Implementing the

GOVERNMENT ACCOUNTING MANUAL (GAM)

(For National Government Agencies)

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 1 of 27
 The Budget Cycle
BUDGET
PREPARATION

BUDGET BUDGET
ACCOUNTABILITY APPROVAL

BUDGET
EXECUTION

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 2 of 27
 Implementing the
GOVERNMENT ACCOUNTING MANUAL (GAM)
(For National Government Agencies)
The Budget Personnel Perspective

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 3 of 27
 Implementing the GAM:
the Budget Personnel Perspective

• Overview of the GAM

• Preparing the new/revised budget
registries
• Preparing the budget reports

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 4 of 27
 Chapter 1 - Introduction Chapter 7 - Financial Instruments

Chapter 2 - General Provisions, Basic

Standards and Policies Chapter 8 - Inventories

Chapter 3 - Budget Monitoring and

Reporting Chapter 9 - Investment Property

Chapter 4 – Responsibility Accounting Chapter 10 - Property, Plant and

Equipment

Chapter 5 - Revenue and Other

Receipts Chapter 11 - Agriculture

Chapter 6 - Disbursements Chapter 12 - Intangible Assets

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 5 of 27
 Chapter 18 - Provisions, Contingent
Chapter 13 - Leases Liabilities and
Contingent Assets
Chapter 14 - Service Concession
Arrangements:
Grantor Chapter 19 - Financial Reporting

Chapter 15 - Interest in Joint Chapter 20 - Consolidated and

Venture Separate Financial
Statements
Chapter 16 - The Effects of Changes
in Foreign Exchange Chapter 21 - Bank Reconciliation
Rates

Chapter 22 - Illustrative Accounting

Chapter 17 - Borrowing Costs
Entries

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 6 of 27
 Accounting Books, Registries, Records, Forms and
Reports
Books of Accounts

Registries

Records

Forms

Reports

Instructions

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 7 of 27
 The Chart of Accounts as an Object Code in the Unified
Accounts Code Structure (Updated 2015)

• COA Circular No. 2013-002 dated January 30, 2013;

• amendments per COA Circular No. 2014-003 dated
April 15, 2014; and,
• additional/modified accounts not yet covered by
the issuances mentioned.

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 8 of 27
 1) Recording and reporting – PPSAS and pertinent
laws, rules and regulations
2) Accounting – accrual basis PPSAS
3) Budget – PPSAS 24
4) Fund cluster accounting
5) FS or components of GPFR based on accounting
and budget records

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 9 of 27
 • Statement of Financial Position
• Statement of Financial Performance
• Statement of Cash Flows
• Statement of Changes in Net Assets/Equity,
• Statement of Comparison of Budget and Actual
Amounts
• Notes to Financial Statements

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 10 of 27
 • Assets
Resources controlled
Past event
Future economic benefits or service potential
Can be measured reliably
• Liabilities
Present obligations
Past event
Outflow of economic benefits or service potential

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 11 of 27
 • Net Assets/Equity – assets minus liabilities.
• Revenue
Gross inflow of economic benefits or service potential
Increase in net asset/equity
Not increase in contribution from owners
• Expenses
Decrease in economic benefits or service potential
Outflows of consumption of assets
Incurrence of liabilities
Decrease in net assets/equity but not distribution to
owners
GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 12 of 27
 • Policies • FARs • SCBAA
• procedures
• forms
• registries

Budget Accountability Financial

Forms Reports Statement

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GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 14 of 27
 Revenue from Non-Exchange Transactions

Sources Recognition Measurement Reporting

• Tax Revenue • when collected or • Revenue – • Quarterly Report
• Fines and • when these are increase in net of Revenue and
Penalties measurable and assets unless Other Receipts
• Assistance and legally collectible. liability is
subsidy recognized
• Shares, grants and • Asset – FV at date
donations of acquisition
• Liability – PV of
amount to settle

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 15 of 27
 Revenue from Exchange Transactions

Sources Recognition Measurement Reporting

• Service • When • FV of the • Quarterly

Income services/bills consideration Report of
• Business are rendered received or Revenue and
Income or if not receivable Other
• Interests, practicable, Receipts
royalties, when fees are
dividends collected

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 16 of 27
 • Cash (various types of cash advances)
• Check
• Advice to Debit Account
• Expanded Modified Disbursement Payment System
• Cashless Purchase Card System (DND, AFP, DBM)
• Tax Remittance Advice
• Inter-Agency Transferred Funds (IATF)
• Foreign-based Government Agencies (FBGAs)
• Direct Payment Scheme of Foreign Loans Availment
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GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 18 of 27
 • Types of inventories
• (held for sale, distribution, manufacturing, consumption)
• Tangible assets not within the capitalization threshold of
P15,000
• Cost
• Purchase price plus directly attributable cost
• FV, if acquired thru non-exchange transactions
• Cost Formula
• Weighted Average Method
• Specific identification method
• Perpetual Inventory Method

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 19 of 27
 20

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 20 of 27
 Gain on Initial Recognition of Biological Assets

Gain from Changes in Fair Value Less Cost to

Sell of Biological Assets Due to Physical Change

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 future economic benefits
or service potential

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 22 of 27
 • Leases
• Service Concession
• Joint Venture

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 23 of 27
 • Effects of Foreign
Exchange
Differences

• Borrowing Cost

• Provisions,
Contingent
Liabilities and
Contingent Assets
GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 24 of 27
 • Financial Reporting
• Consolidated and
Separate Financial
Statements
• Bank Reconciliation
• Illustrative
Accounting Entries

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 25 of 27
GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 26 of 27
GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 27 of 27