1.

Government accounting definition

Government Accounting encompasses the process of analyzing, classifying, summarizing, and

communicating all transactions involving the receipts and disposition of government funds and
property and interpreting the results thereof.

-Government Accounting by Punzalan

2. Nature of Government Accounting

The focus of government accounting is the custody and administration of public funds. Many
CPA's are employed in many branches of government more particularly in the Bureau of Internal
Revenue, Commission on Audit, Department of Budget and Management, Securities and
Exchange Commission and even in a police agency like the National Bureau of Investigation.

-Financial Accounting by Valix

3. Fund definition

In government accounting, fund is both a sum of money set aside for a specific purpose and an
independent fiscal and accounting entity. It is created by the constitution and by legislative
enactments, which direct that certain receipts be collected or collections generated and accounted
for as a special resource to carry out specific activities or attain certain objectives.

-Government Accounting by Punzalan

4. Budgetary Procedures

A Budgetary procedures refers to the procedure by which governments create and approve
a budget, which is as follows:

The Financial Service Department prepares worksheets to assist the department head in
preparation of department budget estimates.
The Administrator calls a meeting of managers and they present and discuss plans for the
following year's projected level of activity.
The managers can work with the Financial services, or work alone to prepare an estimate
for the departments coming year.
The completed budgets are presented by the managers to their Executive Officers for
review and approval.

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5. New Government Accounting System (NGAS)

NGAS is a simplified set of accounting concepts, guidelines, and procedures designed to

ensure correct, complete and timely recording of government financial transactions and
production of accurate and relevant financial reports.

-Government Accounting by Punzalan

6. Basic features of NGAS

Accrual Accounting A modified accrual basis of accounting is used, wherein, all

expenses and Income (except where accrual basis is impractical) shall be recognized
when incurred.
One fund Concept As required under Sections 308, 309 and 310 of the Local
Government Code, separate books shall be maintained for the General Fund, Special
Education Fund and Trust Fund.
Special Accounts in the General Fund documents and other accounting forms leading to
the perfection of the transaction whether it be budgetary, collections or disbursements.
These source documents and accounting forms shall be the basis for the recording and the
preparation of the Financial Statements. Special Accounts, complete with subsidiary
ledgers shall also be maintained for the following :

1. Public Utilities and other economic enterprises:

2. Loans , interests, bond issued, and other contributions for specific purposes;

3. Development Projects funded from the Share in the Internal Revenue Collections;

4. Such other special accounts which may be created by law or ordinance.

Chart of Accounts and Account Codes documents and other accounting forms leading to
the perfection of the transaction whether it be budgetary, collections or disbursements.
These source documents and accounting forms shall be the basis for the recording and the
preparation of the Financial Statements. A three- digit account numbering system is
adapted.
Financial Statements documents and other accounting forms leading to the perfection of
the transaction whether it be budgetary, collections or disbursements. These source
documents and accounting forms shall be the basis for the recording and the preparation
of the Financial Statements. the following statements is prepared monthly, quarterly and
annually.
1. Balance Sheet shows the financial condition of the Agency at a specific date.
2. Statement of Income and Expenses shows the income and expenses of the
agency at the end of a particular period.
3. Statement of Cash Flows shows the agencys cash activites.
4. Notes to Financial Statement shall accompany year-end reports.

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