Object Code

The object information provides a method for classifying and coding transactions to enable the reporting of information (including the impact of government revenues and expenditures on the economy), as well as the nature and standard classification of transactions for internal departmental analysis, as well as for decision-making purposes of oversight agencies.

In addition, the object coding in the information system provides a repository of government-wide information, which can be used by oversight agencies without requiring departments and agencies to submit additional reports.

The Object Codes in UACS is based on the Revised Chart of Accounts for National Government Agencies, of the Commission on Audit as adopted under COA Circular No. 2013-002 dated January 30, 2013, and COA Circular No. 2014-003 dated April 15, 2014.

The COA Revised Chart of Accounts is based on the PPSAS as adopted from the IPSAS.

The basis for accounting for financial transactions of the national government is accrual basis, which requires transactions to be recorded in the period when they occur (and not only when cash or its equivalent is received or paid). Therefore, the transactions and events are recorded in the accounting records and recognized in the financial statements of the periods to which they relate.

The 3^rd digit of the Object Code defines the allotment classes of expenses. These are categorized as follows:

PARTICULARS	UACS CODE
Personnel Services	1
Maintenance and Other Operating Expenses	2
Financial Expenses	3
Direct Costs (manufacturing and trading)	4
Non-Cash Expenses	5
Capital Outlays	6

Accounts	Agency Responsible for Disaggregation
Cash in Bank	BTr
Taxes	BIR
Import Duties	BOC
Non-Tax Revenues	DOF and BTr
Personnel Services	DBM
MOOE	DBM and COA
Financial Expenses	DBM and COA
Capital Outlays	DBM and COA

From the time of budget appropriation until funds are disbursed, the relevant amounts of allotment, cash release, and obligations should be processed in capital outlay accounts, such as one of the accounts for infrastructure capital outlays. The full list appears at the end of the expenditure code listing in Appendix C.5.6 of the UACS Manual.

In accordance with accrual accounting principles, the expenditure should be recognized as an asset in the form of infrastructure construction in progress at the point of disbursement. This process is intended to be automated in GIFMIS so that the spending is shown as capital outlays in DBM management reports, and as capital outlays in the cash flow statement, but as an asset in the Statement of Financial Position/Balance Sheet and not disclosed in the Operating Statement/Profit and Loss Statement/Income and Expense Statement.

Once the project is completed, the infrastructure construction in progress account would be cleared (i.e., credited) and a Public Infrastructure Asset recognized, such that, an asset account (like Road Networks) is debited.

For RLIP, the personal share must be a proper charge against regular Personnel Services (PS) budget of the agency under Funding Source Code 01101101 and Object Code 5010101001 for Salaries. But the Government Share must be charged to the Automatic Appropriation on RLIP, with Funding Source Code 01104102 and the Object Code 5010301000.