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All revenues accruing to the NGAs shall be governed by the following fundamental principles:
a. Unless otherwise specifically provided by law, all revenues accruing to an entity by virtue of the provisions
of existing law, orders and regulations shall be deposited/remitted in the National Treasury (NT) or in any
duly authorized government depository, and shall accrue to the General Fund (GF) of the NG.
(Sec. 65(1), P.D. No. 1445)
b. Except as may otherwise be specifically provided by law or competent authority, all moneys and property
officially received by a public officer in any capacity or upon any occasion must be accounted for as
government funds and government property. (Sec. 42, Chapter 7, Title I(B), Book V, E.O. No. 292)
c. Amounts received in trust and from business-type activities of government may be separately recorded and
disbursed in accordance with such rules and regulations as may be determined by a Permanent Committee
composed of the Secretary of Finance as Chairman, and the Secretary of Budget and Management and the
Chairman, COA, as members. (Sec. 65(2), P.D. No. 1445)
d. Receipts shall be recorded as revenue of Special, Fiduciary or Trust Funds or Funds other than the GF, only
when authorized by law as implemented by rules and regulations issued by the Permanent Committee.
(Sec. 66, P.D. No. 1445)
e. No payment of any nature shall be received by a collecting officer without immediately issuing an official
receipt in acknowledgement thereof. The receipt may be in the form of postage, internal revenue or
documentary stamps and the like, officially numbered receipts, subject to proper custody, accountability,
and audit. (Sec. 68(1), P.D. No. 1445)
f. Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash receipts, the COA
may approve, upon request, exemption from the use of accountable forms. (Sec. 68 (2), P.D. No. 1445)
g. At no instance shall temporary receipts be issued to acknowledge the receipt of public funds. (Sec. 72,
GAAM Volume I)
h. Pre-numbered ORs shall be issued in strict numerical sequence. All copies of each receipt shall be exact
copies or carbon reproduction in all respects of the original. (Sec. 73, GAAM Volume I)
i. An officer charged with the collection of revenue or the receiving of moneys payable to the government
shall accept payment for taxes, dues or other indebtedness to the government in the form of checks issued
in payment of government obligations, upon proper endorsement and identification of the payee or
endorsee. Checks drawn in favor of the government in payment of any such indebtedness shall likewise be
accepted by the officer concerned. At no instance should money in the hands of the CO be utilized for the
purpose of cashing private checks. (Sec. 67(1) and (3), P.D. No. 1445)
j. Under such rules and regulations as the COA and the Department of Finance (DOF) may prescribe, the
Treasurer of the Philippines and all AGDB shall acknowledge receipt of all funds received by them, the
acknowledgement bearing the date of actual remittance or deposit and indicating
The Income, collection and deposit system covers the processes of acknowledging and reporting
income/collections, deposits of collections with Authorized Government Depository Bank (AGDB) or through the
AGDB for the account of the Treasurer of the Philippines, and recording of collections and deposits in the books
of accounts of the agency.
2. Modified Accrual income of an agency is recorded as Deferred Credits to Income and the
appropriate receivable account is debited. The income account is recognized upon
receipt of collection and the Deferred Credits to Income account is adjusted
accordingly.
3. Cash Basis - shall be used for all other taxes, fees, charges and other revenues where accrual
method is impractical. The income account is credited upon collection of the cash
or its equivalent.
All collecting officers shall deposit intact all their collections with AGDB daily or not later than the next
banking day and shall record all the deposits made in the Cash Receipts Record.
Ledgers:
General Ledger (GL)
Subsidiary Ledgers (SL)
1. The Collecting Officer (CO)receives payment from creditors and issues Official Receipt.
2. The CO records collections in Cash Receipt Record.
3. The CO deposits collections.
4. The CO records deposit in Cash Receipt Record.
5. The CO prepares the Report of Collections and Deposits and forwards to accounting unit with copies of
official receipts and validated Deposit Slips.
6. The accounting unit prepares Journal Entry Voucher (JEV) and records in the Cash Receipts Journal.
As a general rule, all revenues regardless of amount and frequency of collection are to be
remitted to the National Treasury. NG books shall be discontinued.
For agencies which are authorized to use income for their operations, the collections shall be
recorded as income in the Regular Agency (RA) books
5Release of NCA by DBM after request is made to the Bu of Treasury to use the deposited
collections as augmentation of MOOE.
If the authority is subject to the limitation that any excess shall be remitted to the
National Treasury, such collections, ex.seminar and convention fees, the collections shall be
recorded in the RA books. The expenses shall be journalized, the balance/excess to be
remitted to the National Treasury.
D. Cash from another agency to implement its project (Inter-agency Transferred Funds). Under
existing regulations, the collections made by an Implementing Agency (IA) of cash from a
source agency (SA) to implement the latters project shall be remitted by the recipient agency,
the IA, to the BTr. The IA shall request the necessary NCA from the DBM)