Government Accounting and Accounting for Non-Profit Organizations – Final Exam Reviewer

A set of 50 vocabulary flashcards covering key terms in Philippine government accounting and accounting for non-profit organizations.

Government Accounting

Process of analyzing, recording, classifying, summarizing and communicating all transactions involving receipt and disposition of government funds and property, and interpreting the results thereof.

Commission on Audit (COA)

Constitutional body that promulgates accounting and auditing rules, keeps the general accounts, and submits financial reports of government.

Department of Budget and Management (DBM)

Executive department responsible for preparing and implementing the national budget and issuing allotments and disbursement authorities.

Bureau of Treasury (BTr)

Agency in charge of cash custody for the national government and control of disbursements.

Government Accounting Manual for NGAs (GAM)

COA-issued manual that harmonizes Philippine government accounting with IPSAS through PPSAS and provides detailed accounting procedures for national government agencies.

Philippine Public Sector Accounting Standards (PPSAS)

Local adaptation of IPSAS that prescribes accounting and reporting principles for Philippine public-sector entities.

International Public Sector Accounting Standards (IPSAS)

Global standards, largely based on IFRS, that guide financial reporting of public-sector entities.

General Purpose Financial Statements (GPFS)

Complete set of financial statements comprising Statement of Financial Position, Financial Performance, Changes in Net Assets/Equity, Cash Flows, Comparison of Budget and Actual Amounts, and Notes.

National Budget

Government’s annual estimate of sources and uses of funds, approved by Congress through legislation.

Budget Cycle

Four-phase process of Budget Preparation, Legislation, Execution and Accountability.

Budget Call

DBM issuance that starts budget preparation, stating next year’s targets, agency ceilings and submission guidelines.

National Expenditure Program (NEP)

Consolidated budget proposal prepared by DBM and submitted to the President for transmittal to Congress.

General Appropriations Bill (GAB)

Draft legislation containing the proposed national budget prepared by the House of Representatives.

Bicameral Conference Committee

Joint House–Senate body that reconciles differing versions of the GAB before final ratification.

General Appropriations Act (GAA)

Enacted national budget signed by the President; authorizes government spending for the fiscal year.

Appropriation

Legislative authorization to allocate funds for specified purposes.

Allotment

DBM authority allowing agencies to incur obligations within a legislative appropriation; also called Obligational Authority.

Obligation

Act of an authorized official that binds government to immediate or eventual payment, creating a commitment against allotment.

Disbursement Authority

Authority, such as NCA or NTA, that allows agencies to access cash to settle obligations.

Notice of Cash Allocation (NCA)

DBM document specifying maximum cash that an agency may withdraw from its servicing bank during a period.

Notice of Transfer of Allocation (NTA)

Authority issued by an agency’s central office to transfer cash allocation to its regional or operating units.

Non-Cash Availment Authority (NCAA)

DBM authority covering liquidation of obligations through direct payment of suppliers by lending institutions or donors.

Cash Disbursement Ceiling (CDC)

Limit set by DBM allowing foreign service posts to use locally collected income for operating needs.

Budget Accountability Reports

Periodic reports agencies submit to show fund utilization and performance versus targets.

Registry of Revenue and Other Receipts (RROR)

Budget registry that monitors budgeted amounts, collections and remittances of revenues and other receipts.

Registry of Appropriations and Allotments (RAPAL)

Record that tracks appropriations and corresponding allotments to ensure allotments do not exceed appropriations.

Registry of Allotments, Obligations and Disbursements (RAOD)

Registry monitoring allotments received, obligations incurred and actual disbursements made.

Registry of Budget, Utilization and Disbursements (RBUD)

Registry for recording approved special budgets, utilizations and disbursements against retained income.

Personnel Services (PS)

Expense classification covering all types of employee benefits such as salaries, allowances and bonuses.

Maintenance and Other Operating Expenses (MOOE)

Operating expenses other than employee benefits and financial expenses; includes utilities, supplies, etc.

Capital Outlays (CO)

Expenditures that result in acquisition or construction of capitalizable assets like infrastructure and equipment.

Modified Disbursement System (MDS) Checks

Checks drawn against the Treasurer of the Philippines’ account with government servicing banks.

Common Fund System

Policy allowing agencies to use available NCA balances to pay current-year payables charged against prior-year appropriations.

Revised Chart of Accounts (RCA)

COA-issued uniform list of eight-digit coded account titles used by all government entities.

Fund Cluster Accounting

Government accounting principle that separates transactions by fund source or cluster for reporting clarity.

Impairment Loss

Expense recognized when a previously recorded receivable or asset becomes uncollectible or loses value.

Semi-Expendable Property

Machinery, equipment and similar items costing below ₱50,000 each that are treated as inventories, not PPE.

Biological Asset

Living animal or plant (except bearer plants) measured at fair value less costs to sell.

Agricultural Produce

Harvested product of biological assets measured at fair value less costs to sell at point of harvest.

Investment Property

Land and/or buildings held to earn rentals or for capital appreciation rather than for own use.

Property, Plant, and Equipment (PPE)

Tangible assets held for use in production, supply, rental or administration, expected to be used more than one period.

Intangible Asset

Identifiable non-monetary asset without physical substance, such as software, patents or licenses.

Present Obligation

Existing duty stemming from past events that will likely require future outflow of resources.

Provision

Liability of uncertain timing or amount that meets recognition criteria (present obligation, probable outflow, measurable).

Contingent Liability

Possible obligation or present obligation not recognized because outflow is not probable or cannot be measured reliably.

Finance Lease

Lease transferring substantially all risks and rewards incidental to ownership of an asset to the lessee.

Non-Profit Organization (NPO)

Entity that pursues socially desirable objectives without intent to distribute surplus revenues to individuals.

Unrestricted Net Assets

Portion of NPO net assets not subject to donor-imposed restrictions.

Temporarily Restricted Net Assets

NPO net assets subject to donor-imposed time or purpose restrictions that will expire in the future.

Permanently Restricted Net Assets

NPO net assets with donor-imposed restrictions that never expire; principal must be maintained permanently.