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AC51FB1
NEW GOVERNMENT ACCOUNTING SYSTEM (NGAS)
Chapter 1
Nature and Scope of the New Government Accounting System
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Objectives: Presidential Decree No. 1445 - The Government Auditing
Code of the Philippines Section 110.
Government accounting shall aim to:
(1) produce information concerning past operations and present
conditions;
(2) provide a basis for guidance for future operations;
(3) provide for control of the acts of public bodies and officers in
the receipt, disposition and utilization of funds and property; and
(4) report on the financial position and the results of operations
of government agencies for the information of all persons
concerned.
PPSASB 4
IPSASB 3
PSASB 2
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Nature and Scope of the New Government Accounting System
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Development of PPSAS
1. Applicability of IPSAS (Assessment)
Existing IPSAS were assessed to determine the applicability of the
provisions in the Philippines setting
2. Exposure draft (Post-Comment-Evaluate)
a. PSASB issues exposure drafts of all proposed PPSAS for comment
by interested parties including COA officials and auditors, agency
finance
personnel,
oversight
agencies,
professional
organizations, academe and other stakeholders.
b. The PSASB sets a reasonable time to allow interested parties to
consider and comment on its proposals.
c. PSASB evaluates all comments received on exposure drafts and
makes such modifications, where appropriate.
3. Fundamental Issues
Where an accounting principle or a significant element of a disclosure
requirement contained in IPSAS is considered to be in conflict with the
PHILIPPINES LAWS, RULES AND REGULATIONS, THIS WOULD BE
REGARDED as a fundamental issue and the accounting principle or
disclosure requirement may be changed
.
4. Statutory authority
Where the international standard deviates from the Philippine
regulatory or legislative environment, Philippine application guidance
shall be issued accordingly.
5. Disclosure requirement
This may be amended when regarded as being significant for
improving fair presentation of the matter.
6. PPSAS numbering
a. Same number as IPSAS to maintain link
b. Series of PPSAS starting with 101 if there is no IPSAS equivalent.
c. PPSAS numbered in (b) will be withdrawn and reissued as PPSAS
with the IPSAS number if IPSASB subsequently issues equivalent
standard
*Standards of PPSAS have equal authority regardless of the
numbering used.
7. Financial reporting issues not dealt with by IPSAS
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Where issues related to financial reporting emerged, research were
done and a discussion document will be prepared based on other relevant
accounting standards not in conflict with Philippine laws.
8. Submission of draft to PSASB for consideration of COA
Where there are significant changes or unresolved issues associated
with an exposure draft, the PSASB may decide to re-expose a proposed
PPSAS.
9. If considered appropriate, focus group discussions will be held
to obtain further opinions on issues is identified by the
exposure process.
ACCOUNTING RESPONSIBILITY
Accounting responsibility emanates from the Constitution, laws, policies,
rules and regulations. The Constitution of the Philippines, the fundamental
law of the land, mandates the keeping of the general accounts of the
government, promulgation of accounting rules, and the submission of reports
covering the financial condition and operation of the government.
1. Commision on Audit (COA);
2. Deparment of Budget and Management (DBM);
3. Bureau of Treasury (BTr); and
4. Government agencies discharging the functions of government to
enable it to attain its commitment to the Filipino people.
COMMISSION ON AUDIT
-
Chapter 1
Nature and Scope of the New Government Accounting System
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Title XVII, Book IV of the Administrative Code of the Philippines (EO 292),
Chapter 1, Section 2. Mandate:
The Department shall be responsible for the formulation
and implementation of the National Budget with the goal of
attaining our national socio-economic plans and objectives.
The Department shall be responsible for the efficient and sound
utilization of government funds and revenues to effectively
achieve our countrys development objectives.
Responsibilities
Under the Revised Administrative Code, the Bureau of Treasury, as one
of the operating bureaus of the Department of Finance is authorized to:
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1. Receive and keep national funds, manage and control the
disbursements thereof; and
2. Maintain accounts of financial transitions of all national government
offices, agencies and instrumentalities.
Under the new accounting system:
1. Maintain the Registry of NCA and Replenishment (RENREP) for
control and monitoring of NCA released by DBM.
2. Monitor bank transfers it makes in replenishing its MDS accounts.
Under Unified Accounts Code Structures:
- Responsible for the consistency of accounts classification and
coding standards with the Government Finance Statistics (GFS).
THE GOVERNMENT AGENCIES
Departments, bureaus, offices and other instrumentalities of the
National Government, including the Congress, the Judiciary, the
Constitutional bodies, state colleges and universities, and other selfcontained institutions and hospitals are required by law to have accounting
units/divisions/departments, which are to be of the same level wh other
units/divisions/departments in the agency and under the direct supervision of
the Head of the Agency.
Accounting personnel shall:
1. Maintain and keep current the accounts of the agency;
2. Provide advice on the financial condition and status of the
appropriations and allotments of the agency as its Head may
require; and
3. To develop and conduct procedures designed to meet the needs of
the management.
Responsibility under New Accounting System:
1. Agency shall journalize the Notice of Cash Allocation (NCA) it
receives, which in effect, identifies the share of agency in the
income of the national government;
2. Agencies will no longer journalize its appropriations and allotments
but maintain the following registries:
a. Registry of Allotments and Obligations Personnel Services
(RAOPS)
b. Registry of Allotments and Obligations Maintenance and
Other Operating Expenses (RAOMO)
c. Registry of Allotments and Obligations Capital Outlay
(RAOCO)
d. Registry of Allotments and Obligations Financial Expenses
(RAOFE)
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Nature and Scope of the New Government Accounting System
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d. Books of Accounts. All national agencies shall maintain two sets
of books, namely:
Regular Agency (RA) Books. These shall be used to record
the receipt and utilization of Notice of Cash Allocation (NCA) and
other income/receipts which the agencies are authorized to use and
to deposit with Authorized Government Depository Bank (AGDB)
and the National Treasury. These shall consist of journals and
ledgers, as follows:
Journals
Cash
Receipts
Journal (CRJ)
Cash
Disbursements
Journal (CDJ)
Check
Disbursements
Journal (CkDJ)
General Journal (GJ)
Ledgers
General Ledger (GL)
Subsidiary Ledgers (SL) for:
Cash
Receivables
Inventories
Investments
Property, Plant
and
Equipment
Construction in Progress
Liabilities
Income
Expenses
Balance Sheet
statements
shall
be
Chapter 1
Nature and Scope of the New Government Accounting System
NEW
OLD
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Four-money
Two-money
column listings
column
g. Allotment
*Debit Balance
*very simple
and
*Debit Total
*Users other than
Obligation.
accountants can
*Credit Balance
Obligation
easily
*Credit Total
accounting is
understand
modified
to
simplify
procedures in the incurrence and liquidation of obligations and the
recording of the budgetary accounts (allotments and obligations
incurred and liquidated). Separate registries shall be maintained to
control the allotments and obligations for each of the four classes of
allotments, namely:
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w. Petty Cash Fund. The Petty Cash Fund shall be maintained under
the imprest system. As such, all replenishments shall be directly
charged to the expense account and at all times, the Petty Cash
Fund shall be equal to the total cash on hand and the unreplenished
expenses. The Petty Cash Fund shall not be used to purchase
regular inventory/items for stock.
x. Foreign Currency Adjustment. Cash deposits in foreign currency
and outstanding foreign loans shall be computed at the exchange
rate prescribed by the Bangko Sentral ng Pilipinas at balance sheet
date. The total cash deposits and foreign loans payable shall be
adjusted at the end of each month and any gain or loss on foreign
exchange shall be recognized. The subsidiary ledger for foreign
currency obligations shall reflect the appropriate foreign currency in
which the loan is payable. The liability shall be expressed both in
the foreign and local currency.
Annex A
Land Improvements
Land Improvements
Runways/taxiways
Railways
Wood
Mixed
Concrete
Estimated
Useful
Property, Plant and
Life
Equipment
(in years)
10
20
40
10
10
20
30
Land
10
Building
Wood
10
Mixed
20
Concrete
30
Fixtures
Office Equipment
5
IT Equipment - Hardware
5
Library Books
5
Machineries
10
Estimated
Useful Life
(in years)
Airport Equipment
Communication Equipment
Construction and Heavy
Equipment
Firefighting Equipment and
Accessories
Hospital Equipment
Medical, Dental and
Laboratory Equipment
Military and Police
Equipment
Sports Equipment
Technical and Scientific
Equipment
Other Machineries and
Equipment
Transportation Equipment
Motor Vehicles
Trains
Watercrafts
Other Transportation
Equipment
Other Property, Plant and
Equipment
10
10
10
7
10
10
10
10
10
10
7
10
10
10
10