“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.

 Promulgate accounting rules and regulations; (Article IX-D 1987 Philippine Constitution)  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 Target No. of Reports Total Received or 99.3 % Received as of 2/14/ or 15.1 % Received after 2/14/ or 84.2 % Not Received - 3 or 0.7 %

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 - 4,961 or 97% Received as of 2/14/ or 6% Received after 2/14/08 - 4,660 or 91% Not Received or 3% On AFR Preparation

LOCAL GOVERNMENTS (Barangays) Trial Balances and Financial Statements CY 2007 Target No. of Reports - 41,995 Total Received - 21,568 or 51.4% OGAS Reports - 5,743 or 13.7% NGAS Reports - 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 Total Received or 69% Received as of 2/14/ or 3% Received after 2/14/ or 66% Not Received or 31% On AFR Preparation

BALANCE SHEET Highlights of the FY 2007

ASSETS - P2, B LIABILITIES - 4, B EQUITY - (1, B) National Government

NG Assets, Liabilities and Equity (in billion pesos)

ASSETS - P B LIABILITIES B EQUITY B Local Government Units (Provinces, Cities and Municipalities)

LGUs Comparative Assets, Liabilities and Equity (in billion pesos)

ASSETS - P B LIABILITIES B EQUITY B Local Governments (Provinces, Cities, Municipalities and Barangays)

ASSETS - P25.33 B LIABILITIES B EQUITY B Local Governments (Barangays)

GOCCs ASSETS - P4, B LIABILITIES - 4, B EQUITY B

GOCCs Comparative Components of Balance Sheet (in billion pesos)

STATEMENT OF INCOME AND EXPENSES

National Government REVENUE/INCOME - P1, B EXPENSES B NET SUBSIDY - ( B) NET GAIN B NET INCOME B

Composition of Revenue/Income By Source and By Collecting Agent Composition of Expenses by Class (in billion pesos)

REVENUE/INCOME - P B EXPENSES B NET INCOME B Local Governments (Provinces, Cities and Municipalities)

Comparative Breakdown of Operating Income and Expenses by Unit (in billion pesos)

REVENUE/INCOME - P16.95 B EXPENSES B NET INCOME B Local Governments (Barangays)

REVENUE/INCOME - P B SHARE OF NG B EXPENSES B SUBSIDIES B TAXES B NET INCOME B GOCCs

National Government Local Currency - P133.38B Foreign Currency B Sub-total P152.86B Cash in BSP 52.24B Total P205.10B CASH IN BANK BALANCES

National Government - P205.10B Local Governments B GOCCs B Grand Total P355.62B CASH IN BANK BALANCES

ParticularsNGAs LGUs GOCCs Provinces, Cities & Mun. Barangays Cash-Disbursing Officers 1, , Petty Cash Fund Payroll Fund1, Due from Officers and Employees 1, , , Advances to Officers and Employees 4, , Cash Advances by Sector (in million pesos)

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: RO/OU Books Subsidy from CO Subsidy from RO Due to CO Due to ROs Central Office Books Subsidy to ROs Subsidy to OUs Due from ROs Due from OUs

b. Three sectors have different balances for accounts subsisting between and among NGAs, LGUs, and GOCCs NGAs Subsidy to GOCCs Subsidy from NGAs

b. Three sectors have different balances for accounts subsisting between and among NGAs, LGUs, and GOCCs LGUs Subsidy from NGAs NGAs Subsidy to LGUs

Reciprocal Accounts Due from NGAs - Due to NGAs Due from LGUs - Due to LGUs Due from - Due to GOCCs 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