OPEN UNIVERSITY SYSTEMS

Lingayen, Pangasinan

DM 213 – Fiscal ADMINISTRATION

2ND Semester 2022-2023

Midterm Examination
Submitted by:
LEA N. RAGUINDIN
MDM Student

Submitted to:

MR. MENARD P. NAVA

Professor, DM 213
1. Evaluate the policies and programs of the Philippine Government (for the last five (5)
administrations) in relation to the National Government Budget Process. (25 pts.)

President Estrada administration focus his programs and policies on the agricultural
sector with greater priority. He assumed office amid the Asian Financial Crisis and with
agricultural problems due to poor weather conditions, thereby slowing the economic
growth in 1998. He has campaigned on a pro-poor platform. He ordered the removal of
all sovereign guarantees on contracts for public projects which would require the
sovereign Filipino people to assume the financial losses of private companies doing
business with the government. He made efforts to clean the bureaucracy by ordering
the immediate relief of corrupt officials in the military and police hierarchy. He ordered
a wide-ranging investigation of all government contracts entered into by the previous
administration to ensure these were above-board and directly advantageous to the
citizenry. He also ordered the investigation of suspected big-time tax evaders including
individuals who had contributed to his presidential campaign. He undertook an
aggressive housing program on a national basis, targeting low-cost homes for the poor.
The economy recovered by 1999-2000.

President Arroyo administration General Appropriation Act was re-enacted and

introduce certain provisions such as the PDAF Article provided that the PDAF shall be
used "to fund priority programs and projects under the ten-point agenda of the national
government and shall be released directly to the implementing agencies. It also
introduced the program menu concept, which is essentially a list of general
programs and implementing agencies from which a particular PDAF project may be
subsequently chosen by the identifying authority. The 2005 GAA was re-enacted in 2006
and hence, operated on the same bases. In similar regard, the program menu concept
was consistently integrated into the 2007, 2008,2009,2010 GAAs. Textually, the PDAF
Articles from 2002 to 2010 were silent with respect to the specific amounts allocated for
the individual legislators, as well as their participation in the proposal and identification
of PDAF projects to be funded. In contrast to the PDAF Articles, however, the provisions
under the DepEd School Building Program and the DPWH budget, similar to its
predecessors, explicitly required prior consultation with the concerned Member of
Congress anent certain aspects of project implementation. It was also significant that
during this era provisions which allowed formal participation of non-governmental
organizations (NGO) in the implementation of government projects were introduced. In
the Supplemental Budget for 2006, with respect to the appropriation for school
buildings, NGOs were, by law, encouraged to participate. Also, it was in 2007 that
the Government Procurement Policy Board (GPPB) issued Resolution No. 12-2007 dated
June 29, 2007 (GPPB Resolution 12-2007), amending the implementing rules and
regulations of RA 9184, the Government Procurement Reform Act, to include, as a form
of negotiated procurement, the procedure whereby the Procuring Entity which is the
implementing agency may enter into a memorandum of agreement with an
NGO, provided that an appropriation law or ordinance earmarks an amount to be
specifically contracted out to NGOs.

President Benigno S. Aquino III administration enacted budget reform on 2011 that has
achieved key ‘firsts’ in public expenditure management. Among these, is shunning the
old, inefficient and crooked practice of re-enactment by ensuring that budgets are
passed on time and implemented early. The national budget was prepared using the
zero-based budgeting (ZBB) approach. It allowed also to reduce or terminate funding for
projects or programs which are ineffective, inefficient or fraught with leakages, and to
expand funding for those which are well-performing and are critical for development.
Furthermore, it stressed that the 2011 Reform Budget is the first budget with
transparency and accountability provisions integrated within the GAA text. In which
general and special provisions require to disclose key information on budgetary
appropriations and releases using new information technology. Transparency starter
from Aquino administration which government has nothing to hide from the people. He
also institutionalizes citizen participation through ways and means in the budget process
and later on discussed as civil society organizations (CSOs). It is also a concrete, direct
and substantial way of making the dividends of good governance benefit the poor.
Allocations for conditional cash transfers, for quality basic education and for maternal
and child healthcare was included and have significantly increased in line with meeting
the country’s Millennium Development Goals.

President Duterte administration reaffirms the government’s strong commitment to

improve the living condition in the country. His program and policies cement the
administration’s legacy of real change for future generations, guided by the three main
pillars of Building Resilience amidst the Pandemic, Sustaining the Momentum towards
Recovery, and Continuing the Legacy of Infrastructure Development. Inclusion and
creation of the Department of Migrant Workers is one of the Duterte’s program to
honor not only the exceptional love of country but also the patriotism, excellence and
courage of the nation’s modern-day heroes, including OFWs. His dignity to a better way
to serve the Filipino people but by giving them the honest, efficient and responsive
government that they deserve. His service to passage of the General Appropriations Act
of 2022 that reflects the healthy collaboration among all branches of government, which
is crucial to the attainment the administration’s national development goals, especially
as the country confronts multiple challenges during his time. He also stressed out all the
efforts to rebuild and recover from Covid-19 pandemic. The prioritization of war on
drugs and anti-terrorism. Above all I would like also to commend and include his efforts
for institutionalization and firm implementation of digitization in the government that
impacts the ease of doing business in our country which I believe a timely preparation
for global investors to promote economic growth in our country.

President Ferdinand R. Marcos Jr. administration 2023 General Appropriations Act

geared towards achieving post-pandemic economic recovery. Back up by the members
of senate and the majority of the congressional leader’s top priority on education,
infrastructure development, health, agriculture, and social safety nets. Currently,
President passage said to be essential because it will serve as a roadmap of what the
government intends to do next year and fully supported by legislatures with all
solidarity. Enacted General Appropriations Act is important because it will provide the
government with a tool to transform the economy, as well as in carrying the needed
 structural changes toward realizing the administration's goals. 2023 budget was crafted
in support of the administration’s 8-point Socioeconomic Agenda and the Medium-Term
Fiscal Framework (MTFF) as a way to move forward. An Agenda for Prosperity to sustain
growth, generate economic activities and jobs, and increase the income for Filipinos.
Anchored on the theme, “Agenda for Prosperity: Economic Transformation Towards
Inclusivity and Sustainability,” the proposed budget seeks to address the immediate and
pressing concerns of all Filipinos in the near and medium-term. As stated by President
Ferdinand Marcos Jr., this budget is anchored on an agenda where we are no longer at a
point where we are catching up and reacting to the developments just like the past two
years. Now we can lay the foundation for the country to build on towards sustaining
economic growth and providing more opportunities for all people.

I believe all of the administrations effectively lead our country to move forward for a
better future but I think the Duterte administration served as the baseline on delivering
best services to Filipinos. This is only based on personal experiences that I really want to
give the commendation to President Rodrigo Duterte for being an efficient leader and I
want to appreciate his leadership in which I look up to him like my father. I weep when
he is weeping for the country especially those trying time like Zamboanga Siege and
Covid-19 Pandemic. I feel his struggles and tiredness, in that way I think his programs
and policies really touch the lives of many Filipinos.

2. Undergo a policy brief about the accounting and auditing policies in the Philippines. (25
pts.)

Accounting in the Philippines needs certain rules and standards in place to guarantee
accuracy and clarity. This framework, called Generally Accepted Accounting Principles
(GAAP), it explains how financial transactions are logged, classified, and shown. So, all
organizations can make the same financial reports. Philippine Financial Reporting
Standards is similar to International Financial Reporting Standards. Hence, businesses in
the Philippines can use the same practices as the global market. It also makes it easier
for stakeholders to understand the reports.
Board of Accountancy (BOA) oversees the accounting practice in the country. Certified
Public Accountants (CPA) must meet strict ethical requirements. They create financial
statements, audit records, and give advice on accounting standards. It’s essential for
companies in the Philippines to be aware of updates to accounting rules. Consulting
professionals or auditing firms can help them stay compliant and prevent issues.
Generally Accepted Accounting Principles (GAAP) in the Philippines guide financial
reporting and recording practices for companies. These principles ensure transparency,
so investor and stakeholders can make informed decisions.

Commonly followed GAAP in the Philippines

Cost Principle- Assets are recorded at their original cost. This value is retained unless
there’s a reason to adjust it.

Full Disclosure Principle- Financial statements should provide all relevant information to
users.

Materiality Concept- Only information that could influence a user’s decision should be
included in financial statements.

Consistency Principle- Companies should use consistent accounting methods for similar
transactions.

Conservatism Principle- In uncertain situations, accountants should choose the option

with lower profits or higher liabilities.

Philippine Financial Reporting Standards (PFRS)- They cover topics such as revenue
recognition, leases, and fair value measurement.

Philippine Accounting Standards (PAS)- covers issues not included in PFRS, like
accounting for agriculture, government grants, and borrowing costs.
Philippine Interpretations Committee Interpretations (PIC IS)- gives insight into how to
interpret accounting issues within the Philippine context.

Moreover, the BOA sets auditing standards that companies in the Philippines must
comply with. This ensures that financial statements are independently examined and
verified. To stay up-to-date, companies should frequently read FRSC publications. This
critical for accurate financial reporting. Compliance with these accounting rules and
standards in the Philippines helps companies build trust with stakeholders, make
informed business decisions, and promote transparency in their financial operations.
Don’t miss out on keeping your company’s financial practices aligned with the current
accounting rules and standards in the Philippines. Keep up-to-date by regularly
reviewing the FRSC’s guidelines. Ignorance can lead to financial and reputational risks.

Regulatory bodies in the Philippines, such as the Bureau of Internal Revenue (BIR) and
the Securities and Exchange Commission (SEC), are responsible for overseeing tax and
financial matters. The Bangko Sentral ng Pilipinas (BSP) regulates banks and other
financial institutions, while FRSC sets accounting standards for all entities, excluding
small and medium-sized ones. In addition to these organizations, the Philippine Institute
for Certified Public Accountants (PICPA) serves as a professional organization for
accountants. It provides guidance and resources for ethical conduct and professional
development. For accounting rules and standards to be strengthened in the Philippines,
regulatory bodies must collaborate closely with relevant stakeholders, such as business
organizations, academia, and industry experts. This way, they can refine and enhance
accounting practices to align them with international standards. Continuous education
and training are also essential for accountants and auditors to stay updated on the
latest developments. This will help them apply accounting effectively.

For me, as personnel who manned the Business Permit and Licensing Office of the Local
Government Unit of Aguilar, Pangasinan ruling on accounting and auditing in our
country serves as very vital role for the economic growth of our nation. They promote
the good practice of individual and business entities to declare accurate and appropriate
gross receipts that serves as our basis to collect the right taxes our government should
be collected. This figures which we generate as income returns to these law-abiding
individuals and entities in the form of services, roads, bridges and infrastructures that
make their life better and comfortable.