The New

Barangay
Accounting
System

Basic Feature and Policies

1. Accounting Method
.IPASBs Conceptual Framework
- deals with concepts that apply to
general purpose financial reporting
under the accrual basis of accounting.
.Under this method, the transactions and
events are recorded in the accounting
records and recognized in the financial
statements of the periods to which they
relate.

Basic Feature and Policies

2. Recognition of Liability
. Liabilities shall be taken up only for
goods actually delivered and accepted
or services rendered or upon receipt of
bills from suppliers/creditors.
3. Purchase of Supplies and Materials and
Small Items
. Purchase of Supplies and Materials and
Small Items with serviceable life of
more than one year shall be recorded
as Inventories upon acquisition and
Expense upon issuance. Other tangible
assets not included in the list shall be

Basic Feature and Policies

4. Cash Advance
. Cash Advance for payment of personnel
services shall be accounted for as
Advances for Payroll; while cash
advance for travel and other special timebound undertaking shall be accounted for
as Advances to Officers and Employees.
5. Audit Disallowances
. Shall be recorded only when they become
final and executory.

Basic Feature and Policies

6. Barangay Accounts
. Shall be kept within the
framework of the New Government
Accounting System (NGAS) chart
of accounts.

Basic Feature and Policies

7. Processing of Transaction and
Recording in the Books
Barangay Level
Processing Transaction

Submits report
Keeps the reports and
documents supporting
entries in the reports

City/ Municipal
Accountant
Recording in the books
through Journal Entry
Voucher
Keeps financial records

Basic Feature and Policies

8. Certified Registers
. Cash Receipts Registers
. Cash on Hand and in Bank Registers
. Cash Disbursement Registers
. Check Disbursement Registers
. Petty Cash fund Registers
9. Status of Appropriations, Commitments
and Balances
. Shall be consolidated by the
City/Municipal Budget Officer.

Basic Feature and Policies

10.Trial Balance shall be presented in
two money column format;
11.Financial Statements the
city/municipal level accountant shall
prepare the financial statements (FS)
within thirty days after the close of
each month. Copies are furnished to
the Sangguniang Barangay and the
audit team leader;

Basic Feature and Policies

The FS shall include detailed and condensed
copies of the Balance Sheet and the Income
and Expense Summary. Other FS includes
Cash Flows prepared under the direct
method and Statement of Changes in
Government Equity.
12.Supporting Schedules the barangay shall
prepare the following supporting schedules
relating to: Public Infrastructures and
Reforestation Projects; Accounts Payable,
and Accounts Receivable.

Basic Feature and Policies

13.E-NGAS the new electronic system
shall be used to speed up the
recording of transactions at the
barangay and to hasten the process
of consolidation of financial
statements at all levels.

Barangay Accounting
System Plan

Shows the accounting flow of barangay

transactions in the books maintained
by the City/Municipal accountant.
It includes:
Receipts and Deposits
Disbursement (Cash or Check)
Public Infrastructures and Reforestation
Projects
Registries of Public Infrastructures and
Reforestation Projects

Major Financial Transactions

Appropriations- Appropriations are funds
that are authorized by the Sanguaniang
Bayan or the local legislative body to
spend funds for a project or undertaking
where services or goods have already
been received. Appropriations are
charged against several sources: General
Fund, 20% Development Fund, Calamity
Fund, Sangguniang Kabataan Fund, and
Gender and Development Fund.

Appropriation
Illustrations:
On January 2, 2014, the Barangay Jose
Rizal of Dinalupihan, Bataan receives
of copies of General Appropriation
Ordinance (GAO) for the following
approved appropriations for the fiscal
year:

Appropriation
General Fund:
Personnel Services
P60000
Maintenance and other operating expenses
25000
Financial Services
2500
Capital Outlay
32000
Calamity Fund
10000
20% Development Fund
40000
Sangguniang Kabataan Fund
20000
Gender and Development Fund
10000

Appropriation
Journal Entry/ Memo Entry
To record approved appropriations in
the respective Registry of
Appropriations and Commitments
Registry of Appropriations and Commitments-General Fund
PERSONNEL SERVICES
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date Particula
rs

Re
f

Appro
.

Salaries
and
WagesRegular

Salari
es
and
Wage
sCasua

Commitme
nts

Balan
ce

Registry of Appropriations and Commitments-General Fund

MAINTENANCE AND OTHER OPERATING EXPENSES
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date Particula
rs

Re
f

Appro Repairs Repairs

.
& Maint.&
IT
Maint.Equipt.
Motor
Vehicle

Commitme
nts

Balan
ce

1/2

GAO 0125000
25000
07
Registry of Appropriations and Commitments-General Fund
FINANCIAL SERVICES
For the year Calendar Year 2014
Municipality: Dinalupihan

Barangay: Jose Rizal

Province: Bataan
Date

Particula
rs

1/2

GAO 0107

Re
f

Appro
.
2500

Bank
Charges

Doc.
Stamp

Commitme
nts

Balan
ce
2500

Registry of Appropriations and Commitments-General Fund

CAPITAL OUTLAY
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date Particula
rs

Re
f

Appro
.

IT
equipt.

Motor
Vehicl
e

Commitme
nts

Balan
ce

1/2

GAO 0132500
32500
07
Registry of Appropriations and Commitments-Calamity Fund
For the year Calendar Year 2014
Municipality: Dinalupihan

Barangay: Jose Rizal

Province: Bataan
Date

Particula
rs

1/2

GAO 01-

Re
f

Appro
Food
Medical
.
Supplie
&
s
Dental
Supplie
s
1000

Commitme
nts

Balan
ce

10000

Registry of Appropriations and Commitments-20%

Development Fund
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date

Particula
rs

Re
f

Appro
.

Repairs
& Maint.
-Roads

Commitme
nts

Balan
ce

1/2 GAO 011000

10000
07of Appropriations
0
Registry
and Commitments-Sangguniang
Kabataan Fund
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date

Particula
rs

1/2

GAO 0107

Re
f

Appro
.
2000
0

Office
equipt.

Supplie
s&
Matls

Commitme
nts

Balan
ce
20000

Registry of Appropriations and Commitments-Gender and

Development Fund
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date

Particula
rs

1/2

GAO 0107

Re
f

Appro
.

1000
0

Salaries
and
WagesRegular

Salari
es
and
Wages
Casua
l

Commitme
nts

Balan
ce

10000

Major Financial Transactions

Commitments- are specific funds that
are earmarked by an authorized
barangay official that commits the
barangay to pay a specific sum of money.
Charges for the specific fund shall be
based upon the commitment of funds by
the barangay as evidenced by Contracts
and Purchase orders, Disbursement
vouchers, and Payroll for specific
services.

Commitments
Illustrations:
On January 15, 2014, the Barangay Jose Rizal incurred the
following commitments/charges:
General Fund:
Salaries & wages-regular P20000
Repairs of office equipment
12000
Supplies and Materials
5000
Bank charges
250
IT equipments
22500
Calamity Fund-Medical & dental supplies
5000
20% Development Fund- Repairs of Roads
25000
Sangguniang Kabataan Fund -Office equipment
15000
Gender and Development Fund-Salaries Regular
3500

Commitments
Journal entry/Memo entry
To record commitment/charges
incurred.
Registry of Appropriations and Commitments-General Fund
PERSONNEL SERVICES
For the year Calendar Year 2014

Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date Particula
rs

1/2

GAO 0107

Re
f

Appro
.

60000

Salaries
and
WagesRegular

Salari
es
and
Wage
sCasua
l

Commitme
nts

Balan
ce

60000

Registry of Appropriations and Commitments-General Fund

MAINTENANCE AND OTHER OPERATING EXPENSES
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Dat
e

Particula
rs

1/2

GAO 0107

Ref

Appr
o.

Repairs &
Maint.- IT
Equipt.

Repairs &
Maint.Motor
Vehicle

Commitme
nts

2500
0

Balan
ce

25000

1/1 Comput
12000
12000
13000
5 Registry
er of Appropriations and Commitments-General Fund
FINANCIAL SERVICES
repairs
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Dat
e

Particula
rs

1/2

GAO 0107

Ref

Appr
o.
2500

Bank
Charges

Doc.
Stamp

Commitme
nts

Balan
ce
2500

Registry of Appropriations and Commitments-General Fund

CAPITAL OUTLAY
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date Particula
rs

Re
f

Appro
.

IT
equipt.

Motor
Vehicl
e

Commitme
nts

Balan
ce

1/2

GAO 0132500
32500
07
Registry
of Appropriations22500
and Commitments-Calamity
Fund
1/15
Comput
22500
10000
For the year Calendar Year 2014
er
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date

Particula
rs

1/2

GAO 01-

Re
f

Appro
Food
Medical
.
Supplie
&
s
Dental
Supplie
s
1000

Commitme
nts

Balan
ce

10000

Registry of Appropriations and Commitments-20%

Development Fund
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date

Particula
rs

1/2

GAO 0107

Re
f

Appro
.

Repairs
& Maint.
-Roads

Commitme
nts

1000
0

Balan
ce
10000

1/15 Minor
25000
25000
15000
Registry
of Appropriations and Commitments-Sangguniang
repairsKabataan Fund
road
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date

Particula
rs

1/2

GAO 01-

Re
f

Appro
.
2000

Office
equipt.

Supplie
s&
Matls

Commitme
nts

Balan
ce
20000

Registry of Appropriations and Commitments-Gender and

Development Fund
For the year Calendar Year 2014
Municipality: Dinalupihan
Barangay: Jose Rizal
Province: Bataan
Date

Particula
rs

1/2

GAO 0107

1/15 Jan.
salariesreg.

Re
f

Appro
.

Salaries
and
WagesRegular

Salari
es
and
Wages
Casua
l

Commitme
nts

1000
0

Balan
ce

10000
3500

3500

6500

Major Financial Transactions

Receipts and Deposits collections
made for local licenses and fees shall
be deposited intact in the next
banking day

Receipts and Deposits

Illustrations:
During January, the Barangay Jose Rizal made the
following collections and remitted/deposited the
same to city treasurer and AGDB, respectively.
Community tax certificate
20000
(as deputize by city treasurer)
Barangay:
Permit fee
5000
Clearance and Certificate fees
8000
Garbage fees
10000

Receipts and Deposits

Journal entry:
To record the collections
Jan. Cash in Vault

25000

Due to LGU

2000

Permit fees

5000

Clearance and certificate

fees

8000

Garbage fees

10000

Receipts and Deposits

Journal entry:
To record remittance of collection to city
Jan.
Due to LGU
2000
treasurer
Cash in Vault

2000

Jan.
To record
deposit of collection2000
to AGDB
Due to LGU
Cash in Vault

2000

Major Financial Transactions

Disbursements payments of local
government expenses used for day
to day operations.

Major Financial Transactions

Supplies and Materials; Plant,
Property and Equipment, Public
Infrastructure and Reforestation- are
charged against their respective
appropriations and capital outlay

Trial Balance an Adjusting/ Closing

Entries
Types of Trial Balance
1. Pre-Closing Trial Balance
-prepared after all the adjusting entries have
been recorded in the general journal and the
accounts are posted to the General Ledger and
respective Subsidiary Ledger.

2. Pre-Closing Trial Balance

-prepared at the year-end after all the closing
journal entries have been recorded in
General Journal and the accounts are posted
to the General Ledger.

Trial Balance an Adjusting/ Closing

Entries
Adjusting Journal Entries
Closing Journal Entries
-prepared to close the balance of
nominal accounts.

Financial Statements and

Supporting Schedules
Balance Sheet
A formal statement showing financial condition
of the barangay as of a particular date.

Statement of Income and Expense

A statement showing the results of the
operations of the barangay for a particular
period.

Statement of Cash Flows

A statement summarizing all cash transaction
of the barangay.

Financial Statements and

Supporting Schedules
Statement of Change in Government
Equity
A statement showing the result or
changes on Government Equity account
as of given period

Notes to Financial Statements

An Integral part of the financial
statements.