Module 8
Government Accounting – Part 2
Intended learning outcomes:
Define and describe New Government Accounting System In The Philippines (NGAS)
New Government Accounting System In The Philippines (NGAS)
Accounting is an effective tool of management in evaluating the performance of the different
agencies of government. The performance of the public managers would depend at most, on
financial reports generated by the use of accounting systems.
A new accounting system needs to be developed that would help the different agencies to hit
on financial targets, and at the same time be understood by all users of financial reports.
With this new development, the Commission on Audit (COA), under the new 1987
Constitution, promulgated the New Government Accounting System in the Philippines (NGAs)
for use by all government agencies.
The shift to NGAs was made in response to the following need:
1. Adoption of an accounting system that is in conformity with the International Accounting
Standards.
2. Computerization of the accounting systems to generate reports that will be easy to understand
by the general public.
3. Preparation of regular and routinary financial reports.
4. The use of the generated financial reports as tools of management in decision making.
Government Accounting – Defined
Under Section 109, of the Presidential Decree (PD) no. 1445, defines Government
Accounting as one that encompasses the process of analyzing, classifying, summarizing and
communicating all transactions that are involved in the receipt and disbursement of all
government funds and properties, and interpreting the results thereof. The objectives were set to
cover several areas in government operations.
Objectives of Government Accounting
1. To produce relevant financial information about past and present transactions of government.
2. To serve as basis for decision making for future operations
3. To serve as the control mechanism for the receipt, disposition and utilization of government
funds and properties
4. To come up with financial reports pertaining to the results of operations of various
government agencies that are for dissemination to the public.
Summation
The need for timely preparation of financial reports in government is necessary to evaluate
the performance of the different agencies of government.
Public officers are managers of funds, that are entrusted to them by the national government.
The financial reports would clearly show if the agencies are achieving what is mandated of them.
These reports would also show the extent in the use of agency assets and resources, as well as the
need for additional infusion of funds if required.
The accounting data would show how the funds of government were used. This would also
reveal the inflow and outflow of funds and the need for stiffer fund management and control, if
necessary.
On Accounting Responsibility
This fiscal responsibility emanates from the Constitution and its governing laws, rules and
promulgation. The mandate as prescribed under the said Constitution of the Philippines calls for
the keeping of the general accounts, as well as the promulgation and submission of financial
reports that would cover the operations of government.
