Agriculture provides the basis of subsistence for the population through the production of funds and

raw materials. Our country and each one of us depended on the production filled by the farmers like
producing vegetables, fruits, and rice. Everybody depended on agriculture. While the role of the
government or the Department of Agriculture can assist farmers by offering an interest-free loan or
loan at the lowest rate while waiting for their time to harvest the products to be sold in the market or
directly to the government and to be exported to neighborhood countries.

According to the article, the Commission on Audit which is responsible for determining regulations on
accountancy and audit systems found that there is an alleged accounting deficiency in the financial
statements of the Department of Agriculture. Which the Department of Agriculture denied and was
willing to provide a consolidated response towards COAs allegations.

After examining the financial statement of the Department of Agriculture, the COA reported that
there are irregularities in accounting and filing of records that violated the accounting principles of
government accounting proving the allegations of the Commission on Audit.

2. According to Encyclopedia, Government financial reporting is the process whereby governments

report their financial position activities to the public at large. Its role is to monitor and control the
nation's resources by allocating them to different activities or departments. While non-profit
organization aims to improve society in some way, bettering the communities they serve.

The following differences are:

1. Accounting Standards.

Both entities follow the accounting standard of GAAP, which is to ensure that financial information is
reported effectively and efficiently. In addition to GAAP, government and non-profits have additional
standards they used to follow which are different from each other.

• Government - GASB( Government Accounting Standard Board) is intended for taxpayers, public
officials, investors, and other users.

• Non-Profit organization - FASB( Financial Accounting Standards Board) is intended for investors and
others who use financial reports.

2. Statements.

Both organizations use three financial statements, a statement of activities, cash funds, and a
statement of balance sheet. In preparation of the balance sheet, it is referred to differently.
Government statements affect the taxpayers, where the funds came from and where did it go). Non-
Profit statements affected those who benefit from the non-profit like its members investors and
board of directors.
 3. Reporting.

•Government Accounting Reports

Every year, government organizations must put together a CAFR (Comprehensive Annual Financial
Report). The CAFR analyzes the financial status of the entity, and is put together using the GAAP and
GASB.

The CAFR can include overall financial data as well as information on specific funds and reports the
results of the period in question, often the financial year. The CAFR also includes consolidated financial
statements and includes accumulations from previous years. This also includes a comparison of the
period budget and the actual spend.

•Nonprofit Accounting Reports

Nonprofit organizations are not required to publish CAFRs. However, they are required to put together
financial reports for their Board of Directors and subsequent investors. These are called the Report of
Consolidated Financial Statements which will include:

Statement of Activities, Statement of Financial Position and Statement of Cash Flow