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1st
accounting for government & non-profit SEMESTER
A.Y. 2023 –
organizations
Module 1: overview of government accounting 2024
Module objectives  Produce information concerning past
operations and present conditions
 Provide a basis for guidance for future
At the end of this module, the students are expected
operations.
to:
 Provide for control of the acts of public
bodies and officers in the receipt, disposition
 Identify the processes encompassed by
and utilization of funds and property; and
government accounting;
 Report on the financial position and the
 Determine the objectives of government
results of operations of government
accounting;
agencies for the information of all persons
 Distinguish the objects of expenditures,
concerned.
books of accounts, and registries of
government agencies; The objectives of government accounting underscore
 Enumerate the key elements of the UACS; the significance of accounting information in
 Discuss the purpose and relevance of measuring performance of past and present
UACS; operations which become a basis in planning for future
 Explain the coding structure of RCA; and operations. Keeping track of how government funds
 Point out differences in the chart of accounts and property are utilized is an effective way of
of government and commercial entities. monitoring compliance and safeguarding the coffers of
the government. Moreover, providing financial
Definition of government information to concerned stakeholders is an act of
transparency that is crucial in earning public trust.
accounting
Objects of expenditures, books of
Our government is like a very big corporation. Just like
a private entity, it has different departments, bureaus accounts, and registries
and agencies that carry out its day-to-day operations.
Our government raises revenues, mostly from taxes, Our government spends for a lot of things. The object
and also spends money for public services, of expenditures tells us the nature of expenses
employees’ salary and benefits, debt servicing, etc. It incurred and paid by the different government
buys assets and incurs liabilities as well. Thus, we can agencies.
say that accounting-wise, our government is in many
ways similar to a commercial entity. It has financial
transactions that involve revenues, expenses, assets,
and liabilities.

First, we look at government accounting’s definition as

embodied in the State Audit Code of the Philippines, P.
D. No. 1445, Sec. 109.

“Government accounting encompasses the processes

of analyzing, recording, classifying, summarizing,
and communicating all transactions involving
the receipt and disposition of government funds
and property, and interpreting the results thereof.”

As you can see, the first half of the definition generally

resembles the accounting process for commercial
entities. But notice the second part. It specifically
points out the receipt and disposition of government
funds and property. This makes the clear distinction. If
we read between the lines, since government funds
come from the public, entities entrusted with
government funds and property are expected to be
responsibly utilizing them in accordance with the legal
purpose they are expected to serve.

Objectives