Addenda/Errata on Barangay Financial Management Manual

Chapter/Topic Page No. Provision in the Manual Addendum/Erratum

Chapter I – General Accounting Page 3 1.2.4. Barangay books of accounts shall consist of a Deleted the phrase “barangay bookkeeper under the
Instructions Journal of Cash Transactions (JCT) – Annex 1, direct supervision of the” to read as follows:
General Journal (GJ) – Annex 2, General Ledger
(GL) – Annex 3 and Subsidiary Ledger (SL) – Annex “1.2.4. Barangay books of accounts shall consist of a
4 which shall be maintained by the barangay Journal of Cash Transactions (JCT) – Annex 1,
bookkeeper under the direct supervision of the General Journal (GJ) – Annex 2, General Ledger (GL)
City/Municipal (C/M) Accountant. – Annex 3 and Subsidiary Ledger (SL) – Annex 4
which shall be maintained by the City/Municipal
(C/M) Accountant.”

Page 3 1.2.8. Unspent Local Disaster Risk Reduction and Removed the phrase “and the share of the Sangguniang
Management Fund (LDRRMF) and the share of Kabataan (SK)”, to read as follows:
the Sangguniang Kabataan (SK) shall be recorded
as STF. “1.2.8 Unspent Local Disaster Risk Reduction and
Management Fund (LDRRMF) shall be recorded as STF.”

Chapter II – Barangay Accounting Page 7 Replaced the Barangay Accounting Plan with the
Plan corrected file

Chapter III – Appropriations and Page 9 No provision. Added the following provisions:
Obligations
“3.1.8 The estimated and actual income during the year
shall be recorded in the Record of Estimated and
Actual Income (REAI) as shown in Annex 41. This
Record shall be maintained and updated monthly
by the Barangay Treasurer and submitted to the
City/Municipal Accountant at year end as basis for
the preparation of the Statement of Comparison of
Budget and Actual Amounts.

3.1.9 A Statement of Comparison of Budget and Actual

Amounts shall be prepared by the City/Municipal

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 Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
Accountant based on the REAI prepared and
submitted by the Barangay Treasurer at year end.”

Chapter IV – Collections and Page 10 c. Tobacco Excise Tax (RA No. 7171 and 8240) Deleted.
Deposits/Remittances

Page 12 4.1.13 Collections received by the BT as deputized Changed the phrase “at least once a week or as
collector of the city/municipality shall be remitted practicable especially during heavy collections” to read
intact to the treasurer of the city/municipality as follows:
concerned at least once a week or as practicable
especially during heavy collections. “4.1.13 Collections received by the BT as deputized
collector of the city/municipality shall be remitted
intact to the treasurer of the city/municipality
concerned daily or once the collections reach
P5,000.00.”

Page 13 4.1.14 DBC maybe authorized/designated to receive Deleted the phrase “or CTC on behalf of the BT in
collections like market fees, parking fees or CTC accordance with a Barangay Resolution enacted by the
on behalf of the BT in accordance with a Barangay SB and approved by the PB” to read as follows:
Resolution enacted by the SB and approved by
the PB. Collections received by the DBC shall be “4.1.14 DBC maybe authorized/designated to receive
reported in the Report of Collections and collections like market fees, parking fees.
Remittances (Annex 9.1) and turned over daily to Collections received by the DBC shall be reported in
the BT. The amount turned over shall form part the Report of Collections and Remittances (Annex
of the daily collections of the BT for recording in 9.1) and turned over daily to the BT. The amount
the Cashbook and Report of Collections and turned over shall form part of the daily collections
Deposits (RCD) (Annex 9). of the BT for recording in the Cashbook and Report
of Collections and Deposits (RCD) (Annex 9).”

Page 15 4.2.3 For collections made by the Deputized Barangay Added the following provision (letter d):
Collectors:
a. Collections shall be remitted daily to the BT “4.2.3 For collections made by the Deputized Barangay
b. Prepare Report of Collections and Remittances Collectors:
(RCR) as shown in Annex 9.2 summarizing

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 Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
daily collections a. xxx
c. The BT shall acknowledge receipt of b. xxx
collections by signing on the receipt portion of c. xxx
the RCR d. DBC remittances shall be reported in the RCD of
the BT”

Chapter V – Disbursements Page 22 5.2.2 (d) For subsequent cash advances, the DV shall Deleted.
be supported with a certification from the
Accountant that previous cash advances have
been liquidated and accounted for in the books.

Chapter VII – Investment Page 47 No provision provided for the Biological Assets Added a provision for the Biological Assets Property
Property, Property, Plant and Property Card Card to read as follows”
Equipment and Biological Assets
“7.1.29 The officer-in-charge or caretaker of biological
assets shall maintain a Biological Assets Property
Card (BAPC) (Annex 42) to record all additions and
reductions in biological assets. He shall regularly
gather data on current fair value of biological assets
and post in the respective individual BAPC. A
Quarterly Report of Biological Assets (QRBA)
(Annex 43) shall likewise be prepared which
contains, among others, the changes in fair value of
the biological assets due to physical and price
changes. The QRBA shall be submitted to the
City/Municipal Accountant.”

Page 50 7.2.5 (d) The RIPE shall be the basis of the BT for Revised, to be read as follows:
reconciling the equipment covered by PAR and
the PECs on file and the ICS for the small items “7.2.5 (d) The RIPE shall be the basis of the BT for
considered as inventories. reconciling the equipment covered by PAR and the PECs
on file and the ICS for the small tangible items.”

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 Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
Chapter XII – Other Provisions Page 84 12.5.2 The BT shall submit the RCDs, LR, Changed the phrase “on or before the 5th day of the
ORs/DVs/Payrolls and Monthly RAAF to the C/M succeeding month” to “within 10 days after the end of
Accountant on or before the 5th day of the the month” to read as follows:
succeeding month.
“12.5.2 The BT shall submit the RCDs, LR,
ORs/DVs/Payrolls and Monthly RAAF to the C/M
Accountant within 10 days after the end of the
month.”

Chapter XIII – Chart of Accounts Page 92 Trust Liabilities – SK Funds Removed the account “Trust Liabilities – SK Funds”

Page 93 None Added the account “Transfer of Unspent Previous

Years’ LDRRMF (4-02-01-030)”

Page 94 None Added the account “Market Fees (4-04-02-020)”

Page 94 None Added the account “Other Business Income (4-04-02-

990)”

Page 96 Transfer of SK allocation to STF Deleted “to STF”, to read as follows:

“Transfer of SK allocation”

Page 96 None Added the account “Extraordinary and Miscellaneous

Expenses (5-02-12-010)”

Page 100 14.1 Allowance for Impairment – Other Receivables Should be 14.13 Allowance for Impairment – Other
Receivables

Updated numbering onwards

Chapter XIV – Description of Page 128 None Added the following description:
Accounts

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Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
“14.175. Transfer of Unspent Previous Years’ LDRRMF
(4-02-01-030). This account is used to revert
back to the General Fund any unutilized
previous year’s LDRRMF after five years. This
account shall be closed to the Revenue and
Expense Summary account.”

Page 129 Grants and Donations in Cash (4-03-02-010). This Revised to read as follows:
account is used to record all grants and donations in
cash received from private sectors or international “14.177. Grants and Donations in Cash (4-03-02-010).
institutions with or without conditions. This account This account is used to record all grants and
shall be closed to the Revenue and Expense Summary donations in cash received from private
account. sectors or international institutions with
conditions after compliance thereof. This
account shall be closed to the Revenue and
Expense Summary account.”

Page 129 None Added the following descriptions:

“14.182. Market Fees (4-04-02-020). This account is

used to record collections from the operations
of market. It includes rental of market spaces
(fixed and ambulant) and other income
earning facilities of the market. This account
shall be closed to the Revenue and Expense
Summary account.”

“14.183. Other Business Income (4-04-02-990). This

account is used to record the income not
falling under any of the specific business
income accounts. This account shall be closed
to the Revenue and Expense Summary
account.”

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 Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
Page 140 14.224. Transfer of SK allocation to STF (5-02-10-030). Revised to read as follows:
This account is used to record the transfer of the
unspent CY SK allocation to the STF. This account shall “14.238. Transfer of SK allocation (5-02-10-030). This
be closed to the Revenue and Expense Summary account is used to record the transfer of the SK
account. allocation. This account shall be closed to the
Revenue and Expense Summary account.”

Page 141 No description of account provided for Extraordinary Added description before Other Maintenance and
and Miscellaneous Expenses Operating Expenses:

“14.242. Extraordinary and Miscellaneous Expenses (5-

02-12-010) – This account is used to record the
amount paid for expenses incidental to the
performance of official functions, such as:
meetings and conferences, public relations,
educational, cultural and athletic activities,
membership fees in government organizations,
etc.”

Appendices Appendix C Matrix of Reports and Forms Removed the following in the matrix:

1. Record of Appropriations and Obligations

2. Petty Cash Record
3. Cashbook
4. Cashbook - Disbursing Officer
5. Stock Card
6. Property/Equipment Card (PEC)
7. Property/Equipment Ledger Card
8. Return and Receipt of Property/Equipment

Included the Statement of Appropriations, Obligations

and Balances (SAOB) and the Record of Estimated and
Actual Income (REAI) in the matrix.

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 Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
Annexes Annex 6 Record of Appropriations and Obligations (RAO) Form:
 Added a column for Financial Expenses after
Maintenance & Operating Expenses and before
Capital Outlay.
 Replaced Personal Service to Personnel Services in
the form and in Instruction A.10
 Replaced “Chairman” with “Chairman on Committee
on Appropriation”
 Added a row for “Fund Source”

Instruction:
 Replaced “Chairman” with “Chairman on Committee
on Appropriation”
 Added instruction for Fund Source, to read as
follows:

“Fund Source – indicate whether appropriation is for

regular appropriations, 10% Sangguniang Kabataan
fund, 5% Local Disaster Risk Reduction Management
Fund, 20% Development Fund or continuing
appropriations.”

Annex 7 Statement of Appropriations, Obligations and Balances Form:

(SAOB)  Replaced “For the Period” with “As of”
 Replaced Personal Services with Personnel Services
 Split the column for Appropriations to reflect the
Original, Supplemental and Final Budget
 Added a row for Financial Expenses after
Maintenance & Operating Expenses and before
Capital Outlay
 Added a row for the 20% Development Fund under
the Continuing Appropriations
 Added the Noted by Punong Barangay portion in the
SAOB form since the Instruction and discussion
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Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
indicates the same.

Instructions:
 Replaced “For the Period” with “As of”
 Added instructions for the Original, Supplemental
and Final columns, to read as follows:

a. Original – the amount of appropriation in the

Annual Budget
b. Supplemental – the amount of appropriation in
the Supplemental Budget
c. Final – the total amount of the Original and
Supplemental columns

 Revised the first paragraph of the Instructions to read

as follows:
“The Statement of Appropriations, Obligations and
Balances (SAOB) shall be prepared by the Chairman
of the Committee on Appropriations monthly based
on the Record of Appropriations and Obligations
(RAO).”
 Removed Instructions B and C
 Removed SB in Instruction D
 Added item C to read as follows:

“C. The year-end SAOB shall be submitted to the C/M

Accountant at the end of the year.”

Annex 8 Cashbook  Split the columns for Receipts and Disbursements for
Cash Advances, and Receipt/Reimbursement and
Payments for Petty Cash.

Annex 9 Report of Collections and Deposits (RCD) Form and Instructions:

 In Box A of the form, replaced Official Receipt with
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Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
“Official Receipt/RCR”, and replace “Payor” with
“Payor/DBC”.

 In the Instruction, changed Item 5, to read as follows:

 Date – date of OR and RCR
 Number – serial number of the OR issued by the
Treasurer/Accountable Officer including the
cancelled ones in chronological and numerical
sequence; and number of the attached RCR for
collections by the DBC
 Payor/DBC – the name of the individual/entity
who gave the amount or the DBC who remitted
the collections

 In Box B and Instruction 6.a, removed the words

“Remittances” and “Name of the Accountable
Officer”

 Deleted Box C and Instruction 7 – Summary of

Collections and Deposits/Remittances

 Deleted the Acknowledgement portion in the form

and Instruction

 Included in the Accounting Entries a portion for the

signatures of the Barangay Bookkeeper and C/M
Accountant who prepared and approved the
accounting entries, respectively.

Annex 9.1 Report of Collections and Remittances (RCR) Form and Instructions:
 Removed Box B. REMITTANCES and the
corresponding Instruction No. 8
 Removed remittances in Box C
 Revised the Acknowledgment portion to read as
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Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
follows:
“I hereby certify that the foregoing Report of
Collections and Remittances and Accountable Forms
including supporting documents and cash have
been received.”
 Removed the portion for the Accounting Entries

Annex 12 Disbursement Voucher (DV)  In Box A and in Instruction A.11, changed the word
“availability” to “existence”.
 Interchanged Box D (Accounting Entries) and Box E
(Received Payment).
 Included a portion in Accounting Entries for the
signatures of the Barangay Bookkeeper and C/M
Accountant who prepared and approved the
accounting entries, respectively.
 In the Instructions, interchanged instruction nos. 14
and 15 and revise the instruction for Box E
Accounting Entries to read as follows:

“the Barangay Bookkeeper shall prepare the

necessary accounting entries for the particular
transaction. Columns for account title, account code
and the debited and credited amounts shall be filled
up by the Barangay Bookkeeper and approved by the
C/M Accountant.”

Annex 15 Liquidation Report (LR)  Included a portion after the Accounting Entries for
the signatures of the Barangay Bookkeeper and C/M
Accountant who prepared and approved the
accounting entries, respectively

Annex 16 Transmittal Letter (TL)  Changed the Box B title to “RCDs and Supporting
Documents (RCRs, ORs and VDS)”

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Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
Annex 19 Acknowledgement Receipt for Donated Supplies and  Changed the name to “Acknowledgement Receipt for
Materials (ARDSM) Donated Property, Equipment, Supplies and
Materials (ARDPESM)”
 In Instruction B, changed “two copies” to “three
copies”

Annex 30 Report on Inventory of Property and Equipment (RIPE)  Revise Instruction B to read as follows:
“The RIPE shall be submitted at year-end and
distributed as follows:”

Annex 31 Report on Inventory of Supplies and Materials (RISM)  Revised Instruction B to read as follows:

“The RISM shall be submitted at year-end and

distributed as follows:”

Annex 32 Summary of Supplies and Materials Issued (SSMI)  In Instruction B.3, removed the first two digits for
“Fund”

Annex 33 Registry of Special Trust Fund (RSTF)  Replaced “Chairman” with “Chairman on Committee
on Appropriations”
 Added a row for “Details of Appropriations”
 Indicated the column numbers
 Indicated the “Details of Charges” in column 6 to 11.
 Adjusted numbering in Instructions.
 Revised instruction to indicate the details of charges
for columns 6 to 10, to read as follows:

“Amount – amount of funds for the specific purpose

Details of Charges – indicate the nature and amount
of charges to the fund”

 Under Instruction A.2, replaced “Chairman” with

“Chairman on Committee on Appropriations”
 Included as Instruction E – “At the end of the year,
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 Chapter/Topic Page No. Provision in the Manual Addendum/Erratum
the obligations shall be totalled and deducted from
the total sources. The balance shall be double ruled.”

Annex 35 Statement of Financial Performance  Replaced the line item Personal Services to Personnel
Services

Annex 37 Statement of Net Assets/Equity  Replaced Statement of Net Assets/Equity to

Statement of Changes in Net Assets/Equity in page 71
and Annex 37 of the Manual

Annex 38 Statement of Comparison of Budget and Actual  Showed the details of the Continuing Appropriations
Amounts
Annex 40 Notes to the Financial Statements  In Note No. 9 and 9.a, replaced Personal Services to
Personnel Services

Additional Annexes to be Annex 41 Record of Estimated and Actual Income  Added the Record of Estimated and Actual Income
provided (REAI) format and Instructions

Annex 42 Biological Asset Property Card  Added the Biological Asset Property Card (BAPC)
format and Instructions

Annex 43 Quarterly Report of Biological Asset  Added the Quarterly Report of Biological Asset
(QRBA) format and Instructions

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