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    Government Accounting Manual (Gam) Pointers

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    Will Emmanuel A Pinoy
    The document provides an overview of key concepts related to government and not-for-profit accounting in the Philippines. It discusses the Commission on Audit's authority over accounting and auditing rules for the government. It also outlines the budget process, financial reporting system, and accounting records for national government agencies. Finally, it covers types of funds, donations, financial statements, and revenues for not-for-profit organizations.

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    © All Rights Reserved
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    Government Accounting Manual (Gam) Pointers

    Uploaded by

    Will Emmanuel A Pinoy
    39 views4 pages
    The document provides an overview of key concepts related to government and not-for-profit accounting in the Philippines. It discusses the Commission on Audit's authority over accounting and auditing rules for the government. It also outlines the budget process, financial reporting system, and accounting records for national government agencies. Finally, it covers types of funds, donations, financial statements, and revenues for not-for-profit organizations.

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    The document provides an overview of key concepts related to government and not-for-profit accounting in the Philippines. It discusses the Commission on Audit's authority over accounting and auditing rules for the government. It also outlines the budget process, financial reporting system, and accounting records for national government agencies. Finally, it covers types of funds, donations, financial statements, and revenues for not-for-profit organizations.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    39 views4 pages

    Government Accounting Manual (Gam) Pointers

    Uploaded by

    Will Emmanuel A Pinoy
    The document provides an overview of key concepts related to government and not-for-profit accounting in the Philippines. It discusses the Commission on Audit's authority over accounting and auditing rules for the government. It also outlines the budget process, financial reporting system, and accounting records for national government agencies. Finally, it covers types of funds, donations, financial statements, and revenues for not-for-profit organizations.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    GOVERNMENT ACCOUNTING MANUAL (GAM) Pointers

    A. Under Article IX-D Section 2 of the 1987 Constitution of the Republic of the Philippines, Commission on Audit:

     shall have the exclusive authority, subject to the limitations in this Article, to define the scope of its audit and
    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.
     It shall also be responsible to keep the general accounts of the Government and, for such period as may be
    provided by law, preserve the vouchers and other supporting papers pertaining thereto.

    B. The Government Accounting Manual (prescribed by COA based on Philippine Public Sector Accounting
    Standards/PPSAS) aims to update the following:
     (Volume 1) standards, policies, guidelines and procedures in accounting for government funds and property
     (Volume 2) accounting books, registries, records, forms, reports and financial statements.
     (Volume 3) coding structure and accounts

    C. Budget Preparation refers to the step in the government budgetary process wherein the President, through the
    assistance of the Department of Budget and Management, shall prepare and submit to the Congress a budget of
    expenditures and sources of financing, including receipts from existing and proposed revenue measures.
    -Budget Call
    - Proposed Projects, Program and Activities

    D. Budget Authorization refers to the step in the government budgetary process which involves the enactment by the
    Congress of the General Appropriation Act (GAA) based on the budget submitted by the President which cannot be
    increased by the Congress. The initiative for the enactment of the appropriation law shall come from the House of
    Representatives.
    -Budget Hearing in Congress
    -Appropriation is the authorization to use the national fund based on approved budget

    E. Budget Execution refers to the step in the government budgetary process which involves that implementation of the
    general appropriation act which includes the release of revenue allotment under the supervision of Department of
    Budget and Management.
    -Allotment is the authorization to enter into contracts and incur a liability. Allotment must not exceed what was
    appropriated.
    -Notice of Cash Allocation is a document issued by DBM regarding the authority to withdraw funds deposited by
    the Bureau of Treasury within specified period.

    F. Budget Accountability refers to the step in the government budgetary process which involves the submission of
    proper documentary reports by responsible officer, liquidation of expenditures and audit conducted by Commission
    on Audit to ensure the public funds are spent in accordance with the appropriation act.

    G. Under the Government Accounting Manual (GAM), the financial reporting system of the Philippine government
    consists of accounting system on accrual basis and budget reporting system on budget basis under the statutory
    responsibility of the National Government Agencies (NGAs), Bureau of the Treasury (BTr), Department of Budget
    and Management (DBM), and the Commission on Audit (COA).

    1|Page
    H. Each entity of the National Government (NG) maintains complete set of accounting books by fund cluster which is
    reconciled with the records of cash transactions maintained by the BTr.

    I. The BTr accounts for the cash, public debt and related transactions of the NG.

    J. Each entity maintains budget registries which are reconciled with the budget records maintained by the DBM and
    the Government Accountancy Sector (GAS), COA.

    K. The Government Accounting Manual enumerates the components of the General Purpose Financial Statements of
    National Government Agencies:
     Statement of Financial Position
     Statement of Cash Flows
     Statement of Financial Performance
     Statement of Changes in Net Assets/Equity
     Notes to Financial Statements
     Statement of Comparison of Budget and Actual Amounts

    L. The books of accounts of National Government Agencies under the GAM shall consist of the following:
     General Journal
     Cash Receipts/Disbursement Journal
     Check Disbursements Journal
     General Ledgers
     Subsidiary Ledgers

    M. Registries of Revenue and Other Receipts (RROR) refers to the registry maintained by NGA unit to monitor the
    revenue and other receipts estimated/budgeted, collected and remitted/deposited.

    expect – collect – remit

    N. Registries of Appropriations and Allotments (RAPAL) refers to registry maintained by NGA unit to show the original,
    supplemental and final budget for the year and all allotments received charged against the corresponding
    appropriation.

    Approved budget – authorization to use – authorization to incur

    O. Registries of Allotments, Obligations and Disbursements(RAOD) refers to registry maintained by NGA unit to show
    the allotments received for the year, obligations incurred against the corresponding allotment and the actual
    disbursements made.

    Authorization to incur – commitment/signing of contract - payment

    P. Registries of Budget, Utilization and Disbursements (RBUD) refers to registry maintained by NGA unit to record the
    approved special budget and the corresponding utilizations and disbursements charged to retained income
    authorized under the law and other retained income collection of a national government agency with similar
    authority.

    Approved special budget – related use - payment

    Q. The following are the classifications of different object of expenditures:


     RAPAL/RAOD/RBUD – Personnel Services (salary, benefits, wages of government employees)
     RAPAL/RAOD/RBUD – Maintenance and Other Operating Expenses (supplies, utilities, rent, repairs)
     RAPAL/RAOD/RBUD – Financial Expenses (bank charges, interest expense, commission)
     RAPAL/RAOD/RBUD – Capital Outlays (land, building, furnitures, equipment)

    2|Page
    R. The period of validity of Notice of Cash Allocations (NCAs):

     NCA issued and credited to the Regular MDS Sub-Accounts of agencies/OUs for their regular operations, shall
    be valid until the last working day of the 3rd month of that quarter pursuant to DBM Circular Letter (CL) No.
    2013-12.
     NCA issued and credited to the Special MDS Accounts of agencies specifically for payment of RGITL benefits
    shall be valid until the last working day of the following month when the NCA was issued, except when issued in
    December, pursuant to DBM Budget Circular No. 2013-1
     NCA issued to the BTr for working funds of agencies shall be valid until the last working day of the year.

    ACCOUNTING NOT-FOR-PROFIT ORGANIZATION POINTERS

    A. Types of Funds:

     Unrestricted – board designated ; purpose from within the organization


     Restricted – donor imposed ; external
    Temporarily restricted – resticted as to purpose/time
    Permanently restricted – held indefinitely or in perpetuity

    B. Types of Donations/Contributions: (Contributions Revenue)

     Cash - presented in Statement of Financial Position/Statement of Activities/Cash Flows Statement


     Non-cash (at fair value) – presented in Statement of Financial Position and Statement of Activities
     Services (specialized skills/enhancing an asset ; quantifiable) – presented in Statement of Activities
     Usage (for rent ; rental fee) – presented in Statement of Activities
     Pledge (unconditional promise) – presented in Statement of Financial Position and Statement of activities

    C. Endowment Fund:

     Regular or Pure (Permanently restricted) – Principal is non-expendable ; interest/dividends is expendable


     Term (Temporarily restricted) – Principal is non-expendable but may become expendable either through
    expiration of time or use according to purpose ; interest/dividends is expendable.

    D. Basic Financial Statements

     Statement of Financial Position


     Statement of Activities
    -release of temporarily restricted to unrestricted classification
    -expenses are to be deducted only from unrestricted revenue/net assets

     Notes to Financial Statements


     Statement of Cash Flows
    - Unrestricted cash classified as operating inflow upon receipt
    - Restricted cash classified as financing inflow upon receipt
    - Investing activity only in classifying a subsequent transaction (proceeds from sale)

    E. Voluntary Health and Welfare Organization

     Depends solely or primarily on donations and contributions


     Required to present an additional F/S – Statement of Functional Expenses
    - Program Expenses – tree planting, feeding program, medical mission
    - Supporting Expenses – fund raising, administrative, recruitment, financing

    3|Page
    F. Not-for-profit private hospital patient revenue

    Gross Patient Service Rendered less Charity Care = Gross Patient Service Revenue
    Gross Patient Service Revenue less Contractual Adjustments/Philhealth less Courtesy Allowance/Staff
    discounts = Net Patient Service Revenue

    G. Not-for-profit private university revenue

    Gross Tuition Revenue less Expenditure Student Aid = Net Tution Revenue

    -end of reminders-

    4|Page

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