CHO4 REVENUES AND OTHE ECEIPT

Revenue

Is the gross inflow of economic benefits or service potential during the reporting period. Includ only those that are receive or receivable by the entity

Receipts

The actual collections from al sources during a period

10 fundamental principle of revenue

1. All revenue shall be remitted to the National Treasury and is included in the General Fund of the National Government

2. All moneys and properties received by a public officer sha be accounted for a Government Fund and Government property

3. Amount received in trust or from any busines activities of the ggovernment shall be seperately recorded and disburse in accordance with the relevant law

4. Receipt shall be recorded a revenue of Special, Fiduciary, or Trust Funds or other fund othe than General Fund only when authorized by law

5. A collecting officer shall immediately issue an official receipt upon collecting a payment of any nature

6. Where electronic official receipts are used to acknowledge cash receipt, the COA may approve the exception from the use of accountable form

7. Temporary receipt shall never be used to acknowlede the receipt of public funds

8. Pre- numbered official receipts shall be issued in strict numerical sequence

9. A collecting officer shall accept payment to the government in the form of checks, shall not use government fund to encah private check

10. Receipt of government funds shall be acknowledged in accordance with law

7 types of funds

1. Genera Fund

2. Specia Fund

3. Trust Fund (Fiduciary Fund)

4. Revenue Fund

5. Depository Fund

6. Special Account in the General Fund (SAGF)

7. Special Purpose Fund

General Fund

A fund which is available for any purpose

Special Fund

A fund designated for specia purposes

Trust Fund (Fiduciary Fund)

Fund held by a government agency or public officer as a trustee, agent, or administrator for the fulfillment of a condition

Revenue Fund

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

Depository fund

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 General Fund

Establish to facilitate the funding of priority activitie of the government

Special Purpose Fund

Fund that the presidnt allocates for specia program and project

Where does the excess balance of special fund transfered?

To the General Fund

Source of Revenue

1. Exchange Transaction (Reciprocal Tranfers)

2. Non - exchange transaction (Non-reciprocal Tranfers)

Interest Income

Charges for the use of cash or cash equivalent or amount due to the entity

Royalties

Fees paid for the use of the entity’s asset (trademark, patents, software and copyright)

Dividend

Share of the National Government from the earnings of its capital/equity investments in GOCC

Non-exchange transactions

Derive mostly from taxe, fines and penalties, gift, donation and good in-kind

Taxes

Compulsory payments intended to provided revenue to the government. Does not include fine and penalties

Fines and Penalties

Monetary sanction received as a consequence of breach of laws

Gift, Donations and goods in-kind

Voluntary tranfer of assets and services

Tax Revenue

Recognized at gross amount and not reduced for expenses paid through the tax system

Expenses paid through the tax system

Expenses which should be paid irrespective of whether the taxpayer pays taxes

Tax expenditures

Are preferential provision of the tax law that provide certain taxpayer with concessions that are not available to other.

These are forgone revenue and not expenses

Types of Tax

1. Income Tax

2. Value added tax

3. Good and services tax

4. Custom Duty

5. Death Duty

6. Property Tax

Income Tax

Earning of taxable income

Value Added Tax

Undertaking of taxable activity

Goods or services tax

Purchase or sale of taxable good / services

Custom Duty

Movement of dutiable good and services across custom boundaries

Death Duty

Death of the owner of the taxable property

Property Tax

Passage of time period which the tax is levied

Transfers

Inflow of future economic benefit or service potential from non-exchange transaction

Fine and penalties as income

Recognized as income n the year they are collected

Fine and penalties as revenue

When the receivable mee the recognition criteria for asset

Gifts, Donation and Goods In-kind as revenue

When it is probable that future economic benefit or service potential will flow to the entity

Services in kind

Not recognized as revenue due to the uncertainties affecting the entity’ ability to control those service and measure them at FV

Bequest

Transfers made according to the provision of deceased person’s will. Recognized as revenue if it satisfies the recognition criteria for asset measured at FV of the resource received or receivable

Grant with Condition

Initially recognized as Liability and recognized as revenue only when the condition is satisfied

Pledges

Unenforceable undertakings to transfer assets to the recipient entity. Not recognized as revenue

Concessionary Loans

Loans received by an entity at below market terms