Government Accounting: Disbursements, Revenues, and Other Receipts

Vocabulary practice flashcards defining key accounting terminology, disbursement modes, fund categories, and revenue sources for government entities.

Disbursements

All government payments made via cash, check, or other authorized financial channels, which must be supported by complete documentation such as Disbursement Vouchers, Petty Cash Vouchers, or Payroll.

Cash Disbursement Ceiling (CDC)

An authority issued by the DBM to agencies with foreign operations (e.g., DFA, DOLE) allowing them to use the income collected by their foreign service posts (FSP) to cover their operating needs.

Modified Disbursement System (MDS) Checks

Checks chargeable against the account of the Treasurer of the Philippines, maintained with different Modified Disbursement System-Government Servicing Banks (MGS-GSBs).

Commercial Checks

Checks chargeable against the Agency Checking Account with Government Servicing Banks (GSBs), covered by income or receipts authorized to be deposited with Authorized Government Depository Banks (AGDBs).

Advice to Debit Account (ADA)

An accountable form (specifically LDDAP-ADA) used as an authorization issued by a government agency instructing the MDS-GSB to debit a specified amount from its available NCA to pay listed creditors or payees.

Electronic Modified Disbursement System (eMDS)

A disbursement mechanism similar to ADA where subscribed government entities make online disbursements for selected transactions directly from BTr accounts maintained with Land Bank of the Philippines (LBP).

Cashless Purchase Card (CPC) System

A disbursement system utilizing an electronic credit card (issued by Citibank) for small-value, non-common use purchases from authorized merchants.

Non-Cash Availment Authority (NCAA)

An authority issued by the DBM to agencies to cover the liquidation of their actual obligations incurred against available allotments for availment of proceeds from loans or grants through supplier's credit or constructive cash.

Disallowances

Expenditures made by an agency that are subsequently invalidated or disallowed by the Commission on Audit (COA) because they are found to be irregular, unnecessary, and excessive.

Revenue

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.

Receipts

Actual cash collections received from all sources during a specific period.

Revenue Fund

Comprises all funds derived from the income of any government agency and available for appropriation or expenditure in accordance with the law.

General Fund

A fund which is available for any purpose other than those for which other funds have been designated.

Special Fund

A government fund designated for special purposes.

Trust Fund

A fund held by a government agency or public officer acting as trustee, agent, or administrator for the fulfillment of a condition.

Depository Fund

A fund held in an authorized depository bank over which the recipient agency retains control for the lawful purposes for which the fund was received.

Special Account in the General Fund (SAGF)

A fund established to facilitate the funding of priority activities of the government.

Special Purpose Funds (SPF)

Funds that the President allocates for special programs and projects, which are not under the accountability of any particular government agency, office, or unit.

Exchange Transactions

Transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange (reciprocal transfers).

Non-Exchange Transactions

Transactions in which an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value without directly receiving equal value in exchange (non-reciprocal transfers).

Service Income

Revenue derived from non-business regulatory or administrative services, such as permit fees, registration fees, franchising fees, licensing fees, legal fees, and passport and visa fees.

Business Income

Revenue derived from government operations of a commercial nature, such as school fees, examination fees, rent/lease income, hospital fees, dormitories, and sales revenue.

Interest Income

Revenue charges for the use of cash or cash equivalents, or amounts due to the entity.

Royalties

Fees paid for the use of an entity's assets, such as trademarks, patents, software, and copyrights.

Dividends

The share of the National Government from the earnings of its capital or equity investments in Government-Owned or Controlled Corporations (GOCCs) and other entities.

Tax Expenditures

Concessions or preferential provisions granted to specific taxpayers, which are treated as foregone revenue rather than expenses.

Bequests

Transfers made according to the provisions of a deceased person's will, recognized as revenue at the fair value of the resources received or receivable when asset criteria are met.

Pledges

Unenforceable undertakings to transfer assets to the recipient entity, which are not recognized as revenue because the entity has not obtained control over the item pledged.

Concessionary Loans

Loans received by an entity at below-market terms, where the difference between transaction price and initial fair value is evaluated as a non-exchange transaction.

Performance Bond

A security deposit in cash or certified check required from a contractor or supplier to guaranty the full and faithful performance of a contract.