PA ELECTIVE: Government Auditing

SUMMARY OF LESSONS
MIDTERM AND FINALS

MIDTERM

Government Auditing
Purpose: Ensure accountability and transparency in government finances.
- Key agencies involved: Commission on Audit (COA).

COA's Constitutional Mandate

- Independence: COA operates independently to ensure unbiased audits.
- Accountability: Focus on government funds and resources.

Audit Process
- Financial Audits: Examine financial statements for accuracy and compliance.
- Compliance Audits: Ensure adherence to laws and regulations.
- Performance Audits: Assess efficiency and effectiveness of government programs.

Audit Reports
- Findings and Recommendations: Identify issues and propose corrective actions.
- Transparency: Reports are public documents, enhancing government accountability.

Legal Basis
- Constitution and Laws: COA's authority derived from legal frameworks.
- Anti-Graft and Corrupt Practices Act: Addresses corruption in public service.

Role in Good Governance

- Preventive and Corrective Measures: COA helps prevent irregularities and corrects
deficiencies.
- Strengthening Public Trust: Auditing builds trust in government financial
management.

Challenges in Government Auditing

- Resource Constraints: Adequate resources needed for thorough audits.
- Political Pressures: Ensuring independence despite external influences.

EXAMPLE : PASIG CITY

Brief Background of Pasig City

- Pasig is one of the oldest towns in the Philippines. The Augustinians created it in
1572.
- In June 1901, Act No. 137 of the Philippine Commission incorporated Pasig in the
newly created Province of Rizal.
- Mayor Victor Maria Regis "Vico" Nubla Sotto
 ● Vice Mayor Robert "Dodot" Jaworski Jr.
- According to the 2023 census, it has a population of Population 526,043
- Land Area 31 km²
- Classification Highly Urbanized City
- No. of Barangays 30
- No. of Congressional Districts 1

What is Pasig City known for?

- a business hub, especially the Ortigas Center.
● Ortigas Center is home to many shopping malls, office and condominium
skyscrapers, nightlife bars, restaurants and other building complexes.
It's also recognized for its blend of old and new, with historical sites coexisting
alongside modern developments. The city is also known for its commitment to
sustainability and the Pasigueño lifestyle.

PASIG CITY ANNUAL BUDGET (2023)

- Pasig City Council approves P15-B proposed annual budget for 2023.
- In November 10, 2022 the city council passed on third reading the Proposed
Ordinance No. 23-2022 or the “Appropriations Ordinance of Pasig City for 2023.”

What is the appropriations Ordinance?

- specifies the maximum amount which can legally be spent
- means the official document that authorizes the Province to spend in that
financial year.
The appropriation ordinance applies until the last day of the financial year
only and then needs to be replaced with a fresh annual Appropriation
Ordinance. “Approved for Payment” means the process of approving a
Payment Voucher or Local Purchase Order for payment.

City Council Chairman and Vice Mayor Robert “Dodot” Jaworski Jr. also thanked the
legislative body in approving the “historic” ordinance, saying it is “the largest budget the city
of Pasig has ever seen.”

- Nov. 3, City Councilor Maro Martires, chairperson of the Committee on Appropriation,

Ways, and Means, presented the summary of the committee report on the proposed
budget.

Programs and Projects highlighted by the government sectors pursuant to the

budget.

For social sector, the City Social Welfare and Development (CSWD)

● out-of-school youth (OSY)

● providing shelter to street children
● cleaning streets through assisting street sweepers
● aiding other vulnerable groups.
For the health sector, the City Health Department (CHD)
● expand the health programs being offered by the Pasig City General Hospital
(PCGH) and the Pasig City Children’s Hospital (PCCH)
● increasing awareness and accessibility of health programs to the public.

Schools Division Office (SDO)

● The budget allotted to the education sector will be for the continuous improvement of
school infrastructure, quality of education, and daycare services.

Conclusion
- Government auditing plays a crucial role in fostering transparency, accountability, and
good governance in the Philippines.

References:
https://pasigcitylibrary.wordpress.com/2021/03/06/history/#:~:text=Pasig%20is%20one%20of
%20the,newly%20created%20Province%20of%20Rizal.

https://philippine-real-estate.com/blog/pasig-city/#:~:text=What%20is%20Pasig%20City%20
known,sustainability%20and%20the%20Pasigue%C3%B1o%20lifestyle.

https://mb.com.ph/2022/11/11/pasig-city-council-approves-p15-b-proposed-annual-budget-fo
r-2023

https://mb.com.ph/2020/10/22/pasig-city-council-approves-2021-budget/

FINALS

I. Nature, Functions and Approaches

a. Role of Government Budget in Public Finance
Government budgets play a crucial role in public finance by outlining planned
revenue and expenditures. They serve to allocate resources, fund public services,
manage deficits or surpluses, and influence economic stability through fiscal policies.
The budget reflects government priorities, addresses societal needs, and contributes
to overall economic health by balancing income and spending. Understanding the
government budget is essential for citizens and policymakers to gauge financial
priorities and the impact on the economy.

b. Frames of References
● For the context of government budgeting, a frame of reference is the
underlying perspective that influences how the budget is put together and
evaluated.

In the view of government budgeting, a "frame of reference" refers to the

fundamental perspective that shapes both the creation and assessment of the
budget. It is the underlying viewpoint or set of principles that influences
decision-making regarding what to include in the budget and how it should be
structured. This frame of reference plays a crucial role in guiding the
 budgeting process, impacting choices related to priorities, allocations, and
evaluations of fiscal decisions. Essentially, it serves as a foundational lens
through which policymakers view and approach the complex task of
formulating and assessing government budgets.

c. Techniques in Government Budgeting

Government budgeting is a complex process that involves strategic
decision-making to allocate resources effectively. Among the various approaches,
incremental budgeting stands out as a common method where small adjustments are
made to the previous year's budget. While this method is straightforward and easy to
implement, it raises concerns about its ability to stimulate a thorough review of
program effectiveness. The danger lies in perpetuating existing patterns without
critically evaluating whether they truly serve the intended purposes. The diversity of
budgeting approaches reflects the multifaceted nature of governance. Each method
carries its strengths and limitations, emphasizing the need for a thoughtful and
adaptive approach to budgeting. The challenge for policymakers is to strike a
balance between simplicity and effectiveness, ensuring that budgetary decisions
align with overarching goals and deliver tangible benefits to the public.

d. Relevance of Good Governance

The relevance of good governance lies in its ability to create a conducive
environment for the holistic development of societies. It is not just a theoretical
concept but a practical approach that shapes the quality of life for individuals, the
prosperity of nations, and the well-being of the global community.

II. Philippine Budgeting System

The Philippine budgeting system is a dynamic framework that plays a pivotal role in
shaping the nation's development trajectory.

The inclusive nature of the Philippine fiscal system stands out. Emphasizing citizen
participation through mechanisms such as the participatory budgeting process encourages
participation in decision-making. This inclusion not only ensures diverse perspectives, but
also increases the accountability of public officials to the people they serve. Another aspect
that deserves attention is the decentralized structure of the budget system. When allocating
resources to municipalities, the unique needs and challenges of different regions are
recognized. Such decentralization fosters a sense of local ownership and allows
communities to focus on their specific development goals. However, challenges arise to
ensure the effective use of decentralized funds. While autonomy at the local level is
essential, robust mechanisms are needed to monitor and evaluate resource use. Finding
the right balance between decentralization and centralized control is critical to preventing
abuse and promoting optimal outcomes.

The Philippines' system of budgeting and adaptation to development goals is

commendable. The inclusion of the Sustainable Development Goals (SDGs) reflects a
commitment not only to economic aspects, but also to social and environmental aspects.
This holistic approach emphasizes that the government and #039; recognize the relationship
between different aspects of development. On the other hand, the complexity of the budget
process can be an obstacle to transparency. Understanding budget allocations and
navigating the complexities of financial documents can be difficult for the average citizen.
Bridging this knowledge and improving financial literacy can contribute to a more informed
and engaged citizenry. Moreover, the responsiveness of the Philippine fiscal system to
emerging challenges deserves recognition. The ability to reallocate resources in response to
unexpected circumstances, such as natural disasters or health crises, demonstrates
adaptability and resilience. The Philippine fiscal system reflects a commitment to democratic
principles, inclusiveness and sustainability. As the country faces evolving challenges,
continued efforts to increase transparency, streamline processes and ensure efficient
allocation of resources are imperative. The Philippine fiscal system is not just a financial
instrument; it reflects the government and its commitment to promote a prosperous, just and
sustainable country.

III. Government Accounting System

The government accounting system acts as the financial backbone of public
administration and plays a key role in ensuring transparency, accountability and effective tax
administration. When I think about its meaning, I realize that this system goes beyond mere
accounting; it is the basis of responsible governance. Careful monitoring of income and
expenditure not only protects public finances, but also provides a clear picture of how
taxpayers' money is spent. In addition, adherence to standardized accounting principles
promotes comparability and facilitates informed decision-making. However, challenges
remain, such as the need to continually adapt to evolving financial standards and the need to
balance transparency with the complexity of government financial operations. However, the
government accounting system remains an important tool that enforces fiscal responsibility
and enables governments to serve their constituents in the complexities of managing the
economy.

IV. Government Accounting

Government auditing stands as the sentinel of financial integrity within the public
sector, and as I reflect on its role, it becomes evident that auditing is not merely a
compliance exercise but a cornerstone of accountable governance. Auditors serve as
custodians of public trust, meticulously examining financial records and processes to ensure
adherence to laws and regulations. The audit process not only detects errors and
irregularities but also prompts improvements in financial management practices. It acts as a
safeguard against fraud and mismanagement, providing assurance to citizens that their tax
dollars are used judiciously. The challenge, however, lies in the need for auditors to navigate
the intricate landscape of government operations while maintaining independence and
impartiality.

V. Issues in the Philippines Bugeting System and Reform Initiatives

The budgeting system in the Philippines is marked by a dynamic interplay of strengths
and challenges. While the participatory elements, such as the People's Participatory
Budgeting Process, aim to engage citizens in decision-making, there are persistent issues
like the complexity of financial documents that may hinder broader understanding and
involvement. Decentralization, though vital for local empowerment, demands a delicate
balance to prevent misuse of funds. Reform initiatives, such as the integration of Sustainable
Development Goals (SDGs), showcase a commitment to holistic development; yet, ensuring
effective implementation remains a concern. The government's responsiveness to crises,
like natural disasters, is commendable, yet continuous efforts are needed to address
bureaucratic hurdles. The ongoing reform initiatives signify a proactive approach,
emphasizing transparency and accountability, but their success hinges on the sustained
commitment to bridging gaps, streamlining processes, and fostering a budgeting system that
not only reflects democratic ideals but also ensures efficient resource allocation for the
benefit of all Filipinos.