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. ​Government Budget ​refers to the income, expenditures and sources of borrowings of the National

Government.

D. ​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

E. ​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

F. ​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.

G. ​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.

H. 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).

I. Each entity of the National Government (NG) maintains a complete set of accounting books by ​fund 
cluster ​which is reconciled with the records of cash transactions maintained by the BTr.

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

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

M. 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

N. Registries are used for ​monitoring ​purposes

O. ​Registries of Revenue and Other Receipts (RROR) ​refers to the registry maintained by the NGA unit

to monitor the revenue and other receipts estimated/budgeted, collected and remitted/deposited.

expect – collect – remit  

P. ​Registries of Appropriations and Allotments (RAPAL) ​refers to a 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  

Q. ​Registries of Allotments, Obligations and Disbursements(RAOD) ​refers to a 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 

 
R. ​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  

S. 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)

T. 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
RG/TL 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.
 GOVERNMENT ACCOUNTING MANUAL (GAM)

1. What is the title of the revised government accounting system for national government
agencies effective January 1, 2016?

a. Government Accounting Manual (GAM)

b. New Government Accounting System (NGAS)
c. Philippine Government Accounting System (PGAS)
d. National Government Accounting Manual (NGAM)

2. Under Article IX-D Section 2 of the 1987 Constitution of the Republic of the Philippines, it
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.

a. Commission on Audit
b. Civil Service Commission
c. Commission on Election
d. Commission on Human Rights

3. The Government Accounting Manual aims to update the following, except

a. standards, policies, guidelines and procedures in accounting for government funds and
property
b. coding structure and accounts
c. accounting books, registries, records, forms, reports and financial statements.
d. scope and objectives of audit.

4. It 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.

a. Government auditing
b. Government reporting
c. Government accounting
d. Government analyzing
5. It refers to the financial plan of a government for a given period, usually for a fiscal year,
which shows what its resources are, and how they will be generated and used over the fiscal
period.

a. Government budget
b. Government financial position
c. Government financial statements
d. Government financial performance

6. It 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.

a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

7. It 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.

a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

8. It refers to the step in the government budgetary process which involves the implementation
of the general appropriation act which includes the release of revenue allotment under the
supervision of Department of Budget and Management.

a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

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

a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

10.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). Which of the following is incorrect under the Government
Accounting Manual?

a. 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.
b. The BTr accounts for the cash, public debt and related transactions of the NG.
c. Each entity maintains budget registries which are reconciled with the budget records
maintained by the DBM and the Government Accountancy Sector (GAS), COA.
d. Each entity shall maintain Regular Agency (RA) Books and National Government (NG)
Books for the recording of its transactions.

11. The General Accounting Manual enumerates the following components of the General
Purpose Financial Statements of National Government Agencies, except

a. Statement of Financial Position

b. Statement of Financial Performance
c. Statement of Retained Earnings
d. Statement of Cash Flows
e. Statement of Changes in Net Assets/Equity
f. Statement of Comparison of Budget and Actual Amounts
g. Notes to the Financial Statements, comprising a summary of significant accounting policies
and other explanatory notes.

12. The books of accounts of National Government Agencies under the GAM shall consist of
the following, except

a. General Journal
b. Cash Receipts Journal
c. Cash Disbursement Journal
d. Regular Agency and National Government Books
e. Check Disbursements Journal
f. General Ledgers
g. Subsidiary Ledgers

13. The registries of National Government Agencies under the GAM shall consist of the
following, except
a. Registries of Revenue and Other Receipts. (RROR)
b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)
e. Registries of Priority Development Assistant Program (RPDA)

14. It refers to the registry maintained by NGA unit to monitor the revenue and other receipts
estimated/budgeted, collected and remitted/deposited.

a. Registries of Revenue and Other Receipts. (RROR)

b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

15. It 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.

a. Registries of Revenue and Other Receipts. (RROR)

b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

16. It 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.

a. Registries of Revenue and Other Receipts. (RROR)

b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

17. It 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.
a. Registries of Revenue and Other Receipts. (RROR)
b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

18. The following are the classifications of different RAPAL, RAOD and RBUD, except
a. RAPAL/RAOD/RBUD – Personal Services
b. RAPAL/RAOD/RBUD – Maintenance and Other Operating Expenses c. RAPAL/RAOD/RBUD
– Financial Expenses
d. RAPAL/RAOD/RBUD – Capital Outlays
e. RAPAL/RAOD/RBUD – Noncash Expense​s