Version Date: 30 May 2008
- Purpose: This covers disbursements or payment exceeding P 2,000.00 or those not disburse from Petty Cash Fund.
- Coverage: All UA&P employees
- All disbursements, except those which are disbursed from the Petty Cash Fund, should be covered by checks drawn from the General Disbursements account.
- Requests for processing disbursements should be prepared by the Unit or School, endorsed or validated by an authorized approving officer from the Unit or School.
- Complete documents must be attached to the accomplished request for payment forms to support disbursement for goods and services. All supporting documents must be official and are copies of the original.
- All disbursement request must have budget provision.
- For unbudgeted disbursements, the OpCom or ManCom in-charge of the unit were granted authority to approve certain disbursements (Refer MAN 106/2007) for reasons of efficiency and expediency. MAN 106/2007 grants the following
- Disbursements not exceeding Php50,000 may be approved solely at the OpCom level, (for units other than OpComs: to have collegial approval, the following persons should approve the request: (a) Unit Head, (b) Director for Finance, and (c) ManCom member in charge of the unit. In case (a) and (c) are identical, another member of the Administrative Council, who is also a ManCom member, or his/her substitute in the ManCom can be asked to make a collegial decision)and need not be consulted with the ManCom. These include the following:
- A budgeted expense, the nature of which has been determined but specifics of which could not have been foreseen and, therefore, were not indicated in the budget (e.g., expenses for out-of-town seminars for faculty members);
- necessary unbudgeted expenses which could not have been foreseen (e.g., emergency repairs); and
- re-alignment of expenses appropriately justified and matched against the unspent expense budget of similar nature or within the same expense category (e.g., Office Supplies against unspent Photocopying expenses; Representation against unspent Travel; Building Supplies against unspent Electrical Supplies; Outside Printing against unspent Photocopying; etc…). Expenses not subject to re-alignment include:
- The “excess” or unspent funds from the approved manpower budget. These should not be re-aligned against other non-manpower related expenses because the bases for manpower justification are significantly different;
- The budget for depreciation which is normally earmarked for asset replacement; and
- As a rule, approved but unspent capex funds can only be re-aligned with unbudgeted capex items, not operating expenses.
- This authority applies provided that the applicable non-financial conditions are satisfied, i.e., consultation with the ManCom on items listed as requiring such consultations (cf. Annex), and policies and standard operating procedures governing specific expenses such as employee hiring and faculty/staff development activities (c/o HRM), capital expenditures (c/o FMU and/or MIS), publications and marketing materials (c/o CCO).
- The disbursement authority is a sub-limit of Php50,000 per approval subject to the cap of its overall expense budget.
- In exercising this authority, the Unit/OpCom should each time send a memo to FMR stating the nature of the unbudgeted expense, the amount and reason, and, if for realignment, the expense item(s) from which the unbudgeted expense will be offset.
- The exercise of the above authority by the Unit/OpCom shall be subject to the condition that the percentage of margin over revenue indicated in the ManCom-approved budget of the operating unit under its supervision is maintained after the unbudgeted expenditure. This means that if an operating unit expects to underperform its revenue target and/or to incur a bigger deficit as a result of the unbudgeted expense, this authority would not apply.
- Checks will be ready for release within one (1) day from the time the request is received by FMR and examined thereon as valid and approved. If any of the above items are missing, processing may be delayed. One-day processing of payments mean that when requests for payment received between 8:30 a.m. to 9:00 a.m., the check may be picked up not later than 5:00 p.m. of the same day. On the other hand, requests received at 9:30 a.m., 2:00 p.m., or 5:00 p.m., will be available for pick up at 9:30 a.m., 2:00 p.m., or 5:00 p.m. of the following day. Checks for suppliers are released on Fridays, except those with special arrangement with the University.
- The following internal control measures must be observed:
- All disbursements should be covered by pre-numbered check vouchers duly approved by validating signatories.
- No check shall be made payable to “Cash” or signed in blank to avoid unauthorized encashment of checks. Checks issued for Petty Cash Replenishment is made payable to the Petty Cash Custodian.
- In no particular case should the approving officer in the Request for Payment be the same as the Payee of the check. These should be two separate and distinct persons.
- The payee or any authorized person who receives the check should sign the voucher to acknowledge receipt of payment.
- To prevent double payment or re-use of the supporting invoices and receipts, all supporting documents should be properly defaced and stamped “PAID” after the payment has been processed.
- Cancelled checks should be properly mutilated by tearing the lower portion containing the signatures or defaced.
- Checks are mailed or released by an employee other than the person processing the check to avoid alterations on the signed checks and the supporting vouchers.
- Void or spoiled checks are cancelled and filed for audit purposes.
- Unused checks are kept in the custody of an officer or an employee not handling bookkeeping functions.
- Monthly bank reconciliation statements must be prepared promptly so that significant reconciling items may be investigated and cleared immediately.