ACCOUNTING MATTERS

1. What information is shown in the financial statements of your organization? Who uses
this information?

The financial statements of the organization show the following information:

a. Balance Sheet – It shows information concerning past operations and present

condition of the agency. This will be the basis for evaluating the performance of
an agency from one period to the next. The results of the evaluation may guide the
management on what course of action to follow in the future operation or the fund
needed for the projects/activities.

b. Income Statement – It shows information concerning financial position and

results of operations of the agency. This will show whether or not the agency is
achieving the objectives that have set in relation to the budgeted plans.

c. Statement of Cash Flow – is a statement summarizing all the cash activities of an

agency. This includes the operating, investing and financing activities of the
entity and provides information on the cash receipts and cash payments during the
period. The primary purpose of the Statement of Cash Flows is to give relevant
information of the agency’s overall cash position, liquidity ad solvency.

Users of the F/S

a. Management

b. DND

c. COA

d. DBM

e. Public

2. What is the table of organization of the accounting unit in your organization and show the
functions of each of the significant positions in the unit. ( Organizational Structure.ppt)

3. What are the advantages of the New Government Accounting System (NGAS) over the
old accounting system? (New Government Accounting System)
CPT GARY C ALEJANO PN(M) MPM – PM 230 (TMA 3)

4. What are the processes involved in recording the transactions in your organization?
( Organizational Structure.ppt)- Flowcharts)

5. What are the common problems encountered in each of these processes?

Minor clerical errors such as misposting, misclassification of account codes

6. Who reviews the work of the accounting unit and what measures are used to assess their
work?

The following offices review the work of the accounting office:

a. Internal Review/Audit – OTIA (Office of the Internal Auditor)

b. External Review/Audit – COA – GHQ

Measures used to assess the work;

a. Post Audit

b. Inspection

c. Cash Examination

d. Confirmation

e. Analysis of Accounts

f. Evaluation of Internal Control

g. Trend Analysis

h. Performance Audit – Value for Money Audit (VMA)

7. What areas should be enhanced in the accounting unit to further improve the performance
of their functions?

Enhance internal control policies for check and balance purposes.

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