Chapter 3 UACS - UACS PDF

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Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT COMMISSION ON AUDIT DEPARTMENT OF FINANCEUACSPRIMERUnified Accounts Code Structure Who are authorized or responsible for the deactivation and reactivation of the UACS codes? --------------------------------------------- 16 If the requir...

Description

Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT COMMISSION ON AUDIT DEPARTMENT OF FINANCE

UACS PRIMER Unified Accounts Code Structure

TABLE OF CONTENTS MESSAGE

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9

I.

INTRODUCTION ----------------------------------------------------------------------------------- 10

II.

BACKGROUND

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III. THE UNIFIED ACCOUNTS CODE STRUCTURE (UACS) -------------------------------------- 11 A. UACS DEFINITION --------------------------------------------------------------------------- 11 1. WHAT IS THE UACS? ------------------------------------------------------------------ 11 B.

UACS PURPOSE ------------------------------------------------------------------------------ 11 1. WHAT IS THE OBJECTIVE OF THE UACS? ----------------------------------------- 11 2. WHAT IS THE KEY PURPOSE OF THE UACS? ------------------------------------- 11 3. WHAT BENEFITS WILL THE UACS PROVIDE FINANCIAL USERS? ------------ 11 4. WHAT ARE THE REPORTS THAT ARE BEST SERVED BY THE UACS? --------- 12

C.

UACS APPLICATION ------------------------------------------------------------------------- 12 1. WHAT ARE THE GOVERNMENT AGENCIES COVERED BY THE APPLICATION OF THE UACS? ---------------------------------------------- 12 2. ARE LOCAL GOVERNMENT UNITS REQUIRED TO USE THE UACS? --------- 12

D. RESPONSIBILITIES FOR THE UACS ------------------------------------------------------ 12 1. WHO ARE RESPONSIBLE FOR THE ADMINISTRATION OF THE UACS? ----- 12 2. WHAT IS THE RESPONSIBILITY OF ALL AGENCIES UNDER THE UACS? ----- 13

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E.                

THE ELEMENTS OF THE UACS ------------------------------------------------------------ 13 1. HowmanydigitsaretheexistingUACSCodes?-------------------------------- 13 2. Whyisthereaneedforrefinement/improvementoftheUACS?---------- 13 3. WhatelementsoftheUACSareaffectedbytherefinement?-------------- 14 4. HowmanydigitswilltheUACShaveaftertherefinement? ---------------- 14 5. WhatarethecomponentsofFundingSourceCode? ------------------------ 14 6. WhatarethecomponentsofOrganizationCode? ---------------------------- 14 7. WhatarethecomponentsofLocationCode? --------------------------------- 14 8. WhatarethecomponentsofMFO/PAPCode? -------------------------------- 15 9. WhatarethecomponentsofObjectCode? ----------------------------------- 15 10. WhatisthegeneralrulefortheassignmentofUACSCodes? -------------- 15 11. Whatisthestatusofacodeatthetimeitiscreated? ----------------------- 15 12. Whatismeantbya“deactivatedcode”intheUACS? ----------------------- 15 13. Whenwillacodebedeactivated? ------------------------------------------------ 16 14. Cana“deactivated”codebereused? -------------------------------------------- 16 15. Howdoesthedeactivatedcodediffer  fromaninactivecodeinUACS? --------------------------------------------------- 16

UACS Primer 5

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16. Whoareauthorizedorresponsibleforthedeactivation  andreactivationoftheUACScodes? --------------------------------------------- 16 17. IftherequiredUACScodedoesnotexistintheUACSManual,  isitpossibletousethecodeclassifiedas“Others”? ------------------------- 16 18. HowoftenaretheUACSCodesupdated?--------------------------------------- 16

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F.               

FUNDING SOURCE CODE ------------------------------------------------------------------- 17 1. WhatisaFundingSource?---------------------------------------------------------- 17 2. WhatisaFundCluster?-------------------------------------------------------------- 17 3. Whataretheclustersoffundingsources?-------------------------------------- 17 4. Inkeepingthebooksofaccounts,  isitbyFundingSourceCodeuptothelowest  fundcategorylevel?Orbyfundcluster? ---------------------------------------- 17 5. WhatisthepurposeoftheFinancingSourceCode  andwhatisitsclassification? ------------------------------------------------------ 18 6. WhatistheAuthorizationCodeandwhatisitsclassification? ------------ 18 7. WhatisaFundCategoryCode,andhowisitclassified? -------------------- 18 8. IsthereaneedtocreatedifferentFundingSources  forthesameSpecialAccountintheGeneralFund(SAGF)  beingutilizedbythedifferentagencies? ---------------------------------------- 19 9. Whatisthebasisforthecreationorassignment  oftheFundingSourceCodeofeachagency? ---------------------------------- 19

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G.              

ORGANIZATION CODES -------------------------------------------------------------------- 19 1. IntheUACS,whatisconsideredtobeaDepartment? ---------------------- 19 2. WhatarethespecificUACSCodesforaDepartment?----------------------- 20 3. IntheUACS,whatisanAgency,andhowisitrelated  ordistinguishedfromaDepartment?-------------------------------------------- 21 4. IntheUACS,whatisanOperatingUnit?----------------------------------------- 21 5. WhatisthepurposeoftheUACSclassificationcode? ----------------------- 22 6. WhatarethespecificUACSclassificationcodes  foreachoperatingunit? ------------------------------------------------------------ 22 7. Whatarethespecificbusinessrules  forOrganizationCodeundertheUACS?----------------------------------------- 23 8. WilltherebeanewOrganizationCode  forarenamedorganizationalentity? -------------------------------------------- 24 9. WilltherebeanewOrganizationCodeforschoolstransferred  fromoneDivisiontoanotherwithinthesameregion? -------------------- 24

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H.     

LOCATION CODES --------------------------------------------------------------------------- 24 1. WhatistheuseandbasisoftheLocationCodes? ---------------------------- 24 2. WherecanIgetthecompletelistofLocationCodes? ----------------------- 24 3. WhatarethebasicbusinessrulesforLocationcoding? -------------------- 24 4. IstheLegislativeDistrictincludedinthecodingstructure?----------------- 25 5. HowdoweusetheLocationCodeintheUACS? ------------------------------ 25

6

UACS Primer

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I.

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MFO/PAPCODES ---------------------------------------------------------------------------- 25 1. What is COFOG? ---------------------------------------------------------------------- 25 2. ShouldtheSectorCodebeutilized  fortransactioncaptureandreporting? ------------------------------------------ 25 3. CanwechangethewordingsoftheSub-sector?------------------------------ 25 4. WhatisaHorizontalOutcomeinMFO/PAP? ---------------------------------- 26 5. WhatarethebasicbusinessrulesforMFO,ProgramandActivity?------- 26 6. WhatisaProject? -------------------------------------------------------------------- 27 7. WhatisaProjectCategory? -------------------------------------------------------- 27 8. IstheProjectCategoryuniquetoeachagency? ------------------------------- 28 9. Isthereanypossibilitythatoneprojectsub-category  mayappearinmorethanoneprojectcategory?------------------------------ 28 10. CanaProjectTitlebeapplicabletobothProjectsandOperations? ------ 28 11. WilltheMFO/PAPCodebethesameorisitchangingeveryyear?------- 28 12. Ifaprojectoranactivityiscompleted,cantheCodebeutilized  foranotherprojectoractivityinthesucceedingyear? --------------------- 28 13. WhatMFO/PAPCodeshallbeused  forFY2013appropriationwithvalidityextended  uptoDecember31,2014(continuingappropriation)? --------------------- 28 14. WhenwilltheProjectCodeintheUACSbedeactivated?------------------- 29 15. WhatMFO/PAPwillbeusedfortheSpecialPurposeFund? --------------- 29

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J.             

OBJECT CODE --------------------------------------------------------------------------------- 29 1. WhatisthepurposeofobjectinformationintheUACS? ------------------- 29 2. WhatisthesourceandbasisofobjectcodingintheUACS? --------------- 30 3. Whatisthestandardusedasabasisofcoding  intheCOARevisedChartofAccounts? ------------------------------------------ 30 4. Whatistheaccountingbasisforrecordingfinancial  transactionsinthenationalgovernment?--------------------------------------- 30 5. UndertheUACS,howaretheallotmentclasses  ofexpensescategorized?------------------------------------------------------------ 30 6. Whichagenciesareresponsiblefordisaggregation  ofObjectCodeintoSub-objectCodes? ----------------------------------------- 30 7. HowistheobjectcodingforCapitalOutlaysbeingharmonized? --------- 31 8. HowdowebooktheRetirementandLifeInsurance  Premiums(RLIP)forpersonalshareandgovernmentshare? -------------- 31

IV. ACRONYMS --------------------------------------------------------------------------------------- 31 V.

DEFINITION OF TERMS -------------------------------------------------------------------------ACTIVITY -------------------------------------------------------------------------------------CUSTODIAL FUNDS ------------------------------------------------------------------------------FOREIGN ASSISTED PROJECTS ----------------------------------------------------------------GENERAL FUND ----------------------------------------------------------------------------------

33 33 33 33 33

UACS Primer 7

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GOVERNMENT INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM (GIFMIS) ------------------------------------------------------- 33 LOCALLY-FUNDED PROJECTS (LFPS) ---------------------------------------------------------- 33 MAJOR FINAL OUTPUTS (MFOS) -------------------------------------------------------------- 33 OFF-BUDGETARY FUNDS ------------------------------------------------------------------------ 33 OPERATING UNITS -------------------------------------------------------------------------------- 33 (OPERATING UNITS) CLASSIFICATION CODE ------------------------------------------------ 34 PROGRAM -------------------------------------------------------------------------------------- 34 PROJECT ---------------------------------------------------------------------------------------- 34 PROJECT CATEGORY ----------------------------------------------------------------------------- 34 PUBLIC FINANCIAL MANAGEMENT (PFM) -------------------------------------------------- 34 RECEIPTS ------------------------------------------------------------------------------------ 34 RETAINEDINCOME/FUNDS ------------------------------------------------------------------ 34 REVENUE ------------------------------------------------------------------------------------ 34 REVOLVING FUNDS ------------------------------------------------------------------------------ 34 SPECIAL ACCOUNTS IN THE GENERAL FUND (SAGF) ------------------------------------- 35 SPECIAL PURPOSE FUNDS (SPFS) ------------------------------------------------------------- 35 TRUST FUND --------------------------------------------------------------------------------------- 35 UNIFIED ACCOUNTS CODE STRUCTURE (UACS) ------------------------------------------- 35 UNPROGRAMMED APPROPRIATIONS ------------------------------------------------------- 35

VI. UACSMFO/PAPELEMENT–SECTOROUTCOMECODEVALUES ---------------------- 36 VII. UACSMFO/PAPELEMENT–HORIZONTALOUTCOMECODEVALUES ---------------- 39

8

UACS Primer

Message We are at the core of making strong transformations in the Philippine public financial management (PFM) system that will bestservetheinterestsoftheFilipinopeople– amoreefficient,transparent,andaccountable governmentinthewayitmanagesthepeople’s budget. Since the beginning of the Aquino Administration,wehaveundertakensignificant key reforms to improve our budget system, all of which are strongly backed by the introduction of the Unified Accounts CodeStructure(UACS).TheUACSisnowbeingimplementedinthegovernment oversight agencies, thereby, harmonizing the way we account for, analyze, and reconcilethefinancesofthegovernment. To further ensure that the UACS is properly implemented within our agency and by our partner agencies, the UACS Primer was developed to serve as a guideforeveryoneresponsibleforplanning,budgeting,and accountingin their respective agencies. With this, information and guidance would be well within yourimmediatereach. The primerand its accompanying developmentswould nothave beenpossible withouttheeffortsoftheimplementationteaminDBMandtechnicalassistance providedbytheAustralianGovernment. Let us continuously strengthen good governance in the country, and remain committed,persistent,andsteadfastinenhancingthePhilippinePFMsystem.

FLORENCIO B. ABAD Secretary DepartmentofBudgetandManagement

UACS Primer 9

I. INTRODUCTION 

ThisbookletanswersmanyofthebasicquestionsabouttheUnifiedAccountsCode Structure(UACS).MostofthearticlescontainedhereinareextractedfromtheUACS Manual as adopted pursuant to Department of Budget and Management (DBM), DepartmentofFinance(DOF),CommissiononAudit(COA)JointCircularNo.2013-1 datedAugust6, 2013.TheUACSManual iscomposedofthreeparts: JointCircular –Pages1to4;UACSManual(policies) -Pages1to41;UACSManual-Appendices – Pages 1 to 349. The Primer also contains materials and information gathered fromthecombined effortsofthe oversightagencies incooperationwiththe UACS HarmonizationTeamduringaseriesoftrainingsconductedinthefirsthalfoftheyear ofimplementationoftheUACS.Thisbookletservesasahandyguidetoallfinancial usersofthegovernmentinvolvedintheimplementationoftheUACS.

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This Primer is expected to provide direction and guidance to DBM on the proper implementationoftheUACSinallphases ofthebudgetcycle,andgenerallyforall UACS financial users. This is also intended to be used for the UACS Help Desk as resourcematerialandshallbepostedandbemadeavailableontheUACSwebsitefor financialusers’access.

II. BACKGROUND 

Executive Order No. 55 s. 2011 mandated the Public Financial Management (PFM) CommitteecomposedoftheCOA,DBM,DOFandtheBureauoftheTreasury(BTr)to overseetheintegrationandautomationofgovernmentfinancialandinformationsystems andtheimplementationofthePFMReformRoadmap.TheRoadmapisimplemented throughsixkeyinitiatives,namely:BudgetReportingandPerformanceStandards(BRPS), AccountingandAuditingReforms(AAR),ImprovementofTreasuryCashManagement Operations (ITCMO), Liability Management (LM), Government Integrated Financial ManagementInformationSystem(GIFMIS),andCapacityBuilding(CB).

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InresponsetotheBRPSreforminitiative,andtoenabletheintegrationoffinancial systems, it is necessary to harmonize, simplify and consolidate data structures and apply a consistent set of budgeting and accounting rules and regulations for generating financial and physical performance reports vis-à-vis plans, policies and targets.InApril2013,thePFMCommitteeadoptedagovernment-wideharmonized budgetary,treasuryandaccountingcodeclassificationstructureortheUACS.

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WhiletheUACShasbeenimplementedbytheDBMandallothernationalgovernment agencies in the budget preparation and execution processes, many issues and concerns have been identified on how to apply the UACS properly. In a series of trainingsandmeetingsconductedwiththeoversightagencies,manyquestionswere raisedregardingthis.Theseissuesorconcernshavebeenprovidedwithsolutions.

10 UACS Primer

III. THE UNIFIED ACCOUNTS CODE STRUCTURE (UACS) A. UACSDefinition 1. WhatistheUACS? The UACS is a government-wide harmonized budgetary, treasury and accountingcodeclassificationstructurejointlydevelopedbytheDBM,COA, DOF andBTr whichaims tofacilitatefinancial reportingand consolidation of actual revenue collection and expenditures, enable the assessment of outturns against transparency/accountability and improve efficiency in termsofutilizationofgovernmentfunds.TheUACSwasinitiallyadoptedfor theFY2014budget. B. UACSPurpose 

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1. WhatistheobjectiveoftheUACS? The objective of the government-wide UACS is to establish the accounts and codes needed in reporting the financial transactions of the National Government of the Republic of the Philippines. The UACS provides the frameworkforidentifying,aggregatingandreportingfinancialtransactions inthebudgetprocess,accountingandauditing. 2. WhatisthekeypurposeoftheUACS? ThekeypurposeoftheUACSistoenablethetimelyandaccuratereportingof actualreceipts,collectionsandexpendituresagainstbudgetedprogrammed revenuesandexpenditures. 3. WhatbenefitswilltheUACSprovidefinancialusers? As a coding framework for financial transactions, the UACS ensures that all processes, from budgeting and cash management to accounting and audit,willfollowasingleclassificationsystem.Thenewcodesfacilitatethe gathering,aggregation,consolidationandreportingoffinancialtransactions withinanagencyandacrossgovernmentagencies. TheUACSservesasthebackboneforrecording,accounting,analyzingand reportinggovernmentfinances,andwillfacilitatetheintegrationoffinancial systemstowardstheimplementationoftheGovernmentIntegratedFinancial ManagementInformationSystem(GIFMIS).

UACS Primer 11

4. WhatarethereportsthatarebestservedbytheUACS? ReportingrequirementsthatwillbebestservedbytheUACSinclude: a. FinancialreportsasrequiredbytheDBM,COA,DOFandotheragencies, b. Financial Statements as required by the Public Sector Accounting StandardsBoard(PSASB)ofthePhilippines, c. Reportsrequiredby theexecutive officials/headsof departmentsand agencies,and d. Economicstatistics consistent withthe Government FinanceStatistics (GFS)Manual2001. C. UACSApplication 

1. What are the government agencies covered by the application of the UACS? The UACS will be used by all departments and agencies of the National GovernmentandGovernment-Owned orControlledCorporations(GOCCs) with Budgetary Support from the National Government including those maintainingtheSpecialAccountintheGeneralFund(SAGF). 2. AreLocalGovernmentUnitsrequiredtousetheUACS? Notatthistime.Butitisenvisionedthatthelocalgovernmentunitswillalso ...