COA REVISED CHART OF ACCOUNTS

1. COA REVISED CHART OF ACCOUNTS

2. OUTLINE • Legal Basis • Objectives • Major Changes • Account Code Structure • Account Groups • New Accounts

3. OUTLINE • Major Changes • Deleted Accounts • Compressed Accounts • Expanded Accounts

4. OUTLINE • The Revised Chart of Accounts as Object Code in the UACS • Purposes of Object Classification and Object Coding • UACS Structure

5. Outline • Object Code Structure in UACS ▫ Account Code Structure ▫ Sub-Object Code • Object Coding Examples ▫ Assets and Income ▫ Expenditures (PS, MOOE & CO) • Comparison of Income, Expense and Selected Asset Accounts

6. LEGAL BASIS COA Circular No. 2013-002 dated January 30, 2013 Effective Date : January 1, 2014

7. OBJECTIVES • To provide new accounts for the adoption of the Philippine Public Sector Accounting Standards (harmonized with IPSAS) • To provide uniform accounts for national government accounting and budget systems to facilitate the preparation of harmonized financial and budgetary accountability reports

8. OBJECTIVES • To expand the account code from three (3) digits in the NGAS Chart of Accounts to eight (8) digits, to allow expansion or creation of new accounts as may be necessary to implement new standards or policies and provide up to four levels of consolidation depending on the users’ information needs.

9. MAJOR CHANGES • Coverage is limited only to all national government agencies and GOCCs receiving funds constituted as SAGF from the National Government • Expanded account code structure - from three (3) digits to eight (8) digits

10. COA Revised Chart of AccountsACCOUNT CODE STRUCTURE

11. COA Revised Chart of Accounts ACCOUNT GROUPS Codes are assigned to account groups to facilitate location of accounts in the general and subsidiary ledgers, to provide systematic arrangement and classification of accounts and facilitate preparation of the consolidated financial reports as follows: CodeAccount Groups 1 Assets 2 Liabilities 3 Equity 4 Income 5 Expenses

12. ASSET WITHOUT CONTRA ACCOUNT Ex. Cash, Collecting Officer

13. ASSET WITH CONTRA ACCOUNT Ex. Accounts Receivable 10301010 Asset Receivables Loans and Receivable Accounts Accounts Receivable General Ledger Contra-Account

14. ASSET CONTRA ACCOUNT Ex. Allowance for Impairment – Accounts Receivable 10301011

15. MAJOR CHANGES c.New accounts were provided for the implementation of the Philippine Public Sector Accounting Standards.

16. NEW ACCOUNTS Example:

17. NEW ACCOUNTS 1 01 04 010 Cash-Treasury/Agency Deposit, Regular 1 01 04 020 Cash - Treasury/Agency Deposit, Special Account 1 01 04 030 Cash - Treasury/Agency Deposit, Trust

18. MAJOR CHANGES d.Some accounts were deleted since these accounts are for use by local government units or government-owned and/or controlled corpora-tions, while other accounts are no longer applicable to national government agencies.

19. DELETED ACCOUNTS Example:

20. MAJOR CHANGES e.Some accounts were either expanded or compressed. For instance, expense accounts for repairs and maintenance and depreciation of property, plant and equipment which were previously presented per asset account were compressed based on the major account classification.

21. COMPRESSED ACCOUNTS Example: 811 Repairs and Maintenance - 5 02 13 040 Repairs and Office Buildings Maintenance- 812 Repairs and Maintenance - Buildings and Other School Buildings Structure 813 Repairs and Maintenance - Hospitals and Health Centers 814 Repairs and Maintenance - Market and Slaughterhouses 815 Repairs and Maintenance - Other Structures

22. COMPRESSED ACCOUNTS Example: 811 Depreciation-Office 5 05 01 040 Depreciation - Buildings Buildings and 812 Depreciation-School Other Structures Buildings 813 Depreciation-Hospitals and Health Centers 814 Depreciation-Market and Slaughterhouses 815 Depreciation-Other Structures

23. Repairs and Maintenance – Buildings and Other Structures • Subsidiary Ledgers: 01 - Buildings 02 - School Buildings 03 - Hospitals and Health Centers 04 - Markets 05 - Slaughterhouses 06 - Hostels and Dormitories 99 - Other Structures

24. Depreciation - Buildings and Other Structures5-05-01-040 • Subsidiary Ledgers: 01 - Buildings 02 - School Buildings 03 - Hospitals and Health Centers 04 - Markets 05 - Slaughterhouses 06 - Hostels and Dormitories 99 - Other Structures

25. EXPANDED ACCOUNT Example: 716 Subsistence, Laundry 5 01 02 050 Subsistence and Quarters Allowance Allowance 5 01 02 060 Laundry Allowance 5 01 02 070 Quarters Allowance

26. EXPANDED ACCOUNTMDS ACCOUNT Example: • Cash - National 1 01 04 040 Cash-Modified Disbursement Treasury, Modified System (MDS), Regular Disbursement System (MDS) 1 01 04 050 Cash-Modified Disbursement System (MDS), Special Account 1 01 04 060 Cash-Modified Disbursement System (MDS), Trust

27. The Revised Chart of Accounts As Object Code in theUnified Account Code Structure Republic of the Philippines COMMISSION ON AUDIT DEPARTMENT OF BUDGET AND MANAGEMENT DEPARTMENT OF FINANCE

28. Purposes of Object Classification and Coding To capture all financial transactions such as goods or services acquired, payments made, revenue sources and the causes of increases or decreases in assets and liabilities. To enable the classification and coding of transactions for reporting of impact of government revenues and expenditures on the economy as well as internal departmental analysis and decision-making by oversight agencies.

29. Purposes of Object Classification and Coding 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 respond to individual requests. Provides a basis for coding the object classification which uses accrual accounting requiring transactions to be recorded in the period when they occur and not only when cash or equivalents are received or paid.

30. The Unified Account Code Structure

31. Object Code Structure in UACS 31

32. Account Code Structure in UACS • Generally, the account code structure below shall be followed. 32

33. Sub-Object Code • If disaggregation is necessary, sub object codes of two digits shall be used to show the breakdown of selected assets, income and expenses, otherwise, two zeros will be used. The responsibility for disaggregation and sub-coding of the following accounts are as shown below. 33

34. Object Coding Examples with Sub-Codes • Example of accounts with sub-codes required by the Bureau of the Treasury 34

35. Object Coding Examples with Sub-Codes • Example of accounts with sub-codes required by the Bureau of the Treasury 35

36. Object Coding Examples with Sub-Codes • Example of accounts with sub-codes required by the Bureau of the Treasury 36

37. Object Coding Examples with Sub-Codes • Example of accounts with sub-codes required by the Bureau of Internal Revenue 37

38. Object Coding Examples with Sub-Codes • Example of accounts with sub-codes required by the Bureau of Internal Revenue 38

39. Object Coding Examples without Sub-Codes • Example of asset accounts without sub-codes 39

40. Object Coding Examples without Sub-Codes • Example of asset accounts without sub-codes 40

41. Expenditure Coding • “Major Account Code” in the COA Revised Chart of Accounts coding structure shall be replaced with “Expenditure/Allotment Code” with “0” prefix as follows: 41

42. Expenditure/Allotment Codes

43. Coding Examples for Personnel Services

44. Coding Examples for Personnel Services

45. Coding for Maintenance and Other Operating Expenses (MOOE) • In budget reporting, the appropriate expense codes shall be used from the time of budget appropriation until disbursement although these may be initially recognized as assets in the books of accounts: Example:

46. Coding Examples for MOOE

47. Coding for Capital Outlays • The following shall be used for budget reporting, from the time of budget appropriation until disbursements:

48. Coding for Capital Outlays • Cont. Capital Outlays

49. Coding for Capital Outlays • Cont. Capital Outlays