UNIFIED ACCOUNTS

CODE STRUCTUREWhat is it all about?A presentation to the Association of

Government Accountants of the Philippines (AGAP), Inc.

by:Luz M. CantorUndersecretary, DBM

October 23, 2015Aziza Paradise Hotel

Puerto Princesa City, Palawan

Video Presentation on UACS

Outline of PresentationPART I. The PFM Reform Roadmap and UACS

1. Background of PFM PFM Cycle and Gaps Financial Reporting

2. Executive Order No. 55 Deliverables

3. What is UACS? - Definition4. Main Purpose of UACS5. Main Objectives of the UACS6. Benefits of the UACS7. Impact of UACS to Budgeting, Treasury, Accounting

and Auditing8. Coverage

PART II. UACS Structure or Key Elements

1. Funding Source Code2. Organization Code3. Location Code4. MFO/PAP Code5. Object Code

PART III. Implementation of the UACS (Code Administration)

Part I

The PFM Reform Roadmap

and the UACS

budget not results-based

lack of funding predictability

weak budget oversight by Congress & public

weak cash management system

no common budgeting and accounting classification

weak monitoring of contingent liabilities

lack of budget credibility

Budget Cycle and Gaps2007 PEFA Assessment on the:

AUTHORIZATION

EXECUTION

ACCOUNTABILITY

PREPARATION

Financial ReportingPrior to 2014 PFM Goal

Messy traffic = 50 financial reports

Systematic flow of shared data

Oversight Agencies Oversight Agencies

Integrated FMIS

Operating Agencies Operating Agencies

Strengthening the Philippine PFM

EO No. 55 (s. 2011) directs the

implementation of FMIS and TSA

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

What is UACS? What is UACS?

a government-wide harmonized

budgetary, treasury and accounting

code classification framework to facilitate reporting of all financial transactions of

agencies

Main Purpose of the UACSTo serve as the foundation for the improvements of the Public Financial Management (PFM) Reforms

1.It serves as the backbone for recording, accounting, analyzing, and reporting government finances.

2.It enables the oversight agencies to take responsibilities for improving the way financial information is utilized.

3.It improves the existing coding structure to be harmonized between budget, accounting, and cash which previously are relatively independent from each other.

4.It enhances that Internal Control Structure to provide more complete and effective information.

Economic Statistics in accordance with the Gov’t Finance Statistics (GFS) Manual of 2001

Financial Reports required by DBM and COA

Main Objective of UACS: To have one coding framework to enable timely and accurate preparation of reports/documents:

Financial Statements required by the Public Sector Accounting Standards Board of the Phils.

Management Reports required by the executive officials/heads of departments

Benefits of the UACS1. To have one coding framework for whole Budget

Process (Preparation, Legislation, Execution, and Accountability) and for reporting Appropriation, Allotment, Obligation, Disbursement in all systems

2. To enable reporting of –a. Allotments released against appropriation;b. Obligations against allotments;c. Disbursements against obligations;

3. To facilitate compliance with Performance Informed Budgeting (PIB) where the Performance Information is already in the budget of agencies in the GAA

4. UACS, the means of turning data into meaningful information

Facilitates linkage to budget information, i.e., appropriation details, outcomes, performance measurements, outputs, etc. One coding for the different IT systems

of DBM: • Budget Preparation

o Online Submission of Budget Proposals Systemo Budget Preparation Management Systemo eAppropriation System

• Budget Execution and Accountabilityo eBudget Systemo Unified Reporting System (URS)

Impact of UACS to Budgeting

Harmonizes budget and accounting reporting formats

Efficiency of Process UACS compliant TSA system will facilitate efficient recording and accounting by Treasury

Reliability of Information Revenue and expenditure data are

verifiable from single source

Informed Judgement Data on receipts and disbursements will

provide Treasury with accurate/credible bases for cash, liquidity, payment, and liability management

Impact of UACS to Treasury (TSA)

Updated COA Chart of Accounts:

- integrates sub-codes for budgeting purposes- adds clarity to overall structure- facilitates compliance with International Public Sector Accounting Standards (IPSAS)

Impact of UACS to Accounting/Auditing

Harmonized classification of accounts (budgeting and accounting) as well as reporting formats

UACS CoverageAll 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 Key Elements

UACS (5) Elements = 54 Codes

Funding Source (8)

Organization Code (12)

Location Code (9)

Object Code (10)

MFO /PAP code (15)

Funding Source Code = 8 Digits

Fund Cluster

Financing Source

Authorization Fund

Category

2 1 2 3

1st Element

1General

Fund

01New General Appropriation

101Specific Budget

of NGA

01Regular

Agency Fund

Example: 01- 1- 01-101

Funding Source: Fund Cluster Code

Funding Source: Financing

Funding Source Segment: Authorization Code

Funding Source Segment: Fund Category Code

Sample Funding Source Sample Funding Source CodeCodeRegular Agency FundRegular Agency FundFund

Cluster

Financing Source

Authorization Code

Fund Categor

yDescription

Full Funding Source Code

01 Regular Agency Fund

1 General Fund

01 New General Appropriations

101 Specific Budget of NGAs

01101101

407 Pension and Gratuity Fund

01101407

04 Automatic Appropriations

102 Retirement and Life Insurance Premiums

01104102

Sample Funding Source Sample Funding Source CodeCodeForeign Assisted Projects FundForeign Assisted Projects FundFund

Cluster

Financing Source

Authorization Code

Fund Categor

yDescription

Full Funding Source Code

02 Foreign Assisted Projects Fund

1 General Fund

01 New General Appropriations

151 GOP Counterpart Funds

02101151

156 Canada 02101156

163 International Bank of Reconstruction and Development (IBRD)

02101163

167 Japan 02101167

Sample Funding Source Sample Funding Source CodeCodeSpecial Accounts – Locally Special Accounts – Locally Funded/Domestic GrantsFunded/Domestic GrantsFund

Cluster

Financing Source

Authorization Code

Fund Categor

yDescription

Full Funding Source Code

03 Special Accounts – Locally Funded/Domestic Grants Fund

1 General Fund

04 Automatic Appropriations

368 Commission on Filipinos Overseas (CFO-SAGF)

03104368

373 Housing and Land Use Regulatory Board (HLURB-SAGF) – Service/Processing Fees. Fines, Penalties

03104373

Organization Code = 12 Digits

Department AgencyOperating Unit Classification

Lower level Operating Unit Classification

2 3 2 5

2nd Element

Example: 06 – 001 - 0300003

Dept. of Budget &

Management

Office of the Secretary

Regional Office

Lower Level Operating Unit

a) Department CodeDEPARTMENT UACS

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

Organization Code

b) 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

Organization Code

c) Operating Unit Classification CodeOPERATING 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

Collection Districts 10

Revenue Regional Offices – BIR 11

Revenue District Offices – BIR 12

Organization Code

c) Operating Unit Classification CodeOPERATING UNITS CLASSIFICATION UACS

Embassies/Consulates General/Manila and Regional Consular Offices - DFA

13

Special/Retained Hospitals – DOH 14Treatment and Rehabilitation Centers – DOH 15Technical/Vocational Schools - TESDA 16Key Budgetary Units – DND 17District Engineering Offices and Sub District Engineering Offices – DPWH

18

Land Transportation Offices – DOTC 19Land Transportation Franchising and Regulatory Board - DOTC

20

Regional Development Councils – NEDA 21Autonomous Region in Muslim Mindanao 22Philippine National Railway 23BSGC – Subsidiary 24

Organization Code

d) Lower-Level Operating UnitDEPARTMENT/AGENCY/OPERATING

UNITUACS

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

Organization Code

Business Rules for Organization Code

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 0000000 22 007 0000000

EXAMPLE:

Location Code = 9 Digits

Region ProvinceCity/

MunicipalityBarangay

2 2 2 3

3rd Element

Example: 13- 39- 05- 033

National Capital Region

City of Manila, First District

Sta. CruzBarangay

331

The complete list of Location Code can be obtained by visiting the website of

Philippine Statistics Authority (PSA):

http://www.nscb.gov.ph/activestats/psgc/listmun.asp

Location Code

PAP /MFO Code = 15 Digits

Sector Outcome

Horizontal Program

Program

MFO

Activity Code

1st level 2nd level

ProjectProject

CategoryProject Sub Category

Project Title

3 2 1 2 2 5

4th Element

Example: 103 00 4 01 03 01925

GeneralServices

Horizontal Prog.

Locally-Funded Project

Buildings and Other Structures

Multi-Purpose Buildings

Rehab of Multi-purpose Building,

Palmera 2 Subdivision, Sta.

Monica, Quezon City

Enhancements to the UACS

Adoption of the Organization for Economic Cooperation and Development (OECD) international standard for Sector and Sector and Sub-Sector OutcomeSub-Sector Outcome,, which is the Classification of Functions of Government (COFOG).

Inclusion of the Horizontal ProgramHorizontal Program codes as a segment of the MFO/PAP element.

What is COFOG ?

The Classification of Functions of Government (COFOG) is a detailed classification of the functions, or socioeconomic objectives, that general government units aim to achieve through various kinds of expenditures.

Why adopt COFOG?

Many users of data particularly the Public, want to know what government spent money on, rather than who spent it or who received it. People generally care about services.

Uses of COFOG

• An instrument for policy formulation, budget analysis, accountability and day-to-day administration of the budget.

• Allows reporting along international standards (like GFS)

• The functional classification organizes government activities according to their purposes.

• It is independent of the government organizational structure.

Adoption of COFOG

• Sector outcomes in UACS are intended to provide the means to capture information on government expenditures at an aggregated level

• Significantly improves the information needed for setting budget priorities and budget analysis

It is already established and well documented in the GFS Manual.

It facilitates international comparisons.

Function Classification Structure

The functions of government are divided into ten (10) sectors (1st level):

1. General Public Services 6. Housing and Community Amenities 2. Defense 7. Health 3. Public Order and Safety 8. Recreation, Culture and Religion 4. Economic Affairs 9. Education 5. Environmental Protection 10. Social Protection

UACS MFO/PAP Element – Sector Outcome Code Values

Code Value Description Type

100 General public services Sector

120 Defense Sector

140 Public order and safety Sector

160 Economic affairs Sector

180 Environmental protection Sector

200 Housing and community amenities Sector

220 Health Sector

240 Recreation and culture Sector

260 Education Sector

280 Social protection Sector

UACS MFO/PAP Element – Sector Outcome Code Values for General Public Services

Code Value Description Type100 General public services Sector

101 Executive and legislative organs, financial and fiscal affairs, external affairs Sub-Sector

102 Foreign economic aid Sub-Sector103 General services Sub-Sector104 Basic research Sub-Sector105 R&D General public services Sub-Sector106 General public services n.e.c. Sub-Sector107 Public debt transactions Sub-Sector

108 Transfers of a general character between different levels of government Sub-Sector

109 Governance / Government Institutions and Regulatory Regime Sub-Sector

110 - 119 Not yet assigned Sub-Sector

Code Value Description Type

120 Defense Sector

121 Military Defense Sub-Sector

122 Civil Defense Sub-Sector123 Foreign military aid Sub-Sector124 R&D Defense Sub-Sector125 Territorial integrity Sub-Sector126 Defense against cybercrimes Sub-Sector

127 Defense n.e.c. (Not Elsewhere Classified) Sub-Sector

128-139 Not yet assigned Sub-Sector

UACS MFO/PAP Element – Sector Outcome Code Values for Defense

Code Value Description Type

140 Public order and safety Sector

141 Police services Sub-Sector

142 Fire-protection services Sub-Sector

143 Law courts Sub-Sector

144 Prisons Sub-Sector

145 R&D Public order and safety Sub-Sector

146 Public order and safety n.e.c. Sub-Sector

147-159 Not yet assigned Sub-Sector

UACS MFO/PAP Element – Sector Outcome Code Values for Public Order and Safety

PAP /MFO Code = 15 Digits

Sector Outcome

Horizontal Program

Program

MFO

Activity Code

1st level 2nd level

ProjectProject

CategoryProject Sub Category

Project Title

3 2 1 2 2 5

4th Element

Example: 103 00 4 01 03 01925

GeneralServices

Horizontal Prog.

Locally-Funded Project

Buildings and Other Structures

Multi-Purpose Buildings

Rehab of Multi-purpose Building,

Palmera 2 Subdivision, Sta.

Monica, Quezon City

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

Project Category and Sub-CategoryPhysical Infrastructure Projects Buildings and Other Structures Flood Control and Drainage Roads and Bridges Non-Road Transport

Infrastructure Power and Communications

Infrastructure, and Water Management

Non Physical Infrastructure Projects Economic Development Education Environmental Protection Governance Health Recreation Sports and Culture Research and Development, and Social Protection

Project Category and Sub-Category

Governance 1000

General Public Services 1001

Defense 1002

Public Order and Safety 1003

Systems Development 1004

Capacity Development 1005

Governance and Accountability Improvement 1006

Example of MFO/PAP CodingDEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary

PARTICULARS UACSGeneral Administration and Support 1 00 00 0000

General Administration and Support Services 1 00 01 0000General Management and Supervision 1 00 01 0001

Support to Operations 2 00 00 0000Budget and Management Support Services 2 00 01 0000

Legal Services 2 00 01 0001Information and Communications Technology Systems Services 2 00 01 0002Training and Information Services 2 00 01 0003

Example of MFO/PAP CodingDEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary

PARTICULARS UACS

Operations 3 00 00 0000MFO 1: Budget Policy Advisory Services 3 01 00 0000

Fiscal policy research, budget planning and programming, including provision of technical secretariat services to the Development Budget Coordination Committee (DBCC) 3 01 01 0000

MFO 2: Budget Management Services 3 02 00 0000Planning, management and monitoring of the annual budget program 3 02 01 0000Evaluation, release and monitoring of funding requirements and organization, staffing and compensation proposals of National Government Agencies, including State Universities and Colleges, GOCCs and LGUs 3 02 02 0000

Example of MFO/PAP Coding

PARTICULARS UACS

MFO 3: Organizational Productivity Enhancement Services 3 03 00 0000Policy formulation and standards-setting, and evaluation of agency proposals 3 03 01 0000

Internal control systems and procedures towards productivity improvement 3 03 01 0001Major organization and staffing modification, compensation and position classification 3 03 01 0002

MFO 4: Performance Review and Evaluation Services 3 04 00 0000Financial and physical performance review and evaluation 3 04 01 0000

DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary CONTINUED

Example of MFO/PAP CodingDEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary CONTINUED

PARTICULARS UACSLocally-Funded Projects 4 00 00 0000

Governance 4 10 00 0000Governance and Accountability Improvement 4 10 06 0000

Budget Improvement Project 4 10 06 0001Philippine Government Electronic Procurement Systems - PhilGEPS 4 10 06 0002

5th Element

Object Code = 10 Digits

Object Sub-Object

8 digits 2 digits

Example: 50604040-01

ExpensesCapital Outlay

Bldgs. & Structures

Outlay

Property, Plant & Equipt.

Buildings

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

Description CoA Assets 1 Liabilities 2 Equity 3 Income 4 Expenditure 5

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

Starting Point – COA’s Revised Chart of Accounts5 Expenses5 01 Personnel Services5 01 01 Salaries and Wages5 01 01 010 Salaries and Wages - Regular5 01 01 020 Salaries and Wages - Casual/Contractual5 01 02 Other Compensation

5 01 02 010Personal Economic Relief Allowance (PERA)

5 01 02 020 Representation Allowance5 01 02 030 Transportation Allowance5 01 02 040 Clothing/Uniform Allowance5 01 02 050 Subsistence Allowance5 01 02 060 Laundry Allowance5 01 02 070 Quarters Allowance

Starting Point – COA’s Revised Chart of Accounts5 Expenses5 01 02 080 Productivity Incentive Allowance5 01 02 090 Overseas Allowance5 01 02 100 Honoraria5 01 02 110 Hazard Pay5 01 02 120 Longevity Pay5 01 02 130 Overtime and Night Pay5 01 02 140 Year End Bonus5 01 02 150 Cash Gift5 01 02 990 Other Bonuses and Allowances

Sub-Object CodesExpenses 50000000 00

Personnel Services 50100000 00

Salaries and Wages 50101000 00

Salaries and Wages - Regular 50101010 00

Basic Salary - Civilian 50101010 01

Base Pay - Military/Uniformed Personnel 50101010 02

Salaries and Wages - Casual/Contractual 50101020 00

Other Compensation 50102000 00

Personnel Economic Relief Allowance (PERA) 50102010 00

PERA - Civilian 50102010 01

PERA - Military/Uniformed Personnel 50102010 02

Representation Allowance 50102020 00

Transportation Allowance 50102030 00

Transportation Allowance 50102030 01

RATA of Sectoral/Alternate Sectoral Representatives 50102030 02

New Codes for Capital Outlays Capital Outlays 50600000 00

Investment Outlay 50601000 00

Investment in Government-Owned and/or Controlled Corporations 50601010 00

Investment in Associates 50601020 00

Loans Receivable Accounts Outlay 50602000 00Loans Receivable - Government-Owned and/or Controlled Corporations 50602010 00

Loans Receivable - Others 50602990 00

Investment Property Outlay 50603000 00

Land and Buildings Outlay 50603010 00

Investment Property – Land 50603010 01

Investment Property – Buildings 50603010 02

Property, Plant and Equipment Outlay 50604000 00

Land Outlay 50604010 00

Land 50604010 01

Asset AccountFunding Source6 Digits

Organization12 digits

Location9 digits

Object Code

10 digits

Financing 1 Authorizatio

n 2Fund

Category 3

Department2 digits

Agency3 digits

Operating Unit

7 digits

Region2 digits

Province2 digits

City Municipality

2 digits

Barangay3 digits

Chart of Accounts

8Sub Object

2

General Fund

DOF BIR Cagayan Revenue Regional

Office

Cagayan Valley

Cash – Collecting Officers

101101 11 003 11 00003 02 00 00 000 10101010 00

Liability AccountFunding Source

6 DigitsOrganization

12 digitsLocation9 digits

Object Code

10 digits Financing – 1Authorization

2Fund Category - 3

Department2 digits

Agency3 digits

Operating Unit

7 Digits

Region 2 digits

Province2 digits

City or Municipality 2

digits

LGU3

COA CoA* Object

8 digits Sub-Object

2 digits

General FundDepartment 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 00 000 20101010 00

Excludes Program MFO Activity Project Code element and Fund Source element

Revenue Account

Excludes Program MFO Activity Project Code element

Fund Source

OrganizationLocation9 digits

Object Code

6 Digits Department2 digits

Agency2 digits

Operating Unit

5 Digits

Region 2 digits

Province2 digits

CityMunicipality

2 digits

Barangay3 digits

10 digits

General Fund

DoF BIR Bacolod City

Revenue Regional

Office

Western Visayas

Income Tax Individuals

101101 11 003 11 00012 06 00 00 000 40101010 01

1. COA-DBM-DOF Joint Circular No. 2013-1 dated August 6, 2013 – Implementation of UACS for all government financial transactions effective January 2, 2014

Implementation of the UACS

2. COA-DBM Joint Circular No. 2014-1 Harmonized Budget and Financial Accountability Reports dated July 2, 20143. COA-DBM-DOF Joint Circular No. 2014-1 Enhancement of the UACS dated November 7, 2014

Part II

UACS Website (www.uacs.gov.ph)

Code Administration

Code AdministrationBusiness Rules

1. Assigned codes are never reused for a purpose other than that for which they were originally assigned

2. 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

Code Administrators/Agencies Responsible

FUNDING SOURCE8 digits

ORGANIZATION12 digits

LOCATION9 digits

MFO/PROGRAM,ACTIVITY and PROJECT (PAP) 15 digits

OBJECT CODE8 digits

SUB OBJECT2 digits

DBMBudget Technical Bureau

DBMBudget Technical Bureau

PSA (formerly NSCB)

DBM Budget Management Bureaus and NGAs

COARevised Chart of Accounts

DBM Budget Technical Bureau + COA Subsidiary Accounts

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. 2013-1UACS ManualUACS Appendices

Approval of the COA Revised Chart of Accounts

Issuance of the DBM-COA-DOF Joint Circularon the UACS Manual and its Appendices

Adoption of UACS starting in 2014 Budget Preparation through OSBPS into BPMS

What has been done so far?

Adoption of the GAA as a Budgetary Release Document

Enhancement of eNGAS to comply with UACS

What are the current initiatives affected by the

UACS?

Review of existing a) Release Document, b) Budget Execution Documents, and c)Financial Accountability Reports

“It is not because things are difficult that we do not dare; it is because we do not dare that they are difficult

~Seneca