UNIFIED%20ACCOUNTS%20CODE%20STRUCTURE

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UNIFIED ACCOUNTS CODE STRUCTURE
Budget Execution Budget Issuances
FOR
State Universities and Colleges
Venue of the Training Date of the Training
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Budget Cycle
3
Budget Execution Before
Example (Infrastructure)
Bidding Process (3-4 months)
Allotment Release (after enactment)
GAA enacted late (March)
Delayed Implementation Rainy season leads to
delays, cost overruns poor quality
Award (June-July)
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Budget Execution Now
Example (Infrastructure)
GAA as Release Document (January)
Early GAA enactment (Dec of Prior FY)
Early Procurement CL 2010-9 (Oct-Dec Prior FY)
Award (January)
Early Implementation (As early as January)
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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.

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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)

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Key Issuances on the 2014 Budget
ExecutionNational Budget Circular No. 551 dated
Jan. 2, 2014

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National Budget Circular No. 551 dated Jan. 2,
2014 Fund Release System for 2014
General Guidelines
Agencies submit BEDs on Nov 30, 2013
Disbursement authorities. incl. comprehensive
NCAs for 1st semester
Agencies obligate their budgets
GAA serves as allotment release document for
items in FCR list
FARs BARs serve as guidance for further
releases
But those in Negative List / FLR will still
require SAROs
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National Budget Circular No. 551 dated Jan. 2,
2014GAA As Release Document
Budget Submissions to Congress

• Presidents Budget Message
• Budget of Expenditures and Sources of Financing
• National Expenditure Program
• Details of the 2014 Budget
• (Annexes)
• Staffing Summary

• Presidents Budget Message
• Budget of Expenditures and Sources of Financing
• National Expenditure Program
• Details of the 2014 Budget
• (Annexes)
• Staffing Summary

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National Budget Circular No. 551 dated Jan. 2,
2014GAA As Release Document
General Guidelines
GAA
The budgets of agencies or appropriationsexcept
those included in the negative listare
considered released as allotments when the
General Appropriation takes effect.
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National Budget Circular No. 551 dated Jan. 2,
2014 Negative List
General Guidelines

• Lump sum funds within agency budgets
• Special Purpose Funds
• Other items subject to conditions
• All automatic appropriations

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National Budget Circular No. 551 dated Jan. 2,
2014Obligational Authorities
General Guidelines
NOW
BEFORE
The GAA Itself For budget items For
Comprehensive Release
Agency Budget Matrix (ABM) For budget items Not
Needing Clearance
SARO For budget items For Later Release
Special Allotment Release Order (SARO) For budget
items Needing Clearance
General Allotment Release Order (GARO) For RLIP
only
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National Budget Circular No. 551 dated Jan. 2,
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

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National Budget Circular No. 551 dated Jan. 2,
2014FCR vs. FLR Agency Budgets
General Guidelines

• For Comprehensive Release
• (Annex A A1)
• Via GAA-as-Release
• Agency-specific budgets not in negative list
  (Annex A)
• Transferred appropriations, dept-to-dept or
  within dept (Annex A-1)

• For Later Release
• (Annex B B1)
• Via SARO
• Agency-specific budgets in negative list (Annex
  B)
• Transferred appropriations from one dept. to
  another (Annex B-1)

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

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National Budget Circular No. 551 dated Jan. 2,
2014Validity and Sources of Funds

• 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

General Guidelines
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National Budget Circular No. 551 dated Jan. 2,
2014Validity 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

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

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

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

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National Budget Circular No. 551 dated Jan. 2,
2014 Implementation Policy
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National Budget Circular No. 551 dated Jan. 2,
2014 Responsibility and Effectivity
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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)
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Allotments, Obligations, A/Ps
Allotments (GAARD and SAROs)
Procurement (Obligations) (Goods, Services,
Projects)
Not Yet Due and Demandable Obligations
A/Ps
Delivered Goods/Services ( current year and
prior years)
Undelivered Goods/Services
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Key Issuances on the 2014 Budget
Execution Circular Letter 2013-16 dated December
13, 2013
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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 management!

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Circular Letter 2013-16 dated December 13,
2013 MDPS and the Expanded MDPS
Payment System Coverage MDS NCA and Validity Disbursement Payment to Creditors
MDPS Pilot Departments External Creditors Special MDS Needed 2 months validity LDDAP with ADA submitted to DBM Automatic Payment upon Release of NCA
Expanded MDPS All Departments Internal and External Creditors Regular MDS Part of Comprehensive Release 1 quarter validity LDDAP with ADA and Summary of LDDAP-ADA issued Submitted to GSB Automatic Payment upon Release of NCA
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Circular Letter 2013-16 dated December 13,
2013 (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
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Circular Letter 2013-16 dated December 13,
2013 (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 releases comprehensive NCA
DBM posts reports on MDPs and NCAs released on
its website
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Circular Letter 2013-16 dated December 13,
2013 (Expanded MDPS Process)
Payment of A/Ps
GSB credits NCA to Agencys MDS account
Agency submits LDDAP-ADA (with Summary of
LDDAPADA Issued) to GSB
GSB provides BTr w/ copy of Summary
of LDDAP-ADA Issued
GSB credits payment to Creditors GSB account
within 48 hours
Agency posts LDDAP-ADA nos. on website provides
to Creditors
For non-GSB/EPCS GSB effects bank transfer.
Creditor shoulders fee.
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Circular Letter 2013-16 dated December 13,
2013 (Expanded MDPS Process)
Recording of Payments
GSB provides Agency with duly validated LDDAPADA
on next banking day
Creditor issues Official Receipt to Agency
Agency records payments in its books
GSB advises Agency of non-payment due to
inconsistent information
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Circular Letter 2013-16 dated December 13,
2013 (Expanded MDPS Process)
Accountability Reporting
GSB provides BTR with copies of Summary of
LDDAPADA. Issued on the same day as receipt of
LDDAPADA from agency
Agency submits Summary Report on Disbursements by
the end of the month
GSB provides DBM with monthly report on NCAs
credited utilized by the 2nd working day
after end of the month
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Circular Letter 2013-16 dated December 13,
2013 (Correcting Typographical Errors)
GSB advises Agency of nonpayment due
to inconsistent information through
the validated LDDAP-ADA
Agency issues letter of authority to GSB for
correction
typo errors covered by circular
errors not covered by circular
Agency includes A/P in upcoming LDDAP-ADA
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Circular Letter 2013-16 dated December 13,
2013 (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
• Submit Summary Report of Disbursements by the end
  of the Month

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Circular Letter 2013-16 dated December 13,
2013 (Responsibilities and Timeline)
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

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Circular Letter 2013-16 dated December 13,
2013 (Responsibilities and Timeline)
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 on the
  same day of receipt of ADA
• Provide DBM a monthly report on NCAs credited and
  utilized by the 2nd working day following the
  month

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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)

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Circular Letter 2013-16, 2013-16A, 2013-16B Forms

• CL 2013-16 Annex A List of Due and Demandable
  Accounts Payable Advice to Debit Accounts
  (LDDAP-ADA)
• CL 2013-16 Annex C Letter of Introduction (LOI)
• CL 2013-16A Annex A Summary of LDDAP-ADAs Issued
  and Invalidated ADA Entries (SLIIE)

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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.
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CL 2013-16 Annex A List of Due and Demandable
Accounts Payable Advice to Debit
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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.
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CL 2013-16 Annex C Letter of Introduction (LOI)
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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
For MDS-GSB Copy 3 Chief Accountant (as Agency
File) Copy 4 COA Auditor
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CL 2013-16A Annex A Summary of LDDAP-ADAs Issued
and Invalidated ADA Entries
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Circular Letter 2013-16, 2013-16A,
2013-16B Effectivity

• Effective March 1,2014 (CL 2013-16A)

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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.
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Issuance Related to Conversion of UACS Codes
National Budget Circular 554 Conversion of Codes
to Conform to the Unified Accounts Code Structure
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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.
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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.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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,
  that the scholarship program shall be availed of
  through enrollment in SUCs which offer said
  courses.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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 to
  purchase and upgrade hospital equipment used
  directly In the delivery of health services.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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).

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Special Provisions

• Special Provisions Applicable to SUCs
• 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.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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 creation, conversion, or
  reclassification of positions shall not result in
  the increase in the total Personnel Services cost
  of the SUC.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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 repair of
  buildings and fabrication or repair of equipment
  shall not exceed four hours a day

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Special Provisions

• Special Provisions Applicable to SUCs
• 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.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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.

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Special Provisions

• Special Provisions Applicable to SUCs
• 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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