Lecturing on the NGAS, Chairman Carague said it is a
simplified set of accounting concepts, guidelines and procedures designed to
ensure correctness, completeness, and timeliness in the recording of government financial transactions and production of financial reports.
Its basic features include the accrual accounting where the
modified accrual method of accounting is used. Under this method, all expenses
shall be recognized when incurred. Income shall be in accrual basis except for
transactions where accrual basis is impractical or when other methods are
required by law.
The new accounting system also adopts a one-fund concept
where separate accounting is done only when specifically required by law or by a
donor agency or when otherwise necessitated by circumstances subject to prior
approval by the Commission on Audit.
He said the rationale behind the formulation of the NGAS are
the need for the following:
- To make the system more in conformity with international
accounting standards;
- To pursue eventual computerization which will include
responsibility accounting to make it capable of generating various reports that
would be useful to the management, lawmakers, decision-makers and the general
public;
- To generate relevant and periodic financial statements,
operations reports; and
- To help government managers and executives in monitoring
the performance of their agency more effectively.
The other more important features of the NGAS include the
following prescriptions: Implementation of valuation accounting on receivables
and fixed assets accounts; establishment of coded responsibility centers or
cost centers for each government agency, including its regional offices.
Recording of the receipt of Notice of Cash Allocation; Use of
new account codes to facilitate computerization; Use of Journal Entry Voucher to
record all financial transactions of government; Maintenance of side records or
registries to control allotments and obligations; and Segregation of properties
for public use from books of the agency.
The following are the specific major changes under the new system:
Journal entries to record the receipt of appropriations and
allotments; Corollary journal entries; Negative Journal entries to effect
corrections; National Clearing Account; Four-money column trial balance;
Contingent Accounts,; Invested Capital Accounts; and Special Journals.
Besides Chairman Carague and Commissioners Flores and Dalman who are the
chair and vice chairs, respectively of the Government Accounting Simplification
and Computerization Committee, the other COA officials involved in the project
as committee members under Office Order No. 2001-314 dated June 14, 2001, are:
AsComs Emma M. Espina, Jorge HL Perez, Sofronio Flores, Jr., Directors Lourdes
Dimapilis, Flerida Creencia, Arcadio Cuenco, Felicitas C. Ona, Rosemarie Lerio
and Cornelia Ramos. Auditors Evelyn Abad and Eloisa Rosacay are team leaders
with Auditors Marietta Lorenzo, Cecilia Camon, Corazon Zaldivar, Perlegio S.
Paderes, Juanita Abe, Melanie Anonuevo, Myrna Barcelo, Olivia Zaldivar, Rebecca
Mesa, Raul Cabotage, Lourdes Cardenas, Roy Daluddung, Jubelyn P. Buenaluz, Ma.
Filomena Baccay, Vilma Sarino, Lolita Layugan, Armando Membrere, Ma. Adelina G.
Quitiviz, Myrna Resurreccion, Ella Estepa, Josephine Papa and Rosa dela Cruz as
members of the technical staff.
