*

UACS Coding Framework

MFO/PAP Code Segments

MFO/PAP Code9 DigitsProgram1 digitMFO2 digitsActivity Code1st Level2 digits2nd Level4 digitsProject1 digitProject Category2 digitsProject Sub-Category2 digitsProject Title4 digitsPurpose (SPF)1 digitActivity Code1st Level2 digits2nd Level2 digits3rd Level4 digits

Refinement/Improvement of the UACS Code Structure

*The revision to the coding structure was approved by the PFM Committee on April 30, 2014

The PFM Budget Reporting and Performance Standard (BRPS) PIU is in the process of formalizing the coding structure revision and code values

A Joint Circular (or Budget Circular) will be issued to inform all agencies / users This will be done as soon as possible.

UACS Coding Framework (Revised/Improved)

The Revised/Improved UACS

*Implementing UACS for Budget Execution ProcessesThe UACS Code Structure has worked well for the Budget Preparation processThere is a need for some refinement of the UACS Code Structure as the code structure gets applied in the Budget Execution, Accounting, Disbursement, Reporting process

*Identified Needed UACS Refinements:Change in Budget base from Performance-Informed Budget (PIB) Output to Outcome-based budgetIdentification (tagging) of Sector and Sub Sector (using CoFoG), and Horizontal Programs (many agencies) for Budget Preparation and Execution (e.g. Disaster Related, Climate Change, etc.)

*Existing UACS is not designed for Integration of Tagging under Outcomes, Sectors / Sub Sectors, Horizontal Programs, etc. when the MFO/PAP Code was structured the structure was setup for vertical programs (within agency).Outcome Sector / Horizontal (5-Digit), MFO/PAP

*

In MFO/PAP, additional 6-digit codes for:

Sector / Sub Sector (CoFoG) 3 digitsHorizontal Programs 2 digitsAdditional 1 digit to the Project Title

Refinement to MFO/PAP Code

*Proposed for the MFO-PAP Element to address Outcomes is to utilize the Sectors / Sub Sectors from the Classifications of Functions of Government (CoFoG). This is the internationally recognized sectors for Outcome. This would be a 3 digit code

Proposed for the MFO-PAP Element to address specific Horizontal Programs is a 2 digit code for this. This would include items for Climate Change, Disaster Related, MITHI, Poverty Reduction, etc.Outcome Sector / Horizontal (5-Digit), MFO/PAP

*Example of Sector / Sub Sector (COFOG) Codes010 General Public Services020 Defense030 Public Order and Safety040 Economic Affairs050 Environmental Protection060 Housing and Community Amenities061 Housing Development062 Community Development063 Water Supply064 Street Lighting 070 Health080 Recreation, Culture, Religion090 Education Outcome Sector / Horizontal (5-Digit), MFO/PAP

*Example of Horizontal Programs Outcome Sector / Horizontal (5-Digit), MFO/PAP

Code ValueDescription01Employment02Disaster Related03Climate Change04Poverty Reduction05MITHI (Medium Term ITC Harmonization Initiatives)06Grassroots Participatory Budget07Program Budget

*Every MFO/PAP Code shall be attributed to one or more outcome sector, and may or may not have horizontal program.

In the absence of horizontal program the code shall be outcome sector, example 020 for Defense and 00, or in full 020 00.

Another example is outcome sub-sector 061 for Housing Development, and horizontal program 02 for Disaster Related, the complete code is 061 02Outcome Sector / Horizontal (5-Digit), MFO/PAP

*MFO/PAP Activity Level 2 / Project Title

Some large agencies may have huge number of projects that may exceed the existing 4-digit code (9,999) within a few years.

Increasing the project code to 5-digit (99,999) should be sufficient to handle the code for many decades.

Project Title (additional 1-Digit), MFO/PAP

*Questions and Comments?

Thank You!

The 4th element is the MFO and P/A/P Code. Consistent with the Organizational Performance Indicator Framework (OPIF), an approach to expenditure management that directs resources for major final outputs. MFO is a good or service that a department/agency is mandated to deliver to external clients through implementation of programs, activities and projects.

When we prepared the 2014 NEP, the P/A/P code is already reflected there. It is the 9 digit code appearing on the left side of Expenditure program. This refers to the following:Program1st digit program or cost structures (e.g.,GAS -1; STO-2; Operations-3)2nd digit MFO codes3rd digit Activity codes (up to 2 level of activities) 2. Project 1st digit Project 2nd and 3rd digit project category (e.g.. Governance) 4th and 5th digits Project sub-category (e.g. General Public Services, Defense) 6th to 9th digits project title

Purpose in the case of Special Purpose Funds1st digit SPF purpose2nd to 9th digits activity codes (up to 3 levels of activities)

*A Program is an integrated group of activities that contributes to an agency or departments continuing objective. Examples include General Administration and Support, Support to Operations, and Operations.

An activity is defined as a work process that contributes to the fulfilment of a program or project. Each activity shall be attributed to only one MFO. Activities are to be assigned to General Administration and Support, or Support to Operations if they benefit internal clients. On the other hand, an activity that benefits external clients shall be attributed to a Major Final Output.

Projects are special department/agency undertakings carried out within a definite timeframe and which are designed to produce a pre-determined measure of goods or services (MFOs). A project is considered an investment toward expanding the capacity of a department or agency to deliver MFOs. Projects are categorized into physical infrastructure (buildings, roads and bridges) and non-physical infrastructure (education, health, governance). Project sub-categories under buildings are school buildings, health facilities while under education (basic education, tertiary) health (public health services)

An MFO is defined as a good or service that a department or agency is mandated to deliver to external clients through the implementation of programs, activities and projects.*

The 4th element is the MFO and P/A/P Code. Consistent with the Organizational Performance Indicator Framework (OPIF), an approach to expenditure management that directs resources for major final outputs. MFO is a good or service that a department/agency is mandated to deliver to external clients through implementation of programs, activities and projects.

When we prepared the 2014 NEP, the P/A/P code is already reflected there. It is the 9 digit code appearing on the left side of Expenditure program. This refers to the following:Program1st digit program or cost structures (e.g.,GAS -1; STO-2; Operations-3)2nd digit MFO codes3rd digit Activity codes (up to 2 level of activities) 2. Project 1st digit Project 2nd and 3rd digit project category (e.g.. Governance) 4th and 5th digits Project sub-category (e.g. General Public Services, Defense) 6th to 9th digits project title

Purpose in the case of Special Purpose Funds1st digit SPF purpose2nd to 9th digits activity codes (up to 3 levels of activities)

***