New Government Accounting Method In The Philippines (NGAS)


Accounting is an efficient instrument of administration in evaluating the performance of the distinct businesses of federal government. The overall performance of the general public managers would count at most, on financial studies created by the use of accounting systems.

Cognizant of this require, a new accounting system wants to be created that would help the distinct agencies to hit on economic targets, and at the exact same time be recognized by all users of economic reviews.

With this new advancement, the Fee on Audit (COA), below the new 1987 Structure, promulgated the New Govt Accounting Technique in the Philippines (NGAs) for use by all govt companies.

The shift to NGAs was produced in response to the pursuing need to have:

one. infor sunsystem of an accounting system that is in conformity with the Worldwide Accounting Requirements.

2. Computerization of the accounting systems to create studies that will be easy to realize by the general community.

3. Preparation of standard and routinary financial stories.

four. The use of the produced economic stories as resources of administration in decision creating.

Govt Accounting – Described

Underneath Part 109, of the Presidential Decree (PD) no. 1445, defines Authorities Accounting as one that encompasses the method of analyzing, classifying, summarizing and speaking all transactions that are involved in the receipt and disbursement of all government resources and houses, and deciphering the benefits thereof. In pursuant to this definition, objectives were set to go over several areas in government functions.

Objectives of Govt Accounting

one. To make appropriate financial details about previous and existing transactions of authorities.

two. To serve as foundation for choice producing for long term operations

3. To provide as the control mechanism for the receipt, disposition and utilization of govt money and qualities

4. To appear up with economic reports pertaining to the benefits of operations of various authorities agencies that are for dissemination to the community.


The need for well timed preparing of economic reviews in federal government is essential to assess the overall performance of the diverse businesses of federal government. The result of the reviews would point out the places that may still need enhancement, as effectively as come up with the budgetary demands for these agencies if required.

Public officers are professionals of funds, that are entrusted to them by the nationwide authorities. The economic reports would evidently display if the agencies are attaining what is mandated of them. These reviews would also show the extent in the use of company belongings and methods, as nicely as the want for additional infusion of money if required

The accounting info would show how the resources of government were used. This would also expose the inflow and outflow of money and the need to have for stiffer fund management and handle, if necessary.

On Accounting Obligation

This fiscal obligation emanates from the Constitution and its governing laws, guidelines and promulgation. The mandate as recommended below the said Structure of the Philippines phone calls for the maintaining of the general accounts, as well as the promulgation and submission of economic reviews that would protect the operations of government.

The government officers that are mandated to discharge the earlier mentioned-mentioned Accounting duties are the Commission on Audit (COA), the Section of Funds and Administration (DBM) and the Bureau of Treasury (BTr) – to discharge the features of govt in consonance with its motivation to all Filipinos.