UNIFIED ACCOUNTS CODE STRUCTURE
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. Application of UACS Funding
Source Code
3. Workshop / Exercise on
UACS Funding Source Code
4. 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. Budget Primer and Application of
Budget with UACS – Part 2
Budget Execution
3. Budget and Financial
Accountability Reports (BFARS)
for UACS (CY 2014)
4. Application of UACS Major Final
Output / Program, Activity,
Project (MFO/ PAP) Code
5. 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
GIFMIS
Improve cash management
for operational efficiency
Improve management of
government’s contingent
liabilities and financial
exposure
Treasury Cash
Management
Operations
Improvement
Budget
Reporting &
Performance
Standards
Accounting
and Auditing
Liability
Management
Capacity
Building
Also CHRIS and PIB
Generate real-time, reliable,
accurate financial info and
reports for policy decision
making
Harmonize and consolidate
data structures and apply
consistent set of budget
and accounting rules for
reporting
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
Towards:
In 2014:
Unified Account
Code Structure
(UACS) 1
GAA as Release Document
(GAARD) 4
Performance
Informed
Budgeting (PIB) 2
Early Procurement
for Infrastructure,
Goods and
Consultancy 3
Checkless Payments thru Advice to
Debit Account (ADA) 5
Government Integrated
Financial Management
System (GIFMIS)
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
8
Every IT and Manual system should
adopt the UACS for:
• Budget cycle - Preparation, Legislation,
Execution and Accounting,
Accountability
Where should
UACS be used?
• 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
To serve as the foundation for
the improvements of the
Public Financial Management
(PFM) Reforms
Main Purpose
of UACS
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
To enable timely and accurate
preparation of the following
documents/ reports
Main Purpose
of UACS
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.
11
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
To eliminate the problems
being encountered from the
existing coding structure
Main Purpose
of UACS
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
 To have one coding framework for whole
Benefits
of UACS
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
16
JOINT CIRCULAR NO. 2013-1
(page 1)
17
JOINT CIRCULAR NO. 2013-1
(page 2)
18
JOINT CIRCULAR NO. 2013-1
(page 3)
19
JOINT CIRCULAR NO. 2013-1
(page 3)
20
JOINT CIRCULAR NO. 2013-1
(page 4)
21
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
23
To eliminate misconceptions
regarding the new Codes
Challenges
of UACS
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
uacs@dbm.gov.ph)
UACS Web Site – www.uacs.gov.ph
25
Questions and Comments ?
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Thank You!