Task Performance-Gov T Acctg - Prelim

Task Performance – Government Accounting and Non-profit Org.
Prelim
1. Define Government Accounting – 5 points

According to Section 109 of Presidential Decree 1445, Government accounting is define 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 results thereof. It
aims at preventing waste in government services and establishing a balance between optimal expenditure and
services by managing government assets and government sources in the most efficient way.
2. What are the four objectives of Government accounting – 4 points

According to Section 110 of the said decree, there are 4 objectives of Government Accounting and these are;
o Produce information concerning past operations and present conditions;
o Provide a basis for guidance for future operations;
o Provide for control of the acts of public bodies and offices in the receipt, disposition, and
utilization of funds and property; and
o Report on the financial position and the results of operations of government agencies for the
information and guidance of all persons concerned.
3. Give the three subjects of government accounting – 3 points

There are three subjects of government accounting and these are the;
o Fund accounting
o Budget accounting
o Accrual Accounting
4. What are the journals used by government accounting – 4 points

The following journals that are being used by the government accounting are;
o General Journal
o Cash Receipts Journal
o Cash Disbursements Journal
o Check Disbursements Journal
5. What accounting reports are prepared in government accounting – 6 points

The following accounting reports being prepared in government accounting are the;
o Quarterly Physical Report of Operation (QPRO)
o Statement of Appropriations, Allotments, Obligations, Disbursements and Balances –
o Financial Accountability Report
o Summary of Appropriations, Allotments, Obligations, Disbursements and Balances
o by Object of Expenditures
o List of Allotments and Sub-Allotments –
o Statement of Approved Budget, Utilizations, Disbursements and Balances
o Summary of Approved Budget, Utilizations, Disbursements and Balances by Object
o of Expenditures –
o Aging of Due and Demandable Obligations
o Monthly Report of Disbursements
o Quarterly Report of Revenue and Other Receipts
6. Give the different registries used by the agency. – 4 points

The following are the registries used by the agency;
o Registries of Revenue and Other Receipts

o Registry of Appropriations and Allotments
o Registries of Allotments, Obligations, and Disbursements
o Registries of Budget, Utilization, and Disbursements
7. Give the budgetary procedures in government. – 4 points

o Budget preparation. The budget preparation phase is commenced through the issuance of a Budget Call
by the Department of Budget and Management (DBM).
o Budget legislation. This phase covers the period commencing from the time Congress receives the
President’s Budget, which includes the NEP and the BESF, up to the President’s approval of the GAA.
This phase is also known as the budget authorization phase and involves the significant participation of
the Legislative through its deliberations.
o Budget execution. With the GAA now in full force and effect, the next step is the implementation of
the budget.
o Accountability. This is a significant phase of the budget cycle because it ensures that the government
funds have been effectively and efficiently utilized to achieve the State’s socio-economic goals. It also
allows the DBM to assess the performance of agencies during the fiscal year to implement reforms and
establish new policies.
8. What is an appropriation? – 5 points

It is the authorization made by a legislative body to allocate funds for purposes specified by the
legislative or similar authority. It is the provision of funds, through an annual appropriations act or a permanent
law, for federal agencies to make payments out of the Treasury for specified purposes.
9. What is an allotment? – 5 points
It is an authorization issued by the DBM to NGAs to incur obligations for specified amounts in legislative
appropriation in the form of budget release documents. It is also referred as Obligational Authority.
Authorization issued by DBM to an agency, through Agency Budget Matrix (ABM) or Special Allotment Release
Order (SARO), which allows the latter to incur obligation for specified amounts contained in a legislative
appropriation.
10. Purpose of Cash Disbursing Ceiling. 5 points
It is the authority issued by the DBM to agencies to cover the liquidation of their actual obligations
incurred against available allotments for availing proceeds from loans/grants through supplier’s
credit/constructive cash. It is considered as another control mechanism of government accounting system. The
Cash operations of the government under the CDC accounting are limited within the boundaries of the
Appropriations release to government agencies in the form of allotments and any additional amount granted by
the DBM to liquidate or pay existing valid obligations.
11. What items which need adjusting entries – 4 points

The items that need adjusting entries are;
o Accrued expenses also referred to as accrued liabilities
o Unearned revenue also referred to as deferred revenue
o Prepaid expenses
o Accrued revenue
12. What accounts are closed at the end of the period? 2 points
The accounts closed at the end of the period are;
o Revenues
o Expenses
13. Give the three methods of Accounting for income in the government- 3 points
The three methods of Accounting for income in the government are;
o Product method
o Income Method
o Expense method
14. What is the purpose of Notice of Cash allocation (NCA) – 5 points

Notice of Cash Allocation is the authority issued by the DBM to central, regional, and provincial offices
and operating units to cover the cash requirements of the agencies. It serves as a disbursement authority use
for payment of personal services, maintenance, and other operating expenses, capital outlay, financial expenses,
foreign assisted projects and prior years/ Current years’ accounts payable. A cash or disbursement authority that
is periodically issued is referred to as a Notice of Cash Allocation (NCA), in which issuance is based upon an
agency’s submission of its Monthly Cash Program and other required documents. The NCA specifies the
maximum amount of cash that can be withdrawn from a government servicing bank for the period indicated.
15. What is Performance budget? 5 points
According to Investopedia, A performance budget is one that reflects both the input of resources and
the output of services for each unit of an organization. The goal is to identify and score relative performance
based on goal attainment for specified outcomes. This type of budget is commonly used by government bodies
and agencies to show the link between taxpayer funds and the outcome of services provided by federal, state,
or local governments. It also aims to improve the efficiency and effectiveness of public expenditure by linking
the funding of public sector organizations to the results they deliver, making systematic use of performance
information.
16. What is a National Budget? 4 points
Budgeting is the process of estimating revenue and expenses during a specific period of time. A national
budget is the budget of a country. The government gets money from taxes and fees, and spends it on things like
national defense, infrastructure, grants for research, education, and the arts, and social programs such as Social
Security and Medicare.
17. Give the records of the Department of Budget & Management- 3 points
The records of the Department of Budget & Management are;
o Registry of Appropriations and Allotments (RAPAL)
o Registry of Special Purpose Fund Appropriation (RESPFA)
o Registry of Allotments and NCA (RANCA)
18. What do you call the records of the Bureau of Treasury?. 1 point.
The record of the Bureau of Treasury is called Registry of NCA and Replenishments (RENREP)
19. What is an entry if the agency receives an allotment? 2 points

Government agencies shall maintain different Registry of Allocations and Obligations to control and
monitor the allotments it receives and the obligations it incurs. It should be noted that the agency will not
journalize the receipt of its appropriation and allotments but instead simply post it in the respective registry.

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Task Performance – Government Accounting and Non-profit Org.

1. Define Government Accounting – 5 points

2. What are the four objectives of Government accounting – 4 points

3. Give the three subjects of government accounting – 3 points

4. What are the journals used by government accounting – 4 points

5. What accounting reports are prepared in government accounting – 6 points

6. Give the different registries used by the agency. – 4 points

o Registries of Revenue and Other Receipts

7. Give the budgetary procedures in government. – 4 points

8. What is an appropriation? – 5 points

9. What is an allotment? – 5 points

10. Purpose of Cash Disbursing Ceiling. 5 points

11. What items which need adjusting entries – 4 points

14. What is the purpose of Notice of Cash allocation (NCA) – 5 points

15. What is Performance budget? 5 points

16. What is a National Budget? 4 points

19. What is an entry if the agency receives an allotment? 2 points

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