Enhancement of the Unified Accounts Code Structure (UACS) per COA-DBM-DOF Joint Circular No. 2013-1

November 7, 2014 JOINT COA-DBM-DOF CIRCULAR NO. 001-14 FOR : All Heads of Departments, Agencies, Bureaus, Offices, Commissions, State Universities and Colleges, Heads of Government-Owned and/or Controlled Corporations Receiving Budgetary Support from the National Government, Including Those Maintaining Special Accounts in the General Fund, and Other Instrumentalities of the Government, Chiefs of Financial and Management Services, COA Auditors, MDS Government Servicing Banks and All Others Concerned SUBJECT : Enhancement of the Unified Accounts Code Structure (UACS) per COA-DBM-DOF Joint Circular No. 2013-1 1.0 Policy Statement Consistent with the Public Financial Management Reforms Roadmap, the Department of Budget and Management (DBM), Commission on Audit (COA), Department of Finance (DOF), and Bureau of the Treasury (BTr) jointly developed the Unified Accounts Code Structure (UACS), a government-wide coding framework, to provide a harmonized budgetary and accounting code classification that took effect on January 1, 2014. 2.0 Objective To amend the following elements of the UACS specified under COA-DBM-DOF Joint Circular No. 2013-1 dated August 6, 2013: 2.1 Funding Source Code The six digits Funding Source Code shall be enhanced to add a two digit code for the Fund Cluster for purposes of accounting, banking and reporting. 2.2 Major Final Output (MFO)/Program, Activity, and Project (P/A/P) Code this element shall be enhanced considering the following: Adoption of the Organization for Economic Cooperation and Development (OECD) international standard for Sector and Sub-Sectors Outcome which is the Classification of Functions of Government (COFOG), with some minor additions that are specific to the government's needs. This COFOG is also consistent with the already adopted Government Finance Statistics (GFS) required by the IMF, which will facilitate the required finance statistics reporting by Bureau of the Treasury. This will provide the ability to track budgets to the sector outcomes. Identification of horizontal programs implemented by several agencies with the Sector/Horizontal Outcomes sub-element of the MFO/PAP Code. This provides the tagging of the horizontal outcomes. Expansion of the last segment (2nd Activity Level/Project Title/3rd Activity Level) code digits is needed to ensure that there is sufficient number of code values available for new MFO/PAP 2nd Activity Level/Project Title/3rd Activity Level codes. 3.0 Coverage This Circular covers all agencies, Constitutional Commissions/Offices, State Universities and Colleges, Government-Owned and/or Controlled Corporations receiving budgetary support from the National Government, including those maintaining Special Accounts in the General Fund, and other instrumentalities of the government. 4.0 Changes in the UACS Coding Structure The updated UACS Code Framework is now a 54-digit code, as shown in Annex A. TaDSCA The changes in the UACS Code Elements are as follows: 4.1 Funding Source Code Fund Cluster This code becomes an 8 digit code with the addition of a two digit Fund Cluster as a prefix to the Funding Source Code, as shown in Annex B of this circular. 4.2 MFO/PAP Code This code becomes a 15-digit code, with the addition of the 5-digits for Sector/Horizontal Outcome, and the expansion of 1-digit for the 2nd Activity Level (Programs)/Project Title (Projects)/3rd Activity Level (Purpose). 4.2.1 MFO/PAP Code Sector/Horizontal Outcome This is an additional five digit code that is a prefix of the MFO/PAP Code. The Sector Outcomes is a 3-digit code and the horizontal outcome is a 2-digit code. The code values for Sector Outcomes and Horizontal Outcomes are shown in Annex C. 4.2.2 MFO/PAP Code 2nd Activity Level (Programs)/Project Title (Projects)/3rd Activity Level (Purpose) This code is 4-digits in the UACS Manual. Upon effectivity of this Joint Circular, this code becomes a 5-digit code, as shown in Annex A. 5.0 Adoption/Implementation of the UACS Coding Structure Change 5.1 This update to the UACS Coding Structure shall be adopted by all units covered by Item 3.0 of this Circular and each one shall be responsible in ensuring that it is properly implemented. Heads of departments/agencies shall ensure that the UACS, including the adoption of the changes prescribed in this Joint Circular, is properly implemented for all financial transactions and reporting. 5.2 Consistent with item 6.2 of the COA-DBM-DOF Joint Circular No. 2013-1, any issues related to herein prescribe UACS changes shall be raised with the DBM for resolution. 6.0 Repealing Clause All aspects of the original UACS Manual and Codes issued through the COA-DBM-DOF Joint Circular No. 2013-1 dated August 6, 2013 which are not inconsistent with the provisions of this circular shall remain in effect. These additional coding structure changes are enhancements to the existing UACS specifically on sub-segments under the Funding Source Code and the MFO/PAP Code. 7.0 Effectivity This Joint Circular shall be applied to all financial transactions beginning January 1, 2015. Existing transactions/reports prior to the issuance of this Joint Circular shall be adjusted using the amended UACS codes, as authorized under National Budget Circular No. 554 for reporting purposes. (SGD.) FLORENCIO B. ABAD Secretary Department of Budget and Management (SGD.) CESAR V. PURISIMA Secretary Department of Finance MARIA GRACIA M. PULIDO TAN Chairperson Commission on Audit Annexes available upon request.