Transcript ISSUES AND CONCERNS

“Achieving Financial Health:
The Objective of Good
Governance and Financial
Reforms”
Promotion of good governance
with the attributes of
honesty, transparency,
accountability, credibility,
efficiency and effectiveness
to enhance trust in the
government and foster
a better quality of life
for the Filipino people.
(Article IX-D 1987 Philippine Constitution)
 Promulgate accounting rules and
regulations;
 Keep the general accounts of
government; and
(Article IX-D 1987 Philippine Constitution)
 Submit to the President and
Congress an annual report on the
financial condition and operation of
the Government, its subdivisions,
agencies, and instrumentalities,
including government-owned or
controlled corporations, and
recommend measures necessary to
improve their effectiveness and
efficiency.
On AFR Preparation
NATIONAL GOVERNMENT AGENCIES
Trial Balances and Financial Statements
CY 2007
No of Agencies
- 328
Target No. of Reports
-
436
Total Received
Received as of 2/14/08
Received after 2/14/08
-
433 or 99.3 %
66 or 15.1 %
367 or 84.2 %
Not Received
-
3 or
0.7 %
On AFR Preparation
LOCAL GOVERNMENT UNITS
(Provinces, Cities and Municipalities)
Trial Balances and Financial Statements
CY 2007
Number of LGUs
- 1,711
Target No. of Reports
- 5,099
Total Received
Received as of 2/14/08
Received after 2/14/08
- 4,961 or 97%
301 or 6%
- 4,660 or 91%
Not Received
-
138 or
3%
On AFR Preparation
LOCAL GOVERNMENTS (Barangays)
Trial Balances and Financial Statements
CY 2007
Target No. of Reports
- 41,995
Total Received
OGAS Reports
NGAS Reports
-
21,568 or 51.4%
5,743 or 13.7%
15,825 or 37.7%
Not Received
-
20,427 or 48.6%
On AFR Preparation
GOCCs
2007 Financial Statements
Number of Agencies - Corporations Water Districts Target No. of Reports
-
147
458
605
Total Received
Received as of 2/14/08
Received after 2/14/08
-
417 or 69%
18 or 3%
399 or 66%
Not Received
-
188 or 31%
Highlights of the FY 2007
BALANCE
SHEET
National Government
ASSETS
- P2,632.70 B
LIABILITIES - 4,055.68 B
EQUITY
- (1,422.98 B)
NG Assets, Liabilities and Equity
(in billion pesos)
Local Government Units
(Provinces, Cities and
Municipalities)
ASSETS
- P479.11 B
LIABILITIES -
136.09 B
EQUITY
343.02 B
-
LGUs Comparative Assets,
Liabilities and Equity
(in billion pesos)
Local Governments
(Barangays)
ASSETS
- P25.33 B
LIABILITIES -
EQUITY
-
1.58 B
23.75 B
GOCCs
ASSETS
- P4,931.28 B
LIABILITIES EQUITY
-
4,010.94 B
920.34 B
GOCCs Comparative Components of
Balance Sheet
(in billion pesos)
4 , 9 3 1. 2 8
5,000
4 , 3 73 . 51
3 ,9 4 6 .4 3
3 , 53 7. 6 0
4,000
3,000
2,000
9 2 0 .3 4
1,000
78 5. 4 7
6 4 . 51
50 . 4 4
0
2007
Assets
Liabilities
2006
Deferred Credits
Equity
STATEMENT OF
INCOME AND
EXPENSES
National Government
REVENUE/INCOME - P1,159.98 B
EXPENSES
-
762.53 B
NET SUBSIDY
-
(260.54 B)
NET GAIN
-
171.90 B
NET INCOME
-
308.81 B
Composition of
Revenue/Income
By Source
and By
Collecting Agent
Composition of
Expenses by
Class
(in billion pesos)
NonTax
20.57%
400
350
300
250
Tax
79.43%
3 4 3 .3 9
2 7 7 .8 6
200
15 0
10 0
50
0
14 1.2 8
P e rs o na l
S e rv ic e s
M OOE
F ina nc ia l
E xpe ns e s
Local Governments
(Provinces, Cities and Municipalities)
REVENUE/INCOME - P234.81 B
EXPENSES
-
194.79 B
NET INCOME
-
40.02 B
Comparative Breakdown of Operating
Income and Expenses by Unit
(in billion pesos)
120
101.73
90.56
100
79.14
77.65
79.34
80
70.14
69.27
53.94
50.09
60
41.38
45.31
40
20
0
2007 Income
2006 Income
Provinces
2007 Expenses 2006 Expenses
Cities
Municipalities
66.88
Local Governments
(Barangays)
REVENUE/INCOME - P16.95 B
EXPENSES
- 14.83 B
NET INCOME
-
2.12 B
GOCCs
REVENUE/INCOME - P810.38 B
SHARE OF NG
-
11.29 B
EXPENSES
-
619.32 B
SUBSIDIES
-
13.61 B
TAXES
-
12.86 B
NET INCOME
-
180.53 B
CASH IN BANK BALANCES
National Government
Local Currency - P133.38B
Foreign Currency 19.48B
Sub-total
P152.86B
Cash in BSP
Total
52.24B
P205.10B
CASH IN BANK BALANCES
National Government - P205.10B
Local Governments 72.88B
GOCCs
77.64B
Grand Total
P355.62B
Cash Advances by Sector
(in million pesos)
LGUs
Particulars
NGAs
Provinces,
Cities & Mun.
Barangays
GOCCs
Cash-Disbursing
Officers
1,564.39
1,471.99
96.23
421.36
Petty Cash Fund
59.23
83.88
25.58
32.85
Payroll Fund
1,877.99
896.52
259.15
82.02
Due from Officers and
Employees
1,200.91
1,964.92
107.67
36,101.24
Advances to Officers
and Employees
4,525.76
2,581.14
109.65
222.01
Accounts Payable and
Inter-agency Payables, by Sector
(in million pesos)
Accounts Payable and
Inter-agency Payables, by Sector
(in million pesos)
ISSUES AND CONCERNS
1. Non Reconciliation of
Reciprocal Accounts
a. NGAs following a decentralized
accounting procedures showed
unreconciled reciprocal
accounts as shown in these
balances:
Central Office Books
Subsidy to ROs
Subsidy to OUs
RO/OU Books
Subsidy from CO
Subsidy from RO
Due from ROs
Due from OUs
Due to CO
Due to ROs
b. Three sectors have different
balances for accounts
subsisting between and among
NGAs, LGUs, and GOCCs
NGAs
GOCCs
Subsidy to
GOCCs
Subsidy from
NGAs
b. Three sectors have different
balances for accounts
subsisting between and among
NGAs, LGUs, and GOCCs
NGAs
Subsidy to LGUs
LGUs
Subsidy from
NGAs
Reciprocal Accounts
Due from NGAs - Due to NGAs
Due from LGUs - Due to LGUs
Due from
GOCCs
- Due to
GOCCs
2. Submission of required
Financial Reports within
deadline
- TBs/FS/SCF/SGE/Reports
- SAOB/SAAOB
- Quarterly Statement on Allotments,
Obligations and Balances
Annex A (Required per RA 7226
& GAA – Gen. Prov.)
Target
- 11,849
Total Received - 7,996 or 67.48%
Received as of 3/31/08 - 5,747 or 48.50%
Received after 3/31/08 - 2,249 or 18.98%
- Quarterly Statement on Obligations,
Disbursements and Balances
Annex B
Target
- 11,849
Total Received - 7,724 or 65.19%
Received as of 3/31/08 - 5,492 or 46.35%
Received after 3/31/08 - 2,232 or 18.84%
3. Need for reconciliation of
allotment releases between
COA and Agencies
- Summary of Allotments
by ABM/SARO
- SAOB per agency and
COA records
Accounting Developments
• Harmonization of PGAS with
International Public Sector
Accounting Standards
(IPSAS)
- COA TWG to submit outputs
by Feb. 2009
Accounting Developments
• Revisit of NGAS Manuals
• Enhancement of e-NGAS