Introduction

Accounting is an effective tool of management in evaluating the performance of the

different agencies of government. The performance of the public managers would
depend at most, on financial reports generated by the use of accounting systems.

Cognizant of this need, a new accounting system needs to be developed that would
help the different agencies to hit on financial targets, and at the same time be
understood by all users of financial reports.

With this new development, the Commission on Audit (COA), under the new 1987
Constitution, promulgated the New Government Accounting System in the Philippines
(NGAs) for use by all government agencies.

The shift to NGAs was made in response to the following need:

1. Adoption of an accounting system that is in conformity with the International

Accounting Standards.

2. Computerization of the accounting systems to generate reports that will be easy

to understand by the general public.

3. Preparation of regular and routinary financial reports.

4. The use of the generated financial reports as tools of management in decision

making.

Government Accounting � Defined

Under Section 109, of the Presidential Decree (PD) no. 1445, defines Government
Accounting as one that encompasses the process of analyzing, classifying,
summarizing and communicating all transactions that are involved in the receipt and
disbursement of all government funds and properties, and interpreting the results
thereof. In pursuant to this definition, objectives were set to cover several areas
in government operations.

Objectives of Government Accounting

1. To produce relevant financial information about past and present transactions of

government.

2. To serve as basis for decision making for future operations

3. To serve as the control mechanism for the receipt, disposition and utilization
of government funds and properties

4. To come up with financial reports pertaining to the results of operations of

various government agencies that are for dissemination to the public.

Summation

The need for timely preparation of financial reports in government is necessary to

evaluate the performance of the different agencies of government. The result of the
reports would indicate the areas that may still need improvement, as well as come
up with the budgetary requirements for these agencies if needed.

Public officers are managers of funds, that are entrusted to them by the national
government. The financial reports would clearly show if the agencies are achieving
what is mandated of them. These reports would also show the extent in the use of
agency assets and resources, as well as the need for additional infusion of funds
if required

The accounting data would show how the funds of government were used. This would
also reveal the inflow and outflow of funds and the need for stiffer fund
management and control, if necessary.

On Accounting Responsibility

This fiscal responsibility emanates from the Constitution and its governing laws,
rules and promulgation. The mandate as prescribed under the said Constitution of
the Philippines calls for the keeping of the general accounts, as well as the
promulgation and submission of financial reports that would cover the operations of
government.

The government officers that are mandated to discharge the above-stated Accounting
responsibilities are the Commission on Audit (COA), the Department of Budget and
Management (DBM) and the Bureau of Treasury (BTr) � to discharge the functions of
government in consonance with its commitment to all Filipinos.

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