Transcript UACS Foundation and Challenges for SUCS
U
NIFIED
A
CCOUNTS
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ODE
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TRUCTURE UACS FOUNDATION and CHALLENGES
FOR THE
STATE UNIVERSITIES AND COLLEGES
CARAGA STATE UNIVERSITY December 1, 2014
Agenda Topics Covered
Day 1 1.
Unified Account Code Structure (UACS) – Foundation for PFM 2.
3.
4.
Application of UACS Funding Source Code Workshop / Exercise on UACS Funding Source Code Application of UACS Organization and Location Code 2
Agenda Topics Covered
Day 2 1.
Budget Primer and Application of Budget with UACS – Part 1 PIB 2.
3.
Budget Primer and Application of Budget with UACS – Part 2 Budget Execution Budget and Financial Accountability Reports (BFARS) for UACS (CY 2014) 4.
5.
Application of UACS Major Final Output / Program, Activity, Project (MFO/ PAP) Code Workshop / Exercise on UACS MFO/PAP and Budget 3
Agenda Topics Covered
Day 3 1.
Application of UACS Object Code and Sub Object Code 2.
Workshop on Funding Source Code, Organization Code, Location Code, MFO/PAP Code, and Object Code 3.
Open Forum, Closing 4
PFM Projects
Generate real-time, reliable, accurate financial info and reports for policy decision making
GIFMIS
Improve cash management for operational efficiency
Treasury Cash Management Operations Improvement Budget Reporting & Performance Standards
Harmonize and consolidate data structures and apply consistent set of budget and accounting rules for reporting Improve management of government’s contingent liabilities and financial exposure
Liability Management Also CHRIS and PIB Capacity Building Accounting and Auditing
Enhance government accounting & auditing systems & standards & strengthen external and participatory audit capacity Professionalize the PFM workforce and build stakeholder (Congress and civil society) support for reforms
Rolling-Out Key PFM Reforms
In 2014: Towards: Unified Account Code Structure (UACS)
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Performance Informed Budgeting (PIB)
2
Early Procurement for Infrastructure, Goods and Consultancy
3
Government Integrated Financial Management System (GIFMIS) GAA as Release Document (GAARD)
4
Checkless Payments thru Advice to Debit Account (ADA)
5 Treasury Single Account (TSA)
Budget Transformation Agenda
Spending
within
means Spending on the
right
priorities Spending with
measurable
results In an
empowering
regime of
transparency, accountability
and
citizen’s engagement
Unified Accounts Code Structure
Government-wide harmonized
budgetary
,
treasury and accounting
code classification framework to facilitate reporting of all financial transactions of agencies including revenue reporting
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Where should UACS be used?
• • • • •
Every IT and Manual system should adopt the UACS for:
Budget cycle - Preparation, Legislation, Execution and Accounting, Accountability Reporting Appropriation, Allotment, Obligation, Disbursement Enabling reporting of actual expenditure against budget appropriation as envisaged in PFM roadmap Payroll, budget, cash management, budget execution and forward planning Performance measurement – performance indicators linked to UACS MFOs and outcomes achieved are reported against budget and targets 9
Main Purpose of UACS
To 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 responsibilities for improving the way financial information is utilized 3. It facilitates the integration of financial systems 4. Utilized properly to enhance the Internal Control Structure to provide more complete and effective information 10
Main Purpose of UACS
To enable timely and accurate preparation of the following documents/ reports
1. Financial Reports as required by the Department of Budget and Management and the Commission on Audit, including the Budget and Financial Accountability Reports (BFARS) 2. Financial Statements as required by the Public Sector Accounting Standards Board of the Philippines, 3. Management Reports as required by the executive officials/heads of departments and oversight agencies 4. Economic Statistics in accord with Government Finance Statistics Manual 2001 .
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To educate and inform everybody about the new accounting language – UACS
Main Purpose of UACS
1. All forms, documents, internal and external reporting must be updated for UACS, for example: – SARO, ABM, NCA, ANCAI – BFARs (BARs and FARs) – – Consolidate Report on Periodical Status of Allotment Releases NCA Utilization Reports – Monthly Breakdown of NCA Releases by Allotment Class 2. All data sources of DBM must provide information in UACS format (all agencies) 12
Main Purpose of UACS
To eliminate the problems being encountered from the existing coding structure
1. The existing coding structure has a disconnect between budget, accounting, and cash. They are relatively independent with each other 2. The existing Systems are independent from each other and unable (or very difficult) to properly report the problems encountered 3. Until data is properly structured, agencies cannot be Financial Systems - ready 13
Benefits of UACS
To have one coding framework for whole Budget process (Preparation, Legislation, Execution and Accountability) and for reporting Appropriation, Allotment, Obligation, Disbursement in all systems To enable reporting of – 1. Allotments released against appropriation, 2. Obligations against appropriation and 3. Disbursements against obligations To facilitate compliance with OPIF Reference Guide and NBC 532 14
Benefits of UACS
To enable timely accurate preparation of financial reports in accord with IPSAS, GFS and requirement of central oversight agencies and the executive of Departments and Agencies UACS should allow implementing / spending agencies to facilitate management reporting and decision making Ability to link / integrate Physical and Financial Progress information 15
THE UACS JOINT CIRCULAR – MANDATE HIGHLIGHTS
COA-DBM-DOF Joint Circular No. 2013-1 August 6, 2013
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JOINT CIRCULAR NO. 2013-1 (page 1)
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JOINT CIRCULAR NO. 2013-1 (page 2)
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JOINT CIRCULAR NO. 2013-1 (page 3)
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JOINT CIRCULAR NO. 2013-1 (page 3)
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JOINT CIRCULAR NO. 2013-1 (page 4)
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Revised Chart of Accounts
• • •
COA Circular 2013-002, 30 Jan 2013
Revised the NGAS chart of accounts to provide new accounts for adoption of the Philippine Public Sector Accounting Standards (PPSAS) Major component of the Unified Accounts Code Structure (UACS) to ensure comparability of financial information from budgeting and accounting systems Government-wide training on the revised Chart of Accounts and new Philippine Public Sector Accounting Standards (PPSAS)
THE UACS CODING CHALLENGES
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Challenges of UACS
To eliminate misconceptions regarding the new Codes
1. Agencies perceive UACS as a compliance exercise and will likely just do mapping and conversion for required reporting 2. Low likelihood of data being analyzed 3. Low likelihood of sufficient focus on data accuracy 4. Limited attention given to underlying agency systems when UACS was announced.
5. Agencies do not have systems that are UACS compliant 6. Until data is properly structured, agencies cannot be systems -ready 24
UACS Challenges
Establishment of UACS Help Desk To address questions during the application of UACS to Budget Execution process.
Should evolve to Financial Management Help Desk UACS Help Desk Number is 791-3002 – operational on September 22, 2014 (email [email protected]) UACS Web Site – www.uacs.gov.ph
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Questions and Comments ?
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