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CvSU MANUAL OF OPERATIONS
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analysis is prepared for management decision-making while the
financial analysis is used as basis for giving incentives.
▪ The VP-EBA and the Accountant controls disbursements of
projects funds for E&BA. The Accountant is a member of the
E&BA Council, if organized.

Section 2. Sources of Funds

a. Internal Sources
▪ Initial budget for IGPs may come from Fund 101 under
Maintenance and Other Operating Expenses (stated in NBC No.
331).
▪ A project can also borrow from income generated from
agriculture operation (Fund161), manufacturing (Fund162),
auxiliary services (Fund163), and income from tuition fees, etc.
(Fund164).

b. External Sources
▪ Loans from financial institutions, such as banks
▪ Grants from businessmen and political leaders
▪ Joint venture agreements
▪ Build-Operate-Transfer arrangements

▪ Contract Growing arrangements

Section 3. Financial Management

The end product of the financial accounting process is a set of
reports, which are called financial statements. The three (3) financial
statements, which have to be prepared by the Project Manager and
the Accountant every end of the period for submission to the VP for
E&BA, are the following: (a) income statement; (b) cash flow
statement, and (c) balance sheet. However, in the present government
accounting system, only the income statement is being prepared
among the three financial statements.

A. Income Statement
The income statement shows the results of operation of a
project for a certain period of time, usually a month (for fast-
moving projects, i.e. with daily sales such as poultry and
swine), or a production cycle (for projects like cattle). It shows
whether a net income is earned or net loss is incurred by the
project during the period. An income statement showing the
revenues and expenses has the following format below.

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