GOVERNMENT ACCOUNTING

1. No money shall be paid out of any public treasury of

depository except in pursuance of an appropriation law or
other specific statutory authority.
2. Government funds or property shall be spent or used solely
for public purposes.
3. Trust funds shall be available and may be spent only for the
specific purpose for which the trust was created or the funds
received.
4. 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.
5. Disbursements or disposition of government funds or property
shall invariably bear the approval of the proper officials.
6. Claims against government funds shall be supported with
complete documentation.
7. All laws and regulations applicable to financial transactions shall
be faithfully adhered to.
8. Generally accepted principles and practices of accounting as
well as of sound management and fiscal administration shall be
observed, provided that they do not contravene existing laws and
regulations.
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. ( PD 1445, Sec. 109)
 produce information concerning past operations and present
conditions;
 provide a basis for guidance for future operations;
 provide for control of the acts of public bodies and officers in the
receipt, disposition and utilization of funds and property; and
 report on the financial position and the results of operations of
government agencies for the information of all persons concerned.
(PD 1445, Sec. 110)
The Constitution of the Philippines mandates the keeping of the
general accounts of the government, promulgation of accounting
rules, and the submission of reports covering the financial condition
and operation of the government.

The government agencies charged with accounting responsibility

are:
 Commission on Audit
 Department of Budget and Management
 Bureau of Treasury
 Government Agencies discharging the functions of government to
enable it to attain it commitments to the Filipino people.
The authority and powers of the Commission shall extend to and
comprehend all matters relating to:
 auditing procedures,
 systems and controls,
 keeping of the general accounts of the Government,
 preservation of vouchers pertaining thereto for a period of ten
years,
 examination and inspection of the books, records, and papers
relating to those accounts;
 audit and settlement of the accounts of all persons respecting funds
or property received or held by them in an accountable capacity,
 examination, audit, and settlement of all debts and claims of any
sort due from or owing to the Government or any of its
subdivisions, agencies and instrumentalities.
COA’s jurisdiction extends to:
 all government-owned or controlled corporations, including their
subsidiaries, and other self-governing boards, commissions, or
agencies of the Government,
 non-governmental entities subsidized by the government
 those funded by donations through the government
 those required to pay levies or government share
 those for which the government has put up a counterpart fund or those partly
funded by the government.
1. To determine whether or not the fiscal responsibility that
rests directly with the head of the government agency has
been properly and effectively discharged;
2. To develop and implement a comprehensive audit program
that shall encompass an examination of financial
transactions, accounts, and reports, including evaluation of
compliance with applicable laws and regulations;
3. To institute control measures through the promulgation of
rules and regulations governing the receipts, disbursements,
and uses of funds and property, consistent with the total
economic development effort of the government;
4. To promulgate auditing and accounting rules and regulations so
as to facilitate the keeping, and enhance the information value,
of the accounts of the government;
5. To adopt measures calculated to hasten the full
professionalization of its services;
6. To institute measures designed to preserve and ensure the
independence of its representatives; and
7. To endeavor to bring its operations closer to the people by the
delegation of authority through decentralization, consistent with
the provisions of the new Constitution and the laws.
The DBM shall assist the President in the:
1. preparation of a national resources and expenditures budget,
2. preparation, execution and control of the National Budget,
3. preparation and maintenance of accounting systems essential to
the budgetary process,
4. achievement of more economy and efficiency in the
management of government operations,
5. administration of compensation and position classification
systems,
6. assessment of organizational effectiveness and review
7. evaluation of legislative proposals having budgetary or
organizational implications.
 The Department shall be responsible for the formulation and
implementation of the National Budget with the goal of
attaining our national socio-economic plans and objectives.
 The Department shall be responsible for the efficient and
sound utilization of government funds and revenues to
effectively achieve our country's development objectives.
(EO 292, Title XVII)
Plays the pivotal role in the cash operations, collections, remittances
and disbursements in the government.
 Assist in the formulation of policies on borrowing, investment
and capital market development;
 Formulate adequate operations guidelines for fiscal and
financial policies;
 Assist in the preparation by government agencies concerned of
an annual program for revenue and expenditure targets,
borrowing levels and cash balances of National Government;
 Maintain books of accounts of the cash transactions;
 Manage the cash resources, collect taxes made by the National
Government (NG) and guarantee forward cover fees due NG,
control and service its public debt, both foreign or domestic;
 Issue, service, redeems government securities for the account of
the National Government as may be authorized by the President
pursuant to law;
 Administer the Securities Stabilization Fund by purchase and sale
in the open market of government bills and bonds to increase the
liquidity and stabilize the value of said securities in order to
promote private investment in government securities;
 Act as principal custodian of financial assets of the National
Government, its agencies and instrumentalities;
 Bond all accountable public officials and employees pursuant to the
provisions of the Public Bonding Law and issue appropriate
guidelines therefore;
 Perform such other related functions as may be assigned to it by
competent authorities.

(BTr website)
All instrumentalities of the National Government, including the
Congress, the Judiciary, the Constitutional bodies, state
Universities and colleges and self-contained institutions and
hospitals are required by law to have accounting
units/divisions/departments, which are to be the same level
with other units/division/departments and under the supervision
of the Head of the Agency.
Accounting personnel shall:
1. Maintain and keep current the accounts of the agency.
2. Provide advice on the financial condition and status of the
appropriations and allotments of the agency as its Head may
require.
3. Develop and conduct procedures designed to meet the needs of
management.

They shall perform the aforesaid duties in accordance with existing

laws, rules, regulations, procedures and comply with the reporting
requirements of COA, DOF and DBM. Failure to comply is sufficient
ground for dismissal from the government service.
Maintained by the Budget Division/Unit of NGA to monitor the
revenue and other receipts estimated/budgeted, collected and
remitted/deposited.
REGISTRY OF REVENUE AND OTHER RECEIPTS - SUMMARY
For the year ___________________

Entity Name : _____________________________ Fund Cluster : ______________________

Variance
Non-Revenue Cumulative (Estimated Unremitted/
Cumulative
UACS Estimated Revenue Collections Revenue/ Revenue over Remittance to Deposit with Undeposited
Date Reference Remittances
Object Code Revenue Collections /Other Other Cumulative BTr AGDB/ AABs Revenue and
and Deposits
Receipts Receipts Revenue and Other Receipts
Other Receipts)

(a) (b) (c) d = (b+c) e = (a-d) (f) (g) h = (f+g) I = (d-h)

 REGISTRY OF REVENUE AND OTHER RECEIPTS
For the year ___________________

Entity Name: ________________________________________

Fund Cluster: Regular Agency/Foreign Assisted Projects Fund Sheet No. : ______________________

Estimated Revenue Tax Revenue Collections Non-Tax Revenue Collections Non-Revenue Collections
Variance
(Estimated
Unremitted/
Clearance Cumulative Revenue Cumulative
Registration Deposit with Undeposited
Income Professional Travel Immigration Permit Registration and Franchising Revenue/ over Remittance Remittances
Date Reference Plates, Tags & Refunds of AGDBs/ Revenue
Tax Tax Tax Tax Fees Fees Certification Fees Other Cumulative to BTr and
Original Adjustments Final Total Sticker Fees Total Overpayment of Total AABs and Other
Fees Receipts Revenue Deposits
Expenses Receipts
and other
Receipts)
(40101010) (40101020) (40101030) (40101040) (40201010) (40201020) (40201030) (40201040) (40201050)

(a) (b) (c) (d) (e) (f) (g) (h) (i)=(b+c+d+e+f) (j) (k) (l) (m) (n) (o) (p)=(h+i+j+k+l+m) (q) (q) (r)= (o+p) (s)= (g+n) (t)= (a-q) (u) (v) (w)=(s+t) (x)=(q-u)
 REGISTRY OF REVENUE AND OTHER RECEIPTS
For the year ____________________

Entity Name: _______________________________________________________________________

Fund Cluster: SA-Locally Funded/Domestic Grants Fund; SA-Foreign Assisted/Foreign Grants Fund Sheet No. : ______________________

Revenue Collections Non-Revenue Collections

Variance
Income (Estimated Unremitted/
Share from from Grants
Cumulative Deposit
Revenue over Cumulative Undeposited
Estimated Permit Fees Registration Franchising
National and
Interest
Refunds of Revenue/ Remittance with
Date Reference Fees Fees Income Cumulative Remittances Revenue and
Revenue Wealth Donations Total Overpayment Total Other to BTr AGDBs/
Revenue and and Deposits Other
in Cash of Expenses Receipts AABs
Other Receipts
Receipts)
(40201010) (40201020) (40201050) (40401010) (40402010) (40202210)

(a) (b) (c) (d) (e) (f) (g) (h) (i)= (b+c+d+e+f+g+h) (j) (k) (l)= (j+k) (m)= (i+l) (n)= (a-m) (o) (p) (q)= (o+p) (r) = (m-q)
 REGISTRY OF REVENUE AND OTHER RECEIPTS
For the year _______________________

Entity Name: _____________________________________________________________________________________

Fund Cluster: Internally Generated Funds (Off-Budgetary Funds-Retained Income Funds)/Business Related Funds Sheet No. : _________________________

Revenue Collections Non-Revenue Collections Variance Unremitted/

Income Cumulative (Estimated Deposit
Cumulative Undeposited
Seminar and from Grants Refunds of Revenue/ Revenue over Remittance with
Estimated Rent/ Lease Remittances Revenue and
Permit Fees School Fees T raining and Total Overpayment Total Other Cumulative to BTr AGDBs/
Date Reference Revenue Income and Deposits Other
Fees Donations of Expenses Receipts Revenue and AABs
in Cash
Receipts
Other Receipts)
(40201010) (40202010) (40202040) (40202050) (40402010)
(a) (b) (c) (d) (e) (f) (g) (h)=(b+c+d+e+f+g) (i) (j) (k)= (i+j) (l)=(h+k) (m)=(a-l) (n) (o) (p)= (n+o) (q)= (l-p)
 REGISTRY OF REVENUE AND OTHER RECEIPTS
For the year __________________

Entity Name : ________________________________________

Fund Clus te r: Trus t Re ce ipts/Inte r-Age ncy Trans fe rre d Funds She e t No. : ___________________

Colle ctions /Re ce ipts Variance

(Estimated Unre mitte d/
Collection/ De pos it Cumulative Unde pos ite d
Estimate d
Due to Due to Due to Trust Receipts over Re mittance with Re mittance s Re ve nue and
Colle ctions / Total Total
Date Re fe re nce NGAs GOCCs LGUs Liabilities to BTr AGDBs / and De pos its Othe r
Re ce ipts Collection/ AABs Re ce ipts
Receipts )
(20201050) (20201060) (20201070) (20401010)
(a) (b) (c) (d) (e) (f) (g)=(d+c+d+e+f) (h)= (a-g) (i) (j) (k)= (i+j) (l)= (g-k)
 Maintained by the Budget Division/Unit of each entity to
monitor appropriations and allotments charged thereto.
 Shows the original, supplemental and final budget for the year
and all allotments received charged against the corresponding
appropriation.
 Ensures that allotment releases are within the authorized
appropriation.
 REGISTRY OF APPROPRIATIONS AND ALLOTMENTS
For the year ____________________

Entity Name : ___________________________________

Fund Cluster : __________________________________ Sheet No. : ________________________

Reference Appropriations Adjustment/s on Appropriations Adjusted Appropriations

Maintenance Maintenance Total Adjustment/s Maintenance Total Adjusted

Total Appropriations
Personnel and Other Financial Capital Personnel and Other Financial Capital on Appropriations Personnel and Other Financial Capital Appropriations
Date GAA/SA/ MFO/PAP
Date GARO/ SARO Services Operating Expenses Outlays Services Operating Expenses Outlays Services Operating Expenses Outlays
No. Expenses Expenses Expenses

(11)+(12)+(13)+
(1) (2) (3) (4) (1)+(2)+(3)+(4)= (5) (6) (7) (8) (9) (6)+(7)+(8)+(9) =(10) (11) (12) (13) (14)
(14)=(15)

REGISTRY OF APPROPRIATIONS AND ALLOTMENTS

For the year ___________________

Entity Name : ___________________________________

Fund Cluster : __________________________________ Sheet No. : ___________________________

Reference Allotments Adjustment/s on Allotments Adjusted Allotments Unreleased Appropriations

Maintenance Maintenance Total Adjustment/s on Maintenance Maintenance Total Unreleased

Total Allotments Total Adjusted Allotments
Date GAA/SA/ MFO/PAP Personnel and Other Financial Capital Personnel and Other Financial Capital Allotments Personnel and Other Financial Capital Personnel and Other Financial Capital Appropriations
Date GARO/ Services Operating Expenses Outlays Services Operating Expenses Outlays Services Operating Expenses Outlays Services Operating Expenses Outlays
SARO No. Expenses Expenses Expenses Expenses

(16) (17) (18) (19) (16)+(17)+(18)+ (19)=(20) (21) (22) (23) (24) (21)+(22)+(23) +(24)=(25) (26) (27) (28) (29) (26)+(27)+(28) +(29)=(30) (31) (32) (33) (34) (31)+(32)+(33) +(34)= (35)
 Maintained by Budget Division/Unit of each entity to record:
 allotments received for the year
 obligations incurred (through issuance of Obligation
Request Status)
 the actual disbursements made.
 REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS
PERSONNEL SERVICES
For the year ______________

Entity Name : ___________________________________

Fund Cluste r : __________________________________ MFO/PAP : ___________________________
Le gal Basis : ___________________________________ She e t No. : _____________________

Re fe re nce Unpaid Obligations

UACS Obje ct
Unobligate d
Date Code / Allotme nts Obligations Disburse me nts
Allotme nts Due and Not Yet Due and
Date Serial Number Expe nditure s
Demandable Demandable
 REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS
MAINTENANCE AND OTHER OPERATING EXPENSES
For the year ________________

Entity Name : __________________________________

Fund Cluste r : _________________________________________ MFO/PAP : ________________________________________
Le gal Basis : __________________________________ She e t No. : ________________________________

Re fe re nce Unpaid Obligations

UACS Obje ct Code /
Date Allotme nts Obligations Unobligate d Allotme nts Disburse me nts Not Yet Due and
Date Serial Number Expe nditure Due and Demandable
Demandable
 REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS
FINANCIAL EXPENSES
For the year __________________

Entity Name : __________________________

Fund Clus te r : ________________________ MFO/PAP : _________________
Le gal Bas is : __________________________ She e t No. : __________________

Re fe re nce Unpaid Obligations

UACS Obje ct Code / Unobligate d

Date Allotme nts Obligations Dis burs e me nts Not Yet Due
Expe nditure Allotme nts Due and
Date Serial Number and
Demandable
Demandable
 REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS
CAPITAL OUTLAYS
For the year _______________

Entity Name : ________________________

Fund Clus te r : _ _____________________ MFO/PAP : _____________________
Le gal Bas is : ________________________ She e t No. : __________________

Re fe re nce Unpaid Obligations

UACS Obje ct
Unobligate d
Date Code / Allotme nts Obligations Dis burs e me nts Due and Not Yet Due and
Date Serial Number Allotme nts
Expe nditure Demandable Demandable
 Maintained by the Budget Division/Unit to record the
approved special budget and the corresponding utilizations
and disbursements charged to retained income authorized
under RA 8292 for State Universities and Colleges (SUCs)
and other retained income collections of a NGA with similar
authority.
 REGISTRY OF BUDGET, UTILIZATION AND DISBURSEMENTS
PERSONNEL SERVICES
For the year ___________________

Entity Name : ________________________________

Fund Cluste r : _______________________________ MFO/PAP : _______________________
Legal Basis: ________________________________ She e t No. : _______________________

Re fe re nce Unpaid Utilization

UACS Obje ct Unutilize d
Budge te d
Date Code / Utilization Budge te d Disburse me nts
Amount Due and Not Yet Due and
Date Serial Number Expe nditure s Amount
Demandable Demandable
 REGISTRY OF BUDGET, UTILIZATION AND DISBURSEMENTS
MAINTENANCE AND OTHER OPERATING EXPENSES
For the year ___________________

Entity Name : _________________________________ Fund Cluster : _____________________

Legal Basis: ____________________________

Reference Unpaid Utilization

UACS Object Unutilized
Budgeted
Date Code/ Utilization Budgeted Disbursements
Amount Due and Not Yet Due and
Date Serial Number Expenditures Amount
Demandable Demandable
 REGISTRY OF BUDGET, UTILIZATION AND DISBURSEMENTS
CAPITAL OUTLAYS
For the year ___________________

Entity Name : ________________________________

Legal Basis: _________________________________ Fund Cluster : _______________________________

Reference Unpaid Utilization

UACS Object Unutilized
Budgeted
Date Code/ Utilization Budgeted Disbursements
Amount Due and Not Yet Due and
Date Serial Number Expenditures Amount
Demandable Demandable
 REGISTRY OF BUDGET, UTILIZATION AND DISBURSEMENTS
CAPITAL OUTLAYS
For the year ___________________

Entity Name : ________________________________

Legal Basis: _________________________________ Fund Cluster : _______________________________

Reference Unpaid Utilization

UACS Object Unutilized
Budgeted
Date Code/ Utilization Budgeted Disbursements
Amount Due and Not Yet Due and
Date Serial Number Expenditures Amount
Demandable Demandable
 Maintained by Accounting Division/Unit to determine the
amount of allotments not covered by Notice of Cash Allocation
(NCA) and to monitor available NCA.

Entity Name : ______________________________ Fund Clus te r : ___________________

She e t Numbe r : __________________

AMOUNT

Notice of Cash Allocation Balance

Date Re fe re nce Allotment
Received
Unutilized Unfunded
Received Utilized
NCA Allotment
(a) (b) ( c) (b - c) (a - b)
 Maintained by Accounting Division/Unit to determine the
amount of allotments not covered by Notice of Transfer
Allocation (NTA) and to monitor NTA.

REGISTRY OF ALLOTMENTS AND NOTICE OF TRANSFER OF ALLOCATION

For the year ___________________

Entity Name (RO/OU) :____________________ Fund Clus te r : ______________

She e t Numbe r : _____________

AMOUNT

Notice of Transfer of Allocation Balance

Date Re fe re nce Allotment
Received
Unutilized Unfunded
Received Utilized
NTA Allotment
(a) (b) ( c) (b - c) (a - b)
Government entities are required to recognized and
present its financial transactions and operations in
conformity with the following:
• The use of Philippine Public Sector Accounting Standard
(PPSAS) effective January 1, 2014 is in accordance with COA
Resolution No. 2014-0030.
• PPSAS was based on International Public Sector Accounting
Standards.
 Transactions and other events are recognized when they
occur, and not when cash or it equivalent is received or
paid.
 Requires comparison of budget amounts and actual amounts
arising from execution of the budget to be included in the
financial statements.
 Requires disclosure of an explanation of the reasons for
material differences between budget and actual amounts.
Uniform accounts to be used in the government accounting and
budget systems to facilitate the preparation of harmonized
financial and budget accountability reports.
Two accounting entries (debit, credit) are required to record
each accounting transactions.
Provide information :
 useful in decision making
 about the sources, allocation, and uses of financial resources
 about how the entity financed its activities and met its cash requirement
 useful in evaluating the entity’s ability to finance its activities and meet
its liabilities and commitments
 about the financial condition of the entity and changes in it
 useful in entity’s performance in terms of service costs, efficiency and
accomplishments
 whether resources were obtained and use in accordance with legally
adopted budget
 whether resources were obtained and used in accordance with legal
and contractual requirements, including financial limits established by
appropriate legislative authorities.
Fund cluster – an accounting entity for recording expenditures and
revenues associated with specific activity for which accounting records
are maintained and periodic financial reports are prepared.

Detailed financial statements and trial balances consolidated by the

fund cluster as follows:
 Regular Agency Fund
 Foreign Assisted Projects Fund
 Special Account- Locally Funded/Domestic Grants Fund
 Special Account- Foreign Assisted/Domestic Grants Fund
 Internally Generated Funds
 Business Related Funds
 Trust Receipt/Inter-agency Transferred Funds (IAFT)
 System that relates the financial results to a
responsibility center, which provides access to cost
and revenue information under the supervision of a
manager having direct responsibility for it performance.
 System that measures the plans (by budget) and actions
(by actual results) of each responsibility.
Part, segment, unit or function of government agency a
government agency, headed by a manager, who is
accountable for a specified set of activities.
 Ensures that all costs and revenues are properly charged/credit to
the correct responsibility so that the deviations from the budget can
be readily attributed to managers accountable therefor,
 Provide a basis for making decisions for future operations,
 Facilitate review activities, monitoring the performance of each
responsibility center and evaluation of the effectiveness of agency’s
operation.