Assertions of Compliance with Accountability Requirements

When public officers and employees submit to the Commission their transactions,
accounts, financial reports and statements and other performance and operation reports, they
are asserting or claiming that they have complied with the foregoing accountability
requirements.

What is Assertions?

Assertion is the expressed or implied representation by management that is reflected in

their transactions, accounts, financial statements, records, reports and that they are claiming
that they have complied with the accountability requirements of the state policy.

Assertions on Compliance with Laws and Rules

When expenditures, disbursements, receipts and collections are reported to the

appropriate authorities, management is making claim that so much amount has been disbursed
or so much amount have been collected in payment of goods and services received or rendered
in accordance with laws, rules, applicable policies and practices.

Assertion on Resources Duly Safeguarded

When the agencies issue their financial reports and statements they are asserting the
following:
1. Existence or Occurrence - This deals with whether assets or liabilities of the audited
agency actually exist at a given date, and whether recorded transactions have occurred
during the given period.

2. Completeness This deals with whether all transactions and accounts that should be
presented in the financial statements are included.

3. Rights and Obligations - This deals with whether assets are actually owned by the
agency and liabilities are the obligation of the agency at a given date.

4. Valuation or Allocation - This deals with whether or not the asset, liability, revenue and
expenses components have been included in the financial statements at appropriate
amounts.
5. Presentation and Disclosure This deal on whether particular components of the
financial statements are properly classified, described and disclosed.

Assertions on Achievement of Goals and Objectives (Performance or Value for Money

Accountability)

When the agencies prepare and submit to proper authorities their reports on the
performance of an activity or a project, the agency is asserting that they used and managed the
resources for that activity or project in an economical, efficient and effective manner.

Performance of government entities is measured from the point of view of economy, efficiency
and effectiveness.
Economy refers to the reasonableness of cost incurred. Measuring economy will determine
whether the agency has been performing at the least possible cost or under the terms most
advantageous to the government.