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    Commission On Audit:: Government Accounting Manual (Gam) Pointers CA51027

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    Carl Dhaniel Garcia Salen
    The document summarizes the key aspects of government accounting in the Philippines according to the Government Accounting Manual. It outlines the authority of the Commission on Audit to define accounting and auditing rules. It also describes the budget process from preparation to execution to accountability. Finally, it details the financial reporting system and accounting records maintained by different government entities according to the GAM.

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    Download as PDF, TXT or read online from Scribd

    Commission On Audit:: Government Accounting Manual (Gam) Pointers CA51027

    Uploaded by

    Carl Dhaniel Garcia Salen
    224 views4 pages
    The document summarizes the key aspects of government accounting in the Philippines according to the Government Accounting Manual. It outlines the authority of the Commission on Audit to define accounting and auditing rules. It also describes the budget process from preparation to execution to accountability. Finally, it details the financial reporting system and accounting records maintained by different government entities according to the GAM.

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    GAM_Summary Notes

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    The document summarizes the key aspects of government accounting in the Philippines according to the Government Accounting Manual. It outlines the authority of the Commission on Audit to define accounting and auditing rules. It also describes the budget process from preparation to execution to accountability. Finally, it details the financial reporting system and accounting records maintained by different government entities according to the GAM.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    224 views4 pages

    Commission On Audit:: Government Accounting Manual (Gam) Pointers CA51027

    Uploaded by

    Carl Dhaniel Garcia Salen
    The document summarizes the key aspects of government accounting in the Philippines according to the Government Accounting Manual. It outlines the authority of the Commission on Audit to define accounting and auditing rules. It also describes the budget process from preparation to execution to accountability. Finally, it details the financial reporting system and accounting records maintained by different government entities according to the GAM.

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    GOVERNMENT ACCOUNTING MANUAL (GAM) Pointers CA51027

    A. Under Article IX-D Section 2 of the 1987 Constitution of the Republic of the Philippines,
    Commission on Audit:

    • shall have the exclusive authority, subject to the limitations in this Article, to define the
    scope of its audit and examination, establish the techniques and methods required
    therefore, and

    • promulgate accounting and auditing rules and regulations, including those for the
    prevention and disallowance of irregular, unnecessary, excessive, extravagant, or
    unconscionable expenditures, or uses of government funds and properties.

    • It shall also be responsible to keep the general accounts of the Government and, for such
    period as may be provided by law, preserve the vouchers and other supporting papers
    pertaining thereto.

    B. The Government Accounting Manual (prescribed by COA based on Philippine Public Sector
    Accounting Standards/PPSAS) aims to update the following:

    • Volume 1
    standards, policies, guidelines and procedures in accounting for government
    funds and property

    • Volume 2
    accounting books, registries, records, forms, reports and financial statements

    • Volume 3
    coding structure and accounts

    C. Government Budget refers to the income, expenditures and sources of borrowings of the
    National Government.

    D. Budget Preparation refers to the step in the government budgetary process wherein the
    President, through the assistance of the Department of Budget and Management, shall
    prepare and submit to the Congress a budget of expenditures and sources of financing,
    including receipts from existing and proposed revenue measures.
    -Budget Call
    -Proposed Projects, Program and Activities
    E. Budget Authorization refers to the step in the government budgetary process which
    involves the enactment by the Congress of the General Appropriation Act (GAA) based on
    the budget submitted by the President which cannot be increased by the Congress. The
    initiative for the enactment of the appropriation law shall come from the House of
    Representatives.
    -Budget Hearing in Congress
    -Appropriation is the authorization to use the national fund based on approved budget

    F. Budget Execution refers to the step in the government budgetary process which involves
    the implementation of the general appropriation act which includes the release of revenue
    allotment under the supervision of the Department of Budget and Management.
    -Allotment is the authorization to enter into contracts and incur a liability. Allotment must
    not exceed what was appropriated.
    -Notice of Cash Allocation is a document issued by DBM regarding the authority to
    withdraw funds deposited by the Bureau of Treasury within a specified period.

    G. Budget Accountability refers to the step in the government budgetary process which
    involves the submission of proper documentary reports by responsible officers, liquidation of
    expenditures and audit conducted by Commission on Audit to ensure the public funds
    are spent in accordance with the appropriation act.

    H. Under the Government Accounting Manual (GAM), the financial reporting system of the
    Philippine government consists of accounting system on accrual basis and budget
    reporting system on budget basis under the statutory responsibility of the National
    Government Agencies (NGAs), Bureau of the Treasury (BTr), Department of Budget and
    Management (DBM), and the Commission on Audit (COA).

    I. Each entity of the National Government (NG) maintains a complete set of accounting books
    by fund cluster which is reconciled with the records of cash transactions maintained by the
    BTr.

    J. The BTr accounts for the cash, public debt and related transactions of the NG.

    K. Each entity maintains budget registries which are reconciled with the budget records
    maintained by the DBM and the Government Accountancy Sector (GAS), COA.
    L. The Government Accounting Manual enumerates the components of the General Purpose
    Financial Statements of National Government Agencies:
    • Statement of Financial Position
    • Statement of Cash Flows
    • Statement of Financial Performance
    • Statement of Changes in Net Assets/Equity
    • Notes to Financial Statements
    • Statement of Comparison of Budget and Actual Amounts

    M. The books of accounts of National Government Agencies under the GAM shall consist of
    the following:
    • General Journal
    • Cash Receipts/Disbursement Journal
    • Check Disbursements Journal
    • General Ledgers
    • Subsidiary Ledgers

    N. Registries are used for monitoring purposes

    O. Registries of Revenue and Other Receipts (RROR) refers to the registry maintained by the
    NGA unit to monitor the revenue and other receipts estimated/budgeted, collected and
    remitted/deposited.

    expect – collect – remit

    P. Registries of Appropriations and Allotments (RAPAL) refers to a registry maintained by


    the NGA unit to show the original, supplemental and final budget for the year and all
    allotments received charged against the corresponding appropriation.

    Approved budget – authorization to use – authorization to incur

    Q. Registries of Allotments, Obligations and Disbursements(RAOD) refers to a registry


    maintained by the NGA unit to show the allotments received for the year, obligations
    incurred against the corresponding allotment and the actual disbursements made.

    Authorization to incur – commitment/signing of contract - payment


    R. Registries of Budget, Utilization and Disbursements (RBUD) refers to registry
    maintained by NGA unit to record the approved special budget and the corresponding
    utilizations and disbursements charged to retained income authorized under the law and
    other retained income collection of a national government agency with similar authority.

    Approved special budget – related use - payment

    S. The following are the classifications of different object of expenditures: •


    RAPAL/RAOD/RBUD – Personnel Services (salary, benefits, wages of government
    employees)

    • RAPAL/RAOD/RBUD – Maintenance and Other Operating Expenses (supplies, utilities,


    rent, repairs)

    • RAPAL/RAOD/RBUD – Financial Expenses (bank charges, interest expense, commission)

    • RAPAL/RAOD/RBUD – Capital Outlays (land, building, furnitures, equipment)

    T. The period of validity of Notice of Cash Allocations (NCAs):

    • NCA issued and credited to the Regular MDS Sub-Accounts of agencies/OUs for their
    regular operations, shall be valid until the last working day of the 3rd month of that
    quarter pursuant to DBM Circular Letter (CL) No. 2013-12.

    • NCA issued and credited to the Special MDS Accounts of agencies specifically for
    payment of RG/TL benefits shall be valid until the last working day of the following
    month when the NCA was issued, except when issued in December, pursuant to DBM
    Budget Circular No. 2013-1

    • NCA issued to the BTr for working funds of agencies shall be valid until the last working
    day of the year.

    -end of reminders-

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