Government Accounting  The unlawful use of government

resources shall be the personal liability

Government Accounting of the employee found to be directly
 Places greater emphasis on: responsible therefor.
o Source and utilization of  No accountable officer shall be relieved
government funds from liability merely because he has
o Responsibility, accountability, acted under the direction of a superior
and liability of entities officer, unless before that act, he has
entrusted with government notified the superior officer, in writing,
funds and properties that the utilization is illegal. The
 Sources of government funds: receipt superior officer shall be primarily liable
from taxes and other fees, borrowings, while the accountable officer who fails
and grants from other governments and to serve the required notice shall be
international bodies secondarily liable.
 Utilization of government funds:  An accountable officer shall
expenditures on programs, projects, immediately notify the COA for any loss
unanticipated losses from calamities of government funds from unforeseen
and the like events within 30 days.
 Taxes are the main source of funds of
the government. Accounting responsibility
 Offices charged with government
Responsibility over Government Funds or accounting responsibility:
Property o Commission on Audit (COA)
 Head of government agency o Department of Budget and
o Directly responsible in Management (DBM)
implementing this policy and o Bureau of Treasury (BTr)
primarily responsible for o Government agencies
government resources
entrusted to his agency Commission on Audit
 Has the exclusive authority to
Accountability over Government Funds or promulgate accounting and auditing
Property GAME rules and regulations
 A government officer entrusted with  Keeps the general accounts of the
the possession of government government, supporting vouchers, and
resources is responsible for the other documents
safekeeping thereof in accordance with  Submits financial reports to the
the law. President and Congress
 The transfer of government funds from
one officer to another shall, except as Department of Budget and Management (DBM)
allowed by law, be made only after the  Responsible for the formulation and
authorization of COA. implementation of national budget with
the goal of attaining the nation’s socio-
Liability over Government Funds or Property economic objectives
Bureau of Treasury (BTr) Basic Accounting and Budget reporting
 Cash custodian of the government principles
 Authorized to:  Philippine Public Sector Accounting
o Receive and keep national Standards (PPSAS) and relevant laws,
funds and manage and control rules and regulations
the disbursement  Accrual basis of accounting
o Maintain accounts of financial  Budget basis of presentation of budget
transactions of all national information in FS
government offices, agencies  Revised Chart of Accounts prescribed by
and instrumentalities COA
 Double-entry bookkeeping
Government agencies  FS based on accounting and budgetary
 Responsible in directly implementing records
the projects of, and performing the  Fund cluster accounting: separate
functions delegated by the government books and reports are prepared for
 Required by law to have accounting each type of fund held by the
units/divisions/departments. government entity
o Regular Agency Fund
GAM for NGAs o Foreign Assisted Projects Fund
 Promulgated primarily to harmonize the o Special Account-Locally
government accounting standards with Funded/Domestic Grants Fund
international accounting standards o Special Account-Foreign
 Promulgated by COA based on the Assisted/Foreign Grants Fund
authority conferred to it by the o Internally Generated Funds
Philippine Constitution o Business Related Funds
 Coverage: o Trust Receipts
o Preparing general purpose FS in
accordance with PPSAS Qualitative Characteristics of Financial
o Reporting of budgets, revenue Reporting
and expenditure in accordance  Understandability
with laws, rules and regulations o Users can reasonably be
 Objective: To update the expected to comprehend its
o Standards, policies, guidelines meaning
and procedures in accounting  Relevance
for government funds and o Information must be timely
property o It can assist users in evaluating
o Coding structure and accounts past, present or future events
o Accounting books, registries, or in conforming or correcting
records, forms, reports and FS past evaluation
 The principles are similar to the o To achieve a proper balance
principles in the PFRS. between relevance and
 Philippine Constitution: legal basis of reliability, the overriding
COA in promulgating GAM for NGAs consideration is how users’
needs are best satisfied
  Materiality o Statement of Cash Flows
o If its omission or misstatement o Statement of Comparison of
could influence the decision of Budget and Actual Amounts
users o Notes to FS
o Depends on nature or size of
the item or error
 Timeliness
 Reliability
o Free from material error and
bias, and can be depended on
by users to represent faithfully
that which it purports to
represent or could reasonably
be expected to represent
 Faithful representation
o It should be presented in
accordance with the substance
of the transactions and other
events and not merely their
legal form
 Substance over form
 Neutrality
o Free from bias
 Prudence
o Exercise of a degree of caution
when making estimates under
conditions of uncertainty
 Completeness
 Comparability
o Users are able to identify
similarities and differences
between that information

General Purpose FS
 Those intended to meet the needs of
users who are not in a position to
demand reports tailored to meet their
particular information needs
 Complete set consists of:
o Statement of Financial Position
o Statement of Financial
Performance
o Statement of Changes in Net
Assets/Equity