Transcript Status Report

Unified Accounts Code Structure:
What are its benefits to Public
Financial Manager?
PAGBA Convention, Sarabia Manor Hotel, Iloilo City
April 5, 2013
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Content
A. 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
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PFM Gaps in the Budget Process
PREPARATION
messy traffic of documents
lack of budget credibility
ACCOUNTABILITY
budget not results based
AUTHORIZATION
lack of funding predictability
weak oversight of Congress and
public
lack of efficient
cash management
management
monitoring
of contingent
liabilities
EXECUTION
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Key PFM Gaps and Strategies
GAP/WEAKNESS
GAP/WEAKNESS
STRATEGIES
Lack
Lack of
of aacommon
common
classification
classification system
systemfor
for
budgeting,
budgeting, accounting,
accounting,
auditing
auditing and
and cash
cashmanagement
management
Harmonize budgetary and accounting
classifications and reporting
Codify PFM rules and complete PFM Rules
Manual for capacity building
Identify
common reporting
Identify common
reporting requirements
requirements of
of
oversight
oversight agencies
agenciesand
andline
linedepartments
departments
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
Revise New Government Accounting System
(NGAS) Manual and chart of accounts
Facilitate the development of GIFMIS
DESIRED
RESULTS
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Financial Reporting
This is now…
In the long run, the Philippine PFM
needs this kind of information system
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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
Auditing Mgmt
(IRRBAS)
Asset
Management
Government EIS
(GEIS)
Fiscal Simulation
Business
Intelligence
UACS
Budget
Preparation
Data
Warehousing
UACS
Budget
Management
UACS
UACS
Debt Mgmt
(DMFAS)
UACS
Accounting &
Fiscal Reporting
User
GIFMIS
Portal
Vendor/
Supplier
Public
Creditor Employee
Budget Execution
UACS
UACS
Commitment
Management
UACS
Payments
Management
Cash
Management
Procurement
(PhilGEPS)
Receipts
Management
UACS
Central Bank
&
Government
Servicing
Banks
(TSA)
Commercial
Banks
Securities
Management
Human Resources Management
UACS
Plantilla
(GMIS)
Payroll
(NPS)
UACS
Revenue Management
Internal
Revenue (BIR)
UACS
Customs
(BOC)
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The Unified Accounts Code
Structure (UACS) – “The Backbone
of GIFMIS”
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Unified Accounts Code
Structure
A government wide, harmonized
budgetary and accounting code
classification that will facilitate
financial reporting
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Purpose of the UACS
 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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UACS Manual
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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Reporting Requirements
Supported by UACS
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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UACS Structure
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UACS Structure
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Funding Source
Segments
Funding Source
6 Digits
Financing
Source
1 digit
1st
Authorization
2 digits
2nd & 3rd
Fund
Category
3 digits
4th to 6th
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Funding Source:
Financing
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Financing and
Authorization Codes
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Funding Source: Fund Category
Particulars
Specific Budgets of National Government Agencies
GoP Counterpart Funds and Loans/Grants from
Multilateral and Bilateral Institutions
Allocations to Local Government Units
Budgetary Support to Government Corporations
Financial Assistance to Metro Manila Development
Authority
Special Accounts in the General Fund
Special Purpose Funds
Unprogrammed Funds
Retained Income/Funds
Revolving Funds
Trust Receipts
Others (Specify)
Codes
Old
101
102/171
UACS
101 to 150
151 to 250
103
104
251 to 275
276 to 300
301-320
105,183,401,
151 to 159
321 to 400
401 to 420
421 to 440
441 to 500
161 to 164
501 to 600
101-184, 187 601 to 610
611 to 999
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Combined Funding Source Code
Particulars
General Fund
New General Appropriation
Agency Specific Budget
Misc. Personnel Ben Fund
Automatic Appropriation
RLIP
Special Account in the Gen.
Fund
DPWH-Special Road Support
Fund
Funding
Fund
Financing Autho
= Source
Cat
Code
1
01
101
101101
406
101406
04
102
104102
346
104346
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UACS Structure
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Organization Code Segments
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
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 Code
12 Digits
DEPARTMENT
2 digits
AGENCY
3 digits
LOWER-LEVEL
OPERATING
UNIT
7 digits
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Department Code
DEPARTMENT
Congress of The Philippines
Office of The President
Office of The Vice-President
Department of Agrarian Reform
Department of Agriculture
Department of Budget and Management
Department of Education
State Universities and Colleges
Department of Energy
UACS
01
02
03
04
05
06
07
08
09
26
Department Code
DEPARTMENT
UACS
Department of Environment and Natural Resources
10
11
12
13
14
15
16
35
36
Department of Finance
Department of Foreign Affairs
Department of Health
Department of the Interior and Local Government
Department of Justice
Department of Labor and Employment
Budgetary Support to Government Corporations
Financial Assistance to Metropolitan Manila
Development Authority
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Agency Code
DEPARTMENT/AGENCY
Department of Budget and Management
Office of the Secretary
Government Procurement Policy
Board-Technical Support Office
UACS
06 000 0000000
06 001 0000000
06 002 0000000
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Lower-Level Operating Unit
DEPARTMENT/AGENCY/OPERATING
UNIT
Department of Budget and Management
Office of the Secretary
Central Office
Regional Office – I
Regional Office – NCR
Regional Office – CAR
Regional Office - II
Regional Office - III
Government Procurement Policy BoardTechnical Support Office
UACS
06 000 0000000
06 001 0000000
06 001 0100000
06 001 0300001
06 001 0300013
06 001 0300014
06 001 0300002
06 001 0300003
06 002 0000000
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Examples of Operating Units
Classification
LOWER-LEVEL OPERATING UNITS CLASSIFICATION
Central Office
Staff Bureaus
Regional Offices/Centers for Health Development
Sub-Agency
Provincial Offices
National Irrigation Administration Offices
Schools Division/District Offices
Secondary Schools
Revenue Regional Offices
District Engineering Offices and Sub District
Engineering Offices
UACS
01
02
03
04
05
06
08
09
11
18
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Organization Code Segments
Sample Organization Code
06 001 03 00000
12 Digits
DEPARTMENT
AGENCY
OLD DBM OLD OSEC-DBM
UACS  06
UACS001
(2 digits)
(3 digits)
LOWER-LEVEL OPERATING
UNIT
OLD Central Office(Activity)
UACS03 00000
(7 digits)
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Organization Code Segments
DEPARTMENT
From:
Department of
Education
07
To:
Department of
Trade and
Industry
22
AGENCY
LOWER
LEVEL
OPERATING
UNIT
UACS
National Book
Development
Board (NBDB)
002
0000000
07 002
0000000
0000000
22 007
0000000
National Book
Development
Board
007
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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
22
006
00
00000
22
007
00
00000
Product Development and Design Center of the
Philippines
National Book Development Board
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UACS Structure
34
Location Code Segments
Location Code
9 Digits
Region
2 digits
Province
2 digits
City/
Municipality
2 digits
Barangay
3 digits
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Region Code
REGION
Region I – Ilocos
Region II – Cagayan Valley
Region III – Central Luzon
Region IV-A – CALABARZON
Region IV-B – MIMAROPA
Region V – Bicol
Region VI – Western Visayas
Region VII – Central Visayas
Region VIII – Eastern Visayas
Region IX – Zamboanga Peninsula
Region X – Northern Mindanao
Region XI – Davao
Region XII – SOCSKSARGEN
Region XIII – CARAGA
National Capital Region
Cordillera Administrative Region
Autonomous Region in Muslim Mindanao
UACS
01
02
03
04
17
05
06
07
08
09
10
11
12
16
13
14
15
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Province Code
PROVINCE
CAR - Cordillera Administrative
Region
Abra
Apayao
Benguet
Ifugao
Kalinga
Mountain Province
UACS
01
81
11
27
32
44
37
Municipality Code
MUNICIPALITY
CAR - Cordillera Administrative
Region
Abra
Bangued
UACS
140000000
140100000
140101000
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Location Code
39
UACS Structure
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MFO/PAP Code Segments
MFO/PAP Code
9 Digits
Program
MFO
Activity Code
1st Level
2nd Level
1st digit
2nd – and 3rd digits
4th - and 5th digits
6th – to 9th digits
Project
Project Category
Sub-Category
Project Title
1st digit
2nd – and 3rd digits
4th - and 5th digits
6th – to 9th digits
Activity Code
Purpose (SPF)
1st digit
2nd – and 3rd digits
4th - and 5th digits
6th – to 9th digits
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PAP Category
Programs, Projects or Purpose
General Administration and Support
(GAS)
Support to Operations (STO)
Operations
Locally-Funded Projects
Foreign-Assisted Projects
Purpose
UACS
1
2
3
4
5
6
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Project Category and SubCategory
Physical Infrastructure Projects
Includes Buildings, Flood Control, Roads and Bridges,
Other Transport Infrastructure, Water Management and
Power and Communications Infrastructure
Non Physical Infrastructure Projects
Includes Economic Development, Education, Environmental
Protection, Governance, Health, Recreation Sports and
Culture, Research and Development and Social
Protection
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Project Category and SubCategory
Governance
1000
General Public Services
1001
Defense
1002
Public Order and Safety
1003
Systems Development
1004
Capacity Development
1005
Governance and Accountability Improvement
1006
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DBM – Old PAP Structure
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DBM – Old PAP Structure
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MFO/PAP Coding Example
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MFO/PAP coding example
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MFO/PAP coding example
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UACS Structure
50
Object Code Segments
Object Code
10 Digits
COA
Chart of Accounts
Object
8 digits
Sub-Object
2 digits
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Object Code
 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)
Description
Assets
Liabilities
Equity
Income
Expenses
CoA
1
2
3
4
5
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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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Starting Point –
COA Chart of Accounts
5 Expenses
01 Personnel Services
5
5
01
01 Salaries and Wages
5
01
01 010 Salaries and Wages - Regular
5
01
01 020 Salaries and Wages - Casual/Contractual
5
01
02 Other Compensation
5
01
02 010 Personal Economic Relief Allowance (PERA)
5
01
02 020 Representation Allowance
5
01
02 030 Transportation Allowance
5
01
02 040 Clothing/Uniform Allowance
5
01
02 050 Subsistence Allowance
5
01
02 060 Laundry Allowance
5
01
02 070 Quarters Allowance
5
01
02 080 Productivity Incentive Allowance
5
01
02 090 Overseas Allowance
5
01
02 100 Honoraria
5
01
02 110 Hazard Pay
5
5
5
5
5
01
01
01
01
01
02
02
02
02
02
120
130
140
150
990
Longevity Pay
Overtime and Night Pay
Year End Bonus
Cash Gift
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
Other Personnel Benefits
Pension Benefits
50101020 00
50104990 00
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
Lump-sum for Creation of New Positions - Military/Uniformed
Personnel
50104990 01
Lump-sum for Reclassification of Positions
50104990 02
50104990 03
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New Codes for Capital
Outlays
CAPITAL OUTLAYS
50600000
00
50601000
00
50601010
00
Investment in Government - Owned/Controlled Corporations
50601010
01
Investment in Subsidiaries Outlay
50601010
02
50601020
00
Loans Outlay – GOCCs
50601020
01
Loans Outlay – Others
50601020
02
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
Investment Outlay
Investment in Corporations and Subsidiaries Outlay
Loans Outlay
Investment Property Outlay
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Thank you!
www.pfm.gov.ph
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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