Implementing the

Computerized Government
Accounting System:
Philippine Experience

Carmela S. Perez, DBA

Assistant Commissioner,
Government Accountancy and
Financial Management Information System
Commission on Audit
 Outline:

 Constitutional Mandate
 Government Accounting System Simplification and
Computerization (New Government Accounting
System (NGAS) and Electronic NGAS (eNGAS))
 Objectives

 Milestones

 eNGAS Definition
 eNGAS Environment / Technical Features

 Beneficiaries
Outline:

 Basic Features

 Financial Statements Generated

 Financial Reports Generated

 Conceptual Framework

 Rollout Status

 Rollout Strategies
 Lessons Learned from the Rollout
 Outline:

 Next Steps
 Agency - Level Integrated Financial Management
Information System (IFMIS)
• Components
• Description
• Objectives
• Features
• Benefits
• Conceptual Framework
 Inter-agency IFMIS
 eAudit
 What They Say About eNGAS
 Constitutional Mandate

“The Commission on Audit shall have exclusive

authority, subject to limitations, to define the scope of
its audit examination, establish the techniques and
methods required therefore and promulgate
accounting and auditing rules and regulations,
including those for the prevention and disallowance of
irregular, unnecessary, excessive, extravagant, or
unconscionable expenditures, or uses of government
funds and properties.” (Article IX-D, Section 2 Par. (2)
of the 1987 Constitution of the Republic of the
Philippines)
 Government Accounting System Simplification
and Computerization (NGAS and eNGAS)
Chairman Guillermo N. Carague assumed
office in February 2, 2001
 Design and development of the
New Government Accounting
System (NGAS) (Source: COA News)

 NGAS Steering Committee

 COA Chairman
 3 Assistant
Commissioners (Source: COA News)
 2 Directors
 Design and development of the Electronic New
Government Accounting System (eNGAS)
 Objectives

 Standardize recording of government financial

transactions
 Consolidate Financial Reports for National
Government Agencies (NGAs), Local Government Units
(LGUs) and Government Owned & Controlled
Corporations (GOCCs)

 Align the Accounting System with International

Accounting Standards (IAS) / International Financial
Reporting Standards (IFRS)
 Improve accountability and governance through
transparency in governmental financial management
 Milestones

 NGAS designed and developed in June –

October 2001

 NGAS launched in Nov. 14, 2001

 Nationwide training conducted in Nov. &
December 2001

 NGAS implemented in NGAs and LGUs in

January 2002

 Piloted in COA in April – September 2003

 Milestones…

 Started roll-out of eNGAS in three NGAs and two

LGUs in October 2003

 Implemented in GOCCs starting

January 2005

 On-going - 33 NGAs,
15 Regional Offices of COA, 10 LGUs
and 1 GOCC
 eNGAS Definition

 New Government Accounting System (NGAS)

software

 Correct, reliable and timely recording of

government financial transactions

 Financial reports in accordance with NGAS

 eNGAS Environment / Technical
Features

 Runs on Microsoft SQL Server

 Multi-user operations
 Alpha search and look up system codes and
transactions
 Online data entry and validation
 Online query and reporting facility
 Audit trail for system users
 Automatic recovery from hardware and system
failures
Beneficiaries

 Agency management
 Agency accounting personnel
 Oversight and regulatory agencies
 General public
 Government executives and legislative
officials
Basic Features: User friendly screens
Basic Features: Accounting journal entry
templates for common
transactions
Basic Features: Balanced debit and credit for
accounting journal entries
Basic Features: Data validation
Basic Features: Electronic approval and posting
of transactions to General
Ledger and Subsidiary Ledger
Basic Features: Uses only the General
Journal
Basic Features: Standard Chart of Accounts
Basic Features: Responsibility Accounting
RESPONSIBILITY CENTER CODING
STRUCTURE - COA
11 304 01 06 01 755
Office
Supplies
Expense
Office of the
Asst. Comm.
National
Government Sector

Central Office

Commission on Audit

RA Books - General Fund

Basic Features: Automatic computation of inventory
cost using weighted (moving) average
method
Basic Features: Information on re-order level and
number of days to consume
inventory
Basic Features: Property, Plant and Equipment
Monitoring

Maintenance Expenses

• Amount
• Accumulated Amount
Basic Features: Automatic Computation of
depreciation using Straight –
Line Method
 Basic Features:
Subsidiary Ledger SUBSIDIARY LEDGER ACCOUNT
Maintenance
SUBSIDIARY LEDGER

GENERAL LEDGER Province of Bulacan

ACCOUNT GL Account Title :

Name of Creditor:
Performance/Bidders/Bail Bonds Payable
EFG Merchandising
GL Account Code :
SL Code:
427

Contact Person: Jo Castro Position: Store Manager Telephone No.: 927-33-46

150 ABC Bldg., EDSA , Q.C.

Amount
GENERAL LEDGER Date Particulars Ref.
Debit Credit Balance
Province of Bulacan
2003

Jan. 31 Bidder's bond for the purchase of office supplies

Account Title: Performance/Bidders/Bail Bonds Payable Account Code: 427
with estimated cost of P160,000 RCD No. 2003-01-001 7,500 7,500

June 30 Refund of bidders' bond RCI No. 2003-06-025 7,500 -

Amount
Date Particulars Ref.
Debit Credit Balance

2003
Jan. 31 Receipt of Bidders Bond CRJ 7,500 7,500
Feb. 28 Receipt of Performance Bond CRJ 100,000 107,500
June 30 Refund of Bidders Bond CkDJ 7,500 100,000

SUBSIDIARY LEDGER
Agency

GL Account Title : Performance/Bidders/Bail Bonds Payable GL Account Code : 427

Name of Creditor: E.C. Cruz Construction SL Code:
Contact Person: Alex M. Lopez Position: Manager Telephone No.: 931-2991
AO 5-14-02
RDC Bldg. Sta. Cruz, Manila
Amount
Date Particulars Ref.
Debit Credit Balance

2003

Feb. 28 Bond for the construction of slaughter house

with total contract price of P1 million RCD No. 2003-01-002 100,000 100,000
 Basic Features: Project Accounting
MONITORING OF EXPENSES INCURRED IN THE CONSTRUCTION OF GOVERNMENT
PROPERTIES

Direct
Materials

Direct
Labor

Overhead

Consultancy
Basic Features: Public Infrastructure /
Reforestation Projects Monitoring
Online Query Feature (with option to print):

 Journal Entry Voucher

 Expense per Responsibility Center
 Income per Responsibility Center
 Summary of Income
 Summary of Expense
 Repair History of PPE
 Stocks Available
Online Query Feature (with option to print):

 Stocks Due for Reorder / Reorder Point

 Schedule / Aging of Receivable Accounts
 Schedule / Aging of Payable Accounts
 Inventory Schedule
 Property, Plant and Equipment Schedule
 Schedule of Account Balances
 Recorded Supporting Documents
Online Query Feature (with option to print):
Schedule / Aging of Receivable Accounts
Online Query Feature (with option to print):

Schedule / Aging of Payable Accounts

 Financial Statements Generated

 Statement of Income and Expenses (Condensed and

Detailed)
 Balance Sheet (Condensed and Detailed)
 Statement of Cash Flows
 Statement of Government Equity
 Consolidated Statement of Income and Expenses
(Condensed and Detailed)
 Consolidated Balance Sheet (Condensed and Detailed)
Financial Statements Generated
Consolidated Balance Sheet - Condensed
Financial Statements Generated
Consolidated Statement of Income and Expenses -
Detailed
 Financial Reports Generated

 Trial Balance (Unadjusted, Pre-Closing and Post-Closing)

 Consolidated Trial Balance (Merged and Unmerged)
 General Journal
 General Ledger
 Subsidiary Ledger
 Supplies Ledger Card
 Property, Plant and Equipment Ledger Card
 Construction in Progress Ledger Card
Financial Report Generated
General Journal
Financial Report Generated
General Ledger
e-NGAS Conceptual Framework

e-NGAS

Accounting
System

JEV
Preparation

JEV Review
And Approval

Query

Report
Generation
 Journal Entry Voucher (JEV) Preparation

Reference
Receives
Document valid
document
Selects type of
Source transaction and
Document fund

e-NGAS Selects template /

database accounting entries

Validates / Saves
JEV

JEV

Edit particulars of
the template and
Generates JEV enters reference
document #
Home
 Journal Entry Voucher (JEV) Review and Approval

Reference
Document

Retrieves JEV REVIEW Selects type of

Source AND APPROVAL INBOX transaction /
fund
Document

e-NGAS Validates / Reviews

database JEV
Approves / Posts
JEV to GL and SL
YES

Approved
JEV

NO Valid JEV ?
Generates approved Edits / Saves JEV
JEV

Home
 Query

Opens Menu for Query

Identifies item in
Schedule of the Query list
Receivable
Accounts
Stocks
Availability e-NGAS
Schedule of
Payable database
Accounts
Due for
Reorder
Repair
Selects Query criteria
History of
Journal PPE
Summary Entry
of Voucher Income per
Expense Responsibi-
Expense lity Center
per
Summar Responsibi-
y of lity Center
Income Report of
Income
Recorded Views / Prints
Supporting result of Query
Documents
Home
 Report Generation

e-NGAS
database

Opens Menu Selects report to

for reports be generated

Financial Reports Journal / Ledger

General Views / Prints

Balance Journal Reports
Sheet

General
Statement
Ledger
of Cash
Trial Flows
Subsidiary
Balance Property, Ledger
Statement Plant and
of Equipment
Statement Government Ledger Card Supplies
of Income Equity Ledger Card
and
Expense Construct-
ion-in
Progress
Ledger Card
 Rollout Status
NGAs
1 – 3 months completed

 Bureau of the Treasury

 Department of Budget and Management
 Energy Regulatory Commission
 Philippine Carabao Center – 2 months
 Housing & Urban Devt and Coordinating Council
 PCASTRD – DOST
 Philippine Air Force
 Presidential Management Staff
 Environmental Management Bureau
 National Water Resources Board
 Rollout Status
NGAs
4 – 6 months completed

 Central Luzon State University

 Department of Agrarian Reform
 Department of Health
 Department of Public Works and Highways
 Department of Trade and Industry
 Philippine Veterans Affairs Office
 Metropolitan Manila Development Authority
Telecommunications Office
 Rollout Status
NGAs
7 – 12 months completed

 Civil Service Commission

 Department of Social Welfare and Development
 Office of the President
 Department of Education
 Rollout Status
NGAs
Ongoing Implementation

 Board of Investments
 Bureau of fisheries and Aquatic Resources
 Bureau of Internal Revenue
 Department of Environment and Natural Resources
 Department of Finance
 Department of National Defense
 Department of Science and Technology
 Pasig River Rehabilitation Commission
 Professional Regulation Commission
 Technical Education and Skills Development Authority
 Council for the Welfare of Children
 Rollout Status
LGUs
 Benguet Province – 3 ½ months
 Guiguinto, Bulacan – 3 months
 Marikina City*
 Muntinlupa City*
 Quezon City*
 Victorias City*
 Cauayan City*
 Davao City*
 Bakun, Benguet*
 Itogon, Benguet*
GOCCs
 Manila International Airport Authority*

Legend:
* -- On-going implementation
 Rollout Strategies
 Provide COA rollout teams to assist agencies
 Empower the agencies by allowing them (NGAs Central
Offices) to roll out in their regional offices and attached
agencies
 Mobilize COA Regional Offices and Auditors to support the
nationwide roll out
 Provide eNGAS trainers for agencies
 Provide individual consultants to agencies on an on call basis
 Collaborate with umbrella organizations of government agencies
• League of Local Government Executives
• Phil. Association of State Universities and Colleges
• Professional Organizations – GACPA, PAGBA, AGAP, etc.
• Phil. League of Budget Officers
 Cooperative grouping of LGUs
 Lessons Learned from the Rollout
Success Factors
 Readiness of agency in terms of Hardware / Software etc.
 Determination of management and users to finish the
rollout in time
 Politics within the agency is crucial
 Rapport with agency ICT group is important
 Systematic response mechanism to user problems and
issues
 Strategies should be devised from time to time to cover
more rollout sites
 Opportunity for COA personnel to work as teams
 Next Steps
Agency - Level Integrated Financial
Management Information System (IFMIS)
Related Operating Systems or ROS is a collection of web-
enabled application software designed to support a full
Financial Management Information System. It consists of
four modules:

Cash Receipt Operations

Cash Disbursements Operations

Non-Cash Operations

Payroll and Personnel Information System

 Next Steps
Agency – Level IFMIS
Description:
 consists of modules which can be implemented
independently
 capable of establishing linkages between modules.
 covers form preparation, transaction processing,
and generation of queries and required reports
 modules can be linked to e-NGAS and the Budget
System
 automated access of transaction details for the
preparation of Journal Entry Vouchers and
Obligation Slips
 capable of changing configuration to adapt to
NGAs, LGUs, and GOCCs needs
 Next Steps
Agency - Level IFMIS
Objectives:
 support government-wide and agency policy decisions
 collect accurate, timely, complete, reliable, consistent
information
 eliminate unnecessary duplication of transaction entry
 standardize data classification for recording transactions
 implement common processes for similar transactions
 provide adequate management reporting
 apply internal controls over data entry, transaction
processing, and reporting
 provide complete audit trail to facilitate audits
 Next Steps
Features: Agency - Level IFMIS

 User-friendly interface
 Simplified entry of transactions and activities
 Ability to export transaction data directly to specified
data format
 Ability to capture manually prepared transactions.
 Some forms (i.e. Disbursement Voucher, Liquidation
Report) can be prepared and sent by concerned
employees through the web.
 Queries and Reports can be viewed (with option to print)
through the World Wide Web (www).
 Records are protected from unauthorized access through
appropriate administrative, physical, and technical
safeguards.
 Next Steps
Agency - Level IFMIS
Reporting Features:

 Up-to-date generation of government standard required

reports necessary for management and auditing purposes.

 Use of a Reporting Module that allows customization of ad-

hoc reports including headers and footers, column and row
totals, page breaks, font styles, sizes and colors.

 Performs currency conversion.

 Some reports can be viewed in graphical formats.

 Runtime, dates, terminal source, and user name are

included in all reports.
 Next Steps
Agency - Level IFMIS
Benefits of Web-based IFMIS
 establishes its presence

 heightens public interest

 makes government financial information available

online

 answers frequently asked questions

 makes changing information available quickly

 allows feedback from users

 Next Steps
Agency - Level IFMIS
Conceptual Framework
RELATED OPERATING SYSTEMS
Related Operating Systems

Provides transaction
details for JEV Preparation <<system>>
Cashiering Office e-NGAS

<<system>> <<system>>
Cash Cash
Accounting Office Disbursements
Receipts
Provides data for
other systems <<system>>
Budget System
Enters Transaction
Details

Answers Queries and

Generates Reports
<<system>> <<system>>
Non-Cash Payroll
Property Management
Office <<system>>
Other Systems of
the Agency

Other Agency Users

<<system>>
Personnel Information
Agency Users Non-Agency Users
 Next Steps
Inter - agency IFMIS
Integrated IFMIS linking the following agencies
 Department of Budget and Management (DBM)
- eBudget
 Department of Finance (DOF)
 Bureau of the Treasury (Btr)
 Commission on Audit (COA) / Accounting Office

 Bangko Sentral ng Pilipinas (BSP)

 Other related agencies
 Harmonization Project
Next Steps
eAudit
 Audit Software to match eNGAS installed
in agencies
 Standardize audit working papers

 Risk – Based Financial Audit Manual

 Use of existing Audit Softwares – TEAMate,

Idea, Paradox
What Users / People say about eNGAS
Video Clip