Government Accounting: Objectives, Responsibilities, and Reporting, Lecture notes of Accounting

Download Government Accounting: Objectives, Responsibilities, and Reporting and more Lecture notes Accounting in PDF only on Docsity!

GOVERNMENT

ACCOUNTING

Government Accounting

The Process of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and disposition of government fund and property and interpreting the results thereof (Section 109 of PD 1445)

OBJECTIVES OF GOVERNMENT

ACCOUNTING

1. To produce information concerning past operations and present conditions
2. To provide a basis for guidance for future operations
3. To provide for control of the acts of public bodies and officers in the receipt, disposition and utilization of funds and property
4. To report on the financial position and the results of operations of government agencies for the information of all persons concerned

Emphasis on:

• (^) Sources and utilization of government funds sources – receipts from taxes and other fees - borrowings - grants utilization – expenditures on programs, projects - unanticipated losses from calamities etc
• (^) Responsibility, accountability and liability of entities entrusted with government funds and properties

Accountability over government

funds and property

• (^) Every accountable officer shall be properly bonded
• (^) Transfer of funds from one officer to another – upon authorization of COA
• (^) Transfer shall be properly documented in an invoice and receipt

Liability over government funds and

property

• (^) Unlawful use of government resources shall be the personal liability of the employee directly responsible
• (^) Every accountable officer shall be liable for all losses resulting in the unlawful use or negligence in safekeeping of said resources
• (^) No relief from liability for employee who has acted under the direction of a superior; superior officer is primarily liable while accountable officer who fails to serve notice is secondarily liable
• (^) Accountable officer shall immediately notify COA for any loss of govt funds/property from unforeseen events within 30 days.

COA

• (^) Has the exclusive authority to promulgate accounting and auditing rules and regulations
• (^) Keeps the general accounts of the govt, supporting vouchers and other docs
• (^) Submits financial reports to the President and Congress

DBM

• (^) Responsible for formulation and implementation of the national budget with the goal of attaining the nation’s socio-economic objectives

Government Agencies

• (^) Responsible in directly implementing the projects of, and performing the functions delegated by the govt
• (^) Each agency shall maintain acctg books and budget registries reconciled with cash records of BTr and budget records of COA and DBM
• (^) Govt agencies are required by law to have acctg units/divisions/depts. ( including barangays)

Government Accounting Manual for

National Government Agencies

(GAM for NGAs)

• (^) New Government Accounting system (NGAS) in 2002
• (^) Replaced by GAM in 2016
• (^) To harmonize govt acctg standards with International Public Sector Accounting Standards (IPSAS) which is based on the International Financial Reporting Standards (IFRS)
• (^) Phil adopted the IPSAS thru the Phil Public Sector Accounting Standards (PPSAS); provisions of PPSAS are incorporated in the GAM for NGAS

Objective of GAM – update the

1. Standards, policies, guidelines and procedures in accounting for govt funds and property
2. Coding structure and accounts
3. Acctg books, registries, records, forms, reports and FS

Basic Accounting and Budget

reporting Principles

1. PPSAS

2. Accrual basis of accounting
3. Budget basis
4. Revised Chart of Accounts prescribed by COA
5. Double entry bookkeeping
6. FS based on acctg and budgetary records
7. Fund cluster accounting

Characteristics of Financial

Reporting

8. Neutrality – free from bias
9. Prudence – exercise of caution when making estimates under conditions of uncertainty
10. Completeness- complete within bounds of materiality and cost
11. Comparability

Components of General Purpose FS

• (^) Statement of Financial Position
• (^) Statement of Financial Performance
• (^) Statement of Changes in Net Assets/Equity
• (^) Statement of Cash Flows
• (^) Statement of Comparison of Budget and Actual Amounts
• (^) Notes to the Financial Statements, comprising a summary of significant accounting policies and other explanatory notes