THE

GOVERMENT
ACCOUNTING
PROCESS

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A PRESENTATION BY KESSIE JUDYAWON, MYRRH NUNCIO, THEA BOMBAES, CRISTHELL SACUPAYO, AND HAZELLE ATON
Back to Agenda
ENUMERATE THE ACCOUNTING
PROCESS/CYCLE

Back to Agenda
 THE
GOVERMENT
ACCOUNTING
PROCESS

Information available in audio.

A PRESENTATION BY KESSIE JUDYAWON, MYRRH NUNCIO, THEA BOMBAES, CRISTHELL SACUPAYO, AND HAZELLE ATON
 Books of Accounts and Registries
1. Journals
a. General Journal
b. Cash Receipt Journal
c. Cash Disbursement Journal
d. Check Disbursement Journal
2. Ledgers
a. General Ledgers
b. Subsidiary Ledgers
3. Registries
1. Registries of Revenue and Other Receipts (RROR)
- Used to monitor. the budgeted amounts, actual collections, and
remittances of revenue and other receipts
RROR- Summary
RROR-Regular Agencies and Foreign assisted Project Funds
RROR- Special Account Locally
Funded/Domestic Grans Fund and Special Account Foreign Assisted/Foreign
Grants
RROR- Internally Generated Funds/Business
Related Funds
RROR- Trust Receipts/Inter-agency Transferred Funds
3. Registries
2. Registry of Appropriations and Allotments (RAPAL)
- Used to monitor appropriations and allotments.
3. Registries of Allotments, Obligations and
Disbursements (RAOD)
- Used to monitor the allotment received, obligations
incurred against the corresponding allotment,
and the actual disbursements made.
OBJECT OF EXPENDITURES
a. Personnel Services (PS)
– Pertain to all types of employee benefits.
.
b. Maintenance and Other Operating Expenses (MOOE)
– Pertain to various operating expenses other than
employee benefits and financial expenses.
c. Financial Expenses (FE)
– Pertain to finance costs,
d. Capital Outlays (CO)
– Pertains to capitalizable expenditures
3. Registries
4. Registries of Budget, Utilization and Disbursements
(RBUD)
- Used to record the approved special budget and
corresponding utilizations and disbursements charged to
retained income.
Separate RBUD shall be maintained for each object of
expenditure.
RBUD - PS
RBUD – MOOE
RBUD – FE
RBUD - CO
3. Registries

5. Registry of Allotments and Notice Cash Allocation

(RANCA)

6. Registry of Allotments and Notice of Transfer

Allocation (RANTA)
3. Registries

5. Registry of Allotments and Notice Cash Allocation

(RANCA)

6. Registry of Allotments and Notice of Transfer

Allocation (RANTA)
APPROPRIATION
Entity A (a government agency) receives its GAA consisting of
the following:
Personnel Services (PS) 100,000
Maintenance and Other Operating Expenses (MOOE) 60,000
Financial Expenses (FE) --
Capital Outlays (CO) 200,000
Total appropriations for the current year 2023 360,000
APPROPRIATION
Registries and Other Records Journal Entries

RAPAL None
ALLOTMENT
Entity A receives its allotment from the DBM consisting of the
following:
Personnel Services (PS) 90,000
Maintenance and Other Operating Expenses (MOOE) 40,000
Financial Expenses (FE) --
Capital Outlays (CO) 170,000
Total allotment for the current year 2023 300,000
ALLOTMENT

Registries and Other Records Journal Entries

RAPAL
RAOD-PS
None
RAOD-MOOE
RAOD-CO
RAPAL
RAOD
RAOD
RAOD
 Incurrence of obligation shall be
made through the issuance of ORS.
Prepared by the Requesting/
Obligation Originating office.
Request Head of the Requesting/ Originating
office shall certify as to the
Status
necessity and legality of charges to
the budget under his/her
supervision, and validity.
Incurrence of Obligations

Entity A enters into the following contracts:

PS - Employment Contracts (Job Order) amounting to 70,000

MOOE - Purchase contract for office supplies worth 25,000

CO - Purchase contract for office equipment worth 160,000

Incurrence of Obligations

Registries and Other Records Journal Entries

RAOD-PS
RAOD-MOOE
None
RAOD-CO
3 ORS
 Government Entity Business Entity

Obligations - is an act of duly

authorized official which binds the
government to the immediate or
Obligation is
eventual payment of a sum of
another term for
money. It may be referred to as a
liability.
commitment that encompasses
possible future liabilities based on
current contractual agreement.
Journal entries shall be made only after:
a. the employees have rendered services;
b. the office supplies are delivered and
received; and
c. the office equipment is delivered and
received.
RAOD
RAOD
RAOD
Notice of Obligation Request and Status Adjustment
(NORSA)

Use in adjusting obligations recorded in

RAOD and ORS.
The adustment shall be effected through
a positive entry (addition) or a negative
entry (reduction)
Notice of Cash Allocation

Entity A receives NCA from the DBM amounting to 200,000, net of tax

Registries
and Other Journal Entry
Records
RANCA Cash - MDS Regular 200,000

Subsidy from National Government 200,000

The registries use to monitor the NCA are the following:

a. Registry of Allotments and Notice of Cash Allocation

(RANCA)
used to determine the amount of allotments not covered by
NCA and to monitor the available balance of NCA.
b. Registry of Allotment and Notice of Transfer of
Allocation (RANTA)
used to determine the amount of allotments not covered by
Notice of Transfer of Allocation (NTA) and to monitor the
available balance of NTA.
I. JOURNALS
a. General Journal - used to record transactions not recorded in
the Special Journals.

Special Journals:
b. Cash Receipts Journal - used to record the Report of
Collection and Deposit and Cash Receipts Register of collecting
officers.

> Report of Collection and Deposit (RCD) - prepared by

collecting officer to report his/her collections and deposits
to an Authorized Government Depository Bank (AGDB).
 > Cash Receipts Register (CRReg) - used by field offices without a complete set
of books to record their cash collections and deposits in the books of their
mother unit (central/regional/division office).
c. Cash Disbursements Journal - used to record the cash disbursements of the
Disbursing Officer.
d. Check Disbursements Journal - used to record the check disbursements of the
Disbursing Officer.

II. LEDGERS
a. General Ledger - summarizes all transactions recorded in the journals. Accounts
in the general ledger are arranged according to their sequence in the Revised Chart
of Accounts.
b. Subsidiary Ledgers - show details of each control account in the general ledger.
General Journal & General Ledger
 Disbursements
Employees have rendered services and are now
entitled to compensation.
Posting of payable to the Section C of ORS Posting of disbursement to the payment column of
Section C of the ORS and Disbursement column of RAOD
 Remittance of Withholding Tax
Tax Remittance Advice (TRA)
The Tax Remittance Advice (TRA) is used to recognize:
a. In the books of government agencies, the constructive remittance of taxes withheld to the Bureau of Internal
Revenue (BIR) Or customs duties withheld to the Bureau of Customs (BOC), and the 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.
Billings,Collections,& Remittances
Reversion of Unused Notice of Cash
Allocation (NCA)
 REVISED CHART OF
ACCOUNTS

A Chart of Accounts is a list of

all the accounts used by an
entity. Government entities
shall use the account titles and
account codes in the Revised
Chart of Accounts issued
by COA
Back to Agenda
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Back to Agenda
 THE GOVERNMENT
ACCOUNTING CYCLE
1. APPROPRIATION
2. ALLOTMENT
3. INCURRENCE OF OBLIGATION
4. DISBURSEMENT AUTHORITY- NCA
5. DISBURSEMENTS
6. BILLINGS, COLLECTIONS &
REMITTANCES
7. UNADJUSTED TRIAL BALANCE
8. ADJUSTING ENTRIES
9. CLOSING ENTRIES
10. PREPARATION OF FINANCIAL
STATEMENTS
1. APPROPRIATION
T R A N S A C T I O N : E N T I T Y A R E C E I V E S I TS
G A A A M O U N T I N G T O P 1 ,0 0 0 , 0 0 0 .

THE APPROPRIATION IS POSTED

(RECORDED) IN THE REGISTRY
APPROPRIATIONS AND ALLOTMENTS
(RAPAL).
2. ALLOTMENT
T R A N S A C T I O N : E N T I T Y A R E C E I V E S I TS
A L L O T M E N T A M O U N T I N G TO $ 9 6 0 , 0 0 0
FROM DBM

THE ALLOTMENT IS POSTED REGISTRY OF

APPROPRIATIONS AND ALLOTMENTS
(RAPAL) AND REGISTRIES ALLOTMENTS,
OBLIGATIONS AND DISBURSEMENTS
(RAOD).
3. INCURRENCE OF OBLIGATION
 TRANSACTION: TRENTITY A INCURS
O B L I G A T I O N S A M O U N T I N G TO
P700,000.

THE OBLIGATIONS ARE RECORDED IN THE

OBLIGATION REQUEST AND STATUES (ORS)
DOCUMENTS AND REGISTRIES OF
ALLOTMENTS OBLIGATIONS AND
DISBURSEMENTS (RAOD)
 4 . D I S B U R S E M E N T A U T H O RI TY - N C A

A. FOR THE CURRENT YEAR’S

600,000
APPROPRIATION

B. FOR PRIOR YEAR’S ACCOUNTS

PAYABLE AND NOT YET DUE AND
25,000
DEMANDABLE OBLIGATIONS
5. DISBURSEMENTS
A. SET UP OF PAYABLE TO OFFICERS AND
EMPLOYEES UPON APPROVAL OF
PAYROLL.
1. PERSONAL SERVICES
A. PERSONAL SERVICES
B. THE PAYABLE IS RECORDED IN
THE ORS

C. GRANT OF CASH ADVANCE

FOR PAYROLL
D. THE DISBURSEMENT IS
RECORDED IN THE ORS AND
RAOD.

E . L I Q U I D A T I O N O F P A Y R O LL
FUND
II. MAINTENANCE AND OTHER
OPERATING EXPENSES (MOOE)
PURCHASE OF OFFICE SUPPLIES

A. RECEIPT OF DELIVERY OF OFFICE

S U P P L I E S F R O M P R I O R Y E A R ’ S O B L I G A TI O N

OFFICE SUPPLIES INVENTORY 5,000

ACCOUNTS PAYABLE 5,000
B . R E C E I P T O F D E L I V E R Y O F P UR C H A S E D
O F F I C E S U P P L I E S W O R T H 7 0 , 0 0 0 FR O M
C U R R E N T ’ S Y E A R O B L I G A TI O N

OFFICE SUPPLIES INVENTORY 5,000

ACCOUNTS PAYABLE 5,000
P A Y M E N T S O F A C C O U N T S P A Y A B LE

C . F R O M P R I O R Y E A R ’ S A C C O UN TS
PAYABLE
E. FROM PRIOR YEAR'S OBLIGATION
ACCOUNTS PAYABLE 5,000
DUE TO BIR 4,000
CASH- MODIFIED DISBURSEMENTS 1,OOO
SYSTEM (MDA) , REGULAR
E. FROM CURRENT YEAR’S ACCOUNTS PAYABLE
F. ENTITY A PAYS FOR THE FOLLOWING EXPENSES

WATER 1,000
ELECTRICITY 5,000
TELEPHONE 2,000
G. ENTITY A GRANTS A CASH
ADVANCE OF 2,000 FOR THE
TRAVELING EXPENSES OF AN
OFFICER
H. RECEIPT AND DEPOSIT OF
REFUND OF EXCESS CASH
ADVANCE
I. RECEIPT AND DEPOSIT OF
REFUND OF EXCESS CASH
ADVANCE.
 J. ENTITY A ISSUES OFFICE
S U P P L I E S W O R T H 6 3 ,0 0 0 TO E N D
USERS.

OFFICE SUPPLIES 63,000

OFFICE SUPPLIES INVENTORY 63,000
 III. CAPITAL OUTLAYS

A. RECEIPT OF DELIVERY OF PURCHASE OF F ICE

EQUIPMENT WORTH 300, 000 F ROM CU RRENT
YEAR’S OBLIGATION
A. RECEIPT OF DELIVERY OF PURCHASE OF F ICE
EQUIPMENT WORTH 300, 000 F ROM CU RRENT
YEAR’S OBLIGATION

OFFICE EQUIPMENT 300,000

ACCOUNTS PAYABLE 300, 000
IV. REMITTANCES OF AMOUNTS WITHHELD

A. ENTITY A REMITS THE TAX E WIT HHEL D

THROUGH TRA.
IV. REMITTANCES OF AMOUNTS WITHHELD

B. ENTITY A REMITS THE FOLLOWING T O T HE

GSIS, PAG-IBIG, AND PHIL-HEALT H
6. BILLINGS, COLLECTIONS, AND REM IT T ANCES
A. ENTITY A BILLS THE FOLLOWING
REVENUE/INCOME
6. BILLINGS, COLLECTIONS, AND REM IT T ANCES

B. ENTITY A COLLECTS 100, 000 ACCOUNTS

RECEIVABLE FROM BILLING ABOVE AND REM IT S
90,000 OF THE COLLECTION.
C. ENTITY A COLLECTS 45, 000 ACCOU NT S AND
RECEIVABLE FROM PRIOR YEAR’S BILLING AND
REMITS TOTAL COLLECTION
D. ENTITY A COLLECTS UNBIL LED SERVICE
INCOME OF 370, 000 AND REM IT S 340,000 OF
THE TOTAL COLLECTION
D. ENTITY A COLLECTS UNBIL LED SERVICE
INCOME OF 370, 000 AND REM IT S 340,000 OF
THE TOTAL COLLECTION

CASH-TREASURY/AGENCY DEPOSIT , REGULAR 34,000

CASH-COLLECTING OFFICERS 34,000
D. ENTITY A COLLECTS UNBIL LED SERVICE
INCOME OF 370, 000 AND REM IT S 340,000 OF
THE TOTAL COLLECTION

CASH-TREASURY/AGENCY DEPOSIT , REGULAR 34,000

CASH-COLLECTING OFFICERS 34,000
E. ENTITY A COLLECTS UNBIL LED T AX REVENUE
THROUGH DEPOSIT IN AUTHORIZED AGENT
BANKS

Back to Agenda
IV. UNADJUSTED TRIAL BALANCE
An unadjusted trial balance is a list of the accounts
in the General Ledger together with their balances.
Its purpose is to test the equality of total debits and
total credits in the accounts.

Before we can prepare the unadjusted trial

balance, we need to post first the journal entries
above in the General Ledger.
IV. ADJUSTING ENTRIES
1. Reversion of unused Notice of Cash
Allocation (NCA).
2. Depreciation Expense:
i. Buildings - P50,000
ii. Equipment - P30,000
3. Allowance for impairment on accounts
receivable of P2,000.
IV. CLOSING ENTRIES
1. Closing of “Cash-Treasury/Agency Deposit, Regular”
account to the “Accumulated Surplus (Deficit)” account.
2. Closing of “Subsidy from National Government” account
to the “Revenue and Expense Summary” account.
3. Closing of Income and Expense account to the “Revenue
and Expense Summary” account and closing of the
balance of “Revenue and Expense Summary” account to
the “Accumulated Surplus (Deficit)” account.
IV. PREPARATION OF FINANCIAL
STATEMENTS
 AUDIT OBSERVATION
Of the total misstatements of P43,912,539,529.60 found in audit due
to accounting errors, omissions, and improper accounting treatment
of transactions that are considered departures from International
Public Sector Accounting Standards (IPSAS), P7,258,370,945.24
have been adjusted, while P36,654,168,584.36 remained
uncorrected as at year-end. Hence, based on the material impact of
the uncorrected misstatements, the reported balances of the affected
accounts could not be fully relied upon which affected the fairness of
the financial statements of the DPWH as at December 31, 2022.
 AUDIT RECOMMENDATION (CCE)
We recommended and Management agreed to direct the Accountant
to prepare the necessary journal entries to adjust the balance of
affected accounts on the reversion/restoration of the unreleased and
stale checks in the amount of P23,664,443.79
REPORTERS RECOMMENDATION (CCE)
Conduct proper review of Bank Reconciliation Statements (BRS) to
check the correctness of both the bank’s and DPWH records.
 AUDIT RECOMMENDATION (PPE)
We recommended and Management of DPWH offices concerned
agreed to direct the Accountants to prepare the necessary adjusting
journal entries to correct the errors/non-provision for depreciation in
the aggregate amount of P7,534,517,953.46
REPORTERS RECOMMENDATION (PPE)
Monitor the accuracy of system-generated depreciation. If the current
system is no longer accurate, change the system to a new and
effective one. In addition, proper review should be done to ensure the
accuracy of the Financial Statements.
 THANK YOU
FOR LISTENING!