DBM Transparency Seal Quiz

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Questions and Answers

What is the purpose of the Transparency Seal displayed on a government agency's website?

To promote transparency by disclosing government information (correct)

To showcase the agency's physical and financial performance

To provide information on agency officials

To display performance targets of the agency

Who is responsible for implementing the policy of Physical and Financial Accountability Reports according to the text?

The President of the country

The Department of Budget and Management

The head of the agency (correct)

The Department of Finance

What does the Accountability Policy state regarding the unlawful use of government resources?

It is a shared liability among all employees

It is overlooked for minor cases

It is covered by government insurance

It becomes the personal liability of the employee directly responsible (correct)

What type of reports will be published by both DBM and DOF according to the text?

Tax and Non-Tax Revenues Reports Signup and view all the answers

Which entity formulates and implements the National Budget to support national socio-economic plans and objectives?

Congress of the Philippines Signup and view all the answers

What aspect does the Transparency Seal NOT include for public disclosure?

Employee Salaries Signup and view all the answers

What is one reason the government borrows money?

To cover the deficit between needs and tax collected Signup and view all the answers

In budget legislation, what happens after agencies defend their proposed programs and projects?

The President submits the budget to the Congress Signup and view all the answers

What does BOTTOM-UP BUDGETING (BUB) aim to do in the government's budgeting process?

Make the budgeting process more responsive to local needs Signup and view all the answers

What document does the President sign to approve the national budget at the end of the year?

General Appropriation Act (GAA) Signup and view all the answers

During budget deliberations in Congress, how can the voice of the people be ensured according to the text?

By involving the public in committee and plenary discussions Signup and view all the answers

What is one major role of the President and his/her Cabinet in decision-making according to the text?

Deciding which agency receives a budget increase or decrease based on priorities Signup and view all the answers

What is the primary function of the GAA mentioned in the text?

To appropriate funds for the government's budget Signup and view all the answers

Why can't the government immediately spend the budget once the GAA is passed?

Funds need to go through a proper procurement process Signup and view all the answers

What is the responsibility of the DBM in relation to the National Budget?

Formulate and implement the National Budget Signup and view all the answers

What is COA's role mentioned in the text?

Audit government funds utilization Signup and view all the answers

Why does the text emphasize that funds must pass through various processes before reaching agencies?

To ensure efficient and sound fund utilization Signup and view all the answers

What step is necessary before funds can be released for infrastructure projects according to the text?

DBM authorization Signup and view all the answers

When is revenue recorded under the accrual basis of accounting?

When it is earned Signup and view all the answers

Which financial statement basis recognizes revenue when cash is received and expenses when cash is paid?

Cash basis Signup and view all the answers

What characteristic of financial reporting ensures that information is free from material error and bias?

Reliability Signup and view all the answers

Under which accounting basis are revenues recognized when earned and expenses recognized when incurred?

Accrual basis Signup and view all the answers

Which characteristic of financial reporting focuses on whether information can assist users in evaluating past, present, or future events?

Relevance Signup and view all the answers

What is the main difference between the Cash basis and Accrual basis of accounting regarding recording income?

Cash basis records when cash is received, Accrual basis records when income is earned Signup and view all the answers

What is the main purpose of International Financial Reporting Standards (IFRS)?

To ensure that information is consistent, comparable, and credible worldwide Signup and view all the answers

Which entities are required to follow International Public Sector Accounting Standards (IPSAS)?

National Government Agencies (NGAs), Local Government Units (LGUs), and Government-Owned and Controlled Corporations (GOCCs) Signup and view all the answers

What defines a Government Business Enterprise (GBE) according to the Administrative Review Council of Australia?

An entity owned or controlled by the government but operates independently Signup and view all the answers

What is a characteristic of a Government Business Enterprise (GBE) as mentioned in the text?

Has the authority to contract in its own name Signup and view all the answers

In the context of the text, what is the significance of the Government Accounting Manual (GAM)?

It is prescribed by the COA to guide accounting practices in the government Signup and view all the answers

Why are International Financial Reporting Standards (IFRS) important for financial reporting?

To ensure that financial information is standardized and reliable globally Signup and view all the answers

Study Notes

Budget Preparation and Execution

The government's resources are limited, and the "needs" are often greater than the tax collected, leading to a deficit.
To cover the deficit, the government borrows more money.
The government should focus on "priorities" with the help of DBM (Department of Budget and Management) to determine which agencies should receive an increase or decrease in their budget.

Bottom-Up Budgeting (BUB)

A reform initiative of the Aquino administration, making the government's budgeting process more responsive to local needs.
It starts at a grassroots level, moving up to the top level, and takes 7 months to prepare.

Budget Legislation

Legislators discuss the president's proposed budget, and agencies defend their proposed programs and projects.
The budget is debated in Congress, and the public should have access to all documents and discussions.
The Congress will approve the national budget, which the President will sign as the General Appropriation Act (GAA).

General Appropriation Act (GAA)

Covers the annual operating requirements of government agencies.
The GAA is the most comprehensive source of appropriation cover for the government's budget.

Budget Execution

Implemented after the GAA is passed, but the government cannot spend the budget immediately.
The government must follow the correct process, including early bidding for infrastructure, budget program, allotment release, obligation, cash allocation, and disbursement.

DBM (Department of Budget and Management)

Responsible for the formulation and implementation of the National Budget through the efficient and sound utilization of government funds and resources.
Utilizes the budget, and the GAA-AS-RELEASE DOCUMENT reduces budget processes.

Transparency and Accountability

The government is obliged to give authority to DBM.
The Transparency Seal is displayed on government agencies' websites, containing information for public disclosure, and promoting transparency.
Accountability reports, performance reviews, and audit reports are also essential for transparency.

International Financial Reporting Standards (IFRS)

A set of accounting rules for gathering and presenting information in financial reports.
Ensures information is consistent, comparable, and credible worldwide.

International Public Sector Accounting Standards (IPSAS)

Applies to all NGAs, LGUs, and GOCCs not considered as Government Business Enterprise.

Government Accounting Manual (GAM)

Prescribed by COA (Commission on Audit) pursuant to Article IX-D, Section 2.
The Philippine Public Sector Accounting Standards (PPSAS) apply to all NGAs, LGUs, and GOCCs not considered as Government Business Enterprise.

Accrual Basis of Accounting

Records income when earned, and expenses when incurred.
Income is taxed even if cash has not been received.

Financial Statements

Cash basis: records revenue when cash is received, and expenses when cash is spent.
Accrual basis: records revenue when earned, and expenses when incurred.

Qualitative Characteristics of Financial Reporting

Understandability: information is understandable when users can reasonably be expected to comprehend.
Relevance: assists users in evaluating past, present, or future events.
Materiality: is material if its omission or misstatement could influence the decision of users.
Timeliness: loses its relevance if there is undue delay.
Reliability: is free from material error and bias.
Faithful representation: presented in accordance with the substance of the transaction.

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Description

Test your knowledge on reporting actual performance, accountability reports, citizen engagement, and the Transparency Seal displayed on government agency websites.