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Accounting For Government & Non-Profit Organization

The Unified Accounts Code Structure (UACS) provides a standardized framework for classifying and reporting financial transactions of the Philippine government. It includes codes for funding sources, organizations, locations, programs/projects, and objects. The UACS allows for consistent reporting of revenues, expenditures, and financial statements while also enabling tracking of budgets and outcomes. To facilitate adoption of the new coding system, government agencies were given time to familiarize themselves with the UACS codes during a transition period where both old and new codes were used.

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397 views3 pages

Accounting For Government & Non-Profit Organization

The Unified Accounts Code Structure (UACS) provides a standardized framework for classifying and reporting financial transactions of the Philippine government. It includes codes for funding sources, organizations, locations, programs/projects, and objects. The UACS allows for consistent reporting of revenues, expenditures, and financial statements while also enabling tracking of budgets and outcomes. To facilitate adoption of the new coding system, government agencies were given time to familiarize themselves with the UACS codes during a transition period where both old and new codes were used.

Uploaded by

Elea Morata
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Accounting for Government & Non-Profit Organization

1. What are the key elements of the Unified Accounts Code Structure (UACS)? Explain
each element briefly.

1. Funding Source Codes


It is a six-digit code to reflect the Financing Source, Authorization, and Fund Category.
However, per Joint Circular No. 2014-1 dated November 7, 2014, the 6-digit Funding
Source Code was enhanced by adding another two digits code for the Fund Cluster for
purposes of accounting, banking, and reporting; thus, it becomes eight digits.
2. Organization Codes
It is a twelve-digit code to reflect the Department, Agency and Sub-Agency or
Operating Unit/Revenue Collecting Unit. The first two digits (1st and 2nd) represent the
Department Code. The next three digits (3rd to 5th) are for the Agency Code. The next
seven digits (6th to 12th) are for Operating Unit Classification Code.
3. Location Codes
Location code is a nine-digit code composed of Region, Province, City/Municipality,
and Barangay. Region code is a two-digit code (1st and 2nd) that identifies a specific
region. Province code is a two-digit code (3rd and 4 th) that identifies the province.
Municipality code is a two-digit code (5th and 6th) that generally defines the relative
alphabetical sequence of municipalities within the province. Barangay code is a three-
digit code (7th to 9th).
4. Major Final Output (MFO)/Program, Activity and Project (PAP) Codes
As provided by Joint Circular No. 2013-1 dated August 6, 2013, it is a nine-digit code
comprised of Program, MFO, 1st Level Activity, and 2nd Level Activity. The first digit is
for Program. The next two digits (2nd and 3 rd) are for the MFO. The next two digits (4th
and 5th) are for 1st Level Activity. And, the 38 next four digits (6th to 9th) are for the 2nd
Level Activity. However, this was enhanced by Joint Circular No. 2014-1 dated
November 7, 2014 by including a three-digit code for Sector Outcomes and a two-digit
code for Horizontal Outcomes as prefix. Also included is another digit for the last
category of MFO/PAP to ensure that there is sufficient number of code values bringing
this to five digits (from 5-digit code). In total, this key element is now composed of 15
digits.
5. Object Codes
It is a ten-digit code composed of the first eight digits (1st to 8th) are for COA Chart of
Accounts Object, and the next two digits (9th and 10th) are for Sub-Object. If
disaggregation is necessary, sub-object codes shall be used to show the breakdown of
selected assets, income and expenses. Otherwise, two zeros will be used.

2. Explain the purpose of UACS.


The objective or purpose of UACS is to establish the accounts and codes needed in
reporting the financial transactions of the National Government Agencies. It provides a framework
for identifying, aggregating and reporting financial transactions in budget preparation, execution,
accounting and auditing. The key purpose of the UACS is to enable the timely and accurate
reporting of actual revenue collections and expenditures against budgeted programmed revenues
and expenditures.

3. Enumerate the reporting requirements that will be best served by UACS.

1. Financial reports as required by the DBM and COA.


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
agencies; and
4. Economic statistics consistent with the Government Finance Statistics (GFS) Manual 2001.

4. What are the sources of account descriptions and codes in the UACS object coding
elements?
1. The codes from the COA Revised Chart of Accounts prepared for accrual basis
financial reporting.
2. The addition of some sub-object codes; and 40 3. Additional expenditure accounts
designed for cash basis budgeting, such as those of capital outlays.

5. Enumerate descriptions and codes of Fund Cluster as provided by Joint Circular No.
2014-1 dated November 7, 2014.

Fund Cluster Fund Cluster Description


Code
01 Regular Agency Fund

02 Foreign Assisted Project Fund

03 Special Accounts – Locally Funded/Domestic Grants Fund

04 Special Accounts – Foreign Assisted/Foreign Grants Fund

05 Internally Generated Funds

06 Business Related Funds

07 Trust Receipts

6. Discuss the significance of the enhancement of Sector and Horizontal Outcomes as


provided by Joint Circular No. 2014-1 dated November 7, 2014.
As provided by Joint Circular No. 2014-1, dated November 7, 2014, MFO/PAP Codes is
now a 15-digit code due to enhancement. The significance of this enhancement is to provide the
ability to track budgets to the sector outcomes, thus, a 3-digit code 41 42 for the Sector Outcomes
was added as a prefix of the MFO/PAP Codes. And to provide the tagging of the horizontal
outcomes, another 2-digit code was added, for Horizontal Outcomes, next to Sector Outcomes,

7. What is a municipality identifier?

The Municipality Identifier is a four-digit number that defines the identity of the municipality.
It is the core of the national standard geographic system, and is composed of the Province Code,
followed by Municipality Code; therefore, the municipality identifier not only identifies the
municipality but also the province to which it belongs. An added feature of the municipality
identifier is its independence from the Region Code. Regardless of the region, the municipality
identifier for a certain town remains the same as long as it is part of that province.

8. Explain the transitory measure to allow government agencies/operating units sufficient


time in the familiarization of the UACS codes.

According to the National Budget Circular No. 554, “Conversion of Codes to Conform to the
UACS,” as a transition measure to allow Government Agencies/Operating Units sufficient time in
the familiarization of the UACS codes, the DBM shall still reflect the previous codes alongside the
UACS codes in the release documents. However, all National Government Agencies and
Operating Units are 42 authorized to make the necessary conversion of the appropriate codes,
particularly on the funding source and organization codes, to conform to the prescribed UACS
codes. In case of any discrepancy noted in the indicated UACS codes per SARO/NCA vis-à-vis
the UACS Manual, the codes per UACS Manual shall be adopted by the agency concern.

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