FEATURES OF THE

GOVERNMENT ACCOUNTING MANUAL
for NATIONAL GOVERNMENT AGENCIES

Philippine Association for Government Budget Administration (PAGBA), Inc.
1st Quarterly Seminar and Meeting
01 April 2016, Plaza Del Norte Convention Center, Laoag City

By:
LUZVI PANGAN CHATTO
Director IV
Accounting Systems Development and Other Services Office
Government Accountancy Sector
Commission on Audit
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GOVERNMENT ACCOUNTING MANUAL (GAM)
(For National Government Agencies)
OVERVIEW

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Presentation Outline

• Legal Basis
• GAM for NGAs
• Objective
• Summary of Contents
• Changes Adopted
• New Standards Adopted
• Budget and Financial Accountability Reports
• Responsibility Accounting
• Implementation strategy/plan
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(2). 1987 Philippine Constitution 4 . Section 2 par. Legal Basis Article 1X-D.

2016 • Capacity Building activities conducted from October to December 2015. : a PFM Reform • An activity of the Accounting and Auditing Reforms Project under the PFM Reform Roadmap • Prepared by a committee supervised by COA’s Philippine Public Sector Accounting Standards Board • Exposed to various stakeholders for comment/recommendation • Funded by a KfW Technical Assistance Fund • Approved by COA Commission Proper. 2015 • To be used effective January 1. through COA Circular No. 2015-007 dated October 22. January-March 2016 and being pursued in the 2nd Quarter of 2016 5 .

Records. Objective of the GAM Provides updates on the following: • Government Accounting Policies. Guidelines. Standards and Procedures • Coding Structure and Accounts • Accounting Books. Reports and Financial Statements • Accounting Journal Entries 6 . Registries. Forms.

The Budget Cycle BUDGET PREPARATION BUDGET BUDGET ACCOUNTABILITY APPROVAL BUDGET EXECUTION 7 .

92 Appendices 3 Chapters Acronyms  Accounting Standards and  Books. Contents of the GAM Volume I Volume II Volume III 22 Chapters. Registries. Records. 19 Annexes.  List of Accounts Policies Forms and Reports  Accounting  Codes and  Budget Descriptions of  Treasury Accounts  Property/Supply Management  Guidelines and Procedures  Instructions: How to Accomplish  Accounting  Budget  When/Where to Submit  Treasury  Property/Supply Management  Illustrative Accounting Entries  Sample Format of the FS 8 .

Disbursements Chapter 12 .General Provisions.Investment Property Chapter 4 – Responsibility Accounting Chapter 10 .Budget Monitoring and Reporting Chapter 9 .Revenue and Other Receipts Chapter 11 .Agriculture Chapter 6 . Plant and Equipment Chapter 5 .Inventories Chapter 3 .Financial Instruments Chapter 2 . GAM for NGAs Chapter 1 . Chapters in Volume 1.Introduction Chapter 7 . Basic Standards and Policies Chapter 8 .Property.Intangible Assets GAM for NGAs Slide 9 of 28 .

Interest in Joint Chapter 20 .Consolidated and Venture Separate Financial Statements Chapter 16 .Leases Liabilities and Contingent Assets Chapter 14 .Borrowing Costs Entries GAM for NGAs Slide 10 of 28 .The Effects of Changes in Foreign Exchange Chapter 21 .Bank Reconciliation Rates Chapter 22 .Illustrative Accounting Chapter 17 .Provisions. GAM for NGAs Chapter 18 . Contingent Chapter 13 . Chapters in Volume 1.Service Concession Arrangements: Grantor Chapter 19 .Financial Reporting Chapter 15 .

Statement of Financial 2. Statement of Comparison of Budget and Actual Amounts 6. Cash Flow Net Assets/Equity Statement 4. Statement of Cash Flow 2. Statement of Income Position and Expenses 2. Balance Sheet 1. Statement of Financial 3. Components of Four Six FS In addition to the above: 5. FS Title 1. Changes Adopted in the GAM Particulars NGAS Manual GAM 1. Statement of Changes in 4. Statement of Performance Government Equity 3. Notes to Financial Statements 11 .

Books Maintained Regular Agency Book By Fund Cluster and National Government Book 12 . September 20. 2014 COA Circular 2015-007. April 15. 2015 4. Changes Adopted in the GAM Particulars NGAS Manual GAM 3. October 22. 2004 January 30. COA Circular 2013-002. Chart of Accounts COA Circular 2004-008. 2013 COA Circular 2014-003.Unified Accounts None Compliant Code Structure (UACS) 5.

Estimated Useful Prescribed by COA Management Lives of PPE prerogative 7.000 and above 8. PPE Threshold None P15. Specific Identification 13 . Inventory Costing Moving Weighted Moving Weighted Average Average. Changes Adopted in the GAM Particulars NGAS Manual GAM 6.

Business Related Funds/Revolving Fund 07 . Fund One Fund Fund Clustering Maintenance Concept 01 .Internally Generated Funds/Retained Income Fund 06 .Trust Receipts 14 . Changes Adopted in the GAM NGAS Particulars GAM Manual 9.Regular Agency Fund 02 .Special Account-Foreign Assisted/Foreign Grants Fund 05 .Special Accounts-Locally Funded/Domestic Grants Fund 04 .Foreign-Assisted Projects Fund 03 .

Changes Adopted in the GAM Particulars NGAS Manual GAM 10.Cash Flow Direct Method Direct Method 11. Completed Public Derecognized Recognized Infrastructure 12. Statement of Financial Position Assets With Distinction Without distinction Current and Non-current With Distinction Liabilities Without distinction Current and Non-current 15 .

Changes Adopted in the GAM Particulars NGAS Manual GAM 17. Monitoring of None Section C of Obligation Obligation/Payment Request and Status (ORS) 19. Revenue 18. Accounting for Donation with conditionality Income Liability without conditionality Income Revenue with restriction . Residual value 10% At least 5% 16 .

Statement of Financial Form part of Income Not part of Revenue Performance from Current Operation Subsidies. Adjustment affecting Uses Prior Year’s Adjustment Direct adjustment to Government Equity account Equity 16. Impairment loss None Recognized 15. Changes Adopted in the GAM Particulars NGAS Manual GAM 13. Income Collection Without authority to use-BTr Recorded by NGAs With authority to use-NGAs 17 . Transfers 14.

Changes in Standards Accounting Estimates and Errors PPSAS 4-The Effects of Changes in Foreign Exchange Rates PPSAS 5-Borrowing Costs PPSAS 8-Interest in Joint Ventures PPSAS 9-Revenue from Exchange Transactions PPSAS 12-Inventories PPSAS 13-Leases 18 . New Standards Adopted Particulars NGAS Manual GAM 20. New none PPSAS 3-Accounting Policies.

Contingent Liabilities. Contingent Assets PPSAS 20-Related Party Disclosures PPSAS 21-Impairment of Non-Cash Generating Assets PPSAS 23-Revenue from Non-Exchange Transactions (Taxes and Transfers) PPSAS 24-Presentation of Budget Information in Financial Statements 19 . Plant and Equipment PPSAS 19-Provisions. New Standards Adopted Particulars NGAS Manual GAM 20. New none PPSAS 14-Events after the Reporting Date Standards PPSAS 16-Investment Property PPSAS 17-Property.

Recognition and Measurement. and Disclosures. 29 and 30-Financial Instruments (Presentation. New Standards Adopted Particulars NGAS Manual GAM 20. New none PPSAS 26-Impairment of Cash-Generating Standards Assets PPSAS 27-Agriculture PPSAS 28. respectively) PPSAS 31-Intangible Assets PPSAS 32-Service Concession Arrangements: Grantor 20 .

RAOMO. Changes Adopted in the GAM (Budget) Particulars NGAS Manual GAM 1. Registry of None New Revenue and other Receipts 21 . RAODCO. RBUD 2. RAOD (RAODPS. Registries RAOCO. RAODFE) RBU RAPAL. RAOFE RAODMO.Statement of None Additional component of Comparison of FS Budget and Actual Amounts 3. Maintenance of RAOPS.

1 • Summary of Appropriations. Budget and Financial Accountability Reports (BFARs) (COA-DBM-DOF Joint Circular No. Obligations. 2014) • Quarterly Physical Report of Operation (QPRO)-BAR No. as amended by COA-DBM Joint Circular No.1-A 22 . Obligations. 2014-1 dated July 2. Disbursements and Balances by Object of Expenditures (SAAODBOE)-FAR No. 2013-1. Allotments. 1 • Statement of Appropriations. Allotments. Disbursements and Balances (SAAODB)-FAR No.

2 (for Off-Budget Fund) • Summary of Approved Budget. Budget and Financial Accountability Reports (BFARs) (COA-DBM-DOF Joint Circular No. Disbursements and Balances(SABUDB)-FAR No. as amended by COA-DBM Joint Circular No. Utilizations. Utilizations. 2014) • List of Allotments and Sub-Allotments(LASA)-FAR No. 2013-1. Disbursements and Balances by Object of Expenditures(SABUDBOE)-FAR No. 2014-1 dated July 2. 2-A (for Off-Budget Fund) 23 . 1-B • Statement of Approved Budget.

4 • Quarterly Report of Revenue and Other Receipts (QRROR)- FAR No. 3 • Monthly Report of Disbursements(MRD)-FAR No. 2014) • Aging of Due and Demandable Obligations(ADDO)-FAR No. Budget and Financial Accountability Reports (BFARs) (COA-DBM-DOF Joint Circular No. as amended by COA-DBM Joint Circular No. 2013-1. 5 24 . 2014-1 dated July 2.

a part. segment. who is accountable for a specified set of activities 25 .Responsibility Accounting . unit or function of a government agency.a system that measures the plans (by budgets) and actions (by actual results) of each responsibility center Responsibility Center . headed by a manager.

Objectives of Responsibility Accounting • Charge/Credit all costs and revenues to the correct responsibility center • Provide basis for making decisions for future operations • Facilitate review activities • Monitor performance of each responsibility center • Facilitate evaluation of effectiveness of agency’s operations 26 .

GAM Implementation Strategy • Prepared courseware for uniformity in capacity building/training • Created and Trained Pool of GAM Trainers • Provision of technical assistance to users 27 .

2015  Customized training: o Trained 1. 2016 o Training to be conducted starting April 4 for other agencies (such as CHED. DOF. DILG. PSA. PCW. DOST) 28 . COA. OMB. SC. NHCP. LRA. Treasury and other Finance officials/personnel of NGAs as of December 31. Budget.359 Accounting. GAM Implementation Strategy • Capacity Building of users from October to December 2015. Budget. DBM. DND. BIR. CHR. BOI. Treasury and other Finance officials/personnel of 12 NGAs (DENR. DSWD. NCCA and OVP) – as of March 31. and 1st seminar of 2016 :  Regular courses: o Trained 1.577 COA Officials and auditors/personnel and Accounting. DOTC.

as necessary 29 . GAM Implementation Strategy • Continuous updating of the GAM through issuance of pertinent COA rules and regulations.

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