Government Spending Regulations Quiz
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Questions and Answers

What is considered illegal spending in government agencies?

  • Spending approved by local legislative bodies
  • Spending within the General Appropriations Act
  • Spending on irregular expenditures
  • Spending outside of authorized appropriations (correct)

    • Which of the following best defines unnecessary expenditures in government operations?

  • Spending that deviates from established laws
  • Spending that is considered regular and justifiable
  • Spending that is essential to achieve government objectives
  • Spending that is not essential to achieving government objectives (correct)

    • Which law penalizes the misuse of public funds?

  • General Appropriations Act
  • Administrative Code of 1987
  • Republic Act No. 6713
  • Republic Act No. 3019 (correct)

    • What type of expenditures involve spending beyond what is reasonable or necessary?

    <p>Extravagant expenditures</p> Signup and view all the answers

    According to the 1987 Constitution, which is required for money to be paid out of the Treasury?

    <p>An appropriation made by law</p> Signup and view all the answers

    What defines irregular expenditures in the context of government spending?

    <p>Spending that is inconsistent with established laws or procedures</p> Signup and view all the answers

    Which provision emphasizes that all government spending must be justified?

    <p>COA Circular No. 2012-003</p> Signup and view all the answers

    What is the consequence of misusing public funds allocated for specific projects?

    <p>It can lead to criminal liability</p> Signup and view all the answers

    What is required for all government expenditures to ensure their legality and legitimacy?

    <p>Supporting documents such as receipts and contracts</p> Signup and view all the answers

    What must be validated to prevent overpayment according to the COA Circular?

    <p>The accuracy of claims</p> Signup and view all the answers

    Which of the following prohibits payments for goods or services that have not been delivered?

    <p>COA Circular No. 97-002</p> Signup and view all the answers

    What is one of the key principles regarding the use of appropriated funds?

    <p>Funds must be used constitutionally and legally</p> Signup and view all the answers

    Which act explicitly prohibits public officials from participating in transactions with personal interests?

    <p>Republic Act No. 6713</p> Signup and view all the answers

    Who has the authority to realign savings within budgets according to the Philippine Constitution?

    <p>President and other key officials</p> Signup and view all the answers

    What is prohibited regarding advance payments or cash advances?

    <p>Using them for unauthorized new projects</p> Signup and view all the answers

    What must all procurement activities adhere to ensure accountability?

    <p>Government Procurement Reform Act</p> Signup and view all the answers

    What does the Administrative Code of 1987 define in relation to savings?

    <p>It outlines punitive measures for savings misuse</p> Signup and view all the answers

    According to the constitutional guideline, no money shall be paid out of the treasury except for purposes of what?

    <p>Authorized appropriations</p> Signup and view all the answers

    Which of the following is a reason for the prohibition against making payments for undelivered goods or services?

    <p>To protect public funds from misappropriation</p> Signup and view all the answers

    What kind of payments are subject to immediate recovery as per the government's regulations?

    <p>Overpayments to suppliers and contractors</p> Signup and view all the answers

    What activity is not allowed under procurement laws?

    <p>Sole sourcing without justification</p> Signup and view all the answers

    Which law mandates the usage of public funds strictly for authorized purposes?

    <p>Presidential Decree No. 1445</p> Signup and view all the answers

    What is the primary regulation governing advance payments in government transactions?

    <p>Presidential Decree No. 1445</p> Signup and view all the answers

    What is the maximum advance payment allowed for mobilization fees under RA No. 9184?

    <p>15% of the contract amount</p> Signup and view all the answers

    What must be done immediately upon completion of an activity related to cash advances?

    <p>Liquidate the cash advance</p> Signup and view all the answers

    Who primarily conducts post-audit reviews related to advance payments and cash advances?

    <p>Commission on Audit (COA)</p> Signup and view all the answers

    Which section of the Philippine Constitution mandates accountability for public officials?

    <p>Article XI, Section 1</p> Signup and view all the answers

    What is an example of a case where advance payments are permitted in government transactions?

    <p>Mobilization fees for infrastructure</p> Signup and view all the answers

    What is the consequence for accountable officers failing to liquidate cash advances in a timely manner?

    <p>Potential sanctions</p> Signup and view all the answers

    What does COA Circular No. 2012-004 impose on accountable employees?

    <p>Sanctions for delayed liquidation</p> Signup and view all the answers

    Which of the following is prohibited with cash advances?

    <p>Using for personal expenses</p> Signup and view all the answers

    Which section states that accountable officers are liable for loss or improper use of government funds?

    <p>Presidential Decree No. 1445, Section 101</p> Signup and view all the answers

    What is the primary duty of local treasurers under the legal framework for accountable employees?

    <p>Collecting local taxes and revenues</p> Signup and view all the answers

    What must public funds be safeguarded against by accountable officers?

    <p>Improper use</p> Signup and view all the answers

    For what duration must cash advances for local travel be liquidated?

    <p>30 days</p> Signup and view all the answers

    What happens if an accountable officer misappropriates public funds?

    <p>They may face criminal charges</p> Signup and view all the answers

    What is required for subscription services regarding advance payments?

    <p>Must have prior approval</p> Signup and view all the answers

    What may result from neglect of duty in public office?

    <p>Suspension or dismissal</p> Signup and view all the answers

    What is the role of the Commission on Audit (COA) regarding local government units (LGUs)?

    <p>To conduct regular audits of LGU accounts</p> Signup and view all the answers

    Which act prohibits public officials from having financial interests in government transactions?

    <p>Anti-Graft and Corrupt Practices Act</p> Signup and view all the answers

    What is considered misusing public funds for entertainment?

    <p>Spending on lavish events unrelated to public service</p> Signup and view all the answers

    What consequence may an official face for excessive spending on receptions?

    <p>Civil Liability to reimburse spent funds</p> Signup and view all the answers

    What is a common example of a prohibited activity in government?

    <p>Awarding contracts to relatives</p> Signup and view all the answers

    Which of the following is an example of an unliquidated cash advance?

    <p>Failing to account for funds used in a local festival</p> Signup and view all the answers

    What is a key requirement for officials under the Code of Conduct?

    <p>To avoid conflicts of interest</p> Signup and view all the answers

    What specific act addresses malversation of public funds?

    <p>Revised Penal Code</p> Signup and view all the answers

    What does the prohibition against reception and entertainment aim to promote?

    <p>Transparency and accountability in public service</p> Signup and view all the answers

    What practice is encouraged to ensure compliance with legal standards?

    <p>Conflict of interest disclosure</p> Signup and view all the answers

    What is a key responsibility of Local Chief Executives regarding financial operations?

    <p>To monitor financial operations in their jurisdictions</p> Signup and view all the answers

    What requirement is outlined in the Government Auditing Code concerning public funds?

    <p>Using public funds solely for lawful purposes</p> Signup and view all the answers

    Which section of the Philippine Constitution enforces the principle of public office as a public trust?

    <p>Article XI, Section 1</p> Signup and view all the answers

    What is the main purpose of a voucher?

    <p>To provide a basis for disbursement and serve as evidence of payment</p> Signup and view all the answers

    What does Section 4 of Presidential Decree No. 1445 stipulate?

    <p>Disbursements require proper certification and legal appropriations</p> Signup and view all the answers

    Which entity is primarily responsible for approving vouchers in government agencies?

    <p>Head of the agency or authorized official</p> Signup and view all the answers

    What is a common issue encountered during voucher approval?

    <p>Frequent approval of fraudulent transactions</p> Signup and view all the answers

    What type of liability can approving officials face for illegal disbursements?

    <p>Both criminal and civil liability</p> Signup and view all the answers

    Why should training on voucher preparation be conducted regularly?

    <p>To ensure compliance with evolving regulations and best practices</p> Signup and view all the answers

    What is one of the best practices for voucher approval?

    <p>Utilizing electronic systems for preparation and approval</p> Signup and view all the answers

    Which of the following is NOT a responsibility of the approving official?

    <p>Issuing payment directly</p> Signup and view all the answers

    What does the Commission on Audit (COA) do in relation to vouchers?

    <p>Ensures compliance with regulations and sufficient documentation</p> Signup and view all the answers

    What was one of the findings concerning LGUs in 2023?

    <p>PHP 15 million vouchers processed without proper documentation</p> Signup and view all the answers

    Which official role is primarily responsible for issuing checks in Regular Government Agencies?

    <p>Cashier or Disbursing Officer</p> Signup and view all the answers

    What can lead to administrative liability for approving officials?

    <p>Improper approval of vouchers leading to misappropriation</p> Signup and view all the answers

    What must be submitted along with vouchers related to procurement?

    <p>Valid contracts and inspection reports</p> Signup and view all the answers

    What is the primary purpose of posting the summary of income and expenditures by LGUs?

    <p>To enhance transparency and accountability in financial transactions.</p> Signup and view all the answers

    According to the Local Government Code of 1991, how often must LGUs post their summary of income and expenditures?

    <p>At least once every quarter.</p> Signup and view all the answers

    Under which act are officials held accountable for approving fraudulent vouchers?

    <p>Republic Act No. 3019</p> Signup and view all the answers

    What types of financial data should be included in the quarterly summary posted by LGUs?

    <p>Income and expenditures including taxes, grants, and other revenues.</p> Signup and view all the answers

    Where are LGUs required to post their summary of income and expenditures?

    <p>Conspicuous places such as municipal or city halls and official websites.</p> Signup and view all the answers

    Which law encourages proactive disclosure of public financial information by government agencies?

    <p>Freedom of Information (FOI) Executive Order No. 2, Series of 2016.</p> Signup and view all the answers

    What is one benefit of posting financial summaries for citizens?

    <p>Increases public trust in financial reporting.</p> Signup and view all the answers

    Which example demonstrates a compliance practice for LGUs in posting financial summaries?

    <p>Quezon City regularly posts on its official website and city hall bulletin boards.</p> Signup and view all the answers

    What role do Citizen Participatory Audit (CPA) initiatives play regarding posted financial summaries?

    <p>They utilize financial summaries to engage citizens in auditing local projects.</p> Signup and view all the answers

    Which organizations are mandated to post the summary of income and expenditures?

    <p>All LGUs, GOCCs, and legally mandated agencies.</p> Signup and view all the answers

    What is one of the key principles promoted by posting financial summaries?

    <p>Good governance through ethical financial practices.</p> Signup and view all the answers

    Which of the following is one of the signatory roles in check management as outlined by the Department of Budget and Management?

    <p>Cashier</p> Signup and view all the answers

    What does COA Circular No. 2012-001 prescribe policies against?

    <p>Excessive, extravagant expenditures</p> Signup and view all the answers

    What is the first step in the check issuance process?

    <p>Obligation Recording</p> Signup and view all the answers

    Which of the following roles does NOT typically involve check approval in a local government unit?

    <p>Public Relations Officer</p> Signup and view all the answers

    What does dual signatures on checks help prevent?

    <p>Unauthorized disbursements</p> Signup and view all the answers

    What type of liability includes penalties like dismissal or demotion?

    <p>Administrative Liability</p> Signup and view all the answers

    Which of the following is a response of COA when irregular expenditures are found?

    <p>Investigations of officials involved</p> Signup and view all the answers

    What legal framework penalizes malversation of public funds?

    <p>Revised Penal Code of the Philippines</p> Signup and view all the answers

    Which position is primarily responsible for issuing checks in a local government?

    <p>City Treasurer</p> Signup and view all the answers

    Which of the following is NOT part of the requirements for check issuance?

    <p>Review by the Auditor General</p> Signup and view all the answers

    Which act penalizes public officials for gross negligence?

    <p>Anti-Graft and Corrupt Practices Act</p> Signup and view all the answers

    What is a key component of accountability in financial management?

    <p>Regular Audits</p> Signup and view all the answers

    Which circular defines characteristics of unlawful expenditures?

    <p>COA Circular No. 2012-001</p> Signup and view all the answers

    In which situation might an official face criminal liability?

    <p>Diverting disaster relief funds</p> Signup and view all the answers

    Study Notes

    Government Expenditures and Disbursements in the Philippines

    • Government accounting in the Philippines adheres to established principles for appropriate, efficient, and lawful use of public funds.

    Prohibitions Against Expenditures

    • Budgetary Limits: Government entities must operate within approved budgets from Congress or local legislatures. Spending outside these limits is illegal. (1987 Constitution, Article VI, Section 29(1)).
    • General Appropriations Act (GAA): Congress annually approves the GAA, detailing fund allocations for government programs, enhancing accountability and transparency.
    • Irregular, Unnecessary, Extravagant, Excessive, or Unconscionable Expenditures (IUEEU): These expenditures violate established laws, procedures, and guidelines, are not essential, and are unreasonable. Prohibited under the Administrative Code of 1987.
    • Misuse of Public Funds: Misusing funds for purposes other than their intended use is a violation of public trust and may lead to criminal charges. (Republic Act No. 3019, Section 3(e)).
    • Proper Documentation: All expenditures must be supported by documentation like receipts, purchase orders, and contracts. (COA Circular No. 96-004, Presidential Decree No. 1445, Section 4(6))

    Overpayment and Undisbursed Payments

    • Overpayment Prohibition: Payments exceeding authorized amounts are prohibited. Overpayments must be recovered. (COA Circular No. 2012-001, Presidential Decree No. 1445, Section 43(2)).
    • Non-Delivery Payments: No payments for undelivered goods or services are allowed, safeguarding funds from misuse. Verification of delivery or completion is mandatory. (COA Circular No. 97-002, Presidential Decree No. 1445, Section 3)

    Conflict of Interest

    • Prohibited Transactions: Public officials cannot engage in transactions with personal interest, preventing corruption and ensuring fairness. (Republic Act No. 6713, Section 7, Republic Act No. 3019, Section 3(h))

    Procurement Law Violations

    • Compliance is Mandatory: All procurement activities must adhere to the Government Procurement Reform Act, ensuring transparency and fairness. Violations like split contracts are forbidden. (Republic Act No. 9184)

    Use of Appropriated Funds and Savings

    • Appropriated Funds: Public funds are set aside by law (GAA) for specific government programs and projects. Public funds are used only for public purposes authorized by law. (1987 Philippine Constitution, Article VI, Section 29(1); Presidential Decree No. 1445, Section 84)
    • Principles of Fund Use: Using funds for their intended purpose (Legality), being fiscally responsible (Fiscal Responsibility), and avoiding misapplication (Specificity).
    • Savings: Unspent funds from completed projects or cost-cutting.
    • Savings Reallocation: The President, Senate President, House Speaker, Chief Justice, and constitutional commission heads are allowed to realign savings to cover budget gaps. Savings are subject to legal limits and cannot fund new or unauthorized programs. (Administrative Code of 1987; 1987 Philippine Constitution, Article VI, Section 25(5); GAA)

    Advance Payments and Cash Advances

    • Advance Payments: Disbursement of funds before services or goods are complete. Generally disallowed; exceptions exist for mobilization fees in infrastructure projects (Presidential Decree No. 1445, Section 88, Republic Act No. 9184, Section 4).
    • Cash Advances: Funds given to officers or employees for specific expenditures. These advances must be accounted for promptly (Presidential Decree No. 1445, Section 89, COA Circular No. 97-002). Time limits for liquidation are specified (30 days for local, 60 days for foreign).

    Accountable Employees for Local Government Funds

    • Responsibility and Liability of LGU Employees: Accountable officers are personally liable for loss or misuse of public funds. (Presidential Decree No. 1445, Section 101). Responsibilities include collecting revenues, disbursing funds, safekeeping assets, reporting/liquidation, and adherence to financial laws.
    • Types of Liabilities: Civil (reimbursement), criminal (misappropriation), administrative (suspension, dismissal).
    • Oversight and Monitoring: COA audits, local chief executive oversight, and Sanggunian oversight committees monitor LGU finances.

    Pecuniary Interest and Government Receptions

    • Pecuniary Interests: Public officials cannot have a financial stake in transactions affecting their impartiality or integrity. (1987 Philippine Constitution, Article XI, Section 1, Republic Act No. 3019, Section 3(h), Republic Act No. 6713, Section 7).
    • Government Receptions: Prohibiting excessive receptions and entertainment expenses. (Presidential Decree No. 1445, Section 83, COA Circular No. 2012-003, Republic Act No. 6713, Section 4(a))

    Voucher Approval

    • Vouchers: Written authorization for payment supported by valid documents (invoices, receipts). Vouchers need preparation, review, approval by the head of the agency or authorized officials, and lastly certification by the government accountant before being paid. (Presidential Decree No. 1445, Section 4, Section 85, Republic Act No. 9184, COA Circular No. 2012-001;).
    • Liability: Officials approving unlawful vouchers face civil, criminal, and administrative penalties.
    • Common Issues: Incomplete documentation, irregular transactions, delays, and fraud are common issues.

    Officials Authorized to Draw Checks

    • Authorized Officials: Specific officials are authorized to issue checks for government obligations. Examples include agency heads, cashiers, and local treasurers working within legal frameworks. (Presidential Decree No. 1445, Section 86, Local Government Code of 1991, Section 305, COA Circulars).

    General Liability for Unlawful Expenditures

    • Liability for Improper Spending: Officials responsible for unlawful expenditure face administrative, civil, or criminal penalties. (Presidential Decree No. 1445, Section 103, Section 106, Revised Penal Code, Anti-Graft and Corrupt Practices Act (Republic Act No. 3019), COA Circular No. 2012-001).

    Posting of Income and Expenditure Summaries

    • Transparency Measure of LGU and National Government Agencies: LGUs and Agencies post quarterly summaries of income and expenses in public places. This enhances accountability and facilitates citizen participation. (Local Government Code of 1991, Section 352, Presidential Decree No. 1445, COA Circulars).

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    Description

    Test your knowledge on government spending regulations and the definitions of illegal expenditures. This quiz covers the legal frameworks surrounding public funds and the importance of justified spending according to the 1987 Constitution. Challenge yourself to learn more about necessary and unnecessary government expenditures.

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