Department of Budget and management
Is responsible for the formulation
and implementation of the national
budget with the goal of attaining the
nation’s socio-economic objectives.
Bureau of Treasury is authorized to:
a. Receive and keep national funds
and manage and control the
disbursements thereof
b. Maintain accounts of financial
transactions
of
all
national
government offices, agencies and
instrumentalities.
Entity refers to a government agency,
department or operating/field unit.
Financial reporting is the process of
preparation, presentation and submission of
general purpose financial statements and
other reports. Objective is to provide
information about the entity that is useful to
users for accountability and decision
making.
GAM for NGAs
Was promulgated primarily to
harmonize the government accounting
standards with IAS, Particularly the
International Public Sector Accounting
Standards (IPSAS) which are based on the
IFRS.
COVERAGE OF GAM FOR NGAs
a. Preparing general purpose financial
statements in accordance with
PPSAS and other financial reports
required by laws, rules and
regulations.
b. Reporting of budget, revenue and
expenditure in accordance with laws,
rules and regulations
OBJECTIVE OF GAM FOR NGAs
Is to update the following:
a. Standards, policies, guideline and
procedures
in
accounting
for
government funds and property
b. Coding structure and accounts
c. Accounting
books,
registries,
records,
forms,
and
financial
statements.
BASIC ACCOUNTING AND BUDGET
REPORTING PRINCIPLES
Financial records and reports shall comply
with the following:
1. PPSAS and relevant laws, rules and
regulations;
2. Accrual Basis of accounting
Transactions are recognized
when they are occurred.
3. Budget basis
4. Revised
Chart
of
Accounts
prescribed by COA
5. Double entry bookkeeping
6. Financial statements based on
accounting and budgetary records
7. Fund cluster accounting
QUALITATIVE CHARACTERISTICS
a. Understandability
Reasonably be expected to
comprehend its meaning
b. Relevance
Information is relevant if it
can assist users in evaluating past,
present, or future events in
confirming
or
correcting
past
evaluations.
c. Materiality
Information is material if its
omission or misstatement could
influence the decisions of its users.
d. Timeliness
Information
loses
its
relevance when there is undue delay
in its reporting.
e. Reliability
f. Faithful representation
g. Substance over form
h. Neutrality
i. Prudence
j. Comparability
CHAPTER 2
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National Budget
Government estimate of the sources
and uses of government funds within a
fiscal year
Special budget
Provides for items not
adequately covered in the general
appropriations act
-
Line Item budget
Focuses
on
specific
expenditures
such
as
salaries and wages, travel
expenses, freight, supplies,
materials and equipment.
Performance Budget
Plan of activities to be
undertaken, including their
related costs, with the
emphasis on meeting targets
and desired results.
Budget Preparation
The PH uses a bottom-up budgeting
system where several parties participate in
the budget preparation starting from the
lowest to the highest levels of the
government.
-
-
1. Budget Call
The
budget
preparation
starts when the DBM issues
a Budget Call to all
government agencies.
Relevant Terms:
- Balanced Budget
Estimated revenues exceed
estimated expenditures.
-
Annual Budget
Covers a period of one year
and forms the basis for the
annual appropriation
Obligations Budget
Focuses on expenditures
incurred in the current year
which are to be paid in the
same year or the following
year.
2. Budget Hearings
Budget
hearings
are
conducted after the agencies
submit
their
budget
proposals defending their
budget
proposals
and
consolidate the deliberated
proposals into the National
Expenditure Program and
Budget of Expenditures and
Sources of Financing. The
DBM then submits the
proposed budget to the
President.