FOREWORD

After almost five decades of faithful adherence to the rigid and complicated
government accounting procedures designed by foreign consultants, the
Commission on Audit, based on the authority granted under Sec. 2 (2), Art. IX-D of
the 1987 Constitution, made a sweeping revamp of the existing government
accounting system. On October 30, 2001, it issued COA Circular No. 2001-005
prescribing the use by local government units of the New Government Accounting
System (NGAS) effective January 1, 2002. The new system was developed in
response to one of COA’s priority reform measures which is the “Government
Accounting Simplification and Computerization”.

The NGAS is a simplified set of accounting concepts, guidelines and

procedures designed to ensure correct, complete and timely recording of
government financial transactions, and production of accurate and relevant financial
reports. This book, while containing the manual version, envisions the eventual
computerization of the NGAS to provide users with greater ease and a more
comprehensive financial management information system.

This change is considered a milestone in the history of the Government,

particularly the COA, as it was formulated in a span of four months by a team of
highly professional and competent COA officials.

As a guide for government finance officers, accountants, bookkeepers,

budget officers and accountable officers in the actual application of the system in
their respective activities, this Manual, consisting of three volumes, is hereby
issued.

It is hoped that this Manual will be of help to government officials and

other personnel, researchers, academicians and other users of the NGAS.