Implementing the

Computerized Government
Accounting System:
Philippine Experience

Carmela S. Perez, DBA

Assistant Commissioner,
Government Accountancy and
Financial Management Information System
Commission on Audit

Outline:
Constitutional Mandate
Government Accounting System Simplification and
Computerization (New Government Accounting
System (NGAS) and Electronic NGAS (eNGAS))
Objectives
Milestones
eNGAS Definition
eNGAS Environment / Technical Features
Beneficiaries

Outline:
Basic Features
Financial Statements Generated
Financial Reports Generated
Conceptual Framework
Rollout Status
Rollout Strategies
Lessons Learned from the Rollout

Outline:
Next Steps
Agency - Level Integrated Financial Management
Information System (IFMIS)
Components
Description
Objectives
Features
Benefits
Conceptual Framework
Inter-agency IFMIS
eAudit

What They Say About eNGAS

Constitutional Mandate

The Commission on Audit shall have exclusive

authority, subject to limitations, to define the scope of
its audit examination, establish the techniques and
methods required therefore and promulgate
accounting and auditing rules and regulations,
including those for the prevention and disallowance of
irregular, unnecessary, excessive, extravagant, or
unconscionable expenditures, or uses of government
funds and properties. (Article IX-D, Section 2 Par. (2)
of the 1987 Constitution of the Republic of the
Philippines)

Government Accounting System

Simplification and Computerization (NGAS
and eNGAS)
Chairman Guillermo N. Carague assumed
office in February 2, 2001

Design and development of the

New Government Accounting
System (NGAS)

(Source: COA News)

NGAS Steering Committee

COA Chairman
3 Assistant Commissioners
2 Directors

(Source: COA News)

Design and development of the Electronic New

Government Accounting System (eNGAS)

Objectives

Standardize recording of government financial

transactions

Consolidate Financial Reports for National

Government Agencies (NGAs), Local Government Units
(LGUs) and Government Owned & Controlled
Corporations (GOCCs)

Align the Accounting System with International

Accounting Standards (IAS) / International Financial
Reporting Standards (IFRS)

Improve accountability and governance through

transparency in governmental financial management

Milestones

NGAS designed and developed in June

October 2001

NGAS launched in Nov. 14, 2001

Nationwide training conducted in Nov. &
December 2001

NGAS implemented in NGAs and LGUs in

January 2002

Piloted in COA in April September 2003

Milestones

Started roll-out of eNGAS in three NGAs and two

LGUs in October 2003

Implemented in GOCCs starting

January 2005

On-going - 33 NGAs,
15 Regional Offices of COA, 10 LGUs
and 1 GOCC

eNGAS Definition

New Government Accounting System (NGAS)

software

Correct, reliable and timely recording of

government financial transactions

Financial reports in accordance with NGAS

eNGAS Environment / Technical

Features

Runs on Microsoft SQL Server

Multi-user operations
Alpha search and look up system codes and
transactions

Online data entry and validation

Online query and reporting facility
Audit trail for system users
Automatic recovery from hardware and system
failures

Beneficiaries

Agency management
Agency accounting personnel
Oversight and regulatory agencies
General public
Government executives and legislative
officials

Basic
Features:

User friendly
screens

Basic
Features:

Accounting journal entry

templates for common
transactions

Basic Features: Balanced debit and credit for

accounting journal entries

Basic Features:

Data validation

Basic Features: Electronic approval and

posting of transactions to
General Ledger and
Subsidiary Ledger

Basic Features:

Uses only the General

Journal

Basic
Features:

Standard Chart of Accounts

Basic
Responsibility
Features:
Accounting
RESPONSIBILITY CENTER CODING
STRUCTURE - COA

11 304 01

06

01

755
Office
Supplies
Expense
Office of the
Asst. Comm.

National
Government Sector
Central Office
Commission on Audit
RA Books - General Fund

Basic
Features:

Automatic computation of inventory

cost using weighted (moving)
average method

Basic
Features:

Information on re-order level

and number of days to
consume inventory

Basic
Features:

Property, Plant and

Equipment Monitoring

Maintenance Expenses
Amount
Accumulated Amount

Basic
Features:

Automatic Computation of
depreciation using Straight
Line Method

Basic
Features:
Subsidiary

Ledger
Maintenance
GENERAL
LEDGER
ACCOUNT

SUBSIDIARY LEDGER ACCOUNT

Basic
Features:

Project Accounting

MONITORING OF EXPENSES INCURRED IN THE CONSTRUCTION OF GOVERNMENT

PROPERTIES

Direct
Materials

Direct
Labor

Overhead

Consultancy

Basic
Features:

Public Infrastructure /
Reforestation Projects
Monitoring

Online Query Feature (with option to print):

Journal Entry Voucher

Expense per Responsibility Center
Income per Responsibility Center
Summary of Income
Summary of Expense
Repair History of PPE
Stocks Available

Online Query Feature (with option to print):

Stocks Due for Reorder / Reorder Point

Schedule / Aging of Receivable Accounts
Schedule / Aging of Payable Accounts
Inventory Schedule
Property, Plant and Equipment Schedule
Schedule of Account Balances
Recorded Supporting Documents

Online Query Feature (with option to print):

Schedule / Aging of Receivable Accounts

Online Query Feature (with option to print):

Schedule / Aging of Payable Accounts

Financial Statements Generated

Statement of Income and Expenses (Condensed and

Detailed)

Balance Sheet (Condensed and Detailed)

Statement of Cash Flows
Statement of Government Equity
Consolidated Statement of Income and Expenses
(Condensed and Detailed)

Consolidated Balance Sheet (Condensed and Detailed)

Financial Statements Generated

Consolidated Balance Sheet - Condensed

Financial Statements Generated

Consolidated Statement of Income and Expenses

- Detailed

Financial Reports Generated

Trial Balance (Unadjusted, Pre-Closing and Post-Closing)

Consolidated Trial Balance (Merged and Unmerged)
General Journal
General Ledger
Subsidiary Ledger
Supplies Ledger Card
Property, Plant and Equipment Ledger Card
Construction in Progress Ledger Card

Financial Report Generated

General Journal

Financial Report Generated

General Ledger

e-NGAS Conceptual Framework

e-NGAS
Accounting
System
JEV
Preparation
JEV Review
And Approval

Query

Report
Generation

Journal Entry Voucher (JEV) Preparation

Reference
Document

Receives
valid
document

Source
Document

Selects type of
transaction and
fund

e-NGAS
database

Selects template /
accounting entries
Validates / Saves
JEV

JEV

Generates JEV

Edit particulars of
the template and
enters reference
document #

Home

Journal Entry Voucher (JEV) Review and Approval

Reference
Document
Source

Retrieves JEV REVIEW

AND APPROVAL INBOX

Document

e-NGAS
database

Selects type of
transaction /
fund

Validates / Reviews
JEV

Approves / Posts
JEV to GL and SL

YES

Approved
JEV

NO
Generates approved
JEV

Valid JEV ?

Edits / Saves JEV

Home

Query

Opens Menu for Query

Stocks
Availability
Due for
Reorder
Summar
y of
Expense
Summar
y of
Income

Identifies item in
the Query list

Schedule
of
Receivable
Accounts
Schedule
of Payable
Accounts

Journal
Entry
Voucher

e-NGAS
database

Repair
History of
PPE

Selects Query criteria

Income per
Responsibi
-lity Center

Expense
per
Responsibi
-lity Center
Report of
Income
Recorded
Supporting
Documents

Views / Prints
result of Query
Home

Report Generation
e-NGAS
database
Opens Menu
for reports

Financial Reports
Balance
Sheet

Trial
Balance

Selects report to
be generated

Journal / Ledger

General
Ledger

Statement
of Cash
Flows

Statement
of Income
and
Expense

Statement
of
Governmen
t Equity

Views / Prints
Reports

General
Journal

Property,
Plant and
Equipment
Ledger
Card
Construction-in
Progress
Ledger
Card

Subsidiary
Ledger
Supplies
Ledger
Card

Rollout
Status
NGAs
1 3 months completed

Bureau of the Treasury

Department of Budget and Management
Energy Regulatory Commission
Philippine Carabao Center 2 months
Housing & Urban Devt and Coordinating Council
PCASTRD DOST
Philippine Air Force
Presidential Management Staff
Environmental Management Bureau
National Water Resources Board

Rollout
Status

NGAs

4 6 months completed

Central Luzon State University

Department of Agrarian Reform
Department of Health
Department of Public Works and Highways
Department of Trade and Industry
Philippine Veterans Affairs Office
Metropolitan Manila Development Authority
Telecommunications Office

Rollout
NGAs
Status
7 12 months
completed

Civil Service Commission

Department of Social Welfare and Development
Office of the President
Department of Education

Rollout Status

NGAs

Ongoing Implementation

Board of Investments
Bureau of fisheries and Aquatic Resources
Bureau of Internal Revenue
Department of Environment and Natural Resources
Department of Finance
Department of National Defense
Department of Science and Technology
Pasig River Rehabilitation Commission
Professional Regulation Commission
Technical Education and Skills Development Authority
Council for the Welfare of Children

Rollout Status
LGUs
Benguet Province 3 months
Guiguinto, Bulacan 3 months
Marikina City*
Muntinlupa City*
Quezon City*
Victorias City*
Cauayan City*
Davao City*
Bakun, Benguet*
Itogon, Benguet*
GOCCs
Manila International Airport Authority*
Legend:
* -- On-going implementation

Rollout Strategies
Provide COA rollout teams to assist agencies
Empower the agencies by allowing them (NGAs Central
Offices) to roll out in their regional offices and attached
agencies

Mobilize COA Regional Offices and Auditors to support the

nationwide roll out

Provide eNGAS trainers for agencies

Provide individual consultants to agencies on an on call basis
Collaborate with umbrella organizations of government agencies
League of Local Government Executives
Phil. Association of State Universities and Colleges
Professional Organizations GACPA, PAGBA, AGAP, etc.
Phil. League of Budget Officers

Cooperative grouping of LGUs

Lessons Learned from the Rollout

Success Factors

Readiness of agency in terms of Hardware / Software etc.

Determination of management and users to finish the
rollout in time

Politics within the agency is crucial

Rapport with agency ICT group is important
Systematic response mechanism to user problems and
issues

Strategies should be devised from time to time to cover

more rollout sites

Opportunity for COA personnel to work as teams

Next Steps
Agency - Level Integrated Financial
Management Information System (IFMIS)
Related Operating Systems or ROS is a collection of webenabled application software designed to support a full
Financial Management Information System. It consists of
four modules:
Cash Receipt Operations
Cash Disbursements Operations
Non-Cash Operations
Payroll and Personnel Information System

Next Steps
Agency Level
Description: IFMIS

consists of modules which can be implemented

independently

capable of establishing linkages between modules.

covers form preparation, transaction processing,

and generation of queries and required reports

modules can be linked to e-NGAS and the Budget

System

automated access of transaction details for the

preparation of Journal Entry Vouchers and
Obligation Slips

capable of changing configuration to adapt to

NGAs, LGUs, and GOCCs needs

Next Steps
Objectives:

Agency - Level IFMIS

support government-wide and agency policy decisions

collect accurate, timely, complete, reliable, consistent
information
eliminate unnecessary duplication of transaction entry
standardize data classification for recording transactions
implement common processes for similar transactions
provide adequate management reporting
apply internal controls over data entry, transaction
processing, and reporting
provide complete audit trail to facilitate audits

Next
Steps
Features:

Agency - Level IFMIS

User-friendly interface
Simplified entry of transactions and activities
Ability to export transaction data directly to specified
data format
Ability to capture manually prepared transactions.
Some forms (i.e. Disbursement Voucher, Liquidation
Report) can be prepared and sent by concerned
employees through the web.
Queries and Reports can be viewed (with option to print)
through the World Wide Web (www).
Records are protected from unauthorized access through
appropriate administrative, physical, and technical
safeguards.

Next
Steps

Agency - Level
IFMIS
Reporting Features:

Up-to-date generation of government standard required

reports necessary for management and auditing purposes.

Use of a Reporting Module that allows customization of adhoc reports including headers and footers, column and row
totals, page breaks, font styles, sizes and colors.

Performs currency conversion.

Some reports can be viewed in graphical formats.
Runtime, dates, terminal source, and user name are
included in all reports.

Next
Steps

Agency - Level
IFMIS
Benefits of Web-based IFMIS
establishes its presence
heightens public interest
makes government financial information available
online
answers frequently asked questions
makes changing information available quickly
allows feedback from users

Next
Steps

Agency - Level
IFMIS
Conceptual Framework

Next
Steps

Inter - agency IFMIS

Integrated IFMIS linking the following agencies

Department of Budget and Management (DBM)
- eBudget

Department of Finance (DOF)

Bureau of the Treasury (Btr)
Commission on Audit (COA) / Accounting Office
Bangko Sentral ng Pilipinas (BSP)
Other related agencies
Harmonization Project

Next
Steps
eAudit
Audit Software to match eNGAS installed
in agencies
Standardize audit working papers
Risk Based Financial Audit Manual
Use of existing Audit Softwares TEAMate,
Idea, Paradox

What Users / People say about

eNGAS

Video Clip