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GOVERNMENT ACCOUNTINGADVANCED FINANCIAL ACCOUNTING AND REPORTINGMS. ELLERY D. DE LEON
Definition of Terms
Appropriationis the authorization made by a legislative body to allocate funds forpurposes specified by the legislative or similar authority.Allotmentis an authorization issued by the DBM to NGAs to incur obligations forspecified amounts contained in a legislative appropriation in the form ofbudget release documents.It is also referred to as Obligational Authority.Notice of Cash Allocation (NCA)authority issued by the DBM to central, regional and provincial offices andoperating units to cover the cash requirements of the agencies;ObligationIt refers to the commitment by a government agency arising from an actof a duly authorized official which binds the government to the immediateor eventual payments of a sum of money.
Agencies tasked by the Constitutionwith Accounting Responsibility
Commission on Audit (COA)- shall have the exclusive authority to do auditand examination, establish audit techniques, implement accounting rulesand regulations, that includes disallowances on the use of governmentfunds and properties.DepartmentofBudgetandManagement(DBM)isthedepartmentresponsible for the planning and implementation of the National Budget forthesoundutilizationofgovernmentfundsinachievingthenationalgovernment’sagenda on reform and growth. The DBM is tasked to monitorall government allotments and appropriations through maintenance ofregistries for better control and monitoring.Bureau of Treasury (BTs)- the department is the keeper of national fundsand disbursements. It is the lead agency in monitoring transactionsaffecting the national government, agencies, and other instrumentalities. Itmaintains the registry on the releases by the DBM, as well as the banktransfers between agencies.Government Agencieswould include government instrumentalities likebureaus, Congress, Judiciary, constitutional bodies and self containedinstitutions, among others, which are required to have an accountingdivision, which are of equal level with that of other agencies that aretasked to do maintenance of accounts and submit financial statements ona regular basis.
Basic Features and Policies
1.Accrual Accounting.A modified accrual basis of accounting shall be used. Under this method, allexpenses shall be recognized when incurred and reported in the financialstatements in the period to which they relate.Income shall be on accrual basisexcept for transactions where accrual basis is impractical or when othermethods are required by law.2.One Fund Concept.This system adopts the one fund concept. Separate fund accounting shall bedone only when specifically required by law or by a donor agency or whenotherwise necessitated by circumstances subject to prior approval of theCommission.

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Term
Fall
Professor
EmilyBryan
Tags
Depreciation, Generally Accepted Accounting Principles, Government Equity

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