DIAZ, HAIDIE R.

October 17, 2020

BSA 3-1 Assessment #1

1. Define government accounting under the New Government Accounting System.

 It encompasses the process of analyzing, recording, classifying, summarizing and

communicating all transactions involving the receipt and disposition of
government fund and property and interpreting the results thereof. Government
Accounting under New Government Accounting System produce information
concerning past operations and present conditions, it also provide a basis for
guidance for future operations, it provides control of the acts of public bodies
and offices in the receipt, disposition and utilization of funds and property, and
government accounting reports on the financial position and the results of
operations of all government agencies for the information and guidance of all
persons concerned.

2. Discuss briefly the ultimate objective of the Commission on Audit in shifting to the
New Government Accounting System.
 The shift to NGAs was made in response to the following need to Adopt the
accounting system that is in conformity with the International Accounting
Standards, Computerization of the accounting systems to generate reports that
will be easy to understand by the general public, Preparation of regular and
routinary financial reports and the use of the generated financial reports as tools
of management in decision making.

3. Discuss the accounting responsibility of the following:

a. Commission on Audit
 Keeps the general accounts of the government, promulgates accounting rules
and regulations, and submits to the president and congress, within the time fixed
by law, an annual report of government, its subdivisions, agencies and
instrumentalities, including government-owned or controlled corporations.

b. Department of Budget and Management

 It is responsible for the formulation and implementation of the National Budget
with the goal of attaining our national socio-economic plans and objectives. The
Department shall be responsible for the efficient and sound utilization of
government funds and revenues to effectively achieve the country’s
development objectives. It is also tasked to control and monitor appropriations
and allotments through the registries it shall maintain as well as the validation
 and assignment of new codes for funding source organization, subject codes for
expenditure items

c. Bureau of Treasury
 To receive and keep national funds, manage and control the disbursements
thereof, and maintain accounts of financial transactions of all national
government offices, agencies and instrumentalities. Bureau of Treasury also shall
maintain the Registry of NCA and Replenishments (RENREP) for control and
monitoring of NCA released by the Department of Budget and Management. In
addition, it shall monitor bank transfers it makes in replenishing its MDS
accounts.

d. National Government Agencies

 The Agency shall journalize the Notice of Cash Allocation (NCA) it receives, which
in effect, identifies the share of agency in the income of national government.
Under the new accounting system, the government agencies will no longer
journalize its appropriations and allotments, instead, it shall maintain the
following four registries for the allotments it receives and for the obligations it
incurs: Registry of Allotments and Obligations- Personnel Services (RAOPS),
Registry of Allotments and Obligations- Maintenance and Other Operating
Expenses (RAOMO), Registry of Allotments and Obligations – Capital Outlay
(RAOCO) and Registry of Allotments and Obligations- Financial Expenses
(RAOFE).

4. What are the objectives of responsibility accounting under the New Government
Accounting System?
 Responsibility accounting aims to ensure that all costs and revenues are properly
charged/credited to the correct responsibility center so that deviations from the
budget can be readily attributed to managers accountable thereof. It also
provides a basis for making decisions for future operations, and it facilitates
review activities, monitoring the performance of each responsibility center and
evaluation of the effectiveness of agency’s operations.

5. Define the following:

a. Allotment
 Is the authorization issued by the Department of Budget and Management to an
agency thereby enabling the Agency to incur obligation up to a specified amount
that is within a legislative appropriation.
b. Obligation
 It refers to the commitment by a government agency arising from an act of a
duly authorized official, which binds the government to the immediate or
eventual payments of a sum of money.
c. Notice of Cash Allocation
 It is an authorization issued by the Department of Budget and Management to
government agencies to withdraw cash from the National Treasury through the
issuance of Modified Disbursement System (MDS) checks or other authorized
mode of disbursements.