Republic of the PhilippinesDEPARTMENT OF BUDGET AND MANAGEMENT

COMMISSION ON AUDITDEPARTMENT OF FINANCE

UACSPRIMER

Unified Accounts Code Structure

UACS Primer5

TABLE OF CONTENTSMESSAGE --------------------------------------------------------------------------------------- 9

I. INTRODUCTION ----------------------------------------------------------------------------------- 10

II. BACKGROUND ----------------------------------------------------------------------------------- 10

III. THE UNIFIED ACCOUNTS CODE STRUCTURE (UACS) -------------------------------------- 11 A. UACS DEFINITION --------------------------------------------------------------------------- 11 1. WHAT IS THE UACS? ------------------------------------------------------------------ 11

B. UACS PURPOSE ------------------------------------------------------------------------------ 11 1. WHAT IS THE OBJECTIVE OF THE UACS? ----------------------------------------- 11 2. WHAT IS THE KEY PURPOSE OF THE UACS? ------------------------------------- 11 3. WHAT BENEFITS WILL THE UACS PROVIDE FINANCIAL USERS? ------------ 11 4. WHAT ARE THE REPORTS THAT ARE BEST SERVED BY THE UACS? --------- 12

C. UACS APPLICATION ------------------------------------------------------------------------- 12 1. WHAT ARE THE GOVERNMENT AGENCIES COVERED BY THE APPLICATION OF THE UACS? ---------------------------------------------- 12 2. ARE LOCAL GOVERNMENT UNITS REQUIRED TO USE THE UACS? --------- 12

D. RESPONSIBILITIES FOR THE UACS ------------------------------------------------------ 12 1. WHO ARE RESPONSIBLE FOR THE ADMINISTRATION OF THE UACS? ----- 12 2. WHAT IS THE RESPONSIBILITY OF ALL AGENCIES UNDER THE UACS? ----- 13

E. THE ELEMENTS OF THE UACS ------------------------------------------------------------ 13 1. HowmanydigitsaretheexistingUACSCodes?-------------------------------- 13 2. Whyisthereaneedforrefinement/improvementoftheUACS?---------- 13 3. WhatelementsoftheUACSareaffectedbytherefinement?-------------- 14 4. HowmanydigitswilltheUACShaveaftertherefinement? ---------------- 14 5. WhatarethecomponentsofFundingSourceCode? ------------------------ 14 6. WhatarethecomponentsofOrganizationCode? ---------------------------- 14 7. WhatarethecomponentsofLocationCode? --------------------------------- 14 8. WhatarethecomponentsofMFO/PAPCode? -------------------------------- 15 9. WhatarethecomponentsofObjectCode? ----------------------------------- 15 10. WhatisthegeneralrulefortheassignmentofUACSCodes? -------------- 15 11. Whatisthestatusofacodeatthetimeitiscreated? ----------------------- 15 12. WhatismeantbyadeactivatedcodeintheUACS? ----------------------- 15 13. Whenwillacodebedeactivated? ------------------------------------------------ 16 14. Canadeactivatedcodebereused? -------------------------------------------- 16 15. Howdoesthedeactivatedcodediffer fromaninactivecodeinUACS? --------------------------------------------------- 16

6 UACS Primer

16. Whoareauthorizedorresponsibleforthedeactivation andreactivationoftheUACScodes? --------------------------------------------- 16 17. IftherequiredUACScodedoesnotexistintheUACSManual, isitpossibletousethecodeclassifiedasOthers? ------------------------- 16 18. HowoftenaretheUACSCodesupdated?--------------------------------------- 16

F. FUNDING SOURCE CODE ------------------------------------------------------------------- 17 1. WhatisaFundingSource? ---------------------------------------------------------- 17 2. WhatisaFundCluster?-------------------------------------------------------------- 17 3. Whataretheclustersoffundingsources? -------------------------------------- 17 4. Inkeepingthebooksofaccounts, isitbyFundingSourceCodeuptothelowest fundcategorylevel?Orbyfundcluster? ---------------------------------------- 17 5. WhatisthepurposeoftheFinancingSourceCode andwhatisitsclassification? ------------------------------------------------------ 18 6. WhatistheAuthorizationCodeandwhatisitsclassification? ------------ 18 7. WhatisaFundCategoryCode,andhowisitclassified? -------------------- 18 8. IsthereaneedtocreatedifferentFundingSources forthesameSpecialAccountintheGeneralFund(SAGF) beingutilizedbythedifferentagencies? ---------------------------------------- 19 9. Whatisthebasisforthecreationorassignment oftheFundingSourceCodeofeachagency? ---------------------------------- 19

G. ORGANIZATION CODES -------------------------------------------------------------------- 19 1. IntheUACS,whatisconsideredtobeaDepartment? ---------------------- 19 2. WhatarethespecificUACSCodesforaDepartment? ----------------------- 20 3. IntheUACS,whatisanAgency,andhowisitrelated ordistinguishedfromaDepartment?-------------------------------------------- 21 4. IntheUACS,whatisanOperatingUnit?----------------------------------------- 21 5. WhatisthepurposeoftheUACSclassificationcode? ----------------------- 22 6. WhatarethespecificUACSclassificationcodes foreachoperatingunit? ------------------------------------------------------------ 22 7. Whatarethespecificbusinessrules forOrganizationCodeundertheUACS?----------------------------------------- 23 8. WilltherebeanewOrganizationCode forarenamedorganizationalentity? -------------------------------------------- 24 9. WilltherebeanewOrganizationCodeforschoolstransferred fromoneDivisiontoanotherwithinthesameregion? -------------------- 24

H. LOCATION CODES --------------------------------------------------------------------------- 24 1. WhatistheuseandbasisoftheLocationCodes? ---------------------------- 24 2. WherecanIgetthecompletelistofLocationCodes? ----------------------- 24 3. WhatarethebasicbusinessrulesforLocationcoding? -------------------- 24 4. IstheLegislativeDistrictincludedinthecodingstructure?----------------- 25 5. HowdoweusetheLocationCodeintheUACS? ------------------------------ 25

UACS Primer7

I. MFO/PAPCODES ---------------------------------------------------------------------------- 25 1. What is COFOG? ---------------------------------------------------------------------- 25 2. ShouldtheSectorCodebeutilized fortransactioncaptureandreporting? ------------------------------------------ 25 3. CanwechangethewordingsoftheSub-sector? ------------------------------ 25 4. WhatisaHorizontalOutcomeinMFO/PAP? ---------------------------------- 26 5. WhatarethebasicbusinessrulesforMFO,ProgramandActivity?------- 26 6. WhatisaProject? -------------------------------------------------------------------- 27 7. WhatisaProjectCategory? -------------------------------------------------------- 27 8. IstheProjectCategoryuniquetoeachagency?------------------------------- 28 9. Isthereanypossibilitythatoneprojectsub-category mayappearinmorethanoneprojectcategory?------------------------------ 28 10. CanaProjectTitlebeapplicabletobothProjectsandOperations? ------ 28 11. WilltheMFO/PAPCodebethesameorisitchangingeveryyear?------- 28 12. Ifaprojectoranactivityiscompleted,cantheCodebeutilized foranotherprojectoractivityinthesucceedingyear? --------------------- 28 13. WhatMFO/PAPCodeshallbeused forFY2013appropriationwithvalidityextended uptoDecember31,2014(continuingappropriation)? --------------------- 28 14. WhenwilltheProjectCodeintheUACSbedeactivated?------------------- 29 15. WhatMFO/PAPwillbeusedfortheSpecialPurposeFund? --------------- 29

J. OBJECT CODE --------------------------------------------------------------------------------- 29 1. WhatisthepurposeofobjectinformationintheUACS? ------------------- 29 2. WhatisthesourceandbasisofobjectcodingintheUACS? --------------- 30 3. Whatisthestandardusedasabasisofcoding intheCOARevisedChartofAccounts? ------------------------------------------ 30 4. Whatistheaccountingbasisforrecordingfinancial transactionsinthenationalgovernment?--------------------------------------- 30 5. UndertheUACS,howaretheallotmentclasses ofexpensescategorized?------------------------------------------------------------ 30 6. Whichagenciesareresponsiblefordisaggregation ofObjectCodeintoSub-objectCodes? ----------------------------------------- 30 7. HowistheobjectcodingforCapitalOutlaysbeingharmonized? --------- 31 8. HowdowebooktheRetirementandLifeInsurance Premiums(RLIP)forpersonalshareandgovernmentshare? -------------- 31

IV. ACRONYMS --------------------------------------------------------------------------------------- 31

V. DEFINITION OF TERMS -------------------------------------------------------------------------- 33 ACTIVITY -------------------------------------------------------------------------------------- 33 CUSTODIAL FUNDS ------------------------------------------------------------------------------- 33 FOREIGN ASSISTED PROJECTS ----------------------------------------------------------------- 33 GENERAL FUND ---------------------------------------------------------------------------------- 33

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GOVERNMENT INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM (GIFMIS) ------------------------------------------------------- 33 LOCALLY-FUNDED PROJECTS (LFPS) ---------------------------------------------------------- 33 MAJOR FINAL OUTPUTS (MFOS) -------------------------------------------------------------- 33 OFF-BUDGETARY FUNDS ------------------------------------------------------------------------ 33 OPERATING UNITS -------------------------------------------------------------------------------- 33 (OPERATING UNITS) CLASSIFICATION CODE ------------------------------------------------ 34 PROGRAM -------------------------------------------------------------------------------------- 34 PROJECT ---------------------------------------------------------------------------------------- 34 PROJECT CATEGORY ----------------------------------------------------------------------------- 34 PUBLIC FINANCIAL MANAGEMENT (PFM) -------------------------------------------------- 34 RECEIPTS ------------------------------------------------------------------------------------ 34 RETAINEDINCOME/FUNDS ------------------------------------------------------------------ 34 REVENUE ------------------------------------------------------------------------------------ 34 REVOLVING FUNDS ------------------------------------------------------------------------------ 34 SPECIAL ACCOUNTS IN THE GENERAL FUND (SAGF) ------------------------------------- 35 SPECIAL PURPOSE FUNDS (SPFS) ------------------------------------------------------------- 35 TRUST FUND --------------------------------------------------------------------------------------- 35 UNIFIED ACCOUNTS CODE STRUCTURE (UACS) ------------------------------------------- 35 UNPROGRAMMED APPROPRIATIONS ------------------------------------------------------- 35

VI. UACSMFO/PAPELEMENTSECTOROUTCOMECODEVALUES ---------------------- 36

VII. UACSMFO/PAPELEMENTHORIZONTALOUTCOMECODEVALUES ---------------- 39

UACS Primer9

We are at the core of making strongtransformations in the Philippine publicfinancialmanagement (PFM) system thatwillbestservetheinterestsoftheFilipinopeopleamoreefficient,transparent,andaccountablegovernmentinthewayitmanagesthepeoplesbudget.

Since the beginning of the AquinoAdministration,wehaveundertakensignificantkey reforms to improve our budget system,

all of which are strongly backed by the introduction of the Unified AccountsCodeStructure(UACS).TheUACSisnowbeingimplementedinthegovernmentoversightagencies, thereby,harmonizing thewayweaccount for,analyze,andreconcilethefinancesofthegovernment.

To further ensure that the UACS is properly implemented within our agencyand by our partner agencies, the UACS Primer was developed to serve as aguideforeveryoneresponsibleforplanning,budgeting,andaccountingintheirrespectiveagencies.With this, informationandguidancewouldbewellwithinyourimmediatereach.

Theprimerand itsaccompanyingdevelopmentswouldnothavebeenpossiblewithouttheeffortsoftheimplementationteaminDBMandtechnicalassistanceprovidedbytheAustralianGovernment.

Let us continuously strengthen good governance in the country, and remaincommitted,persistent,andsteadfastinenhancingthePhilippinePFMsystem.

FLORENCIO B. ABADSecretary

DepartmentofBudgetandManagement

Message

10 UACS Primer

I. INTRODUCTION ThisbookletanswersmanyofthebasicquestionsabouttheUnifiedAccountsCode

Structure(UACS).MostofthearticlescontainedhereinareextractedfromtheUACSManual as adopted pursuant to Department of Budget andManagement (DBM),DepartmentofFinance(DOF),CommissiononAudit(COA)JointCircularNo.2013-1datedAugust6,2013.TheUACSManual iscomposedofthreeparts:JointCircularPages1to4;UACSManual(policies)-Pages1to41;UACSManual-Appendices Pages 1 to 349. The Primer also contains materials and information gatheredfromthecombinedeffortsoftheoversightagencies incooperationwiththeUACSHarmonizationTeamduringaseriesoftrainingsconductedinthefirsthalfoftheyearofimplementationoftheUACS.ThisbookletservesasahandyguidetoallfinancialusersofthegovernmentinvolvedintheimplementationoftheUACS.

This Primer is expected to provide direction and guidance toDBMon the properimplementationoftheUACSinallphasesofthebudgetcycle,andgenerallyforallUACS financial users. This is also intended to be used for theUACSHelpDesk asresourcematerialandshallbepostedandbemadeavailableontheUACSwebsiteforfinancialusersaccess.

II. BACKGROUND Executive Order No. 55 s. 2011 mandated the Public Financial Management (PFM)

CommitteecomposedoftheCOA,DBM,DOFandtheBureauoftheTreasury(BTr)tooverseetheintegrationandautomationofgovernmentfinancialandinformationsystemsandthe implementationof thePFMReformRoadmap.TheRoadmap is implementedthroughsixkeyinitiatives,namely:BudgetReportingandPerformanceStandards(BRPS),AccountingandAuditingReforms (AAR), ImprovementofTreasuryCashManagementOperations (ITCMO), Liability Management (LM), Government Integrated FinancialManagementInformationSystem(GIFMIS),andCapacityBuilding(CB).

InresponsetotheBRPSreforminitiative,andtoenabletheintegrationoffinancialsystems, it is necessary to harmonize, simplify and consolidate data structuresand apply a consistent set of budgeting and accounting rules and regulations forgenerating financial and physical performance reports vis--vis plans, policies andtargets.InApril2013,thePFMCommitteeadoptedagovernment-wideharmonizedbudgetary,treasuryandaccountingcodeclassificationstructureortheUACS.

WhiletheUACShasbeenimplementedbytheDBMandallothernationalgovernmentagencies in the budget preparation and execution processes, many issues andconcerns have been identified on how to apply theUACS properly. In a series oftrainingsandmeetingsconductedwiththeoversightagencies,manyquestionswereraisedregardingthis.Theseissuesorconcernshavebeenprovidedwithsolutions.

UACS Primer11

III. THE UNIFIED ACCOUNTS CODE STRUCTURE (UACS) A. UACSDefinition

1. WhatistheUACS?

The UACS is a government-wide harmonized budgetary, treasury andaccountingcodeclassificationstructurejointlydevelopedbytheDBM,COA,DOFandBTrwhichaimstofacilitatefinancial reportingandconsolidationof actual revenue collection and expenditures, enable the assessment ofoutturns against transparency/accountability and improve efficiency intermsofutilizationofgovernmentfunds.TheUACSwasinitiallyadoptedfortheFY2014budget.

B. UACSPurpose

1. WhatistheobjectiveoftheUACS?

The objective of the government-wide UACS is to establish the accountsand codes needed in reporting the financial transactions of theNationalGovernment of the Republic of the Philippines. The UACS provides theframeworkforidentifying,aggregatingandreportingfinancialtransactionsinthebudgetprocess,accountingandauditing.

2. WhatisthekeypurposeoftheUACS?

ThekeypurposeoftheUACSistoenablethetimelyandaccuratereportingofactualreceipts,collectionsandexpendituresagainstbudgetedprogrammedrevenuesandexpenditures.

3. WhatbenefitswilltheUACSprovidefinancialusers?

As a coding framework for financial transactions, the UACS ensures thatall processes, from budgeting and cash management to accounting andaudit,willfollowasingleclassificationsystem.Thenewcodesfacilitatethegathering,aggregation,consolidationandreportingoffinancialtransactionswithinanagencyandacrossgovernmentagencies.

TheUACSservesasthebackboneforrecording,accounting,analyzingandreportinggovernmentfinances,andwillfacilitatetheintegrationoffinancialsystemstowardstheimplementationoftheGovernmentIntegratedFinancialManagementInformationSystem(GIFMIS).

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4. WhatarethereportsthatarebestservedbytheUACS?

ReportingrequirementsthatwillbebestservedbytheUACSinclude:

a. FinancialreportsasrequiredbytheDBM,COA,DOFandotheragencies,b. Financial Statements as required by the Public Sector Accounting

StandardsBoard(PSASB)ofthePhilippines,c. Reportsrequiredbytheexecutiveofficials/headsofdepartmentsand

agencies,andd. Economicstatisticsconsistentwith theGovernmentFinanceStatistics

(GFS)Manual2001.

C. UACSApplication

1. What are the government agencies covered by the application of theUACS?

The UACS will be used by all departments and agencies of the NationalGovernmentandGovernment-OwnedorControlledCorporations(GOCCs)with Budgetary Support from the National Government including thosemaintainingtheSpecialAccountintheGeneralFund(SAGF).

2. AreLocalGovernmentUnitsrequiredtousetheUACS?

Notatthistime.ButitisenvisionedthatthelocalgovernmentunitswillalsoimplementtheUACSinthenearfuture.

D. ResponsibilitiesfortheUACS

1. WhoareresponsiblefortheadministrationoftheUACS?

a. TheDBM,DOF-BTr,PhilippineStatisticsAuthority(PSA,formerlyNationalStatistical Coordination Board [NSCB]) and the COA are collectivelyresponsiblefortheUACS.

b. Validationandassignmentofnewcodesforfundingsource,organization,andsub-objectcodesforexpenditureitemsshallbetheresponsibilityofthe DBM.

c. ValidationandassignmentofnewProgram,Activity,andProject(PAP)CodesshallbedecidedjointlybytheproponentagencyandDBM.

d. Consistency of account classification and coding structure with theRevisedChartofAccountsshallbetheresponsibilityoftheCOA.

e. Consistency of account classification and coding standards with theGovernmentFinanceStatisticsshallbetheresponsibilityoftheDOFBTr.

f. ConsistencyofthelocationcodesshallbetheresponsibilityofthePSAformerlyNSCB.

UACS Primer13

2. WhatistheresponsibilityofallagenciesundertheUACS?

All agencies are required to implement the UACS in all their financialtransactions,fromdatacapturetoreportingrequirements.

E. TheElementsoftheUACS

1. HowmanydigitsaretheexistingUACSCodes?

TheexistingUACSconsistsof46digits,withthefollowingkeyelements:

a.FundingSource(6-digit)b.Organization(12-digit)c.Location(9-digit)d.MFO/PAP(9-digit),ande.Object(10-digit)

Thereisfurtherrefinementtothestructurewhichwillbediscussedinthesucceedingtopic.

2. Whyisthereaneedforrefinement/improvementoftheUACS?

TheUACShasgenerallyworkedwellforthebudgetpreparationprocess.Asitbeginstobeutilizedextensively,beingapplied inthebudgetexecution,accounting, disbursement, and reporting processes, improvements wereidentified.

These improvements are either unforeseen recording or reportingrequirements or are recent requirements that were not considered oranticipatedwhenthecodingharmonizationwasbeingconceptualized.

Forexample,forfundingsource,maintainingbooksofaccountsneedstobebyfundingsourcewhichfromonepreviousfund(Fund101)canbeabout34fundingsourcecodesintheUACS.Thisisequivalentto34booksofaccountsandcanpossiblyhave34differentbankaccounts.ThisisnottherealintentoftheUACSandisalsocontrarytoanotherPFMreformwhichistheTreasurySingleAccountorTSA.

Another example is the shift from Output-based to Outcome-basedbudgeting (results-oriented), and the budget identification (tagging) ofSectorandSub-sector(usingClassificationoftheFunctionsofGovernment(COFOG)), and Horizontal Outcomes (e.g., Disaster-Related, ClimateChange,etc.),whichareallnewrequirementsforbudgetpreparationandexecution.

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3. WhatelementsoftheUACSareaffectedbytherefinement?

TheUACSelementsaffectedbytherefinementare:

a. TheFundingSourcewhereinanadditionaltwo-digitcodecalledFundClusterwasaddedasaprefixtotheexisting6-digitcode;

b. TheMFO/PAPCodewhereinanadditionalfive-digitcodecalledSector/HorizontalOutcomeswasaddedalsoasaprefixtotheexisting9-digitcode;and

c. Theadditional1digittotheProjectTitletoaccommodatemoreprojectsinthebudgetofanagencyforseveralyears.

4. HowmanydigitswilltheUACShaveaftertherefinement?

Therefined/improvedUACSisnow54digits,withthefollowingkeyelements:

FundingSource(8-digit) Organization(12-digit) Location(9-digit) MFO/PAP(15-digit) Object(10-digit)

5. WhatarethecomponentsofFundingSourceCode?

FundingSourceiscomposedof8digits,withsegmentsfor:

FundCluster2digits FinancingSource1digit Authorization2digits FundCategory3digits

6. WhatarethecomponentsofOrganizationCode?

Organizationiscomposedof12digits,withsegmentsfor:

Department2digits Agency3digits OperatingUnitClassification2digits LowerLevelOperatingUnitClassification5digits

7. WhatarethecomponentsofLocationCode?

Locationiscomposedof9digits,withsegmentsfor: Region2digits Province2digits

UACS Primer15

City/Municipality2digits Barangay3digits

8. WhatarethecomponentsofMFO/PAPCode?

TheMFO/PAPiscomposedof15digits,withsegmentsfor: Sector/Sub-sectorOutcomes3digits HorizontalOutcomes2digits Program/Project/Purpose1digit MFO/ProjectCategory/ActivityLevel12digits ActivityLevel1/ProjectSub-Category/ActivityLevel22digits ActivityLevel2/ProjectTitle/ActivityLevel35digits

9. WhatarethecomponentsofObjectCode?

TheObjectCodeiscomposedof10digits,withsegmentsfor: Object8digits,basedontheCOARevisedChartofAccounts Sub-object2digits

10. WhatisthegeneralrulefortheassignmentofUACSCodes?

Assignedcodesareneverreusedforapurposeotherthanthatforwhichtheywereoriginallyassigned.Newcodesarealwaystobeassignedtonewfundsources,organizationalentities,location,MFOs,PAPsandobjectdescriptors.

11. Whatisthestatusofacodeatthetimeitiscreated?

Generally,mostofthenewUACScodesaretaggedasActiveatthetimeit was created. Exceptions are made for some Organization Codes likeforDepEdwherein somenew schools are alreadyassigned codes even ifthesearenotyetfullyfunctioningasanoperatingunit,inwhichcase,theorganizationcodeisinactiveatthetimeitwascreated.

12. WhatismeantbyadeactivatedcodeintheUACS?

AdeactivatedcodeintheUACSisacodeunderanyelementoftheUACSthat was previously active or used but for some reasons like transfer oforganizationfromonedepartmentoragencytoanother(forOrganizationcode), was precluded to be utilized. However, the deactivated codesremain permanently in theUACS repository database for the purpose ofmaintainingitstransactionhistory.

Adeactivatedcodeisstillaccessibleasread-onlyintheUACSdatabaseforthepurposeofreportinghistoricaltransactionsbutcannolongerbeusedtoaccommodatenewtransactions,unlessitisreactivated.

16 UACS Primer

13. Whenwillacodebedeactivated?

Acodecanbedeactivateduponrequestbytheoversightagenciesor theimplementingagencyconcernedtotheDBM.

14. Canadeactivatedcodebereused?

Yes.Ifforanyvalidreason,thereisaneedtoutilizethedeactivatedUACScode,thesamewillbereactivatedbytheUACSAdministratorintheDBM. Itmustbeusedfortheoriginalpurpose.

15. HowdoesthedeactivatedcodedifferfromaninactivecodeinUACS?

Ascomparedtoadeactivatedcode,aninactivecodeisanassignedcodeunderanyelementof theUACSthathasnotbeenusedasof thedateofissuanceoftheUACSManual,butcanbeactivatedoncetheconditionsforactivationaremet.

16. WhoareauthorizedorresponsibleforthedeactivationandreactivationoftheUACScodes?

The duly designated UACS Administrator in the DBM shall have the soleresponsibility for the creation, deactivation and reactivation, and anychangesoralterationstoanyUACSCodeelement intheUACS,subjecttotheproperapprovalauthority.

17. IftherequiredUACScodedoesnotexistintheUACSManual,isitpossibletousethecodeclassifiedasOthers?

No.ThecodeclassifiedasOthersshouldnotbeutilized.ThiscodedescribesthecomponentsofUACSkeyelementsforitemspendingidentification,subjecttothesubmissionofarequestforspecificcodeassignmentstothe UACS Administrator in the DBM.

HoweverinthecaseofObjectCode,thereareObjectCodes,suchas,OtherSuppliesandMaterialsExpenses,OtherProfessionalServices,OtherGeneralServicesthatareprovidedintheRevisedChartofAccountsthatarealsoforuseinrecordingtransactions.

18. HowoftenaretheUACSCodesupdated?

TheUACSCompleteListofCodesareupdatedimmediatelyastheElementOwners(FundingSource,OrganizationandSub-ObjectCodeDBM,LocationPSA(formerlyNSCB),ObjectCodeCOA)issuenewcodes.

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FundingSourceCode

1.WhatisaFundingSource?

Funding Source consists of financial resources of the government setaside for specific purposes to finance specific programs and projectsof the government. This includes General Fund, Off-Budgetary Funds(Retained Income/Receipts and Revolving Funds) and Custodial Funds(TrustReceipts).

2. WhatisaFundCluster?

Fund Cluster is an aggregation of Funding Sources for the purpose ofrecording transactionsandpreparing reports in theBudget, TreasuryandAccountingprocesses.

The aggregation of Funding Sources into the Fund Cluster is necessary,otherwise,eachFundingSourcewillhaveitsownbooksofaccounts.

3. Whataretheclustersoffundingsources?

Theclustersoffundingsourcesare:

Code Description01 RegularAgencyFund02 ForeignAssistedProjectsFund03 SpecialAccountsLocallyFunded/DomesticGrantsFund04 SpecialAccountsForeignAssisted/ForeignGrantsFund05 InternallyGeneratedFunds06 BusinessRelatedFunds07 TrustReceipts

4. Inkeepingthebooksofaccounts,isitbyFundingSourceCodeuptothelowestfundcategorylevel?OrbyFundCluster?

Themaintenance/keepingofthebooksofaccountsshallbebyFundCluster,butthedatacaptureortherecordingoftransactionsshallbeatthelowestdetail possible which in this case, goes down to the fund category codelevel.

Theproper8-digitcodeshallalwaysbeutilized.Thisistoprovidetheabilityto record and analyze information at various levels within the fundingsource.

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5. What is the purpose of the Financing Source Code and what is itsclassification?

FinancingSourceCodeindicatesthebasisoffundstowhichtheexpendituresshall be charged, identifyingwhether the source iswithin or outside theGeneralFund.Thisisclassifiedas:

1 GeneralFund2 Off-BudgetaryFunds3 CustodialFunds

6. WhatistheAuthorizationCodeandwhatisitsclassification?

The Authorization Code provides the legal basis of the appropriation orfunds,whichisclassifiedas:

01 NewGeneralAppropriations02 ContinuingAppropriations03 SupplementalAppropriations04 AutomaticAppropriations05 UnprogrammedFunds06 RetainedIncome/Funds07 RevolvingFunds08 TrustReceipts

7. WhatisaFundCategoryCode,andhowisitclassified?

TheFundCategoryCodeidentifiesspecificfundsmaintainedbytheagencyfor accounting purposes, as well as for recording and reporting budget,treasuryandaccounting transactions. This is a summaryof classificationsaccordingtofundingsource,asfollows:

FundCategoryClassificationandCodeTable

Classification/Description

Existing Existing

NSACS Fund Code/sCode/s

UACS Fund Category

Code - Series

Specific Budgets of NGAs 101 101 to 150GoP Counterpart Funds and Loans/Grants from Development Partners 102/171 151 to 250

Allocations to Local Government Units 103 251 to 275Budgetary Support to Government Corporations 103/104 276 to 300

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Financial Assistance to MMDA 301 to 320

Special Accounts in the General Fund 105, 183, 401, 151 to 159 321 to 400

Special Purpose Funds 401 to 420

Unprogrammed Funds 421 to 440

Retained Income/Funds 441 to 500

Revolving Funds 161 to 164 501 to 600

Trust Receipts 101-184, 187 601 to 610

Others (Specify) 611 - 999

8. IsthereaneedtocreatedifferentFundingSourcesforthesameSpecialAccountintheGeneralFund(SAGF)beingutilizedbythedifferentagencies?

No.FortheSAGFusedbymorethanoneagency,onlyoneFundingSourceCodeshallbeused.Forexample,thefundingsourcecode01104322assignedtoAgrarianReformFundundertheDAR-OSECshallbeusedbyallagenciesavailingfundsfromthatSAGF(i.e.DOF,DOJ).

9. What is thebasis for the creationor assignmentof the Funding SourceCodeofeachagency?

TheassignmentoftheFundingSourceCodeisbasedonrepresentationsbyagenciesconcernedthatthecreationoffunds,i.e.,SpecialAccountsintheGeneralFund,TrustReceipts,RevolvingFunds,amongothers,aswellastheuse/sthereof,areauthorizedbylaw.Accordingly,thesameshallbewithoutprejudice to theeventualdeterminationby theDBMthat thecreationofsaidfundsiswithoutlegalbasis,ornotinfullcompliancewithlaws,rulesandregulations.TheDBMisfurtherauthorizedtodeactivatethefundcodepreviously assignedanddeactivate the same in theUACSManual and itsAppendicesandsuchotheractionsnecessaryintheproperadministrationoftheFundingSourceCodes.

OrganizationCodes

1.IntheUACS,whatisconsideredtobeaDepartment?

ForpurposesoftheUACS,aDepartmentisdefinedastheprimarysubdivisionoftheExecutiveBranchresponsiblefortheoverallmanagementofasectororapermanentnationalconcernwithnationwideorinternationalimpact.A Department is headed by a Secretary or an officialwith an equivalentposition level. In addition, Constitutional Offices, the Judiciary and theLegislaturearecategorizedasdepartment-levelentities.

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2. WhatarethespecificUACSCodesforaDepartment?

ThespecificDepartmentCodesundertheUACSpursuanttotheCOA-DBM-DOFJointCircularNo.2013-1datedAugust6,2013arethefollowing:

Department Name UACS Code

Congress of the Philippines 01Office of the President (OP) 02Office of the Vice President (OVP) 03Department of Agrarian Reform (DAR) 04

Department of Agriculture (DA) 05

Department of Budget and Management (DBM) 06

Department of Education (DepEd) 07

State Universities and Colleges (SUCs) 08

Department of Energy (DOE) 09

Department of Environment and Natural Resources (DENR) 10Department of Finance (DOF) 11Department of Foreign Affairs (DFA) 12Department of Health (DOH) 13Department of the Interior and Local Government (DILG) 14

Department of Justice (DOJ) 15

Department of Labor and Employment (DOLE) 16

Department of National Defense (DND) 17

Department of Public Works and Highways (DPWH) 18

Department of Science and Technology (DOST) 19

Department of Social Welfare and Development (DSWD) 20Department of Tourism (DOT) 21Department of Trade and Industry (DTI) 22Department of Transportation and Communications (DOTC) 23National Economic and Development Authority (NEDA) 24

Presidential Communications Operations Office (PCOO) 25

Other Executive Offices 26

Autonomous Region In Muslim Mindanao (ARMM) 27

Joint Legislative - Executive Councils 28

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The Judiciary 29

Civil Service Commission (CSC) 30Commission on Audit (COA) 31Commission on Elections (COMELEC) 32Office of the Ombudsman 33Commission on Human Rights (CHR) 34

Budgetary Support to Government Corporations 35

Financial Assistance to Metropolitan Manila Development Authority 36

3. IntheUACS,whatisanAgency,andhowisitrelatedordistinguishedfromaDepartment?

Agency refers to any of the various units of the government, includingan office, instrumentality or GOCC that may not approximate the sizeof a department, butwhichnevertheless performs tasks that are equallyimportantandwhoseareaofconcernisnationwideinscope.

ForpurposesoftheUACS,anagencyisanentityunderadepartmentwhosebudgetisdirectlyreleasedtothelatter,andmayincludethesummationofallbudgetsofsub-agencieslistedunderit,ifany.

4. IntheUACS,whatisanOperatingUnit?

AnOperatingUnitischargedwithcarryingoutspecificsubstantivefunctionsorwhichdirectlyimplementsPAPsofadepartmentoragency,suchaslinebureaus,regionalofficesandfieldunits.

For the purposes of the UACS, each operating unit shall have its ownOrganizationCodeifitfallsunderanyofthefollowinginstances:

a. DirectlyreceivingbudgetsfromtheDBMb. RecipientsoffundtransfersfromhigherlevelOUsc. Authorizedtocollectrevenues

InthecaseoftheDepEd,however,aschoolwhichdoesnotfallunderanyof the above-mentioned instances, will have an Inactive OrganizationCodewhichshallonlybeactivatedoncetheschoolmeetsanyofthesaidconditions.

22 UACS Primer

5. WhatisthepurposeoftheUACSclassificationcode?

Thepurposeoftheclassificationcodeistoidentifyspecificoperationaland/oradministrativefunctionsofanorganizationalunitwithinadepartment,agencyoranyothergovernmentorganization.

Theclassificationcode isdefinedas theclassificationofanorganizationalunitwithspecificandproperlydelineateddutiesandresponsibilitiesthatisuniqueacrossdifferentfunctionallevelswithinagovernmentorganization,adepartment,oranagency.

6. WhatarethespecificUACSclassificationcodesforeachoperatingunit?

The listofdepartments,agencies, lower-leveloperatingunitsandGOCCs,andtheirrespectivecodesarethefollowing:

Lower Level Operating Units Classifications UACS CodeCentral Office 01Staff Bureaus 02Department/Agency Regional Offices/Centers for Health Development/Regional Field Units DA

03

State Universities and Colleges Campuses 04Provincial Offices DAR and DENR 05National Irrigation Administration Regional Offices DA 06Extension or Field Offices - CDAMDOF/Penal Colonies BUCOR 07Schools Division/District Offices DepEd 08Secondary Schools - DepEd/Campuses PSHS 09Collection Districts** BOC 10Revenue Regional Offices* BIR 11Revenue District Offices** BIR 12Embassies/Consulates General/Manila and Regional Consular Offices DFA

13

Special/Retained Hospitals DOH 14Treatment and Rehabilitation Centers DOH 15Technical/Vocational Schools TESDA 16Key Budgetary Units DND 17District Engineering Offices and Sub District Engineering Offices DPWH 18Land Transportation Offices DOTC 19Land Transportation Franchising and Regulatory Board DOTC 20

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Regional Development Councils NEDA 21Autonomous Region in Muslim Mindanao 22Philippine National Railway 23Budgetary Support to Government Corporations (BSGC) Subsidiary 24

*Anoperatingunitaswellasarevenuecollectingunit**Arevenuecollectingunitbutnotanoperatingunit

7. WhatarethespecificbusinessrulesforOrganizationCodeundertheUACS?

a. Asageneral rule, code01 isassigned toa lower-leveloperatingunitclassified as Central Office. As an exception, the DOTC-Office of theSecretary(OSEC),whichhasthreecentraloffices,shallbeassignedthefollowing codes:DOTC-OSECCentralOffice01, LandTransportationOffice - Central Office 19 and Land Transportation Franchising andRegulatoryBoard-CentralOffice20.

b. Asageneral rule, code03 isassigned toa lower-leveloperatingunitclassifiedasRegionalOffice.

c. Asageneral rule, the lastfivedigitsof the lower-leveloperatingunitcodereferstotheassignedcodefortheindividualoperatingunitwithoutreference to the Region Code. An exception to the rule, however, ismadefortheDepartmentofEducation(DepEd)SecondarySchoolsandDivisionOffices,forwhichthefirsttwodigitsrefertotheregionalcodeand the last threedigits refer to theassignedcode for the individualSecondarySchoolandDivisionOffice.

d. If an agency has beenmoved fromonedepartment to another or ifanoperatingunithasbeenmoved fromoneagency toanother,newcodingnumberswillbecreatedaccordingly.Theoldcodesshallneverbe assigned to any new agency/operating unit so as to preserve thetransactionhistoryofeachagency.

e. In no case shall the old codes be used for any newly-createdorganizationalentity.

8. Will there be a new Organization Code for a renamed organizationalentity?

As a rule, if an organizational entity has been renamed by virtue of anylaw, statute, or local ordinance, without necessarily having changes inor additional functions, such organizational entity shall retain its UACSOrganizationCode,providedthatthedescriptionisupdatedtospecifythe

24 UACS Primer

newnameplusanenclosedinparentheticalnotationthewordFormerlyandtheoldnameoftheagency.Theparentheticalnotation-(formerlyOldName)-shallbekeptaspartoftheagencynameforatleast3yearsforthepurposeofbudgetcomparisonandfamiliarizationoftheagencyname.On the other hand, if the renaming of agencies includes changes in oradditionalfunctions,anewOrganizationCodeshallbecreatedandtheoldOrganizationCodedeactivated.

9. Will therebeanewOrganizationCodeforschoolstransferredfromoneDivisiontoanotherwithinthesameregion?

No.TheUACSCodeStructure forOrganizationCodedoesnot includetheDivisionCodeofschoolsbutuptotheRegionalCodeonly.

TransferringtheSchoolfromoneDivisiontoanotherwithinthesameregionwillnotaffecttheOrganizationCodeoftheschool.

ThecompletelistofschoolsunderaspecificDivisionLevelwithinaRegionisavailableattheUACSwebsiteatwww.uacs.gov.ph.

LocationCodes

1.WhatistheuseandbasisoftheLocationCodes?

The Location Code provides UACS coding for the Region, Province, City/Municipality, and Barangays in accordance with the Philippine StandardGeographicCode(PSCG)prescribedbythePSA(formerlybytheNSCB).

2.WherecanIgetthecompletelistofLocationCodes?

ThecompletelistofLocationCodescanbeobtainedbyvisitingthewebsiteoftheNSCB:http://nscb.gov.ph/activestats/psgc/default.asp or the UACS website:www.uacs.gov.ph

3. WhatarethebasicbusinessrulesforLocationcoding?

ThebasicrulesforLocationcodingare:a. Foralltransactions,theregioncodeattheveryleastwillberecorded;

and b. Forsecondaryschools,theregionandprovincecode,attheveryleast,

willberecorded.

UACS Primer25

4. IstheLegislativeDistrictincludedinthecodingstructure?

No. But a mapping of the Barangay to the specific Legislative District isprovidedintheUACSwebsite:www.uacs.gov.ph

5. HowdoweusetheLocationCodeintheUACS?

Currently,forPersonnelServices(PS)andMaintenanceandOtherOperatingExpenses(MOOE),theLocationCodetobeusedisthephysicallocationoftheOffice;andforCapitalOutlay(CO),thephysicallocationthereof.

Thisrulewillbesubjecttofurtherissuancesinthefuture.

MFO/PAPCodes 1.WhatisCOFOG?

DevelopedbytheOrganizationforEconomicCooperationandDevelopment(OECD),theClassificationoftheFunctionsofGovernment(COFOG)classifiesgovernment expenditure data from the System of National Accounts bythe purpose for which the funds are used. The first-level COFOG splitsexpenditure data into 10 functional groups or sectors of expenditures(suchasdefense,educationandsocialprotection),andsecond-levelCOFOGfurthersplitseachfirst-levelgroupuptotwelvesub-groups.

ASector/Sub-sectorClassificationisderivedfromtheCOFOG,whichistheinternationally-recognizedsectorforOutcome.

AcompletelistoftheSector/Sub-sectorOutcomesisprovidedinPartVIofthis Primer.

2. ShouldtheSectorCodebeutilizedfortransactioncaptureandreporting?

No.Thesectorcodeshouldneverbeutilized.AllMFO/PAPsarerequiredtohaveSub-sectorOutcomeCodeValue.

TheSub-sectorisautomaticallyrelatedtothesectorgroup.

3. CanwechangethewordingsoftheSub-sector?

No,thesearetheinternationally-definedsub-sectorsandthedescriptionofeachsub-sectorisfixed.

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4. WhatisaHorizontalOutcomeinMFO/PAP?

TheHorizontalOutcomeisaspecificprogramimplementedwiththeaimofachievingcommonpolicyobjectivesamonggovernmentagencies.

A complete list of Horizontal Outcomes is provided in Part VII ofthis Primer.

5. WhatarethebasicbusinessrulesforMFO,ProgramandActivity?

ThebasicrulesforMFO,ProgramandActivityare:

a. ThefirstprogramisGeneralAdministrationandSupport(GAS),whichconsists of activities involving the provision of overall administrativemanagement support to the entire agency operation. This includesgeneral management and supervision, legislative liaison services,human resource development, and financial and administrativeservices, among other related services. Funds provided for GAS aremanagementoverheadexpensesandare, therefore, indirect costsofdeliveringMFOs.

b. The second program is Support to Operations (STO), which consistsof activities that provide technical and substantive support to theoperations and projects of the department/agency. These includeplanningandpolicy formulation,programmonitoringandevaluation,public information programs, research and development, statisticalservices and information systemsdevelopment, amongother relatedfunctions.ThetypesofservicesincludedunderSTOarecommonacrossagencies,andareconsidered indirectcostsofdeliveringMFOs.Someagencies,however,donothaveaprogramforSTO.

c. ThethirdprogramisOperations,whichconsistsofactivitiesdirectedatfulfillingthedepartmentoragencymandate.

d. Anyreferencetolocation(suchasRegionorDivision)orimplementingunit(suchasschools)mustnotappearinthedescriptionsforPAPcodes,astheydonotcomplywiththedefinitionsintheOPIFReferenceGuideforMFOs,programs,activities,andprojects.CodingforRegionalOfficesor the DepEds Division Offices and Secondary Schools is managedundertheoperatingunitsegmentoforganizationcoding.

e. ForpresentationpurposesintheNEP/GAA,projectsandSPFsshallnotbeattributedtoaparticularMFO.

UACS Primer27

6. WhatisaProject?

For UACS purposes, a Project is defined as special agency undertakingswhicharetobecarriedoutwithinadefinitetimeframeandareintendedtoresultinsomepre-determinedmeasureofgoodsandservices.

7. WhatisaProjectCategory?

For UACS purposes, a Project Category is defined as a classificationor group of projects having common qualities. This is divided into 1)Physical Infrastructure which is composed of interrelated systems andfacilities providing commodities and essential services that house andtransport people and goods toenable, sustain, or enhance societal livingconditions;and2)Non-Physical Infrastructurewhichreferstotheservicesofgovernmentagenciesthatarerequiredtomaintaintheeconomic,health,andculturalandsocialstandardsofacountry,suchasthefinancialsystem,theeducationsystem,thehealthcaresystem,thesystemofgovernment,andlawenforcement,aswellasemergencyservices.

Thelistofprojectcategoriesandtheirrespectivecodesarethefollowing:

Project Category UACS CodePhysical Infrastructure Buildings and Other Structures 01 Flood Control and Drainage 02 Non-Road Transport Infrastructure 03 Power and Communication Infrastructure 04 Roads and Bridges 05 Water Management 06 Non Physical Infrastructure Projects Economic Development 07 Education 08 Environmental Protection 09 Governance 10 Health 11 Recreation, Sports and Culture 12 Research and Development 13 Social Protection 14

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AdditionalprojectcategorymaybeaddedastheneedarisesfollowingtheUACSAdministrationProcedures.

8. IstheProjectCategoryuniquetoeachagency?

No,itisnotuniquetoeachagency.Eachdepartment/agencymayutilizetheProjectCategoriesdependingonitsmandate.

9. Isthereanypossibilitythatoneprojectsub-categorymayappearinmorethanoneprojectcategory?

Yes. The Housing sub-category does appear under both Buildings andOther Structures, andSocial Protection.Housingprojects for governmentemployeesshouldbecategorizedasBuildingsandOtherStructures,whilehousing projects for displaced persons should be categorized as SocialProtection.

Thecompletelistofsub-categoriesisfoundinChapter4.4.2oftheUACSManual.

10. CanaProjectTitlebeapplicabletobothProjectsandOperations?

Yes.Iftheactivityinvolvesimplementationofprojectsbutisnotpartoftheagencysmandate,itispartofProjects.IftheprojectispartoftheagencysMFO,itisusedasthesecondlevelactivityunderOperations.

11. WilltheMFO/PAPCodebethesameorisitchangingeveryyear?

Generally, ifthereisnochangeinthedescription,whichmeansthesameactivity is being done or funded from year to year, theMFO/PAP Codestobeutilizedinsubsequentyearsmustbethesameasthepreviousyear.However,iftheactivityoraprojectisnew,anewCodeshallbecreated.

12. Ifaprojectoranactivityiscompleted,cantheCodebeutilizedforanotherprojectoractivityinthesucceedingyear?

No. Codes of projects or activities that are completed, terminated orrescindedforwhateverreasonshouldnotbeutilizedforanyotherpurpose.Inthiscase,theCodeshallbedeactivatedinthesystemtoavoidusage,butmaybereactivatedfortheoriginalpurpose,whennecessary.

13. WhatMFO/PAPCodeshallbeusedforFY2013appropriationwithvalidityextendeduptoDecember31,2014(continuingappropriation)?

ForcontinuingappropriationofFY2013,the2014MFO/PAPCodeshallbeusedifthedescriptionofaPAPisthesameordoesexistinthe2014budget

UACS Primer29

ofanagency;otherwisethereisaneedtorequestforthecreationofanewMFO/PAPfortheFY2013appropriationtobeutilizedin2014.

14. WhenwilltheProjectCodeintheUACSbedeactivated?

Insomeinstances,whereaprojectiscancelledorterminatedorforwhatevervalidreason,cannolongerbecontinued,theUACScodeforsuchprojectsshouldbedeactivated.Forspecificprojectstobedeactivated,theagenciesmustmakearequesttoDBM.

15. WhatMFO/PAPwillbeusedfortheSpecialPurposeFund?

SpecialPurposeFunds(SPFs)arelump-sumfundsincludedintheGAAwhichare not within the approved appropriations of departments/agencies/lower level operating units, andwhich are available for allocation to anydepartment/agency/lowerleveloperatingunitorlocalgovernmentunitforaspecificpurpose,asmaybedulyapprovedinaccordancewiththeSpecialProvisionsontheuseofsuchfunds.

TheMFO/PAPCode(s)tobeusedfortheSPFsshallbedeterminedbytheDBM,subjecttotheUACSAdministrationProceduresonupdatingtheUACSrepository.

ObjectCode

1.WhatisthepurposeofobjectinformationintheUACS?

The object information provides a method for classifying and codingtransactions toenable the reportingof information (including the impactof government revenues and expenditures on the economy), as wellas the nature and standard classification of transactions for internaldepartmentalanalysis,aswellasfordecision-makingpurposesofoversightagencies.

In addition, the object coding in the information system provides arepositoryofgovernment-wideinformation,whichcanbeusedbyoversightagencieswithoutrequiringdepartmentsandagenciestosubmitadditionalreports.

2. WhatisthesourceandbasisofobjectcodingintheUACS?

TheObjectCodes inUACS isbasedon theRevisedChartofAccounts forNational Government Agencies, of the Commission on Audit as adopted

30 UACS Primer

underCOACircularNo.2013-002datedJanuary30,2013,andCOACircularNo.2014-003datedApril15,2014.

3. WhatisthestandardusedasabasisofcodingintheCOARevisedChartofAccounts?

TheCOARevisedChartofAccountsisbasedonthePPSASasadoptedfromthe IPSAS.

4. What is the accounting basis for recording financial transactions in thenationalgovernment?

Thebasisforaccountingforfinancialtransactionsofthenationalgovernmentis accrualbasis,which requires transactions tobe recorded in theperiodwhentheyoccur (andnotonlywhencashor itsequivalent is receivedorpaid).Therefore,thetransactionsandeventsarerecordedintheaccountingrecordsandrecognizedinthefinancialstatementsoftheperiodstowhichthey relate.

5. UndertheUACS,howaretheallotmentclassesofexpensescategorized?

The 3rddigitoftheObjectCodedefinestheallotmentclassesofexpenses.Thesearecategorizedasfollows:

PARTICULARS UACS CODEPersonnel Services 1Maintenance and Other Operating Expenses 2Financial Expenses 3Direct Costs (manufacturing and trading) 4Non-Cash Expenses 5Capital Outlays 6

6. Which agencies are responsible for disaggregation of Object Code intoSub-objectCodes?

Accounts Agency Responsible for DisaggregationCash in Bank BTrTaxes BIRImport Duties BOCNon-Tax Revenues DOF and BTr

UACS Primer31

Personnel Services DBMMOOE DBM and COAFinancial Expenses DBM and COACapital Outlays DBM and COA

7. HowistheobjectcodingforCapitalOutlaysbeingharmonized?

Fromthetimeofbudgetappropriationuntilfundsaredisbursed,therelevantamountsofallotment,cashrelease,andobligationsshouldbeprocessedincapitaloutlayaccounts,suchasoneoftheaccountsforinfrastructurecapitaloutlays.ThefulllistappearsattheendoftheexpenditurecodelistinginAppendixC.5.6oftheUACSManual. Inaccordancewithaccrualaccountingprinciples,theexpenditureshouldberecognizedasanassetintheformofinfrastructureconstructioninprogressatthepointofdisbursement.ThisprocessisintendedtobeautomatedinGIFMISsothatthespendingisshownascapitaloutlaysinDBMmanagementreports, and as capital outlays in the cash flowstatement, but asan asset in the Statement of Financial Position/Balance Sheet and notdisclosedintheOperatingStatement/ProfitandLossStatement/IncomeandExpenseStatement. Oncetheproject iscompleted,the infrastructureconstructioninprogressaccountwouldbecleared(i.e.,credited)andaPublicInfrastructureAssetrecognized,suchthat,anassetaccount(likeRoadNetworks)isdebited.

8. HowdowebooktheRetirementandLifeInsurancePremiums(RLIP)forpersonalshareandgovernmentshare?

ForRLIP,thepersonalsharemustbeaproperchargeagainstregularPersonnelServices (PS) budget of the agencyunder Funding SourceCode01101101andObjectCode5010101001forSalariesbuttheGovernmentSharemustbechargedtotheAutomaticAppropriationonRLIP,withFundingSourceCode01104102andtheObjectCode5010301000.

IV. ACRONYMS AsusedinthisPrimer,thefollowingacronymsareherebydescribed:

BIR BureauofInternalRevenue BOC BureauofCustoms BRPS BudgetReportingandPerformanceStandards BTr BureauoftheTreasury

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CB CapacityBuilding COA CommissiononAudit COFOG ClassificationofFunctionsofGovernment DBM DepartmentofBudgetandManagement DepEd DepartmentofEducation DOF DepartmentofFinance DOTC DepartmentofTransportationandCommunications GAA GeneralAppropriationsAct GAS GeneralAdministrationandSupport GFS GovernmentFinanceStatistics GIFMIS GovernmentIntegratedFinancialManagementInformationSystem GOCC Government-OwnedorControlledCorporations GOP GovernmentofthePhilippines IPSAS InternationalPublicSectorAccountingStandards ITCMO ImprovementofTreasuryCashManagementOperations MFO MajorFinalOutput MMDA MetroManilaDevelopmentAuthority MOOE MaintenanceandOtherOperatingExpenses NEP NationalExpenditureProgram NGA NationalGovernmentAgency NSACS NationalStandardsAgencyCodingSystem NSCB NationalStatisticalCoordinationBoard OECD OrganizationforEconomicCooperationandDevelopment OEO OtherExecutiveOffices OPIF OrganizationalPerformanceIndicatorFramework OSEC OfficeoftheSecretary OU OperatingUnit PAP Program,Activity,Project PFM PublicFinancialManagement PPSAS PhilippinePublicSectorAccountingStandards PS PersonnelServices PSA PhilippineStatisticsAuthority PSASB PublicSectorAccountingStandardsBoard PSGC PhilippineStandardGeographicCode RLIP RetirementandLifeInsurancePremiums SAGF SpecialAccountintheGeneralFund SPF SpecialPurposeFund STO SupporttoOperations TSA TreasurySingleAccount UACS UnifiedAccountsCodeStructure

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V. Definition of TermsActivity. Aworkprocessthatcontributestothefulfillmentofaprogramorproject.

EachactivityshallbeattributedtoonlyoneMajorFinalOutput(MFO).Activitiesare to be assigned to General Administration and Support, or Support toOperations if theybenefit integral clients.On theotherhand,anactivity thatbenefitsexternalclientsshallbeattributedtoanMFO.

CustodialFunds.Receiptsorcashreceivedbyanygovernmentagencyfromeitheraprivatesourceoranothergovernmentagencyforthefulfillmentofaspecificpurpose.

ForeignAssistedProjects.Governmentprojectswhicharewhollyorpartlyfinancedbyforeignloansand/orforeigngrants.

GeneralFund. FundwhichisavailableforanypurposetowhichtheCongressmaychoose to apply, and is composed of all receipts or revenues which are nototherwiseaccruingtootherfunds.

Government Integrated Financial Management Information System (GIFMIS). A computerized system of the public financial management processes (budgetpreparation,executiontoaccountingandreporting),withtheintegratingelementofacommon,single,reliabledatabaseoraseriesofinterconnecteddatabasestoandfromwhichalldataareexpressedinafinancialtermsflow.GIFMISwillstore,organize,andmakeaccesstogovernmentfinancialinformationeasy,timely,andonagovernment-wideavailabilitybasis.

Locally-Funded Projects (LFPs). Projects financed out of revenue collections anddomesticborrowings.

Major FinalOutputs (MFOs). Goods and services that a department or agency ismandatedtodelivertoexternalclientsthroughtheimplementationofprograms,activitiesandprojects.

Off-BudgetaryFunds.Receiptswhichareauthorizedtobedepositedwithgovernmentfinancial institutions forexpenditure itemswhicharenotpartof theNationalExpenditureProgram.Thesearecategorizedinto:(a)RetainedIncome/Receipts;(b)RevolvingFunds;and(c)ReceiptsfromborrowingsbyBTr.

OperatingUnits.Chargedwithcarryingoutspecificsubstantivefunctionsorwhichdirectly implements PAPs of a department or agency, such as line bureaus,regionalofficesandfieldunits.

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(OperatingUnits)ClassificationCode.Classificationofanorganizationalunitwiththespecificandproperlydelineateddutiesandresponsibilitiesthatisuniqueacrossdifferentfunctional levelswithinagovernmentorganization,adepartment,oranagency.

Program. An integrated group of activities that contributes to an agency ordepartments continuing objective. Examples include General AdministrationandSupport,SupporttoOperations,andOperations.

Project. Specialagencyundertakingswhichare tobecarriedoutwithinadefinitetimeframeandwhichare intendedtoresult tosomedeterminedmeasureofgoodsandservices.

ProjectCategory.Aclassificationorgroupofprojectshavingsomequalityorqualitiesincommon.Thisisdividedinto:1)PhysicalInfrastructurewhichiscomposedofinterrelatedsystemsandfacilitiesprovidingcommoditiesandessentialservicesthathouseandtransportpeopleandgoodstoenable,sustain,orenhancesocietallivingconditions;and2)Non-PhysicalInfrastructurewhichreferstotheservicesof government agencies that are required tomaintain the economic, health,andculturalandsocialstandardsofacountry,suchasthefinancialsystem,theeducationsystem,thehealthcaresystem,thesystemofgovernment,andlawenforcement,aswellasemergencyservices.

PublicFinancialManagement(PFM).Dealswithallaspectsofresourcemobilizationandexpendituremanagementingovernment. It isaboutthewaygovernmentraisesitsincome(intheformoftaxes,customsdutiesandotherrevenues)andmanagesitsexpenditurestodeliveressentialservicestoitscitizens,i.e,education,healthcareandothersocialprograms,roadsandinfrastructure,theruleoflawandsecurity,andthoseareaswhichgenerallymakethelivesofcitizensbetteroff.

Receipts. Thesumofrevenuesandgrossborrowingsforagivenperiod.

RetainedIncome/Funds.Collectionswhichareauthorizedbylawtobeuseddirectlybyagenciesconcernedfortheiroperationsorspecificpurposes.

Revenue. RefertoprojectedcashinflowslikecollectionsfromtaxesbyBIR/BOCandothertaxagencies,andfeesandchargesimposedbythegovernmentagencies,aswellasproceedsfromgrants.

Revolving Funds. Receipts derived from business-type activities of departments/agencieswhichareauthorizedbylawtobeconstitutedassuchanddepositedinanauthorizedgovernmentdepositorybank.Thesefundsshallbeself-liquidatingand all obligations and expenditures incurred by virtue of said business-typeactivityshallbechargedagainstthesaidfund.

UACS Primer35

SpecialAccountsintheGeneralFund(SAGF). Afundwherebyproceedsofspecificrevenuemeasuresandgrantsearmarkedbylawforspecificpriorityprojectsarerecorded.

Special Purpose Funds (SPFs). Appropriations in the GAA provided to coverexpenditures for specific purposes for which recipient agencies/departmentshavenotyetbeenidentifiedduringbudgetpreparation.Theseshallbeavailablefor allocation to agencies/departments in addition to built-in appropriationsduringbudget execution, pursuant to special conditionsper SPF.Among suchSPFs are Calamity Fund, Contingent Fund, e-Government Fund, InternationalCommitmentsFund,andPensionandGratuityFund.

UnprogrammedSPFs,e.g.,BSGC,FAPs,areprovidedtocoverdeficiencies, i.e.,requirementscannotbefullyaccommodated,vis--visprovisionsintheagencyspecificbudgets,subjecttoavailabilityofexcess/unexpectedinflowofrevenues/financingsources.

TrustFund. Fundwhichaccountsforthereceiptsbyanyagencyofgovernmentorbyapublicofficeractingastrustee,agent,oradministratorforthefulfillmentofsomeobligations.

UnifiedAccountsCodeStructure(UACS). Agovernment-wideharmonizedbudgetary,treasury and accounting code classification structure jointly developed bythe DBM, COA, DOF and BTr which aims to facilitate financial reporting andconsolidation of actual revenue collection and expenditures, enable theassessment of outturns against transparency/accountability and improveefficiency in terms of utilization of government funds. TheUACSwas initiallyadoptedfortheFY2014budget.

Unprogrammed Appropriations. Appropriations which provide standby authorityto incur additional agency obligations for priority programs or projectswhenrevenue collections exceed targets, or when additional foreign funds aregenerated.

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VI. UACS MFO/PAP Element Sector Outcome Code Values ThefollowingaretheSectorValues:

Code Value Description Type100 General public services Sector120 Defense Sector140 Public order and safety Sector160 Economic affairs Sector180 Environmental protection Sector200 Housing and community amenities Sector220 Health Sector240 Recreation, culture and religion Sector260 Education Sector280 Social protection Sector

ThefollowingaretheSub-SectorValues:

Code Value Description Type100 General public services Sector

101 Executive and legislative organs, financial and fiscal affairs, external affairs

Sub-Sector

102 Foreign economic aid Sub-Sector103 General services Sub-Sector104 Basic research Sub-Sector105 R&D General public services Sub-Sector106 General public services n.e.c. Sub-Sector107 Public debt transactions Sub-Sector108 Transfers of a general character between different

levels of governmentSub-Sector

109 Governance / Government Institutions and Regulatory Regime

Sub-Sector

110 - 119 Not yet assigned Sub-Sector

120 Defense Sector121 Military Defense Sub-Sector122 Civil Defense Sub-Sector123 Foreign military aid Sub-Sector

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Code Value Description Type124 R&D Defense Sub-Sector125 Territorial integrity Sub-Sector126 Defense against cybercrimes Sub-Sector127 Defense n.e.c. Sub-Sector128-139 Not yet assigned Sub-Sector

140 Public order and safety Sector141 Police services Sub-Sector142 Fire-protection services Sub-Sector143 Law courts Sub-Sector144 Prisons Sub-Sector145 R&D Public order and safety Sub-Sector146 Public order and safety n.e.c. Sub-Sector147-159 Not yet assigned Sub-Sector

160 Economic affairs Sector

161 General economic, commercial and labor affairs Sub-Sector162 Agriculture, forestry, fishing and hunting Sub-Sector163 Fuel and energy Sub-Sector164 Mining, manufacturing and construction Sub-Sector165 Transport Sub-Sector166 Communication Sub-Sector167 Other industries Sub-Sector168 R&D Economic affairs Sub-Sector169 Economic affairs n.e.c. Sub-Sector170-179 Not yet assigned Sub-Sector

180 Environmental protection Sector181 Waste management Sub-Sector182 Waste water management Sub-Sector183 Pollution abatement Sub-Sector184 Protection of biodiversity and landscape Sub-Sector185 R&D Environmental protection Sub-Sector186 Environmental protection n.e.c. Sub-Sector187-199 Not yet assigned Sub-Sector

38 UACS Primer

Code Value Description Type200 Housing and community amenities Sector

201 Housing development Sub-Sector202 Community development Sub-Sector203 Water supply Sub-Sector204 Street lighting Sub-Sector205 R&D Housing and community amenities Sub-Sector206 Housing and community amenities n.e.c. Sub-Sector207-219 Not yet assigned Sub-Sector

220 Health Sector221 Medical products, appliances and equipment Sub-Sector222 Outpatient services Sub-Sector223 Hospital services Sub-Sector224 Public health services Sub-Sector225 R&D Health Sub-Sector226 Health insurance Sub-Sector227 Health n.e.c. Sub-Sector228-239 Not yet assigned Sub-Sector

240 Recreation, culture and religion Sector241 Recreational and sporting services Sub-Sector242 Cultural services Sub-Sector243 Broadcasting and publishing services Sub-Sector244 Religious and other community services Sub-Sector245 R&D Recreation, culture and religion Sub-Sector246 Recreation, culture and religion n.e.c. Sub-Sector247-259 Not yet assigned Sub-Sector

260 Education Sector261 Pre-primary and primary education Sub-Sector262 Secondary education Sub-Sector263 Post-secondary non-tertiary education Sub-Sector264 Tertiary education Sub-Sector265 Education not definable by level Sub-Sector

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Code Value Description Type266 Subsidiary services to education Sub-Sector267 R&D Education Sub-Sector268 School Buildings Sub-Sector269 Education n.e.c. Sub-Sector270-279 Not yet assigned Sub-Sector

280 Social protection Sector281 Sickness and disability (Persons with Disabilities) Sub-Sector282 Old age (Senior Citizens) Sub-Sector283 Survivors (Gender and Development, Internally

Displaced Persons and Disaster Relief Assistance)Sub-Sector

284 Family and children (Street Families) Sub-Sector285 Unemployment (Labor Standards, Minimum Wages,

Emergency Employment, etc.)Sub-Sector

286 Housing Sub-Sector287 Pantawid Pamilya Program or the Conditional Cash

Transfer (CCT)Sub-Sector

288 Social exclusion n.e.c Sub-Sector289 R&D Social protection Sub-Sector290 Local membership to insurance (SSS, PhilHealth,

GSIS, OFW, IDPs, etc.)Sub-Sector

291 Conflict-affected areas Sub-Sector292 Social protection n.e.c. Sub-Sector

Note:n.e.c.NotElsewhereClassified

VII. UACS MFO/PAP Element Horizontal Outcome Code Values ThefollowingaretheHorizontalOutcomeCodeValues:

Code Value Description01 Disaster Related02 Climate Change Mitigation03 Climate Change Adaptation