Governmen

t
Accounting
 Learning
Objectives:
*Definition of *Basic Features
Government and Policies of
Accounting NGAS

*Definition of *What is
NGAS, its nature Responsibility
and objectives Accounting?

*What are the *Basic

different offices Government
charged with Accounting
Accounting Concepts
Responsibility? > Standards
> Financial
Statements
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 Definition of
Government
Accounting

3
 Governmen
“
t
Accounting
encompasses the process of
analyzing, recording,
classifying, summarizing,
and communicating all
transactions involving the
4 receipt and disposition.
 The presidential decree 1445 sets
down the following objective of
Government accounting

“
1. produce information concerning past
operations and present conditions
2. to provide a basis for guidance for
future operations
3. To provide for control of the act of public
bodies and offices in the receipt,
disposition and utilization of funds and
property
4. The report on the financial position and
the results of operation of government
agencies for the information and guidance
of all persons concerned

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Definition
of NGAS,
its nature
and
objectives
 New Government Accounting
System
⊷ A simplified set of accounting
concepts, guidelines and procedures
designed to ensure correct,
complete and timely recording of
government financial transactions,
and production of accurate and
relevant financial report

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 New Accounting Government
System
⊷ The NGAS was made in order
to respond to the need for the
ff:
1. The adoption of the system
that is in conformity with
international accounting
standards.
2. Pursuit of eventual
computerization, which will
include responsibility accounting,
thereby ensuring the generations
of various reports that are useful
8 to management, lawmakers and
 New Accounting Government
System
3. Generation of relevant and
periodic financial statements
4. Effective tool for managers
and executives in effective and
efficient monitoring of agency
performance.

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 Offices
charged
with
Accounting
Responsibi
lity?
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 Accounting
Responsibility
Accounting
responsibility
emanates from:
Constitution
Laws
Policies
Rules and
regulation

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 Offices charged with
Accounting Responsibilities
Commision of Department of Bureau of Government
Audit Budget and Treasury Agencies
>Keeps the General Management
Accounts of the Responsible for
government,
Play a pivotal to Department,
the formulation roll in the cash Bureaus,
>promulgates and operation of the Offices and
accounting rules and implementation of national
regulations, and; other
the national government
instrumentaliti
> submit to the budget with the
president and
es of the
goal of attaining National
Congress, within the
time fixed by law, an our Government,
annual report to the socioeconomic including
government plans and Congress,
subdivision, agencies objectives Judiciary,
and instrumentalities
including government Constitutional
owned and controlled Bodies, State
corporations Colleges
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 Commission on
Audit
The COA prescribe the New Government Accounting System
granted under Sec 2(2), Articles IX-D of the 1987 Philippine
Constitution section of the Philippine Constitution

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 Department of Budget and
Management
-Responsible for the efficient and sound
utilization of government funds and
revenues to effectively achieve the
country’s development objectives.

The department of budget and

management shall maintain the following
registries
*Registry of appropriations and allotments
(RAPAL)
*Registry of special purpose fund
appropriation (RESPFA)
*Registry of allotment and notice of cash
allocation (RANCA)
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 Bureau of Treasury
The Bureau of treasury is authorized to:
1. Receive and keep national funds
manage and control the disbursements
thereof
2. Maintain accounts of financial
transactions about national
government offices, agencies and
instrumentalities

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 Government Agencies
The government agencies shall maintain
the following for registries for allotment it
receives and the following obligations it
incurs
1. Registry of allotments and obligations
-Personnel service
2. Registry of allotments and obligations -
maintenance and other operating
expenses
3. registry of allotments an obligations -
capital outlay
4. Registry of allotments an obligations -
financial expenses

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 Basic Features and Policies of
NGAS

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 Accounting
Methods
>International Public Sector Accounting
Standard Board (IPSASB) develops
International Public Sector Accounting
Standards (IPSAS)
>Applies to the Accrual Basis of
Accounting and Cash Basis of
Accounting.
>Conceptual Framework - This is the
concept that apply to general-purpose
financial reporting under the accrual
basis of accounting

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>Commission as
Member of
International
Organization of
Supreme Audit
Institutions (INTOSAI)

>Public Sector
Accounting Standards
Board (PSASB)

>Philippine Public
Sector Accounting
Standards (PPSAS)
 processes and considerations
in developing a standard of
PPSAS: 1. applicability of IPSAS
2. exposure draft of PPSAS
3. fundamental issues
4. Statutory authority
5. Disclosure requirements
6. PPSAS numbering
7. Financial reporting issues not
dealt with by IPSAS
8. Submission of draft to PSASB
for consideration of the COA
8. Group discussions
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 One Fund Concept
It is both money set aside in for a
specific purpose, and an independent
fiscal and accounting entity.

NGAS adopts one fund concept, and

that is the general fund, which is
generally available for all functions
of Government.

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 Is it appropriate for the purposes other
than those1.provided in thepersonnel
miscellaneous regular fund
funds
is used
of government to cover personnel benefits which are
agencies
not provided for in the regular budget
to be agency

2. Calamity fund is used to cover relief,

rehabilitation, reconstruction and
other services in connection with the
calamities that may occur in the
budget year
3. Organizational adjustment fund is
used to cover budgetary
requirements of the newly created
organization, program/project/activity
within the agency
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 Chart of Accounts and
Unified Account Code
CodeStructure - This shall be the
coding framework for the
national government's
financials transactions and
In all faces of the budget
cycle

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 Responsibility accounting
Is the system that relates the financial
Responsibility Accounting
results to a responsibility center, which
provides access to costs and revenue
under the supervision of a manager
having direct responsibility for its
performance.

Responsibility accounting is a system

that measures the plans by Budget and
actions by actual results of each
responsibility center

Responsibility center It is a part

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

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 Allotment and Obligation
Allotment
Is the authorization issued by the
department of budget and management
to an agency thereby enabling the
agency to incur obligations up to a
specified amount that legislative
appropriation

Obligation
It refers to the commitment by
government agency arising from an act
of a duly authorized official which binds
the government to the immediate or
eventual payments of a sum
of money

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 Notice of Cash
Allocation (NCA)
It is an authorization issued by the department of
budget and management to government agencies to
withdraw cash from the national treasury through the
issuance of modified disbursement checks or other
authorize mode of disbursements

The three special journals to be

used by government accounting
aside from the general journal
• Cash receipt journals
• check disbursement journals
• cash disbursement journals

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