Funding Source Code - Unified Accounts Code Structure

Primer

I. Introduction
II. Background
III. The Unified Accounts Code Structure (UACS)
- A. UACS Definition
  - 1. What is the UACS?
- B. UACS Purpose
  - 1. What is the objective of the UACS?
  - 2. What is the key purpose of the UACS?
  - 3. What benefits will the UACS provide financial users?
  - 4. What are the reports that are best served by the UACS?
- C. UACS Application
  - 1. What are the government agencies covered by the application of the UACS?
  - 2. Are Local Government Units required to use the UACS?
- D. Responsibilities for the UACS
  - 1. Who are responsible for the administration of the UACS?
  - 2. What is the responsibility of all agencies under the UACS?
- E. The Elements of the UACS
  - 1. How many digits are the existing UACS Codes?
  - 2. Why is there a need for refinement/improvement of the UACS?
  - 3. What elements of the UACS are affected by the refinement?
  - 4. How many digits will the UACS have after the refinement?
  - 5. What are the components of Funding Source Code?
  - 6. What are the components of Organization Code?
  - 7. What are the components of Location Code?
  - 8. What are the components of MFO/PAP Code?
  - 9. What are the components of Object Code?
  - 10. What is the general rule for the assignment of UACS Codes?
  - 11. What is the status of a code at the time it is created?
  - 12. What is meant by a “deactivated code” in the UACS?
  - 13. When will a code be deactivated?
  - 14. Can a “deactivated” code be reused?
  - 15. How does the deactivated code differ from an inactive code in UACS?
  - 16. Who are authorized or responsible for the deactivation and reactivation of the UACS codes?
  - 17. If the required UACS code does not exist in the UACS Manual, is it possible to use the code classified as “Others”?
  - 18. How often are the UACS Codes updated?
- Funding Source Code
  - 1. What is a Funding Source?
  - 2. What is a Fund Cluster?
  - 3. What are the clusters of funding sources?
  - 4. In keeping the books of accounts, is it by Funding Source Code up to the lowest fund category level? Or by fund cluster?
  - 5. What is the purpose of the Financing Source Code and what is its classification?
  - 6. What is the Authorization Code and what is its classification?
  - 7. What is a Fund Category Code, and how is it classified?
  - 8. Is there a need to create different Funding Sources for the same Special Account in the General Fund (SAGF) being utilized by the different agencies?
  - 9. What is the basis for the creation or assignment of the Funding Source Code of each agency?
- Organization Codes
  - 1. In the UACS, what is considered to be a Department?
  - 2. What are the specific UACS Codes for a Department?
  - 3. In the UACS, what is an Agency, and how is it related or distinguished from a Department?
  - 4. In the UACS, what is an Operating Unit?
  - 5. What is the purpose of the UACS classification code?
  - 6. What are the specific UACS classification codes for each operating unit?
  - 7. What are the specific business rules for Organization Code under the UACS?
  - 8. Will there be a new Organization Code for a renamed organizational entity?
  - 9. Will there be a new Organization Code for schools transferred from one Division to another within the same region?
- Location Codes
  - 1. What is the use and basis of the Location Codes?
  - 2. Where can I get the complete list of Location Codes?
  - 3. What are the basic business rules for Location coding?
  - 4. Is the Legislative District included in the coding structure?
  - 5. How do we use the Location Code in the UACS?
- MFO/PAP Codes
  - 1. What is COFOG?
  - 2. Should the Sector Code be utilized for transaction capture and reporting?
  - 3. Can we change the wordings of the Sub-sector?
  - 4. What is a Horizontal Outcome in MFO/PAP?
  - 5. What are the basic business rules for MFO, Program and Activity?
  - 6. What is a Project?
  - 7. What is a Project Category?
  - 8. Is the Project Category unique to each agency?
  - 9. Is there any possibility that one project sub-category may appear in more than one project category?
  - 10. Can a Project Title be applicable to both Projects and Operations?
  - 11. Will the MFO/PAP Code be the same or is it changing every year?
  - 12. If a project or an activity is completed, can the Code be utilized for another project or activity in the succeeding year?
  - 13. What MFO/PAP Code shall be used for FY 2013 appropriation with validity extended up to December 31, 2014 (continuing appropriation)?
  - 14. When will the Project Code in the UACS be deactivated?
  - 15. What MFO/PAP will be used for the Special Purpose Fund?
- Object Code
  - 1. What is the purpose of object information in the UACS?
  - 2. What is the source and basis of object coding in the UACS?
  - 3. What is the standard used as a basis of coding in the COA Revised Chart of Accounts?
  - 4. What is the accounting basis for recording financial transactions in the national government?
  - 5. Under the UACS, how are the allotment classes of expenses categorized?
  - 6. Which agencies are responsible for disaggregation of Object Code into Sub-object Codes?
  - 7. How is the object coding for Capital Outlays being harmonized?
  - 8. How do we book the Retirement and Life Insurance Premiums (RLIP) for personal share and government share?
IV. Acronyms
V. Definition of Terms
VI. UACS MFO/PAP Element – Sector Outcome Code Values
VII. UACS MFO/PAP Element – Horizontal Outcome Code Values

1. What is a Funding Source?

Funding Source consists of financial resources of the government set aside for specific purposes to finance specific programs and projects of the government. This includes General Fund, Off-Budgetary Funds (Retained Income/Receipts and Revolving Funds) and Custodial Funds (Trust Receipts).

2. What is a Fund Cluster?

Fund Cluster is an aggregation of Funding Sources for the purpose of recording transactions and preparing report in the Budget, Treasury and Accounting processes.

The aggregation of Funding Source codes into Fund Cluster is necessary, otherwise, each Funding Source code will have its own separate books of accounts.

3. What are the clusters of funding sources?

The clusters of funding sources are:

Code Description
01 – Regular Agency Fund
02 – Foreign Assisted Projects Fund
03 – Special Accounts – Locally Funded/Domestic Grants Fund
04 – Special Accounts – Foreign Assisted/Foreign Grants Fund
05 – Internally Generated Funds
06 – Business Related Funds
07 – Trust Receipts

4. In keeping the books of accounts, is it by Funding Source Code up to the lowest fund category level? Or by fund cluster?

The maintenance/keeping of the books of accounts shall be by fund cluster, but the data capture or the recording of transactions shall be at the lowest detail possible which in this case, goes down to the fund category code level.

The proper 8-digit code shall always be utilized. This is to provide the ability to record and analyze information at various levels within the funding source.

5. What is the purpose of the Financing Source Code and what is its classification?

Financing Source Code indicates the basis of funds to which the expenditures shall be charged, identifying whether the source is within or outside the General Fund. This is classified as:

1 – General Fund
2 – Off-Budgetary Funds
3 – Custodial Funds

6. What is the Authorization Code and what is its classification?

The Authorization Code provides the legal basis of the appropriation or funds, which is classified as:

01 – New General Appropriations
02 – Continuing Appropriations
03 – Supplemental Appropriations
04 – Automatic Appropriations
05 – Unprogrammed Funds
06 – Retained Income/Funds
07 – Revolving Funds
08 – Trust Receipts

7. What is a Fund Category Code, and how is it classified?

The Fund Category Code identifies specific funds maintained by the agency for accounting purposes, as well as for recording and reporting budget, treasury and accounting transactions. This is a summary of classifications according to funding source, as follows:

Fund Category Classification and Code Table

Classification/Description	Existing NSACS Fund Code/s	UACS Fund Category Code - Series
Specific Budgets of NGAs	101	101 to 150
GoP Counterpart Funds and Loans/Grants from Development Partners	102/171	151 to 250
Allocations to Local Government Units	103	251 to 275
Budgetary Support to Government Corporations	103/104	276 to 300
Financial Assistance to MMDA		301 to 320
Special Accounts in the General Fund	105, 183, 401, 151 to 159	321 to 400
Special Purpose Funds		401 to 420
Unprogrammed Funds		421 to 440
Retained Income/Funds		441 to 500
Revolving Funds	161 to 164	501 to 600
Trust Receipts	101-184, 187	601 to 610
Others (Specify)		611 - 999

8. Is there a need to create different Funding Sources for the same Special Account in the General Fund (SAGF) being utilized by the different agencies?

No. For the SAGF used by more than one agency, only one Funding Source Code shall be used. For example, the funding source code 01104322 assigned to Agrarian Reform Fund under the DAR-OSEC shall be used by all agencies availing funds from that SAGF (i.e. DOF, DOJ).

9. What is the basis for the creation or assignment of the Funding Source Code of each agency?

The assignment of the Funding Source Code is based on representations by agencies concerned that the creation of funds, i.e., Special Accounts in the General Fund, Trust Receipts, Revolving Funds, among others, as well as the use/s thereof, are authorized by law. Accordingly, the same shall be without prejudice to the eventual determination by the DBM that the creation of said funds is without legal basis, or not in full compliance with laws, rules and regulations. The DBM is further authorized to deactivate the fund code previously assigned and deactivate the same in the UACS Manual and its Appendices and such other actions necessary in the proper administration of the Funding Source Codes.