Nfjpiar3 1314 IRR Standard Chart of Accounts

8/14/2019 Nfjpiar3 1314 IRR Standard Chart of Accounts

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(Document Type) Page 1 of 11National Federation of Junior Philippine Institute of Accountants Region III Council

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCILFederation Year 2013 2014

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON

R3: Reaching Greater Heights Celebrating Three Decades ofUnifying and Empowering the JPIAn Spirit

IMPLEMENTING RULES AND REGULATIONS ONSTANDARD CHART OF ACCOUNTS

FOR REPORTING

REVISION HISTORY:

Version No. Date Revised By Approved By Noted By Details

1 22/5/2013 Leila Victoria R. Antonio Zheena E. Ocampo Conrad Allan M. Alviz Initial Issue


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TABLE OF CONTENTS

Foreword ..................................................................................................................................................................................................................

Key Concepts ...........................................................................................................................................................................................................

Part 1: Implementing the Standard Chart of Accounts .........................................................................................................................................

1.1 About the Standard Chart of Accounts ........................................................................................................................................................

1.2 Application of SCOA by Local Chapters.....................................................................................................................................................

1.3 Use of Local Chapters ..................................................................................................................................................................................

1.4 Benefits from SCOA ....................................................................................................................................................................................

Part 2: Standard Chart of Accounts and Data Dictionary .....................................................................................................................................

Part 3: Standard Chart of Accounts Fact Sheet ....................................................................................................................................................

FOREWORD

In May 2013, the National Federation of Junior Philippine Institute of Accountants Region III Council agreedthat all Local Chapters would develop and implement a Standard Chart of Accounts (SCOA) in order to reduce theregulatory and administrative reporting burden and to maintain a uniform system of financial bookkeeping and


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reporting that is consistent with the generally accepted accounting principles (GAAP). The SCOA is an agreed list ofaccount categories and data dictionary for Local Chapters.

The circular is provided in three parts. Part 1 provides information on implementing the SCOA; Part 2 attachesthe SCOA; and Part 3 provides the fact sheet for Local Chapters to use and adapt as necessary, which can also beprovided to the Council.

KEY CONCEPTS

Chart of Accounts - classification structure for the accounting system that permits the standardization ofreported financial data whereby analyses may be performed within and between district boards of educationand on nationwide basis.

IMPLEMENTING THE STANDARD CHART OF ACCOUNTS

A. About the Standard Chart of Accounts

The Standard of Chart of Accounts (SCOA) is an agreed list of account categories and data dictionary for theNational Federation of Junior Philippine Institute of Accountants Region III Council to use when requestingfinancial information from Local Chapters. Its objectives is to simplify and improve consistency of financialreporting of Local Chapters to the NFJPIA Region III Council.

The SCOA groups accounting into assets, liabilities, equity, revenue and expenses. The numbering systemfollows an accepted approach of Assets=1, Liabilities=2 and so forth, and expenses are listed in alphabetical order.

The accompanying data dictionary provides guidance to Local Chapters on how to process transactions anddetermine which transactions go into which accounts by providing description of the specific account.

B. Application of the Standard Chart of Accounts by Local Chapters

From 1 June 2013, all Local Chapters should be in a position to accept financial information in the SCOAaccounting categories from NFJPIA Region III Council entered into on or after 1 June 2013.There is no requirement for Local Chapters to convert existing reporting requirements for grants entered intobefore this date.

The NFJPIA Region III Council should ensure that Local Chapter are aware that their adaptation of the SCOA isvoluntary. The council should not require Local Chapters to report in the SCOA accounting categories andshould continue to accept financial information in other agreed reporting formats.

C. Use of Local Chapters

While the NFJPIA Region III Council should accept financial information from the Local Chapters in accordancewith the SCOA, use of the SCOA is not mandatory for the Local Chapters.


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D. Benefits from Standard Chart of AccountsConsistent financial information in accounting categories and terms across budgets, acquittal reporting andfinancial accountability from Local Chapters.Standardized data (common definitions and groupings) enabling Local Chapters to undertake more accurateanalysis and data comparison and set reliable benchmarking targets. This will contribute to better monitoringand evaluation processes, and ultimately, better policy development and improved decision making.

STANDARD CHART OF ACCOUNTS AND DATA DICTIONARY

Assets 100 Account

Code Account Name Data Dictionary/Description of Account

100 Assets Assets are resources controlled by the entity as a result of past eventsand from which future economic benefits are expected to flow to theentity.

110 Current Assets Current assets are all assets with future economic benefit expected tobecome available or used within the next 12 months.

111 Cash in Bank - Restricted Restricted cash represents funds to be used for a specificpurpose, which relates to program or project or outcomes. Thisaccount does not include cash at bank or on hand that is usedfor the general operating purposes of the organization. Thisaccount includes any roll-over funds and funds not yet allocatedfor a specific purpose whilst still relating to aprogram/project/s. This would include interest bearingdeposits such as a building sinking fund and would usually be a"sub" account with the reconcilable accounts. Organizationsshould itemize by the nature of the restriction. If this amount isin negative, it is reported here. Note that negative cash at bankis often referred to as bank overdraft (and listed as a negativeasset).

112 Cash in Bank Unrestricted Unrestricted cash represents funds not allocated by a fundingagreement for a specific purpose and is usually the generaloperating funds of an organization. Some organizations may usesub accounts and itemize by account. If this amount is innegative, it is reported here. Note that negative cash at bank isoften referred to as bank overdraft (and listed as a negativeasset).

113 Petty Cash This account represents the amount of petty cash on hand at theend of the reporting period. It does not include cash at bank ortill floats (1-1150). (Petty Cash and Cash Float should equalCash on Hand which may be a header account).

120 Accounts receivable Also known as trade debtors. This account shows the gross


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accounts receivable still owing by debtors to the organization atthe end of the financial period which are expected to becollected in the next 12 months.

121Allowance for Doubtful Accounts

This item (also known as Allowance for Doubtful Debts) is anestimate of the amount of debts not expected to be received inrespect of outstanding debts.

130 Loans Receivable This includes all other debtors other than trade debtors. Thiswould include short-term loans made to officers or committeemembers.

140 Other Current Assets Other current assets not specifically included in previousaccounts and may include items held for sale or due to be soldor "one off" prepayments of memberships.

150 Non-Current Assets Non-current assets are all assets with future economic benefitsnot expected to become available or used within the next 12months. Organizations are also encouraged to discuss the issueof impairment of assets with their advisors to ensurecompliance.

160 Property and Equipment This account represents the total value of movable plant andequipment (excluding vehicles) that is owned or leasedrecorded at cost. The account includes all classes (movableplant and equipment; office furniture owned or leased;furniture and fittings installed in rental properties; officeequipment (including computers and software) owned orleased; libraries and educational resources; allied healthequipment; aids and equipment rented or leased to clients;sports equipment, musical instruments, art collections,costumes, scenery sets and (theatre, dance, opera) productionproperties). May be itemized according to the nature of theasset. (This account excludes rental properties.). These itemsare recorded at cost. In the case of donated assets, these arerecorded at fair value. The assets shown here should reconcileto the asset register. It is suggested that these accounts bebroken up to meet the business needs to include Improvementssuch as landscaping and surrounds, IT assets separately.

161 Accumulated Depreciation Accumulated depreciation to date in respect of plant and

equipment excluding rental properties for which a separateaccount is maintained.170 Other Non-Current Assets Other non-current assets not specifically included in previous

accounts which may include biological assets and long-termassets to be sold but not in the next 12 months. Separateaccounts for items that are ongoing are suggested so that theseaccounts are not disproportionate

Liabilities 200


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200 Liabilities A liability is a present obligation of the entity arising from pastevents, the settlement of which is expected to result in anoutflow from the entity of resources embodying economicevents.

210 Current Liabilities Current liabilities are liabilities with future economic lossesexpected to be used, or expended, or committed to be usedwithin the next 12 months.

211 Accounts Payable Accounts payable are also known as trade creditors. Thisaccount shows the gross accounts payable owing to tradecreditors or suppliers at the end of the reporting period (othercreditors such as banks are not included for items such as bankloans).

212 Accrued Expenses This represents the liability component of amounts due at theend of the reporting period that remain unpaid.

213 Other Current Liabilities This account can be used for any other current liabilities notspecifically included in any of the accounts already listed.

220 Non-Current Liabilities This header account includes accounts with future economiclosses not expected to be used, or expended, or committed to beused within the next 12 months.

Equity 300300 Equity Equity is defined as the residual interest in the assets of the

entity after deducting all its liabilities.

Revenue 400400 Revenue Income or Revenues are inflows or other enhancements of

assets or decreases of liabilities that result in increases inequity, other than those relating to contributions from equityparticipants.

401 Membership/Registration Fee This account refers to the membership and registration feespaid to the organization.

402 Sponsorship Fee This account includes all sponsorships fees received by thenonprofit organization. May include residential accommodation,hostel, village clients & advertisement contracts, these may beincluded in Fees and Charges (either restricted or unrestricted)

above.403 Merchandise Fee This account represents the sale made by the organization of all

goods (purchased or donated). This is the most common tradingaccount of organizations and could be a header account withvarious detail accounts with sub-headings to cover activitiessuch as retail, uniforms, merchandise and products, tickets, food& beverage, programs.

404 Other Revenue This account represents other fees received by the organizationnot specifically included in any of the accounts already listed.


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Expenses 500500 Expenses Expenses are outflows or depletions of assets or occurrences of

liabilities that result in decreases in equity other than thoserelating to equity.

501 Business Planning, Reportingand Evaluation Costs

This account represents the costs of preparing and draftingsubmissions, business plans, marketing plans, volunteermanagement plans, risk management and operational plans, aswell as the costs of feasibility studies. This account isspecifically for administration costs incurred by theorganization. This account includes both pre and post programor project costs and evaluation, development and research thatoccurs within an organization. Some organizations may wish touse this as a header breaking down specific accounts formanagement purposes.

502 Administrative Expense This account included any expenses related to boards,management committees, governance activities, financecommittees, audit committees such as travel andaccommodation for meetings, reimbursement of expenses tothose on the committees (kept separate to organizationalvolunteers), and Executive Board Meeting expenses.

This account also represents all costs associated withmeetings, eg. hiring of venues and facilities and foodexpenses.* It in cludes travel and accommodation costs incurred formeeting purposes eg. Board meetings.* It includes catering costs for the meeting, organizationalagendas such as Research Panels, staff committees, Peak Bodyactivities.

503 Volunteer/Working CommitteeCosts

This account represents all costs relating to volunteers(including training of volunteers). This account should be aheader account with detailed accounts listed for the variousinclusions.* It includes the costs of managing volunteers, and sendingvolunteers on organizational business such as reimbursementsof expenses.* It includes allowances, reimbursements and incidentalexpenses paid to volunteers (excluding Board members), andall costs related to volunteer training (Board expenses areincluded in Board/Governance Expenses).

504 Representation Expense This account includes all expenses incurred to represent theorganization, including school visit, Executive Meeting, Mid-Year and Annual Conventions and any other expense not


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classified to those mentioned.505 Academic Expense This account includes all academic costs, including printing &

photocopying of materials, supplies used, awards,transportation and any other expense directly attributable toacademic activities.

506 Non-academic Expense This account includes all costs incurred in non-academicactivities. It includes transportation, food, materials used,photo-shoot costs and any other costs attributable to non-academic activities.

507 Computer Expense This account includes all computer costs, including e-mail,internet and website development and maintenance. It alsoincludes the cost of computer software expensed (but excludestraining costs). Whilst most costs of development andmaintenance of websites are an expense, in some limitedinstances, the costs may be capitalized.* This account excludes telecommunication and internetcharges.* This account includes the repairs and maintenance ofcomputers (unless separately disclosed).

508 Donations Paid This account represents all donations and contributions madeby the organization.

509 Insurance Expense This account includes all insurances including accident, buildingand contents, owned properties

510 Membership Fees Paid This account represents all membership fees paid by theorganization, for the organization and for members.

511 Motor Vehicle Expenses This account represents motor vehicle expenses.It includes rental fees, and fuel and oil costs incurred by theorganization in respect of motor vehicles owned or leased.

512 Postage, Freight and Courier This account represents all freight, postage, stamps, frankingcosts and courier costs incurred by the organization.

513 Printing & Stationery This account includes other administrative costs associatedwith printing and stationery incurred by the organization suchas photocopying and purchase of paper.* It includes the costs of trophies, medals and other awards

other than those classified.*It excludes the costs of printing loose-leaf brochures, as well aseducation kits provided to clients/participants.This can be included under the heading of other accounts suchas Academic Expense and Non-Academic Expense.

514 Publications and InformationResources

This account includes the cost of newsletters, (library-based)books, hard cover publications purchased by the nonprofitorganization (but not capitalized as an asset). It also includesloose-leaf brochures prepared by the nonprofit organization


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(these are not coded as printing & stationery costs). It alsoincludes the costs incurred in printing promotional materials.

515 Telephone & Fax Charges &Internet

This account represents all telephone, mobile telephone, andfax costs incurred by the organization.

516 Miscellaneous Expenses This account covers all small, miscellaneous one-off expenseswhich may occur, and which are not specifically included inother items.

517 General Expense This account includes all costs not classified as administrationcost. It includes accommodation, convention kits, tickets andany other costs residual of those classified. Some organizationsmay wish to use this as a header breaking down specificaccounts for management purposes.

518 Bank Charges This account represents all charges associated with the variousbank accounts held by a nonprofit.

STANDARD CHART OF ACCOUNTS FACT SHEET

The SCOAThe SCOA is an agreed list of account categories for use by all Local Chapters. The SCOA lists the

names of account categories most likely to be required from Local Chapters to detail accounting information,and explains each one in plain language (a data dictionary or detailed description of the item). From 1 June2013, all Local Chapters will accept financial information from NFJPIA Region III Council in the definedaccounting categories of the SCOA.

Benefits of the SCOA


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Local Chapters will be able to use consistent accounting terms for all government grant funding.Auditing of Local Chapters financial accounts will be simpler. Comparisons of financial information will bemade easier when all Local Chapter recognize the same financial categories in their grant funding.

Optional for Local ChapterIt is not mandatory for Local Chapters to use the SCOA for their internal financial management.

However, it is recommended that LCs use the SCOA, or consider using the relevant definitions of income andexpenditure categories as this will reduce confusion and inconsistency. Although the SCOA was designedprimarily to meet the needs of all Local Chapters, some have found the best approach is to adopt similardefinitions of account categories into their existing chart of accounts.

Prepared by:

___________________________________Leila Victoria R. Antonio

VICE PRESIDENT FOR FINANCEWesleyan University-Philippines

Approved by:

___________________________________ ___________________________________Zheena E. Ocampo Francis Xavier W. Ferrer

PRESIDENT VICE PRESIDENT FOR ACADEMICSSystems Plus College Foundation Systems Plus College Foundation


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___________________________________ ___________________________________Emil Julius T. David Enrico C. Rivera

VICE PRESIDENT FOR NON ACADEMICS VICE PRESIDENT FOR MEMBERSHIPHoly Angel University Tarlac State University

___________________________________ ___________________________________John Kendrick H. Pajarin Adrianne B. Harve

VICE PRESIDENT FOR AUDIT VICE PRESIDENT FOR COMMUNICATIONSColegio de San Juan de Letran - Bataan University of the Assumption

___________________________________ ___________________________________Jane T. Villanueva Roy James S. Enrile

VICE PRESIDENT FOR MEDIA SECRETARY GENERALWesleyan University - Philippines Baliuag University

Noted by:

___________________________________Conrad Allan M. Alviz, CPA, CISA

ADVISERSGV & Co.

Nfjpiar3 1314 IRR Standard Chart of Accounts

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