Accounting is a powerful tool for evaluating the performance of various government agencies. The performance of administrative managers can only depend on the financial statements generated by the accounting systems
In the light of this need, a new accounting system should be developed to help the various agencies reach the financial targets and at the same time all the users of the financial statements have understood .
With this new development under the new 1987 Constitution, the Audit Committee (COA) has announced the New Government Accounting System (NGA) in the Philippines through all government agencies.
The transition to NGA was in response to the following need:
1. Acceptance of an accounting system that complies with International Accounting Standards
2. Computerization of accounting systems for making reports easy to understand for the public
3. Making regular and routine financial reports
4. Use of financial statements as a management tool in decision making
Government Accounting – Determined
Pursuant to Section 109, the Decree of the Presidential Decree (PD) In 1445, it defined government billing, which included the process of analyzing, classifying, summarizing and communicating all the transactions involved in the receipt and payment of all government funds and the interpretation of the results. In accordance with this definition, the targets covered several areas of government operations.
Objectives of Government Accounting
1. Production of relevant financial information on past and current government transactions
2. Funding for future operations
3. As a control mechanism for the receipt, disposal and use of government funds and property
4. Creating Financial Reports Related to the Results of the Operation of Different Government Agencies
The need to prepare financial reports in government time is needed to evaluate the performance of different government agencies. The results of the reports would indicate the areas that are still needed to improve and if these budgetary requirements are needed for these agencies.
Civil servants are managers of the funds entrusted to them by the national government. The financial statements clearly show whether the agencies are complying with their mandate. These reports also show the extent to which agency assets and resources are used and, if necessary, additional infusion of money.
Accounting data shows how government resources are used. This also reveals the inflow and outflow of funds and, if necessary, the need for stricter fund management and control.
About Accounting Responsibility
This is the budgetary responsibility of the Constitution and its guiding laws, rules and promulgation. The mandate provided for in the said Constitution of the Philippines calls for the management of general accounts and for the publication and submission of financial reports covering governmental operations.
Government Officials whose mandate The above mentioned Accounting Tasks include the Audit Committee (COA), the Department of Budget and Management (DBM) and the Ministry of Finance (BTr) – fulfillment of the Government's responsibilities with all its Filipino commitment
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