MANUAL ON THE
NEW GOVERNMENT ACCOUNTING SYSTEM
To get National Gov departments
Volume My spouse and i
Chapter 1 . Introduction
Objectives with the Manual. The New Government Accounting System (NGAS) Manual gives the basic policies and procedures; the new coding system; the accounting devices, books, registries, records, varieties, reports, and financial assertions; and illustrative accounting articles to be implemented by almost all national gov departments effective January 1, 2002. The goals of the Manual are to suggest the following:
a. Uniform recommendations and methods in accounting for govt funds and property; w. New coding structure and chart of accounts;
c. Accounting literature, registries, records, forms, information and monetary statements; and d. Accounting entries.
Insurance coverage. This Manual shall be used by all countrywide government agencies.
Legal Basis. This Manual is approved by the Percentage on Taxation pursuant to Article IX-D, Section 2 par. (2) of the 1987 Constitution with the Republic in the Philippines which offers that:
" The Commission in Audit shall have distinctive authority, be subject to the limitations in the following paragraphs, to determine the opportunity of its audit and examination, create the tactics and methods required consequently, and promulgate accounting and auditing rules, including individuals for the prevention and disallowance of irregular, unneeded, excessive, luxurious, or unconscionable expenditures, or uses of presidency funds and properties". (underscoring supplied)
Chapter 2 . Basic Features and Policies
Basic Features and Policies. The NGAS has got the following fundamental features and policies, to wit:
a. Accrual Accounting. A modified accrual basis of accounting shall be used. Under this process, all expenses shall be recognized when sustained and reported in the monetary statements in the period that they associate. Income will be on accrual basis except for transactions exactly where accrual basis is impractical or the moment other methods are required by law.
n. One Fund Concept. This method adopts one fund principle. Separate pay for accounting will be done only when specifically essential by law or perhaps by a subscriber agency or perhaps when or else necessitated by circumstances controlled by prior authorization of the Commission rate.
c. Chart of Accounts and Account Unique codes. A new data of accounts and coding structure using a three-digit consideration numbering system shall be used. (See Amount III, The Chart of Accounts)
d. Books of Accounts. All national firms shall maintain two units of catalogs, namely:
Regular Firm (RA) Ebooks. These will be used to record the receipt and usage of Notice of Cash Allocation (NCA) and other income/receipts which the agencies are official to use and deposit with Authorized Govt Depository Lender (AGDB) and the National Treasury. These shall consist of journals and ledgers, as follows:
вЂў Funds Receipts Log (CRJ)
вЂў Cash Disbursements Journal (CDJ)
вЂў Check Disbursements Diary (CkDJ)
вЂў General Journal (GJ)
вЂў Standard Ledger (GL)
вЂў Additional Ledgers (SL) for:
вќ– Property, Flower and Tools
вќ– Structure in Progress
National Government (NG) Ebooks. These will probably be used to record income that the agencies are generally not authorized to work with and are needed to be remitted to the Nationwide Treasury. These types of shall include:
вЂў Money Journal (CJ)
вЂў Basic Journal (GJ)
вЂў General Ledger (GL)
вЂў Part Ledger (SL)
With the setup of the...