FINANCIAL ACCOUNTABILITY REPORTING

Transcription

1 FINANCIAL ACCOUNTABILITY REPORTING by LUZ M. CANTOR ASSISTANT SECRETARY, DBM Tejeros Hall, AFP Commissioned Officers Club Camp General Emilio Aguinaldo Quezon City July 18, 2013

2 FINANCIAL ACCOUNTABILITY REPORTING

3 OUTLINE OF MY PRESENTATION PART I: FINANCIAL REPORTING 1. What is PFM? 2. Existing System versus Desired System 3. PFM Reform Roadmap 4. What do financial reports tell us 5. Uses of Financial Accountability Reporting 6. Harmonized FARS a.coa-dbm JC b.harmonization Process c.reports Covered d.harmonized Reports and their data elements 7. Responsibilities of the BO, CA, AH 8. Frequency and flow of submission 9. Next steps

4 OUTLINE OF MY PRESENTATION PART II: UNIFIED ACCOUNTS CODE STRUCTURE 1. What is UACS? 2. Purpose and Coverage 3. Key Elements Funding Source Organization Location MFO/Program, Activity and Project Object

5 PART I FINANCIAL REPORTING

6 WHAT IS PFM? Public Financial Management (PFM) is a system of rules, procedures and practices for government to manage public finances in the areas of: budgeting accounting auditing cash management management of public debt revenue generation public reporting on public sector financial operations

7 WHAT IS PFM? Public Financial Management (PFM) is a system of rules, procedures and practices for government to manage public finances in the areas of: budgeting accounting auditing cash management management of public debt revenue generation public reporting on public sector financial operations

8 FINANCIAL REPORTING NOW In the long run, the Philippine PFM needs this kind of information system

9 Budget Reforms

10 USES OF FINANCIAL ACCOUNTABILITY REPORTS DBM for monitoring the performance of agencies COA uses the data from FARS in preparing the Annual report on allotment, obligations and disbursements

11 FINANCIAL REPORTS TELL US Where the money come from Where it went Where it is now

12 Budget Reforms

13 Thinking about the future. Exciting developments, i.e., UACS, OSBPS, GIFMIS Present Situation

14 COA DBM HARMONIZED FINANCIAL ACCOUNTABILITY REPORTS (FARS) (MANUAL REPORTING) INITIALLY

15 COA-DBM Joint Circular No dated March 15, 2013 Revised Guidelines on the Submission of Quarterly Accountability Reports on Appropriations, Allotments, Obligations and Disbursements

16 Harmonization Process 1. Identification or preparation of an inventory of the existing or common reports 2. Design or harmonization of the reporting formats 3. Consultations or workshops with 10 selected departments/agencies in October 2011 (DPWH, DOST, DOE, DSWD, DENR, CSC,CHED, DOLE, DepEd and DBM) including COA 4. Validation of the proposed reports with the departments or agencies in the CO in April and May Issuance of the COA-DBM Joint Circular prescribing the use of the harmonized reports in March 2013

17 Nine (9) Reports initially covered by the harmonization effort DBM per NBC 507/ 507A (BARs) 1. Statement of Allotments, Obligations and Balances (SAOB) BAR No.4 COA per Circular Nos and SAOB 2. Detailed Breakdown of Obligations 3. Detailed Breakdown of Disbursements 2. Financial Report of Operations BAR No Monthly Report of Disbursements BAR No Regional Breakdown of Expenses 5. Statement of Cumulative Allotments, Obligations Incurred and Unobligated Balances 6. Statement of Cumulative Expenditures/ Obligations Incurred, Obligations Liquidated/ Disbursements and Unliquidated Obligations

18 Harmonized FARs 1. Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (SAAODB) List of Agency Budget Matrix (ABM)/SAROs and Sub- AROs; 2. Detailed Statement of Current Year s Obligations, Disbursements and Unpaid Obligations (SODUO-CY) 3. Summary of Prior Year s Obligations, Disbursements and Unpaid Prior Years Obligations (SODUO-PY) 4. Summary Report of Disbursements (SRD)

19 DATA ELEMENTS OF THE HARMONIZED FARS 1. SAAODB List of ABMS/SAROs and Sub-AROs; By fund, appropriation source, and by allotment class Authorized Appropriations, Adjustments and Adjusted Appropriations Allotments Received, Transfers (To/From) and Adjusted Total Allotments Obligations Disbursements Balances of: - Unreleased Appropriations - Unobligated Allotments - Unpaid Obligations 2. SODUO-CY By fund, P/A/P, allotment class, and by sub-object of expenditure CY Obligations CY Disbursements Unpaid Obligations

20 Data Elements of the Harmonized FARs 3. SODUO-PY By fund, P/A/P, allotment class, by sub-object of expenditure PY Accounts Payables PY Obligations Not Yet Due and Demandable CY Disbursements Balances of Unpaid Obligations 4. SRD By type of disbursement authority NCA, TRA, CDC and NCAA Total disbursements

21 Responsibilities Budget Officer/ Head of Budget Unit Chief Accountant/ Head of Accounting Unit Agency Head Appropriations Allotments Obligations Unobligated Allotments Unreleased Appropriations Disbursements Unpaid Obligations Approval of all FARs Ensure timely submission of accurate and reliable reports

22 Agencies DBM and COA Submission: not later than the 30 th day after the end of each quarter

23 FLOW OF SUBMISSION DBM Regional Office DBM Central Office Agency Lower OUs Field/District Offices Provincial Offices Agency Regional Office Agency Central Office CO RO OUs CO ROs CO

24 NEXT STEPS REVENUE REPORTING WILL ALSO BE HARMONIZED. PHYSICAL REPORTING TO BE DONE HAND IN HAND. THIS WILL BE THE TEMPLATE FOR REPORTS UNDER THE GIFMIS. REVISION OF THE FARS TO MAKE IT COMPLIANT WITH THE REVISED CHARTS OF ACCOUNTS.

25 Part II The Unified Accounts Code Structure (UACS)

26 Unified Accounts Code Structure What is UACS? UACS is a consolidated financial management coding framework which harmonizes the classification of government accounts and codes for budgetary and accounting transactions.

27 Purpose of the UACS To use common codes to logically identify, track and report financial transactions from the time of appropriation to the time of audit and accountability.

28 Coverage of the UACS The UACS will be used by all Departments and Agencies of the National Government including GOCCs receiving Budgetary Support from National Government and those maintaining Special Accounts in the General Fund.

29 Reporting Requirements Supported by UACS 1. Financial reports as required by the DBM and the COA, 2. Financial Statements as required by the Public Sector Accounting Standards Board of the Philippines, 3. Management reports as required by the Executive Officials and Heads of Departments and Agencies, and 4. Economic Statistics consistent with the Government Finance Statistics (GFS) Manual 2001

30 UACS Structure FUNDING SOURCE 6 digits ORGANIZATION 12 digits LOCATION 9 digits MFO/ PROGRAM ACTIVITY and PROJECT 9 digits OBJECT CODE 10 digits Financing Source 1 digit Authoriz ation 2 digits Fund Category 3 digits Department 2 digits Agency 3 digits Lower- Level Operating Unit 7 digits Region 2 digits Province 2 digits City, Municipality 2 digits Barangay 3 digits MFO/PAP Code 9 digits COA CoA Object 8 digits Sub- Object 2 digits

31 UACS Structure Funding Source Organization Location Program/ Project/Purpose Object Financing Source Department Region Program MFO/Project COA Revised Chart of Accounts Authorization Agency Province MFO/Project Category Sub-Object Fund Category Lower-Level Operating Unit City/Municipality 1 st level Activity/Project Sub Category Barangay 2 nd level Activity/Project Title

32 Funding Source Segments Funding Source 6 Digits Financing Source 1 digit Authorization 2 digits Fund Category 3 digits

33 Funding Source: Financing Particulars UACS General Fund 1 Off-Budgetary Funds 2 Custodial Funds 3

34 Funding Source: Authorization Particulars UACS New General Appropriations 01 Continuing Appropriations 02 Supplemental Appropriations 03 Automatic Appropriation 04 Unprogrammed Funds 05 Retained Income/Funds 06 Revolving Funds 07 Trust Receipts 08

35 Funding Source: Fund Category Particulars Codes Old UACS Specific Budgets of National Government Agencies to 150 GoP Counterpart Funds and Loans/Grants from Multilateral and Bilateral Institutions 102/ to 250 Allocations to Local Government Units to 275 Budgetary Support to Government Corporations to 300 Financial Assistance to Metro Manila Development Authority Special Accounts in the General Fund 105,183,401, 151 to to 400 Special Purpose Funds 401 to 420 Unprogrammed Funds 421 to 440 Retained Income/Funds 441 to 500 Revolving Funds 161 to to 600 Trust Receipts , to 610 Others (Specify) 611 to 999

36 Combined Funding Source Code Particulars Financin g Authoriz ation a. General Fund 1 New General Appropriation 01 Fund Cat = Funding Source Code Agency Specific Budget Misc. Personnel Ben Fund b. Automatic Appropriation 04 RLIP Special Account in the Gen. Fund DPWH-Special Road Support Fund

37 UACS Structure Funding Source Organization Location Program/ Project/Purpose Object Financing Source Department Region Program MFO/Project COA Revised Chart of Accounts Authorization Agency Province MFO/Project Category Sub Object Fund Category Lower-Level Operating Unit City/Municipality 1 st level Activity/Project Sub Category Barangay 2 nd level Activity/Project Title

38 Organization Code Segments Organization Code 12 Digits DEPARTMENT 2 digits AGENCY 3 digits LOWER-LEVEL OPERATING UNIT 7 digits

39 Department Code DEPARTMENT UACS Congress of the Philippines 01 Office of the President 02 Office of the Vice-President 03 Department of Agrarian Reform 04 Department of Agriculture 05 Department of Budget and Management 06 Department of Education 07 State Universities and Colleges 08 Department of Energy 09

40 Agency Code DEPARTMENT/AGENCY UACS Department of Budget and Management Office of the Secretary Government Procurement Policy Board- Technical Support Office

41 Examples of Operating Units Classification LOWER-LEVEL OPERATING UNITS CLASSIFICATION UACS Central Office 01 Staff Bureaus 02 Regional Offices/Centers for Health Development/ Regional Field Units State Universities and Colleges - Campuses 04 Provincial Offices 05 National Irrigation Administration Offices 06 Schools Division/District Offices 08 Secondary Schools 09 03

42 Lower-Level Operating Unit DEPARTMENT/AGENCY/OPERATING UNIT UACS Department of Budget and Management Office of the Secretary Central Office Regional Office I Regional Office NCR Regional Office CAR Regional Office II Regional Office III Government Procurement Policy Board- Technical Support Office

43 Organization Code Segments OSEC-DBM, Regional Office - I Digits DEPARTMENT OLD DBM UACS 06 (2 digits) AGENCY OLD OSEC-DBM UACS 001 (3 digits) LOWER-LEVEL OPERATING UNIT OLD Region I (Activity) UACS (RO-1) (7 digits)

44 Organization Code Segments EXAMPLE: DEPARTMENT From: Department of Education 07 To: Department of Trade and Industry 22 AGENCY National Book Development Board (NBDB) 002 LOWER LEVEL OPERATING UNIT UACS National Book Development Board (NBDB)

45 Organization Code Segments DEPARTMENT OF TRADE AND INDUSTRY Office of the Secretary Board of Investments Construction Industry Authority of the Philippines Construction Manpower Development Foundation Philippine Trade Training Center Product Development and Design Center of the Philippines National Book Development Board

46 UACS Structure Funding Source Organization Location Program/ Project/Purpose Object Financing Source Department Region Program MFO/Project COA Revised Chart of Accounts Authorization Agency Province MFO/Project Category Sub Object Fund Category Lower-Level Operating Unit City/Municipality 1 st level Activity/Project Sub Category Barangay 2 nd level Activity/Project Title

47 Location Code Segments Location Code 9 Digits Region 2 digits Province 2 digits City/ Municipality 2 digits Barangay 3 digits

48 Region Code REGION UACS Region I Ilocos 01 Region II Cagayan Valley 02 Region III Central Luzon 03 Region IV-A CALABARZON 04 Region IV-B MIMAROPA 17 Region V Bicol 05 Region VI Western Visayas 06 Region VII Central Visayas 07 Region VIII Eastern Visayas 08 Region IX Zamboanga Peninsula 09 Region X Northern Mindanao 10 Region XI Davao 11 Region XII SOCCSKSARGEN 12 Region XIII CARAGA 16 National Capital Region 13 Cordillera Administrative Region 14 Autonomous Region in Muslim Mindanao 15

49 Province Code PROVINCE UACS CAR - Cordillera Administrative Region Abra 01 Apayao 81 Benguet 11 Ifugao 27 Kalinga 32 Mountain Province 44

50 Municipality Code MUNICIPALITY UACS CAR - Cordillera Administrative Region Abra Bangued Bolinay Bucay Bucloc

51 Location Code

52 UACS Structure Funding Source Organization Location Program/ Project/Purpose Object Financing Source Department Region Program MFO/Project COA Revised Chart of Accounts Authorization Agency Province MFO/Project Category Sub-Object Fund Category Lower-Level Operating Unit City/Municipality 1 st level Activity/Project Sub Category Barangay 2 nd level Activity/Project Title

53 MFO/PAP Code Segments MFO/PAP Code 9 Digits Program 1 digit MFO 2 digits 1 st Level 2 digits Activity Code 2 nd Level 4 digits Project 1 digit Project Category 2 digits Project Sub-Category 2 digits Project Title 4 digits Purpose (SPF) 1 digit 1 st Level 2 digits Activity Code 2 nd Level 2 digits 3 rd Level 4 digits

54 PAP Category Programs, Projects or Purpose UACS General Administration and Support (GAS) 1 Support to Operations (STO) 2 Operations 3 Locally-Funded Projects 4 Foreign-Assisted Projects 5 Purpose 6

55 Project Category and Sub-Category Physical Infrastructure Projects Includes Buildings and Other Structures, Flood Control and Drainage, Roads and Bridges, Non-Road Transport Infrastructure, Power and Communications Infrastructure, Roads and Bridges and Water Management Non Physical Infrastructure Projects Includes Economic Development, Education, Environmental Protection, Governance, Health, Recreation Sports and Culture, Research and Development and Social Protection

56 Project Category and Sub-Category Governance 1000 General Public Services 1001 Defense 1002 Public Order and Safety 1003 Systems Development 1004 Capacity Development 1005 Governance and Accountability Improvement 1006

57 DBM Old PAP Structure

58 DBM Old PAP Structure

59 Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary PARTICULARS General Administration and Support General Administration and Support Services UACS General Management and Supervision Support to Operations Budget and Management Support Services Legal Services Information and Communications Technology Systems Services Training and Information Services Operations MFO 1: Budget Policy Advisory Services Fiscal policy research, budget planning and programming, including provision of technical secretariat services to the Development Budget Coordination Committee (DBCC) MFO 2: Budget Management Services Planning, management and monitoring of the annual budget program Evaluation, release and monitoring of funding requirements and organization, staffing and compensation proposals of National Government Agencies, including State Universities and Colleges, GOCCs and LGUs

60 Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary PARTICULARS CONTINUED UACS MFO 3: Organizational Productivity Enhancement Services Policy formulation and standards-setting, and evaluation of agency proposals Internal control systems and procedures towards productivity improvement Major organization and staffing modification, compensation and position classification MFO 4: Performance Review and Evaluation Services Financial and physical performance review and evaluation Locally-Funded Projects Governance Governance and Accountability Improvement Budget Improvement Project Philippine Government Electronic Procurement Systems - PhilGEPS

61 UACS Structure Funding Source Organization Location Program/ Project/Purpose Object Financing Source Department Region Program MFO/Project COA Revised Chart of Accounts Authorization Agency Province MFO / Project Category Sub-Object Fund Category Lower-Level Operating Unit City/Municipality 1 st level Activity/Project Sub Category Barangay 2 nd level Activity/Project Title

62 Object Code Segments UACS Object Code 10 Digits COA Revised Chart of Accounts 8 digits Sub-Object 2 digits

63 COA Chart of Accounts Substantially revised to consolidate some line items, add clarity to overall structure and to facilitate compliance with the Philippine Public Sector Accounting Standards (PPSAS) Expanded account code structure from the 3-digit (2003) to 8-digit (2014) coding framework Account Group Description Code Assets 1 Liabilities 2 Equity 3 Income 4 Expenses 5

64 Object Code Every item on the COA s Revised Chart of Accounts included Sub-Object codes added to meet DBM, BTr, DoF & COA reporting requirements Capital Outlay codes added in correspondence with relevant COA s Revised Chart of Accounts Asset Codes Some Lump-Sum Codes added for use prior to transfer to Departments

65 Starting Point COA s Revised Chart of Accounts 5 Expenses 5 01 Personnel Services Salaries and Wages Salaries and Wages - Regular Salaries and Wages - Casual/Contractual Other Compensation Personal Economic Relief Allowance (PERA) Representation Allowance Transportation Allowance Clothing/Uniform Allowance Subsistence Allowance Laundry Allowance Quarters Allowance Productivity Incentive Allowance Overseas Allowance Honoraria Hazard Pay Longevity Pay Overtime and Night Pay Year End Bonus Cash Gift Other Bonuses and Allowances

66 Sub-Object Codes Expenses Personnel Services Salaries and Wages Salaries and Wages - Regular Basic Salary - Civilian Base Pay - Military/Uniformed Personnel Salaries and Wages - Casual/Contractual Other Compensation Personnel Economic Relief Allowance (PERA) PERA - Civilian PERA - Military/Uniformed Personnel Representation Allowance Transportation Allowance Transportation Allowance RATA of Sectoral/Alternate Sectoral Representatives

67 New Codes for Capital Outlays Capital Outlays Investment Outlay Investment in Government-Owned and/or Controlled Corporations Investment in Associates Loans Receivable Accounts Outlay Loans Receivable - Government-Owned and/or Controlled Corporations Loans Receivable - Others Investment Property Outlay Land and Buildings Outlay Investment Property Land Investment Property Buildings Property, Plant and Equipment Outlay Land Outlay Land

68 68