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Ateneo de Davao University

Government Accounting

ACAFAR 4259

Pre-lectio Material

Prelim Topic 3 Part 1 The Government Accounting Process

Instructions:

a. Kindly provide the answers on the following questions based from your own understanding of the
material/s provided and previous knowledge of the topics.
b. Print this file on an A4 paper and submit this after the class.
c. Prepare for a recitation.
d. Answers should be hand written.

Name: ______________________________________ Section: ____________ Date: ______________

1.) What are the accounting journals maintained by the accounting unit? Differentiate each of them.
- General Journal:** Records transactions not captured in the Special Journals.
- Special Journals:**
- Cash Receipts Journal:** Records the Report of Collections and Deposit (RCD) and Cash Receipts Register (CRReg) maintained by collecting officers.
- **Report of Collections and Deposits (RCD):** Prepared by collecting officers to report collections and deposits to an Authorized Government Depository Bank (AGDB).
- **Cash Receipts Register (CRReg):** Used by field offices without complete books to record their cash collections and deposits for their parent unit.
- **Cash Disbursements Journal:** Records the cash disbursements made by the disbursing officer.
- **Check Disbursements Journal:** Records the check disbursements made by the disbursing officer.
2.) What are the accounting ledgers maintained by the accounting unit? Differentiate each of them.

- General Ledgers: Summarize all transactions recorded in journals, with accounts arranged according to their order in the revised
chart of accounts.
- Subsidiary Ledgers: Provide detailed information for each control account in the general ledger.

3.) What is a Registry of Appropriations and Allotments (RAPAL)? What is its use?
RAPAL is used to monitor appropriations and allotments, ensuring that allotments do not exceed appropriations, aiding in budgetary control
and compliance with approved budgets.

4.) What is a Registry of Allotments, Obligations and Disbursements (RAOD)? What is its use?
RAOD monitors allotments received, obligations incurred, and actual disbursements made, ensuring that obligations and disbursements
do not exceed allotted amounts. Separate RAODs for each expenditure type enhance tracking and control.

5.) Why do we need to prepare a separate accounting and budget registries every fund clusters?

Different fund clusters have separate accounting and budget registries to ensure accurate tracking and compliance, promoting
transparency and accountability.

6.) What are the four (4) objects of expenditures? Explain each of them.
Personnel Services: Salaries and benefits for government employees.
Maintenance and Other Operating Expenses (MOOE): Day-to-day operational costs.
Capital Outlays (CO): Acquisition of long-term assets.
Financial Expenses (FE): Interest payments and other financial obligations.
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7.) What is/are the reason/s why COA keeps the General Accounts, vouchers, and other supporting
documents of their audited agencies?
COA is responsible for auditing the government agencies, consequently, they maintain general accounts, vouchers, and supporting
documents of audited agencies, ensuring transparency, accountability, and accurate financial reporting.

8.) What is an Obligation Request Status (ORS)? What is its use?

It is a trigger document that implies that an obligation can already be incurred. It requests approval for obligations before they are
incurred, ensuring they are within the approved budget and comply with regulations.

9.) What is a Notice of Obligation Request and Status Adjustments (NORSA)? What is its use?
NORSA is a document which entries are triggered by adjustments from the RAOD and ORS. It provides updates on obligation status and
adjustments, aiding in monitoring and controlling obligations to ensure compliance.

10.) What is/are the difference/s of an obligation that is already due and demandable vs. not yet due and
demandable?
Due and Demandable: Payment is currently required and can be claimed by the creditor.
Not Yet Due and Demandable: Payment is not immediately required and can be settled later as per agreement terms.

11.) What is a Registry of Allotment and Notice of Cash Allocation (RANCA)? What is its use?
The RANCA shall be maintained by the Accounting Division/Unit to determine the amount of allotments not covered by NCA and to
monitor available NCA.

12.) What is a Registry of Allotment and Notice of Transfer Allocation (RANTA)? What is its use?
The RANTA shall be maintained by the Accounting Division/Unit to determine the amount of allotments not
covered by NTA and to monitor available NTA.

13.) Explain the journal entries every time a National Government Agency (NGA) withheld and remits the
amount of tax due to BTr and the entries in the books of accounts of the BIR and BTr.

In the remitting agency books, the Cash-TRA account is debited for constructive receipts of NCA for TRA and SNG is credited to recognize
the receipt from DBM. To remit, the Due to BIR account is debited and Cash-TRA is credited to recognize the payment of a liability to BIR
which is the tax witthheld.

- For the BIR, the Cash-TRA account is needed to record the taxes as income.
- For the BTr, the Cash-TRA account is necessary to record the TRA as a disbursing authority, reflecting a subsidy from the national
government.

14.) Explain the concept on reversion of Notice of Cash Allocation (NCA). Why is there a need to revert
the unused Notice of Cash Allocation (NCA)?

The NCA provides the cash disbursement ceiling limit for vvhich the AGSB can release and the government agency can spend,
respectively. This means that the bank cannot release cash in excess of the amount vvritten in the NCA., therefore, the excess needs to
be reverted