QUESTIONS:

1. DEFINE GOVERNMENT ACCOUNTING UNDER THE NEW GOVERNMENT

ACCOUNTING SYSTEM.
 Section 109 of PD 1445, as one which “encompasses the process of analyzing,
recording, classifying, summarizing, and communicating all transactions involving
the receipt and disposition of government fund and property and interpreting the
result thereof.
2. ENUMERATE THE OBJECTIVES OF THE NEW GOVERNMENT
ACCOUNTING SYSTEM.
 To produce information concerning past operations and present conditions
 To provide a basis for guidance for future operations
 To provide for control of the acts of public bodies and offices in the receipt,
disposition and utilization of funds and property
 To report on the financial position and the results of operations of government
agencies for the information and guidance of all persons concerned.
3. DISCUSS BRIEFLY THE ULTIMATE OBJECTIVE OF THE COMMISSION
ON AUDIT IN SHIFTING TO THE NEW GOVERNMENT ACCOUNTING
SYSTEM
 The primary objective is to adopt relevant international accounting standards. In
order to formulate and implement public sector accounting standards and establish
linkages with international bodies, professional organizations, and academe on
accounting related fields on financial management.
4. DISCUSS THE ACCOUNTING RESPONSIBILITY OF THE FOLLOWING:
 COMMISSION ON AUDIT – keeps the general accounts of the government,
promulgates accounting rules and regulations, and submits to the President and
Congress, within the time fixed by law, an annual report of the government, its
subdivisions, agencies, and instrumentalities, including government-owned or
controlled corporations. They shall have exclusive authority to define the scope of
its audit and examination, establish the techniques and methods required therefor,
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.
 DEPARTMENT OF BUDGET AND MANAGEMENT- shall be responsible
for the formulation and implementation of the National Budget with the goal of
attaining our national socio-economic plans and objectives. It shall also be
responsible for the efficient and sound utilization of government funds and
revenues to effectively achieve the country’s development objectives. The
department is also tasked to control and monitor appropriations and allotments
through registries it shall maintain. In addition, the validation and assignment of
 new codes for funding source organization, sub-object codes for expenditure items
shall be the responsibility of the DBM.
 BUREAU OF TREASURY- plays a pivotal role in the cash operations of the
national government. The Bureau of Treasury, as one of the operating bureaus of the
Department of Finance is authorized to: Receive and keep national funds, manage
and control disbursements; Maintain accounts of financial transactions of all
national government offices, agencies and instrumentalities. In addition, it shall
monitor bank transfers it makes in replenishing its MDS accounts and also the
consistency of accounts classifications and coding standards with the Government
Finance Statistics (GFS).
 NATIONAL GOVERNMENT AGENCIES- shall maintain and keep current
accounts of the agency; provide advice on the financial condition and status of the
appropriations and allotments of the agency as its Head may require and to develop
and conduct procedures designed to meet the needs of management. They shall
perform the aforesaid duties in accordance with existing laws, rules, regulations,
procedures, and comply with the reporting requirements of the Commission on
Audit, Department of Finance and the Department of Budget and Management.
Failure to comply with these requirements is sufficient ground for dismissal from
the government service.
5. WHAT DO YOU MEAN BY ONE-FUND CONCEPT AS BASIC FEATURES
OF THE NEW GOVERNMENT ACCOUNTING SYSTEM? WHAT ARE THE
EXEMPTIONS WHERE THE ONE-FUND CONCEPT SHOULD NOT BE
APPLIED? Is a fund both a sum of money set aside for a specific purpose and an
independent fiscal and accounting entity? Under the old government accounting system, as
provided by the constitution, all income accruing to the agencies shall accrue to the General
Fund of the government. The exemptions are those special funds for purposes other than
those provided in the regular funds such as: Miscellaneous Personnel Fund; Calamity Fund;
and Organizational Adjustment Fund.
6. DISCUSS BRIEFLY THE ACCOUNTING METHODS INTRODUCED BY
INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD BOARD
 The IPSASB which apply to the accrual basis of accounting and IPSAS which apply to
the cash basis of accounting. The IPSASB develops accrual IPSAS that: are converged
with IFRS issued by the IASB by adapting them to a public sector context where
appropriate. And deals with the public sector financial reporting issues that are
either not addressed by adapting IFRS or for which IFRS haven’t developed by the
IASB. The IPSASB attempts to facilitate the compliance with accrual based IPSAS’s
through the use of transitional provisions in certain standards. The IPSASB has also
issued a comprehensive cash basis IPSASs that includes mandatory and encouraged
disclosures sections.
7. WHAT ARE THE OBJECTIVES OF RESPONSIBILITY ACCOUNTING
UNDER THE NEW GOVERNMENT ACCOUNTING SYSTEM?
  Aims to ensure that all costs and revenues are properly charge/credited to the
correct responsibility center so that deviations from the budget can be readily
attributed to managers accountable therefor; provide a basis for making decisions
for future operations and facilitate review activities monitoring the performance of
each responsibility center and evaluation of the effectiveness of agency’s operations.
8. DEFINE THE FOLLOWING:
 ALLOTMENT- is an authorization issued by the DBM to NGAs to incur obligations
for specified amounts contained in a legislative appropriation in the form of budget
release documents. It is also referred to as Obligational Authority
 OBLIGATION - is an act of a duly authorized official which binds the government
to the immediate or eventual payment of a sum of money. Obligation maybe
referred to as a commitment that encompasses possible future liabilities based on
current contractual agreement.
 NOTICE OF CASH ALLOCATION- authority issued by the DBM to central,
regional and provincial offices and operating units to cover the cash requirements of
the agencies;
9. DISCUSS FULLY THE BASIC FEATURES OF THE NEW GOVERNMENT
ACCOUNTING SYSTEM
 The objectives of the New Government Accounting System are to simplify
government accounting, conform to International Accounting Standards; and
generate periodic and relevant financial reports for better monitoring of
performance.
10. WHAT ARE THE DIFFERENCES BETWEEN THE NEW AND THE
OLD GOVERNMENT ACCOUNTING SYSTEM?
 Under the old government accounting system, accounting entries were
made manually, thereby, necessitating the maintenance of numerous
special journals complete with several wide columns. While under the new
government accounting system, in conformity with International accounting
standards, pursues the eventual computerization which will include
responsibility accounting, thereby ensuring the generation of various reports
that are useful to management, lawmakers and the general public.
 Under the NGAS, the only basis of accounting is modified accrual. While,
under t h e o l d s y s t e m , t h e b a s i s o f a c c o u n t i n g a r e : c a s h b a s i s f o r
t a x , g r a n t s a n d borrowings; accrual for operating income; and obligations
accounting for expenses and disbursements.
 Under the old government accounting system, as provided by the
Constitution, a l l i n c o m e a c c r u i n g t o t h e a g e n c i e s s h a l l a c c r u e t o t h e
G e n e r a l F u n d o f t h e government; and all money collected on any tax levied
for a special purpose shall be treated as a Special- Fund. The NGAS adopts the
one fund concept, and that is the general fu nd , wh ich is ge ne ra ll y
a vai lable for all fu nc tions of governm ent Separate fund accounting shall
be done only when specifically required by law or by a donor agency or when
 otherwise necessitated by circumstances subject to prior approval of the
Commission, in which case, a Special Purpose Fund may be created.
 Under the old government accounting system, the trial balance is a four- money
column listings of all general ledger accounts used in the operations of the
agency, whether, the accounts are with or without balance. In the NGAS
adopts the two-money column trial balance similar to commercial accounting.
The advantage of two-money column trial balance over a four-column one is
that the presentation of financial transactions is very simple.
11. EXPLAIN THE PROCESS AND OTHER CONSIDERATIONS IN
DEVELOPING A STANDARD OF PHILIPPINE PUBLIC SECTOR
ACCOUNTING STANDARDS.

MCQ

1. C. GOVERNMENT ACCOUNTING
2. D. LEGISLATIVE ACCOUNTING
3. A. TO RECEIVE AND KEEP NATIONAL FUNDS AND MANAGE OR CONTROL
DISBURSEMENTS THEREOF.
4. B. CONSTITUITION OF THE REPUBLIC OF THE PHILIPPINES
5. A. REGULAR AGENCY BOOKS AND NATIONAL GOVERNMENT BOOKS
6. D. FUND ACCOUNTING
7. A. ACCRUAL AND CASH BASIS
8. D. EIGHT DIGITS
9. D. NONE OF THE ABOVE
10. C. COMPLY WITH THE REQUIREMENTS OF INTERNATIONAL MONETARY BOARD.
11. A. ORGANIZATIONAL ADJUSTMENT FUND
12. D. GENERAL JOURNAL
13. A. JOURNAL ENTRY VOUCHER
14. C. CASH JOURNAL
15. C. NOTICE OF CASH ALLOCATION
16. C. OTHER ASSETS
17. D. REGISTRY OF NOTICE OF CASH ALLOCATION AND REPLENISHMENT
18. A. DEPARTMENT OF BUDGET AND MANAGEMENT
19. D. COMMISSION ON AUDIT
20. B. DEPARTMENT OF FINANCE-BUREAU OF TREASURY
21. B. GOVERNMENT BUSINESS ENTERPRISES