fax No.: +6347.252.4612
Financial Control Division - 252.4512
Analysis Division - 252.4605

4. Treasury Department
Tel. No.: +6347.252.4050
Fax No.: +6347.252.4051
Cash Management Division - 252.4010 / 4595 / 4344
Financial Management Division - 252.4131 / 4376
Investment Management Division - 252.4128 / 4374
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

A. OFFICE OF THE DEPUTY ADMINISTRATOR FOR FINANCE

1. POLICY ON PETTY CASH FUND Chapter 2. Terminologies and Definitions

Abstract of Canvass – is the summary of the three (3) canvasses made from suppli-
Chapter 1. Introduction ers.

1.1. Petty Cash Fund Budget Utilization Request (BUR) – is a form accomplished by end user department
signed by the requesting Department/Office Head for submission and for certification
of FCAD Office Head.
In reference to the audit report and recommendation of Internal Audit Services (IAS)
dated March 30, 2015, this “Policy on Petty Cash Fund (PCF)” is written to set up the
policy and standardize the process flow of PCF from its issuance, disbursement and Certificate of Acceptance – this form is from PPMD and is used for purchases of
replenishment, as well as the accountability of PCF Custodian. supplies and materials. It should be signed by the purchaser and stamped “Received”
by PPMD representative upon presentation of the Official Receipt/ Collection Receipt,
Invoice and purchased item for inspection.
1.2. Background
Certificate of Completion and Acceptance – this form is signed and inspected by the
A Petty Cash Fund (PCF) is cash advanced to a designated special disbursing officer concerned department/ end-user upon completion of the services.
to be used for small purchases of goods and services needed in the daily operations of
an organization. It is established in order to have an immediate source of cash for the
payments of petty operating expenses such as small amounts for the purchases of Collection Receipt – is issued for the payment of goods or products purchased from
goods, services and other commodities. supplier.

The PCF is maintained under the imprest system in accordance with the New Govern- Government Accounting and Auditing Manual (GAAM) – updates and consolidates
ment Accounting System (NGAS). It is handled by a designated PCF Custodian where the rules and regulations on financial management and operation of national govern-
cash on hand plus unreplenished expenses should be equal to the approved amount of ment agencies, LGUs, and government -owned or controlled corporations and their
fund. As such, all replenishments are directly charged to the expense account. subsidiaries.

In SBMA, the PCF was initially established at the Treasury Department in the amount Inventory Custodian Slip (ICS) – the claimant should attach an ICS of semi -
of P100,000 and the Head Cashier was designated as PCF Custodian for small pur- expendable items that is certified by PPMD.
chases for goods and services worth up to P2,500 per transaction to facilitate immedi-
ate purchase of office supplies, and/or repairs of motor vehicle or equipment but not Invoice – may include: Sales Invoice, Whole Sales Invoice, Billing Invoice, etc.
for regular inventory items for stocking. In the exigency of the service, other depart- (should be BIR compliant/ATP)
ments and offices were authorized in various amounts to maintain separate PCFs.
New Government Accounting System (NGAS) – is the basic policies and proce-
COA Circular No. 2012-001 dated June 14, 2012 provides among others the following dures; the new coding system; and financial statements; and illustrative accounting
entries to be adopted by all national government agencies effective January 1, 2002.
General guidelines and documentary requirements common to all cash advances:
Official Receipt (OR) – is issued in payment for services rendered.
Authority of the accountable officer issued by the Head of Agency should indicate the
maximum accountability and purpose of cash advance. Transfer of cash advances Property Acknowledgment Receipt (PAR) – is attach for Capital expenditures
from one accountable officer to another shall not be allowed. This policy is also stated (Capex) items.
under Sec. 174.d, Volume I of the Government Accounting and Auditing Manual
(GAAM). Petty Cash Fund (PCF) – is establish for small purchases for goods and services for
extra ordinary items in case of emergency. It should not be used to purchase regular
inventory/items for stock.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Chapter 4. Threshold/Limit in the Availment of Cash Advance from Petty Cash Fund

Petty Cash Voucher (PCV) – is a form issued by the PCF Custodian and shall be approved by
authorized officials and signed by the payee to acknowledge the amount received. a. For replacement of spare parts
• Other Department’s PCF - P5,000
Stock Availability Inquiry (SAI) – is a form which should be routed to PPMD to certify inclusion
of requested item(s) in APP and confirmation of stock status whether Not in stock (NIS) or Not
• Treasury Department’s PCF – P10,000
Carried (NC) and to FPBD to ensure budget funds availability. b. For Office Supplies

Statement of Urgency – is a certification issued by Head of Office/Department in lieu of Can- • Other Department’s PCF/Treasury Department’s PCF – P2,500
vass and Abstract of Canvass while on official travel.
• For Services/Repairs and Maintenance of Equipment
Transcript of Stenographic Notes (TSN) – is a note issued by a Stenographer from hearing.
• Other Department’s PCF - P5,000
Waste Materials Report - this is a report signed by the PPMD inspector and witness to the
disposition of parts replaced.
c. For Services/Repairs and Maintenance of Equipment
• Other Department’s PCF - P5,000
Chapter 3. Guidelines in Granting and Utilizing of Petty Cash Fund • Treasury Department’s PCF – P10,000

a. Only permanent employees designated as “Special Disbursing Officer” by the SBMA Chair- d. Food Provision for Meetings
man and Administrator and covered with fidelity bond issued by the Bureau of Treasury shall • Other Department’s PCF/Treasury Department’s PCF– P5,000
be granted PCF.
b. The PCF shall be used only for the specific legal purpose (See 1.2) for which it was granted. e. Other Materials
c. The cash advance for PCF shall be sufficient for the petty operating expenses of the depart- • Other Department’s PCF—P5,000
ment. Note: Financial Planning & Budget Department (FPBD) shall ensure that the quantity of • Treasury Departments PCF—P10,000
item (supplies) for procurement is not for more than one (1) month.
d. The PCF Custodian may request for replenishment of the said fund when the disbursement f. Payment for Toll Fees/ Parking Fees
reach at least 75% or as the need requires.
• Other Department/Treasury—Metro Manila Area
e. Transfer of PCF from one (1) Custodian to another shall not be allowed.  Class 1—For 4 wheels like car—P500
f. No PCF Custodian shall be allowed to handle two (2) PCF at the same time.  Class 2—For 6 wheeler or 7ft like coaster—P1,000
g. The PCF shall not be used for payment of regular expenses such as rentals, subscriptions,  Class 3—For heavy Equipment like 10 wheeler—P1,500
light, water and the like.
h. PCF shall be used exclusively by the concerned SBU, office or department only. Other • Other Department/Treasury—Outside Metro Manila Area
SBU’s, offices or departments without PCF shall request petty cash from the PCF Custodian
at the Treasury Department.\  Class 1—For 4 wheels like car—P800
 Class 2—For 6 wheeler or 7ft like coaster—P1,500
 Class 3—For heavy Equipment like 10 wheeler—P2,500

Maintenance and Transportation Department shall provide the cash advance for the Toll Fees
and Parking Fees of the Drivers they provide on official travels. On the other hand, drivers of
other department may request cash advance from the Treasury Department for the same pur-
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Chapter 4. Documentary Requirements for Submission to Accounting Department for Initial Set-
Up of Petty Cash Fund  For reimbursement - the payee should fill up completely the PCV, except the Authori-
zation portion, and attach all supporting documents.
a. Memo request to set up PCF addressed to Office of the Deputy Administrator (ODA) for Fi-
nance for review/validation and endorsement for approval by the Administrator. The memo d. For the amount to be drawn/ on invoicing requirement, SBMA is not subject to Value Added
should cite the purpose/justification for setting the PCF, the desired amount and who would Tax (VAT). However, the agency is required to deduct from procurement of supplies, materi-
be the custodian. als, services, etc. the appropriate Expanded Withholding Tax (EWT) in accordance with Bu-
b. Office Order designating the personnel as Special Disbursing Officer to handle the Petty reau of Internal Revenue (BIR) Revenue Regulation No. 17-2003, Section 3-M, par 1 & 4.
Cash Fund and stating the purpose and amount of the Fund.
Paragraph 1 (Tax rate)
c. Budget Utilization Request (BUR)
All goods, e.g. supplies & materials - 1%
d. Copy of Bureau of Treasury (BTr) Confirmation letter of fidelity bond of PCF Custodian or
memo from Treasury Department to Accounting Department together with proof of payment Services - 2%
certifying that the fidelity bond was processed and paid to the BTr.
Paragraph 4 (Supplier of goods/ services)

The term “local/resident supplier of goods” pertains to a supplier from


Chapter 5. Issuance of Petty Cash to Requesting Offices/Department
whom any of the top ten thousand (10,000) private corporations, as de-
a. Cash may be drawn from PCF to cover cash advance or reimbursement of the requesting termined by the Commissioner, regularly makes its purchases of goods.
offices/department. As a general rule, this term does not include a casual purchase of goods,
b. The Petty Cash Voucher (PCV) Form (Annex A) shall be submitted to the PCF Custodian to that is, purchases made from non-regular suppliers and oftentimes in-
support the request for petty cash. volving single purchases. However, a single purchase which involves ten
thousand pesos (P10,000.00) or more shall be subject to a withholding
c. The PCV shall be accomplished by filling up the following information:
tax. The term “regular suppliers” refers to suppliers who are engaged in
• Name of Payee
business or exercise of profession/calling with whom the taxpayer-buyer
• Date
has transacted at least six (6) transactions, regardless of amount per
• Department/ Division
transaction, either in the previous year or current. The same rules apply
• Particulars and the purpose of the request
to local/resident supplier of services other than those covered by sepa-
• Amount/ Total amount
rate rates of withholding tax.
• Authorization portion (to be signed by the Authorized Payee of the department)
• Certified portion (to be signed by the Head of the Office/ Department) Non-compliance with invoicing requirement, the related tax consequences will be shouldered
• Approved portion (to be signed by the Deputy Administrator of the requesting office/ personally by the payee.
department or higher authority or designated officer in-charge during his/ her absence)
In case the supplier or service provider is Subic Bay Freeport (SBF) Enterprise with CRTE, the
For Cash Advance - the payee should fill up the authorization portion, which indicate that company is not subject to EWT.
the Treasurer is being authorized to deduct the full amount of the cash advance from the
salary of the payee, if the payee failed to comply the following: Sample of Invoice:
 Submission within five (5) working days the necessary supporting documents for
For Non-VAT Supplier – Annex B
purpose of liquidation. For VAT Supplier – Annex C
 To return within 24 hours to the PCF Custodian the amount received if unable to For Supplier of Services – Annex D
spend for the indicated purpose or the nature of expenses is different from the re-
quested purposes.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Chapter 6. Documentary Requirements for the Grant of Cash Advance from Petty Cash Fund Chapter 7. Determination of Non-Stocks Availability Inquiry from PPMD

PCV Number shall be assigned by the PCF Custodian upon liquidation of petty cash advances a. Stock Availability Inquiry (SAI) Form (Annex E)
or payment of the reimbursement with applicable supporting documents depending on the
b. Inclusion to Annual Procurement Plan (APP)
transaction type as follows:
1. Purchases for replacement of spare parts c. Project Procurement Management Plan (PPMP) Amendment
• PCV with complete data and signature
• Stock Availability Inquiry (SAI)
• Technical Evaluation Chapter 8. Documentary Requirements in the Liquidation of Cash Advanced thru PCF
• Work authorization and related documents 1. Purchases for replacement of spare parts
• Vehicle/ Equipment Maintenance Service Request Form • Original copy of Collection Receipt
• Original copy of Canvass from at least three (3) suppliers • Invoice
• Summary/ Abstract of Canvass • Waste Material Report
• Certificate of Inspection and Acceptance
2. Purchases of Office Supplies and Other Materials
• PCV with complete data and signature 2. Purchases of Office Supplies and Other Materials
• Original copy of Collection Receipt
• Stock Availability Inquiry (SAI)
• Invoice
• Approved Purchase Request (PR) with certificate of Emergency Purchase • Certificate of Inspection and Acceptance
• Original copy of Canvass from at least three (3) suppliers
3. Services/Repairs and Maintenance of Equipment
• Summary/ Abstract of Canvass a. Services Only
• Original Copy of Official Receipt
3. Services/ Repairs & Maintenance of Equipment • Certificate of Completion
• PCV with complete data and signature
b. Services and Materials
• Stock Availability Inquiry (SAI) • Original copy of Official Receipt
• Approved PR with certificate of Emergency Purchase • Service Invoice
• Waste Material Report
• Technical Evaluation
• Certificate of Completion
• Vehicle/ Equipment Maintenance Service Request Form
4. Purchase of Food Provision for Meetings
• Original copy of Canvass from at least three (3) suppliers • Original copy of Official receipt/ Collection Receipt
• Summary/ Abstract of Canvass • Attendance Sheet
• Certification that the meeting was held and citing the Purpose
4. Purchases of Food Provision for Meetings
• PCV with complete data and signature 5. Payment for Toll Fees/ Parking Fees
• Original copy of Toll Tickets/Official Receipt
• Letter of Invitation/ Notice of meetings • Certificate of Travel complete
• Original copy of Canvass from at least three (3) suppliers • Certificate of Appearance
• Summary/ Abstract of Canvass • Approved trip tickets

5. Payment for Toll Fees


• PCV with complete data and signature
FINANCE GROUP MANUAL:
FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES
POLICIES PROCEDURES, AND GUIDELINES

Chapter 9. Documentary Requirements for the Payment for the Payment of Reimbursements
Chapter 12. Petty Cash Fund Audit
All of the cited documentary requirements for the grant of Cash Advance from PCF and liquida-
tion of Cash Advances from PCF are the same document that needs to be submitted to the
PCF custodian for reimbursement of expenses. Cash advance system has been recognized by the Commission on Audit (COA) as a facilitative
tool in the financial operations of the government since there are certain instances when it may
a. Stenographic Services – Official Receipt is needed be very difficult, impractical or impossible to make payments by check.
b. Expenses incurred during Official Travel related to repairs and maintenance of vehicles,
Statement of Urgency (Annex F) in lieu of canvass and abstract of canvass.
The use of PCF for petty operating expense falls under the category of regular cash advance as
set forth by COA to defray small payments which cannot be paid conveniently by check or are
Chapter 10. Petty Cash Fund Replenishment required to be paid immediately which includes:

As a general rule, PCF is replenished when the cash disbursed is already 75% of the total fund,
or as the need requires. Replenishment may also be made considering the time involved in Procurement of (a) non-common supplies and (b) urgently needed office supplies or stocking
validation/ review and routing of PCF for replenishment. items in cases when the same are not available at the time in the inventory of the PPMD; and

The PCF Custodian shall prepare the following documents covering payments made based on
Petty Cash Voucher (PCV) to facilitate replenishment of the fund by the Petty Cash Fund Cus- The Internal Audit Services (IAS) shall include in their Annual Audit Plan the conduct of spot
todian to the Accounting Department for processing of the PCF’s replenishment: audit or review i.e., quarterly, semi-annual or annual of the PCF usage and ensure that the doc-
umentary requirements are met.
• Report of Disbursements (Annex G)
• Summary of Petty Cash Vouchers (Annex H)
Chapter 13. Process Flow of Petty Cash Fund Cycle
• Petty Cash Fund Replenishment Report (Annex I)
• Budget Utilization Request (BUR) (Annex J) Treasury Department – per Document Code: SBMAPM-QP-05-22-R (Annex K)
• Complete documentation for each PCF Disbursement FPBD – Petty Cash Disbursement Process (Annex L)

The package shall be submitted to FPBD for processing of the BUR, standard time = 2 working
days upon receipt of complete documents. Afterwards, the package will be processed by Ac-
counting Department for APV preparation, standard time = 3 working days. Finally, the replen-
ishment package shall be forwarded to Treasury Department for preparation of Payment Vouch-
er and check, standard time = 2 working days.

Unliquidated Petty Cash Advances shall be controlled separately by the PCF Custodian to en-
sure proper and timely liquidation.

Chapter 11. Management of Petty Cash Fund

 The PCF Custodian shall maintain and record the setting up of the fund in the PCF Cash-
book.
 Each paid reimbursement and liquidated Petty Cash Advances shall be issued Petty Cash
Voucher Number.
Note: Official Receipt/ Collection Receipt and Invoices shall be stamped “PAID”.
3. The PCF Custodian shall record all issued PCV No. chronologically in the PCF Cashbook.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Note: For every official receipt issued, there should be a corresponding billing assess-
2. BILLING ASSESSMENT
ment attached.
Chapter 1. Introduction
All RGDs are required to submit an initial Accountable Form Report to COA and Treasury De-
Section I. The Billing Assessment partment for all Billing Assessments, Traffic Citation Ticket (TCT) on hand upon receipt of newly
printed form from NPO or any NPO accredited printing office for purposes of monitoring and
Pursuant to Commission on Audit (COA) findings and recommendations, SBMA AOM No. 2006- control of the beginning and ending balances of the said form.
05 dated February 2, 2006, all Revenue Generating Departments (RGD) must have a Central-
ized pre-numbered Billing Assessment for all fees and penalties being remitted to Treasury De- Section IV. Terminologies and Definition
partment for payment.
Billing Assessment Form (BAF) – is a pre-numbered book bound accountable form or IFMS
Internal Audit Services’ (IAS) recommendation is to come up with a uniform guidelines and pro-
Generated. Billing Assessment can be:
cedures on the administration of Billing Assessment to all RGDs.

All Manual Billing Assessment Form (MBAF) issued by RGD must be pre-numbered and consid- Manual Billing Assessment Form (MBAF)
ered as Accountable Forms. It must be printed in three (3) copies (White/Original – Depart- Assessment Form (AF) - used only by the Construction and Maintenance
ment’s copy, Blue/Duplicate – Treasury’s copy and Green/Triplicate - Customer’s copy) from
National Printing Office (NPO) or any NPO accredited printing office. General Assessment Form (GAF) - Billing Assessment Form for general purposes used
by various departments.
Traffic Citation Ticket (TCT) - Billing Assessment used only by the LED
Section II. Objective Traffic Citation Ticket (TCT) – Billing Assessment used only by the LED
This Manual Billing Assessment Procedures and Guidelines aimed to come up and standardize General Assessment Form (GAF) – Billing Assessment Form for general purposes used by
procedures and to serve as guide to all RGDs. various departments.

Traffic Citation Ticket (TCT) – Billing Assessment used only by the LED
Section III. Background
Integrated Financial Management System (IFMS) generated Billing Assessment Form
In SBMA, twenty six (26) departments and offices (see Annex A) are identified as RGD that
issue Billing Assessment Form (BAF) for services rendered and for permits and penalties being Integrated Financial Management System (IFMS) generated Billing Assessment Form.
charged by the agency which are inherent to their mandate or function. The form being used is
either a Manual BAF or the Billing Assessment generated through the Integrated Financial Man- Bureau of Internal Revenue (BIR)
agement System (IFMS) Account Receivable Module after encoding the revenue details. The
MBAF is an accountable form without money value, book bound and printed/pre-numbered form. Commission on Audit (COA)
Pre-numbered MBAFs issued and used only for services directly paid to Treasury Department
Department Accountable Forms Custodian (DAFC) – is a plantilla personnel designated by
Cashiers. It is separate and distinct from those billing invoice issued by Accounting Department
the department who oversee the issuance of the accountable forms to DAFA.
to customers.

Law Enforcement Department (LED), Intelligence Office (IO), Land and Asset Management Department Billing Officer (DBO) – is a plantilla personnel designated by the department to
Department (LAMD) citation tickets will be considered as accountable form and included in the issue BAF.
monthly report to COA and copy furnish the Treasury Department.
Government Accounting and Auditing Manual (GAAM)
Law Enforcement Department (LED), Intelligence Office (IO), Land and Asset Management
Department (LAMD) citation tickets will be considered as accountable form and included in the Intelligence Office (IO)
monthly report to COA and copy furnish the Treasury Department.
Land and Asset Management Department (LAMD)
Facilities that issue tickets in lieu of official receipts are exempted from issuing pre-numbered
MBAFs except for Subic Bay International Airport (SBIA) issued terminal fee tickets which must Law Enforcement Department (LED)
be accompanied by a passenger manifest for the verification on total number of tickets issued.
Construction and Maintenance Department (CMD)
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Section VI. ACCOUNTABILITY OF FORMS

Monthly Report of Accountability For Accountable Forms (MRAAF) The Procurement and Property Management Department (PPMD) will be in charge in the pro-
curement, issuance (monitoring/control/inventory) of manual GAFs, TCTs and AFs.
Official Receipt (OR)– issued by Treasury Department Cashiers upon payment

Procurement and Property Management Department (PPMD) Inspection of accountable forms received from the National Printing Office (NPO) excerpt from
GAAM vol. 1, Section 94, upon receipt of accountable forms from the NPO, the Collecting Of-
Revenue Generating Departments (RGD) ficer/Treasurer/Property Officer shall examine carefully each book or pad. He shall segregate
any book or pad found to contain defects, such as incorrect series of numbers, or missing leaves
Subic Bay International Airport (SBIA)
or sheets, etc. and submit it to the COA Unit Auditor together with a statement of the defects or
deficiencies noted (see Annex F).

Chapter 2 The COA Unit Auditor shall examine the book or pad. If he finds the defects are due to error in
binding or printing, he shall make proper notations on the book or on the defective sheet itself.
Section V. BILLING ASSESSMENT FORM (BAF) He shall also immediately furnish the Collecting Officer/Treasurer/Property Officer concerned
with two copies of the certificate covering his action. The Collecting Officer/Treasurer/Property
The BAF is a document for cash transaction that indicates the amount due from the customer.
Officer shall use this certificate in support of a credit to his account for the missing or defective
The amount due for services rendered or issuance of permit/clearance should be paid immedi-
ately and issued a corresponding Official Receipt (OR). forms noted by the Unit Auditor. The agency, through the Unit Auditor, shall send two copies of
the certificate to the Head of the National Printing Office. These copies shall contain the initials
BAFs issued are recorded in the books when collected, whereas, the Billing Invoices issued by or numbers that are written on the respective card covers of the defective books or pads, or on a
the Accounting Department are outright recorded in the books though not yet collected to estab- slip covering such information for the guidance of the National Printing Office in locating employ-
lish accounts receivable.
ees responsible for the error or deficiency.
There are RGD’s that issue IFMS generated Billing Assessment (see Annex B). It is generated
by encoding data using the IFMS Accounts Receivable Module, and printed for issuance to the Issuance of the MBAF shall be accomplished by the Issuance Section of the PPMD. A perma-
customers. When the IFMS is down, the manual form is used as back-up. The IFMS Accounts nent record book (see Annex G) for each type of MBAF as required under GAAM vol. 1, Section
Receivable Module is able to collect data and generate related reports. 95 must be maintained by PPMD with the following column headings:

The Bureau of Internal Revenue (BIR) Revenue Memorandum Circular No. 44-2013 dated June  Booklet Control Number;
11, 2013 stated that, “After August 30, 2013, all principal and supplementary receipts/invoices
printed prior to January 18, 2013 shall no longer be valid.” In compliance therewith, the SBMA  Quantity of Booklet Issued;
secured authority from BIR to procure the new forms of OR and BAFs. Beginning August 31,  Serial Number;
2013, concerned SBMA Departments have been using new Manual Billing Assessment Form
(MBAF) with titles as follows:  Name (in print) of accountable officer to whom issued;
 Signature of the accountable officer;
• General Assessment Form (GAF) see Annex C – general purpose form used by various
departments  Date received by the accountable officer; and
• Traffic Citation Ticket (TCT) see Annex D – used only by the Law Enforcement Dept.  Issued by
• Assessment Form (AF) see Annex E – used only by the Construction and Maintenance Periodically, a reconciliation of the MBAFs must be made between the recorded stocks on hand
• Department (CMD) as against the physical inventory. Any missing/lost forms must be reported accordingly.

• Traffic Citation Ticket (TCT) see Annex D – used only by the Law Enforcement Dept. The MBAFs are considered accountable forms, thus, PPMD shall submit a Monthly Report of
Accountability of Accountable Form (MRAAF) to COA and copy furnish IAS.
• Assessment Form (AF) see Annex E – used only by the Construction and Maintenance
Department (CMD)
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Section VII. DEPARTMENT ACCOUNTABLE OFFICER c. Submit list of cancelled MBAFs and attach the 3 copies of the MBAF.

The RGD will designate the: The BAF will be the reference document in the issuance of official receipt by the Treasury De-
partment.
A. Department Accountable Form Custodian (DAFC) who shall be authorized to handle requisi-
tion/withdrawal of MBAFs from PPMD, and shall be responsible for: The RGD with connectivity to the IFMS MUST fully maximize the utilization of the Billing Assess-
ment/Account Receivable Module in assessing their revenues. Payments made on the issued
1. Preparation of Stock Availability Inquiry (SAI) see Annex H, to determine the availability of BAF can be verified thru the IFMS A/R Module Report wherein revenue collections can be
the requested MBAF from the Records Section of PPMD then proceed to Issuance Section. viewed/printed and reconciled with the Treasury Department’s Collection Reports as follows:

2. Issuance Section shall generate the Requisition and Issue Slip (RIS) see Annex I, for signa- Schedule of Receipts by Profit Center (Summary of Collection per Revenue Source)
ture of the Manager of the requesting department.
Detailed Transaction Report by Profit Center (Detailed information per date, OR No., Payor,
3. The safekeeping, controlling and monitoring in the issuance of the accountable forms is Control No. and nature of payment whether Dollar/Peso)
assigned to the Department Billing Officer (DBO) in cases where the DAFC is not the DBO.
Detailed Transaction Report on Billing Assessment
4. The DAFC must maintain a permanent log book (same as Annex G), control of blank forms
and issuance of billing assessment form to the DBO. RGD’s without connectivity shall request from the Management Information System (MIS) Office
for the installation of said module.
5. Submission of Monthly Report of Accountability for Accountable Forms (MRAAF) see An-
nex J to COA and copy furnished to Internal Audit Service including the missing/lost form. Section VIII. UNPAID MBAF CONVERTED TO BILLING INVOICE

6. Consolidate and submit a Summary of unpaid BAFs to Accounting Department within four All Unpaid MBAF shall be submitted to Accounting Department within four (4) calendar days
(4) calendar days after the end of the month for billing purposes. after the end of the month for generation of Billing Invoice.

B. Department Billing Officer (DBO) is responsible for: For Seaport transaction, issued unpaid MBAF will be superseded by IFMS generated billing
assessment and will be forwarded to Accounting Department within four (4) calendar days
1. The issuance of the BAF to the customers. after the end of the month for generation of Billing Invoice.

2. Maintain a permanent logbook (see Annex K) to record the transaction with the following Section IX. CANCELLED MBAF
headings:
All copies of the cancelled MBAF (White- Original copy, Blue- Treasury’s copy and Green-
• Billing Assessment Number Customer’s copy) must be noted as cancelled with the reason for cancellation and counter-
• Date issued signed by the Supervisor. It must be reported and the Treasury and Customer’s copies must
• Payor/Name of Customer be attached to the Monthly Report of Accountability for Accountable Forms (MRAAF) for
submission to COA and copy furnished the IAS. The original copy shall be retained in the
• Nature of Collection (Revenue Source)
booklet.
• Amount Billed
• Date Paid Section X. MISSING/LOST MBAF
• Official Receipt Number
3. Issue a certified photocopy of the original MBAF in case the customer lost the issued Treas- The DAFC shall make a report of all missing/lost MBAF to the COA to be attached to MRAAF
urer’s and/or Customer’s copy of the MBAF. Said copy shall be presented to the Cashier upon and copy furnished the IAS within thirty (30) days.
payment.
Per Section 100 of GAAM vol. 1, states: Immediate issuance of notice of loss of accountable
4. At the end of the month, forms. Any loss of accountable forms in the custody of collecting and property officers shall im-
mediately be reported by the accountable officers concerned to the head of the agency. The
a. DBO shall present the MBAF booklet to DAFC for notation as to the following month’s latter shall at once issue a circular or notice of such loss for the information and guidance of all
beginning balances. Submit a summary of unpaid MBAFs with photocopy of supporting
documents.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

3. GUIDELINES IN USE OF AUTHORITY FOR CHARGEABLE EXPENSES (ACE)


The circular or notice of loss shall be issued only for accountable forms generally used in all
government agencies. In case of accountable forms specially designed for the exclusive use of This refers to the Authority for Chargeable Expenses (ACE) Form, General Quality Form FCA-
an agency, the circularization shall be confined within the agency.
ACE-21, which is being used to avail the services for food and beverages, hotel/lodging and
The head of agency is not precluded from undertaking other measures which may prevent the facilities of Business Establishments within the Subic Bay Freeport (SBF) as well as in Olongapo
fraudulent use of the lost accountable forms, like the publication of such loss in newspapers of City on credit basis. The said form must be properly accomplished, signed by all signatories and
general circulation. submitted to the Office of the Deputy Administrator for Finance (ODAF) for approval three (3)
days prior to the activity to give ample time to submit the ACE to concerned establishments as
Compliance with the foregoing provisions shall be one of the requirements in the request for
their assurance for smooth and timely processing of their billings.
relief from accountability for the loss of accountable forms (COA Cir. 84-233, Aug. 2, 1984).

Chapter 3 It has been observed that many of the ACE forms are submitted after the event, hence, payment
of billings gets delayed to the dismay of the establishments. This resulted to few establishments
Section XI. DEPARTMENT RESPONSIBILITY who are willing to provide services on a credit basis to the agency.

At the end of the month: Accordingly, all requesting/ hosting departments/ offices are enjoined to submit to this office
three (3) days before the event the ACE package, composed of the following documents:
PPMD shall submit MRAAF to COA copy furnished to IAS.
a. Accomplished ACE form
All RGD’s DAFC shall submit MRAAAF to COA, copy furnished to IAS and endorse unpaid
MBAFs to Accounting Department within four (4) calendar days after the end of the month.
b. Notice of the Meeting or Letter of Request for Hosting Meal/ Lodging Accommodation dur-
Accounting Department shall generate Billing Invoice for all unpaid MBAF received from all ing Events
DAFC.
c. Canvass/ Quotation from three (3) Establishments
Section XII. AUDIT OF ACCOUNTABLE FORMS
d. Abstract of Canvass
The Internal Audit Service (IAS) shall incorporate in their Annual Audit Plan the review of all
MRAAF from the RGDs and may conduct spot audit to ensure proper control of the said ac- Upon completion of the meeting or event, the requesting/ hosting departments/ offices are ad-
countable forms. vised to immediately submit to the Accounting Department the above ACE package, with the
following supporting documents:
Section XIII. Annexes
a. Attendance Sheet during meetings or certification of the conduct or holding of the event.
Annex A - List of (26) Revenue Generating Departments (RGDs)
Annex B - Billing Assessment (IFMS generated) b. Billing Invoice/ Statement of Account
Annex C - General Assessment Form (GAF)
c. Guest Folio signed by the occupant (For lodging/ accommodation)
Annex D - Traffic Citation Ticket (TCT)
In the event of late submission, the ACE package together with the above supporting documents
Annex E - Assessment Form (AF)
must be accompanied with a memo citing the reason/ justification for late submission duly ap-
Annex F-1 – Letter to COA for the Defects or Discrepancies noted proved by the Chairman & Administrator.
Annex F-2 – Statement of the Defects or Discrepancies noted to NPO
We earnestly hope for your cooperation and support in gaining SBMA’s credit worthiness and to
Annex G - MBAF Control Log Book
prove strong financial capability thru prompt payment of our obligation.
Annex H – Stock Availability Inquiry (SAI)
Annex I – Requisition and Issue Slip (RIS)
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

4. POLICY ON PAYMENT UNDER PROTEST V. DEFINITIONS

I. POLICY STATEMENT SBMA - shall refer to the Subic Bay Metropolitan Authority.

The Subic Bay Metropolitan Authority (SBMA) was established as the sole regulatory authority
End-User Department – the SBMA Accounting Department and/or Revenue-Generating De-
overall economic activities in the Subic Bay Freeport Zone (SBFZ) entitling it to charge or im-
pose administrative, regulatory and service fees, rates, charges and penalties, among others. partments/Offices where the billing invoices or billing assessments originated.

Clients - shall refer to the Customer, Locator or Resident of SBMA who has monetary obliga-
tion/s with the latter.
II. RATIONALE
Billing Invoices / Billing Assessments - shall refer to the documents issued by SBMA summa-
The Subic Bay Metropolitan Authority (SBMA) encounters protests that usually stem from the rizing the amount due and payable to SBMA by the client.
Billing Invoices issued by the Accounting Department or the Billing Assessments issued by vari-
ous Revenue-Generating Departments/Offices, which are being contested by the customers, Contested Billings – Billing invoices/assessments issued by SBMA to the client for payment
locators or residents. In order to comply with SBMA policies and to avoid imposition of penalties
under which the latter is seeking or will seek clarification or is subject of an on-going case before
for late payment and/or the suspension of their privileges, payment is tendered but the Payor
informs the Agency that “the payment is made under protest”. a tribunal, quasi-judicial or judicial body.

Payment Under Protest (PUP) – amount of money paid by client on the contested billing invoic-
es / assessments:
III. PURPOSE AND OBJECTIVES
1. Pending issuance of SBMA’s letter of clarification
1. To provide fair and expeditious resolution of dispute regarding Payment Under Protest filed
by the client; 2. Pending its availment of other remedies allowed by law in connection with the contested
billing invoices / assessments within One Hundred Eighty (180) calendar days from receipt
2. To ensure uniformity and consistency in filing and accepting Payment Under Protest;
of the of the filing of the letter of protest; or
3. To come up with the guidelines and procedures in handling Payment Under Protest.
3. Is subject of an on-going case before a tribunal, quasi-judicial or judicial body.

Letter of Protest - a written protest stating in full details the reason why it is being paid under
IV. SCOPE AND LIMITATION protest and that he/she, while paying the monetary obligation, is reserving the right to object to
the billing invoice / assessment of the same.
Payment under protest shall be allowed only on the following instances:
Settled Claim - claims can be determined or readily determinable from vouchers, invoices and
1. Request for clarification with the Accounting Department and/or Revenue-Generating Depart-
such other papers within reach of accounting officers. It may also mean that the claim no longer
ments/Offices regarding the billing invoices/assessments which shall be replied within forty-
five (45) working days upon receipt by SBMA of the company’s written protest; presents a justiciable clarification as to SBMA.

2. Clients who intend to avail of legal remedies in clarifying the propriety or legality of his/her Office of the Deputy Administrator for Finance (ODAF) – office which will handle and monitor
company’s billing invoices/assessments; and the Payment under Protest referred to the concerned end-user department.

3. Billing invoices/assessments that are the subject or in connection with the case filed before a
tribunal, quasi-judicial or judicial body by the client.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

VI. GUIDELINES AND PROCEDURES 6.5 ODAF shall control and monitor all payments received under protest in the Cumulative Sum-
mary of Payment Under Protest Report. The ODAF shall provide the total amount of payments
6.1. The Letter of Protest shall be entertained only when the client first pays its billed/assessed
monetary obligation. The SBMA Official Receipts shall be stamped with “Paid Under Protest” under protest to Treasury Department in order to include said amount as funds held in trust in
and a notice from the Treasury Department shall be given, stating that the client must file a Let- the Daily Status of Bank Deposits.
ter of Protest with the ODAF within five (5) working days from the date of payment. Otherwise,
for failure to file a Letter of Protest within the said period SBMA shall consider the billing/ 6.6 In the event that the protest is declared by SBMA or by this policy as settled claim (e.g. the
assessment as settled claim and the Payment Under Protest (PUP) shall be cancelled. client failed to file the necessary letter of protest within the prescribed period or avail other reme-
dies allowed by law or the end-user has clarified the billing invoice/assessment is in order), the
6.1.1. Upon receipt of the written protest, the ODAF, within five (5) working days, shall:
payment made shall be applied, with finality, in the client’s monetary obligation. The ODAF,
a. Record the details of the protest and issue an acknowledgement letter to the client, inform- within ten (10) working days from receipt of the end-user department’s letter reply, shall inform
ing them that the protest shall be referred to the end-user department for appropriate action. the client that the payment made under protest shall be applied in its monetary obligation without
prejudice of the client in availing other legal remedies allowed by law.
b. Endorse the written protest and advise the identified end-user department to respond to the
client not later than thirty (30) calendar days providing explanation and/or basis of the 6.7 In the event that the protest is finally clarified/settled in favor of the client, the ODAF within
billings made.
ten (10) working days from receipt of the end-user department’s letter reply, shall inform the
Note: In case the client failed to signify protest at the time of payment, the Official Receipt shall client that the payment made under protest may be refunded, interest-free. The client, however,
no longer be stamped “Paid Under Protest”. Instead, the client may submit a written protest must submit a written request for refund to the ODAF within ten (10) calendar days from client’s
to ODAF. receipt of said ODAF’s letter. Without said request, SBMA shall apply the amount paid, interest-
free, as payment credit against the client’s existing or future monetary obligation.
6.2 In case the protest seeks clarification on the disputed billing invoice/assessment issued to
the client, the end-user department shall answer the letter of protest within thirty (30) calendar CONFIDENTIALITY
days from receipt of the said protest from ODAF.
Any information acquired or held in the course of this policy shall be treated with utmost confi-
In case there is a need for further action from the end-user department such as but not limited to
reconciliation of documents with billing invoices/assessment, the end-user department shall dentiality.
inform the client to submit, within five (5) working days, to them additional documents for proper
validation. Upon receipt of all necessary documents for reconciliation, the end-user department SEPARABILITY CLAUSE
shall have additional thirty (30) calendar days to issue a final letter of clarification to the client.
Should any provision of this Policy or any part thereof be declared invalid, the other provisions,
The letter of clarification issued by the end-user department to the client shall be copy furnished insofar as they are separable from the invalid ones, shall remain in full force and effect.
to the ODAF.
REPEALING CLAUSE
6.3 In case the protest is a question on the propriety or legality of the billed/assessed
monetary obligation, once the ODAF receives the letter of protest, the SBMA shall inform in All policies, resolutions, orders, issuances, rules and regulations or parts thereof inconsistent
writing that the client has one hundred eighty (180) calendar days from payment to avail of other
with this Policy are hereby repealed or modified accordingly.
remedies allowed by law. For the meantime, the SBMA shall recognize the protest for a period
of one hundred eighty (180) calendar days from payment.
AMENDMENTS
In case the client avails other remedies before the expiration of the one hundred eight (180)
calendar days, the client must submit again a Letter of Protest with the ODAF stating therein the Any revision to the Policy shall be subject to SBMA Board Approval.
remedy it availed and attaching thereon documents relative thereto.

6.4 In case the Letter of Protest is filed in relation to a case pending before a tribunal, EFFECTIVITY
quasi-judicial or judicial body, the Payment Under Protest shall be recognized by SBMA during
the pendency of the case until such time that the case has become final and executory. This will be effective immediately upon approval of the SBMA Board of Directors.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

B. ACCOUNTING DEPARTMENT
3. An aging of said collection shall be made at the beginning of each year. All Unidentified
Collections aged 12 months and above shall be treated as Income and recorded through
3. POLICY ON AND OPERATING GUIDELINES IN HANDLING UNIDENTIFIED COLLEC-
Journal Entry Vouchers (JEV) as follows:
TIONS
Cash in Bank xxx
BACKGROUND:
Prior Year’s Income xxx
The Subic Bay Metropolitan Authority (SBMA) accepts payments for lease rental, port fees,
regulatory fees, permits, and other services from Locators and Residents through telegraphic
4. A record/ inventory of all Unidentified Collections that were adjusted against Prior Year’s
transfer and direct deposits to SBMA Bank accounts that ate directly credited to the said ac-
Income shall be maintained by the Treasury Department for proper identification in case of
counts. The depository banks provide the Treasury Department with the corresponding credit
subsequent claim by a Locator or Resident.
advice (Annex A) and/or the deposit slip (Annex B). Said telegraphic transfers and direct depos-
its are then issued official receipts (OR) thereby being recorded in the books.
5. When after the recording of 12 months aged Unidentified Collections as Prior Year’s In-
come and a Locator or Resident subsequently claims payment and presents valid deposit
While SBMA have requested the depository banks to require the details as to Payor/ Customer
slips as proof of payment for their accounts, the Treasury Department shall validate the
name and billing invoice/ assessment number being paid, there are many instances that the
payor’s claim against their records.
deposits do not have clear identification, hence cannot be issued with the corresponding ORs.
Pending the Treasury Department’s identification and information with regards to the payor, the
6. When found to be valid, a memorandum to the Accounting Department shall be prepared
nature and for what the payment was made for, these payments made by the Locators and Res-
by the Treasury Department for the reversal of the entry that was previously made for the
idents through telegraphic transfers and direct deposits to SBMA’s bank accounts are treated as
reason that the particular Unidentified Collection was identified. The entry shall be as fol-
unidentified collections.
lows:
Unidentified collections are not issued with official receipt and thus, are not recorded in the
Prior Year’s Income xxx
SBMA books. Accordingly, these unidentified collections are reflected as reconciling items be-
tween the Cash balance per SBMA books and the Cash balance per Bank statement until such
Cash in Bank xxx
time when these collections are identified and the appropriate official receipts have been issued
by the Treasury Department to concern payor.
7. Accordingly, the Official Receipt shall be issued by the Treasury Department to the payor
for the payment being claimed with the following entry:
In the 2014 Annual Audit Report, the Commission on Audit (COA) issued an Audit Observation
Memorandum (AOM) concerning Unidentified Collection. The COA gave the recommendation of
Cash in Bank xxx
recording the Unidentified Collection at the period when the collection was actually received and
not to wait until the time when the official receipt was issued. Therefore, the policy for the record-
Accounts Receivable/ Income xxx
ing of the Unidentified Collections is hereby proposed as follows:

1. Unidentified collections as of December 31 of each year shall be recorded by the Account-


ing Department in the SBMA books under a suspense liability account in the same period
when the collection was actually received. The entry shall be as follows:

Cash in Bank xxx

Unidentified Collection xxx

2. At the beginning of the following year, the entry made to record the unidentified collection
shall be reversed to close the suspense account that was established just for the purpose
of recording the actual collection for the particular year. The entry will be as follows:

Unidentified Collection xxx

Cash in Bank xxx


FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

SALARY DEDUCTION OF PERSONAL CHARGES


4. POLICY IN SETTING UP OF ALLOWANCE FOR DOUBTFUL ACCOUNTS
SBMA ensures to pay the communications and power charges on due dates to avoid for late
payment. These charges, however include amounts in excess of the privilege being provided to RATIONALE
SBMA employees which should be for their personal account.
This proposed policy on Allowance for Doubtful Account is based on the Statement of
On the other hand, there are some services such as Housing Maintenance and Repairs, Medical Financial Accounting Standard (SFAS) No. 3 which states that “receivable balances should be
valued at their face amounts minus, if appropriate, allowance set up for doubtful accounts and
Services and other special services rendered by SBMA on personal account of employees.
for any anticipated adjustments which, in the normal course of events, will reduce the amount of
receivable from the debtors to estimated realizable values”.
The existing practice is that said charges are being billed by Accounting Department and then
paid by the employees to the Treasury Department. However, it was found that some employ-
OBJECTIVES
ees.
1. To set up a policy in determining accounts to be included in the allowance for doubtful ac-
The existing practice is that said personal charges are being billed by Accounting and then paid counts as well as policy in handling them.
by the employees to the Treasury Department. However, it was found that some employees
have not paid their bills on due dates and these add up to SBMA’s Past Due Receivable Ac- 2. To properly present the realizable value of accounts receivable in the financial statements.
counts, which is the subject of Audit Observation Memorandum (AOM) No. 2012-002(2011) of
the Commission on Audit (COA) as this is equivalent to granting cash advances on top of the SCOPE AND LIMITATION
privileges.
This Policy shall cover customers with past due accounts.
In compliance to said AOM and in view of the cash constraint of the Agency as well as with the
increasing receivables (Due from SBMA Officials and Employees), the following procedure shall
be implemented: PROPOSED RATES

1. The Land and Asset Management Department (LAMD) shall issue billing assessment to Age of Accounts Receivable Percentage of Allowance
the concerned officials/employees for power consumptions in excess of the prescribed
1-30 days 0%
P5,000 per month.
31-60 days 5%
2. For telephone and mobile charges in excess of the prescribed allowable limit provided 61-90 days 10%
under the telephone and mobile spending guidelines, the Transportation & Communica-
tions Department (TCD) shall issue billing assessment to the concerned officials/ 91-120 days 15%
employees. 121-150 days 20%

3. The departments providing other services for personal accounts shall issue billing assess- 151-180 days 30%
ment to the concerned employees. 181 days to 1 year 40%

4. The prescribed due date of the billing assessments shall be on the 27th day of the month Over 1 year to 2 years 50%
in order to give concerned billing departments time to process the endorsement of unpaid Over 2 years to 3 years 65%
assessments.
Over 3 years to 4 years 80%
5. All unpaid billing assessments shall be endorsed to the Accounting Department on or be- Over 5 years 100%
fore the 2nd day of the following month to effect the salary deduction in full or to the extent
allowable leaving the mandatory P3,000 net pay of the employee. WHEN TO PROVIDE

6. With regards to the unpaid balances on power consumption, the Accounting Department Allowance based on the foregoing policy will be set up on a monthly basis
shall initiate the deduction immediately in the coming month’s payroll.
EFFECTIVITY DATE
In this regard, all concerned departments are hereby authorized to incorporate the above guide-
lines/procedures to effect the automatic salary deductions in order to recapture said cash ad- May 22, 2014
vances.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

C. FINANCIAL PLANNING AND BUDGET DEPARTMENT 15. Housing Committee- 24 times a year

1. GUIDELINES ON FOOD PROVISION DURING VARIOUS COMMITTEE MEETINGS 16. Incident Management Team – (IMT) – 24 times a year

RATIONALE 17. Inter-color Tournament & Mini Olympics Committee – 24 times a year

These proposed guidelines on food provision during committee meetings are being established 18. Labor Management Council (LMC) – 24 times a year
to authorize the meal charges that cannot be avoided during various committee meetings.
19. Management Committee (MANCOM) – 24 times a year
OBJECTIVES
20. Outsourcing Committee – 36 times a year
1. To standardize the allowable amount of food provision
21. Performance Management Group – 36 times a year
2. To set guidelines in charging meals to SBMA account
22. Personnel Development Committee – 24 times a year
SCOPE AND LIMITATION
23. Programs on Awards and Incentives for Excellence (PRAISE) Committee – 12 times a
Meals may be charged in case of attendance to the following committees of SBMA but not to year
exceed the maximum number of meetings per year.
24. Records Management Improvement Committee – 24 times a year
1. Accounts Evaluation Committee – 100 times a year
25. Solid waste Management Committee – 12 times a year
2. Anniversary Committee – 24 times a year
26. Southeast Asian (SEA) Games Committee – 36 times a year
3. Bids and Awards Committee (BAC) for Goods and Services – 100 times a year
27. SBMA Disaster Risk Reduction and Management Committee (SDRRMC) – 24 times a
4. Bids and Awards Committee (BAC) for Infrastructure – 50 times a year year

5. Bids and Awards Committee (BAC) for Consultancy – 50 times a year 28. SBMA Project Management Office –NGDC – 3 – 24 times a year

6. Capital Expenditure Committee (CAPEX) – 24 times a year 29. Year End Thanksgiving Committee – 24 times a year

7. Change Management Team (CMT) – 36 times a year In case of additional Committee, a maximum of 24 meetings per year will be allowed subject to
the submission of Office Order creating the new committee.
8. Committee on Decorum and Investigation (CODI) – 24 times a year
In case a Committee exceeds the maximum number of prescribed meetings per year, an ap-
9. Council of Coordinators for Human Resource Related Matters (CCHRRM) – 24 times a proval from the Chairman and Administrator is required for meals to be charged during the ex-
year cess meeting(s).

10.Cruise Ship Committee – 100 times a year ALLOWABLE AMOUNT OF FOOD PROVISION

11.Disciplinary Action Committee (DAC) – 24 times a year Snack am - P 125.00

12.Enterprise Resource Planning System (ERPS) Committee – 24 times a year Lunch/dinner - 250.00

13.Freedom of Information Central Appeals and Review Committee – 24 times a year Snack pm - 125.00

14.Gender and Development (GAD) Committee -24 times a year


FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Allowable food provision in case of three-hour meeting: Allowable food provision in case of six-hour meeting:
No. of Hours Start of End of Maximum No. of Hours Start of End of Maximum
Allowed Meal Allowed Meal
of Meeting Meeting Meeting Amount
of Meeting Meeting Meeting Amount
3 hours 8:00 AM 11:00 AM snack P 125.00
6 hours 8:00 AM 14:00 PM snack and lunch 375.00
3 hours 9:00 AM 12:00 AM snack 125.00
6 hours 9:00 AM 15:00 PM lunch 250.00
3 hours 10:00 AM 13:00 AM lunch 250.00
6 hours 10:00 AM 16:00 PM lunch and snack 375.00
3 hours 11:00 AM 14:00 PM lunch 250.00
6 hours 11:00 AM 17:00 PM lunch and snack 375.00
3 hours 12:00 PM 15:00 PM lunch 250.00
6 hours 12:00 NN 18:00 PM lunch and snack 375.00
3 hours 13:00 PM 16:00 PM snack 125.00
6 hours 13:00 PM 19:00 PM snack 125.00
3 hours 14:00 PM 17:00 PM snack 125.00
6 hours 14:00 PM 20:00 PM snack and dinner 375.00
3 hours 15:00 PM 18:00 PM snack 125.00
3 hours 16:00 PM 19:00 PM snack 125.00 6 hours 15:00 PM 21:00 PM snack and dinner 375.00
3 hours 17:00 PM 20:00 PM dinner 250.00
Allowable food provision in case of four-hour meeting: Allowable food provision in case of seven-hour meeting:

No. of Hours Start of End of Maximum


No. of Hours Start of End of Maximum Allowed Meal
Allowed Meal of Meeting Meeting Meeting Amount
of Meeting Meeting Meeting Amount
7 hours 8:00 AM 15:00 PM snack and lunch 375.00
4 hours 8:00 AM 12:00PM snack 125.00
7 hours 9:00 AM 16:00 PM lunch and snack 375.00
4 hours 9:00 AM 13:00 PM lunch 250.00
7 hours 10:00 AM 17:00 PM lunch and snack 375.00
4 hours 10:00 AM 14:00 PM lunch 250.00
4 hours 11:00 AM 15:00 PM lunch 250.00 7 hours 11:00 AM 18:00 PM lunch and snack 375.00
4 hours 12:00 NN 16:00 PM lunch 250.00 7 hours 12:00 NN 19:00 PM lunch and snack 375.00
4 hours 13:00 PM 17:00 PM snack 125.00 7 hours 13:00 PM 20:00 PM snack and dinner 375.00
4 hours 14:00 PM 18:00 PM snack 125.00 7 hours 14:00 PM 21:00 PM snack and dinner 375.00
4 hours 15:00 PM 19:00 PM snack 125.00
4 hours 16:00 PM 20:00 PM dinner 250.00 Allowable food provision in case of eight-hour meeting:
4 hours 13:00 PM 21:00 PM dinner 250.00 No. of Hours Start of End of Maximum
Allowed Meal
of Meeting Meeting Meeting Amount
Allowable food provision in case of six-hour meeting: 8 hours 8:00 AM 16:00 PM snack, lunch and snack 500.00
8 hours 9:00 AM 17:00 PM lunch and snack 375.00
No. of Hours Start of End of Maximum
Allowed Meal 8 hours 10:00 AM 18:00 PM lunch and snack 375.00
of Meeting Meeting Meeting Amount
6 hours 8:00 AM 14:00 PM snack and lunch 375.00 8 hours 11:00 AM 19:00 PM lunch and snack 375.00
6 hours 9:00 AM 15:00 PM lunch 250.00 8 hours 12:00 NN 20:00 PM lunch and snack 375.00
6 hours 10:00 AM 16:00 PM lunch and snack 375.00 8 hours 13:00 PM 21:00 PM snack and dinner 375.00
6 hours 11:00 AM 17:00 PM lunch and snack 375.00
6 hours 12:00 NN 18:00 PM lunch and snack 375.00
6 hours 13:00 PM 19:00 PM snack 125.00
6 hours 14:00 PM 20:00 PM snack and dinner 375.00
6 hours 15:00 PM 21:00 PM snack and dinner 375.00
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Allowable food provision in case of nine-hour meeting: DOCUMENTARY REQUIREMENTS IN CASE OF AUTHORITY FOR CHARGEABLE EX-
PENSES (ACE) (allowed only for amount below P50,000.00)
No. of Hours Start of End of Maximum
Allowed Meal
of Meeting Meeting Meeting Amount 1. Duly approved ACE Form with BUR
9 hours 8:00 AM 17:00 PM snack, lunch and snack 500.00
2. Copy of invitation for a meeting. Invitation can be done through email or memorandum
9 hours 9:00 AM 18:00 PM lunch and snack 375.00
9 hours 10:00 AM 19:00 PM lunch and snack 375.00 3. Three (3) Canvasses
9 hours 11:00 AM 20:00 PM lunch and snack 375.00
9 hours 12:00 NN 21:00 PM lunch and snack 375.00 4. Abstract of Canvass

5. Minutes of meeting
In no case shall the total food provision exceed P500.00 per day per person. Every two years,
this policy will be reviewed to determine reasonableness of rates and new rates will be recom- 6. Attendance Sheet - number of attendees should at least be equal to the number of packs
mended if existing rates are no longer reasonable. ordered

DOCUMENTARY REQUIREMENTS IN CASE OF NORMAL PROCUREMENT PROCESS 7. Certificate of Completion from end-user (for completion of delivery of order from supplier)

1. Purchase Request 8. Billing Statement


2. Philgeps on Request in case of procurement of P50,000.00 and above
3. Canvasses
4. Abstract of Canvass DOCUMENTARY REQUIREMENTS IN CASE OF REIMBURSEMENT (allowed only for
amount below P50,000.00) Note: Because all meetings are planned or scheduled ahead of
5. Minutes of Negotiation time, this option is applicable only on unforeseen/unplanned/immediate in nature.
6. Purchase Evaluation
1. BUR
7. Philgeps on Award in case of procurement of P50,000.00 and above
8. Notice of Award 2. Copy of invitation for a meeting. Invitation can be done through email or memorandum

9. Notice to Proceed 3. Three (3) Canvasses


10.Purchase Order or Contract
4. Abstract of Canvass
11.Budget Utilization Request (BUR)
12.Attendance - number of attendance should at least be equal to the number of packs or- 5. Approval of SBMA Administrator on urgency of meeting
dered
6. Minutes of meeting
13.Copy of invitation for a meeting. Invitation can be done through email or memorandum.
14.Minutes of Meeting 7. Attendance Sheet - number of attendees should at least be equal to the number of packs
ordered
15.Certificate of Completion from end-user (for completion of delivery of order from supplier)
16.Transmittal Letter of Procurement and Property Management Department (PPMD) to Com- 8. Certificate of Completion from end-user (for completion of delivery of order from supplier)
mission on Audit (COA)
9. Official Receipt under the name of SBMA or personnel requesting reimbursement
17. Billing Statement

SBMA TIN No. 002-456-464-000


FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

2. GUIDELINES ON EXPENSES DETAILED DESCRIPTION

RATIONALE PERSONAL SERVICES (PS)

This guideline is created primarily to enlighten SBMA employees, Members of the Board and This classification shall include all manpower and personnel benefit costs which may include
stakeholders of SBMA of various expenses classification as well as the basic requirements but not limited to salary, salary increases, step increment, incentive and service fees, commu-
and limitations of each expense for proper recording and easy processing of payment in case tation of vacation and sick leaves, retirement and life insurance premiums, compensation
of availment. insurance premiums, health insurance premiums, Home Development Mutual Fund (HDMF)
contributions, hospitalization and medical benefits, scholarship and educational benefits, all
OBJECTIVES kinds of allowances, whether commutable or reimbursable, in cash or in kind, and other per-
sonnel benefits and privileges authorized by law, including the payment of retirement gratui-
1. To set up guidelines that will allow familiarization of various expense accounts by employ- ties, separation pay and terminal leave benefits of employees under the following plantilla
ees, Members of the Board and stakeholders of SBMA. employment status as approved by the Department of Budget and Management (DBM):

2. To summarize all the requirements and limitation of each expense for easy processing of a. Permanent - issued to a person who meets all the minimum qualification requirements of
payment and proper recording purposes. the positions to which he is being appointed, including the appropriate eligibility prescribed,
in accordance with the provisions of law, rules, standards promulgated in pursuance there-
There are Four Major Classifications of Expenses of.

A. Personal Services (PS) b. Casual - issued only for essential and necessary services where there are not enough regu-
lar staff to meet the demands of the service.
Refers to salaries, wages, other compensation (e.g., allowances of permanent, temporary,
contractual and casual employees of the SBMA) and personnel benefits costs shall include c. Government Contractual - issued to a person who shall undertake a specific work or job for
salary increases, step increment, incentive and service fees, commutation of vacation and sick a limited period not to exceed one year. The appointing authority shall indicate the inclusive
leaves, retirement and life insurance premiums, compensation insurance premiums, health period covered by the appointment for purposes of crediting services.
insurance premiums, HDMF contributions, hospitalization and medical benefits, scholarship
and educational benefits, all kinds of allowances, whether commutable or reimbursable, in d. Co-terminus - issued to a person whose entrance and continuity in the service is based on
cash or in kind, and other personnel benefits and privileges authorized by law, including the the trust and confidence of the appointing authority or of the head of the organizational unit
payment of retirement gratuities, separation pay and terminal leave benefits. where assigned; or co-existent with the incumbent; or limited by the duration of the project;
or co-existent with the period for which an agency or office was created.
B. Maintenance and Other Operating Expenses (MOOE)
Any addition or deletion in the foregoing employment classification will have to be approved by
All expenses of the corporation resulting from the conduct of operation other than Personal the DBM.
Services (PS).

C. Financial expenses (FE)


Maintenance and Other Operating Expenses (MOOE)
Refers to Debt Service payment of the organization such as interest expenses, commitment
fees charges. 1. Local Travel Allowance Budget Form -302

D. Capital Expenditures (CAPEX) Officials and employees of the government may be allowed for local travel allowance or reim-
bursement of travelling and related expenses incurred in the course of official travel.
Refers to the infrastructure and non-infrastructure projects of the corporation such as con-
struction of roads, ports, hospitals, irrigation facilities and other similar physical structures and Executive Order (EO) 77 (s.2019) amending Executive Order 298 (S.2004), EO 248 and 248-
facilities funded from corporate funds, borrowing or subsidy/equity from the national govern- A (S 1995) provides the following standard rates for local travel allowance with overnight stay.
ment. It also includes transportation equipment (motor vehicles, watercrafts and other related
equipment), office equipment, furniture and fixtures, hand tools, medical equipment, security
equipment, communication equipment, machineries, information technology equipment and
other related equipment needed in the performance of line functions intended for administra-
tive and support activities.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Comparative Amount for Local Travel Travel Beyond 50 KM Radius

Travel Beyond and Within 50 KM Radius 2. Daily Travel Expense (DTE) without supporting invoices and Official Receipt

EO 298 EO77

1. Transportation Expense Cluster 1 = P1,500.00


Php800.00 per day
per day
Particulars EO 298 EO77 Cluster 2 = P1,800.00
per day
Cluster 3 = P2,200.00
Public Utility Vehicle / /
per day
Government Vehicle X X
Private Vehicle Equivalent PUV Fare Equivalent PUV Fare
Travel Beyond 50 KM Radius

Travel Beyond 50 KM Radius 3. Application on Daily Travel Expense (DTE) Rate where travel is covered by minimum two (2) days

2. Daily Travel Expense (DTE) without supporting invoices and Official Receipt EXECUTIVE ORDER 298

PARTICULARS HOTEL/ LODGING MEALS INCIDENTAL TOTAL


EO 298 EO77
First Day
Arrival not later than 12:00
Cluster 1 = P1,500.00 50% 30% 20% 100%
Php800.00 per day noon
per day
Arrival after than 12:00
Cluster 2 = P1,800.00 50% 10% 20% 80%
noon
per day
Cluster 3 = P2,200.00 Succeeding Day 50% 30% 20% 100%
per day Last Day
Departure before 12:00
0% 10% 20% 30%
noon
Departure at 12:00 noon
0% 20% 20% 40%
Comparative Amount for Local Travel and Later

Proposed Policy per EXECUTIVE ORDER 77


Travel Beyond and Within 50 KM Radius
PARTICULARS HOTEL/ LODGING MEALS INCIDENTAL TOTAL
First Day
Arrival on destination
50% 30% 20% 100%
1. Transportation Expense regardless of time
Succeeding Day 50% 30% 20% 100%

Particulars EO 298 EO77 Last Day


Departure on destination
0% 30% 20% 50%
regardless of time
Public Utility Vehicle / /
Government Vehicle X X
4. Application on Daily Travel Expense (DTE) Rate where travel is covered by a day
Private Vehicle Equivalent PUV Fare Equivalent PUV Fare
EXECUTIVE ORDER 298

PARTICULARS HOTEL/ LODGING MEALS INCIDENTAL TOTAL


Travel Beyond 50 KM Radius First Day
Arrival not later than
2. Daily Travel Expense (DTE) without supporting invoices and Official Receipt 8:00AM and Departure 0% 10% 20% 30%
before 12 noon
Arrival not later than
EO 298 EO77 8:00AM and Departure 0% 20% 20% 40%
after 12 noon
Cluster 1 = P1,500.00 Arrival after 8:00AM and
Php800.00 per day 0% 10% 20% 30%
per day Departure before 12 noon
Arrival after 8:00AM and
0% 10% 20% 30%
Departure after 12 noon
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Travel Within 50 KM Radius Computation of Foreign travel allowance is based on the Daily Subsistence Allowance (DSA)
as provided under the United Nations Development Program Index which can be secured from
1. Daily Travel Expenses (DTE) Rate and supported with invoices and official receipts : the Department of Foreign Affairs (DFA). The DSA shall be based on the daily rates estab-
lished by the International Civil Service Commission (ICSC) of the United Nations which may
Executive Order 298
be accessed at www.undp.org.ph or at www.dfa.gov.ph of the Department of Foreign Affairs
* Shall not exceed Php400.00 per day- which covers actual fare, cost of meals and incidental expenses
(DFA). The apportionment as to hotel expenses, meals and incidental expenses depends on
Executive Order 77 the country of destination.
* Actual fare at prevailing rates of authorized modes of transportation; and accommodation and meals
may be authorized provided it should not exceed the allocated rate provided under Section 5 (b) Memorandum Circular No. 35 (Clarifying and Reinforcing Existing Rules and Regulations on
Transportation expenses such as toll fees, parking fees and public transportation fees shall be Foreign Travel Authorities, Travel Entitlements, and Travel Tax Exemptions, Which Require
allowed in going to and from the place of official travel destination during meetings/training, on the Approval of the Office of the President) dated November 22, 2017, which provides, among
reimbursable basis, subject to presentation of Official Receipts. others, that no official travel abroad shall be allowed unless it satisfies all of the following mini-
mum criteria: (a) the purpose of the trip is strictly within the mandate of the requesting govern-
Payment of claims for reimbursement of travelling and related expenses incurred in the course ment official or personnel; (b) the projected expenses for the trip are not excessive; and (c) the
of official travel, which are in excess of the authorized rates, may be allowed when certified by trip is expected to bring substantial benefit to the country.
the Chairman & Administrator as absolutely necessary in the performance of an assignment,
and supported by at least three (3) canvasses prior to departure, official receipt and allotment There are two steps in processing payment for foreign travel allowance:
availability.
b. Cash advance and liquidation of cash advance
Documentary Requirements in case of Local Travel
• Payment initially through cash advance. The following are the documentary requirements
1. Duly Approved Authorization for Travel in case of cash advance for foreign travel:
2. Itinerary of Travel
3. Certificate of Appearance Invitation for the trip
4. Certificate of Travel Completed Duly Approved Authorization for Foreign Travel
5. Trip Ticket, in case of reimbursement of toll fees
Itinerary of Travel
To request for budget inclusion, Budget Form 302 shall be filled up and submitted to Human DSA Rate which shall be computed by the Accounting Department
Resource Management Department (HRMD) on or before the required due date of submission
of the Project Procurement Management Plan (PPMP) and may include the following: Office Order
a. Training related – these are travel expenses related to external trainings/conferences/ Duly Accomplished Cash Advance Form
seminars for a maximum of five (5) days per training/conference/seminar per employee.
Trip Ticket in case SBMA will shoulder the plane ticket
b. Operations related – these are travel expenses related to attendance of various official
meetings and site visits.

c. Teambuilding/ Cascading activity - these are travel expenses related to departmental team- • Liquidation of cash advance. The following are the documentary requirements in case of
liquidation of cash advance used for foreign travel:
building/cascading activity. Please refer to Accounting Department memo dated March 10,
2017 regarding Financial Guidelines on said activity and Human Resource Management
Department memo dated February 14, 2018 on Revised Guidelines. Certificate of Appearance

1. Foreign Travel Allowance


Certificate of Travel Completed
Boarding Pass
Normally, no allocation is provided per department. The FPBD shall however provide for a
lump-sum allotment under the Special Operation for Additional Revenues (SOAR) Project to Narrative Report on Trip Undertaken
provide for travel expenses that are focused on generating additional revenues. The charging
of expenses to SOAR shall be subject to the approval of the Chairman and Administration Revised Itinerary of Travel, if needed
upon the recommendation of the Strategic Business Unit (SBU) Heads.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

c. Reimbursement of Foreign Travel Expenses Guidelines on Mobile Phone/Subscription Plan


• Memorandum requesting for reimbursement foreign travel expenses The mobile phone/ subscription plan shall be dependent on the availability of fund allocated for
the communication expenses of the requesting department. Entitlement to mobile phone shall
• Invitation for the trip terminate the use of existing PIN NDD-Access to limit Communication Expenses.
• Duly Approved Authorization for Foreign Travel Request for exemption, to increase the existing subscription plan or the proposed spending limit
• Itinerary of Travel shall be pre-approved by the Board of Directors with prior approval of the SBU Head and the
Administrator, thru the DA for Finance.
• DSA Rate which shall be computed by the Accounting Department Request to avail new mobile phone subscription shall be approved by the SBU Head subject to
• Office Order necessity and availability of fund of said department as certified by FPBD.

• Trip Ticket in case SBMA will shoulder the plane ticket Mobile phone assignees are entitled to consume up to the extent of allocated spending limit for
the following basic services:
• Certificate of Appearance
• Voice Call Services
• Certificate of Travel Completed
 Mobile to Mobile
• Boarding Pass
 Mobile to Landline
• Narrative Report on Trip Undertaken  NDD access for Domestic Long Distance
• Revised Itinerary of Travel, if needed • Short Message Services
To request for budget inclusion, Budget Form 302/302A must be accomplished and submitted to Text to all Service Provider Networks
the Financial Planning and Budget Department on or before the required due date of submission
of the Project Procurement Management Plan (PPMP). In the event that the assignee is separated from employment, the concerned immediate superior
shall take on the responsibility of retrieving the unit and to internally redeploy the account to the
person who shall assume the vacated position. This is to continue the subscription for the re-
2. Communication Expenses Budget Form -303 mainder of the contract and to avoid penalty as levied by the Service Provider. Also, PIN ac-
count of said person shall be deactivated in lieu of the mobile phone.
The following are the regular communication expenses of SBMA:
The following shall be considered personal and shall be billed to and paid by the assignee:
 Landline/Leased lines – the Telecoms Department normally evaluates the request for addi-
tional line and its evaluation is limited only to the following technical matters: • Usage in excess of approved spending limit
• Costs incurred for Enhanced Services enjoyed exclusive of the consumable basic services.
• Digital Phone – no extension is allowed
• Analog Phone – maximum of two (2) extensions are allowed • Costs incurred for IDD access for International Long Distance and International Roaming
except when the assignee and the party/official being called is on Official foreign travel.
• Availability of line circuits in the area
• Usage during prolonged leave of absence (above 10 working days). The official who au-
b. Mobile phone services – the following are the officials and employees who are qualified to thorized the leave shall notify Telecoms Department for the computation of the charges.
utilize mobile phone for official use and the corresponding allowed spending limit per month:
(effective August 2016) With regards to issuance of Billing Assessment for personal charges, the following timeline
should be observed:
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Reimbursement of Certified Official Usage may be allowed when the assignee certifies that the 4. Repairs and Maintenance – Government Vehicles Budget Form -305
excess is for official business. Claims for reimbursement shall be accompanied with a list that
accounts the name, company, contact number and official designation of the party called. The This account includes the cost for minor repairs only of SBMA vehicles (including watercrafts)
claim for reimbursement shall be endorsed by concerned Department Head for approval of their such as services, spare parts and materials. Observe restrictions based on COA Circular 2012-
respective SBU Head, chargeable against savings from the department’s operation. Approving 003, section 4.0 (Annex C) unnecessary expenditures and section 5.0 (Annex D) as excessive
authority is as follows: expenditures.
Repair works shall be requested to the Construction and Maintenance Department for validation
and endorsement for budgeting purposes. Fill up Budget Form – 305 for details and submit it to
the Construction and Maintenance Department for evaluation, consolidation and scheduling by
year.

5. Supplies and materials Budget Form - 307

As for the handsets, the assignee is expected to take proper care and maintenance of the unit. This account includes the cost of all expendable commodities acquired or ordered for immediate
Repair costs of damaged handsets and sim card for defects from abuse or misuse not covered use in connection with SBMA operations. This account also includes batteries and tires.
by warranty shall be shouldered by the assignee as determined by Telecom Department.
It includes also the cost of all semi-expendable items/equipment which amount is less than
As for lost/stolen handsets, the following procedures shall be observed: P15,000.00. These tangible items shall be recognized as expenses upon issue to the end-user.
Please refer to Department of Budget and Management (DBM) Circular Letter 2016-7 (s. July
• The assignee shall notify first the Telecom Department for temporary deactivation of line. 2016).

• The assignee to prepare Incident Report to be endorsed to LED for investigation. Fill up Budget Form – 307 for details and submit it to the Financial Planning and Budget Depart-
ment for consolidation prior to sending to PPMD for evaluation and review.
• Assignee to request relief of accountability to the Administrator and CEO. The Administrator
and CEO shall endorse the request for relief of accountability to COA.
6. Rents Budget Form - 308
• As for the handsets under expired subscription of Service Provider, the assignee shall en- This account includes the cost for booth/space rental, copying machine charges and rental of
dorse the unit to Telecom Department for inspection. The latter shall turn over the non- equipment.
serviceable units to Procurement and Property Management Department for proper dispos-
al. Mobile phone is advantageous for mobility of transactions however the assignee is en- Normally, the FPBD does the allocation based on the equipment/property being leased. In case
couraged to maximize the use of landline and Internet services. there is a need for additional budget, Budget Form - 308 must be accomplished and send to
FPBD.
c. Postal/Courier Services – This account all expenses for mailing letters and documents within
or outside the Subic Bay Freeport Zone. Budget allocation is usually based on trend or utilization
of the budget.
7. Awards and Indemnities Budget Form -311
d. Internet/DSL – This account includes all expenses related to our connectivity to internet.
Budget allocation is usually based on recommendation of the Information Technology Depart- This account includes the cost for Employee of the Quarter, Employee of the Year, Loyalty
ment. Award, Model Contract of Service Personnel (Semestral award), cash gift award for retiree and
other related expenses thereto. Normally, the HRMD does the allocation for this ac-
count.
3. Repairs and Maintenance – Building and Facilities Budget Form -304 Fill up Budget Form – 311 for details and submit it to the Financial Planning and Budget Depart-
ment for consolidation prior to sending to PPMD for evaluation and review.
This account includes the cost for minor repairs only of SBMA buildings and facilities such as
public buildings, housing units, roads, bridges, utility systems, seaports, wharves, parks and
other public facilities.
8. Power/Water Budget Form -314
Work programs should have the appropriate scoping/cost estimates from the Engineering or
Construction and Maintenance Department. This account includes the cost of water and power of all government used facilities. Utilities De-
partment, provides for the estimated amount based on the previous year’s consumption. In case
To request for budget inclusion fill up Budget Form – 304 for project details and submit to the there is a need for additional allocation, Budget Form - 314 must be accomplished and send to
Office of the Deputy Administrator for PWTSG (ODA-PWTSG) for coordination with Engineering FPBD.
Department and Construction and Maintenance Department (CMD) for evaluation, consolidation
and scheduling by year.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

9. Training – Local Budget Form -317 h. Membership in the Integrated Bar of the Philippines;
Human Resources Development and Training Programs should be responsive to the trainings i. Subscription to professional technical journals and informative magazines, library books
needs of personnel and manpower requirements of the agency. It should also include human and materials;
resource development and training program that will promote high morale, efficiency, integrity,
responsiveness, progressiveness, courtesy, nationalism and patriotism. Training programs j. Office equipment and supplies;
should be consistent with the rules and regulations issued by the CSC for the purpose. k. Other similar expenses not supported by the regular budget allocation.
General Provisions were based on National Budget Circular (NBC) No. 563 (S.2016), National Budget Circular FPBD shall provide allocation based on the General Provisions of the General Appropriations
(NBC) No. 442 (S. 1995) and NBC No. 486 (S. 2003). Act every year.
The budget estimates shall cover the following:
SBU/DEPARTMENT per GAA (01/06/2020 2020
REVISED
a. On-site Training. Normally, there is a lump-sum training fund under the Human Resource EXTRAORDINARY MISCELLANEOUS PROPOSAL
Management Department to cover payment of honoraria, meals and accommodation of EXP EXP

facilitators and snacks/lunch of participants, as needed.


CHAIRMAN & ADMINISTRATOR'S GROUP 108,000.00 90,000.00 198,000.00

b. Departmental Training Re-echo- Normally, there is a lump-sum amount being included in Office of the Chairman & Head of the Agency 108,000.00 90,000.00 198,000.00

the budget of the Human Resource Management Department to cover snacks of partici- ADMINISTRATION GROUP 105,600.00 180,000.00 285,600.00
pants in case of re-echo. Office of the SDA for Support Services 60,000.00 90,000.00 150,000.00
Office of the DA for Administration 45,600.00 90,000.00 135,600.00
c. NON- Continuing Professional Development (CPD) training/seminars/conferences shall be
allowed upon approval of the Office of the Senior Deputy Administrator for Support Services LEGAL AFFAIRS GROUP 45,600.00 90,000.00 135,600.00
Office of the DA for Legal Affairs 45,600.00 90,000.00 135,600.00
provided that necessary budget realignment/ amendment/ inclusion are made.
FINANCE GROUP 45,600.00 90,000.00 135,600.00
For Continuing Professional Development (CPD) in compliance with Professional Regulations Office of the DA for Finance 45,600.00 90,000.00 135,600.00
Commission (PRC) requirement for RA 1080 Eligible, there is a maximum of forty (40) hours
CPD Training per person @ P2,000/day. Fill up Budget Form – 317 with the list of personnel that BUSINESS & INVESTMENT GROUP 105,600.00 180,000.00 285,600.00
Office of the SDA for Business & Investment 60,000.00 90,000.00 150,000.00
needs CPD credits and the schedule for attendance/availment of the training, then submit to the Office of the DA for Business Group 45,600.00 90,000.00 135,600.00
Human Resource Management Department for evaluation, consolidation and scheduling by
year. TOURISM GROUP - - -
Tourism Department -
Membership and similar fees paid for personal or individual membership in a private organiza-
tion shall be for the account of the member concerned and shall not be charged to government MUNICIPAL GROUP 45,600.00 90,000.00 135,600.00
ODA for PHSD 45,600.00 90,000.00 135,600.00
funds. On the other hand, institutional membership fees, i.e., agency membership may be
charged to government funds. PUBLIC SERVICES GROUP 45,600.00 90,000.00 135,600.00
Office of the DA for Public Works & Technical Services 45,600.00 90,000.00 135,600.00
d. Normally, no fund is allotted for foreign training. In highly meritorious cases, the expense
shall be chargeable against savings as certified by the Finance Group subject to approval of PORT AUTHORITY GROUP 105,600.00 180,000.00 285,600.00
Office of the SDA for Aviation and Maritime Operations 60,000.00 90,000.00 150,000.00
the Chairman and Administrator upon the recommendation of the SBU Heads. Office of the DA for Port Operations 45,600.00 90,000.00 135,600.00

REGULATORY GROUP - - -
Office of the SDA for Regulatory Group -
10. Extra-ordinary and Miscellaneous Expenses Budget Form -318
TOTAL (EME) 607,200.00 990,000.00 1,597,200.00
Extraordinary and miscellaneous expenses are for reimbursement only and shall include but not
be limited to the following expenses:
a. Meetings, seminars and conferences; 11. Fuel, Oil and Lubricants Budget Form -323

b. Official entertainment; Fuel allocation of the Board will be based on Executive Order No. 24 (s.2011) while fuel alloca-
tion for the management shall be based on the Board approved guidelines, Resolution No. 13-
c. Public relations; 05-4766 (S.2013) as follows:
d. Educational, athletic and cultural activities;
e. Contributions to civic or charitable institutions;
f. Membership in government associations;
g. Membership in national professional organizations duly accredited by the Professional
Regulations Commission;
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

The PPMD handles the allocation and issuance of the fuel/ticket based on the policy. In line
with the policy, departments/offices are required to fill up the form and submit to PPMD since
there are departments/offices that have fuel allocation but do not have a transportation equip-
ment at the moment. Fill up Budget Form – 323.

12. Repairs and Maintenance of Other Equipment Budget Form -329A


This account includes the cost for minor repairs of equipment like air conditioning unit, camera,
etc., such as services, spare parts and materials.
Request for repair works shall be coursed through to the appropriate Expense Account Manag-
er (EAM) for validation and endorsement to FPBD for budgeting purposes. Fill up Budget Form
-329A for details and submit it to the designated EAM for evaluation, consolidation and sched-
uling by year.

13. Consultancy Budget Form -329B

Professional consultancy services include contracts with individual consultant, an expert in a


field of special knowledge or training who is contracted to render particular outputs or services
primarily advisory in nature requiring highly specialized or technical expertise which cannot be
provided by the regular staff of the agency. Such hiring creates no employer-employee rela-
tionship between the individual consultant and the agency. This may covers Office consultant
and Project consultant.
Consultancy services shall be requested to the Chairman’s Office. Fill up Budget Form -329B
for details, indicating whether new or continuation of existing contract, and submit it to the
Chairman’s Office for evaluation and approval.

14. Advertising and Promotional Expenses Budget Form -329C


This account includes those expenses for advertisement. It's important to note that these must
be ordinary and reasonable expenses for advertising. Some examples would be newspaper
advertisements, TV and Radio ads costs (including production costs), and costs for setting up
website. Expenses for promotion activities, like sponsoring local events, special events to bring
people to your business, publicity costs. Costs for meals and entertainment for promotion activ-
ities.
Fill up Budget Form-329C for details and submit it to the Financial Planning and Budget De-
partment together with the details and justification to include in the budget.

15. All Other Services Budget Form -329


Others not availing Transportation Allowance allocations are the following:
This account includes expenses that are not covered by the foregoing expense accounts which
may include but not limited to the following: grants, subsidies, contributions, legal services,
printing expenses, pest control, maintenance services, meals, Gender and Development Ex-
penses, manuals, memberships, expenses on special events, subscriptions, honoraria, cultural
and athletic activities and others.
Section 43 (Cultural and Athletic Activities), GP of the FY 2017 GAA, which provides that an
amount not exceeding PhP1,500 in a year may be used for the purchase of uniform or cos-
tume and other related expenses in the conduct of cultural and athletic activities per employee-
participant.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Fill up Budget Form-329D for details and submit it to the Financial Planning and Budget De- 3. Equipment Outlay Budget Form – 436 and 436A
partment together with the details and justification to include in the budget.
Refers to furniture, fixture, electronics and communication equipment, medical equipment,
other equipment, motor vehicles/heavy equipment, and books whose serviceable life is more
than one year which adds to the assets of the SBMA.
16. Contract of Services Budget Form -329E
This account applies the capitalization threshold of P15,000.00 which represents the minimum
This account includes expenses for the salaries of the Contract of Services personnel. cost of an individual asset recognized as PPE on the Statement of Financial Position. Please
Fill up Budget Form-329E for details and submit it to HRMD together with the details and justifi- refer to DBM Circular Letter No. 2016-7 (s. 2016).
cation to include in the budget.
Capital Expenditures (CAPEX) NATIONAL GOVERNMENT FUNDED PROJECTS
Capital Expenditures are classified into the following categories: In case of Government Funded Projects, SBMA shall submit to the Department of Budget and
1. Infrastructure Management (DBM) proposed projects for the following year as early as the first quarter of the
current year. For 2022 NG Funded Projects, deadline of submission to the DBM is May 11,
1.1 Land and Land Improvements Outlay 2021. Two months prior to the said date, proposed projects shall be submitted to the Financial
Planning and Budget Department for proper presentation to the CAPEX Committee, Finance
1.2 Building and Structures Outlay Committee and Board of Directors and accomplishment of necessary forms before submitting
2. Equipment Outlay to the DBM.

3. Information Technology Equipment All projects recommended by the DBM shall be included in the National Expenditure Program
(NEP) which shall be submitted by the DBM to the House of Representatives. The approval of
The requirement for Capital Expenditures are submitted to the following Expense Account the budget by the House of Representatives will be done during a plenary budget hearing
Managers for evaluation, and scheduling if necessary prior to submission to the Financial Plan- which shall be attended by the Chairman and Administrator.
ning and Budget Department for inclusion in the budget:
Approved budget by the House of Representatives will be submitted to the Senate of the Phil-
Information Technology Related – Management Information Systems Department (MIS) ippines for another approval. The approval of the Senate will be made through a plenary hear-
ing that shall be attended by the Chairman and Administrator.
Communication Equipment – Telecommunications Department
Possible Congressional Initiative may be made during the Bi-cameral Committee Meeting.
Infrastructures – ODA for Public Works Once approved and signed by the President of the Philippines, this will be called General Ap-
Furnitures and Fixtures – Procurement and Property Management Depart- propriations Act and will be available for viewing at the DBM website.
ment The following are the requirements for the release of SARO for the equipment:
Motor Vehicles/Heavy Equipment – Construction and Maintenance Department 1. Letter request indicating the list of equipment to be purchased, cost, and purpose
Other Equipment – MTD/Telecomm/Airport 2. Corporate Operating Budget which shall include items requested for NG funding
3. Annual Equipment Procurement Program in case of request for Equipment
Annually, each department is required to submit a three year plan for Capital Expenditures.
Please fill up Budget Forms for Capital Expenditures and submit to the designated Expense 4. Notice of Bidding
Account Manager for evaluation and consideration within the Target Amount per year. 5. Project profile
1. Land/Land Improvement Budget Form – 434 and 434A 6. Computation of Return on Investment (ROI) for the purchase of equipment
7. Program of Work
The costs of rights to land ownership and the pertaining improvements to land such as filling,
grading, draining, surveying and planting trees.
For the request of NCA, the following must be submitted:
Fill up Budget Form – 434 and 434A for project details and submit to the Engineering Depart-
ment for evaluation, consolidation and scheduling by year. 1. Purchase Order
2. Notice of Award
2. Building and Structures Outlay Budget Form – 435 and 435A
3. Contract
4. Billing Statement
The cost of buildings and structures purchased or constructed and permanent improvements
thereto. 5. Billing of Work Accomplished
6. Endorsement of the Expenses Account Manager
Fill up Budget Form – 435 and 435A for project details and submit to the Engineering Depart-
ment for evaluation, consolidation and scheduling by year. 7. Budget Utilization Request
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

This outlay is further broken down into categories listed below (A to E). Fill up Budget Form – Submission of equipment/motor vehicle requirements should include complete specifications
436 and 436A for details. and justifications.

A. Communication Equipment For capital outlays other than equipment, the following guidelines must be considered:

Submit accomplished forms for evaluation, consolidation and scheduling by year with the Tele-  The completion of on-going projects should be given first priority over new requirements.
communication Department.

B. Motor Vehicles and Heavy Equipment/Watercraft


 The major repair and rehabilitation of existing occupied buildings and structures or those that
will be used in connection with the SBMA’s line functions should be given priority over the
Submit accomplished forms for evaluation, consolidation and scheduling by year with the Con- construction of new ones.
struction and Maintenance Department (Transportation Division). Please refer to DBM-BC No.
2019-2 and BC No. 2017-1 (dtd 4/26/2017)  Proposed civil works must be accompanied by cost-benefit analysis.
C. Office Furniture and Fixture  Detailed engineering and construction supervision services must be included in the estimated
Submit accomplished forms for evaluation, consolidation and scheduling by year with the Pro- cost of civil works.
curement & Property Management Department.
 The Engineering Department will screen, approve and consolidate all civil works projects.
D. Other Equipment
GUIDELINE ON BUDGET REALIGNMENT (DBM-NBC 559 dtd June 26, 2015)
Submit accomplished forms for evaluation, consolidation and scheduling by year with the Con-
struction and Maintenance Department (Maintenance Division). 1. Restricted Expenditures. The amounts programmed, particularly for, but not limited to, petro-
leum, oil and lubricants as well as for water, illumination and power services, telephone and
E. Medical Equipment other communication services, rent, repair and maintenance, retirement gratuity and terminal
leave requirements shall be disbursed solely for such items of expenditures: PROVIDED, That
Submit accomplished forms for evaluation, consolidation and scheduling by year with the Pub- any savings generated from these items after taking into consideration the agency's full year
lic Health and Safety Department (such as initial medicine kit, others). requirements may be realigned only in the last quarter.
4. IT Equipment Outlay Budget Form – 438 and 438A 2. Realignment shall be done only for emergency/extraordinary projects that may arise during
Submit accomplished forms for evaluation, consolidation and scheduling by year with the Man- the budget period.
agement Information Systems Department for technical evaluation and certification of its inclu- Threshold/Approving Official (Board Certification No. 14-122,s. 2014)
sion in the NCC approved ISSP.
1. Php 500,000 and below – SBU Head
Fill up Budget Form – 438 and 438A for details. 2. Above Php 500,000 – Chairman & Administrator
3. Php 5M and above - Board of Directors
1. The following guidelines should be considered in the determination of equipment require-
ments: 3. Reallocation or transfer of budgetary funds within the same expense account from one de-
partment/office to another as approved by the SBU Head upon recommendation and/or concur-
2. The equipment requirements that are directly needed in the performance of line functions rence of the concerned sponsoring department/office.
should be satisfied first before items intended for administrative and staff support activities are
considered. Example:

3. The repair and rehabilitation of existing equipment should be considered as an alternative to Reallocation of Local Travel Budget amounting to Php 10,000
the purchase of new items. Also, requests to replace necessary unserviceable equipment from BU (1) Administrator’s Office Local Travel (10,000)
should be given priority over the purchase of additional items.
to BU (2) Intelligence and Investigation Office Local Travel 10,000
4. As a general rule, replacement of motor vehicles such as medical ambulances, patrol vehi-
cles, utility vehicles, and those which are directly related to the performance of substantive Note: This is to maintain the same level of expense account in an SBU. Requested amount
functions of the SBMA shall be given priority over additional requirement. should not exceed the SBU Budget.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

Realignment or transfer of budgetary funds from one expense account to another expense ac-
count within the BU or between BU’s under the same SBU. This shall be approved by the SBU TREASURY DEPARTMENT
head upon concurrence of the sponsoring department/office.
STRINGENT POLICY TO COLLECT SBMA RECEIVABLES
Example:
Board Resolution No. 17-07-0261
Within the BU:
Background:
from Administrator’s Office Supplies and Materials account (10,000)

to Administrator’s Office Communications account 10,000 The Stringent Policy to Collect SBMA Receivables was approved by the SBMA Board on Jan-
uary 27, 2012 and was amended on June 23, 2016, May 10, 2017 and July 20, 2017.

STEP 1 (Day 1-30) Past Due:


Between BU’s under the same SBU:
1. On the 29th day of the month (after billing due date) when no payment is received, the ac-
from Administrator’s Office Supplies and Materials account (10,000) count will be handled by the Credit & Collection Unit (C&C) of the Treasury Department.
to Internal Audit’s Office Communications account 10,000
Note: The Accounting Department generates billing invoices on the first 10 days of the month
with due date on the 28th.

Note: This is to maintain the same level of budgetary funds per SBU. 2. The Credit & Collection Unit (C&C) coordinates with the delinquent entity for the payment of
the said account. This unit will issue two (2) demand letters:

i. 1st – a friendly reminder giving 10 days to settle the account


5. In case there is a need to realign budgetary funds between Expense Class (MOOE to CAPEX
or vice versa), the requesting department shall seek the approval of the SBMA Board of Direc- ii. 2nd – letter giving 5 days to settle the accounts with advice to refer the same to the con-
tors, with prior approval of their SBU Head and the Chairman & Administrator, upon recommen- cerned departments with the following consequences:
dation of the Financial Planning and Budget Department. As this entails augmentation of the
expense class, the realignment needs to be approved further by the DBM. a. Legal Department for appropriate legal action;

6. In case there is a need to realign budgetary funds from CAPEX to CAPEX, the requesting b. Seaport Department/Trade Facilitation and Compliance Department (TFCD) for the
department shall fill up the Budget Realignment form and the APP Inclusion form with prior ap- suspension of its importation, exportation, transshipment, issuance of admission permit
proval of their SBU Head. & other privileges;

Note: Maintain the same level of the item previously approved by the board, observed the quan- c. Office Services Department, for stoppage of issuance of pass & ID;
tity and the item name included therein, any changes is subject to realignment.
d. Regulatory Group, for stoppage of issuance of permits, visa, & other pertinent docu-
7. In case the budget for Key Initiatives shall be utilized for other projects, the requesting depart-
ments;
ment shall seek the approval of the SBMA Board of Directors, with prior approval of their SBU
Head and the Chairman and Administrator, upon the recommendation of the Financial Planning e. Labor Department, for non-issuance of clearance ;
and Budget Department.
f. PPMD, to stop issuance of clearance for bringing-out of property of the delinquent entity;
Note: FPBD must be furnished with a copy of all approved budget realignment requests as well
as the approved APP Realignment Forms to facilitate smooth processing of Purchase Requests g. Land & Asset & Development Department, stoppage of issuance of clearance for con-
and/or Budget Utilization Request. sent to assignment and sublease of property;

h. Business and Investment Departments for suspension of CRTE and/or CR.

Note: All letters will be copy furnished to the concerned Business and Investment Depart-
ments and Land & Asset Development Department.
FINANCE GROUP MANUAL: FINANCE GROUP MANUAL:
POLICIES PROCEDURES, AND GUIDELINES POLICIES PROCEDURES, AND GUIDELINES

3. The Accounting Department rejects customers with past due accounts and are requesting STEP 3 (61-90) Past Due Account:
renewal of Certificate of Registration and Tax Exempt (CRTE)/Certificate of Registration (CR)
at the Accounts Evaluation Committee (AEC) meeting. 1. In case of non-payment, the Legal Department as assisted by Business Group shall recom-
mend to the SBMA Board the cancellation of the CRTE/CR and/or Pre-Termination of the
4. In case of non-payment and no payment scheme was proposed and agreed upon, C&C Lease Agreement (if the locator is a direct lessee) or withdrawal of consent on sublease
refers the delinquent account to the Legal Department for the service of Notice of Default & agreements entered by delinquent lessee.
Demand of Payment (Demand to pay only if the delinquent entity is a mere sublessee) of the
past due account within the curing period of thirty (30) days. 2. Upon approval by the Board the Legal Department shall endorse/advise the Treasury Depart-
ment and the Finance Group for CIBI Blacklisting.
5. C & C informs the following Departments of the fact of non-payment of the past due ac-
counts by the delinquent entity & request to undertake appropriate actions: 3. Legal Department shall send to the delinquent entity the Notice of Cancellation of CRTE
and/or Notice of Pre-Termination of Lease Agreement (if locator is a direct lessee) or with-
a. Seaport Department/Trade Facilitation and Compliance Department (TFCD) for the sus- drawal of consent on sublease agreements entered by delinquent lessee with Demand to
pension of its importation, exportation, transshipment, issuance of admission permit & Vacate the Property.
other privileges;
4. Take-over of the property to be conducted by the Legal Department, Account Officer, LADD,
b. Office Services Department, for stoppage of issuance of pass & ID; LED, PPMD and Media Productions Department, if sanctioned by the Lease Agreement with
delinquent locator or Main Lease Agreement covering the locator’s subleased property.
c. Regulatory Group, for stoppage of issuance of permits, visa, & other pertinent docu-
ments; Note: Other Offices concerned should be copy furnished of the Notice of Take-Over.

d. Labor Department, for non-issuance of clearance ;

e. PPMD, to stop issuance of clearance for bringing-out of property of the delinquent entity.

f. Land & Asset & Development Department, stoppage of issuance of clearance for consent
to assignment and sublease of property.

g. Business & Investment Departments for suspension of CRTE and/or CR.

6. C & C advises the concerned companies/individuals that their account has been referred to
the Legal Department for appropriate legal action and to the concerned departments to effect
suspension of privileges, clearances and CRTE/CR as mentioned in our previous letter.

STEP 2 (Day 31-60) Past Due Account:

1. Legal Department shall send Notice of Default & demand of Payment (Demand to pay only
if the delinquent entity is a mere sublessee) of the outstanding account within the curing
period as stated in the contract, if there is any;

2. The said notice contains the corresponding consequences, in case of non-payment and
failure to cure its default:

a. Cancellation of CRTE, if applicable & Pre-Termination of Lease Agreement.

b. Withdrawal of consent on sublease agreements entered by delinquent lessee.

You might also like