In public finance and budgeting, the last thing any government agency wants is to see their cash allocations reverting back to the National Treasury.
[Read: What is Reversion of Funds]
Whether you are in the central, regional or provincial office, ensuring that your funds are used effectively and efficiently is crucial.
Reversion of funds not only reflects poor financial management but can also lead to low absorptive capacity and credibility.
[Read: Budgeting 101: What is Absorptive Capacity?]
Hence, to help you prevent this financial headache and keep your funds where they belong, we have identified 7 quick tips and strategies to avoid reversing your funds to the National Treasury.
[Read: Lapsed NCA vs. Reverted Cash]
From proper planning to implementing robust budgeting practices, we will explore key tips that can help you effectively utilize funds and prevent reversion to the National Treasury.
1. Do not ask/request [from the DBM] what you cannot implement.
Proper planning and cash programming are the keys.
2. Have regular cash programming.
Compute your cash requirements regularly then implement, and monitor accordingly.
3. Engage the BAC and the Management regarding the level of your cash.
Coordinate with them on a regular basis. Find a way to let them be accountable. Proper documentation is the key.
4. Coordinate with your Cashier/Treasurer regularly.
Monitor the level of your cash real time. Compute/forecast regular expenditures and see if there will be excess cash then undertake appropriate action accordingly.
5. Always consider the timing of procurement process, period of project implementation, and the estimated time when the supplier/contractor send you the Billing Statement.
Integrate this to your cash programming and see if you still have excess cash to spend.
You May Like: What’s the Difference Between Reverted Cash and Lapsed NCA?
6. Check your Annual Procurement Plan (APP) if there are still Programs/Projects/Activities (PPAs) which are on the pipeline.
Then help your Supply Officer/BAC Secretariat to inform the BAC to take appropriate action.
7. No. 6 may be too proactive as this must be the work of the BAC but as an Accountant you get hold of the Budget Utilization Rate (BUR) of your Agency.
One effective way to make the BAC/your Agency take action (and be responsible) on pending/unimplemented PPAs is to give them a copy of the rate of your BUR. In this way you are giving them signal to take action.
You May Also Like: The Government Policy on the Use of Cash
