ISSUES AND CONCERNS

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UPDATES ON ACCOUNTING
AGAP Technical Session
Davao City
October 17, 2008
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AGAP Theme
Achieving Financial Health The Objective of
Good Governance and Financial Reforms
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COA Vision
Promotion of good governance with the
attributes of honesty, transparency,
accountability, credibility, efficiency and
effectiveness to enhance trust in the government
and foster a better quality of life for the
Filipino people.   
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Mandated Accounting Functions of COA
(Article IX-D 1987 Philippine Constitution)

• Promulgate accounting rules and regulations

• Keep the general accounts of government and

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Mandated Accounting Functions of COA
(Article IX-D 1987 Philippine Constitution)

• Submit to the President and Congress an annual
  report on the financial condition and operation
  of the Government, its subdivisions, agencies,
  and instrumentalities, including government-owned
  or controlled corporations, and recommend
  measures necessary to improve their effectiveness
  and efficiency.

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On AFR Preparation

NATIONAL GOVERNMENT AGENCIES Trial
Balances and Financial Statements CY 2007
No of Agencies - 328
Target No. of Reports - 436 Total
Received - 433 or 99.3
Received as of 2/14/08 - 66 or
15.1 Received after 2/14/08 - 367
or 84.2 Not Received
- 3 or 0.7
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On AFR Preparation
LOCAL GOVERNMENT UNITS (Provinces,
Cities and Municipalities) Trial Balances and
Financial Statements
CY 2007 Number of LGUs
- 1,711 Target No. of Reports
- 5,099 Total Received
- 4,961 or 97 Received as of 2/14/08
- 301 or 6 Received after 2/14/08
- 4,660 or 91 Not Received
- 138 or 3

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On AFR Preparation
LOCAL GOVERNMENTS (Barangays)
Trial Balances and Financial Statements
CY 2007 Target
No. of Reports - 41,995 Total
Received - 21,568 or
51.4 OGAS Reports -
5,743 or 13.7 NGAS Reports
- 15,825 or 37.7 Not Received
- 20,427 or 48.6
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On AFR Preparation

• GOCCs
• 2007 Financial
  Statements
• Number of Agencies - Corporations - 147
• Water
  Districts - 458
• Target No. of Reports
  - 605
• Total Received - 417
  or 69
• Received as of 2/14/08 - 18 or
  3
• Received after 2/14/08 - 399 or
  66
• Not Received - 188
  or 31

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Annual Financial Reports

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Highlights of the FY 2007
BALANCE SHEET
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BALANCE SHEET
National Government
ASSETS - P2,632.70 B LIABILITIES -
4,055.68 B EQUITY - (1,422.98 B)
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NG Assets, Liabilities and Equity (in billion
pesos)
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BALANCE SHEET
ASSETS - P479.11 B LIABILITIES -
136.09 B EQUITY - 343.02 B
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LGUs Comparative Assets, Liabilities and
Equity (in billion pesos)
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BALANCE SHEET
ASSETS - P504.44 B LIABILITIES -
137.67 B EQUITY - 366.77 B
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BALANCE SHEET
ASSETS - P25.33 B LIABILITIES -
1.58 B EQUITY - 23.75 B
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BALANCE SHEET
GOCCs
ASSETS - P4,931.28 B LIABILITIES -
4,010.94 B EQUITY - 920.34 B
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GOCCs Comparative Components of Balance Sheet (in
billion pesos)
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STATEMENT OF INCOME AND EXPENSES
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Statement of Income and Expenses
National Government
REVENUE/INCOME - P1,159.98 B EXPENSES
- 762.53 B NET SUBSIDY -
(260.54 B) NET GAIN -
171.90 B NET INCOME - 308.81 B
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Composition of Revenue/IncomeBy Source and By
Collecting Agent
Composition of Expenses by Class (in billion
pesos)
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Statement of Income and Expenses
REVENUE/INCOME - P234.81 B EXPENSES
- 194.79 B NET INCOME - 40.02
B
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Comparative Breakdown of Operating Income and
Expenses by Unit (in billion pesos)
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Statement of Income and Expenses
REVENUE/INCOME - P16.95 B EXPENSES
- 14.83 B NET INCOME - 2.12 B
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Statement of Income and Expenses
GOCCs
REVENUE/INCOME - P810.38 B SHARE OF NG
- 11.29 B EXPENSES -
619.32 B SUBSIDIES - 13.61 B
TAXES - 12.86 B NET
INCOME - 180.53 B
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CASH IN BANK BALANCES

• National Government
• Local Currency - P133.38B
• Foreign Currency - 19.48B
• Sub-total P152.86B
• Cash in BSP 52.24B
• Total P205.10B

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CASH IN BANK BALANCES

• National Government - P205.10B
• Local Governments - 72.88B
• GOCCs - 77.64B
• Grand Total P355.62B

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Cash Advances by Sector (in million pesos)
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Accounts Payable and Inter-agency Payables, by
Sector (in million pesos)
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Accounts Payable and Inter-agency Payables, by
Sector (in million pesos)
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ISSUES AND CONCERNS

• 1. Non Reconciliation of Reciprocal
  Accounts

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• a. NGAs following a decentralized accounting
  procedures showed unreconciled reciprocal
  accounts as shown in these balances

RO/OU Books Subsidy from CO Subsidy from
RO Due to CO Due to ROs

Central Office Books Subsidy to ROs Subsidy to
OUs Due from ROs Due from OUs
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• b. Three sectors have different balances for
  accounts subsisting between and among NGAs, LGUs,
  and GOCCs

NGAs Subsidy to GOCCs
GOCCs Subsidy from NGAs
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• b. Three sectors have different balances for
  accounts subsisting between and among NGAs, LGUs,
  and GOCCs

LGUs Subsidy from NGAs
NGAs Subsidy to LGUs
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• Reciprocal Accounts
• Due from NGAs - Due to NGAs
• Due from LGUs - Due to LGUs
• Due from - Due to
• GOCCs GOCCs

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2. Submission of required Financial Reports
within deadline - TBs/FS/SCF/SGE/Reports
- SAOB/SAAOB

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- Quarterly Statement on Allotments,
Obligations and Balances
Annex A (Required per RA 7226
GAA Gen. Prov.) Target -
11,849 Total Received -
7,996 or 67.48 Received as of 3/31/08 -
5,747 or 48.50
Received after 3/31/08 - 2,249 or 18.98

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- Quarterly Statement on Obligations,
Disbursements and Balances

Annex B Target - 11,849 Total
Received - 7,724 or 65.19 Received as of
3/31/08 - 5,492 or 46.35 Received after 3/31/08
- 2,232 or 18.84
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3. Need for reconciliation of allotment releases
between COA and Agencies

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- Summary of Allotments by ABM/SARO -
SAOB per agency and COA records

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Accounting Developments

• Harmonization of PGAS with International Public
  Sector Accounting Standards (IPSAS)

- COA TWG to submit outputs by Feb.
2009
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Accounting Developments

• Revisit of NGAS Manuals

• Enhancement of e-NGAS

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Thank you and