1. UACS MFO/PAP Code 1

2. Funding Source 0 00 000 Financing Source (1) Authorization (2) Fund Category (3) Organization 00 000 00 00000 Department (2) Agency (3) Operating Unit Classification (2) Lower-Level Operating Unit (5) Location 00 00 00 000 Region (2) Province (2) City/ Municipality (2) Barangay (3) MFO/Program/ Activity/Project 0 00 00 0000 Program / Project / Purpose (1) MFO/Project Category/1 st Level Activity (2) 1 st level Act./ Project Sub Cat. /2 nd Level Act. (2) 2 nd level Act. /Project Title/ 3 rd Level Act. (4) Object 00000000 00 COA Revised Chart of Accounts (8) Sub-Object (2) UACS Coding Framework

3. MFO/PAP Code 9 Digits Program 1 digit MFO 2 digits Activity Code 1 st Level 2 digits 2 nd Level 4 digits Project 1 digit Project Category 2 digits Project Sub-Category 2 digits Project Title 4 digits Purpose (SPF) 1 digit Activity Code 1 st Level 2 digits 2 nd Level 2 digits 3 rd Level 4 digits MFO/PAP Code Segments

4. UACS Code Structure Refinement/Improvement of the UACS Code Structure

5. 5 The revision to the coding structure was approved by the PFM Committee on April 30, 2014 The PFM Budget Reporting and Performance Standard (BRPS) PIU is in the process of formalizing the coding structure revision and code values A Joint Circular (or Budget Circular) will be issued to inform all agencies / users – This will be done as soon as possible. Current Status / Actions Needed

6. Funding Source 00 0 00 000 Fund Cluster (2) Financing Source (1) Authorization (2) Fund Category (3) Organization 00 000 00 00000 Department (2) Agency (3) Operating Unit Classification (2) Lower-Level Operating Unit (5) Location 00 00 00 000 Region (2) Province (2) City/ Municipality (2) Barangay (3) MFO/Program/ Activity/Project 000 00 0 00 00 00000 Sector/Horizontal Outcomes (5) Program/ Project/ Purpose (1) MFO/Project Category (2) 1 st level Activity/Project Sub Category (2) 2 nd level Activity/Project Title (4 + 1) Object 00000000 00 COA Revised Chart of Accounts (8) Sub-Object (2) UACS Coding Framework (Revised/Improved)

7. The Revised/Improved UACS Fund Cluster Financing Source Authorization Code Fund Category Department Code Agency Code Operating Unit Class Lower Level Operating Unit Region Province City/Municipality Barangay Sector / Horizontal Outcomes Program/Project/ Purpose MFO/Proj. Category Act. Level 1/Sub-Cat. Act. Level 2/Proj. Title Revised Chart of Accounts Sub-Object Code Funding Source (8)Organization CodeLocation CodeMFO / PAP (15)Object Code NewExisting NewExisting (2)(6)(12)(9)(5)(9) - (10)(10) 000 00000000000000000 000000 00000 000000000000000

8. 8 Implementing UACS for Budget Execution Processes The UACS Code Structure has worked well for the Budget Preparation process There is a need for some refinement of the UACS Code Structure as the code structure gets applied in the Budget Execution, Accounting, Disbursement, Reporting process

9. 9 Identified Needed UACS Refinements: Change in Budget base from Performance-Informed Budget (PIB) Output to Outcome-based budget Identification (tagging) of Sector and Sub Sector (using CoFoG), and Horizontal Programs (many agencies) for Budget Preparation and Execution (e.g. Disaster Related, Climate Change, etc.)

10. 10 Existing UACS is not designed for Integration of Tagging under Outcomes, Sectors / Sub Sectors, Horizontal Programs, etc. when the MFO/PAP Code was structured – the structure was setup for vertical programs (within agency). Outcome – Sector / Horizontal (5-Digit), MFO/PAP

11. 11 In MFO/PAP, additional 6-digit codes for: Sector / Sub Sector (CoFoG) – 3 digits Horizontal Programs – 2 digits Additional 1 digit to the Project Title The Needed Revision/Improvement

12. Refinement to MFO/PAP Code Sector / Horizontal Outcomes Program/Project MFO/Project Category Act. Level 1/Sub-Cat. Act. Level 2/Project Title New MFO / PAP (15) New Existing (5) (9) - (10) (New (1)) 000 00000 00000

13. 13 Proposed for the MFO-PAP Element to address Outcomes is to utilize the Sectors / Sub Sectors from the Classifications of Functions of Government (CoFoG). This is the internationally recognized sectors for Outcome. This would be a 3 digit code Proposed for the MFO-PAP Element to address specific Horizontal Programs is a 2 digit code for this. This would include items for Climate Change, Disaster Related, MITHI, Poverty Reduction, etc. Outcome – Sector / Horizontal (5-Digit), MFO/PAP

14. 14 Example of Sector / Sub Sector (COFOG) Codes 010 – General Public Services 020 – Defense 030 – Public Order and Safety 040 – Economic Affairs 050 – Environmental Protection 060 – Housing and Community Amenities 061 – Housing Development 062 – Community Development 063 – Water Supply 064 – Street Lighting 070 – Health 080 – Recreation, Culture, Religion 090 – Education Outcome – Sector / Horizontal (5-Digit), MFO/PAP

15. 15 Example of Horizontal Programs – Outcome – Sector / Horizontal (5-Digit), MFO/PAP Code ValueDescription 01Employment 02Disaster Related 03Climate Change 04Poverty Reduction 05 MITHI (Medium Term ITC Harmonization Initiatives) 06Grassroots Participatory Budget 07Program Budget

16. 16 Every MFO/PAP Code shall be attributed to one or more outcome sector, and may or may not have horizontal program. In the absence of horizontal program the code shall be outcome sector, example “020” for Defense and “00”, or in full “020 00”. Another example is outcome sub-sector “061” for Housing Development, and horizontal program “02” for Disaster Related, the complete code is “061 02” Outcome – Sector / Horizontal (5-Digit), MFO/PAP

17. 17 MFO/PAP – Activity Level 2 / Project Title Some large agencies may have huge number of projects that may exceed the existing 4-digit code (9,999) within a few years. Increasing the project code to 5-digit (99,999) should be sufficient to handle the code for many decades. Project Title (additional 1-Digit), MFO/PAP

18. 18 Questions and Comments?

19. Thank You!