ACTGOV - Failure to notify the COA for any loss of

government funds from unforeseen events

Chapter 1: Overview of Government Accounting within 30 days will not relieve the officer of
Government Accounting liability.
- the process of analyzing, recording, classifying, Accounting responsibility
summarizing, and communicating all transactions a. COA (Commission on Audit)
involving the receipt and disposition of government - Promulgate accounting and auditing rules and
funds and property, and interpreting the results regulations
thereof. - Keeps the general accounts, supporting
- process of producing information that is useful in vouchers and other documents.
making economic decisions. - Submits financial reports to the president and
Objectives of Government Accounting congress.
a. produce information concerning past operations and b. DBM (Department of Budget Management)
present conditions - Responsible for the formulation and
b. provide a basis for guidance for future operations implementation of the national budget with the
c. provide for control, disposition, and utilization of goal of attaining hte nations socio-economic
funds and property objectives.
d. report on the financial position and the results of c. BTr (Bureau of Treasury)
operations of government agencies - The cash custodian of the government
Places greater emphasis on the ff: - Receive and keep the national funds and
a. Sources and utilization of government funds manage and control the disbursements
Sources - Maintain accounts of financial transactions of all
- receipts from taxes and other fees, government offices
borrowings, and grants from government and d. Government Agencies
international bodies. - Any department/offices of the national
Utilization government
- expenditures on programs, projects, - Responsible for directly implementing the
unanticipated losses from calamities, etc. projects and performing the functions delegated
b. Responsibility, accountability, and liability of by the government
entities entrusted with government funds and The GAM for NGAs
properties. The New Government Accounting System(NGAs)
Responsibility in 2002 was replaced by the Government
- Resources shall be utilized efficiently and Accounting Manual for National Government
effectively by the law Agencies(GAM for NGAs) on Jan. 1, 2016.
- They shall share fiscal responsibility - Promulgated primarily to harmonize the
Accountability government accounting standards with
- Every accountable officer shall be properly international accounting standards, particularly
bonded. the International Public Sector Accounting
- The transfer shall be properly documented in Standards (IPSAS)
an invoice and receipt which be made only Coverage
after the authorization of the COA. a. Preparing general purpose financial statements
Liability following PPSAS
- Unlawful use of government resources shall b. Reporting of budget, revenues, and
be the personal liability of the employee expenditures in accordance with laws, rules,
found to be directly responsible. and regulations
- Every accountable officer shall be liable for Objective
all losses resulting from the unlawful use or a. Standards, policies guidelines, and procedures
negligence in the safekeeping of government in accounting funds for government funds and
resources. property
- No accountable officer shall be relieved from b. Coding structure and accounts
the liability merely because he has acted c. Accounting books and FS
under the direction of a superior officer. Basic Accounting and Budget reporting Principles
 1. Philippine Public Sector Accounting standards - “ bottom-up” approach - participation in the
(PPA) budget preparation starting from the lowest
2. Accrual basis of accounting to the highest levels
3. Budget basis 1. Budget Call
4. Revised Chart of Accounts (COA)
- DBM issues budget call (contains
5. Double entry bookkeeping
next fiscal year's targets, the
6. FS based on accounting and budgetary records
7. Fund cluster accounting (maintained by fund agency's budget ceiling, and
cluster) guidelines in the completion and
proposal agency budget proposals)
Qualitative Characteristics for Financial Reporting 2. Budget Hearings
1. Understandability - conducted after the agencies submit
2. Relevance their budget proposals
3. Materiality - each agency defends its budget
4. Timeliness proposal before the DBM
5. Reliability
- consolidate deliberated proposals
6. Faithful Representation
National Expenditure program (NEP)
7. Substance over Form
8. Neutrality and Budget of Expenditures and
9. Prudence Sources of Financing (BESF)
10. Completeness - DBM submit proposed budget to the
11. Comparability president
3. Presentation to the Office of the President
Components of General Purpose FS - President and Cabinet members
1. Statement of Financial Position revuew the proposed budget
2. Statement of Comprehensive Income - DBM finalizes budget documents
3. Statement of Changes in Equity
after president aprroves the
4. Statement of Cash Flows
proposed budget and to be submitted
5. Statement of Comparison of Budget and Actual
Amounts to the Congress
6. Notes to FS - Proposed budget is referred to as the
“President’s Budget”
a. President Budget Message
Chapter 2: The Budget Process b. National Expenditure
Program (NEP)
National budget (government budget) c. Budget of Expenditures and
- government's estimate of the sources and Sources of Financing (BESF)
uses of government funds within a fiscal d. Other documents (further
year explanation)
- duly approved by legislation.
Budget Legislation
Budget Cycle - government funds shall only be spent in
- formulation and eventual utilization of the pursuance of an appropriation made by law
national budget. (due process must be undertaken)
The Budget Cycle 4. House Deliberations
1. Budget Preparation - House of Representatives conducts
2. Budget Legislation hearings to scrutinize, HR prepares
3. Budget Execution the General Appropriations Bill
4. Budget Accountability (GAB)
5. Senate Deliberations
Budget Preparation
 - senate conducts its own 9. Allotment
deliberations of the GAB, starts after - DBM formulates the Allotment
senate receives the GAB (hearings Release Program (ARP) to set limit
start even as Representatives for allotment release
deliberations are ongoing) - ARP - control device to ensure that
6. Bicameral Deliberations releases conform to the national
- Bicameral Conference Committee is budget
formed to harmonize conflicts - Cash Release Program (CRP) - sets
between HR and HS the disbursement limits for the year
- harmonized GAB is submitted to Allotment (Obligational Authority)
both houses for ratifications - authorization issued by the DBM to GAs to
7. President’s Enactment incur obligations
- Presidents enacts the budget known Obligation
as General Appropriations Act (GAA) - an act duly authorized official which binds
- before enactment,the President may the government to immediate payment of a
exercise his veto power sum of money
Documents used in releasing allotment
The Approved Budget 1. General Appropriations Act Release
Approved Budget Document (GAARD)
- expenditure authority derived from - obligational authority for the
appropriation laws related to the anticipated comprehensive release of budgetary
revenue or receipts for the budgetary period. items
Appropriation - For Comprehensive Release
- the authorization made by a legislative body 2. Special Allotment Release Order (SARO)
to allocate funds for purposes specified by - releases of allotments for Special
the legislative or similar authority. Purpose Funds
- For Later Release
Budget Execution 3. General Allotment Release Order (GARO)
- phase where government funds are spent. - comprehensive authority to incur
obligations not exceeding the
8. Release guidelines and BEDs authorized amount
- DBM issues guidelines on the - covers automatically appropriate
release and utilization of funds while expenditures common to most
agencies submit their BEDs agencies without need of special
(summarizes an agency's fiscal year clearance
plans and performance targets)
Major Recipients of the budget 10. Incurrence of Obligations
1. NGAs - all agencies within - GAs incur obligations which will be
the executive, legislative and paid by the government
judicial branches 11. Disbursement Authority
2. LGUs - autonomous regions, - DBM issues disbursement
provinces and cities authority,point where GAs obtain
independent from province, access to government funds.
component cities and documents used in releasing disbursement
municipalities and barangays authority
3. GOCCs - corporations 1. Notice of Cash Allocation - authority issued by
owned or controlled by the the DBM to central, regional and provincial
government
2. Notice of Transfer of Allocation - authority issued - to monitor the appropriations and
by an agency's Central office regional and operating allotments, to ensure that allotments
units will not exceed appropriations.
3. Non-Cash Availment Authority - authority issued 3. RAOD
by the DBM to agencies to cover the liquidation of - to monitor the allotment received,
their actual obligations incurred obligations incurred against the
4. Cash Disbursement Ceiling - authority issued by corresponding allotments and the
the DBM to agencies with foreign operations. actual disbursements made, to
ensure obligations will not exceed
Budget Accountability allotments, disbursement will not
12. Budget Accountability Reports exceed the obligations incurred.
- GAs are required to submit 4. RBUD
accountability reports. - to reword the approved special
13. Performance Reviews budget and the corresponding
- DBM and COA perform periodic utilizations and disbursements
reviews (performance and budget charged to related income.
accountability) and report to the Object of expenditures
President. a. Personnel Services (PS)
14. Audit - all types of employee benefits
- COA audits the agencies b. Maintenance and Other Operating Expenses
(MOOES
- various operating expenses
Chapter 3: The Government Accounting Process c. Financial Expenses (FE)
- finance costs
Book of Accounts and Registries d. Capital Outlays (CO)
1. Journal (a. General Journal, b. Cash - capitalizable expenditures
Receipts Journal, c. Cash and Check
Disbursements Journal)
2. Ledgers (a. General Ledger, b. Subsidiary
ledger)
3. Registries (a. Registries of Revenue and
Other Receipts RROR, b. Registry of
Appropriations and Allotments RAPAL, c.
Registries of Allotments, obligations and
Disbursements RAOD, d. Registries of
Budget, Utilization and Disbursements
(RBUD)
> Journal and Ledger (accounting records)
> Registries (budget records)

Budget Registries
1. RROR
- to monitor the budgeted amounts,
actual collections and remittances of
revenue and other receipts
2. RAPAL
The Government Accounting Cycle General Fund - available for any purpose
1. Appropriation Special Fund - designated for special purposes
2. Allotment Trust Fund (Fiduciary Fund) - held by a government
3. Incurrence of Obligation agency for the fulfillment of a condition.
4. Disbursement Authority - NCA Revenue Fund - funds derived from income,
5. Disbursements available for appropriation or expenditure
6. Billings, collections and Remittances Depository Fund - held in an authorized depository
7. Unadjusted trial Balance bank, reccipien agency retains control for the lauful
8. Adjusting entries purposes
9. Closing entries Special Account in the General Fund ( SAGF) -
10. Preparation of financial statements facilitate the funding of priority activities, sourced
from specific fees, grants and donations and other
sources
Chapter 4: Revenue and other Receipts Special purpose Funds (SPFs) - funds that the
Revenue President allocates for special programs and
- gross inflow result in an increase in equity projects
- includes received or receivable by the entity
Receipt Sources of Revenue
- actual cash collection from all sources. a. Exchange transactions
- one entity receives assets or services, has
Fundamental Principles (Revenue) liabilities extinguished directly gives
approximately equal value to another entity
in exchange
i. Sale of Goods or Provisions of Services
- Service Income
- Business Income
ii. Use by the entity of assets yielding interest
- interest income
- royalties
- dividends
b. Non-exchange transations
- received out directly providing something of
equal value in return

Types of funds
Chapter 5: