RA 7160 otherwise known as the Local Government Code of 1991 mandates that all Provincial, City and Municipal Government shall have an accountant who shall take charge of both the accounting and internal audit services of all local government units concerned.

Basically, accountants play a major and significant role in all government agencies thus vital and necessary to install a unified and solid organization of accountants throughout the archipelago. For a start, provincial associations were organized like League of Accountants in the Municipalities of Batangas, (LAMB) Inc. Laguna Association of Local Government Accountants, (LALGA), Inc. and Association of Local Accountants of Cavite, (ALAC), Inc. At the outset, the desire to organize a national association of LGU Accountants is primordial, hence, attempts were made to make a real noble task to bring forth prestigious association of accountants but failed for several reasons beyond control.

On the occasion of the 2nd Quarter Regional Conference of PICPA Southern Luzon Region on June 25, 2004 at the Development Academy of the Philippines, Tagaytay City, LGU accountants who attended the said conference set a meeting to organize a national association.

Accountants from LAMB, LALGA and ALAC met on August 6, 2004 at Twin Dragon Restaurant, Sta. Rosa, Laguna and formed a committee that will spearhead the organization of the dreamed national association of LGU accountants. A joint conference of LGU accountants was conceived as the initial step.

With intercession of the Holy Spirit realize a dream come true to take the accountants to attended the One Day Joint Conference of Local Government Accountants on August 21, 2004 at Montevista Resort, Calamba City, Laguna. The Philippine Association of Local Government Accountants, (PHALGA) Inc. was born. The Officers and Board of Directors were elected, namely;