Document (15).docx - Introduction "Government accounting...

Introduction
"Government accounting encompasses the process0s of analyzing, recording, classifying,
Summarizing and, communicating all transactions Involving the receipt and disposition of government
funds and property, and Interpreting the results thereof." (State Audit Code of the Philippines, P.D. No.
1445, Sec. 109)
The objectives of government accounting are
a) To produce information concerning past operations and present conditions
b) To provide a basis for guidance for future operations
c) To provide for control of the acts of public bodies and officers in the receipt, disposition and
utilization of funds and property, and
d) To report on the financial position and the results of operations of government agencies for
the information of all persons concerned. (P.D. No. 1445, Sec 110)
Like the accounting for business entities, government accounting is also a process of producing
information that is useful in making economic decisions. Government accounting, however,
places greater emphasis on the following:
a. Sources and utilization of government funds; and
b. Responsibility, accountability and liability of entities entrusted with government funds and
properties.
The sources of government funds include receipts from taxes and other fees,
borrowings, and grants from other governments and international bodies.
The utilization of government funds includes expenditures on programs, projects,
unanticipated losses from calamities and the like.
Responsibility, Accountability and Liability over Government Funds and Property
Responsibility over Government Funds and Property
a. Government resources shall be utilized efficiently and effectively in accordance with the

law. The head of a government agency is directly responsible in implementing this policy
and is primarily responsible for government resources entrusted to his agency. Those
who are entrusted with the possession of government resources are directly responsible
to the head of the agency.
b. All those who are exercising authority over a government agency shall share fiscal
responsibility. (Stutt Audit Code of the Philippines, P.D. No. 1445)
Accountability over Government Funds and Property
a. A government officer entrusted with the possession of government resources is
responsible for the safekeeping therefore in accordance with the law. Every accountable
officer shall be properly bonded. P.D. No. 1445 and EO No. 292)
b. The transfer of government funds from one officer to another shall, except as allowed by
law, be made only after the authorization of the COA. The transfer shall be properly
documented in an invoice and receipt. (P.D. No. 1445)
Department of Budget and Management (DBM)
The Department of Budget and Management (DBM) is responsible for the formulation and
implementation of the national budget with the goal of attaining the nation's socio-economic
objectives.