REPORTER: SOPHIA GABUAT

Changes Adopted in the GAM

Particulars NGAS Manual GAM
1. New State Accounting PPSAS 1-Presentation of
Standards Standards Financial Statements
PPSAS 2-Cash Flow
Statements
PPSAS 3-Accounting Policies,
Changes in Accounting
Estimates and Errors
PPSAS 4-The Effects of
Changes in Foreign Exchange
Rates
PPSAS 5-Borrowing Costs
PPSAS 6 -Consolidated and
Separate Financial
Statements
PPSAS 8-Interests in Joint
Ventures
 Changes Adopted in the GAM
Particulars NGAS Manual GAM
1. New State Accounting PPSAS 9-Revenue from
Standards Standards Exchange Transactions
PPSAS 12-Inventoies

PPSAS 13-Leases
PPSAS 14-Events after the
Reporting Date
PPSAS 16-Investment
Property
PPSAS 17-Property, Plant
and Equipment
PPSAS 19-Provisions,
Contingent Liabilities and
Contingent Assets
PPSAS 20-Related Party
Disclosures
 Changes Adopted in the GAM
Particulars NGAS Manual GAM
1. New State Accounting PPSAS 21-Impairment of Non-Cash
Generating Assets
Standards Standards
PPSAS 23-Revenue from Non-
Exchange Transactions (Taxes and
Transfers)
PPSAS 24-Presentation of Budget
Information in Financial Statements

PPSAS 26-Impairment of Cash-

Generating Assets

PPSAS 27-Agriculture

PPSAS 28, 29 and 30-Financial

Instruments (Presentation,
Recognition and Measurement, and
Disclosures, respectively)
PPSAS 31-Intangible Assets
PPSAS 32-Service Concession
Arrangements: Grantor
 Changes Adopted in the GAM
Particulars NGAS Manual GAM
2. Components Four Six
of FS
3. FS Title 1. Balance Sheet 1. Statement of Financial
2. Statement of Position
Income and 2. Statement of Financial
Expenses Performance
3. Statement of 3. Statement of Changes in
Government Net Assets/Equity
Equity 4. Statement of Cash Flow
4. Cash Flow
Statement Additional FSs
5. Statement of Comparison
of Budget and Actual Amounts
6. Notes to Financial
Statements
 Changes Adopted in the GAM
Particulars NGAS Manual GAM
4. Unified None UACS Compliant
Accounts Code
Structure
(UACS)
5. Books Regular Agency By Fund Cluster
Maintained Book and National
Government Book
6. Fund One Fund Concept Fund Clustering
Maintenance 1. Regular Agency Fund
2. Foreign-Assisted Projects Fund
3. Special Accounts-Locally
Funded/Domestic Grants Fund
4. Special Account-Foreign
Assisted/Foreign Grants Fund
5. Internally Generated
Funds/Retained Income Fund
6. Business Related Funds/Revolving
Fund
7. Trust Receipts
 Changes Adopted in the GAM
Particulars NGAS Manual GAM
7. Statement of
Financial
Position

Assets Without distinction With Distinction Current and

Non-current

Liabilities Without distinction With Distinction Current and

Non-current

8. Statement of None Additional component of FS

Comparison of
Budget and
Actual
Amounts
 Changes Adopted in the GAM
Particulars NGAS Manual GAM
9. Maintenance Registry of Registry of Allotments,
of Registries Allotments and Obligations and Disbursements
Obligations (RAO) (RAOD) (RAODPS, RAODMO,
RAOPS, RAOMOOE, RAODCO, RAODFE)
RAOCO, RAOFE
RBU RBUDPS, RBUDMOOE,
RBUDCO, RBUDFE
RAPAL (COA-GAS RAPAL (COA-GAS and
only) agencies)
10. Forms Obligation Request Obligation Request and Status
(ObR) (ORS)
None Notice of Obligation Request
and Status Adjustment
(NORSA)
Budget Utilization Budget Utilization Request and
Request (BUR) Status (BURS)
None Notice of Budget Utilization
 Chapter 2:
General Provisions,
Basic Standards and
Policies
Visca, Bianca Stephanie M.
Fund Accounting
refers to the management and allocation of
revenue an organization acquires through
donations, tax payments, grants and other
public and private sources.

Fund Cluster
is an aggregation of Funding Sources for the
purpose of
recording transactions and preparing report in
the Budget, Treasury and Accounting processes.

2
Code Description
01 Regular Agency Fund
02 Foreign Assisted Projects Fund
03 Special Account-Locally Funds/ D
Domestic Grants Funds
04 Special Account- Foreign Assisted/
Foreign Grants Fund
05 Internally Generated Funds
06 Business Related Funds
07 Trust Receipts

3
Key Features of
Assets
An asset is a resource that has some economic
value to a company and can be used in a
current or future period
to generate revenues.
The key features of an asset are:
a. The benefits must be controlled be the
entity;
b. The benefits must have arisen from past
events’ and
c. Future economic benefits or services
potential must be expected to flow to the
entity.
24
Recognition of Assets
An asset shall be recognized in the financial
position when and only when:
a.It is probable that the future economic
benefits will flow to the entity; and
b.The asset has a cost or value that can be
measured
reliably.

25
Accounting Standard for
Revenues
a.Revenue
b.Receipts/Collections
c.Fines
d.Gifts and donations
e.Goods in kind
f. Taxes
g.Transfers

26
• Use of Appropriated Funds-
appropriated funds may only be used for
the purpose for which they were
appropriated.
• Certification of Availability of Funds-
refers to the certification made by the
proper accounting official of the agency
concerned that funds have been duly
appropriated for the purpose of entering
into a contract involving expenditure of
public funds.

27
• Prohibition against the Incurrence
of Overdraft- agencies shall not incur
nor authorize the incurrence of
expenditures or obligations in excess
of allotments released by the DBM for
their respective departments, offices
and agencies.

28
 Chapter 3:
Budget Execution,
Monitoring, and
Reporting
Visca, Bianca Stephanie M.
• Release Guidelines and BEDs

Major recipients of the budget

a. NGAs
b. LGUs
c. GOCCs

30
• Allotment- authorization issued by
DBM to NGAs to incur obligations for
specified amounts.

• Appropriation- authorization made by

a legislative body to allocate funds.

31
Fund Release
Documents

32
Special Allotment
Release
Order (SARO)

33
•Registry Of Revenue And Other
Receipts

The Registries of Revenue and Other

Receipts shall be maintained by the
Budget Division/Unit of NGAs to monitor
the revenue and other
.receipts

34
Registry of Revenue and Other
Receipts

35
Procedures in Monitoring and Recognizing
Revenue and Other Receipts

Staff Concerned
Receives from the Treasury Unit Records the same in the logbook
or other unit concerned of the and forwards the documents the
entity the copy of the Report of same in the logbook and forwards
Collections and Deposits (RCD), the documents to the Budget Staff
TRA, Cash Receipts Register
(CRReg) and Credit Memo.

Budget Staff
Records the collections of revenue/other receipts under the
appropriate column of the RROR. Files the RROR and the
copy of RCD and supporting documents for reference.
36
• Registry Of Appropriations And
Allotments (Rapal)
This Registry shall be maintained by fund cluster
by the
Budget Division/Unit of each government entity to
ensure
that allotment releases are within the authorized
appropriation. Separate registry shall be
maintained for
prior year’s appropriations.

37
Registry of Appropriations and Allotments

38
Procedures in Recording Appropriations
and Allotments.
Staff Concerned
Receives the GAA and the
allotment release documents
from the DBM. Records the
same in the logbook and
forwards these documents to
the Budget Staff for
recording in the RAPAL and
RAOD
Budget Staff
Records the appropriations
and allotments in the
appropriate columns of the
RAPAL and the RAOD .
Forwards a copy of the
allotment release documents
to the Accounting Division/
Unit for reference
39
Thanks!

40
 CHAPTER 3:

Budget Execution,
Monitoring and
Reporting

CHAPTER 4:

Responsibility
Accounting
REPORTER: RENELLE HABAC
Government Accounting Process

This process is similar to that of a

business entity, except that it incorporates
budgetary controls, such as recording in
the budget registries and preparing
periodic budget accountability reports
Books of Accounts and Registries
1. Journals
 General Journal
 Cash Receipts Journal
 Cash Disbursements Journal
 Check Disbursements Journal

2. Ledgers
 General Ledgers
 Subsidiary Ledgers

3. Registries
 Registries of Revenue and other Receipts (RROR)
 Registry of Appropriations and Allotments (RAPAL)
 Registries of Allotments, Obligations and Disbursements (RAOD)
 Registries of Budget, Utilization and Disbursements (RBUD)
Object of Expenditures

1. Personnel Services (PS) – pertain to all

types of employee benefits
2. Maintenance and Other Operating
Expenses (MOOE) – pertain to various
operating expenses other than employee
benefits and financial expenses
3. Financial Expenses (FE) – pertain to finance
costs
4. Capital Outlays (CO) – pertain to
capitalizable expenditures
REGISTRIES

Registries of Revenue and

other Receipts (RROR)
RROR – Regular Agency / Foreign Assisted Project
RROR – Regular Agency (example#2)
RROR – Foreign Assisted Project (example#2)
RROR – Special Accounts-Locally Funded/Domestic Grants Fund
RROR – Special Account-Foreign Assisted/Foreign Grants Fund
RROR – Special Accounts-Locally Funded/Domestic Grants Fund (Example #2)
RROR – Special Account-Foreign Assisted/Foreign Grants Fund (Example#2)
RROR – Internally Generated Funds
RROR – Business Related Funds (Example #1)
RROR – Internally Generated Funds (Example#2)
RROR – Business Related Funds
RROR – Trust Receipts (EXAMPLE #1)
RROR – Trust Receipts (Example#2)
REGISTRIES

Registry of Appropriations and

Allotments (RAPAL)
Page 1 of 2
Page 2 of 2
REGISTRIES

Registries of Allotments,
Obligations and Disbursements
(RAOD)
 REGISTRIES

Registries of Budget, Utilization and

Disbursements (RBUD)
Obligation Request Status (ORS)

Incurrence of obligations shall be made

through the issuance of ORS

Prepared by the Requesting/Originating Office

Head of the Requesting/Originating office shall

certify as to the necessity and legality of
charges to the budget under his/her
supervision and validity
Page 1 of 2
Page 2 of 2
Page 1 of 2
Page 2 of 2
Appropriation
Entity A receives its GAA consisting of the
following:
PS 100,000
MOOE 60,000
FE -
CO 200,000

Total Appropriation for CY 2020 360,000

Registries and other Journal Entry

Records
RAPAL None
Allotment
Entity A receives allotment from DBM consisting of
the following:
PS 90,000
MOOE 40,000
FE -
CO 170,000
Total Appropriation for CY 2020 300,000

Registries and other Journal Entry

Records
RAPAL
RAOD – PS None
RAOD – MOOE
RAOD – CO
Incurrence of Obligation
Entity A enters into the following contracts:
PS – Employment Contracts (Job order) Amounting to P70,000
MOOE – Purchase contracts for office supplies worth P25,000
CO – Purchase contract for office equipment worth P160,000

Registries and other Journal Entry

Records
RAOD – PS
RAOD – MOOE None
RAOD – CO
3 ORS
Note: In Government Entity, obligation means an act of a duly authorized
official which binds the government to the immediate or eventual payment
of a sum of money.
In Business Entity, another term for liability.
Notice of Obligation Request
and Status Adjustment (NORSA)

Use in adjusting obligations recorded in

RAOD and ORS

The Adjustment shall be effected through a

positive entry (addition) or a negative entry
(reduction)
 Notice of Cash Allocation (NCA)

Entity A receive NCA from the DBM amounting to 200,000 net of tax.

Registries and other Journal Entry

records

RANCA Cash – MDS Regular 200,000

Subsidy from National Government 200,000

• Registry of Allotments and Notice of Cash Allocation (RANCA) – is

used to determine the amount of allotment not covered by NCA and to
monitor the available balance of NCA
• Registry of Allotment and notice of transfer of Allocation (RANTA)
– used to determine the amount of allotment not covered by NTA and to
monitor the available balance of NRA
Notice of Cash Allocation (NCA)

Specifies the maximum amount of

withdrawal that an entity can make from a
government bank for the period indicated

Collecting officers shall not issue an

official receipt (OR) for the receipt of NCA
DISBURSEMENT
• Employees have rendered services and are now entitled to
compensation
• Set up of payable to officers and employees upon approval of
payroll

Salaries and wages 35,000

Personal Economic Relief Allowances (PERA) 5,000
Gross compensation 40,000
Withholding Tax (10,000)
GSIS (2,000)
Pag-IBIG (2,000)
PhilHealth (1,000)
Total Deductions (15,000)
Net 25,000
DISBURSEMENT
Registries Journal Entry
and other
records

ORS Salaries and wages, Regular 35,000

RAOD - PS
PERA 5,000
Due to BIR 10,000

Due to GSIS 2,000

Due to Pag-IBIG 2,000
Due to PhilHealth 1,000
Due to Officers and 25,000
Employees
DISBURSEMENT
Grant of Cash advance for payroll

Registries Journal Entry

and other
records

ORS Advances for Payroll 25,000

Cash – MDS, Regular 25,000

Liquidation of Payroll Fund

Registries Journal Entry
and other
records

Due to Officers and Employees 25,000

Advances for Payroll 25,000
DISBURSEMENT
Entity A remits the 15,000 withheld to the government agencies

Registries and other Journal Entry

records

ORS, RAOD – PS Due to GSIS 2,000

Due to Pag-IBIG 2,000
Due to PhilHealth 1,000
Cash – MDS, Regular 5,000
Tax Remittance Advice (TRA)

 Agencies, constructive remittance of taxes

withheld to the BIR or customs duties withheld
to BOC and the constructive receipt of NCA for
those taxes and customs duties

 BIR/BOC, constructive receipt of taxes

revenue or custom duties

 BTr, constructive receipt of the taxes and

customs duties remitted
DISBURSEMENT
Remittance of withholding taxes

Registries
and other Journal Entry
records
Cash – TRA 10,000

Subsidy from National Government 10,000

To recognize the constructive receipt of NCA for TRA

Due to BIR 10,000

Cash – TRA 10,000

To recognize the constructive remittance of taxes withheld to the BIR

through TRA
DISBURSEMENT
Remittance of withholding taxes

Books of BIR Books of BTr

Cash – TRA 10,000 Subsidiary to 10,000

NGAs
Income Tax 10,000 Cash – TRA 10,000

To recognize constructive receipt of To recognize constructive receipt of

taxes remitted by NGAs through TRA remittance of taxes by NGAs through
TRA
BASIC RECORDINGS
Recording in:
Transaction
Registries and Journal and Ledger
other Records

a. Appropriation - RAPAL none

b. Allotment - RAPAL and
appropriate RAODs none

c. Incurrence of - ORS and

obligations appropriate RAODs None

d. NCA - RANCA Cash-MDS, Regular xx

Subsidy from NG xx
BASIC RECORDINGS
Recording in:
Transaction Registries and Journal and Ledger
other Records

e. - Updating of ORS Expense/Asset xx

Disbursement and appropriate Payable xx
RAODs
Payable xx
Cash-MDS, Regular xx

f. Tax - Updating of ORS Cash-TRA xx

Remittance and appropriate Subsidiary from NG xx
Advice RAODs
(TRA is used Due to BIR xx
for remittance Cash-TRA xx
of taxes
withheld)
Responsibility Accounting– a system
that measures the plans (by budgets)
and actions (by actual results) of each
responsibility center

Responsibility Center – a part,

segment, unit or function of a
government agency, headed by a
manager, who is accountable for a
specified set of activities
 Responsibility Center Code Structure

Chapter 4
Unified Accounts Code Structure Manual
Unified Accounts Code Structure Manual
The first two digits of operating unit codes will be used to indicate the classification
of an operating unit, as follows:
LOWER-LEVEL OPERATING UNITS UACS
Central Office 01
Staff Bureaus 02
Department/Agency Regional Offices/Centers for Health 03
Development/Regional Field Units – DA
State Universities and Colleges – Campuses 04
Provincial Offices – DAR and DENR 05
National Irrigation Administration Regional Offices – DA 06
Extension or Field Offices - CDA-DOF/Penal Colonies – BUCOR 07
Schools Division/District Offices – DEPED 08
Secondary Schools - DEPED/Campuses – PSHS 09
Collection Districts** – BOC 10
Revenue Regional Offices* – BIR 11
Revenue District Offices** – BIR 12
Unified Accounts Code Structure Manual
LOWER-LEVEL OPERATING UNITS UACS
Embassies/Consulates General/Manila and Regional Consular 13
Offices – DFA
Special/Retained Hospitals – DOH 14
Treatment and Rehabilitation Centers – DOH 15
Technical/Vocational Schools – TESDA 16
Key Budgetary Units – DND 17
District Engineering Offices and Sub District Engineering Offices – 18
DPWH
Land Transportation Offices – DOTC 19
Land Transportation Franchising and Regulatory Board – DOTC 20
Regional Development Councils – NEDA 21
Autonomous Region in Muslim Mindanao 22
*An operating unit as well as a revenue collecting unit
**A revenue collecting unit, not an operating unit
National Government of the
Commission on Audit
THANK YOU!