1.

  Explain the objectives of government accounting.

To provide quantitative information primarily financial in nature about the
operations of the government, both national and local, to be used by the administration
in making decisions for a more effective and efficient public service.
Objectives

 To provide quantitative information concerning past operations and present

conditions.
 To provide a basis for guidance for future operations.
 To provide for control of the account of public entities and officers in the receipt,
disposition and utilization funds and properties, and
 To report on the financial position and the result of the operations of the
government agencies for the information of all persons concerned

2.Get to know the offices charged with accounting responsibilities and their
functions.
Accounting responsibility for all government funds and property is entrusted,
immediately and primarily, to the head of the government agency or office. It is the duty
of the head of the agency to take reasonable steps to minimize, if not to avoid the risk of
losses, defalcations and other types of irregularities in the utilization of all government
resources (to safeguard the resources of the government under his custody) and
periodic reporting to concern authorities. His responsibility, however, is supervised by
higher authorities and government bodies.
The officer in possession or custody of government funds or property by reason of his
duties are accountable for the safekeeping thereof. As such, he shall be properly
bonded.
The Head of the agency is made immediately and primarily responsible for all
government funds and property pertaining to his agency. Secondary responsibility is
made to rest on the persons entrusted with the actual possession or custody of the
funds or property. They are the accountable officers and are immediately responsible to
the agency head.
The imposition of primary responsibility on the agency head for government funds and
property is in keeping with the concept of fiscal responsibility which now lodge with
agency head.
The head of the agency shall exercise the diligence of a good father or a family in
supervising accountable officers to prevent the incurrence of loss of government funds
and property, otherwise, he shall be jointly and solidarily liable with the person primarily
accountable thereof.
Although supervisory work of government accounting is vested upon to the Commission
on Audit, accounting responsibilities in the government, by virtue of the provision of the
Constitution of the Philippines, laws, Presidential Decrees and other issuances, are
shared primarily by the Commission on Audit(COA), Department of Budget and
Management, (DBM), Department of Finance (Bureau of Treasury) and government
agencies.
The Commission on Audit serves as the external auditor of the government agencies.
It is a constitutional office and its mandates are provided in Section 2, Art. IX-D of the
1987 Constitution of the Philippines. The COA examine, audit and settle all accounts
pertaining to revenues or receipts and expenditures or uses of government funds and
property, keeps the general accounts of the national government , prescribes the
standard chart of accounts, promulgates accounting rules and regulations and exercise
technical supervision over the accounting functions of each agency. The office is
mandated by the Constitution to submit to the President and the legislative body within
the time frame fixed by law, an annual audit report of the government, its subdivision,
agencies and instrumentalities including government owned or controlled corporations
and recommend measures necessary to improve efficiency and effectiveness. The DBM
is responsible for the design, preparation, and approval of the accounting systems of
government agencies, determines the accounting and other item of information needed
to monitor budget performance and assess effectiveness of the agency operation. It
prescribes the forms, schedules of submission and other component of reporting
system needed to accomplish and submit the required information. It acts on agencies’
recommendations for the modification or changes to prescribed systems for procedures
to effect simplicity and/or meet the requirements of the peculiarities of the agencies
concerned. It approves the Agency Budget Matrix and issues the allotments to agencies
in accordance with the approved budget and issues Notice of Cash Allocation.
The Bureau of Treasury (BTr) performs banking function for the national government.
It receives and keeps government funds, controls the disbursements thereof and
maintain accounts of the financial transactions of national government agencies. It is
required to prepare and submit to the COA and other fiscal activities, a daily statements
of cash receipts, disbursements and fund balances in the National Treasury.
The National Government Agencies (NGAs) consist of various organizational units
such as departments, bureaus, commissions, boards, offices, tribunals, councils,
institutions, state colleges or universities and establishments. These agencies are
required to establish and maintain a system of accounting for their financial resources
and operation in accordance with pertinent rules and regulations. Accounts should be
kept in such details as is necessary to meet the need of agency management and
furnish information to fiscal and control agencies such as COA, DBM and BTr.
3.Identify and explain the basic accounting and budgeting principles.
 Budget activities are governed by legal provisions/fundamental principles relating
to the financial transactions and operations of the government. The principles, as
provided for by law are:
1. No money shall be paid out of any 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
of 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 and 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 transactions 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 Budgets

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 purports to supplement or adjust a previous budget

which is deemed inadequate for the purpose for which it is intended. This is the basis for a supplemental
appropriation.

c. Special budget – a budget of special nature and generally submitted in special forms on
account of the fact that itemizations are not adequately provided in the Appropriation Act or that
amounts are not at all included in the Appropriations Act.

2. As to Basis

a. Performance Budget – a budget emphasizing the programs or services conducted and based
on functions, activities and projects which focus attention upon the general character and nature of the
work to be done, or upon the services to be rendered, rather than the things to be acquired, such as
personal services, supplies and equipment. It is management-oriented measures actual or estimated
results in the basis, terms of benefits accruing to the public and their costs.

b. Line-Item Budget – a budget the basis of which are the objects of expenditures such as
salaries and wages, travelling expenses, freight, supplies, materials and equipments, tec.

3. As to Approach and Technique

a. Zero-Based Budgeting – a process which requires systematic consideration of all programs,

projects and activities with the use of the defined ranking procedures. In ZBB, activities are analyzed and
presented in “decision packages” or key budgetary inclusions. The term “zero-base” refers to the yearly
analysis, evaluation and justification of each activity, project or program, starting from a “zero”
performance and budgeting level. ZBB does not accept the prior year’s budget as a starting point for
analysis. The analysis of the levels of funding and performance as well as the expected impact of the
objectives at each level will give enough leeway for management to decide whether to eliminate entirely
a low priority to make way for a new one or to cut back the performance and funding level of the
program to permit another to expand.

b. Incremental Approach – a budget where only additional requirements need justification. It

focuses on analysis of incremental changes in the budget and may be done within the context of
performance and program budgeting.

c. Capital Budgeting Approach - a budgeting technique which consists of a two-tiered strategy,

as follows:

c.1 Setting a baseline budget that will correspond to the minimum level of operating
requirements at which each agency of the national government will be able to perform its basic
functions; and

c.2 Prioritization of the allocable balance (i.e. what is left of the budget ceiling after deducting
the baseline budget) among the proposed projects and programs of agencies.