EMPLOYEES

ORIENTATIO
N
Financial Matters
 Topic Outline

Budget Cycle Disbursement Process Flow Documentary Requirements

Salary (Reg)
Cash Advance
Budget Cycle
 Basic Requirements for Disbursements and the Required
Certifications
OBLIGATION REQUEST & STATUS (ORS) DISBURSEMENT VOUCHERS (DV)
 Basic Requirements for Disbursements and
the Required Certifications
Disbursements of government funds shall comply with the following basic requirements
and certifications:
a) Availability of allotment/budget for obligation/utilization certified by the Budget
Officer/Head of Budget Unit;
b) Obligations/Utilizations properly charged against available allotment/budget by the
Chief Accountant/Head of Accounting Unit;
c) Availability of cash certified by the Chief Accountant. The Head of the Accounting
Unit shall certify the availability of cash and completeness of the supporting
documents in the disbursement voucher and payroll based on the Notice of Cash
Allocation(NCA)/and Notice of Transfer of Allocation(NTA);
 Basic Requirements for Disbursements and
the Required Certifications
d. Legality of the transactions and conformity with existing rules and regulations. The
requesting and approving officials shall ensure that the disbursements of government funds
are legal and in conformity with applicable rules and regulations;
e. Submission of proper evidence to establish validity of the claim. The Head of the Requesting
Unit shall certify on the necessity and legality of charges to allotments under his/her
supervision as well as the validity, propriety and legality of supporting documents. All
payments of government obligations and payables shall be covered by Disbursement
Vouchers (DV)/Payrolls together with the original copy of the supporting documents which
will serve as basis in the evaluation of authenticity and authority of the claim. It should be
cleared, however, that the submission of the supporting documents does not preclude
reasonable questions on the funding, legality, regularity, necessity and/or economy of the
expenditures or transactions; and
 Basic Requirements for Disbursements and
the Required Certifications
f. Approval of the disbursement by the Head of Agency or by his duly authorized
representative. Disbursement or disposition of government funds or property shall
invariably bear the approval of the proper officials. The DVs/Payrolls shall be
signed and approved by the head of the agencies or his duly authorized
representatives.
 Disbursement Process Flow
Finance Division

End User/ Receiving Budget Accounting Releasing Head of the

Assessment Cashier
Claimant Clerk Section Section Clerk Agency

1. Checks the 1. Records the 1. Budget Staff 1. Accounting 1. Records the Approves the Prepares
Submits Claim for Payment/
documents claims in the obligates the Staff prepares processed payment check/ADA and
Reimbursement
submitted incoming expenses JEV claim in the issues the same
-DV
logbook incurred outgoing to the Claimant/
-ORS
2) If found 2) Accountant logbook Payee
-Supporting Documents
incomplete, 2) Assign DV and 2) Budget Officer reviews and
returns all ORS Nos. and certifies that certifies that 2) Transmits the
documents to forwards the allotment is supporting documents to
the end user same to the available and documents are the Office of
Budget Section the claim complete and the
3) If found for obligation obligated is proper and Chairperson/C
complete, necessary cash is EO
forwards the available
documents to
the receiving
clerk
 Documentary Requirements
FIRST SALARY
 Certified True Copy of Duly Approved Appointment
SALARY
 Assignment Order , if applicable
 Certified True Copy of Oath of Office
 Certificate of Assumption
 Statement of Assets, Liabilities and net Worth
 Approved DTR
 BIR withholding certificates (Forms 1902 or 1905)
 Payroll Information of New Employee (for agencies with computerized payroll systems)/ Land
Bank Payroll Acct No.
Additional Requirements for Transferees (from one government office to another)
 Clearance from money, property and legal accountabilities from the previous office
 Certified true copy of pre- audited disbursement voucher of last salary from previous agency
and/ or Certification by the Chief Accountant of last salary received from previous office duly
verified by the assigned auditor thereat
 BIR Form 2316 (Certificate of Compensation Payment/ Tax Withheld)
 Certificate of Available Leave Credits
 Service Record
 Legal Basis
CASH ADVANCE COA Circular No. 97-002 dtd 02.10.1997

Executive Order No. 248

Executive Order No. 298
Executive Order No. 77

CSC Memo Circular No. 23 s. 2019 dtd 10.28.2019

 What is Cash Advance?
CASH ADVANCE
- it is the amount granted to the
cashiers/disbursing officers/officials and
employees to cover the following: salaries
and wages, travels, special time-bound
undertakings and petty operating expenses.
 GENERAL GUIDELINES
CASH ADVANCE
Who can be granted a cash advance?

Permanent Employee
Duly Designated Disbursing Officers
 GENERAL GUIDELINES
CASH ADVANCE  MUST be for a SPECIFIC LEGAL purpose.
 MUST BE USED SOLELY for the specific legal purpose
for which it was granted.
 NOT to be used for encashment of checksDuly Designated Disbursing
Officers
 NOT for liquidation of a previous cash advance.

 Previous cash advance MUST first be settled or proper

accounting is made.
 CANNOT be transferred from one Accountable Officer
(AO) to another.
 GENERAL GUIDELINES
CASH ADVANCE  Only one disbursing officer shall be assigned/designated
for a specific legal purpose.
 No cash advance shall be granted on account of
infrastructure or other undertakings on a project basis.
 Cash advances for a particular year shall not be used to pay
expenses of other years.

 Unused cash advance for a period of two (2) months must

be returned/refunded immediately to the Collecting
Officer/Treasurer
 Types of Cash Advance
CASH ADVANCE
REGULAR
 Payroll
 Petty Cash

SPECIAL PURPOSE
 Travels
 Other Purpose
 Types of Cash Advance
CASH ADVANCE
For all types of advances except for travel, it
shall be supported with the following:
 Authority of the accountable officer issued by the Head of the Agency or his
duly authorized representative indicating the maximum accountability and
purpose of cash advance (for initial cash advance)
 Certification from the Chief Accountant that previous cash advances have been
fully liquidated and accounted for in the books
 Approved application for bond and/or Fidelity Bond for the year for cash
accountability of P5,001 above or other minimum amount that may be
prescribed by the Bureau of the Treasury (upon set-up of new/renewed
accountability)
 Cash Advance for PAYROLLS
CASH ADVANCE
Salaries, Wages, Allowances, Honoraria and Other Similar Payments

 The cash advance shall be EQUAL to the NET AMOUNT

of the payroll for a pay period.
 The cash advance shall be supported with the additional
documents:
1. Approved payroll or list of payees indicating their net pay
2. Approved authority (presidential directive or legislative enactment) or legal basis
to pay allowances/salaries/honoraria/fringe benefits
CASH ADVANCE Cash Advance for Petty Operating Expenses

 sufficient for the recurring expenses of the agency for ONE

MONTH.
 NOT FOR PAYMENT of REGULAR EXPENSES such as
▪ rentals,
▪ subscriptions,
▪ light and water etc
CASH ADVANCE Cash Advance for Petty Operating Expenses

 The PCF shall be maintained under the imprest system.

 The disbursements shall be through the Petty Cash Voucher
(PCV) which shall be approved by the authorized official.
 For NGAs, charges to PCF shall not exceed P15,000.00.
 Splitting of transactions to avoid exceeding the ceiling shall not
be allowed
 MAYBE replenished when the disbursements reach at least 75%,
or as the need requires
CASH ADVANCE Cash Advance for Petty Operating Expenses

 The cash advance shall be supported by the following

documents:
✓ Approved estimate of petty expenses for one month (initial set-up)
CASH ADVANCE Cash Advance for Official Travel

 The grant of cash advance for both official local and foreign
travel shall be governed by the provisions of the following:
✓ Executive Order No. 248 dated May 29, 1994
✓ Executive Order No. 298 dated March 23, 2004
✓ Executive Order No. 77 dated March 15, 2019
 Amount of cash advances should be equal to the amount in the
approved ITINERARY OF TRAVEL
CASH ADVANCE Cash Advance for Official Travel
 The cash advance for Local Travel shall be supported with the
following documents:
 Approved Travel Order
 Approved Itinerary of Travel
 Certification from the Accountant that the previous cash advance has been
liquidated and duly accounted for in the books
 Quotation of plane fare for similar dates, from at least three airline companies.
In case of less than three quotations, a certification by the claimant attesting to
such circumstances, signed by his/her supervisor
 Letter of invitation of the host/ sponsoring agency or organization

Note:

Highlighted in red are the

new / additional
requirements under COA
Circular 2023-004
 MAXIMUM ALLOWABLE DTE
EO No. 77 s. 2019

CLUSTER III (PHP 2,200.00) COMPONENTS OF DTE

1. NCR
TRAVEL
2. REGION 4A 50% - HOTEL
3. REGION 4B
30% - MEALS
CLUSTER II (PHP 1,800.00) 20% - INCIDENTAL EXPENSES
4. CAR
5. REGION VI
6. REGION VII
7. REGION X
8. REGION XI

CLUSTER II(PHP 1,500.00)

9. REGION I
10. REGION II
11. REGION III
12. REGION V
13. REGION VIII
14. REGION IX
15. REGION XII
16. REGION XIII
17. BARMM
CASH ADVANCE Cash Advance for Official Travel
 The cash advance for Foreign Travel shall be supported with the
following documents:
 Duly approved Authority to Travel Abroad
 Approved Itinerary of Travel
 Certification from the Accountant that the previous cash advance has been
liquidated and duly accounted for in the books
 Letter of invitation of the host/sponsoring country/agency/ organization
 Flight itinerary issued by the airline ticketing office/travel agency
 Quotation of plane fare for similar dates, from at least three airline companies.
In case of less than three quotations, a certification by the claimant attesting to
such circumstances, signed by his/her supervisor
 Where applicable, authority to claim representation expenses

In case of Seminar/training:
 Acceptance of nominee/s as participant/s (issued by the host country)
 Programme Agenda and Logistics Information
CASH ADVANCE Cash Advance for Field Current OPEX
 to pay for the wages of field employees
 to pay for miscellaneous operating expenses
 The amount of the cash advance shall be limited to the
requirements for two months.
 The cash advance shall be supported by the following additional
document:
 Approved Budget for COE of the agency field office or agency activity in the field
CASH ADVANCE Cash Advance for Other Special Purpose

 to pay for a specific purpose/activity/event

 The cash advance shall be supported by the following additional
document:
 Approved Activity Design with estimate of expenses
CASH ADVANCE
 LIQUIDATION of Cash Advance
CASH ADVANCE
 Payroll
- Should be liquidated within 5 days after pay period with the following documents:
 Report of Cash Disbursements (RCDisb) certified correct by the accountable officer
 Approved payrolls/vouchers duly acknowledged/signed by the payee/s
 Duly verified/approved accomplishment report, in case of payment of personnel
under the "job order" status
 Official Receipt (OR)/printed electronic Official Receipt (eOR)/Acknowledgement
Receipt (AR) or equivalent in case of refund for unclaimed Salaries, Allowances,
Honoraria and Other Similar Expenses
 Authority from the claimant and identification documents, if claimed by a person
other than the payee
 LIQUIDATION of Cash Advance
CASH ADVANCE
 Petty Operating Expenses
- Should be liquidated within 20 days after end of the year, subject to replenishment as
frequently as necessary during the year
- Should be attached with the following documents upon replenishment/liquidation:
 Report on Paid Petty Cash Vouchers (RPPCV)
 Petty Cash Vouchers (PCVs) duly accomplished, signed and approved
 Approved purchase request with certificate of Emergency Purchase, if necessary
 Bills, receipts, sales invoices
 Certification of Expense not Requiring Receipt (CERR) (for expenses amounting to
P300 or less) or Reimbursement Expense Receipts (RER) (for expenses amounting
to more than P300 but not exceeding Pl,000), pursuant to COA Circular No. 2017-
001 dated June 19, 2017, as amended by COA Circular No. 2021-001 dated June 24,
2021, or other amount that may be prescribed in the future
 LIQUIDATION of Cash Advance
CASH ADVANCE
 Petty Operating Expenses
- Should be attached with the following documents upon replenishment/liquidation:
 Inspection and Acceptance Report (IAR) or Certificate of Inspection and
Acceptance
 Pre-/Post-Repair Inspection Report
 Waste Material Report in case of replacement/ repair
 Approved trip ticket, for gasoline/fuel expenses, together with parking and toll fee
receipts, if any (applicable for government vehicles only)
 Canvass from at least three suppliers for purchases as prescribed (involving P2,000
and above or other amount that may be prescribed in the future), except for
purchases made while on official travel
 Summary/Abstract ofCanvass
 LIQUIDATION of Cash Advance
CASH ADVANCE
 Petty Operating Expenses
- Should be attached with the following documents upon replenishment/liquidation:

 OR/eOR/AR or equivalent in case ofrefund of PCF

 Inventory Custodian Slip (ICS) for semi-expendable items
 For meals and snacks charged to PCF:
o Notice of meeting with agenda/meeting's purpose
o Minutes of Meeting
o Attendance Sheet
 LIQUIDATION of Cash Advance
CASH ADVANCE
 Travel
- Should be liquidated within 30 days for local/ 60 days for foreign travel after return to
his permanent official station with the following documents:
 Liquidation Report
 Approved Certificate ofTravel Completed
 Approved Revised Itinerary of Travel, if the previously approved itinerary was not
followed
 Copy of previously approved Itinerary oftravel
 Copy ofOffice Order and the Supplemental Office Order or any proof supporting
the change of schedule
 LIQUIDATION of Cash Advance
CASH ADVANCE
 Travel
- Should be liquidated within 30 days for local/ 60 days for foreign travel after return to
his permanent official station with the following documents:
 Certificate of Appearance or Attendance r in the absence {hereof, photocopy of the
received copy of Memo Transmittal of Back to Office Report/Narrative Report on
trip undertaken/Report on the Participation addressed to the agency head. The
report, duly noted by the agency head or his authorized representative, shall contain,
among others, the following information:
 Highlights ofthe training/activity;
 Pictures preferably dated; Copy of previously approved Itinerary oftravel
 Plan of action for knowledge sharing; and
 Recommendations
Note:
 OR/eOR3 /AR or equivalent in case of refund of excess cash advance
Highlighted in red are the
new / additional requirements
under COA Circular 2023-004
 LIQUIDATION of Cash Advance
CASH ADVANCE
 Travel
- Should be liquidated within 30 days for local/ 60 days for foreign travel after return to
his permanent official station with the following documents:
 Paper/electronic plane, boat or bus/train tickets, terminal fee receipts,
paper/electronic boarding passes or a passenger manifest certified by the concerned
airline or shipping company
 Certification by the Head ofAgency as to the absolute necessity ofthe expenses
together with the corresponding bills or receipts, if the expenses incurred for the
official travel exceeded the prescribed rate per day (certification or affidavit ofloss
shall not be considered as an appropriate replacement for the required hotel/lodging
bills and receipts)
 OR/eOR or CERR (for expenses amounting to P300 or less) or RER (for expenses
amounting to more than P300 but not exceeding Pl,000), pursuant to COA Circular
No. 2017-001 dated June 19, 2017, as amended by COA Circular No. 2021-001
dated June 24, 2021, or other amount that may be prescribed in the future. In case
ofpayment oftoll fees, the CERR/RER shall be supported with the toll fee rates.
 LIQUIDATION of Cash Advance
CASH ADVANCE
 Others/Special Purpose
 Should be liquidated as soon as the purpose for which it was given has been served
 For liquidation, same requirements as those for salaries, petty operating expenses,
other personnel services, and maintenance and other operating expenses depending
on the nature of expenses incurred.
CASH ADVANCE
CASH ADVANCE
CASH ADVANCE