THE GOVERNMENT ACCOUNTING PROCESS  Separate RAOD shall be maintained for each object of expenditure.

Introduction Object of Expenditures

The government accounting process comprises the activities of analyzing, recording, classifying,
The classifications of expenditures by object are as follows:
summarizing and communicating transactions involving the receipt and disposition of government
a. Personnel Services (PS) – pertain to all types of employee benefits, e.g.,
funds and property, and interpreting the result thereof. This process is similar to that of a business
salaries, bonuses, allowances, cash gifts, etc.
entity, except that it incorporates budgetary controls, such as recording in the budget registries and
b. Maintenance and Other Operating Expenses (MOOE) – pertain to various
preparing periodic budget accountability reports.
operating expenses other than employee benefits and financial expenses,
e.g., travel, utilities, supplies, etc.
Books of Accounts and Registries c. Financial expenses (FE) - pertain to finance costs, E.g., interest expense,
The books of accounts and registries of government entities consist of: bank charges, etc. Financial expenses also include losses on foreign
1. Journals exchange transactions.
a. General Journal d. Capital Outlays (CO) – pertain to capitalizable expenditures, e.g.
b. Cash Receipts Journal expenditures on the construction of public infrastructures, acquisition costs
c. Cash Disbursements Journal of equipment, etc.
d. Check Disbursements Journal See chart of accounts found in GAM for NGAs volume II for list of account titles included in the aforementioned
classification of expenditures.
2. Ledgers
a. General Ledgers
 Accordingly, the separate RAODs shall be maintained: (a) RAOD –PS; (b) RAOD-
b. Subsidiary Ledgers
MOOE; (c) RAOD- FE; and (d) RAOD- CO.
3. Registries
a. Registries of Revenue and Other Receipts (RROR)
4. Registries of Budget, Utilization and Disbursements (RBUD)- used to record the approved
b. Registry of Appropriations and Allotments (RAPAL)
special budget and the corresponding utilizations and disbursements charged to retained
c. Registries of Allotments, Obligations and Disbursements (RAOD)
income. Separate RBUDs are also maintained for each object of expenditure, i.e., (a) RBUD-
d. Registries of Budget, Utilization and Disbursements (RBUD)
PS; (b) RBUD- MOOE; (c) RBUD- FE and (d) RBUD- CO.
Technically, only the Journals and Ledgers are considered accounting records. These are similar to
Keeping of the General Accounts
the accounting records of a business entity. The Registries are budget records. These are used to
The COA shall keep the general accounts of the Government and preserve the vouchers and other
monitor the budget. You may think of the registries like “logbooks” or something, rather than
supporting documents.
accounting books with debit and credit columns. The accounting unit of the agency maintains the
Journals and Ledgers while the budget division of the agency maintains the Registries.
Incurrence of Obligation
 Obligation Request and Status (ORS)
Budget Registries
Obligation shall be incurred through the issuance of Obligation Request and Status (ORS). The
1. Registries of Revenue and Other Receipts (RROR) – used to monitor the budgeted amounts,
Requesting Office shall prepare this document, supported by valid claim documents like
actual collections and remittances of revenue and other receipts.
disbursement vouchers, payrolls, purchase/job orders, itinerary of travel, etc.
2. Registry of Appropriations and Allotments (RAPAL) – used to monitor appropriations and
o The Head of the Requesting Office shall certify the necessity and legality of the
allotments. This is to ensure that allotments will not exceed appropriations.
obligation and the validity of the supporting documents.
3. Registries of Allotments, Obligations and Disbursements (RAOD) – used to monitor the
o The Head of the Budget Division shall certify the availability of the allotment.
allotments received, obligations incurred against the corresponding allotment, and the
actual disbursements made. This is to ensure that obligations incurred will not exceed
 Notice of Obligation Request and Status Adjustment (NORSA)
allotments while actual disbursements will not exceed the obligations incurred.
If the obligations recorded in the RAOD and ORS need to be adjusted, the subsequent adjustment 2. Allotment
shall be made through the use of the Notice of Obligation Request and Status Adjustment (NORSA). 3. Incurrence of Obligation
The adjustment shall be effected through a positive entry (addition) or a negative entry (reduction), 4. Disbursement Authority- NCA
as appropriate. 5. Disbursements
6. Billings, Collections & Remittances
TAX REMITTANCE ADVICE 7. Unadjusted Trial Balance
The Tax Remittance Advice (TRA) is used to recognize: 8. Adjusting entries
a. In the books of government agencies, the constructive remittance of taxes withheld to the 9. Closing Entries
Bureau of Internal Revenue (BIR) or customs duties withheld to the Bureau of Customs (BOC), 10. Preparation of Financial statements
and constructive receipt of NCA for those taxes and customs duties.
b. In the books of the BIR and BOC, the constructive receipt of tax revenue and customs duties; and
c. In the books of the BTr, the constructive receipt of the taxes and customs duties remitted. (source: Government Accounting and Non profit organization by Millan, and GAM for NGAS)

 See GAM FOR NGAs volume III for Description of accounts.

For basic recording of transaction,

read Illustrative entries found in GAM for NGAs on page 406 onwards together with
A. Adjusting entries which include:
1. Reversion of Unused Notice of Cash Allocation (NCA)
2. Depreciation Expense and
3. Allowance for impairment on accounts receivable

B. Pre-closing trial balance

C. Closing Entries

D. Post- Closing Trial Balance

The Government Accounting Cycle

1. Appropriation