CHAPTER 2 UNIFIED ACCOUNTS CODE STRUCTURE provide ability to track budgets and to sector outcomes and

horizontal outcomes
Key elements of UACS
municipality identidier
Funding source codes  6 digit code reflecting the financing
source, authorization, and fund category 4 digit number that defines the identity of the municipality/ it is
the core of the standard geographic system
Organization codes  12 digit code to reflect the department,
agency, and sub-agency or operating unit/revenue collecting unit explain the transitory measure to allow govt agencies and
operating units sufficient time in the familiarization of UACS
Location codes 9 digit code composed of region, province, city
codes.
and municipality
The DBM shall still reflect the previous codes along the UACS
Major final output, program activity and project codes 
codes in the release documents. However, all ngas and operating
Object codes 10 digit code for COA chart of accounts object units are authorized to make necessary conversion of the
appropriate codes to conform to the UACS code.
Purpose of UACS

- Facilitates all financial transactions of

gov agencies CHAPTER 3

- To establish the accounts and codes
needed in reporting the financial
transactions of National Gov and GOCC.
Reporting requirements
Financial Reports as required by the DBM and COA
FS as required by the public sector accounting standards board of
the Philippines
Management Reports as required by executive officials/head of
departments and agencies
Define and discuss the underlying reason why chart of accounts
is prescribed in new accounting system.
-to enhance the accountability and transparency of the financial
reports, and ensure compatibility of financial information, the
COA recognizes the need to revise the NGAS Chart of Accounts.
Why revised Chart of acocutns in COA was created
5 classifications of expenses + submajor groups
Personnel services
Salaries and wages

Economic statistics consistent with the GFS Other compensation

Personnel benefit contributions

Sources of acct descriptions and codes in UACS
Other personal benefits
The codes from COA RCA prepared for accrual basis financial
reporting Maintenance and other expenses
The addition of some sub-object codes Traveling expenses

Additional expenditure accounts designed for cash basis Training and scholarship expenses
budgeting
Supplies and material expenses
Descriptions and codes of fund cluster
Utility expenses
01 Regular Agency Fund
Communication expenses
02 Foreign Assisted Project Fund
Awards/rewards, prizes and indemnities
03 Special Accounts- Locally Funded/ Domestic Grants Fund
Survey,research,exploration, and development expenses
04 Special Accounts – Foreign Assisted/ Foreign Grant Fund
Generation, transmission, and distribution expenses
05 Internally Generated Funds
Confidential, intelligence, and extraordinary expenses
06 Business Related Funds
Professional services
07 Trust Receipts
General services
significance of enhancement of sector and horizontal outcomes
Repairs and maintenance
Financial assistance/subsidy Financial reporting system

Taxes, insurance premiums, and other fees Explain the national budget

Labor and wages Plan for financing the government activities for a fiscal year
prepared and submitted by responsible executive to a
Other maintenance and operating expenses
representative body whose approval and authorization are
Financial expenses necessary before plan can be executed.

Financial expenses Financial blueprint of a country’s development plan.

Direct costs Enumerate and explain the different kinds of budget

Cogm As to nature

Cost of sales Annual budget – covers a period of one year. Basis of annual
appropriation
Non-cash expenses
Supplemental budget – supplement or adjust a previous budget
Depreciation which is deemed inadequate for the purpose it is intended.
Amortization Special budget – special nature and generally submitted in special
forms on account that itemizations are not adequately provided in
Impairment loss
appropriation act.
Losses
As to basis
5 account code structure of revised COA consisting of 8
Performance budget – emphasizing the programs or services
mandatory digits
conducted and based on functions, activities, projects, which
focus attention upon the general character and nature of
0 account group Classification as to A,L,E,Inc, Exp work to be done
00 major account Classification within account grp. Line-item budget – basis of which is the objects of
group CCE, Inv, Rec, expenditures
00 sub-major account Classification within major account. As to approach and technique
group Cash on hand, CIB
Zero-based budget – requires systematic consideration of all
00 general ledger Represent the accounts to be programs, projects, and activities with the use of define
accounts presented in the detailed FS ranking procedures.
0 general ledger Incremental approach – only additional requirements need
contra accounts justifications.

Discuss briefly the budget process/cycle

Budget preparation

CHAPTER 4 Estimation of government revenues, determination of budgetary

priorities and activities within the constraints imposed by
What is the general acctg plan of govt agencies/units?
available revenues and by borrowing limits, and the translation of
Enumerate and explain acctg systems in the NGAS-national.
approved priorities and activities into expenditure levels
The general accounting plan shows the overall accounting system
Finalized by president of the Philippines
of a government agency/unit.
Submitted to legislative dept.
Includes the source documents, flow of transactions and its
accumulation in the books of accounts, and finally the conversion Legislative authorization (budget legislation)
into financial information/data presented in the financial reports.
Enactment of the general appropriation bill based on the budget
Budgetary accounts system of receipts and expenditures

Receipt/income and deposit system Submitted by president of Philippines a day after SONA to ensure
natl budget is enacted on time.
Disbursement system
This phase starts upon the receipt of presidents budget by the
house speaker and ends with the presidents enactment of
General appropriations act.
Budget execution and operation
Development of operating budget, time within which it should be
done, manpower and other resources needed to carry out the
work, peso amounts requires to accomplish proposed programs
Medium through which plans for operation can be implemented
using available resources and funds
Begins with DBMs issuance of guidelines on the release and
utilization of funds.
Budget accountability
Happens alongside budget execution phase
DBM monitors the efficiency of fund utilization, asseses agency
performance and provides a vital basis for reforms and new
policies.
Enumerate and explain the budgetary accounts
Appropriation
Authorization made by law or other legislative enactment,
directing payment of goods and services out of government funds
under specific conditions or for special purpose
Allotment
Authorization issued by DBM to govt agency, which allows it to
incur obligations, for specified amounts, within legislative
appropriation.
Obligation
Commitment by a govt agency arising from an act of duly
authorized official which binds the govt to the immediate or
eventual pmt of money.
Explain the performance informed budgeting (PIB)
Budgeting approach that uses performance information to assist
in deciding where the funds will go.
Both financial and non financial information is presented in the
appropriations document
Provides context for the programs, activities, and projects
pursued by different agencies of the govt
Enumerate and explain the obligational authorities prescribed
by the govt acctg manual (GAM)
General appropriation act release document (GAARD)
Abolish lengthy process of releasing allotments to a departments
and agencies
Enhancing operational efficiency of all agencies across the
bureaucracy
Special allotment release order (SARO)
Covers budgetary items “for later release” (FLR) (negative list) in
the entity submitted budget execution documents, subject to
compliance of required documentats and clearances.
General Allotment release order (GARO)
Comprehensive authority issued to all national government
agencies to incur obligations not exceeding an authorized amount
during a specified period for the purpose indicated therein.
Enumerate and explain the disbursement authorities prescribed
by the GAM
Notice of cash allocation (NCA)
Authority issued by the DBM to pay operating expenses,
purchases of supplies and materials, acquisition of PPE, accounts
payable, and other authorized disbursements through the issue of
MDS (modified disb check), Authority to debit account (ADA)
Non-cash availment authority (NCAA)
Authority issued by DBM to cover liquidation of their actual
obligations incurred against allotments for availment of
proceeds/grants
Cash disbursement ceiling (CDC)
Authority issues by the DBM to DFA and DOLE to utilize their
income collected/retained by their foreign service posts to cover
their operating requirements, but not to exceed the released
allotmen to the said post.
Notice of transfer of allocation (NTA)
Issued by central office to its regional and operating units to pay
their operating expenses, purch of supplies, etc though issue of
MDS check, ADA, etc
Explain briefly the tax remittance advice
The NCA released to the govt agency is reduced by the amount of
estimated taxes expected to be remitted by the agency thorugh
tax remittance advice,
Personnel services – 8%
Maintenance and other opex – 5%
Capital outlay – 5%
What are the two documents/reports which are required by the
department of budget and management to be submitted on a
regular basis? Explain briefly.
Budget execution documents (BED)
Submit to DBM not later than nov 30, 2014
Contain agencies plans, targets, and schedules for a financial year
Budget and financial accountability reports (BFARs)
Contain information on agencies actual accomplishments an Commercial check  issued by NGAs , chargable against the
performance for a given period agency checking account with govt servicing banks

Effectively report, monitor or evaluate performance vs plans and List down the COA rules and regulations and other issuances
targets governing the grant and liquidation of assets

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CHAPTER 5 Discuss what a tax remittance advice is

Enumerate the fundamental principles for the disbursement of
public funds
No money shall be paid out of any public treasury or depositary
except in pursuance of an appropriation law or other specific
statutory authority
Document which agencies issue/file with the BIR to report and
record remittances (constructive payment) of all taxes withheld
from transactions. This serves as basis for BIR and BTr to record as
income, the tax collection and deposit in their books of accounts.
Define and discuss what a cash disbursement ceiling is.

Govt funds or property shall be spent or used solely for public
purposes
Trust funds shall be available and may be spend only for the
specific purpose for which trust was created
Fiscal responsibility shall be shared by all those exercising
authority
An authority issued by the DBM to departments with overseas
operations e.g., DFA and DOLE to utilize their income
collected/retained by their foreign service posts (FSPs) to cover its
operating requirements but not to exceed the released allotment
to the said post.

Disb/disposition of govt funds/property shall invariable bear the

approval of proper officials

Claims against govt funds shall be supported w complete

document

All laws and regulations applicable to financial transactions shall

be faithfully adhered to

Gaap, and sound management and fiscal admin shall be observed

Identify the basic requirements and certification for

disbursement of public funds

Availability of allotment certified by budget officer

Explain the use of notice of cash allocation

Specifies the max amount of withdrawal that an entity can make

from a govt bank for the period indicated.

Pay opex, other payable thru mds/ ada/etc

Total mds/ada issued shall not exceed total NCA received

Explain the use of notice of transfer allocation

Maximize the available NTAs of the agency, the common funds

system shall be adopted whereby cash allocation balances of
agencies under the regular MDS account may be used to cover
payment of current years accounts payable.

Enumerate and discuss the two types of checks being issues by

the govt agencies

Modified disb check  issued by govt chargable against the

account of treasurer of the PH