Document

: PM-FCD-06 Eff. Date : 06-04-18

No.
PROCEDURES MANUAL
Revision No. : 02 Pages : 1 of 10

DISBURSEMENT

I. OBJECTIVE

This procedure defines the system of disbursement of Kabacan Water District funds to ensure
fiscal administration and compliance with applicable government rules and regulation.

II. SCOPE

This procedure covers the entire disbursement transactions of Kabacan Water District.

III. RESPONSIBILITY AND RESOURCES

Head/Staff of the Requesting Division

Accounting Processor (Accounting Unit)
Corporate Accounts Analyst
Board of Directors
Finance & Commercial Division (FCD) Manager
General Manager
Accounting Processor (Cash Management Unit)
Cashier
Check Signatories

IV. DEFINITION OF TERMS

Supporting Documents – documentary requirements for government expenditures

Budget Utilization Slip (BUS) – form used when there is an incurrence of expenditures
Disbursement Voucher (DV) – a form used for payment of expenditures which can not be paid
using the petty cash fund
Withholding Tax – a government requirement for the payer of an item of income to withhold
or deduct tax from the payment, and pay/remit that tax to the government
Document Return Slip – a form used to return documents to the requester or initiator due to its
incomplete details and/or attachments

Prepared by: Approved by:

CORAZON M. FRIGILLANA FERDIE MAR S. BALUNGAY
Process Owner General Manager
 Document
: PM-FCD-06 Eff. Date : 06/04/18
No.
PROCEDURES MANUAL
Revision No. : 02 Pages : 2 of 10

DISBURSEMENT

V. REFERENCE DOCUMENTS

Government Accounting Manual (GAM)

COA Circular No. 2012-001 dated June 14, 2012 (Revised Documentary Requirements for
Common Government Transactions)
KWD Office Order No. 014 Series of 2017 (An Order Creating the Document Return Slip and
Requiring its Utilization in Processing Various Office Transactions of the Kabacan Water District)
COA Circular 2015-010 dated Dec. 10, 2015 (Revised Government Chart of Accounts for
Government Corporations)
National Internal Revenue Code
KWD Office Order No. 004 Series of 2018 (An Order Delegating the Authority of the General
Manager to FCD Manager in the Approval of Check Disbursement Vouchers)

VI. RECORDS GENERATED

• Disbursement Voucher (DV)

• Registry of Budget Utilization
• Budget Utilization Slip (BUS)
• Document Return Slip (DRS)
• Request for Supplemental Budget/Budget Realignment
• BOD Resolution approving/disapproving the Supplemental Budget/Budget Realignment
• Bureau of Internal Revenue (BIR) Alphabetical List (Alpha List) of Payees
• BIR Form 2306/2307
• Disbursements Journal
• BIR Electronic Filing & Payment System (EFPS) Payment Confirmation Slip
• Land Bank of the Philippines (LBP) We Access Transaction Reference
• Report of Checks Issued
• Issued check / check duplicate
• Logbook of released check
• bank-validated deposit slip / Official Receipt (proofs of payment)

Prepared by: Approved by:

CORAZON M. FRIGILLANA FERDIE MAR S. BALUNGAY
Process Owner General Manager
 PROCEDURES MANUAL
DISBURSEMENT

VII. PROCEDURES DETAILS AND FLOW

No. Process Flow Description of Activity Guidelines/Criteria/Policy Responsible Person Retained Information
1 1.1 Submit supporting documents Government Accounting Manual 1.1 Head/Staff of
for expenditures (GAM); complete supporting Requesting Division
START documents per COA Circular No.
1.2 Receive supporting documents 2012-001 dated June 14, 2012 1.2 Accounting Processor
for expenditures (Accounting Unit)
Receive supporting documents

2 1.1 If supporting documents are KWD Office Order No. 014 Document Return Slip
No complete, proceed to Step 3 Series of 2017
Supporting
documents 1.2 If supporting documents are
complete? incomplete, return to requesting
division

Yes

3 3.1 Prepare BUS Government Accounting Manual 3.1 Accounting Processor Registry of Budget
(GAM) (Accounting Unit) Utilization; Budget
Prepare Budget Utilization 3.2 Certify in Section A of the BUS Utilization Slip
Slip (BUS) as to the necessity and legality of 3.2 Manager of the
charges to the budget under his/her requesting division
supervision.
A

Doc No. : PM-FCD-06 PROPRIETARY NOTICE Eff. Date : 06/04/18

THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO KABACAN WATER DISTRICT. ANY DISCLOSURE
Rev. No. : 02 OR USE IS EXPRESSLY PROHIBITED EXCEPT UPON WRITTEN PERMISSION BY KABACAN WATER DISTRICT. Pages : 3 of 10
 PROCEDURES MANUAL
DISBURSEMENT

No. Process Flow Description of Activity Guidelines/Criteria/Policy Responsible Person Retained Information
4 Determine availability of funds 4.1 Availability of Funds Corporate Accounts Budget Utilization Slip
A Analyst
4.2 Approved Annual Budget

Funds Available?

Yes No

5 Provide justification for budget The requesting division shall Manager of the Request for Supplemental
adjustment and prepare request propose the source of funds to requesting division Budget/Budget
be realigned/supplemented Realignment
Request for budget
adjustment

6 6.1 Present request for budget 6.1 Manager of the Request for Supplemental
adjustment to the General Manager requesting division Budget/Budget
for approval Realignment
Approved? 6.2 General Manager approved/disapproved by
6.2 Approve/disapprove request the General Manager
Yes No

C END
B

Doc No. : PM-FCD-06 PROPRIETARY NOTICE Eff. Date : 06/04/18

THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO KABACAN WATER DISTRICT. ANY DISCLOSURE
Rev. No. : 02 OR USE IS EXPRESSLY PROHIBITED EXCEPT UPON WRITTEN PERMISSION BY KABACAN WATER DISTRICT. Pages : 4 of 10
 PROCEDURES MANUAL
DISBURSEMENT

No. Process Flow Description of Activity Guidelines/Criteria/Policy Responsible Person Retained Information
7 Present Budget Adjustment to the General Manager Minutes of the BOD
C Board of Directors Meeting
B

Presentation of Budget
Adjustment to the Board
of Directors

8 Approve/disapprove Budget Board of Directors Board Resolution

Adjustment approving/disapproving the
Approved? Supplemental
No Budget/Budget
Realignment; Minutes of
END the BOD Meeting
Yes

9 Certify availability of funds 9.1 Availability of Funds Corporate Accounts Budget Utilization Slip
Analyst
Certify Availability 9.2 Approved Annual Budget
of Funds

Doc No. : PM-FCD-06 PROPRIETARY NOTICE Eff. Date : 06/04/18

THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO KABACAN WATER DISTRICT. ANY DISCLOSURE
Rev. No. : 02 OR USE IS EXPRESSLY PROHIBITED EXCEPT UPON WRITTEN PERMISSION BY KABACAN WATER DISTRICT. Pages : 5 of 10
 PROCEDURES MANUAL
DISBURSEMENT

No. Process Flow Description of Activity Guidelines/Criteria/Policy Responsible Person Retained Information
10 10.1 Encode withholding tax in the National Internal Revenue Code Accounting Processor BIR Alpha List; BIR Form
D BIR Alpha List System of 1997 (Accounting Unit) 2306/23017

10.2 Print and attach Bureau of

Internal Revenue (BIR) withholding
Tax Withheld?
No tax Forms (2306 and/or 2307) to the
Yes
supporting documents
Compute Tax withheld

11 11.1 Print DV with journal entries 11.1.Revised Government Chart 11.1 Accounting Disbursement Voucher;
of Accounts (RCA) Processor (Accounting Disbursements Journal
11.2 Encode payee details and
Unit)
Prepare Disbursement Voucher (DV) transaction journal entries in the 11.2 All Disbursement Vouchers
Disbursements Journal shall be recorded in the 11.2 Corporate Accounts
Disbursements Journal Analyst

12 Check and certify the DV and 12.1 Supporting documents 12.1 Corporate Accounts Disbursement Voucher
No Journal Entry Voucher (JEV) complete and proper Analyst
Certified? 12.2 Accuracy of the certification 12.2 FCD Manager
made by the Corporate Accounts
Yes Analyst and accuracy of the
journal entries
E F

Doc No. : PM-FCD-06 PROPRIETARY NOTICE Eff. Date : 06/04/18

THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO KABACAN WATER DISTRICT. ANY DISCLOSURE
Rev. No. : 02 OR USE IS EXPRESSLY PROHIBITED EXCEPT UPON WRITTEN PERMISSION BY KABACAN WATER DISTRICT. Pages : 6 of 10
 PROCEDURES MANUAL
DISBURSEMENT

No. Process Flow Description of Activity Guidelines/Criteria/Policy Responsible Person Retained Information
13 Approve the DV KWD Office Order No. 004 FCD Manager Disbursement Voucher
E F Series of 2018

No
Approved?
Yes

14 14.1 Prepare check/electronic 14.1 Checks shall be drawn only Accounting Processor Check duplicate;
payment based on approved DV: on duly approved DV (Cash Management Unit) EFPS Payment
14.1 Prepare check for check 14.2 Guidelines on BIR Confirmation Slip; LBP We
Check or disbursements Electronic Filing & Payment
14.2 Prepare electronic payment for System (EFPS), Pag-IBIG HDMF Access Transaction
electronic
Electronic BIR, Pag-IBIG HDMF, Land Bank of Electronic Payment & Collection Reference (bills payment /
Payment /
fund transfer? payment/ the Philippines (LBP) automated Facility (EPCF), LBP We Access, automated payroll / fund
Fund payroll, fund transfer, & other fund transfer, & other applicable transfer)
Transfer applicable transactions transactions
14.4 Update the Advice Book
check
Prepare electronic
payment/
Prepare check fund transfer

G H

Doc No. : PM-FCD-06 PROPRIETARY NOTICE Eff. Date : 06/04/18

THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO KABACAN WATER DISTRICT. ANY DISCLOSURE
Rev. No. : 02 OR USE IS EXPRESSLY PROHIBITED EXCEPT UPON WRITTEN PERMISSION BY KABACAN WATER DISTRICT. Pages : 7 of 10
 PROCEDURES MANUAL
DISBURSEMENT

No. Process Flow Description of Activity Guidelines/Criteria/Policy Responsible Person Retained Information
15 Verify entries on check / electronic Details of check / electronic Cashier Check duplicate;
G H payment / fund transfer payment / fund transfer shall EFPS Payment
coincide with details on the Confirmation Slip; LBP We
No approved Disbursement Voucher
(e.g. date, payee, amount) Access Transaction
Verified? Reference

Yes

16 16.1 Approve and sign check Authorized signatories Check duplicate

16.2 Return the signed check to the
Sign check Cashier

17 17.1 Release check and BIR Form
2306/2307 to the payee
17.1.1 Release check and BIR
form 2306/2307 to the payee or
representative; or
17.1.2 Deposit check to payee's
Release check bank account; e-mail deposit slip
and BIR form 2306/2307 to the
payee
17.2 Issue official receipt (O.R.);
sign DV and BIR form 2306/2307
17.3 Verify validity and accuracy of
official receipt issued by the payee
I 17.4 Stamp “PAID” the DV and its
attachments & forward to the
17.1Release check on or before Logbook of released
due date for transactions with checks; bank-validated
due date; for transactions without 17.1 / 17.3 Cashier deposit slip; Official
due date: Receipt; sent item in
- immediate payment (release 17.2 Payee Cashier's email account;
within the day) paid DV with complete
17.4 Accounting
- regular transactions (release attachments
within three days from approval Processor (Cash
of check) Management Unit
17.1.1 Payee's identification shall
be verified, and payee shall sign
the “Received Payment” portion
of the DV and “Conforme”
portion of BIR 2306/2307 (for
check personally released to

Doc No. : PM-FCD-06 PROPRIETARY NOTICE Eff. Date : 06/04/18

THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO KABACAN WATER DISTRICT. ANY DISCLOSURE
Rev. No. : 02 OR USE IS EXPRESSLY PROHIBITED EXCEPT UPON WRITTEN PERMISSION BY KABACAN WATER DISTRICT. Pages : 8 of 10
 PROCEDURES MANUAL
DISBURSEMENT

Accounting Unit payee)

No. Process Flow Description of Activity Guidelines/Criteria/Policy Responsible Person Retained Information
16.1.2 Check shall be deposited
to the correct bank account of
I payee, and copy of bank-
validated deposit slip and BIR
Forms shall be emailed to the
payee
16. 2 /16.3 All applicable
payments shall be issued a valid
and accurate O.R. by the payee
16.4 DV and attachments shall
be stamped “PAID” right after
payment is made
18 Receive & file the DVs with File monthly DV within the Accounting Processor Disbursement Vouchers
complete attachments current month up to the 3rd week (Accounting Unit) and complete attachments
File Disbursement Voucher (DV) of the immediately succeeding (duplicate copy)
month - original copy for
Commission on Audit (COA);
duplicate copy for Accounting
Unit

19 Monitor if all checks are All checks are released/paid on Cashier Logbook of released
released/paid on time time (see 16.1 checks

Monitor release/payment of checks Guidelines/Criteria/Policy)

Doc No. : PM-FCD-06 PROPRIETARY NOTICE Eff. Date : 06/04/18

THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO KABACAN WATER DISTRICT. ANY DISCLOSURE
Rev. No. : 02 OR USE IS EXPRESSLY PROHIBITED EXCEPT UPON WRITTEN PERMISSION BY KABACAN WATER DISTRICT. Pages : 9 of 10
 PROCEDURES MANUAL
DISBURSEMENT

No. Process Flow Description of Activity Guidelines/Criteria/Policy Responsible Person Retained Information
20 19.1 Receive Report of Checks Report of Checks Issued is Cashier; Report of Checks Issued
J Issued from the Cashier prepared daily and submitted to FCD Manager
the FCD Manager on the next
19.2 Verify if all DVs prepared were
working day
issued a check / paid electronically

Monitor status of disbursement 19.3 Verify if all checks are released

/ electronic payments are made
within the required period (see 16.1
Guidelines/Criteria/Policy)
END

Doc No. : PM-FCD-06 PROPRIETARY NOTICE Eff. Date : 06/04/18

THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO KABACAN WATER DISTRICT. ANY DISCLOSURE
Rev. No. : 02 OR USE IS EXPRESSLY PROHIBITED EXCEPT UPON WRITTEN PERMISSION BY KABACAN WATER DISTRICT. Pages : 10 of 10