Basic Concepts in

GOVERNMENT ACCOUNTING
Basic Concepts in
GOVERNMENT ACCOUNTING
• Definition, scope, objectives of
government accounting
• Budgetary Process
• Government Accounting Manual
(GAM)
• Philippine Public Sector
Accounting Standards (PPSAS)
• Revised Chart of Accounts (RCA)
Learning Outcomes
• define various terms in government budgeting and
•
accounting;
familiarize themselves with the functions of the
different government agencies responsible for the
formulation and control of government funds;
• describe the government budget/process systems;
understand the coding system in the Revised Chart of
•
Accounts (RCA); and
• understand the Government Accounting Manual (GAM)
• Government websites
•
(www.dbm.gov.ph, www.coa.gov.ph)
Government Accounting Manual
Resources • Philippine Public Sector Accounting
Standards (PPSAS)
• Any locally authored book in
government accounting
Definition of
GOVERNMENT ACCOUNTING
Government accounting
encompasses the processes of
analyzing, recording, classifying,
summarizing and communicating all
transactions involving the receipt
and disposition of government
funds and property, and interpreting
the results thereof. (State Audit Code
of the Philippines, P.D. No. 1445, Sec. 109)
 Objectives of
To produce information concerning past operations and

ACCOUNTING
present conditions

s of To provide a basis for guidance for future operations

ying,
cating all
GOVERNMENT

eceipt To provide for control of the acts of public bodies and officers
ent in the receipt, disposition and utilization of funds and property
P.D. No. 1445, Sec. 110

erpreting
dit Code
Sec. 109) To report on the financial position and the results of
operations of government agencies for the information of all
persons concerned
COMMERCIAL ACCOUNTING
To produce information concernin

GOVERNMENT ACCOUNTING
Like the accounting for business entities,
government accounting is also a process present conditions
of producing information that is useful in
making economic decisions.
Sources (which includes Responsibility, To provide a basis for guidance fo
government funds from accountability, and
taxes and other fees, liability of entities
borrowings, and grants entrusted with
from other governments government funds and
and international properties. To provide for control of the acts
bodies), and utilization
(which includes
in the receipt, disposition and uti
expenditures on
programs, projects,
unanticipated losses
from calamities, etc.) of To report on the financial position
government funds
operations of government agenci
persons concerned
Responsibility,
accountability, and RESPONSIBILITY, ACCOUNTABILITY AND LIABILITY
liability of entities over Government Funds and Property
entrusted with
government funds and
properties.
Declaration of policy.
It is the declared policy of
the State that all resources
of the government shall be
managed, expended, or
utilized in accordance with
laws and regulations, and
safeguarded against loss
or wastage through illegal
or improper disposition,
with a view to ensuring
efficiency, economy and
effectiveness in the
operations of government.
(Sec. 2, P.D. No. 1445)
Fundamental principles.
Fiscal responsibility shall,
to the greatest extent, be
shared by all those
exercising authority over
the financial affairs,
transactions, and
operations of the
government agency.
(Sec. 4(4). P.D. No. 1445)
RESPONSIBILITY
Primary and secondary over Government Funds
responsibility. The head of and Property
any agency of the
government is immediately
and primarily responsible
for all government funds
and property pertaining to
his agency. Persons
entrusted with the
possession or custody of
the funds or property under
the agency head shall be
immediately responsible to
him, without prejudice to
the liability of either party
to the government.
(Sec. 102 P.D. No. 1445)
Responsibility,
accountability, and RESPONSIBILITY, ACCOUNTABILITY AND LIABILITY
liability of entities over Government Funds and Property
entrusted with
government funds and
properties.
Accountable officers;
bond requirements. Every
officer of any government
agency whose duties
permit or require the
possession or custody of
government funds or
property shall be
accountable therefor and
for the safekeeping thereof
in conformity with the law.
Every accountable officer
shall be properly bonded in
accordance with the law.
(Sec. 101(1), PD No. 1445; Sec.
50, Chapter 9, Subtitle B, Book
V, Executive Order No. 292)
Transfer of funds from
one officer to another.
Transfer of government
funds from one officer to
another, shall except
allowed by law or
regulation, be made only
upon prior direction or
authorization of the
Commission its
representative. (Sec. 75, PD
No. 1445)
ACCOUNTABILITY
Invoice and receipt upon over Government Funds
transfer of funds. When and Property
government funds or
property are transferred
from one accountable
officer to another, or from
an outgoing officer or his
successor, it shall be done
upon properly itemized
invoice and receipt which
shall invariably support the
clearance to be issued to
the relieved or outgoing
officer, subject to the
regulation of the
Commission. (Sec. 77, PD
No. 1445)
Responsibility,
accountability, and RESPONSIBILITY, ACCOUNTABILITY AND LIABILITY
liability of entities over Government Funds and Property
entrusted with
government funds and
properties.
General liability for
unlawful expenditures.
Expenditures of
government funds or uses
of government property in
violation of law or
regulations shall be a
personal liability of the
official or employee found
to be directly responsible
therefor. (Sec. 103, P.D. No.
1445)
Measure of liability of
accountable officers.
Every officer accountable for
government property shall be
liable for its money value in
case if improper or
unauthorized use or
misapplication thereof, by
himself or any person for
whose acts he may be
responsible. They shall
likewise be liable for all losses,
damages, or deterioration
occasioned by negligence in
the keeping or use of the
property, whether or not it be
at the time in his actual
custody. (Sec. 105(2), P.D. No.
1445)
Liability for acts done by
direction of superior
officer. No accountable officer
shall be relieved from the liability
by reason of his having acted
under the direction of a superior in
paying out, applying, or disposing
of the funds or property with which
he is chargeable, unless prior to
that act, he notified the superior
officer in writing of the illegality of
the payment, application, or
disposition. The officer directing
any illegal payment or disposition
of the funds or property shall be
primarily liable for the loss, while
the accountable officer who fails to
serve the required notice shall be
secondarily liable. (Sec. 106, P.D.
No. 1445)
LIABILITY
over Government Funds
and Property
Credit for loss occurring
in transit or due to
casualty or force
majeure. The officer
accountable thereof or having
custody thereof shall
immediately notify the
Commission or the auditor
concerned and, within 30 days
or such longer period as the
Commission or the auditor
may in the particular case
allowed. (Sec. 73, P.D. No.
1445)
Government Agencies Responsible for the Formulation and Control of Government Funds

Has the exclusive authority to promulgate accounting

Commission on and auditing rules and regulations
Audit

Keeps the general accounts of the government,

supporting vouchers, and other documents

Submits financial reports to the President and

Congress
Michael G. Aguinaldo was appointed
as Chairperson of the Commission (Article IX-D of the 1987 Philippine Constitution)
on Audit, the Philippine Supreme
Audit Institution (SAI), on 24 March Visit this link for additional information: https://coa.gov.ph/index.php/2013-06-19-13-06-03/principal-duties
2015.
Government Agencies Responsible for the Formulation and Control of Government Funds

Department of Budget The DBM, created under Executive Order No. 25 dated
and Management April 25, 1936, is responsible to promote, formulate
and implement sound, efficient, and effective
management and utilization of government resources
and national budget with the goal of attaining the
nation’s socio-economic objectives.
Visit this link for additional information: https://www.dbm.gov.ph/index.php/about-us/general-functions

The current secretary is Tina Rose

Marie Canda, who serves in an
acting capacity, following the
resignation of Wendel Avisado on
August 13, 2021
Government Agencies Responsible for the Formulation and Control of Government Funds

The BTr functions under the Department of Finance and is the

cash custodian of the government. It acts as principal
custodian of the financial assets of the national government. It
Bureau of makes funds available for various government programs and
Treasury projects. It assists in the formulation of policies on borrowing,
investment, and capital market development; in managing
cash resources; in collecting taxes; and in controlling and
servicing public debt.

Receive and keep national funds and manage and control

the disbursements thereof
National Treasurer

Maintain accounts of financial transactions of all national

government offices, agencies, and instrumentalities.
Accounting
Responsibility

GOVERNMENT
AGENCIES

Government agency refers to any department, bureau or office of the national government, or
any of its branches and instrumentalities, or any political subdivisions, as well as any
government-owned or controlled corporation (GOCC), including its subsidiaries, or other self-
governing board or commission of the government. (Sec. 3(8), PD No. 1445)

The government agencies are responsible in directly implementing the projects of, and
performing the functions delegated by, the government.

Each agency shall maintain accounting books and budget registries which are reconciled with
the cash records of the BTr and the budget records of the COA and DBM.

Government agencies are required by law to have accounting units / divisions / departments.