FOREWORD

After almost five decades of faithful adherence to the rigid and

complicated government accounting procedures designed by
foreign consultants, the Commission on Audit, based on the
authority granted under Sec. 2 (2), Art. IX-D of the 1987
Constitution, made a sweeping revamp of the existing government
accounting system. On October 30, 2001, it issued COA Circular
No. 2001-004 prescribing the use by national government agencies
of the New Government Accounting System (NGAS) effective
January 1, 2002. The new system was developed in response to
one of COAs priority reform measures which is the Government
Accounting Simplification and Computerization.
The NGAS is a simplified set of accounting concepts, guidelines
and procedures designed to ensure correct, complete and timely
recording of government financial transactions, and production of
accurate and relevant financial reports. This book, while containing the
manual version, envisions the eventual computerization of the NGAS to
provide users with greater ease and a more comprehensive financial
management information system.
This change is considered a milestone in the history of the
Government, particularly the COA, as it was formulated in a span of
four months by a team of highly professional and competent COA
officials.
As a guide for government finance officers, accountants,
bookkeepers, budget officers and accountable officers in the actual
application of the system in their respective activities, this Manual,
consisting of three volumes, is hereby issued.
It is hoped that this Manual will be of help to government
officials and other personnel, researchers, academicians and other users
of the NGAS.

GUILLERMO N. CARAGUE
Chairman