ACCOUNTABILITY AND RESPONSIBILITY

FOR GOVERNMENT FUNDS AND PROPERTY

Accountability, defined
- The quality or state of being accountable or answerable, bound to give an
explanation
(The New Websters Dictionary of the English Language)
Accountable , defined
a) Having responsibility or liability for cash or other property held in trust
or under some other relationship with another
b) (government accounting_ Personally liable for improper payments; said
of certifying or disbursing officer ) Dictionary for Accountants by Kohler
cited on page 521 of the State Audit Code, Annotated by F.S. Tantuico, Jr.
Responsibility, defined
a) that for which one is answerable; a duty or trust; ability to meet
obligations or to
act without superior authority or guidance (The New
International Websters Dictionary Thesaurus of the English Language)
b) The acceptance of assigned authority; the obligation prudently to
exercise assigned or imputed authority attaching to the assigned or
imputed role of an individual or group participating in organizational
activities or decisions (A Dictionary for Accountants by Kohler, cited on
page 521 of the State Audit Code Annotated by F.S. Tantuico, Jr.
Fund, defined is a sum of money or other resources set aside for the purpose of
carrying out specific activities or attaining certain objectives in
accordance with special regulations, restrictions, or limitations, and
constitutes an independent fiscal and accounting entity. ( Sec. 3, P.D.
1445)
Government Funds, defined includes public moneys of every sort and other
resources pertaining to any agency of the government
(Sec. 3, P.D.
1445)
Resources, defined - refers to the actual assets of any agency of the government
such as cash, instruments representing or convertible to money,
receivables, lands, buildings, as well as contingent assets such as
estimated revenues applying the current fiscal period not accrued or
collected and bonds authorized and unissued. (Sec. 3, PD 1445)
Property, defined - any asset, including cash, title to which is ordinarily transferable
between persons (A Dictionary for Accountants, by Kohler cited on page
412 of the State Audit Code, Annotated by F.S. Tantuico, Jr.)
Accountable Officer, defined (government accounting) An authorized certifying,
disbursing or collecting officer (A Dictionary for Accountants by Kohler
cited on page 521 of the State Audit Code, Annotated by F.S. Tantuico,
Jr.)

PRINCIPLE a general law or rule adopted or professed as a guide to action; a

settled ground or basis of conduct or practice
TREASURY that department of government which is charged with the receipt,
custody, and disbursement (pursuant to appropriations) of the public
revenues or funds
DEPOSITORY means any financial institution lawfully authorized to receive
gofernment moneys upon deposit (Sec. 3(6) P.D. 1445

APPROPRIATION the act of the legislature setting apart or assigning to a particular

use a certain sum of money to be used in the payment of debt or dues
from the state to its creditors
PUBLIC PURPOSE has for its objective the promotion lf of the public health, safety,
morals, security, contentment, and the general welfare of all the
inhabitants; a purpose approved and authorized by law
TRUST FUNDS- funds which have come officially into the possession of any agency
of the government or of a public officer as trustee, agent, or
administrator, or which have been received for the fulfillment of some
obligation. (Sec. 3(4) P.D. 1445)
Trust fund must be used for the purpose for which it was created.
FISCAL of or pertaining to the public treasury or revenue, of pertaining to financial
matters generally; relating to accounts or the management of revenue;
or pertaining to the public finances of a government.
RESPONSIBILITY the obligation prudently to exercise assigned or imputed authority
attaching to the assigned or imputed role of an individual or group
participating in organizational activities or decisions.
TRANSACTION an event or condition the recognition of which gives rise to an entry
in accounting records
OPERATIONS - the activities of an enterprise exclusive of financial transactions and
those of an extraordinary character, as, production, or the rendering of
service, distribution, or administration. Hence, the activities generally of
an enterprise resulting in charges or credits to revenue or expenses.
Role of the COA is to determine whether fiscal responsibility referred to
herein has been properly and effectively discharged. (Sec. 25(1) PD
1445)
DISBURSEMENTS payment in currency or by check. The term is not synonymous
with expenditure.
DISPOSITION the parting with, alienation of, or giving up of property
APPROVAL to give approval is to confirm, ratify, sanction, or consent to some act
or thing done by another.
CLAIM a demand for payment, reimbursement, or compensation for injury or
damage, under law or contract.
Documentation as used in this section pertains to evidences necessary to
support claims against government funds as enumerated by laws and
administrative requirements. These evidences are used by the auditor
to evaluate the authenticity and authority of a claim. The review on the
proper documentation of a claim is part of compliance audit.
Evidences may consist of (1) physical evidence obtained by observation,
photograph, or similar means (2) testimonial evidence obtained by
interviewoimng or taking statement from involves persons (3)
documentary evidence consisting of letters, contracts, extracts from
books of account, etc. and (4) analytical evidence secured by analysis of
information the auditor has obtained

LAW in its specific and concrete sense, a rule of conduct, just, obligatory,
formulated by legislative power for common observance and benefit.
REGULATION a rule or order prescribed for management or government ; a
regulating principle; a precept
PRACTICE frequent or customary action; a succession of acts of the same kind;
frequent habitual exercise (Morenos Law Dictionary)
GENERALLY ACCEPTED given authoritative recognition; said of accounting
principles or audit standards, and the pronouncements concerning them,
lately those of the Financial Accounting Standards Board (FASB), also
those of the American Institute of Certified Public Accountants
(AICPA). The Philippine counterpart is the Philippine Institute of
Certified Public Accountants (PICPA). The Commission on Audit is the
official body that may adopt or accept accounting and auditing principles
insofar as state practice of both professions is concerned.
SOUND in harmony with accounting and management doctrine of purported
general acceptance.
MANAGEMENT exclusive authority; the combined fields of
administration; a term often employed as a correlative
making.

policy and
of decision-

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) consist of a body of

conventional and recognized methods of handling accounting data and
preparing financial statements and are intended to achieve the basic
accounting objective of providing useful financial information. Derived
from experiences and reason, accounting practices which prove useful
gain acceptance as principles through the support of members of the
profession, professional organization and government bodies.
As far as government accounting and auditing practice is concerned, an
accounting and/or auditing principle can be adopted or accepted only if
it is not contrary to law.

Accountable officers expanded concept:

other officers, who though not
accountable by the nature of their duties, may likewise be similarly held
accountable and responsible for government funds thru their
participation in the use or application thereof.