Accounting Policy Powerpoint Presentation

8/12/2019 Accounting Policy Powerpoint Presentation

1/130

ACCOUNTING POLICY

CHILDRENS JOYFOUNDATION


2/130

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


3/130

with generally accepted accountingprinciples, that existing laws and

regulations are complied with in good faith

and that finances are managed withresponsible stewardship.


4/130

II. RESPONSIBILITY OF USER STAFF


5/130

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.


6/130

III. FINANCIAL MANAGEMENT

STRUCTURE


7/130

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


8/130

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


9/130

IV. DIVISION OF DUTIES


10/130

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:


11/130

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


12/130

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.


13/130

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.


14/130

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


15/130

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


16/130

d. Accountant


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


17/130

e. Bookkeeper


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


18/130


19/130

g. Cashier


Manages the petty cash fund

Prepare liquidation of petty cash upon

reimbursement.

Double checks all reimbursement requests

against receipts provided


20/130


21/130

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.


22/130


23/130

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.


24/130

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.


25/130


26/130


27/130

Changes in accounting estimates will be

accounted for prospectively.

Prior period errors will be corrected

retrospectively unless impracticable


28/130

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,


29/130


30/130

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


31/130

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.


32/130

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.


33/130

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.


34/130


35/130

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.


36/130

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.


37/130

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.


38/130

VI. GENERAL ACCOUNTS

STRUCTURE


39/130


40/130

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.


41/130

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.


42/130

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.


43/130

Supporting documents shall be stamped paid

and the date written when paid.

The party receiving the cash must sign to

confirm receipts of funds.


44/130


45/130

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.


46/130

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.


47/130

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.


48/130


49/130


50/130

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.


51/130

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.


52/130

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.


53/130

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.


54/130

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.


55/130

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.


56/130


57/130

Validated copy of Application for

Miscellaneous Transactions should be

attached to the related DM as evidence

of the actual transfer.


58/130

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.


59/130

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.


60/130

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


61/130

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.


62/130

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.


63/130

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.


64/130

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.


65/130

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


66/130

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.


67/130

VII. ACCOUNTABILITY

A CASH RECEIPTS PROCEDURE


68/130

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.


69/130

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.


70/130

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.


71/130

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


72/130

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


73/130

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.


74/130

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.


75/130

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.


76/130

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.


77/130

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


78/130

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.


79/130

B 2 Check payment


80/130

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.


81/130

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.


82/130

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


83/130

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


84/130

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


85/130

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.


86/130

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


87/130

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.


88/130

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)


89/130

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:


90/130

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


91/130

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:


92/130

This shall be initially requested as ASTL to be


93/130

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


94/130

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.


95/130

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


96/130

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,


97/130

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


98/130

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


99/130

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


100/130

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


101/130

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


102/130

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


103/130

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


104/130

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


105/130

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


106/130

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.


107/130

Processing


108/130

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.


109/130

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.


110/130

ANNEXCHART OF ACCOUNTS

No Account Title

To

Increase

Description/ Explanation of

Accounts


111/130

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


Accounts


112/130

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


113/130

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.



114/130

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


Accounts

LIABILITY ACCOUNTS


115/130

No Account Title

To

Increase


Accounts

FUND BALANCE

300 Fund Balance Credit

The accumulation of revenues

minus expenditures.



116/130

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.




117/130

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




118/130

EXPENSES500 ADMINISTRATIVE EXPENSE


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



119/130

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





120/130



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.



121/130



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



122/130



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



123/130

600 RESIDENTIAL SERVICES


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



124/130



615

Personal Supplies

Children Debit

Personal supplies provided to

children in the shelters

Personal Supplies-

Staff

EXPENSES



125/130

No Account Title Increase

p / p

Accounts


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



126/130

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


No Account Title Increase

p p

Accounts

EXPENSES

N A t Titl

To

I


A t


127/130



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



128/130

645 Household Expense Debit

Household expenses incurred by

each shelter in the conduct of its

purpose

Salaries andAllowances

Skills

development/value

formation training


EXPENSES600 RESIDENTIAL SERVICES



129/130

No Account Title

To

Increase


Accounts


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


Acco nts


130/130



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

Accounting Policy Powerpoint Presentation

Documents

Transcript of Accounting Policy Powerpoint Presentation