CHAPTER 1

GENERAL PROVISIONS, BASIC STANDARDS and POLICIES

Government Accounting Defined (Section 109 of PD 1445) - encompasses the processes of analyzing, recording, classifying, summarizing
and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results
thereof.

Private Sector Accounting - is the art of recording, classifying, and summarizing in a significant manner and in
terms of money, transactions and events which are, in part at least of financial character, and interpreting the
results thereof.

DISTINCTIONS BETWEEN GOVERNMENT AND COMMERCIAL ENTER RISES

1. Ownership
2. Purpose
3. Organization
4. Financing
5. Income

OBJECTIVES OF GOVERNMENT ACCOUNTING

1 .To provide quantitative information concerning past operations and present conditions.
2. To provide a basis for guidance for future operations.".
3. To provide for control of the account of public entities and offices in the receipt, disposition and utilization funds and properties,
4. To report on the financial position and the result of the operations of the government agencies for the information of all persons
concerned.

Commission on Audit (COA), under the Article IX-D, Sec 2, par. 2 of the 1987 Constitution :

- Prescribed Government Accounting Manual ( GAM )for National Government Agencies ( NGA’s ).

- LEGAL BASIS : Article IX-D, Sec 2, par. 2 of the 1987 Constitution

- Coverage. This Manual presents the basic accounting policies and principles in accordance with the
Philippine Public Sector Accounting Standards (PPSAS) adopted thru COA Resolution No. 2014-003 dated
January 24, 2014 and other pertinent laws, rules and regulations. It includes the Revised Chart of
Accounts (RCA) prescribed under COA Circular No. 2013-002 dated January 30, 2013, as amended; the
accounting procedures, books, registries, records, forms, reports, and financial statements; and
illustrative accounting entries. It shall be used by all National Government Agencies (NGAs) in the:

a. preparation of the general purpose financial statements in accordance with the PPSAS
 and other financial reports as may be required by laws, rules and regulations; and

b. reporting of budget, revenue and expenditure in accordance with laws, rules and
regulations.

- Objective of the Manual. The Manual aims to update the following:

a. standards, policies, guidelines and procedures in accounting for government funds

and property;

b. coding structure and accounts; and

c. accounting books, registries, records, forms, reports and financial statements.

PUBLIC SECTOR ACCOUNTING STANDARD BOARD ( PSASB )- assist the COA in formulating and implementing
Philippine Public Sector Accounting Standards

ACCOUNTING RESPONSIBILITY
- emanates from the Constitution and its governing laws, rules and regulations.

Offices Charged with Accounting Responsibilty:

1. Commission on Audit (COA)

- keeps the general account of the government
- promulgates accounting rules and regulations
- submits to the president and congress an annual report of the Government, Subdivisions, agencies and
instrumentalities, including GOCC’s within the time fixed by law ( not later than the last day of September
each year )

2. Department of Budget and Management (DBM)

- responsible for the formulation and implementation of the National Budget with the goal of attaining
our national socio- economic plans and objectives.

3. Bureau of Treasury (BTr)

- Authority:

a. Receive and keeps national funds, manage and control the disbursements thereof.
 b. Maintain accounts of financial transactions of all national government offices, agencies
and instrumentalities.

4. National Government Agencies

- Required by law to have accounting units/ division / departments

- Maintains:

1. Registry of Revenue and Other Receipts- Summary ( RRORS )

- monitor the revenue and other receipts estimated/budgeted, collected and remitted/deposited for
each fund cluster maintained by the entity.

2. Registry Of Revenue and Other Receipts- Regular Agency and Foreign Assisted Projects Fund ( RROR-
RA & FAP )
- fund clusters maintained :
a. Regular Agency Fund
b. Foreign Assisted Project Funds

3. Registry Of Revenue and Other Receipts- Special Account Locally Funded/ Domestic Grants Fund and
Special Account Foreign Assisted/ Foreign Grant Funds ( RROR-SADFGF )

4. Registry Of Revenue and Other Receipts- Internally Generated Funds( Off- Budgetary Funds-
Retained Income Funds ) / Business Related Funds ( RROR- IGF/ BRF )

5. Registry Of Revenue and Other Receipts- Trust Receipts/ Inter- Agency Transferred Funds ( RROR-
TR/IATF )
6. Registry Of Appropriation And Allotments ( RAPAL )
- monitor appropriations and allotments
-show the original, supplemental, and final budget for the year and all allotments received charged
against the corresponding appropriation.

7. Registry Of Allotments, Obligations And Disbursements – Personnel Services (RAOD- PS )

- RAOD shall show the allotment received for the year, obligations incurred and actual disbursements
 made.

8. Registry Of Allotments, Obligations And Disbursements – Maintenance and Other Operating

Expenses ( RAOD-MOOE)

9. Registry Of Allotments, Obligations And Disbursements – Financial Expenses (RAOD – FE )

10. Registry Of Allotments, Obligations And Disbursements – Capital Outlays (RAOD–CO )

11. Registry Of Budget, Utilization and Disbursements – Personnel Services ( RBUD-PS)

- RBUD shall be used to record the approved special budget and the corresponding utilizations and
disbursements charged to retained income authorized under RA 8292 for State Universities and
Colleges ( SUCs) and NGA with similar authority.

12. Registry Of Budget, Utilization and Disbursements – Maintenance and Other Operating Expenses (
RBUD-MOOE)

13. Registry Of Budget, Utilization and Disbursements – Financial Expenses ( RBUD-FE)

14. Registry Of Budget, Utilization and Disbursements – Capital Outlays ( RBUD-CO)

15. Registry Of Allotments And Notice Of Cash Allocation (RANCA)

- determine the amount of allotments not covered by NCA and to monitor available NCA

16. Registry Of Allotments And Notice Of Transfer Of Allocation ( RANTA ).

- determine the amount of allotments not covered by NTA and to monitor available NTA