Government Accounting Written Report
Government Accounting Written Report
Government Accounting Written Report
out of the Treasury except in pursuance of an appropriation by law." ACCOUNTING SYSTEMS General Accounting Plan(GAP) shows the overall accounting system of a government agency/unit. It includes the source documents, the flow of transactions and its accumulation in the books of accounts and finally their conversion into financial information/data presented in the financial reports. The following accounting systems are: Budgetary Accounts System; Receipts/Income and Deposit System; Disbursement System; and Financial Reporting System. THE NATIONAL BUDGET Budgeting is basically planning and controlling. It is an estimate of the proposed expenditures for specified purposes and periods. Government Budget is a plan for finncing the government activities for a fiscal year. It is a detailed demonstration of the revenues and expenditures of the government.
Form and Contents of the National Budget Section 22, Article VII of Constitution of the Philippines provides that The
President of the Philippines shall submit to Congress within 30 days from the opening of every regular session, as the basis of the general appropriation bill, a budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures.
The budget shall be presented to Congress in such form and content as may be approved by the President and may include the following: 1. A budget message setting forth in brief the governments budgetary thrust for the budget year, including their impact on development goals, monetary and fiscal objectives, and generally on the implications of the revenue, expenditure and debt proposals; and 2. Summary financial statements setting forth: a. Estimated expenditures and proposed appropriations necessary for the support of the government for the ensuing fiscal year, including those financed from operating revenues and from domestic and foreign borrowings; b. Estimated receipts during the ensuing fiscal year under the laws existing at the time the budget is transmitted and under the revenue proposals, if any, forming part of the years financing program; c. Actual appropriations, expenditures and receipts during the last completed fiscal year;
d. Estimated expenditures and receipts and actual or proposed appropriations during the fiscal year in progress; and e. Statements of the condition of the National Treasury at the end of the last completed fiscal year, the estimated condition of the Treasury at the end of the fiscal year in progress and the estimated condition of the Treasury at the end of ensuing fiscal year. Fundamental Principles of Fiscal Operations 1. No money shall be paid out of the public treasury or 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; 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 transaction shall be faithfully adhered to;and
8. Generally accepted principles and practices of accounting, as well as, of sound management and fiscal administration shall be observed, provided they do not contravene existing laws and regulations. KINDS OF BUDGET 1. As to Nature a. Annual Budget A budget which covers a period of one year. It is the basis of an annual appropriation. b. Supplemental Budget A budget which supplement or adjust a previous budget which is deemed inadequate for the purpose it is intended. It is the basis for a supplemental appropriation. c. Special Budget A budget of special nature and generally submitted in special forms on account that itemizations are not adequately provided in the Appropriation Act or that the amount are not all included in the Appropriation Act. 2. As to Basis a. Performance Budget A budget emphasizing the program or services conducted and based on functions, activities and projects, which focus attention upon the general character and nature of work to be done, or upon the services to be rendered.
b. Line-Item Budget A budget the basis of which are the objects of expenditures such as: salaries and wages, traveling expenses, freight, supplies and materials, equipment, etc. 3. As to Approach and Technique a. Zero-Based Budgeting A process which requries systematic consideration of all programs, projects and activities with the use of define ranking procedures. b. Incremental Approach A budget where only additional requirements need justifications.
BALANCE BUDGET It is a budget where the proposed expidentures are equal to or less than the estimated revenue. THE BUDGET PROCESS 1. Budget Preparation This covers estimation of government revenues, the determination of budgetary priorities and acitivites and the translation of approved priorities and activities into expenditure level. The Budget Preparation begins with the issuance of a Budget Call by the Department of Budget and Management. The Budget Call outlines the priority areas of government activity applicable to the budget year.
The budget proposals shall be reviewed on the basis of their own merits and not on the basis of: 1. A given percentage or peso increase or decrease from a prior year's budhet level; 2. 3. A given percentage of the aggregate budget level; or A similar rule of thumb that is not based on specific justification.
The DBM summarizes the proposals and submits an analysis and recommendation to the President of the Philippines before finalization and submission to Congress. 2. Legislative Authorization It is the second phase of the budget process relative to the enactment of the General Appropriation Bills based on the budget of receipts and expenditures submitted by the President within 30 days from the opening of its regular session. The General Appropriation Bill presents the proposals of the President for new general appropriations in the coming year. The proposals are listed by agencies or lump sum fund and are detailed by budgetary function activities or projects. Each function is briefly described in "appropriation language".
Any conditions governing agency expenditures are presented as Special Provisions applicable to the agency. Whih also identify the amount intended for the most significant activities of the agency. General Provisions are also provided in the Bill, representing the expenditures rules and conditions applicable to all agencies or group of agencies. Budget Briefing is conducted whereby the heads of agencies would explain to the Congress the details of their respective budgets. Appropriations are approved by the legislative body in the form of of: 1. A General Appropriations Law which covers most of the expenditures of government; 2. Supplemental Appropriations laws that are passed from time to time, augment or correct an already existing appropriation; and 3. Certain automatic appropriations intended for fixed and specific purposes. 3. Budget Execution & Operation covers the various operational aspects of budgeting, thus making budgeting as one o the principal tools of management to control to ensure that public funds are spent only for the specific purposes for which they are intended. includes the development of the operating budget, which indicates the program of work to be done or undertaken, the time within which it
should be done, the manpower amd other resources needed to carry out the work and the peso amounts 4. Budget Accountability The last phase of budgeting process consists of the following: periodic reporting by the government agencies of performances under their approved budget. top management review of government activities and the fiscal policy implementations thereof; and the actions of Commission on Audit in assuring the fidelity of officials and employees by carrying out the intent of the legislative regarding the handling of receipts and expenditures. BUDGETARY ACCOUNTS 1. Appropriation an authorization made by law or other legislative enactment, directing payment of goods and services out of government fund under specific condition or for special purpose. 2. Allotment an authorization issued by the Department of Budgetary and Management to government agency, which allows it to incur obligation for specified amounts, within the legislative appropriation. 3. Obligation a commitment by a government agency arising from an act of duly authorized official which binds the government to the immediate or eventual payment of a sum of money.
BUDGETARY ACCOUNTS SYSTEM Encompasses: process of preparing Agency Budget Matrix monitoring and recording allotments received by the agency from DBM. Releasing of Sub-Allotment Advices (SAAs) to Regional Offices by Central Office. Issuance of SAAs to Operating Unit to Regional Offices Recording and monitoring obligations
Allotment Release Order (ARO) issued by DBM contains authorization, condition, amount of an agency allocation.
decentralized REPORTING REQUIREMENTS Budget Execution Documents Government Agencies shall submit their plans, programs and targets for the year to Department of Budget and Management on or before April 15 for the current year.
Budget Execution Documents Physical & Financing Plan (PFP) This document serves as overall plan of the National Government Agencies encompassing the Physical and Financial aspects Monthly Cash Program (MCP) Estimate of Monthly Income List of not yet due and demandable obligations
Budget Accountability Report Call Up Letters Procedures o First Call Up Letter o Second Call Up Letter o Third Call Up Letter o In case of non-compliance GENERAL GUIDELINES ON THE RELEASE OF FUNDS New General Appropriation Act (GAA); national goverment agencies are authorized to incur overdraft in allotment for obligations corresponding to the actual requirement of their regular operations chargeable against the GAA, as re-enacted
Needing Clearance Not Needing - This Release - For Later Release Clearance
Guidelines on the Release of Disbursement Authorities 1. Release of Notice of Cash Allocation (NCA) The amount for Personal Service should fully provide for all filled
positions inclusive of fixed expenditures; and must take into consideration the timing of the grant of year-end benefits and other similar items of expenditures, including pensions for uniformed personnel and veterans. For seasonal periods or peak and slack times in the provision of
Maintenance and Other Operating Expenses adjustments should always be taken into consideration. Capital Outlay must likewise be programmed in accordance with
scheduled targets. For Foreign Assisted Projects, the release of the peso counterpart
2. Release of Non-Cash Availment Authority (NCAA) Agencies availing of foreign loan proceeds through direct payment
chargeable against availment allotment, shall submit a request for the issuance of NCAA prior to submission of availment application to Foreign Lending Institutions. Request of NCAA shall be supported by the following: Photocopy of
application for withdrawal or equivalent document; Certified list of obligation allotments; and Details of Disbursements. 3. Release of Cash Disbursement Ceiling (CDC) CDC is an authority issued by DBM to Department of Foreign Affairs
(DFA) and Department of Labor and Employment (DOLE) to utilize their income collected and retained by their Foreign Service posts to cover its operating requirements but not to exceed the released allotment for the purpose. Release of CDC shall be supported by the following accountability
reports as consolidated by DFA and DOLE home office: Monthly Report of Income, Status of Working Fund, and Annual Report of Income CONDUCT OF THE AGENCY PERFORMANCE REVIEW Consistent with performance-based budgeting, a quarterly evaluation of the agency performance shall be conducted by comparing agency plans and targets per BEDs vis-a-vis actual accomplishment reflected in its BARs
COMMON FUND SYSTEM The common fund system policy (for use of personal services, maintenance and other operating expenses, capital outlays, and financial expenses without realignment) shall continue to be used.
ILLUSTRATIONS