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ACCOUNTING POLICY

CHILDRENS JOY
FOUNDATION

I. INTRODUCTION

This manual has been prepared to
document the internal accounting
procedures for the Childrens Joy
Foundation, Inc. This purpose is to ensure
that assets are safeguarded, that financial
statements are in conformity

with generally accepted accounting
principles, that existing laws and
regulations are complied with in good faith
and that finances are managed with
responsible stewardship.
II. RESPONSIBILITY OF USER STAFF
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 Childrens Joy Foundation, Inc.
that this manual serves as our
commitment to proper, consistent and
accurate financial management and
reporting.


III. FINANCIAL MANAGEMENT
STRUCTURE
The financial management of Childrens Joy
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


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


IV. DIVISION OF DUTIES



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:


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

b. Executive Director
The Executive Director is the head of the operation
of 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.

Prepare monthly progress and annual accomplishment
report to the Board of Trustees and to government
agencies where such reports are required.
Establish linkages and networks with other civil society
organizations, government agencies, and local
government units to build partnership and working
coordination.
Represent the Foundation in activities where the
participation of the foundation is needed or in
activities as mandated by the Board of Trustees.


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

c. Finance Officer
He/She is responsible to:

Review and approve financial reports
Ensure compliance in financial reporting and
timely submission of reports to regulators
Review vouchers and invoices that requires
his/her signature
Review request for fund transfers
Review payroll summary for the correct payee,
hours worked and check amount
Review reimbursements


d. Accountant
He/She is responsible to:

Ensures that financial records are maintained in
compliance with lawful and accepted procedures and
policies
Review the payroll, including payroll tax returns.
Conduct random petty cash count
Review bank reconciliations
Prepare monthly financial reports under the
supervision of the Finance Officer compliant to BIR,
SEC and DSWD.
Double checks all reimbursement requests against
receipts provided


e. Bookkeeper
He/She is responsible to:
Under the supervision of the accountant, the main
responsibility of the bookkeeper is to keep and
maintain all required accounting books and records
applicable to the operation of the foundation.
Review proper authorization of transactions prior to
recording
Maintains and reconciles the general ledger monthly.
Summarize monthly receipts, disbursements and
adjustments made
Prepare bank reconciliation
Prepare lapsing schedule

f. Accounting Staff
He/She is responsible to:
Process all receipts and disbursements
Process the payroll, including tax returns
Prepare monthly contribution schedule for HMDF,
SSS and PHIC of all employees under the
foundation and the employer.
Process remittances of required contribution and
tax liabilities
Submit Request for fund transfer
g. Cashier
He/She is responsible to:

Manages the petty cash fund
Prepare liquidation of petty cash upon
reimbursement.
Double checks all reimbursement requests
against receipts provided


V. ACCOUNTING POLICIES
AND PROCEDURES



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.


The financial statement will be prepared
using the historical cost. The financial
statements presented in Philippine peso,
the foundations functional currency and
all values represent absolute amount
except when otherwise indicated.


Accounting estimate and assumption are
use in preparing the financial statements.
Although these estimates are based on
managements best knowledge of
current events and actions, actual result
may ultimately differ from estimates.

Childrens Joy Foundation, Inc. shall apply
accrued based accounting method.
Revenue and grants/donations shall be
recorded in the accounting period it is
received and expenses recognized when
incurred.


Grants and donations are usually included in
the determination of revenues in the period in
which they have been received. Grants and
donations in-kind will be recognized in the
financial statements using the fair market
value at the date of receipt.



Accounting policies should be consistent
with prior years, unless a change in policy
will provide a more reliable outcome or is
required by the standard. Voluntary
changes in accounting policies will be
applied retrospectively.




Changes in accounting estimates will be
accounted for prospectively.

Prior period errors will be corrected
retrospectively unless impracticable
1.2 Property and Equipment
Properties, Plant and equipment are
carried at cost less accumulated
depreciation. The initial cost of
property and equipment comprises
its purchase price, including import
duties,


any directly attributable cost of bringing
the asset to its working condition and
location for its intended use and cost of
dismantling and restoration of which the
company has a present obligation.


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
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.

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.


Construction in progress is stated at cost
less any recognized impairment loss. This
includes the costs of construction and
other direct costs. Construction in
progress is not depreciated until such
time that the relevant assets ate
completed and put into operations.



When assets are sold or retired, the cost
and related accumulated depreciation
and any impairment in value are
eliminated from the accounts and gain or
loss resulting from their disposal is
credited to or charged against the
statement of revenues and expenses.


1.3 Fund Accounting
The Foundation is a not-for-profit
organization that employs the fund
method of accounting to ensure the
compliance with limitations and
restrictions placed on the use of its
financial resources available to the
foundation.



The accounts of the foundation are
maintained in accordance with the
principles of fund accounting in which
resources for various purposes are
classified for accounting and reporting
purposes into funds established according
to their nature and purposes.
1.4 Revenue and Expenses

The Foundation recognizes income from fund
raising activities and bequest when
unassailable right to the gift has been
established and the proceeds are measurable
in amount.

Expenses are the gross outflow of economic
benefits during the period in the course of
ordinary activities when those outflows result
in decrease of fund balance.


VI. GENERAL ACCOUNTS
STRUCTURE


The ledger accounts are structured so as
to record all expenditures under the
budget line items set out in the Work
and Financial Plan.
Ledger accounts are opened for all
balance sheet items.



The structure of accounts is shown in the
chart of accounts. The chart is an
indication of how the accounts should be
expected to look like. Please see Annex.

A. Cash Management
Central Office maintains general account
where 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.
A Cash Book to record all cash transactions
deposits and withdrawals updating the cash
balance on had shall be used.
All cash disbursements shall be duly
authorized and supporting document
documentation attached to the payment
voucher. Authorized signatories for
withdrawal of funds are the BOT Treasurer
and the Executive Director.




Supporting documents shall be stamped paid
and the date written when paid.
The party receiving the cash must sign to
confirm receipts of funds.

B. Petty Cash
Petty Cash shall be maintained on an imprest
basis. At any given time, the cash and receipts
in the cash box shall total the imprest level.
The level shall be maintained Php5,000 in
every shelter.
Only the cashier will handle petty cash. Actual
cash will be spot-checked and verified by an
independent party at least quarterly. The
custodian of the fund will reimburse for any
discrepancies.

All requests for petty cash must be approved
and signed by the Executive Director at the
Head Office operation and Center Head at the
center level transaction using the pre-
numbered Petty Cash Voucher.
Petty Cash Fund should be replenished when
the remaining amount reaches the 20%
threshold. A check to replenish the fund shall
be issued after liquidation by the custodian.


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.

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.


The check/cash voucher and petty cash
voucher shall be pre-numbered.

It is to be completed before the actual
payment is made with the details of the
payees, purpose, date, check number, check
date, amount, account number, budget item
number, memos and information on the
payment.

The check/cash vouchers shall be supported
by primary documents such as the requisition
form, travel claim form, payroll card and other
supporting documents. The payment voucher
comes is three copies.

Original - Central Admin
Duplicate - Bookkeeper
Triplicate - Book Copy


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.

The request should be checked and
recommended by Finance Officer and
approved by the Executive Director. It
shall contain the name and the signature
of the staff making the requisition and
the purpose of the requisition. The
requisition form shall be pre-numbered.



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.

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.


All travel must be authorized by the
Executive Director and signed by the
Admin/Center Head on the field
authorization form. No claims for
reimbursements shall be honored without
these authorizations.

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.
In case of fund transfers, it should be
completed before the actual transfer is
made with the details of payees, purpose,
date, amount, account number and other
necessary information required.
The debit memo shall be supported with
approved requisitions form and other
supporting documents.



Validated copy of Application for
Miscellaneous Transactions should be
attached to the related DM as evidence
of the actual transfer.

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.

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.

All intended expenditures should be checked
against the budget, quarterly financial plan
and the overall position of all availability of
funds at the stage of requisitioning.

For the purposes of control, each budget line
item has sub-classifications, which form the
main budget line item; the budgetary control
shall be used primarily on these sub-line item
limits


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.

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.


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 the
approved Work and Financial Plan.


Before authorizing an expense, the executive
Director and Admin Head shall ensure that the
budget control and procurement procedures
have been completed and that the purpose of
the expenses is stated clearly and is indeed
allowable. Should she/he authorize an
expense that exceeds the limit, he/she shall
indicate the reason warranting such
authorization.
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.


The Executive Director approves the budgets
and presents it to the board for authorization.

Childrens Joy Foundation, Inc. shall spend
within the approved budget. Budgets shall be
monitored by way of variance analysis in the
respective reports.

The board, prior to execution, must approve
new contracts, agreements and the
accompanying budgets.

VII. ACCOUNTABILITY

A. CASH RECEIPTS PROCEDURE

Official receipts (OR) shall be issued upon
receipt of subsidies, grants and donations
received by the Center.

The Cashier is the person authorized to issue
the official receipt. All cash donations received
for the day should be immediately deposited
to the official depository bank of the
Foundation.
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 is
forwarded to the Central Office for proper
accounting and reference. These shall form
part of the Cash Receipts (CR) Package.
All CR Package should be filed according to
month received.

Based on the information provided in the CR
Package, the bookkeeper records the cash
receipts in the Cash Receipts Book.

All receipts should be recorded on a cash
receipts book which states the name,
company, location of the sponsor and amount
of sponsorship.

The following bank accounts are maintained by
the Childrens Joy Foundation, Inc. at
Metropolitan Bank Trust and Company for the
following 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 564-3-56400720-0
5. Davao 564-3-56400714-6
6. Quezon City 339-7-33951517-0
7. Laguna 564-3-56400717-0
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 shelter
or employee bank accounts in case of payroll;
the following procedures should be followed:

The Finance Officer should monitor the
balance in the checking account, and
determine if there are adequate funds to pay
the daily expense.

In case of fund transfer for payroll, the
accounting staff should prepare a request for
payment. It should be supported with a duly
approved debit memorandum.


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 accounts
maintained by other shelters. These transfers
will occur concurrently with the associated
disbursements.

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.




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, minor
repairs and maintenance and miscellaneous
expenses in attending to official functions.

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



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 be
supported with proper documents e.g.
receipts, certificate of appearance, etc.

Petty Cash Replenishment Form should be
used upon replenishment signed by the
preparer and duly approved by Finance
Department.

Failure to properly liquidate within the
prescribed period shall automatically charge the
advanced amount to the salary of the requesting
staff.

B.2 Check payment
Check payments or transfers shall be made on
the strength of a completed and duly
authorized voucher

Payment vouchers must be accompanied by a
duly authorized requisition form or any other
relevant supporting documents such as
invoice, cash sales, bills, duly authorized
schedules, copies of contracts/ agreements,
Cash advance form or any other such
document.




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.


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 to
enhance audit trail, deter and detect
irregularities.



C. SALARIES , ADVANCES AND
OTHER BENEFITS

C.1 Salaries
The following is the procedure on salaries:
All permanent employees shall be issued with
appointment letters signed by the Executive
Director and employee- signing acceptance of the
terms and conditions set forth thereto. The
appointment letter shall contain the initial salary,
responsibilities, duties and general terms and
conditions.

Subsequent changes in salary, responsibilities,
duties, terms or conditions of employment
shall be communicated to the employee in
writing.

A personal file (201) shall be opened for every
employee. Copies of job application letters,
Appointment letters and any other
correspondence between Childrens joy
Foundation, Inc. and the employee shall be
kept on this file.

Salaries shall be paid monthly in arrears. A
salary schedule showing gross pay, advances,
deductions and net pay shall be prepared by
the bookkeeper, checked and verified by the
Accountant and approved by the Executive
Director prior to preparation of payment
vouchers and the check

Salaries shall be paid by check through the
respective bank accounts.


Employees shall be issued with a pay slip every
month, which will show the computation of
his/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 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.



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)

This shall include advances made to
employees for official business/ transaction
which are subject to liquidation after the
completion of the purpose. This shall include
travel and transportation, representation, per
diem and other expenses related to official
business/ transaction. The following
guidelines shall apply:


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 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. The
following guidelines shall apply:

The transportation cost in connection with the
conduct of an official business shall be
shouldered by the Center. This shall include
per diem at 500 pesos per day.

Per diem shall be claimed only when the staff
is required to transact official business outside
of area assignment.




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 Childrens
Joy 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

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.


The representation cost is taken from the
petty cash fund subject to allowable amount
of 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
There will be no cash advances extended to
officers or employees with outstanding/
unliquidated advances, unless exception is
approved by the Executive Director.

Liquidation of the advances shall be made
within 3 days after the completion of the
purpose. Expenses incurred in relation to the
purpose of advances made should be
supported with proper supporting documents
like Official Receipts (ORs). ORs should be
name under Childrens Joy Foundation, Inc.

In case the purpose of C/A is moved or deferred,
the officer/ employee shall return the money and
request for the C/A once funds are needed.

Failure to liquidate on the prescribed time or to
return the excess of cash advances will result on a
full automatic deduction from the salary of the
officer/ employer in the immediately succeeding
payroll without prior reference to the employee.

In addition, accountings will not honor receipts
dated more than sixty (60) days old on the date
of liquidation.

D. FIXED ASSETS
It is the responsibility of the Property
Custodian to maintain a complete and
accurate fixed assets register. The fixed assets
register will be maintained on an excel
spreadsheet or a book and should have the
following details:

1. Identification or serial number

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

At the end of every month, the bookkeeper
should prepare a depreciation schedule for
each of the items using depreciation rates
described in Accounting Policies and
Procedures Depreciation.

The Accountant should review the schedules
and sign them as evidence of the review. The
Bookkeeper shall update the fixed asset
register based on the list provided by the
Property Custodian.

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 assets
inventory register.

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
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
account
Record Payroll deductions
Record fixed asset depreciation
Record disposal of asset
Correct errors in the input of receipts or
payments
Record accruals
Record re-allocation of expenses
Record liquidation of the advances made


Process any other transaction that cannot be
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 all
general journals and then forward them to the
Finance Manager for approval. The Accountant
has to ensure that all the journals are correctly
posted to the ledger.


Preparation and Authorization
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.


The general journal should be attached to
supporting schedules and cross-referenced
where necessary journals are being corrected.
The general journal forms are checked and
verified by the Accountant and approved by
the Finance Officer.

Processing
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 the
Accountant for review.


Accountant will review and sign to evidence
review. The JV and print out are then filled in a
sequential order.
When the Accountant identifies errors that
have been made, he/she should initiate
appropriate correction general journal.





ANNEX CHART OF ACCOUNTS
No Account Title
To
Increase
Description/ Explanation of
Accounts
ASSET ACCOUNT
101 Cash Debit
Checking account balance (as
shown 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
Description/ Explanation of
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 the
equipment 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.
No Account Title
To
Increase
Description/ Explanation of
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 for
services rendered but was not yet
paid.
230 HDMF Premium Payable Credit
Employee contribution to Home
Development Mutual Fund withheld
by the foundation.
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
Description/ Explanation of
Accounts
LIABILITY ACCOUNTS
No Account Title
To
Increase
Description/ Explanation of
Accounts

FUND BALANCE
300 Fund Balance Credit
The accumulation of revenues
minus expenditures.
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.
No Account Title
To
Increase
Description/ Explanation of
Accounts
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 programs
intended 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
No Account Title
To
Increase
Description/ Explanation of
Accounts
EXPENSES
500 ADMINISTRATIVE EXPENSE
No Account Title
To
Increase
Description/ Explanation of
Accounts
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
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 accounting
period
554- Water Debit
30% of cost of water in the office
used during the accounting period
No Account Title
To
Increase
Description/ Explanation of
Accounts
EXPENSES
500 ADMINISTRATIVE EXPENSE
No Account Title
To
Increase
Description/ Explanation of
Accounts
EXPENSES
500 ADMINISTRATIVE EXPENSE
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 expenses
related 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.
No Account Title
To
Increase
Description/ Explanation of
Accounts
EXPENSES
500 ADMINISTRATIVE EXPENSE
575 Improvements Debit
Improvements such as additions,
alterations, remodeling or
renovations.
580
Taxes, Permits &
Licenses Debit
Payments made to government
agencies
585 Postage Debit
Mailing charges related to the
operation
No Account Title
To
Increase
Description/ Explanation of
Accounts
EXPENSES
500 ADMINISTRATIVE EXPENSE
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 foundation
during 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
600 RESIDENTIAL SERVICES
No Account Title
To
Increase
Description/ Explanation of
Accounts
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
No Account Title
To
Increase
Description/ Explanation of
Accounts
600 RESIDENTIAL SERVICES
615
Personal Supplies
Children Debit
Personal supplies provided to
children in the shelters

Personal Supplies-
Staff
EXPENSES
No Account Title
To
Increase
Description/ Explanation of
Accounts
600 RESIDENTIAL SERVICES
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 Debit

625- School
Allowance Debit
EXPENSES

626- Enrollment
Fees/ 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
600 RESIDENTIAL SERVICES
No Account Title
To
Increase
Description/ Explanation of
Accounts
EXPENSES
No Account Title
To
Increase
Description/ Explanation of
Accounts
600 RESIDENTIAL SERVICES
630 Professional Fee Debit Payment made to
635
Medical and Dental
Services Debit Medicine and Vitamins
640 Transportation Debit
Transportation cost in the course
of business

Household and
Kitchen Supplies
EXPENSES
645 Household Expense Debit
Household expenses incurred by
each shelter in the conduct of its
purpose

Salaries and
Allowances

Skills
development/value
formation training
No Account Title
To
Increase
Description/ Explanation of
Accounts
EXPENSES
600 RESIDENTIAL SERVICES
No Account Title
To
Increase
Description/ Explanation of
Accounts
600 RESIDENTIAL SERVICES
650
Sports and
Recreation Debit
Expenses incurred related to sports
and recreation of the children in
the shelter
660
Trainings and
Seminars Debit
Skills Development/ Values
Formation
665
Psychological
Services Debit
EXPENSES
No Account Title
To
Increase
Description/ Explanation of
Accounts
600 RESIDENTIAL SERVICES
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

Miscellaneous Debit
Other expenses incurred by the
Foundation that do not qualify to
the expenses described above.
EXPENSES