BCLTE (Local Treasury Competency) key terms

The office in a local government unit headed by the treasurer that keeps custody of local funds, collects local revenues, and controls disbursements under the Local Government Code and its implementing rules.

The appointed official who acts as custodian of local funds, collects taxes and other revenues, deposits and remits collections, and renders financial reports to the local chief executive and council.

A body composed of the local planning and development coordinator, budget officer, and treasurer that reviews budgets, revenue forecasts, and fiscal matters and submits recommendations to the sanggunian.

Any public officer entrusted with the custody, handling, or disbursement of government funds or property, who is personally liable for the amount or item and must render an accounting for it.

A surety bond posted by an accountable officer to indemnify the government for loss of funds or property caused by the officer's dishonesty, negligence, or failure to account.

The bond required before an accountable officer assumes office, approved by the proper authority and renewed as required, with premiums chargeable to the appropriations of the office concerned.

The obligation of an accountable officer to account for all cash received and held, such that the total accountability equals cash on hand plus cash in bank plus unreported collections.

A physical count of cash, checks, and negotiable instruments on hand conducted by or in the presence of the accountable officer to verify that recorded accountability matches actual holdings.

A deficiency arising when cash on hand and in bank is less than the amount for which an accountable officer is liable, which the officer must restitute and which may lead to administrative or criminal liability.

An excess of actual cash over the recorded accountability of an accountable officer, which is recorded as a receivable or trust liability and investigated rather than treated as personal gain.

The process of monitoring, projecting, and controlling the timing of cash inflows and outflows so that the local government can meet obligations while minimizing idle cash and borrowing costs.

A periodic schedule prepared by the treasurer showing expected collections, deposits, and disbursements by period, used to plan the availability of cash for budget execution.

An estimate of future cash receipts and payments over a defined horizon, based on historical patterns and known obligations, used to anticipate funding gaps or surpluses.

A schedule of planned releases for a period, matched against projected collections, that guides the order and timing of payments authorized by the local government.

The portion of available cash set aside for specific expenditures or periods, ensuring that released allotments can be funded when obligations fall due.

The receipt of taxes, fees, charges, and other revenues by authorized officers, supported by official receipts or acknowledgment certificates issued to the payer.

A serially numbered document issued for money actually received, showing the payer, amount, date, and nature of payment, and serving as the basis for recording collections.

A receipt issued for money or property received that is not revenue, such as refunds, deposits, or trust funds, distinguishing it from collections of taxes and fees.

The transfer of collections by a collecting officer to the local treasurer or depository bank within the prescribed period, accompanied by the required reports.

The placing of collected funds in the authorized government depository bank in the name of the local government unit, within the period fixed by law and regulations.

Cash collected but not yet deposited with the authorized depository bank, which remains part of the accountable officer's cash accountability until deposited and reported.

A bank accredited by the proper authority and designated by the local government to hold its funds, selected under rules on government deposits and net worth requirements.

A periodic statement prepared by the collecting officer listing collections by source, receipts issued, remittances made, and balances, used to reconcile collections with deposits.

The payment of public funds for a lawful obligation of the local government, made only upon proper authorization and supported by complete documentation as required by rules.

The document initiating a payment, showing the payee, amount, purpose, and supporting papers, and bearing the certifications and approvals required before a check or advice is prepared.

A written order drawn on a bank directing payment of a specified amount to a named payee, issued only by authorized signatories and recorded in the check register.

A payment instruction used for local government accounts maintained with the treasury or an authorized bank, debiting the account and crediting the payee without issuing a commercial check.

A record listing checks issued in sequence with date, payee, amount, and status, used to control check stock and reconcile payments with bank statements.

Papers attached to a voucher that prove the obligation and its liquidation, such as contracts, invoices, delivery receipts, and certifications that the goods or services were received.

A comparison of the bank's records with the local government's cash records to explain differences such as outstanding checks, deposits in transit, and bank charges.

The journals, ledgers, and other records in which the local government records its financial transactions in accordance with the government chart of accounts.

A document used to record adjustments, corrections, and other transactions not supported by ordinary collections or disbursement documents, with explanation and approval.

The statements of financial position, financial performance, changes in net assets, cash flows, and notes prepared from the books and submitted to oversight agencies.

A listing of account balances with total debits equaling total credits, prepared before financial statements to test the arithmetic accuracy of the books.

A financial statement classifying cash movements into operating, investing, and financing activities, showing how cash was generated and used during the period.

The policies and procedures, including segregation of duties, authorization, documentation, and physical safeguards, that management establishes to protect assets and ensure reliable reporting.

The assignment of custody, recording, and authorization tasks to different officers so that no single person controls an entire transaction from start to finish.

The review of transactions and supporting documents before payment or release, performed by the accountant or other designated office to ensure compliance with laws and rules.

An independent appraisal of the local government's operations and controls conducted by an internal audit unit to identify risks and recommend improvements.

The constitutional body that audits government accounts, including those of local government units, and issues rules, circulars, and disallowances binding on accountable officers.

A formal finding by the audit authority that a transaction is illegal, irregular, or unnecessary, requiring the responsible officers to refund the amount involved.

A written communication from the auditor to management describing deficiencies found during audit and recommending corrective action within a stated period.

The local government's financial plan for a fiscal year, authorizing appropriations by program, project, and activity, enacted by the sanggunian and covering estimated income and expenditures.

An authorization by the sanggunian to incur obligations and spend public funds for specified purposes up to a stated amount within the fiscal year.

The authority issued to an office to incur obligations for a specified portion of its appropriation, usually released periodically and supported by a cash program.

A commitment to pay a specific amount for goods, services, or other lawful purposes, recorded when the commitment is incurred and charged against an available allotment.

The phase of the budget cycle in which approved appropriations are released as allotments, obligations are incurred, and payments are made to carry out the annual budget.

An estimate of revenues expected from taxes, fees, and other sources for a period, used by the local finance committee as the basis for the budget's income side.

Money received by the local government for a specific purpose or beneficiary, held in custody and disbursed only for that purpose without forming part of general revenue.

A local fund derived from the additional real property tax and other specified sources, used exclusively for education purposes and managed under a separate budget.