Quiz #1

• Chief Accountant


  Certifies the availability of funds and completeness of supporting documents before the Head of Agency or his/her authorized representative can enter into contracts that obligate the government for the eventual payment of government funds
• Modified accrual basis of accounting in accordance with the PPSAS


  Not in accordance with the Basic Government Accounting and Budget Reporting Principles under the GAM for NGAs
• Secretary of Finance


  Not eligible to authorize the augmentation of appropriations for their respective offices from savings in other items of their respective appropriations
• Statement of changes in net assets/equity

  Does not report the effects of current period errors
• President


  Can authorize the transfer of appropriations when savings are available to augment specific items in the general appropriations law
• Judiciary Development Fund (JDF)

  80% for cost of living allowances, up to 20% for office equipment and facilities
• Commission on Audit (COA)


  Responsible for promulgating accounting and auditing rules and regulations
• President's Budget Message


  The President's explanation of the country's fiscal policy and budget priorities
• Special appropriations bill


  Must specify the purpose for which it is intended and be supported by certified funds actually available
• General Appropriations Act (GAA)


  Automatically reenacted and used for the current fiscal year if the Congress fails to enact the proposed budget before the start of the fiscal year
• Government Accounting


  Encompasses the processes of analyzing, recording, and classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results thereof
• National Government Agencies (NGAs)


  Directly implementing the projects of, and performing the functions delegated by, the government
• Basis of accounting required by the GAM for NGAs


  Accrual Basis/ Modified accrual basis
• Primary source of government revenue in the Philippines

  Income Tax/ Value-added tax (VAT)
• Department of Budget and Management


  Responsible for formulating the annual national budget in the Philippines
• Commission on Audit (COA)


  Promulgates the GAM for NGAs
• Zero-Based Budgeting (ZBB) approach in the Philippines


  To minimize government spending
• Monthly Report of Disbursement

  Submitted to the COA and DBM within 30 days after the end of each month
• Budget Appropriation/ Budget Earmarking


  The process of setting aside a portion of government revenues for specific purposes, such as debt repayment or infrastructure projects
• Cash-Modified Disbursement System (MDS) account

  Payments of checks that are chargeable against the Treasury Account are credited to
• Fiscal surplus


  The surplus of government revenues over expenditures in a fiscal year
• Entity Omega had insurance obligations of P180 million across all sectors, with disbursements amounting to P150 million. The percentage of the authorization that Entity Omega delegated to its subordinate units is 60%.
• Commission on Audit (COA)


  Legal basis for promulgating the GAM for NGAs is Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the Philippines
• Appropriation


  The process of assigning specific amounts to various government programs and activities
• John is absolved of liability since the loss of government funds occurred due to an unforeseen event (force majeure), regardless of the delay in notification to the COA
• Controllable cost


  Under responsibility accounting, a cost is considered controllable if the manager has the power to incur it
• 70% of the allocated funds were disbursed each month due to unforeseen economic challenges
• The recorded expense in the books of accounts is 8,000
• The GAM for NGAs does not aim to update the rules and regulations regarding the filing and payment of taxes by government employees
• Cash Disbursement Ceiling


  Authority issued by the DBM to agencies with foreign operations (e.g., DFA) allowing them to use the income collected by their Foreign Service Posts to cover their operating requirements
• Bottom-up budgeting


  An approach to budgeting where several parties participate in the budget preparation, starting from the lowest levels of the government up to the highest levels
• Entity Omega had incurred total obligations of P180 million across all sectors, with disbursements amounting to P150 million. The total amount of disbursements made by Entity Omega by the end of the first quarter was P150 million.
• Major recipients of the budget in the Philippines

  Department of Education (DepEd), Department of Health (DOH), and Department of Transportation (DOTr)
• Advice to Debit Account


  The mode of disbursement used by Entity A, a government entity, to make payments through bank transfer
• National budget of the Philippines


  Typically reviewed and approved annually
• Approved Budget


  The expenditure authority derived from appropriation laws, government ordinances, and other decisions related to the anticipated revenue or receipts for the budgetary period
• Legislative branch


  Has the authority to approve the national budget in the Philippines
• General Appropriations Act


  The law that governs the preparation, presentation, and review of the national budget in the Philippines
• Inefficiency measures leading to increased costs in service delivery do not result in savings under the General Appropriations Act (GAA)
• Entity Omega had incurred total obligations of P180 million across all sectors, with disbursements amounting to P150 million. The total budgetary allocation approved for Entity Omega for the fiscal year was P500 million.