Chapter 1 - Nature And Scope Of NGAS Flashcards
The NGAS was made in order to respond to the need for the ff:
- The adoption of the system that is in conformity with international accounting standards.
- Pursuit of eventual computerization, which will include responsibility accounting, thereby ensuring the generations of various reports that are useful to management, lawmakers and general public
- Generation of relevant and periodic financial statements
- Effective tool for managers and executives in effective and efficient monitoring of agency performance.
It encompasses the process of analyzing, recording, classifying, summarizing, and communicating all transactions involving the receipt and disposition. Government funds and property and interpreting the results thereof.
Government accounting
The presidential decree 1445 sets down the following objects accounting
- produce information concerning past operations and present conditions
- to provide a basis for guidance for future operations
- To provide for control of the act of public bodies and offices in the receipt,disposition and utilization of funds and property
- The report on the financial position and the results of operation of government agencies for the information and guidance of all persons concerned
The following are the processes and considerations in developing a standard of PPSAS
- applicability of IPSAS
- exposure draft of PPSAS
- fundamental issues
- Statutory authority
- Disclosure requirements
- PPSAS numbering
- Financial reporting issues not dealt with by IPSAS
- Submission of draft to PSASB for consideration of the COA
- Group discussions
Accounting responsibility emanates from:
Constitution
Laws
Policies
Rules and regulation
The offices of the government charge with the accounting responsibilities
COA
DBM
BTr
GOV agencies
Keeps the General Accounts of the government, promulgates accounting rules and regulations, and submit to the president and Congress, within the time fixed by law, an annual report to the government subdivision, agencies and instrumentalities including government owned and controlled corporations
Commission on Audit
Responsible for the formulation and implementation of the national budget with the goal of attaining our socioeconomic plans and objectives
Department of budget and management
The department of budget and management shall maintain the following registries
Registry of appropriations and allotments
Registry of special purpose fund appropriation
Registry of allotment and notice of cash allocation
Play a pivotal to roll in the cash operation of the national government
bureau of Treasury
The Bureau of treasury as one of the operating bureau of the Department of finance is authorized to:
- receive and keep national funds manage and control the disbursements thereof
- Maintain accounts of financial transactions about national government offices, agencies and instrumentalities
The government agencies shall maintain the following for registries for allotment it receives and the following obligations it incurs
- Registry of allotments and obligations -Personnel service
- Registry of allotments and obligations - maintenance and other operating expenses
- registry of allotments an obligations - capital outlay
- Registry of allotments an obligations - financial expenses
Is it appropriate for the purposes other than those provided in the regular funds of government agencies
- miscellaneous personnel fund
- Calamity fund
- Organizational adjustment fund
Is used to cover personnel benefits which are not provided for in the regular budget to be agency
Miscellaneous personnel fund
Is used to cover relief, rehabilitation, reconstruction and other services in connection with the calamities that may occur in the budget year
Calamity fund
It is used to cover budgetary requirements of the newly created organization, program/project/activity within the agency
Organizational adjustment fund
This shall be the coding framework for the national government’s financials transactions and In all faces of the budget cycle
Unified Account Code Structure
Is the system that relates the financial 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
responsibility accounting is a system that measures the plans (__________) and actions (___________) of each responsibility center
By budget; by actual result
It is a part segment, segment or function of a government agency, headed by a manager, who is accountable for specified set of activities
Responsibility center
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
Allotment
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
Obligation
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
Notice of cash allocation
Factors considered in determining the useful life of an asset
- Expected usage of the asset
- expected physical wear and tear
- Technical or commercial obsolescence
- Legal or similar units on the use of assets
The COA prescribe the New Government Accounting System granted under what section of the Philippine Constitution?
Sec 2(2), Articles IX-D of the 1987 Philippine Constitution
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
New government accounting system
This is the concept that apply to general-purpose financial reporting under the accrual basis of accounting
Conceptual framework
It is both money set aside in for a specific purpose, and an independent fiscal and accounting entity.
Fund
The three special journals to be used by government accounting aside from the general journal
Cash receipt journals
check disbursement journals
cash disbursement journals
