Understanding Government Accounting Updates and Developments

From NGAS to GAM: Encapsulating the Go
vernment Accounting Updates and Other D

evelopments in Public Fiscal Management
Christopher S. Lalangan
Objectives
Understand the budgetary processes in the Government.
Differentiate government accounting from other branches of accounting.
Identify and comprehend the basic concepts of recognition, valuation, a

nd presentation of financial transactions peculiar to government agencies
.
Appreciate the importance of the complete set of financial statements re

quired by COA for all government agencies.
christopherlalangan@gmail.com
Government Budget
The financial plan of a government for a given period, usually for a fiscal
year, which shows what its resources are, and how they will be generated
and used over the fiscal period.
The budget is the government's key instrument for promoting its socio-ec
onomic objectives.
The governement budget also refers to the income, expenditures and sou
rces of borrowings of the National Government that are used to achieve n
ational objectives, strategies and programs.
Budget Process
Budget Process
Budgeting Terms
a. Allotment is an authorization issued by the DBM to NGAs to incur ob
ligations for specified amounts contained in a legislative appropriation in t
he form of budget release documents. It is also referred to as Obligationa
l Authority.
b. Appropriations is the authorization made by a legislative body to all

ocate funds for purposes specified by the legislative or similar authority.
c. Approved Budget is the expenditure authority derived from appropri

ation laws, government ordinances, and other decisions related to the anti
cipated revenue or receipts for the budgetary period.
Budgeting Terms
d. Automatic Appropriations are the authorizations programmed annu
ally or for some other period prescribed by law, by virtue of outstanding le
gislation which does not require periodic action by Congress.
e. Budget Information the budgetary information consists of, among ot

hers, data on appropriations or the approved budget, allotments, obligatio
ns, revenues and other receipts, and disbursements.
f. Continuing Appropriations are the authorizations to support obligati

ons for a specific purpose or project, such as multi-year construction proje
cts which require the obligations even beyond the budget year.
Budgeting Terms
g. Disbursements are the actual amounts spent or paid out of the budg
eted amounts.
h. Final Budget is the original budget adjusted for all reserves, carry-ov
er amounts, transfers, allocations and other authorized legislative or simil
ar authority changes applicable to the budget period.
i. New General Appropriations are annual authorizations for incurring

obligations during a specified budget year, as listed in the GAA.
Budgeting Terms
j. Obligation is an act of a duly authorized official which binds the gover
nment to the immediate or eventual payment of a sum of money. Obligati
on maybe referred to as a commitment that encompasses possible future
liabilities based on current contractual agreement.
k. Original Budget is the initial approved budget for the budget period
usually the General Appropriations Act (GAA). The original budget may in
clude residual appropriated amounts automatically carried over from prior
years by law such as prior year commitments or possible future liabilities
based on a current contractual agreement.
Budgeting Terms
l. Revenues are increases in economic benefits or service potential duri
ng theaccounting period in the form of inflows or increases of assets or de
creases of liabilities that result in increases in net assets/equity, other tha
n those relating to contributions from owners.
m. Supplemental Appropriations are additional appropriations authori

zed by law to augment the original appropriations which proved to be insu
fficient for their intended purpose due to economic, political or social condi
tions supported by a Certification of Availability of Funds (CAF) from the B
Tr.
Monitoring of the Budget.
Registries of Revenue and Other Receipts
Registry of Appropriations and Allotments
Registries of Allotments, Obligations and Disbursements
Registries of Budget, Utilization and Disbursements
Define ACCOUNTING
Accounting is the LANGUAGE of BUSINESS.
Government Accounting
Encompasses the processes of analyzing, recording, classifying, summari
zing, and communicating all transactions involving the receipt and disposti
on of government funds and property, and interpreting the results thereof.
Section 109 of PD 1445
GOVERNMENT AGENCIES
1. National Government (ex. those under the Executive Branch)
2. Local Government Units or LGUs (ex. cities and municipalities)
3. State Universities and Colleges or SUCs (ex. UP, PUP, PLM)
4. Government-owned and Controlled Corporations or GOCCs (ex. LBP,

DBP)
RESPONSIBILITY ACCOUNTING
provides access to cost and revenue information under the supervision of
a manager having a direct responsibility for its performance. It is a system
that measures the plans (by budgets) and actions (by actual results) of ea
ch responsibility center.
Responsibility Center
is a part, segment, unit or function of a government agency, headed by a
manager, who is accountable for a specified set of activities. Except for so
me, which derive most of their income from collection of taxes and fees, N
GAs are basically cost centers which primary purpose is to render service
to the public at the lowest possible cost. Cost centers are established to p
rovide each government agencys accessibility to cost information and to f
acilitate cost monitoring at any given period.
Objectives of Responsibility Accounting
ensure that all costs and revenues are properly charged/credited to the co
rrect responsibility center so that deviations from the budget can be readil
y attributed to managers accountable therefor;
provide a basis for making decisions for future operations; and
facilitate review activities, monitoring the performance of each responsibili

ty center and evaluation of the effectiveness of agencys operations.
Accounting Standards Setting in the Government
Article IX D Section 2(2) of the 1987 Constitution

The Commission (COA) shall have exclusive authority, subject to the limit
ations in this Article, to define the scope of its audit and examination, esta
blish the techniques and methods required therefor, and promulgate acc
ounting and auditing rules and regulations, including those for the pre
vention and disallowance of irregular, unnecessary, excessive, extravaga
nt, or unconscionable expenditures or uses of government funds and prop
erties.
Government Accounting Manual (GAM)
COA Circular 2015-007 dated October 22, 2015.
The GAM contains the accounting policies in accordance with Philippine
Public Sector Accounting Standards (PPSAS) as well as the guideline
s and procedures to be adopted by the accountants, budget officers, cash
iers, accountable officers and other finance personnel in recording and re
porting government financial transactions. It will serve as guide in the pre
paration of financial statements and other reports and the accomplishmen
t and/or maintenance of various registries, records, and forms.
GAM Contents
Volume I - Accounting Policies, Guidelines, and Procedures and Illustrativ
e Accounting Entries
Volume II - Accounting Books, Registries, Records, Forms, and Reports
Volume III - The Revised Chart of Accounts
GAM Objectives
Update:
standards, policies, guidelines, and procedures in accounting for governm
ent funds and property
coding structure and accounts
accounting books, registries, records, forms, reports and financial statem

ents
Fundamental Principles for Revenue
a. Unless otherwise specifically provided by law, all revenues accruing t
o an entity by virtue of the provisions of existing law, orders and reg
ulations shall be deposited/remitted in the National Treasury (NT) or
in any duly authorized government depository, and shall accrue to the
General Fund (GF) of the NG. (Sec. 65(1), P.D. No. 1445)
b. Except as may otherwise be specifically provided by law or competent

authority, all moneys and property officially received by a public officer in
any capacity or upon any occasion must be accounted for as governmen
t funds and government property. (Sec. 42, Chapter 7, Title I(B), Book
V, E.O. No. 292)
c. Amounts received in trust and from business-type activities of governm

ent may be separately recorded and disbursed in accordance with such r
ules and regulations as may be determined by a Permanent Committee c
omposed of the Secretary of Finance as Chairman, and the Secretary of
Budget and Management and the Chairman, COA, as members. (Sec. 65
(2), P.D. No. 1445)
d. Receipts shall be recorded as revenue of Special, Fiduciary or Trust Fu

nds or Funds other than the GF, only when authorized by law as impleme
nted by rules and regulations issued by the Permanent Committee. (Sec.
66, P.D. No. 1445)
e. No payment of any nature shall be received by a collecting officer with

out immediately issuing an official receipt in acknowledgement thereo
f. The receipt may be in the form of postage, internal revenue or documen
tary stamps and the like, officially numbered receipts, subject to proper cu
stody, accountability, and audit. (Sec. 68(1), P.D. No. 1445)
f. Where mechanical devices (e.g. electronic official receipt) are used to a

cknowledge cash receipts, the COA may approve, upon request, exempti
on from the use of accountable forms. (Sec. 68 (2), P.D. No. 1445)
g. At no instance shall temporary receipts be issued to acknowledge th

e receipt of public funds. (Sec. 72, GAAM Volume I)
h. Pre-numbered ORs shall be issued in strict numerical sequence. A

ll copies of each receipt shall be exact copies or carbon reproduction in all
respects of the original. (Sec. 73, GAAM Volume I)
i. An officer charged with the collection of revenue or the receiving of mon

eys payable to the government shall accept payment for taxes, dues or ot
her indebtedness to the government in the form of checks issued in paym
ent of government obligations, upon proper endorsement and identificatio
n of the payee or endorsee. Checks drawn infavor of the government in p
ayment of any such indebtedness shall likewise be accepted by the officer
concerned.
At no instance should money in the hands of the CO be utilized for the pu

rpose of cashing private checks. (Sec. 67(1) and (3), P.D. No. 1445)
j. Under such rules and regulations as the COA and the Department of Fi
nance (DOF) may prescribe, the Treasurer of the Philippines and all AGD
B shall acknowledge receipt of all funds received by them, the acknowled
gement bearing the date of actual remittance or deposit and indicating fro
m whom and on what account it was received. (Sec. 70, P.D. No. 1445)
Fundamental Principles for Disbursement of Public Funds
a. No money shall be paid out of any public treasury or depository except

in pursuance of an appropriation law or other specific statutory authority.
b. Government funds or property shall be spent or used solely for public p

urposes.
c. Trust funds shall be available and may be spent only for the specific pu
rpose for which the trust was created or the funds received.
d. Fiscal responsibility shall, to the greatest extent, be shared by all those

exercising authority over the financial affairs, transactions, and operations
of the government agency.
e. Disbursement or disposition of government funds or property shall inva

riably bear the approval of the proper officials.
f. Claims against government funds shall be supported with complete doc

umentation.
g. All laws and regulations applicable to financial transactions shall be fait

hfully adhered to.
h. Generally accepted principles and practices of accounting as well as of

sound management and fiscal administration shall be observed, provided
that they do not contravene existing laws and regulations.
Basic Government Accounting and Budget Reporting Principles
a. generally accepted government accounting principles in accordance with the PPSAS and p
ertinent 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 acc
ordance with PPSAS 24;
d. Revised Chart of Accounts (RCA) prescribed by COA (Volume III);
e. double entry bookkeeping;
f. financial statements based on accounting and budgetary records; and
g. fund cluster accounting.
Fund Accounting
Objectives of General Purpose Financial Statements
The objectives of general purpose financial statements (GPFSs) are to pr

ovide information about the financial position, financial performance
, and cash flows of an entity that is useful to a wide range of users in
making and evaluating decisions about the allocation of resources. Sp
ecifically, the objectives of general purpose financial reporting in the publi
c sector are to provide information useful for decision-making, and to dem
onstrate the accountability of the entity for the resources entrusted to it.
Responsibility for Financial Statements
a. for individual entity/department FSs the head of the entity/department
central office (COf) or regional office (RO) or operating unit (OU) or his/he
r authorized representative jointly with the head of the finance/accounting
division/unit; and
b. for department/entity FSs as a single entity the head of the entity/dep

artment COf jointly with the head of the finance unit.
Components of General Purpose Financial Statements
a. Statement of Financial Position (Annex A);

b. Statement of Financial Performance (Annex B);
c. Statement of Changes in Net Assets/Equity (Annex C);
d. Statement of Cash Flows (Annex D);
e. Statement of Comparison of Budget and Actual Amounts (Annex E); an
d
f. Notes to the Financial Statements, comprising a summary of significant
accounting policies and other explanatory notes. (Annex F)
Books of Accounts and Registries
a. Journals
1. General Journal (Appendix 1)

2. Cash Receipts Journal (Appendix 2)
3. Cash Disbursements Journal (Appendix 3)
4. Check Disbursements Journal (Appendix 4)
b. Ledgers
1. General Ledgers (Appendix 5)

2. Subsidiary Ledgers (Appendix 6)
c. Registries
1. Registries of Revenue and Other Receipts (Appendices 7, 7A, 7B, 7C

and 7D)
2. Registry of Appropriations and Allotments (Appendix 8)
3. Registries of Allotments, Obligations and Disbursements (Appendices 9
A, 9B, 9C and 9D)
4. Registries of Budget, Utilization and Disbursements (Appendices 10A,
10B, 10C and 10D)
Components of Budget and Financial Accountability Reports
a. Quarterly Physical Report of Operation (QPRO) BAR No. 1
b. Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (S

AAODB) FAR No. 1
c. Summary of Appropriations, Allotments, Obligations, Disbursements and Balances by

Object of Expenditures (SAAODBOE) FAR No. 1-A
d. List of Allotments and Sub-Allotments (LASA) FAR No. 1-B
e. Statement of Approved Budget, Utilizations, Disbursements and Balances (SABUDB)

FAR No. 2 (for Off-Budget Fund)
Components of Budget and Financial Accountability Reports
f. Summary of Approved Budget, Utilizations, Disbursements and Balance

s by Object of Expenditures (SABUDBOE) FAR No. 2-A (for Off-Budget
Fund)
g. Aging of Due and Demandable Obligations (ADDO) FAR No. 3
h. Monthly Report of Disbursements (MRD) FAR No. 4
i. Quarterly Report of Revenue and Other Receipts (QRROR) FAR No.

5
Fair Presentation
The FSs shall present fairly the financial position, financial performance a
nd cash flows of an entity. Fair presentation requires the faithful represen
tation of the effects of transactions, other events, and conditions in accord
ance with the definitions and recognition criteria for assets, liabilities, reve
nue, and expenses set out in PPSAS. The application of PPSAS, with app
ropriate disclosures, if necessary, would result in fair presentation of the F
S.
Departure from PPSAS
In the event that Management strongly believes that compliance with the
requirement of PPSAS would result in misleading presentation that it woul
d contradict the objective of the FSs set forth in PPSAS, the entity may d
epart from that requirement if the relevant regulatory framework allo
ws, or otherwise does not prohibit, such a departure.
Going Concern
The FSs shall be prepared on a going concern basis unless there is an in
tention to discontinue the entity operation, or if there is no realistic alternat
ive but to do so.
Consistency of Presentation
The presentation and classification of items in the FSs shall be retained fr
om one period to the next unless laws, rules and regulations, and PPSAS
require a change in presentation.
Materiality and Aggregation
Each material class of similar items shall be presented separately in the
financial statements. Items of a dissimilar nature or function shall be pre
sented separately unless they are immaterial. If a line item is not materi
al, it is aggregated with other items either on the face of FSs or in the Not
es to the FSs. A specific disclosure requirement in a PPSAS need not be
satisfied if the information is not material.
Offsetting
Assets and liabilities, and revenue and expenses shall not be allowed to
offset unless required or permitted by a PPSAS except when offsetting re
flects the substance of the transaction or other event.
Comparative Information
Comparative information shall be disclosed with respect to the previous p
eriod for all amounts reported in the FSs. Comparative information shall
be included for narrative and descriptive information when it is relevant to
an understanding of the current periods FSs.
Statement of Financial Position
An entity shall present current and non-current assets, as well as current
and non-current liabilities, as separate classifications on the face of State
ment of Financial Position.
Statement of Financial Performance
The Statement of Financial Performance (SFPer) shall include line items t
hat present the revenue, expenses and net surplus or deficit for the peri
od.
Statement of Changes in Net Assets/Equity
a. Net Income or Deficit for the period;
b. Each item of revenue and expenses for the period that, as required by Sta
ndards, is recognized directly in net assets/equity, and the total of these item
s;
c. Total revenue and expenses for the period; and
d. For each component of net assets/equity separately disclosed, the effects

of changes in accounting policies and corrections of errors recognized in acc
ordance with PPSAS 3-Accounting Policies, Changes in Accounting Estimat
es and Errors.
Statement of Cash Flows
The Statement of Cash Flows (SCF) provides information to users of FSs
a basis to assess the ability of the entity to generate cash and cash equiv
alents and to determine the entitys utilization of funds. This also provides
information on how the entity generates income authorized to be used in t
heir operation and its utilization.
Statement of Comparison of Budget and Actual Amounts
A comparison of budget and actual amounts will enhance the transparenc

y of financial reporting in government. This shall be presented by govern
ment agencies as a separate additional financial statement referred in this
Manual as the Statement of Comparison of Budget and Actual Amounts
(SCBAA).
Notes to Financial Statements
The Notes to FSs contain information in addition to that presented in the
SFP, SFPer, SCNA/E, SCF and SCBAA. Notes provide narrative descript
ions or disaggregation of items disclosed in those FSs and information ab
out items that do not qualify for recognition in those statements.
Qualitative Characteristics of Financial Reporting
An entity shall present information including accounting policies in a mann

er that meets a number of qualitative characteristics such as understand
ability, relevance, materiality, reliability and comparability. These qu
alitative characteristics are the attributes that make the information provid
ed in the FSs useful to users.
Revenue Recognition
Revenue is the gross inflow of economic benefits or service potential d
uring the reporting period when those inflows result in an increase in net a
ssets/equity, other than increases relating to contributions from owners.
Revenue shall be measured at the fair value of the consideration receiv

ed or receivable. Any amount of trade discounts and volume rebates allo
wed by the entity shall be taken into account. (Par. 14-15, IPSAS 9)
Revenue Recognition
Impairment Losses and Allowance for Impairment Losses. When an

uncertainty arises about the collectibility of an amount already included in
revenue, the uncollectible amount, or the amount in respect of which reco
very has ceased to be probable, is recognized as an expense (impairmen
t losses), rather than as an adjustment of the amount of revenue originally
recognized.
Entities shall evaluate the collectibility of accounts receivable on an ongoi
ng basis based on historical bad debts, customer/recipient credit-worthine
ss, current economic trends and changes in payment activity. An allowan
ce is provided for known and estimated bad debts.
Recognition and Measurement of Gifts, Donations and Goods In-
kind
On initial recognition, gifts and donations including goods in-kind are mea
sured at their fair value as at the date of acquisition, which may be asce
rtained by reference to an active market, or by appraisal.
Grant with Condition. If conditions are attached to a grant, a liability is r

ecognized, which is reduced and revenue recognized as the conditions
are satisfied.
Disbursement Authority
1. Notice of Cash Allocation (NCA) authority issued by the DBM to central, re

gional and provincial offices and operating units to cover the cash requirements
of the agencies;
2. Non-Cash Availment Authority (NCAA) authority issued by the DBM to ag
encies to cover the liquidation of their actual obligations incurred against availabl
e allotments for availment of proceeds from loans/grants through suppliers credi
t/constructive cash;
3. Cash Disbursement Ceiling (CDC) authority issued by DBM to the Depart
ment of Foreign Affairs (DFA) and Department of Labor and Employment (DOLE)
to utilize their income collected/retained by their Foreign Service Posts (FSPs) to
cover their operating requirements, but not to exceed the released allotment to t
he said post; and
4. Notice of Transfer of Allocation authority issued by the Central Office to its
regional and operating units to cover the latters cash requirements.
Classification of Expenditures
a. Entity incurring the obligation;
b. Program, Activity and Project (PAP);
c. Object of expenditures, including personnel services (PS), maintenance and other operatin
g expenditures (MOOE), financial expenses (FE), and capital outlays (CO);
d. Region or locality of use;
e. Economic or functional classification of the expenditures;
f. Obligational authority and cash transactions arising from fund releases; and
g. Such other classifications as may be necessary for the budget process.
Modes of Disbursements
(a) checks (MDS or commercial checks),
(b) cash (out of cash advance granted to authorized Disbursing Officer),
(c) advice to debit the account,
(d) tax remittance advice,
(e) working Fund/CDC, and
(f) direct payment method.
Disbursements by Check
a. Modified Disbursement System Checks are checks issued by gov
ernment agencies chargeable against the account of the Treasurer of the
Philippines, which are maintained with different MDS-GSBs.
b. Commercial Checks are checks issued by NGAs chargeable agains

t the Agency Checking Account with GSBs. These shall be covered by in
come/receipts authorized to be deposited with AGDBs.
Illustrative Accounting Entries for Disbursements through LDDA
P-ADA
Illustrative Accounting Entries for Remittance of Taxes Withheld
through TRA
Illustrative Accounting Entries for Remittance of Taxes Withheld
through TRA
Inventories
Weighted average costing

Perpetual
a. At the lower of cost and net realizable value. However, where inventories are acqui
red through a non-exchange transaction, their costs shall be measured at their fair value
as at the date of acquisition; (Pars. 15-16, PPSAS 12)
b. At the lower of cost and current replacement cost where they are held for distributi
on at no charge or for a nominal charge, or for consumption in the production process of
goods to be distributed at no charge or for a nominal charge; or (Par. 17, PPSAS 12)
c. In accordance with PPSAS 27, inventories comprising agricultural produce that an ent
ity has harvested from its biological assets shall be measured on initial recognition at the
ir fair value less costs to sell at the point of harvest. (Par. 29, PPSAS 12)
Semi-expendable Property
Tangible items below the capitalization threshold of P15,000 shall be
accounted as semi-expendable property. The following policies apply as f
ollows:
a. Semi-expendable property which were recognized as PPE shall be recl

assified to the affected accounts.
b. These tangible items shall be recognized as expenses upon issue to th

e end-user.
Property, Plant and Equipment
Residual Value is the equivalent to at least five percent (5%) of the c
ost of an asset that the entity would currently obtain from disposal of the
asset, after deducting the estimated costs of disposal, if the asset were al
ready of the age and in the condition expected at the end of its useful life,
unless a more appropriate percentage is determined by an entity based o
n their operation.
A residual value equivalent to at least five percent (5%) of the cost shall
be adopted unless a more appropriate percentage is determined by the e
ntity based on its operation subject to the approval of COA. Generally, infr
astructure assets have no residual value. In case, the residual value of p
arts of the infrastructure assets can be determined, the policy of at least fi
ve percent (5%) of the cost of that part shall be applied.
Applying the Capitalization Threshold of P15,000
The capitalization threshold of P15,000 represents the minimum cost of

an individual asset recognized as a PPE on the Statement of Financial Po
sition.
a. Items with individual values below the threshold but which work togethe
r in the form of a group of network asset whose total value exceeds the t
hreshold shall be recognized as part of the primary PPE. (Example: com
puter network, PABX system, sewerage system).
Applying the Capitalization Threshold of P15,000
Expenditures incurred on purchasing, developing, and operating hardwar

e, like web servers, staging servers, production servers and internet conn
ections of a website is accounted for as PPE if the total value of the prima
ry asset (communications networks) and these items is within the threshol
d of P15,000 and above.
b. This threshold shall be applied on an individual asset or per item bas

is. Each item within the bulk acquisition with aggregate or total value of P
PE, such as library books, computer peripherals and small items of equip
ment, will need to meet the capitalization threshold to be recognized as P
PE.
Depreciation
The straight line method of depreciation shall be adopted unless anothe
r method is more appropriate for entity operation. That method is applied
consistently from period to period unless there is a change in the expecte
d pattern of consumption of those future economic benefits or service pot
ential.
Heritage Assets
Heritage assets are those assets which have historical, cultural and envir
onmental significance, and are intended to be preserved in trust for future
generations. Examples of heritage assets include historical buildings and
monuments, statues, museum and gallery collections, archeological sites,
national archives, ruins, conservation areas, nature reserves, and works o
f art.
Service Concession Arrangement
Service Concession Arrangement is a binding arrangement between
a grantor and an operator in which:
1. The operator uses the service concession asset to provide a public ser
vice on behalf of the grantor for a specified period of time; and
2. The operator is compensated for its services over the period of the serv
ice concession arrangement.
Concession Arrangements Provided under R.A. No. 7718
Build-operate-and-transfer (BOT)
Build-transfer-and-operate (BTO)
Contract-add-and-operate (CAO)
Develop-operate-and-transfer (DOT)
Rehabilitate-operate-and-transfer (ROT)
Financial Liability Model
A model where the grantor has an unconditional obligation to pay cash or
another financial asset to the operator for the construction, development,
acquisition, or upgrade of a service concession asset, the grantor shall ac
count for the liability recognized as a financial liability.
Financial Liability Model
Financial Statements
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From NGAS to GAM: Encapsulating the Go

vernment Accounting Updates and Other D

Differentiate government accounting from other branches of accounting.

Identify and comprehend the basic concepts of recognition, valuation, a

Appreciate the importance of the complete set of financial statements re

b. Appropriations is the authorization made by a legislative body to all

c. Approved Budget is the expenditure authority derived from appropri

e. Budget Information the budgetary information consists of, among ot

f. Continuing Appropriations are the authorizations to support obligati

i. New General Appropriations are annual authorizations for incurring

m. Supplemental Appropriations are additional appropriations authori

Accounting is the LANGUAGE of BUSINESS.

2. Local Government Units or LGUs (ex. cities and municipalities)

3. State Universities and Colleges or SUCs (ex. UP, PUP, PLM)

4. Government-owned and Controlled Corporations or GOCCs (ex. LBP,

provide a basis for making decisions for future operations; and

facilitate review activities, monitoring the performance of each responsibili

Article IX D Section 2(2) of the 1987 Constitution

Volume II - Accounting Books, Registries, Records, Forms, and Reports

Volume III - The Revised Chart of Accounts

coding structure and accounts

accounting books, registries, records, forms, reports and financial statem

b. Except as may otherwise be specifically provided by law or competent

c. Amounts received in trust and from business-type activities of governm

d. Receipts shall be recorded as revenue of Special, Fiduciary or Trust Fu

e. No payment of any nature shall be received by a collecting officer with

f. Where mechanical devices (e.g. electronic official receipt) are used to a

g. At no instance shall temporary receipts be issued to acknowledge th

h. Pre-numbered ORs shall be issued in strict numerical sequence. A

i. An officer charged with the collection of revenue or the receiving of mon

At no instance should money in the hands of the CO be utilized for the pu

a. No money shall be paid out of any public treasury or depository except

b. Government funds or property shall be spent or used solely for public p

d. Fiscal responsibility shall, to the greatest extent, be shared by all those

e. Disbursement or disposition of government funds or property shall inva

f. Claims against government funds shall be supported with complete doc

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

h. Generally accepted principles and practices of accounting as well as of

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

f. financial statements based on accounting and budgetary records; and

g. fund cluster accounting.

The objectives of general purpose financial statements (GPFSs) are to pr

b. for department/entity FSs as a single entity the head of the entity/dep

a. Statement of Financial Position (Annex A);

1. General Journal (Appendix 1)

1. General Ledgers (Appendix 5)

1. Registries of Revenue and Other Receipts (Appendices 7, 7A, 7B, 7C

a. Quarterly Physical Report of Operation (QPRO) BAR No. 1

b. Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (S

c. Summary of Appropriations, Allotments, Obligations, Disbursements and Balances by

d. List of Allotments and Sub-Allotments (LASA) FAR No. 1-B

e. Statement of Approved Budget, Utilizations, Disbursements and Balances (SABUDB)

f. Summary of Approved Budget, Utilizations, Disbursements and Balance

g. Aging of Due and Demandable Obligations (ADDO) FAR No. 3

h. Monthly Report of Disbursements (MRD) FAR No. 4

i. Quarterly Report of Revenue and Other Receipts (QRROR) FAR No.

c. Total revenue and expenses for the period; and

d. For each component of net assets/equity separately disclosed, the effects

A comparison of budget and actual amounts will enhance the transparenc

An entity shall present information including accounting policies in a mann

Revenue shall be measured at the fair value of the consideration receiv

Impairment Losses and Allowance for Impairment Losses. When an

Grant with Condition. If conditions are attached to a grant, a liability is r