Essays /

The New Government Accounting System Issues Essay

Essay preview

The New Government Accounting System: Issues in Public Audit 1 Introduction Historically, the growth of government auditing and accounting in the Philippines was greatly influenced by the administrative practices in the United States, so much so that during the time that the General Accounting Office in the United States was responsible for the government’s accounting, that concept was similarly introduced in the Philippines. Unfortunately, by the time the practice was abandoned in the United States in favor of a better system, the Philippines has then become independent and hence the change was not followed here.2 COA Promulgates New Accounting System Unlike in the United States where accounting standards are formulated by the Federal Accounting Standards Advisory Board (FASAB) and subsequently enacted into law, such as the Federal Financial Management Act of 19963, the Philippines new government accounting system was formulated almost single-handedly by a team of highly professional and competent COA officials in only a span of four months4. Parenthetically, the FASAB is the standard-setting body in the U.S. composed of the Secretary of the Treasury, the Director of the Office of Management and Budget, and the Comptroller General, which body is also recognized by the American Institute of Certified Public Accountants as the official board that promulgates generally accepted accounting principles (GAAP) for federal entities.5 Thus, invoking the 1987 Constitution of the Philippines which vests the Commission on Audit with the exclusive authority to promulgate accounting and auditing rules and regulations, the COA promulgated COA Circular No. 2001-004 prescribing a New Government Accounting System (NGAS) for national government agencies, and COA Circular No. 2001-005 for local government units, to take effect January 1, 2002. Subsequently, COA Circular No. 2002-002 was issued prescribing the Manual on the NGAS. In the Foreword to the Manual the need to revamp the old accounting system was justified as follows: “After almost five decades of faithful adherence to the rigid and complicated government accounting procedures designed by foreign consultants, the Commission on Audit, based on the authority granted under Sec. 2 (2), Art. IX-D of the 1987 Constitution, made a sweeping revamp of the existing government acc...

Read more


-002 -004 -005 -07 -162 000 01 07.25.07 1 113 116 116422 117 1376 13768 1445 1957 1978 1987 1996 19963 2 2001 2002 2006 2007 215 239 25 3 3.29 30 31 4 5 563 6 7 8 9 abandon abil abridg accept account act actual adher administ administr admit advic advisori agenc al allen almost also amend american among analog and/or answer appear apprais approv arguendo argument art articl aspect assist assum attempt atti audit audite auditor author authorit b base basi becom better beyond board bodi book booz branch britannica budget budgetari c caragu case caution cd center certain certifi chairman chang circular cite clarifi classif clear clearer coa coa9 code commend commiss commission committe compet complic compon compos comptrol comput computer concept concern confer congress consid consist constitut constitution6 consult cont contain continu control correct council cours court creat current d deal debt dec decad decis defeat defin definit deleg delin depart derog deserv design detail develop devis direct director disqualif distinct doubt drastic dynam e effect either embodi emphasi empow enact encroach encyclopedia enforc enlarg entiti entities.5 entitl enumer environ essenc establish et exceed excerpt exclus execut exercis exist expenditur explain extend extern face fact faith fasab favor feder field financi fine first five follow foreign foreword form former formul four full function g g.r gaa gaap gao general given goe govern grant great group growth guillermo hand head held henc here.2 high histor histori howev ignor illeg imagin impair impeach implement import impos includ inconsist independ indict influenc inform instal institut intend interact interdepend intergovernment introduc introduct invok issu issuanc ital item ix ix-a ix-d januari joint journal justifi keep know knowledg law legal legisl limit line local made make manag mandat mani manual materi matter may measur mechan meet mention mere method mileston minimum monograph month months4 monument moreov much must n nation need new ngas nonaudit nonetheless noth nov number oblig octob offer offic offici old one oper organ organiz other overal overarch overrid p.d paper paragraph paramount parenthet particular penal penalti perform period permit peso philippin point polici posit possibl power practic precept precis prepar prescrib primari principl prioriti prision privi probabl procedur profession promulg proper proscrib prospect provid provis public punish purpos quot recogn refer reform regul regular relat relianc rendit repeal report requir respect respons restructur result revamp revenu revis rigid rule rule-mak safeti said scope sec second secretari section see seri servic set shall signific similar simplif simultan singl single-hand sofronio span special ssc standard standard-set state statement statut statutori steer step strateg stretch studi subject subsequ suit supervis suppli support suprem suspend sweep synonym system take tantamount task team technic temporari term thereof third though thus time total treasuri u.s ultim undertak undertaken unfortun unifi unit unlik unpublish updat uphold upon ursal use usurp v vest violat vis vis-à-vi viz volum warn well whether whole wide word would writer written yet à