New Government

Accounting
System (NGAS)

 Pursuant to the Commission on

Audit Circular No. 2001-004 dated
October 30, 2001, all government
agencies were prescribed to use the
New Government Accounting
System (NGAS) effective January 1,
2002.

 The NGAs is a simplified set of

accounting concepts, guidelines
and procedures designed to ensure
correct, complete and timely
recording of government
financial transactions, and
productions of accurate and relevant
financial reports.

Objectives
1.Simplify Government
Accounting
2.Conform to international
accounting standards
3.Generate periodic and relevant
financial reports for better
monitoring of performance

Basic Features and Policies

of NGAs
1.Accounting Methods Used
2.Responsibility Accounting
3.Books of Accounts
a. Regular Agency (RA) Books
b. National Government
(NG) Books

Regular Agency (RA) Books

These shall be used to record the
receipt and utilization of Notice of Cash
Allocation (NCA) and other
income/receipts, which the agencies
are authorized to use and to deposit
with Authorized Government
Depository Banks (AGDB) and the
national treasury.

 Journals
1. Cash Receipts
Journal (CRJ)
2. Cash
Disbursements
Journals (CDJ)
3. Check
Disbursement
Journal (CDJ)
4. General Journal (GJ)

Ledgers
1. General Ledger (GL)
2. Subsidiary Ledgers (SL) for:
a. Cash
b. Receivables
c. Inventories
d. Investments
e. Property, Plant and
Equipment
f. Construction in Progress
g. Liabilities
h. Income
i. Expenses

National Government (NG)

Books
These shall be used to record
income, which the agencies are not
authorized to use and are required
to be remitted to the National
Treasury . These shall consist of the
following:
1. Cash Journal (CJ)
2. General Journal (GJ)
3. General Ledger (GL)
4. subsidiary Ledger (SL)

Basic Features and Policies

of NGAs
4. Financial Statements
a. Statement of Financial Position
b. Statement of Financial Performance
c. Statement of Changes in Owners
Equity
d. Statement of Comparison of Actual
and Budgeted amounts
e. Cash Flow Statement
f. Notes to Financial Statements

Basic Features and Policies

of NGAs
5. Allotments and Obligation
ALLOTMENT:
is the authorization issued by the
DBM to an agency thereby enabling
the Agency to incur obligations up to a
specified amount that is within a
legislative appropriation.

Basic Features and Policies

of NGAs
OBLIGATION:
refers to the commitment by a
government agency arising from an
act of a duly authorized official, which
binds the government to immediate or
eventual payments of a sum of money

Basic Features and Policies

of NGAs
Separate registries shall be
maintained to control the allotments
and obligations for each of the four
classes of allotments, namely:
1. RAOCO
2. RAOMO
3. RAOPS
4. RAOFE

Basic Features and Policies

of NGAs
6. Notice of Cash Allocation
is an authorization issued by DBM to
government agencies to withdraw cash
form the National Treasury through the
issuance of Modified Disbursement
System Checks or other authorized
mode of disbursements.

Basic Features and Policies

of NGAs
7. One Fund Concept
a. General Fund: generally
available for all government
functions
b.Special Fund: fund appropriated
for purposes other than those
provided in the regular funds of
government agencies,

Types of Special Fund

1. Miscellaneous Personnel Fund is used to
cover personnel benefits which are not provided
for in the regular budget of the agency.
2. Calamity Fund Is used to cover relief,
rehabilitation, reconstruction and other services
in connection with calamities that may occur
during the budget year
3. Organizational Adjustment Fund is used to
cover budgetary requirements of a newly
created organization, program/project/activity
within an agency

Basic Features and Policies

of NGAs
8.Perpetual inventory of Supplies
and Materials using the moving
average method of costing
9.Maintenance of Supplies and
Property, Plant and Equipment
Ledger Cards
10.Construction of Assets

Basic Features and Policies

of NGAs
11. Registry of Public
Infrastructures/Registry of
Reforestation Projects
a. Registry of Public
Infrastructures Bridges (RPIB)
b. RPI-Roads (RPIR)
c. RPI-Parks (RPIP)

Basic Features and Policies

of NGAs
12. Depreciation
10% salvage value
life prescribed in the NGAS manual
13. Construction of Assets

Basic Features and Policies

of NGAs
14. Petty Cash fund
Imprest System
15. Foreign Currency Adjustments
Cash deposits in foreign currency
and oustanding foreign loans shall be
computed at the exchange rate
prescribed by the Bangko Sentral ng
Pilipinas at the balance sheet date

Basic Features and Policies

of NGAs
16. Chart of Accounts and Account
Codes
Aims to unify the accounts being
used in the national government
accounting and budget systems to
facilitate the preparation of
harmonized financial and budget
accountability reports.
Adaption of the RCA
Unified Accounts Code Structure