GOVERNMENT

ACCOUNTING
SECTION 109 OF PD 1445
ENCOMPASSES THE PROCESS OF
ANALYZING, RECORDING, CLASSIFYING,
SUMMARIZING AND COMMUNICATING ALL
TRANSACTIONS INVOLVING THE RECEIPT
AND DISPOSITION OF GOVERNMENT FUND
AND PROPERTY AND INTERPRETING THE
RESULT THEROF
 OBJECTIVES
TO PRODUCE INFORMATION CONCERNING PAST
OPERATIONS AND PRESENT CONDITIONS
TO PROVIDE A BASIS FOR GUIDANCE FOR FUTURE
OPERATIONS
TO PROVIDE FOR CONTROL OF THE ACTS OF PUBLIC BODIES
AND OFFICES IN THE RECEIPT, DISPOSITION AND
UTILIZATION OF FUNDS AND PROPERTY; AND
TO REPORT ON THE FINANCIAL POSITION AND THE RESULTS
OF OPERATIONS OF GOVERNMENT AGENCIES FOR THE
INFORMATION AND GUIDANCE OF ALL PERSONS CONCERNED
SUBJECTS OF GOVERNMENT ACCOUNTING

NATIONAL GOVERNMENT
LOCAL GOVERNMENT
GOVERNMENT-OWNED OR GOVERNMENT
CONTROLLED CORPORATIONS
NEW GOVERNMENT ACCOUNTING SYSTEM

NEW CODING SYSTEM FORMS

ACCOUNTING SYSTEMS REPORTS
BOOKS FINANCIAL STATEMENTS
REGISTRIES ACCOUNTING ENTRIES
RECORDS
BASIC FEATURES
AND POLICIES
MODIFIED ACCRUAL ACCOUNTING

ALL EXPENSES SHALL BE RECOGNIZED

WHEN INCURRED
ALL INCOME SHALL BE RECOGNIZED
WHEN EARNED EXCEPT WHEN OTHER
METHODS ARE REQUIRED BY LAW
ONE FUND CONCEPT
GENERAL FUND
SPECIAL PURPOSE FUND
A. MISCELLANEOUS PERSONNEL FUND
B. CALAMITY FUND
C. ORGANIZATIONAL ADJUSTMENT FUND
OFF BUDGETARY FUNDS
CUSTODIAN FUNDS
 NEW GENERAL APPOPRIATIONS

ARE ANNUAL AUTHORIZATIONS FOR

INCURRING OBLIGATIONS DURING A
SPECIFIED BUDGET YEAR AS LISTED
IN THE GENERAL APPORPRIATIONS
ACT
CONTINUING APPROPRIATIONS

AUTHORIZATIONS TO
SUPPORT OBLIGATIONS FOR A
SPECIFIED PURPOSE OF
PROJECT
SUPPLEMENTAL APPROPRIATIONS

ADDITIONAL APPROPRIATIONS
ENACTED BY THE CONGRESS TO
SUPPORT ORIGINAL
APPORPRIATIONS THAT HAVE
PROVEN INSUFFICIENT
AUTOMATIC APPROPRIATIONS

AUTHORIZATIONS MADE
ANNUALY WITHOUT THE
INTERVENTION OF THE
CONGRESS
 UNPROGRAMMED
FUNDS
STANDBY FUNDS FOR
PRIORITY PROGRAMS OR
PROJECTS OF
THEGOVERNMENT
 RETAINED INCOME/FUNDS

ARE COLLECTIONS THAT ARE

AUTHORIZED BY LAW TO BE
USED DIRECTLY BY AGENCIES
FO RHE OPERATION
 REVOLVING FUNDS
ARE RECEIPTS DERIVED FROM
BUSINESS-TYPE ACTIVITIES OF
AGENCIES WHICH ARE DEPOSITED
IN AN AUTHORIZED GOVERNMENT
DEPOSITORY BANK
 TRUST RECEIPTS
ARE RECEIPTS THAT ARE OFFICIALLY IN POSSESSION OF
GOVERNMENT AGENCIES OR A PUBLIC OFFICER
A. INTER-AGENCY TRANSFERRED FUNDS
B. RECEIPTS DEPOSITED WITH THE NATIONAL
TREASURY
C. RECEIPTS DEPOSITED WITH AUTHORIZED
GOVERNMENT DEPOSITORY BANK
CHART OF ACCOUNTS AND UNIFIED
ACCOUNTS CODE STRUCTURE

PROVIDES FRAMEWORK WITHIN

WHICE ARE ACCOUNTING
RECORDS ARE CONSTRUCTED
 BOOK OF ACCOUNTS

REGULAR AGENCY BOOKS

NATIONAL GOVERNMENT
BOOKS
 JOURNALS

CASH RECEIPTS LEDGERS

JOURNAL
GENERAL LEDGER
CASH SUBSIDIARY
DISBURSMENT
LEDGERS
REGULAR JOURNAL

BOOKS CHECK
DISBURSMENT
JOURNAL

GENERAL
JOURNAL
 CASH GENERAL
JOURNAL JOURNAL
NATIONAL
GOVERNMENT
BOOKS
GENERAL SUBSIDIARY
LEDGER LEDGER
 BALANCE SHEET
STATEMENT OF
FINANCIAL GOVERNMENT EQUITY
STATEMENTS STATEMENT OF INCOME AND
EXPENSES
STATEMENT OF CASH FLOW
 SHOWING THE
TWO MONEY
COLUMN TRIAL
ACCOUNT
BALANCE BALANCES SHALL
BE USED
 RECEIPT OF NCA
NOTICE OF
BY THE AGENCY
CASH
ALLOCATION
SHALL BE
RECORDED IN THE
BOOKS
 BANK CHARGES , INTEREST
EXPENSE, COMMITMENT
CHARGES AND OTHER RELATED
FINANCIAL
EXPENSE SHALL BE SEPARATELY
EXPENSES CLASSIFIED FROM
MAINTENANCE AND OTHER
OPERATING EXPENSES
 SUPPLIES AND
PERPETUAL
MATERIAL PURCHASED
INVENTORY OF FOR INVENTORY SHALL
SUPPLIES AND
MATERIALS
BE RECORDED USING
THE PERPETUAL
INVENTORY SYSTEM.
• Valuation of Inventory
• Maintenance of Supplies and Property, Plant and Equipment
Ledger Cards
• Construction Assets
• Registry of Public Infrastructures/Registry of Reforestation
Projects
• Depreciation
• Reclassification of Assets
• Allowance for Doubtful Accounts
• Elimination of Contingent Account
• Recognition of Liability
• Interest Accrual
• Accounting for Borrowings and Loans
• Elimination of corollary and negative journal entries
• Petty Cash Fund
• Foreign Currency Adjustment
 The Budget Process

• One of the distinguishing characteristics of government

accounting is the requirement of a budget which shall be
the basis for all expenditure
 Budgetary Procedures

• Budget Preparation and Presentation

• Budget Legislation and Authorization
• Budget Execution or Operation
• Budget Accountability
 Budget Accounts

• Appropriation
• Allotment
• Obligation
 Revenue/Income

• General Income Accounts

• Tax Revenue Accounts
 Expenses

• Personal Services
• Maintenance and Other Operating Expense
• Financial Expenses