UUNIFIED NIFIED AACCOUNTS CCOUNTS CCODE ODE

SSTRUCTURETRUCTURE

UUNIFIED NIFIED AACCOUNTS CCOUNTS CCODE ODE

SSTRUCTURETRUCTURE

FOR THE FOR THE FOR THE FOR THE

CARAGA STATE UNIVERSITYCARAGA STATE UNIVERSITYDecember 1, 2014

UACS FOUNDATION and UACS FOUNDATION and CHALLENGESCHALLENGES

UACS FOUNDATION and UACS FOUNDATION and CHALLENGESCHALLENGES

STATE UNIVERSITIES AND STATE UNIVERSITIES AND COLLEGESCOLLEGES

Day 11.Unified Account Code Structure (UACS) – Foundation for PFM2.Application of UACS Funding Source Code 3.Workshop / Exercise on UACS Funding Source Code4.Application of UACS Organization and Location Code

Agenda - Topics Covered

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Day 21.Budget Primer and Application of Budget with UACS – Part 1 PIB2.Budget Primer and Application of Budget with UACS – Part 2 Budget Execution3.Budget and Financial Accountability Reports (BFARS) for UACS (CY 2014)4.Application of UACS Major Final Output / Program, Activity, Project (MFO/ PAP) Code5.Workshop / Exercise on UACS MFO/PAP and Budget

Agenda - Topics Covered

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Day 31.Application of UACS Object Code and Sub Object Code2.Workshop on Funding Source Code, Organization Code, Location Code, MFO/PAP Code, and Object Code3.Open Forum, Closing

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Agenda - Topics Covered

PFM ProjectsGenerate 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

Improve management of government’s contingent liabilities and financial exposure

Improve cash management for operational efficiency

Also CHRIS and PIB

Rolling-Out Key PFM Reforms

PerformanceInformed

Budgeting (PIB) 2

Checkless Payments thru Advice to Debit Account (ADA)

5Treasury Single Account (TSA)

Government Integrated Financial

Management System (GIFMIS)

GAA as Release Document (GAARD)

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In 2014:

Unified Account Code Structure (UACS) 1

Early Procurementfor Infrastructure,

Goods and Consultancy 3

Towards:

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

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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UnifiedAccountsCodeStructure

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

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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

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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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Main Purpose of UACS

To educate and inform everybody about the new accounting language – 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 Class2.All data sources of DBM must provide information in UACS format (all agencies)

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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

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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

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Benefitsof 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

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Benefitsof UACS

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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)

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)

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THE UACS CODINGCHALLENGES

Challengesof 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 reporting2.Low likelihood of data being analyzed 3.Low likelihood of sufficient focus on data accuracy4.Limited attention given to underlying agency systems when UACS was announced.5.Agencies do not have systems that are UACS compliant6.Until data is properly structured, agencies cannot be systems -ready 24

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Establishment of UACS Help DeskTo 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

UACS Challenges

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Questions and Comments ?Questions and Comments ?

Thank You!