Chapter 3

The Government Accounting Process

Group 3 Members:

BALINDONG, NORHAFSA S.
LUCMAN, ACHMADJAN N.
DIBANGKITUN, HAFISA D.
BALT, PRINCESS NADJAH P.
DIMALNA, ASLAINIE C.
DECA, MOHAMMAD AL-RAJIE U.
MOHAMMAD, JOHAIBER M.
Government accounting

is the process of
● analyzing
● recording
● classifying
● summarizing
● communicating all transactions involving the receipt and disposition of
government funds & property, and interpreting the results thereof.
Books of Accounts and Registries
The books of accounts and registries of government entities consist of:

1. Journal 3. Registries
a. General Journal a. Registers of Revenue and Other Receipts
b. Cash Receipts Journal (RROR)
c. Cash Disbursements Journal b. Registry of Appropriations and Allotments
d. Check Disbursements Journal (RAPAL)
2. Ledgers c. Registries of Allotments, Obligations and
a. General Ledgers Disbursements (RAOD)
b. Subsidiary Ledgers d. Registries of Budget, Utilization and
Disbursements (RBUD)
1. Journals

a. General Journal - used to record transactions not recorded in the Special Journals.

"Special Journals“
b. Cash Receipts Journal - used to record the Report of Collection & Deposit & Cash Receipts
Register of collecting officers.
 Report of Collection & Deposit (RCD) - prepared by a collecting officer to
report his/her collections & deposits to an Authorized Government Depository Bank
(AGDB).
 Cash Receipts Register (CRReg) - used by field offices without a complete set
of books to record their cash collections & deposits in the books of their mother unit
(central/regional/division office).
c. Cash Disbursements Journal - used to record the cash disbursements of Disbursing
Officers.
d. Check Disbursement Journal - used to record the check disbursements of the Disbursing Officers
2. Ledgers

a. General Ledgers - summarizes all transactions recorded in the journals. Accounts in

the general ledger
are arranged according to their sequence in the Revised Chart of Accounts.
b. Subsidiary Ledgers - show details of each control account in the general ledger.
 3. Registries

 Registries of Revenue & Other Receipts (RROR) - used to monitor the budgeted amounts,
actual collections & remittances of revenue & other receipts.
 Registry of Appropriations & Allotments (RAPAL) - used to monitor appropriations &
allotments. This is to ensure that allotments will not exceed appropriations.
 Registries of Allotment, Obligations & Disbursement (RAOD) - used to monitor the
allotments received, obligations incurred against the corresponding allotment & the actual
disbursements made. This is to ensure that obligations incurred will not exceed allotments while
actual disbursements will not exceed the obligations incurred.

Separate RAOD of shall be maintained for each object of expenditure.

 Registries of Budget, Utilization and Disbursements (RBUD) – used to record the
approved special budget and corresponding utilization and disbursements charged to retained
income. Separate RBUDs are also maintained for each object of expenditure.
Object of expenditure

a. Personnel Services (PS) - pertain to all types of employee benefits, e.g., salaries, bonuses,
allowances, cash gifts, etc.
b. Maintenance and Other Operating Expenses (MOOE) - pertain to various operating
expenses other than employee benefits and financial expenses, e.g.,
travel, utilities, supplies, etc.
c. Financial Expenses (FE) - pertain to finance costs, e.g., interest expense, bank charges, etc.
Financial expenses also include losses on foreign exchange
transactions.
d. Capital Outlays (CO) - pertain to capitalizable expenditures, e.g., expenditures on the
construction of public infrastructures, acquisition costs of equipment, etc.
 Summary of Basic Recordings

g. Billings, RROR, Accounts receivable xxx

Recording in: Collections & RCD/CRReg Cash -CO xxx
Transaction NNN Remittances
Cash -CO xxx
Registries & Other Records Journal & Ledger Accounts receivable xxx

a. Appropriation RAPAL NONE Cash –Treasury/Agency xxx

Deposit, regular xxx
b. Allotment RAPAL & appropriate RAODs NONE Cash - CO xxx
h. Reversion of RANCA
c. Incurrence of ORS & appropriate RAODs NONE Unused NCA
Obligation
d. NCA RANCA Cash -MDS, regular xxx
Subsidy from NG xxx
e. Disbursement updating of ORS & appropriate Expense/Asset xxx
RAODs Payable xxx

Payable xxx
Cash-MDS, regular xxx
f. Tax Remittance Advice updating of ORS & appropriate Cash -TRA xxx
(used for remittance of RAODs Subsidy from NG xxx
taxes withheld)
Due to BIR xxx
Cash - TRA xxx
The Revised Chart of Accounts

Chart of accounts ➡ list of all the accounts used by an entity.

Government entities shall use the account titles and account codes in the Revised Chart of
Accounts (RCA) issued by the COA. Each account in the RCA is assigned an 8-digit code as
follows:
Code Account Groups
1 Assets
2 Liabilities
3 Equity
4 Income
5 Expenses
The Government Accounting Cycle

Overview of the accounting cycle of a government entity. Here are the list of the things
that will be learning:

1. Appropriation
2. Allotment
3. Incurrence of Obligation
4. Disbursement Authority - NCA
5. Disbursements
6. Billings, Collections & Remittances
7. Unadjusted trial balance
8. Adjusting entries
9. Closing entries
10. Preparation of financial statements
1. Appropriation
The appropriation is posted (recorded) in the Registry of Appropriation and Allotments
(RAPAL).

2. Allotment
The allotment is posted (recorded) in the Registry of Appropriation and Allotments (RAPAL)
and Registries of Allotment, Obligations and Disbursements (RAOD).

3. Incurrence of Obligation
The obligations are posted (recorded) in the Obligation Request and Status (ORS) and
Registries of Allotment, Obligations and Disbursements (RAOD).

4. Disbursement Authority – NCA

5. Disbursements

I. Personnel Services
II. Maintenance and Other Operating Expenses (MOOE)
III. Capital Outlays (CO)
IV. Remittances of Tax Withheld
Common Fund System

To maximize the valuable NCAs of the agency, the Common Fund System policy shall be
adopted whereby cash allocation balances of agencies under the Regular MDS Account may
used to cover payment of current year’s accounts payable, I.e., goods and services which
have been delivered and accepted during the year charged against appropriations of prior
year/s, after satisfying their regular operating requirements as reflected in their Monthly Cash
Program. (GAM for NGAs, Chapter 6, Sec.3)