What is the accounting system under the NGAs?
Presentation on theme: "NEW GOVERNMENT ACCOUNTING SYSTEM (NGAS)"— Presentation transcript: 1 NEW GOVERNMENT ACCOUNTING SYSTEM (NGAS) Show
2 REPEALING CLAUSE The Manual on the New Government Accounting System replaces the Government Accounting and Auditing Manual (GAAM), Volume II, prescribed under COA Circular No , dated December 19, 1991. 3 LEGAL BASIS On October 30, 2001, based on the authority granted under Sec. 2 (2), Art. IX-D
of the 1987 Constitution, COA Circular No prescribed the use by local government units of the New Government Accounting System (NGAS) effective January 1, 2002 which provide that:
4 “The
Commission on Audit shall have exclusive authority, subject to the limitations in this Article, to define the scope of its audit examination, establish the techniques and methods required therefor, and promulgate accounting and auditing rules and regulation, including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties”.
5 OVERVIEW OF THE ACCOUNTING SYSTEM
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These offices/ departments will provide/ produce the source documents and other accounting forms leading to the perfection of the transaction whether it be budgetary, collections or disbursements. These source documents and accounting forms shall be the basis for the recording and the preparation of the Financial Statements.
7 GENERAL ACCOUNTING PLAN LOCAL GOVERNMENT UNITS 8 Budgetary Accounts Appropriations – refers to an
authorization made by ordinance, directing the payment of goods and services from local government funds under specified conditions or for specific purposes. The local sanggunian approves the annual budget thru the issuance of appropriation ordinance.
9 Allotments – is the authorization issued by the Local Chief Executive (LCE) to a department /office of the LGU, which allows it to incur obligations, for specified amounts, within the appropriation ordinance. Allotments are released quarterly based on the Work and Financial Plan and Request for Release of Allotment.
10 Obligations – refer to the
amounts committed to be paid by the LGU for any lawful act made by an accountable officer for and in behalf of the local government unit concerned. For each obligation, the requesting department /office shall prepare the Allotment and Obligation Slip (ALOBS) signed by the department or office head as requesting official and forward this together with supporting documents , to the Budget Officer. Per COA Circular No dated January 31, 2006 ALOBS is now called OBR – Obligation Request.
11 BASIC FEATURES AND POLICIES OF NGAS
12 Special Accounts in the General Fund Special Accounts, complete with subsidiary ledgers shall also be maintained for
the following : 1. Public Utilities and other economic enterprises: 2. Loans , interests, bond issued, and other contributions for specific purposes; 3. Development Projects funded from the Share in the Internal Revenue Collections; 4. Such other special accounts which may be created by law or ordinance.
13 Chart of Accounts and Account Codes – A three- digit account numbering system is adopted.
14 Financial Statements – the following statements is prepared monthly, quarterly and annually. 15 Trial Balance – The two money- column trial balance is used.
16 Appropriations, Allotments and Obligations -
Journal Entry shall no longer be prepared to record the appropriations, receipt of allotments and incurrence of obligations. In lieu of this, separate registries shall be maintained by the Accounting Unit to control the appropriations, allotments and obligations for each classes of expenditures, namely:
17 1. Registry of Appropriations, Allotments, and Obligations – Capital Outlay ( RAAOCO) 18 2. Registry of Appropriations, Allotments, and Obligations – Maintenance and Other Operating Expenses (RAAOMO) 19 3. Registry of
Appropriations, Allotments, and Obligations – Personal Services (RAAOPS)
20 COMPUTERIZATION OF NGAS (e-NGAS)
21 Now that the importance of technology has been recognized as a tool for industrial and economic development, the Commission on Audit (COA) developed e-NGAS – the computerization of NGAS which encompasses the various
accounting processes from recording, to classifying, summarizing and communicating all the financial results. As such, the e-NGAs provides an accurate, on time and standardized financial reports. The Electronic New Government Accounting System complies with the basic policies and procedures of the New Government Accounting System (NGAS). 22
Basic Features Automated recording of accounting entries to the general journal, posting to the subsidiary ledger and the general ledger through JEV PREPARATION where accounting entries are created for all types of government transactions and which are generally grouped into cash receipt, cash disbursement and non cash transactions.
23 There is an automatic checking of balances between debits and credits 24 Adequate security control mechanisms for data integrity and accuracy.
25 Up-to-date generation of government standard reports necessary for management and auditing purposes
26 User-friendly screen 27
Simplified entry of financial transactions and activities, using transaction templates 28 Use of responsibility accounting for a more detailed financial reporting and
analysis 29 It also provides an on-line inquiry of the following:
30 Expense per Responsibility Center
31 Repair History of PPE. Schedule of payable/ receivable accounts inventory schedule. PPE
schedule Schedule of Balance Sheet Accounts Registry of Public Infrastructure Recorded supporting documents 32 It also has a facility to generate the following reports and
records: 33 Statement of Income and Expenses
34 Balance Sheet Statement of Government Equity Statement of Cash Flows 35 36 WWW . A C O U NT I N G D V M
37 BARANGAY ACCOUNTS 38 PREPARATION THE BUDGET CYCLE EXECUTION REVIEW
ACCOUNTABILITY 39 40 SOURCE Manual on the New Government Accounting System (For Local Government Units) (Volume I, II and III). e-NGAS Functional Training Manual. What is the basis of accounting under the NGAs?The financial reporting system of the Philippine government consists of accounting system on accrual basis and budget reporting system on budget basis under the statutory responsibility of the NGAs, Bureau of the Treasury (BTr), Department of Budget and Management (DBM), and the COA.
Which type of accounting system does government use?Accrual basis accounting system which is the fundamental of modern government accounting system records all kinds of financial transactions regarding all the assets and liabilities, including tangible assets, regardless of collection and payment.
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