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 at 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.