1.

Government Accounting Defined

Under Section 109, of the Presidential Decree (PD) no. 1445, defines Government Accounting
as one that encompasses the process of analyzing, classifying, summarizing and communicating
all transactions that are involved in the receipt and disbursement of all government funds and
properties, and interpreting the results thereof. In pursuant to this definition, objectives were set
to cover several areas in government operations.
The need for timely preparation of financial reports in government is necessary to evaluate the
performance of the different agencies of government. The result of the reports would indicate the
areas that may still need improvement, as well as come up with the budgetary requirements for
these agencies if needed.
Public officers are managers of funds, that are entrusted to them by the national government. The
financial reports would clearly show if the agencies are achieving what is mandated by them.
These reports would also show the extent in the use of agency assets and resources, as well as the
need for an additional infusion of funds if required.
The accounting data would show how the funds of government were used. This would also
reveal the inflow and outflow of funds and the need for stiffer fund management and control,
when necessary.

2. NATURE AND SCOPE:

NEW GOVERNMENT ACCOUNTING SYSTEM(NGAS)

(SECTION 2(2), ART. IX-D OF THE CONSTITUTION)

OBJECTIVES (SECTION 110, PD 1445 )

1. To produce information concerning past operations and present conditions;
2. To provide a basis for guidance for future operations;
3.To provide for control of the acts of public bodies and offices in the receipt, disposition
and utilization of funds and property;
4. To report on the financial position and the results of operations of gov't agencies for the
information and guidance of all persons concerned.
REASONS OF SHIFTING TO NGAS
1. Produce a system in conformity with IAS
2. Pursuit of computerization
- including responsibility accounting, thereby ensuring the generation of various reports
that are useful to management, lawmakers and the general public;
3. Generation of relevant and periodic financial statements;
4. Effective tool for managers and executives in effective and efficient monitoring of
Agency performance.

SCOPE:
Government Accounting encompasses the process of analyzing, recording, classifying, summarizing, and
communicating all transactions involving the receipt and disposition of government fund
and property, and interpreting the results thereof.
-Introduced basic policies, the new encoding system, the accounting systems, books,
registries, records, forms, reports and financial statements to be adopted by ALL
NATIONAL GOVERNEMENT AGENCIES in January 1, 2005.
*OLD GAS: uses manual system
OBJECTIVES
NGAS
ACCOUNTING RESPONSIBILITY
Commission on Audit (COA)
-keeps general accounts of the government
-promulgates rules and regulations
-submits to president and congress an annual report of the govt, subdivisions, agencies
and instrumentalities, & GOCCs. (not later than the last day of September)
*Authority:
- define scope
- establish techniques
- promulgates rules and regulations
- NO longer journalizes appropriation & allotment by DBM
Department of Budget and Management (DBM)
-responsible for formulation & implementation of Natl Budget w/ goal of attaining our
national socio-economic plans and objectives
-responsible for efficient & sound utilization of funds & revenues.
*Maintains:
-Registry of Appropriations (RAPAL)
-Registry of Special Purpose Fund Appropriations and Allotments (RESPFA)
-Registry of Allotments and Notice of Cash Allocagtion (RANCA)
-Control and monitoring of Notice of Cash Allocation releases
Bureau of Treasury (BOT)
* Authority:
-receive and keep national funds, manage and control the disbursements thereof
-maintain accounts of financial transactions of all national government offices, agencies
and instrumentalities.
* NGAS:
-maintain Registry of NCA and Replenishments (RENREP)
-monitoring bank transfers it makes in replenishing MDS accounts
Govt Agencies:
-Accounting personnel are under Head of Agency

- Accounting personnel responsibilities:

Maintain and keep accounts of agency
Provide advice on condition and status of appropriations and allotments
Develop and conduct procedures designed to meet needs
Journalize Notice of Cash allocation (NCA)
No longer journalize share in income of national govt
Maintain registries for allotments:
-Registry of allotments & obligations personal services (RAOPS)
-RAO Maintenance & Operating Expenses (RAOMO)
-RAO- Capital Outlay (RAOCO)
-RAO- Financial Expenses (RAOFE)
Govt Agencies:
Government Accounting vs Private Accounting
Government
Private Sector
- does not record stocks, debtors in the balance sheet (Statement of Assets and liabilities)
-focuses on the provision of adequate welfare to the people with probity, accountability,
legal and wise spending in mind.
-displays those items, and others such as sales, cost of goods sold and carriage
outward expenses (in the trading and profit and loss accounts).
-peculiar to commercial undertakings which maximization of profit is the main objective.
Private Sector
Government
-adopts modified cash and accrual basis of accounting
-operates predominantly fund accounting method in collating its data and information.
-adopts cash/ accrual basis
-uses the proprietary (or ownership) style which discloses the nature and sources of the
enterprise's finance or capital structure - ordinary share capital/ capital structure, such as
ordinary share capital and preference share capital.
BASIC FEATURES and POLICIES of NGAS
a. Accrual Accounting
1. Accrual Method - used by national government agencies when income is realized
(earned) during the accounting period regardless of cash receipt. Accounts receivable is set
up and the general or specific income accounts according to nature and classification are
credited.
2. Modified Accrual Under the modified accrual basis, income of an agency is recorded
as Deferred Credits to Income and the appropriate receivable account is debited. The
income account is recognized upon receipt of collection and the Deferred Credits to
Income account is adjusted accordingly.
3. Cash Basis - Cash basis of accounting shall be used for all other taxes, fees, charges and
other revenues where accrual method is impractical. The income account is credited upon
collection of the cash or its equivalent.

b. One Fund Concept

-done only when specifically required by law or by a donor agency or when otherwise
necessitated by circumstances
General fund.
-available for all functions of government.
3. General fund. This fund is used to account for general operations and activities not
requiring the use of other funds.
b. Special revenue (or special) funds are required to account for the use of revenue
earmarked by law for a particular purpose. State and federal fuel tax revenues require special
revenue funds, because federal and state laws restrict these taxes to transportation uses.
Special Purpose Fund
1. Miscellaneous Personal Fund
-used to cover personnel benefits which are not provided for in the regular budget of the
agency.
2. Calamity Fund
-used to cover relief, rehabilitation, reconstruction and other services in connection with
calamities that may occur during the budget year.
3. Organizational Adjustment Fund
- used to cover budgetary requirements of a newly created organization,
program/project/activity w/i an agency.

4. Books of Accounts

RESPONSIBILITY ACCOUNTING
Concepts of Responsibility Accounting:
A system that relates the financial results to a responsibility center, which provides access to cost
and revenue information under the supervision of a manager having direct responsibility for its
performance.
RESPONSIBILITY ACCOUNTING
-a part, segment, unit or function of a government agency, headed by a manager, who is
accountable for a specified test of activities.
1. Responsibility accounting involves accumulating and reporting data on revenues and costs o
the basis of the managers action.

2. Evaluation of managers performance.

3. Responsibility accounting can be used at every level of management in which conditions exist.
4. The reporting of costs and revenues under responsibility accounting differs from budgeting in
2 aspects:
a. A distinction between controllable and non- controllable.
b. Performance reports either emphasize or include only items controllable by individual
manager.
5. A responsibility reporting system involves the preparation of a report for each level of
responsibility.
6. Evaluation of a managers performance for cost centers.
3. Responsibility Center Code Structure
Regular Agency (RA) Books:
National Agency (RA) Books:
- record the receipt and utilization of Notice of Cash Allocation (NCA) and other
income/receipts which the agencies are authorized to use and to deposit with Authorized
Government Depository Bank (AGDB) and the National Treasury
Journals
Subsidiary Ledgers (SL)
-Cash
-Receivables
-Inventories
-Investments
-Property, Plant and Equipment
-Construction in Progress
-Liabilities
-Income
-Expenses
-Cash Receipts Journal (CRJ)
-Cash Disbursements Journal (CDJ)
-Check Disbursements Journal (CkDJ)
-General Journal (GJ)
Ledgers
-General Ledger (GL)
-Subsidiary Ledgers (SL)
-used to record income which the agencies are not authorized to use and are required to be
remitted to the National Treasury.

-Cash Journal (CJ)

-General Journal (GJ)
-General Ledger (GL)
-Subsidiary Ledger (SL)
*With the implementation of the computerized agency accounting system, only the
General Journal shall be used together with the ledgers by both books.
e. Financial Statements
-Balance Sheet
-Statement of Government Equity
-Statement of Income and
-Expenses
-Statement of Cash Flows
*Notes to Financial Statements shall accompany the above statements.
Balance Sheet
Statement of Income and Expenses.
- The Statement of Income and Expenses shows the results of operation/performance of
the agency at the end of a particular period. This statement shall be prepared by the
Accounting Unit from information taken directly from the Pre-Closing Trial Balance.
Statement of Government Equity
The Statement of Government Equity shows the financial transactions, which resulted to
the change in Government Equity account at the end of the year.
Statement of Cash Flows
-The Statement of Cash Flows is a statement summarizing all the cash activities of an
agency. This includes the operating, investing and financing activities of the entity and
provides information on the cash receipts and cash payments during the period. The
primary purpose of the Statement of Cash Flows is to give relevant information on the
agencys overall cash position, liquidity and solvency. Using the Statement of Cash Flows,
managers, investors and creditors could easily assess if the agency could meet its
obligations in operating, investing and financing activities
Notes to Financial Statements
-is a formal statement which shows the financial condition of the agency as of a certain
date. It includes information on the three elements of financial position - assets, liabilities
and government equity
- To be supported with the following schedules/statements:
-Schedules of Accounts Receivables (SAR)
-Schedules of Accounts Payables (SAP)
-Schedules of Public Infrastructures (SPI)
-Other schedules as may be required
1) Operating Activities
-involves the principal resources producing activities of the enterprise and other activities
that are not investing or financing (SFAS 22). Generally, these include the cash effect on
transactions that enter in the Income and Expense Summary account.
2) Investing Activities
-involves the acquisition and disposal of long-term assets and other investments not

included in cash equivalent (SFAS 22). These activities include cash transactions covering
non-operating assets, such as the purchase of property, equipment, short and long-term
investments and other non-current assets.
*Non-cash investing activities are not included in the statement of cash flows.
3) Financing Activities
-are derived from the equity capital and borrowings of the agency (SFAS 22). These
include cash transactions involving the government equity and non-operational liabilities.
Non-cash financing activities are not included in the statement of cash flows.
Cash flows from operating activities
Cash Inflows:
Receipt of Notice of Cash allocation (NCA) from the DBM
Receipt of Notice of Transfer of Allocation to Agency RO/OU from CO
Cash receipts from all sources of revenues
Receipt of Inter agency cash transfers (Due to)
Cash receipts from the sale of goods or rendition of services
Cash receipt of interest income, rental income, dividend income, etc.
Receipt of payment for liquidated damages
Receipt of refund of deposits
Receipt of refunds of cash advance or excess payments
Collection of receivables
Cash receipt of grants and donations
Receipt of cash dividends from enterprises (e.g. PLDT)

Cash Outflows:
Payments of accounts payable
Cash purchase of merchandise for sale
Cash advances granted for travel
Inter-agency transfers (Due from)
Notice of Transfer of Allocation to Agency RO/OU issued by the NGA Main Office to
RO/OU and/or attached agencies through Government Servicing Banks
Return of unused NCA
Cash payment for operating expenses
Remittance of taxes withheld not covered by TRA and other deductions (if any)
Cash purchase of supplies and equipment
Cash payment of retirement benefits
Cash payment of claims for damages
Cash payment for liabilities incurred in operations
Cash payments for interest

Cash flows from investing activities:

Cash Inflows:
Proceeds from sale of marketable stocks and bonds
Cash proceeds from the sale/disposal of equipment and other property, plant and
equipment
Redemption of long-term investments or repayment by GOCC/GFI of long-term loans
Cash Outflows:
Purchase of property, plant and equipment
Purchase of land
Investment in stocks/bonds
Investment in GOCC/GFI
Exposure as other long-term investments
Cash flows from financing activities:
Cash Inflows:
Cash received from domestic and foreign loans
Issuance of treasury bills
Cash Outflows:
Payment of domestic and foreign loans
Redemption of treasury bills outstanding
Payment of cash dividend
*The net increase in cash provided by operating activities, investing activities and
financial activities for the year, and the cash balance at the start of the year, shall equal the
cash balance at the end of the year. Such amount shall tally with the total cash account
shown in the balance sheet.
-Notes to Financial Statements are integral parts of financial statements, which pertain to
additional information necessary for fair presentation in conformity with generally
accepted accounting principles. These may explain the headings captions or amounts in
the statements of present information that cannot be expressed in money terms, and
description of accounting policies.
f. Two-Money Column Trial Balance
-balance showing the account balances shall be used.
OLD: four column
NGAS: similar to commercial accounting
g. Allotment and Obligation
Allotment authorization issued by DBM to an agency to incur obligation up to a
specified amount
Obligation commitment by a govt agency which binds govt to immediate payments of
money.
NGAS: Allotments RAOCO, RAOMO, RAOPS, RAOFE

Classes of allotments
Registry of Allotments and Obligations - Capital Outlay (RAOCO)
Registry of Allotments and Obligations - Maintenance and Other Operating Expenses
(RAOMO)
Registry of Allotments and Obligations - Personal Services (RAOPS)
Registry of Allotments and Obligations- Financial Expenses (RAOFE).
h. Notice of Cash Allocation
-receipt of NCA by the agency shall be recorded in the books as debit to account CashNational Treasury, Modified Disbursement System (MDS) and credit to account
Subsidy Income from National Government.
Entry:
Cash-National Treasury, Modified Disbursement System XX
Subsidy Income from National Government XX
i. Financial Expenses
NGAS:
Financial expenses such as bank charges, interest expenses, commitment charges and other
related expenses shall be separately classified from Maintenance and Other Operating
Expenses (MOOE).
OLD:
recognized under Maintenance and other operating expenses (MOE)
j. Perpetual Inventory of Supplies and Materials
-Supplies and materials purchased for inventory purpose shall be recorded using the
perpetual inventory system.
-Regular purchases shall be coursed thru the inventory account and issuances thereof shall
be recorded as they take place except those purchased out of Petty Cash Fund which shall
be charged directly to the appropriate expense accounts.

k. Valuation of Inventory
- Cost of ending inventory of supplies and materials shall be computed using the moving
average method.
l. Maintenance of Supplies and PPE Ledger Cards
Accounting units of agencies shall maintain:
-Supplies ledger cards/stock cards by stock number
-Property, Plant and Equipment Ledger Cards/Property Cards by category of PPE

m. Construction of Assets
Construction of Theory shall be applied:
n. Registry of Public Infrastructures/Registry of Reforestation Projects
RPI/RRP shall be maintained for each specific infrastructure/reforestation project.
Examples:
Registry of Public Infrastructure-Bridges (RPIB)
Registry of Public Infrastructure-Roads(RPIR)
Registry of Public Infrastructure-Parks (RPIP)
o. Depreciation
-Straight Line Method
-Starts on the 2nd month after purchase
-10% of purchase cost=residual value
* Public Infrastructure/Reforestation Projects as well as serviceable assets that no longer
being used shall not be charged any depreciation.
p. COA Circular No. 2003-007Dec. 11,2003
q. Reclassification of Assets
Other Assets
-Serviceable assets no longer used
-Obsolete assets
-Unserviceable assets
r. Allowance for Doubtful Accounts
Set-up Estimated Uncollectible trade receivables
A/R xx
Est. Uncoll. t/r xx
* Provided only to Trade Receivables
s. Recognition of Liability
Recognized if:
-Goods are accepted
-Services are rendered
-Supplier/Creditor bills are received
t. Interest Accrual
u. Accounting for Borrowings and Loans
v. Elimination of Corollary and Negative Journal Entries

b) Loans Payable long term, Foreign

used to record long term indebtedness (in cash or in kind) from foreign governments or
international financial institutions evidenced by a contract or an agreement
JE:
Loans Payable Long term, Foreign XX
Cash XX
To record the payment for a liability account.
-All borrowings and loans are recorded under the appropriate liability accounts which
includes:
a) Loans Payable long term, Domestic
- used to record long term indebtedness (in cash or in kind) from domestic creditors
evidenced by a contract or an agreement
JE: Loans Payable Long term, Domestic XX
Cash XX
To record the payment for a liability account.
Corollary Entries:
Under Old Government accounting system:
Corollary entry arises from the operation of obligation accounting (Inventories, supplies
and materials, Fixed assets and long term investments)
Under Obligation accounting:
Cost acquiring inventories and those enumerated above are direct charges appropriations.
Acquired assets are entered in the books of accounts by corollary entry made at the time of
obligation and/or actual receipt of asset
1. To record obligations for the purchase of fixed asset.
Appropriation allotted/Expenditures XX
Obligations Incurred XX
*Corollary entry:
Fixed assets In transit XX
Invested surplus Purch/ or Const XX
2. To liquidate obligation.
Obligation liquidated XX
TAAC - check disbursements XX
*Corollary entry:
Fixed assets General public service XX
Fixed assets In transit XX
w. Petty Cash Fund
-Under Imprest system
-All replenishments shall be directly charged to the expense account
PCF shall be equal to total Cash on Hand and the unreplenished expenses

-Restricted for the use to purchased regular inventory/items for stock

Establishment of PCF (Regular or Special Disbursing Officers)
-Shall only be used for petty or miscellaneous authorized expenditures(cannot be paid by
check)
To Set up Petty Cash:
Petty Cash fund XX
Cash National treasury XX
To record replenishments:
Office supplies expense XX
Traveling Expenses XX
Cash National Treasury MDS XX

To record the Liquidation of expenses:

Office Supplies Expenses XX
Traveling Expense Local XX
Petty Cash Fund XX
To record unused PCF:
Cash Collecting Officer XX
Petty Cash Fund XX
x. Foreign Currency Adjustments
Cash deposits in foreign currency and outstanding foreign loans(computed at the exchange
rate prescribed by BSP at the balance sheet)
Total cash deposit and foreign loans payable shall be adjusted at the end of each month
and any gain or loss on foreign exchange shall be recognized
Liability shall be expressed both in the Foreign and local currency
5. Chart of Accounts and Account Codes
Accounts Account Codes
Assets 100-299
Asset Contra Accounts 300-399
Liabilities 400-499
Equity 500-599
Revenue/Income 600-799
General Income Accounts 600-699
Specific Income Accounts 700-799
Expenses 800-960
Personal Services 801-830
Maintenance and Other 831-950
Operating Expenses

Financial Expenses 951-960

-consists of three-digit codes grouped as follows
ASSETS
Current Assets
For the rest of the Chart of Accounts, Refer to Section 9.
Cash
101 Cash in Treasury
102 Cash National Treasury, Modified Disbursement System (MDS)
103 Cash Bangko Sentral ng Pilipinas
105 Petty Cash Fund
106 Cash Collecting Officers
107 Cash Disbursing Officers
110 Cash in Bank Local Currency, Current Account
111 Cash in Bank Local Currency, Savings Account
112 Cash in Bank Local Currency, Time Deposits
113 Cash in Bank Foreign Currency, Current Account
114 Cash in Bank Foreign Currency, Savings Account
115 Cash in Bank Foreign Currency, Time Deposits
6. Budget Procedure
Government budgeting is the critical exercise of allocating revenues and
borrowed funds to attain the economic and socia l goals of the country. It also
entails the management of government expenditures in such a way that will
create the most economic impact from the production and delivery of goods
and services while supporting a healthy fiscal position.
Government budgeting is important because it enables the government to plan
and manage its financial resources to support the implementation of various
programs and projects that best promote the development of the country.
Through the budget, the government can prioritize and put into action its
plants, programs and policies within the constraints of its financial capability
as dictated by economic conditions.
Budgeting for the national government involves four (4) distinct processes or
phases :
budget preparation, budget authorization, budget execution
and
accountability
.
While distinctly separate, these processes overlap in the implementation
during a budget year.
Budget preparation for the next budget year proceeds while government
agencies are executing the budget for the current year and at the same time
engaged in budget accountability and review of the past year's budget.

The preparation of the annual budget involves a series of steps that begins
with the determination of the overall economic targets, expenditure levels,
revenue projection and the financing plan by the Development Budget
Coordinating Committee (DBCC). The DBCC
is an inter-agency body composed
of the DBM Secretary as Chairman and the Bangko Sentral Governor, the
Secretary of the Department of Finance, the Director General of the National
Economic and Development Authority and a representative of the Office of the
President as members. The major activities involved in the preparation of the
annual national budget include the following:
a.
Determination of overall economic targets, expenditure levels and budget
framework by the DBCC;
b.
Issuance by the DBM of the Budget Call which defines the budget
framework; sets economic and fiscal targets; prescribe the priority thrusts
and budget levels; and spells out the guidelines and procedures, technical
instructions and the timetable for budget preparation;
c.
Preparation by various government agencies of their detailed budget
estimates ranking programs, projects and activities using the capital
budgeting approach and submission of the same to DBM;
d.
Conduct a budget hearings were agencies are called to justify their
proposed budgets before DBM technical panels;
e.
Submission of the proposed expenditure program of
department/agencies/special for confirmation by department/agency
heads.
f.
Presentation of the proposed budget levels of department/agencies/special
purpose funds to the DBCC for approval.
g.
Review and approval of the proposed budget by the President and the
Cabinet;
h.
Submission by the President of proposed budget to Congress.
To meet the Constitutional requirement
for the submission of the President's
budget with 30 days from the opening of each regular session of Congress, the
budget preparation phase is guided by a budget calendar.

7. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) (MOOE

Expense Code 200) This account includes Traveling expenses, communication
services, repair and maintenance, transportation services, supplies and materials,
water, illumination and power services, chalk allowance, auditing services, training
and seminar expenses. For purchase of supplies, items should not exceed P10, 000.00
as prescribed by COA.
MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) USES OF
SCHOOL MOOE To pay expenses for utilities (e.g. electric and water expenses);
To procure school supplies necessary in classroom teaching; To pay salaries for
janitorial and security services; and To use for other mandatory expenditures except
for the procurement of textbooks and other instructional materials, and school
furniture and equipment.
LEGAL BASES a. Department of Budget and Management (DBM) and DepEd Joint
Circular No. 2004-1 dated January 01, 2004 entitled Guidelines on the Direct Release of
Funds to DepED-Regional Offices and Implementing Units; b. Section 10, Republic Act
No. 9155 (Governance of Basic Education Act of 2001) which provides that the
appropriations intended for the regional and field offices (elementary/secondary schools
and schools division offices) are to be allocated directly and released immediately by the
DBM to the said offices; and
MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Traveling
Expenses This account includes expenses incurred in the movement of persons whether
employed in the government or not, such as transportation, subsistence, lodging and travel
per diems, hire and guides or patrol; transportation of personal baggage or household
effects; bus, railroad, airline and steamship fares, tips, transfers, etc., of persons while
traveling abroad; charter of boats, launches, automobiles, etc., road tolls, parking fees and
all other similar expenses.
8. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Auditing
Services This account includes the amount remitted to the Commission on Audit for
auditing services rendered to the agency. Training and Seminar Expenses This account
includes expenses incurred for participation / attendance of personnel to training and
seminars / workshops.
9. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)
Communication Services This account includes expenses for communication of
messages such as telephone (landline and mobile), internet expenses, wireless and cable
charges, satellite and tolls, postage charges and rent of post office boxes.
10. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Repair and
Maintenance of Government Facilities This account includes cost of repairing and
maintaining government facilities such as public buildings, roads, bridges, irrigation
systems, river control and sea protection works, artesian wells, water supply systems,
telegraph lines, radio stations, wharves and other public structures.

11. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Repair and

Maintenance of Government Vehicles This account includes the cost of repairing and
maintaining government vehicles. Not included herein are spare parts, gasoline and oil
which shall be under Supplies and Materials.
12. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Supplies
and Materials This account includes the cost of all expendable commodities acquired or
ordered for immediate use in connection with government operations. Office Supplies
Expenses Medical, Dental and Laboratory Supplies Expenses Military, Police and
Traffic Supplies Expenses School Supplies Expenses Fuel, Oil and Lubricants
Expenses Maintenance Supplies Expenses Other Supplies Expenses and other
expendable property consumed in a function, activity or office.
13. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Rents This
account includes charges for the use of facilities or equipment belonging to others.
Examples of these facilities and equipment: offices and grounds, quarters of personnel,
arsenal, barracks, warehouses, schoolhouses, office machines, road and other maintenance
equipment.
14. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Grants,
Subsidies and Contributions This account includes all aids and contributions in the
form of cash or property granted to people, entities or organizations for the purpose of
furthering programs or policies adjudged to be in the interest of the government. Examples
are: aid for educational purposes, for public health and sanitation and for construction, aid
to cultural minorities and contributions to economic development projects.
15. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Water,
Illumination and Power Services This account includes the cost of water and
electricity or gas illumination consumed in government facilities.
16. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Fidelity
Bond and Insurance Premiums This account includes expenses for premiums on
fidelity bond of accountable officials and insurance premiums of government properties
such as government buildings, equipments, motor vehicles etc.
17. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Other
services This account includes the cost of all other services which are not otherwise
classified under other accounts. Examples are: repairs and maintenance of equipment
when done by other government agencies or by private contractors; printing and binding;
subscription, money order fees, meal and transportation or motor vehicle allowance for
overtime work and election expenses.
18. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) Petty cash
is a small amount of discretionary funds in the form of cash used for expenditures where it
is not sensible to make any disbursement by cheque, because of the inconvenience and
costs of writing, signing and then cashing the cheque.

8. Department of Budget and Management (DBM) is the department responsible for the
planning and implementation of the National Budget for the sound utilization of government
funds in achieving the national governments agenda on reform and growth. The DBM is
tasked to monitor all government allotments and appropriations through maintenance of
registries for better control and monitoring.
9. Commission on Audit (COA) - as mandated by the 1987 Constitution, the COA shall have
the exclusive authority to - do audit and examination, establish audit techniques, implement
accounting rules and regulations, that includes disallowances on the use of government funds
and properties.
10. The Bureau of Treasury or BTr is one of four bureaus under the Philippines' Department of
Finance. The BTr is mandated to 1) assist in the formulation of policies on borrowing,
investment and capital market development; 2) formulate adequate operational guidelines for
fiscal and financial policies; 3) assist in the preparation by government agencies concerned of an
annual program, for revenue and expenditure targets, borrowing levels and cash balances of
National Government; 4) maintain books of accounts of the NG cash transactions; 5) manage
cash resources of NG, collect advances made, and guarantee and forward cover fees due NG; 6)
control and service NG public debt, both foreign and domestic; 7) issue, service, redeem
government securities for account of NG as may be authorized by the President pursuant to law.
The bureau is presently headed by the Treasurer, Omar T. Cruz.

11. Objectives of Government Accounting

To produce relevant financial information about past and present transactions of

government.

To serve as a basis for decision making for future operations

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.

12. Coding System

13. A Government-owned and controlled corporation (GOCC), sometimes with an "and/or",

is a term in the Philippines used to describe government-owned corporations that conduct both
commercial and non-commercial activity. Examples of the latter would be the Government
Service Insurance System, a social security system for government employees. There are over
200 GOCCs.[2] GOCCs both receive subsidies and pay dividends to the national government.