Chapter 1: General Provisions, Basic Standards and Policies
Business Related Funds – funds by government business
Government Accounting Manual
Presents basic accounting policies and principles in accordance with
Philippine Public Sector Accounting Standards (PPSAS) adopted
through COA and other pertinent laws, rules and regulations.
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.
Public Sector Accounting Standards Board
Considers and make us of, among others, existing laws, financial
reporting, accounting rules and regulations and pronouncement.
Accounting Responsibility
Emanates from the constitution, laws, policies, rules and regulations.
Offices Charged with the Accounting Responsibility
1. Commission on Audit (COA)
2. Department of Budget and Management (DBM)
3. Bureau of Treasury (BTr)
Commission on Audit
Keeps the general accounts of the government, promulgates
accounting rules and regulations.
Department of Budget and Management
Responsible for the formulation and implementation of National
Budget with the goal of attaining our national socio-economic plans
and objectives.
Responsible for the efficient and sound utilization of government
funds and revenues to effectively achieve the country’s development
objectives.
Bureau of Treasury
Plays a pivotal role in the cash operations of the national government.
It controls and monitors the Notice of Cash Allocations.
National Government Agencies
Required by law to have accounting units/divisions/departments.
Roles of Accounting Personnel
1. Maintain and keep current the accounts of the agency
2. Provide advice on the financial condition and status of the
appropriations and allotments of the agency as its Head
may require.
3. To develop and conduct procedures designed to meet the
needs of management.
Fund Cluster Accounting
Refers to 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.
Fund Cluster
1. Regular Agency Fund – normal funds
2. Foreign Assisted Projects Fund – funds come from other
country
3. Special Accounts-Locally Funded/Domestic Grants –
institutes outside the government but within the Philippines
4. Special Accounts-Foreign Assisted/Foreign Grants – no
exchanges
5. Internally Generated Funds – coming from client because
you charge them
6.
enterprise
7. Trust Receipts/Inter-agency Transferred Funds –
government agency to another government agency. Inter-
agency is the transfer within the same department.
Responsibility Accounting
Systems that relates the financial results to a responsibility center,
which provides access to cost and revenue information under the
supervision of a manager having direct responsibility for its
performance.
Chapter 2: The Unified Accounts Code Structure
Unified Accounts Code Structure
Government-wide harmonized budgetary, treasury, and accounting
code classifications that will facilitate reporting of all financial
transactions of government agencies.
General Funds
Funds available for any purpose that Congress may choose to apply,
and composed of all receipts or revenues that do not otherwise accrue
to other funds.
Off-Budgetary Funds
Receipts for expenditure items that are not part of the National
Expenditure Program.
Custodial Funds
Receipts of cash received by any government agency, whether from a
private source or another government agency, to fulfill a specific
purpose.
New General Appropriations
Annual authorizations for incurring obligations during a specified
budget year, as listed in the General Appropriation Act.
Continuing Appropriations
Authorizations to support obligations for a specified purpose or
project, even when these obligations are incurred beyond the budget
year.
Supplemental Appropriations
Additional appropriations enacted by Congress to augment original
appropriations that have proven insufficient for their intended
purpose.
Automatic Appropriations
Authorization made annually or for some other periods prescribed by
law, by virtue of standing legislation, which do not require periodic
action by the congress.
Unprogrammed Funds
Standby appropriations for priority program or project of the
government.
Retained Income/Funds
Collections that are authorized by law to be used directly by agencies
for other operation or specific purpose.
Revolving Fund
Receipts derived from business-type activities of department/agencies
as authorized by law, and which are deposited in an authorized
government depository bank.
Trust Receipts
Receipts that are officially in the possession of government agencies
or a public officer as trustee, agent or administrator.
Department Codes
Primary subdivision of the Executive Branch responsible for the
overall management of a sector or a permanent national concern with
nationwide or international impact.
Agency Codes
Refers to any various units of the government, including an office,
instrumentality or GOCC that may not approximate the size of a
department, but which nevertheless performs tasks that are equally
important and whose area of concerns is nationwide in scope.
Operating Unit Classification Codes
Organizational entities charged with carrying out specific substantive
functions or with directly implementing programs/projects of a
department of agency, such as lines bureaus and field units.
Staff Bureau
Principal subdivision of a department which primarily performs
policy, program development, and advisory functions.
Regional Office
Organizational subdivision, headed by the regional director, who is
responsible for the performance of an entity’s function within a
region.
CDA Extension Office
Units established in each of the country’s region or as may be
necessary, as well as financial viable for implementing integrated and
comprehensive plans and programs on cooperative development.
Location Codes
To facilitate central agency analysis across the National Government.
Region
Sub-national administrative unit composed of several provinces
having more or less homogenous characteristics.
Province
Political corporate unit of government which consist of a cluster of
municipalities, or municipalities and component cities. Serves as
dynamic mechanism for developmental processes and effective
governance of local government units within its territorial
jurisdiction.
Municipality
Serves primarily as a general-purpose government for the
coordination and delivery of basic, regular, and direct services and
effective governance of the inhabitants within its territorial
jurisdictions.
Barangay
Serves as the primary planning and implementing unit of government
policies, plans, programs, projects, and activities in the community.
Major Final Output (MFO)
Good or service that a department or agency in mandated to deliver to
external clients through the implementation of program, activities and
projects.
Program
Integrated group of activities that contributes to an agency or
department’s continuing objective.
Activity
Work process that contributes to the fulfillment of a program or
project.
Project
Investment toward expanding the capacity of a department/agency to
deliver MFOs.
Chapter 4: Accounting for Budgetary Accounts
National Government Budget
A plan for financing the government activities.
Balances Budget
Budget where the proposed expenditures are equal to or less than the
estimated revenues.
Performance-Informed Budgeting (PIB)
Budgeting approach that uses performance information to assist in
deciding where the funds will go.
Annual Budget
Budget which covers a period of one year.
Supplemental Budget
Budget which supplement or adjust a previous budget which is
deemed inadequate for the purpose it is intended.
Special Budget
Budget of special nature and generally submitted in special forms on
account that itemizations are not adequately provided in the
appropriation act or the amounts are not at all included in the
appropriation act.
Performance Budget
Emphasizing the program or services conducted and based on
functions, activities, and projects.
Line-Item Budget
Basis of which is the objects of expenditures.
Zero-Based Budgeting
Requires systematic consideration of all programs, projects and
activities with the use of define ranking procedures.
Incremental Approach
Additional requirements need justifications. Focuses on incremental
changes in the budget.
Budget Preparation
Covers estimation of government revenues, the determination of
budgetary priorities and activities within the constraints imposed by
available revenues and by borrowing limits.
President’s Budget Message
This is where the President explains the policy framework and
priorities in the budget.
Budget of Expenditures and Sources of Financing
Contains the macroeconomic assumptions, public sector context,
breakdown of the expenditures and funding sources for the fiscal year
and the two previous year.
National Expenditure Program
Contains the details of spending for each department and agency by
program, activity or project.
Details of Selected Programs and Projects
Contains the more detailed disaggregation of key programs, projects
and activities.
Staffing Summary Monthly Disbursement Program (MDP)
Contains a summary of the staffing complement of each department Basis for determining the monthly level of NCAs and other
and agency. disbursement authority to be used to national government agencies.

Legislative Authorization Annual Procurement Plan for Common-Use Supplies and Equipment
Relative to the enactment of the general appropriation bill based on Reflect the monthly quantity and cash requirements by items
the budget of receipts and expenditures. categorized.

Budget Execution and Operation Registry of Appropriation and Allotments (RAPAL)

Covers the various operational aspects of budgeting. Monitors appropriations and allotments charged thereto.

Budget Accountability Obligation Request and Status (ORS)

Through this, DBM monitors the efficiency of fund utilization, Incurrence of obligation.
assesses agency performance and provides a vital basis for reforms
and new policies. Registry of Allotments, Obligations, and Disbursement (RAOD)
Record allotments received for the year, obligations incurred against
Appropriation the corresponding allotment, and actual disbursements made.
Authorization made by law or other legislative enactment, directing
payment of goods and services out of government funds under
specific conditions or for special purpose.

Allotment
Authorization issued by DBM which allows it to incur obligations,
for specified amount, within the legislative appropriation.

Obligation
Commitment by the government agency arising from an act of duly
authorized official which binds the government to the immediate or
eventual payment of a sum of money.

General Appropriation Act Release Document (GAARD)

Serves as the obligational authority for the comprehensive release of
budgetary items appropriated in GAA.

Special Allotment Release Order (SARO)

Covers budgetary items under “For Later Release” (FLR).

General Allotment Release Order (GARO)

Comprehensive authority issued to all national government agencies,
in general, to incur obligations not exceeding an authorized amount.

Notice of Cash Allocation (NCA)

Authority issued by the DBM to pay authorized disbursement through
the issue of Modified Disbursement System (MDS) checks.

Non-Cash Availment Authority (NCAA)

Cover the liquidation of their actual obligations incurred against
available allotments for availment of proceeds.

Cash Disbursement Ceiling (CDC)

Authority issued to utilize their income collected/retained by their
Foreign Service Posts (FSPs) to cover their operating requirement,
but not to exceed the released allotment to the said post.

Notice of Transfer of Allocations (NTA)

Issued by Central Office to pay authorized disbursement through
MDS checks.

Re-enacted Budget
Pertains to the budget of the preceding year.

Financial Plan
Includes the comparative obligation levels for the budget year and
current year.

Physical Plan
Consist of the performance indicators and targets of
department/agency.