GOVERNMENT ACCOUNTING & Accounting for Non-Profit Organizations BASED ON (GOVERNMENT ACCOUNTING MANUAL FOR NATIONAL ‘GOVERNMENT AGENCIES (GAM for NGA) and PHILIPPINE FINANCIAL REPORTING STANDARDS (PRS) @ Nation's Foremost CPA Review Inc (NCPAR) Fully Cetra ave Sesion eh oy 260 Pees Viole Rambo 917 W682 FEES, tosses cona ALL RIGHTS RESERVED 2018 No part of ths work covered by the Copytght hereon may be reproduced or ted ay form or by any eneans= flecronic or mecanical inung photocopying ~ witout the writen perms the auth. 1581 978.671.9020-18-6 ‘ay copy of this book nat bearing the erature ofthe author shall be considered PEW Paha BANDOLIN ENTERPRISE ubiaing ant Printing) sot m0, entacunr so, Tomas AGU CTY {CONTACT HOS. 17 27069, 53607, ‘Dear Reader, ls oe mse i a cameras a nae eee elas lies Ser lnc neat naomi ee raft i yaad pena leone eee eee cree erste ramen ath Se eres etree [opete neat cee coarseness Prete ata a be ene ET Sn eat ae See Sa eal [eer pees cies var ore ees ee a enes tion meee SSE aa |metirarert eee ateatanenes pease ee naaes ny wed oe had eee teeter ry ea ar Sees ee a a eee ratete e eai = cies oer aigetenss i leas ere are my ‘contact detals cmon. ard (on 4704362 ‘Good luce i your Ienming and best wishes 6 your Joumey through ie. ank you for making mea part ofDedications For my wife ~ Burka, my son ~ Devin Joshua Athena. My deepest gratitude goes to my parents ~ Agi td De. Remcos, and all my teachers in elementary, high fn college for inculeating in me the importance of educa ‘Special thanks to all the people at Bandalin Enterprise nt icing (My sincere thanks ako go #0 my dear fiend Me Ri ‘itanueva (a GOCC Aust Manager) fr sharing his valuable |nanswerng my queries during the writing ofthis book os well his experiences in the fl of government accounting. + Zeus vernon, Mill About the Author ‘The author is a @* Plaer in the October 2006 CPA beard cxominatons. He is a cofounder of, and a CPA reviewer a [aton’s Foremost CPA Review Ine (NCPAR),s teacher, and an entrepreneur. ‘TABLE OF CONTENTS uurren COvERVEW OF GOVERNOENT AccOUNTIG. (Court 0 CA Pros Fav Sbuhoces en t ‘ouorina some 2 ie comoren2 ect Atty ResposyAzouin curren “HE GOVERNMENT ACCOUNTING PROCES. Sonera ee oer concoct cocmcooner a Meee te i a rs i ee tan WAa courrens “Toner nave RA (OPO nk ating caer erotaces pune atisot Used ote ft Alcon NA Scania det Ga AO ‘nin ru Sal rig Rar sk ae Snes hiaey ‘ctegeres of Francia Assets enka benlone etn CTE eae Ironmen of ar ete era ent Rou Seanlin ornate oan ett “esol fd sess Rot am Pages comprar? WETORE rt Sa een carters AG REUETR nce ‘nua Pac ORHAN PU FNS. MA nnn aR OEP an Nestea [ue Reamtins & Cmca on Des ‘ernanonr Fama = ‘bursements trough Gehan ‘earn Sa — Se es worms ae oe ‘surements trough Caer Parchase Cad (PC) syte- erate ere = SS ee ee a oo Sao = ee via oathcourtenso PRoPETY, PANT AND EQUPMENT "Sse edn en ere Cons fares z ce: coworerst TANGLE ASSETS cence UAB on ‘ibesunt Meseremant nn ronson Conc NES OCONEE warren 3 SE ee noes = [pererlaomoBitons courting for nance by esas ‘eceanting fr Fane este Less create nn conrten¢ WANG STATEMENTS enrich 39? Go PANES ES ‘Sento Guat ME AEM nt ‘Saran oF a ams ea ‘Sata Covance of Bae hn hte Norra Fa SAME hens er the Regering at Changes in Acounting Pl nn ‘hanes in counting stint nnn ‘couscusrt mp Sui Fawn Shree ea Fao STAI nnn DuaunesovSinussonar eR (MEAS nen ourrens SCELANEOUS TOMS cee nnnnnennrnnn TE Sree enisou amano ono Recognition ard Maasaerent of ecgntn ard Mantareret of tity Fan bit Mod Grant of itt the Operator Mose Ding te Serengeti es Bvomn VeRURe ‘aay Cotati Opel ‘ent ConaidAS ein Contosx | Tel Meyaretencrneoeeme none BB peinial eeepc mae iMaceas acta eee am | ‘Tandsn of aril Satna 3 (caren S Sti nnn se cunprens ‘ NOI: PROF ORGANZATIONS. ne cpnennnnnnnennn 89 Ce CIE nnn Cmctnnesr asc nh RANOATOR nen a Pigrmncegsamcnnt ON Iesacnarorsoh oom nen end eof seb (eather "Cash ad other NOFA AS en Uecontoal promis (ender rma nnn Wars ofa and sir tome Deen metho aging citar Statement of Snarcil postion vce mnne ua vanum Sinema of athe neve ‘eon neon ean ees erNPOS | Neh oe OAR nem rete on pot, Coleesond Uris. Netanya ane Wie ganatons. Dbernangroktonsstans eeaonnerenonen sea ABOe user cares —RASEDON FSS... a urate en Sarton ae RS ous GAAP PESChapter 4 Overview of Government Accounting Tearing Obetives Te ttc givens dxouning fom he scating for teres eno | Suu he eoremmen ouiles chiged wth soourng coy Cro ry he GAM fo NAR Sewanee ud goverment cing iiroduation “Goverment accounting encompaives the “procenes of analysing, recording casslying, summarizing and ommunicaing. all transactions involving, the receipt and Sispsition of government funds and propery, and interpreting terest then” ne Ach Clef Bin PD. Ne AS 1) "he jectives of goverment acowntng 9) To pro | © Tocaépog) on the finndal poston and the teste of operations of goverment agencies forthe information ofall | persons concerned | abet se nny2 Coupe ie acting rb ees gree ecg spss cg iri St exh SOE sine Gomme 28g Here, semper empha ling : ee atin greet ds SASS sect er aay of eter one Tr gerne fran pop 1 The snes of goverment fands include recep fom ones nd olher fx borrowings ard grants fom other sgoenment nd internatonal bodies, > The tilcton of povernment finds incodes expenditures on progam, projets, unuticpeted loses from calamities and thelbe eponiiy, Acounailty and Usbilty over Government Fan and Property Respsiityoer Coenen ands and Properly 1 Goverment resurces shall be utzed efctly_and_ stein asrdance with ie aw. Te had ofegoernent ence response vo are ented with the possession of ferment rece are dirty sspertble 0 the head of Theageny. 2 All those wo ae exercising authority over @ government pane al dae el rporiy sur ef Papen PRES) Aoi cer Coen ands en Property 1A gowemment er entroed wh the posession of ovement meoutes is response fo the safekeeping gesinfmmmesiomig therefor in acordance with the law. Every accountable officer shallbeproperlyborded 02 x iE 8)» 2 Tail oi fom oe carte SESH sled To, be moe oy alee sonata HC CDA Tiesto ommend along sap es eb an ne Saree phesta see ck gectaarel agit a Eos ablitot the employse fens sisal itl Yo be dicey sport theefor, 24( Every sezountable FS shall beable foal ses esuing from the unawfal use or negligence in the sakeping of ovement resources 3. No acoutable ofc shal e revel fom Hable merely becuse he has acted under the direction ofa sopra sn slawhllyulzing the goversmant resources rset him les efore tha et eh noid the supe: ler in rt, thatthe wlan is ileal The super officer shal be prima able whl the asnantabe fer who fas toserve the requis retical be secondary Hable 4 An accountable offer sal ied nat the COA for ‘any los of gavernment fr fom unforeseen eves (eee aes) within 5 days Fie to 6 so wil nt elleve the ‘cer fait Mal a Sal Goverment ours ut tal filed ct in accordonce with the law. Goverment ofcils are responsible in| inpmerng tie pag, esl fo te goer {suns inter uty. and rte a ne.Gmper peg Re Mee Seve “ie tnsing eros eee ce sarees | rm geo a cat eccentric oon area ae oat | Sr teenie ete ones ors ‘Ths maby Bese overt workers reine penty rere espn county a the more MEY I Spe. fhe mse tvs te Foverament elec A portion of he money we [pend on anos everyeang (ood. cotirg, ih. enterainmes, Referees se) repre pymen for ti. Tes ar he in {bur of povernrent and! developing eur county. ering trond eit great sciies, rot only forthe ‘owns wor bu eo fr friy amber lel at home, eae Sten and elective uation of eur goverment resoures 0 tha | Seedy our comtymen cn have beter option: of fig + | Trctnood in ou cut | scouring 3 tal for planing ad conte, ort to the eheverert of ths gal by prong nfrmaton hat etl | oo he ror ond user of gowemment fds an compare | Sua rents tn expec resi foomote the efent and | ec stlzaon of goverment fr. Accounting reponiity “he folowing oles are cared wth enero ste, responsi: ‘Commission on Audit (COA) Deparment of Badge! and Management (DBM) © urea of Teer (To) 4. Goversmen agencies commision on Aust (COA) TheComsmision on Ava (COAY 2 Has the exdsve autho to ORRERe- Ranma! | | mri Care etn 5 Keeps the geneml acounts of the government, supporting vouchers, ad ater documenis. e_Submits anciaryor' othe President and Congres Department of Budget and Management (BEND? ‘Toe Department of Budget and Management (OB) responsible foci with the polo staining the nation pureu of Treaury (6) a ‘The Buren of Tres TBTH factions under the Departmet of Finance and isthe cash easton ofthe government. The BTe it thorized 0: manage and contol he and of ancal transactions of all national ® ee one ra CCovernmentAgendes CGovenmnet ag brurea or office of ‘he national government, or any ofS branches and Instrumentals, or any politcal subdivision, ap well «8 any goverment owned or controled corporation (GOCC), inching is subsidiaries, or ether sel-govering bose or commision of "he government 20.14 Sort oie ee Each agency (entity) shall maintain accounting books and "budget registries which are recone withthe eas ecedsf the [Brand th badge ecords ofthe CON and DBM. . rent agencies are roped by lw fo axe ccunting mists dpartments en bangy (he asm dvi be Papi) med ‘Sitemap nceg etemege/ orp”See ee (SetceeemuaeesmaneraseeeetreerC Finandal Reporting Sytem ofthe National Government a + en = leap ae l ssa a waa cr Js Sas —- Eyes | Jacoaing esa ede eps = a ; Same , T and ee - tangy ‘Sime - cl Sonne at ms, 4 = =r go > Evily ~ sefers to a goverment agency, department of operating cit. % > Fil Reporting is the process of preparation presentation and submiewon of general purpose francal rates and ‘other reports. The objective of financial eprtig iso provise information about the entity that i weil > users fer sccoufability purposes and decision-making open cmennethcrmtng “The GAM for NGAS [An “ald” goverment accountng sytem had been used fr about five decades before war replaced by the New Goverment “Acountng System (NCAS) in 2012 However on January 1201, the NCAS was placed by the Gonsmment Accounting Manual {forNational Goverment Agencis (GAM for NGA Te GAM for NAc wat prmlpied prinaty aranah the povemnest acting anata eral scng Sands prtly te Interatonl ‘Si Slr Acmtng Sonos PSA. Tow ISAS se een eon nea Rong Sanat RS. ‘The Philippine Govemment has adopled the IPSAS trough the Philippine Public Sector Accounting Standards (PPEAS) The provisions of the FPSAS ae incorperted In the GAM orNGAS. i ‘Since the PPSAS ae based on the IPSAS, which arin arn ese onthe FRSWPFRS, most ofthe concepts at we wl be Jeamingin thie Book woul be very falar yo ¥. Lega bat ‘The GAM for NGAS promulgated by the Commision on Audit (COA) based on the authority contre oi by the Philippine Const: ‘Ravan’ proven of 2 Sthe Comanion fon Aust) ll have endive author, ‘abject ote ations nts ict ie the ope fs ‘ide and‘evemnaton, ensbih the techs ard meted rece theron pam arcu a auc et ticrnvons ncuang those for te prevention ond Staiowance of neplr,anneesary eet, xtrvapyt, fr unconconabie expends,” Ut of goverenen ands (eprops 0 3, Pb Cnner covert stsin or NGA provides te basic concepts tobe used in anneal pee ancl snes in acrdeny PER RE Beipyne Pele Sector Accounting Standeny (Prag onder fnarcal epors a8 may Be rou’ by trae ad egultorsané bs Repringot hie mead petri cordance wi tes and esti objective The GAM Sr NGAs sims o update he following: Seda polices, guidlines and procedures in acounting for government funds wd property, Coding strutare and counts and Aesouning books, mepsties, record, forms, wepors and ancl statements Bac Accounting and Budget reporting Princes “The finan records and reports of government ents shall comply with he along 1. Phippne Pubic Sacor Accunting Str (PPSAS) and | relevant aes, rules and regulations = 2 Acres of acoting: Under the aaa fis of scouring, transactions are rcognized when toy occur (and not oly when cash is recived er eid Therefore, ancl re ecageled inthe perdsto whch they lt, 2. Bu his ptf bgt maton in financial statements; ss oe 4. Resi hrf suns peste by COA; rene Geren Ang ° 15, Double oir bokering: 6 inancil statements basa on accumtng nd budgetary rods; and 1. under counting, “The books of account re msininined by fan later (ie, acording to the types of funds belng accounted fr) follows: Fund dston Regular Agency Fund Foreign Assisted Projets Fund Spedial Account Locally Funded Domestic Grant and Special Account Foreign Assied/Foreign Grants Fund Internally Generated Funds Busines Related Fonds Inst For oxample, separate accounting bocks (Joumale and Ledgers) and bualget repsries shall be maintained fr Repuler Agerey Find. Another separate accounting books and budget reps shal be maintained for Foreign Anil Projets Funds, and soon. Quatative Characteristics of Fnandal Reporting Information reported shall meet the qualitative characteristic. (ual cartes are the abuts that make information sa to users. 8 Understandabiity ~ infomation is understandable when users can reascrably be expected to comprehend is mesg. “Accordingly, users are aumed 10 have 1 ensonabe knowledge cf the entity's activites and 1 linge to study theinformation.Sy » Infomation sbout complex matter is not excudgy siply beause may be too dlc for certain users fy ndersand Releonce~Ifoonation is relevant if ca abit Users ig (lusting past. present o ute events or in confirming oy Screcing put evaluations, In order 10 be relevany Infomation must lobe ily. Matra ~ Masri alles the relevance of information, Infomation is mater ts omission or mistatement could inden the decslons of usr. Materlity'depends on the ture os of the tem or eo, judged in the particule ‘heunsanes lis omieson of mistatoment | Tinie ~ Information loses relevance if there is undue dein tsreporing. The compet fan en's operations {snota suet reson for sling report on a ely basis Retiilty~ te inormaton i fre rom material rr and bias ‘and an be dopended on by users to represent fabataly oa which st porports to repreent oF could reesorbly beepected to repesent Ink ie ne Ray po yin tay fe ey tale up ottnacin a ews tay oa Tasty, Coats opal as ‘rine iiaatarey gives tase preermerores teenies ‘vet bes tie ce eS ge reg ena al chee Fritit remsentaton ~ For iniormaion to. represent ‘at tansacions andar evens shouldbe presented ingcodance wit the substone ofthe transactions ond oer vet ar ol eee tea frm. Serotec secmning 1 Substance over form ~The substance of tansactons or other fevers if ot aheays consistent with their legal form. IE {niormation isto represen tathlly the trneactons and ‘ther events that it purports to represent ts necessary that they be accounted fo and presented in acordance with ther substance and economic wait, and not merely thee legal form. 1h. Newtrality ~ Infomation iy neural I 8 fee from bias Information skall not be selected or presented in & manner that is designed to Influence the tse’s decison in order t2 achieve a predetermined outcome. 1 Prudence ~is the exercise ofa degree of eaution when making esas under conditions of uncertainty, such that set or revenue are not overstate and abies or expenses oe et Undesated. However, prudence does rt allow the creation fof Ridden reserves of excessive provisions, the deliberats Cndersatement of sets or revenie, of the deliberate ‘overstatement of lables or expenses, becuse the fnancal atements would st be uta nd, therefore, not reliable |. Completeness ~ Information should be complete within the bounds of ateraty and cost. Comparability - Information i comparable when srs are ble to Henly similarities and diferenes berween tht Information and information ix eter reports, Comparcilty spplies to the competion of financial statements of diferent tents and comparison of he Financial statements ofthe same ty over different periods, Comparability equtestht users ‘must be informed of the entity's polices, changes to those policies and the effets of those changes and that nani Statements show corresponding Information for preceding Peviods SKS TEAM rnc Caper 0)a pe “components of General Purpose Finan Statements Carre Pinca! Slaten are tose intended to meet thy weeds of ses who ate notin 2 poston t9 demand report Tire to rmet thi particu nformation eds (SAS) “he complel set of geeral purpose financial statements consis 1 Stement of Francia Postion; 1 Satement of emai Performance, | © Satement of Change in Net Assy: | 4 Statement of Cash ows: {Senet of Compaen of Budget and Actual AMOUNS ard | {Notesto the Financial Statements, comprising # Summary of | Sa accunting polices and oer explanatory note, Nalce that the franc statements Ted above are sinsr to these of a bases ent. However, the financial | temen urigue to a goverment enity 16 the “Safement of | Corton of Bad! nd Act Anouns” (eer °¢). We wall | elaborate his ter | | ements ofthe financial statements assets Acts are resources core by an entity 35a rest of past | vets, and rom which fie economic Benefits serviee poke ae expected taf they. ‘They features ofan ant ane The beets mB contol the ent, 3. Theteneis mst hav aie om a er ard | Fue roms sft or serie penal must be expaced. | tof tote eny is e | > Cont meat abilty to Beet ram a ast or prevent ‘rom bereits ase veer of Gert Aang a Fossa owneip romaly evidences contol Hover hs not arye te For np, wer nace sn ter ens el wep ovr th led et tree starter thle > ews mean i rex ase) Ge EP mates Indicator of future economic benef fr cistngushable fom the source of the Benefit ie the parca physical resource or legal right |, Goes not imply tha anes necessarily generate cash Mow, the teres can lo bein the form of service potential; ce im determining, whether 8 resource or right needs to be ‘ouied for a8 an asst the potential 10 cantbute 10 the jective ofthe en shouldbe the prime consideration, |g. capa tcontbute to aciiibjectivesfpogeams and 1D the fact ht en asset cannot be sold does noe prelude it rom roading future economic bene. > fastsxent A tansaction or a) giving rise to contol of st ve RIT Ame inention to acqune ansets in the future doce not rut to the recon of anes inthe presen. Recognition of an Aset An asset igrecogniged where a thatthe future economic benefits wl ow to the entity the asst has cot or value (eg, flr value) that an be mare iby, Pre now of fue economic benefits: The chance of benefits axing Is more key rather tan less lay (eg grater than 5). bana can be expected o the bass of availabe evidence or ogi“ Rell esr eaten rth ire frm materi ro Fit rat oe sets 5 Fates owe han of dt ena, fae epee hose rarsactionand even. asus rans a preset olption of teeny arising rom pas ce th etdeme’ of whch is xpected result in an oon from i enity of raoirss embodying economic benefits or serie ott raury ‘Nolte res nterest inthe asses of heey fr acting ais Tas. REVENUE ecm ~ i he gro inflow of ecnomie bento save | peli he poring pari! when how slows esa in ov inrrse i et asset, other than inceases relating t ‘nite rom owns > Couiutos fm sos ~ ae fate eonomic Beefs tht hve ben conte teeny by eter pares which bo nt cel 0 Tibi of the entity and for which the onto obtains intrest in he et sets ofthe ety (a ‘eto didends and ight to net asses in cee of gusto Reem fins ~ compel fr rived fam the income of any agen of the goverment and avaible fr appropriation oF ‘pendrin accordance th a in 1 Ae a Disrbutons © ewnes ~ are future economic benefits itibated by the ent to is owners, either as tum on “vestments eta of investment.eee | Chapter Summary: “ide Fe Proving Infomation What 6 whl mal ee son remem accrting 0 aime Ser meme oe ety fee rca coransiot ‘The following ore charged with goverment Pretty! COA DAM, Wr ard oer goversnet TRETGAM fr NGds provides the princpes and procedures | Tepe inte recat epertngergverment ees weTfomapund ty tw Con penny 0 Somer et Siem awning sande wh erat Sines Be pcs: Conpane with FFAS sd herent to, rl bs et es, eve ht of aco Doe ety Fan fresco acuting md bony ran Fd cs acon + Gul imate Unies, Relves, Mwy, Tanne, Ry, Full epson Sinan ve frm, Netty Pode, Compaen sodomy + Rot rep eet if al ofthe flowing 1 fete eee etn of aac 2 prttelatiwtae eno sits and 3 Mate monroe font oro va |_— val 7 oes Geren Acting v7 PROBLEMS: ‘PROBLEM 1-1: TRUE OR FALSE 1, Compazed othe acountng fox business ents, government ‘ecourting. places greater emphasis on the sources and Stlization of government funds and. the management's Hewardship over govemment resources. TZU 2 Tee av tein sue of and ofthe goverment RUE 4 CEREUS of fonds ofthe goverment indude foe ororings, and gent. fom ther" governments and trematodes Ba 44 Curry, the financial reporting of goverment entities is basedon NGAS Featge 4 te inte of government ‘lies ane very unique that only 8 very few of thew Principles are similar fo those tht ae applied to busines centtes Flee 6 The prinpa in the CETTE REDS ar sintlar 10 he Princplesin the PFRSs. ype 2. The GAM for NGAs is promulgated bythe Pilipine Congress under the authorty ‘confered to i under the Philippe Conaition. Palle Ba ting ceguiement of goverment centes isthe ose of fund chister accounting. Under fund |) cluster accounting separte books and reports are prepared foreach typeof fund held by a government erty. Pat” ‘The GAM for NGAS is promulgated primary o harmonize ‘government accounting standards with the US.GAAP. Fg18 Spe 10, Anitem is recogni as an asset fit mets both he “prob forore economic benefis” ard “reliable mesuremery criteria regardless of whether the tem sa resource conto Sing tom pastevers. False, ‘PROBLEM 1-2 STIFLE CHOICE 1 Whichof he folowing sour saienge of gorerne, aking tat ent required nthe sxunting fr Bases, 2 The ws of daubleentry reording system. 1 Theuse ofsinge ety recording jem. The we of acon ans aoating. } The presentation of budge infomation in the Roane 2. What she legal sis ofhe COA in promulgating the CAD rns? PD. No 45 State Audit Code of the Philippines ‘The Philippine Consitton RA. 9255, The Philippine Accountancy At o@DOE 4. Philippine Pbk Seto Accounting Standards (PPSAS) 2. Which of he flowing suc in asing the gee _Scqunisof the goverment, sporting vouchers, and doce? )con NGAs DBM 4. Congress.) 4. Thereof Treasury, PTR] aarsangblefor 4 promulgating sccouting and. auditing rules and regulations 5 the formulation and implementation of the. nations! Songs wih the goal ot taining the man’ soc ecromibjectives » Fe receiving and keeping national funds and managing and ‘Controlling the ditursements there. “ddl implementing the projets ofthe government ‘4 According tothe GAM ir NGAs, tba of accounting to be applied by government entities isthe pcb base Modified sens basis Gpcruatoesis {Ay of hese as policy choice 6 & rust be utlized efficiently and Sopot ssc Sent nacre with he aw. Acoding 9 FP. No. Tits diet apne msemerting tis Pay? 2 All employes who are exnsted with the possesion of ovement sours © event fe government ageney. © The COA. & Alleeced ofa 4 The nse of sacenment funds from one oe to another gules the prior authorization of the ‘Commision on Audit, Head ofthe Agency The resident ofthe Republic ofthe Philipines 4. Bureau of Tressury 4 Mc A gortmment employe ented with he custo overament fund, wes insu by Me see ‘cs fds er the cpson af far as « SERIE or ‘ir Bs daughter who lb hving her 18 Dhyne vec To ree Me Arm any hai, wht shoul Me A Pr 1] estat pte he fan bat ter oly Me Bin teling ht inten eg Mea sal le the fnd a then oly Me, Bin |) sein that sins egal ‘Mes halle then but ais 2% commisionBee seme Misa eet fr bt esis M8 Poi, in wert that theca shal be retuned 10 the gover, alter his dughor bithdy. 9. Me. government employes entrusted with he custody FS ent funds as lon the government fands entrusted ty ina force mieure, What should Mr. C do t relieve hi, from bait? y Tr Csfould immediately nol the Head of Agency afer Saye 2 alse tt COR hn. a, ON CI etn) mye arn of Tena win ods We REET ap tee» cea wat fo fands toa °F 10 These refer tothe ltbutos tat make information usefl to 2 Usetunescharacristis ‘Quantiative characteristics (Qualitative caraceriss ) Fundamental pings 11, Infomation loes ths qualiaive characte if i isnot ona indy basis Relerance ‘Neutrality Relay 4 Materiity 12, Which ofthe flowing guliaive charactrsis does an ey most ely wool ned to make some tade-off? ‘Tull epresenatin and Substance ove form 1, Nery and Reevane Rlevanor art Rely 4 Understands nd Comparability “~ Y a: mm sdecmennidetl OnrinenfComemmen Acting 18 An entity secognies an est from the decline in ‘ae of Broperty- WHIGh ofthe allowing is mos key the _qualative chacatristic being applied by the entity? 2) Rliblty Fithfl representation '. Sabsonce ove form dence 1, Which of the following isnot one of the fund clusters of © govermententty? = Regular Agency Fund 1. Fotega Assisted Projects Fund ¢ Special Account-Locilly Funded/Domestic Grants Fund 4. Boriness Related Funds @ Petycash Ferd 15. To ace sproper blanc bern reeyace and ably, or the overs how user neods are best atisted relevance is always more important than reliability ralabliyisabvays more important than relevance. 4. grester weight shull be given to relevance compared 10 ‘eli, PROBLEM 13:FOR CLASSROOM DISCUSSION 1. Hew dos goverment accountng ifr fom the ecounting forbusinesentte? | Government accounting places ore emphasis on profit snaking 1. Goverment accountng very complex tht only highy intlactul individuals can understand i @ Goverment accounting. place greater emphasi on source and tzaon of funds in scrordance withthe law and management’ skewardship over govemment resus entrusted t they.“mm SS «cosas mami et na rr ce Which af the follwing i nat a Source of revenue for | goverame? Te rescaled by goverment agencies {Gras ane donation from other governments Consort! pre on government. contracts awarded ip 7 pvt companies Entity A (a govemmont agony) enrusted with governman, sours, Acording to PD. 145, whois directly espe for thee and efetive tization of these resources? 2 The goverment employees who have custody oe th ie Thetlead of Fntiy A. {© TheCOA df stationed in Entity A The Foot of Eat A ich of the following is not charged eth governmes, accounting responsiblity under the GAM for NAS? 2.c0A. fe NGAS 06M G Hows of Representatives The Department of Budget and Management (DBM) is responsible for 4 promulgating accounting and auditing rules and (c_ laions the formulation and implementation of the nati Toadget ith the goel of atining the nation’s co onomic objectives reeling and Keeping ator funds and managing 2 ‘onwoling the dsbarserenttheeol 4. cireay implementing the projects th governnent a 2 operon fein rn eninge rrr fhe jc he CAM Nast SC amere great sccning sandals with tatoos >. oop cot traci an acount > tne urn hota, pa, cy frm, ‘sonra rca sateen opie poe mening sandards 0 be Ses pons US CAA. 1. All of the following. ane requirements peculiar to 8 goverment ent. Which i not? Preventing budget inormation in the nancial statements Fund duster accounting. Incorporating budgetary controls in the inancial reporting ‘Accrual basis of accounting, @ere 4. hf te oovng uate ces improve hier rp ons ne bo? fides Une Q fay Sau 49, The best estimate fora loss is 100,00, Fiowever, the entity leiberately overstated the loss to P200000. Which of the following qualitative characteristic is violated? (0 Prudence cand S Retiabilty 4. Nothing is wolated 10, Which ofthe eliowing final statements is peculiar to a {government ety? 2 Balance Sheet 1 Statement of Cath Rows (©) Satenent of Comparison of Buget and Actual Amounts Statement of Changes in Equityin Chapter 2 The Budget Process | inne | earning Objectives 1 Enumerate steps the budget process. EBS eepmnplr open scm) | ‘The National Budget Government scouring is primarily tuditary arctng, Covert acunting das not nly am to provide informafon om pst events ane transactions bat albo budget iomatin i | nce wth eas "| Paige inahon tet Ine sot esac cad oldie ace asf ST Sky gyened by bdsm Covent ‘itng serene honed ih pong ‘Sling cern fae vem fide apbere! ap ; The ma na permet tegen ss es nd sa octet it fe yr homo te as ep and t testy intent promo ts merce ‘bites Pen The ormlion nd eve teat fhe ea buigtteunmaaed web Te Budget Cycle Thebes four phases, mame: 1 fag Prepon 2 Badge Legislation 5 Badge Berton ) 4 Badge Aecomtitty TebetPmens Bodget Preperation budget prepataton i the Philippines uses 2 “bottom-up” rhe Under “Iotonrap” udgating, several partes avian the budgot preparato, stating rome ls fo the His tas ofthe goverment, Gaverenet agencies ae a to increase the patipation of cizen stakeholders inthe ‘preparation. The opposte of “toviow-up” budgeting Is down budgeting ~ whersn the budget preparation starts the agency hes. "i201, the Philippine Goverment attompled toa start reton by siting from the old “incremental” sytem of to the “zro-ased budgeting” opprosch. ce Pipe nme rr ry 10 a Deore ugting ‘FThecurtent years budgets formulated without regard tothe previous year’s budget. Goverment agencies ae requied © Jus their current year’s Proposed programs and Tacrmenal badging ‘The current year’s budge 8 formulated based onthe previus years budget, Iehich is Just adjusted for ny variances experienced in the past. Presumably the proposed programs and Cxpenditures in the| espenditres, respective previous year are| of whether these renew of ‘utomatially approved in| carried over from the the curent yest revous yr, Usesa aber" approach, |> Uses a ackio-zao" or Prone to abuse “am te approoch. > Promotes efficent and cfiscve wliation of funds fi Budget call - The budget preparation stats when the ‘Department of Budget and Mangement (DBM) isaes 2 Budge Call to all government agencies. The budget callmy ring mega tings erent fa cee tae cep, andes. Ber cq nes lag DU POP eon tems wn Gaance badge ~ prepared in such a way tat estimate revemoes exceed estimated expedite. TE acy ‘Keen cre cul expences, the goverMEnt er, Nites I espendtures eceed | TEVEMUES, ty ovemmentincirs Bra! budget —coves period of one yea and forms thy ass for the anal apeoprtin- Special budget — provides for items ot odequately erred ont chad inthe general appropriations at «Line te bude oss on specie expenditures such | flares and wages travel expenses, eight, suppl, | ‘aera snd equpment «+ Porormance neta plan facies to be undertaken, Indating hr vlted css wth the emphasis on tnetng tog and deste ess. The main focus fen the work abe done or serves to be rendered, Obligation det ~faies om expercitares neured in the cre yer which ae be pld eer Inthe same ror inthe ling yee Bd hing - Budget earings ae conducted after the agencies stmt thr buds propos Each agency defends ‘gt props bere th DBM. The DBM dllberats on the tte propos makes recenmendations, and ees the der propa no eat re Prgrm NEP and Badger of Expires end See of Fang is he Hoa ee posed budget o the President, ae refute Ps a 14. Presentation tothe Office of the President ~ The Presiden and Cabinet members review the proposed budge. After the President approves the proposed budget the DBM finalizes ‘he budget documents tobe sbated to the Congress. At hi pit the proposed Budge! is referred to as the “President's Badge” The “President's Bulg!” consing the following documents which ar intended to asst the Congres in their ‘evil and deliberation ofthe proposed national Bdge: 1 Prelens Baie! Mesae ~ thie contains the Precident’s planation of the county’ fiscal policy and budget protien be. Naina Expenditure Program (NEP) ~ this contains the ‘details of all the government entities’ proposed ‘expenditures inthe coming Yes Badge of Expeitares and Sours of ircng (BES) this ‘conling the epimated expenditures accompanied by ‘timates of expected sources of irancing 4 ter documents aimed to provide further explanation of selected ems inthe NEP eg. detalls of Key programs nd projects staf summary). Ratvant potion a ow 3h President stall submit the propesed. budget tothe Congress within 30 days fom the opening of every guar secon, (Vi 22 Pine Cotter)‘Mustation: Excerpts from Presidents Budget Message Message Exc Palette Ro Dette 1109 Seeerth congue fhe Phas ‘nth atonal ag for Fc ee 2017 saga, 2018 Laos nd ertenon ct scones te Pins: rodeo oaset tis otc esa rnin enc nee | sooeeeeaaetoaioe ce Except 2 | ‘sir ‘acc Patan im i mot Septic a ta ances | nan etanemarana me tones Pee eternity SLs Ths torte geo ety ao Into st ov anda hal motes we anand fee me eaipes he Budget route We along neo eT etagttee sudget etion Cement funds dll ony be spent in puiuance of an prt made by lw. Teor dae process ust Be fale elie the proposed as «4. House Deliberations ~ Upon recip ofthe Presents Budget {he Hoase of Representatives condicts hearings to scrutinize the various agerces’ respective proposed programs. and frpendtares Thereafter, the Hove of Reprsenatives prepares the General Appropriations Bll (GAB! 4 Senate Delieations — The Senate conduas its own Geleratons on the GAB. These nonrally start after the ‘Senate reeves the GAB from the House of Representatives. lowever, for expediency, hearing nthe Senate start even a Representatives deliberations are ongoing 6 Bicemert! Deliberations ~ Aber deliberations in bth houses face frshed, 2 committee called the Sonne Coen ommit s formed to harmonize any conics between the Repreeniatives and Senate versions the GAB. “The harmonize GAB (Bic version) #subeted ‘back to both Houses for rafcton Aer racer the Sal {GAB s submited to the Present for enactment 7, Prslden’ enactment ~ The President enacts the bust, wiih is now known as the Gora Aypropriins At (GAA), Belore enactment though the President may enerse hs eto poner as conferred 10 hin under the Pippin Corian Tr poston of Fhe the proposed badge not ena before the fsa jours the lat years GAA se antomaticlly wate “Tet yours GAA shal b wed in the current yeu se eral appropriations bl panan bythe Cong, vb 3h Putney |“The Approved Budget Tyne Bulg is tbe expenditure authority derived cerroptaion laws, government ordinances, and other Serta the anpaed revence oF resp forthe budge Trio. The approved budget consists ofthe follwing: | Te tne Awe Cale Stace (UAC eerste tad cot Spc ed in fran eportng ofthe Nata Goverment | New General Appropeations Continuing Appropiations Supplemental Appropriations ‘Automatic Aperopnatons Unprogrammed Funds Retained tncomeFaneds Revolving Funds Tract Recepts 1 Appropriation i the authorization made by a legisative bd to allocate funds for purposes specifi by the lgiltive simular authocty 1. New Gera Aypripitions are anual authorizations te) Incring cline dring speed de et, al inmweka 2. Couimig Armpit are he aration wo eh cbigat rs pai pup or projec as mule tonsrran pots whith tte eure obligations even beyond the budget year. | Splonets Appropriations - are additional appropri! strc! by lw to og! te ral ppp ‘thc poved einen fer ended Pon fe canumic pal or sal entre opened | Certification of Availability of Funds from the BTr. i marr ee eB Pr eee «4 Atanuti Apreprition ~ ar the authorizations programmed rnvally or for ome other pri presibed by law which do ‘ot requle peridic ation by Congress. Lnpranmet Fads - are andy appropriations suhorzed Apress in the anual GAA which maybe avai nly hen any of te llowingntances Oru Three callectos chee he oii evnue ares in {he Badge of Expenditures and Sources of Francng {Besh sited he rest othe Congres ws Sew revenues ate Slt or ele om sures not gill conser in he BSE or «e newlyapproved fas for foregrassistd prj fe Tove o when conto are tigger oer ours SFrands sud sport oon apeees fr fe Sea pres. sei apt 838) 6 Reind ncoetens~ olectons whi are atborzed by low fo beamed discy by agence conemed forthe operon or spec purposes. (ple dp apse plnaSHESPONACLOSSARY pe) Rovoicing Funds — resis derived from businesseype activites of departmentlagencies which ae authorized by law tobe constated as such and deposited in an authorized government depository bank. These funds stall be self ligudating and all obligations and expenditures incured by vite of sid busineetype activity all be charged agunst thle fund need pepe HESEICLOSSAY pt) Tras Resp recep by any government agency acting 3k trustee, agent or administer forthe flflment of some biatins conditions tape em he ein Tt Fb heme dager hop SpccaponaneRMUGOSAIR Le> cineca a at cy be nal rene: Tl a A ere ote ot pcan aa ee rt ag my eink 2 be al pl et nal eerste near | ir ere Tee i pe tre Ot et ceed Somes eet Topoctve offices from savings in other tems of the | rein ws Ses me noe S| = | Spt 8 Res pes a EDS he DBM ss el ‘eran ison fds hehe vee pec soe he tg Enron Cre (EDM. KBD Sern cys fl er Pls ad prom teed be ang 2 "head aap 5. Mayen per © tsa ot ame 4 oro tot ytd an demande faving athe meen te dpe “nl ron As Nt “cee aged sit ove ia dea tbe ‘f.conmions cpa ‘fe Pippin Sol Sct Senne nt 2 2. Local Goveement Unit (LGUs include (2) autonomous regions, (®) provinces and cities independent from 2 province, (0) component cites (ties which ae part of a province) and municaities, nd (2) barangays. ‘3. Government Oued and Conrad Corporations GOCCS) — ‘corporations that are owned or conralled, dizetly oF Indirely, by the government and vested with functions relating to publienends. Tir pei ofthe Congas Gros and Congeaen) ond the EY Sree rece of porno th bade [ip ponton recaad by morn of the Corres red oat the ‘hort Devopent Astras Fare (PAF) nice. Pork Bare Thi Immense fe poy ewes poge of the gow 12. ‘The potion reeked by memes he Juss refed 0 the ‘ain Belopment Fn 00. At st 86 othe fn ended {crtne to tng alowanes Of he membes eh personnel te ‘Sat he mar ot ceding 30% forthe caution and | Imran of en enumerate PDO. 5) tn 204, the Acino Admirton irodicad the Diturenent jon Pagar (DAP ich mf Spacup abe specie. The DAP not a fond bata maemo rele ee party em [avant onpropamned inde agra octal poor or bls of Rem under the Ganga ‘eoropatne a(n ish rend on) the completion S a Stoninsnc or abncormont of prope, sc, oF Project 8) ond congestion fr wea old poston ard eres of ‘Sane wou poy. or] he mptneeaton of eflceney meee a bleu to lier sera ee On Bh Sug yer ‘ed to agent fina or props. ail cr prety We are Incude nt AA fe. nectar aot De und). > Crorepanines dive pou can. fon he POAF an he OA? race vars en om the pullin 2403 and 2014 oon th nee lege poe sean, The POAP ‘S94 OA was aro hough fob ber bed by the Sagreme Ct, However “The 2018 tpt a ed with om be! ands dpe te Sforone Court aeston Seung the Datura Acton Programee m ee formulates the Allotment Re 9, Allotment ~ The DBM f met Re ‘er ARP ot eit or alent els ig ‘upcoming yer Tis tothe national budget, Alongside is nhch sats the sbursement le | ch month eases conor Reda Progra (CRP the yer foreach uni ar fo > Altimnt ~ is an authorization sued By the DB | ovement gens #0 incur obligations 08 spec ans ected in 3 legiatve appropriation in eum of badge se document Is als referred i (Obligations Authority. Tris ile for 2 goverment entity 1 inc batons without having fst eeved the “Allen Merover, the type ard ariount of obligations to by There us cof 10 tose hat ae specie in hy “Aamo: 1 Obigeon~ an act of duly authorized official whi binds the goverment 19 the immediate or event payne fac money, Obligation maybe relene | ‘S'o cemmitmert that compass possible futin nls bse en carentcrractual agreement isused as a contol as ‘The folsing are the documents wed in. eens allan to governs ape 1. Gal Appin Act Rise Document (GAARD) serves ose obligatrl exhort forthe compres | reine of budgetary sem appropriated in the GAA, Categorized a5 For Comprabnsve les, 2 Spe Aliment Rees? Ont (SARO) ~ covers bud ‘tens unde For Lae Release neat lis) in the enti? ‘suit Budget Execston Docent (BEDs) sje stir aster oes ee ey spe mrenrte a ees ed ee Sees eepeateeeret e “contialable in lower management levels because of the decrease! ach goverment gency is assigned a seeps centr end a flows ge Pct # pe aT ono snae tae =i eS z=! Prepation, @ Budget Liat, (9) Budget Execution, Budget Accounabty Under “htop” budgeting, several partes papain the ‘get preparation, starting rom te loves highs ls ofthe govern Under “zeae” budgeting the current years budget is formalted without regard tthe previous year’s budget Goverment agencis ae required to justly their cent year’s propesed programs and expenditures iespective of ‘wbathr these ar new or eared over from the previous yea. Arprprtion isthe asthoiation made by aeisltve body to llc funds for purposes specie by the leiltive or sire athery, ‘Aliment ~ 8 an authoszaton iemed by the DBM to vemment agencies to incur oblgatons for specfiad amounts contain lepelatve appropriation in the for of badgat release! documents Ie als referred to as Obligation Authority, Ohgaton~isan at of duly atborse oficial which binds the government to the immedite or eventual payment of & sum ot oney Under reporsbity accounting a manager's performance is lute ony in terms of the cots that he creaee PROBLEMS: [PROBLEM 21: TRUEOR FALSE 1 , , Obligation suhory (6g: Note ef ach Allan NCA) Disbursement authority (eg. Naie of Cast Ales] NCA‘) 4. Disbursement authority (eg, Netix of Trams of Ales ‘NIAD 7. The ISB month autborization ar recived by En # fom Goo © con te 4. Congress 8 The half of the PSB monthly authorizations exe? Entity A (Central Ofc) to its lower operating en # refer io3s 1 CashDisbursement Cling 1 NonCash AvalinentAsthonty Notice f Cath Allecaton (ICA) etait ens @ Notice of Tansterof Allocation (NTA) 4. ln Entity AS fit quarter Silene’ of Appropriations ‘Aliens Obigetos, Dsunenent and Bones, bow much tsshown 2s “unteleased appropriation?” ast b.r68 GPR LMR 1o-In Entity A's fst quaner Sistem of Appmpritions, ‘Alotnens Obits, Disbursements and Bane, how much Isshown¢“unoblgated allotments?” a8 ee er) Tels Entity. AS fiat quar Sltomon! of Appropriations, ‘Alamen's Oiarin, Dishuremes nd Bales, ow mach ‘eahowns “unpsg obligations” apes 8 . Salary Laeger TieGonme fecowtng remy 3 eR gts of Keene and Oe Reps ROR) Regist of Appopisions and Alltmens (RAPAL) &: Registres of Allman, Osigatons and Disbursements (ea00) pices of Budget, Usain and Disbursements aa.) ‘echnaly only the ours and Ledgers are considered counting crs. These are similar to the accounting records of & ‘psn entity. The Regis are budge! ods. These ae used 10 ‘mono the bodget You may think of the royisties ke "gghoks” or omethirg rater han acountng books wih debit ret columns The sunting wit of the agency maintains {he Journals and Ledgers we the ude! dita of the agency manta e egisties Recall tat separte accounting records and budge pistes are mained for ech fondest, Regular AgERCY ind Foegn Asse Projects Fae et. se Chapt 1). Budge egies 1 Regs of Ree and Other Retipls(RROR) — used to monitor the budgeted. amounts, actual collections and remitanes of even and other scp. Regtry of Apporiatons and. Allens (RAPAL) ~ used to ‘monitor appropitions and alloment This o ensue that liters wll not exec! appropriations. egtresof Alten Obtiton aed Dbrsents(RAOD)— ‘sed to monte the allermens eave, ciation incurred ‘gait the conespondng. allotment, and the “actual dnburements made Thit # to engue tht obligations tncured wil not exceed allooments while asl AUsbursemens wil rot exced the ligasons incre.Serate RAOD hl be maid or he | (object of Expenditures cia The clasfiations of expenditures by object area flows Persons Series (PS) pertain to all YP of employ etfs eg sles bonuses allowances ch git, 1. Maintenance and Other Operating Expenses (M0085 | pertain to various operating expenses other than employ) bevfis and fiance experses, travel utiles, supa oe Financial Expenses (FE) pertain to rence cst eg ine ‘exper, bank charges et, Finandial expenses ls ind Tones on foreign exchange wansactons | 6 Capital Outlay (CO) ~ pertain to capitalizabe expendi UY egeospenditures onthe constuction of obi fnfesracuresacquistion costs of guipment. Accordingly, the folowing separate RAODs shal ‘maintain: (4) RAOD-S; (8) RAOD-MOOE,; (6) RADE tnd (@) RAOD-CO, A. Rois of Bue. Utiaton ond Disburements (RUD) - used to record the approved special beget and ty ferresponding wiastors and disbursements charged ‘etsined income, Separte RUD ae also maintained fre objet of expenditure ke, 2) RBUD-F5; (6) RBUD-MOOE: [RBUD-FE:and(@) RBUD-CO, pec ye s ofthe General Accounts [Te COA shall exp the general accounts ofthe Government and prnerv the vouchers and other suppocing documens. aie Recordings epropcation aut (a government agency) recivesits GAA consisting ofthe folowing: earl Service 9) 100.000 Naira and ter Operating Exprses(MOOH) 10 unl Expences FE) Capita Outs CO) amo Tal propio fr the caret yor 20 30000 “The rclp ofthe appropriation paste (recorded) inthe egy of Anrep nd Allon (RAPAL) as olows: To RAT HO LLONET nT rns a Enyce allotment from dhe DBM consisting of the ‘alwing: eon Services (5) seme nd Other Operting Expense (ODE) Banc Exper FE) (epi ty) Teale ‘0000 00fr ei Sr DecneninntdecningPrems tne met of the alte posted corde ing ain eevee Aliens RAPAL) nd eg | (TT TT RS TET I i aememninacn) ane eae naga sect aes ees ac} tat Inarene ot Cbton mal (Sbanion Regan aaa ORS) | Obligations shall be incurred through the issuance of Obtigatim apn St (OS). Te Requesting Oe shal repre | RAoDs Somer upped vad cm dosent te rsemet| So = wouches, puyol purchasejab oder itinerary of travel ete | jee The Head ‘of the Requesting Office shall cerfy the] lossy and legality of the obligatian and the vai of the| suppentng documents. Tho Head ofthe Budget Division shall erty the aby of he allotnene | Entity A ener inthe following contacts { Penomel Sorvices ~ Employment contacts (ab Onde) smcunting 0 F70.000, 1. Maimtnance and Other Operating Services - Purchase crt emp we, © Cepia Oulys ~ Purchase contract for office equipment vert Pi. a ‘The ORS i propre aslo:econ Aecotng Pre 8 Remeron Acontng Pesce oT a ORT | ‘Tosinpliy the tasration, oly ane ORS is present the ee contract Sepatate ORS. should be prepared foreach them ‘The “obligations” ave recorded in the Reis ‘Allotments, Olgas ad Osbursmens (RACH) allows ‘of Obigation Request and status Adjustment (NORSA) the obligations recorded inthe RAOD and ORS above need to bp ads, the subeaguitajustment shall be mae through the he of the Nate of Cbigtion Rept and Stars. Adjustnet (NORSA). The adustment shall be effected Uwough « postive cy dion ora negative eney(edaction) a8 appropriate 0 ths pont, nothings recorded yet in the accosntng books je recordings above are made on the budget reste, Journal ‘is shal be made ony ter: 4 th employee ave rendered services; 1) the fice supplies are delivered and veccved and © the ole egupmentis delivered and revived,ai apes (Onl ae these evens occur that the entity's inanca stotement elements ae affected, and this, an aeountabe even, Irsoccured tht neds tobe recogized. ie meting, “ego rede the resists (ut not yt nthe accounting books) are refered to 3g "Not Ye Due and Demande.” | ‘Noir that government enites and business entities wae eG Aung Pres a ‘teri used to monitor the NCA ace the following: a Ripsty of Allotments and Notice of Cash Alcon (RANCA) — sed to determine the amount of allotments not cover by [NCA and to monitor he avaliable balance oF NCA > Regitry of Alltment and Notice of Trier of Allston IRANTA)~ used to determine the amount of sllotnerts not ‘covered by Noe of Tren of Alesis (NTA) and t monitor the term “obligato” or he pee "Incurence of obligation: | theavalabe balance of NT. ‘ier ‘The NCA s posted (eon nthe RANCA aslo [Gosek tity Baines ntty F higitor=isanacofadaly [> OB sana eam for | _ [REOB'THO OF ALLOTMENTS ARG NOWGE OF CART ALLOCATION 17 ttre lhc | ay. eet | tens th goremment the ts acme: eee inode or eve a met of sm of many. Staion mabe ered 2 oe oe coeds oT cetaaae tet eo =| compas psi fe | aa ee |) ites beset on cuent = et | sonal agenen Dibunement Authority - Notice f Cash Allocation (NCA) nity A receives Notice of Cask Alton (NCA) from the DBM ‘mounting P2009, nt of te ‘This ime 3 eur ery shall be made in the accounting books because the financal statement elements ofthe entity a now affected, Le, incase i ish and increase in reverse, THE nity follow: BR | Cah Noid Dba Sy (MS, Regular 1 JOURNALS | Genera oural~ used to record transactions not recoded in the Special Joumals Speci journal Cac Rept jour ~ usd wo record the Repo of Callacton and Deposit and Cash Revpts Register of colectngofcers. > Report of Calton and Dypesit (RCD) ~ prepared by 2 collecting ofcer to report hse collections and deposits ton Authorid Government Depository Bank (AGDB).us) OA Ms Ch csp tie tea ope | s field of 1 Cast Restle Reiter (CRB) — 04 bY on, Seithout a comple st of Boks 1 fecard thelr eas, Collections and dps nt tons oftheir mother ung (cetrlegonallvson oc). ce Cast Dicrzonents fal = sed 10 record the cagh Aihursements fhe Disusing fice Ak Chock Ditsoents Jamal — ased to record the che Aishasementsof he Disbursing Of. nh, uspeens Gov Le = somes al warsicton recorded in he froma Accounts in the gene ledger are arranged clint he egae in e Reed Chart of Accounts, by Stir djs - stn des of exh canto account inthe ger edge ‘The NCA spits te msi act of welthdrawal ta amenity cn mak frm 3 gevenment bank forthe period inde. The Collecing Oc shal wt uss an ficial HEC forthe recip of NCA ite cpr, ee 8 Sn expt of the NCA dees rt crt «election that owdable in the Cash Rects fom ts recorded in th eral Journal flows See “The joumal entry forthe NCA is pasted tothe gener "edgar as flows: : | epee = Eee fecha = anes pyre have rendered tv ond ae ow eile 0 an Joural enies shall be made because the financial t clements of the entity are affected, Le, increase i pens and incense in Fblty decrease in cash, The recordings 2 lls Set up of payable to ofcers and employees upon approval of aye loves and Wages al eos Rais Allowance (PERA) os Compensation itholding Tax een) 5 20) ag 16 (2000) Meats vane) Dette 160 2500a [eal ae Se a at awe PE Get Gh Are pp | |e Dee ioG5 [Be [Advances tor Payeo al | Sore a a — | | Sein cee | BaSaedtane a ae | “rope opt os ot |_Nwomssareisans "7 * Thee ove ede oppo, ge pte Sein COS 4. singe dsb wth payment eof etn fC (fe OS dsunenens anal RADD a TES |] > me sean Cf te cms i tow ‘toning informationcues SHRMEP REGED opie cy | ea Meg ae acts Tae poi anes te of ae ccarro ye a cme te oR a Pam od a Liquidation of Payroll Fund a ghaeiedion Sour ‘emitance of Amounts held ry A tei the 500 wihteld othe other goverman| genie he besovn re provied bela ‘wing Ts om < cs 2440 PapiG 200 Til Deuces 150 Reine of Weg Tx “Tac Remitance Advice TRA) (the Ter Romine: Ado TRA sed ge | teks of eect ce once eta of ee wield to the Bre of nna Reve QR) ‘atoms des wield othe Buea of Costs (800) 24 the contuctive rept of NCA fer those nes and is utes In th bons of he BIR ond BOC he cotacve eng of reverse and uss duties nt Inte is of the BT te cnaracive eg ofthe tse 2 costs dts eit eine Acting Pr o ‘The renitance ofthe tax withheld is recoded as ollows: Books of tity A ‘aah Remit Advice Subsidy rom National Goverment Tomape ect eapetee Daeto BR (Csh-ToxRemitane Adsice | fees ithe oh OR hough TRA oom 1000 Ta 1000 [Note that heres acusly no physical ranser of ash to (he BIR (ie, debit and credit to ‘Cash TRA"), tha the tm “eons” The TRA is another form of disbursement authori, thas tis ecorded sly othe recep of he regular NCA (ie, credit 1 ‘Sbsly from National Goternment). This teas thst Enity Aas he authority fo use the amount wield Iinisoperations. Amounts sed fom the TRA willbe eparte in Ent A's Monthly igor of idusenents ‘The TRA i ecrdet bythe ther goverment genes 18 few Theuse of te account “Cah Tex Reta Adie isa if ny Aros the cash othe BIR and Tr, which the later then Femi Rack to Eni A, without the cach being physically ‘esfered, The wse of TRA Is acesay inorder for the BIR to ee: aes recut the tes a6 its income and forthe BTF 10 FOr the ‘itholding agency’ disbursement aut as subsidy Reitence fo GSS, Pap 1BIG & Pilea [ee awe alee | {0 ote ogc a oct ate u | (PY Catt Osten Seu 05 Rel sao Th agra mut 1 CSE | rico | ‘The Chigeton Rees and Slats (ORS) and the RAOD-PS | ee upstate pays above ‘lings Coletins & Remitances +3 Ent Abilis evene 10000 for et income. ‘ae 100.000 | sea ites] 'b Enity A cles #1000 fom the bie revenue and res thecolleten othe Tr, Ta esate ene ce Tenement Awoving ree ‘The bling of revenue is recorded in the General Journal while the collection and remittance are recorded in the Cad Reciturl fells: Reversion of Unused Notice of Cath Allocation (NCA) Government entities are required 10 revert any unused NCA atthe cendof the accounting peri, ‘The unused NCA i computed as follows: (Cash-Moaified Disbursement System (MDS), Regular Receipt of NCA. 200000 2.000 Advances for payrall Remittances to GSS, 50% pag IBIG, & Phila Liao end ae] Gah Caaing Os ] one ‘Acoun Revie | 0.00 “Toray ton inane [= een ‘GaTresuryAperey Depot Reaar] Toa] Cash Calecing Ofc 100.000 Lf rane meter gare an] PPD. No 145 egies hata coletions must be eited to the National Treasury ules anther aw spell allows others ‘Sb rom National Govern Cath Moditied Disbuseent Sytem (DS), Rept rao re Notice thatthe enty above isthe exact opposite ofthe entry to record the ceeipt of the NCA. |* see eye a “aero Bs Ri ‘The Ree Chat of Aunt tof ut et al acount ued by an ety. sion erm! eile he ct er and sz codes ae inthe Revised Chart of Accounts (RCA) sued bythe COA. “he RCA eles umerus acount Oni few hese inion [2 RAPA [= Nowe ai "RAPALand |- None accounts are shown below as presenting the complete list would i ‘more than double the number of pages in this book. mon Tach aunt the RCA based an Bil code a8 5 foows -e Tncarenct of eS sae! : None emmwa Colgan | eprops pies fear j RANCH TN ; fe Disbursements “updating of eemnineinaientel ORS ane Gener Ledger Accounts spprrate Cee Ledge Cont Acouts |i Tax Remitance |~ updating of = Tassant Gry hive Onsend ro Canrentte | spose 2 Uses Siete | owe ; tent tiles ROR, : Specs Catton & |" RCDCRR omits, | bid ample ec mt ak (== aa Scie Sateen [ (ome Ct masts sep tent RANE—_— zs | re Asi Pr ee i Sagi ein Taam | oR ‘count Tie BEA] ACS anand Equant | code | OP 1) [Fist date Code Toad Networks ei | ToD ASSETS esate Den Rad swe | oo | cos Cat Egle ies Cahn ed ermal pare ae Read | WOE | TORTS | coca OF Tamm Tooaay|| |News ey cash inna | Toa |Get Cr ike Rs Cimber Leal Carey Caner | THAT TRE |] [adem ‘et Bn Or (500) Advan Paya aa | | rg Gk As a “CabcTeanyiagney Depo GT] Tra] | | T_ Pepad Re es | Caniioiied asmenSrien | OR arom ||| ABILITIES | es teste ean in Cov To Renan Avie mam [ain ]| | Ts Ga sss Accuses a | HTS Try fils a TT gy Pas Treen Die B “aa | RTT Tet Ao Ta Vale t eh uf Na ASSETSEQUTY anal Anes Hl foreign || [Seem Egy Hs oe sce S| ST Lows Re Ka | pee Account Recor | ecteverse 7am | Toa “Alou igimeoune | ai] TBD || SESE Ta “axa sora Ree | tocome Taina aia" aio Ings ‘ai0900 inven sexi er Half Servic and Baines Income Meranda veo ao Sie ie Troy Hel Crop ca ew[Twos Fes eer ean Pree % ‘The Government Accounting Cyle {nhs section we will ave an overview ofthe accounting cle la government enty. Here fast of the tinge tat we wl be Iesning 1. Appropriation ‘lloment a = 2 Tomer Sa Sen as 3. rcarence of Obi [tang Paige 44 Disbursement Auer NCA = 5 Dicbucements sian ad Sas {Billings Callecions & Remitances et 7a a | Stress TR] Unasted tal ulance pe Adjusting ents Gi = 9. Ching enses Ginette Fanied | vow | 10. Preprton of rari stents gua ‘The tal balance of Ey A (a government entity) a he ee pinecones eet ingen Tos ame | women] a = | ih cong oe EN ‘neous Rec eee pecan ey i ‘cated Depecition-Buidings 1sn000 Silvia Wgeiagior | won| SOOT] Se Equipment ‘cunaaed Drprecaton -Egipent como ier pea ‘Accu ayale m0 Femoral Eooasc Rel Alona | STR | STO] Acre Surplas Dict ru ena) Tale 08 700. Disa Coe tie Conf Se sae ~The nr curs pope pas we lc supe puch Inthe po year hat were day deli inet tai ‘An abiional purchase of le spies worth P00 nt yet ‘Digrva +— ‘eroded nthe accounting books Derr thy ar nly eed epee Duligs and Other Soa TO The prior year “ligation” idee inthe vegies a "NF sand drama ciation.”