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New Government Accounting System in the Philippines (NGAs)

15th President of the Republic of the Philippines, Benigno Simeon Aquino I

15th President of the Republic of the Philippines, Benigno Simeon Aquino I


Accounting is an effective tool of management in evaluating the performance of the different agencies of government. The performance of the public managers would depend on the most, on financial reports generated by the use of accounting systems.

Cognizant of this need, a new accounting system needs to be developed that would help the different agencies to hit on financial targets, and at the same time be understood by all users of financial reports.

With this new development, the Commission on Audit (COA), under the new 1987 Constitution, promulgated the New Government Accounting System in the Philippines (NGAs) for use by all government agencies.

The shift to NGAs was made in response to the following need:

1. Adoption of an accounting system that is in conformity with the International Accounting Standards.

2. Computerization of the accounting systems to generate reports that will be easy to understand by the general public.

3. Preparation of regular and routinary financial reports.

4. The use of the generated financial reports as tools of management in decision making.

Commission on Audit COA Chairperson Maria Gracia M. Pulido Tan


Government Accounting – Defined

Under Section 109, of the Presidential Decree (PD) no. 1445, defines Government Accounting as one that encompasses the process of analyzing, classifying, summarizing and communicating all transactions that are involved in the receipt and disbursement of all government funds and properties, and interpreting the results thereof. In pursuant to this definition, objectives were set to cover several areas in government operations.

Objectives of Government Accounting

  • To produce relevant financial information about past and present transactions of government.
  • To serve as a basis for decision making for future operations
  • To serve as the control mechanism for the receipt, disposition and utilization of government funds and properties
  • To come up with financial reports pertaining to the results of operations of various government agencies that are for dissemination to the public.

On Accounting Responsibility

This fiscal responsibility emanates from the Constitution and its governing laws, rules and promulgations. The mandate as prescribed under the said Constitution of the Philippines calls for the keeping of the general accounts, as well as the promulgation and submission of financial reports that would cover the operations of government.

The government officers that are mandated to discharge the above-stated Accounting responsibilities are the Commission on Audit (COA), the Department of Budget and Management (DBM) and the Bureau of Treasury (BTr) - to discharge the functions of government in consonance with its commitment to all Filipinos.

DBM Philippines 76th Anniversary

Agencies tasked by the Constitution with Accounting Responsibility

  • Commission on Audit (COA) - as mandated by the 1987 Constitution, the COA shall have the exclusive authority to - do audit and examination, establish audit techniques, implement accounting rules and regulations, that includes disallowances on the use of government funds and properties.
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  • Department of Budget and Management (DBM) – is the department responsible for the planning and implementation of the National Budget for the sound utilization of government funds in achieving the national government’s agenda on reform and growth. The DBM is tasked to monitor all government allotments and appropriations through maintenance of registries for better control and monitoring.
  • Bureau of Treasury (BTs) - the department is the keeper of national funds and disbursements. It is the lead agency in monitoring transactions affecting the national government, agencies, and other instrumentalities. It maintains the registry on the releases by the DBM, as well as the bank transfers between agencies.
  • Government Agencies – would include government instrumentalities like bureaus, Congress, Judiciary, constitutional bodies and self contained institutions, among others, which are required to have an accounting division, which are of equal level with that of other agencies that are tasked to do maintenance of accounts and submit financial statements on a regular basis.

Accounting Method Used

The modified accrual basis of accounting shall be used where expenses are recognized when incurred and income recognizes on an accrual basis unless other methods are required by law. The old government system uses both cash and accrual basis.


The need for timely preparation of financial reports in government is necessary to evaluate the performance of the different agencies of government. The result of the reports would indicate the areas that may still need improvement, as well as come up with the budgetary requirements for these agencies if needed.

Public officers are managers of funds, that are entrusted to them by the national government. The financial reports would clearly show if the agencies are achieving what is mandated by them. These reports would also show the extent in the use of agency assets and resources, as well as the need for an additional infusion of funds if required.

The accounting data would show how the funds of government were used. This would also reveal the inflow and outflow of funds and the need for stiffer fund management and control, when necessary.


  • Manuals on NGAS, LGU's, Baranggay issued by COA
  • Circulars issued by COA and the IAS
  • Procedural and Comprehensive Approach in Government Accounting by Punzalan and Cardona


Hi! I,m JBValencia. on September 27, 2016:

Is the Modified Disbursement Scheme (MDS) replaced in the NGAs?

Ahcmad on March 24, 2016:

Good afternoon ma’am/sir. We are an IT student from MSU Naawan and we will request for some important information about the software you’ve created. We need your methods and process of how did you come up with that software. We need also the diagrams of the software like the ERD, DFD and the model you’ve used. All that information is just for the supporting ideas in our RRL for our CAPSTONE project. Your answer would make our CAPSTONE project possible and effective. Thank you so much and God bless.

Honorable Edgar Ugtal Sofia on July 09, 2015:

Thanks for the new system of our government.. I hope and pray that this practices will continue in the years to come.

God bless Philippines

Consolacion Miravite (author) from Philippines on April 18, 2014:

I plan to do a series about NGAs in the next one month. This is the first part. For sources, you can try: manuals on NGAs for National Government Agencies, LGUs, and the newly promulgated NGAs for the Barangay.These were all issued by the Commission on Audit. You can also go over circulars, rules, and regulation issued by COA. All pertinent materials about NGAS are there. Good luck on your research!

ROSIEBELLE E. ATILANO on April 18, 2014:

HI.. Iam taking Master of Arts in Education, major in Educational Administration.. I am currently enrolled in a FISCAL MANAGEMENT and was tasked to discuss about THE NEW GOVERNMENT ACCOUNTING SYSTEM... CAN YOU ENUMERATE THE COMPONENTS OF gOVERNMENT ACCOUNTS/ MECHANISSMS OF RECORD KEEPING?


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