Chapter 3 - The Government Accounting Process
Chapter 3 - The Government Accounting Process
Group 3 Members:
BALINDONG, NORHAFSA S.
LUCMAN, ACHMADJAN N.
DIBANGKITUN, HAFISA D.
BALT, PRINCESS NADJAH P.
DIMALNA, ASLAINIE C.
DECA, MOHAMMAD AL-RAJIE U.
MOHAMMAD, JOHAIBER M.
Government accounting
is the process of
● analyzing
● recording
● classifying
● summarizing
● communicating all transactions involving the receipt and disposition of
government funds & property, and interpreting the results thereof.
Books of Accounts and Registries
The books of accounts and registries of government entities consist of:
1. Journal 3. Registries
a. General Journal a. Registers of Revenue and Other Receipts
b. Cash Receipts Journal (RROR)
c. Cash Disbursements Journal b. Registry of Appropriations and Allotments
d. Check Disbursements Journal (RAPAL)
2. Ledgers c. Registries of Allotments, Obligations and
a. General Ledgers Disbursements (RAOD)
b. Subsidiary Ledgers d. Registries of Budget, Utilization and
Disbursements (RBUD)
1. Journals
a. General Journal - used to record transactions not recorded in the Special Journals.
"Special Journals“
b. Cash Receipts Journal - used to record the Report of Collection & Deposit & Cash Receipts
Register of collecting officers.
Report of Collection & Deposit (RCD) - prepared by a collecting officer to
report his/her collections & deposits to an Authorized Government Depository Bank
(AGDB).
Cash Receipts Register (CRReg) - used by field offices without a complete set
of books to record their cash collections & deposits in the books of their mother unit
(central/regional/division office).
c. Cash Disbursements Journal - used to record the cash disbursements of Disbursing
Officers.
d. Check Disbursement Journal - used to record the check disbursements of the Disbursing Officers
2. Ledgers
Registries of Revenue & Other Receipts (RROR) - used to monitor the budgeted amounts,
actual collections & remittances of revenue & other receipts.
Registry of Appropriations & Allotments (RAPAL) - used to monitor appropriations &
allotments. This is to ensure that allotments will not exceed appropriations.
Registries of Allotment, Obligations & Disbursement (RAOD) - used to monitor the
allotments received, obligations incurred against the corresponding allotment & the actual
disbursements made. This is to ensure that obligations incurred will not exceed allotments while
actual disbursements will not exceed the obligations incurred.
a. Personnel Services (PS) - pertain to all types of employee benefits, e.g., salaries, bonuses,
allowances, cash gifts, etc.
b. Maintenance and Other Operating Expenses (MOOE) - pertain to various operating
expenses other than employee benefits and financial expenses, e.g.,
travel, utilities, supplies, etc.
c. Financial Expenses (FE) - pertain to finance costs, e.g., interest expense, bank charges, etc.
Financial expenses also include losses on foreign exchange
transactions.
d. Capital Outlays (CO) - pertain to capitalizable expenditures, e.g., expenditures on the
construction of public infrastructures, acquisition costs of equipment, etc.
Summary of Basic Recordings
Payable xxx
Cash-MDS, regular xxx
f. Tax Remittance Advice updating of ORS & appropriate Cash -TRA xxx
(used for remittance of RAODs Subsidy from NG xxx
taxes withheld)
Due to BIR xxx
Cash - TRA xxx
The Revised Chart of Accounts
Overview of the accounting cycle of a government entity. Here are the list of the things
that will be learning:
1. Appropriation
2. Allotment
3. Incurrence of Obligation
4. Disbursement Authority - NCA
5. Disbursements
6. Billings, Collections & Remittances
7. Unadjusted trial balance
8. Adjusting entries
9. Closing entries
10. Preparation of financial statements
1. Appropriation
The appropriation is posted (recorded) in the Registry of Appropriation and Allotments
(RAPAL).
2. Allotment
The allotment is posted (recorded) in the Registry of Appropriation and Allotments (RAPAL)
and Registries of Allotment, Obligations and Disbursements (RAOD).
3. Incurrence of Obligation
The obligations are posted (recorded) in the Obligation Request and Status (ORS) and
Registries of Allotment, Obligations and Disbursements (RAOD).
5. Disbursements
I. Personnel Services
II. Maintenance and Other Operating Expenses (MOOE)
III. Capital Outlays (CO)
IV. Remittances of Tax Withheld
Common Fund System
To maximize the valuable NCAs of the agency, the Common Fund System policy shall be
adopted whereby cash allocation balances of agencies under the Regular MDS Account may
used to cover payment of current year’s accounts payable, I.e., goods and services which
have been delivered and accepted during the year charged against appropriations of prior
year/s, after satisfying their regular operating requirements as reflected in their Monthly Cash
Program. (GAM for NGAs, Chapter 6, Sec.3)