10 VALUABLE TIPS IN PREPARING YOUR BUDGET AND FINANCIAL ACCOUNTABILITY REPORTS (BFARS)

1. The total appropriations in FAR No. 1 and 1-A should equal to the total appropriations/allotments received under FAR No. 1-B.

2. The difference between Total Appropriations and Total Allotments is the Unreleased Appropriations.

3. The difference between Total Obligations and Total Disbursements is either Due and Demandable Obligations or Not Yet Due and Demandable Obligations.

4. Due and Demandable Obligations pertain to the goods purchased which have already been delivered or services which have already been rendered.

5. Not Yet Due and Demandable Obligations are contracts which the government entered into for which the goods have not been delivered or services have not been rendered.

6. The Total Disbursements under FAR No. 1 and 1-A include cash and non-cash disbursements (i.e., taxes withheld and remitted through Tax Remittance Advice). This shall include only disbursements under current year budget.

7. The Total Disbursements under FAR No. 1 and 1-A should tally with the Total Disbursements under the Current Year Budget column of FAR No. 4.

8. Total Cash Disbursements plus Taxes Withheld (TRAs) equals Total Obligations. Should there be any excess it is the effect of either Accounts Payable or Cash Advance or both.

9. Your BFARs should already be PREXC-fied, meaning, your budget should not be classified per MFO anymore but per Program.

10. FAR No. 4 is submitted to the DBM and COA on a monthly basis while FAR Nos. 1, 1A, 1B and 5 are submitted on a quarterly basis. FAR No. 3 is submitted on a yearly basis.

Note. All the above tips for FAR Nos. 1, 1A, and 1B are also applied to FAR Nos. 2 and 2A.