Implementing the

GOVERNMENT ACCOUNTING MANUAL (GAM)

(For National Government Agencies)

Budget and Other Finance Personnel Perspective

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 1 of 27

 Introduction

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 2 of 27

 Session Overview

Government Accounting Manual (GAM)-National in

relation to:
• Adoption of policies and procedures in the implementation of
Philippine Public Sector Accounting Standards (PPSAS)
• Harmonization of the Budget and Financial Accountability Reports
(BFARs)
• Revision of the Chart of Accounts
• Implementation of Unified Accounts Code Structure
• Changes in accounting policies adopted resulting from PPSAS
implementation
GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 3 of 27
 Legal Basis

Article 1X-D, Section 2 par. (2), 1987 Philippine

Constitution

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 4 of 27

 Philippine Public Sector Accounting
Standards

Creation of the Public Sector Accounting Standards

Board (PSAcSB) and its Secretariat
• COA Resolution No. 2008-012 dated Oct. 10, 2008
• COA Office Order No. 2010-118 dated Feb. 19, 2010
• COA Office Order No. 2013-622 dated Oct. 01, 2013

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 5 of 27

 Functions of the PSAcSB
Assist the COA Commission Proper in formulating and
implementing accounting standards for the public
sector.

Establish and maintain linkages with international

bodies, professional organizations and academe on
accounting related fields on financial management

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 6 of 27

 CONTENTS OF THE GAM
Volume 1 Volume 2 Volume 3
22 Chapters, 19 Annexes, 92 Appendices 3 Chapters
Acronyms
 Accounting Policies Books, Registries, Records, List of Accounts
Forms and Reports
 Accounting Description of Accounts
 Budget
 Treasury
 Property/Supply Unit
Guidelines and Procedures Instructions: How to
Accounting Accomplish
Budget
Treasury When/Where to Submit

Illustrative Accounting Entries

Sample Format of the FS
GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 7 of 27
 Objectives of the GAM

Updates on the following:

• Policies, Guidelines, Standards and Procedures
• Coding Structure and Accounts
• Accounting Books, Registries, Records, Forms, Reports and
Financial Statements
• Accounting Journal Entries

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 8 of 27

 Changes Adopted in the GAM

Particulars NGAS GAM

1. FS Title 1. Balance Sheet
2. Statement of Income
and Expenses
3. Statement of
Government Equity
4. Cash Flow Statement
2. Components of FS four
GAM: Budget and Other Finance Personnel Session 1: Introduction
1. Statement of Financial
Position
2. Statement of Financial
Performance
3. Statement of Changes in Net
Assets/Equity
4. Statement of Cash Flow
Six
In addition to the above:
5. Statement of Comparison of
Budget and Actual Amounts
6. Notes to Financial Statements
Slide 9 of 27
 Changes Adopted in the GAM
Particulars NGAS GAM
3. Chart of Accounts COA Circular 2004- COA Circular 2013-002,
008 January 30, 2013
COA Circular 2014-003,
April 15, 2014

4.Unified Accounts None Compliant

Code Structure
(UACS)
5. Books Maintained Regular Agency Fund Cluster
Book and National
GAM: Budget and Other Finance Personnel
Government Book
Session 1: Introduction Slide 10 of 27
 Changes Adopted in the GAM
Particulars NGAS GAM
6.Estimated Useful Life Prescribed by COA Management
prerogative
7. PPE Threshold None P15,000 and above

8. Inventory Costing Moving Weighted Moving Weighted

Average Average
Specific Identification

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 11 of 27

 Changes Adopted in the GAM
Particulars NGAS GAM
9. Fund One Fund Fund Clustering
Maintenance Concept 01 - Regular Agency Fund
02 - Foreign-Assisted Projects Fund
03 - Special Accounts-Locally
Funded/Domestic Grants Fund
04 - Special Account-Foreign
Assisted/Foreign Grants Fund
05 - Internally Generated
Funds/Retained Income Fund
06 - Business Related
Funds/Revolving Fund
07 - Trust Receipts

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 12 of 27

 Changes Adopted in the GAM
Particulars NGAS GAM
10.Cash Flow Direct Method Direct Method
11. Completed Public Derecognized Recognized
Infrastructure
12. Statement of
Financial Position With Distinction
Assets Without distinction Current and Non-current

With Distinction
Liabilities Without distinction Current and Non-current

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 13 of 27

 Changes Adopted in the GAM
Particulars NGAS GAM
13. Statement of Financial Form part of Income Not part of Revenue
Performance from Current Operation
Subsidies, Transfers

14. Impairment loss None Recognized

15. Adjustment affecting Uses Prior Year’s Adjustment Direct adjustment to
Government Equity account Equity

16. Income Collection Without authority to use-BTr Recorded by NGAs

With authority to use-NGAs

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 14 of 27

 Changes Adopted in the GAM
Particulars NGAS GAM
17. Accounting for Donation
with conditionality Income Liability
without conditionality Income Revenue
with restriction - Revenue
18. Monitoring of None Section C of ORS
Obligation/Payment
19. Residual value 10% At least 5%

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 15 of 27

 New Standards Adopted
Particulars NGAS GAM
1. Standards none PPSAS 13-Leases
PPSAS 32-Service Concession Arrangements: Grantor
PPSAS 28, 29 and 30-Financial Instruments
PPSAS 31-Intangible Assets
PPSAS 8-Interest in Joint Ventures
PPSAS 14- Events After the Reporting Date
PPSAS 3-Accounting Policies, Changes in Accounting
Estimates and Errors
PPSAS 19-Provisions, Contingent Liabilities,
Contingent Assets
PPSAS 16-Investment Property

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 16 of 27

 New Standards Adopted
Particulars NGAS GAM
none PPSAS 9 and 23-Revenue
PPSAS 12-Inventories
PPSAS 17-PPE
PPSAS 32-Agriculture activities
PPSAS 5-Borrowing Costs
PPSAS 4-Foreign Exchange
Transactions

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 17 of 27

 The Budget Cycle
BUDGET
PREPARATION

BUDGET BUDGET
ACCOUNTABILITY APPROVAL

BUDGET
EXECUTION

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 18 of 27
 1) Recording and reporting – PPSAS and pertinent
laws, rules and regulations
2) Accounting – accrual basis PPSAS
3) Budget – PPSAS 24
4) Fund cluster accounting
5) FS or components of GPFR based on accounting
and budget records

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 19 of 27
 Budget and Financial Accountability
Reports(BFAR)(COA-DBM-DOF Joint Circular No.
2013-1, as amended by COA-DBM Joint Circular No.
2014-1 dated July 2, 2014

Quarterly Physical Report of Operation (QPRO)-BAR No. 1

Statement of Appropriations, Allotments, Obligations,
Disbursements and Balances (SAAODB)-FAR No. 1
Summary of Appropriations, Allotments, Obligations,
Disbursements and Balances by Object of
Expenditures(SAAODBOE)-FAR No.1-A

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 20 of 27

 Components of Budget and Financial Accountability
Reports(BFAR)(COA-DBM-DOF Joint Circular No. 2013-1, as
amended by COA-DBM Joint Circular No. 2014-1 dated July
2, 2014

List of Allotments and Sub-Allotments(LASA)-FAR No. 1-B

Statement of Approved Budget, Utilizations, Disbursements
and Balances(SABUDB)-FAR No. 2(for Off-Budget Fund)
Summary of Approved Budget, Utilizations, Disbursements
and Balances by Object of Expenditures(SABUDBOE)-FAR
No. 2-A(for Off-Budget Fund)

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 21 of 27

 Components of Budget and Financial Accountability
Reports(BFAR)(COA-DBM-DOF Joint Circular No. 2013-1, as
amended by COA-DBM Joint Circular No. 2014-1 dated July
2, 2014
Aging of Due and Demandable Obligations(ADDO)-FAR No. 3
Monthly Report of Disbursements(MRD)-FAR No. 4
Quarterly Report of Revenue and Other Receipts(QRROR)-FAR
No. 5

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 22 of 27

 Changes Adopted in the GAM
(Budget)
Particulars NGAS GAM
1. Maintenance of RAOPS, RAOMO, RAOD
Registries RAOCO, RAOFE
RAPAL
RBU RBUD
2.Statement of None Additional component of
Comparison of Budget FS
and Actual Amounts
3. Registry of Revenue None New
and other Receipts

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 23 of 27

 • Policies • FARs • SCBAA
• Procedures
• Forms
• Registries

Budget Accountability Financial

Forms Reports Statement

GAM: Budget Session 1: Introduction to the Course and Overview of the GAM Slide 24 of 27
 Responsibility Accounting - a system that measures
the plans (by budgets) and actions (by actual results)
of each responsibility center

Responsibility Center - a part, segment, unit or

function of a government agency, headed by a
manager, who is accountable for a specified set of
activities

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 25 of 27

 Objectives of Responsibility Accounting
• all costs and revenues properly charged/credited to the
correct responsibility center
• provide basis for making decisions for future operations
• facilitate review activities
• monitor performance of each responsibility center
• evaluate effectiveness of agency’s operations

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 26 of 27

GAM: Budget and Other Finance Personnel Session 1: Introduction Slide 27 of 27