COLLEGE OF BUSINESS AND ACCOUNTANCY Name of Student: CHARMAINE M. ALIGANGA Instruction: Please answer the following questions, just click the reply button and type your answer 1. Discuss the accounting responsibility of the following a. Commission on Audit b. Department of Budget and Management c. Bureau of Treasury d. Government Agencies A. Commission on Audit The Commission on Audit shall have the power, authority, and duty to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the Government, or any of its subdivisions, agencies, or instrumentalities, including government-owned or controlled corporations with original charters, and on a post-audit basis: (a) constitutional bodies, commissions and offices that have been granted fiscal autonomy under the Constitution; (b) autonomous state colleges and universities; (c) other government-owned or controlled corporations and their subsidiaries; and (d) such non-governmental entities receiving subsidy or equity, directly or indirectly, from or through the Government, which are required by law or the granting institution to submit to such audit as a condition of subsidy or equity. However, where the internal control system of the audited agencies is inadequate, the Commission may adopt such measures, including temporary or special pre-audit, as are necessary and appropriate to correct the deficiencies. It shall keep the general accounts of the Government and, for such period as may be provided by law, preserve the vouchers and other supporting papers pertaining thereto. B. Department of Budget and Management The Department of Budget and Management (DBM) is responsible for the formulation and implementation of the National Budget, and the efficient and sound utilization of government funds and revenues to achieve the country’s development goals. They are the ones who prepare the medium-term expenditure plan, indicating the programming, prioritization, and financing of capital investment and current operating expenditure requirements of mediumterm sectoral development plans. Develops and administers a national accounting system essential to fiscal management and control. It establishes the rules and procedures for the management of government organization resources i.e., physical, manpower and other resources, formulates standards of organizational program performance; and undertakes or provides services in work simplification or streamlining of systems and procedures to improve efficiency and effectiveness in government operations. Lastly, Monitors and assesses the physical as well as the financial operations of local government units and Government-Owned and/or Controlled Corporations. C. Bureau of Treasury The Bureau of Treasury assists in the formulation of policies on borrowing, investment and capital market development. Assist in the preparation by government agencies concerned of an annual program for revenue and expenditure targets, borrowing levels and cash balances of the National Government. They are responsible for maintaining books of accounts of cash transactions. They also manage the cash resources, collect advances made by NG and guarantee forward cover fees due NG, control and service its public debt, both foreign and domestic. They administer the Securities Stabilization Fund (SSF) by purchase and sale in the open market of government bills and bonds to increase the liquidity and stabilize the value of said securities in order to promote private investment in government securities and Act as principal custodian of financial assets of the NG, its agencies and instrumentalities. D. Government Agencies Individual government agencies employ accountants to prepare financial statements and handle payroll duties, among other things. Legislators and agencies can also request audits. An audit involves evaluating all of an agency’s financial information—bank statements, accounting records and so forth. The government accountants work for certain agencies such as the Internal Revenue Service (IRS) audit private businesses and individuals to ensure their compliance with federal income taxation law and other government regulations at the national, state and local levels. 2. Discuss the following: a. Allotment b. Obligation c. Notice of Cash allocation A. Allotment Allotment describes a systematic distribution of resources across different entities and over time. In finance, the term typically relates to the allocation of shares during a public share issuance. Two or more financial institutions usually underwrite a public offering. B. Obligation Obligation is an action of obligating oneself to a course of action. In accounting, it is a commitment to pay a third party based on an underlying contract, such as a purchase order, mortgage, or bond issuance. If the obligation is probable and the amount can be determined, then it is recorded in an entity's accounting records as a liability. C. Notice of Cash allocation It is cash or disbursement authority that is periodically issued is referred to as a Notice of Cash Allocation (NCA), which issuance is based upon an agency’s submission of its Monthly Cash Program and other required documents. The NCA specifies the maximum amount of cash that can be withdrawn from a government servicing bank for the period indicated. 4. Discuss the importance of GAM (Government Accounting Manual) in Government It is important to have Government Accounting Manual because it serves as a guideline of accountants, budget officers, cashier and other personnel related to the recording and reporting of financial information for the basic accounting policies and principles in accordance with Philippine Public Sector Accounting Standards (PPSAS). The Government Accounting Manual (GAM) is created in order to have harmonized flow of accounting standards with the international accounting standards. It contains the general provisions, basic standards and policies, the specific guidelines and procedures for each standard, and the illustrative entries for typical transactions of national government agencies. 5. Explain the processes and other considerations in developing a standard of Philippine Public Sector Accounting Standards (PPSAS).
