1. What is COFOG?
Developed by the Organization for Economic Cooperation and Development (OECD), the Classification of the Functions of Government (COFOG) classifies government expenditure data from the System of National Accounts by the purpose for which the funds are used. The first-level COFOG splits expenditure data into 10 "functional" groups or sectors of expenditures (such as defense, education and social protection), and second-level COFOG further splits each first-level group up to twelve sub-groups.
A Sector/Sub-sector Classification is derived from the COFOG, which are the internationally-recognized sectors for Outcome.
A complete list of the Sector/Sub-sector Outcomes is provided in Part VI of this Primer.
2. Should the Sector Code be utilized for transaction capture and reporting?
No. The sector code should never be utilized. All MFO/PAPs are required to have Sub-sector Outcome Code Value.
The Sub-sector is automatically related to the sector group.
3. Can we change the wordings of the Sub-sector?
No, these are the internationally-defined sub-sectors and the description of each sub-sector is fixed.
4. What is a Horizontal Outcome in MFO/PAP?
The Horizontal Outcome is a specific program implemented with the aim of achieving common policy objectives among government agencies.
A complete list of Horizontal Outcomes is provided in Part VII of this Primer.
5. What are the basic business rules for MFO, Program and Activity?
The basic rules for MFO, Program and Activity are:
- The first program is General Administration and Support (GAS), which consists of activities involving the provision of overall administrative management support to the entire agency operation. This includes general management and supervision, legislative liaison services, human resource development, and financial and administrative services, among other related services. Funds provided for GAS are management overhead expenses and are, therefore, indirect costs of delivering MFOs.
- The second program is Support to Operations (STO), which consists of activities that provide technical and substantive support to the operations and projects of the department/agency. These include planning and policy formulation, program monitoring and evaluation, public information programs, research and development, statistical services and information systems development, among other related functions. The types of services included under STO are common across agencies, and are considered indirect costs of delivering MFOs. Some agencies, however, do not have a program for STO.
- The third program is Operations, which consists of activities directed at fulfilling the department or agency mandate.
- Any reference to location (such as Region or Division) or implementing unit (such as schools) must not appear in the descriptions for PAP codes, as they do not comply with the definitions in the OPIF Reference Guide for MFOs, programs, activities, and projects. Coding for Regional Offices or the DepEd’s Division Offices and Secondary Schools is managed under the operating unit segment of organization coding.
- For presentation purposes in the NEP/GAA, projects and SPFs shall not be attributed to a particular MFO.
6. What is a Project?
For UACS purposes, a Project is defined as special agency undertakings which are to be carried out within a definite time frame and are intended to result in some pre-determined measure of goods and services.
7. What is a Project Category?
For UACS purposes, a Project Category is defined as a classification or group of projects having common qualities. This is divided into 1) Physical Infrastructure which is composed of interrelated systems and facilities providing commodities and essential services that house and transport people and goods to enable, sustain, or enhance societal living conditions; and 2) Non-Physical Infrastructure which refers to the services of government agencies that are required to maintain the economic, health, and cultural and social standards of a country, such as the financial system, the education system, the health care system, the system of government, and law enforcement, as well as emergency services.
The list of project categories and their respective codes are the following:
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Project Category
|
UACS Code
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Physical Infrastructure
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|
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Buildings and Other Structures
|
01
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Flood Control and Drainage
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02
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Non-Road Transport Infrastructure
|
03
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Power and Communication Infrastructure
|
04
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Roads and Bridges
|
05
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Water Management
|
06
|
|
|
|
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Non Physical Infrastructure Projects
|
|
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Economic Development
|
07
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Education
|
08
|
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Environmental Protection
|
09
|
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Governance
|
10
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Health
|
11
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Recreation, Sports and Culture
|
12
|
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Research and Development
|
13
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Social Protection
|
14
|
Additional project category may be added as the need arises following the UACS Administration Procedures.
8. Is the Project Category unique to each agency?
No, it is not unique to each agency. Each department/agency may utilize the Project Categories depending on its mandate.
9. Is there any possibility that one project sub-category may appear in more than one project category?
Yes. The Housing sub-category does appear under both Buildings and Other Structures, and Social Protection. Housing projects for government employees should be categorized as Buildings and Other Structures, while housing projects for displaced persons should be categorized as Social Protection.
The complete list of sub-categories is found in Chapter 4.4.2 of the UACS Manual.
10. Can a Project Title be applicable to both Projects and Operations?
Yes. If the activity involves implementation of projects but is not part of the agency’s mandate, it is part of Projects. If the project is part of the agency’s MFO, it is used as the second level activity under Operations.
11. Will the MFO/PAP Code be the same or is it changing every year?
Generally, if there is no change in the description, which means the same activity is being done or funded from year to year, the MFO/PAP Codes to be utilized in subsequent years must be the same as the previous year. However, if the activity or a project is new, a new Code shall be created.
12. If a project or an activity is completed, can the Code be utilized for another project or activity in the succeeding year?
No. Codes of projects or activities that are completed, terminated or rescinded for whatever reason should not be utilized for any other purpose. In this case, the Code shall be deactivated in the system to avoid usage, but may be reactivated for the original purpose, when necessary.
13. What MFO/PAP Code shall be used for FY 2013 appropriation with validity extended up to December 31, 2014 (continuing appropriation)?
For continuing appropriation of FY 2013, the 2014 MFO/PAP Code shall be used if the description of a PAP is the same or does exist in the 2014 budget of an agency; otherwise there is a need to request for the creation of a new MFO/PAP for the FY 2013 appropriation to be utilized in 2014.
14. When will the Project Code in the UACS be deactivated?
In some instances, where a project is cancelled or terminated or for whatever valid reason, can no longer be continued, the UACS code for such projects should be deactivated. For specific projects to be deactivated, the agencies must make a request to DBM.
15. What MFO/PAP will be used for the Special Purpose Fund?
Special Purpose Funds (SPFs) are lump-sum funds included in the GAA which are not within the approved appropriations of departments/agencies/lower level operating units, and which are available for allocation to any department/agency/lower level operating unit or local government unit for a specific purpose, as may be duly approved in accordance with the Special Provisions on the use of such funds.
The MFO/PAP Code(s) to be used for the SPFs shall be determined by the DBM, subject to the UACS Administration Procedures on updating the UACS repository.
