accounting policy powerpoint presentation
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ACCOUNTING POLICY
CHILDRENS JOYFOUNDATION
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I. INTRODUCTION
This manual has been prepared to
document the internal accounting
procedures for the Childrens JoyFoundation, Inc. This purpose is to ensure
that assets are safeguarded, that financial
statements are in conformity
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with generally accepted accountingprinciples, that existing laws and
regulations are complied with in good faith
and that finances are managed withresponsible stewardship.
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II. RESPONSIBILITY OF USER STAFF
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All personnel with a role in the
management of Childrens Joy Foundation,Inc. financial operation are expected to
uphold the policies in this manual. It is the
intention of ChildrensJoy Foundation, Inc.that this manual serves as our
commitment to proper, consistent and
accurate financial management and
reporting.
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III. FINANCIAL MANAGEMENT
STRUCTURE
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The financial management of ChildrensJoy
Foundation, Inc. will be the responsibility of
the Board, the Executive Director, and the
Finance Department of the foundation.
Financial management function includes:
Planning, budgeting and forecasting
Work and Financial Plan
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Control- accounting, financial and compliance
reporting, procurement and general financial
administration such as payroll and financial
analysis
Evaluating and selecting sources of funds
Monitoring the application of Funds
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IV. DIVISION OF DUTIES
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All individuals involved in the financial
process, through the performance of their
control duties, are expected to ensure that
each transaction is appropriate, valid,
reasonable, funded and accurately and
timely recorded. Divisions of duties are as
follows:
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a. Board of Trustees
The Board usually delegates the responsibilities
of financial management to the Finance
Department. The board is responsible to:
Review and approve Work and Financial
Plan
Review and approve all financial reports
Review application of funds according to
approved Work and Financial Plan
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b. Executive Director
The Executive Director is the head of the operationof the Foundation. He/ She reports directly to the
Board of Trustee and is responsible to:
Execute or implement all policies and directives
mandated by the Board of Trustees.
Set direction of the Foundation based on the
vision, mission, goals and objectives of the
Foundation. Supervise and monitor the operation of the
Foundation.
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Prepare monthly progress and annual accomplishment
report to the Board of Trustees and to governmentagencies where such reports are required.
Establish linkages and networks with other civil society
organizations, government agencies, and local
government units to build partnership and workingcoordination.
Represent the Foundation in activities where the
participation of the foundation is needed or in
activities as mandated by the Board of Trustees.
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Ensure that funds are applied to intended
purposes
Review and approve all financial reports to be
presented to the Board
Authorize all inter-fund transfers
Review and approve advances to employees
Review and approve all vouchers, invoices and
checks
Approve all reimbursements
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c. Finance Officer
He/She is responsible to:
Review and approve financial reports
Ensure compliance in financial reporting andtimely submission of reports to regulators
Review vouchers and invoices that requireshis/her signature
Review request for fund transfers
Review payroll summary for the correct payee,hours worked and check amount
Review reimbursements
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d. Accountant
He/She is responsible to:
Ensures that financial records are maintained incompliance with lawful and accepted procedures andpolicies
Review the payroll, including payroll tax returns.
Conduct random petty cash count Review bank reconciliations
Prepare monthly financial reports under thesupervision of the Finance Officer compliant to BIR,
SEC and DSWD. Double checks all reimbursement requests against
receipts provided
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e. Bookkeeper
He/She is responsible to:
Under the supervision of the accountant, the mainresponsibility of the bookkeeper is to keep andmaintain all required accounting books and recordsapplicable to the operation of the foundation.
Review proper authorization of transactions prior torecording
Maintains and reconciles the general ledger monthly.
Summarize monthly receipts, disbursements and
adjustments made Prepare bank reconciliation
Prepare lapsing schedule
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g. Cashier
He/She is responsible to:
Manages the petty cash fund
Prepare liquidation of petty cash upon
reimbursement.
Double checks all reimbursement requests
against receipts provided
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1.1 Basis of Accounting
The financial statements of Childrens Joy
Foundation, Inc. will be prepared in
accordance with Philippine Financial Reporting
Standard for Small Medium-Enterprise (PRFS
for SMEs). It requires management to exercise
professional judgment in the process of
applying the foundations accounting policy.
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Accounting estimate and assumption are
use in preparing the financial statements.
Although these estimates are based on
managements best knowledge ofcurrent events and actions, actual result
may ultimately differ from estimates.
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Childrens Joy Foundation, Inc. shall apply
accrued based accounting method.
Revenue and grants/donations shall berecorded in the accounting period it is
received and expenses recognized when
incurred.
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Changes in accounting estimates will be
accounted for prospectively.
Prior period errors will be corrected
retrospectively unless impracticable
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1.2 Property and Equipment
Properties, Plant and equipment arecarried at cost less accumulated
depreciation. The initial cost of
property and equipment comprisesits purchase price, including import
duties,
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Depreciation shall be computed using the
straight-line method over the following
estimated useful life of the properties and
equipment:
Asset Type Estimated Life in Years
Buildings & Improvements 20
Transportation Equipment 5
Furniture and Fixtures 5
Communication Equipment 3
Office & Other Equipment 5
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Useful lives and method of depreciation
are reviewed and adjusted prospectively
if appropriate, if there is an indication of
a significant change since the last
reporting date to ensure that periods and
method of depreciation are consistent
with the expected economic benefits of
property and equipment.
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If parts are replaced, the cost will be added to
the carrying value of the asset if it is expected
to provide incremental economic benefit. If
not, then the repairs will be expensed.
Fully depreciated assets are retained in
accounts until they are no longer in use and no
further depreciation is charged to the current
operation.
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Construction in progress is stated at costless any recognized impairment loss. This
includes the costs of construction and
other direct costs. Construction inprogress is not depreciated until such
time that the relevant assets ate
completed and put into operations.
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1.3 Fund Accounting
The Foundation is a not-for-profitorganization that employs the fund
method of accounting to ensure the
compliance with limitations andrestrictions placed on the use of its
financial resources available to the
foundation.
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The accounts of the foundation are
maintained in accordance with the
principles of fund accounting in which
resources for various purposes areclassified for accounting and reporting
purposes into funds established according
to their nature and purposes.
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1.4 Revenue and Expenses
The Foundation recognizes income from fundraising activities and bequest whenunassailable right to the gift has beenestablished and the proceeds are measurable
in amount.
Expenses are the gross outflow of economicbenefits during the period in the course of
ordinary activities when those outflows resultin decrease of fund balance.
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VI. GENERAL ACCOUNTS
STRUCTURE
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The structure of accounts is shown in the
chart of accounts. The chart is an
indication of how the accounts should beexpected to look like. Please see Annex.
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A. Cash Management
Central Office maintains general accountwhere funds for operations provided by the
Kingdom of Jesus Christ and donations are
deposited.
Operating cash shall be provided by the
Kingdom of Jesus Christ upon request which
shall form part of their contribution.
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A Cash Book to record all cash transactions
deposits and withdrawalsupdating the cash
balance on had shall be used.
All cash disbursements shall be duly
authorized and supporting document
documentation attached to the paymentvoucher. Authorized signatories for
withdrawal of funds are the BOT Treasurer
and the Executive Director.
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Supporting documents shall be stamped paid
and the date written when paid.
The party receiving the cash must sign to
confirm receipts of funds.
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All requests for petty cash must be approved
and signed by the Executive Director at the
Head Office operation and Center Head at thecenter level transaction using the pre-
numbered Petty Cash Voucher.
Petty Cash Fund should be replenished whenthe remaining amount reaches the 20%
threshold. A check to replenish the fund shall
be issued after liquidation by the custodian.
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Petty Cash expenditure shall be liquidated
within 3-5 days upon receipt and must be
supported with proper documents e.g.
receipts, certificate of appearance etc.
The cash and vouchers shall be kept in locked
box or safe.
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C. Documentation
The following is the description of the standard
forms to be used in documenting transactions
and expenditures:
a. Check/Cash Voucher and Petty Cash Voucher
The check/cash voucher/petty cash voucher
form is the main document of record and
authority of all payments.
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b. Requisition Form
The requisition form shall be the original
document of record of all approval of requests
for payments. The form is be completed by the
staff requesting payment. It shall prove the
authority to incur such expense.
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The request should be checked and
recommended by Finance Officer andapproved by the Executive Director. It
shall contain the name and the signature
of the staff making the requisition andthe purpose of the requisition. The
requisition form shall be pre-numbered.
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c. Field Travel Claim Form
Field Claim Form is the document of record of
per diem and all other expenses incurred by
staff during field trips.
This form shall be used in claiming for
expenses incurred by the staff while on
fieldwork/ official business or in accounting for
monies advanced for travel expenses and any
other expenses.
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This form is designed to collect
information on the name of the traveler,
rate used, and other travel expenses.
Staff making claim on travel or
submitting returns on travel advances
will be required to complete this form.
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All travel must be authorized by the
Executive Director and signed by theAdmin/Center Head on the field
authorization form. No claims for
reimbursements shall be honored withoutthese authorizations.
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d. Debit Memo (DM)
Debit Memo is the main document to record
transactions such as fund transfers, returned
checks, bank charges and etc.
It shall be pre-numbered.
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Validated copy of Application for
Miscellaneous Transactions should be
attached to the related DM as evidence
of the actual transfer.
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e. Employee Personal Data Form (201 file)
The employee bio-data is the document
in which all source information on
salaries, tax and statutory deductions
shall be recorded.
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D. Control
The emphasis on budget control shall be used in
ensuring that expenses conform to approved
budget limits, financial plans, standard
provisions and Childrens Joy Foundation policies
and procedures.
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All intended expenditures should be checked
against the budget, quarterly financial plan
and the overall position of all availability offunds at the stage of requisitioning.
For the purposes of control, each budget lineitem has sub-classifications, which form the
main budget line item; the budgetary control
shall be used primarily on these sub-line itemlimits
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Budgetary control shall be monitored
quarterly by the means of the following;
Childrens Joy Foundation, Inc. variance
Reports
Monitoring and evaluation of the internal
control procedures
Requisitioning, checking and authorization
shall be done by different staffs.
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E. Authorization
The authorization to incur expense shall be
issued by the Executive Director.
Authorization shall be done on all documents
supporting an expense, namely, the requisition
form, check/cash voucher, pay slip, cash
advance form, etc.
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Fixed assets purchased shall be authorized by
the management of Childrens Joy Foundation,
Inc. However, the BOT shall give approval for
capital expenditure of value exceeding
Php100, 000. Childrens Joy Foundation, Inc.
shall request the authority to incur
expenditure by way of officially writing to the
chairman of the BOT, unless included in theapproved Work and Financial Plan.
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Before authorizing an expense, the executive
Director and Admin Head shall ensure that thebudget control and procurement procedures
have been completed and that the purpose of
the expenses is stated clearly and is indeedallowable. Should she/he authorize an
expense that exceeds the limit, he/she shall
indicate the reason warranting suchauthorization.
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F. Budget Preparation,
Approval and Authorization
The Deputy for Operation is liaison with the
Executive Director and management team.
Other staff shall annually prepare Work and
Financial Plan for Childrens Joy Foundation,
Inc. Work and Financial Plan shall cover
either the stipulated period or calendar(financial) year whichever is appropriate.
Th E ti Di t th b d t
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The Executive Director approves the budgetsand presents it to the board for authorization.
Childrens Joy Foundation, Inc. shall spendwithin the approved budget. Budgets shall bemonitored by way of variance analysis in the
respective reports.
The board, prior to execution, must approve
new contracts, agreements and theaccompanying budgets.
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VII. ACCOUNTABILITY
A CASH RECEIPTS PROCEDURE
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A. CASH RECEIPTS PROCEDURE
Official receipts (OR) shall be issued uponreceipt of subsidies, grants and donationsreceived by the Center.
The Cashier is the person authorized to issuethe official receipt. All cash donations receivedfor the day should be immediately deposited
to the official depository bank of theFoundation.
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A summary of cash receipts should be
prepared on a daily basis.
Duplicate copy of OR should be attached to
the summary of receipts. Together with the
validated copy of deposit slip, the former isforwarded to the Central Office for proper
accounting and reference. These shall form
part of the Cash Receipts (CR) Package.
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All CR Package should be filed according tomonth received.
Based on the information provided in the CRPackage, the bookkeeper records the cash
receipts in the Cash Receipts Book.
All receipts should be recorded on a cashreceipts book which states the name,company, location of the sponsor and amountof sponsorship.
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The following bank accounts are maintained by
the Childrens Joy Foundation, Inc. at
Metropolitan Bank Trust and Company for thefollowing shelters:
Location Bank Account Number
1. Cavite 564-3-56400718-9
2. Butuan 564-3-56400715-4
3. Cebu 564-3-56400716-2
4. Pampanga 564-3-56400720-05. Davao 564-3-56400714-6
6. Quezon City 339-7-33951517-0
7. Laguna 564-3-56400717-0
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A.1 Inter-Fund Transfers
All funds received should be deposited in the
mother account. It will be necessary to
transfer funds from the mother account into
the bank accounts maintained by each shelteror employee bank accounts in case of payroll;
the following procedures should be followed:
h ff h ld h
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The Finance Officer should monitor the
balance in the checking account, and
determine if there are adequate funds to paythe daily expense.
In case of fund transfer for payroll, theaccounting staff should prepare a request for
payment. It should be supported with a duly
approved debit memorandum.
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The Accounting Staff should prepare a Debit
Memo (DM) subject for review of the Finance
Officer for approval of the Executive Director
to transfer the necessary amounts from the
mother account to the bank accountsmaintained by other shelters. These transfers
will occur concurrently with the associated
disbursements.
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B. PAYMENT PROCEDURES
Payments may be made either in cash, by bank
check/transfer.
B.1 Cash Payment
Cash Payments made through the petty cash
shall:
Be limited to items not exceeding Php 1,000.
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In as far as possible be restricted to payments
of petty general office expense such as:transportation, communication expense, office
supplies (emergency cases only, not part of the
regular requisition), representation, minorrepairs and maintenance and miscellaneous
expenses in attending to official functions.
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Cash payments shall be made only to the
payee who must acknowledge receipt thereof,
by signing the voucher
Bear evidence of authorization by the finance
officer/Admin Head
IOUs shall not be made out of petty cash
without prior authority of the Executive
Director
Th t di f th h h ll b th fi i l
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The custodian of the cash shall be the financial
in-charge who is responsible in disbursement
and recording.
Petty cash expenditure shall be liquidated
within 3-5 days upon receipt and must besupported with proper documents e.g.
receipts, certificate of appearance, etc.
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B 2 Check payment
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B.2 Check payment
Check payments or transfers shall be made on
the strength of a completed and dulyauthorized voucher
Payment vouchers must be accompanied by aduly authorized requisition form or any otherrelevant supporting documents such asinvoice, cash sales, bills, duly authorized
schedules, copies of contracts/ agreements,Cash advance form or any other suchdocument.
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Check should be paid to payees who must
acknowledge receipt thereof by signing the
voucher.
All documents accompanying a payment
voucher shall be stamped PAID after the
payment has been made.
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Cancelled checks shall be attached to the
relevant payment voucher. Fresh checks shall
be prepared with fresh payment voucher and
vice versa. The cancelled and fresh
documentation shall be cross-referenced toenhance audit trail, deter and detect
irregularities.
C SALARIES ADVANCES AND
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C. SALARIES , ADVANCES AND
OTHER BENEFITS
C.1 Salaries
The following is the procedure on salaries:
All permanent employees shall be issued withappointment letters signed by the ExecutiveDirector and employee- signing acceptance of theterms and conditions set forth thereto. The
appointment letter shall contain the initial salary,responsibilities, duties and general terms andconditions.
Subsequent changes in salary responsibilities
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Subsequent changes in salary, responsibilities,
duties, terms or conditions of employment
shall be communicated to the employee inwriting.
A personal file (201) shall be opened for everyemployee. Copies of job application letters,
Appointment letters and any other
correspondence between Childrens joyFoundation, Inc. and the employee shall be
kept on this file.
Salaries shall be paid monthly in arrears A
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Salaries shall be paid monthly in arrears. A
salary schedule showing gross pay, advances,
deductions and net pay shall be prepared bythe bookkeeper, checked and verified by the
Accountant and approved by the Executive
Director prior to preparation of paymentvouchers and the check
Salaries shall be paid by check through therespective bank accounts.
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Employees shall be issued with a pay slip every
month, which will show the computation ofhis/her net salary.
Signing the payment vouchers for the net pay,and the monthly transfer sheets where
applicable shall evidence authorization of
salary payments.
C 2 S l Ad
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C.2 Salary Advances
Salary advances shall be given upon request
and approval by the Executive Director.
Salary Advances by a staff shall be deducted to
his payroll for a particular month.
There shall be no salary advances unless
previous salary advances have been fully paid.
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Salary advances shall not exceed the net pay of
the staff for a particular month.
An advance ledger account should be opened
and reconciled at every month. However, all
advances should be approved based to the
availability of funds.
C 3 Advances Subject to Liquidation (ASTL)
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C.3 Advances Subject to Liquidation (ASTL)
This shall include advances made to
employees for official business/ transaction
which are subject to liquidation after the
completion of the purpose. This shall includetravel and transportation, representation, per
diem and other expenses related to official
business/ transaction. The followingguidelines shall apply:
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Request for cash advances shall be made five
(5) days prior to the actual date of travel.
A separate staff debtor account shall be
opened for each advance granted.
C 3 A Tra el and Transportation
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C.3-A Travel and Transportation
Travel and transportation allowances shall be
provided by the Foundation in the case an
employee is required to transact official
business outside of area assignment. Thefollowing guidelines shall apply:
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This shall be initially requested as ASTL to be
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This shall be initially requested as ASTL to be
liquidated upon the completion of the purpose
of the advances made.
All expenses incurred should be duly
supported with ORs named after ChildrensJoy Foundation, Inc., except for per diem and
fares to public utility vehicle. Nonetheless, this
should be included in the liquidation report.
C 3 B Representation
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C.3-B Representation
The center shall set aside for reception of
guest and for staff meetings
A representation cost shall be provided to any
staff who will attend meetings or other
activities which require the participation of
the Foundation.
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The representation cost is taken from the
petty cash fund subject to allowable amountof petty cash fund.
In the case, required amount exceeds the
established limit, representation expense
should be requested as ASTL.
C.3-C Liquidation of Cash Advances
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q
There will be no cash advances extended toofficers or employees with outstanding/unliquidated advances, unless exception isapproved by the Executive Director.
Liquidation of the advances shall be madewithin 3 days after the completion of thepurpose. Expenses incurred in relation to thepurpose of advances made should be
supported with proper supporting documentslike Official Receipts (ORs). ORs should bename under Childrens Joy Foundation, Inc.
In case the purpose of C/A is moved or deferred,
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In case the purpose of C/A is moved or deferred,the officer/ employee shall return the money andrequest for the C/A once funds are needed.
Failure to liquidate on the prescribed time or toreturn the excess of cash advances will result on afull automatic deduction from the salary of the
officer/ employer in the immediately succeedingpayroll without prior reference to the employee.
In addition, accountings will not honor receiptsdated more than sixty (60) days old on the dateof liquidation.
D FIXED ASSETS
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D. FIXED ASSETS
It is the responsibility of the Property
Custodian to maintain a complete andaccurate fixed assets register. The fixed assets
register will be maintained on an excel
spreadsheet or a book and should have thefollowing details:
1. Identification or serial number
2 Acquisition Mode
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2. Acquisition Mode
3. Description of assets
4. Location
5. Class of asset
6. Cost of Acquisition
7. Accumulated Depreciation
8. Net book Value
The Property Custodian should ensure that
all the assets tagged with identification codes.
Recognition of Depreciation
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Recognition of Depreciation
At the end of every month, the bookkeepershould prepare a depreciation schedule foreach of the items using depreciation ratesdescribed in Accounting Policies and
ProceduresDepreciation.
The Accountant should review the schedulesand sign them as evidence of the review. The
Bookkeeper shall update the fixed assetregister based on the list provided by theProperty Custodian.
Accounting for Fixed Assets Addition
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Accounting for Fixed Assets Addition
Recording and payment for the
acquisition of fixed assets shall be as per
payment procedures
On delivery, the asset shall be classified,
tagged and recorded in the fixed assetsinventory register.
Accounting for Disposal of Asset
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Accounting for Disposal of Asset
The Board of Directors (BOD) must approve
disposal of fixed assets. No assets should be
disposed of without the written authorization
of the BOD.
E GENERAL JOURNAL
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E. GENERAL JOURNAL
Overview
In this section, the manual describes the
procedures that must be followed when
processing transactions to the general journal
other than payments, receipts and invoices.These transactions are meant to:
Correct errors made in the input of invoices
Write off balances
Correct posting made to supplier/debtor
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Correct posting made to supplier/debtoraccount
Record Payroll deductions Record fixed asset depreciation
Record disposal of asset
Correct errors in the input of receipts orpayments
Record accruals
Record re-allocation of expenses
Record liquidation of the advances made
Process any other transaction that cannot be
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y
processed through the cash book
The above transactions should be
processed by means of a general journal. It is the
responsibility of the Accountant to review allgeneral journals and then forward them to the
Finance Manager for approval. The Accountant
has to ensure that all the journals are correctlyposted to the ledger.
Preparation and Authorization
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p
of General Ledgers
The Bookkeeper must complete a pre-
numbered general journal entry form for all
journals:
Details of the nature of the transaction for
which the journal is being raised must be
entered on the form.
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Processing
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g
For processing the journal, the bookkeeper
should print the general journal report. It is the responsibility of the Accountant to
check the entry and confirm that journals are
entered in the books correctly. The Bookkeeper should sign the JV and the
printout as evidence that this check has been
carried out and pass them onto theAccountant for review.
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Accountant will review and sign to evidence
review. The JV and print out are then filled in asequential order.
When the Accountant identifies errors that
have been made, he/she should initiateappropriate correction general journal.
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ANNEXCHART OF ACCOUNTS
No Account Title
To
Increase
Description/ Explanation of
Accounts
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ASSET ACCOUNT
101 Cash Debit
Checking account balance (asshown in company records),
currency, coins, checks received
120
Advances to Other
Shelters Debit
130 Supplies Debit
Cost of supplies that have not been
used. Supplies that have been used
are recorded in Supplies Expense.
170 Building Debit
Cost to purchase or construct
buildings for use by the company
175
Accumulated
Depreciation-
Building Credit
Amount of the buildings cost that
has been allocated to depreciation
expense since the time the building
was acquired.
No Account Title To Increase
Description/ Explanation of
Accounts
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No Account Title To Increase Accounts
ASSET ACCOUNT
180 Equipment Debit
Cost to acquire and prepare
equipment for use by the
foundation.
185
Accumulated
Depreciation -Equipment Credit
Amount of equipments cost that
has been allocated to depreciation
expense since the time theequipment was acquired.
190 Furniture & Fixtures Debit
Cost to acquire and prepare
furniture and fixtures for use by
the foundation.
195
Accumulated
Depreciation
Furniture & Fixtures Credit
Amount of furniture & fixtures
cost that has been allocated to
depreciation expense since the
time the equipment was acquired.
To Description/ Explanation of
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No Account Title Increase Accounts
LIABILITY ACCOUNTS
210 Accounts Payable Credit
Amount owed to suppliers who
provided goods and services to the
foundation but did not require
immediate payment in cash.
220 Wages Payable Credit
Amount owed to employees forservices rendered but was not yet
paid.
230 HDMF Premium Payable Credit
Employee contribution to Home
Development Mutual Fund withheld
by the foundation.
To Description/ Explanation of
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240
PHIC Premium
Payable Credit
Employee contribution to Philippine
Health Insurance Corporation (PHIC)
withheld by the foundation.
250 SSS Premium Payable Credit
Social Security System (SSS)premiums/ contribution withheld by
the foundation.
260
Withholding Tax
Payable Credit
Income Tax withheld from
employees salaries and paid directly
to the government agency by the
employer.
No Account Title
To
Increase
Description/ Explanation of
Accounts
LIABILITY ACCOUNTS
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No Account Title
To
Increase
Description/ Explanation of
Accounts
FUND BALANCE
300 Fund Balance Credit
The accumulation of revenues
minus expenditures.
To Description/ Explanation of
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REVENUE
401 KJC Contribution Credit
Amount contributed by the
founding president
402 Donations Credit
Amount/ property transferred to
the foundation out of gratuity.
403 Interest Income Credit
Interest earned on cash
temporarily held in
savings/checking account.
No Account Title Increase Accounts
To Description/ Explanation of
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EXPENSES
500 ADMINISTRATIVE EXPENSE
505 Personal Supplies-staff Debit
This shall include personal supplies
provided to in-house staff located
in each shelter.
510 Staff Development Debit
This shall include programsintended for staff development
such as trainings and seminars.
511 Trainings and Seminars Debit
Costs of meals/supplies and other
items related to regular and special
meetings and seminars for the
period
515 Salaries & Wages Debit
Remuneration to employees for
work done
No Account Title Increase Accounts
To Description/ Explanation of
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EXPENSES500 ADMINISTRATIVE EXPENSE
No Account Title Increase Accounts
516 Employee Benefit Debit
Benefits provided to employees
apart from the basic remuneration
517 Honorarium Debit
Benefit regularly provided to staffs
in honor of their service
520 SSS Contribution Debit
Employers share employees SSS
contribution
525 HDMF Contribution Debit
Employers share employees
HDMF contribution
530 PHIC Contribution Debit
Employers share employees PHIC
contribution
535 Office Supplies Debit
30% of supplies used in the shelter
for the period
To Description/ Explanation of
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540 Rental Debit
Cost of occupying rented facilities
during the accounting period
550 Utilities Debit
551-Communication Debit
30% of cost of telephone/ load/
internet used for administrative
purposes during the period
553-Light & Power Debit
30% of cost of electricity used in
the office during the accountingperiod
554- Water Debit
30% of cost of water in the office
used during the accounting period
No Account Title Increase Accounts
EXPENSES500 ADMINISTRATIVE EXPENSE
To Description/ Explanation of
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No Account Title Increase Accounts
EXPENSES500 ADMINISTRATIVE EXPENSE
560 Transportation Debit
Transportation cost in the course
of business. Includes 30% of the
fuel consumed by the shelter
561
Monitoring &
Evaluation Debit
Cost of airfare and other expensesrelated to monitoring the
operations
565
Repairs and
Maintenance Debit
Expense are defined as any costs
incurred to an asset that do not
significantly the quality or quantity.
570 Representation Debit
Expenditures whose primarily
intended to represent/ entertain
third parties.
To Description/ Explanation of
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No Account Title Increase Accounts
EXPENSES500 ADMINISTRATIVE EXPENSE
575 Improvements Debit
Improvements such as additions,
alterations, remodeling or
renovations.
580Taxes, Permits &Licenses Debit
Payments made to governmentagencies
585 Postage Debit
Mailing charges related to the
operation
To Description/ Explanation of
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No Account Title Increase Accounts
EXPENSES500 ADMINISTRATIVE EXPENSE
590 Miscellaneous Debit
Other expenses incurred in the
course of business that do not
qualify to the definition above.
591- Advertising
Expense Debit
Cost incurred by the foundationduring the accounting period for
ads and promotions
592- Bank Charges Debit
595 Depreciation Expense Debit
Cost of long-term assets allocated
to expense during the accounting
period
596 Legal fee Debit
Fees and other charges paid in
relation to litigation
To Description/ Explanation of
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600 RESIDENTIAL SERVICES
No Account Title Increase Accounts
610
Food and
Subsistence Debit
Food and other subsistence
provided to the shelters which
includes expenses 611-614
611- Food
Subsistence Debit
612- Bedding
Supplies Debit
613- Clothing Debit
Medicines and
vitamins
614- Staff Subsidy Debit
EXPENSES
l
To Description/ Explanation of
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No Account Title Increase Accounts
600 RESIDENTIAL SERVICES
615
Personal Supplies
Children Debit
Personal supplies provided to
children in the shelters
Personal Supplies-
Staff
EXPENSES
To Description/ Explanation of
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No Account Title Increase
p / p
Accounts
600 RESIDENTIAL SERVICES
620
Educational
Assistance
Educational assistance extended to
children that includes the expenses
described in 621-628
621-School Supplies Debit
622-School
Uniforms Debit
623-Shoes Debit
624-School Bags Debit625- School
Allowance Debit
EXPENSES
To Description/ Explanation of
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626- EnrollmentFees/ School Fees Debit
627-School Projects Debit
628-Educational
Field Study/ tour Debit
620
Educational
Assistance
Educational assistance extended to
children that includes the expenses
described in 621-628
600 RESIDENTIAL SERVICES
No Account Title Increase
p p
Accounts
EXPENSES
N A t Titl
To
I
Description/ Explanation of
A t
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No Account Title Increase Accounts
600 RESIDENTIAL SERVICES
630 Professional Fee Debit Payment made to
635
Medical and Dental
Services Debit Medicine and Vitamins
640 Transportation DebitTransportation cost in the courseof business
Household and
Kitchen Supplies
EXPENSES
To Description/ Explanation of
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645 Household Expense Debit
Household expenses incurred by
each shelter in the conduct of its
purpose
Salaries andAllowances
Skills
development/value
formation training
No Account Title Increase Accounts
EXPENSES600 RESIDENTIAL SERVICES
To Description/ Explanation of
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No Account Title
To
Increase
Description/ Explanation of
Accounts
600 RESIDENTIAL SERVICES
650
Sports and
Recreation Debit
Expenses incurred related to sportsand recreation of the children in
the shelter
660
Trainings and
Seminars Debit
Skills Development/ Values
Formation
665
Psychological
Services Debit
EXPENSES
No Acco nt Title
To
Increase
Description/ Explanation of
Acco nts
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No Account Title Increase Accounts
600 RESIDENTIAL SERVICES
670 Utilities Debit
Cost for electricity, light and water
used during the accounting period
671- Light and Power Debit
Cost of electricity used in the
shelters for the accounting period
672- Water Debit
Cost of water used in the shelters
for the accounting period
Communication
Other expenses incurred by the
EXPENSES
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