1. Under Section 109, of the Presidential Decree (PD) no.

1445, defines Government Accounting

as one that encompasses the process of analyzing, classifying, summarizing and communicating
all transactions that are involved in the receipt and disbursement of all government funds and
properties, and interpreting the results thereof. In pursuant to this definition, objectives were set
to cover several areas in government operations.

State/Government Accounting produce relevant financial information about past and present
transactions of government. It also serves as basis for decision making for future operations
might as well act as the control mechanism for the receipt, disposition and utilization of
government funds and properties.

In addition, it also come up with financial reports pertaining to the results of operations of
various government agencies that are for dissemination to the public.

The need for timely preparation of financial reports in government is necessary to evaluate the
performance of the different agencies of government. The result of the reports would indicate the
areas that may still need improvement, as well as come up with the budgetary requirements for
these agencies if deemed necessary.

Public officers are managers of funds that are entrusted to them by the national government. The
financial reports would clearly show if the agencies are achieving what is mandated of them.
These reports would also show the extent in the use of agency assets and resources, as well as the
need for additional infusion of funds if required

The accounting data would show how the funds of government were used. This would also
reveal the inflow and outflow of funds and the need for stiffer fund management and control, if
necessary.

State/government accounting involves handling of daily financial transactions of the

government. This includes very diverse functions ranging from the incoming/revenue earnings to
the outgoing procurement. Some accounting functions include the expenditures or payments sent
to stakeholders. It also includes the cash, commodities, services and electronic payments
received from stakeholders by means of foreign exchange; and monetary values written and
received by the government. Payroll and tax deductions, along with the reconciling of the
government’s books for the year, are all accounting processes.

It is important to note that government accounting is necessary for many reasons:

First, to keep systematic, easily accessible accounting and documentary records as evidence of
past transactions and current financial status, so that detailed transactions can be identified and
traced and all aggregates can be conveniently broken down into their constituent parts.

An example of this is the monitoring and evaluation of the government on whether they will
increase the proposed budget for the next fiscal year in accordance with the requirements of the
new financial status of the government, likewise it will also help them evaluate whether they
shall pursue the project that is not cost-efficient so that they could redirect their goals and
priorities to other projects of the government in line with the mandated tasks laid down by the
President.

Second is the budgetary control, government accounting facilitates budgetary control. No

government institution can make expenditure more than the allocated budget amount. In the
Municipality of Camalanuigan, the Office of the Municipal Budget is the one who controls the
budget of the LGU Camalanugan and through this office all transactions regardless it is included
in the approved budget or not should pass through the scrutiny of the office. Therefore, if the
Office of the Mayor will have an emergency repair of its office, the Budget Officer shall see to it
that the repair is within its budget limit and recommends any financial advice if deemed
necessary.

Finally, government accounting helps with the profit and loss. The main objective of the
government is to maintain law and order in the country. So, it does not reveal profit and loss but
it reveals how public funds have been used.

In my own observation, there are several government officials who post or disseminate the
expenditures on walls and tarpaulins attached to an ongoing site or project of the government, It
is a way to let the public know where their taxes are going and how the government spent it. It
also helps the public to understand the efforts of the government in providing transparency.

2. The users of the accounting information of the Municipality of Camalanuigan are the Municipal
Mayor, Vice-Mayor and the member of the Sangguniang Bayan, Department Heads of the Municipality
most specially the Municipal Accountant, the state auditors, the banks, the lending/financial institutions,
the public and other stakeholders.

3. Office of the Municipal Mayor- is for her to be informed of the transactions of the Municipality
because she is one of the signatories in the vouchers and checks issued for payment of their obligations to
different payees.

b. Office of the Vie-Mayor and member of the Sangguniang Bayan- is for them to be keep updated on
how the funds of the Municipality are being spent.

c. Municipal Accountant- is for her to account every transactions of the Municipality in order to be
transparent in the dealings of the Municipality

d. State Auditors- to see to it that funds were utilized efficiently, effectively and economically. Also, to
see to it that financial statements are fairly presented by the Municipal Accountant.

e. Banks- to see to it that they have enough funds in the bank accounts of the Municipality
f. Lending/Other Financing Institutions- is to see to it that before granting any loans to employees of the
Municipality, they have enough salary to pay for their obligations

g. Public and other stakeholders- is for them to be informed/updated/aware on the different transactions of
the Municipality for transparency and accountability.