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    Government Accounting Manual For NGAs

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    Ivy Michelle Habagat
    This document provides an overview of the Government Accounting Manual (GAM) for National Government Agencies that was approved by the Commission on Audit in October 2015 and takes effect on January 1, 2016. The GAM aims to update government accounting policies, standards, and procedures. Key changes from the previous manual include additional financial statements, a unified accounts code structure, fund clustering, recognition of certain items, and adoption of new Philippine Public Sector Accounting Standards. The GAM also details budget and financial accountability reports agencies must submit and introduces responsibility accounting. A capacity building strategy is outlined to train agencies on proper implementation of the new GAM starting in October 2015.

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    © All Rights Reserved
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    Government Accounting Manual For NGAs

    Uploaded by

    Ivy Michelle Habagat
    5K views27 pages
    This document provides an overview of the Government Accounting Manual (GAM) for National Government Agencies that was approved by the Commission on Audit in October 2015 and takes effect on January 1, 2016. The GAM aims to update government accounting policies, standards, and procedures. Key changes from the previous manual include additional financial statements, a unified accounts code structure, fund clustering, recognition of certain items, and adoption of new Philippine Public Sector Accounting Standards. The GAM also details budget and financial accountability reports agencies must submit and introduces responsibility accounting. A capacity building strategy is outlined to train agencies on proper implementation of the new GAM starting in October 2015.

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    NGAS

    Original Title

    Government Accounting Manual for NGAs

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    This document provides an overview of the Government Accounting Manual (GAM) for National Government Agencies that was approved by the Commission on Audit in October 2015 and takes effect on January 1, 2016. The GAM aims to update government accounting policies, standards, and procedures. Key changes from the previous manual include additional financial statements, a unified accounts code structure, fund clustering, recognition of certain items, and adoption of new Philippine Public Sector Accounting Standards. The GAM also details budget and financial accountability reports agencies must submit and introduces responsibility accounting. A capacity building strategy is outlined to train agencies on proper implementation of the new GAM starting in October 2015.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5K views27 pages

    Government Accounting Manual For NGAs

    Uploaded by

    Ivy Michelle Habagat
    This document provides an overview of the Government Accounting Manual (GAM) for National Government Agencies that was approved by the Commission on Audit in October 2015 and takes effect on January 1, 2016. The GAM aims to update government accounting policies, standards, and procedures. Key changes from the previous manual include additional financial statements, a unified accounts code structure, fund clustering, recognition of certain items, and adoption of new Philippine Public Sector Accounting Standards. The GAM also details budget and financial accountability reports agencies must submit and introduces responsibility accounting. A capacity building strategy is outlined to train agencies on proper implementation of the new GAM starting in October 2015.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 27
    At a glance
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    The key takeaways are that the Government Accounting Manual (GAM) provides updated accounting policies, guidelines, standards and procedures for national government agencies in the Philippines. It aims to promote transparency and accountability in government financial reporting.

    The purpose of the Government Accounting Manual is to provide a comprehensive set of accounting policies and procedures to be observed by all national government agencies in the Philippines. It aims to promote uniformity, accuracy and reliability in government financial reporting.

    The main components of the Government Accounting Manual are three volumes that cover accounting policies, books, registries, records, forms and reports, as well as a list of accounts, coding structure, guidelines and illustrative accounting entries.

    GOVERNMENT ACCOUNTING MANUAL for

    NATIONAL GOVERNMENT AGENCIES

    PHILIPPINE ASSOCIATION FOR GOVERNMENT BUDGET ADMINISTRATION (PAGBA)


    3rd Quarterly Seminar and Meeting
    06 November 2015, Philippine Trade and Training Center, Pasay City

    By:
    LOURDES M. CASTILLO
    Assistant Commissioner
    Government Accountancy Sector
    Commission on Audit
    1

    GOVERNMENT ACCOUNTING MANUAL (GAM)


    (For National Government Agencies)
    OVERVIEW

    Presentation Outline
    Legal Basis
    GAM for NGAs
    Objectives
    Summary of Contents
    Changes Adopted
    New Standards Adopted
    Budget and Financial Accountability Reports
    Responsibility Accounting
    Implementation strategy/plan
    3

    Legal Basis

    Article 1X-D, Section 2 par. (2),


    1987 Philippine Constitution

    : a PFM Reform
    An activity of the Accounting and Auditing Reforms Project under
    the PFM Reform Roadmap
    Prepared by a committee supervised by COAs Philippine Public
    Sector Accounting Standards Board
    Exposed to various stakeholders for comment/ recommendation
    Funded by a KfW Technical Assistance Fund
    Approved by COA Commission Proper, through COA Circular No.
    2015-007 dated October 22, 2015
    To be used effective January 1, 2016
    Capacity Building activities lined-up from October to December
    2015
    5

    Objectives of the GAM


    Provides updates on the following:
    Government Accounting Policies, Guidelines, Standards and
    Procedures
    Coding Structure and Accounts
    Accounting Books, Registries, Records, Forms, Reports and
    Financial Statements
    Accounting Journal Entries

    Contents of the GAM


    Volume 1

    Volume 2

    Volume 3

    22 Chapters, 19 Annexes,
    Acronyms

    92 Appendices

    3 Chapters

    Accounting Policies

    Guidelines and Procedures


    Accounting
    Budget
    Treasury
    Property/Supply
    Management

    Books, Registries, Records,


    Forms and Reports
    Accounting
    Budget
    Treasury
    Property/Supply Management

    List of Accounts
    Code and Description of
    Accounts

    Instructions: How to Accomplish


    When/Where to Submit

    Illustrative Accounting Entries


    Sample Format of the FS
    7

    Chapters in Volume 1, GAM for NGAs


    Chapter 1 - Introduction

    GAM: Budget

    Chapter 7 - Financial Instruments

    Chapter 2 - General Provisions, Basic


    Standards and Policies

    Chapter 8 - Inventories

    Chapter 3 - Budget Monitoring and


    Reporting

    Chapter 9 - Investment Property

    Chapter 4 Responsibility Accounting

    Chapter 10 - Property, Plant and


    Equipment

    Chapter 5 - Revenue and Other


    Receipts

    Chapter 11 - Agriculture

    Chapter 6 - Disbursements

    Chapter 12 - Intangible Assets

    Session 1: Introduction to the Course and Overview of the GAM

    Slide 8 of 27

    Chapters in Volume 1, GAM for NGAs


    Chapter 13 - Leases

    Chapter 14 - Service Concession


    Arrangements:
    Grantor
    Chapter 15 - Interest in Joint
    Venture

    GAM: Budget

    Chapter 18 - Provisions, Contingent


    Liabilities and
    Contingent Assets

    Chapter 19 - Financial Reporting

    Chapter 20 - Consolidated and


    Separate Financial
    Statements

    Chapter 16 - The Effects of Changes


    in Foreign Exchange
    Rates

    Chapter 21 - Bank Reconciliation

    Chapter 17 - Borrowing Costs

    Chapter 22 - Illustrative Accounting


    Entries

    Session 1: Introduction to the Course and Overview of the GAM

    Slide 9 of 27

    Changes Adopted in the GAM


    Particulars
    1. FS Title

    2. Components of
    FS

    NGAS Manual
    1. Balance Sheet
    2. Statement of Income
    and Expenses
    3. Statement of
    Government Equity
    4. Cash Flow
    Statement
    Four

    GAM
    1. Statement of Financial
    Position
    2. Statement of Financial
    Performance
    3. Statement of Changes in
    Net Assets/Equity
    4. Statement of Cash Flow
    Six
    In addition to the above:
    5. Statement of Comparison of
    Budget and Actual Amounts
    6. Notes to Financial
    10
    Statements

    Changes Adopted in the GAM


    Particulars

    NGAS Manual

    GAM

    3. Chart of Accounts COA Circular 2004-008, COA Circular 2013-002,


    September 20, 2004

    None
    4.Unified Accounts
    Code Structure
    (UACS)
    5. Books Maintained Regular Agency Book

    January 30, 2013


    COA Circular 2014-003,
    April 15, 2014
    COA Circular 2015-007,
    October 22, 2015
    Compliant

    By Fund Cluster

    and National
    Government Book
    11

    Changes Adopted in the GAM


    Particulars

    NGAS Manual

    GAM

    6.Estimated Useful
    Lives of PPE

    Prescribed by COA

    Management
    prerogative

    7. PPE Threshold

    None

    P15,000 and above

    8. Inventory Costing Moving Weighted


    Average

    Moving Weighted
    Average;
    Specific Identification

    12

    Changes Adopted in the GAM


    Particulars
    9. Fund
    Maintenance

    NGAS
    Manual
    One Fund
    Concept

    GAM
    Fund Clustering
    01 - Regular Agency Fund
    02 - Foreign-Assisted Projects Fund
    03 - Special Accounts-Locally
    Funded/Domestic Grants Fund
    04 - Special Account-Foreign
    Assisted/Foreign Grants Fund
    05 - Internally Generated
    Funds/Retained Income Fund
    06 - Business Related
    Funds/Revolving Fund
    07 - Trust Receipts
    13

    Changes Adopted in the GAM


    Particulars
    10.Cash Flow

    NGAS Manual
    Direct Method

    11. Completed Public Derecognized


    Infrastructure
    12. Statement of
    Financial Position
    Assets

    Liabilities

    GAM
    Direct Method

    Recognized

    Without distinction

    With Distinction
    Current and Non-current

    Without distinction

    With Distinction
    Current and Non-current
    14

    Changes Adopted in the GAM


    Particulars

    NGAS Manual

    GAM

    13. Statement of Financial Form part of Income


    Performance
    Subsidies, Transfers

    Not part of Revenue


    from Current Operation

    14. Impairment loss

    None

    Recognized

    15. Adjustment affecting


    Government Equity

    Uses Prior Years Adjustment Direct adjustment to


    account
    Equity

    16. Income Collection

    Without authority to use-BTr


    With authority to use-NGAs

    Recorded by NGAs

    15

    Changes Adopted in the GAM


    Particulars
    17. Accounting for
    Donation
    with conditionality
    without conditionality
    with restriction

    NGAS Manual

    GAM

    Income

    Liability

    Income

    Revenue

    Revenue

    18. Monitoring of
    Obligation/Payment

    None

    Section C of Obligation
    Request and Status
    (ORS)

    19. Residual value

    10%

    At least 5%
    16

    New Standards Adopted


    Particulars
    20. New
    Standards

    NGAS Manual
    none

    GAM
    PPSAS 3-Accounting Policies, Changes in
    Accounting Estimates and Errors
    PPSAS 4-The Effects of Changes in Foreign
    Exchange Rates
    PPSAS 5-Borrowing Costs
    PPSAS 8-Interest in Joint Ventures
    PPSAS 9-Revenue from Exchange
    Transactions
    PPSAS 12-Inventories

    PPSAS 13-Leases
    17

    New Standards Adopted


    Particulars

    20. New
    Standards

    NGAS Manual

    none

    GAM
    PPSAS 14-Events after the Reporting Date
    PPSAS 16-Investment Property

    PPSAS 17-Property, Plant and Equipment


    PPSAS 19-Provisions, Contingent Liabilities,
    Contingent Assets
    PPSAS 20-Related Party Disclosures
    PPSAS 21-Impairment of Non-Cash
    Generating Assets
    PPSAS 23-Revenue from Non-Exchange
    Transactions (Taxes and Transfers)
    PPSAS 24-Presentation of Budget Information
    in Financial Statements
    18

    New Standards Adopted


    Particulars
    20. New
    Standards

    NGAS Manual
    none

    GAM
    PPSAS 26-Impairment of Cash-Generating
    Assets
    PPSAS 27-Agriculture
    PPSAS 28, 29 and 30-Financial Instruments
    (Presentation, Recognition and
    Measurement, and Disclosures,
    respectively)

    PPSAS 31-Intangible Assets


    PPSAS 32-Service Concession
    Arrangements: Grantor
    19

    Changes Adopted in the GAM


    (Budget)
    Particulars
    NGAS Manual
    RAOPS, RAOMO,
    1. Maintenance of
    RAOCO, RAOFE
    Registries
    RBU

    None
    2.Statement of
    Comparison of
    Budget and Actual
    Amounts
    None
    3. Registry of
    Revenue and other
    Receipts

    GAM
    RAOD
    RAPAL, RBUD

    Additional component of
    FS

    New

    20

    Budget and Financial Accountability Reports


    (BFARs)
    (COA-DBM-DOF Joint Circular No. 2013-1, as amended by
    COA-DBM Joint Circular No. 2014-1 dated July 2, 2014)

    Quarterly Physical Report of Operation (QPRO)-BAR No. 1


    Statement of Appropriations, Allotments, Obligations,
    Disbursements and Balances (SAAODB)-FAR No. 1
    Summary of Appropriations, Allotments, Obligations,
    Disbursements and Balances by Object of Expenditures
    (SAAODBOE)-FAR No.1-A

    21

    Budget and Financial Accountability Reports


    (BFARs)
    (COA-DBM-DOF Joint Circular No. 2013-1, as amended by
    COA-DBM Joint Circular No. 2014-1 dated July 2, 2014)

    List of Allotments and Sub-Allotments(LASA)-FAR No. 1-B


    Statement of Approved Budget, Utilizations, Disbursements
    and Balances(SABUDB)-FAR No. 2 (for Off-Budget Fund)
    Summary of Approved Budget, Utilizations, Disbursements
    and Balances by Object of Expenditures(SABUDBOE)-FAR
    No. 2-A (for Off-Budget Fund)

    22

    Budget and Financial Accountability Reports


    (BFARs)
    (COA-DBM-DOF Joint Circular No. 2013-1, as amended by
    COA-DBM Joint Circular No. 2014-1 dated July 2, 2014)

    Aging of Due and Demandable Obligations(ADDO)-FAR No. 3


    Monthly Report of Disbursements(MRD)-FAR No. 4
    Quarterly Report of Revenue and Other Receipts (QRROR)FAR No. 5

    23

    Responsibility Accounting - a system that measures


    the plans (by budgets) and actions (by actual results)
    of each responsibility center

    Responsibility Center - a part, segment, unit or


    function of a government agency, headed by a
    manager, who is accountable for a specified set of
    activities

    24

    Objectives of Responsibility Accounting


    Charge/Credit all costs and revenues to the correct
    responsibility center
    Provide basis for making decisions for future operations
    Facilitate review activities
    Monitor performance of each responsibility center
    Facilitate evaluation of effectiveness of agencys
    operations

    25

    GAM Implementation Strategy


    Prepared courseware for uniformity in capacity
    building/training
    Created and Trained Pool of GAM Trainers
    Capacity Building of users from October to December 2015:
    COA Officials and auditors
    Heads of National Government Agencies
    Accounting, Budget, Treasury and other Finance personnel

    Provision of technical assistance to users


    Continuous updating of the GAM through issuance of
    pertinent COA rules and regulations, as necessary

    26

    27

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