New Government Accounting System In The Philippines (NGAS)
Accounting is an effective tool of management in evaluating the performance of the different agencies of government. The performance of the public managers would depend at most, on financial reports generated by the use of accounting systems.
Cognizant of this need, a new accounting system needs to be developed that would help the different agencies to hit on financial targets, and at the same time be understood by all users of financial reports.
With this new development, the Commission on Audit (COA), under the new 1987 Constitution, promulgated the New Government Accounting System in the Philippines (NGAs) for use by all government agencies.
The shift to NGAs was made in response to the following need:
1. Adoption of an accounting system that is in conformity with the International Accounting Standards.
2. Computerization of the accounting systems to generate reports that will be easy to understand by the general public.
3. Preparation of regular and routinary financial reports.
4. The use of the generated financial reports as tools of management in decision making.
Government Accounting – Defined
Under Section 109, of the Presidential Decree (PD) no. 1445, defines Government Accounting as one that encompasses 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.
Objectives of Government Accounting
1. To produce relevant financial information about past and present transactions of government.
2. To serve as basis for decision making for future operations
3. To serve as the control mechanism for the receipt, disposition and utilization of government funds and properties
4. To come up with financial reports pertaining to the results of operations of various government agencies that are for dissemination to the public.
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 of them. These reports would also show the extent in the use of agency assets and resources, as well as the need for additional infusion of funds if required
The accounting 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, if necessary.
On Accounting Responsibility
This fiscal responsibility emanates from the Constitution and its governing laws, rules and promulgation. The mandate as prescribed under the said Constitution of the Philippines calls for the keeping of the general accounts, as well as the promulgation and submission of financial reports that would cover the operations of government.
The government officers that are mandated to discharge the above-stated Accounting responsibilities are the Commission on Audit (COA), the Department of Budget and Management (DBM) and the Bureau of Treasury (BTr) – to discharge the functions of government in consonance with its commitment to all Filipinos.