Post on 25-Dec-2015
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Unified Accounts Code Structure: What are its benefits to Public
Financial Manager?
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PAGBA Convention, Sarabia Manor Hotel, Iloilo CityApril 5, 2013
ContentA. Introduction
What is Public Financial Management (PFM)? PFM System Weaknesses Overview of PFM Reform Roadmap
B. Budget Reporting and Performance Standards Project Key PFM Reform Projects Meaning and Purpose of Unified Accounts Code
Structure (UACS) Key Elements of the UACs
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What is PFM? Public Financial Management (PFM) is a system of rules,
procedures and practices for government to manage public finances in the areas of:
budgeting accounting auditing cash management management of public debt revenue generation public reporting on public sector financial operations
budget not results based
lack of funding predictability
weak oversight of Congress and publiclack of efficient cash management
management
messy traffic of documents
monitoring of contingent liabilities
lack of budget credibility
PFM Gaps in the Budget Process
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Facilitate the development of GIFMIS
GAP/WEAKNESS
Lack of a common classification system for budgeting, accounting, auditing and cash management
Revise New Government Accounting System (NGAS) Manual and chart of accounts
Consolidated FM reporting requirements based on harmonized classification of all accounts
Real-time reports, access to financial data and control of obligations and disbursements for more effective financial control and accountability
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Harmonize budgetary and accounting classifications and reporting
Codify PFM rules and complete PFM Rules Manual for capacity building
Identify common reporting requirements of oversight agencies and line departments
GAP/WEAKNESS
Lack of a common classification system for budgeting, accounting, auditing and cash management
Identify common reporting requirements of oversight agencies and line departments
Key PFM Gaps and Strategies
Financial Reporting
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This is now… In the long run, the Philippine PFM needs this kind of information system
PFM Reform Roadmap Master plan for modernizing the
financial management system of the government
Executive Order 55 (s. 2011) directing the integration and automation of PFM systems:
Government Integrated Financial Management Information System (GIFMIS)
Treasury Single Account (TSA)
Efficient Budget Release System
Systematic Financial and Physical Reporting and Auditing
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Budget Reporting and Performance Standards Project
Objectives• Harmonize and consolidate data structures and apply consistent set of
budget and accounting rules for reporting• Generate real-time reports on budget utilization and financial performance
through GIFMIS (long term)• Consolidated and agency level budget execution and budget utilization
reports published in COA and DBM websites
Key Activities • Formulation of Unified Accounts Code Structure to harmonize budgetary
classifications and chart of accounts • Harmonized DBM and COA financial reporting forms • Formulation of performance standards initially with restructuring of
programs/activities/projects (NBC 532) and issuance of OPIF Reference Guide
• Glossary of PFM Terminologies
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Fiscal Simulation
Budget Preparation
Budget Management Budget Execution
Commitment Management
Payments Management
Receipts Management
Cash Management
Accounting & Fiscal Reporting
Asset Management
Procurement(PhilGEPS)
Debt Mgmt(DMFAS)
Human Resources Management
Payroll(NPS)
Plantilla(GMIS)
Revenue Management
Customs (BOC)
Internal Revenue (BIR)
Auditing Mgmt (IRRBAS)
Securities Management
GIFMIS
DataWarehousing
Business Intelligence
Government EIS(GEIS)
Central Bank &
Government Servicing
Banks(TSA)
Commercial Banks
CreditorVendor/Supplier
Public Employee
Portal
User
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UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
A government wide, harmonized budgetary and accounting code classification that will facilitate financial reporting
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Unified Accounts Code Structure
Enable reporting of actual revenue collections and expenditures against programmed revenues and expenditures
Enable the comparison of: allotment releases vs. appropriations, obligations vs. releases, and actual disbursements vs. obligations for
programs/projects/activities of spending agencies
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Purpose of the UACS
Contains the accounts and codes to be adopted in:
identifying aggregating budgeting accounting auditing, and reporting the financial transactions of the government
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UACS Manual
Financial reports as required by the Department of Budget and Management and the Commission on Audit;
Financial Statements as required by the Public Sector Accounting Standards Board of the Philippines;
Management reports as required by heads of departments/agencies; and
Economic Statistics consistent with the Government Finance Statistics Manual 2001
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Reporting Requirements Supported by UACS
Funding Source Segments
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Funding Source6 Digits
Financing Source1 digit
1st
Authorization2 digits
2nd & 3rd
Fund Category3 digits
4th to 6th
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Particulars Financing Autho Fund Cat =
Funding Source Code
General Fund 1 New General Appropriation 01 Agency Specific Budget 101 101101 Misc. Personnel Ben Fund 406 101406
Automatic Appropriation 04 RLIP 102 104102
Special Account in the Gen. Fund
DPWH-Special Road Support Fund 346 104346
Combined Funding Source Code
Department – the primary subdivision of the Executive Branch responsible for the overall management of a sector or a permanent national concern with nationwide or international impact– headed by a Secretary or an official with an equivalent position level For purposes of the UACs, Constitutional Offices, the Judiciary and the Legislature are categorized as Department-level entities.
Agency – refers to any of the various units of the Government, including an office, instrumentality, or GOCC, that may not approximate size of a Department but which nevertheless performs tasks that are important and whose area of concern is nationwide in scope
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Organization Code Segments
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Organization Code Segments
Lower-Level Operating Unit -organizational entities charged with carrying out specific substantive functions or with directly implementing programs/projects of a department or agency, such as line bureaus, field units
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Organization Code Segments
Organization Code12 Digits
DEPARTMENT2 digits
AGENCY3 digits
LOWER-LEVEL OPERATING
UNIT7 digits
Department Code
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DEPARTMENT UACSCongress 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
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DEPARTMENT UACS Department of Environment and Natural Resources
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Department of Finance 11 Department of Foreign Affairs 12 Department of Health 13 Department of the Interior and Local Government 14 Department of Justice 15 Department of Labor and Employment 16 Budgetary Support to Government Corporations 35 Financial Assistance to Metropolitan Manila Development Authority
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Department Code
Agency Code
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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
Lower-Level Operating Unit
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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
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Examples of Operating Units Classification
LOWER-LEVEL OPERATING UNITS CLASSIFICATION UACSCentral Office 01Staff Bureaus 02Regional Offices/Centers for Health Development 03Sub-Agency 04Provincial Offices 05National Irrigation Administration Offices 06Schools Division/District Offices 08Secondary Schools 09Revenue Regional Offices 11District Engineering Offices and Sub District Engineering Offices
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Organization Code Segments
Sample Organization Code06 001 03 00000
12 Digits
DEPARTMENTOLD DBMUACS 06
(2 digits)
AGENCYOLD OSEC-DBMUACS001
(3 digits)
LOWER-LEVEL OPERATING UNIT
OLD Central Office(Activity)UACS03 00000
(7 digits)
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Organization Code Segments
DEPARTMENT AGENCY
LOWER LEVEL
OPERATING UNIT
UACS
From: Department of Education
07
National Book Development Board (NBDB)
002
000000007 002
0000000
To:Department of Trade and Industry
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National Book Development
Board
0070000000
22 007 0000000
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Organization Code Segments
DEPARTMENT OF TRADE AND INDUSTRY 22 000 00 00000
Office of the Secretary 22 001 00 00000
Board of Investments 22 002 00 00000
Construction Industry Authority of the Philippines 22 003 00 00000
Construction Manpower Development Foundation 22 004 00 00000
Philippine Trade Training Center 22 005 00 00000
Product Development and Design Center of the
Philippines
22 006 00 00000
National Book Development Board 22 007 00 00000
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Location Code Segments
Location Code9 Digits
Region2 digits
Province2 digits
City/Municipality
2 digits
Barangay3 digits
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Region CodeREGION UACS
Region I – Ilocos 01Region II – Cagayan Valley 02Region III – Central Luzon 03Region IV-A – CALABARZON 04Region IV-B – MIMAROPA 17Region V – Bicol 05Region VI – Western Visayas 06Region VII – Central Visayas 07Region VIII – Eastern Visayas 08Region IX – Zamboanga Peninsula 09Region X – Northern Mindanao 10Region XI – Davao 11Region XII – SOCSKSARGEN 12Region XIII – CARAGA 16National Capital Region 13Cordillera Administrative Region 14Autonomous Region in Muslim Mindanao 15
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Province Code
PROVINCE UACSCAR - Cordillera Administrative Region Abra 01 Apayao 81 Benguet 11 Ifugao 27 Kalinga 32 Mountain Province 44
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Municipality Code
MUNICIPALITY UACSCAR - Cordillera Administrative Region 140000000 Abra 140100000 Bangued 140101000
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MFO/PAP Code Segments
MFO/PAP Code9 Digits
Program
1st digit
MFO
2nd – and 3rd digits
Activity Code
1st Level4th - and 5th digits
2nd Level6th – to 9th digits
Project
1st digit
Project Category
2nd – and 3rd digits
Sub-Category
4th - and 5th digits
Project Title
6th – to 9th digits
Purpose (SPF)
1st digit
Activity Code
2nd – and 3rd digits 4th - and 5th digits 6th – to 9th digits
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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
Physical Infrastructure Projects Includes Buildings, Flood Control, Roads and Bridges,
Other Transport Infrastructure, Water Management and Power and Communications Infrastructure
Non Physical Infrastructure ProjectsIncludes Economic Development, Education, Environmental
Protection, Governance, Health, Recreation Sports and Culture, Research and Development and Social Protection
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Project Category and Sub-Category
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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
Substantially revised to consolidate some line items, add clarity to overall structure and to facilitate compliance with the Philippine Public Sector Accounting Standards (PPSAS)
Moved away from the 3-digit coding framework (2003) to an 8-digit framework (2012)
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Description CoA Assets 1 Liabilities 2 Equity 3 Income 4 Expenses 5
Object Code
Every item on the COA CoA included Sub codes added to meet DBM, BTr, DoF,
COA and GFS reporting requirements Capital Outlay codes added in
correspondence with relevant COA CoA
asset codes Some Lump Sum codes added for use prior
to transfer to Departments
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Object Code
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Starting Point – COA Chart of Accounts
5 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 Compensation5 01 02 010 Personal 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 Allowance5 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
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Sub-Object Codes
EXPENSES 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 Personnel Benefits 50104990 00
Pension Benefits 50104010 00
Pension Benefits - Civilian 50104010 01
Pension Benefits – Military/Uniformed Personnel 50104010 02
Other Personnel Benefits 50104990 00
Lump-sum for Creation of New Positions - Civilian 50104990 01 Lump-sum for Creation of New Positions - Military/Uniformed Personnel 50104990 02
Lump-sum for Reclassification of Positions 50104990 03
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New Codes for Capital Outlays
CAPITAL OUTLAYS 50600000 00
Investment Outlay 50601000 00
Investment in Corporations and Subsidiaries Outlay 50601010 00
Investment in Government - Owned/Controlled Corporations 50601010 01
Investment in Subsidiaries Outlay 50601010 02
Loans Outlay 50601020 00
Loans Outlay – GOCCs 50601020 01
Loans Outlay – Others 50601020 02
Investment Property Outlay 50601030 00
Investment Property – Land 50601030 01
Investment Property - Buildings 50601030 02
Property, Plant and Equipment Outlay 50602000 00
Land Outlay 50602010 00
Land Improvements Outlay 50602020 00
Land Improvements - Aquaculture Structures 50602020 01
Reforestation Projects Outlay 50602020 02
Other Land Improvements 50602020 03
GIFMIS Development Project
Objective
• Facilitate the physical development of a GIFMIS solution that can collect and organize financial information in a central database
• GIFMIS is an integrated web-based application to enable agencies to generate real-time, reliable and accurate financial reports
Key Activities
• Development of the National Payroll System (NPS) and payroll-related Government Human Resource Information System (GHRIS)
• Conceptual Design of GIFMIS
• Development of the Online Submission of Budget Proposal
• Enhancement of the eBudget Preparation Management System
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