SOP No: FS-GP16

SOP Library

SOP NO: FS-GP16 (List of Exhibits/Attachments)

Mission: Finance and Administration

Area: Financial Services (FS)

Activity: General Accounting Plan (FS-GP)

Title:

Revised SOP on Voucher Processing

Date Approved/Issued: 10/22/1997

Date Effective: 10/22/1997

Digest:

I. TERMS OF REFERENCE

A. Rationale

B. Objective

C. Scope

D. Basis

II. IMPLEMENTING GUIDELINES

Claims Processing

1.1

Description

Claims processing shall be defined as the examination of financial transactions before their consumation. It shall be made for the purpose of determining the propriety of proposed financial transactions, and of financial transactions which have already taken place but have not yet been recorded and, if approval is required, before the approval of designated officials.

Its operation shall involve the following:

a. Determination that the proposed expenditure is for a purpose in compliance with law and regulations;

b. Assurance that sufficient funds are available to enable payment of the claim covered by a voucher;

c. Determination that the proposed expenditure is not unreasonable or extravagant;

d. Determination that the transaction is approved by proper authority and duly supported by authentic underlying evidence; and

e. Determination of appropriate account code to journalize the transaction.

1.2

Responsibility for Claims Processing

The responsibility for claims processing shall be vested upon:

1.2.1 Claims and Inter-branch Accounting Division (CIAD)

The Claims and Inter-branch Accounting Division (CIAD) of the Department for Accounting Services (DAS) shall process all money claims against the NFA for Central Office.

The CIAD has two (2) sections involved in the processing of claims: the Employees’ Claims Section and the Miscellaneous Claims Section.

a. Employees’ Claims Section

shall process usual claims common to all NFA personnel such as salaries, wages, allowances, overtime pay, travelling expenses, hospitalization, educational loans, court appearance fees, bonus and uniform subsidy;

b. Miscellaneous Claims Section

shall take charge of all types of claims by outside creditors like suppliers, contractors, and other private or government persons/entities. The Section shall likewise be responsible for special claims of NFA personnel, e.g. special allowances.

1.2.2 Accounting Section (Field Office)

For Field Office transactions, responsibility for claims processing shall rest upon the accounting section.

1.3

Documentation

1.3.1

Disbursement Voucher (DV)

General Form No. 5A “

Disbursement Voucher

” (Exhibit 1) shall be used by all creditors (Central Office and Field Office) in making their claims against the NFA. The DV shall be duly accomplished by designated officials.

Preparation of the DV shall be the responsibility of the Department/ Office (Central Office) or Section (Field Office) requesting for payment of claim. This shall be prepared in six (6) copies for Central Office and three (3 copies for Field Office, to be distributed as follows:

Central Office:

Copy 1, 2 and 3 - COA

Copy 4 and 5 - CIAD

Copy 6 - Creditor

For Field Office Office

Copy 1 - COA

Copy 2 - Accounting Section

Copy 3 - Creditor

Additional copies may be prepared when necessary.

1.3.2

Logbooks

Voucher Receipt Logbook

All vouchers for processing shall be recorded in a

Receiving Logbook

(Exhibit 2) for control purposes.

Vouchers received shall be assigned a number (Voucher Receipt Number). Numbering shall be by series per month.

Processed vouchers shall also be recorded in the logbook before such shall be forwarded to the designated official for approval and cashier/disbursing officer for payment.

TEV Liquidation Logbook

All liquidation vouchers received for travels made shall be recorded in the

TEV liquidation logbook

) (Exhibit 3).

Returned Voucher Logbook

All vouchers (

DVs

and TEVs) which can not be processed due to lack of required supporting documents/ other deficiencies shall be returned to the claimant thru the Executive/ Administrative Assistants (C.O.)/ authorized employee (F.O.) of the Department /Office/Section. This shall be reflected in the

Returned Voucher Logbook

(Exhibit 4).

The requirements which the claimant should comply with for the processing of the claim shall be listed in the

Returned Voucher Slip

(Exhibit 7)

Subsequent submission of the returned voucher, after compliance to the requirements had been made, shall likewise bereflected on the Returned Voucher Logbook.

1.3.3

Reference Cards

For control purposes, all claims processed shall be indexed in reference cards. Maintenance of the alphabetically filed reference cards by creditors shall check possible double payment of claims. The name of the claimant, voucher receipt number, amount and other particulars (depending upon the type of claim) shall be reflected in the reference cards.

1.3.4

Fund Control Ledger

Certification as to funds availability shall be based on the Fund Control Ledger which is a record of released allotment per Department/Office per fund per Object of Expenditure and of expenses charged against the allotment.

For Central Office, separate control cards for

Personal Services, Maintenance and Other Operating Expenses and Equipment (MOOE)/Capital Outlay

(Exhibit 5.A and 5.B)

shall be maintained.

The

Fund Control Ledger

shall be balanced at the end of the month and the remaining allotment shall be forwarded to the succeeding month.

However for Personal Services and MOOE, balance at the end of the year is not being forwarded to the succeeding year.

1.3.5

Voucher Register Journal

The

Voucher Register Journal

(

Exhibit 6.A

and

Exhibit 6.B)

shall be used to record cash outflow transactions (employees’/miscellaneous claims) except cash advances of Regular/Special Disbursing Officers. Entries in this journal shall be based on processed

disbursement voucher

s and recorded in chronological sequence.

Numbering of processed vouchers shall be as follows:

97 - 01 - 25

Year - Month - Sequence (continuous during the year)

Basic Requirements Applicable to all Classes of

Disbursements

2.1 Existence of a lawful and sufficient appropriation certified as available by the proper officer.

2.2 Legality of transaction and conformity with rules and regulations.

2.3 Approval of the expense by the head of the agency or authorized representatives.

2.4 Submission of proper evidence to establish the claim.

The

Mandatory Minimum Supporting Documents for Common Transaction

which shall be attached to the

disbursement voucher

are listed in

Annex A

The

grant of cash advances

and their liquidation shall be governed by existing regulations of the Commission on Audit as shown in

Annex B

3. Irregular, Unnecessary, Excessive and Extravagant Expenditures (IUEE)

The incurrence of IUEE shall be prevented to avoid fraud, abuses and overspending/misspending of government funds.

The description of IUEE is given in Annex C for the guidance of all parties concerned to avoid disallowances.

Specifications of Authority

4.1

Certification of Funds Available

Disbursement Voucher

Central Office

Asst. Div.Chief, DAS-CIAD DC,DAS-CIAD

Provincial Office

Prov'l Accountant

Regional Office

Reg'l Accountant

4.2

Certification of Expense/Approved -

Disbursement Voucher

Amount Involved Certifying Official Approving Official

Central Office

P100,000 and below Dept. Mgr./Asst.Dept.Mgr. ADM., DAS

(user concerned)

Above 100,000 to

P500,000 Dept.Mgr. (user concerned) Dept.Mgr., DAS

Above P500,000 to

P2M Dept.Mgr. (user concerned) AAFA

Above P2M to P3M Dept.Mgr. (user concerned) DAFA or in his

absence, DAO

Above P3M Dept.Mgr.(user concerned) Administrator

Field Office

Provincial Office

P20,000 and below Unit Head concerned Asst.Prov’l Mgr.

Above P20,000 Unit Head concerned Prov’l Mgr**

Regional Office

P30,000 and below Unit Head concerned Asst.Reg’l Manager

Above P30,000 Unit Head concerned Regional Manager*

* official next-lower-in-rank can execute the required action in the absence of the authorized official

** with authority from the Provincial Manager (for P.O.), the APM can sign in the absence of the PM for three (3) consecutive days.

Processing Period

The maximum period for a voucher to be acted upon (processed for approval of payment or returned to claimant for insufficiency of requirements) shall be three (3) working days from the receipt thereof. However, the processing of liquidation vouchers are, at times, deferred in cases wherein there are other vouchers which need to be prioritized due to the urgency and nature of the claims.

Follow-up of Vouchers

No person shall be allowed to follow-up or interfere on any claims for payment for the purpose of expediting the processing of such claims. Vouchers already processed shall not be given to persons other than those involved in the processing of claims. Vouchers needing additional requirements during the course of processing shall be released only by the designated accounting personnel (Receiving/Releasing Clerk) to the Executive/Administrative Assistants (C.O.)/authorized employee( F.O.).

Only the concerned employee shall be allowed to follow-up the status of claims for payment in case the maximum processing period of three (3) working days had lapsed. Creditors shall be duly notified by the Cashier upon receipt of fully processed vouchers and after the check had been prepared and signed.

Use of Green Ink

Personnel responsible for claims processing shall use green indelible pencil, ink or ballpen in superimposing the audited figures or words on the voucher and pertinent documents. This shall distinguish the works done by other employees and COA personnel.

Total Lifting of Pre-Audit of Vouchers

There shall be

total lifting of pre-audit by COA on all financial transactions

(listed in

Annex D

) of the agency. Pre-audit activities shall henceforth be the responsibility of the Department for Accounting Services (DAS)(C.O.)/Accounting Units (F.O.)

Preservation and Safekeeping of Vouchers

Processed vouchers shall be forwarded to the disbursing officer for payment. Usual disbursement reports, e.g. List of Checks Issued shall be prepared by the disbursing officer.

Paid vouchers shall be submitted to COA for post-audit purposes. Preservation and safekeeping of these vouchers shall be the responsibility of COA.

10.

Certificate of Settlement and Balances (CSB)

The CSB shall indicate the total amount deemed settled by the COA Auditor (i.e. the amount determined to have been spent in accordance with auditing laws and regulations, and as economically, efficiently, and effectively as possible) and the balances still to be settled, if any (i.e. the amount disallowed for being illegal/improper and/or the amount suspended for lack of supporting documents). The CSB without disallowance, suspension or deficiency shall serve as a clearance for the accountable or responsible officer for the period covered by that CSB and shall be considered final subject to Section 52 of the Government Auditing Code of the Philippines.

A description of a

Suspension, Disallowance and Deficiency

is given in

Annex E

The copy distribution of the CSB shall be as follows:

Original-Agency Head

Duplicate-Accountable Officer

Triplicate-Chief Accountant/Bookkeeper

Quadruplicate-Auditor’s file

Quintuplicate-COA Manager/Regional Director

11.

Persons Liable for Disallowances (COA Circular No. 85-156-B)

The degree of liability shall be determined not by the nature of position, designation or duties but by the degree of participation or involvement in the transaction. The accountability and/or responsibility shall also be a factor.

Based on the degree of their participation and their accountability/responsibility, the following may be made liable for disallowances:

a. The person who fails to exercise the diligence of a good father of a family in supervising the accountable officers under his control or supervision;

b. The person who made or authorized payment of government funds in violation of laws, rules and regulations including other persons taking part in such transaction and the recipient of the payment;

c. The person accountable for government funds which were lost because of unlawful deposit, use or application or because of negligence in the keeping of such funds;

d. The approving officer or his duly authorized representative who approved the disallowed voucher;

e. The officer who signed Certificate Letter A of the

and certified that the disallowed expenditure was necessary, lawful and reasonable;

f. The supervisor who certified that the travel was properly authorized and in the interest of the service or that the cash advance was drawn for official purposes;

g. Property Officer/Custodian who certified that he received the supplies and property in good condition as per purchase order and invoice;

h. The Accountant who signed

and certified that adequate funds were available, account codes were proper, and the expenditure was properly certified and supported by documents appearing legal and proper if the case is related to Advice of Allotment.

i. The Disbursing Officer/Cashier who made the payment;

j. The Claimant-Payee who receive the payment;

k. The person(s) who initialled below the signatures;

l. The person(s) who signed the abstract of bids/canvass, inspection report or other supporting documents of the

disbursement voucher

found to be fraudulent or defective;

m. The authority responsible for the employment of a person even if such employment is in violation of the Civil Service Law and rules;

n. The Officer(s) who entered into a contract without appropriation and certificate of availability of funds to cover the proposed contract;

o. The Official who certified as valid an obligation that is later found to be non-existent or fictitious; the official who authorized payments for such obligations; the official who made the payment for such obligations; other officials taking part in these transactions; the claimant who received the payment for these transactions.

p. Parties responsible for the incurrence of over drafts

q. Persons determined by the Auditor to have participated in the disallowed transaction shall be jointly and severally liable to the Government for the full amount ought to be restituted/refunded.

12.

Cash Settlement of Disallowances

Upon receipt of the Auditor's Notice to Persons Liable and there is no intention to make an appeal, the person liable can voluntarily restitute the amount disallowed thru direct payment to the authorized collecting officers for which an official receipt shall be issued. The grace period shall be 30-days from receipt of the notice.

After the lapse of this period and still no payment had been made by the person liable, the amount shall be deducted immediately and fully, if possible, in the succeeding payroll period.

Cash settlement of disallowances shall not waive the right of the authorities to pursue any other legal actions (criminal, civil, administrative case) against the liable party.

13.

Failure to Withhold Money Due From Persons Found Liable for Disallowances

The Cashier/Disbursing Officer/Chief Accountant who fails or refuses to withhold money due from persons found liable for disallowances shall be administratively charged pursuant to Section 36 of PD 807 in relation to Section 37 of PD 1445.

Failure to deduct the disallowance from the salaries/allowances due the person liable shall also be subjected to the aforementioned provision.

At the same time, administrative charges or the appropriate civil suits shall be filed against the person found liable for the disallowance pursuant to Section 46 and 49 of PD1177, whichever is applicable.

14.

Accounting Treatment

14.1

To take up payment of the processed voucher:

DR : Appropriate Expense/Asset Account xxx

CR : Vouchers Payable xxx

DR : Vouchers Payable xxx

CR : Appropriate Cash Account xxx

14.2

To book up COA disallowances based on Accountant’s copy of the CSB within five (5) days after delivery of the CSB:

DR : Contingent Assets-Claims for

is allowed Payments xxx

CR : Contingents Surplus-Claims

for Disallowed Payments xxx

Failure of the Accountant to book-up the disallowance after five (5) days from receipt of the Auditor's Memorandum ordering that the disallowances be taken up in the books shall subject the Accountant to administrative charges pursuant to Section 36 of PD No. 807.

15.

Cash Settlement of Disallowances

CDJ thru RCD:

15.1

Thru direct payment

DR : Cash with Collecting Officer xxx

CR : Contingent Assets-Claims for

Disallowed Payments xxx

GJ thru JV:

DR : Contingent Surplus - Claims for

Disallowed Payments xxx

DR : Current Year Expense or

Retained Earnings (xxx)

15.2

Thru Salary Deduction

VRJ:

DR : Salaries/Wages xxx

CR : Contingent Assets - Claims for

Disallowed Payments xxx

CR : Other Deductions xxx

CR : Vouchers Payable xxx

GJ thru JV:

DR : Contingent Surplus-Claims

for Disallowed Payments xxx

DR : Current Year Expense or

Retained Earnings (xxx)

III. RESPONSIBILITIES

1. Receiving Clerk

1.1 Receives

with supporting documents and records in the

Voucher Receipt Logbook (VRL)

1.2 Assigns voucher number; numbering shall be by series per month.

1.3 Endorses DV to the assigned processor.

2. Voucher Processor

2.1 Verifies

with supporting documents; if found with incomplete requirements, accomplishes

Returned Voucher Slip

(RVS)

and returns

to the Receiving Clerk.

2.2 Processes

with complete requirements.

Fund Control Officer

3.1 Records expense to the

Fund Control Ledger

and affixes initial.

3.2 Assigns number to

Voucher Register Journal

Chief, Claims and Interbranch Accounting Division (C.O.)

4.1 Insures compliance to accounting and auditing rules relevant to receipt of vouchers for processing, voucher processing, certification as to funds availability, indexing, releasing and return of vouchers with incomplete requirements.

4.2 Settles COA suspension/disallowance by either initiating submission of the lacking requirement or effecting salary deduction.

Chief, General Accounting Division

5.1 Verifies paid vouchers. Records corresponding checks issued in the Cash and Check Register Journal.

5.2 Records disallowance.

Regional or Provincial Accountant

6.1 Insures compliance to accounting and auditing rules relevant to receipt of vouchers for processing, voucher processing, certification as to funds availability, indexing, releasing, and return of vouchers with incomplete requirements;

6.2 Audits vouchers prior to payment.

6.3 Verifies paid vouchers. Records corresponding checks issued in the Cash and Check Register Journal.

6.4 Books-up disallowances per CSB and effects the prompt settlement thereof.

Index Clerk

Indexes necessary data to the Index Reference Card.

8. Releasing Clerk

Releases processed

Approving Official

Approves payment of necessary, lawful and reasonable expenditures.

10. Disbursing Officer

10.1 Checks if vouchers had been audited by concerned accounting official.

10.2 Effects payment of processed vouchers.

The foregoing SOP supersedes SOP Nos. FS-GP06.A and FS-GP06.B made effective on June 1, 1987 and august 1, 1990 respictively.

This SOP shall take effect this 22nd day of October, 1997.

JOEMARI D. GEROCHI (SGD)

Date Approved :
October 22, 1997

IV. FLOW CHART

Top Page

EXHIBITS

Mandatory Minimum Supporting Documents for Common Transactions

Guidelines in Granting Cash Advance Per Regulations of the Commission on Audit (COA)

Financial Transactions Covered by Total Lifting of Pre-Audit by COA

Suspensions, Disallowances and Deficiencies

Returned Voucher Slip

Returned Voucher Logbook

Equipment Outlay Control Ledger

Fund Control Ledger

Voucher Register Journal (Computerized)

Voucher Receipt Logbook

TEV Liquidation Logbook

Disbursement Voucher

Mandatory Minimum Supporting Documents for Common Transactions
Guidelines in Granting Cash Advance Per Regulations of the Commission on Audit (COA)
Financial Transactions Covered by Total Lifting of Pre-Audit by COA
Suspensions, Disallowances and Deficiencies
Returned Voucher Slip
Returned Voucher Logbook
Equipment Outlay Control Ledger
Fund Control Ledger
Voucher Register Journal (Computerized)
Voucher Receipt Logbook
TEV Liquidation Logbook
Disbursement Voucher