Accounting is an powerful tool of administration in evaluating the efficiency of the different agencies of authorities. The performance of the community professionals would count at most, on financial stories created by the use of accounting programs.
Cognizant of this require, a new accounting method needs to be created that would aid the different organizations to strike on fiscal targets, and at the same time be comprehended by all customers of monetary stories.
With this new development, the Fee 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 created in reaction to the pursuing require:
1. Adoption of an accounting program that is in conformity with the International Accounting Specifications.
2. Computerization of the accounting methods to create reports that will be simple to comprehend by the common general public.
three. Preparing of regular and routinary fiscal reports.
four. The use of the created financial studies as instruments of management in selection creating.
Authorities Accounting – Defined
Below Part 109, of the Presidential Decree (PD) no. 1445, defines Federal government Accounting as 1 that encompasses the method of examining, classifying, summarizing and speaking all transactions that are associated in the receipt and disbursement of all govt money and properties, and interpreting the results thereof. In pursuant to this definition, goals ended up set to include a number of areas in government functions.
Targets of Govt Accounting
1. To produce pertinent monetary details about previous and present transactions of authorities.
two. To provide as foundation for determination generating for potential operations
3. To provide as the handle system for the receipt, disposition and utilization of government cash and qualities
four. To arrive up with fiscal reviews pertaining to the final results of functions of various authorities organizations that are for dissemination to the community.
The require for timely preparing of financial reviews in govt is required to consider the performance of the different companies of authorities. The consequence of the reviews would show the places that may possibly nevertheless need advancement, as properly as occur up with the budgetary specifications for these organizations if needed.
General public officers are professionals of cash, that are entrusted to them by the countrywide government. The fiscal reviews would plainly show if the businesses are obtaining what is mandated of them. These studies would also show the extent in the use of company belongings and methods, as well as the need to have for added infusion of money if essential
The accounting info would display how the funds of govt have been used. This would also reveal the influx and outflow of cash and the need for stiffer fund management and management, if essential.
On Accounting Duty
This fiscal responsibility emanates from the Structure and its governing laws, policies and promulgation. The mandate as recommended under the mentioned Structure of the Philippines calls for the trying to keep of the common accounts, as nicely as the promulgation and submission of fiscal reports that would cover the operations of federal government.
The government officers that are mandated to discharge the above-mentioned Accounting duties are the Commission on Audit (COA), the Section of Budget and Administration (DBM) and the Bureau of Treasury (BTr) – to discharge the functions of authorities in consonance with its commitment to all Filipinos.