Chapter 1 Flashcards
It is promulgated by the COA under the authority conferred to it by the Philippine Constitution.
Government Accounting Manual for National Government Agencies (GAM for NGAs)
It was promulgated to primarily to harmonize the government accounting standards with the International Public Sector Accounting Standards (IPSAS). The IPSASs are based on the IFRS.
Government Accounting Manual for National Government Agencies (GAM for NGAs)
What are the objectives of the GAM for NGAS? (3)
To update the following:
* *Standards, policies, guidelines, and procedures in accounting for government funds and property;
* *Coding structure and accounts; and
* Accounting books, registries, records, forms, reports, and financial statements.
It encompasses the processes of analyzing, recording, classifying, summarizing, and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results thereof. (PD 1445, Sec. 109)
Government Accounting
What are the objectives of government accounting? (4)
- To produce information concerning past operations and present conditions;
- To provide a basis for guidance for future operations;
- To provide for control of the acts of public bodies and offices in the receipt, disposition and utilization of funds and property; and
- To report on the financial position and the results of operations of government agencies for the information and guidance of all persons concerned.
It assists COA in the formulation and implementation of PPSAS applicable to NGAs, LGUs and GOCCs not considered as GBEs.
-created in 2008 under COA Resolution No. 2008-12 dated October 10, 2008
Public Sector Accounting Standards Board
What are the processes and other considerations in developing the Philippine Public Sector Accounting Standards (PPSAS)? (9)
- Applicability of IPSAS
- Exposure Draft of PPSAS
- Fundamental Issues
- Statutory Authority
- Disclosure Requirements
- PPSAS Numbering
- Financial Reporting issues not dealt with IPSAS
- Submission of draft to PSASB for consideration of the COA
- Focus Group Discussions
It emanates from the Constitution, laws, policies, rules and regulations. It is mandated by the Constitution of the Philippines to keep general accounts of the government, promulgation of accounting rules, and the submission of reports covering the financial condition and operation of the government.
Accounting responsibility
What are the offices charged with government accounting responsibility? (4)
- Commission on Audit (COA)
- Department of Budget and Management (DBM)
- Bureau of Treasury (BTr)
- National Government Agencies (NGAs)
What are the responsibilities of COA? (4)
- Promulgate accounting and auditing rules
- Keep the general accounts
- Submit financial reports (not later than the last day of Sept. each year – Section 41, PD 1445)
- Under joint circular no. 2013-1 (UACS) – It is responsible for the consistency of account classification and coding STRUCTURES
What is the authority of COA? (3)
- Define the scope of its audit examinations
- Establish techniques and methods
- Promulgate accounting and auditing rules and regulations
It is responsible for the:
* Implementation of the national budget
* Efficient and sound utilization of government funds and revenues
* Under joint circular no. 2013-1 (UACS) It is responsible for the validation and assignment of new codes for funding source organization, sub-object codes for expenditure items; and the validation and assignment of new program, and activity project codes jointly decided with the proponent agency.
Department of Budget and Management (DBM)
It is authorized to:
* Receive and keep national funds, manage and control the disbursements thereof; and
* Maintain accounts of financial transactions of all national government offices, agencies and instrumentalities.
Bureau of Treasury (BTr) - Department of Finance (DOF)
It plays a pivotal role in the cash operations of the national government.
Bureau of Treasury (BTr)
It is responsible in the:
* Control and monitor the NCA and bank transfers
* Under joint circular no. 2013-1 (UACS) – It is responsible for the consistency of accounts classification and coding STANDARDS
Bureau of Treasury (BTr)
What are the responsibilities of NGAs? (3)
- maintain and keep current the accounts of the agency,
- provide advice on the financial condition and status of the appropriations and allotments of the agency as its Head may require, and
- to develop and conduct procedures designed to meet the needs of management
What are the basic accounting and budget reporting principles? (7)
- Compliance with PPSAS and relevant laws, rules and regulations
- Accrual basis of accounting
- Budget basis for presentation of budget information in the financial statements
- Revised Chart of Accounts
- Double entry bookkeeping
- Financial statements based on accounting and budgetary records
- Fund cluster accounting
It refers to an accounting entity for recording expenditures and revenues associated with a specific activity for which accounting records are maintained and periodic financial reports are prepared.
Fund cluster
Fund Clusters (7)
- Regular Agency Fund
- Foreign Assisted Projects Fund
- Special Accounts - Locally Funded/Domestic Grants Fund
- Special Accounts - Foreign Assisted/Foreign Grants Fund
- Internally Generated Funds
- Business Related Funds
- Trust Receipt/Inter-agency Transferred Funds (IATF)
It is a system that relates the financial results to a responsibility center, which provides access to cost and revenue information under the supervision of a manager having direct responsibility for its performance. It is a system that measures the plans (by budget) and actions (by actual results) of each responsibility center.
Responsibility Accounting
It is a part, segment, unit, or function of a government agency headed by a manager, who is accountable for a specified set of activities.
Responsibility center
These are established to provide each government agency’s accessibility to cost information and to facilitate monitoring at any given period.
Cost centers
What are the aims of responsibility accounting? (3)
- ensure that all costs and revenues are properly charged/credited to the correct responsibility center so that deviations from the budget can be readily attributed to managers accountable therefor;
- provide a basis for making decisions for future operations; and
- facilitate review activities monitoring the performance of each responsibility center and evaluation of the effective of agency’s operations.
What are the concepts of responsibility accounting? (6)
- Accumulating and reporting data on revenues and costs on the basis of the manager’s action
- Evaluation of a manager’s performance is based on the matters directly under his control
- Can be used at every level of management
- The reporting of costs and revenues under responsibility accounting differs from budgeting
- Involves the preparation of a report for each level of responsibility
- Evaluation of a manager’s performance for cost centers is based on his ability to meet budgeted goals for controllable costs
