HANDBOOK ON THE FINANCIAL

TRANSACTIONS OF THE
SANGGUNIANG KABATAAN
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OVERVIEW
on the
HANDBOOK ON FINANCIAL
TRANSACTIONS OF THE
SANGGUINANG KABATAAN

Overview – Handbook on the Financial Transactions of the Sangguniang Kabataan

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Legal Basis

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BASIC STANDARDS AND POLICIES

SK shall have Financial independence in its

operations, disbursements and encashment of its
funds, income and expenditures. (Section 20(b) of
the IRR of R.A. No. 10742)

10 percent of Barangay Fund shall be set aside for the

SK.
Disbursed solely by the SK for youth development and
empowerment purposes. (Section 20(a) of the IRR of
R.A. No. 10742)

Overview – Handbook on the Financial Transactions of the Sangguniang Kabataan

1.All monies officially received by the SK officials in any capacity or on any occasion shall be accounted for as SK Fund, unless otherwise provided by law. 5
BASIC STANDARDS AND POLICIES
 The SK funds shall be disbursed in accordance with the provisions of
R.A. No. 10742 and its IRR, R.A. Nos. 7160 and 9184, and such other
pertinent laws, rules and regulations. (Section 20(a) of the IRR of R.A.
No. 10742)

 All monies officially received by the SK officials in any

capacity or on any occasion shall be accounted for as SK
Fund, unless otherwise provided by law.

 All SK funds shall be subject to pertinent accounting and

auditing laws, rules and regulations.

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1.SK funds shall be utilized solely for youth development and empowerment purposes such as programs, projects and activities that will promote and ensure the equitable

BASIC STANDARDS AND POLICIES

SK funds shall be utilized solely for youth development and empowerment purposes such as
programs, projects and activities that will promote and ensure the equitable access to the
following:

quality education ,

environmental protection
climate change adaptation
disaster risk reduction and
resiliency
youth employment and livelihood

health, including health services

adolescent sexual and
reproductive health
anti-drug abuse
gender sensitivity
sports development
capability building which
emphasizes leadership training
(Section 20a and 20c of the IRR).

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BASIC STANDARDS AND POLICIES
 Disbursements or disposition of the SK funds or
property shall invariably bear the approval of the
proper officials.
 All claims against the SK funds shall be supported
with complete documentation.

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BASIC STANDARDS AND POLICIES

 The SK Chairperson shall be immediately

and primarily responsible for all the funds
and property pertaining to the SK.

 Proper handling or custody of the funds

and property of the SK rests with the SK
Treasurer.

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BASIC STANDARDS AND POLICIES

 Every accountable officer shall be properly

bonded in accordance with law. (Section 101, P.D.
1445; Section 50, Chapter 9, Subtitle B. Book V,
Executive Order (E.O.) No. 292)

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BASIC STANDARDS AND POLICIES

 SK financial transactions shall be kept under a

single entry bookkeeping system and shall be
recorded in accordance with the list of accounts
provided in this handbook.

 All SK funds shall be subject to pertinent

accounting and auditing laws, rules and
regulations.

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Functions of Key Officers

SK Chairperson
 shall be immediately and primarily responsible for all the
funds and property pertaining to the SK.

 responsible for the safekeeping of government funds or

property in his custody or possession
 Act as one of the two Official Signatory of Checks and
Bank Account
 Approves DV/PO and Certifies as to necessity, validity,
propriety, and legality of claim.

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SK Treasurer 12

 Proper handling or custody of the funds and property

 Maintain Cash Receipts Register and Cash in Bank
Register
 Issue an OR to acknowledge receipt of cash/check and
deposits daily collections
 Certifies DV/PO as to availability of funds for the purpose,
and completeness and propriety of supporting
documents
 prepares and signs the check based on the approved
DV
 maintain a logbook/record of all checks issued, including
cancelled ones
 Prepares SK Treasurer’s Advice of Checks Issued and
Cancelled (SKTACIC)
 Prepares Statement of Receipts and Expenditures (SRE) P)
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SK Accounting Records/Reports
SK Treasurer shall prepare/maintain the following:

Cash Receipts Cash in Bank

Register Register

Statement of Bank
Receipts and Reconciliation
Expenditures Statement

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SK Secretary
 Responsible for the safekeeping of government
funds or property in his custody or possession
 Maintain Record of Budget, Disbursements and
Balance
 Maintains Record of Funds Received with
Specific Purpose
 Prepares Quarterly, the Statement of Budget,
Disbursements and Balance (SBDB)
 Prepares Quarterly the Statement of Funds
Received with Specific Purpose (SFRSP)
 certify the availability of released budget for specific
purpose/trust fund in DV and/or PO;

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SK Accounting Records/Reports
SK Secretary shall prepare and/or maintain the following:
Record of Budget, Disbursements and Balance for Maintenance and Other Operating
Expenses (RBDBMOOE)

Record of Budget, Disbursements and Balance for Capital Outlay (RBDBCO)

Record of Funds Received with Specific Purpose for Maintenance and Other
Operating Expenses (RFRSPMOOE)

Record of Funds Received with Specific Purpose for Capital Outlay (RFRSPCO)

Statement of Budget Disbursements and Balances (SBDB)

Statement of Funds Received for Specific Purpose (SFRSP)

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Policies for Collections and Deposits
• All collections, either in cash or in check,
shall be acknowledged through the
issue of an OR – General Form No. 51.

• ORs shall be issued in strict numerical

sequence. Strictly, erasures and
alterations are not allowed. OR with
erasures and alterations shall
automatically be stamped “cancelled”.

• Issue of temporary or provisional receipt

is not allowed.
Overview – Handbook on the Financial Transactions of the Sangguniang Kabataan
Policies for Collections and Deposits 17

AGDB
deposit

Intact Daily or the next working day

Once a week as applicable or
As soon as collection reach P5,000

Overview – Handbook on the Financial Transactions of the Sangguniang Kabataan

Policies for Disbursements 18

• All claims out

of the SK
funds shall be
made thru
Disbursement
Voucher
(DV)

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Policies for Disbursements
Ciudad Real

• Disbursements ABC Supplies Inc.

shall be made by One Hundred forty two thousand forty two pesos and 71/100 only

issuing checks
drawn against SK Treasurer SK Chairperson
the current
account in the
name of the SK of SK Treasurer
the Barangay
concerned SK Chairperson

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Inventories

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Policies on Inventories
• SK Treasurer shall act as the Supply and Property Officer
and shall be responsible for the receipt, custody,
issuance and inventory of all the supplies and materials.

• All procurement of inventories shall be governed by

R.A. No. 9184 and supported with Annual Procurement
Plan (APP) prepared by SK Treasurer and approved by
SK Chairperson. Total estimated cost of the APP shall
not exceed the total budget authorized for the
acquisition of supplies and materials.

• Requisition and purchase of supplies and materials shall

be covered or supported by an approved PO.

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 Inventories 22

• For proper accountability, issue of supplies and

materials with serviceable life of more than
one year shall be covered by an Inventory
Custodian Slip (ICS) – Annex 19. It shall be
extinguished upon return to the SK Treasurer, or
in case of loss, upon approval of the relief from
property accountability.

• The SK Treasurer shall monitor and control

receipt, return and issue of supplies and
materials by maintaining a Stock Card (SC) –
Annex 21.
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Property and Equipment

Disbursements – Handbook on the Financial Transactions of the Sangguniang Kabataan

1.All monies officially received by the SK officials in any capacity or on any occasion shall be accounted for as SK Fund, unless otherwise provided by law. 24
Policies on Property and Equipment
 The SK Treasurer, who shall act as the Supply and Property Officer,
shall be responsible for the receipt, custody, issue, physical count
and disposal of the SK property and equipment.
 Procurement of property and equipment, and construction
materials for infrastructure projects implemented by the SK
shall be charged against budget for capital outlays,
included in the APP, and in accordance with R.A. No. 9184
and applicable guidelines issued by the Government
Procurement Policy Board.

 All purchases and deliveries of property and equipment shall be

covered by PO/Contract and IAR, respectively.

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Policies on Property and Equipment
 Issue of property and equipment shall be supported by an
approved RIS.
 Property and equipment issued to the end-users shall be
acknowledged through the Property Acknowledgement
Receipt (PAR) – Annex 25 which shall be renewed at least
every year or whenever there is a change in custodianship.

 Property and Equipment Card (PEC) – Annex 26, shall be

maintained by the SK Treasurer to record the receipt, return and
issue of all property and equipment of the SK.

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Policies on Property and Equipment
Report on Inventory of Property and Equipment (RIPE) shall be prepared
annually by the inventory committee

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Financial and Other Reports

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Financial and Other Reports

Quarterly

a. Statement of Receipts and Expenditures (SRE) – Annex 30 –

submitted to the SK, SB and COA Auditor concerned within 15 days
after the end of each quarter.

b. Report of Accountability for Accountable Forms – submitted to the

SK Chairperson and COA Auditor concerned within 15 days after
the end of each quarter.

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Financial and Other Reports
Annually
a. Consolidated Statement of Receipts and Expenditures (CSRE) –
Annex 31 submitted to the SK, SB and COA Auditor concerned within 15 days
after the end of each year. The SK Treasurer shall post SRE in the barangay
bulletin board and in at least three conspicuous places within the jurisdiction of
the barangay, and if possible, include the use of traditional and non-traditional
media. (Section 15(e) of the IRR of RA 10742).

b. Report on Inventory of Supplies and Materials– submitted to the SK

and COA Auditor concerned not later than January 31 of the
following year.

c. Report on Inventory of Property and Equipment – submitted to the

SK and COA Auditor concerned not later than January 31 of the
following year.
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Financial and Other Reports

• The SK Secretary shall submit the quarterly Statement of Budget,
Disbursements and Balances and Statement of Funds Received with
Specific Purpose to the SK, SB and COA Auditor concerned within
15 days after the end of each quarter.

• The SK shall submit the annual and end-of-term program

accomplishments and financial reports to the SB and present the
same during the KK assembly; copy furnished the Local
Government Operations Officer, Local Youth Development
Council, National Youth Commission (NYC) and the COA auditor
concerned in accordance with the form prescribed by the DILG
and the NYC. (Section 8(g) of the IRR of RA 10742)

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CHART OF ACCOUNTS

Overview – Handbook on the Financial Transactions of the Sangguniang Kabataan

 List of Accounts to be Used by the SK per Revised Chart of Accounts for Local 32
Government Units issued under COA Circular No. 2015-009 dated December 1, 2015
ASSETS
Cash
Cash on Hand
Cash in Bank
Advances
Advances to Officers and Employees
Advances for Operating Expenses
Property and Equipment
Office Equipment
Information and Communication Technology Equipment
Sports Equipment
Transportation Equipment
Furnitures, Fixtures and Books
Other Property and Equipment

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LIABILITIES
Trust Liabilities
Trust Liabilities - SK Funds

REVENUE
Subsidy from Other Local Government Units
Grants and Donations in Cash
Grants and Donations in Kind
Interest Income
Miscellaneous Income
Other Property and Equipment

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 EXPENSES 34

Travelling Expenses
Training Expenses
Office Supplies Expenses
Accountable Forms Expenses
Other Supplies and Materials Expenses
Water Expenses
Electricity Expenses
Postage and Courier Services
Telephone Expenses
Internet Subscription Expenses
Prizes

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Repairs and Maintenance – Office Equipment

Repairs and Maintenance – Information and Communication
Technology Equipment
Repairs and Maintenance – Sports Equipment
Repairs and Maintenance – Transportation Equipment
Repairs and Maintenance – Furniture, Fixtures and Books
Repairs and Maintenance – Other Property, Plant and
Equipment
Fidelity Bond Premiums
Transportation and Delivery Expenses
Rent/Lease Expenses
Membership Dues and Contributions to Organizations
Honoraria
Bank Charges
Other Maintenance and Operating Expenses

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SK Accounting Plan
Appendix A shows the workflow of SK transactions from budget, collections and deposits, disbursements of SK
fund; receipt of property and equipment/supplies and materials; preparation of reports/documments summarizing
a transaction, recording of transactions and preparation of financial reports.

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 Accounting Plan - Budget 37

Funds Received
BUDGET for Specific Disbursement
Purpose

Supplemental Released Check /Cash

Annual Budget Annual Budget Advances
Budget Budget
Source Official Receipt Official Receipt
Documents/ SK Resolution SK Resolution 10% of Cash For funds received DVs/Checks/SDs
Received from the with specific LRs
Basis Barangay purpose

Record of Budget, Disbursements and Balances – Record of Funds

Maintenance and Other Operating Expenses (RBDBMOOE) Received for
Record Specific Purpose
Record of Budget, Disbursements and Balances – (RFRSPMOOE)/
Maintenance and Other Operating Expenses (RBDBMOOE) (RFRSPCO)

Statement of Funds
Report Statement of Budget, Disbursements and Balances Received for Specific
Purpose

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Accounting Plan – Cash Transactions
CASH TRANSACTIONS
Collections and Deposits Disbursements
Collections Deposits Check Cash Advances

Source Official Deposit DVs/Checks DVs/Checks

Document Receipts/SD Slips/SD /SDs LR/SDs

Register Cash Receipts Cash in Bank

Register Register

Statement of Receipts
Statement and Expenditures

Overview – Handbook on the Financial Transactions of the Sangguniang Kabataan

 EO 292 (1987 Administrative Code of the Philippines) 39

Section 57, Chapter VI, Book. Failure to Submit Reports. - Failure on the part
of agency heads, chief accountants, budget officers, cashiers, disbursing
officers, administrative and personnel officers, and responsible officers of
departments, bureaus, offices and agencies to submit trial balances, work
and financial plans, special Budgets, reports of operation and income,
plans, special budgets, reports of operation and income, current agency
plantilla of personnel and such other reports as may be necessary and
required by the Department of Budget shall automatically cause the
suspension of payment of their salaries until they have complied with the
requirements of the Department of Budget. No appropriation authorized in
the General Appropriations Act shall be made available to pay the salary
of any official or employee who violates the provisions of this section, in
addition to any disciplinary action that may be instituted against such
erring official or employee

(Section 122 – PD 1445, State Audit Code of the Philippines)

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Overview – Handbook on the Financial Transactions of the Sangguniang Kabataan