Government

Accounting
Objectives

 To produce information concerning past and present condition

 To provide a basis for guidance for future operations
 To provide for control of the acts of public bodies and officers in
the receipt, disposition and utilization of funds and property.
 To report on the financial position and the results of operation of
government agencies for the information of all persons concerned
Philippine Budget Cycle

 Budget Preparation and Presentation

 Budget Legislation or Authorization
 Budget Execution or Implementation
 Budget Accountability
Government Accounting Manual
 It shall be used by all National Government Agencies in
the:

a.)preparation of the general purpose financial statements

in accordance with the PPSAS and other financial reports
as may be required by laws, rules and regulations.

b.) reporting of budget, revenue and expenditure in

accordance with laws, rules and regulations.
Objective of the Manual

 The Manual aims to update the following:

a.) standards, policies, guidelines and procedures in
accounting for government funds and property
b.) coding structure and accounts
c.) accounting books, registries, records, forms, reports
and financial statements.
 Accounting Responsibility

Accounting responsibility emanates from the

Constitution, laws, policies, rules, and regulations.
The Constitution of the Philippines the fundamental
Law of the land, mandates keeping of the general
accounts of the government, promulgation of
accounting rules and the submission of reports
covering the financial condition and operation of
the government
COMMISSION ON AUDIT (COA)

The Commission on Audit,

abbreviated as COA, is an independent
constitutional commission established
by the Constitution of the Philippines.
It has the primary function to
examine, audit and settle all accounts
and expenditures of the funds and
properties of the Philippine
government
COMMISSION ON AUDIT (COA)

Chairperson Michael G. Aguinaldo

Appointed to head the Supreme

Audit Institution on March 24, 2015.
COMMISSION ON AUDIT (COA)

Commissioner Jose A. Fabia

Appointed to the
Commission on Audit (COA) on May 2,
2014
Commission on Audit (COA)

Commissioner Roland Café Pondoc

nominated to the
Commission on Audit (COA) on 6
February 2018.
DEPARTMENT OF BUDGET AND MANAGEMENT

-Executive body under the Office of

the President of the Philippines.
-National Budget
-Country’s development goals
Department of Budget and Management

Sec. Wendel Avisado

The Acting Secretary of the

Department of Budget and
Management (DBM).
BUREAU OF THE TREASURY

- Sufficiency of Government
financial resources

- Quality management systems

DEPUTY TREASURERS OF THE PHILIPPINES

ATTY. GISELA F. LOOD

SHARON P. ALMANZA

ATTY. ERWIN D. STA. ANA

 Agencies

 Three (3) types of governmental organizational

units:
 National Government Unit (NGA)
 Local Government Unit(LGU)-
 Government Owned or Controlled Corp(GOCC)
Department of Budget and Management
Commission on Audit
Department of Finance
Bureau of Treasury
Bureau of Internal Revenue
Department of Public Works and
Highways
Department of Transportation
National Economic Development
Authority
Purpose of Government Accounting
 To make expenditures according to the appropriate act,
rules and legal provisions of the government.

* To provide reliable financial data and information

about the operation of public fund.

* To prevent misappropriation of government properties

by maintaining the systematic records of cash and store
items.
Purpose of Government Accounting
 To record financial transactions of revenues and
expenditures related to the government organizations.
 To avoid the excess expenditures beyond the limit of the
budget approved by the government.
 To serve as the control mechanism for the receipt,
disposition and utilization of government funds and
properties
 To come up with financial reports pertaining to the results of
operations of various government agencies that are for
dissemination to the public.
Purpose of Government Accounting


* To facilitate for making auditing of the books of

accounts.

* To help for preparing different financial statements

and reports.

* To facilitate for estimating the annual budget by

providing historical financial data of government
revenues and expenditures.
Application of Government Accounting

 Department of Budget and Management

 Department of Finance
 Commission on Audit

 Bureau of Internal Revenue

 Bureau of Treasury
 Cash and Cash Equivalents (PPSAS 2, 28, 29 & 30)

 Cash on Hand
 Cash in Bank-Local Currency
 Cash in Bank-Foreign Currency
 Treasury/Agency Cash Accounts
 Cash Equivalents
 Investments (PPSAS 28, 29 & 30)
 Financial Assets at Fair Value Through Surplus or Deficit
 Financial Assets-Held to Maturity
 Financial Assets-Other
 Investments in GOCCs
 Investments in Joint Venture
 Investments in Associates
 Sinking Fund
 Receivables (PPSAS 28, 29 & 30)
 Loans and Receivable Accounts
 Lease Receivable
 Inter-Agency Receivables
 Intra-Agency Receivables
 Other Receivables
 Inventories (PPSAS 12)
 Inventory Held for Sale
 Inventory Held for Distribution
 Inventory Held for Manufacturing
 Inventory Held for Consumption
 Semi-Expendable Machinery and Equipment
 Semi-Expendable Furniture, Fixtures and Books
 PPE (PPSAS 17 & 21)
 Land
 Land Improvements
 Infrastructure Assets
 Buildings & Other Structures
 Machinery & Equipment
 Transportation Equipment
 Furniture, Fixtures & Books
 Heritage Assets (17)
 Other PPE (17)
 Leased Assets (PPSAS 13)
 Leased Assets Improvements\
 Construction in Progress (13 & 17)
 Service Concession Tangible Assets (PPSAS 32)
 Investment Property (PPSAS 16)
 Land and Buildings
 Construction in Progress
 Biological Assets (PPSAS 27)
 Bearer Biological Assets
 Consumable Biological Assets
 Intangible Assets (PPSAS 31)
 Intangible Assets

 Service Concession – Intangible Assets

 Development in Progress
 Other Assets
Biological Assets (PPSAS 27)
 Bearer Biological Assets
 Consumable Biological Assets

Intangible Assets (PPSAS 31)

 Intangible Assets
 Service Concession – Intangible Assets
 Development in Progress
 Other Assets
Financial Liabilities (PPSAS 28,29,30)
 Payables
 Bills/Bonds/Loans Payable
 Tax Refunds Payable
 Other Payable
 Inter – Agency Payables (PPSAS 23)
Intra – Agency Payable (PPSAS 23)
Trust Liabilities (PPSAS 23)
Deferred Credits/Unearned Income (PPSAS 19)
Provisions (PPSAS 19)
Tax Revenue (PPSAS 23)
 Tax Revenue – Individual & Corporation
 Tax Revenue – Property
 Tax Revenue – Goods and Services
 Tax Revenue – Others
 Tax Revenue – Fines and Penalties
Assistance & Subsidy (PPSAS 23)
Shares, Grants and Donations (PPSAS 23)
Service & Business Income (PPSAS 9)
 Service Income
 Business Income
Gains (PPSAS 9)
Other Non – Operating Income (PPSAS 9)
 Sale of Assets
 Reversal of Impairment Loss
 Miscellaneous Income
Maintenance & Other Operating Expenses (PPSAS
1)
 Traveling Expense
 Training & Scholarship Expense
 Supplies & Materials Expense
 Utility Expense
 Communication Expense
 Awards/Rewards, Prizes & Indemnities
Survey, Research, Exploration & Development
Expense (PPSAS 31/17)
Generation, Transmission & Distribution
Expense (PPSAS 1)
Confidential, Intelligence & Extraordinary
Expense (PPSAS 1)
Repairs & Maintenance (PPSAS 16 & 17)
Depreciation (PPSAS 17)
Amortization (PPSAS 31)
Impairment Loss (PPSAS 12, 16, 21, 29, 31)
Loss on FOREX (PPSAS 4)
Loss on Sale (PPSAS 9)
Thank you!
Group 1 Members:
Santos, Kyle Osborne
Suing, Ceciro
Magday, Renniel
Pablo, Paul Anthony
Adriano, Renz Christian
Caabay, Jayric Nheil
Peranca, Nina
Bonifacio, Ivan