CHAPTER 2 UNIFIED ACCOUNTS CODE STRUCTURE 1. Key elements of UACS Funding source codes 6 digit code reflecting the financing source, authorization, and fund category Organization codes 12 digit code to reflect the department, agency, and sub-agency or operating unit/revenue collecting unit Location codes 9 digit code composed of region, province, city and municipality Major final output, program activity and project codes Object codes 10 digit code for COA chart of accounts object 2. Purpose of UACS - Facilitates all financial transactions of gov agencies - To establish the accounts and codes needed in reporting the financial transactions of National Gov and GOCC. 3. 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 Economic statistics consistent with the GFS 4. Sources of acct descriptions and codes in UACS The codes from COA RCA prepared for accrual basis financial reporting The addition of some sub-object codes Additional expenditure accounts designed for cash basis budgeting 5. Descriptions and codes of fund cluster 01 Regular Agency Fund 02 Foreign Assisted Project Fund 03 Special Accounts- Locally Funded/ Domestic Grants Fund 04 Special Accounts – Foreign Assisted/ Foreign Grant Fund 05 Internally Generated Funds 06 Business Related Funds 07 Trust Receipts 6. significance of enhancement of sector and horizontal outcomes provide ability to track budgets and to sector outcomes and horizontal outcomes 7. municipality identidier 4 digit number that defines the identity of the municipality/ it is the core of the standard geographic system 8. explain the transitory measure to allow govt agencies and operating units sufficient time in the familiarization of UACS codes. The DBM shall still reflect the previous codes along the UACS codes in the release documents. However, all ngas and operating units are authorized to make necessary conversion of the appropriate codes to conform to the UACS code. CHAPTER 3 1. 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. 2. Why revised Chart of acocutns in COA was created 3. 5 classifications of expenses + submajor groups 1. Personnel services i. Salaries and wages ii. Other compensation iii. Personnel benefit contributions iv. Other personal benefits 2. Maintenance and other expenses i. Traveling expenses ii. Training and scholarship expenses iii. Supplies and material expenses iv. Utility expenses
v. Communication expenses vi. Awards/rewards, prizes and indemnities vii. Survey,research,exploration, and development expenses viii. Generation, transmission, and distribution expenses ix. Confidential, intelligence, and extraordinary expenses x. Professional services xi. General services xii. Repairs and maintenance xiii. Financial assistance/subsidy xiv. Taxes, insurance premiums, and other fees xv. Labor and wages xvi. Other maintenance and operating expenses 3. Financial expenses i. Financial expenses 4. Direct costs i. Cogm ii. Cost of sales 5. Non-cash expenses i. Depreciation ii. Amortization iii. Impairment loss iv. Losses 4. 5 account code structure of revised COA consisting of 8 mandatory digits 0 00
account group major account group
Classification as to A,L,E,Inc, Exp Classification within account grp. CCE, Inv, Rec,
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sub-major account group general ledger accounts
Classification within major account. Cash on hand, CIB Represent the accounts to be presented in the detailed FS
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general ledger contra accounts
CHAPTER 4 1. What is the general acctg plan of govt agencies/units? Enumerate and explain acctg systems in the NGAS-national. The general accounting plan shows the overall accounting system of a government agency/unit. Includes the source documents, flow of transactions and its accumulation in the books of accounts, and finally the conversion into financial information/data presented in the financial reports. o Budgetary accounts system o Receipt/income and deposit system o Disbursement system o Financial reporting system 2. Explain the national budget Plan for financing the government activities for a fiscal year prepared and submitted by responsible executive to a representative body whose approval and authorization are necessary before plan can be executed. Financial blueprint of a country’s development plan. 3. Enumerate and explain the different kinds of budget a) As to nature – Annual budget – covers a period of one year. Basis of annual appropriation – Supplemental budget – supplement or adjust a previous budget which is deemed inadequate for the purpose it is intended.
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Special budget – special nature and generally submitted in special forms on account that itemizations are not adequately provided in appropriation act. b) As to basis – Performance budget – emphasizing the programs or services conducted and based on functions, activities, projects, which focus attention upon the general character and nature of work to be done – Line-item budget – basis of which is the objects of expenditures c) As to approach and technique – Zero-based budget – requires systematic consideration of all programs, projects, and activities with the use of define ranking procedures. – Incremental approach – only additional requirements need justifications. Discuss briefly the budget process/cycle a) Budget preparation – Estimation of government revenues, determination of budgetary priorities and activities within the constraints imposed by available revenues and by borrowing limits, and the translation of approved priorities and activities into expenditure levels – Finalized by president of the Philippines – Submitted to legislative dept. b) Legislative authorization (budget legislation) – Enactment of the general appropriation bill based on the budget of receipts and expenditures – Submitted by president of Philippines a day after SONA to ensure natl budget is enacted on time. – This phase starts upon the receipt of presidents budget by the house speaker and ends with the presidents enactment of General appropriations act. c) 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. d) 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 a) 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 b) Allotment – Authorization issued by DBM to govt agency, which allows it to incur obligations, for specified amounts, within legislative appropriation. c) 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) a) 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 b) 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.
c) 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. 8. Enumerate and explain the disbursement authorities prescribed by the GAM a) 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) b) Non-cash availment authority (NCAA) – Authority issued by DBM to cover liquidation of their actual obligations incurred against allotments for availment of proceeds/grants c) 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. d) 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 9. Explain briefly the tax remittance advice a) 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% 10.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. a) Budget execution documents (BED) – Submit to DBM not later than nov 30, 2014 – Contain agencies plans, targets, and schedules for a financial year b) Budget and financial accountability reports (BFARs) – Contain information on agencies actual accomplishments an performance for a given period – Effectively report, monitor or evaluate performance vs plans and targets CHAPTER 5 1. Enumerate the fundamental principles for the disbursement of public funds a. No money shall be paid out of any public treasury or depositary except in pursuance of an appropriation law or other specific statutory authority b. Govt funds or property shall be spent or used solely for public purposes c. Trust funds shall be available and may be spend only for the specific purpose for which trust was created d. Fiscal responsibility shall be shared by all those exercising authority e. Disb/disposition of govt funds/property shall invariable bear the approval of proper officials f. Claims against govt funds shall be supported w complete document g. All laws and regulations applicable to financial transactions shall be faithfully adhered to h. Gaap, and sound management and fiscal admin shall be observed 2. Identify the basic requirements and certification for disbursement of public funds a. Availability of allotment certified by budget officer b. 3. 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 4. 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. 5. Enumerate and discuss the two types of checks being issues by the govt agencies a. Modified disb check issued by govt chargable against the account of treasurer of the PH
b. Commercial check issued by NGAs , chargable against the agency checking account with govt servicing banks 6. List down the COA rules and regulations and other issuances governing the grant and liquidation of assets --7. Discuss what a tax remittance advice is 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. 8. Define and discuss what a cash disbursement ceiling is. 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.
