dir. marietta m. lorenzo government accountancy sector

Dir. Marietta M. Lorenzo

Government Accountancy Sector

OUTLINEOUTLINE

LEGAL BASIS

Mandate pursuant to the 1987 Philippine Constitution:

Section 2 (1), Article IX-D

The Commission on Audit shall keep the general accounts of the Government and preserve the vouchers and other supporting documents relative to such account.

I. KEEPING THE GENERAL ACCOUNTS (KGA) OF THE GOVERNMENT

CONTEMPORARY INTERPRETATION

Takes into account challenges in the accounting profession which requires due regard for international principles and standards of accounting;

Makes full use of advances in technology through computerized accounting and budget systems and shared data base to facilitate preparation of financial reports;

Mindful of the constitutional mandate and the spirit of the law which vest in COA the authority and responsibility to account for government appropriations and expenditures and to present a consolidated financial report;

KEEPING THE GENERAL ACCOUNTS (KGA) OF THE GOVERNMENT

CONTEMPORARY INTERPRETATION

KEEPING OF THE GENERAL ACCOUNTS FRAMEWORK

DBM

COA

NGAs

KGA

GA

A/A

BM

/SAR

Os/

ABM/SARO/NCA

FS/F

R/TB/S

AOB/

ROI

NGAS, e

NGAS, e

Budge

t

Mon

itorin

g

FS/FR/TB/SAOB

Review Results

SAAB

KEEPING OF THE GENERAL ACCOUNTS EXPANDED FRAMEWORK

NGAs

DOF-BTr COA

DBMAGDB

AGDB

GAA

BESF/NEP

AB

M/S

AR

O/

ABM/SAROs

Cash

Ceiling

NCA

NC

A

ACIC LDC

RF

R

LA

R

Bank Statement

BRS

CSAAB Review Results

FS/FR/TB/SAOB/R

OIF

S/F

R/T

B/S

AO

B

D/MADFindings NGAS, eNGAS,

eBudget Monito

ring

COA KGA OVERVIEW

ROI – Report of IncomeSAA – Summary of Appropriations

and AllotmentsSAAB - Statement of Appropriations,

Allotments and BalancesSASPF – Summary of

Appropriations for Special Purpose Funds

SAOB – Statement of Allotments, Obligations and Balances

SAAOB – Statement of Appropriations, Allotments, Obligations and Balances

SBUB – Statement of Budget Utilization and Balances

TB – Trial Balance

JEV JEV

JAA

RAPAL RASPF

GJ

ROI

SAAOB

GL

SAOB(NGAs)

SAAB(DBM)

FR/FS

TB

ABM/SARO

GAA &Sp. Laws

SAOBSBUB

SASPFSAA

LEGEND:DBM – Department of

Budget and ManagementNGAs – National

Government AgenciesFR – Financial ReportFS- Financial StatementsGJ – General JournalGL – General LedgerJAA – Journal of

Appropriations and Allotments

JEV – Journal Entry Voucher

RAPAL – Registry of Appropriations and Allotments

RASPF – Registry of Appropriations for Special Purpose Funds

II.a Joint Circular: COA,DBM and DOF

1.0 Rationale

The Commission on Audit (COA) is mandated under Section 2 (1), Article IX (D) of the 1987 Philippine Constitution “to keep the general accounts of the Government”. This constitutional mandate vests in COA the authority and responsibility to account for total appropriations and expenditures. It is imperative for COA to monitor, account and verify the overall budget of the national government.

1.0 Rationale

The full use of advances in technology through computerized systems and shared databases will facilitate the timely preparation of a consolidated financial report for the national government showing how the budget was allocated, released and utilized.

Joint Circular: COA,DBM and DOF

2.0 General Guidelines

2.1 Budgetary information/transactions shall be recorded in appropriate registries.

2.1.1 The Registry of Appropriations, Allotments and Balances (RAAB) (Annex A) shall be maintained by the Department of Budget and Management (DBM) to control and monitor appropriations and

allotments.


2.1.2 The Registry of Allotments and Obligations (RAO) shall continue to be maintained by the national

government agencies (NGAs) to control and

monitor allotments and obligations. For

agencies authorized to use income, the

Registry of Budget and Utilization (RBU) shall also

be maintained.


2.2 Budgetary reports shall be generated from the different registries as follows:

2.2.1 The Statement of Appropriations, Allotments and Balances (SAAB – Annex D) by department/agency from the RAAB;

2.2.2 The Statement of Allotments, Obligations and Balances (SAOB -Annex E) from the RAOs;


2.2.3 The Statement of Budget, Utilization and Balances (SBUB – Annex F) from the RBU; and

2.2.4 The Statement of Appropriations, Allotments, Obligations and Balances (SAAOB -Annex G) from the RAPAL and RASPF combined with data from the SAOB.


2.3 Books of accounts shall be kept by COA

to record the appropriations, allotments

and balances reflected in the RAPAL and RASPF. Data on actual income, obligations and related accounts

shall also be recorded in the COA books based on financial reports from the agencies.


3.0 Specific Responsibilities

3.1 The DBM shall: 3.1.1 Transmit to GAS, COA, complete

and timely budget documents and reports as bases for recording in the books of accounts.

a. Copies of GAA and other special appropriation laws;


b. Copies of ABMs, SAROs and other documents related to augmentation/ transfer/realignment of appropriations/allotments together with the Transmittal List (Annex H) issued by DBM central and regional offices immediately upon issuance to the agencies but not beyond ten days from end of the month;


3.1.2 Maintain RAAB by department/ agency/region;

3.1.3 Prepare Statement of

Appropriations, Allotments and Balances (SAAB) showing data by department/agency/region and submit to DBM Central Office for consolidation;


3.1.4 Consolidate the central and regional offices SAAB and submit a Consolidated Statement of Appropriations, Allotments and Balances (CSAAB – Annex I) by department/agency to GAS, COA within 30 days after each quarter for reconciliation;

3.1.5 Effect appropriate adjustments based on the result of reconciliation of budget data with GAS, COA;


3.1.6 Provide GAS, COA, access to the DBM e-Budget system to facilitate the monitoring and recording of budget/ appropriations and allotments; and

3.1.7 Ensure compliance with the cut-off date for the issuance of SAROs at

yearend.


3.2 Bureau of the Treasury (BTr) shall:3.2.1 Prepare and submit to GAS, COA on or

before February 14 of the ensuing year the following reports:

a. Report of Current Year’s Receipts from Borrowings (Annex J);

b. Analysis of Loans Payable – Foreign (Annex K-1), Analysis of Loans Payable

– Domestic (Annex K-2), and Analysis of Bonds


Payable – Foreign (Annex K-3) and Analysis of Bonds Payable –Domestic (Annex K-4); and

c. Report of Income (National Government and Regular

Agency Books)


3.3 National Government Agencies (NGAs):

3.3.1 The budget Unit shall: a. Continue to maintain the

RAO and the RBU by allotment class and by program, activity and project;

b. Provide the Chief Accountant

access to the RAO/RBU any time

for certification as to availability


of fund and correctness of SAOB,

Statement of Budget, Utilization and Balances (SBUB), and other related reports. c. Prepare the following quarterly reports:

1. Statement of Allotments, Obligations

and Balances; 2. Detailed Statement of Obligations, Disbursements and Balances

(Annex L);


3. List of Allotment Releases, by ABM and SAROs (Annex M); and

4. List of Not Yet Due and Demandable Obligations, Current Year and Prior Years (Annex N).


d. For agencies authorized to use income,

prepare the following additional quarterly reports:

1. Statement of Budget, Utilization

and Balances; and ; 2. Detailed Statement of Utilization, Disbursements and Balances (Annex O);


e. Submit the above financial reports in accordance with the following reporting deadlines, copy furnished the auditor:

Office/Unit Consolidated by Quarterly Year-end

Operating Units with books of accounts

Regional Office 10 days after each quarter

January 10 of each year

DepEd Operating Units with books of accounts

Division Office 10 days after each quarter


DepEd Division Offices

Regional Office15 days after each quarter


Regional Offices Central Offices20 days after each quarter


Central Offices GAS, COA 30 days after each quarter

February 14 of each year


3.3.2 The Accounting Unit shall: a. Submit separate Report of Income for NG and RA books on a quarterly basis; and

b. Sign the SAOB, DSODB, SBUB, DSUDB

jointly prepared with the Budget Unit.


3.4 COA – GAS shall:

3.4.1 Record in the RAPAL and RASPF (a) budget/appropriations and (b) allotment releases to agencies, based on GAA, Special Laws, ABMs and SAROs;

3.4.2 Record in the books of accounts (a) budget/appropriations, (b) allotment releases to agencies,

and (c) unallotted appropriations


(d) expenditures/obligations incurred,

and (e) unexpended allotments based on SAOB; (f) income not authorized for use based on the Report of Income of NGAs; and (g) prior years’ adjustments affecting the surplus of the government;


3.4.3 Coordinate and reconcile pertinent

data on appropriations and allotments

with the DBM based on SAAB;

3.4.4 Analyze and reconcile allotments with

agencies based on SAOB and coordinate discrepancies noted;


3.4.5 Prepare a report on the results of

the review of budget documents and

control of budget/appropriations;


3.4.6 Prepare the trial balances and financial

statements based on the COA books maintained, and Statement of Appropriations, Allotments, Obligations and Balances.

3.5 COA Auditing Unit shall: 3.5.1 Verify the completeness of the budgetary documents

recorded in the RAOs, coordinate with

GAS, COA for discrepancies noted

and inform the agency accordingly; and


3.5.2 Verify the correctness and completeness of entries in the RAOs and data shown in the SAOB/SBUB and DSODB/ DSUDB submitted by NGAs to GAS, COA.


4.0 Repealing Clause

All circulars, memoranda and other issuances or parts thereof which are inconsistent with the provisions of this Circular are hereby repealed/modified accordingly.


5.0 Effectivity

This Circular shall take effect January

1, 2011.

FLORENCIO B. ABAD CESAR V. PURISIMA Secretary SecretaryDepartment of Budget and Management Department of Finance

Reynaldo A. Villar Chairman Commission on Audit


Subject: Guidelines on the Enhancement of Some Policies on the New Government Accounting System (NGAS)

1.0 Purpose:

The constitutional mandate to promulgate accounting rules and regulation vests in COA authority to prescribe accounting policies and guidelines in the recording of government financial transactions and submission of financial statements and reports.

1.0 Purpose:

In the implementation of

NGAS by national government agencies (NGAs) starting January 1, 2002, some accounting issues and concerns were raised by accountants and budget officers. In view thereof, this Circular is issued to enhance some NGAS policies and procedures.

COA Circular

2.0 General Guidelines

2.1 The “Statement of Income and Expenses” shall be modified

and renamed “Statement of

Subsidy/ Income and Expenses” (Annex

A).

COA Circular

2.2 The account “Subsidy Income from National Government” (Account 651) shall be

renamed “Subsidy from National Government” and appropriate disclosure shall be included in the Notes to Financial Statements (FS) to show its analysis/breakdown.

2.3 The lapsed Notice of Cash Allocation (NCA) shall be recorded in the General Journal thru the Journal Entry Voucher.

COA Circular

Lapsed NCA – Regular & AP

Accounts Dr. Cr.

Subsidy from Nat’l. Govt. xx Cash – Nat’l Treas., MDS xx

NCA for Trust Liabilities Due from Nat’l. Treas. xx Cash – Nat’l Treas., MDS xx

2.4 The restoration of the amount of cash equivalent to the total unreleased MDS checks at yearend required in Section 2.3 of COA Government Accounting and FMIS Circular Letter No. 2002-001 dated December 16, 2002 shall be discontinued. The amount shall instead be disclosed in the Notes to Financial Statements.

COA Circular

2.5 Transactions shall be accounted by fund and separate financial statements and reports shall be submitted; and

COA Circular

COA Circular

2.6 The use of the Registry of Dormant Accounts (RDA) shall be

discontinued. The amount of

dormant accounts shall be restored in the books of

accounts and disclosed in the Notes

to FS.

2.7 The transfer of assets acquired in prior years shall be recorded using the Government Equity account.

COA Circular

TIMING:

ACTIVITIES:1. Capability Building and 1. Preparation of 1. Conduct of focus group

IPSAS Awareness Training GAS Manual for NGAs discussion

2. Evaluation/Study of IPSASs 2. Initial Review and Editing 2. Evaluation of gatheredcomments, integration

3. Preparation and Initial Review in the draft PPSAS and GASof PPSAS covering 19 IPSASs Manual and finalization

TIMING:

ACTIVITIES:1. Review of the PPSAS 1. Printing of the approved 1. Training for Trainors

and GAS Manual by the circular covering the PPSASPSAS Board and GAS Manual 2. Training for Users and

Other Stakeholders2. Approval of the PPSAS 2. Publication of the circular,

and GAS Manual by the PPSAS and GAS Manual in Commission Proper the COA Website

3. Publication of the Circular inofficial gazette

February 2011 to March 2011 March to April 2011 April to December 2011

HARMONIZATION STRATEGY/PLAN

March - August 2010 May 2010 - September 2010 October 2010 - January 2011

Step 1 PPSAS AND

POLICIES

Step 2 GAS Manual

Step 3 Exposure & Finalization

Step 4 Approval

Step 5 Printing/

Dissemination

Step 6 TRAINING

Recommended for Implementation in CY 2012

IPSAS Topics

1. IPSAS 1 – Presentation of FS

2. IPSAS 2 – Cash Flow Statements

3. IPSAS 3 – Accounting Policies, Changes in Accounting Estimates and Errors

4. IPSAS 4 – The Effects of Changes in FOREX

Rates

5. IPSAS 5 – Borrowing Costs

6. IPSAS 9 - Revenue from Exchange Transactions

3. PPSAS (cont.)

IPSAS Topics

7. IPSAS 12 – Inventories

8. IPSAS 13 – Leases

9. IPSAS 14 – Events after the Reporting Date

10. IPSAS 16 – Investment Property

11. IPSAS 17 – Property, Plant and Equipment

12. IPSAS 20 – Related Party Disclosures

13. IPSAS 23 – Revenue from Non-Exchange Transactions (Taxes and Transfers)

IPSAS Topics

14. IPSAS 24 – Presentation of Budget Information in Financial Statements

15. IPSAS 27 – Agriculture

16. IPSAS 31 – Intangible Assets

Status Number of IPSASs

1. Compliant 2

2. Substantially Compliant

4

3. Partially Compliant 6

4. For Compliance 15

5. Not Applicable 3

Total 30

Compliance of NGAS/PGAS with the IPSAS

SUMMARY

IV.A Accounting Issues/Concerns and Results of Review of CY 2009 Financial

Statements and Reports

I. Financial Statements

1. Lack of signature on the “Certified Correct” portion of the Pre and Post Closing Trial Balances.

1.Comply with the requirement of Section 71 of the NGAS Manual for the NGAs.

ISSUES/CONCERNS RESOLUTION

II. Quarterly Reports on Cumulative Allotments,Obligations and Balances

1.Consolidation of Quarterly Reports on Cumulative

Allotments, Obligations and Balances (Annex A)

and Detailed Statement

of Cumulative

Expenditures/

1. Consolidate at the regional level the required quarterly reports (ROs,DOs & IUs) to facilitate submission to GAS within theprescribed deadline..

Accounting Issues/Concerns and Results of Review of CY 2009 Financial Statements and

Reports

Obligations Incurred, Obligations Liquidated/ Disbursements and Unliquidated Obligations (Annex B), by Province/ by City.


Reports

2. Use of quarterly report format not in accordance with in COA Circular No. 96-006 dated May 2, 1996

2. Strictly follow the report format prescribed in COA Circular No.96-006.


Reports


Reports

3.Non-submission of Quarterly List of ABMs and SAROs

3.Submit the List of ABMs and SAROs received thirty days after the end of every quarter.

IV.B Analysis and Review of CY 2009 Financial Statements

1.Huge Balances of Cash in Bank

Local Currency Accounts (all funds) Current Account P4,280,751,560.57

Savings Account P6,614,240.55

ISSUES/CONCERNS RESOLUTIONS 1.For ROs and OUs-

ensure that remittances of salary deductions per RPSU payrolls

are within the prescribed period for timely disbursement.

Note: Per DepED Notes FS, 85.37% or

P3,654,275,632.55 pertains to salary

deductions for remittance to cover

RPSU payrolls for December 2009.

Analysis and Review of CY 2009 Financial Statements

Breakdown of Cash, LCCAREGION 2009

I P168,844,774.68

II 184,414,385.46

III 235,912,433.67

IV-A 65,875,326.96

IV-B 40,361,331.76

V 169,201,784.16

VI 408,217,785.53

VII 388,457,509.84

VIII 509,122,519.30

IX P376,081,623.89

X 237,018,581.85


REGION 2009XI 43,385,101.01

XII 268,876,340.68

XIII 126,966,196.67

NCR 23,297,687.23

CAR 408,242,249.86

R.O Desks 149,980,561.16

OSEC, Bureaus & Cntrs. 96,316,118.74

FAPs 376,328,308.74

Attached Agencies 3,850,939.38

Total P4,280,751,560.57


2.Huge Balances of Outstanding Cash Advances

Payroll Fund

P1,291,286,563.32

Due from Officers and Employees-

P76,765,695.28

2. For heads of DepED - Closely supervise accountable officers and ensure that their cash advances are liquidated within the prescribed periodand previous cash advances are


Advances to Officers and Employees- P1,537,683,900.04

liquidated before new cash advances are granted. At yearend all cash advances must be fully liquidated


Breakdown of Outstanding Cash AdvancesRegion Payroll Fund Due from

Officers and Employees

Advances to Officers and Employees

TOTAL

I P7,657,375.23 P1,179,937.05 P30,161,873.12 P38,999,185.40

II 1,640,255.11 47,082,518.85 23,378,622.22 72,101,396.18

III 100,413,777.24 717,695.95 41,675,675.62 142,807,148.80

IV-A 5,895,229.75 - 138,099,990.80 143,995,220.60

IV-B 3,783,219.80 - 38,911,686.63 42,694,906.43

V 36,037,489.54 - 46,530,614.99 825,681,104.53

VI 670,515,696.61 13,556,460.01 415,760,116.84 1,099,832,273

VII 94,955,913.38 - 28,574,443.11 123,530,356.50


Region Payroll Fund Due from Officers and Employees


TOTAL

VIII P18,961,702.30

- P113,764,975.61 P132,726,677.90

IX 189,857,567.24 - 95,536,645.91 285,394,213.10

X 2,144,831.37 - 54,536,462.50 56,681,293.87

XI 17,856,631.40 - 45,067,729.31 57,924,360.71

XII 24,006,876.57 - 74,093,773.51 98,100,650.08

CARAGA 53,998,111.11 P6,886.57 42,663,533.80 96,668,531.48

CAR 25,231,340.84 3,028,585.92 32,165,000.19 60,424,926.95

NCR 35,130,645.77 10,815,256.77 51,384,157.76 97,330,060.30


Region Payroll Fund Due from Officers and Employees


TOTAL

RO Desks

0.00 - P248,306.74 P248,306.74

OSEC P2,788,660.63 - 238,419,388.04 241,208,048.60

FAPs 411,239.43 P378,354.16 25,227,979.86 267,275,622.10

Attached Agencies

0.00 - 1,482,883.48 1,482,883.48

TOTAL P1,291,286,563.32 P76,765,695.28 P1,537,683,900.04 P3,742,300,017.95


3.Huge balances of receivable accounts

3.The heads of DepED should demand prompt submission of reports needed for the liquidation of funds entrusted to

NGOs/POs. Implementation

must be strictly performed.

Due from NGOs/POs – 36,925,072.63

Due from GOCCs – P 272,400,691.15


4. Unreconciled Reciprocal Accounts

Due from Central Office- P 93,441,114.66 Due to Regional Offices/ Staff Bureaus- 613,627,961.56 Difference (P520,186,846.90)


Due from Regional Offices/Staff Bureaus P 926,319,754.91Due to Operating Units

48,769,441.85Difference P877,550,313.06


Due from Operating Units P

2,259,796,856.69Due to Regional Offices/Staff Bureaus 613,627,961.56 Difference P 1,646,168,895.13


Subsidy from Central Office P200,708,240.39Subsidy from Regional Offices/Staff Bureaus 61,946,867.76Subsidy from Operating Units 150,367,808.02 Total P413,022,916.17


Subsidy to Regional Offices/Staff Bureaus P 5,561,918.73

Subsidy to Operating Units

2,166,046,357.76Total P 2,171,608,276.49Difference(P1,758,585,360.32)


V. Monitoring of Quarterly Reports

CY 2010

Target Receipt Percent

Annex A 796 309 39Annex B 796 294 37

Breakdown

REGION Target Receipt Percent OSEC A 4 0 0 B 4 0 0

NCR A 60 9 15 B 60 9 15

CAR A 32 16 50B 32 16 50

Region I A 60 41 68B 60 40 67



Breakdown

Region Target Receipt Percent

Region II A 32 8 25

B 32 8 25

Region III A 72 30 42

B 72 29 40

Region A 60 24 40

IV-A B 60 24 40

Region A 32 6 19

IV-B B 32 6 19

Breakdown


Region V A 56 12 21

B 56 12 21

Region VI A 72 41 57

B 72 41 57

Region VII A 64 7 11

B 64 7 11


Breakdown

Report Target Receipt Percent

Region VIII A 44 23 52

B 44 23 52

Region IX A 36 19 53

B 36 19 53

Region X A 52 39 75

B 52 30 58


Breakdown


Region XI A 40 12 30

B 40 12 30

Region XII A 40 12 30

B 40 9 23

Region XIII A 40 10 25

B 40 9 23As of January 21, 2011


CY 2010Target Receipt

Percent

ABM 3,638 3,638 100SAROs 15,772 14,040 89

V. Monitoring of ABMs/SAROs

Breakdown Region Target Receipt Percent

OSEC ABM 25 25 100 SARO 76 76 100

NCR ABM 302 302 100 SARO 1029 1029 100

CAR ABM 98 98 100 SARO 437 437 100

Region I ABM 235 235 100 SARO 1,477 1236 84


Breakdown


Region II ABM 174 174 100 SARO 752 752 100

Region III ABM 366 366 100 SARO 1,367 1367 100 Region IV ABM 386 386 100

SARO 1,483 1483 100


Breakdown


Region V ABM 236 236 100 SARO 1128 1128 100 Region VI ABM 790 790 100

SARO 2,481 1803 73 Region VII ABM 198 198 100

SARO 724 621 86


Breakdown


Region VIII ABM 143 143 100 SARO 1,041 1021 98 Region IX ABM 115 115 100 SARO 649 551 85 Region X ABM 100 100 100 SARO 690 452 65


Breakdown


Region XI ABM 144 144 100 SARO 1027 842 82

Region XII ABM 100 100 100 SARO 540 540 100

Region XIII ABM 226 226 100 SARO 877 702 80


As of January 21, 2011

dir. marietta m. lorenzo government accountancy sector

Documents

government appropriations

monitor appropriations

general accounts kga

total appropriations

registry of allotments

registry of budget

general accounts framework

general guidelines