GOVERNMENT ACCOUNTING REVIEWER • To provide information concerning

past operations and present

Chapter 1: General Provisions, Basic Standards and
conditions.
Policies
• To provide as a basis for guidance
1. Government Accounting for future operations.
• Section 109 of PD 1445 • To provide for control of the acts
• Encompasses the process of of public bodies and offices
analyzing, recording, classifying, regarding the receipt,disposition
summarizing and communicating and utilization of government
all transactions involving the funds and property.
receipt, disposition and utilization • To report on the financial condition
of gov’t funds & property & and the results of operations of
interpreting the results thereof. government agencies for the
2. Essential Elements information of all persons
• Analyzing- either accountable or concerned.
non-accountable. 5. Subject of Gov’t Acctg
• Recording- recording the • National Gov’t- consisting
accountable events. “Journalizing” departments, bureaus,
• Classifying- sorting or grouping commissions, boards, state
similar and interrelated economic colleges and universities.
transactions. • Local Gov’t- provinces, chartered
• Summarizing- preparation of fs cities, municipalities and cities.
• Communicating- summarizes the • Government-owned/ Gov’t
information to turn into useful controlled corporations- created
information. by law to manage specific type of
3. Peculiarities of Gov’t Business business.
• As to purpose- to render service 6. Government Accounting Manual-used by
to the public as distinguished from the NGAS in the:
the usual profit motive of the • Preparation of the general purpose
private business. fs in accordance w/ PPSAS & other
• As to ownership- there are no fin. Report required by the laws,
defined individual ownership rules & regulations.
interest in the gov’t business, • Reporting of budget, revenue and
citizen have no right to dispose his expenditures in accordance w/
share and realize from it. laws, rules and regulations.
• As to mgmt- officers and 7. NGAS Manual- presents the basic policies
administrators of the gov’t and procedures; the new coding systems,
business who are governed by books, registries, records, forms, reports
specific laws and regulations. and financial statements; and illustrative
• As to income- priv business accounting entries to be adopted by all
derives its income from NGAs effective January 1, 2002.
services and commodities while • The objective of the Manual is to
gov’t derives its income from taxes prescribe the items presented in
and fees. Manual.
8. The GAM for NGAS- promulgated primarily
4. Basic Objectives of Gov’t Acctg to harmonize the government accounting
standards with international accounting
 standards, particularly the International DBM shall be responsible for the
Public Sector Accounting Standards (IPSAS). formulation and implementation of the
National Budget with the goal of
9. International Public Sector Accounting attaining our national socio-economic
Standards (IPSAS)- based on IFRS. plans and objectives. The Department
shall be responsible for the efficient
and sound utilization of government
10. Basic Accounting and Budget Reporting funds and revenues to effectively
Principles- financial records and reports achieve the country’s development
shall comply w/ the ff. objectives.”
• PPSAS and relevant laws, rules and 15. Bureau of Treasury (BTr)- it is authorized to:
regulations; - Receive and keep national funds,
• Accrual basis of accounting; manage and control the disbursements
• Budget basis for presentation of budget thereof; and Maintain accounts of
information in the FS; financial transactions of all national
• Revised Chart of Accounts prescribed government offices, agencies and
by COA; instrumentalities.
• Double entry bookkeeping; - BTr shall control and monitor the
• Financial statements based on Notice of Cash Allocation (NCA)
accounting and budgetary records; and released by the DBM; as well as the
• Fund cluster accounting bank transfers it makes in replenishing
11. Accounting Responsibility- It emanates from its Modified Disbursement System
the Constitution, laws, policies, rules and (MDS).
regulation. 16. National Government Agencies (NGAS)-
12. Officers w/ accounting responsibility. Departments, bureaus, offices and other
• Commission on Audit (COA); instrumentalities of the National
• Department of Budget and Government, including the Congress,
Management (DBM); Judiciary, the Constitutional bodies, state
colleges and universities, and other self-
• Bureau of Treasury (BTr); and
contained institutions and hospitals are
• Government agencies discharging
required by law to have accounting
the functions of government to
units/divisions/departments, which are to
enable it to attain its commitments
be of the same level with other
to the Filipino people.
units/divisions/departments in the agency
13. Commission on Audit (COA)
and under direct supervision of the Head of
- It keeps the general accounts of the
the Agency.
government, promulgates accounting
rules and regulations and submits to
- Accounting personnel shall:
the President and Congress, within the • Maintain and keep current
time fixed by law (not later than the the accounts of the agency;
last day of September each year – • Provide advice on the
Section 41, PD 1445), an annual report financial condition and
of the government, its subdivisions, status of the appropriations
agencies and instrumentalities, and allotments of the
including GOCCs. agency as its Head may
14. Department of Budget and Mgmt. (DBM)
require; and
- Pursuant to Section 2, Chapter 1, Title
• To develop and conduct
XVII, Book IV of the Administrative
Code of the Philippines (EO 292), “The procedures designed to
 meet the needs of the 22. Allotment– is an authorization issued
management by the DBM to NGAs to incur
- They shall perform the aforesaid obligations for specified amounts
duties in accordance with the contained in a legislative appropriation
existing laws, rules, regulations, in the form of budget release
procedures and comply with the documents.
reporting requirements of the COA, - It is also referred to as Obligational
DOF and DBM. Failure to comply Authority.
with these requirements is 23. Obligation – is an act of a duly
sufficient ground for dismissal from authorized official which binds the
the government service. government to the immediate or
17. Accrual basis – means a basis of eventual payment of a sum of money. It
accounting under which transactions may be referred to as a commitment
and other events are recognized whey that encompasses possible future
they incur (and not only when cash or liabilities based on current contractual
its equivalent is received or paid). agreement.
18. Assets – are resources controlled by an 24. Appropriation- is the authorization
entity as a result o past events, and made by a legislative body to allocated
from which future economic benefits or funds for purposes specified by the
service potential are expected to flow legislative or similar authority.
to the entity. 25. Accounts Payable – refers to a valid and
19. Liabilities - are firm obligations of the legal obligations of NGAs, for which
entity arising from past events, the goods/services/projects have been
settlement of which is expected to delivered/rendered/completed and
result in an outflow from the entity of accepted, regardless of the year when
resources embodying economic these obligations were incurred.
benefits or service potential 26. Advice to Debit Account (ADA) – refers
20. Government Budget – is the physical to an authorization issued by NGA
plan of a government for a given period, appearing in the lower portion of the
usually for a fiscal year. The budget is List of Due and Demandable Accounts
the government’s key instrument for Payable- Advice to Debit Account
promoting its socio-economic (LDDAP-ADA). It serves as instruction to
objectives. the Modified Disbursement System,
- The government budget also refers Government Servicing Banks (MDS-
to the income, expenditures and GSBs) to debit a specified amount from
sources of borrowings of the NG its available NCA balance under regular
that are used to achieve national MDS sub-account for payment of
objectives, strategies and programs. creditors/payees through the Expanded
21. Revenue Funds – comprise all funds Modified Disbursement Payment
derived from the income of any agency Scheme (ExMDPS).
of the government and available for 27. Disbursements – constitute all cash
appropriation or expenditure in paid out during a given period in
accordance with law. currency (cash) or by check.
28. Implementing Agency – refers to an FAP) – is shall be maintained by the
agency to which funds are transferred Budget Division/Unit of the entity for
for the purpose of the following fund clusters: 1) Regular
prosecuting/implementing the project. Agency Fund; and 2) Foreign Assisted
29. Modified Disbursement System (MDS) Project fund.
Check – refers to a check issued by the 35. Registry of Revenue and Other
government agencies chargeable Receipts – Internally Generated Funds
against the account of the Treasurer of (Off- Budgetary Funds – Retained
the Philippines. Income Funds)/Business Related Funds
30. Petty Cash Fund – refers to the amount (RROR-IGF/BRF) - is shall be maintained
granted to duly designated Petty Cash by the Budget Division/Unit of the
Fund Custodian for payment of entity for the following fund clusters: 1)
authorized petty or miscellaneous Internally Generated Funds (Off-
expenses which cannot be conveniently Budgetary Funds – Retained Income
paid through checks. Funds); and 2) Business Related Funds
31. Tax Remittance Advice – refers to a 36. Registry of Revenue and Other
serially-numbered document prescribed Receipts – Trust Receipts/Inter-agency
by the DBM that should be used by the Transferred Funds (RROR-TR/IATF) - is
NGAs in the remittance of withheld shall be maintained by the Budget
taxes on funds coming from DBM. Division/Unit of the entity for the Trust
Receipts/Inter-agency Transferred
Government Agencies shall maintain the
Funds
following registries:
37. Registry of Appropriation and
32. Registry of Revenue and Other Allotments (RAPAL) – is shall be
Receipts – Summary (RRORS) – it shall maintained to monitor appropriations
be maintained by the Budget and allotments charged thereto. It shall
Division/Unit of NGA to monitor the show the original, supplemental and
revenue and other receipts final budget for the year and all
estimated/budgeted, collected and allotments received charged against the
remitted/deposited corresponding appropriation.
33. Registry of Revenue and Other 38. Registry of Allotments, Obligations and
Receipts –Special Account Locally Disbursements –Personnel Sevicess
Funded/Domestic Grants Fund and (RAOD-PS) – the RAOD shall be
Special Account Foreign maintained to record allotments,
Assisted/Foreign Grants Fund (RROR- obligations and disbursements. It shall
SADFGF) - is shall be maintained by the show the allotment received for the
Budget Division/Unit of the entity for year, obligations incurred and actual
the following fund clusters: 1) Special disbursements made. The incurrence of
Account – Locally Funded/Domestic obligations shall be made through the
Grants Fund; and 2) Special Account – Obligation Request and Status (ORS).
Foreign Assisted/Foreign Grants Fund Every time an entry is made, the
34. Registry of Revenue and Other balance is determined to prevent
Receipts – Regular Agency and Foreign incurrence of obligation in excess of
Assisted Project Funds (RROR-RA & allotment and overdraft in
 disbursements against obligations Major Final Output (MFO) or
incurred The RAOD-PS shall be Program/Activity/Project (PAP) for
maintained by the Budget Division/Unit personnel services.
by Appropriation Act, fund transfer, by 43. Registry of Budget, Utilization and
Major Final Output (MFO) or Disbursements – Maintenance and
Program/Activity/Project (PAP) for Other Operating Expenses (RBUD-
personnel services. MOOE) - It shall be maintained by
39. Registry of Allotments, Obligations and Budget Division/Unit by fund cluster, by
Disbursements – Maintenance and Major Final Output (MFO) or
Other Operating Expenses (RAOD- Program/Activity/Project (PAP) for
MOOE) – it shall be maintained by the maintenance and other operating
Budget Division/Unit by Appropriation expenses
Act, fund transfer, by Major Final 44. Registry of Budget, Utilization and
Output (MFO) or Disbursements - Financial Expenses
Program/Activity/Project (PAP) for (RBUD- FE) - It shall be maintained by
maintenance and other operating Budget Division/Unit by fund cluster, by
expenses. Major Final Output (MFO) or
40. Registry of Allotments, Obligations and Program/Activity/Project (PAP) for
Disbursements – Financial Expenses financial expenses.
(RAOD-FE) – it shall be maintained by 45. Registry of Budget, Utilization and
the Budget Division/Unit by Disbursements - Capital Outlays
Appropriation Act, fund transfer, by (RBUD-CO) - It shall be maintained by
Major Final Output (MFO) or Budget Division/Unit by fund cluster, by
Program/Activity/Project (PAP) for Major Final Output (MFO) or
financial expenses. Program/Activity/Project (PAP) for
41. Registry of Allotments, Obligations and capital outlays.
Disbursements – Capital Outlays 46. Registry of Allotments and Notice of
(RAOD-CO) – it shall be maintained by Cash Allocation (RANCA) - It shall be
the Budget Division/Unit by maintained by the Accounting
Appropriation Act, fund transfer, by Division/Unit to determine the amount
Major Final Output (MFO) or of allotments not covered by NCA and
Program/Activity/Project (PAP) for to monitor available NCA.
capital outlays. 47. Registry of Allotments and Transfer of
42. Registry of Budget, Utilization and Allocation (RANTA) - It shall be
Disbursements – Personnel Services maintained by the Accounting
(RBUD- PS) – it shall be used to record Division/Unit to determine the amount
the approved special budget and the of allotments not covered by NTA and
corresponding utilizations and to monitor available NTA.
disbursements charged to retained
income authorized under RA 8292 for
SUCs and other retained income
collections of a NGA with similar
authority. It shall be maintained by
Budget Division/Unit by fund cluster, by