MARAYAG, Ericka Faith E.

2190000
CMPC 311 – 1269 3:00-4:00pm MWF

Chapter 1 (page 18)

1. Define Government Accounting.
- Under the new accounting system, Government Accounting encompasses the process
of analyzing, recording, classifying, summarizing and communicating all transactions
involving the receipt and disposition of government fund and property and
interpreting the result thereof.
2. Enumerate the objectives of the government accounting according to Section 110,
Presidential Decree 1445.
- To provide information concerning past operations and present conditions.
- To provide a basis for guidance for future operations.
- To provide for control of the acts of public bodies and offices in the receipt,
disposition and utilization of funds and property
- To report on the financial position and results of operations of government agencies
for the information and guidance of all persons concerned.
3. Explain briefly the purposes of creating the Public Sector Accounting Standards
Board (PSASB)
- To formulate and implement public sector accounting standards and establish
linkages with international bodies, professional organizations and academe on
accounting related fields on financial management
4. Explain the processes of developing the Philippine Public Sector Accounting
Standards (PPSAS)
- Applicability of IPSAS – the PSAcSB recommended the adoption of the IPSAS
- Exposure draft of IPSAS – the PSASB issued exposure drafts to the interested parties
to consider and comments on the proposals which would be evaluated later on.
- Fundamental Issues – when something is in conflict with the Philippine laws, this
would be regarded as Fundamental issue which may result for the principle or
requirement to be changed.
- Statutory Authority – the Philippine application guidance shall be issued accordingly
- Disclosure Requirements
- PPSAS Membering
- Financial Reporting issues not dealt with by IPSAS – researches were done and a
discussion document prepared based on other relevant accounting standards not in
conflict with Philippine laws.
- Submission of draft to PSASB for consideration of the COA – the PSASB may
decide to re-expose proposed PPSAS.
 - If considered appropriate, focus group discussions will be held to obtain further
opinions on issues identified by the exposure process.
5. What are the government offices primarily charged with the Accounting
Responsibility? Explain their respective responsibility.
- Commission on Audit – they keep the general accounts of the government,
promulgates accounting rules and regulations, and submits to the President and
Congress.
- Department of Budget and Management – they are responsible for the formulation
and implementation of the National Budget with the goal of attaining our national
socio-economic plans and objectives.
- Bureau of Treasury – receive and keep national funds, manage and control
disbursements thereof, and; maintain accounts of financial transactions of all national
government offices, agencies and instrumentalities.
- National Government Agencies - Departments, bureaus, offices, and other
instrumentalities are required by law to have accounting units under the supervision
of the Head of Agency.
6. Enumerate the Registries of the National Government Agencies (NGAs) as provided
by the Government Accounting Manual (GAM).
- Registry of Revenue and Other Receipts – Summary (RRORS)
- Registry of Revenue and Other Receipts – Regular Agency and Foreign Assisted
Projects Fund (RRORRA&FAP)
- Registry of Revenue and Other Receipts – Special Account Locally Funded/Domestic
Grants Fund and Special Account Foreign Assisted/Foreign Grants Fund
(RRORSADFGF)
- Registry of Revenue and Other Receipts – Internally Generated Funds (Off-
Budgetary Funds – Retained Income Funds)/Business Related Funds (RROR-
IGF/BRF)
- Registry of Allotments, Obligations and Disbursements – Capital Outlays (RAOD-
CO)
- Registry of Budget, Utilization and Disbursements – Personnel Services (RBUD-PS)
- Registry of Budget, Utilization and Disbursements – Maintenance and Other
Operating Expenses (RBUDMOOE)
- Registry of Budget, Utilization and Disbursements – Financial Expenses (RBUD-FE)
- Registry of Budget, Utilization and Disbursements – Capital Outlays (CO)
- Registry of Allotments and Notice of Cash Allocation (RANCA)
- Registry of Allotments and Notice of Transfer of Allocation (RANTA)
7. What are the basic accounting and budget reporting principles under the
Government Accounting Manual?
- Generally accepted government accounting principles in accordance with the PPSAS
and pertinent laws, rules and regulations.
- Accrual basis of accounting in accordance with the PPSAS.
 - Budget basis for presentation of budget information in the financial statements in
accordance with PPSAS 24.
- Revised Chart of Accounts prescribed by Commission on Audit.
- Double entry bookkeeping
- Financial Statements based on accounting and budgetary records.
- Fund Cluster accounting.
8. How would the general purpose financial reporting in the public sector provide
useful information for decision making and demonstrate the accountability of the
government entity?
- The GPFRs would contain the financial information including the total assets and
liabilities which would be useful in decision making. The GPFRs would also show
the performance of the government when it comes to handling the funds and
properties which could be useful to evaluate their actions and decisions.
9. Enumerate and Explain the concept of responsibility accounting.
- Responsibility accounting involves accumulating and reporting data on revenues and
costs on the basis of the manager’s action who has authority to make the day-to-day
decisions about the items. – This means that the results of the manager’s decisions
must be written and reported.
- Evaluation of a manager’s performance is based on the matters directly under his
control – This means that the manager’s performance is based solely on the results of
his decisions.
- The reporting of costs and revenues under responsibility accounting differs from
budgeting in two aspects: a. A distinction is made between controllable and non-
controllable costs; and b. Performance reports either emphasize or include only items
controllable by individual manager. – It is needed for a report to either make a
distinction between things that is controlled and uncontrolled by the manager or only
present items that are controlled by the manager.
- A responsibility reporting system involves the preparation of a report for each level of
responsibility. Responsibility reports usually compare actual costs with flexible
budget data. The reports show only controllable costs and no distinction is made
between variable and fixed costs.
- Evaluation of a manager’s performance for cost centers is based on his ability to meet
budgeted goals for controllable costs.
In short, only the results of the manager’s decisions and actions included in the report
must be used to evaluate his performance.