The New Government Accounting System (NGAs)

700 WordsApr 23, 20193 Pages
The New Government Accounting System (NGAs) was introduced in January 1, 2002 to simplify the recording of government transactions and generate financial statements that are reflective of the government’s true state of affairs. The old system was done manually and was prone to material errors in recording and journalizing. In addition, the manual system was ineffective in providing financial information in a timely manner, and therefore more difficult to use for decision making. With computerization, and the adoption of NGAs, recording of transactions became easier and updates to financial reports, faster. What comes out are relevant financial statements that are easy to understand and more reflective of the agency’s operation.…show more content…
Composition of the National Budget The national budget is composed of the funding requirements of all agencies, operations, and activities that are needed to run the government. The budget is submitted by the President of the Philippines to the House of Congress for deliberation and approval on the basis on the GAA, within 30 days upon the opening of the regular session. It shall be presented to the house in a form approved by the President and may contain the following features: • A brief budget message stating the programmes of government for the year, the national economic goals, impact of expenditures to economic activity, funding proposals and debt ceiling, and • Financial Statements that show: a. Appropriations for expenditures to support government programs and the funding sources from revenues generated and from borrowings; b. Estimated receipts/revenues in the coming year; c. Prior years’ actual expenditure, receipts, and appropriations; d. Estimated expenditures and receipts for projects that are work in progress during the fiscal year; e. Financial condition of the National Treasury during the current and the ensuing fiscal year. Principles behind Budget Operations The preparation of budgets are governed by the fundamental laws of the land : • No money shall be paid out of
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