Philippine Government Expenditures Quiz

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Questions and Answers

What type of expenditures are considered illegal if made outside of the approved budget?

Extravagant expenditures

Necessary expenditures

Unauthorized expenditures (correct)

Contingent expenditures

Which document annually specifies appropriations for government programs in the Philippines?

Republic Act No. 6713

Anti-Graft Law

Administrative Code

General Appropriations Act (correct)

What type of expenditure deviates from established laws or procedures?

Extravagant expenditures

Contingent expenditures

Irregular expenditures (correct)

Necessary expenditures

Which of the following is NOT classified as an IUEEU expenditure?

Conscientious expenditures Signup and view all the answers

What action can result from misusing public funds in the Philippines?

Criminal liability Signup and view all the answers

According to the Administrative Code, which type of expenditures is prohibited?

Irregular and excessive expenditures Signup and view all the answers

Who is mandated to ensure the effective use of public resources according to RA No. 6713?

Public officials and employees Signup and view all the answers

What consequence does the Anti-Graft and Corrupt Practices Act impose for misusing public funds?

Penalization for undue injury to the government Signup and view all the answers

What is the primary purpose of posting the summary of income and expenditures by local government units (LGUs)?

To inform the public about financial operations Signup and view all the answers

Which law requires LGUs to post their financial summaries at least once every quarter?

Local Government Code of 1991 Signup and view all the answers

Where are local government units required to post financial summaries?

Conspicuous places like municipal halls Signup and view all the answers

Which of the following is NOT a benefit of posting financial summaries?

Enhanced government revenue Signup and view all the answers

What kind of information should be included in the financial summaries posted by LGUs?

Quarterly income and expenditures Signup and view all the answers

How frequently should LGUs post their financial summaries?

Once every quarter Signup and view all the answers

Which initiative uses publicly posted financial summaries to engage citizens in governance?

Citizen Participatory Audit (CPA) Signup and view all the answers

What role does the Department of the Interior and Local Government (DILG) play concerning financial summaries of LGUs?

They prescribe the frequency of postings. Signup and view all the answers

What is required to support all government expenditures?

Contracts and receipts Signup and view all the answers

Which of the following statements is TRUE regarding overpayments?

Officials are accountable for excess payments. Signup and view all the answers

What must government agencies verify before releasing payments?

Delivery of goods or services Signup and view all the answers

What is prohibited for public officials regarding transactions involving personal interests?

Engaging in related transactions Signup and view all the answers

What must procurement activities adhere to?

Government Procurement Reform Act provisions Signup and view all the answers

What do appropriated funds refer to?

Public funds set aside by law Signup and view all the answers

What should agencies use appropriated funds for?

Purposes specified by law Signup and view all the answers

What constitutes savings in government funds?

Unspent portions after completing projects Signup and view all the answers

Which of the following is explicitly prohibited regarding savings?

Funding unauthorized new projects Signup and view all the answers

What is a potential consequence for misusing appropriated funds?

Disciplinary action Signup and view all the answers

What is the role of the Commission on Audit (COA) regarding government funds?

Ensure public funds are properly used Signup and view all the answers

What kind of payments do strict rules govern in government transactions?

Advance payments and cash advances Signup and view all the answers

What is a consequence of failing to validate claims in government transactions?

Risk of overpayment Signup and view all the answers

Whose authority is required to realign savings within government funds?

Designated high-ranking officials only Signup and view all the answers

What is the primary purpose of advance payments in government transactions?

To ensure timely payments for completed services Signup and view all the answers

Under which circumstance can advance payments be permitted according to RA No. 9184?

For mobilization fees in infrastructure projects Signup and view all the answers

What is the requirement for cash advances according to COA Circular No. 97-002?

They must be liquidated promptly for authorized purposes Signup and view all the answers

What is required before disbursing any government funds?

Proper certification and authorization by law Signup and view all the answers

Who is accountable for liquidating cash advances for local travel according to COA guidelines?

Permanent, accountable officers only Signup and view all the answers

Who is responsible for reviewing the completeness and legality of attached documents for disbursement vouchers?

The internal auditor or budget officer Signup and view all the answers

What can result from unliquidated cash advances as per COA Circular No. 2012-004?

Sanctions for delays in liquidation Signup and view all the answers

Which of these is a prohibited use of cash advances?

Paying for private or personal expenses Signup and view all the answers

Which act mandates the use of vouchers in all government disbursements?

Presidential Decree No. 1445 Signup and view all the answers

What role does the Commission on Audit (COA) play regarding advance payments?

They conduct post-audit reviews to ensure compliance Signup and view all the answers

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

Civil, criminal, and administrative liabilities Signup and view all the answers

What is a common issue encountered in voucher approval processes?

Delays in approval Signup and view all the answers

According to Article XI of the 1987 Philippine Constitution, what is a fundamental principle for public office holders?

Public office is a public trust Signup and view all the answers

Who certifies the availability of funds prior to payment of vouchers?

The government accountant Signup and view all the answers

What is the responsibility of local treasurers as accountable employees?

Collect local taxes, fees, and other revenues Signup and view all the answers

Which of the following does not need to be included as supporting documents for a voucher related to procurement?

Personal testimonials Signup and view all the answers

What liability may accountable officers face for negligence in managing public funds?

Civil liability requiring reimbursement for losses Signup and view all the answers

In case of fraudulent practices, which of the following could be a penalty for officials?

Imprisonment for malversation Signup and view all the answers

What are accountable officers required to do with public funds they manage?

Safeguard collections and property Signup and view all the answers

What is the primary focus of COA Circular No. 2012-001?

Policies on irregular and excessive expenditures Signup and view all the answers

What must be done if a voucher is found to have been processed without complete supporting documents?

It should be flagged for irregularity Signup and view all the answers

Which act governs the duties and responsibilities of accountable officers?

Republic Act No. 7160 (Local Government Code) Signup and view all the answers

What is required before a check can be released to a payee?

Countersigning by an authorized official Signup and view all the answers

What may lead to criminal liability for accountable employees?

Misappropriation of public funds or failure to liquidate accounts Signup and view all the answers

Who typically approves disbursement vouchers in local government units (LGUs)?

The Local Chief Executive (Mayor or Governor) Signup and view all the answers

What type of liability can a public official face for unlawful expenditures?

Civil, criminal, or administrative Signup and view all the answers

Under the Revised Penal Code, what is malversation?

Improper handling of public funds Signup and view all the answers

What best practice can help minimize errors and delays in voucher preparation and approval?

Regular training on voucher requirements Signup and view all the answers

What does dual signatures on checks aim to prevent?

Unauthorized disbursements Signup and view all the answers

Which document must accompany procurement vouchers as stipulated by law?

Inspection reports Signup and view all the answers

Which official is primarily responsible for physically issuing checks or facilitating electronic payments?

Cashier or Disbursing Officer Signup and view all the answers

Which of the following is NOT a guideline established by COA Circulars?

Submission of incomplete documents Signup and view all the answers

Who is responsible for maintaining oversight to prevent unlawful expenditures?

Supervisory officials with due diligence Signup and view all the answers

What can be a consequence for officials approving fraudulent vouchers?

Criminal liability Signup and view all the answers

Which article in the Revised Penal Code penalizes illegal use of public funds?

Article 220 Signup and view all the answers

What is one of the consequences for administrative liability?

Suspension, dismissal, or demotion Signup and view all the answers

Which of the following best describes COA Circular No. 2020-006?

Policies on electronic systems in financial management Signup and view all the answers

What does the posting of the summary of income and expenditures promote?

Transparency and accountability Signup and view all the answers

Which issue was flagged by COA regarding government spending during the pandemic?

Excessive spending on overpriced PPEs Signup and view all the answers

What role does the City Treasurer play in local government payments?

Draws and signs checks for payments Signup and view all the answers

What is required for all disbursements according to the current accountability measures?

Complete supporting documents Signup and view all the answers

Who conducts regular audits of Local Government Unit accounts?

Commission on Audit Signup and view all the answers

What is the primary role of Local Chief Executives in a local government unit?

Oversee financial operations Signup and view all the answers

What type of misconduct did an LGU treasurer face administrative charges for in 2022?

Failing to liquidate cash advances Signup and view all the answers

Which of the following is prohibited under the principle of pecuniary interest?

Holding shares in a bidding company Signup and view all the answers

What is one example of a prohibited activity related to reception and entertainment?

Using public funds for unauthorized celebrations Signup and view all the answers

What can officials face if they misuse public funds?

Penalty of imprisonment Signup and view all the answers

What best describes the purpose of a voucher in government accounting?

A written document authorizing payment Signup and view all the answers

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

Republic Act No. 3019 Signup and view all the answers

In which scenario would a public official likely be found in violation of procurement ethics?

Awarding a contract to a relative's company Signup and view all the answers

Which organization is responsible for investigating public officials for violations of anti-graft laws?

Office of the Ombudsman Signup and view all the answers

What was a finding of the 2022 audit regarding local government expenditures?

Extravagant spending on receptions Signup and view all the answers

What should public officials do to prevent conflicts of interest?

Disclose personal financial interests Signup and view all the answers

What type of accountability mechanism is the Commission on Audit?

Independent constitutional body Signup and view all the answers

What action can lead to administrative charges against an official?

Using public funds for personal celebrations Signup and view all the answers

Study Notes

Government Expenditures and Disbursements in the Philippines

Philippine government accounting follows established rules to ensure appropriate, efficient, and legal use of public funds.

Prohibitions Against Expenditures

Spending must align with Congressional or local legislative budget approvals. Any unauthorized spending is illegal (Article VI, Section 29(1), 1987 Philippine Constitution).
The General Appropriations Act (GAA) annually allocates funds for government programs, promoting accountability and transparency.
Irregular, unnecessary, extravagant, excessive, or unconscionable expenditures (IUEEU) are prohibited (Executive Order No. 292, Book VI, Chapter 5, Section 81). This includes spending deviating from procedures, exceeding reasonable limits, or involving unreasonable costs.

Misuse of Public Funds

Public funds must be used for their intended purposes. Misuse can result in criminal liability (Republic Act No. 3019, Section 3(e)).
Public officials are required to use resources efficiently and honestly (Republic Act No. 6713).

Proper Documentation

All government expenditures need supporting documents like receipts, purchase orders, vouchers, and contracts (COA Circular No. 96-004, Presidential Decree No. 1445, Section 4(6)).

Overpayment and Incorrect Payments

Payments exceeding authorized amounts are forbidden and must be recovered (COA Circular No. 2012-001, Presidential Decree No. 1445, Section 43(2)).

Payment for Non-Delivered Services/Goods

Payments are only released upon service or product delivery/completion (COA Circular No. 97-002, Presidential Decree No. 1445, Section 3).

Conflicts of Interest

Public officials cannot have personal interests in government transactions (Republic Act No. 6713, Section 7, Republic Act No. 3019, Section 3(h)).

Procurement Law Violations

All procurements must follow Republic Act No. 9184 (Government Procurement Reform Act) to ensure transparency, fairness, and value for money. This includes prohibitions on splitting contracts, non-competitive bidding, and sole sourcing without justification.

Use of Appropriated Funds and Savings

Appropriated Funds: Public funds allocated by law for specific programs, activities, and projects (1987 Philippine Constitution, Article VI, Section 29(1), Presidential Decree No. 1445, Section 84). Principles include legality, fiscal responsibility, and specificity.
Savings: Unspent portions of appropriated funds after project completion or cost-cutting.
Rules Governing Savings: The President, Senate President, and other officials can realign savings to address budget deficits (1987 Philippine Constitution, Article VI, Section 25(5), Administrative Code of 1987, General Appropriations Act).
Permitted Uses: Savings can augment deficient budget items, cover emergencies, or address unforeseen circumstances (within legal limits). Savings cannot fund unauthorised new projects.
Prohibitions and Penalties: Illegal realignment of funds or using savings for unauthorised projects is prohibited and punishable (Republic Act No. 3019, Administrative Code of 1987).

Prohibition Against Advance Payments and Cash Advances

Advance payments (disbursement before service completion) are generally prohibited in government transactions to prevent misuse (Presidential Decree No. 1445, Section 88, Republic Act No. 9184).
Exceptions: Mobilization fees (up to 15% of contract) for infrastructure; subscriptions/licensing deals.
Cash advances (funds to cover expenses) require strict accountability and prompt liquidation (Presidential Decree No. 1445, Section 89, COA Circulars, different timeframes).

Accountable Employees for Local Government Funds

Accountable employees in LGUs manage and oversee public funds (1987 Philippine Constitution, Article XI, Section 1, Presidential Decree No. 1445).
Responsibilities cover collecting revenues, disbursing funds, and safeguarding public funds.
Liabilities for negligence, improper use, or misuse can involve civil, criminal, and administrative penalties (Republic Act No. 7160).

Prohibition Against Pecuniary Interest and Entertainment

Pecuniary Interest: Holding financial interest in government transactions is prohibited (1987 Philippine Constitution, Republic Act No. 3019, Republic Act No. 6713).
Reception and Entertainment: Excessive or unauthorized use of public funds for receptions or entertainment is forbidden (Presidential Decree No. 1445, COA Circular No. 2012-003, Republic Act No. 6713).

Prohibition Against Approval of Vouchers

Vouchers are crucial documents for authorized fund disbursement. They must be properly documented and reviewed (Presidential Decree No. 1445, COA Circular No. 2012-001, Republic Act No. 9184).
Approval processes include preparation, review, approval by the head of the agency, certification, and payment. Approving officials are responsible.

Officials Authorized to Draw Checks

Specific officials are authorized to draw checks for payments (Presidential Decree No. 1445, different examples of specific officials in local and national government).
Checks require dual signatures, documentation and audits for accountability and transparency.

General Liability for Unlawful Expenditures

Officials involved in unlawful expenditures face administrative, civil, and criminal liabilities (Presidential Decree No. 1445). This includes various laws (Revised Penal Code, Anti-Graft Act).
Accountability extends to officials overseeing or failing to prevent unlawful practices.

Posting Summary of Income and Expenditures

Posting of income & expenditure summaries is mandatory to promote transparency and accountability in the Philippines for LGUs etc. (Local Government Code, Presidential Decree No. 1445).
This promotes citizen oversight and participation. It includes a summary of income and expenditure details posted in various locations.

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Description

Test your knowledge of the regulations surrounding government expenditures and disbursements in the Philippines. This quiz covers key concepts, legal frameworks, and prohibitions against unauthorized spending. Ensure you understand the implications of misusing public funds and the accountability measures in place.