Account Title Trust Liabilities – Disaster Risk Reduction and Management Fund
Account Number 2-04-01-020
Normal Balance Credit
Description This account is used to record the receipt of amount held in trust
for disaster risk reduction and management fund. Debit this
account for settlement or compliance of the condition.
Subsidiary ledgers shall be maintained based on source. Unspent
DRRM funds of LGUs from current year appropriations shall
likewise maintain subsidiary ledger by year.
4.4. In light of the above, the accounting entries illustrating the use of the unspent
LDRRMF are as follows:
LGU Books
Particulars General Fund Trust Fund
Dr. Expenses
Use of the unspent LDRRMF - Cr. Cash
Dr. Trust Liabilities–DRRMF
Cr. Transfers from Unspent
At the end of the year, reporting Current Year DRRM Funds
date - to the Trust Funds
Dr. Transfers from Unspent
Current Year DRRM Funds
to the Trust Funds
Closing - Cr. Expenses
4.5. On May 13, 2024, the Sangguniang Bayan of the Municipality passed Resolution
No. 156, S. 2024, adopting Resolution No. 537, S. 2024, of the Sangguniang
Panlalawigan of Negros Oriental, which declared the province under a state of
calamity due to the adverse effects of the El Niño Phenomenon. The said resolution
authorized the utilization/release of the LDRRMF from prior years, held under the
Trust Fund, for the purchase of rice to mitigate food supply shortages affecting the
local constituents.
4.6. Pursuant to this authority, the Municipality procured 12,644 bags of 10-kilogram
rice totaling ₱7,143,860.00. The payment was processed through Disbursement
Voucher No. 300-24-09-821 and Check No. 1675190 dated September 26, 2024.
However, a review of the related Journal Entry Voucher revealed that the
transaction was recorded as an outright debit to the Trust Liabilities – DRRMF
account, instead of recognizing the transaction under the Welfare Goods Expenses
account.
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