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Define government accounting

Government accounting is the process of recording, analyzing, classifying, summarizing communicating

and interpreting financial information about government in aggregate and in detail reflecting
transactions and other economic events involving the receipt, spending, transfer, usability and
disposition of assets and liabilities

2. Enumerate the objectives of the government accounting according to section 110, presidential
decree 1445

a. To provide information concerning past operations and present conditions- enable the evaluation of
the performance of an agency from one period to the next.

b.To provide basis for guidance for future operations- result from the evaluation may guide the manager
on what proper course of action to follow in future operations.

c. To provide for control of the acts of public bodies and offices in the receipt disposition and utilization
of funds and properties.

d. To report on the financial position and the result of operations of government agencies for the
information and guidance of all persons concerned- show the extent of the agency’s financial and non
financial resources.

3. Explain briefly the purposes of creating the Public Sector Accounting Standards Board (PASB)

The Public Sector Accounting Standards Board (PSAcSB) under the Office of the COA
Chairman created under COA Resolution 2008-012 dated October 10, 2008 to assist the COA
in formulating and implementing public sector accounting standards, recommended the
adoption of the International Public Sector Accounting Standards (IPSAS) to be referred to as
the Philippine Public Sector Accounting Standards (PPSAS).

4. Explain the processes of developing the Philippine Public sector Accounting Standards

by adopting the International Public Sector Accounting Standards (IPSAS) issued by the International
Public Sector Accounting Standards Board (IPSASB). The accounting treatment and original text of the
IPSASs and the approved amendments thereof unless there is a significant accounting issue that
warrants departure are adopted and maintained by the Public Sector Accounting Standards Board

5.What are the government offices primarily charged with the accounting responsibility? Explain their
respective responsibility?

COA, DBM, Department of Finance (Bureau of Treasury) and government agencies.

Commission on Audit (COA)

Audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of
funds and property, owned or held in trust by, or pertaining to, the Government, or any or its
subdivisions, agencies and instrumentalities

The Department of Budget and Management (DBM)

1.Determines the accounting and other item of information needed to monitor budget performance

The Bureau of Treasury (BTr)

principal custodian of all national government funds

The National Government Agencies (NGAs) - required to establish and maintain a system of accounting
for their financial resources and operation; furnish information to fiscal and control agencies such as
COA, DBM, and BTr

6. Enumerate the registries of the NGA’s as provided by Government Accounting Manual

1. Registries of Revenue and Other

2. Registry of Appropriations and Allotments

3. Registries of Allotments, Obligations and Disbursements

4. Registries of Budget, Utilization and Disbursements

7. What are the basic accounting and budget reporting principles under the Government Accounting

a. generally accepted government accounting principles in accordance with the PPSAS and pertinent
laws, rules and regulations;

b. accrual basis of accounting in accordance with the PPSAS;

c. budget basis for presentation of budget information in the financial statements (FSs) in accordance
with PPSAS 24;

d. RCA prescribed by COA

e. double entry bookkeeping;

f. financial statements based on accounting and budgetary records;

g. fund cluster accounting.

8. Explain Briefly Fund cluster Accounting

Fund Cluster Accounting is an aggregation of Funding Sources for the purpose of recording transactions
and preparing report in the Budget, Treasury and Accounting processes.

9. How would the general purpose financial reporting in the public sector procide useful information
for decision making and demonstrate the accountability of the government entity?

10. Enumerate and explain the concept of responsibility accounting

a. 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 a direct responsibility for its

b. measures the plans (by budget) and the actions (by actual results) of each responsibility center

c. a part, segment, unit or function of a government agency, headed by a manager, who is accountable
for a specific set of activities

11-26 Multiple choice jaun namay answer daan

27-34 Answer questions

27. What are the key elements of the Unified Accounts code Structure (UACS) explain each element

Funding source codes – a 6 digit code reflecting the financing source, authorization, and fund category

Organization codes – a 12 digit code to reflect the department, agency, and sub-agency or operating
unit/revenue collecting unit

Location codes - a 9 digit code composed of region, province, city and municipality

Major final output, program activity and project codes

Object codes – a 10 digit code for COA chart of accounts object

28. Explain the purpose of UACS

-Facilitates all financial transactions of gov agencies

-To establish the accounts and codes needed in reporting the financial transactions of National Gov and
29. Enumerate the reporting requirements that will be best served by UACS.

• Financial Reports as required by the DBM and COA

• FS as required by the public sector accounting standards board of the Philippines

• Management Reports as required by executive officials/head of departments and agencies

• Economic statistics consistent with the GFS

30. What are the sources of account descriptions and codes in the UACS object coding elements?

• The codes from COA RCA prepared for accrual basis financial reporting

• The addition of some sub-object codes

• Additional expenditure accounts designed for cash basis budgeting

31. Enumerate descriptions and codes of fund cluster as provided by Joint circular No.2014-1 dated
November 7, 2014

• 01 Regular Agency Fund

• 02 Foreign Assisted Project Fund

• 03 Special Accounts- Locally Funded/ Domestic Grants Fund

• 04 Special Accounts – Foreign Assisted/ Foreign Grant Fund

• 05 Internally Generated Funds

• 06 Business Related Funds

• 07 Trust Receipts

32. Discuss the significance of the enhancement of Sector and Horizontal outcomes as provided by
joint circular no.2014-1 dated November 7, 2014

provide ability to track budgets and to sector outcomes and horizontal outcomes

33. What is a municipality identifier?

• 4 digit number that defines the identity of the municipality/ it is the core of the standard geographic
34. Explain the transitory measure to allow government agencies/ operating units sufficient time in
the familiarization of the UACS codes.

• The DBM shall still reflect the previous codes along the UACS codes in the release documents.
However, all ngas and operating units are authorized to make necessary conversion of the appropriate
codes to conform to the UACS code.

35-44 multiple choice jauy nay answer dba? Laong kaw hahaha

45-48 answer questions

45. Define and discuss the underlying reason why chart of accounts is prescribed in new accounting

-to enhance the accountability and transparency of the financial reports, and ensure compatibility of
financial information, the COA recognizes the need to revise the NGAS Chart of Accounts.

46. Why revised Chart of accounts in COA was created

47. What are the five classification of expenses in the Revised Chart of Accounts in COA Circular No
2013-002 dated January 30,2013? Give the sub-major account group classification

1. Personnel services
i. Salaries and wages
ii. Other compensation
iii. Personnel benefit contributions
iv. Other personal benefits
2. Maintenance and other expenses
i. Traveling expenses
ii. Training and scholarship expenses
iii. Supplies and material expenses
iv. Utility expenses
v. Communication expenses
vi. Awards/rewards, prizes and indemnities
vii. Survey,research,exploration, and development expenses
viii. Generation, transmission, and distribution expenses
ix. Confidential, intelligence, and extraordinary expenses
x. Professional services
xi. General services
xii. Repairs and maintenance
xiii. Financial assistance/subsidy
xiv. Taxes, insurance premiums, and other fees
xv. Labor and wages
xvi. Other maintenance and operating expenses
3. Financial expenses
i. Financial expenses
4. Direct costs
i. Cogm
ii. Cost of sales
5. Non-cash expenses
i. Depreciation
ii. Amortization
iii. Impairment loss
iv. Losses

48. Enumerate the five account code structure of the Revised Chart of accounts consisting of eight
mandatory digits. Explain briefly . AJAW NA I BOX BOX BABS

0 account group Classification as to A,L,E,Inc, Exp

00 major account group Classification within account grp. CCE, Inv, Rec,
00 sub-major account group Classification within major account. Cash on hand, CIB
00 general ledger accounts Represent the accounts to be presented in the detailed FS
0 general ledger contra accounts


49. B.

50. A

51. A

52. A

53. A

54. A

55. A

56. B

57. C

58. A


59. What is the general acctg plan of govt agencies/units? Enumerate and explain acctg systems in the
 The general accounting plan shows the overall accounting system of a government agency/unit.
 Includes the source documents, flow of transactions and its accumulation in the books of accounts,
and finally the conversion into financial information/data presented in the financial reports.
o Budgetary accounts system
o Receipt/income and deposit system
o Disbursement system
o Financial reporting system

60. Explain the national budget

• Plan for financing the government activities for a fiscal year prepared and submitted by
responsible executive to a representative body whose approval and authorization are necessary before
plan can be executed.

• Financial blueprint of a country’s development plan

61. Enumerate and explain the different kinds of budget

a) As to nature
– Annual budget – covers a period of one year. Basis of annual appropriation
– Supplemental budget – supplement or adjust a previous budget which is deemed
inadequate for the purpose it is intended.
– Special budget – special nature and generally submitted in special forms on
account that itemizations are not adequately provided in appropriation act.
b) As to basis
– Performance budget – emphasizing the programs or services conducted and
based on functions, activities, projects, which focus attention upon the general
character and nature of work to be done
– Line-item budget – basis of which is the objects of expenditures
c) As to approach and technique
– Zero-based budget – requires systematic consideration of all programs, projects,
and activities with the use of define ranking procedures.
– Incremental approach – only additional requirements need justifications.

62. Discuss briefly the budget process/cycle

Budget preparation
– Estimation of government revenues, determination of budgetary priorities and
activities within the constraints imposed by available revenues and by borrowing
limits, and the translation of approved priorities and activities into expenditure
Legislative authorization (budget legislation)
– Enactment of the general appropriation bill based on the budget of receipts and
Budget execution and operation
– Development of operating budget, time within which it should be done,
manpower and other resources needed to carry out the work, peso amounts
requires to accomplish proposed programs
Budget accountability
– DBM monitors the efficiency of fund utilization, asseses agency performance and
provides a vital basis for reforms and new policies.
63. Enumerate and explain the budgetary accounts

a) Appropriation

– Authorization made by law or other legislative enactment, directing payment of goods and
services out of government funds under specific conditions or for special purpose

b) Allotment

– Authorization issued by DBM to govt agency, which allows it to incur obligations, for specified
amounts, within legislative appropriation.

c) Obligation

– Commitment by a govt agency arising from an act of duly authorized official which binds the
govt to the immediate or eventual pmt of money

64. Explain the performance informed budgeting (PIB)

– Budgeting approach that uses performance information to assist in deciding where the funds
will go. It is both financial and non financial and provides context for programs activities, and projects
pursued by different agencies of the govt.

65. Enumerate and explain the obligational authorities prescribed by the govt acctg manual (GAM)

a) General appropriation act release document (GAARD)

– Abolish lengthy process of releasing allotments to a departments and agencies

b) Special allotment release order (SARO)

– Covers budgetary items “for later release” (FLR) (negative list) in the entity submitted budget
execution documents, subject to compliance of required documentats and clearances.

c) General Allotment release order (GARO)

– Comprehensive authority issued to all national government agencies to incur obligations not
exceeding an authorized amount during a specified period for the purpose indicated therein.

66. Enumerate and explain the disbursement authorities prescribed by the GAM

a) Notice of cash allocation (NCA)

– Authority issued by the DBM to pay operating expenses, purchases of supplies and materials,
acquisition of PPE, accounts payable, and other authorized disbursements through the issue of MDS
(modified disb check), Authority to debit account (ADA)
b) Non-cash availment authority (NCAA)

– Authority issued by DBM to cover liquidation of their actual obligations incurred against
allotments for availment of proceeds/grants

c) Cash disbursement ceiling (CDC)

– Authority issues by the DBM to DFA and DOLE to utilize their income collected/retained by their
foreign service posts to cover their operating requirements, but not to exceed the released allotmen to
the said post.

d) Notice of transfer of allocation (NTA)

– Issued by central office to its regional and operating units to pay their operating expenses, purch
of supplies, etc though issue of MDS check, ADA, etc

67. Explain briefly the tax remittance advice

The NCA released to the govt agency is reduced by the amount of estimated taxes expected to be
remitted by the agency thorugh tax remittance advice

– Personnel services – 8%

– Maintenance and other opex – 5%

– Capital outlay – 5%

68. What are the two documents/reports which are required by the department of budget and
management to be submitted on a regular basis? Explain briefly.

a) Budget execution documents (BED)

– Submit to DBM not later than nov 30, 2014

– Contain agencies plans, targets, and schedules for a financial year

b) Budget and financial accountability reports (BFARs)

– Contain information on agencies actual accomplishments an performance for a given period

– Effectively report, monitor or evaluate performance vs plans and targets

69-98 multiple choice chapter 4

69. b


72. a


























99-106 questions

99. Enumerate the fundamental principles for the disbursement of public funds

a. No money shall be paid out of any public treasury or depositary except in pursuance of an
appropriation law or other specific statutory authority

b. Govt funds or property shall be spent or used solely for public purposes

c. Trust funds shall be available and may be spend only for the specific purpose for which trust was

d. Fiscal responsibility shall be shared by all those exercising authority

e. Disb/disposition of govt funds/property shall invariable bear the approval of proper officials

f. Claims against govt funds shall be supported w complete document

g. All laws and regulations applicable to financial transactions shall be faithfully adhered to

h. Gaap, and sound management and fiscal admin shall be observed

100. Identify the basic requirement and certification for disbursement of public funds

Availability of allotment certified by budget officer

101. Explain the use of notice of cash allocation

– Specifies the max amount of withdrawal that an entity can make from a govt bank for the period

– Pay opex, other payable thru mds/ ada/etc

– Total mds/ada issued shall not exceed total NCA received

102. Explain the use of notice of transfer allocation

– Maximize the available NTAs of the agency, the common funds system shall be adopted
whereby cash allocation balances of agencies under the regular MDS account may be used to cover
payment of current years accounts payable.

103. Enumerate and discuss the two types of checks being issues by the govt agencies

a. Modified disb check - issued by govt chargable against the account of treasurer of the

b. Commercial check - issued by NGAs , chargable against the agency checking account with govt
servicing banks

104. List down the COA rules and regulations and other issuances governing the grant and liquidation
of assets

105. Discuss what a tax remittance advice is

Document which agencies issue/file with the BIR to report and record remittances (constructive
payment) of all taxes withheld from transactions. This serves as basis for BIR and BTr to record as
income, the tax collection and deposit in their books of accounts.

106. Define and discuss what a cash disbursement ceiling is.

An authority issued by the DBM to departments with overseas operations e.g., DFA and DOLE to utilize
their income collected/retained by their foreign service posts (FSPs) to cover its operating requirements
but not to exceed the released allotment to the said post.

107-126 multiple choice

107. b