Module 4 - Revenues and Other Receipts.pdf - 1 Accounting...

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1 Accounting for Government and Non-Profit Organizations Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in equity, other than increases relating to contributions from owners. Revenue includes only those that are received or receivable by the entity in its own account. Receipts refer to actual cash collections from all sources during a period. FUNDAMENTAL PRINCIPLES FOR REVENUE a. All revenues of an entity shall be remitted to the National Treasury and included in the General Fund of the National Government, unless another law specifically allows otherwise. b. All moneys and property received by a public officer, acting in any capacity or upon any occasion, shall be accounted for as government funds and government property, unless another law specifically states otherwise. c. Amounts received in trust and from business-type activities of the government may be separately recorded and disbursed in accordance with relevant rules. d. Receipts shall be recorded as revenue of Special, Fiduciary or Trust Funds, or Funds other than the General Fund only when authorized by law. e. A collecting officer shall immediately issue an official receipt (OR) upon collecting a payment of any nature. f. Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash receipts, the COA may approve, upon request, the exemption from the use of accountable forms. g. Temporary receipts shall never be used to acknowledge the receipt of public funds. h. Pre-numbered official receipts (ORs) shall be issued in strict numerical sequence. Duplicate copies shall be the exact copies of the original. i. A collecting officer shall accept payments to the government in the form checks, upon proper endorsement and identification of the payee or endorsee. The collecting officer shall not use government funds to encash private checks. j. Receipts of government funds shall be acknowledged in accordance with the law - indicating the date of receipt, from whom and on what account the fund was received. (P.D. No. 1445 & Chapter 2. Sec. 4 of GAM for NGAs) Module 4: Revenues and Other Receipts