Reference

Glossary of Terms

Plain-language explanations of the audit, accounting, budget, and government terms used throughout this presentation of the Basey audit report.

Audit and standards

Terms related to the audit process, standards, auditor opinions, and COA enforcement instruments

Commission on AuditCOA: The independent constitutional body that examines, audits, and settles all accounts pertaining to the revenues, expenditures, and custody of government funds and properties across national agencies, LGUs, and GOCCs/water districts.
Annual Audit ReportAAR: The comprehensive annual audit report issued by COA transmitting the independent auditor’s report, audited financial statements, observations, and recommendations for a government agency.
Management LetterML: An official audit transmittal and reporting mechanism communicating financial audit observations, compliance findings, and recommendations to agency management.
Audit Observation MemorandumAOM: A formal written memorandum issued by the COA audit team during the audit period to communicate deficiencies, non-compliance, and initial recommendations to agency management for response.
International Standards of Supreme Audit InstitutionsISSAI: The professional auditing standards framework issued by INTOSAI and adopted by COA to guide public sector financial, compliance, and performance audits.
International Public Sector Accounting StandardsIPSAS: Accrual-based global accounting standards governing the recognition, measurement, presentation, and note disclosures of local government financial statements.
Philippine Public Sector Accounting StandardsPPSAS: The local adoption of International Public Sector Accounting Standards, applied by Philippine local government units in preparing their accounts.
Philippine Financial Reporting StandardsPFRS: The commercial accounting framework adopted by Government Business Enterprises (GBEs), including Local Water Districts like Basey Water District pursuant to COA Circular No. 2015-003.
Qualified Opinion: An auditor’s opinion stating that, except for the effects of specific matters described in the Bases for Qualified Opinion, the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.
Bases for Qualified Opinion: The section of the Independent Auditor’s Report that explains which matters and unadjusted accounts prevented an unmodified opinion and how they affected the financial statements.
Independent Auditor’s Report: The formal report in which the auditor expresses an opinion on whether the financial statements present fairly the financial position, performance, and cash flows of the audited agency.
Notice of SuspensionNS: A formal audit notice temporarily withholding approval of a transaction due to incomplete documentation, minor defects, or pending justifications.
Notice of DisallowanceND: A formal audit issuance by COA disapproving transactions found illegal, irregular, excessive, extravagant, or unconscionable, establishing liability for refund.
Notice of ChargeNC: An audit issuance notifying an agency of underpayment, improper assessment, or revenue deficiencies due to the government in audited revenue and collection operations.
Notice of Finality of DecisionNFD: An official COA certification affirming that an audit disallowance, charge, or decision has lapsed into finality and has become executory upon all persons liable.
Notice of Settlement of Suspensions, Disallowances and ChargesNSSDC: An official audit certificate issued by COA acknowledging that previously suspended, disallowed, or charged transactions have been satisfactorily settled and dropped from the books.
COA Order of ExecutionCOE: A formal directive issued by the Commission on Audit commanding the enforcement and execution of an audit decision or disallowance that has become final and executory.
Report on Enforcement and Monitoring of Final and Executory DecisionsREMFED: An audit monitoring registry maintained by COA tracking the settlement, receivables, and execution status of final and executory audit decisions.
Statement of Audit Suspensions, Disallowances and ChargesSASDC: A periodic summary schedule accounting for the beginning balances, issuances, settlements, and unsettled year-end balances of audit suspensions, disallowances, and charges.
Agency Action Plan and Status of ImplementationAAPSI: The COA-required form where an audited agency documents its actions on audit observations and recommendations. The agency submits it within 60 days of receiving the report.
Revised Rules on Settlement of AccountsRRSA: The codified rules and procedures (COA Circular No. 2009-006) governing the examination, suspension, disallowance, and settlement of government accounts.
Status of Implementation of Prior Years’ Unimplemented Audit RecommendationsSIPYAR: Part III of the audit report detailing whether prior years’ audit recommendations were fully implemented, partially implemented, or not implemented by management.

Financial statements and accounts

Terms related to general accounting, journals, ledgers, banking, and financial statement line items

Statement of Financial PositionSFPos: The public sector equivalent of a balance sheet, presenting an entity’s assets, liabilities, and net assets or equity at the end of the reporting period.
Statement of Financial PerformanceSCI: The public sector equivalent of an income statement, presenting an entity’s revenue, operating expenses, and resulting surplus, deficit, net income, or net loss.
Statement of Cash Flows: The financial statement summarizing cash inflows and outflows classified into operating, investing, and financing activities during the period.
Statement of Comparison of Budget and Actual AmountsSCBAA: A primary financial statement required under IPSAS 24 that compares budgeted amounts with actual operational results, across original, final, and continuing appropriations.
Statement of Changes in Net Assets/Equity: The statement explaining the movements in an entity’s net assets/equity during the period, including prior period errors, direct adjustments, and operating surplus or deficit.
Notes to the Financial Statements: The disclosures and detailed analyses that accompany and explain the financial statements, including accounting policies, asset movement schedules, useful lives, and contingent liabilities.
Surplus (Deficit) for the Period: The excess of revenue over expenses (surplus) or of expenses over revenue (deficit) for the reporting period.
Cash in Bank – Local Currency Current AccountCIB-LCCA: The asset account (Code 10102020) reflecting cash balances maintained in current checking accounts with authorized government depository banks (AGDBs).
Cash in Bank – Local Currency Savings AccountCIB-LCSA: The asset account (Code 10102030) reflecting savings deposits and interest-bearing local currency reserve funds with authorized banks.
Bank Reconciliation StatementBRS: A monthly accounting schedule prepared to identify and reconcile variances between cash ledger balances in the general ledger and actual bank statement balances.
Prior Period Errors: Omissions or misstatements in prior periods’ financial statements corrected retrospectively by adjusting the opening balance of Retained Earnings or Government Equity.
Government Business EnterpriseGBE: Public commercial operating entities, such as Local Water Districts, categorized under COA Circular No. 2015-003 to prepare financial statements under PFRS.
General LedgerGL: The master accounting ledger containing all control accounts summarizing asset, liability, equity, revenue, and expense balances.
Subsidiary LedgerSL: A supporting ledger that breaks down and details individual balances, employee accounts, or project-level transactions of a specific General Ledger controlling account.
Journal Entry VoucherJEV / JV: An accounting document used to record initial transactions, non-cash entries, adjustments, and reclassifications in the general journal.
Check Disbursements JournalCkDJ: A specialized book of original entry where check disbursements, payment vouchers, and cancelled checks are recorded chronologically based on RCIs.
Report of Checks IssuedRCI: A summary report prepared daily by the Municipal Treasurer or Cashier listing all checks drawn and issued, serving as the basis for journalizing disbursements.
Report of DisbursementsROD: A liquidation report prepared by an Accountable Officer detailing expenses defrayed from a cash advance, supported by original paid vouchers and invoices.
Fund Utilization ReportFUR: A formal financial liquidation report documenting the receipt, utilization, and remaining balance of transferred funds or project grants.
Statement of Work AccomplishedSWA: A certified engineering document evaluating and validating the actual physical completion percentage of an infrastructure contract to support progress billings.
Terminal Leave BenefitsTLB: The monetary value of accumulated leave credits paid to separating employees, computed as highest monthly salary multiplied by total credits and the constant factor 0.0481927.
Due to National Government AgenciesDue to NGAs: An inter-agency liability account (Code 2-02-01-050) recording fund transfers received from national departments for specific projects, liquidated via FUR.
Deferred Credits / Unearned Income: Unearned revenue or taxes set up in advance (such as deferred Real Property Tax or Special Education Tax) recognized as income only upon actual realization.

Budget and appropriations

Terms related to the budget process, expenditure classes, budget registries, and financial authorities

Appropriation: The legal authorization enacted by the Sanggunian Bayan or Board of Directors for an agency to incur obligations and disburse funds for specified purposes.
Obligation: The commitment of budgeted resources for the delivery of goods, services, or projects, evidenced by contracts, purchase orders, or approved payrolls.
Personal ServicesPS: The budget class covering basic salaries, compensation, allowances (PERA, RATA), bonuses, cash gifts, hazard pay, overtime, and statutory retirement/life insurance premiums.
Maintenance and Other Operating ExpensesMOOE: The budget class covering day-to-day operating requirements such as supplies, utilities, travel, training, communication, and contracted services.
Capital OutlayCO: The budget class covering infrastructure projects, civil works, and the purchase of major machinery, transportation, and equipment with a useful life over one year.
Continuing Appropriations: Unspent capital outlays and project appropriations that are revalidated and carried over beyond the budget fiscal year until project completion.
Supplemental Budget: Additional appropriations approved during the year to fund new or expanded programs, projects, and activities.
Internal Revenue Allotment / National Tax AllotmentIRA / NTA: The statutory share of local government units in national internal revenue taxes, constituting the Municipality’s principal baseline revenue source.
Registry of Appropriations, Allotments and ObligationsRAAO: The budget registry maintained by the Municipal Budget Officer to track authorized appropriations, allotments received, and obligations per class (PS, MOOE, CO).
Obligation RequestObR / ALOBS: The budget document certifying allotment availability and committing public funds for specific expenditures prior to disbursement.
Corporate Operating BudgetCOB: The annual operating and capital expenditure budget approved by the Board of Directors governing a government corporate entity or water district.
Utilization Rate: The percentage of an appropriation that has actually been obligated or disbursed, used to measure budget execution efficiency.
Programs, Projects, and ActivitiesPPA: The basic units of work in government budgeting, each with identified objectives, target outputs, and allocated funding.
Joint Memorandum CircularJMC: A directive jointly issued by two or more national agencies (e.g., DBM-DOF-DILG or PCW-DILG-DBM-NEDA) prescribing guidelines for fund implementation.

Funds and mandated special programs

Terms related to general funds, statutory special funds, local development programs, and national grants

General FundGF: The principal operating fund of the LGU, used for general government administration, delivery of basic direct services, and routine operations.
Special Education FundSEF: A dedicated fund sourced from the additional one percent (1%) special education tax on real property, used exclusively for the operation and maintenance of public schools.
Trust FundTF: A fiduciary fund maintaining moneys received and held in trust by the LGU for specific purposes mandated by law, national agencies, or contractual agreements.
20% Development Fund20% DF: The statutory minimum 20% annual IRA/NTA allocation earmarked exclusively for socio-economic development, rural infrastructure, and capital investment projects.
Local Disaster Risk Reduction and Management FundLDRRMF: A mandatory allocation of not less than five percent (5%) of estimated regular local revenues set aside to support disaster mitigation, preparedness, response, and rehabilitation.
Quick Response FundQRF: The 30% stand-by lump-sum allocation within the LDRRMF reserved for immediate relief and recovery operations upon calamity declaration.
Mitigation FundMF: The 70% portion of the LDRRMF allocated for disaster prevention, structural mitigation, hazard mapping, emergency training, and response equipment.
Local Disaster Risk Reduction and Management Fund Investment PlanLDRRMFIP: The annual programming document detailing specific disaster risk reduction activities, 30% QRF, 70% MF, and unexpended STF allocations.
Special Trust Fund – DRRMSTF: The separate Trust Fund liability account into which unexpended balances of the QRF and DRRMF-MOOE are transferred at year-end, remaining valid for five years.
Gender and Development FundGAD Fund: A fund of at least five percent (5%) of the total agency/LGU budget appropriated for gender-responsive programs, projects, and activities.
GAD Plan and BudgetGPB: The annual plan and budget detailing targeted client- and organization-focused gender activities with allocations equivalent to at least 5% of the total budget.
GAD Accomplishment ReportGAD AR: The annual report documenting physical results, actual expenditures, and outcomes of gender-responsive projects implemented against the approved GPB.
Local Government Support Fund - Support to Barangay Development ProgramLGSF-SBDP: A national grant program under the NTF-ELCAC framework funding farm-to-market roads, health stations, water supply systems, and rural electrification in cleared barangays.
LGSF - Financial Assistance for Capital OutlaysLGSF-FA-CO: A national subsidy facility provided under the General Appropriations Act extending financial assistance to LGUs for specific municipal road and building projects.
Annual Investment ProgramAIP: The annual operational investment plan of the LGU outlining capital expenditures, infrastructure, and priority development programs scheduled for funding.
Local Development Investment PlanLDIP: The multi-year capital investment program (covering 3 to 5 years) linking the Comprehensive Development Plan to the annual budget.
Bottom-Up BudgetingBUB: A participatory budgeting program transferring national grant funds to LGUs for targeted poverty reduction and local economic development projects.
Yolanda Comprehensive Rehabilitation and Recovery ProjectYCRRP: A national post-disaster funding assistance program (transferred via DOT/national agencies) targeting tourism and community infrastructure recovery.
DOLE Integrated Livelihood and Emergency ProgramDILEEP / DILP: A grant program of DOLE granting livelihood assistance, working capital, and raw materials to accredited workers’ and community associations.
Assistance to Individuals in Crisis SituationAICS: A local emergency assistance program implemented through the MSWDO granting direct medical, financial, burial, or transportation aid to individuals in crisis.
Community-Based Monitoring SystemCBMS: A local data collection system generating household-level poverty and vulnerability indicators for evidence-based development planning and disaster targeting.
Infrastructures for Rural Productivity Enhancement SectorINFRES: A special agricultural infrastructure program funding farm-to-market road concreting, drainage, and transport infrastructure in rural barangays.
Agrarian Reform Communities Project IIARCP II: A special foreign-assisted project supported by DAR-ADB funding communal infrastructure and market access in agrarian reform communities.

Property, plant, equipment, and inventory management

Terms related to physical inventory counts, asset registries, semi-expendable thresholds, property records, and condemnation

Property, Plant and EquipmentPPE: Tangible assets with cost of at least ₱50,000.00 held for use in operations, infrastructure, utility delivery, or administrative services with a useful life over one year.
Construction in ProgressCIP: An asset account accumulating all direct construction costs, progress billings, and materials for capital infrastructure projects until formal completion.
Semi-Expendable Property: Tangible items meeting the definition of PPE but with individual acquisition cost below the ₱50,000.00 capitalization threshold (under COA Circular 2022-004), accounted as inventory until issued.
Plant – Utility Plant in ServiceUPIS: The specialized asset account (Code 10603110) of water districts comprising operational supply plants, transmission lines, reservoirs, distribution mains, and meters.
Report on the Physical Count of Property, Plant and EquipmentRPCPPE: The mandated annual physical inventory report establishing the physical existence, condition, and reconciled costs of all fixed assets owned by the entity.
Report on the Physical Count of InventoriesRPCI: The periodic inventory report executed by the Inventory Committee verifying the quantities, physical status, and valuation of consumable materials and supplies in stock.
Report on the Physical Count of Semi-Expendable PropertyRPCSP: The prescribed annual inventory report accounting for all tangible semi-expendable items costing below ₱50,000.00 in the custody of the supply unit or end-users.
Property CardPC: A tracking record maintained by the Property Custodian for each class of PPE recording acquisitions, descriptions, property numbers, transfers, and disposals.
Property, Plant and Equipment Ledger CardPPELC: An accounting subsidiary ledger kept for each class of PPE recording acquisition cost, description, custody, estimated useful life, depreciation, and accumulated impairment.
Construction in Progress Ledger CardCIPLC: An accounting card maintained per project to track all construction costs, milestone billings, and work progress prior to asset reclassification.
Stock CardSC: A supply record maintained by the storekeeper to monitor stock movements, quantities received, issuances, and physical balances of goods on hand.
Supplies Ledger CardSLC: An accounting record kept for each inventory item recording quantities, unit costs, total values, and moving average costs of supplies received and issued.
Semi-Expendable Property CardSPC: A property tracking card maintained by the Property Custodian for each semi-expendable asset class recording acquisitions, transfers, and user accountability.
Semi-Expendable Property Ledger CardSPLC: An accounting ledger card maintained for each class of semi-expendable property to record historical acquisition cost, description, custody, and impairment.
Inventory Custodian SlipICS: The property issuance form used by the Property Custodian to issue tangible items costing below ₱50,000.00 to end-users to establish individual accountability.
Registry of Semi-Expendable Property IssuedRegSPI: A property registry maintained by the Supply Custodian to monitor sequential issuances, returns, reissues, and tracking of ICS slips.
Inventory Transfer ReportITR: The prescribed form documenting the transfer, donation, reassignment, or relocation of inventory or property between accountable officers or agencies.
Receipt of Returned Semi-Expendable PropertyRRSP: The property receipt executed when an accountable employee returns serviceable or unserviceable semi-expendable items back to the Property Unit.
Report of Semi-Expendable Property IssuedRSPI: A periodic summary of issued semi-expendable items prepared from ICS slips, providing the Accounting Unit the basis to recognize semi-expendable expense.
Report of Lost, Stolen, Damaged or Destroyed Semi-Expendable PropertyRLSDDSP: A formal report filed within 30 days by an accountable employee notifying management of lost or damaged semi-expendable items to support request for relief.
Inventory and Inspection Report of Unserviceable PropertyIIRUP: The prescribed form used to list, evaluate, and inspect unserviceable, obsolete, or valueless PPE recommended for condemnation, public auction, or destruction.
Inventory and Inspection Report of Unserviceable Semi-Expendable PropertyIIRUSP: The prescribed form used to inspect and account for all unserviceable semi-expendable properties subject to authorized disposal procedures.
Property Inventory FormPIF: An annual inventory schedule detailing all insurable government buildings, motor vehicles, and equipment submitted to GSIS by April 30 for insurance assessment.
General Insurance FundGIF: The statutory property insurance fund administered by GSIS under RA No. 656 providing compulsory casualty and disaster insurance coverage for government assets.
Biological Assets: Living animals or plants held by the entity for agricultural, breeding, or production purposes (such as livestock breeding stocks) valued at fair value less cost to sell.

Government bodies, governance, and key roles

Terms related to oversight agencies, local offices, corporate water utility boards, and statutory committees

Local Government UnitLGU: A political and corporate body (such as the Municipality of Basey) endowed with powers to deliver basic direct services and manage local public affairs within its jurisdiction.
Local Chief ExecutiveLCE: The elected municipal mayor who exercises general supervision, control, and administrative execution of local government operations and statutory ordinances.
Sangguniang BayanSB: The local legislative body of the municipality responsible for enacting ordinances, approving annual and supplemental budgets, and authorizing local development plans.
Basey Water DistrictBWD: The local water utility established under PD 198 (SB Resolution No. 97 s. 1977) serving active water service connections across Basey, Samar.
Board of DirectorsBOD: The 5-member policy-making body of a Local Water District representing the Business, Women, Civic, Education, and Professional sectors.
Local Water Utilities AdministrationLWUA: The national specialized lending, regulatory, and technical agency created under PD 198 to oversee, standardize, and finance Local Water Districts nationwide.
GAD Focal Point SystemGFPS: An institutional mechanism and committee established within an agency/LGU to catalyze, accelerate, and monitor gender mainstreaming and GAD plan execution.
Bids and Awards CommitteeBAC: The statutory committee established under RA 9184 responsible for advertising procurement opportunities, conducting public bidding, evaluating bids, and recommending awards.
Technical Working GroupTWG: An ad hoc technical body assisting the BAC in preparing bidding documents, evaluating technical proposals, and conducting post-qualification verification.
Bureau of Internal RevenueBIR: The national tax agency responsible for assessing and collecting internal revenue taxes, to which compensation, expanded, and VAT withholding taxes are remitted.
Government Service Insurance SystemGSIS: The state social insurance institution administering retirement/life premiums, loan amortizations, and the mandatory General Insurance Fund for public properties.
Home Development Mutual FundHDMF / Pag-IBIG: The national savings and shelter fund to which mandatory employee/employer provident contributions and multi-purpose/calamity loan amortizations are remitted.
Philippine Health Insurance CorporationPhilHealth / PHIC: The national health insurance agency to which monthly health insurance contributions deducted from public personnel compensation are remitted.
Philippine Deposit Insurance CorporationPDIC: The government corporation providing depositor insurance and acting as statutory liquidator for closed banking institutions (such as the Rural Bank of Basey, Inc.).
Department of the Interior and Local GovernmentDILG: The executive department exercising general supervision over local government units, peace and order, GAD plan monitoring, and the Seal of Good Local Governance.
Department of Budget and ManagementDBM: The executive agency administering national budget allocations, local budget circulars, compensation standards, and statutory fund guidelines.
Department of Labor and EmploymentDOLE: The national labor department that funds and supervises livelihood programs (DILEEP/DILP) for accredited workers’ and community associations.
Department of TourismDOT: The national agency extending fund transfers (such as YCRRP) to LGUs for tourism operation centers, facilities, and destination rehabilitation.
Philippine Commission on WomenPCW: The national policy-making authority on women’s empowerment and gender equality overseeing the implementation of the Magna Carta of Women.
National Economic and Development AuthorityNEDA: The premier socioeconomic planning body issuing joint governance circulars on development planning, investment programming, and GAD policies.
Civil Service CommissionCSC: The central personnel agency regulating public appointments, employee qualifications, leave administration, and overtime compensation rules.
Bureau of Local Government FinanceBLGF: The Department of Finance bureau supervising and monitoring the revenue generation, financial administration, and fiscal performance of LGUs.
National Task Force to End Local Communist Armed ConflictNTF-ELCAC: The national body created by Executive Order No. 70 implementing the whole-of-nation framework to deliver development projects in cleared communities.
Municipal Disaster Risk Reduction and Management OfficeMDRRMO: The local municipal department responsible for coordinating, executing, and reporting disaster risk reduction, mitigation, and emergency response operations.
National Government AgencyNGA: A department, bureau, or commission of the national government that transfers subsidy or trust funds to LGUs for specific project execution.
Non-Government Organization / People’s OrganizationNGO / PO: Accredited community, worker, or civil society associations receiving public funds or livelihood assistance subject to strict qualification and liquidation rules.

Taxes, revenues, and utility operations

Terms related to local taxation, revenue sharing, water utility metrics, and statutory deductions

Real Property TaxRPT: An ad valorem local tax levied annually on the assessed value of real properties (land, buildings, improvements) within municipal territory.
Special Education TaxSET / SEF Tax: The mandatory additional 1% tax levied on the assessed value of real property collected and allocated exclusively to the Special Education Fund.
Business Tax: A local tax imposed by the municipality on businesses and commercial establishments operating within its jurisdiction based on gross receipts.
Withholding Tax: Taxes withheld by government entities on compensation, purchase of goods (1% EWT), purchase of services (2% EWT), and creditable VAT (5%) for monthly remittance to BIR.
Service and Business Income: Local revenues generated from administrative fees, clearances, permits, market operations, slaughterhouse fees, and municipal economic enterprises.
Conditional Certificate of ConformanceCCC: A formal certificate of standards compliance issued by LWUA (such as CCC No. 215 awarded to BWD on Sept. 6, 1982) qualifying a water district for national assistance.
Non-Revenue WaterNRW: The percentage and volume of water produced and lost through transmission leakage, pipe bursts, or unbilled usage before reaching consumers (LWUA maximum standard: 20%).
Monthly Data SheetMDS: The monthly operational and technical reporting document submitted by water districts to LWUA documenting water production, billed volumes, and connections.
Water Safety PlanWSP: A comprehensive risk assessment and water quality management plan prepared by a water district and submitted to LWUA and DOH to guarantee safe drinking water.