Korbel Foundation College, Inc.
Purok Spring, Brgy. Morales, City of Koronadal
Tel Number 877-2051/0228-1996
GOVERNMENT ACCOUNTING OVERVIEW
ACCTG 35
ACCOUNTING FOR GOVERNMENT, NON-FOR-PROFIT AND SPECIALIZED INDUSTRIES
Prepared by:
JEFFREY RODRIGUEZ
KFCI-Module 9
Learning Objectives
At the end of the week, the students
must be able to:
01 Understand Overview of
Government Accounting
02 Know the definition, recognition,
measurement and presentation
under New Government Accounting
Systems
03 Discuss accounting treatment
under for each Philippine
government agencies
GOVERNMENT ACCOUNTING OVERVIEW
Content
Government Accounting –encompasses the process of
analyzing, recording, classifying, summarizing, and
communicating all transactions involving the receipts and
dispositions of government funds and property, and interpreting
the results thereof.
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Content
Objectives of government accounting:
1. To produce information concerning past operations and
present conditions.
2. Provide a basis for guidance for future operations.
3. Provide for control acts of public bodies and officers in the
receipt, disposition and utilization of funds and property; and
4. Report on the financial position and the result of operation of
government agencies for the information of all persons
concerned.
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Content
Fund –a sum of money or other resources set
aside for the purpose of carrying out specific
activities or attaining certain objectives in
accordance with special regulations, restrictions,
or limitations.
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
The government has two principal types of funds
according to purpose are:
a. General fund –this includes all financial resources
except those required to be accounted for in another
fund.
b. Special fund –this includes the proceeds of specific
revenue from taxes that are legally restricted to
expenditures for specified purposes.
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Content
There is an equal need for analysis and
procedural refinement in other areas of
accounting, such as Government accounting.
Thus, the government accounting systems
are developed to New Government
Accounting System (NGAS).
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
The standard government chart of accounts is a
Content
list of ledger accounts consisting of real and
nominal accounts. The classification of the
accounts under the new government accounting
system is as follows:
1. Balance Sheet Accounts
2. Income and Expense Accounts
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Group of accounts ofContent
the accounts under NGAS:
Assets Liabilities Equity Income Expense
Current Current Government General Personal
assets Liabilities Equity Income Services
Investments Long-term Intermediate Specific Maintenance
Liabilities Accounts Income and Other
Operating
Expense
Property, Financial
Plant and Expenses
Equipment
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Basic Objectives, Features
Contentand Policies of NGAS
The NGAS issued by the COA which adopt commercial accounting; double-entry
bookkeeping, and responsibility accounting has the following objectives, features
and policies:
Basic objectives:
a. Simplify government accounting.
b. Conform to international accounting standards.
c. Generate periodic and relevant financial reports for better monitoring of
performance.
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Content
Basic Objectives, Features and Policies of NGAS
Basic Features and Policies
• Accrual Accounting
• One fund concept
• Accounting books –Regular agency and National government books
• Accounting Reports
• Two-Money Column Trial balance
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Basic Objectives, Features
Contentand Policies of NGAS
Basic Features and Policies
• Allotment and obligation:
Registry of Allotments and Obligations –Capital Outlay
Registry of Allotments and Obligations –Maintenance and Other
Operating Expenses
Registry of Allotments and Obligations –Personal Services
Registry of Allotments and Obligations –Financial Expenses
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Basic Objectives, Features
Contentand Policies of NGAS
Basic Features and Policies
• Financial expenses
• Notice of Cash Allocation (NCA)
• Perpetual inventory of supplies and materials
• Valuation of inventory
• Construction of assets
• Depreciation
• Allowance for Doubtful Accounts
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Basic Objectives, Features
Contentand Policies of NGAS
Basic Features and Policies
• Elimination of Contingent Asset Accounts
• Recognition of liability
• Accrued interest
• Borrowing of loans
• Registry of Public Infrastructures/Investments
• Elimination of corollary and negative entries
KFCI-Module 9
GOVERNMENT ACCOUNTING OVERVIEW
Content
• Appropriation –is a formal authorization under a legislative act for an
agency to incur expenditures up to a stated sum for specified
purpose usually within a given period of time subject to certain
conditions.
• Allotment –is the authorization issued by the DBM to the Agency,
which allows it to incur obligations, for specified amounts within the
legislative appropriations.
KFCI-Module 9
HIGHLIGHT SUMMARY
Contentare developed, generally to
• Government accounting systems
satisfy the operating needs of the various agencies and
established NGAS.
• The Government Accounting main concern is the fund.
• The accounting procedures of Government Accounting is
basically the same with other aspect of accounting such as
Financial accounting as to its definition, recognition,
measurement and presentation.
KFCI-Module 9
