updates on accounting and auditing rules and regulations lourdes m. castillo assistant commissioner...
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Updates on Accounting and Auditing Rules and
RegulationsLourdes M. CastilloAssistant Commissioner
Government Accountancy SectorCommission on Audit
GOVERNMENT ASSOCIATION OF CPAs (GACPA)
SUSTAINING ETHICS AND EXCELLENCEIN MANAGING GOVERNMENT RESOURCES
SEMINAR/WORKSHOP
Delivered during the GACPA Seminar atPrince Plaza Hotel, Baguio City
February 6-8, 2013
1.1. COA Circular No. 2012-COA Circular No. 2012-001 dated 001 dated June 14, 2012June 14, 2012
“Prescribing the Revised Documentary Requirements for Common Government Transactions”
2.2. COA Circular No. 2012-COA Circular No. 2012-004, 004, dated November 28, dated November 28, 20122012
“Demand for the Immediate Liquidation and Settlement of All Cash Advances Outstanding as of December 31, 2011”
3.3. COA Circular No. 2013-COA Circular No. 2013-002, 002, dated January 30, 2013dated January 30, 2013
“Adoption of the Revised Chart of Accounts for National Government Agencies”
4.4. COA Resolution No. COA Resolution No. 2013-007, 2013-007, dated January 29, 2013 dated January 29, 2013
“Adoption of the Philippine Public Sector Standards of Auditing”
5.5.Permanent Committee (COA-Permanent Committee (COA-DBM-DOF) Joint Circular No. 4-DBM-DOF) Joint Circular No. 4-2012, dated Sept. 11, 2012, dated Sept. 11, 20122012
“Rules and Regulations Implementing Executive Order No. 431 dated August 30, 2005, Directing the Reversion of All Dormant Accounts, Unnecessary Special Trust Funds to the General Fund and For Other Purposes”
6.6. National Budget Circular No. National Budget Circular No. 546, dated January 17, 546, dated January 17, 20132013
“Rules and Regulations on the Grant of Representation and Transportation Allowances”
Prescribing the Revised Documentary Requirements for Common Government Transactions
COA Circular No. 2012-COA Circular No. 2012-001, 001, dated June 14, 2012dated June 14, 2012
Fundamental Principles – PD 1445Fundamental Principles – PD 1445 General Requirements for all Types General Requirements for all Types
of Disbursementsof Disbursements Specific Requirements for Each Specific Requirements for Each
Type of DisbursementType of Disbursement– Cash AdvancesCash Advances– Fund Transfers to NGOs/PosFund Transfers to NGOs/Pos– Fund Transfers to Implementing Fund Transfers to Implementing
Agencies/From Trust Fund to Gen Fund Agencies/From Trust Fund to Gen Fund for Unspent Balancefor Unspent Balance
– SalarySalary
OUTLINE
OUTLINE
– Allowances, Honoraria and Other Forms Allowances, Honoraria and Other Forms of Compensationsof Compensations
– Other ExpendituresOther Expenditures– Extraordinary and Miscellaneous Extraordinary and Miscellaneous
ExpensesExpenses– Prisoner’s Subsistence AllowancePrisoner’s Subsistence Allowance– ProcurementProcurement– Cultural and Athletic ActivitiesCultural and Athletic Activities– Human Resource Development and Human Resource Development and
Training ProgramTraining Program– Financial ExpensesFinancial Expenses– Road Right-of-Way (ROW)/Real PropertyRoad Right-of-Way (ROW)/Real Property
Fundamental Principles, Fundamental Principles, Sec. 4, P.D. 1445 Sec. 4, P.D. 1445 No money shall be paid except in pursuance of an No money shall be paid except in pursuance of an
appropriation law or other specific statutory appropriation law or other specific statutory authorityauthority
Use solely for public purposeUse solely for public purpose Trust funds only for the specific intended purposeTrust funds only for the specific intended purpose Fiscal responsibility shared by all those exercising Fiscal responsibility shared by all those exercising
authority over finance, transactions and operationsauthority over finance, transactions and operations Disbursements or dispositions should bear Disbursements or dispositions should bear
approval of proper officialsapproval of proper officials Claims should be supported with complete Claims should be supported with complete
documentationdocumentation Faithful adherence to all pertinent laws and Faithful adherence to all pertinent laws and
regulationsregulations Observance of GAAP and practices as well as sound Observance of GAAP and practices as well as sound
management and fiscal administration, provided management and fiscal administration, provided they do not contravene with existing laws and they do not contravene with existing laws and regulationsregulations
General Requirements for All General Requirements for All Types of DisbursementsTypes of Disbursements Certification of Availability of Fund Certification of Availability of Fund
by Chief Accountantby Chief Accountant Lawful and sufficient allotment duly Lawful and sufficient allotment duly
obligated as certified, except for obligated as certified, except for GOCCs and GFIsGOCCs and GFIs
Legality of transaction and Legality of transaction and conformity with laws, rules and conformity with laws, rules and regulationsregulations
Approval of expenditure by Head of Approval of expenditure by Head of Office or authorized representativeOffice or authorized representative
Sufficient and relevant documents Sufficient and relevant documents to establish validity of claimto establish validity of claim
1.0 Cash Advances1.0 Cash Advances
General Guidelines –COA Circs. 97-002, 2009-General Guidelines –COA Circs. 97-002, 2009-002, Sec. 89 of PD 1445, pertinent GAA 002, Sec. 89 of PD 1445, pertinent GAA provisionsprovisions
Specific Guidelines and Documents RequiredSpecific Guidelines and Documents Required Types of Cash Advances (Payroll Fund, PCF, Types of Cash Advances (Payroll Fund, PCF,
Field/Activity COE, TA (local and foreign)Field/Activity COE, TA (local and foreign) Granting of Cash AdvanceGranting of Cash Advance
– General GuidelinesGeneral Guidelines– Documents Required Common to All CAs Documents Required Common to All CAs
except for travelexcept for travel– Additional Documents per type of Cash Additional Documents per type of Cash
AdvanceAdvance Liquidation of Cash AdvancesLiquidation of Cash Advances
2.0 Fund Transfers to 2.0 Fund Transfers to NGOs/POsNGOs/POs
General Guidelines – pertinent provision General Guidelines – pertinent provision of the GAA for the year, Sec. 4.5.6 COA of the GAA for the year, Sec. 4.5.6 COA Circular 2007-001 and GPPB Res. 12-Circular 2007-001 and GPPB Res. 12-20072007
Specific Guidelines and Documentary Specific Guidelines and Documentary Requirements Requirements – Release of FundsRelease of Funds– Implementation and Liquidation of Implementation and Liquidation of
Funds ReleasedFunds Released– Staggered Release of Funds to Staggered Release of Funds to
NGO/PONGO/PO
3.0 Fund Transfers3.0 Fund Transfers General Guidelines – COA Cirular 94-013, General Guidelines – COA Cirular 94-013,
COA Memo 2010-014COA Memo 2010-014 Specific Guidelines and Documents Specific Guidelines and Documents
RequiredRequired– Transfer to Implementing AgenciesTransfer to Implementing Agencies
TransferTransfer Implementation and Liquidation by Implementation and Liquidation by
Implementing AgencyImplementing Agency Liquidation by Source AgencyLiquidation by Source Agency
– From Trust Fund to General Fund for From Trust Fund to General Fund for Unspent/Excess AmountUnspent/Excess Amount
4.0 Salary4.0 Salary General Guidelines- 35 FY2012 GAA or pertinent General Guidelines- 35 FY2012 GAA or pertinent
provision of the GAA for the year, RA 6758 as amended provision of the GAA for the year, RA 6758 as amended (Pres. Veto message, 020810,p. 1236, RA 9970) (Pres. Veto message, 020810,p. 1236, RA 9970)
Specific Guidelines and Documents Required -Sec.325, Specific Guidelines and Documents Required -Sec.325, RA 7160 LGU Code, EO 292, CSC MC 14 s. 1999, CSC RA 7160 LGU Code, EO 292, CSC MC 14 s. 1999, CSC Res. 02-1490, COA Cir 2000-006, DBM Local Budget Res. 02-1490, COA Cir 2000-006, DBM Local Budget Circular 2009-91, DBM National Compensation Circular Circular 2009-91, DBM National Compensation Circular 67, s. 1992, CSC Circular 06, s.2005, etc.67, s. 1992, CSC Circular 06, s.2005, etc.– Individual ClaimsIndividual Claims
First SalaryFirst Salary Salary (if deleted from the payroll)Salary (if deleted from the payroll) Salary of Casual/Contractual PersonnelSalary of Casual/Contractual Personnel Salary Differential due to Promotion and/or Step Salary Differential due to Promotion and/or Step
IncrementIncrement Last SalaryLast Salary Salary due to heirs of deceased employeeSalary due to heirs of deceased employee Maternity LeaveMaternity Leave
– General Claims through the ATMGeneral Claims through the ATM
5.0 Allowances, Honoraria and 5.0 Allowances, Honoraria and other Forms of other Forms of CompensationCompensation General GuidelinesGeneral Guidelines
Specific Guidelines and Documents RequiredSpecific Guidelines and Documents Required– Personnel Economic Relief AllowancePersonnel Economic Relief Allowance– Representation and Transportation Allowance (for Representation and Transportation Allowance (for
individual and general claims)individual and general claims)– Clothing/Uniform Allowance (Individual and General claimsClothing/Uniform Allowance (Individual and General claims– Subsistence, Laundry and Quarters AllowancesSubsistence, Laundry and Quarters Allowances– Productivity Incentive Allowance (individual and general Productivity Incentive Allowance (individual and general
claims)claims)– Special Counsel AllowanceSpecial Counsel Allowance– HonorariaHonoraria
• Personnel Involved in Government ProcurementPersonnel Involved in Government Procurement• Teaching Personnel (DepED, TESDA, SUCs and other Teaching Personnel (DepED, TESDA, SUCs and other
educational institutions)educational institutions)• Governing Boards of Collegial BodiesGoverning Boards of Collegial Bodies• Lecturer/CoordinatorLecturer/Coordinator• Special ProjectsSpecial Projects• Science and Technological ActivitiesScience and Technological Activities
6.6. Other ExpendituresOther Expenditures
General Guidelines – Sec. 57, 2012 GAA General Guidelines – Sec. 57, 2012 GAA or pertinent provision of the GAA for or pertinent provision of the GAA for the year, Sec 43, Chapter 5 and 80, the year, Sec 43, Chapter 5 and 80, Chapter7, Book V1 EO 292, Sec 58, Chapter7, Book V1 EO 292, Sec 58, 2012 GAA, etc.2012 GAA, etc.
Specific Guidelines and Documents Specific Guidelines and Documents RequiredRequired
– Utility ExpenseUtility Expense– Telephone/Communication ServicesTelephone/Communication Services
7.7. Extraordinary and Extraordinary and Miscellaneous ExpensesMiscellaneous Expenses
General Guidelines – Sec. 57, 2012 GAA General Guidelines – Sec. 57, 2012 GAA or pertinent provision of the GAA for the or pertinent provision of the GAA for the year, Sec 43, Chapter 5 and 80, year, Sec 43, Chapter 5 and 80, Chapter7, Book V1 EO 292, Sec 58, Chapter7, Book V1 EO 292, Sec 58, 2012 GAA, etc.2012 GAA, etc.
Specific Guidelines and Documents Specific Guidelines and Documents RequiredRequired
– Utility ExpenseUtility Expense– Telephone/Communication ServicesTelephone/Communication Services
8.8. Prisoner’s Subsistence Prisoner’s Subsistence AllowanceAllowance
General Guidelines –Item 1 and 2, General Guidelines –Item 1 and 2, Special Provision for BJMP and Bu Cor, Special Provision for BJMP and Bu Cor, 2012 GAA or pertinent provisions for 2012 GAA or pertinent provisions for the yearthe year
Specific Guidelines and Documents Specific Guidelines and Documents RequiredRequired– By administration thru cash By administration thru cash
advanceadvance– By catering contractBy catering contract
9.9. ProcurementProcurement General Guidelines ( RA 9184, Sec 85 2012 GAA or pertinent provisions General Guidelines ( RA 9184, Sec 85 2012 GAA or pertinent provisions
of GAA for the year), Sec 85 2012 GAA or pertinent GAA provision for of GAA for the year), Sec 85 2012 GAA or pertinent GAA provision for the year, Sec. 7 IRR of RA 9184, Sec 7, RA 9184, Rule XVI Revised IRR the year, Sec. 7 IRR of RA 9184, Sec 7, RA 9184, Rule XVI Revised IRR RA 1984, Sec. 13.1, RA 1984; RA 1984, Sec. 13.1, RA 1984;
Specific Guidelin, es and Documents RequiredSpecific Guidelin, es and Documents Required Procurement thru Public Bidding – GAA for the year, Sec. 2-7, 9-10 and 12 of Procurement thru Public Bidding – GAA for the year, Sec. 2-7, 9-10 and 12 of
EO 182 s. 1997 and Sec. 87 of GAA 2012, COA Circular 2009-001, 2005-0087EO 182 s. 1997 and Sec. 87 of GAA 2012, COA Circular 2009-001, 2005-0087 InfrastructureInfrastructure
Advance PaymentAdvance Payment Variation Order/Change Order/Extra Work OrderVariation Order/Change Order/Extra Work Order Progress PaymentProgress Payment Final PaymentFinal Payment Release of Retention MoneyRelease of Retention Money
Consulting Services – Annex E Revised IRR RA 9184, Annex D. COA Memo 2005-027Consulting Services – Annex E Revised IRR RA 9184, Annex D. COA Memo 2005-027 Goods- RA 9184, Sec 5r Revised IRR, 2012 GAA Provisions, Sec. 20Goods- RA 9184, Sec 5r Revised IRR, 2012 GAA Provisions, Sec. 20
Supplies, Materials, Equipment and Motor VehiclesSupplies, Materials, Equipment and Motor Vehicles General Support Services (janitorial, security, maintenance, garbage collection and General Support Services (janitorial, security, maintenance, garbage collection and
disposal and similar services)disposal and similar services) Rental ContractsRental Contracts Repair and Maintenance of Aircraft, Equipment and Motor VehiclesRepair and Maintenance of Aircraft, Equipment and Motor Vehicles Advertising ExpensesAdvertising Expenses
Procurement thru Alternative Modes – COA Cir. 2009-001, RA 9184 pertinent Procurement thru Alternative Modes – COA Cir. 2009-001, RA 9184 pertinent provisionsprovisions
Requirements Common to all alternative modesRequirements Common to all alternative modes Specific requirementsSpecific requirements
Limited Source BiddingLimited Source Bidding Direct ContractingDirect Contracting Repeat OrderRepeat Order ShoppingShopping Negotiated ProcurementNegotiated Procurement
Procurement thru Automatic Debit Arrangement or direct paymentProcurement thru Automatic Debit Arrangement or direct payment
10.10.Cultural and Athletic Cultural and Athletic ActivitiesActivities
General Guidelines – Sec 25 of GAA General Guidelines – Sec 25 of GAA 2012 or pertinent provision of GAA 2012 or pertinent provision of GAA for the yearfor the year
Documents RequiredDocuments Required Budget estimates approved by the Budget estimates approved by the
Head of AgencyHead of Agency Same requirements under Same requirements under
procurement depending on the nature procurement depending on the nature of expense and the mode of of expense and the mode of procurement adoptedprocurement adopted
11.11.Human Resource Human Resource Development and Training Development and Training ProgramProgram
General Guidelines – CSC Guidelines Sec. General Guidelines – CSC Guidelines Sec. 27 2012 GAA and pertinent provisions of 27 2012 GAA and pertinent provisions of the GAA for the yearthe GAA for the year
Documents RequiredDocuments Required Budget estimates approved by the Head of Budget estimates approved by the Head of
AgencyAgency Schedule of the training approved by the Schedule of the training approved by the
Head of the AgencyHead of the Agency Same requirements under procurement Same requirements under procurement
depending on the nature of expense and depending on the nature of expense and the mode of procurement adoptedthe mode of procurement adopted
12.12.Financial ExpensesFinancial Expenses General Guideline – appropriate provision General Guideline – appropriate provision
of the New Government Accounting System of the New Government Accounting System and other pertinent laws, rules and and other pertinent laws, rules and regulationsregulations
Documents RequiredDocuments Required Loan Agreements/Memoranda of Agreement Loan Agreements/Memoranda of Agreement
together with supporting documentstogether with supporting documents Statement of AccountsStatement of Accounts Bank Debit MemosBank Debit Memos Others necessary depending on the nature of Others necessary depending on the nature of
the transactionsthe transactions
13.13. Road Right-of-Way/Road Right-of-Way/Real PropertyReal Property
General Guidelines – RA 8974 and its IRRGeneral Guidelines – RA 8974 and its IRR Documents RequiredDocuments Required
– Land – Sec.8 RA 8974 on Environment Land – Sec.8 RA 8974 on Environment Clearance CertificateClearance Certificate Negotiated PurchaseNegotiated Purchase
– If Registered landIf Registered land– If Unregistered land –EO 1035 on If Unregistered land –EO 1035 on
Claimant’s Surety/Indemnity BondClaimant’s Surety/Indemnity Bond– For Payment by Court DecisionFor Payment by Court Decision
– Structure/HouseStructure/House– Improvements (trees, plants, growing Improvements (trees, plants, growing
fruits, etc.) – DENR rules and regulationsfruits, etc.) – DENR rules and regulations
COA Circular No. 2012-COA Circular No. 2012-004, 004, dated November 28, dated November 28, 20122012
“Demand for the Immediate Liquidation and Settlement of All Cash Advances Outstanding as of December 31, 2011”
All Heads of National Government Departments, Bureaus and Agencies;
Provincial Governors, City/Municipal Mayors;
Managing Heads of Government-owned and/or Controlled Corporations;
All Treasurers, Finance Officers, Regular and Special Disbursing Officers, and Other Accountable Officials of the aforesaid Government Agencies;
COA Directors, Regional Directors, and Heads of Auditing Units, and All Others Concerned
Addressed to the following:
Rationale• As a general rule, cash advances must be
liquidated within the prescribed periods depending on the nature and purpose of the cash advance:– Salaries and wages– Petty and field operating expenses– Local travel and foreign travel– Honoraria and similar payments to officials and employees– Expenses for special projects/activities such as
anniversary celebration– Cultural and athletic activities
• The above cash advances must be liquidated within twenty (20) days from the accomplishment of the purpose.
Settlement and Liquidation of Cash Advance
A cash advance is settled and liquidated either by:1. Returning the money advanced if
unspent,2. Or by the presentation of regularly accomplished vouchers, giving satisfactorily detail of the items thereon paid which must be in accordance with the purpose for which the cash advance was granted, and further supported by proper receipts and other evidence of payment, subject to the result of the post-audit thereof by the auditor concerned.
Primary responsibility of Heads of Agencies
Section 2 of Presidential Decree (P.D.) No. 1445, the Government Accounting Code of the Philippines, places the responsibility to faithfully take care that government funds and property be safeguarded from wastage directly with and primarily on the chief or head of the government agency concerned
Legal presumption against non-liquidation of cash advance
Article 217 of the Revised Penal Code states in unequivocal terms that:
“The failure of a public officer to have duly forthcoming any public funds or property with which he is chargeable, upon demand by any duly authorized officer, shall be prima facie evidence that he has put such missing funds or property to personal use.”
Final demand to settle unliquidated cash advance
Final notice and demand is hereby made to all concerned to settle and liquidate all outstanding cash advances as of December 31, 2011, on or before January 31, 2013. Provided, however, that those who have been issued by the Commission on Audit notice and demand, prior to the issuance of this Circular, to settle and liquidate their cash advances within a specified period, shall do so within the period specified in the said notice.
An accountable officer refers to:
A public officer or employee who, in the discharge of his office, receives money from the government which he is bound to later account for. Transfer, separation or retirement from the government does not operate to discharge the said person from coverage of the definition and corresponding duty to account for the unliquidated advances.
This Circular shall serve as the demand required under appropriate law, rules and regulations to settle the accountable officer’s unliquidated cash advance as well as all those who are already separated from the service or have transferred to other agency.
Duties of Agency officials:a. On or before December 15, 2012, all heads
of government agencies shall disseminate in writing this Circular to all Accountable officials and employees within their respective agencies and serve a written notice to and demand settlement of the outstanding cash advances as of December 31, 2011.
b. The Chief Accountant shall, within the same period, furnish the head of agency and the head of the auditing unit thereat a list of accountable officers with unliquidated and outstanding cash advances.
Duties of the Commission on Audit:• Ensure that the outstanding cash advances are liquidated within the specified periods
• Shall Evaluate the cash advances of Accountable Officers to determine compliance with pertinent COA Rules and Regulations and to report violations thereof• Shall report on or before February 28, 2013 to the agency head and to the Director, FAIO, compliance with this Circular including the ageing of the cash advances showing the purpose and other information
• Submit to the respective COA Directors the vouchers and all supporting documents relative to the grant of the cash advance, copy furnished the COA Chairperson
Consequences of failure to liquidate• Failure of an accountable officer to liquidate
his outstanding cash advance on or before January 31, 2013 shall constitute cause for the filing of malversation charge under Article 217, failure to liquidate cash advance under Article 218, both of the Revised Penal Code or criminal prosecution under Section 128 of P.D. 1445.
• The suspension of salaries of the accountable officers shall be ordered by the auditor concerned to the propers agency official through the head of the Agency.
• Appropriate administrative proceedings shall likewise be instituted.
COA Revised Chart of COA Revised Chart of Accounts for National Accounts for National AgenciesAgencies
Legal Basis:
COA Circular No. 2013-002 Dated January 30, 2013
January 01, 2014
Effectivity:
Objectives: To provide new accounts for the adoption of To provide new accounts for the adoption of
the Philippine Public Sector Accounting the Philippine Public Sector Accounting Standards (harmonized with IPSAS)Standards (harmonized with IPSAS)
To provide uniform accounts for national To provide uniform accounts for national government accounting and budget systems government accounting and budget systems to facilitate the preparation of harmonized to facilitate the preparation of harmonized financial and budgetary accountability financial and budgetary accountability reportsreports
To expand the account code from three (3) To expand the account code from three (3) digits in the NGAS Chart of Accounts to eight digits in the NGAS Chart of Accounts to eight (8) digits, to allow expansion or creation of (8) digits, to allow expansion or creation of new accounts as may be necessary to new accounts as may be necessary to implement new standards or policies. implement new standards or policies.
The COA Revised Chart of Accounts is The COA Revised Chart of Accounts is integrated in the Unified Account Code integrated in the Unified Account Code Structure (UACS) under the Philippine Public Structure (UACS) under the Philippine Public Financial Management (PFM) Reform Financial Management (PFM) Reform Program jointly undertaken by DBM, DOF Program jointly undertaken by DBM, DOF and COA. and COA.
Major Changes
a.a. Coverage is limited only to Coverage is limited only to all national government all national government agenciesagencies
b.b. Expanded account code Expanded account code structure - from three (3) structure - from three (3) digits to eight (8) digitsdigits to eight (8) digits
Account Code Structure
Account Groups:Codes are assigned to account groups to facilitate Codes are assigned to account groups to facilitate location of accounts in the general and subsidiary location of accounts in the general and subsidiary ledgers, to provide systematic arrangement and ledgers, to provide systematic arrangement and classification of accounts and facilitate preparation of classification of accounts and facilitate preparation of the consolidated financial reports as follows:the consolidated financial reports as follows:
CodeCode Account GroupsAccount Groups 11 Assets Assets 22 Liabilities Liabilities 33 Equity Equity 44 Income Income 55 Expenses Expenses
Asset Without Contra Account
Ex. Cash, Collecting Officer
Asset Without Contra Account
Ex. Accounts Receivable
Major Changes
c.c. New Accounts were New Accounts were provided for the provided for the implementation of the implementation of the Philippine Public Sector Philippine Public Sector Accounting StandardsAccounting Standards
New AccountsExampleExample
1 02 01 010 Financial Assets Held for Trading in compliance with IPSAS 28-301 02 02 011 Allowance for Impairment -
Investments in Treasury Bills - Local
in compliance with IPSAS 29 (Financial Instruments - Recognition and Measurement)
1 03 02 020 Finance Lease Receivable in compliance with IPSAS 13 (Leases)1 03 02 021 Allowance for Impairment -
Finance Lease Receivablesin compliance with IPSAS 13 (Leases)
1 05 01 020 Investment Property, Buildings in compliance with IPSAS 16 (Investment Property)1 05 01 021 Accumulated Depreciation -
Investment Property, Buildingsin compliance with IPSAS 16 (Investment Property)
1 05 01 022 Accumulated Impairment Losses - Investment Property, Buildings
in compliance with IPSAS 26 (Impairment of Cash Generating Assets)
Major Changes
d.d. Some accounts were deleted Some accounts were deleted since these accounts are for use since these accounts are for use by local government units or by local government units or government-owned and/or government-owned and/or controlled corporations while controlled corporations while other accounts are no longer other accounts are no longer applicable to national applicable to national government agencies.government agencies.
Deleted Accounts
ExampleExample
Major Changes
e.e. Some accounts were either Some accounts were either expanded or compressed. For expanded or compressed. For instance, expense accounts for instance, expense accounts for repairs and maintenance and repairs and maintenance and depreciation of property, plant depreciation of property, plant and equipment which were and equipment which were previously presented per asset previously presented per asset account were compressed based account were compressed based on the major account on the major account classification.classification.
Compressed AccountsExampleExample
Repairs and Maintenance
811 Repairs and Maintenance - Office Buildings
5 02 13 040 Repairs and Maintenance - Buildings and Other Structures
812 Repairs and Maintenance - School buildings
813 Repairs and Maintenance - Hospitals and Health Centers
814 Repairs and Maintenance - Markets and Slaughterhouses
815 Repairs and Maintenance - Other Structures
Depreciation
911 Depreciation - Office Buildings 5 05 01 040 Depreciation - Buildings and Other
912 Depreciation - School Buildings Structures913 Depreciation - Hospitals and Health
Centers914 Depreciation - Markets and
Slaughterhouses915 Depreciation - Other Structures
Expanded Account
716 Subsistence, Laundry and Quarters 5 01 02 050 Subsistence Allowances
Allowances 5 01 02 060 Laundry Allowances
5 01 02 070 Quarters Allowances
ExampleExample
•UNIFIED ACCOUNTS CODE STRUCTURE (UACS)
FUNDING SOURCE6 Digits
ORGANIZATION12 digits
LOCATION9 digits
MFO/ PROGRAM, ACTIVITY and PROJECT9 digits
OBJECT CODE10 digits
Financing Source1 digit
Authorization2 digits
Fund Category3 digits
Department2 digits
Agency3 digits
Operating Unit 7 digits
Region 2 digits
Province2 digits
City, Municipality2 digits
Barangay3 digits
MFO/PAP Code9 digits
COA CoA* Object 8 digits
Sub-Object 2 digits
Required Required Required Required Required
Optional Optional Unique for each Department/Agency
Uniform across Government
* Chart of Accounts
DRAFT
The Unified Account Code Structure (UACS) Jointly developed by DBM, DOF and COAJointly developed by DBM, DOF and COA
It is a government-wide coding framework to It is a government-wide coding framework to provide a harmonized budgetary and provide a harmonized budgetary and accounting code classification that will facilitate accounting code classification that will facilitate reporting of actual revenues and collections and reporting of actual revenues and collections and expenditures compared with programmed expenditures compared with programmed revenues and expenditures, starting fiscal year revenues and expenditures, starting fiscal year 2014 2014
The UACS is to be adopted in identifying, aggregating, The UACS is to be adopted in identifying, aggregating, budgeting, accounting, auditing and reporting the budgeting, accounting, auditing and reporting the financial transactions of the government.financial transactions of the government.
Enhance the quality and timeliness of financial data for Enhance the quality and timeliness of financial data for the generation of the required reports and analysis of the generation of the required reports and analysis of the same.the same.
Strengthen financial controls and accountability. Strengthen financial controls and accountability.
Key Elements of the UACS
Funding Source Codes: Six (6) digit code to Funding Source Codes: Six (6) digit code to reflect the Financing Source, Authorization and reflect the Financing Source, Authorization and Funding CategoryFunding Category
Organization Codes: Twelve (12) digit code to Organization Codes: Twelve (12) digit code to reflect the Department, Agency and Sub-reflect the Department, Agency and Sub-Agency or Operating Unit/Revenue Collecting Agency or Operating Unit/Revenue Collecting UnitUnit
Location Codes: Nine (9) digit code to reflect the Location Codes: Nine (9) digit code to reflect the Region/Province/Municipality/Barangay following the Philippine Region/Province/Municipality/Barangay following the Philippine Standard Geographic Code prescribed by the National Statistical Standard Geographic Code prescribed by the National Statistical Coordination Board Coordination Board
Major Final Output (MFO)/Program, Activity and Project (PAP) Major Final Output (MFO)/Program, Activity and Project (PAP) codes: Nine (9) digit code to reflect the MFO/PAP codescodes: Nine (9) digit code to reflect the MFO/PAP codes
Object codes: Assets, Liabilities, Equity, Revenues, and Expenses Object codes: Assets, Liabilities, Equity, Revenues, and Expenses following the COA Chart of Accounts by object and sub-objects following the COA Chart of Accounts by object and sub-objects provided by BTr, BIR, DOF, BOC and DBMprovided by BTr, BIR, DOF, BOC and DBM
Executive Order No. 55 dated September 6, 2011
(Subject of COA Memorandum 2011-020 dated September 6,
2011)
GOVERNMENT ASSOCIATION OF CPAs (GACPA)
SUSTAINING ETHICS AND EXCELLENCEIN MANAGING GOVERNMENT RESOURCES
SEMINAR/WORKSHOP
Directing the Integration and Automation of Government Financial Management System
RationaleRationale
It is the policy of the State to adopt It is the policy of the State to adopt and implement full public disclosure of and implement full public disclosure of all its transactions involving public all its transactions involving public interest and recognize the right of the interest and recognize the right of the people to information on matter of people to information on matter of public concern as embodied under public concern as embodied under Section 28, Article II and Section 7, Section 28, Article II and Section 7, Article III of the 1987 ConstitutionArticle III of the 1987 Constitution
“The present administration subscribes to emerging global thrust towards open government and greater budget transparency and accords the highest priority to public sector initiatives that promote transparency, accountability and good governance as contained in the President’s Social Contract with the Filipino people.”
Objectives of Government Integrated Objectives of Government Integrated Financial Information System Financial Information System (GIFMIS)(GIFMIS)1.1. To facilitate the generation of vital To facilitate the generation of vital
information on any and all aspects of information on any and all aspects of government financial transactions that government financial transactions that can be made accessible to the public can be made accessible to the public through I.T., subject to existing laws, through I.T., subject to existing laws,
2.2. Greater participation of civil society Greater participation of civil society organization in fiscal governance,organization in fiscal governance,
3.3. Effective and efficient delivery of public Effective and efficient delivery of public services.services.
4.4. Allow greater financial management and Allow greater financial management and control at oversight and agency levels,control at oversight and agency levels,
5.5. Ensure stricter compliance of the budget Ensure stricter compliance of the budget to appropriation laws and corresponding to appropriation laws and corresponding rules and regulations,rules and regulations,
6.6. Significantly improve Treasury cash Significantly improve Treasury cash management, andmanagement, and
7.7. Facilitate keeping of general accounts of Facilitate keeping of general accounts of government and management reporting government and management reporting at various levels of governmentat various levels of government
The following agencies of the The following agencies of the government signed a Memorandum of government signed a Memorandum of Agreement (MOA):Agreement (MOA): Commission on Audit (COA), Commission on Audit (COA),
Department of Budget and Management (DBM),Department of Budget and Management (DBM),
Bureau of Treasury (BTr)/Department of Bureau of Treasury (BTr)/Department of Finance (DOF) which created the Steering Finance (DOF) which created the Steering Committee on Cooperation to Foster the Committee on Cooperation to Foster the Development of a GIFMIs and implement a Development of a GIFMIs and implement a Public Financial Management (PFM)Public Financial Management (PFM) Reforms Reforms Roadmap and operationalize a Roadmap and operationalize a Treasury Single Treasury Single Account (TSA)Account (TSA)
Philippine Public Financial Philippine Public Financial ManagementManagement
Accounting and Auditing Reforms (AAR) Accounting and Auditing Reforms (AAR) PIU Philippine Public Financial PIU Philippine Public Financial Management Status ReportManagement Status Report
Philippine Public Financial ManagementPhilippine Public Financial ManagementKEY ACCOMPLISHMENTSKEY ACCOMPLISHMENTS
Priority Area #1 - Priority Area #1 - ACCOUNTINGACCOUNTINGa.a. Harmonize PGAS with IFRS and IPSASHarmonize PGAS with IFRS and IPSAS
23 Philippine Public Sector Accounting Standards (PPSAS) which are intended for 23 Philippine Public Sector Accounting Standards (PPSAS) which are intended for implementation in 2013 are being exposed to various COA sectors and concerned organizations implementation in 2013 are being exposed to various COA sectors and concerned organizations like PICPA, GACPA, AGAP, PAGBA, EUC and PHALGAlike PICPA, GACPA, AGAP, PAGBA, EUC and PHALGA
b.b. On-going evaluation of eight comments received from On-going evaluation of eight comments received from agencies/organizationsagencies/organizations
Five of the 23 PPSASs, PPSAS 5, 13, 17, 29 and 31 were revised as result of the issuance of the Five of the 23 PPSASs, PPSAS 5, 13, 17, 29 and 31 were revised as result of the issuance of the 2012 IPSAS Handbook which contains the newly-issued IPSAS 32, Service Concession 2012 IPSAS Handbook which contains the newly-issued IPSAS 32, Service Concession Arrangements: Grantor dated October 2011Arrangements: Grantor dated October 2011
Priority Area #2 - Priority Area #2 - AUDITINGAUDITING
a.a. Develop Philippine Public Sector Standards on Auditing (PPSSA) COA resolutions to Develop Philippine Public Sector Standards on Auditing (PPSSA) COA resolutions to adopt/implement the following were signed by the COA Commission Proper (CP):adopt/implement the following were signed by the COA Commission Proper (CP):
COA’s Framework of Professional StandardsCOA’s Framework of Professional Standards
11 PPSSAs are being finalized and for submission to the CP for 11 PPSSAs are being finalized and for submission to the CP for approvalapproval
24 PPSSAs24 PPSSAs
18 ISAs/ISSAIs are on-going evaluation for adoption as PPSSAs18 ISAs/ISSAIs are on-going evaluation for adoption as PPSSAs
National Budget Circular No. 546 dated January 17, 2013
GOVERNMENT ASSOCIATION OF CPAs (GACPA)
SUSTAINING ETHICS AND EXCELLENCEIN MANAGING GOVERNMENT RESOURCES
SEMINAR/WORKSHOP
“Rules and Regulations on the Grant of Representation and Transportation Allowances”
Salient FeaturesSalient Features
Purpose:Purpose:Issued to prescribe rationalized and updated rules and regulations on the grant of Representation Allowance (RA) and Transportation Allowances (TA)
Coverage:Coverage:• Generally, those holding regular and
contractual positions entitled to RATA under the pertinent general provisions of the annual GAA
• Others as authorized and enumerated in the NBC
Authorized Monthly RATA Rates:Authorized Monthly RATA Rates:
• Highest rate is P14, 000.00 for RA and P14,000.00 for TA
• Lowest rate is P5,000.00 for RA and P5,000.00 for TA
• Officials who are assigned or who use government vehicles are not entitled to TA
• The grant of RATA shall be based on the actual work performance in a month on a pro-rata basis, exclusive of leaves of absence with pay as follows:
No. of Workdays No. of Workdays
of Actual Work Performanceof Actual Work PerformanceActual RATA for a MonthActual RATA for a Month
1 to 6 workdays1 to 6 workdays 25% of the monthly RATA25% of the monthly RATA
7 to 12 workdays7 to 12 workdays 50% of the monthly RATA50% of the monthly RATA
13 to 18 workdays13 to 18 workdays 75% of the monthly RATA75% of the monthly RATA
19 workdays or more19 workdays or more 100% of the monthly RATA100% of the monthly RATA
• For the issued government vehicle, but in some eventful cases were prevented to use it such as when the vehicle undergoes repair and no replacement is provided, the grant of TA maybe allowed on pro-rata bases.
• RATA for OICs of positions entitled to those allowances maybe allowed but not to OICs of positions internally created organizational units whose staffing are not authorized by DBM
• Monthly RATA while on concurrent capacity
• Monthly RATA while on full-time detail or reassignment
• Monthly RATA while on scholarship/study/training grant
Fund Sources:Fund Sources:• Charged against the agency budgets/appropriations
for the purpose for NGAs
• For GOCCs and GFIs, charged against the corporate operating budgets
• The reimbursible RATA for those in detail to other government agencies shall be charged against the budgets of the parent agencies
Effectivity:Effectivity: January 01, 2013
