Overview of Government Accounting Chapter 1 Overview of Government Accounting Learning Objectives 1. Differentiate government accounting from the accounting for business entities. 2. State the government entities. charged with accounting responsibility. 3. Describe briefiy the GAM for NGAs. State the basic principles used in government accounting. 5. State the recognition criteria for assets. > Introduction “Government accounting 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.” (State Audit Code of the Philippines, P.D. No. 1445, Sec. 109) The objectives of government accounting are: o a) To produce information concerning past operations and present conditions; b) To provide a basis for guidance for future operations; c) To provide for control of the acts of public bodies and officers in the receipt, disposition and utilization of funds and property; and d) To report on the financial position and the results of operations of government agencies for the information of all persons concerned. (P.D. No. 1445, Sec. 110)Chapter 1 Like the accounting for business entities, government accounting is also a process of producing information that is useful in making economic decisions. Government accounting, however, places greater emphasis on the following: a. b. Sources and utilization of government funds; and Responsibility, accountability and liability of entities entrusted with government funds and properties. The sources of government funds include receipts from taxes and other’ fees, borrowings, and grants from other governments and international bodies. : The utilization of government funds includes expenditures on programs, projects, unanticipated losses from calamities and the like. Responsibility, Accountability and Liability over Government Funds and Property Responsibility over Government Funds and Property 1. 2. Government resources shall be utilized efficiently and effectively in accordance with the law. The head of a government agency is directly responsible in implementing this policy and is primarily responsible for government resources entrusted to his agency. Those who are entrusted with the possession of government resources are directly responsible to the head of the agency. All those who are exercising authority over a government agency shall share fiscal responsibility. (State Audit Code of the Philippines, P.D. No. 1445) Accountability over Government Funds and Property 1. ‘A government officer entrusted with the possession of government resources is responsible for the safekeeping| 3 Overview of Government Accounting therefor in accordance with the law. Every accountable officer shall be properly bonded. (P.D. No. 1445 and E.0. No. 292) 2. The transfer of government funds from one officer to another shall, except as allowed by law, be made only after the authorization of the COA. The transfer shall be properly documented in an invoice and receipt. (P.D. No. 1445) Liability over Government Funds and Property 1. The unlawful use of government resources shall be the personal liability of the employee found to be directly responsible therefor,‘ 2. Every accountable officer shall be liable for all losses resulting, from the unlawful use or negligence in the safekeeping of government resources. 3. No accountable officer shall be relieved from liability merely because he has acted under the direction of a superior officer in unlawfully utilizing the government resources entrusted to him, unless before that act, he has notified the superior officer, in writing, that the utilization js illegal. The superior officer shall be primarily liable while the accountable officer who fails to serve the required notice shall be secondarily liable. 4. An accountable officer shall immediately notify the COA for " any. loss of government funds from unforeseen events (force majeure) within 30 days. Failure to do so will not relieve the officer of liability. (P.D. No. 1445) % Main concept: Government resources must be utilized efficiently and effectively in | | accordance with the law. Government officials are responsible in | implementing this policy, are accountable for the government resources in their custody, and are liable for any loss. J‘The Unsung Heroes 1d. to seek employment The number of Filipinos. going. sbro3 Tso tw ated that about 10.4 million increasing every year. In 2012, it was est Fillpinos worked abroad Almost all Filipinos know at least one other Filipino ~ a family member, a relative, oF a friend, who Is working brood, We refer to our overseas workers as unsung heroes, HOw 507 ‘overseas workers remittances greatly | miry, and the more Toney is spent. | tion of the money We | entertainment, This is mainly because increase the spending in our cour the more taxes the government collects. A por spend on almost everything (food. clothing. bill, preticine, rentals etc) represents payment for tax. Taxes are the main | Source of government funds used in developing our country. Working abroad entails great sacrifices, not only for the overseas worker but also for family members left at home. We need | efficient and effective utilization of our government resources so that someday our countrymen can have better options of finding a livelihood in our country. ‘Accounting, as a tool for planning and control, contributes to | the achievernent of this goal by providing information that is useful in planning the sources and uses of government funds and comparing ‘ctual results with expected results to promote the efficient and ‘effective utlzation of government funds. IcXN Accounting responsibility ‘The following offices are charged with government accounting responsibility: ‘a. Commission on Audit (COA) b. Department of Budget and Management (DBM) . Bureau of Treasury (BTr) d. Government agencies Commission on Audit (COA) ‘The Commission on Audit (COA): a. Has the exclusive authority to promulgate accounting and ‘auditing rules and regulations.Overview of Government Accounting b. Keeps the general accounts of the government, supporting vouchers, and other documents. ¢. Submits financial reports to the President and Congress. Department of Budget and Management (DBM) ; The Department of Budget and Management (DBM) is responsible for the formulation and implementation of the national budget with the goal of attaining the nation’s socio-economic objectives. Bureau of Treasury (BTr) The Bureau of Treasury (BTr) functions under the Department of Finance and is the cash custodian of the government. The BTr is authorized to: a. Receive and keep national funds and manage and control the disbursements thereof; and b.- Maintain accounts of financial transactions of all national government offices, agencies and instrumentalities. Government Agencies Government agency refers to any department, bureau or office of the national government, or any’ of its branches and instrumentalities, or any political subdivision, as well as any government owned or controlled corporation (GOCC), including its subsidiaries, or other self-governing board or commission of the government. (P.D. No. 1445) The government agencies are responsible in directly implementing the projects of, and performing the functions delegated by, the government. * Each agency (entity) shall maintain accounting books and budget registries which are reconciled with the cash records of the BTr and the budget records of the COA and DBM. Government agencies are required by law to have accounting units/divisions/departments. 4 Even a barangay (the smallest administrative division in the Philippines) is required to have an accounting unit, e.g, the barangay’s “bookkeeper.”6.8 Chapter 1 er Financial Reporting System of the National Government Bureau of Treasury (BT) = Eachentty reconciles ‘accounting books with cash records of BT. — Exhentty’ ‘accounting books are toaudit by Government Agencies am ‘Commission on Audit (Ente) | enanity reconciles —P (COA) Each entity maintains dg ses it eas madres ofOA. Bet regis = Enchentity submits fac prs. , Each entity nconcies COA for consolidation. = Consolidates financial ~ Each entity reconci ae reports of government budget registries oM agencies and submits it to budge records of DBM. the President and + Congres. Department of Budget and Management (DBM) > Entity — ‘refers to a government agency, department or operating/field unit. > Financial Reporting - is the process of preparation, presentation and submission of general purpose financial statements and other reports. The objective of financial reporting is to provide information about the entity that is useful to users for accountability purposes and decision-making.Overview of Government Accounting The GAM for NGAS ‘An “old” government accounting system had been used for about jew Government five decades before it was replaced by the N 002, However, on January 1, 2016, ‘Accounting System (NGAS) in 2 : the NGAS was replaced by the Government Accounting Manual for National Government Agencies (GAM for NGAs). The GAM for NGAs was promulgated primarily to harmonize the government accounting standards - with international accounting standards, particularly the International 3AS). The IPSASs are Public Sector Accounting Standards (IPS. based on the International Financial Reporting Standards (IFRS). The Philippine Government has adopted’ the IPSAS through the Philippine Public Sector Accounting Standards (PPSAS). The provisions of the PPSAS are incorporated in the GAM for NGAs. Since the PPSAS are based on the IPSAS, which are in turn based on the IFRSs/PFRSs, most of the concepts that we will be Jearning in this book would be very familiar to you 8©. Legal basis The GAM for NGAs is promulgated. by the Commission on Audit (COA) based on the authority conferred to it by the Philippine Constitution: Relevant provision of law: > “The Commission (on Audit) shall have exclusive authority, subject to the limitations in this Article, to define the scope of its audit and examination, establish the techniques and methods required therefor, 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.” (Art. IX-D, Sec. 2(2). Philippine Constitution)Chapter 1 Coverage ' The GAM for NGAs provides the basic concepts to be used in: a Preparing general purpose financial statements in accordance with the Philippine Public Sector Accounting Standards (PPSAS) and other financial reports a& MY be required by laws, rules and regulations; and ; b. Reporting of budget, revenue and expenditis laws, rules and regulations. re in accordance with Objective sowing The GAM for NGAs aims to update the following: / a. Standards, policies, guidelines and procedures in accounting for government funds and property; b. Coding structure and accounts; and ¢ Recer books, registries, records, forms, reports and financial statements. (GAM for NGAs; Chapter 1, Sec. 3) Basic Accounting and Budget reporting Principles The financial records and reports of government entities shall comply with the following: 1. Philippine Public Sector Accounting Standards (PPSAS) and relevant laws, rules and regulations; 2. Accrual basis of accounting; Under the accrual basis of accounting, transactions are recognized when they occur (and not only when cash is received or paid). Therefore, transactions are recognized in the periods to which they relate. 3. Budget basis for presentation of budget information in the financial statements; 4. Revised Chart of Accounts prescribed by COA;Overview of Government Accounting 5. Double entry bookkeeping; 6. Financial statements based on accounting and budgetary records; and 7. Fund cluster accounting. The books of accounts are maintained by fund cluster (.e.,, according to the types of funds being accounted for) as follows: Code’ _| Fund clusters : 01 . | Regular.Agency Fund 02 Foreign Assisted Projects Fund 03, | Special Account-Locally Funded/Domestic Grants Fund 04 | Special Account-Foreign Assisted/Foreign Grants Fund 05 | Internally Generated Funds 06 | Business Related Funds 07 | Trust Receipts For example, separate accounting books (Journals and Ledgers) and budget registries shall be maintained for Regular Agency Fund. Another separate accounting books and budget registries shall be maintained for Foreign Assisted Projects Funds, and so on. : Qualitative Characteristics of Financial Reporting Information reported shall meet the qualitative characteristics. Qualitative characteristics are the attributes that make information useful to users. Understandability - information is understandable when users can reasonably be expected to comprehend its meaning. Accordingly, users are assumed to have i, ii. teasonable knowledge of the entity’s activities; and willingness to study the information.10 Chapter} Information about complex matters is not excludeq simply because it may be too difficult for certain USETS to understand. Relevance — Information is relevant if it can assist users in evaluating past, present or future events or in confirming or correcting past evaluations. In order to be relevant, information must also be timely. Materiality - Materiality affects the relevance of information, Information is material if its omission or misstatement could influence the decisions of users. Materiality depends on the nature or size of the item or error, judged in the particular circumstances of its omission or misstatement. Timeliness — Information loses its relevance if there is undue delay in its reporting. The complexity of an entity’s operations “is not a sufficient reason for failing to report on a timely basis. Reliability — reliable information is 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. Trade-offs between Relevance and Reliability To provide timely information, it may be necessary to report before all aspects of a transaction are known, thus impairing reliability. Conversely, if reporting is delayed until all aspects are known, the information may be highly reliable but of little use to users who need to make decision in the interim. To achieve a balance between relevance and reliability, the overriding consideration is how users’ needs are best satisfied. Faithful representation - For information to represent faithfully transactions and other events, it should be presented in accordance with the substance of the transactions and other events, and not merely their legal form.Overview of Government Accounting i g- Substance over form - The substance of transactions or other events is not always consistent with their legal form. If information is to represent faithfully the transactions and other events that it purports to represent, itis necessary that they be accounted for and presented in accordance with their substance and economic reality, and not merely their legal form. h. Neutrality - Information is neutral if it is free from bias. Information shall not be selected or presented in a manner that is designed to influence the user’s decision in order to achieve a predetermined outcome. i. Prudence —is the exercise of a degree of caution when making estimates under conditions of uncertainty, such that assets or revenue are not overstated and liabilities or expenses are not understated. However, prudence does not allow the creation of hidden reserves or excessive provisions, the deliberate understatement of assets or revenue, or the deliberate overstatement of liabilities or expenses, because the financial statements would not be neutral and, therefore, not reliable. j. Completeness — Information should be complete within the bounds of materiality and cost. k. Comparability - Information is comparable when users are able to identify similarities and differences between that information and information in other reports. Comparability applies to the comparison of financial statements of different entities and comparison of the financial statements of the same entity over different periods. Comparability requires that users must be informed of the entity’s policies, changes to those policies, and the effects of those changes and that financial statements show . corresponding information for preceding periods. (PPSAS 1/GAM for NGAs, Chapter 19, Sec. 6) .az Chapter 1 ratements Components of General Purpose Financial St intended to meet the General Purpose Financial Statements are those i needs of users who are not in a position to demand reports tailored to meet their particular information needs. (PPSAS 13) The complete set of general purpose financial statements consists of: Statement of Financial Position; Statement of Financial Performance; Statement of Changes in Net Assets/Equity; Statement of Cash Flows; ; Statement of Comparison of Budget and Actual Amounts; and Notes to the Financial Statements, comprising a summary of significant accounting policies and other explanatory notes. moan sp Notice that the financial statements listed above are those of.a business entity. However, the financial ity is the “Statement of ” (letter ‘e’). We will similar to : statement unique to a government enti Comparison of Budget and Actual Amounts elaborate on this later. Elements of the financial statements ASSETS ‘Assets - are resources controlled by an entity as a result of past events, and from which future economic benefits or service potential are expected to flow to the entity. The key features of an asset are: a. The benefits must be controlled by the entity; b. The benefits must have arisen from a past event; and ” c. Future economic benefits or service potential must be expected to flow to the entity. . Control means the ability to benefit from an asset or prevent others from benefitting from that asset. Vv13 Overvietu of Government Accounting > Benefit means the ability to use, exchange, lease, sell - asset to settle liabilities, or distribute it to owners. mership normally evidences control. Possession or OW: : a finance However, this is not always true. For example, under lease, the lessor retains legal ownership over the leased asset but control is transferred to the lessee. l, or use the Indicators of future economic benefits: a. b. distinguishable from the source of the benefit i.e. the particular physical resource or legal right; does not imply that assets necessarily generate cash flows, the benefits can also be in the form of ‘service potential’; in determining ‘whether a resource or right needs to be accounted for: as an asset, the potential to contribute to the objectives of the entity should be the prime consideration; capacity to contribute to activities/objectives/programs; and the fact that an asset cannot be sold does not preclude it from providing future economic benefits. Past event — A transaction or event giving rise to control of future economic benefits must have occurred. A mere intention to acquire assets in the future does not result to the recognition of assets in the present. Recognition of an Asset An asset is recognized when: a b. it is probable that the future economic benefits will flow to the entity; and . the asset has a cost or value (e.g., fair value) that can be measured reliably. Probable inflow of future economic benefits: a. The chance of benefits arising is more likely rather than less likely (e.g. greater than 50%). 7 Benefits can be expected on the basis of available evidence or logic.14 Chapter Reliable measurement: a. Valuation method is free from material error or bias. b. Faithful representation of the asset's benefits. c. Reliable information will, without bias or undue error faithfully represent those transactions and events. . LIABILITIES 5 Liabilities - are present obligations of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits or service potential. EQUITY Net assets/equity — is the residual interest in the assets of the entity after deducting all its liabilities. REVENUE Revenue — is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets/equity, other than increases relating to contributions from owners. > Contributions from owners — are future economic benefits that have been contributed to the entity by external parties which do not result to liabilities of the entity and for which the contributor obtains interest in the net assets of the entity (ie., right to dividends and right to net assets in cases of , liquidation). Revenue funds ~ comprise all funds derived from the income of any agency of the government and available for appropriation or expenditure in accordance with law. (Section 3, P.D. No. 1445)15 Overview of Government Accounting EXPENSES Expenses — are decreases in economic benefits or service potential during the reporting period, in the form of outflows or consumption of assets or incurrence of liabilities that result in decreases in net assets/equity, other than those relating to distributions to owners. are future economic benefits er as a return on > Distributions to owners distributed by the entity to its owners, eith investment or as a return of investment.Io Chapter 1 Summary: Aside from providing economic decisions, demon formation that is useful in makin govemnnient accounting also aims (2 rate the accountability of the entity for the r entrusted to it, " ” ° smoutees The following are’ charged with govemment accountng | responsibility: COA, DBM, BTr and other governmen agencies, ent The GAM for NGAs provides the principles and procedures to | be applied in the financial reporting of government entities, , was promulgated by the COA primarily to harmonize the | government accounting standards with _ international} standards. Basic principles: Compliance with PPSAS and other relevant laws, Accrual basis, Budget basis, Revised chart of accounts, Double entry, Financial statements based on accounting and budgetary records, and Fund cluster accounting. Qualitative characteristics: Understandability, Relevance, Materiality, Timeliness, Reliability, Faithful representation, Substance over form, Neutrality, Prudence, Completeness, and Comparability. ‘An item is recognized as asset if all of the following criteria are met: 1. the item meets the definition of an asset; 2. probable inflow of future economic benefits; and 3, reliable measurement of cost or other value (e.g,, fair value). overview of 7 es Asvounting PROBLEMS: PROBLEM 1-1: TRUI 1 7. 8. E OR FALSE accounting, for Bt later emphasis © ernment ¢ isiness entities, BOvernmen, ‘Compared to ne ; ee reed accounting places i = utilization of governme Es stewardship over government resources: of the government. ‘Taxes are the main source of funds of the government include fees, nds Other sources ot from other governments and porrowings, and grants international bodies. i is Currently, the financial reporting of government entities based on NGAS. financial reporting of government that only a very few of these that are applied to business ‘The principles used in the entities are very unique principles are similar to those entities. ‘The principles in the GAM for NGAs are similar to the principles in the PFRSs. ‘The GAM for NGAs is promulgated by the Philippine Congress under the authority conferred to it under the Philippine Constitution. ‘A unique financial reporting requirement of government entities is the use of fund cluster accounting. Under fund cluster accounting, separate books and reports are prepared for each type of fund held by a government entity. The GAM for NGAs is promulgated primarily to harmonize government accounting standards with the U.S. GAAP.10. An item is recognized as an asset if it future economic benetits” and ra criteria, regardless of whether the arising from past events. both the “pra Peete ne “Prsbable measurem 1 sll nen” 'm is a resource controlled PROBLEM 1-2: MULTIPLE CHOICE 1. Which ofthe following is a unique requirement of gover accounting that is not required in the a entities? scsounting for busine a. The use of double-entry recording system. b, The use of single-entry recording system. ¢. The use of accrual basis of accounting. d. The presentation of budget information i tion i pee in the financial 2. What is the legal basis of the COA i i mie 85 in promulgating the GAM ’a. P.D. No. 1445, State Audit Code of the Philippines The Philippine Constitution R.A. 9298, The Philippine Accountancy Act of 2004 Philippine Public Sector Accounting Standards (PPSAS) aos 3. Which of the following is tasked in keeping the general accounts of the government, supporting vouchers, and other documents? a.COA c. NGAs b.DBM 4. Congress 4, The Bureau of Treasury (BTR) is responsible for a. promulgating accounting and auditing rules and regulations. b. the formulation and implementation of the national budget with the goal of attaining the nation’s socio- economic objectives. reer of Cnertninent Accomunting junds and managing and c.receiving and keeping national func controlling the disbursements th 4. directly implementing the projects of ihe government. basis of accounting to be 5, According to the GAM for NGAs, the applied by government entities is the a. Cash basis ‘c. Modified accrual basis b. Accrual basis 4. Any of these as a policy choice 6. Government resources. must be utilized efficiently and Citectively in accordance with the law. According fo PD. No si, who is directly responsible in implementing this policy BAIL employees who are entrusted with the possession of government resources. b. The head of the government agency. cc. TheCOA. d. Allelected officials. 7, The transfer of government funds from one officer to another requires the prior authorization of the a. Commission on Audit b. Head of the Agency c._ The President of the Republic of the Philippines d. Bureau of Treasury 8, Mr. A,a government employee entrusted with the custody of government funds, was instructed by Mr. B (a politician) to release funds for the acquisition of a car as a birthday gift for Mr. B’s daughter who will be having her 18" birthday next week. To relieve Mr. A from any liability, what should Mr. A do? a. Mr, A shall not release the fund but rather notify Mr. B, in writing, that his instruction is illegal. b. Mr, A shall release the fund and then notify Mr. B, in writing, that his instruction is illegal. Mr. A shall release the fund but retains 20% commission.d. Mr. A shall release the in writing, that the car sh shall be atter his daughter's birthday, fund but requires Mr. B to returne, Promise, ‘410 the goverimen, 9. Mr. CG, a government employ govemment funds, has lost ¢ him in a force majeure. Wh; from aby? relieve him a. Mr. C should immediat i 30 days, ely notify the Head of Agency after . Mr. C should immedi: TT COA within 30 4, iately notify the in 30 da © C should immediately Mr. ould immediately notify the B Mo ‘ " ‘ jureau of Treasury d. Mr. C should ke ent a secre! ep the ev 7 Should ta secret and wait for next 10. These refer to the attributes that m se ute: Si lake information useful to Usefulness characteristics Quantitative characteristics Qualitative characteristics Fundamental principles Bore 11. Information loses this qualitative characteristic if it is 1 reported on a timely basis. “ a. Relevance b. Reliability c. Neutrality d. Materiality 12. Which .of the following qualitative characteristics does an entity most likely would need to make some trade-offs? ‘a. Faithful representation and Substance over form b. Materiality and Relevance c. Relevance and Reliability d. Understandability and Comparability Overriew of Gaxcrnment Accum 13. An entity recon? value of a prope! qualitative characteristic be a. Rehability b. Substance over form 4 15. Which © government entity’ pease 21 ee » decline in ed loss from the ded raving, is most Likely the by theentity? thful representation smizes an estimat ty. Which ‘of the follo te ing applied c. 4, Prudence ers of @ of the following, is not one of the fund clusters rr Regular Agency Fund i d Foreign Assisted Projects Fun ; Special Account-Locally Funded/Domestic Grant Business Related Funds Petty Cash Fund ts Fund To achieve a proper balance between relevance and reliability, the overriding consideration is how users’ needs are best satisfied. relevance is always more important than reliability. reliability is always more important than relevance. greater weight shall be given to relevance compared to reliability. pose PROBLEM 1-3: FOR CLASSROOM DISCUSSION 1. How does government accounting differ from the accounting for business entities? a. Government accounting places more emphasis on pri making, b. Government accounting is very complex that only intellectual individuals can understand it. c. Government accounting places greater emphasis on sources and utilization of funds in accordance with the law and management's stewardship over government resources entrusted to the entity. “ofit- highly« Varn, | overvase of ccrvimerd Meson _ 4. Govern * Sovernment accoun Vl ner Principle: ling is specialized im nature tha - applicable to business entities are be Vey 6. Whic st one of the objectives of the GAM of the following 18 90 standards with applic, PPlicable to government entities. GAs? 2 spr NGA ne Which of the following is . a. to harmonize government accou B Bovernmient? Is not a source of revenue for international standards. a Taxes the b arte te cntng structure and 2c dts forms, b. Fees coll a to update accounting books, registries, records, ©. Grants seed by government agencies * Feports and financial statements: jards 10 02 a. Contract donations from other governments 4. to. update government accounting. art a Price on government contracts ay ° it with the rovisions of us. . Private companies. warded ty consistent wi P on 3. Entity a ( 7. All of the following are requirements peculiar to (a government agency) is entrusted with . Which is not? govern overnment entity. Oo / ea pen resenting budget information in the financial statements. resources, Accordi an fees: According 7 PLD. 1445, who is directly responsible a at and effective utilization of these resources? b. Fund cluster accounting. + The goverment employees who have custody over the ¢. Incorporating budgetary con! resources. : system. 2 re Head of Entity A. 4. Accrual basis of accounting. ©. The COA staff stationed in Entity A. d._ The Foot of Entity A. . Which of the following qualitative characteristics is imy «whe when information is reported on a timely basis? . Which of the following is not charged with government a. Relevance ¢. Understandability accounting responsibility under the GAM for NGAs? b. Reliability d.aandb trols in the financial reporting proved ate for a loss is P100,000. However, the entity a. COA c.NGAs b. DBM d. House of Representatives 9, The best estim deliberately overstated the loss to P200,000. Which of the 5. es of Budget and Management (DBM) is fllowing qualitative characteristics ee ible for a. Prudence c.aand a. Promulgating accounting and auditing rules and b. Reliability d. Nothing is violated regulations. b. i formulation and implementation of the national 10. Which of the following financial statements is peculiar to a ee the goal of attaining the nation’s socio- oes ‘omic objectives, a. Balance Sheet ©. receiving and keeping national f b. Statement of Cash Fl junds and managin, . See controlling the disbursements thereof, iging and 3 econ e Comparison of Budget and Actual Amounts |. Statement of Changes in Equity 4d. directly implementing the projects of the government,