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Presentation on the adoption

of the
International Public Sector
Accounting Standards (IPSAS)
into the
Philippine Public Sector
Accounting Standards
(PPSAS)

Philippine Public Sector Accounting Standards Board (PPSASB)


PPSAS 24
PRESENTATION OF BUDGET
INFORMATION
IN FINANCIAL STATEMENTS
LEARNING OBJECTIVES

At the end of the session, the participants will


be able to:
state the presentation of the budgetary
information in the financial statements in
accordance with PPSAS 24
identify the proposed updates on
accounting, monitoring, and reporting of
budgetary information

IPSAS 24 Presentation of Budget Information in


Financial Statements
3
OBJECTIVES of PPSAS 24

Compliance with the standard


will ensure that public entity:
discharge their accountability
obligation and
enhance transparency of their
financial statements

IPSAS 24 Presentation of Budget Information in


Financial Statements
What do you understand with the
following:
1. Accounting basis
2. Budgetary basis
3. Comparable basis
4. Approved budget
5. Original budget
6. Supplemental appropriation
7. Final budget
8. Obligations
9. Actual Amounts

IPSAS 24 Presentation of Budget Information in


Financial Statements
DEFINITION OF TERMS

Accounting basis means the accrual


or cash basis of accounting as
defined in the accrual basis
IPSASs and the Cash Basis
IPSAS.

IPSAS 24 Presentation of Budget Information in


Financial Statements
DEFINITIONS

Budgetary basis means the accrual,


cash, or other basis of accounting
adopted in the budget that has been
approved by the legislative body.

IPSAS 24 Presentation of Budget Information in


Financial Statements
DEFINITION OF TERMS

Comparable basis means the


actual amounts presented on
the same accounting basis,
same classification basis, for the
same entities, and for the
same period as the approved
budget.
IPSAS 24 Presentation of Budget Information in
Financial Statements
DEFINITION OF TERMS

Approved budget means the


expenditure authority derived
from laws, appropriation bills,
government ordinances, and
other decisions related to the
anticipated revenue or receipts
for the budgetary period.
IPSAS 24 Presentation of Budget Information in
Financial Statements
DEFINITIONS

Original Budget is the approved


budget including PY continuing
appropriations
Supplemental Appropriation is an
additional budget enacted when
the approved budget is not
sufficient
IPSAS 24 Presentation of Budget Information in
Financial Statements
DEFINITION OF TERMS

Final Budget is the original


budget, adjusted for all reserves,
carry over amounts, transfers,
allocations, supplemental
appropriations and other
authorized changes in a budget
period
IPSAS 24 Presentation of Budget Information in
Financial Statements
DEFINITION OF TERMS

Obligations maybe referred to as


commitments which encompass
possible future liabilities based
on a current contractual
agreement.

IPSAS 24 Presentation of Budget Information in


Financial Statements
DEFINITION OF TERMS

Actual Amounts refers to the


amount that result from the
execution of the budget.

IPSAS 24 Presentation of Budget Information in


Financial Statements
PRESENTATION OF A COMPARISON
OF BUDGET AND ACTUAL AMOUNTS

An entity shall present a comparison


of the budget amount for which it is
held publicly accountable and actual
amounts, either as a separate
additional financial statements or an
additional budget column in the FS
currently presented in accordance
with the PPSAS.
IPSAS 24 Presentation of Budget Information in
Financial Statements
PRESENTATION AND
DISCLOSURE

An entity shall prepare a comparison


of budget and actual amounts as
additional budget column in the
primary financial statements only
where the financial statements and
budget are prepared on a comparable
basis.
IPSAS 24 Presentation of Budget Information in
Financial Statements
PRESENTATION AND
DISCLOSURE

When the budget and financial


statements are not prepared on a
comparable basis, a separate
Statement of Budget and Actual
Amounts shall be presented.

IPSAS 24 Presentation of Budget Information in


Financial Statements
Comparison of Budget and Actual Amounts

BUDGET
Receipts
Payments
Statement of
Comparison of
Budget and
Actual
Amounts

ACTUAL
Receipts
Payments

IPSAS 24 Presentation of Budget Information in


Financial Statements
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS

Budgeted Amounts Actual Amounts Difference


on Comparable Final Budget and
(in currency units Original Final Basis Actual

RECEIPTS
Tax Revenue
Service and Business Income
Assistance and Subsidy
Shares, Grants and Donations
Gains
Other Non-Operating Income
Total Receipts

PAYMENTS

Personnel Services
MOOE
Financial Expenses
Capital Outlay
Total Payments

NET RECEIPTS (PAYMENTS)


IPSAS 24 Presentation of Budget Information in
Financial Statements
Budget Actual

PAYMENTS RECEIPTS
FAR/SCF FAR/SCF/

PAYMENTS RECEIPTS
BESF/GAA/SA/Agency BESF/Agency
Budget Budget

IPSAS 24 Presentation of Budget Information in


Financial Statements
DISCLOSURES

Explanation or reason for changes


between original and final budget
Budgetary basis of approved budget
Classification basis of approved
budget
Period of approved budget

IPSAS 24 Presentation of Budget Information in


Financial Statements
RECONCILIATION

Reconciliation of Budget and Actual Amounts


net cash flows from operating
activities, investing activities, and
financing activities
basis differences
timing differences and
entity differences

IPSAS 24 Presentation of Budget Information in


Financial Statements
Reconciliation format

IPSAS 24 Presentation of Budget Information in


Financial Statements
EFFECTIVITY

An entity shall apply this PPSAS


for annual financial statements
covering periods beginning
January 1, 2014

IPSAS 24 Presentation of Budget Information in


Financial Statements
Part 2
Updates on Accounting,
Monitoring and Reporting of
Budgetary Information
Budgetary Accounts

Budgetary Accounts refer to


appropriations, allotments, obligations
incurred and disbursements

IPSAS 24 Presentation of Budget Information in


Financial Statements
Recording of Appropriations
and Allotments.

The Registry of Appropriation and


Allotment (RAPAL) prescribed in
NGAS Manual shall be used by the
agency to monitor the appropriations
and allotments. It shall show the
original and final budget for the year
and allotments.
IPSAS 24 Presentation of Budget Information in
Financial Statements
Registry of Appropriations and
Allotment

REGISTRY OF APPROPRIATION AND ALLOTMENT


(RAPAL)
___________________________
Agency
P.A.P. : ______________

Sheet No.: ______________

Adjusted Unreleased
Date Reference Appropriation Adjustment Allotment
Appropriation Appropriation

IPSAS 24 Presentation of Budget Information in


Financial Statements
Recording of Allotments,
Obligations and Disbursements

The Registry of Allotments and


Obligations (RAO) prescribed in
NGAS Manual shall be revised and
to be called Registry of Allotments,
Obligations and Disbursements
(RAOD).

IPSAS 24 Presentation of Budget Information in


Financial Statements
Registry of Allotment, Obligation and
Disbursement (RAOD)

The RAOD shall be used to record


allotments, obligations and
disbursements. It shall show all the
allotments received, obligations incurred
charged against the corresponding
allotment and the actual disbursements
made.

IPSAS 24 Presentation of Budget Information in


Financial Statements
Registry of Allotment, Obligation and
Disbursement
Appendix 1

REGISTRY OF ALLOTMENT, OBLIGATION AND DISBURSEMENT


PERSONAL SERVICES (RAOD PS)
___________________________
Agency
P.A.P. : ______________

Sheet No.: ______________

Account Code Allotment Obligation Unobligated Disbursements Unpaid


Date Reference
Allotment Obligation

IPSAS 24 Presentation of Budget Information in


Financial Statements
Registry of Allotment, Obligation and
Disbursement (RAOD)

A separate RAOD shall be


maintained by financing source, fund
and by allotment class.
RAOD PS
RAOD MOOE
RAOD CO
RAOD - FE
IPSAS 24 Presentation of Budget Information in
Financial Statements
Recording of Appropriations
and Allotments.

The Budget Unit shall maintain the


RAPAL and the RAOD.

IPSAS 24 Presentation of Budget Information in


Financial Statements
Recording of Obligation

The Obligation Request (ObR)


form shall be revised and to be
called Obligation Request and
Status (ORS)

IPSAS 24 Presentation of Budget Information in


Financial Statements
Recording of Obligation

Obligations shall be recorded in


the RAOD through the use of
Obligation Request and Status
(ORS)

IPSAS 24 Presentation of Budget Information in


Financial Statements
IPSAS 24 Presentation of Budget Information in
Financial Statements
Recording of Obligation and
Disbursement
The ORS shall be certified by:
Section A - by the head of the
Requesting Unit as to the necessity
and legality of charges to
appropriations/allotments under his
direct supervision, and supporting
documents valid, proper and legal.

IPSAS 24 Presentation of Budget Information in


Financial Statements
Recording of Obligation and
Disbursement

The ORS shall be certified by:


Section B by the head of the Budget
Unit that allotments are available and
obligated for the purpose/adjustment
necessary.

IPSAS 24 Presentation of Budget Information in


Financial Statements
Recording of Obligation and
Disbursement

The ORS shall be certified by:


Section C shall serve as the subsidiary
ledger of obligation and shall be
maintained at the Budget Unit.

IPSAS 24 Presentation of Budget Information in


Financial Statements
Adjustment of Obligation

The Notice of Obligation Request


and Status Adjustment (NORSA)
shall be used in adjusting the
obligation in the RAOD by the
Budget Unit after the processing of
the claim by Accounting Unit

IPSAS 24 Presentation of Budget Information in


Financial Statements
IPSAS 24 Presentation of Budget Information in
Financial Statements
Examples of adjustments/ corrections to
obligations

a) refund of cash advances granted


during the year;
b) overpayment of expenses incurred
during the year;
c) disallowances/charges (CY transactions)
as a result of audit which are final and
executory; etc.
Adjustment of Obligation
NOTICE OF OBLIGATION REQUEST AND STATUS ADJUSTMENT NO:
_______________________________ DATE:
Agency

For: The Budget Officer:


Budget Unit

Please adjust ORS No. ___________________dated ___________________


due to the following changes:

Responsibility Center to ___________________________


Particulars to ___________________________
P. A. P. to ___________________________
Account Code to ___________________________
Amount to P ___________________________

Please adjust obligation in the RAOD per attached


JEV No. ___________dated ____________.

Prepared by: Approved by:

_______________________ ______________________
Accounting Staff- in- Charge Chief, Accounting Unit

IPSAS 24 Presentation of Budget Information in


Financial Statements
Recording of Disbursement

Disbursements shall be
recorded in the RAOD based
on the RCI / RD /JEV

IPSAS 24 Presentation of Budget Information in


Financial Statements
Revision in the Disbursement Voucher
Form

Inclusion of the Obligation Number/


ORS No. in the new form of
Disbursement Voucher

IPSAS 24 Presentation of Budget Information in


Financial Statements
For Retained Income or Income
authorized for agency use

The Registry of Budget, Utilization and


Disbursement (RBUD) shall be
maintained
The Budget Utilization Request and
Status shall be used to record
utilization of budget.
The RCI/RD/JEV shall be the basis of
recording disbursements.
IPSAS 24 Presentation of Budget Information in
Financial Statements
The updates discussed shall
form part of the revised
Government Accounting
Manual (GAM) for use by
national government agencies.
The GAM will replace the
NGAS Manual.
IPSAS 24 Presentation of Budget Information in
Financial Statements
THANK YOU

IPSAS 24 Presentation of Budget Information in


Financial Statements