CHAPTER 1 o Failure to do so will not relieve the officer of
liability.
“Government accounting encompasses the processes of
analyzing, recording, classifying, summarizing and ACCOUNTING RESPONSIBILITY
communicating all transactions involving the receipt and
disposition of government funds and property, and A. Commission on Audit (COA)
interpreting the results thereof.” (State Audit Code of the Ph, P.D. no. Has the exclusive authority to promulgate accounting
1445, Sec 109) and auditing rules and regulations.
Keeps the general accounts of the government,
Objectives: supporting vouchers, and other documents.
(1) To produce information concerning past operations and Submits financial reports to the President and
present conditions; Congress.
(2) To provide a basis for guidance for future operations;
Chairperson: Gamaliel Asis Cordoba (2022-Present)
(3) To provide for control of the acts of public bodies and Former: Michael G. Aguinaldo (2015-2022)
officers in the receipt, disposition and utilization of Commissioner I: Roland Café Pondoc (2018-2025)
funds and property; and Commissioner II: Mario Gonzales Lipana (2022-2027)
(4) To report on the financial positions and the results of
operations of government agencies for the information
of all persons concerned. B. Department of Budget and Management (DBM)
Responsible for the formulation and implementation
of the national budget with the goal of attaining the
Gov’t accounting places greater emphasis on:
nation’s socio-economic objectives.
A. Sources and utilization of gov’t funds;
Secretary: Amenah F. Pangandaman
sources of the gov’t funds include receipts from
taxes and other fees, borrowings, and grants from
other governments and international bodies. C. Bureau of Treasury (BTr)
utilization of gov’t funds includes expenditures on Functions under the Department of Finance and is
programs, projects, anticipated losses from the cash custodian of the government. BTr is
calamities and the like. authorized to:
o Receive and keep national funds and manage and
B. Responsibility, accountability and liability of entities control the disbursements thereof; and
entrusted with government funds and properties. o Maintain accounts of financial transactions of all
1) Responsibility over Government Funds and Property national government offices, agencies and
Government resources shall be utilized efficiently instrumentalities.
and effectively in accordance with the law.
o The head of a government agency is directly
responsible in implementing this policy and is
primarily responsible for gov’t resources entrusted D. Government agencies
to his agency. Responsible in directly implementing the projects of,
o Those who are entrusted with the possession of and performing the functions delegated by the gov’t.
government resources are directly responsible to o Refers to any department, bureau or office of the
the head of the agency. national government, or any of its branches and
All those who are exercising authority over a instrumentalities, or any political subdivision, as
government agency shall share fiscal responsibility. well as any government owned or controlled
2) Accountability over Government Funds and Property corporation (GOCC), including its subsidiaries, or
A gov’t officer entrusted with the possession of gov’t other self-governing board or commission of the
resources is responsible for the safekeeping therefore government.
in accordance with the law. o Each agency (entity) shall maintain accounting
o Every accountable officer shall be properly books and budget registries which are reconciled
bonded. with the cash records of the BTr and the budget
Transfer of gov’t funds from one officer to another records of the COA and DBM.
shall, except as allowed by law, be made only Gov’t agencies are required by law to have
AFTER the authorization of the COA. accounting units/divisions/departments. (even a
o The transfer shall be properly documented in an barangay, a smallest administrative division)
invoice and receipt.
3) Liability over Government Funds and Property Financial Reporting System of the National Gov’t
Unlawful use of gov’t resources shall be the personal
liability of the employee found to be directly
responsible thereof.
Every accountable officer shall be liable for ALL
losses resulting from the unlawful use or negligence
in the safekeeping of government resources.
No accountable officer shall be relieved from liability
merely because he has acted under the direction of a
superior officer in unlawfully utilizing the
government resources entrusted to him.
o Unless before that act, he has notified the superior
officer, in writing, that the utilization is ILLEGAL.
o The superior officer shall be primarily liable while
the accountable officer who fails to serve the
required notice shall be secondarily liable.
An accountable officer shall immediately notify the
COA for any loss of gov’t funds from unforeseen
events (force majeure) within 30 days.
QUALITATIVE CHARACTERISTICS of FR – attributes
that make info useful to users.
a. Understandability – users are assumed to have:
reasonable knowledge of entity’s activities; and
willingness to study info
o info about complex matters is NOT excluded
simply because it may be too difficult for certain
users to understand.
b. Relevance – info is relevant if it can assist users
evaluating past, present, or future events (predictive
value) or in confirming or correcting past evaluations
(confirmatory/feedback value).
Info must also be timely.
c. Materiality – info is material if its omission or
misstatement could influence the decisions of users.
M depends on the nature or size of the item or error,
judged in the particular circumstances of its omission
or misstatement.
d. Timeliness – info loses its relevance if there is undue
delay in its reporting.
Entity – refers to a gov’t agency, department or e. Reliability – info is free from material error and bias,
operating/field unit. and can be depended on by users to represent faithfully
Financial Reporting – process of preparation, that which it purports to represent or could reasonably be
presentation and submission of general purpose FS expected to represent.
and other reports. The objective of FR is to provide
info about the entity that is useful to users for
accountability purposes and decision-making.
Government Accounting Manual for National Government
Agencies (2016) (former: New Government Accounting
System, 2002)
was promulgated (by the COA) primarily to
harmonize the gov’t accounting standards with
international accounting standards—International
Public Sector Accounting Standards (IPSAS) that
is based on the IFRS.
Ph Gov’t has adopted the IPSAS through the
Philippine Public Sector Accounting Standards
(PPSAS) where its provisions are incorporated in the
GAM for NGAs.
Provides the basic concepts to be used in:
o Preparing general purpose FS in accordance w/ the
PPSAS and other financial reports as may be
required by laws, rules and regulations; and
o Reporting of budget, revenue and expenditure in
accordance w/ laws, rules and regulations.
Objective: Aims to update the following:
o Standards, policies, guidelines and procedures in
accounting for gov’t funds and property;
o Coding structure and accounts; and
o Accounting books, registries, records, forms,
reports and FS.
Basic Accounting and Budget Reporting
Principles
1. PPSAS
2. Accrual basis of accounting
3. Budget basis for presentation of budget info in
FS
4. Revised Chart of Accounts prescribed by COA
5. Double entry bookkeeping
6. FS based on accounting and budgetary records
7. Fund cluster accounting – the books of accounts
are maintained by fund cluster that is according
to the types of funds being accounted for.
