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• Public borrowing


  Also known as government borrowing or public debt, refers to the process through which a government raises funds from various sources to finance its expenditures when its revenue is insufficient to cover its expenses
• Public borrowing


  1. Governments borrow money by issuing bonds or other debt instruments to investors, financial institutions, or other governments

  2. Investors purchase these bonds, effectively lending money to the government

  3. The government then repays the borrowed funds along with interest over the specified period
• Public borrowing


  • Serves various purposes, including funding infrastructure projects, social welfare programs, defense spending, and other government initiatives
  • Governments may resort to borrowing when taxation revenue is insufficient or during times of economic downturn when tax revenues decrease, and expenditure needs increase
• Debt management


  The strategic planning and implementation of policies and practices aimed at effectively managing a government's or an organization's debt portfolio
• State accounting typically refers to the financial management and reporting practices carried out by government entities at the state level
• State accounting


  • Ensures transparency, accountability, and compliance with regulations and laws governing the use of public funds
  • State accountants are responsible for managing budgets, processing payments, maintaining financial records, preparing financial reports, and ensuring that funds are allocated and spent in accordance with legal requirements
• Nature of state accounting

  • Public Accountability
  • Legal and Regulatory Framework
  • Budgetary Control
  • Fund Accounting
  • Reporting and Transparency
  • Government Accounting Standards
  • Interplay with Politics
• Elements of Financial Statement


  • Balance sheet
  • Statement of operation
• Government financial reports


  Provide information on the financial position and performance of government entities, made available to the public to ensure transparency and accountability
• Government Accounting Standards


  • State accounting follows governmental accounting standards, which are specifically tailored to the unique needs and characteristics of government entities
  • Provide guidance on accounting for taxes, grants, and other government transactions
• Interplay with Politics


  State accounting may be influenced by political considerations, as government decisions on budgeting, spending, and reporting can be influenced by political priorities and agendas
• The nature of state accounting reflects the unique role of government entities in managing public funds and serving the interests of the public
• Elements of Financial Statement

  • Balance sheet
  • Statement of operation
  • Statement of changes in residual equity
• Books of Accounts


  • Accounts are the records kept for each type of asset, liability or the residual equity/surplus and capital
  • Books of original entry - journals or records for classifying and recording transactions in chronological order
  • Books of final entry - ledgers or records for classifying and summarizing the effects of transactions on individual accounts
• Financial Report


  Prepared by the agencies based on trial balances and financial statements
• Internal control


  • A system to ensure that funds are utilized only for legal purposes and are expended in compliance with rules and regulations
  • The plan of organization and all the coordinate methods and measures adopted within an organization to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage compliance with prescribed policies and regulations
• Electronic New Government Accounting System (e-NGAS)


  A computerized program of the New Government Accounting System wherein budget transaction, allotments and obligations are recorded and monitored electronically
• State audit is an ancient and respected branch of state administration, evolved from the need for good government, and became closely intertwined with modern government and public accountability
• Auditing


  A systematic process of obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested user
• Accounting


  Concerned with constructing from a mass of transactions entered by a firm or agency during a certain period, financial statements, results of transactions (in terms of profit and loss), and current financial position, through interpretation, summarization, and compilation of information
• Auditing


  • Primarily concerned with analyzing whether the financial statements reasonably represent the results of the agency's operations
  • Accounting is constructive, auditing is analytical
• Kinds of Audit


  • Financial Auditing
  • Performance Auditing
  • Internal Audit
  • External Auditing
  • Pre-Auditing
  • Post-Auditing
• Four Types of Audit Opinion

  • Unqualified Opinion
  • Qualified Opinion
  • Adverse Opinion
  • Disclaimer
• Limitations on COA Report

  • Timeliness
  • Completeness
  • Availability
  • Contestability of findings
  • Feasibility of recommendations
  • Conflict of interest
• Government Accountability Agencies

  • Office of the Ombudsman
  • Sandiganbayan
  • Philippine Anti-Graft Commission
  • Civil Service Commission
• Government-Owned and Controlled Corporation (GOCC)


  A type of entity that is established and wholly or partly owned by a government, operating with a degree of autonomy but ultimately accountable to the government, involved in various sectors such as infrastructure, utilities, transportation, finance, and healthcare
• Purposes of GOCCs

  • Provision of Essential Services
  • Economic Development
  • Regulatory Functions
  • Revenue Generation
  • Social Welfare
  • Stabilization of Markets
• Familiarize the logos of the different GOCCs listed above
• Drawbacks or risks of Public Borrowing DSC, COPI, FV, RFS, I-g EC, Ctwrthns a MP, IP