CHAPTER SYNTHESIS

Accounting for Government and Non-Profit Organization

Chapter __1_: _________________________________

The Philippines' public financial management sector has experienced major

reforms, driven by both internal imperatives and worldwide accounting standards trends.
Recent advancements have demanded the alignment of local accounting processes
with international standards, resulting in amendments to the Government Accounting
Manual (NGAS). This document summarizes the main points of these changes and their
ramifications for the Philippine public sector.

The Government Accounting Manual (GAM) is the foundation of public financial

management in the Philippines, as prescribed by the Constitution and regulated by the
Commission on Audit. Under Article IX-D, Section 2 par. (2) of the 1987 Constitution
grants the COA sole jurisdiction to define audit scope, create methodologies, and
implement accounting regulations. The handbook covers a wide range of topics,
including accounting policies, concepts, methods, charts of accounts, and financial
statements that are consistent with Philippine Public Sector Accounting Standards
(PPSAS) and applicable legislation.

The primary objective of the manual is to modernize and harmonize accounting

methods in the public sector. This includes revising the rules, regulations, guidelines,
and procedures that govern the use of government funds and property. The handbook
also covers the coding structure and accounts, as well as the layout and content of
accounting books, registries, records, forms, reports, and financial statements.

The alignment of Philippine public financial management methods with

international accounting standards marks a significant step forward in the country's
efforts to institutionalize good governance and fiscal discipline. By revising the NGAS
Manual and adhering to PPSAS, the Philippines displays its commitment to improving
openness, accountability, and efficiency in public fund administration. While obstacles
remain, current changes set the basis for a more strong and resilient public financial
management system capable of meeting the needs of a dynamic and linked global
economy.