Government Accounting - : Reviewer

REVIEWER
 Government Accounting – encompasses the processes of analyzing, recording, classifying, summarizing and communicating all transactions
involving the receipt and disposition of government funds and property, and interpreting the results thereof.
 Government Budget – is the financial plan of a government for a given period, usually for a fiscal year, which shows what its resources are,
and how they will be generated and used over the fiscal period. The budget is the government's key instrument for promoting its socio-
economic objectives. The government budget also refers to the income, expenditures and sources of borrowings of the National
Government (NG) that are used to achieve national objectives, strategies and programs.
CHAPTER 3
BUDGET EXECUTION, MONITORING AND REPORTING
Sec2. Definition of Terms
 Allotment – is an authorization issued by the DBM to NGAs to incur obligations for specified amounts contained in a legislative appropriation
in the form of budget release documents. It is also referred to as Obligational Authority.
 Appropriation – is the authorization made by a legislative body to allocate funds for purposes specified by the legislative or similar authority.
 Approved Budget – is the expenditure authority derived from appropriation laws, government ordinances, and other decisions related to the
anticipated revenue or receipts for the budgetary period
 Automatic Appropriations – are the authorizations programmed annually or for some other period prescribed by law, by virtue of
outstanding legislation which does not require periodic action by Congress.
 Budget Information – the budgetary information consists of, among others, data on appropriations or the approved budget, allotments,
obligations, revenues and other receipts, and disbursements.
 Continuing Appropriations – are the authorizations to support obligations for a specific purpose or project, such as multi-year construction
projects which require the incurrence of obligations even beyond the budget year.
 Disbursements – are the actual amounts spent or paid out of the budgeted amounts.
 Final Budget – is the original budget adjusted for all reserves, carry-over amounts, transfers, allocations and other authorized legislative or
similar authority changes applicable to the budget period.
 New General Appropriations – are annual authorizations for incurring obligations during a specified budget year, as listed in the GAA.
 Obligation – is an act of a duly authorized official which binds the government to the immediate or eventual payment of a sum of money.
Obligation maybe referred to as a commitment that encompasses possible future liabilities based on current contractual agreement.
 Original Budget – is the initial approved budget for the budget period usually the General Appropriations Act (GAA). The original budget may
include residual appropriated amounts automatically carried over from prior years by law such as prior year commitments or possible future
liabilities based on a current contractual agreement.
 Revenues – are increases in economic benefits or service potential during the accounting period in the form of inflows or increases of assets
or decreases of liabilities that result in increases in net assets/equity, other than those relating to contributions from owners.
 Supplemental Appropriations – are additional appropriations authorized by law to augment the original appropriations which proved to be
insufficient for their intended purpose due to economic, political or social conditions supported by a Certification of Availability of Funds
(CAF) from the BTr.
Sec.31 Preparation of the Budget Reports
 Quarterly Physical Report of Operation (QPRO) – Budget Accountability Report. This report shall reflect the Department’s/Agency’s actual
physical accomplishments as at a given quarter, in terms of the performance measures indicated in its Physical Plan.
 Statement of Appropriations, Allotments, Obligations, Disbursements and Balances – Financial Accountability Report (FAR). This report shall
reflect the authorized appropriations and adjustments, total allotments received including transfers, total obligations, total disbursements
and the balances of unreleased appropriations, unobligated allotments, and unpaid obligations of a department/office/entity by source and
by allotment class. It shall be presented by:
1. Fund Authorization;
2. Major Final Output;
3. Program/Activity/Project; and
4. Major Programs/Projects - identified by Key Result area (KRA)
 Summary of Appropriations, Allotments, Obligations, Disbursements and Balances by Object of Expenditures – FAR No. 1.A (SAAODBOE)
(Appendix 18). This report shall be prepared by Funding Source Code (FSC) as clustered and shall reflect the summary of appropriations,
allotments, obligations, disbursements and balances detailed by object of expenditures consistent with the COA Revised Chart of Accounts
per COA Circular No. 2013-002 dated January 30, 2013 and the Adoption of the PPSAS per COA Resolution No. 2014-003 dated January 24,
2014.
 List of Allotments and Sub-Allotments – FAR No. 1.B (Appendix 19). This report shall reflect the allotments released by the DBM and the
sub-allotments issued by the Entity Central Office/RO, their corresponding numbers, date of issuance, and amounts by allotment class and
FSC. The total allotments per this report should be equal to the total allotments appearing in the SAAODB (FAR No. 1).
 Statement of Approved Budget, Utilizations, Disbursements and Balances – FAR No. 2 (Appendix 20). This report shall reflect the approved
budget, the utilizations, disbursements and balance of the entity’s income authorized by law to use, such as OWWA/SUCs, duly approved by
their Board of Trustee/Regents and shall be prepared by FSC as clustered.
 Summary of Approved Budget, Utilizations, Disbursements and Balances by Object of Expenditures – FAR No. 2.A (Appendix 21). This report
shall reflect the details of the approved budget, utilizations, disbursements and balance of the entity’s income authorized by law to use
presented by object of expenditures consistent with the COA Revised Chart of Accounts and shall be prepared by Funding Source Code as
clustered.
 Aging of Due and Demandable Obligations – FAR No. 3 (Appendix 22). This report shall be prepared by FSC as clustered and shall reflect
the balance of unpaid obligations as indicated in the Obligation Request (ObR) and the ADDOs as at yearend.
CHAPTER 4
RESPONSIBILITY ACCOUNTING
Sec2. Definition of Terms
 Responsibility Accounting – provides access to cost and revenue information under the supervision of a manager having a direct
responsibility for its performance. It is a system that measures the plans (by budgets) and actions (by actual results) of each responsibility
center.
 Responsibility Center – is a part, segment, unit or function of a government agency, headed by a manager, who is accountable for a
specified set of activities. Except for some, which derive most of their income from collection of taxes and fees, NGAs are basically cost
centers which primary purpose is to render service to the public at the lowest possible cost. Cost centers are established to provide each
government agency’s accessibility to cost information and to facilitate cost monitoring at any given period.

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REVIEWER

BUDGET EXECUTION, MONITORING AND REPORTING

Sec2. Definition of Terms

Sec.31 Preparation of the Budget Reports

Sec2. Definition of Terms

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