NEW GOVERNMENT ACCOUNTING SYSTEM (NGAS). REPEALING CLAUSE. The Manual on the New Government Accounting System replaces the Government Accounting and Auditing Manual (GAAM), Volume II, prescribed under COA Circular No. 91-368, dated December 19, 1991. LEGAL BASIS.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
“The Commission on Audit shall have exclusive authority, subject to the limitations in this Article, to define the scope of its audit examination, establish the techniques and methods required therefor, and promulgate accounting and auditing rules and regulation, including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties”.
These offices/ departments will provide/ produce the source documents and other accounting forms leading to the perfection of the transaction whether it be budgetary, collections or disbursements. These source documents and accounting forms shall be the basis for the recording and the preparation of the Financial Statements.
Allotments – is the authorization issued by the Local Chief Executive (LCE) to a department /office of the LGU, which allows it to incur obligations, for specified amounts, within the appropriation ordinance. Allotments are released quarterly based on the Work and Financial Plan and Request for Release of Allotment.
Obligations – refer to the amounts committed to be paid by the LGU for any lawful act made by an accountable officer for and in behalf of the local government unit concerned. For each obligation, the requesting department /office shall prepare the Allotment and Obligation Slip (ALOBS) signed by the department or office head as requesting official and forward this together with supporting documents , to the Budget Officer. Per COA Circular No. 2006-02 dated January 31, 2006 ALOBS is now called OBR – Obligation Request.
Special Accounts in the General Fund Special Accounts, complete with subsidiary ledgers shall also be maintained for the following :
1. Public Utilities and other economic enterprises:
2. Loans , interests, bond issued, and other contributions for specific purposes;
3. Development Projects funded from the Share in the Internal Revenue Collections;
4. Such other special accounts which may be created by law or ordinance.
Chart of Accounts and Account Codes – A three- digit account numbering system is adopted.
Financial Statements – the following statements is prepared monthly, quarterly and annually.
* Notes to Financial Statement shall accompany year-end reports.
Appropriations, Allotments and Obligations - Journal Entry shall no longer be prepared to record the appropriations, receipt of allotments and incurrence of obligations. In lieu of this, separate registries shall be maintained by the Accounting Unit to control the appropriations, allotments and obligations for each classes of expenditures, namely:
1. Registry of Appropriations, Allotments, and Obligations – Capital Outlay ( RAAOCO)
2. Registry of Appropriations, Allotments, and Obligations – Maintenance and Other Operating Expenses (RAAOMO)
3. Registry of Appropriations, Allotments, and Obligations – Personal Services (RAAOPS)
Now that the importance of technology has been recognized as a tool for industrial and economic development, the Commission on Audit (COA) developed e-NGAS – the computerization of NGAS which encompasses the various accounting processes from recording, to classifying, summarizing and communicating all the financial results. As such, the e-NGAs provides an accurate, on time and standardized financial reports. The Electronic New Government Accounting System complies with the basic policies and procedures of the New Government Accounting System (NGAS).
There is an automatic checking of balances between debits and credits. Once these JEVs are approved by authorized approving officer, it gets posted to the General Ledger and Subsidiary Ledger.
Up-to-date generation of government standard reports necessary for management and auditing purposes
Simplified entry of financial transactions and activities, using transaction templates
Use of responsibility accounting for a more detailed financial reporting and analysis
- Journal Entry Voucher
THE BUDGET CYCLE