Disbursement and Check/ADA Processing
Disbursement test
Every disbursement needs an appropriation and allotment, a valid obligation, a disbursement voucher with supporting documents, certification of availability of funds, and approval by the authorized official. The treasurer pays only on a complete voucher; the accountant records it.
Checks
Checks are drawn on the LGU depository account, payable to a named payee, with amount in words and figures matching. Signatories review the voucher; they do not sign blank checks. The check preparer should not be the sole signatory. Record the check in the RCI and cash disbursements book. Stop payment and replacement follow bank rules and require documentation.
ADA
An Authority to Debit Account instructs the bank to debit the LGU account for a specified payee and amount, often for periodic obligations. It is not a check and does not bypass the voucher trail: the same obligation, certification and approval are required. Control the ADA log and reconcile it to bank debits.
Worked example
A supplier's P180,000 voucher lacks the receiving report. The treasurer returns it. After the report is attached and the budget officer certifies allotment, the treasurer signs the check to the supplier. The check is released only when the supplier acknowledges receipt; the voucher is stamped paid.
Traps
- Pre-signed checks or checks payable to cash.
- Splitting a purchase to avoid thresholds.
- Paying before obligation or certification.
- Treating an ADA as an informal transfer.