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 account group Classification as to A,L,E,Inc, Exp
00 major account group Classification within account grp. CCE, Inv, Rec,
00 sub-major account group Classification within major account. Cash on hand, CIB
00 general ledger accounts Represent the accounts to be presented in the detailed
FS
0 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 countrys 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.
 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.
4. 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.
5. 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.
6. 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
7. 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
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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.