Implementing the

GOVERNMENT ACCOUNTING MANUAL (GAM)

(For National Government Agencies)
The Accounting Personnel and Auditors Perspective

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Introduction

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Session Overview
Government Accounting Manual (GAM)-National in
relation to:
Adoption of policies and procedures in the implementation of
Philippine Public Sector Accounting Standards (PPSAS)
Harmonization of the Budget and Financial Accountability Reports
(BFARs)
Revision of the Chart of Accounts
Implementation of Unified Accounts Code Structure
Changes in accounting policies adopted resulting from PPSAS
implementation
GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Legal Basis
Article 1X-D, Section 2 par. (2), 1987 Philippine
Constitution

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Philippine Public Sector Accounting

Standards
Creation of the Public Sector Accounting Standards
Board (PSAcSB) and its Secretariat
COA Resolution No. 2008-012 dated Oct. 10, 2008
COA Office Order No. 2010-118 dated Feb. 19, 2010
COA Office Order No. 2013-622 dated Oct. 01, 2013

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Functions of the PSAcSB

Assist the COA Commission Proper in formulating and
implementing accounting standards for the public
sector.
Establish and maintain linkages with international
bodies, professional organizations and academe on
accounting related fields on financial management

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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CONTENTS OF THE GAM

Volume 1

Volume 2

Volume 3

22 Chapters, 19 Annexes,
Acronyms

92 Appendices

3 Chapters

Accounting Policies

Guidelines and Procedures

Accounting
Budget
Treasury

Books, Registries, Records,

Forms and Reports
Accounting
Budget
Treasury
Property/Supply Unit

List of Accounts
Description of Accounts

Instructions: How to
Accomplish
When/Where to Submit

Illustrative Accounting Entries

Sample Format of the FS
GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Objectives of the GAM

Updates on the following:
Policies, Guidelines, Standards and Procedures
Coding Structure and Accounts
Accounting Books, Registries, Records, Forms, Reports and
Financial Statements
Accounting Journal Entries

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Changes Adopted in the GAM

Particulars

NGAS

GAM

1. FS Title

1. Balance Sheet
2. Statement of Income
and Expenses
3. Statement of
Government Equity
4. Cash Flow Statement

1. Statement of Financial
Position
2. Statement of Financial
Performance
3. Statement of Changes in Net
Assets/Equity
4. Statement of Cash Flow

2. Components of FS

four

Six
In addition to the above:
5. Statement of Comparison of
Budget and Actual Amounts
6. Notes to Financial Statements

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Changes Adopted in the GAM

Particulars

NGAS

GAM

3. Chart of Accounts COA Circular 2004008

COA Circular 2013-002,

January 30, 2013
COA Circular 2014-003,
April 15, 2014

4.Unified Accounts
Code Structure
(UACS)
5. Books Maintained

None

Compliant

Regular Agency
Book and National
Government Book

Fund Cluster

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Changes Adopted in the GAM

Particulars

NGAS

6.Estimated Useful Life

Prescribed by COA

7. PPE Threshold

None

8. Inventory Costing

Moving Weighted
Average

GAM: The Accounting Personnel and Auditors Perspective

GAM
Management
prerogative
P15,000 and above
Moving Weighted
Average
Specific Identification

Session 1: Introduction

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Changes Adopted in the GAM

Particulars
9. Fund
Maintenance

NGAS
One Fund
Concept

GAM: The Accounting Personnel and Auditors Perspective

GAM
Fund Clustering
01 - Regular Agency Fund
02 - Foreign-Assisted Projects Fund
03 - Special Accounts-Locally
Funded/Domestic Grants Fund
04 - Special Account-Foreign
Assisted/Foreign Grants Fund
05 - Internally Generated
Funds/Retained Income Fund
06 - Business Related
Funds/Revolving Fund
07 - Trust Receipts
Session 1: Introduction

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Changes Adopted in the GAM

Particulars

NGAS

GAM

10.Cash Flow

Direct Method

Direct Method

11. Completed Public

Infrastructure

Derecognized

Recognized

Without distinction

With Distinction
Current and Non-current

Without distinction

With Distinction
Current and Non-current

12. Statement of
Financial Position
Assets

Liabilities

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Changes Adopted in the GAM

Particulars

NGAS

GAM

13. Statement of Financial Form part of Income

Performance
Subsidies, Transfers

Not part of Revenue

from Current Operation

14. Impairment loss

None

Recognized

15. Adjustment affecting

Government Equity

Uses Prior Years Adjustment Direct adjustment to

account
Equity

16. Income Collection

Without authority to use-BTr

With authority to use-NGAs

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

Recorded by NGAs

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Changes Adopted in the GAM

Particulars

NGAS

GAM

17. Accounting for Donation

with conditionality

Income

Liability

without conditionality

Income

Revenue

Revenue

with restriction
18. Monitoring of
Obligation/Payment

None

Section C of ORS

19. Residual value

10%

At least 5%

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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New Standards Adopted

Particulars

NGAS

GAM

1. Standards

none

PPSAS 13-Leases
PPSAS 32-Service Concession Arrangements: Grantor
PPSAS 28, 29 and 30-Financial Instruments
PPSAS 31-Intangible Assets

PPSAS 8-Interest in Joint Ventures

PPSAS 14- Events After the Reporting Date
PPSAS 3-Accounting Policies, Changes in Accounting
Estimates and Errors
PPSAS 19-Provisions, Contingent Liabilities,
Contingent Assets
PPSAS 16-Investment Property

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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New Standards Adopted

Particulars

NGAS
none

GAM
PPSAS 9 and 23-Revenue
PPSAS 12-Inventories
PPSAS 17-PPE
PPSAS 32-Agriculture activities
PPSAS 5-Borrowing Costs
PPSAS 4-Foreign Exchange
Transactions

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Budget and Financial Accountability

Reports(BFAR)(COA-DBM-DOF Joint Circular No.
2013-1, as amended by COA-DBM Joint Circular No.
2014-1 dated July 2, 2014
Quarterly Physical Report of Operation (QPRO)-BAR No. 1
Statement of Appropriations, Allotments, Obligations,
Disbursements and Balances (SAAODB)-FAR No. 1
Summary of Appropriations, Allotments, Obligations,
Disbursements and Balances by Object of
Expenditures(SAAODBOE)-FAR No.1-A

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Components of Budget and Financial Accountability

Reports(BFAR)(COA-DBM-DOF Joint Circular No. 2013-1, as
amended by COA-DBM Joint Circular No. 2014-1 dated July
2, 2014

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

Statement of Approved Budget, Utilizations, Disbursements
and Balances(SABUDB)-FAR No. 2(for Off-Budget Fund)
Summary of Approved Budget, Utilizations, Disbursements
and Balances by Object of Expenditures(SABUDBOE)-FAR
No. 2-A(for Off-Budget Fund)

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Components of Budget and Financial Accountability

Reports(BFAR)(COA-DBM-DOF Joint Circular No. 2013-1, as
amended by COA-DBM Joint Circular No. 2014-1 dated July
2, 2014

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

Monthly Report of Disbursements(MRD)-FAR No. 4
Quarterly Report of Revenue and Other Receipts(QRROR)-FAR
No. 5

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Changes Adopted in the GAM

(Budget)
Particulars
1. Maintenance of
Registries

2.Statement of
Comparison of Budget
and Actual Amounts
3. Registry of Revenue
and other Receipts

NGAS
RAOPS, RAOMO,
RAOCO, RAOFE

GAM
RAOD

RBU
None

RAPAL
RBUD
Additional component of
FS

None

New

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Responsibility Accounting - a system that measures

the plans (by budgets) and actions (by actual results)
of each responsibility center

Responsibility Center - a part, segment, unit or

function of a government agency, headed by a
manager, who is accountable for a specified set of
activities

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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Objectives of Responsibility Accounting

all costs and revenues properly charged/credited to the
correct responsibility center
provide basis for making decisions for future operations
facilitate review activities
monitor performance of each responsibility center
evaluate effectiveness of agencys operations

GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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GAM: The Accounting Personnel and Auditors Perspective

Session 1: Introduction

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