UNIFIED ACCOUNTS CODE STRUCTURE

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Presentation transcript:

UNIFIED ACCOUNTS CODE STRUCTURE A Presentation to the Government Association of Certified Public Accountants (GACPA) by: Luz M. Cantor Assistant Secretary, DBM October 17, 2013 The Oriental Hotel, Taysan Hill Sto. Niño Village, Legaspi City

Outline PART 1. The PFM Reform Roadmap and UACS Background of PFM PFM Cycle and Gaps PM Reform Roadmap Executive Order No. 55 Deliverables Unified Account Code Structures (UACS) What is UACS? Why a UACS? Where will UACS be used? Coverage of UACS PART 2. UACS Structure or Key Elements Funding Source Code Organization Code Location Code MFO/PAP Code Object Code PART 3. Code Administration Colleagues in government, good afternoon.

Part I The PFM Reform Roadmap and the UACS

PFM Cycle and Gaps PREPARATION ACCOUNTABILITY EXECUTION lack of budget credibility budget not results-based ACCOUNTABILITY lack of funding predictability AUTHORIZATION weak budget oversight by Congress and the public weak cash management system no common budgetary and accounting classification The Public Expenditure and Financial Accountability (PEFA) assessment/report in 2007 undertaken by the World Bank identified seven (7) major gaps and weaknesses in our PFM system. Most of these gaps concern the various stages of the budget process, as shown in the slide. For our purpose today, allow me to discuss the simplest if not the most visible gap, and one which financial managers experience first hand. But first, allow me to ask this question: How many reports do you prepare and submit separately to DBM, COA and DOF? (Pause and wait for participants to provide answers) The answer is: simply too many and duplicative reports. Would you agree? weak monitoring of contingent liabilities EXECUTION

needs this kind of information system Financial Reporting NOW The Philippine PFM needs this kind of information system As shown on the left side of the diagram, the government’s financial management system can be described as: one with messy traffic of documents, around 50 reports required by COA, DBM and other oversight agencies, duplicative report formats, inability to reconcile and validate reports, and Analysis is hindered by different budget and accounting classification. This results in poor reporting and monitoring of fund utilization, and yes, weak accountability systems. We also know that poor reporting leads to poor planning and budgeting. In the long run, through the various PFM reforms, we want to see a more systematic, orderly, and integrated information system that will address not only the messy traffic of documents but also the bigger PFM gaps and weaknesses as you can see in the figure to the right. 5

UACS and PFM Policy Basis Master plan for modernizing the financial management system of the government Executive Order 55 (s. 2011) directs the integration and automation of PFM systems Improve efficiency, accountability and transparency of public fund use Contribute to good governance and fiscal discipline as a strategy for inclusive growth and poverty reduction The objectives of the PFM reform are contained in the PFM Reform Roadmap. The PFM Reform Roadmap is a five-year master plan for addressing PFM gaps and improving the PFM systems in the whole of government. It contains specific strategies to address major gaps in the system through effective interventions in the short-term, medium-term and long-term towards improving transparency, accountability, efficiency and effectiveness of public funds use. This roadmap was jointly formulated by the principal fiscal oversight agencies, namely DBM, COA and the DOF-Bureau of the Treasury through a series of stakeholder consultative meetings and workshops that began in 2009 and was formalized through Executive Order No. 55 signed by the President in September 2011. EO 55 also established the PFM Committee composed of DBM, DOF, COA and Treasury as the governance structure responsible for the implementation of the roadmap and GIFMIS.

Deliverables required under EO 55 Real time online accounting Monitoring and control of obligations and disbursements Regular in-year reporting of budget execution Timely year-end audit reporting of agency financial and physical operations Comprehensive, timely, accurate and consolidated PFM System Under EO 55, the deliverables of PFM systems to be installed and completed are as follows: A system which shall enable real time on line accounting of public funds A system which enhances monitoring and control of obligations and disbursements and their direct links to cash management for more effective financial control and accountability Regular in-year reporting system on the status of budget execution Timely year-end audit reporting of agency financial and physical operation which will be used in the budget preparation process including Congressional debates on agency budgets and performance as well as public participation in the budget process A PFM system that is comprehensive, timely, accurate and consolidated

What is UACS? a government-wide harmonized budgetary, treasury and accounting code classification framework to facilitate reporting of all financial transactions of agencies UACS is a government-wide harmonized budgetary, treasury and accounting code classification framework to facilitate reporting of all financial transactions of agencies. Financial transaction meaning revenue reporting and expenditure reporting.

Why a UACS? Directed at harmonizing budgetary and accounting classifications and structures for simplifying and consolidating formats for financial reports Enable reporting of actual revenues and actual expenditures compared to what was projected to be collected and expended in the budget Enable the comparison of disbursements for programs/projects/activities with their approved appropriations Source: PFM Reform Roadmap The UACS seeks to harmonize budgetary and accounting classifications and structures for the purpose of simplifying and consolidating formats for financial reports. It also enables reporting of actual revenues compared to what was estimated to be collected as well as actual expenditures as against the budgeted amounts. It also enables comparison of disbursements for PAPs as against their programmed appropriation

Where will UACS be used? Every IT system should adopt the UACS for: Budget cycle - Preparation, Legislation, Execution and Accountability Reporting Appropriation, Allotment, Obligation, Disbursement Enabling reporting of actual expenditure against budget appropriation as envisaged in PFM roadmap Payroll, budget, cash management, budget execution and forward planning Performance measurement – performance indicators linked to UACS MFOs and outcomes achieved reported against budget and targets “the UACS is the heart of the GIFMIS. It is at the core of the IT system being developed to ease the work of financial managers (budget officers, accountants, auditors)

UACS Coverage All NGAs including Constitutional Commissions/Offices, SUCs and GOCCs receiving Budgetary Support from NG, including those maintaining special accounts in the general fund

Part II UACS Structure

UACS Structure Funding Source (6 digits) Organization (12 digits) Financing Source (1digit) Authorization (2digits) Fund Category (3digits) Organization (12 digits) Department Agency Lower-Level Operating Unit (7digits) Location (9 digits) Region Province City/Municipality Barangay Program/ Project/Purpose Program MFO/Project MFO/Project Category 1st level Activity/Project Sub Category 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) UACS has 5 elements: FOLMO each element is composed of segments Funding Source Codes Organization Codes Location Codes MFO/PAP Codes Object Code All in all it has 46 digits 13

Funding Source Segments 6 Digits Financing Source 1 digit Authorization 2 digits Fund Category 3 digits 3 segments 6 digits 14

Funding Source: Financing Particulars UACS General Fund 1 Off-Budgetary Funds 2 Custodial Funds 3 General Funds are funds available for any purpose that Congress may choose to apply, and is composed of all receipts or revenues that do not otherwise accrue to other funds. Off-Budgetary Funds refer to receipts for expenditure items that are not part of the National Expenditure Program and which are authorized by law for deposit to government financial institutions. These are categorized into: Retained Income or Receipts, and Revolving Funds Custodial Funds refer to receipts or cash received by any government agency – whether from a private source or another government agency – to fulfill a specific purpose. Custodial receipts include receipts collected as an agent for another entity. These include trust receipts – both from an individual or corporation – that are required to be held by government until the outcome of a courts case or procurement activity is determined, as well as cases where a department or agency holds receipts as a trustee for the fulfillment of some obligations. 15

Funding Source: Authorization Particulars UACS New General Appropriations 01 Continuing Appropriations 02 Supplemental Appropriations 03 Automatic Appropriation 04 Unprogrammed Funds 05 Retained Income/Funds 06 Revolving Funds 07 Trust Receipts 08 Unprogrammed Funds are standby appropriations for priority programs or projects of the government. The utilization of the Unprogrammed Funds may be approved if any of the following conditions are met: (unlock the UF if) Revenue collections for the year exceed targets, New revenues not included in the original revenue targets are successfully generated, or Foreign loan proceeds are generated for newly approved projects covered by perfected loan agreements. Retained Income/Funds are collections that are authorized by law to be used directly by agencies for the operation or specific purposes. These include but not limited to receipts from: State Universities and Colleges (SUCs) – tuition and matriculation fess and other internally generated receipts Department of Health (DOH) – hospital income such as hospital fees; medical, dental and laboratory fees; rent income derived from the use of hospital equipment and facilities; proceeds from sale of hospital therapeutic products, prosthetic appliances and other medical devices; diagnostic examination fees; donations in cash from individuals or non-government organizations satisfied with hospital services. Revolving Funds are receipts derived from business-type activities of departments/agencies as authorized by law, and which are deposited in an authorized government depository bank. These funds shall be self-liquidating. All obligations and expenditures incurred because of these business-type activities shall be charged against the Revolving Fund. 16

Funding Source: Fund Category Particulars Codes Old UACS Specific Budgets of National Government Agencies 101 101 to 150 GoP Counterpart Funds and Loans/Grants from Multilateral and Bilateral Institutions 102/171 151 to 250 Allocations to Local Government Units 103 251 to 275 Budgetary Support to Government Corporations 104 276 to 300 Financial Assistance to Metro Manila Development Authority 301-320 Special Accounts in the General Fund 105,183,401, 151 to 159 321 to 400 Special Purpose Funds 401 to 420 Unprogrammed Funds 421 to 440 Retained Income/Funds 441 to 500 Revolving Funds 161 to 164 501 to 600 Trust Receipts 101-184, 187 601 to 610 Others (Specify) 611 to 999 The Fund Category Code identifies specific funds maintained by the agency for accounting purposes, as well as for recording and reporting financial transactions. 17

Combined Funding Source Code Particulars Financing Authorization Fund Category = Funding Source Code a. General Fund 1   New General Appropriation 01 Agency Specific Budget 101 101101 Misc. Personnel Ben Fund 406 101406 b. Automatic Appropriation 04 RLIP 102 104102 Special Account in the Gen. Fund DPWH-Special Road Support Fund 346 104346 18

Business Rules to Facilitate Data Integrity: Fund Source Code Requires users to identify source of funds in the case of foreign assisted projects i.e. which country or multilateral agency provided financing for the project? Requires users to identify type of funds being given to GOCCs in the case of budgetary support i.e. Is it equity, subsidy or net lending?

UACS Structure Funding Source (6 digits) Organization (12 digits) Financing Source (1digit) Authorization (2digits) Fund Category (3digits) Organization (12 digits) Department Agency Lower-Level Operating Unit (7digits) Location (9 digits) Region Province City/Municipality Barangay Program/ Project/Purpose Program MFO/Project MFO/Project Category 1st level Activity/Project Sub Category 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) 20

Organization Code Segments OSEC-DBM, Regional Office - I 06 001 03 00001 12 Digits DEPARTMENT OLD DBM UACS  06 (2 digits) AGENCY OLD OSEC-DBM UACS001 (3 digits) LOWER-LEVEL OPERATING UNIT OLD Region I (Activity) UACS03 00001(RO-1) (7 digits) 21

Organization Code Segments 12 Digits DEPARTMENT 2 digits AGENCY 3 digits LOWER-LEVEL OPERATING UNIT 7 digits 3 segments 12 digits 22

Department Code 01 02 03 04 05 06 07 08 09 DEPARTMENT UACS Congress of the Philippines 01 Office of the President 02 Office of the Vice-President 03 Department of Agrarian Reform 04 Department of Agriculture 05 Department of Budget and Management 06 Department of Education 07 State Universities and Colleges 08 Department of Energy 09 23

Agency Code DEPARTMENT/AGENCY UACS Department of Budget and Management 06 000 0000000 Office of the Secretary 06 001 0000000 Government Procurement Policy Board- Technical Support Office 06 002 0000000 24

Examples of Operating Units Classification LOWER-LEVEL OPERATING UNITS CLASSIFICATION UACS Central Office 01 Staff Bureaus 02 Regional Offices/Centers for Health Development/ Regional Field Units 03 State Universities and Colleges - Campuses 04 Provincial Offices 05 National Irrigation Administration Offices 06 Schools Division/District Offices 08 Secondary Schools 09 25

Lower-Level Operating Unit DEPARTMENT/AGENCY/OPERATING UNIT UACS Department of Budget and Management 06 000 0000000 Office of the Secretary 06 001 0000000 Central Office 06 001 0100000 Regional Office – I 06 001 0300001 Regional Office – NCR 06 001 0300013 Regional Office – CAR 06 001 0300014 Regional Office – II 06 001 0300002 Regional Office – III 06 001 0300003 Government Procurement Policy Board- Technical Support Office 06 002 0000000 26

Organization Code Segments Department – an executive department created by law; includes any instrumentality having or assigned the rank of a department, regardless of its name or designation. (e.g. DepEd ) Agency – refers to various units of the Government, including bureau, office, instrumentality or GOCC. (e.g. DepEd – Office of the Secretary) Operating Unit – refers to entities charged with carrying out specific substantive functions or with directly implementing programs/projects of a department or agency, such as regional offices, line bureaus and field units. For the purposes of the UACS, these are organizational units under a Department or an Agency which may be:   1. directly receiving budgets from DBM, 2. recipients of fund transfers from higher level OUs, and/or 3. authorized to collect revenues

Organization Code Segments EXAMPLE: DEPARTMENT AGENCY LOWER LEVEL OPERATING UNIT UACS From: Department of Education 07 National Book Development Board (NBDB) 002 0000000 07 002 0000000 To: Department of Trade and Industry 22 National Book Development Board (NBDB) 007 22 007 0000000 Business Rules No. 3 If an agency has been moved from one department to another or if an operating unit has been moved from one agency to another, all new coding numbers that apply shall be used. The old codes shall never be assigned to any new agency or operating unit so as to preserve the transaction history of each agency. Example: In the event that the National Book Development Board (NBDB) is to be moved from the DepEd to the DTI, NBDB will assume department code 220070000000, which is the next available code under DTI. However, the code 070020000000 – originally set for the NBDB under DepEd – will no longer be assigned to any new agency under the department. All Information Systems should be able to track all transactions of the old and new NBDB. 28

UACS Structure Funding Source (6 digits) Organization (12 digits) Financing Source (1digit) Authorization (2digits) Fund Category (3digits) Organization (12 digits) Department Agency Lower-Level Operating Unit (7digits) Location (9 digits) Region Province City/Municipality Barangay Program/ Project/Purpose Program MFO/Project MFO/Project Category 1st level Activity/Project Sub Category 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) 29

Location Code Segments 9 Digits Region 2 digits Province City/ Municipality Barangay 3 digits The Location Code relies upon the codes used by National Statistical Coordination Board – Philippine Standard Geographic Code (NSCB-PSGC). 30

Location Code

Location Code Segments 9 digits Region 2 digits Province City/Municipality Barangay 3 digits

Region Code Region I – Ilocos 01 Region II – Cagayan Valley 02 Region III – Central Luzon 03 Region IV-A – CALABARZON 04 Region IV-B – MIMAROPA 17 Region V – Bicol 05 Region VI – Western Visayas 06 Region VII – Central Visayas 07 Region VIII – Eastern Visayas 08 Region IX – Zamboanga Peninsula 09 Region X – Northern Mindanao 10 Region XI – Davao 11 Region XII - SOCSKSARGEN 12 Region XIII – CARAGA 16 National Capital Region 13 Cordillera Administrative Region 14 Autonomous Region in Muslim Mindanao 15 If later on there will be a legislation creating the Bangsamoro Region it will be coded 16. 33 33

Province Code PROVINCE UACS CAR - Cordillera Administrative Region   PROVINCE UACS CAR - Cordillera Administrative Region Abra 01 Apayao 81 Benguet 11 Ifugao 27 Kalinga 32 Mountain Province 44 All provinces are arranged alphabetically, irrespective of the regions where they belong and coded accordingly. 34

Municipality Code MUNICIPALITY UACS   MUNICIPALITY UACS CAR - Cordillera Administrative Region 140000000 Abra 140100000 Bangued 140101000 Bolinay 140102000 Bucay 140103000 Bucloc 140104000 In the case of Municipalities, these are arranged alphabetically within the province and coded accordingly. Barangays → Municipality → coded 35

UACS Structure Funding Source (6 digits) Organization (12 digits) Financing Source (1digit) Authorization (2digits) Fund Category (3digits) Organization (12 digits) Department Agency Lower-Level Operating Unit (7digits) Location (9 digits) Region Province City/Municipality Barangay Program/ Project/Purpose Program MFO/Project MFO/Project Category 1st level Activity/Project Sub Category 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) 36

MFO/PAP Code Segments MFO/PAP Code 9 Digits Program 1 digit MFO Activity Code 1st Level 2nd Level 4 digits Project Project Category Project Sub-Category Project Title Purpose (SPF) 3rd Level A Program is an integrated group of activities that contributes to an agency or department’s continuing objective. Examples include General Administration and Support, Support to Operations, and Operations. An activity is defined as a work process that contributes to the fulfilment of a program or project. Each activity shall be attributed to only one MFO. Activities are to be assigned to General Administration and Support, or Support to Operations if they benefit internal clients. On the other hand, an activity that benefits external clients shall be attributed to a Major Final Output. Projects are special department/agency undertakings carried out within a definite timeframe and which are designed to produce a pre-determined measure of goods or services (MFOs). A project is considered an investment toward expanding the capacity of a department or agency to deliver MFOs. An MFO is defined as a good or service that a department or agency is mandated to deliver to external clients through the implementation of programs, activities and projects. 37

Programs, Projects or Purpose PAP Category Programs, Projects or Purpose UACS General Administration and Support (GAS) 1 Support to Operations (STO) 2 Operations 3 Locally-Funded Projects 4 Foreign-Assisted Projects 5 Purpose 6 In the 2014 National Expenditure Program, the budgets of agencies are shown under the following programs: General Administration and Support Support to Operations Operations Locally-funded Projects Foreign-Assisted Projects Under GAS and STO, we have activities or in some cases, sub-activities. For those under operations, the activities are further grouped into MFOs, then we have activities/sub-activities under each of the MFOs. 38

Project Category Project Category UACS Physical Infrastructure Buildings and Other Structures 01 Flood Control and Drainage 02 Non-Road Transport Infrastructure 03 Power and Communications Infrastructure 04 Roads and Bridges 05 Water Management 06 Non Physical Infrastructure Projects Economic Development 07 Education 08 Environmental Protection 09 Governance 10 Health 11 Recreation, Sports and Culture 12 Research and Development 13 Social Protection 14

Project Sub-Category PARTICULARS UACS Buildings and Other Structures 0100 School Buildings 0101 Health Facilities 0102 Flood Control 0200 Flood Control Structures/Facilities 0201 Drainage/Protection Works 0202 Governance 1000 General Public Services 1001 Defense 1002 Public Order and Safety 1003 Systems Development 1004 Capacity Development 1005 Governance and Accountability Improvement 1006 40

Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary PARTICULARS UACS General Administration and Support 1 00 0000 General Administration and Support Services 01 General Management and Supervision 0001 Support to Operations 2 Budget and Management Support Services Legal Services Information and Communications Technology Systems Services 0002 Training and Information Services 0003 41

Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary PARTICULARS UACS Operations 3 00 0000 MFO 1: Budget Policy Advisory Services 01 Fiscal policy research, budget planning and programming, including provision of technical secretariat services to the Development Budget Coordination Committee (DBCC) MFO 2: Budget Management Services 02 Planning, management and monitoring of the annual budget program Evaluation, release and monitoring of funding requirements and organization, staffing and compensation proposals of National Government Agencies, including State Universities and Colleges, GOCCs and LGUs 42

Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary CONTINUED PARTICULARS UACS MFO 3: Organizational Productivity Enhancement Services 3 03 00 0000 Policy formulation and standards-setting, and evaluation of agency proposals 01 Internal control systems and procedures towards productivity improvement 0001 Major organization and staffing modification, compensation and position classification 0002 MFO 4: Performance Review and Evaluation Services 04 Financial and physical performance review and evaluation 43

Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary CONTINUED PARTICULARS UACS Locally-Funded Projects 4 00 0000 Governance 10 Governance and Accountability Improvement 06 Budget Improvement Project 0001 Philippine Government Electronic Procurement Systems - PhilGEPS 0002 44

UACS Structure Funding Source (6 digits) Organization (12 digits) Financing Source (1digit) Authorization (2digits) Fund Category (3digits) Organization (12 digits) Department Agency Lower-Level Operating Unit (7digits) Location (9 digits) Region Province City/Municipality Barangay Program/ Project/Purpose Program MFO/Project MFO/Project Category 1st level Activity/Project Sub Category 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) 45

Revised Chart of Accounts Object Code Segments UACS Object Code 10 Digits COA Revised Chart of Accounts 8 digits Sub-Object 2 digits 46

COA Revised Chart of Accounts (RCA) Has been substantially revised to consolidate some line items, add clarity to overall structure and to facilitate compliance with International Public Sector Accounting Standards Moved away from the 2003 3-digit coding framework to a 2012 8-digit framework 47 47

Object Code Every item on the COA’s Revised Chart of Accounts included Sub-Object codes added to meet DBM, BTr, DoF & COA reporting requirements Capital Outlay codes added in correspondence with relevant COA’s Revised Chart of Accounts Asset Codes Some Lump-Sum Codes added for use prior to transfer to Departments 48

Object Code Framework Every item on the COA Revised Chart of Accounts included Sub codes COA added to meet DBM, BTr, DoF and COA reporting requirements Capital Outlay codes added corresponding with relevant COA Revised Chart of Account asset codes

Starting Point – COA’s Revised Chart of Accounts 5 Expenses 01 Personnel Services Salaries and Wages 010 Salaries and Wages - Regular 020 Salaries and Wages - Casual/Contractual 02 Other Compensation Personal Economic Relief Allowance (PERA) Representation Allowance 030 Transportation Allowance 040 Clothing/Uniform Allowance 050 Subsistence Allowance 060 Laundry Allowance 070 Quarters Allowance 50

Starting Point – COA’s Revised Chart of Accounts 5 Expenses 01 02 080 Productivity Incentive Allowance 090 Overseas Allowance 100 Honoraria 110 Hazard Pay 120 Longevity Pay 130 Overtime and Night Pay 140 Year End Bonus 150 Cash Gift 990 Other Bonuses and Allowances 51

Sub-Object Codes Expenses 50000000 00 Personnel Services 50100000 Salaries and Wages 50101000 Salaries and Wages - Regular 50101010 Basic Salary - Civilian 01 Base Pay - Military/Uniformed Personnel 02 Salaries and Wages - Casual/Contractual 50101020 Other Compensation 50102000 Personnel Economic Relief Allowance (PERA) 50102010 PERA - Civilian PERA - Military/Uniformed Personnel Representation Allowance 50102020 Transportation Allowance 50102030 RATA of Sectoral/Alternate Sectoral Representatives 52

New Codes for Capital Outlays 50600000 00 Investment Outlay 50601000 Investment in Government-Owned and/or Controlled Corporations 50601010 Investment in Associates 50601020 Loans Receivable Accounts Outlay 50602000 Loans Receivable - Government-Owned and/or Controlled Corporations 50602010 Loans Receivable - Others 50602990 Investment Property Outlay 50603000 Land and Buildings Outlay 50603010 Investment Property – Land 01 Investment Property – Buildings 02 Property, Plant and Equipment Outlay 50604000 Land Outlay 50604010 Land Under COA Circular 2013-002 dated January 30, 2013 the Revised Charts of Accounts shall be implemented starting January 1, 2014. 53

Revenue Regional Office Revenue Account Fund Source Organization Location 9 digits Object Code 6 Digits Department 2 digits Agency Operating Unit 5 Digits Region Province City Municipality Barangay 3 digits 10 digits General Fund DoF BIR Bacolod City Revenue Regional Office Western Visayas Income Tax Individuals 101101 11 003 11 00012 06 00 000 40101010 01 Example of coding - Revenue Excludes Program MFO Activity Project Code element

Asset Account Funding Source 6 Digits Organization 12 digits Location Object Code 10 digits Financing 1 Authorization 2 Fund Category 3 Department 2 digits Agency 3 digits Operating Unit 7 digits Region Province City Municipality Barangay Chart of Accounts 8 Sub Object 2 General Fund DOF BIR Cagayan Revenue Regional Office Cagayan Valley Cash – Collecting Officers 101101 11 003 11 00003 02 00 000 10101010 00

Liability Account Funding Source 6 Digits Organization 12 digits Location 9 digits Object Code 10 digits Financing – 1 Authorization 2 Fund Category - 3 Department 2 digits Agency 3 digits Operating Unit 7 Digits Region Province City or Municipality 2 digits LGU 3 COA CoA* Object 8 digits Sub-Object General Fund Department of Public Works and Highways Office of the Secretary Malabon-Navotas District Engineering Office National Capital Region Accounts Payable 101101 18 001 18 00002 13 00 000 20101010 00 Excludes Program MFO Activity Project Code element and Fund Source element

Part III Code Administration

Code Administration Assigned codes are never reused for a purpose other than that for which they were originally assigned New codes are always to be assigned to: new organizational entities new fund sources new major final outputs new programs, new activities, new projects new object code descriptors So that transaction history is preserved and to ensure financial and performance data for one year is comparable with data from other years, the key business rules for UACS code management are firstly that

Code Administrators/Agencies Responsible FUNDING SOURCE 6 Digits ORGANIZATION 12 digits LOCATION 9 digits MFO/PROGRAM, ACTIVITY and PROJECT (PAP) OBJECT CODE SUB OBJECT 2 digits DBM Budget Technical Services NSCB DBM Budget Management Bureaus and NGAs COA Revised Chart of Accounts DBM Budget Technical Services + COA Subsidiary Accounts Assignment of codes is left to the discretion of the agencies mentioned in the slide. Requests for UACS codes should be submitted to appropriate agency. Note: Consistency of account classification and coding standard with the Government Finance Statistics is the responsibility of DOF-Bureau of Treasury

UACS Manual The Manual and its Appendices are available at DBM website under Latest Issuances: http://www.dbm.gov.ph/ Joint Circular No. 2013-1 UACS Manual UACS Appendices

What has been done so far? Approval of the COA Revised Chart of Accounts Issuance of the DBM-COA-DOF Joint Circular on the UACS Manual and its Appendices Adoption of UACS in the 2014 Budget Preparation through OSBPS into BPMS

What are the current initiatives affected by the UACS? Adoption of the GAA as a Budgetary Release Document Review of existing a) Release Documents, b) Budget Execution Documents, and c)Financial Accountability Reports – DBM/COA Enhancement of eNGAS to comply with UACS

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