SUCS - Budget Primer - Budget Execution

UNIFIED ACCOUNTS CODE
Budget Execution : Budget

STRUCTURE
Issuances
FOR
State Universities and

Colleges
Venue of the Training
Date of the Training
Republic of the Philippines
Budget Cycle
Budget Execution Before

Example: (Infrastructure)
Allotment Release
(after enactment)
Bidding Process
(3-4 months)
GAA enacted late

(March)
Delayed
Implementation
Rainy season leads to

delays, cost overruns & poor
quality
Award
(June-July)
Budget Execution Now

Example: (Infrastructure)
GAA as Release Document

Early GAA enactment
(January)
(Dec of Prior FY)
Early Procurement
*CL 2010-9
(Oct-Dec Prior FY)
Early
Implementation
(As early as January)
Award
(January)
Early Procurement for Implementation

CL
No. 2010-9: Guidelines Directing Agencies to

Expedite the Implementation of their Procurement
Activities
Agencies can start undertaking the initial process of
procurement activities based on the proposed
budget levels per NEP specifically for purposes of
conducting public bidding.
Will allow early implementation of projects which are
scheduled during the first quarter of the year in
consideration of our countrys good weather
condition.
Key Issuances on the 2014 Budget

Execution
NBC
No. 551: Guidelines on the Release of

Funds for 2014 (with Annexes A-D)
CL
No. 2013-16: Implementation of the

Expanded Modified Direct Payment Scheme for
A/Ps Due Creditors/Payees of All NGAs
CL No. 2013-16A: Clarification of CL 2013-16
Re: Expanded Modified Direct Payment Scheme
(Expanded MDPS) for Accounts Payable (A/Ps)
CL No. 2013-16B: Addendum to DBM CL
2013-16 Re: Expanded Direct Payment Scheme
(Expanded MDPS) for Accounts Payable (A/Ps) of
National Government Agencies/Operating Units
(NGAs/Ous)
Key Issuances on the 2014 Budget Execution

National Budget Circular No. 551 dated Jan. 2, 2014

Fund Release System for 2014
General Guidelines
Agencies
submit BEDs
on
Nov 30, 2013
GAA serves as
allotment
release
document for
items in FCR list
But those in
Negative
List / FLR will
still require
SAROs
Agencies
obligate
their
budgets
Disbursemen
t authorities.
incl.
comprehen
sive NCAs
for 1st
semester
FARs &
BARs serve
as guidance
for further
releases

GAA As Release Document
Budget Submissions to
Congress
Presidents
PresidentsBudget
Budget
Message
Message
Budget
Budgetof
ofExpenditures
Expenditures
and
andSources
Sourcesof
ofFinancing
Financing
NationalExpenditure
Expenditure
National
Program
Program
Details of the 2014 Budget
Details
of the 2014 Budget
(Annexes)
(Annexes)
Staffing Summary
Staffing Summary
National Budget Circular No. 551 dated Jan. 2,

2014
GAA As Release Document
General Guidelines
GAA
The budgets of
agencies or
appropriations
except those
included in the
negative listare
considered
released as
allotments when
the General
Appropriation takes
effect.

Negative List
General Guidelines
Lump sum funds within agency

budgets
Special Purpose Funds
Other items subject to conditions
All automatic appropriations

Obligational Authorities
General Guidelines
NOW
BEFORE
Agency
Budget
Matrix
(ABM) For
budget items
Not Needing
Clearance
Special
Allotment
Release
Order
(SARO) For
budget items
Needing
The GAA Itself

For budget
items For
Comprehensive
Release
SARO For
budget items
For Later
Release
General
Allotment
Release Order
(GARO) For
RLIP only

2014
Disbursement Authorities
General Guidelines
Notice of Cash Allocation: for cash

disbursements
Non-Cash Availment Authority: for loans in

kind
Cash Disbursement Ceiling: for foreign posts

expenses
Tax Remittance Advice

FCR vs. FLR: Agency Budgets
General Guidelines
For Comprehensive
Release
(Annex A & A1)
Via GAA-as-Release
For Later Release

(Annex B & B1)
Via SARO
Agency-specific
Agency-specific
budgets
not in negative list (Annex
A)
Transferred
appropriations, dept-todept or within dept

(Annex A-1)
budgets
in negative list (Annex B)
Transferred
appropriations from one

dept. to another (Annex
B-1)

FCR vs. FLR: Automatic Appropriations
General Guidelines
For Comprehensive
Release
(Annex C)
Via GARO
Annual
requirements for RLIP

(but 50% only for agencies
with recently approved
RatPlan)
Via SARO
Interest
Payments
Internal revenue Allotment
SAGF of certain agencies
(DOTC-OTS, DOF-IC, DOJ-LRA,
DepEd-ECCDC) with no
specific budget provision on
the GAA)
For Later Release

(Annex C1)
Via SARO
50%
RLIP balance for

newly-rationalized agencies
SAGFs of other agencies
other than those cited in
Annex C based on SBR and
BTr certification of fund
availability
Adjustments on IRA
Other auto appropriations
(TEF, Grant Proceeds,
Pensions for Presidents
Wives)

Validity and Sources of Funds
General Guidelines
2014 GAA per R.A. No. 10633 Agency

Specific Budgets and SPFs
PS: Until Dec 31, 2014
MOOE & CO: Until Dec 31, 2015
Subject to Issuance of Guidelines
2014 Automatic Appropriations

(RLIP, SAGFs, IRA, etc. per BESF)
Until December 31, 2014
2013 Continuing Appropriations per

Congress Joint Resolution No. 1 and
2013 Supplemental Appro per R.A.
10634 (for Calamity Fund and QRF)
MOOE & CO: until Dec 31, 2014

Validity of NCAs
General Guidelines
To Regular MDS Sub-Accounts and SAGF MDS

Sub-Accounts:
Until last working day of 3rd month of a
quarter
To Special MDS Accounts (RG/TL):

Until last working day of following
month
To Trust MDS Accounts:

Until last working day of the year
To BTr for Loan Proceeds:

Until last working day of the year

Specific Guidelines
Comprehensive Release encompasses the

ff:
New GAA
Annual Agency Specific Budgets, thru the
GAA
First Quarter requirements for Pension and
Subsidy to GOCCs, thru SAROs
Automatic Appropriations
RLIP, thru GARO
IRA and Interest Payment, thru SAROs
SAGFs - Annual operating requirements of
Agencies fully dependent on their
income, thru SAROs

Specific Guidelines
For GOCCs and LGUs
For GOCCs (BSGC)
1st quarter subsidy for heavily subsidized
GOCCs for comprehensive release
Equity and remaining subsidy for later
release
For LGUs (IRA and ALGU)
Annual IRA for comprehensive release
IRA adjustments, special shares in the
proceeds of national taxes and LGSF
for later release

Specific Guidelines
Notice of Cash Allocation
Initial comprehensive NCA (based on Monthly
Disbursement Program per NBC 550) shall cover
first semester requirements (January to June, 2014)
for:
Current year requirements
Agency Specific Budget
RLIP
Prior Years requirements

Accounts Payable (A/Ps)
Obligations expected to become A/Ps
Continuing Appropriations

Implementation Policy

2014
Responsibility and Effectivity
Budget Execution Process Flow

Approval of the Budget
GAA , BESF
Issuance/Recording of Budget
Authorities (GAARD , SARO , NCA)
Obligation / Procurement
Goods, Services, Projects
Payment to
Contractors/Creditors/Payees
MDS Checks / Advice to Debit Account (ADA)
Allotments, Obligations, A/Ps

Allotments
(GAARD and SAROs)
Procurement (Obligations)
(Goods, Services, Projects)
A/Ps
Delivered Goods/Services
( current year and prior years)
Not Yet
Due and
Demandable
Obligations
Undelivered Goods/Services
Key Issuances on the 2014 Budget Execution

Circular Letter 2013-16 dated December 13, 2013

Why Expanded MDPS?
Uniform payment system across

government
more transparent, accountable &
efficient!
Less red tape and paperwork

80% checkless in 2014!
Faster & more predictable

processing
payment to creditors in 2 days!
Supports shift to Treasury Single

Account
more predictable NG cash

MDPS and the Expanded MDPS
Paymen
t
Coverage
System
MDS
NCA and Disbursemen Payment to

Validity
t
Creditors
LDDAP with
ADA
submitted to
DBM
Automatic
Payment
upon
Release of
NCA
LDDAP with
All
Part of
ADA and
Departmen
Expand
Comprehens Summary of
ts: Internal Regular
ed
ive Release: LDDAP-ADA
and
MDS
MDPS
1 quarter
issued
External
validity
Submitted to
Creditors
GSB
Automatic
Payment
upon
Release of
NCA
Pilot
Departmen Special
MDPS
ts; External MDS
Creditors
Needed: 2
months
validity

(For Starters)
Creditors Get Bank
Account with GSB
Agency
encourages
Creditors to get
GSB account
Agency issues
Letter of
Introduction to
creditors
addressed to GSB
GSB verifies existing

account. If no
existing
account, Agency
advises Creditor to
open new account
Creditors may opt for bank transfer
(EPCS) but will shoulder transfer fees

(Expanded MDPS Process)
Cash Allocation
Agency projects
due &
demandable
A/Ps for FY for
inclusion in
MDP
Agency submits
Monthly
Disbursement
Program to DBM
by
Nov 30 of prior
FY
DBM posts reports on MDPs
and
NCAs released on its website
DBM releases
comprehensive
NCA

Payment of A/Ps
GSB
credits
NCA to
Agencys
MDS
account
Agency
submits
LDDAP-ADA
(with
Summary of
LDDAPADA
Issued) to GSB
Agency posts
LDDAP-ADA nos.
on website &
provides to
Creditors
GSB
GSB credits
provides
payment to
BTr w/ copy
Creditors GSB
of
account within
Summary
48 hours
of
LDDAP-ADA
Issued
For non-GSB/EPCS:
GSB effects bank
transfer. Creditor
shoulders fee.

Recording of Payments
GSB provides
Agency with
duly validated
LDDAPADA on
next banking
day
Creditor
issues
Official
Receipt
to Agency
GSB advises
Agency of nonpayment due to
inconsistent
information
Agency
records
payments in
its
books

Accountability Reporting
GSB provides
BTR
with copies of
Summary of
LDDAPADA.
Issued on the
same day as
receipt of
LDDAPADA
from agency
GSB provides
DBM
with monthly
report
on NCAs credited
&
utilized by the
2nd
working day
after
Agency submits
Summary Report on
Disbursements by
the end of the
month

(Correcting Typographical Errors)
GSB
GSB advises
advises
Agency
Agency of
of
nonpayment
nonpayment
due
due to
to
inconsistent
inconsistent
information
information
through
through the
the
validated
validated
LDDAP-ADA
LDDAP-ADA
typo errors
covered by
circular
Agency issues
letter of
authority to GSB
for correction
errors
not
covered
by
circular
Agency
includes
A/P in
upcoming
LDDAP-ADA

(Responsibilities and Timeline)
Agencies
Submit MDP by November 30 of prior FY

Ensure creditors submit accurate account
info
Submit LDDAP-ADA on an First-in First-out
basis
Prepare separate LDDAP-ADA for bank
accounts outside NGAs GSB
Ensure consistency of codes used with
UACS
Furnish creditors with LDDAP-ADA
numbers for tracking purposes, and post
on their websites

DBM
Include in the comprehensive NCAs

Agencies requirements for payment
of due and demandable A/Ps as
indicated in their MDPs
Post all MDPs submitted and report on

total NCAs issued on the DBM website

GSB
Provide DBM a complete list of MDS

accounts maintained by all Agencies by
Dec 15, 2013
Credit accounts of Agencies upon receipt of
NCA
Effect payment to creditors within 48
hours
Provide Agencies a copy of duly validated
ADA (with remarks) on the next banking
day
Provide BTr copy of Advise of ADAs issued
Circular Letter 2013-16, 2013-16A, 2013-16B

Coverage
ALL NGAs & Operating Units, for the

payment of
ALL due and demandable Accounts Payables
Except:
Terminal Leave and Retirement Gratuity
(2013-16)
Remittance of social insurance premium
(2013-16B) contributions to government
corporations, such as GSIS, PhilHealth
and HDMF
Payment of A/Ps to utility companies
(2013-16B)

Forms
CL
2013-16 Annex A: List of Due

and Demandable Accounts Payable
Advice to Debit Accounts (LDDAPADA)
CL 2013-16 Annex C: Letter of
Introduction (LOI)
CL
2013-16A Annex A: Summary of

LDDAP-ADAs Issued and Invalidated
ADA Entries (SLIIE)
CL 2013-16 Annex A: List of Due and Demandable

Accounts Payable Advice to Debit
LDDAP-ADA
Accountable form integrating the ADA with the LDDAP

which is a list reflecting the
names of creditors/payees to be paid by the NGA/OU
and the corresponding amounts of their unpaid claims,
duly certified and approved by the heads of the
accounting unit and Agency, or authorized officials.
Shall be considered as accountable form.
The printing, use and reporting of the same shall be
pursuant to the Commission
on Audits existing rules and regulations governing
accountable forms.
CL 2013-16 Annex A: List of Due and Demandable

Accounts Payable Advice to Debit
CL 2013-16 Annex C: Letter of Introduction (LOI)
Letter of Introduction
Letter addressed to the MDS-GSB issued by the NGA/OU to
its creditor/
Payees for the purpose of opening an account or validation
of an existing
Acccount.
CL 2013-16 Annex C: Letter of Introduction (LOI)
CL 2013-16A Annex A: Summary of LDDAP-ADAs

Issued and Invalidated ADA Entries
SLIIE
Prepared in 4 copies for all LDDAP-ADAs issued,

certified correct by the Head of Accounting Unit
and approved by the Head of Agency or
Authorized Official.
Copy 1 and 2
Copy 3
File)
Copy 4
= For MDS-GSB
= Chief Accountant (as Agency
= COA Auditor
CL 2013-16A Annex A: Summary of LDDAP-ADAs

Issued and Invalidated ADA Entries

Effectivity
Effective
2013-16A)
March 1,2014 (CL
Other Significant Items

National Budget Circular 551
Section 4.8
With the adoption of the UACS and PIB
structures of the 2014 GAA, the DBM shall
use modified fund release documents, to
wit:
4.8.1 Obligational authorities, i.e.
Special Allotment Release Order (SARO) and
General Allotment Release Order (GARO), for
agencies/OUs to incur obligations; and
4.8.2 Disbursement authorities, i.e.,
Notice of Cash Allocation (NCA), Non-Cash
Availment Authority (NCAA), Cash
Disbursement Ceiling (CDC), for
agencies/OUs to pay obligations and
payables.
Issuance Related to Conversion of UACS

Codes
National Budget Circular 554
Conversion of Codes to Conform to the Unified
Accounts Code Structure
Other Significant Items

DBM-COA Joint Circular 2014-1
To prescribe harmonized formats of the
budget and financial accountability reports
(BFARs) on appropriations, allotments,
obligations, disbursement authorities,
disbursements, and balances.
The UACS Codes when applied to all
phases of budget : preparation,
legislation, execution and
accountability will be able to enhanced
the quality and timeliness of financial
data for the generation of required
reports and analysis.
BFARs are the good example of a

harmonized data.
Special Provisions
Special Provisions Applicable to SUCs
Special Provision #1. Tuition Fees and School Charges.
SUCs are authorized to collect tuition fees and other

necessary school charges pursuant to R.A. No. 8292.
In consonance with the policies enumerated under
R.A. No. 8292, all SUCs shall ensure that fees and
charges collected are at such rates that would
implement a cost recovery program and a socialized
scheme of tuition and school fees in order to
democratize access to education by poor and
deserving students.
Special Provisions
Special Provision #2. Scholarship Program for Poor and
Deserving Students.
The amounts appropriated for the scholarship

program under the SUCs shall be used exclusively to
support their tertiary education: PROVIDED, that in no
case shall said amount be used for any other purpose:
PROVIDED, FURTHER, that the scholarship programs
shall only cover course offerings aligned with the
Priorities of the government in key growth areas, such
as, semiconductor and electronics, business, process
outsourcing, tourism, agriculture and fisheries,
general
infrastructure,
and
other
priority
manufacturing industries: PROVIDED, FURTHERMORE,
Special Provisions
Special Provision #3. Hospital Income
In addition to amounts appropriated herein, all

income generated from hospital operations of the
University of the Philippines-Philippine General
Hospital (UP-PGH), the Western Visayas State
University (WNSU) Hospital, and such other hospitals
or medical centers under SUCs, shall be deposited in
an authorized government depository bank and shall
be used to augment the hospitals MOOE and Capital
Outlays: PROVIDED, that no amount therefrom shall
be used for the payment of salaries, allowances and
other benefits: PROVIDED, FURTHER, that at least
twenty five percent of the said income shall be used
Special Provisions
Special Provision #4. Income from Intellectual Property.
SUCs shall own intellectual property created by their

faculty and personnel subject to Sections 30 and 178
of R.A. No. 8293. Accordingly, any income derived
from the sale, marketing and commercialization of the
said intellectual property shall accrue to the SUCs. In
addition, SUCs shall develop and administer
appropriate incentive schemes to encourage their
faculty, personnel and students to create or invent
intellectual property.
Special Provisions
Special Provision #5. Allocation of Maintenance and Other
Operating Expenses.
The allocation of MOOE for SUCs shall be completed in

accordance with the normative funding scheme
prescribed under DBM-CHED Joint Circular No. 2 dated
August 3, 2004.
Special Provisions
Special Provision #6. Unified Priority Research Agenda.
The amounts appropriated herein for new research

and development projects under the respective SUC
budgets shall be used exclusively for research and
development projects that are consistent with, and
directly related to, the priority programs of the
government under the Philippine Development Plan
(2011-2016).
Special Provisions
Special Provision #7. Programs or Course Offerings.
SUCs shall maintain only programs or courses that

directly support their core mandate. They say likewise
open new programs or courses on semiconductor and
electronics, business process outsourcing, tourism,
agriculture and fisheries, general infrastructure, and
other priority manufacturing industries, subject to the
approval of their respective governing boards, and the
CHED pursuant to R.A. No. 8292: PROVIDED, that
funding requirements of new programs or courses
shall be charged against internally-generated income.
Special Provisions
Special Provision #8. Creating, Conversion or
Reclassification of Positions.
SUCs may be allowed to create, convert or reclassify

positions as long as there is an authorized allocation
for the purpose as appearing in their respective
Program of Receipts and Expenditure (PREs) or, when
funded through the abolition of vacant positions, in
accordance with DBM Circular Letter No. 2004-7 dated
March 25, 2004: PROVIDED, that (i) the number of
positions to be created shall be at least the same
number of positions abolished; (ii) the staffing
modifications which will increase the number of lower
level teaching positions may be allowed in order to
augment inadequate teaching personnel; and (iii) the
Special Provisions
Special Provision #9. Vocational and Practicum Training of
Students.
SUCs are authorized to (i) avail the voluntary services

of their students, during regular vocational class
periods, in the construction or repair of buildings and
the fabrication or repair of equipment as part of their
vocational training; and (ii) utilize student labor for
academic, research and extension, and administrative
matters as part of the students practicum training:
PROVIDED, that in both cases, the student shall be
paid a reasonable allowance of at least Twenty Five
Pesos per hour: PROVIDED, FURTHER, that the
voluntary service of the student in the construction or
Special Provisions
Special Provision #10. Maintenance of Laboratory Classes
SUCs are allowed to maintain laboratory classes for

their teaching education program in accordance with
the policy of the CHED: PROVIDED, that the total
number of students in such laboratory classes shall
not exceed five hundred per SUC, with one teacher for
every twenty five students.
Special Provisions
Special Provision #11. Transfer of Secondary School
Teaching Positions
Secondary school teaching positions in excess of the

required number for laboratory classes maintained by
SUCs pursuant to the preceding special provision shall
be transferred to the DepEd. Pending actual transfer,
the funding requirements for said positions shall
continually be paid by the host SUC.
Special Provisions
Special Provision #12. Submission of the Program of
Receipts and Expenditures
Submission of the Program of Receipts and

Expenditures. SUCs shall submit to the DBM and
CHED not later than November 15 of the preceding
year a copy of their PREs for the current year as
approved by their respective governing boards
pursuant to R.A. No. 8292. They shall likewise submit
to the DBM not later than March 1 of the current year
their respective audited financial statements for the
immediately preceding year.

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UNIFIED ACCOUNTS CODE

Budget Execution : Budget

State Universities and

Republic of the Philippines

Republic of the Philippines

Budget Execution Before

GAA enacted late

Rainy season leads to

Budget Execution Now

GAA as Release Document

Early Procurement for Implementation

No. 2010-9: Guidelines Directing Agencies to

Key Issuances on the 2014 Budget

No. 551: Guidelines on the Release of

No. 2013-16: Implementation of the

Key Issuances on the 2014 Budget Execution

Republic of the Philippines

National Budget Circular No. 551 dated Jan. 2, 2014

National Budget Circular No. 551 dated Jan. 2, 2014

National Budget Circular No. 551 dated Jan. 2,

Republic of the Philippines

National Budget Circular No. 551 dated Jan. 2, 2014

Republic of the Philippines

Lump sum funds within agency

Special Purpose Funds

Other items subject to conditions

All automatic appropriations

National Budget Circular No. 551 dated Jan. 2, 2014

Republic of the Philippines

The GAA Itself

National Budget Circular No. 551 dated Jan. 2,

Notice of Cash Allocation: for cash

Non-Cash Availment Authority: for loans in

Cash Disbursement Ceiling: for foreign posts

Tax Remittance Advice

Republic of the Philippines

National Budget Circular No. 551 dated Jan. 2, 2014

For Later Release

appropriations, dept-todept or within dept

appropriations from one

National Budget Circular No. 551 dated Jan. 2, 2014

requirements for RLIP

For Later Release

RLIP balance for

National Budget Circular No. 551 dated Jan. 2, 2014

2014 GAA per R.A. No. 10633 Agency

Republic of the Philippines

2014 Automatic Appropriations

2013 Continuing Appropriations per

National Budget Circular No. 551 dated Jan. 2, 2014

To Regular MDS Sub-Accounts and SAGF MDS

To Special MDS Accounts (RG/TL):

To Trust MDS Accounts:

To BTr for Loan Proceeds:

Republic of the Philippines

National Budget Circular No. 551 dated Jan. 2, 2014

Comprehensive Release encompasses the

Republic of the Philippines

National Budget Circular No. 551 dated Jan. 2, 2014

National Budget Circular No. 551 dated Jan. 2, 2014

Prior Years requirements

Republic of the Philippines

National Budget Circular No. 551 dated Jan. 2, 2014