Art. IX-D, Sec. 2(2), Philippine Constitution PPSAS 9.11 GAM for NGAs, Chapter 2, Sec. 37 Art.
GAM for NGAs, Chapter 2, Sec. 37
“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 regulation,
including those for the prevention and
disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable
expenditures, or uses of government funds and
properties.”
PPSAS 1/ GAM for NGAs, Chap. 19, Sec. 6
Qualitative Characteristics of Financial
Reporting:
Understandability Substance over form
Relevance Neutrality
Materiality Prudence
Timeliness Completeness
Reliability Comparability
Faithful Representation
Art. VII, Sec. 22, Philippine Constitution
The President shall submit the proposed budget
to the Congress within 30 days from the opening
of every regular session.
Art. VI, Sec. 25(7), Philippine Constitution
When the proposed budget is not enacted
before the fiscal year starts, the last year’s GAA
is automatically reenacted. The last year’s GAA
shall be used in the current year until a new
general appropriations bill is passed by the
Congress.
Art. VI Sec. 25(4), Philippine Constitution
A special appropriations bill shall specify the
purpose for which it is intended, and shall be
supported by funds actually available as certified
by the National Treasurer, or to be raised by a
corresponding revenue proposal therein.
Art. VI Sec. 25(5), Philippine Constitution
No law shall be passed authorizing any transfer
of appropriations; however, the President, the
President of the Senate, the Speaker of the
House of Representatives, the Chief Justice of
the Supreme Court, and the Heads of
Constitutional Commissions may, by law, be
authorized to augment any item in the general
appropriations law for their respective offices
from savings in other items of their respective
appropriations.
GAM for NGAs, Chapter 5, Sec. 38
“The NCA specifies the maximum amount of
withdrawal that an entity can make from a
government bank for the period indicated. The
Collecting Officer shall not issue an Official
Receipt for the receipt of NCA.”
GAM for NGAs, Chapter 6, Sec. 3
To maximize the available NCAs of the agency,
the Common Fund System policy shall be
adopted whereby cash allocation balances of
agencies under the Regular MDS Account may
be used to cover payment of current year’s
accounts payable, after satisfying their regular
operating requirements as reflected in their
Monthly Cash Program.
Art. VI, Sec. 29(3), Philippine Constitution
All money collected on any tax levied for a
special purpose shall be treated as a special fund
and paid out for such purpose only. If the
purpose for which a special fund was created
has been fulfilled or abandoned, the balance, if
any, shall be transferred to the general funds of
the Government.
Art. IX-D, Sec. 2(2), Philippine Constitution
a. Exchange Transactions- are transactions in
which one entity receives assets or services,
or has liabilities extinguished, and directly
gives approximately equal value to another
entity in exchange.
b. Non-exchange Transactions- are
transactions in which an entity either
receives value from another entity without
directly giving approximately equal value in
exchange, or gives value to another entity
without directly receiving approximately
equal value in exchange.
PPSAS 23.10
When the consideration transferred does not
approximate the fair value of the resources
received, the entity determines whether the
transaction includes a combination of exchange
and non-exchange transactions. Each
component shall be recognized separately.
PPSAS 23.11
The receipt of trade discounts, quantity
discounts, or other reductions in price does not
necessarily mean that the transaction is a non-
exchange transaction.
PPSAS 9.24
For practical purposes, when services are
performed by an indeterminate number of acts
over a specified time frame, revenue is
recognized on a straight-line basis over the
specified time frame unless there is evidence
that some other method better represents the
stage of completion.
PPSAS 9.25
When the outcome of the transaction involving
the rendering of services cannot be estimated
reliably, revenue is recognized only to the extent
of the expenses recognized that are recoverable.
GAM for NGAs, Chapter 5, Sec. 7
A government entity normally recognizes
revenue form service income when the services
are rendered, except when this is not
practicable, in which case, revenue is recognized
when fees are collected. Similarly, revenue from
business income (except sale of goods) is
recognized when fees are billed, or if not
practicable, when fees are collected.
GAM for NGAs, Chapter 5, Sec. 12
Revenue from non-exchange transactions are
recognized on a cash basis until a reliable
measurement model is developed. Accordingly,
the asset and revenue or liability arising from a
non-exchange transaction are recognized when
collected or when these are measurable and
legally collectible.
Fines and penalties are recognized as income in
the year they are collected. (GAM for NGAs,
Chapter 2, Sec. 33)
However, fines are recognized as revenue when
the receivable meets the recognition criteria for
asset and are measured at the best estimate of
inflow of resources to the entity. (GAM for NGAs,
Chapter 5, Sec. 24)
GAM for NGAs, Chapter 5, Sec. 9
Entities shall evaluate the collectability of
accounts receivable on an ongoing basis based
on historical bad debts, customer/recipient
creditworthiness, current economic trends and
changes in payment activity. An allowance is
provided for known and estimated bad debts.
GAM for NGAs, Chapter 2, Sec. 35
Expenditures funded by borrowings are included
in the expenditure program of the entity. The
loan proceeds shall not be used without the
corresponding release of funds through a
Special Budget.
PPSAS 9.11
All disbursements require the certification of the
Chief Accountant. Certifications must be based
on valid and properly authorized claims. Any
certification for fictitious obligation is void. The
certifying official shall be dismissed from service
and shall be held criminally liable. Others who
are involved in the fictitious transaction are also
liable.
PPSAS 28.9
Financial instrument- is any contract that gives
rise to both a financial asset of one entity and a
financial liability or equity instrument of another
entity.
GAM for NGAs, Chapter 7, Sec. 23
The issuer of a financial instrument shall classify
the instrument, or its component parts, on initial
recognition as a financial asset, a financial
liability or an equity instrument in accordance
with the substance of the contractual
arrangement and the definitions of a financial
asset, a financial liability and an equity
instrument.
GAM for NGAs, Chapter 6, Sec. 2
Petty Cash Fund refers to the amount granted to
duly designated Petty Cash Custodian for
payment of authorized petty or miscellaneous
expenses which cannot be conveniently paid
through checks or ADA.
Revised Penal Code, Art. 217
“The failure of a public officer to have duly
forthcoming any public funds or property with
which he is chargeable, upon demand by any
duly authorized officer, shall be prima facie
evidence that he has put such missing funds or
property to personal use.”
PPSAS 2.8
Cash Equivalents- are short-term, highly liquid
investments that are readily convertible to
known amounts of cash and which are subject to
an insignificant risk of changes in value.
GAM for NGAs, Chapter 7, Sec. 10
The derecognition of financial assets is subject
to the provision of the State Audit Code of the
Philippines (P.D. No. 1445) on the writing off of
receivables and other policies issued by the COA.
GAM for NGAs, Chapter 7, Sec. 19
The very purpose of derivatives is risk
management. Risk management is the process
of identifying the desired level of risk, identifying
the actual level of risk and altering the latter to
equal the former.
GAM for NGAs, Chapter 2, Sec. 37
“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 regulation,
including those for the prevention and
disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable
expenditures, or uses of government funds and
properties.”
PPSAS 1/ GAM for NGAs, Chap. 19, Sec. 6
Qualitative Characteristics of Financial
Reporting:
Understandability Substance over form
Relevance Neutrality
Materiality Prudence
Timeliness Completeness
Reliability Comparability
Faithful Representation
Art. VII, Sec. 22, Philippine Constitution
The President shall submit the proposed budget
to the Congress within 30 days from the opening
of every regular session.
Art. VI, Sec. 25(7), Philippine Constitution
When the proposed budget is not enacted
before the fiscal year starts, the last year’s GAA
is automatically reenacted. The last year’s GAA
shall be used in the current year until a new
general appropriations bill is passed by the
Congress.
Art. VI Sec. 25(4), Philippine Constitution
A special appropriations bill shall specify the
purpose for which it is intended, and shall be
supported by funds actually available as certified
by the National Treasurer, or to be raised by a
corresponding revenue proposal therein.
Art. VI Sec. 25(5), Philippine Constitution
No law shall be passed authorizing any transfer
of appropriations; however, the President, the
President of the Senate, the Speaker of the
House of Representatives, the Chief Justice of
the Supreme Court, and the Heads of
Constitutional Commissions may, by law, be
authorized to augment any item in the general
appropriations law for their respective offices
from savings in other items of their respective
appropriations.
GAM for NGAs, Chapter 5, Sec. 38
“The NCA specifies the maximum amount of
withdrawal that an entity can make from a
government bank for the period indicated. The
Collecting Officer shall not issue an Official
Receipt for the receipt of NCA.”
GAM for NGAs, Chapter 6, Sec. 3
To maximize the available NCAs of the agency,
the Common Fund System policy shall be
adopted whereby cash allocation balances of
agencies under the Regular MDS Account may
be used to cover payment of current year’s
accounts payable, after satisfying their regular
operating requirements as reflected in their
Monthly Cash Program.
Art. VI, Sec. 29(3), Philippine Constitution
All money collected on any tax levied for a
special purpose shall be treated as a special fund
and paid out for such purpose only. If the
purpose for which a special fund was created
has been fulfilled or abandoned, the balance, if
any, shall be transferred to the general funds of
the Government.
c. Exchange Transactions- are transactions in
which one entity receives assets or services,
or has liabilities extinguished, and directly
gives approximately equal value to another
entity in exchange.
d. Non-exchange Transactions- are
transactions in which an entity either
receives value from another entity without
directly giving approximately equal value in
exchange, or gives value to another entity
without directly receiving approximately
equal value in exchange.
PPSAS 23.10
When the consideration transferred does not
approximate the fair value of the resources
received, the entity determines whether the
transaction includes a combination of exchange
and non-exchange transactions. Each
component shall be recognized separately.
PPSAS 23.11
The receipt of trade discounts, quantity
discounts, or other reductions in price does not
necessarily mean that the transaction is a non-
exchange transaction.
PPSAS 9.24
For practical purposes, when services are
performed by an indeterminate number of acts
over a specified time frame, revenue is
recognized on a straight-line basis over the
specified time frame unless there is evidence
that some other method better represents the
stage of completion.
PPSAS 9.25
When the outcome of the transaction involving
the rendering of services cannot be estimated
reliably, revenue is recognized only to the extent
of the expenses recognized that are recoverable.
GAM for NGAs, Chapter 5, Sec. 7
A government entity normally recognizes
revenue form service income when the services
are rendered, except when this is not
practicable, in which case, revenue is recognized
when fees are collected. Similarly, revenue from
business income (except sale of goods) is
recognized when fees are billed, or if not
practicable, when fees are collected.
GAM for NGAs, Chapter 5, Sec. 12
Revenue from non-exchange transactions are
recognized on a cash basis until a reliable
measurement model is developed. Accordingly,
the asset and revenue or liability arising from a
non-exchange transaction are recognized when
collected or when these are measurable and
legally collectible.
Fines and penalties are recognized as income in
the year they are collected. (GAM for NGAs,
Chapter 2, Sec. 33)
However, fines are recognized as revenue when
the receivable meets the recognition criteria for
asset and are measured at the best estimate of
inflow of resources to the entity. (GAM for NGAs,
Chapter 5, Sec. 24)
GAM for NGAs, Chapter 5, Sec. 9
Entities shall evaluate the collectability of
accounts receivable on an ongoing basis based
on historical bad debts, customer/recipient
creditworthiness, current economic trends and
changes in payment activity. An allowance is
provided for known and estimated bad debts.
GAM for NGAs, Chapter 2, Sec. 35
Expenditures funded by borrowings are included
in the expenditure program of the entity. The
loan proceeds shall not be used without the
corresponding release of funds through a
Special Budget.
All disbursements require the certification of the
Chief Accountant. Certifications must be based
on valid and properly authorized claims. Any
certification for fictitious obligation is void. The
certifying official shall be dismissed from service
and shall be held criminally liable. Others who
are involved in the fictitious transaction are also
liable.
PPSAS 28.9
Financial instrument- is any contract that gives
rise to both a financial asset of one entity and a
financial liability or equity instrument of another
entity.
GAM for NGAs, Chapter 7, Sec. 23
The issuer of a financial instrument shall classify
the instrument, or its component parts, on initial
recognition as a financial asset, a financial
liability or an equity instrument in accordance
with the substance of the contractual
arrangement and the definitions of a financial
asset, a financial liability and an equity
instrument.
GAM for NGAs, Chapter 6, Sec. 2
Petty Cash Fund refers to the amount granted to
duly designated Petty Cash Custodian for
payment of authorized petty or miscellaneous
expenses which cannot be conveniently paid
through checks or ADA.
Revised Penal Code, Art. 217
“The failure of a public officer to have duly
forthcoming any public funds or property with
which he is chargeable, upon demand by any
duly authorized officer, shall be prima facie
evidence that he has put such missing funds or
property to personal use.”
PPSAS 2.8
Cash Equivalents- are short-term, highly liquid
investments that are readily convertible to
known amounts of cash and which are subject to
an insignificant risk of changes in value.
GAM for NGAs, Chapter 7, Sec. 10
The derecognition of financial assets is subject
to the provision of the State Audit Code of the
Philippines (P.D. No. 1445) on the writing off of
receivables and other policies issued by the COA.
GAM for NGAs, Chapter 7, Sec. 19
The very purpose of derivatives is risk
management. Risk management is the process
of identifying the desired level of risk, identifying
the actual level of risk and altering the latter to
equal the former.
Art. IX-D, Sec. 2(2), Philippine Constitution
“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 regulation,
including those for the prevention and
disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable
expenditures, or uses of government funds and
properties.”
PPSAS 1/ GAM for NGAs, Chap. 19, Sec. 6
Qualitative Characteristics of Financial
Reporting:
Understandability Substance over form
Relevance Neutrality
Materiality Prudence
Timeliness Completeness
Reliability Comparability
Faithful Representation
Art. VII, Sec. 22, Philippine Constitution
The President shall submit the proposed budget
to the Congress within 30 days from the opening
of every regular session.
Art. VI, Sec. 25(7), Philippine Constitution
When the proposed budget is not enacted
before the fiscal year starts, the last year’s GAA
is automatically reenacted. The last year’s GAA
shall be used in the current year until a new
general appropriations bill is passed by the
Congress.
Art. VI Sec. 25(4), Philippine Constitution
A special appropriations bill shall specify the
purpose for which it is intended, and shall be
supported by funds actually available as certified
by the National Treasurer, or to be raised by a
corresponding revenue proposal therein.
Art. VI Sec. 25(5), Philippine Constitution
No law shall be passed authorizing any transfer
of appropriations; however, the President, the
President of the Senate, the Speaker of the
House of Representatives, the Chief Justice of
the Supreme Court, and the Heads of
Constitutional Commissions may, by law, be
authorized to augment any item in the general
appropriations law for their respective offices
from savings in other items of their respective
appropriations.
GAM for NGAs, Chapter 5, Sec. 38
“The NCA specifies the maximum amount of
withdrawal that an entity can make from a
government bank for the period indicated. The
Collecting Officer shall not issue an Official
Receipt for the receipt of NCA.”
GAM for NGAs, Chapter 6, Sec. 3
To maximize the available NCAs of the agency,
the Common Fund System policy shall be
adopted whereby cash allocation balances of
agencies under the Regular MDS Account may
be used to cover payment of current year’s
accounts payable, after satisfying their regular
operating requirements as reflected in their
Monthly Cash Program.
Art. VI, Sec. 29(3), Philippine Constitution
All money collected on any tax levied for a
special purpose shall be treated as a special fund
and paid out for such purpose only. If the
purpose for which a special fund was created
has been fulfilled or abandoned, the balance, if
any, shall be transferred to the general funds of
the Government.
PPSAS 9.11
e. Exchange Transactions- are transactions in
which one entity receives assets or services,
or has liabilities extinguished, and directly
gives approximately equal value to another
entity in exchange.
f. Non-exchange Transactions- are
transactions in which an entity either
receives value from another entity without
directly giving approximately equal value in
exchange, or gives value to another entity
without directly receiving approximately
equal value in exchange.
PPSAS 23.10
When the consideration transferred does not
approximate the fair value of the resources
received, the entity determines whether the
transaction includes a combination of exchange
and non-exchange transactions. Each
component shall be recognized separately.
PPSAS 23.11
The receipt of trade discounts, quantity
discounts, or other reductions in price does not
necessarily mean that the transaction is a non-
exchange transaction.
PPSAS 9.24
For practical purposes, when services are
performed by an indeterminate number of acts
over a specified time frame, revenue is
recognized on a straight-line basis over the
specified time frame unless there is evidence
that some other method better represents the
stage of completion.
PPSAS 9.25
When the outcome of the transaction involving
the rendering of services cannot be estimated
reliably, revenue is recognized only to the extent
of the expenses recognized that are recoverable.
GAM for NGAs, Chapter 5, Sec. 7
A government entity normally recognizes
revenue form service income when the services
are rendered, except when this is not
practicable, in which case, revenue is recognized
when fees are collected. Similarly, revenue from
business income (except sale of goods) is
recognized when fees are billed, or if not
practicable, when fees are collected.
GAM for NGAs, Chapter 5, Sec. 12
Revenue from non-exchange transactions are
recognized on a cash basis until a reliable
measurement model is developed. Accordingly,
the asset and revenue or liability arising from a
non-exchange transaction are recognized when
collected or when these are measurable and
legally collectible.
Fines and penalties are recognized as income in
the year they are collected. (GAM for NGAs,
Chapter 2, Sec. 33)
However, fines are recognized as revenue when
the receivable meets the recognition criteria for
asset and are measured at the best estimate of
inflow of resources to the entity. (GAM for NGAs,
Chapter 5, Sec. 24)
GAM for NGAs, Chapter 5, Sec. 9
Entities shall evaluate the collectability of
accounts receivable on an ongoing basis based
on historical bad debts, customer/recipient
creditworthiness, current economic trends and
changes in payment activity. An allowance is
provided for known and estimated bad debts.
GAM for NGAs, Chapter 2, Sec. 35
Expenditures funded by borrowings are included
in the expenditure program of the entity. The
loan proceeds shall not be used without the
corresponding release of funds through a
Special Budget.
GAM for NGAs, Chapter 2, Sec. 37
All disbursements require the certification of the
Chief Accountant. Certifications must be based
on valid and properly authorized claims. Any
certification for fictitious obligation is void. The
certifying official shall be dismissed from service
and shall be held criminally liable. Others who
are involved in the fictitious transaction are also
liable.
PPSAS 28.9
Financial instrument- is any contract that gives
rise to both a financial asset of one entity and a
financial liability or equity instrument of another
entity.
GAM for NGAs, Chapter 7, Sec. 23
The issuer of a financial instrument shall classify
the instrument, or its component parts, on initial
recognition as a financial asset, a financial
liability or an equity instrument in accordance
with the substance of the contractual
arrangement and the definitions of a financial
asset, a financial liability and an equity
instrument.
GAM for NGAs, Chapter 6, Sec. 2
Petty Cash Fund refers to the amount granted to
duly designated Petty Cash Custodian for
payment of authorized petty or miscellaneous
expenses which cannot be conveniently paid
through checks or ADA.
Revised Penal Code, Art. 217
“The failure of a public officer to have duly
forthcoming any public funds or property with
which he is chargeable, upon demand by any
duly authorized officer, shall be prima facie
evidence that he has put such missing funds or
property to personal use.”
PPSAS 2.8
Cash Equivalents- are short-term, highly liquid
investments that are readily convertible to
known amounts of cash and which are subject to
an insignificant risk of changes in value.
GAM for NGAs, Chapter 7, Sec. 10
The derecognition of financial assets is subject
to the provision of the State Audit Code of the
Philippines (P.D. No. 1445) on the writing off of
receivables and other policies issued by the COA.
GAM for NGAs, Chapter 7, Sec. 19
The very purpose of derivatives is risk
management. Risk management is the process
of identifying the desired level of risk, identifying
the actual level of risk and altering the latter to
equal the former.
Art. IX-D, Sec. 2(2), Philippine Constitution
“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 regulation,
including those for the prevention and
disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable
expenditures, or uses of government funds and
properties.”
PPSAS 1/ GAM for NGAs, Chap. 19, Sec. 6
Qualitative Characteristics of Financial
Reporting:
Understandability Substance over form
Relevance Neutrality
Materiality Prudence
Timeliness Completeness
Reliability Comparability
Faithful Representation
Art. VII, Sec. 22, Philippine Constitution
The President shall submit the proposed budget
to the Congress within 30 days from the opening
of every regular session.
Art. VI, Sec. 25(7), Philippine Constitution
When the proposed budget is not enacted
before the fiscal year starts, the last year’s GAA
is automatically reenacted. The last year’s GAA
shall be used in the current year until a new
general appropriations bill is passed by the
Congress.
Art. VI Sec. 25(4), Philippine Constitution
A special appropriations bill shall specify the
purpose for which it is intended, and shall be
supported by funds actually available as certified
by the National Treasurer, or to be raised by a
corresponding revenue proposal therein.
Art. VI Sec. 25(5), Philippine Constitution
No law shall be passed authorizing any transfer
of appropriations; however, the President, the
President of the Senate, the Speaker of the
House of Representatives, the Chief Justice of
the Supreme Court, and the Heads of
Constitutional Commissions may, by law, be
authorized to augment any item in the general
appropriations law for their respective offices
from savings in other items of their respective
appropriations.
GAM for NGAs, Chapter 5, Sec. 38
“The NCA specifies the maximum amount of
withdrawal that an entity can make from a
government bank for the period indicated. The
Collecting Officer shall not issue an Official
Receipt for the receipt of NCA.”
GAM for NGAs, Chapter 6, Sec. 3
To maximize the available NCAs of the agency,
the Common Fund System policy shall be
adopted whereby cash allocation balances of
agencies under the Regular MDS Account may
be used to cover payment of current year’s
accounts payable, after satisfying their regular
operating requirements as reflected in their
Monthly Cash Program.
Art. VI, Sec. 29(3), Philippine Constitution
All money collected on any tax levied for a
special purpose shall be treated as a special fund
and paid out for such purpose only. If the
purpose for which a special fund was created
has been fulfilled or abandoned, the balance, if
any, shall be transferred to the general funds of
the Government.
PPSAS 9.11
g. Exchange Transactions- are transactions in
which one entity receives assets or services,
or has liabilities extinguished, and directly
gives approximately equal value to another
entity in exchange.
h. Non-exchange Transactions- are
transactions in which an entity either
receives value from another entity without
directly giving approximately equal value in
exchange, or gives value to another entity
without directly receiving approximately
equal value in exchange.
PPSAS 23.10
When the consideration transferred does not
approximate the fair value of the resources
received, the entity determines whether the
transaction includes a combination of exchange
and non-exchange transactions. Each
component shall be recognized separately.
PPSAS 23.11
The receipt of trade discounts, quantity
discounts, or other reductions in price does not
necessarily mean that the transaction is a non-
exchange transaction.
PPSAS 9.24
For practical purposes, when services are
performed by an indeterminate number of acts
over a specified time frame, revenue is
recognized on a straight-line basis over the
specified time frame unless there is evidence
that some other method better represents the
stage of completion.
PPSAS 9.25
When the outcome of the transaction involving
the rendering of services cannot be estimated
reliably, revenue is recognized only to the extent
of the expenses recognized that are recoverable.
GAM for NGAs, Chapter 5, Sec. 7
A government entity normally recognizes
revenue form service income when the services
are rendered, except when this is not
practicable, in which case, revenue is recognized
when fees are collected. Similarly, revenue from
business income (except sale of goods) is
recognized when fees are billed, or if not
practicable, when fees are collected.
GAM for NGAs, Chapter 5, Sec. 12
Revenue from non-exchange transactions are
recognized on a cash basis until a reliable
measurement model is developed. Accordingly,
the asset and revenue or liability arising from a
non-exchange transaction are recognized when
collected or when these are measurable and
legally collectible.
Fines and penalties are recognized as income in
the year they are collected. (GAM for NGAs,
Chapter 2, Sec. 33)
However, fines are recognized as revenue when
the receivable meets the recognition criteria for
asset and are measured at the best estimate of
inflow of resources to the entity. (GAM for NGAs,
Chapter 5, Sec. 24)
GAM for NGAs, Chapter 5, Sec. 9
Entities shall evaluate the collectability of
accounts receivable on an ongoing basis based
on historical bad debts, customer/recipient
creditworthiness, current economic trends and
changes in payment activity. An allowance is
provided for known and estimated bad debts.
GAM for NGAs, Chapter 2, Sec. 35
Expenditures funded by borrowings are included
in the expenditure program of the entity. The
loan proceeds shall not be used without the
corresponding release of funds through a
Special Budget.
GAM for NGAs, Chapter 2, Sec. 37
All disbursements require the certification of the
Chief Accountant. Certifications must be based
on valid and properly authorized claims. Any
certification for fictitious obligation is void. The
certifying official shall be dismissed from service
and shall be held criminally liable. Others who
are involved in the fictitious transaction are also
liable.
PPSAS 28.9
Financial instrument- is any contract that gives
rise to both a financial asset of one entity and a
financial liability or equity instrument of another
entity.
GAM for NGAs, Chapter 7, Sec. 23
The issuer of a financial instrument shall classify
the instrument, or its component parts, on initial
recognition as a financial asset, a financial
liability or an equity instrument in accordance
with the substance of the contractual
arrangement and the definitions of a financial
asset, a financial liability and an equity
instrument.
GAM for NGAs, Chapter 6, Sec. 2
Petty Cash Fund refers to the amount granted to
duly designated Petty Cash Custodian for
payment of authorized petty or miscellaneous
expenses which cannot be conveniently paid
through checks or ADA.
Revised Penal Code, Art. 217
“The failure of a public officer to have duly
forthcoming any public funds or property with
which he is chargeable, upon demand by any
duly authorized officer, shall be prima facie
evidence that he has put such missing funds or
property to personal use.”
PPSAS 2.8
Cash Equivalents- are short-term, highly liquid
investments that are readily convertible to
known amounts of cash and which are subject to
an insignificant risk of changes in value.
GAM for NGAs, Chapter 7, Sec. 10
The derecognition of financial assets is subject
to the provision of the State Audit Code of the
Philippines (P.D. No. 1445) on the writing off of
receivables and other policies issued by the COA.
GAM for NGAs, Chapter 7, Sec. 19
The very purpose of derivatives is risk
management. Risk management is the process
of identifying the desired level of risk, identifying
the actual level of risk and altering the latter to
equal the former.
Art. IX-D, Sec. 2(2), Philippine Constitution
“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 regulation,
including those for the prevention and
disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable
expenditures, or uses of government funds and
properties.”
PPSAS 1/ GAM for NGAs, Chap. 19, Sec. 6
Qualitative Characteristics of Financial
Reporting:
Understandability Substance over form
Relevance Neutrality
Materiality Prudence
Timeliness Completeness
Reliability Comparability
Faithful Representation
Art. VII, Sec. 22, Philippine Constitution
The President shall submit the proposed budget
to the Congress within 30 days from the opening
of every regular session.
Art. VI, Sec. 25(7), Philippine Constitution
When the proposed budget is not enacted
before the fiscal year starts, the last year’s GAA
is automatically reenacted. The last year’s GAA
shall be used in the current year until a new
general appropriations bill is passed by the
Congress.
Art. VI Sec. 25(4), Philippine Constitution
A special appropriations bill shall specify the
purpose for which it is intended, and shall be
supported by funds actually available as certified
by the National Treasurer, or to be raised by a
corresponding revenue proposal therein.
Art. VI Sec. 25(5), Philippine Constitution
No law shall be passed authorizing any transfer
of appropriations; however, the President, the
President of the Senate, the Speaker of the
House of Representatives, the Chief Justice of
the Supreme Court, and the Heads of
Constitutional Commissions may, by law, be
authorized to augment any item in the general
appropriations law for their respective offices
from savings in other items of their respective
appropriations.
GAM for NGAs, Chapter 5, Sec. 38
“The NCA specifies the maximum amount of
withdrawal that an entity can make from a
government bank for the period indicated. The
Collecting Officer shall not issue an Official
Receipt for the receipt of NCA.”
GAM for NGAs, Chapter 6, Sec. 3
To maximize the available NCAs of the agency,
the Common Fund System policy shall be
adopted whereby cash allocation balances of
agencies under the Regular MDS Account may
be used to cover payment of current year’s
accounts payable, after satisfying their regular
operating requirements as reflected in their
Monthly Cash Program.
Art. VI, Sec. 29(3), Philippine Constitution
All money collected on any tax levied for a
special purpose shall be treated as a special fund
and paid out for such purpose only. If the
purpose for which a special fund was created
has been fulfilled or abandoned, the balance, if
any, shall be transferred to the general funds of
the Government.
PPSAS 9.11
i. Exchange Transactions- are transactions in
which one entity receives assets or services,
or has liabilities extinguished, and directly
gives approximately equal value to another
entity in exchange.
j. Non-exchange Transactions- are
transactions in which an entity either
receives value from another entity without
directly giving approximately equal value in
exchange, or gives value to another entity
without directly receiving approximately
equal value in exchange.
PPSAS 23.10
When the consideration transferred does not
approximate the fair value of the resources
received, the entity determines whether the
transaction includes a combination of exchange
and non-exchange transactions. Each
component shall be recognized separately.
PPSAS 23.11
The receipt of trade discounts, quantity
discounts, or other reductions in price does not
necessarily mean that the transaction is a non-
exchange transaction.
PPSAS 9.24
For practical purposes, when services are
performed by an indeterminate number of acts
over a specified time frame, revenue is
recognized on a straight-line basis over the
specified time frame unless there is evidence
that some other method better represents the
stage of completion.
PPSAS 9.25
When the outcome of the transaction involving
the rendering of services cannot be estimated
reliably, revenue is recognized only to the extent
of the expenses recognized that are recoverable.
GAM for NGAs, Chapter 5, Sec. 7
A government entity normally recognizes
revenue form service income when the services
are rendered, except when this is not
practicable, in which case, revenue is recognized
when fees are collected. Similarly, revenue from
business income (except sale of goods) is
recognized when fees are billed, or if not
practicable, when fees are collected.
GAM for NGAs, Chapter 5, Sec. 12
Revenue from non-exchange transactions are
recognized on a cash basis until a reliable
measurement model is developed. Accordingly,
the asset and revenue or liability arising from a
non-exchange transaction are recognized when
collected or when these are measurable and
legally collectible.
Fines and penalties are recognized as income in
the year they are collected. (GAM for NGAs,
Chapter 2, Sec. 33)
However, fines are recognized as revenue when
the receivable meets the recognition criteria for
asset and are measured at the best estimate of
inflow of resources to the entity. (GAM for NGAs,
Chapter 5, Sec. 24)
GAM for NGAs, Chapter 5, Sec. 9
Entities shall evaluate the collectability of
accounts receivable on an ongoing basis based
on historical bad debts, customer/recipient
creditworthiness, current economic trends and
changes in payment activity. An allowance is
provided for known and estimated bad debts.
GAM for NGAs, Chapter 2, Sec. 35
Expenditures funded by borrowings are included
in the expenditure program of the entity. The
loan proceeds shall not be used without the
corresponding release of funds through a
Special Budget.
GAM for NGAs, Chapter 2, Sec. 37
All disbursements require the certification of the
Chief Accountant. Certifications must be based
on valid and properly authorized claims. Any
certification for fictitious obligation is void. The
certifying official shall be dismissed from service
and shall be held criminally liable. Others who
are involved in the fictitious transaction are also
liable.
PPSAS 28.9
Financial instrument- is any contract that gives
rise to both a financial asset of one entity and a
financial liability or equity instrument of another
entity.
GAM for NGAs, Chapter 7, Sec. 23
The issuer of a financial instrument shall classify
the instrument, or its component parts, on initial
recognition as a financial asset, a financial
liability or an equity instrument in accordance
with the substance of the contractual
arrangement and the definitions of a financial
asset, a financial liability and an equity
instrument.
GAM for NGAs, Chapter 6, Sec. 2
Petty Cash Fund refers to the amount granted to
duly designated Petty Cash Custodian for
payment of authorized petty or miscellaneous
expenses which cannot be conveniently paid
through checks or ADA.
Revised Penal Code, Art. 217
“The failure of a public officer to have duly
forthcoming any public funds or property with
which he is chargeable, upon demand by any
duly authorized officer, shall be prima facie
evidence that he has put such missing funds or
property to personal use.”
PPSAS 2.8
Cash Equivalents- are short-term, highly liquid
investments that are readily convertible to
known amounts of cash and which are subject to
an insignificant risk of changes in value.
GAM for NGAs, Chapter 7, Sec. 10
The derecognition of financial assets is subject
to the provision of the State Audit Code of the
Philippines (P.D. No. 1445) on the writing off of
receivables and other policies issued by the COA.
GAM for NGAs, Chapter 7, Sec. 19
The very purpose of derivatives is risk
management. Risk management is the process
of identifying the desired level of risk, identifying
the actual level of risk and altering the latter to
equal the former.
FUNDAMENTAL PRINCIPLES FOR REVENUE (GAM
for NGAs, Chapter 2, Sec. 4 & P.D. No. 1445)
a. All revenues of an entity shall be remitted to
the National Treasury and included in the
General Fund of the National Government,
unless another specifically allows otherwise.
b. All moneys and property received by a public
officer, acting in any capacity or upon any
occasion, shall be accounted for as
government funds and government
property, unless another law specifically
states otherwise.
c. Amounts received in trust and from
business-type activities of the government
may be separately recorded and disbursed in
accordance with relevant rules.
d. Receipts shall be recorded as revenue of
Special, Fiduciary or Trust Funds, or Funds
other than the General Fund only when
authorized by law.
e. A collecting officer shall immediately issue an
official receipt upon collecting a payment of
any nature.
f. Where mechanical devices are used to
acknowledge cash receipts, the COA may
approve, upon request, the exemption from
the use of accountable forms
g. Temporary receipts shall never be used to
acknowledge the receipt of public funds.
h. Pre-numbered official receipts shall be
issued din strict numerical sequence.
Duplicate copies shall be the exact copies of
the original.
i. A collecting officer shall accept payments to
the government in the form checks, upon
proper endorsement and identification of
the payee or endorsee. The collecting officer
shall not use government funds to encash
private checks.
j. Receipt of government funds shall be
acknowledged in accordance with the law-
indicating the date of receipt, from whom
and on what account the fund was received.
FUNDAMENTAL PRINCIPLES FOR REVENUE (GAM
for NGAs, Chapter 2, Sec. 4 & P.D. No. 1445)
a. All revenues of an entity shall be remitted to
the National Treasury and included in the
General Fund of the National Government,
unless another specifically allows otherwise.
b. All moneys and property received by a public
officer, acting in any capacity or upon any
occasion, shall be accounted for as
government funds and government
property, unless another law specifically
states otherwise.
c. Amounts received in trust and from
business-type activities of the government
may be separately recorded and disbursed in
accordance with relevant rules.
d. Receipts shall be recorded as revenue of
Special, Fiduciary or Trust Funds, or Funds
other than the General Fund only when
authorized by law.
e. A collecting officer shall immediately issue an
official receipt upon collecting a payment of
any nature.
f. Where mechanical devices are used to
acknowledge cash receipts, the COA may
approve, upon request, the exemption from
the use of accountable forms
g. Temporary receipts shall never be used to
acknowledge the receipt of public funds.
h. Pre-numbered official receipts shall be
issued din strict numerical sequence.
Duplicate copies shall be the exact copies of
the original.
i. A collecting officer shall accept payments to
the government in the form checks, upon
proper endorsement and identification of
the payee or endorsee. The collecting officer
shall not use government funds to encash
private checks.
j. Receipt of government funds shall be
acknowledged in accordance with the law-
indicating the date of receipt, from whom
and on what account the fund was received.
FUNDAMENTAL PRINCIPLES FOR REVENUE (GAM
for NGAs, Chapter 2, Sec. 4 & P.D. No. 1445)
a. All revenues of an entity shall be remitted to
the National Treasury and included in the
General Fund of the National Government,
unless another specifically allows otherwise.
b. All moneys and property received by a public
officer, acting in any capacity or upon any
occasion, shall be accounted for as
government funds and government
property, unless another law specifically
states otherwise.
c. Amounts received in trust and from
business-type activities of the government
may be separately recorded and disbursed in
accordance with relevant rules.
d. Receipts shall be recorded as revenue of
Special, Fiduciary or Trust Funds, or Funds
other than the General Fund only when
authorized by law.
e. A collecting officer shall immediately issue an
official receipt upon collecting a payment of
any nature.
f. Where mechanical devices are used to
acknowledge cash receipts, the COA may
approve, upon request, the exemption from
the use of accountable forms
g. Temporary receipts shall never be used to
acknowledge the receipt of public funds.
h. Pre-numbered official receipts shall be
issued din strict numerical sequence.
Duplicate copies shall be the exact copies of
the original.
i. A collecting officer shall accept payments to
the government in the form checks, upon
proper endorsement and identification of
the payee or endorsee. The collecting officer
shall not use government funds to encash
private checks.
j. Receipt of government funds shall be
acknowledged in accordance with the law-
indicating the date of receipt, from whom
and on what account the fund was received.
FUNDAMENTAL PRINCIPLES FOR REVENUE (GAM
for NGAs, Chapter 2, Sec. 4 & P.D. No. 1445)
a. All revenues of an entity shall be remitted to
the National Treasury and included in the
General Fund of the National Government,
unless another specifically allows otherwise.
b. All moneys and property received by a public
officer, acting in any capacity or upon any
occasion, shall be accounted for as
government funds and government
property, unless another law specifically
states otherwise.
c. Amounts received in trust and from
business-type activities of the government
may be separately recorded and disbursed in
accordance with relevant rules.
d. Receipts shall be recorded as revenue of
Special, Fiduciary or Trust Funds, or Funds
other than the General Fund only when
authorized by law.
e. A collecting officer shall immediately issue an
official receipt upon collecting a payment of
any nature.
f. Where mechanical devices are used to
acknowledge cash receipts, the COA may
approve, upon request, the exemption from
the use of accountable forms
g. Temporary receipts shall never be used to
acknowledge the receipt of public funds.
h. Pre-numbered official receipts shall be
issued din strict numerical sequence.
Duplicate copies shall be the exact copies of
the original.
i. A collecting officer shall accept payments to
the government in the form checks, upon
proper endorsement and identification of
the payee or endorsee. The collecting officer
shall not use government funds to encash
private checks.
j. Receipt of government funds shall be
acknowledged in accordance with the law-
indicating the date of receipt, from whom
and on what account the fund was received.
FUNDAMENTAL PRINCIPLES FOR REVENUE (GAM
for NGAs, Chapter 2, Sec. 4 & P.D. No. 1445)
a. All revenues of an entity shall be remitted to
the National Treasury and included in the
General Fund of the National Government,
unless another specifically allows otherwise.
b. All moneys and property received by a public
officer, acting in any capacity or upon any
occasion, shall be accounted for as
government funds and government
property, unless another law specifically
states otherwise.
c. Amounts received in trust and from
business-type activities of the government
may be separately recorded and disbursed in
accordance with relevant rules.
d. Receipts shall be recorded as revenue of
Special, Fiduciary or Trust Funds, or Funds
other than the General Fund only when
authorized by law.
e. A collecting officer shall immediately issue an
official receipt upon collecting a payment of
any nature.
f. Where mechanical devices are used to
acknowledge cash receipts, the COA may
approve, upon request, the exemption from
the use of accountable forms
g. Temporary receipts shall never be used to
acknowledge the receipt of public funds.
h. Pre-numbered official receipts shall be
issued din strict numerical sequence.
Duplicate copies shall be the exact copies of
the original.
i. A collecting officer shall accept payments to
the government in the form checks, upon
proper endorsement and identification of
the payee or endorsee. The collecting officer
shall not use government funds to encash
private checks.
j. Receipt of government funds shall be
acknowledged in accordance with the law-
indicating the date of receipt, from whom
and on what account the fund was received.
FUNDAMENTAL PRINCIPLES FOR REVENUE (GAM
for NGAs, Chapter 2, Sec. 4 & P.D. No. 1445)
a. All revenues of an entity shall be remitted to
the National Treasury and included in the
General Fund of the National Government,
unless another specifically allows otherwise.
b. All moneys and property received by a public
officer, acting in any capacity or upon any
occasion, shall be accounted for as
government funds and government
property, unless another law specifically
states otherwise.
c. Amounts received in trust and from
business-type activities of the government
may be separately recorded and disbursed in
accordance with relevant rules.
d. Receipts shall be recorded as revenue of
Special, Fiduciary or Trust Funds, or Funds
other than the General Fund only when
authorized by law.
e. A collecting officer shall immediately issue an
official receipt upon collecting a payment of
any nature.
f. Where mechanical devices are used to
acknowledge cash receipts, the COA may
approve, upon request, the exemption from
the use of accountable forms
g. Temporary receipts shall never be used to
acknowledge the receipt of public funds.
h. Pre-numbered official receipts shall be
issued din strict numerical sequence.
Duplicate copies shall be the exact copies of
the original.
i. A collecting officer shall accept payments to
the government in the form checks, upon
proper endorsement and identification of
the payee or endorsee. The collecting officer
shall not use government funds to encash
private checks.
j. Receipt of government funds shall be
acknowledged in accordance with the law-
indicating the date of receipt, from whom
and on what account the fund was received.
Art. IX-D, Sec. 2(2), Philippine Constitution
“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 regulation,
including those for the prevention and
disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable
expenditures, or uses of government funds and
properties.”
PPSAS 1/ GAM for NGAs, Chap. 19, Sec. 6
Qualitative Characteristics of Financial
Reporting:
Understandability Substance over form
Relevance Neutrality
Materiality Prudence
Timeliness Completeness
Reliability Comparability
Faithful Representation
Art. VII, Sec. 22, Philippine Constitution
The President shall submit the proposed budget
to the Congress within 30 days from the opening
of every regular session.
Art. VI, Sec. 25(7), Philippine Constitution
When the proposed budget is not enacted
before the fiscal year starts, the last year’s GAA
is automatically reenacted. The last year’s GAA
shall be used in the current year until a new
general appropriations bill is passed by the
Congress.
Art. VI Sec. 25(4), Philippine Constitution
A special appropriations bill shall specify the
purpose for which it is intended, and shall be
supported by funds actually available as certified
by the National Treasurer, or to be raised by a
corresponding revenue proposal therein.
Art. VI Sec. 25(5), Philippine Constitution
No law shall be passed authorizing any transfer
of appropriations; however, the President, the
President of the Senate, the Speaker of the
House of Representatives, the Chief Justice of
the Supreme Court, and the Heads of
Constitutional Commissions may, by law, be
authorized to augment any item in the general
appropriations law for their respective offices
from savings in other items of their respective
appropriations.
GAM for NGAs, Chapter 5, Sec. 38
“The NCA specifies the maximum amount of
withdrawal that an entity can make from a
government bank for the period indicated. The
Collecting Officer shall not issue an Official
Receipt for the receipt of NCA.”
GAM for NGAs, Chapter 6, Sec. 3
To maximize the available NCAs of the agency,
the Common Fund System policy shall be
adopted whereby cash allocation balances of
agencies under the Regular MDS Account may
be used to cover payment of current year’s
accounts payable, after satisfying their regular
operating requirements as reflected in their
Monthly Cash Program.
l. Non-exchange Transactions- are
transactions in which an entity either
receives value from another entity without
directly giving approximately equal value in
exchange, or gives value to another entity
without directly receiving approximately
equal value in exchange.
PPSAS 23.10
When the consideration transferred does not
approximate the fair value of the resources
received, the entity determines whether the
transaction includes a combination of exchange
and non-exchange transactions. Each
component shall be recognized separately.
PPSAS 23.11
The receipt of trade discounts, quantity
discounts, or other reductions in price does not
necessarily mean that the transaction is a non-
exchange transaction.
PPSAS 9.24
For practical purposes, when services are
performed by an indeterminate number of acts
over a specified time frame, revenue is
recognized on a straight-line basis over the
specified time frame unless there is evidence
that some other method better represents the
stage of completion.
PPSAS 9.25
When the outcome of the transaction involving
the rendering of services cannot be estimated
reliably, revenue is recognized only to the extent
of the expenses recognized that are recoverable.
GAM for NGAs, Chapter 5, Sec. 7
A government entity normally recognizes
revenue form service income when the services
are rendered, except when this is not
practicable, in which case, revenue is recognized
when fees are collected. Similarly, revenue from
business income (except sale of goods) is
recognized when fees are billed, or if not
practicable, when fees are collected.
GAM for NGAs, Chapter 5, Sec. 12
Revenue from non-exchange transactions are
recognized on a cash basis until a reliable
measurement model is developed. Accordingly,
the asset and revenue or liability arising from a
non-exchange transaction are recognized when
collected or when these are measurable and
legally collectible.
Fines and penalties are recognized as income in
the year they are collected. (GAM for NGAs,
Chapter 2, Sec. 33)
However, fines are recognized as revenue when
the receivable meets the recognition criteria for
asset and are measured at the best estimate of
inflow of resources to the entity. (GAM for NGAs,
Chapter 5, Sec. 24)
and shall be held criminally liable. Others who
are involved in the fictitious transaction are also
liable.
PPSAS 28.9
Financial instrument- is any contract that gives
rise to both a financial asset of one entity and a
financial liability or equity instrument of another
entity.
GAM for NGAs, Chapter 7, Sec. 23
The issuer of a financial instrument shall classify
the instrument, or its component parts, on initial
recognition as a financial asset, a financial
liability or an equity instrument in accordance
with the substance of the contractual
arrangement and the definitions of a financial
asset, a financial liability and an equity
instrument.
GAM for NGAs, Chapter 6, Sec. 2
Petty Cash Fund refers to the amount granted to
duly designated Petty Cash Custodian for
payment of authorized petty or miscellaneous
expenses which cannot be conveniently paid
through checks or ADA.
Revised Penal Code, Art. 217
“The failure of a public officer to have duly
forthcoming any public funds or property with
which he is chargeable, upon demand by any
duly authorized officer, shall be prima facie
evidence that he has put such missing funds or
property to personal use.”
PPSAS 2.8
Cash Equivalents- are short-term, highly liquid
investments that are readily convertible to
known amounts of cash and which are subject to
an insignificant risk of changes in value.
GAM for NGAs, Chapter 7, Sec. 10
The derecognition of financial assets is subject
to the provision of the State Audit Code of the
Philippines (P.D. No. 1445) on the writing off of
receivables and other policies issued by the COA.
GAM for NGAs, Chapter 7, Sec. 19
The very purpose of derivatives is risk
management. Risk management is the process
of identifying the desired level of risk, identifying
the actual level of risk and altering the latter to
equal the former.
occasion, shall be accounted for as
government funds and government
property, unless another law specifically
states otherwise.
m. Amounts received in trust and from
business-type activities of the government
may be separately recorded and disbursed in
accordance with relevant rules.
n. Receipts shall be recorded as revenue of
Special, Fiduciary or Trust Funds, or Funds
other than the General Fund only when
authorized by law.
o. A collecting officer shall immediately issue an
official receipt upon collecting a payment of
any nature.
p. Where mechanical devices are used to
acknowledge cash receipts, the COA may
approve, upon request, the exemption from
the use of accountable forms
q. Temporary receipts shall never be used to
acknowledge the receipt of public funds.
r. Pre-numbered official receipts shall be
issued din strict numerical sequence.
Duplicate copies shall be the exact copies of
the original.
s. A collecting officer shall accept payments to
the government in the form checks, upon
proper endorsement and identification of
the payee or endorsee. The collecting officer
shall not use government funds to encash
private checks.
Receipt of government funds shall be
acknowledged in accordance with the law-
indicating the date of receipt, from whom and
on what account the fund was received.

Art. VI, Sec. 29(3), Philippine Constitution
All money collected on any tax levied for a
special purpose shall be treated as a special fund
and paid out for such purpose only. If the
purpose for which a special fund was created
has been fulfilled or abandoned, the balance, if
any, shall be transferred to the general funds of
the Government.
PPSAS 9.11
k. Exchange Transactions- are transactions in
which one entity receives assets or services,
or has liabilities extinguished, and directly
gives approximately equal value to another
entity in exchange.
GAM for NGAs, Chapter 5, Sec. 9
Entities shall evaluate the collectability of
accounts receivable on an ongoing basis based
on historical bad debts, customer/recipient
creditworthiness, current economic trends and
changes in payment activity. An allowance is
provided for known and estimated bad debts.
GAM for NGAs, Chapter 2, Sec. 35
Expenditures funded by borrowings are included
in the expenditure program of the entity. The
loan proceeds shall not be used without the
corresponding release of funds through a
Special Budget.
FUNDAMENTAL PRINCIPLES FOR REVENUE (GAM
for NGAs, Chapter 2, Sec. 4 & P.D. No. 1445)
GAM for NGAs, Chapter 2, Sec. 37 k. All revenues of an entity shall be remitted to
All disbursements require the certification of the the National Treasury and included in the
Chief Accountant. Certifications must be based General Fund of the National Government,
on valid and properly authorized claims. Any unless another specifically allows otherwise.
certification for fictitious obligation is void. The l. All moneys and property received by a public
certifying official shall be dismissed from service officer, acting in any capacity or upon any