I. General Provisions Basic Standards and Policies

Government
Accounting
TOPIC NO. 1
General Provisions, Basic Standards and
Policies
Objectives:
At the end of this lesson, you will be able to:
• Identify the principles of government accounting

• Recognize the roles and responsibilities of the different
government agencies
• Identify and explain the basic accounting and budget reporting
principles
Government Accounting – encompasses the process of analyzing,
recording, classifying, summarizing and communicating all
transactions involving the receipts and disposition of government
fund and property and interpreting the result thereof (Section 109 of
PD 1445)
Government Accounting Manual –presents the basic accounting

policies and principles in accordance with Philippine Public Sector
Accounting Standards (PPSAS) adopted through COA Resolution
No. 2014-003 and other pertinent laws, rules and regulations. This
manual aims to update standards, policies, guidelines and
procedures in accounting for government funds and properties;
coding structures and accounts; and accounting books, registries,
records, forms, reports and financial statements.
Objectives of Government Accounting
• 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 receipts, disposition and utilization of funds and property
• To report on the financial position and the results of operations of
government agencies for information and guidance of all persons
concerned
Offices Charged with Accounting
Responsibility
• Commission on Audit
• Department of Budget and
Management
• Bureau of Treasury
• National Government Agencies
Commission on Audit
“..shall have exclusive authority subject to the limitation in this

Article, to define the scope of its audit and examination,
establish the techniques and methods required thereof, and
promulgate accounting and auditing rules and regulations
including those for the prevention and disallowances of
irregular, unnecessary, excessive, extravagant or unconscionable
expenditures and uses of government funds and property (Art
IX-D Sec. 2 par (2) 1987 Constitution)”
Commission on Audit
• Keeps the general accounts of the government

• Promulgates accounting rules and regulations
• Submits to the President and Congress (not later than the last
day of September each year) an annual report if the government
• Responsible for the consistency of accounts classification and
coding structures with the Revised Chart of Accounts
• Created the PSASB
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. The Department shall be
responsible for the efficient and sound utilization of government
funds and revenues to effectively achieve the country’s
development objectives (EO292)”
• Responsible for the validation and assignment of new codes
for funding source organization, sub-object codes for
expenditures
Bureau of Treasury
• Receive and keep national funds, manage and control the

disbursements thereof
• Maintain accounts of financial transactions of all national
government agencies and instrumentalities
NATIONAL GOVERNMENT AGENCIES
Have accounting units/division/departments to perform the

following:
• Maintain and keep current the accounts of the agency

• Provide advice on the financial condition and status of
appropriation and allotments as its Head may require
• Develop and conduct procedures designed to meet the needs
of management
BASIC ACCOUNTING AND BUDGET REPORTING
PRINCIPLES
• Generally Accepted Government Accounting Principles in

accordance with PPSAS and pertinent laws, rules and regulations
• Accrual basis of accounting in accordance with the PPSAS
• Budget basis for presentation of budget information in the
financial statements in accordance with PPSAS 24
• Revised chart of accounts prescribed by the Commission on
Audit
• Double entry bookkeeping
• Financial Statements based on accounting and budgetary records
• Fund cluster accounting
Generally Accepted Government Accounting Principles in
accordance with PPSAS and pertinent laws, rules and regulations
• Philippine Public Sector Accounting Standards (PPSAS) were

based on International Public Sector Accounting Standards
(IPSAS). The adoption of PPSAS was prescribed by COA through
COA Resolution No. 2014-003.
• The PPSAS was developed by Public Sector Accounting Standards
Board. The PSASB was created in 2008 under COA Resolution No.
2008-12
• PPSAS shall apply to all National Government Agencies, LGUs,
and/or GOCCs not considered as Government Business Enterprises
(GBEs)
Accrual basis of accounting in accordance with the PPSAS
• Transactions and events are recognized when they occur and not
when they cash or its equivalent is received or paid
• Transactions and events are recognized in the accounting
records/financial statements in the period to which they relate
Budget basis for presentation of budget information in the
financial statements in accordance with PPSAS 24
• Comparison of budget amounts and the actual amounts arising

from execution of budget to be included in the FS of entities that
are required to make publicly available their approved budgets.
• Disclosure of material differences between budget and actual
amounts
Revised chart of accounts prescribed by the Commission on Audit
• Recognizes the need for uniform accounts to be used in the

national government accounting and budget system to facilitate the
preparation of harmonized financial and budget accountability
reports
Double entry bookkeeping
• Every journal entry to account requires a corresponding and

opposite entry to a different account
Financial Statements based on accounting and budgetary records
• Provide information useful for decision making and to demonstrate

accountability to the entity for the resources entrusted to it
Fund cluster accounting
• An accounting entity for recording expenditures and revenues

associated with a specific activity for which accounting records are
maintained and periodic financial reports are prepared
END OF LESSON
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Government

• Identify the principles of government accounting

Government Accounting Manual –presents the basic accounting

• To produce information concerning past operations and present

“..shall have exclusive authority subject to the limitation in this

• Keeps the general accounts of the government

“..shall be responsible for the formulation and implementation

• Receive and keep national funds, manage and control the

Have accounting units/division/departments to perform the

• Maintain and keep current the accounts of the agency

• Generally Accepted Government Accounting Principles in

• Philippine Public Sector Accounting Standards (PPSAS) were

• Comparison of budget amounts and the actual amounts arising

• Recognizes the need for uniform accounts to be used in the

• Every journal entry to account requires a corresponding and

• Provide information useful for decision making and to demonstrate

• An accounting entity for recording expenditures and revenues

Prepare for a quiz next meeting

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