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Questions and Answers
What is the main legal basis for the Government Accounting Manual (GAM) for National Government Agencies (NGAs)?
Which of the following is NOT covered under the GAM for NGAs?
What is one of the objectives of the GAM for NGAs?
According to the Philippine Constitution, what is the exclusive authority of the Commission on Audit concerning audit and examination?
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Which document sets the standards for preparing general purpose financial statements according to the text?
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What is one specific focus area for updating under the GAM for NGAs?
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In government entity financial reporting, which accounting principle dictates that transactions are recognized when they occur?
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According to Philippine Public Sector Accounting Standards (PPSAS), how are transactions recognized under the accrual basis?
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What is one of the key features of the financial records of government entities regarding budget presentation?
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Which type of accounting system requires equal debits and credits for each transaction?
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What is the purpose of maintaining separate accounting books for Regular Agency Fund and Foreign Assisted Projects Fund?
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Under what system are financial statements prepared based on accounting and budgetary records?
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Study Notes
Legal Basis
- 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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Description
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.
