General Accounting Plan Overview
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Questions and Answers

What must the Head of the Budget Unit certify regarding the appropriation charges?

  • Total expenditures and estimated future costs
  • Legitimacy and effectiveness of the construction projects
  • Availability of allotment and obligations incurred (correct)
  • Compliance with local government regulations

    • Which document is prepared by the Budget Officer after verifying the completeness of the documents?

  • RAO
  • DV
  • Cash Advance Request
  • ALOBS (correct)

    • What does RAO stand for in the context of budgeting obligations?

  • Registrar of Allotment Operations
  • Revised Allocation Order
  • Registry of Allotment Obligations (correct)
  • Record of Allotment Orders

    • What must be done if there is no available allotment for an obligation?

    <p>Return the documents to the office concerned</p> Signup and view all the answers

    When is an obligation recognized and entered into the RAO?

    <p>When the obligation is incurred as evidenced by the approved ALOBS</p> Signup and view all the answers

    What type of entry is made for overpayment of expenses during the year?

    <p>Negative entry in the Obligation Incurred column</p> Signup and view all the answers

    What should be provided to support the negative entries of obligations?

    <p>Certified copies of Official Receipts for refunds/overpayments</p> Signup and view all the answers

    What action does the Accountant take when a payment is made charged against the NCA?

    <p>Credit 'Cash-National Treasury-MDS' and debit the specific asset or expense account</p> Signup and view all the answers

    What are current operating expenditures primarily used for?

    <p>Salaries, maintenance, and other operating expenses</p> Signup and view all the answers

    Which of the following is considered a capital outlay?

    <p>Investments in government controlled corporations</p> Signup and view all the answers

    How does the national budget act during economic recessions?

    <p>Increases spending to stimulate demand</p> Signup and view all the answers

    What is the primary purpose of debt amortization within the national budget?

    <p>Repay the principal of government loans</p> Signup and view all the answers

    What role does the national budget play in economic stabilization during growth periods?

    <p>Restricts spending to avoid overheating the economy</p> Signup and view all the answers

    Which aspect of the national budget aims to provide immediate relief to the needy?

    <p>Redistribution of financial resources via social programs</p> Signup and view all the answers

    What is the main goal of net lending in the context of the national budget?

    <p>Support government guaranteed corporate debts</p> Signup and view all the answers

    Why may a national budget increase in times of economic difficulty?

    <p>To fund more social programs</p> Signup and view all the answers

    What does the General Accounting Plan (GAP) primarily represent?

    <p>The overall accounting system of a government agency/unit</p> Signup and view all the answers

    Which of the following is NOT part of the accounting systems outlined in the content?

    <p>Tax Compliance System</p> Signup and view all the answers

    What is the purpose of appropriations within the Budgetary Accounts System?

    <p>To authorize payments made with government funds</p> Signup and view all the answers

    Which component of the Budgetary Accounts System is directly linked to monitoring and controlling appropriations?

    <p>Control worksheets</p> Signup and view all the answers

    Which of the following best describes the Agency Budget Matrix (ABM)?

    <p>A document showing agency expenditures disaggregated by various components</p> Signup and view all the answers

    What is a key factor that distinguishes a government budget?

    <p>It requires approval and authorization before execution.</p> Signup and view all the answers

    Which of the following is NOT a purpose of budgeting as discussed?

    <p>To facilitate the approval process of financial reports</p> Signup and view all the answers

    Budgeting primarily serves which of the following functions?

    <p>Planning and controlling government activities</p> Signup and view all the answers

    What defines the remaining balance in the Priority Program/Project Fund?

    <p>Baseline budget requirements of the national government</p> Signup and view all the answers

    How long is a long-term budget typically prepared for?

    <p>4 to 5 years or longer</p> Signup and view all the answers

    What is the main purpose of Key Budgetary Inclusions (KBIs)?

    <p>To control major financial commitments</p> Signup and view all the answers

    What is the primary concern of the National Budget System?

    <p>Availability and use of money for government services</p> Signup and view all the answers

    Which document serves as the legal basis for the current national budget system?

    <p>Budget Reform Decree or PD No. 1177</p> Signup and view all the answers

    What is the national budget primarily based on?

    <p>Projected income and expenditures of the government</p> Signup and view all the answers

    What is the purpose of the national budget as defined by the Budget Reform Decree?

    <p>To serve as an instrument for development</p> Signup and view all the answers

    What aspect is NOT considered in the National Budget System?

    <p>Forecasting stock market trends</p> Signup and view all the answers

    What is the initial step taken by the House of Representatives regarding the proposed budget?

    <p>The Appropriations Committee conducts an initial review.</p> Signup and view all the answers

    What happens after the House Appropriations Committee reviews the budget?

    <p>It is presented to the House Body as a General Appropriations Bill.</p> Signup and view all the answers

    What is the purpose of the Bicameral Committee in the budget process?

    <p>To create a version combining differences from both houses.</p> Signup and view all the answers

    What must agencies prepare after the President signs the General Appropriations Act into law?

    <p>An Agency Budget Matrix accompanied by an Annual Cash Program.</p> Signup and view all the answers

    Which document provides the authority for government agencies to incur obligations?

    <p>Agency Budget Matrix.</p> Signup and view all the answers

    What modification does DBM Circular Letter #2008-11 introduce regarding the Notices of Cash Allocation?

    <p>It requires a comprehensive monthly breakdown of NCA requirements.</p> Signup and view all the answers

    What is the final outcome after both houses of Congress approve a common budget bill?

    <p>It is submitted to the President for signing into law.</p> Signup and view all the answers

    Who executes or implements the expenditure program after the budget is signed into law?

    <p>The Department of Budget and Management (DBM).</p> Signup and view all the answers

    Study Notes

    General Accounting Plan

    • The General Accounting Plan (GAP) outlines the overall accounting system of a government agency.
    • It encompasses the flow of transactions, from source documents to financial information presented in financial reports.

    Accounting Systems

    • Budgetary Accounts System: Includes the preparation of the Agency Budget Matrix (ABM), monitoring allotments, releasing Sub-Allotment Release Orders (SARO), and recording obligations.
    • Receipts/Income and Deposits System: Responsible for handling income and deposits.
    • Disbursement System: Handles payment-related processes.
    • Financial Reporting System: Generates financial reports for information dissemination.

    Budgetary Accounts

    • Budgeted funds are categorized as appropriations, allotments, and obligations.
    • Appropriations are legal authorizations for government spending under specific conditions or purposes.
    • The DBM and COA monitor and control appropriations through registries and control worksheets.
    • The ABM breaks down agency expenditures by factors such as source of appropriation, allotment class, and need for clearance.

    Government Budgets

    • A government budget is a financial plan for a fiscal year, submitted by the executive branch for approval by a representative body.
    • It involves planning and controlling government activities.
    • Purposes of Budgeting:
      • Establish budget period objectives.
      • Coordinate activities of government departments.
      • Prioritize programs and projects.

    Types of Budgets

    • Regional Budgeting: Allocates funds by region, aligning with the national government's regional organization.
    • Long-term Budget: Projects revenue and expenditure requirements over an extended period (4-5 years).

    Key Budgetary Inclusions (KBIs)

    • Financial commitments of agencies for a specific budget year.
    • Used for:
      • Controlling major financial commitments to prevent misappropriation.
      • Transparency in expenditures.
      • Tracking mandatory obligations and prioritizing projects.

    National Budget System

    • Consists of planning, programming, and budgeting practices of the government.
    • Aims to ensure efficient use of resources for providing government services.
    • The Budget Reform Decree (PD No. 1177) establishes the framework for the national budget system.
    • Emphasizes development as a key objective, emphasizing careful design and implementation throughout the budget process.

    National Budget

    • Government's estimate of income and expenditures.
    • Represents a financial translation of development-promoting programs and projects.
    • Defines planned government spending and revenue sources.

    Budget Spending

    • Expense Class: Categorizes expenditures by type:
      • Current Operating Expenditures: Funds for regular government operations (salaries, maintenance, interest payments).
      • Capital Outlays: Investment in long-term assets (infrastructure, equipment).
      • Net Lending: Government loans to corporations.
      • Debt Amortization: Payments towards loan principal.

    Budget's Impact on the Country

    • Stabilization Role:
      • Government spending can stimulate the economy during recessions.
      • Conservative spending is adopted during economic booms to prevent overheating.
    • Redistribution of Resources:
      • Funding for social services aims to improve human capital, provide relief to the needy, and promote self-help initiatives.

    Budget Legislation

    • The President submits the budget proposal to Congress.
    • The House of Representatives and Senate review the budget and propose amendments.
    • A bicameral committee resolves differences between the houses.
    • Once approved by both houses, the budget is submitted to the President for signing into law as a General Appropriations Act (GAA).

    Budget Execution

    • The DBM implements the GAA, requiring agencies to prepare the ABM and Annual Cash Program.
    • Allotments authorize agencies to incur obligations and enter contracts.
    • Agencies receive Notices of Cash Allocation (NCAs) for funding.
    • The Budget Unit monitors allotments and obligations.

    Obligations

    • Obligations are incurred when contracts are signed or goods are received.
    • ALOBS (Allotment Release Order-Based Obligations Slip) documents obligations.
    • The Budget Officer verifies the availability of allotments and completeness of documents.
    • The Head of the Accounting Unit certifies the availability of funds and cash for payment.

    Adjustment of Obligations

    • Negative entries in the Obligation Incurred column are made for:
      • Refunds of cash advances.
      • Overpayments.
      • Disallowances.

    Accounting Entries

    • Receipt of Allotment: Posted to the respective registries.
    • Payment:
      • Cash-National Treasury-MDS is credited.
      • The relevant asset or expense account is debited.

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    Description

    This quiz covers the key components of the General Accounting Plan (GAP) for government agencies. It includes an exploration of accounting systems, budgetary accounts, and financial reporting processes essential for effective fiscal management.

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