Assignment In Specialized ing 4y5w3h

1. Government ing – Defined Under Section 109, of the Presidential Decree (PD) no. 1445, defines Government ing as one that encomes the process of analyzing, classifying, summarizing and communicating all transactions that are involved in the receipt and disbursement of all government funds and properties, and interpreting the results thereof. In pursuant to this definition, objectives were set to cover several areas in government operations. The need for timely preparation of financial reports in government is necessary to evaluate the performance of the different agencies of government. The result of the reports would indicate the areas that may still need improvement, as well as come up with the budgetary requirements for these agencies if needed. Public officers are managers of funds, that are entrusted to them by the national government. The financial reports would clearly show if the agencies are achieving what is mandated by them. These reports would also show the extent in the use of agency assets and resources, as well as the need for an additional infusion of funds if required. The ing data would show how the funds of government were used. This would also reveal the inflow and outflow of funds and the need for stiffer fund management and control, when necessary.

2. NATURE AND SCOPE:

NEW GOVERNMENT ING SYSTEM(NGAS) (SECTION 2(2), ART. IX-D OF THE CONSTITUTION)

OBJECTIVES (SECTION 110, PD 1445 ) 1. To produce information concerning past operations and present conditions; 2. To provide a basis for guidance for future operations; 3.To provide for control of the acts of public bodies and offices in the receipt, disposition and utilization of funds and property; 4. To report on the financial position and the results of operations of gov't agencies for the information and guidance of all persons concerned. REASONS OF SHIFTING TO NGAS 1. Produce a system in conformity with IAS 2. Pursuit of computerization - including responsibility ing, thereby ensuring the generation of various reports that are useful to management, lawmakers and the general public; 3. Generation of relevant and periodic financial statements; 4. Effective tool for managers and executives in effective and efficient monitoring of Agency performance.

SCOPE: Government ing encomes the process of analyzing, recording, classifying, summarizing, and communicating all transactions involving the receipt and disposition of government fund and property, and interpreting the results thereof. -Introduced basic policies, the new encoding system, the ing systems, books, registries, records, forms, reports and financial statements to be adopted by ALL NATIONAL GOVERNEMENT AGENCIES in January 1, 2005. *OLD GAS: uses manual system OBJECTIVES NGAS ING RESPONSIBILITY Commission on Audit (COA) -keeps general s of the government -promulgates rules and regulations -submits to president and congress an annual report of the gov’t, subdivisions, agencies and instrumentalities, & GOCC’s. (not later than the last day of September) *Authority: - define scope - establish techniques - promulgates rules and regulations - NO longer journalizes appropriation & allotment by DBM Department of Budget and Management (DBM) -responsible for formulation & implementation of Nat’l Budget w/ goal of attaining our national socio-economic plans and objectives -responsible for efficient & sound utilization of funds & revenues. *Maintains: -Registry of Appropriations (RAPAL) -Registry of Special Purpose Fund Appropriations and Allotments (RESPFA) -Registry of Allotments and Notice of Cash Allocagtion (RANCA) -Control and monitoring of Notice of Cash Allocation releases Bureau of Treasury (BOT) * Authority: -receive and keep national funds, manage and control the disbursements thereof -maintain s of financial transactions of all national government offices, agencies and instrumentalities. * NGAS: -maintain Registry of NCA and Replenishments (RENREP) -monitoring bank transfers it makes in replenishing MDS s Gov’t Agencies: -ing personnel are under Head of Agency

- ing personnel responsibilities: Maintain and keep s of agency Provide advice on condition and status of appropriations and allotments Develop and conduct procedures designed to meet needs Journalize Notice of Cash allocation (NCA) No longer journalize share in income of national gov’t Maintain registries for allotments: -Registry of allotments & obligations – personal services (RAOPS) -RAO – Maintenance & Operating Expenses (RAOMO) -RAO- Capital Outlay (RAOCO) -RAO- Financial Expenses (RAOFE) Gov’t Agencies: Government ing vs Private ing Government Private Sector - does not record stocks, debtors in the balance sheet (Statement of Assets and liabilities) -focuses on the provision of adequate welfare to the people with probity, ability, legal and wise spending in mind. -displays those items, and others such as “sales”, “cost of goods sold” and “carriage outward expenses‟‟ (in the trading and profit and loss s). -peculiar to commercial undertakings which maximization of profit is the main objective. Private Sector Government -adopts “modified cash and accrual basis” of ing -operates predominantly “fund ing” method in collating its data and information. -adopts “cash/ accrual basis” -uses the proprietary (or ownership) style which discloses the nature and sources of the enterprise's finance or capital structure - ordinary share capital/ capital structure, such as “ordinary share capital” and “preference share capital.” BASIC FEATURES and POLICIES of NGAS a. Accrual ing 1. Accrual Method - used by national government agencies when income is realized (earned) during the ing period regardless of cash receipt. s receivable is set up and the general or specific income s according to nature and classification are credited. 2. Modified Accrual – Under the modified accrual basis, income of an agency is recorded as “Deferred Credits to Income” and the appropriate receivable is debited. The income is recognized upon receipt of collection and the “Deferred Credits to Income” is adjusted accordingly. 3. Cash Basis - Cash basis of ing shall be used for all other taxes, fees, charges and other revenues where accrual method is impractical. The income is credited upon collection of the cash or its equivalent.

b. One Fund Concept -done only when specifically required by law or by a donor agency or when otherwise necessitated by circumstances General fund. -available for all functions of government. 3. General fund. This fund is used to for general operations and activities not requiring the use of other funds. b. Special revenue (or special) funds are required to for the use of revenue earmarked by law for a particular purpose. State and federal fuel tax revenues require special revenue funds, because federal and state laws restrict these taxes to transportation uses. Special Purpose Fund 1. Miscellaneous Personal Fund -used to cover personnel benefits which are not provided for in the regular budget of the agency. 2. Calamity Fund -used to cover relief, rehabilitation, reconstruction and other services in connection with calamities that may occur during the budget year. 3. Organizational Adjustment Fund - used to cover budgetary requirements of a newly created organization, program/project/activity w/i an agency.

4. Books of s

RESPONSIBILITY ING Concepts of Responsibility ing: A system that relates the financial results to a responsibility center, which provides access to cost and revenue information under the supervision of a manager having direct responsibility for its performance. RESPONSIBILITY ING -a part, segment, unit or function of a government agency, headed by a manager, who is able for a specified test of activities. 1. Responsibility ing involves accumulating and reporting data on revenues and costs o the basis of the manager’s action.

2. Evaluation of manager’s performance. 3. Responsibility ing can be used at every level of management in which conditions exist. 4. The reporting of costs and revenues under responsibility ing differs from budgeting in 2 aspects: a. A distinction between controllable and non- controllable. b. Performance reports either emphasize or include only items controllable by individual manager. 5. A responsibility reporting system involves the preparation of a report for each level of responsibility. 6. Evaluation of a manager’s performance for cost centers. 3. Responsibility Center Code Structure Regular Agency (RA) Books: National Agency (RA) Books: - record the receipt and utilization of Notice of Cash Allocation (NCA) and other income/receipts which the agencies are authorized to use and to deposit with Authorized Government Depository Bank (AGDB) and the National Treasury Journals Subsidiary Ledgers (SL) -Cash -Receivables -Inventories -Investments -Property, Plant and Equipment -Construction in Progress -Liabilities -Income -Expenses -Cash Receipts Journal (CRJ) -Cash Disbursements Journal (CDJ) -Check Disbursements Journal (CkDJ) -General Journal (GJ) Ledgers -General Ledger (GL) -Subsidiary Ledgers (SL) -used to record income which the agencies are not authorized to use and are required to be remitted to the National Treasury.

-Cash Journal (CJ) -General Journal (GJ) -General Ledger (GL) -Subsidiary Ledger (SL) *With the implementation of the computerized agency ing system, only the General Journal shall be used together with the ledgers by both books. e. Financial Statements -Balance Sheet -Statement of Government Equity -Statement of Income and -Expenses -Statement of Cash Flows *Notes to Financial Statements shall accompany the above statements. Balance Sheet Statement of Income and Expenses. - The Statement of Income and Expenses shows the results of operation/performance of the agency at the end of a particular period. This statement shall be prepared by the ing Unit from information taken directly from the Pre-Closing Trial Balance. Statement of Government Equity The Statement of Government Equity shows the financial transactions, which resulted to the change in Government Equity at the end of the year. Statement of Cash Flows -The Statement of Cash Flows is a statement summarizing all the cash activities of an agency. This includes the operating, investing and financing activities of the entity and provides information on the cash receipts and cash payments during the period. The primary purpose of the Statement of Cash Flows is to give relevant information on the agency’s overall cash position, liquidity and solvency. Using the Statement of Cash Flows, managers, investors and creditors could easily assess if the agency could meet its obligations in operating, investing and financing activities Notes to Financial Statements -is a formal statement which shows the financial condition of the agency as of a certain date. It includes information on the three elements of financial position - assets, liabilities and government equity - To be ed with the following schedules/statements: -Schedules of s Receivables (SAR) -Schedules of s Payables (SAP) -Schedules of Public Infrastructures (SPI) -Other schedules as may be required 1) Operating Activities -involves the principal resources producing activities of the enterprise and other activities that are not investing or financing (SFAS 22). Generally, these include the cash effect on transactions that enter in the Income and Expense Summary . 2) Investing Activities -involves the acquisition and disposal of long-term assets and other investments not

included in cash equivalent (SFAS 22). These activities include cash transactions covering non-operating assets, such as the purchase of property, equipment, short and long-term investments and other non-current assets. *Non-cash investing activities are not included in the statement of cash flows. 3) Financing Activities -are derived from the equity capital and borrowings of the agency (SFAS 22). These include cash transactions involving the government equity and non-operational liabilities. Non-cash financing activities are not included in the statement of cash flows. Cash flows from operating activities Cash Inflows:  Receipt of Notice of Cash allocation (NCA) from the DBM  Receipt of Notice of Transfer of Allocation to Agency RO/OU from CO  Cash receipts from all sources of revenues  Receipt of Inter – agency cash transfers (Due to)  Cash receipts from the sale of goods or rendition of services  Cash receipt of interest income, rental income, dividend income, etc.  Receipt of payment for liquidated damages  Receipt of refund of deposits  Receipt of refunds of cash advance or excess payments  Collection of receivables  Cash receipt of grants and donations  Receipt of cash dividends from enterprises (e.g. PLDT)

Cash Outflows:  Payments of s payable  Cash purchase of merchandise for sale  Cash advances granted for travel  Inter-agency transfers (Due from)  Notice of Transfer of Allocation to Agency RO/OU issued by the NGA Main Office to RO/OU and/or attached agencies through Government Servicing Banks  Return of unused NCA  Cash payment for operating expenses  Remittance of taxes withheld not covered by TRA and other deductions (if any)  Cash purchase of supplies and equipment  Cash payment of retirement benefits  Cash payment of claims for damages  Cash payment for liabilities incurred in operations  Cash payments for interest

Cash flows from investing activities: Cash Inflows:  Proceeds from sale of marketable stocks and bonds Cash proceeds from the sale/disposal of equipment and other property, plant and equipment  Redemption of long-term investments or repayment by GOCC/GFI of long-term loans Cash Outflows:  Purchase of property, plant and equipment  Purchase of land  Investment in stocks/bonds  Investment in GOCC/GFI  Exposure as other long-term investments Cash flows from financing activities: Cash Inflows:  Cash received from domestic and foreign loans  Issuance of treasury bills Cash Outflows:  Payment of domestic and foreign loans  Redemption of treasury bills outstanding  Payment of cash dividend *The net increase in cash provided by operating activities, investing activities and financial activities for the year, and the cash balance at the start of the year, shall equal the cash balance at the end of the year. Such amount shall tally with the total cash shown in the balance sheet. -Notes to Financial Statements are integral parts of financial statements, which pertain to additional information necessary for fair presentation in conformity with generally accepted ing principles. These may explain the headings captions or amounts in the statements of present information that cannot be expressed in money , and description of ing policies. f. Two-Money Column Trial Balance -balance showing the balances shall be used. OLD: four column NGAS: similar to commercial ing g. Allotment and Obligation Allotment – authorization issued by DBM to an agency to incur obligation up to a specified amount Obligation – commitment by a gov’t agency which binds gov’t to immediate payments of money. NGAS: Allotments – RAOCO, RAOMO, RAOPS, RAOFE

Classes of allotments • Registry of Allotments and Obligations - Capital Outlay (RAOCO) • Registry of Allotments and Obligations - Maintenance and Other Operating Expenses (RAOMO) • Registry of Allotments and Obligations - Personal Services (RAOPS) • Registry of Allotments and Obligations- Financial Expenses (RAOFE). h. Notice of Cash Allocation -receipt of NCA by the agency shall be recorded in the books as debit to “CashNational Treasury, Modified Disbursement System (MDS)” and credit to “Subsidy Income from National Government”. Entry: Cash-National Treasury, Modified Disbursement System XX Subsidy Income from National Government XX i. Financial Expenses NGAS: Financial expenses such as bank charges, interest expenses, commitment charges and other related expenses shall be separately classified from Maintenance and Other Operating Expenses (MOOE). OLD: recognized under Maintenance and other operating expenses (MOE) j. Perpetual Inventory of Supplies and Materials -Supplies and materials purchased for inventory purpose shall be recorded using the perpetual inventory system. -Regular purchases shall be coursed thru the inventory and issuances thereof shall be recorded as they take place except those purchased out of Petty Cash Fund which shall be charged directly to the appropriate expense s.

k. Valuation of Inventory - Cost of ending inventory of supplies and materials shall be computed using the moving average method. l. Maintenance of Supplies and PPE Ledger Cards ing units of agencies shall maintain: -Supplies ledger cards/stock cards by stock number -Property, Plant and Equipment Ledger Cards/Property Cards by category of PPE

m. Construction of Assets Construction of Theory shall be applied: n. Registry of Public Infrastructures/Registry of Reforestation Projects RPI/RRP shall be maintained for each specific infrastructure/reforestation project. Examples: Registry of Public Infrastructure-Bridges (RPIB) Registry of Public Infrastructure-Roads(RPIR) Registry of Public Infrastructure-Parks (RPIP) o. Depreciation -Straight Line Method -Starts on the 2nd month after purchase -10% of purchase cost=residual value * Public Infrastructure/Reforestation Projects as well as serviceable assets that no longer being used shall not be charged any depreciation. p. COA Circular No. 2003-007Dec. 11,2003 q. Reclassification of Assets Other Assets -Serviceable assets no longer used -Obsolete assets -Unserviceable assets r. Allowance for Doubtful s Set-up Estimated Uncollectible trade receivables A/R xx Est. Uncoll. t/r xx * Provided only to Trade Receivables s. Recognition of Liability Recognized if: -Goods are accepted -Services are rendered -Supplier/Creditor bills are received t. Interest Accrual u. ing for Borrowings and Loans v. Elimination of Corollary and Negative Journal Entries

b) Loans Payable – long – term, Foreign used to record long – term indebtedness (in cash or in kind) from foreign governments or international financial institutions evidenced by a contract or an agreement JE: Loans Payable – Long – term, Foreign XX Cash XX To record the payment for a liability . -All borrowings and loans are recorded under the appropriate liability s which includes: a) Loans Payable – long – term, Domestic - used to record long – term indebtedness (in cash or in kind) from domestic creditors evidenced by a contract or an agreement JE: Loans Payable – Long – term, Domestic XX Cash XX To record the payment for a liability . Corollary Entries: Under Old Government ing system: Corollary entry arises from the operation of obligation ing (Inventories, supplies and materials, Fixed assets and long term investments) Under Obligation ing: Cost acquiring inventories and those enumerated above are direct charges appropriations. Acquired assets are entered in the books of s by corollary entry made at the time of obligation and/or actual receipt of asset 1. To record obligations for the purchase of fixed asset. Appropriation allotted/Expenditures XX Obligations Incurred XX *Corollary entry: Fixed assets – In transit XX Invested surplus – Purch/ or Const XX 2. To liquidate obligation. Obligation liquidated XX TAAC - check disbursements XX *Corollary entry: Fixed assets – General public service XX Fixed assets – In transit XX w. Petty Cash Fund -Under Imprest system -All replenishments shall be directly charged to the expense PCF shall be equal to total Cash on Hand and the unreplenished expenses

-Restricted for the use to purchased regular inventory/items for stock Establishment of PCF (Regular or Special Disbursing Officers) -Shall only be used for petty or miscellaneous authorized expenditures(cannot be paid by check) To Set up Petty Cash: Petty Cash fund XX Cash – National treasury XX To record replenishments: Office supplies expense XX Traveling Expenses XX Cash – National Treasury – MDS XX

To record the Liquidation of expenses: Office Supplies Expenses XX Traveling Expense – Local XX Petty Cash Fund XX To record unused PCF: Cash – Collecting Officer XX Petty Cash Fund XX x. Foreign Currency Adjustments Cash deposits in foreign currency and outstanding foreign loans(computed at the exchange rate prescribed by BSP at the balance sheet) Total cash deposit and foreign loans payable shall be adjusted at the end of each month and any gain or loss on foreign exchange shall be recognized Liability shall be expressed both in the Foreign and local currency 5. Chart of s and Codes s Codes Assets 100-299 Asset Contra s 300-399 Liabilities 400-499 Equity 500-599 Revenue/Income 600-799 General Income s 600-699 Specific Income s 700-799 Expenses 800-960 Personal Services 801-830 Maintenance and Other 831-950 Operating Expenses

Financial Expenses 951-960 -consists of three-digit codes grouped as follows ASSETS Current Assets For the rest of the Chart of s, Refer to Section 9. Cash 101 Cash in Treasury 102 Cash – National Treasury, Modified Disbursement System (MDS) 103 Cash – Bangko Sentral ng Pilipinas 105 Petty Cash Fund 106 Cash – Collecting Officers 107 Cash – Disbursing Officers 110 Cash in Bank – Local Currency, Current 111 Cash in Bank – Local Currency, Savings 112 Cash in Bank – Local Currency, Time Deposits 113 Cash in Bank – Foreign Currency, Current 114 Cash in Bank – Foreign Currency, Savings 115 Cash in Bank – Foreign Currency, Time Deposits 6. Budget Procedure Government budgeting is the critical exercise of allocating revenues and borrowed funds to attain the economic and socia l goals of the country. It also entails the management of government expenditures in such a way that will create the most economic impact from the production and delivery of goods and services while ing a healthy fiscal position. Government budgeting is important because it enables the government to plan and manage its financial resources to the implementation of various programs and projects that best promote the development of the country. Through the budget, the government can prioritize and put into action its plants, programs and policies within the constraints of its financial capability as dictated by economic conditions. Budgeting for the national government involves four (4) distinct processes or phases : budget preparation, budget authorization, budget execution and ability . While distinctly separate, these processes overlap in the implementation during a budget year. Budget preparation for the next budget year proceeds while government agencies are executing the budget for the current year and at the same time engaged in budget ability and review of the past year's budget.

The preparation of the annual budget involves a series of steps that begins with the determination of the overall economic targets, expenditure levels, revenue projection and the financing plan by the Development Budget Coordinating Committee (DBCC). The DBCC is an inter-agency body composed of the DBM Secretary as Chairman and the Bangko Sentral Governor, the Secretary of the Department of Finance, the Director General of the National Economic and Development Authority and a representative of the Office of the President as . The major activities involved in the preparation of the annual national budget include the following: a. Determination of overall economic targets, expenditure levels and budget framework by the DBCC; b. Issuance by the DBM of the Budget Call which defines the budget framework; sets economic and fiscal targets; prescribe the priority thrusts and budget levels; and spells out the guidelines and procedures, technical instructions and the timetable for budget preparation; c. Preparation by various government agencies of their detailed budget estimates ranking programs, projects and activities using the capital budgeting approach and submission of the same to DBM; d. Conduct a budget hearings were agencies are called to justify their proposed budgets before DBM technical s; e. Submission of the proposed expenditure program of department/agencies/special for confirmation by department/agency heads. f. Presentation of the proposed budget levels of department/agencies/special purpose funds to the DBCC for approval. g. Review and approval of the proposed budget by the President and the Cabinet; h. Submission by the President of proposed budget to Congress. To meet the Constitutional requirement for the submission of the President's budget with 30 days from the opening of each regular session of Congress, the budget preparation phase is guided by a budget calendar.

7. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  (MOOE Expense Code 200) – This includes Traveling expenses, communication services, repair and maintenance, transportation services, supplies and materials, water, illumination and power services, chalk allowance, auditing services, training and seminar expenses. For purchase of supplies, items should not exceed P10, 000.00 as prescribed by COA. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  USES OF SCHOOL MOOE  To pay expenses for utilities (e.g. electric and water expenses);  To procure school supplies necessary in classroom teaching; To pay salaries for janitorial and security services; and  To use for other mandatory expenditures except for the procurement of textbooks and other instructional materials, and school furniture and equipment. LEGAL BASES  a. Department of Budget and Management (DBM) and DepEd t Circular No. 2004-1 dated January 01, 2004 entitled Guidelines on the Direct Release of Funds to DepED-Regional Offices and Implementing Units;  b. Section 10, Republic Act No. 9155 (Governance of Basic Education Act of 2001) which provides that the appropriations intended for the regional and field offices (elementary/secondary schools and schools division offices) are to be allocated directly and released immediately by the DBM to the said offices; and MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Traveling Expenses – This includes expenses incurred in the movement of persons whether employed in the government or not, such as transportation, subsistence, lodging and travel per diems, hire and guides or patrol; transportation of personal baggage or household effects; bus, railroad, airline and steamship fares, tips, transfers, etc., of persons while traveling abroad; charter of boats, launches, automobiles, etc., road tolls, parking fees and all other similar expenses. 8. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Auditing Services – This includes the amount remitted to the Commission on Audit for auditing services rendered to the agency.  Training and Seminar Expenses – This includes expenses incurred for participation / attendance of personnel to training and seminars / workshops. 9. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Communication Services – This includes expenses for communication of messages such as telephone (landline and mobile), internet expenses, wireless and cable charges, satellite and tolls, postage charges and rent of post office boxes. 10. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Repair and Maintenance of Government Facilities – This includes cost of repairing and maintaining government facilities such as public buildings, roads, bridges, irrigation systems, river control and sea protection works, artesian wells, water supply systems, telegraph lines, radio stations, wharves and other public structures.

11. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Repair and Maintenance of Government Vehicles – This includes the cost of repairing and maintaining government vehicles. Not included herein are spare parts, gasoline and oil which shall be under Supplies and Materials. 12. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Supplies and Materials – This includes the cost of all expendable commodities acquired or ordered for immediate use in connection with government operations.  Office Supplies Expenses  Medical, Dental and Laboratory Supplies Expenses  Military, Police and Traffic Supplies Expenses  School Supplies Expenses  Fuel, Oil and Lubricants Expenses  Maintenance Supplies Expenses  Other Supplies Expenses and other expendable property consumed in a function, activity or office. 13. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Rents – This includes charges for the use of facilities or equipment belonging to others. Examples of these facilities and equipment: offices and grounds, quarters of personnel, arsenal, barracks, warehouses, schoolhouses, office machines, road and other maintenance equipment. 14. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Grants, Subsidies and Contributions – This includes all aids and contributions in the form of cash or property granted to people, entities or organizations for the purpose of furthering programs or policies adjudged to be in the interest of the government. Examples are: aid for educational purposes, for public health and sanitation and for construction, aid to cultural minorities and contributions to economic development projects. 15. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Water, Illumination and Power Services – This includes the cost of water and electricity or gas illumination consumed in government facilities. 16. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Fidelity Bond and Insurance s – This includes expenses for s on fidelity bond of able officials and insurance s of government properties such as government buildings, equipments, motor vehicles etc. 17. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Other services – This includes the cost of all other services which are not otherwise classified under other s. Examples are: repairs and maintenance of equipment when done by other government agencies or by private contractors; printing and binding; subscription, money order fees, meal and transportation or motor vehicle allowance for overtime work and election expenses. 18. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)  Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, g and then cashing the cheque.

8. Department of Budget and Management (DBM) – is the department responsible for the planning and implementation of the National Budget for the sound utilization of government funds in achieving the national government’s agenda on reform and growth. The DBM is tasked to monitor all government allotments and appropriations through maintenance of registries for better control and monitoring. 9. Commission on Audit (COA) - as mandated by the 1987 Constitution, the COA shall have the exclusive authority to - do audit and examination, establish audit techniques, implement ing rules and regulations, that includes disallowances on the use of government funds and properties. 10. The Bureau of Treasury or BTr is one of four bureaus under the Philippines' Department of Finance. The BTr is mandated to 1) assist in the formulation of policies on borrowing, investment and capital market development; 2) formulate adequate operational guidelines for fiscal and financial policies; 3) assist in the preparation by government agencies concerned of an annual program, for revenue and expenditure targets, borrowing levels and cash balances of National Government; 4) maintain books of s of the NG cash transactions; 5) manage cash resources of NG, collect advances made, and guarantee and forward cover fees due NG; 6) control and service NG public debt, both foreign and domestic; 7) issue, service, redeem government securities for of NG as may be authorized by the President pursuant to law. The bureau is presently headed by the Treasurer, Omar T. Cruz.

11. Objectives of Government ing 

To produce relevant financial information about past and present transactions of government.

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To serve as a basis for decision making for future operations

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To serve as the control mechanism for the receipt, disposition and utilization of government funds and properties

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To come up with financial reports pertaining to the results of operations of various government agencies that are for dissemination to the public.

12. Coding System

13. A Government-owned and controlled corporation (GOCC), sometimes with an "and/or", is a term in the Philippines used to describe government-owned corporations that conduct both commercial and non-commercial activity. Examples of the latter would be the Government Service Insurance System, a social security system for government employees. There are over 200 GOCCs.[2] GOCCs both receive subsidies and pay dividends to the national government.