GAM for NGAs Reviewer: Chapters 1-6

Chapter 1: Introduction
• Purpose of the GAM:
• To harmonize existing accounting standards with international accounting
standards due to Philippine Public Financial Management Reforms and
changes in accounting.
• To revise the New Government Accounting System (NGAS) Manual (COA
Circular No. 2002-002) to be more responsive to dynamic changes and
modern technology.
• Legal Basis:
• Prescribed by the Commission on Audit (COA) pursuant to Article IX-D,
Section 2 par. (2) of the 1987 Constitution of the Republic of the
Philippines.
• COA has exclusive authority to define audit scope, establish techniques,
and promulgate accounting and auditing rules.
• Coverage:
• Presents basic accounting policies and principles in accordance with
Philippine Public Sector Accounting Standards (PPSAS) adopted via COA
Resolution No. 2014-003.
• Includes the Revised Chart of Accounts (RCA) prescribed by COA
Circular No. 2013-002.
• Covers accounting procedures, books, registries, records, forms, reports,
and illustrative accounting entries.
• Usage: To be used by all NGAs for:
• Preparation of general purpose financial statements (GPFS) in
accordance with PPSAS.
• Reporting of budget, revenue, and expenditure.
• Objective of the Manual:
• To update standards, policies, guidelines, and procedures for accounting
government funds and property.
• To update coding structure and accounts.
• To update accounting books, registries, records, forms, and financial
statements.
Chapter 2: General Provisions, Basic Standards and Policies
• Scope: Covers general provisions from existing laws, rules, and regulations, and
fundamental accounting principles for financial reporting by NGAs.
• Key Definitions:
• Accrual basis: Transactions and events are recognized when they occur,
not just when cash is received or paid. Elements recognized are assets,
liabilities, net assets/equity, revenue, and expenses.
• Assets: Resources controlled by an entity from past events, expected to
yield future economic benefits or service potential.
• Contributions from owners: Future economic benefits contributed by
external parties (not liabilities) that establish a financial interest in net
assets/equity.
• Distributions to owners: Future economic benefits distributed by the
entity to owners as return on or return of investment.
• Entity: A government agency, department, or operating/field unit.
• Expenses: Decreases in economic benefits or service potential during the
reporting period (outflows/consumption of assets or incurrence of
liabilities) that decrease net assets/equity, excluding distributions to
owners.
• Government Accounting: Analyzing, recording, classifying,
summarizing, and communicating transactions involving government
funds and property, and interpreting results (Sec. 109, P.D. No. 1445).
• Government Budget: Financial plan for a given period (usually fiscal
year) showing resources and their generation/use. Key instrument for
socio-economic objectives.
• Liabilities: Firm obligations from past events, settlement expected to
result in outflow of economic benefits or service potential.
• Net assets/equity: Residual interest in assets after deducting all
liabilities.
• Revenue: Gross inflow of economic benefits or service potential during
the reporting period that increases net assets/equity, excluding
contributions from owners.
• Revenue funds: All funds from government agency income available for
appropriation/expenditure (Sec. 3, P.D. No. 1445).
• Responsibility, Accountability, and Liability over Government Funds and
Property:
 • Responsibility: State policy dictates efficient, economical, and effective
management of government resources. Chief/head of agency is
immediately and primarily responsible. Fiscal responsibility is shared.
• Accountability: Every officer with possession/custody of funds/property is
accountable and must be bonded. Transfer of funds requires COA
direction/authorization and proper invoice/receipt.
• Liability: Expenditures in violation of law/regulations incur personal
liability. Accountable officers are liable for losses from unlawful
deposit/use or negligence. Officers directing illegal payments are primarily
liable; AOs failing to notify are secondarily liable. Loss in transit/force
majeure requires immediate COA notification and application for relief
within 30 days.
• Fundamental Principles for Revenue:
• All revenues accrue to the General Fund (GF) and must be deposited in
the National Treasury (NT) or authorized depository, unless specifically
provided by law.
• All officially received moneys/property must be accounted for as
government funds/property.
• Trust funds and business-type activities can be separately
recorded/disbursed per Permanent Committee rules.
• Receipts are recorded as revenue of Special, Fiduciary, or Trust Funds
only when authorized by law and Permanent Committee rules.
• Official receipts must be issued immediately for all payments.
• COA may approve exemption from accountable forms for mechanical
devices (e.g., electronic official receipt).
• Temporary receipts are prohibited.
• Pre-numbered ORs must be issued in strict numerical sequence.
• Collecting officers must accept checks for government obligations; cash
cannot be used to cash private checks.
• Treasurer of the Philippines and AGDBs must acknowledge receipts with
date, source, and account.
• Fundamental Principles for Disbursement of Public Funds (Sec. 4, P.D. No.
1445):
• No money paid out without appropriation law or specific statutory
authority.
• Funds/property used solely for public purposes.
• Trust funds spent only for their specific purpose.
 • Fiscal responsibility shared by all exercising authority over financial affairs.
• Disbursement/disposition must have proper official approval.
• Claims against funds must have complete documentation.
• All applicable laws/regulations must be adhered to.
• Generally accepted accounting principles and sound management/fiscal
administration observed, provided they don't contravene existing laws.
• Basic Government Accounting and Budget Reporting Principles:
• Generally accepted government accounting principles (PPSAS and
pertinent laws).
• Accrual basis of accounting (PPSAS).
• Budget basis for budget information presentation (PPSAS 24).
• Revised Chart of Accounts (RCA) prescribed by COA.
• Double entry bookkeeping.
• Financial statements based on accounting and budgetary records.
• Fund cluster accounting.
• Keeping of the General Accounts: COA keeps general accounts and
preserves vouchers/supporting papers.
• Financial Reporting System for the National Government:
• NG entities maintain complete accounting books by fund cluster,
reconciled with BTr cash transactions.
• BTr accounts for cash, public debt, and related transactions.
• Entities maintain budget registries reconciled with DBM and COA's
Government Accountancy Sector (GAS).
• COA (through GAS):
• Maintains budget records (approved budget, execution).
• Consolidates FSs and budget accountability reports for Annual
Financial Report (AFR).
• Prepares other required financial reports.
• Objectives of General Purpose Financial Statements (GPFS):
• Provide information on financial position, performance, and cash flows
useful for resource allocation decisions.
• Demonstrate accountability for entrusted resources.
• Responsibility for Financial Statements:
 • Individual entity/department FSs: Head of entity/department (COf, RO,
OU) or authorized representative, jointly with head of finance/accounting.
• Department/entity FSs as a single entity: Head of entity/department
COf, jointly with head of finance unit.
• Components of General Purpose Financial Statements:
• Statement of Financial Position (Annex A)
• Statement of Financial Performance (Annex B)
• Statement of Changes in Net Assets/Equity (Annex C)
• Statement of Cash Flows (Annex D)
• Statement of Comparison of Budget and Actual Amounts (Annex E)
• Notes to the Financial Statements (summary of significant accounting
policies and other explanatory notes) (Annex F).
• Books of Accounts and Registries:
• Journals: General Journal, Cash Receipts Journal, Cash Disbursements
Journal, Check Disbursements Journal.
• Ledgers: General Ledgers, Subsidiary Ledgers.
• Registries: Registries of Revenue and Other Receipts, Registry of
Appropriations and Allotments, Registries of Allotments, Obligations and
Disbursements, Registries of Budget, Utilization and Disbursements.
• Fund Accounting: Books maintained by fund cluster (e.g., Regular Agency
Fund, Foreign Assisted Projects Fund, Special Account, Internally Generated
Funds, Business Related Funds, Trust Receipts).
• Components of Budget and Financial Accountability Reports (COA-DBM-
DOF Joint Circular No. 2013-1, as amended):
• Quarterly Physical Report of Operation (QPRO) – BAR No. 1
• Statement of Appropriations, Allotments, Obligations, Disbursements and
Balances (SAAODB) – FAR No. 1
• Summary of Appropriations, Allotments, Obligations, Disbursements and
Balances by Object of Expenditures (SAAODBOE) – FAR No. 1-A
• List of Allotments and Sub-Allotments (LASA) – FAR No. 1-B
• Statement of Approved Budget, Utilizations, Disbursements and Balances
(SABUDB) – FAR No. 2 (for Off-Budget Fund)
• Summary of Approved Budget, Utilizations, Disbursements and Balances
by Object of Expenditures (SABUDBOE) – FAR No. 2-A (for Off-Budget
Fund)
• Aging of Due and Demandable Obligations (ADDO) – FAR No. 3
 • Monthly Report of Disbursements (MRD) – FAR No. 4
• Quarterly Report of Revenue and Other Receipts (QRROR) – FAR No. 5
• Fair Presentation: FSs must fairly present financial position, performance, and
cash flows, faithfully representing transactions in accordance with PPSAS
definitions and recognition criteria.
• Compliance with PPSASs: Explicit and unreserved statement of compliance
required in notes. Inappropriate policies not rectified by disclosure.
• Departure from PPSAS: Allowed if compliance results in misleading
presentation and regulatory framework permits.
• Going Concern: FSs prepared assuming continued operation unless
discontinuation is intended or unavoidable.
• Consistency of Presentation: Presentation and classification retained unless
laws/PPSAS require change.
• Materiality and Aggregation: Material items presented separately; immaterial
items aggregated. Specific disclosures not required if information is not material.
• Offsetting: Assets/liabilities and revenue/expenses not offset unless
required/permitted by PPSAS or reflects substance of transaction.
• Comparative Information: Disclosed for previous period for all amounts and
relevant narrative/descriptive information.
• Structure and Content: FSs and components clearly identified and
distinguished.
• Statement of Financial Position: Presents current and non-current
assets/liabilities separately.
• Statement of Financial Performance: Includes revenue, expenses, and net
surplus/deficit.
• Statement of Changes in Net Assets/Equity: Presents net income/deficit,
items recognized directly in net assets/equity, total revenue/expenses, and
effects of changes in accounting policies/errors.
• Statement of Cash Flows: Provides information on cash generation, utilization,
and income generation/utilization.
• Statement of Comparison of Budget and Actual Amounts: Enhances
transparency, comparing budget and actual amounts.
• Notes to Financial Statements: Additional information, narrative descriptions,
disaggregation, and information not qualifying for recognition in other statements.
• Qualitative Characteristics of Financial Reporting: Understandability,
relevance, materiality, reliability, comparability.
• Key Features of Assets:
 • Benefits controlled by the entity.
• Benefits arose from a past event.
• Future economic benefits or service potential expected to flow to the
entity.
• Recognition of an Asset: Probable future economic benefits will flow to the
entity, and cost/value can be measured reliably.
• Accounting Standards for Revenue:
• Revenue includes gross inflows of economic benefits/service potential
received/receivable by the entity in its own account (PPSAS 9).
• Receipts/Collections: All cash actually received during an accounting
period.
• Fines: Economic benefits received/receivable due to breach of
laws/regulations, recognized as income when collected.
• Gifts and donations: Voluntary transfers of assets (cash, goods, services
in-kind) normally free from stipulations (PPSAS 23).
• Goods in-kind: Tangible assets transferred in non-exchange transaction,
without charge, possibly with stipulations (PPSAS 23).
• Taxes: Compulsory payments to public sector agencies to provide
government revenue (PPSAS 23).
• Transfers: Inflows of future economic benefits/service potential from non-
exchange transactions, other than taxes (PPSAS 23).
• Use of Appropriated Funds: Solely for specific purposes appropriated.
• Appropriation for Loan Proceeds: Expenditures funded by foreign/domestic
borrowings included in expenditure program; loan proceeds not used without
Special Budget release.
• Basic Requirements for Disbursements and Required Certifications:
• Availability of allotment/budget certified by Budget Officer.
• Obligations/Utilizations properly charged against available
allotment/budget by Chief Accountant.
• Availability of funds certified by Chief Accountant before contract.
• Availability of cash certified by Chief Accountant (based on
RANCA/RANTA) and completeness of supporting documents.
• Legality of transactions and conformity with rules/regulations ensured by
requesting/approving officials.
• Submission of proper evidence (DV/Payroll with original supporting
documents) to establish claim validity.
 • Approval of disbursement by Head of Agency or authorized
representative.
• Certification of Availability of Funds: Required from Chief Accountant before
disbursement or incurring obligations. Certification for non-existent/fictitious
obligation is void, leading to dismissal and joint/several liability.
• Prohibition against Overdraft: Heads of departments/bureaus/offices shall not
incur expenditures/obligations exceeding released allotments. Responsible
parties are personally liable.
• Mode of Disbursements: Treasury Single Account (TSA), Modified
Disbursements System (MDS) check, commercial check, cash (cash advance),
Advice to Debit Account (ADA), Non-Cash Availment Authority (NCAA).
• Authority to Disburse/Pay: Based on Notice of Cash Allocation (NCA), Notice
of Transfer of Allocation (NTA), Cash Disbursement Ceiling (CDC), or other legal
authority.
• Disbursement Voucher/Payroll: Checks/ADA drawn based on duly approved
DV/payroll.
• Maintenance of Records: All checks/ADA (released, unreleased, cancelled)
recorded chronologically in Checks/ADA Disbursement Record.

Chapter 3: Budget Execution, Monitoring and Reporting

• Scope: Guidelines for monitoring, accounting, and reporting the budget in
financial statements, including records, forms, reports, and information disclosure
per PPSAS 24.
• Key Definitions:
• Allotment: Authorization from DBM to NGAs to incur obligations for
specified amounts in legislative appropriation (Obligational Authority).
• Appropriation: Legislative authorization to allocate funds for specified
purposes.
• Approved Budget: Expenditure authority from appropriation laws,
ordinances, and decisions related to anticipated revenue. Includes New
General Appropriations, Continuing Appropriations, Supplemental
Appropriations, Automatic Appropriations, Unprogrammed Funds,
Retained Income/Funds, Revolving Funds, Trust Receipts.
• Automatic Appropriations: Programmed annually or by law, not
requiring periodic Congressional action.
• Budget Information: Data on appropriations, allotments, obligations,
revenues, receipts, and disbursements.
 • Continuing Appropriations: Authorizations for obligations beyond the
budget year (e.g., multi-year construction).
• Disbursements: Actual amounts spent or paid from budgeted amounts.
• Final Budget: Original budget adjusted for reserves, carry-overs,
transfers, allocations, and authorized legislative changes.
• New General Appropriations: Annual authorizations for obligations in a
specified budget year (listed in GAA).
• Obligation: Act by authorized official binding government to
immediate/eventual payment; a commitment for possible future liabilities
based on current contractual agreement.
• Original Budget: Initial approved budget (usually GAA), may include
residual appropriated amounts carried over by law.
• Revenues: Increases in economic benefits/service potential during
accounting period (inflows/asset increases or liability decreases) that
increase net assets/equity, excluding owner contributions.
• Supplemental Appropriations: Additional appropriations authorized by
law to augment original appropriations due to economic/political/social
conditions, supported by CAF from BTr.
• Fund Release Documents:
• Obligational Authority/Allotment:
• General Appropriations Act Release Document (GAARD): For
comprehensive release of budgetary items (FCR).
• Special Allotment Release Order (SARO): For "For Later Release"
(FLR) items and Special Purpose Funds (SPFs).
• General Allotment Release Order (GARO): Comprehensive
authority for automatically appropriated expenditures common to
most agencies.
• Disbursement Authority:
• Notice of Cash Allocation (NCA): DBM authority for cash
requirements of central, regional, provincial offices, and operating
units.
• Non-Cash Availment Authority (NCAA): DBM authority for
liquidating obligations from loan/grant proceeds (supplier's
credit/constructive cash).
• Cash Disbursement Ceiling (CDC): DBM authority for DFA/DOLE to
use income from Foreign Service Posts (FSPs) for operating
requirements (not exceeding released allotment).
 • Notice of Transfer of Allocation: Central Office authority to
regional/operating units for cash requirements.
• Classification of Expenditures: By entity, Program/Activity/Project (PAP),
object of expenditures (PS, MOOE, FE, CO), region/locality, economic/functional
classification, obligational authority/cash transactions, and other budget process
needs.
• Monitoring of the Budget: Done by Budget Divisions/Units through registries.
• Registries of Revenue and Other Receipts (RROR): Maintained by Budget
Division/Unit to monitor estimated, collected, and remitted/deposited revenue.
• Procedures:
• Recognizing Estimated Revenue: Budget Staff records estimated
revenue from ERABA in RROR.
• Recognizing Collected and Deposited Revenue: Budget Staff
records collections from RCD, TRA, CRReg, Credit Memo/Abstract
of Deposits in RROR.
• Registry of Appropriations and Allotments (RAPAL): Maintained by NGAs to
monitor appropriations and allotments, showing original, supplemental, and final
budget. Separate RAPAL per fund cluster/MFO/PAP/Appropriation Acts.
• Procedures: Budget Staff records appropriations and allotments from
GAA/allotment release documents in RAPAL and RAOD.
• Registries of Allotments, Obligations and Disbursements
(RAOD): Maintained by Budget Division/Unit to record allotments, obligations,
and disbursements. Shows balances to prevent overdrafts. Maintained by
appropriation act, fund cluster, MFO/PAP, and allotment class.
• RAOD-PS (Personnel Services)
• RAOD-MOOE (Maintenance and Other Operating Expenses)
• RAOD-FE (Financial Expenses)
• RAOD-CO (Capital Outlays)
• Obligation Request and Status (ORS): Used for incurring obligations, prepared
by Requesting/Originating Office with valid claim documents. Head of
Requesting Office certifies necessity/legality; Head of Budget Division/Unit
certifies allotment availability and obligation.
• Subsidiary Record for Obligation: Section C of ORS monitors original
obligation, payable, and actual paid amount.
• Adjustment of Obligation: Done via Notice of Obligation Request and Status
Adjustment (NORSA) by Accounting Division/Unit for additional or reduced
obligations.
• Recording of Disbursement in the RAOD: Posted under 'Payment' column of
ORS Section C based on RCI/RADAI/TRA/JEV.
• Registries of Budget, Utilization and Disbursements (RBUD): Used for
approved special budget, utilizations, and disbursements charged to retained
income, revolving funds, and trust receipts/custodial funds. Maintained by
legal/authority, fund cluster, MFO/PAP, and budget classification.
• RBUD-PS, RBUD-MOOE, RBUD-FE, RBUD-CO.
• Budget Utilization Request and Status (BURS): Used for incurring budget
utilization, prepared by Requesting/Originating Office with valid claim documents.
Head of Requesting Office certifies necessity/legality; Head of Budget
Division/Unit certifies budget availability and utilization.
• Subsidiary Record for Budget Utilization: Section C of BURS monitors original
utilization, payable, and actual paid amount.
• Adjustment of Budget Utilization: Done via Notice of Budget Utilization
Request and Status Adjustment (NBURSA) by Accounting Division/Unit.
• Recording of Disbursement in the RBUD: Posted in BURS Section C based
on RCI/RADAI/TRA/JEV.
• Presentation of Budget Information in the Financial Statements on a
Comparable Basis: Statement of Comparison of Budget and Actual Amounts
(SCBAA) prepared as a separate statement.
• Statement of Comparison of Budget and Actual Amounts (SCBAA):
• Prepared based on RRORs, RAPAL, RAOD/RBUD.
• Presents original and final budget amounts, actual amounts on a
comparable basis, and differences.
• Notes explain material differences.
• Changes from Original to Final Budget: Explanation of changes (reallocations)
disclosed in notes.
• Reconciliation of Actual Amounts on a Comparable Basis (Budget) and
Actual Amounts in the Financial Statements: Disclosed in notes, identifying
basis, timing, and entity differences.
• Disclosures of Budgetary Basis, Period and Scope: Budgetary basis
(cash/accrual), accounting basis, period, and entities included in approved
budget identified in notes.
• Procedures for SCBAA Preparation: Budget Division/Unit obtains data,
prepares SCBAA, and submits to Accounting Division/Unit for verification.
• Preparation of Budget Reports: Various FARs and BARs submitted to DBM
and COA within specified timelines (e.g., QPRO, SAAODB, SABUDB, ADDO,
MRD, QRROR).
Chapter 4: Responsibility Accounting
• Scope: Definition of terms, objectives, concepts, presentation of costs and
revenue in financial statements, and responsibility center code structure.
• Key Definitions:
• Responsibility Accounting: Provides cost and revenue information
under a manager's supervision, measuring plans (budgets) and actions
(actual results) of each responsibility center.
• Responsibility Center: Part, segment, unit, or function of a government
agency headed by a manager accountable for specific activities. NGAs
are primarily cost centers.
• Objectives of Responsibility Accounting:
• Ensure costs/revenues are properly charged/credited to correct
responsibility center.
• Provide basis for future operations decisions.
• Facilitate review, performance monitoring, and effectiveness evaluation.
• Concepts of Responsibility Accounting:
• Accumulating and reporting data on revenues/costs based on manager's
actions.
• Manager's performance evaluated on directly controllable matters.
• Applicable at every management level where costs/revenues can be
associated, are controllable, and budget data can be developed.
• Distinction between controllable and non-controllable costs:
• Controllable: Manager has power to incur within a given period. All
costs are controllable by top management; fewer are controllable at
lower levels.
• Non-controllable: Incurred indirectly and allocated.
• Performance reports emphasize/include only items controllable by
individual manager.
• Evaluation for cost centers based on ability to meet budgeted goals for
controllable costs.
• Presentation of Revenue in the Financial Statements: Total revenue
classified by MFO/PAP and major classification of revenue nature attributed to
major offices/organizational units in the notes of the SFPer.
• Presentation of Costs in the Financial Statements: Analysis of expenses by
MFO/PAP and major classification of revenue nature attributed to major
offices/organizational units in the notes of the SFPer.
 • Responsibility Center Code Structure: NGA assigned an organization code
(UACS Manual), with additional three-digit codes for major offices/departments
appended for monitoring.

Chapter 5: Revenue and Other Receipts

• Scope: Standards, policies, guidelines, and procedures for accounting revenue
and other receipts, including collections through authorized agent banks,
remittance to NT, and deposits with AGDB, in accordance with PPSAS 9
(Exchange Transactions) and PPSAS 23 (Non-exchange Transactions).
• Key Definitions:
• Bequest: Transfer per deceased person's will; control arises when entity
has enforceable claim (e.g., death of testator, granting of probate).
• Concessionary loans: Loans received at below market terms.
• Exchange transactions: Entity receives assets/services or has liabilities
extinguished, and directly gives approximately equal value in return (cash,
goods, services, asset use).
• Fair value: Amount for which an asset could be exchanged or liability
settled between knowledgeable, willing parties in an arm's length
transaction.
• Fines: Economic benefits received/receivable by NGAs from
individuals/entities as determined by court/law enforcement for breaching
laws/regulations.
• Gifts, Donations and Goods In-kind: Voluntary asset transfers (cash,
monetary assets, goods/services in-kind) normally free from stipulations.
Control arises normally upon receipt.
• Non-exchange transactions: Entity receives value without directly giving
approximately equal value, or gives value without directly receiving
approximately equal value.
• Pledges: Unenforceable undertakings to transfer assets.
• Revenue: Gross inflow of economic benefits/service potential during
reporting period that increases net assets/equity, excluding owner
contributions.
• Services in-kind: Services provided by individuals to public sector
agencies in a non-exchange transaction.
• Accrual of Revenue to the General Fund: All revenue accrues to the GF and
must be deposited in NT or authorized depository, unless law specifies
otherwise. Trust funds and business-type activities may be separately
recorded/disbursed per Permanent Committee.
• Special, Fiduciary and Trust Funds: Receipts recorded as revenue of these
funds only when authorized by law and Permanent Committee rules. Committee
monitors and may recommend reversion to GF.
• Sources of Revenue and Other Receipts:
• Exchange Transactions:
• Sale of goods/provision of services (e.g., Service Income: Permit
Fees, Licensing Fees; Business Income: School Fees, Rent/Lease
Income, Sales Revenue).
• Use of assets yielding interest, royalties, dividends.
• Non-Exchange Transactions:
• Tax Revenue (Individual, Corporate, Property, Goods/Services,
Others).
• Fines and Penalties (Tax Revenue, Service Income, Business
Income).
• Shares, Grants and Donations (National Wealth, PAGCOR/PCSO,
GOCC Earnings, Cash Grants/Donations, In-kind
Grants/Donations).
• May also arise when entity satisfies a present obligation recognized
as a liability (Trust Liabilities, Deferred Credits, Unearned
Revenue).
• Recognition and Measurement of Revenue from Exchange Transactions:
• Measured at fair value of consideration received/receivable (net of trade
discounts/volume rebates).
• Recognition: Probable future economic benefits/service potential flow to
entity and can be measured reliably.
• Sale of goods: When significant risks/rewards of ownership
transferred, entity retains no managerial involvement/control,
amount can be measured reliably, probable economic benefits flow,
and costs can be measured reliably.
• Supply of services: Recognized on straight-line basis over period
unless alternative method better represents completion stage. If
outcome reliably estimated: amount, probable benefits, stage of
completion, and costs can be measured reliably. If not reliably
estimated, revenue recognized only to extent of recoverable
expenses.
• Interest, royalties, dividends: Interest on time proportion basis;
royalties as earned; dividends when right to receive is established.
 • Deferred cash inflow: Fair value determined by discounting future
receipts; difference recognized as interest revenue.
• Exchanges of Goods or Services for Similar/Dissimilar Goods or Services:
• Similar nature/value: Not revenue generating.
• Dissimilar nature/value: Revenue generating, measured at fair value of
goods/services received (adjusted for cash) or fair value of goods given
up if received value cannot be reliably measured.
• Impairment Losses and Allowance for Impairment Losses: Uncollectible
amounts recognized as expense (impairment losses), not adjustment to original
revenue. Allowance provided for known/estimated bad debts.
• Disclosure (Exchange Transactions): Accounting policies for revenue
recognition, amount of each significant category of revenue (services, goods,
interest, royalties, dividends, exchanges).
• Recognition of Revenue from Non-Exchange Transactions:
• Cash basis applied until reliable measurement model developed.
• Asset and corresponding revenue/liability recognized when collected or
measurable/legally collectible.
• Taxation revenue determined at gross amount, not reduced by expenses
paid through tax system.
• Gifts/donations (other than services in-kind) recognized as assets/revenue
when probable benefits flow and fair value reliably measured.
• Goods in-kind without conditions recognized as revenue immediately.
• Donation in cash/kind recognized as revenue.
• Measurement of Revenue from Non-Exchange Transactions: At amount of
increase in net assets, unless liability recognized. If liability recognized and
subsequently reduced, reduction recognized as revenue.
• Measurement of Assets on Initial Recognition from Non-Exchange
Transactions: Initially at fair value at acquisition date.
• Measurement of Liabilities on Initial Recognition: If time value of money
material, at present value of amount to settle obligation.
• Tax Revenue: Compulsory payments to government. Taxable event varies by
tax type (income, VAT, goods/services, customs, death, property).
• Transfer of Internal Revenue Allotment (IRA): NGAs recognize
assets/revenue for tax and decrease in assets/expense for transfer to LGUs.
LGUs recognize assets/revenue for transfer.
• Expenses Paid Through the Tax System and Tax Expenditures:
 • Taxation revenue at gross amount; expenses paid through tax system
(e.g., tax credits) are not offset but recognized as expenses.
• Tax expenditures (preferential tax provisions) are foregone revenue, not
expenses, and do not give rise to inflows/outflows of resources.
• Recognition of Asset through Transfers: Asset recognized if transferred
resources meet asset definition and recognition criteria (control from past event,
probable future economic benefits, reliably measurable fair value).
• Transfers include grants, debt forgiveness, fines, bequests, gifts,
donations, goods/services in-kind.
• Binding arrangements with conditions (inter/intra-entity fund transfers).
• If conditions attached, liability recognized and reduced as conditions
satisfied.
• Transfers that are contributions from owners do not give rise to revenue.
• Measurement of Transferred Assets: At fair value at acquisition date.
• Debt Forgiveness and Assumption of Liabilities:
• Lender waiving debt: Recipient recognizes increase in net assets.
• Revenue recognized when debt no longer meets liability definition/criteria,
unless contribution from owners.
• Controlling entity forgiving debt of wholly owned entity may be contribution
from owners.
• Revenue from debt forgiveness measured at carrying amount of debt
forgiven.
• Recognition and Measurement of Fines: Recognized as revenue when
receivable meets asset definition/criteria. Measured at best estimate of inflow.
Not revenue if collected as agent.
• Recognition and Measurement of Bequests: Recognized as assets/revenue
when probable benefits flow and fair value reliably measured. Measured at fair
value of resources received/receivable.
• Recognition and Measurement of Gifts, Donations and Goods In-
kind: Recognized as assets/revenue when probable benefits flow and fair value
reliably measured. Goods in-kind recognized when received or binding
arrangement exists. If conditions attached, liability recognized and reduced as
conditions satisfied. Measured at fair value at acquisition date.
• Grant with Condition: If conditions attached, liability recognized and reduced as
conditions satisfied. Revenue recognized only when condition satisfied.
• Recognition and Measurement of Services In-kind: Not required to recognize
as revenue/asset due to uncertainties, but encouraged to disclose nature/type.
• Recognition and Disclosure of Pledges: Not recognized as assets/revenue
(unenforceable). May warrant disclosure as contingent assets.
• Advance Receipts of Revenue: Recognized as asset and liability until transfer
arrangement becomes binding and conditions fulfilled; then liability discharged
and revenue recognized.
• Recognition and Measurement of Concessionary Loans: Repayable portion
is exchange transaction (PPSAS 29). Difference between transaction price and
fair value on initial recognition is non-exchange revenue, unless present
obligation exists (then liability recognized and reduced as obligation satisfied).
• Dishonored Checks:
• Dishonor by non-payment/non-acceptance.
• Drawer remains liable for sum due and penalties.
• Collecting Officer issues Notice of Dishonored Checks (NDC) to
drawer/endorser.
• Collecting Officer cancels OR.
• Collecting Officer neglecting NDC is personally liable for loss.
• Insufficient funds: prima facie evidence of knowledge unless payment
made within 5 banking days of notice.
• Settled by cash or certified check.
• OR must be surrendered for return of check.
• Dishonored checks remain with CO pending redemption.
• Procedures in Recording Dishonored Checks: CO receives DM, verifies,
prepares NDC, cancels OR, stamps RCD, prepares list, forwards to Accounting
for JEV.
• Accounting for Cash Overage/Shortage of Collecting Officer:
• Overage: Forfeited to government, OR issued, taken up as Miscellaneous
Income.
• Shortage: Taken up as receivable from CO if not restituted.
• Disclosures (Non-Exchange Transactions):
• Amount of non-exchange revenue (taxes, transfers).
• Receivables recognized for non-exchange revenue.
• Liabilities for transferred assets subject to conditions.
• Liabilities for concessionary loans with conditions.
• Assets subject to restrictions and their nature.
• Existence/amounts of advance receipts.
 • Amount of liabilities forgiven.
• Accounting policies for non-exchange revenue.
• Basis for fair value measurement of inflowing resources.
• Nature of tax for major classes of taxation revenue not reliably
measurable.
• Nature/type of major classes of bequests, gifts, donations (showing goods
in-kind).
• Encouraged disclosure of nature/type of services in-kind.
• Other Receipts:
• Receipt of NCA: Authority to withdraw from government bank. No OR
issued.
• Non-Cash Availment Authority (NCAA): For liquidation of obligations
from loan/grant proceeds.
• Cash Disbursement Ceiling (CDC): For FSPs to use retained income.
• Tax Remittance Advice (TRA): For constructive remittance of withheld
taxes to BIR/BOC and constructive receipt of NCA.
• Subsidy/Assistance from other NGAs, LGUs, GOCCs: OR issued upon
receipt.
• Refund of excess cash advances: OR issued.
• Performance bond/security deposits: OR issued.
• Refund of overpayment of expenses: OR issued.
• Collections on behalf of another entity: OR issued.
• Intra-agency and inter-agency fund transfers: Cash received for
specific projects.
• Reporting of Collections and Deposits:
• Report of Collections and Deposits (RCD) prepared daily by CO,
supported by ORs and deposit slips.
• Electronic OR (eOR) generating entities submit daily RCD to Auditor.
• Field Offices (FOs)/Operating Units (OUs) without complete books record
in Cash Receipts Register (CRReg) and submit to mother unit.
• Detailed Procedures for Collections and Deposits: CO receives cash/check,
issues OR, records in CRRec, prepares/deposits DS, prepares RCD, submits to
Accounting. Accounting prepares JEV.
• Procedures for Collections through AAB/AGDB: Accounting receives
Consolidated Report of Daily Collections (CRDC), prepares JEV.
 • Submission of Quarterly Report of Revenue and Other Receipts
(QRROR): Chief Accountant prepares and submits to GAS, COA, DBM, BTr
within 30 days after quarter-end. Separate reports for GF, Special Account, Trust
Fund.

Chapter 6: Disbursements
• Scope: Rules and regulations for public fund disbursement, monitoring
NCA/NTA, DV/Payroll processing, check issuance, cash payments, cash
advances (granting, utilization, liquidation/replenishment), ADA payments, TRA
remittance, foreign loan availment, and FSP operating requirements.
• Key Definitions:
• Accounts Payable: Valid/legal obligations for
delivered/rendered/completed/accepted goods/services/projects,
regardless of year incurred.
• Advice to Debit Account (ADA): Authorization on LDDAP-ADA for MDS-
GSBs to debit NCA balance for payments via ExMDPS.
• Agency: Any department, bureau, office of national government, political
subdivision, GOCCs, subsidiaries, or self-governing boards.
• Authorized Card Holder: Official with Purchase Card for official
purchases within specific categories.
• Billing Entity: Accounting unit responsible for consolidating billing from
Credit Card Company (CCC) and payment.
• Credit Card Company: Citibank (authorized provider for Cashless
Purchase Card (CPC) System).
• Commercial Check: Check issued by government agencies against
agency's checking account with AGDBs (covered by authorized
income/receipts or funding checks from CO/RO).
• Direct Payment System: MDS-GSB pays CCC directly upon receipt of
NCA and LDDAP-ADA.
• Disbursements: All cash paid out (currency or check/ADA); settlement of
government payables/obligations. Covered by DV/PCV/Payroll.
• Expanded Modified Direct Payment Scheme (ExMDPS): MDS-GSB
pays creditors/payees listed in LDDAP-ADA via direct credit or bank
transfer.
• Implementing Agency (IA): Agency receiving transferred funds to
prosecute/implement a project.
• Inter-Agency Transferred Fund: Cash/money transferred to IA for
project by Source Agency (SA).
 • Letter of Introduction: NGA/OU letter to MDS-GSB for account
opening/validation.
• List of Due and Demandable Accounts Payable-Advice to Debit
Account (LDDAP-ADA): Accountable form integrating ADA with LDDAP
(list of creditors/payees and amounts).
• Merchants: Authorized by CCC as sellers/suppliers under CPC System.
• Modified Disbursement System (MDS) Check: Check issued by
government agencies against Treasurer of the Philippines' account with
MDS AGDBs (covered by NCA).
• Modified Disbursement System, Government Servicing Banks (MDS-
GSBs): Authorized government servicing banks (LBP, DBP, PVB) where
DBM issues NCAs.
• Petty Cash Fund (PCF): Amount granted to PCF Custodian for
petty/miscellaneous expenses not conveniently paid by check/LDDAP-
ADA.
• Program Administrator: Designated by agency head to
implement/administer CPC System.
• Project: Undertaking (construction, research, training, etc.) implemented
by an agency for another.
• Purchase Limit: Cardholder Monthly/Single Purchase Limit, Maximum
Purchase Card Limit.
• Regular Cash Advance: Granted to cashiers/disbursing officers for
salaries, wages, commutable allowances, honoraria.
• Steering Committee: Advisory committee (DND, DBM) for CPC System
guidance.
• Special Cash Advance: Granted by Head of Agency to designated
disbursing officers/employees for other legally authorized purposes
(operating expenses, travel, time-bound undertakings) when check
payment is impractical.
• Source Agency (SA): Agency where allotment was originally released
and for whom project is implemented.
• Tax Remittance Advice (TRA): Serially-numbered DBM document for
NGAs to remit withheld taxes on DBM funds (now Electronic TRA/eTRA).
Basis for BIR/BTr to record tax collection.
• Withdrawal Application: Written request from borrower to development
partner to pay funds against loan account.
• Notice of Cash Allocation (NCA):
 • Authority for operating expenses, purchases, PPE acquisition, accounts
payable, other authorized disbursements.
• Total MDS checks/ADA cannot exceed total NCA.
• Common Fund System: Regular MDS Account balances can cover current
year's accounts payable from prior year appropriations after satisfying
regular operating requirements.
• NCA for Special MDS Accounts (retirement, prior years' AP) valid for
prescribed period.
• NCA for foreign assisted projects valid for specific purpose until full
implementation.
• Monitored via Registry of Allotments and Notice of Cash Allocation
(RANCA).
• Notice of Transfer of Allocation (NTA):
• Authority for regional/operating units for operating expenses, purchases,
PPE, accounts payable, other authorized disbursements.
• Total MDS checks/ADA cannot exceed total NTA.
• Common Fund System applies.
• NTA for Special MDS Accounts valid for prescribed period.
• Monitored via Registry of Allotment and Notice of Transfer of Allocation
(RANTA).
• Recording of Receipt of NCA/NTA: CO/ROs/OUs record in RANCA/RANTA to
control unfunded allotments and disbursement authorities.
• Procedures for Recording of Receipt and Utilization of
NCAs/NTAs: Designated Staff records allotment, then NCA/NTA receipt and
utilization in RANCA/RANTA.
• Modes of Disbursements: Checks (MDS/commercial), cash (cash advance),
ADA, TRA, Working Fund/CDC, direct payment.
• Disbursements by Check:
• Drawn only on approved DV/Payroll.
• For regular expenses not conveniently/practically paid by ADA or PCF.
• Reported and recorded whether released or unreleased.
• MDS Checks: Chargeable against Treasurer of the Philippines' account.
• Commercial Checks: Chargeable against Agency Checking Account with
GSBs.
• Documentary Requirements (Checks): COA Circular No. 2012-001 (amended
by 2013-001).
• Accounting Books, Records, Forms and Reports (Checks):
• Checks and ADA Disbursements Record (CkADADRec) maintained by
Cash/Treasury Unit.
• Report of Checks Issued (RCI) prepared daily by Cashier.
• Report of ADA Issued (RADAI) prepared daily by Cashier.
• RCI/RADAI with original SDs submitted to Accounting for JEV.
• Schedule of Unreleased Commercial Checks prepared at year-end.
• Recording of Check Disbursements by Field Offices without Complete Set
of Books: Record in Cash in Bank Register (CBReg), submit certified copy with
SDs to mother unit for recording.
• Procedures for Disbursements by Checks: DV preparation, processing by
Accounting (including NORSA if needed), approval by Agency Head, check
preparation/approval by Cash/Treasury Unit, release to payee, RCI preparation,
JEV preparation by Accounting, recording in CkDJ.
• Disbursements by Cash:
• Payments from cash advances to regular/special disbursing officers for
personal services, petty expenses, MOOE.
• Covered by approved DVs/payrolls/PCVs.
• Granting/Liquidation of Cash Advances: Governed by COA Circular
No. 97-002 (amended by 2006-005).
• Specific legal purpose.
• Reported/liquidated promptly.
• No additional CA until previous settled.
• Properly bonded (except travel).
• Only permanently appointed officials as DOs.
• Only appointed/designated DOs perform disbursing functions.
• No CA transfer.
• Used solely for specific legal purpose; no check
encashment/previous CA liquidation.
• Cash Advance for Payroll:
• Granted to Regular Disbursing Officers for salaries/wages/benefits.
• Equal to net payroll amount.
• Liquidated within 5 days after pay period. Unclaimed amounts refunded.
• Documentary Requirements (Payroll Fund): COA Circular No. 2012-001
(amended by 2013-001).
• Accounting Books, Records, Forms and Reports (Payroll Fund):
• Cash Disbursements Record (CDRec) maintained by DO.
• Report of Cash Disbursements (RCDisb) prepared by DO.
• Payments posted to IP. JEV based on RD, recorded in CDJ.
• Procedures for Disbursements out of Advances for Payroll: Granting (via
ADA), utilization (payment), liquidation (RCDisb), recording by Accounting (JEV
in CDJ).
• Cash Advances for Operating Expenses of Government Units without
Complete Set of Books of Accounts:
• Granted for two months' MOOE/authorized expenses.
• Granted to designated DOs.
• Documentary Requirements (CA for Operating Expenses): COA Circular No.
2012-001 (amended by 2013-001).
• Accounting Books, Records, Forms and Reports (CA for Operating
Expenses):
• Cash Disbursements Register (CDReg) maintained.
• Certified copy of CDReg with SDs submitted to CO/RO/DO for JEV
preparation or replenishment.
• Cash Advances for Travel:
• Governed by EO No. 248 (amended by 248A, 298). Urgent, necessary,
minimum expenditure, beneficial.
• Granted as "Advances to Officers and Employees."
• No additional CA until previous liquidated.
• Liquidation: Local travel (30 days upon return), Foreign travel (60 days
upon return).
• Liquidation Report (LR) prepared by officers/employees. Excess refunded;
deficiency reimbursed via DV.
• Documentary Requirements (CA for Travel): COA Circular No. 2012-001
(amended by 2013-001). Specific requirements for granting (Office Order/Travel
Order, IoT, certification of previous liquidation) and liquidation (tickets, Certificate
of Appearance, LR, RER, OR for refund, CTC, hotel bills).
• Accounting Books, Records, Forms and Reports (CA for Travel): LR is basis
for JEV. Accounting records JEV in GJ, maintains SL/IP.
• Cash Advance for Specific Purpose/Time-Bound Undertaking:
• Granted only to authorized accountable officer/special disbursing officer.
 • Accounted for as "Advances to Special Disbursing Officer."
• Liquidated within specified period. Unutilized refunded.
• Documentary Requirements (CA for Specific Purpose): COA Circular No.
2012-001 (amended by 2013-001).
• Accounting Books, Records, Forms and Reports (CA for Specific
Purpose): RCDisb prepared, CDRec maintained. RCDisb basis for JEV in CDJ.
SL and IP maintained.
• Cash Advance for Petty Operating Expenses (PCF):
• Sufficient for one month's recurring petty expenses.
• Maintained using Imprest System. Replenishments charged to expense.
PCF = cash on hand + unreplenished expenses.
• Replenished when disbursements reach 75% or as needed.
• Kept separate from regular CAs/collections. Not for regular expenses
(rentals, utilities, stock supplies).
• Payments via PCV, not exceeding P15,000 per transaction (unless higher
amount allowed). No splitting.
• Unused balance not closed/refunded at year-end, only upon PCFC
termination/separation.
• Unreplenished PCVs submitted to Accounting at year-end.
• Documentary Requirements (PCF): COA Circular No. 2012-001 (amended by
2013-001). Granting (authority, certification of previous liquidation, fidelity bond),
additional for initial (estimates, imprest policy), liquidation (RPPCV, purchase
request, bills/receipts, IAR, WMR, trip ticket, canvass, PCVs, OR for refund, toll
receipts).
• Accounting Books, Records, Forms and Reports (PCF): RPPCV prepared,
Petty Cash Fund Record (PCFR) maintained. RPPCVs basis for DV to replenish.
Accounting records replenishment in CkDJ via JEV, maintains SL.
• Cash Advances for Petty Cash Fund of Government Units without
Complete Set of Books of Accounts: Granted for two months' operating
requirements.
• Accounting Records, Forms and Reports (PCF for Units without
Books): Petty Cash Fund Register (PCFReg) maintained. Photocopy with
PCV/SDs submitted to CO/RO/DO for DV/JEV.
• Accounting for Cash Shortage/Overage of Disbursing Officer:
• Overage: Forfeited to government, OR issued, taken up as Miscellaneous
Income.
• Shortage: Taken up as receivable from DO if not restituted.
• Accounting for Cancelled Checks:
• Stale (over 6 months), voided, or spoiled.
• Marked cancelled, reported in List of Unreleased Checks (attached to
RCI).
• New checks issued for replacement upon submission of stale/spoiled
checks. JEV prepared for cancellation. Replacement reported in RCI.
• Accounting for Disallowances:
• Taken up in books only when final and executory.
• Accountant prepares JEV (Receivable-Disallowances/Charges, credit
appropriate account or Accumulated Surplus/(Deficit) for prior years).
• Cash settlement acknowledged by OR.
• Accounting for Overpayments:
• Overpayments (e.g., payroll) may occur.
• Refunds demanded.
• May be taken up as receivable (Due from Officers and Employees) or
directly reduce expense if refunded in current year. Prior year
overpayments refunded to Accumulated Surplus/(Deficit).
• Disbursements through List of Due and Demandable Accounts Payable-
Advice to Debit Account (LDDAP-ADA):
• Mode of settlement for accounts payable (DBM Circular Letter No. 2013-
16, amended).
• Exclusions: TL/RG benefits, social insurance premiums (GSIS,
PhilHealth, HDMF), utility company payments, other impractical payables.
• Signatories in LDDAP-ADA: LDDAP (Box I) certified by Chief Accountant,
approved by Head of Agency. ADA (Box II) signed by Cash/Treasury Unit
Authorized Signatory, countersigned by Head of Agency (bonded signatories).
• Accounting Books, Records, Forms and Reports (LDDAP-ADA):
• CkADADRec maintained by Cash/Treasury Unit.
• RADAI prepared daily by Cash/Treasury Unit.
• RADAI with original DVs/SDs submitted to Accounting for JEV.
• Cash/Treasury Unit monitors validated LDDAP-ADA and ORs.
• JEV prepared by Accounting upon receipt of RADAI, recorded in ADA
Disbursements Journal (ADADJ).
• Invalidated ADA: New LDDAP-ADA may be issued; JEV prepared for
cancellation.
• Documentary Requirements (LDDAP-ADA): COA Circular No. 2012-001
(amended by 2013-001).
• Procedures for Disbursements through LDDAP-ADA: LDDAP-ADA
preparation by Accounting, approval by Agency Head, ADA portion signed by
Cash/Treasury Unit and countersigned by Agency Head, delivery to MDS-GSB,
preparation of Summary of LDDAP-ADAs Issued and Invalidated ADA Entries
(SLIIAE), RADAI preparation, JEV preparation by Accounting, recording in
ADADJ.
• Disbursements Through electronic Modified Disbursement System (eMDS):
• Part of TSA system (JAO No. 2015-1).
• For spending agencies with LBP as GSB.
• Agencies enroll in eMDS for online transactions and reporting.
• Disbursements through Cashless Purchase Card System (CPC):
• Alternative payment mode (JMC No. 2014-1, DND, AFP, DBM).
• Electronic card for specific eligible items.
• CPC holder recommended by Program Administrator, authorized by
Steering Committee.
• Individual credit limits set.
• Chief of Offices jointly accountable with SDOs.
• Does not supplant Procurement Law (RA 9184).
• Part of cash advance levels, not to increase them.
• Initially for small value non-common use items not available from
Procurement Service.
• Cost of unauthorized items for personal account of individual.
• Disputed items: CCC informed.
• Timely payment of CCC billing; late charges for responsible employee.
• Existing MDS disbursement policies apply.
• CPC holder secures charge slips/receipts.
• Inspection/acceptance complies with agency procedures.
• Accounting verifies items are within authorized lists.
• Finance ensures timely payment.
• Lost/stolen card: Immediate notification to Program Administrator and
CCC. Cardholder accountable for purchases during loss.
• Disbursements through Tax Remittance Advice (TRA):
 • eTRA (Electronic TRA) used for online remittance of withheld taxes.
• Certified by Chief Accountant, approved by Head of Agency.
• Basis for BIR/BTr JEV. Recorded in GJ.
• Supported by Summary of Taxes Withheld (STW).
• Accounting maintains SL for withheld taxes.
• Procedures for Disbursements through TRA: Accounting complies with BIR
registration, DO pays net of taxes, Accounting prepares STW, Chief Accountant
prepares TRA, Agency Head approves, eTRA filed via eFPS, JEV prepared by
Accounting, copies submitted to BIR.
• Disbursement for Inter-Agency Transferred Funds (IATF):
• MOA between SA and IA.
• Fund transferred (3 months' operation or total project cost) to IA's trust
account. IA issues OR.
• Accounting Treatment:
• If condition to return excess: IA recognizes asset/liability; SA
recognizes receivable.
• If no condition: IA recognizes asset/revenue; SA recognizes
expense.
• Separate subsidiary record maintained by IA.
• IA submits RCI/RCDisb monthly/periodically.
• IA returns unused balance if stipulated.
• SA draws JEV for reports.
• IA Auditor audits.
• IA Chief Accountant records audit disallowances as receivable upon NFD.
• If IA is Bureau/RO of SA, centrally managed project procedures followed.
• Disbursements by Foreign-based Government Agencies (FBGAs):
• CDC (Cash Disbursement Ceiling) issued by DBM.
• Working Fund established for PS/MOOE.
• Finance Officer maintains CBReg/CDReg.
• Disbursements covered by approved DV/Payroll with SDs.
• Finance Officer submits RCDisb to Central Office for JEV.
• Disbursements through Direct Payment Method:
• Covered by NCAA.
 • Lending institution pays supplier/contractor directly.
• JEV issued by BTr to availing/implementing agency, recorded in GJ.
• Procedures for Disbursements through Direct Payment Scheme of Foreign
Loans Availment: NGA records procured goods/services (IAR), prepares WA,
BTr records foreign loans payable (JEV), NGA receives JEV from BTr, reconciles
with NCAA, prepares JEV for NCAA receipt/AP settlement.
• Financial Statements Presentation: Accounts related to disbursements
presented per Chapter 19 (Financial Reporting).