GAM for NGAs and COA Authority Quiz
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Questions and Answers

What is the main legal basis for the Government Accounting Manual (GAM) for National Government Agencies (NGAs)?

  • Standards, policies, guidelines, and procedures
  • Philippine Public Sector Accounting Standards (PPSAS)
  • Commission on Audit (COA)
  • Philippine Constitution (correct)

Which of the following is NOT covered under the GAM for NGAs?

  • Coding structure and accounts
  • Privatization processes and regulations (correct)
  • Preparing general purpose financial statements in accordance with PPSAS
  • Reporting of budget, revenue, and expenditure

What is one of the objectives of the GAM for NGAs?

  • Reducing government transparency
  • Updating standards, policies, and guidelines in government accounting (correct)
  • Maintaining irregular expenditures
  • Establishing unrelated auditing techniques

According to the Philippine Constitution, what is the exclusive authority of the Commission on Audit concerning audit and examination?

<p>Define the scope of its audit and examination (B)</p> Signup and view all the answers

Which document sets the standards for preparing general purpose financial statements according to the text?

<p>Philippine Public Sector Accounting Standards (PPSAS) (C)</p> Signup and view all the answers

What is one specific focus area for updating under the GAM for NGAs?

<p>Updating accounting books and records (A)</p> Signup and view all the answers

In government entity financial reporting, which accounting principle dictates that transactions are recognized when they occur?

<p>Accrual basis of accounting (C)</p> Signup and view all the answers

According to Philippine Public Sector Accounting Standards (PPSAS), how are transactions recognized under the accrual basis?

<p>When they occur (D)</p> Signup and view all the answers

What is one of the key features of the financial records of government entities regarding budget presentation?

<p>Budgetary records basis (D)</p> Signup and view all the answers

Which type of accounting system requires equal debits and credits for each transaction?

<p>Double-entry bookkeeping (D)</p> Signup and view all the answers

What is the purpose of maintaining separate accounting books for Regular Agency Fund and Foreign Assisted Projects Fund?

<p>To comply with fund cluster accounting (A)</p> Signup and view all the answers

Under what system are financial statements prepared based on accounting and budgetary records?

<p>Accrual basis of accounting (D)</p> Signup and view all the answers

Flashcards

Commission on Audit (COA)

A government body in the Philippines responsible for auditing national agencies.

General Accounting Manual (GAM)

A manual established by COA for accounting in National Government Agencies.

Philippine Public Sector Accounting Standards (PPSAS)

Standards governing accounting practices for public sector entities in the Philippines.

Article IX-D, Section 2(2)

The constitutional provision granting COA authority over audits and accounting rules.

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Accrual basis of accounting

An accounting method recognizing financial events when they occur, not when cash is exchanged.

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Budget basis

Method used to present budget information in financial statements.

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Revised Chart of Accounts

The updated listing of accounts used by COA for financial reporting.

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Double entry bookkeeping

An accounting method requiring every transaction to be recorded in two accounts.

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Fund cluster accounting

Method of maintaining accounts based on specific fund types in government.

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Regular Agency Fund

A fund category for regular operations of a government agency.

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Foreign Assisted Projects Fund

A fund managing projects supported by foreign grants.

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Financial statements

Official records summarizing the financial activity of an organization.

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Study Notes

  • The Commission on Audit (COA) has the authority to promulgate the General Accounting Manual (GAM) for National Government Agencies (NGAs) based on the Philippine Constitution.
  • The relevant provision of law is Article IX-D, Section 2(2), which grants the COA exclusive authority to define the scope of its audit and examination, establish techniques and methods, and promulgate accounting and auditing rules and regulations.

Coverage

  • The GAM for NGAs provides basic concepts for preparing general purpose financial statements in accordance with the Philippine Public Sector Accounting Standards (PPSAS) and other financial reports.
  • The GAM also covers the reporting of budget, revenue, and expenditure in accordance with laws, rules, and regulations.

Objective

  • The GAM for NGAs aims to update standards, policies, guidelines, and procedures in accounting for government funds and property.
  • The GAM also updates the coding structure and accounts, as well as accounting books, registries, records, forms, reports, and financial statements.

Basic Accounting and Budget Reporting Principles

  • Financial records and reports of government entities must comply with Philippine Public Sector Accounting Standards (PPSAS) and relevant laws, rules, and regulations.
  • The accrual basis of accounting is used, where transactions are recognized when they occur, not only when cash is received or paid.
  • The budget basis is used for presenting budget information in financial statements.
  • The Revised Chart of Accounts prescribed by COA is used.
  • Double entry bookkeeping is used.
  • Financial statements are based on accounting and budgetary records.
  • Fund cluster accounting is used, where books of accounts are maintained by fund cluster, such as:
    • Regular Agency Fund
    • Foreign Assisted Projects Fund
    • Special Account-Locally Funded/Domestic Grants Fund
    • Special Account-Foreign Assisted/Foreign Grants Fund
    • Internally Generated Funds
    • Business Related Funds
    • Trust Receipts

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Test your knowledge on the Government Accounting Manual (GAM) for National Government Agencies (NGAs) and the authority of the Commission on Audit (COA) in promulgating accounting and auditing rules and regulations.

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