Government Accounting
resources shall be the personal liability
Government Accounting
 Places greater emphasis on:
o Source and utilization of
government funds
o Responsibility, accountability,
and liability of entities
entrusted with government
funds and properties
 Sources of government funds: receipt
from taxes and other fees, borrowings,
and grants from other governments and
international bodies
 Utilization of government funds:
expenditures on programs, projects,
unanticipated losses from calamities
and the like
 Taxes are the main source of funds of
the government.
Responsibility over Government Funds or
Property
 Head of government agency
o Directly responsible in
implementing this policy and
primarily responsible for
government resources
entrusted to his agency
Accountability over Government Funds or
Property GAME
 A government officer entrusted with
the possession of government
resources is responsible for the
safekeeping thereof in accordance with
the law.
 The transfer of government funds from
one officer to another shall, except as
allowed by law, be made only after the
authorization of COA.
Liability over Government Funds or Property
 The unlawful use of government
of the employee found to be directly
responsible therefor.
 No accountable officer shall be relieved
from liability merely because he has
acted under the direction of a superior
officer, unless before that act, he has
notified the superior officer, in writing,
that the utilization is illegal. The
superior officer shall be primarily liable
while the accountable officer who fails
to serve the required notice shall be
secondarily liable.
 An accountable officer shall
immediately notify the COA for any loss
of government funds from unforeseen
events within 30 days.
Accounting responsibility
 Offices charged with government
accounting responsibility:
o Commission on Audit (COA)
o Department of Budget and
Management (DBM)
o Bureau of Treasury (BTr)
o Government agencies
Commission on Audit
 Has the exclusive authority to
promulgate accounting and auditing
rules and regulations
 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)
 Responsible for the formulation and
implementation of national budget with
the goal of attaining the nation’s socio-
economic objectives
Bureau of Treasury (BTr)
 Cash custodian of the government principles
 Authorized to:
o Receive and keep national
funds and manage and control
the disbursement
o Maintain accounts of financial
transactions of all national
government offices, agencies
and instrumentalities
Government agencies
 Responsible in directly implementing
the projects of, and performing the
functions delegated by the government
 Required by law to have accounting
units/divisions/departments.
GAM for NGAs
 Promulgated primarily to harmonize the
government accounting standards with
international accounting standards
 Promulgated by COA based on the
authority conferred to it by the
Philippine Constitution
 Coverage:
o Preparing general purpose FS in
accordance with PPSAS Qualitative
o Reporting of budgets, revenue Reporting
and expenditure in accordance
with laws, rules and regulations
 Objective: To update the
o Standards, policies, guidelines
and procedures in accounting
for government funds and
property
o Coding structure and accounts
o Accounting books, registries,
records, forms, reports and FS
 The principles are similar to the
principles in the PFRS.
 Philippine Constitution: legal basis of
COA in promulgating GAM for NGAs
Basic Accounting and Budget reporting
 Philippine Public Sector Accounting
Standards (PPSAS) and relevant laws,
rules and regulations
 Accrual basis of accounting
 Budget basis of presentation of budget
information in FS
 Revised Chart of Accounts prescribed by
COA
 Double-entry bookkeeping
 FS based on accounting and budgetary
records
 Fund cluster accounting: separate
books and reports are prepared for
each type of fund held by the
government entity
o Regular Agency Fund
o Foreign Assisted Projects Fund
o Special Account-Locally
Funded/Domestic Grants Fund
o Special Account-Foreign
Assisted/Foreign Grants Fund
o Internally Generated Funds
o Business Related Funds
o Trust Receipts
Characteristics of Financial
 Understandability
o Users can reasonably be
expected to comprehend its
meaning
 Relevance
o Information must be timely
o It can assist users in evaluating
past, present or future events
or in conforming or correcting
past evaluation
o To achieve a proper balance
between relevance and
reliability, the overriding
consideration is how users’
needs are best satisfied
  Materiality o Statement of Cash Flows
o If its omission or misstatement o Statement of Comparison of
could influence the decision of Budget and Actual Amounts
users o Notes to FS
o Depends on nature or size of
the item or error
 Timeliness
 Reliability
o 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
 Faithful representation
o It should be presented in
accordance with the substance
of the transactions and other
events and not merely their
legal form
 Substance over form
 Neutrality
o Free from bias
 Prudence
o Exercise of a degree of caution
when making estimates under
conditions of uncertainty
 Completeness
 Comparability
o Users are able to identify
similarities and differences
between that information

General Purpose FS
 Those intended to meet the needs of
users who are not in a position to
demand reports tailored to meet their
particular information needs
 Complete set consists of:
o Statement of Financial Position
o Statement of Financial
Performance
o Statement of Changes in Net
Assets/Equity