TEST 1. TRUE OR FALSE
TRUE
As a general rule, code 01 is assigned to a Lower-Level operating
unit classified as Central Office. As an exception, the DOTC-Office of
the Secretary (OSEC), which has three central offices, shall be
assigned the following codes: DOTC-OSEC Central Office – 01, Land
Transportation Office - Central Office – 19 and Land Transportation
Franchising and Regulatory Board - Central Office – 20.
Government Budget is the financial plan of a government for a given
period, usually for a fiscal year, which shows what its resources are,
and how they will be generated and used over the fiscal period.
Revolving Funds are receipts derived from business-type activities of
departments/agencies as authorized by law, and which are
deposited in an authorized government depository bank.
The head of any agency of the government is immediately and
primarily responsible for all government funds and property
pertaining to his agency. Persons entrusted with the possession or
custody of the funds or property under the agency head shall be
immediately responsible to him, without prejudice to the liability of
either party to the government.
CDC is an authority issued by DBM to Department of Foreign Affairs
(DFA) and Department of Labor and Employment (DOLE) to utilize
their income collected and retained by their Foreign Service posts to
cover its operating requirements but not to exceed the released
allotment for the purpose.
The UACS Object Code (10 digits), which consists of the RCA Code
(eight digits) and the UACS Sub-Object Code (two digits), is used in
the recognition of transactions in the books of accounts and in the
generation of financial reports which requires details by sub-object
codes.
Supplemental Budget is a budget which supplements or adjust a
previous budget which is deemed inadequate for the purpose it is
intended. It is the basis for a supplemental appropriation.
The assignment of fund codes is based on representations by
Agencies concerned that the creation of funds, i.e., Special Accounts
in the General Fund, Trust Receipts, Revolving Funds, among others,
as well as the use/s thereof are authorized by law.
Physical & Financing Plan (PFP) This document serves as overall plan
of the National Government Agencies encompassing the Physical
and Financial aspects.
Expenditures of government funds or uses of government property
in violation of law or regulations shall be a personal liability of the
official or employee found to be directly responsible therefor.
FALSE
Budget Accountability is the last phase of budgeting process consists
of periodic reporting by the government agencies of performances
under their approved budget top management review of
government activities and the fiscal policy implementations thereof;
and the actions of Bureau of Treasury in assuring the fidelity of
officials and employees by carrying out the intent of the legislative
regarding the handling of receipts and expenditures.
The objectives of special purpose financial statements are to
provide information about the financial position, financial
performance, and cash flows of an entity that is useful to a wide
range of users in making and evaluating decisions about the
allocation of resources
The DBM 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, pursuant to Section
2, par. (1), Article IX-D of the 1987 Philippine Constitution.
The responsibility for disaggregation and sub-coding of the
following accounts Agency Responsible for Disaggregation:
Personnel Services assigned to DBM; Maintenance and Other
Operating Expenses assigned DBM/COA; Financial Expenses
assigned BTr; and Capital Outlays assigned DBM.
Government Accounting encompasses the processes of analyzing,
recording, classifying, summarizing and communicating all
transactions involving the receipt and disposition of government
funds and property, and interpreting the results thereof. (Sec. 110,
Presidential Decree (P.D.) No. 1445)
General l Allotment Release Order (GARO) – covers budgetary items
under For Later Release (FLR) (negative list) in the entity submitted
Budget Execution Documents (BEDs), subject to compliance of
required documents/clearances.
Performance Budget is a budget the basis of which are the objects
of expenditures such as: salaries and wages, traveling expenses,
freight, supplies and materials, equipment, etc.
Each entity of the National Government (NG) maintains a complete
set of accounting books by fund cluster which is reconciled with the
records of cash transactions maintained by the DBM.
Agency is organizational entities charged with carrying out specific
substantive functions or with directly implementing
programs/projects of a department, such as line bureaus and field
units.
The Government Accounting Manual aims to update the following:
a. standards and procedures in accounting for government funds
and property; b. coding structure and accounts; and c. accounting
books, registries, records, forms, reports and financial statements.
d., policies and guidelines eliminate all the errors in accounting and
reporting.
Balance Deficit is a budget where the proposed expenditures are
equal to or less than the estimated revenue.
Special Account in the General Fund (SAGF) are lump-sum funds
included in the GAA which are not within the approved
appropriations of Departments/Agencies/Lower Level Operating
Units, and which are available for allocation to any
Department/Agency/Lower Level Operating Unit or Local
Government Unit for a specific purpose, as may be duly approved in
accordance with special provisions on the use of these funds.
Modified Accrual basis means a basis of accounting under which
transactions and other events are recognized when they occur (and
not only when cash or its equivalent is received or paid).
Legislative Authorization is the second phase of the budget process
relative to the enactment of the General Appropriation Bills based
on the budget of receipts and expenditures submitted by the
President within 120 days from the opening of its regular session.
The Commission on Audit (COA) Department of Budget and
Management (DBM) Department of Finance (DOF) on Joint Circular
No. 2013-1 dated August 6, 2014, prescribes the use of UACS, as
amended/updated.
RANTA This registry shall be maintained by the Budget Division to
determine the amount of allotments not covered by NTA and
monitor available NTA.
Starting CY 2013 until further amended, however, all appropriations
for Personnel Services (PS), MOOE and CO shall be valid only for two
(2) fiscal year.
TEST 2. MULTIPLE CHOICES QUESTIONS
These are authorizations made annually or for some other period
prescribed by law, by virtue of standing legislation, which do not
require periodic action by the Congress. These are automatically
and annually included in the National Expenditure Program of the
National Government.
Automatic Appropriations
The major group account group code of Investments is:
02
These are decreases in economic benefits or service potential
during the reporting period in the form of outflows or consumption
of assets or incurrence of liabilities that result in decreases in net
assets/equity, other than those relating to distributions to owners.
Expenses
The fund cluster code of Special Account-Foreign Assisted/Foreign
Grants Fund is ___.
04
What are the books of accounts in the government?
books of COA, books of treasury and books of agency
This shall be maintained by the Budget Division/ Unit of NGA to
monitor the revenue and other receipts estimated/ budgeted,
collected and remitted/deposited.
Registry of Revenue and Other Receipts -- Summary
(RRORS)
What are the rules on the use of government funds?
all of these
-no allotment shall exceed appropriation, no liquidation shall
exceed obligation, no obligations shall exceed allotment.
Which is incorrect concerning government accounting?
Government accounting adopts either cash or accrual basis
of accounting.
It is a statement of estimated receipts and estimated expenses of
the government which serves as basis for a general appropriation
bill.
National government budget
It denotes the responsibility to others that one or more persons
have for their actions and behaviors.
Accountability
This is a sum of money or other government resources set aside for
the purpose of carrying out specific activities or attaining certain
objectives in accordance with specific regulations, restrictions, or
limitations, and constitute an independent fiscal and accounting
entity.
Fund
The Direct Labor as a RCA is classified as__.
None of these options
This an authorization made by law or other legislative enactment,
directing payment of goods and services out of government fund
under specific condition or for special purpose.
Appropriation
Reporting requirements that will be best served by the UACS
includes the following, except:
None of these options
The following are the basic features and policies of the new
government accounting systems, except:
The use of corollary and negative journal entries shall be
continued.
These are funds available for any purpose that Congress may choose
to apply, and is composed of all receipts or revenues that do not
otherwise accrue to other funds.
General Funds
Who may contract or guarantee foreign loans on behalf of the
Republic of the Philippines with the prior concurrence of the
Monetary Board and subject to such limitations as may be provided
by law?
President of the Republic of the Philippines
Provide the order of Budget Cycle: I. Budget Operation; II. Budget
Accountability; III. Budget Preparation; IV.
Budget Legislation
III, IV, I, II
The UACS Object Code structure consists of ten (10) mandatory
digits include (indicate the order): I. UACS Sub-Object Code; II. Sub-
Major Account Group; III. Major Account Group; IV. General Ledger
Contra Account; V. General Ledger Account; VI. Account Group
None of these options
It is an amount committed to be paid by the government arising
from an act of a duly authorized administrative officer and which
binds the government to the immediate and eventual payment of
money.
Obligation
Agency A, a government entity, wants to make disbursement.
Arrange the following events in the correct sequence before Agency
A can make a valid disbursement: I.
Allotment; II. Disbursement
authority; III. Appropriation; IV. Incurrence of obligation
III, I, IV, II
COA Circular No. 2013-002 dated January 30, 2013 prescribing the
adoption of the RCA for National Government Agencies (NGAs) was
effective on___.
January 1, 2014
Which is responsible for the design, preparation and approval of
accounting systems of government agencies?
Department of Budget and Management
The Manual presents the basic accounting policies and principles in
accordance with the Philippine Public Sector Accounting Standards
(PPSAS) adopted thru COA Resolution _____dated January 24, 2014,
and other pertinent laws, rules and regulations.
No. 2014-003
These are additional appropriations authorized by law to augment
the original appropriations which proved to be insufficient for their
intended purpose due to economic, political or social conditions
supported by a Certification of Availability of Funds (CAF) from the
BTr.
Supplemental Appropriations
This account is credited for the allocation of cost of watercrafts in
accordance with the prescribed policy on depreciation. This account
is debited upon derecognition of the asset and/or adjustments.
Accumulated Depreciation-Watercrafts
These are examples of Automatic Appropriations, except:
Pension under R.A. No. 2087, as amended by P.D. No. 1625
and R.A. No. 5159
What statement is incorrect?
COA Resolution No. 2014-003 dated January 24, 2014,
prescribing the adoption of 24 Philippine Public Sector
Accounting Standards (PPSAS);
Which government body prepares the annual financial statements
of the national government, local government agencies and
government-owned or controlled corporations?
Chief Accountant of each government agency
The Government Accounting Manual (GAM) is prescribed by COA
pursuant to ___.
1987 Constitution of the Republic of the Philippines
The COA, through the Government Accountancy Sector (GAS) is
responsible to, except:
None of these option
Which department prepares the national budget which serves as
the basis of the general appropriation law?
Legislative department
It is the implementation of the national budget by the different
departments and release of allotments.
budget execution
The Basic Government Accounting and Budget Reporting Principles.
Each entity shall recognize and present its financial transactions and
operations conformably to the following, except:
single entry bookkeeping
The key elements of the coding framework for UACS, except:
Financing Source codes
This further classifies the account within the major account group,
e.g. for cash and cash equivalents: Cash on Hand, Cash in Bank-Local
Currency, Cash in Bank-Foreign Currency.
Sub-Major Account Group
Which is not a fundamental principle of government fiscal
operations?
Fiscal responsibility shall, to a greater extent, be shared by
all those exercising authority over financial affairs,
transactions, and operations of the government agency.
This registry shall be used to record the allotments received,
obligations incurred and disbursements classified under PS.
Registry of Allotments, Obligations and DisbursementsPersonnel Services (RAOD-PS)
Fundamental Principles for Disbursement of Public Funds, Section 4
of P.D. No. 1445, the Government Auditing Code of the Philippines,
provides that all financial transactions and operations of any
government entity shall be governed by the following fundamental
principles, includes: I. No money shall be paid out of any public
treasury or depository except in pursuance of an appropriation law
or other specific statutory authority; II. Government funds or
property shall be spent or used solely for public purposes; III.
Trust funds shall be available and may be spent only for the
specific purpose for which the trust was created or the funds
received; IV. Fiscal responsibility shall, to the greatest extent, be
shared by all those exercising authority over the financial affairs,
transactions, and operations of the government agency; V. Claims
against government funds shall be supported with complete
documentation.
I, II, III, IV, V
This shows the overall accounting system of a government
agency/unit. It includes the source documents, the flow of
transactions and its accumulation in the books of accounts and
finally their conversion into financial information/data presented in
the financial reports.
GAP
Identify which statement/s is/ are incorrect: I. Funding Source codes
consist of 8 digits; II. Organization codes consist of 12 digits; III.
Location codes consist of 10 digits; IV. MFO/Program, Activity and
Project (PAP) codes consist of 9 digits; V. Object Codes for Assets,
Liabilities, Equity, Income and Expense consist of 8 digits
III, V
What is not included as responsibility for UACS?
None of these options
This is a part, segment, unit or function of a government agency,
headed by a manager, who is accountable for a specified set of
activities. Except for some, which derive most of their income from
collection of taxes and fees.
Responsibility Center
TEST 3. SHORT ESSAY
Explain the Budget Process or Budget Cycle of the National
Government of the Philippines.
The Budget Process/Cycle:
1. Budget Preparation
This covers estimation of government revenues, the
determination of budgetary priorities and activities within
the constraints imposed by available revenues and by
borrowing limits, and the translation of approved priorities
and activities into expenditure levels. Estimates are
prepared by the various government agencies, reviewed
and finalized by the President of the Philippines, and then
submitted to the Legislative Department as basis for the
preparation of the annual Appropriation Act.
The budget preparation begins with the issuance of
a “budget call” by the Department of Budget and
Management. To ensure that the National Budget is
enacted on time, the DBM, under the Aquino
Administration, has established a new tradition of beginning
the Budget Preparation phase earlier. Under the new
Budget Preparation Calendar, the Budget Call is issued in
December, unlike in the past where it was issued in April;
and the submission of the President’s budget a day after the
State of the Nation Address, in contrast to earlier practice
where it is submitted to Congress within 30 days from the
opening of every regular session.
2.
Legislative Authorization
It is the second phase of the budget process relative
to the enactment of the General Appropriation Bills based
on the budget of receipts and expenditures submitted by
the President of the Philippines. This phase starts upon the
receipt of the President’s Budget by the House Speaker and
ends with the President’s enactment of the General
Appropriation Act.
The House of Representatives, in plenary, assigns
the President’s Budget to the House Appropriations
Committee, which conduct hearing and scrutinize their
respective programs and projects. It then crafts the General
Appropriation Bill (GAB). In plenary session, the GAB is
sponsored, presented and defended by the Appropriations
Committee and Sub-Committee Chairmen.
Normally, after receiving the GAB from the House of
Representatives, the Senate conducts its own committee
hearings and plenary deliberations on the GAB. Once both
Houses of Congress have finished their deliberations, they
will each constitute a panel to the Bicameral Conference
Committee. This committee will then discuss and harmonize
the conflicting provisions of the House and Senate Versions
of the GAB.
The Harmonized or “Bicam” Version is then
submitted to both Houses, which will then vote to ratify the
final GAB for submission to the President. Once submitted
to the President for his approval, the GAB is considered
enrolled. The President and DBM then review the GAB and
prepare a Veto Message, where budget items subjected to
direct veto or conditional implementation are identified,
and where general observations are made. Under the
Constitution, the GAB is the only legislative measure where
the President can impose a line-veto (in all other cases, a
law is either approved or vetoed in full).
Appropriations are approved by the legislative body
in form of:
(1) a General Appropriation Law which covers most
of the expenditures of government;
(2) Continuing Appropriations for various public
works projects;
(3) Supplemental Appropriations laws that are
passed from time to time, to augment or correct an already
existing appropriation; and
(4) Certain automatic appropriations intended for
fixed and specific purposes.
3. Budget Execution and Operation
The third phase of the budget process covers the
various operational aspects of budgeting. This phase of
budget cycle begins with DBM’s issuance of guidelines on
the release and utilization of funds. Agencies are required to
submit their Budget Execution Documents (BEDs) at the
start of budget execution. These documents outline agency
plans and performance targets. The DBM set a limit for
allotments issued to an agency and on the aggregate by
preparing an Allotment Release Program (ARP). A Cash
Release Program (CRP) is also formulated alongside to set a
guide for disbursement levels for the year and for every
month and quarter.
In implementing programs, activities and projects,
agencies incur liabilities on behalf of the government.
Obligations are liabilities legally incurred, which the
government will pay for. To authorize an agency to pay the
obligations it incurs, DBM issues a disbursement authority.
Most of the time, it takes the form of a Notice of Cash
Allocation (NCA); and in special cases, the Non-Cash
Availment Authority (NCAA) and Cash Disbursement Ceiling
(CDC).
4. Budget Accountability
The last phase of budget process consists of the
following: (1) periodic reporting by the government
agencies of performances under their approved budget; (2)
top management review of government activities and the
fiscal policy implementations thereof; and (3) the actions of
Commission on Audit in assuring the fidelity of officials and
employees by carrying out the intent of the National
Assembly regarding the handling of receipts and
expenditures.
This phase happens alongside the Budget Execution
phase. Through Budget Accountability, the DBM monitors
the efficiency of fund utilization, assesses agency
performance and provides a vital 80 80 basis for reforms
and new policies. Agencies are held accountable not only
for how these use public funds ethically, but also on how
these attain performance targets and outcomes using
available resources. Submitted by agencies on a monthly
and quarterly basis, 1) Budget Accountability Reports (BARs)
are required reports that show how agencies used their
funds and identify their corresponding physical
accomplishments. 2) An annual Budget Performance
Assessment Review (BPAR) is conducted to determine each
agency’s accomplishments and performance by the yearend. The DBM regularly reports results to the President.
Auditing is not within the DBM’s jurisdiction, and is
instead lodged under the Commission on Audit (COA).
Nonetheless, auditing is critical in ensuring agency
accountability in the use of public funds. The DBM uses
COA’s audit reports in confirming agency performance,
determining budgetary levels for agencies and addressing
issues in fund usage.