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PFA Final Exam October 2022
PFA Final Exam October 2022
EXAMINEE:_________________________ RATING:_________________
Direction. PA 840 Theories’ Application. Answer each question legibly and concisely. Ensure
to be responsive to the questions. Submit hand-written answers on or before October 27, 2021.
b.) What is National Tax Allotment (NTA) and give example of its determination in
relation to the implementation of the Mandanas-Garcia Supreme Court Ruling?
- it is previously referred to as the Internal Revenue Allotment (IRA),
shall refer to the just share of LGUs from all national taxes or
revenues actually realized or collected by the national government,
including those collected by the Bureau of the Internal Revenue (BIR),
Bureau of Customs (BOC), and other agencies or instrumentalities of the
government. All terms in the Local Government Code (LGC) pertaining to
the Internal Revenue Allotment (IRA) shall hereinafter be referred to as
the LGUs' National Tax Allotment or NTA.
-A certification demonstrating the respective 40% shares of LGUs in the
collection of national taxes made in the third fiscal year prior to the
budget year is sent to the DBM by the BIR, BOC, and BTr during the
budget preparation phase. The DBM then determines and distributes each
LGU's portion based on the formula stipulated in Section 285 of RA No.
7160, employing as basis relevant proof-supporting information,
such as the authorized.
1. Regularity. The business and accounting staff apply GAAP rules as standard practice.
2. Consistency. Accounting staff apply the same standards through each step of the reporting process
and from one reporting cycle to the next, paying careful attention to disclose any differences.
3. Sincerity. Accounting staff provide objective and accurate information about business finances.
4. Permanence. Accounting staff use consistent procedures in financial reporting, enabling business
without any compensation. In other words, they do not get paid based on how good or bad the reporting
turns out.
6. Prudence. Financial data is based on documented facts and is not influenced by guesswork.
7. Continuity. Financial data collection and asset valuations should not disrupt normal business
operations.
8. Periodicity. Financial data should be organized and reported according to relevant accounting periods.
For example, revenue or expenses should be reported within the corresponding quarter or other
reporting period.
9. Materiality. Accountants must rely on material facts and disclose all material financial and accounting
3. Present a comparative matrix on the sources of revenue, including rates and sharing,
for LGUs: Barangay, Municipality, Highly Urbanized or Component City, and Provinces.
4. Define and explain the following connecting to spending, the reason why the
government prepare a new budget every year:
a.) “financing program”
b.) "national government budget”
c.) “one fund budget”
d.) “Policy-based budgeting”
e.) “planning-programming budgeting system”
5. a.) Illustrate and discuss comparatively the national and local budget process. Include
the reviewing authority of all LGU levels.
b.) Discuss briefly the process and documents required in a Barangay Budgeting Process.
Include the calendar.
C.) What are existing and continuing appropriation? How about automatic
appropriation? Define each, provide legal bases and explain its rationale.
7. Mayor Adela, Accountant Marie, Budget Officer Candice, Planning Officer Pette and
Treasurer Aimy procured and paid five (5) units Komatsu Crawler Backhoe in February
2021. If you were the auditor (COA), having studied Public Fiscal Administration in
your MPA class, discuss briefly the process and documents you will look into from
revenue generation – sources of fund, annual budget inclusion, allocation, procurement,
and accounting to its issuance and assignment to accountable office or officer.
8. The Public Financial Management (PFM) Reform Program aims to improve efficiency,
accountability and transparency in public fund use in order to ensure the direct,
immediate, substantial and economical delivery of public services especially to the poor.
The Program implements the key strategies of the Philippine PFM Reform Roadmap:
Towards Improved Accountability and Transparency (2011-2016), a comprehensive
reform agenda. Explain PFM’s purpose, namely: a.) seeks to clarify, b.) simplify, c.)
improve and d.) harmonize the government’s financial management processes and
information systems.
9. Enumerate, provide legal bases and explain the mandatory expenses of and the
limitations on local government units Annual Budgets. Why the need to limit when
LGUs should have fiscal autonomy? (PS, LGDF, GADF, LDRRMF, PO and CF, others)
Explain and Provide legal basis.
10. a.) Discuss the General Provisions of the Taxing Powers of the LGUs (Province, City,
Municipality, Barangay);
b.) Enumerate, give example and briefly discuss the Fundamental Principles of Local
Fiscal Administration; and
11. a.) Draft a project proposal that you should suggest to a city government to provide
intervention to the inflation induced dive of economic, social and environmental
performance of the Philippines.
b.) Present a complete Project Design for the approval of your City Mayor.Cite
challenges and recommend programs to arrest issues confronting our localities, to
achieve economic boost, social assistance and social development.
12. What is your take-away from the subject Public Fiscal Administration, as a career-
person, as a family member and a member of the community? How can you use the
learning to assist your family, your office and your community?
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