Chapter 2

The Unified Accounts Code Structure

According to Joint Circular No. 2013-1 , dated August 6, 2013, the Department of
Budget and Management (DBM), Commission on Audit (COA), Department of
Finance (DOF), and Bureau of Treasury (BTr) jointly developed the Unified
Accounts Code Structure (VACS), a government-wide coding framework, to provide
a harmonized budgetary and accounting code classification that will facilitate the
efficient and accurate financial reporting of actual revenue collections and
expenditures compared with programmed revenues and expenditures, respectively,
starting Fiscal Year (FY) 2014.

On November 7, 2014, through Joint Circular No. 2014-1, the UACS per Joint
Circular No. 2013-1 dated August 6, 2013 was enhanced amending the Funding
Source Code and MFO/PAP Code.

Purpose of UACS

The Unified Accounts Code Structure (UACS) is a government-wide harmonized

budgetary, treasury, and accounting code classification that will facilitate reporting of
all financial transactions of government agencies. Its objective is to establish she
accounts and codes needed in reporting the financial transactions of the National
Government Agencies; and therefore, will be used by all departments and agencies of
the National Government and Government-Owned and/or Controlled Corporations
(GOCC) with Budgetary Support from National Government including those
maintaining Special Accounts in the General Fund. It provides a framework for
identifying, aggregating and reporting financial transactions in budget preparation,
execution, accounting and auditing. When this object coding is combined with budget
classification coding for finding source, organization, location and program, this
framework collectively provides the harmonized budgetary and accounting
classification codes know as UACS.
 Chapter 2— The Unified Accounts Code Structure 25
Chapter 2— The Unified Accounts Code Structure
24

5. Object Code (10 digits)

The key purpose of the UACS is to enable the timely and accurate reporting of actual Revised Chart of Accounts (8-digit code)
revenue collections and expenditures against budgeted programmed revenues and Sub-Object Code (2-digit code)
expenditures.
Reporting requirements that will be best served by the UACS include:
Financial reports as required by the DBM and COA.
Key Elements of UACS
Financial statements as required by the Public Sector Accountfng Standards
Board of the Philippines. The key elements of UACS are as follows:
Management reports as required by the executive officials/heads of
departments and agencies; and Funding Source Codes
Economic statistics consistent with the Government Finance Statistics (GFS) 1.
Manual 2001. It is a six-digit code to reflect the Financing Source, Authorization, and
Fund Category. However, per Joint Circular No. 2014-1 dated November
To facilitate the discussions of UACS, its composition, broken down in five key 7, 2014, the 6-digit Funding Source Code was enhanced by adding
elements, is presented below: another two digits code for the Fund Cluster for purposes of accounting,
banking, and reporting; thus, it becomes eight digits.
1. Funding Source (8 digits)
Fund Cluster (2-digit code)
Financing Source (1-digit code)
a. Fund Cluster Code Values
Authorization Code (2-digit code)
Fund Category (3-digit code) The Fund Cluster Code Values, as provided by Joint Circular No.
2014-1, were as follows:
2. Organization Code (12 digits)
Department Code (2-digit code)
Fund Cluster
Agency Code (3-digit code) Fund Cluster Description
Code
Operating Unit Classification (2-digit code) • .
01 - Regular Agency Fund
Lower Level Operating Unit (5-digit code)
02 Foreign Assisted Project Fund
03 Special Accounts — Locally Funded/Domestic
3. Location Code (9 digits) Grants Fund
Region (2-digit code) Special Accounts — Foreign Assisted/Foreign
Province (2-digit code) 04
Grants Fund
City/Municipality (2-digit code)
05 Internally Generated Funds
Barangay (3-digit code)
06 Business Related Funds
07 Trust Receipts
MFO/PAP (15 digits)
Sector/Horizontal Outcomes (5-digit code)
Program/Project (1-digit code)
MFO/Project Category (2-digit code)
Activity Level 1/Project Sub-Category (2-digit code)
Activity Level 2/Project Title (5-digit code)
 Chapter 2 -L The Unified Accounts Code Structure Chapter 2— The.Unified Accounts Code Structure 27
26

New General Appropriations are annual authorizations for incurring

b. Financing Source Code:
obligations, in terms of specific amounts for Personnel Services (PS),
PARTICULARS UACS Maintenance and Other Operating Expenses (MOOE), Financial
1 Expenses (FinEX), and Capital Outlays (CO), during a specified
General Funds
2 budget year, as listed in the General Appropriation Act (GAA).
Off-Budgetary Funds
Custodial Funds 3
Continuing Appropriations are authorizations to support obligations
for a specified purpose or project, even when these obligations are
General Funds are funds available for any purpose that Congress may
incurred beyond the budget year. Because Maintenance and Other
choose to apply, and composed of all receipts or revenues that do not
Operating Expenses and Capital Outlays appropriations are valid for
otherwise accrue to other funds. two (2) years, unobligated and unreleased appropriations for these
budget items are valid until the end of their second year and are
Off-Budgetary Funds refer to receipts for expenditure items that are
classified as Continuing Appropriations.
not part of the National Expenditure Program, and which are
authorized for depositing in government financial institutions: These
Supplemental Appropriations are additional appropriations enacted by
are categorized into: 1.) Retained Income/Receipt, and 2.) Revolving
Congress to augment original appropriations that have proven
Funds. insufficient for their intended purpose because of economic, political
or social conditions. It must also be supported by a certification of
Custodial Funds refer to receipt of cash received by any government
availability of funds by the BTr.
agency, whether from a private source or another government agency,
to fulfill a specific purpose. Custodial receipts include receipts
Automatic Appropriations are authorization made annually or for some
collected as an agent for another entity. These include trust receipts,
other periods prescribed by law, by virtue of standing legislation,
both from an individual or corporation, that are required to be held by
which do not require periodic action by the Congress. These are
government until the outcome of a court's case or procurement activitY
automatically and annually included in the National Expenditure
is determined, as well as a department or agency acted as a trustee for
Program of the National Government, (e.g., Retirement and Life
the fulfillment of some obligations. Insurance Premiums; Pension under R.A. No. 2087, as amended by
P.D. No. 1625 and R.A. No. 5059; Domestic Grant Proceeds; Custom
duties and Taxes, including tax expenditures; Internal Revenue
c. Authorization Code Allotment; etc.)
PARTICULARS UACS
01 Unprogrammed Funds are standby appropriations for priority program
New General Appropriations or project of the government. The utilization of these funds may be
Continuing Appropriations 02
approved if any of the following conditions are met:
Supplemental Appropriations 03
Revenue collections for the year exceed targets;
Automatic Appropriations 04
New revenues not included in the original revenue targets are
Unprogrammed Funds 05
successfully generated; or
Retained Income/Funds 06
Foreign loan proceeds are generated for newly approved projects
Revolving Funds 07
covered by perfected loan agreements.
Trust Receipts 08
 Chapter 2— The UnOed Accounts Code Structure 29
28 Chapter 2— The Unified Accounts Code Structure

GoP Counterpart Funds and Loans/Grants from Development Partners

Retained Income/Funds are collections that are authorized by law to be
used directly by agencies for their operation or specific purpose. These
include but are not limited to receipts from following:
State Universities and College - tuition and matriculation fees and
other internally generated receipts.
Department of Health — hospital income.
Revolving Funds are receipts derived from business-type activities of
departments/agencies as authorized by law, and which are deposited in
an authorized government depository bank. These funds shall be self-
liquidating. All obligations and expenditures incurred, due to these
business-type activities, shall be charged against the Revolving Funds.
Trust Receipts are receipts that are officially in the possession of
government agencies or a public officer as trustee, agent, or
administrator, or which have been received for the fulfillment of a
particular obligation.
refer to the Multilateral/Bilateral Assistance. The fund category for
counterpart funds, loan proceeds and grants proceeds will be selected
according to the name of the institution providing funds from the list
provided by UACS manual. Furthermore, the preceding authorization
code will vary depending on whether finds were loans or grants, as
well as if they were unprogrammed or included in the regular budget.
Appropriated loan proceeds will use authorization Code 01, grant
proceeds will use authorization Code 04 and unprogrammed loan
proceeds will use authorization Code 05.
Allocation to LGU (ALGU) refers to the share of LGU from the
revenue collections of the National Government. The total ALGU is
based on a sharing scheme computed for each LGU, as provided for
under the Local Government Code and other special laws.
Budgetary Support to Government Corporations refers to either
subsidies for operations or projects, equity contributions, and net
lending and/or advances to GOCC for loan repayments.

d. Fund Category Code Financial Assistance to MMDA refers to national government subsidy
in the form of regular appropriation as provided in the General
PARTICULARS UACS
Appropriation Act (GAA) which shall only be used to augment any
Specific Budgets of National Government Agencies 101 to 150 deficiency in the consolidated funds of the MMDA to cover valid and
GoP Counterpart Funds and Loans/Grants from authorized expenditures.
Development Partners 151 to 250
Allocations to Local Government Units 251 to 275 Special Accounts in the General Fund (SAGF) is a fund where
Budgetary Support to Government Corporations 276 to 300 proceeds from specific reyenue measures and grants earmarked by law
Financial Assistance to MMDA 301 to 320 for priority projects are tecorded and are automatically appropriated.
Special Accounts in the General Fund 321 to 400
Special Purpose Funds 401 to 420 Special Purpose Funds are lump-sum funds included in the GAA
Unprogrammed Funds 421 to 440 which are not within the approved appropriations of
Retained Income/Funds 441 to 500 departments/agencies/lower level operating units, and which are
Revolving Funds 501 to 600 available for allocation to any department/agency/lower level
Trust Funds 601 to 610 operating unit or LGU for a specific purpose, as may be duly approved
Others (Specify) 611 to 999 in accordance with special provisions on the use of these funds.

Specific Budget of National Government Agencies refers to the budget (NOTE: For the Unprogrammed Funds, Retained Income/Funds, and
appropriated for a specific department or agency of the National Trust Funds, see the preceding Authorization Code topic.)
Government.
 Chapter 2— The Unified Accounts Code Structure 31
Chapter 2 The Unified Accounts Code Structure
30

The first digit of the Funding Source indicates whether the expenditure Department of Science and Technology 19
is sourced inside or outside the general fund, which is the case for all Department of Social Welfare and Development 20
budgeted spending and continuing or automatic appropriation. The Department of Tourism 21
Department of Trade and Industry 22
next two digits (2"d and 31d ) are for Authorization. And the last three
Department of Transportation and Communication 23
digits (4th to 6th) are for the Fund Category, which identifies specific
fund maintained by the agency for accounting purposes, as well as for .National Economic and Development Authority 24
recording and reporting financial transactions. Presidential Communications Operations Office 25
Other Executive Offices 26
Autonomous Region in Muslim Mindanao 27
2. Organization Codes Joint Legislative-Executive Councils 28
The Judiciary 29
It is a twelve-digit code to reflect the Department, Agency and Sub-Agency
Civil Service Commission 30
or Operating Unit/Revenue Collecting Unit.
Commission on Audit 31
Commission on Elections 32
a. Department Codes Office of the Ombudsman 33
It is priinary subdivision of the Executive Branch responsible for the Commission on Human Rights 34
overall management of a sector or a permanent national concern with Budgetary Support to Government Corporations 35
nationwide or international impact. A department is headed by a Financial Assistance to MMDA 36
Secretary or an office with an equivalent position level.
The first two digits (1" and 2"d) represent the Department Code. For
DEPARTMENTS UACS purposes of the UACS, Constitutional Offices, the Judiciary and the
Congress of the Philippines 01 Legislature are categorized as department-level entities. There are also
Office of the President 02 department-level entities that are likewise considered as operating
03 units, as in the case of the Commission on Audit, Commission on
Office of the Vice-President
04 Human Rights, etc. Moreover, a department includes the summation of
Department of Agrarian Reform
05 all the budgets of all its attached agencies and sub-agencies, including
Department of Agriculture
06 the Office of the Secretary (Proper) and lower-level operating units
Department of Budget and Management
07 listed under it.
Department of Education
State Universities and Colleges 08
Department of Energy 09
10 b. Agency Codes
Department of Environment and Natural Resources
Department of Finance 11
It refers to any of the various units of the government, including an
Department of Foreign Affairs 12-
office, instrumentality or GOCC that may not approximate the size of a
Department of Health 13
department; but which nevertheless performs tasks that are equally
Department of the Interior and Local Government 14 important and whose area of concern is nationwide in scope.
Department of Justice 15
Department of Labor and Employment 16 The next three digits (3rd to 5th) are for the Agency Code. For purposes
Department of National Defense 17 of the UACS, an agency is an entity under a department whose budget
Department of Public Works and Highways 18
 Chapter 2— The Unified Accounts Code Structure Chapter 2— The Unified Accounts Code Structure 33
32

Schools Division/District Offices — DepEd 08

is directly released to the latter, and may include the summation of all
Secondary Schools — DepEd/Campuses — PSHS 09
budgets of sub-agencies listed under it, if any.
Collection Districts** — BOC 10
(Note: The complete list of government agencies and its codes is Revenue Regional Offices*- BIR 11
composed of no less than 65 pages and has consequently not included Revenue District Offices - B1R 12
in this book To obtain the code for any government agency, please Embassies/Consulates General/Manila and Regional
access the UACS Appendices at DBM website.) Consular Offices — DFA 13
Special/Retained Hospitals — DOH 14
' Treatment and Rehabilitation Centers — DOH 15
Technical/Vocational Schools — TESDA 16
c. Operating Unit Classification Codes
Key Budgetary Units — DND 17
Operating Units are organizational entities charged with carrying out District Engineering Offices and Sub-District
specific substantive functions or with directly implementing Engineering Offices - DPWH 18
programs/projects of a department or agency, such as line bureaus and Land Transportation Offices — DOTC 1 19
field units. Land Transportation Franchising and Regulatory
Board — DOTC 20
The next seven digits (011 to 12th) are for Operating Unit Classification Regional Development Councils —NEDA 21
Code. For purposes of the UACS, Operating Units are organizational Autonomous Region in Muslim Mindanao 22
units under a department or an agency, which rimy *An operating unit, as well as a revenue collecting unit
1.Directly receiving budgets from DBM, including State **A revenue collecting unit, but not an operating unit.
Universities and Colleges;
2. Recipients of fund transfers from higher level operating units; (Note: The complete list of the individual Lower-Level Operating Units
and/or and its codes is composed of no less than 65 pages and has
3. Authorized to collect revenues. consequently not included in this book To obtain the code for any
Lower-Level Operating Units, please access the UACS Appendices at
The fir st two digits of Operating Unit Codes will be used to indicate DBM Webs ire.)
the classification of an operating unit; while the next five digits refer to
the assigned code for the individual lower-level operating units. Staff Bureau is a principal subdivision of a department which primarily
performs policy, program development, and advisory functions.
OPERATING UNITS UACS
01 Regional Office (RO) is an organizational subdivision, headed by a
Central Office
02 Regional Director, who is responsible for the performance of an
Staff Bureaus
Department/Agency Regional Offices/Centers for entity's functions within a region. In effect, an RO . is a miniature
Health Development/Regional Field Units - DA 03 department or agency and is responsible for all activities in the area
State Universities and Colleges — Campuses 04. under its jurisdiction.
Provincial Offices — DAR and DENR 05 '
National Irrigation Administration Regional Offices — CDA Extension Office is a unit established in each of the country's
DA 06 regions or as may be necessary, as well as financially viable for
Extension or Field Offices — CDA-DOF/Penal implementing integrated and comprehensive plans and programs on
Colonies - BUCOR 07 cooperative development.

Chapter 2 — The Unified Accounts Code Structure
Schools Division (DepEd) is a unit established in each province or city
with at least 750 public elementary and secondary school teachers,
including Head Teachers and Principals. It is headed by a School
Superintendent.
DepEd Secondary School is a learning institution that offers a six-year
secondary course and is supervised by either, a Teacher-in-Charge, a
Head Teacher or a Principal.
Technical Education and Skills Development Authority (TESDA)
Technical/Vocational School is a unit that offers non-degree program
at the post-secondary education level leading to skill proficiency-
oriented courses. Each TESDA Technical/Vocational School is headed
by a Vocational School Administrator.
DFA Consular Offices are units established locally and abroad, and
which are responsible for delivering front-line foreign affairs services,
including those related to passports, visas and the legalization of
documents.
Customs Collections Districts (BOC) are units headed by a District
Collector of Customs and are composed of one Principal Port of Entry.
A Customs Collection District shall have as many sub-ports as
necessary to maximize revenue collections and prevent smuggling and
other forms of customs fraud.
Revenue Regional Offices (RROs) [BIM are units headed by a
Regional Director, RROs administer and enforce internal revenue laws
in a region, including the assessment and collection of all internal
revenue taxes, charges and fees from taxpayers within the region's
jurisdiction.
Revenue District Offices (RD0s) [BIB.] are Revenue Regional Office
implementing units that directly -serve taxpayers within its prescribed
area of jurisdiction.
Treatment and Rehabilitation Centers (TRCs) are centers which
undertake the treatment, after-care and follow-up treatment of drug
dependents. These centers include institutions, agencies and the like
with similar or related functions.
35
Chapter 2— The Unified Accounts Code Structure
District Engineering Offices (DE0s) [DPWEI] are established in each
of the provinces and cities throughout the country. It may be divided
into two (2) or more engineering districts upon the determination and
issuance of an Administrative Order by the Secretary. It is responsible
for all highways, flood-control and water resource development system
and other public works within the district and is headed by a District
Engineer.
Key Budgetary Units are organization units under the Armed Forces of
the Philippines with distinct and separate budgetary allocations in the
General Appropriation Act. These are the AFP Medical Center,
Presidential Security Group and Philippine Military Academy.
d. Lower Level Operating Units
As a general rule, the last five digits of the Lower Level Operating Unit
Code refer to the assigned code for the individual operating units
without reference to the Region Code. If an agency has been moved
from one department to another or if an operating unit has been moved
from one agency to another, all new coding numbers that apply shall be
used. The old codes shall never be assigned to any new
agency/operating unit so as to preserve the transaction history of each
agency.
3. Location Codes
To facilitate central agency analysis across the National Government local
coding should first enable the analysis of data by region, and then by
province, municipality/city and barangay. The coding structure relies upon
the codes used by the National Statistical Coordination Board (NSCB) only.
Location code is a nine-digit code composed of Region, Province,
City/Municipality, and Barangay.
a. Region
It is a sub-national administrative unit composed off several provinces
having more or less homogenous characteristics, such as ethnic origin
of inhabitants, dialect spoken, agricultural produce, etc.
36 Chapter 2— The Unffied Accounts Code Structure
Chapter 2— The Unified Accounts Code Structure 37

Region Codes Benguet 11

Ifugao 27
REGION UACS Kalinga 32
Region I — limos 01 Mountain Province 44
Region II— Cagayan Valley 02 -
Region III — Central Luzon 03 Region I — Ilocos Region
Region TV-A - CALABARZON 04 Ilocos Norte 28
Region IV-B - MIMAROPA 17 Ilocos Sur 29
Region V - Bicol 05 La Union 33
Region VI— Western Visayas 06 Pangasinan 55
Region VII — Central Visayas 07
Region VIII — Eastern Visayas 08 Region II— Cagayan Valley
Region IX — Zamboanga Peninsula 09 Batanes 09
Region X —Northern Mindanao 10 Cagayan 15
Region XL- Davao 11 Isabela 31
Region XII - SOCCSKSARGEN 12 Quirino 57
Region XIII - CARAGA 16 Nueva Vizcaya 50
National Capital Region (NCR) 13
Cordillera Administrative Region (CAR) 14 Region III — Central Luzon
Autonomous Region in-Muslim Mindanao (AR_MM) 15 Aurora 77
Bataan 08
Region code is a two-digit code (I' and 211d ) that identifies a specific Bulacan 14
region It ranges from 01 to 99 and generally corresponds to the region Nueva Ecija 49
number. Pampanga 54
Tarlac 69
Zambales 71
b. Province
Region IV-A - CALABARZON
It is a political corporate unit of government which consists of a cluster Batangas 10
of municipalities, or municipalities and component cities. It serves as a Cavite 21
dynamic mechanism for developmental processes and effective Laguna 34
governance of local government units within its territorial jurisdiction. Quezon 56
Rizal 58
Province Codes
Region RI-B — MIMAROPA
PROVINCE UACS Marinduque 40
CAR — Cordillera Administrative Region
- Occidental Mindoro 51
Myra 01 Oriental Mindor 52
Apayao 81 Palawan 53
 39
Chapter 2 — The Unified Accounts Code Structure Chapter 2 — The Unified Accounts Code Structure
38

18
Romblon 59 Camiguin
35
• Lanao del Norte
42
egion V — Bicol Region Misamis Occidental
43
A I b_ay 05 Misamis Oriental
Camarines Norte 16
Camarines Sur 17 Region XI — Davao Region
23
Catanduanes 20 Davao del Norte
25
Masbate 41 Davao Oriental
24
Sorsogon 62 Davao del Sur
82
Compostela Valley
Region VI — Western Visayas
Aklan 04 Region )UI — SOCCSKSARGEN
47
Antique 06 North Cotabato
80
Capiz 19 Sarangani
63
Guimaras 79 South Cotabato
65
Iloilo 30 Sultan Kudarat
Negros Occidental 45
Region XIII — CARAGA
02
Region VII— Central Visayas Agusan del Norte
03
Bohol 12 Agusan del Sur
67
Cebu 22 Surigao del Sur
68
Negros Oriental 46 Surigao del Norte
85
Siquij or 61 Dinagat Islands

ARMM — Autonomous Region in Muslim Mindanao

Region VIII — Eastern Visayas 07
Miran 78 Basilan
36
Eastern Visayas 26 Lanao del Sur
38
Leyte 37 Maguindanao
66
Northern Samar 48 Sulu 70
Southern Leyte 64 Tawi-Tawi
Samar (Western Samar) 60
Province code is a two-digit code (3th and 4th) that 'dentifies the
province. It ranges from 01 to 99 and generally defining the relative
Region IX — Zamboanga Peninsula alphabetic sequence of all provinces in the Philippines, except those
Zamboanga del Norte 72 created after 1977, which are added to the list following the updating
Zamboanga del Sur 73 procedures. A Province Code is independent of the Region Code,
Zamboanga Sibugay 83 which means that even if a province is transferred to another region, its
Province Code remains the same.
Region X — Northern Mindanao
Bulddnon 13
 Chapter 2— The Unified Accounts Code Structure
Chapter 2 — The Unified Accounts Code Structure
40
c. Municipality
It is a political corporate unit of government which consists of a group
of barangays. It serves primarily as a general-purpose government for
t6he coordination and delivery of basic, regular and direct services and
effective governance of the inhabitants within its territorial
jurisdictions.
Municipality code is a two-digit code (5th and 6th) that generally
defines the relative alphabetical sequence of municipalities within the
province. It ranges from 01 to 99; therefore, the first code (01) is
assigned to the first municipality in the alphabetical sequence within
that province.
(Note: The complete list of LGU descriptors and codes stretches to
over 400 pages and has consequently not been included in the UACS
manual. To obtain the code for any locality, please access the NSCB
website at http://www.nscb.gov.ph/activestats/psgc/listmun. asp)
d. Barangay
It is the basic political unit of government. It serves as the primary
planning and implementing unit of government policies, plans,
programs, projects and activities in the community, and also as o
forum where the collective views of its constituents may be expressed,
crystallized and considered, and where disputes may be amicably
settled.
Barangay code is a three-digit code (7th to 9th) which generally defines
the relative alphabetical sequence of the barangays within the
municipality. It ranges from 001 to 099; therefore, like the
Municipality Code, the first code (001) is assigned to the first barangay
in the alphabetical sequence within that municipality. The Barangay
Code is dependent upon the Municipality Identifier to fully establish
the identity of a given barangay.
41
Municipality Identifier
The Municipality Identifier is a four-digit number that defines the identity of
the municipality. It is the core of the national standard geographic system, and
is composed of the Province Code, followed by Municipality Code.
Illustration 1:
Assume that Municipality Identifier is 7310.
The first two-digits (73) is the Province Code for the province of
Zamboanga del Sur.
The last two-digits (10) is the Municipality Code, which is Kabasalan,
the 10th municipality in the province of Zamboanga del Sur.
Therefore, the Municipality Identifier 7310 is Kabasalan, Zamboanga
del Sur.
From the above illustration, the Municipality Code only provides for
the relative alphabetical sequence of the municipality within the
province. Whereas, the Municipality Identifier not only identifies the
municipality but also the province to which it belongs. An added
feature of the Municipality Identifier is its independence from the
Region Code, which means that regardless of the region, the
Municipality Identifier for Kabasalan will remain 7310 as long as it is
part of Zamboanga del Sur.
Illustration 2:
Assume that Barangay Identifier 7310001.
As shown in Illustration 1, the first four-digits (7310) represents the
Municipality Identifier (Kabasalan, Zamboanga del Sur). The last
three-digits in Illustration 2 (001) is the Barangay Code, which refers
to the first barangay within the municipality with Municipality
Identifier 7310, in this case, refers to Barangay Balongis. Therefore,
the Barangay Identifier 7310001 is Barangay Balongis in Kabasalan,
Zamboanga del Sur.
 Chapter 2 — The Unified Accounts Code Structure 43
Chapter 2— The Unified Accounts Code Structure
42
Sector Values:

Based on the above illustration (2), the barangay code is not sufficient Code Values Descriptions Type
to define the identity of the barangay. But when the barangay code is 100 General Public Services Sector
attached to a Municipality Identifier, the identity of the barangay can 120 Defense Sector
be fully established. 140 Public Order and Safety Sector
160 Economic Affairs Sector
180 Environmental Protection Sector
4. Major Final Output (MFO)/Program, Activity & Project (PAP) 200 Housing and Community Amenities Sector
Codes 220 Health Sector
240 Recreation, Culture and Religion Sector
A Major Final Output (MFO) is a good or service that a department or Sector
260 Education
agency in mandated to deliver to external clients through the Sector
280 Social Protection
implementation of program, activities and projects. It should be within the
department or agency's control and be measureable, manageable and
auditable. Examples of MFOs include regulatory services, health services, Sub-Sector Values:
education services and agricultural support services.
Code Values Descriptions Type
A Program is an integrated group of activities that contributes to an 100 General Public Services Sector
agency or department's continuing objective. Examples include General 101 Executive and legislative organs, Sub-Sector
Administration and Support, Support to Operations, etc. financial and fiscal affairs, external
affairs
An Activity is a work process that contributes to the fulfillment of a 102 Foreign economic aid Sub-Sector
program or project. Each activity shall be attributed to only one MFO. 103 General services Sub-Sector
104 Basic research Sub-Sector
And a Project is a special de partment/agency undertakings canied out 105 R&D General public services Sub-Sector
within a definite timeframe and which are designed to produce a pre- 106 General public services n.e.c. Sub-Sector
determined measures of goods or services. A Project is considered an 107 Public debt transactions Sub-Sector
investment toward expanding the capacity of a department/agency to 108 Transfers of a general character Sub-Sector
deliver MFOs. between different levels of
government
As provided by Joint Circular No. 2014-1, dated November 7, 2014, Governance/Government Institutions Sub-Sector
109
MFO/PAP Codes is now a 15-digit code comprised of the following: and Regulatory Regime
110-119 Not yet assigned Sub-Sector

a. Sector/Horizontal Outcomes 120 Defense Sector

121 Military Defense Sub-Sector
In order to provide the ability to track budgets to the sector outcomes, Sub-Sectoi
a 3-digit code for the Sector Outcomes was added as a prefix of the 122 Civil Defense
123 Foreign Military Aid Sub-Sector
MFO/PAP Codes, as shown below: Sub-Sector
124 R&D Defense
I

Chapter 2— The Unified Accounts Code Structure 45

Chapter 2— The Unified Accounts Code Structure
44
Operations (0) 3
Sub-Sector Locally Funded Projects 4
Territorial Inte • 5
Sub-Sector Foreign —Assisted Projects
Sub-Sector Purpose (for Special Purpose Funds only) 6
Defense n.e.c.
Sub-Sector
128 — 139 Not et assi ed
General Administration and Support (GAS) consists of activities
involving the provision of overall administration management
The Sector Code shall not be utilized; these are intended as headings.
support to the entire agency operation. This includes general
Only the Sub-Sector Code shall be utilized. All MFO/PAPs are
management and supervision, legislative liaison services, human
required to have Sub-Sector Outcome Code Value. resource development and financial and administrative services,
amonp other related services. Funds provided for GAS are
(Note: The Sub-Sector Values is a long list; thus, to obtain the
management overhead expenses and are therefore indirect costs of
appropriate code for the remaining sub-sectors, please access the
delivering MFOs.
UACS Appendices at DBM webs ire.)
Support to Operations (STO) consists of activities that provide
technical and substantive support to the operations and projects of the
To provide the tagging of the horizontal outcomes, another 2-digit
department/agency. These include planning and policy formulation,
code was added, for Horizontal Outcomes, next to Sector Outcomes,
program monitoring and evaluation, public information programs,
as shown below: research and development, statistical services and information
systems development, among other related functions. The types of
Descri u tions
services included under STO are common across agencies, and are
Disaster Related considered indirect costs of delivering MFOs.
Climate Chan e — anon
02
03 Climate Chan e — Ada tation Operations (0) consist of activities directed at fulfilling the
department and agency mandate. There should be no activity stated
similarly as the programs (GAS, STO) and MFOs under Operations.
The horizontal Outcome shall only be utilized for applicable
Program, Activity, or Project (P/A/P). If the P/A/P is not applicable
to any Horizontal Outcome, the code value is 00. c. MFO/Project Category Codes

PARTICULARS UACS
b. Program/Project/Purpose Physical Infrastructure:
Buildings and Other Structures 01
This single-digit code indicates Program (General Administration 02
Flood Control and Drainage
and Support, Support to Operations, and Operations); Project Type 03
(Locally Funded or Foreign Assisted); and Purpose (Special Purpose Non-Road Transport Infrastructure
Power and Communication Infrastructure 04
Fund); as outlined in the table below: 05
Roads and Bridges
UACS Water Management 06
Programs, Projects or Purpose
1
k General Administration and Support (GAS) 2
I'. --- --. tr, nnr,-qtino c (STO1
 47
Chapter 2 — The Unified Accounts Code Structure
Chapter 2 — The Unified Accounts Code Structure
46 0402
Energy Resource Development
0403
Energy Efficiency and Conservation
Non-Ph sical Infrastructure Pro'ects: 0404
07 Energy Investment/Promotion/Innovation
Economic Develo • ment 08 0405
Communication
Education 09
Environmental Protection maw
10 0500
Roads and Bridges 0501
Governance National Roads 0502
National Bridges
Recreation, S offs and Culture 0503
Local Roads 0504
Research and Develo • ment 14 Local Bridges
Social Protection 0505
Traffic Decongestion
0506
Farm-to-Market Roads
(Note: The first two-digit code of Project Sub-Category Codes 0600
Water Management
represents the Project Category Code.) 0601
Water Supply
0602
Septage and Sewerage
0603
Water Treatment System
Project Sub-Category Codes 0604
Irrigation Syste,s

111.1111111.5narliliMMISEM 0100 0700

Buildin s and Other Structures Economic Development
0101 0701
Economic Affairs
chool
dinsinifi Buildin 0102 0702
Agriculture and Fisheries
0103 0703
Asset Reform
Multi-Pu ose Facilities 0104 Mining and Manufacturing
0704
1112Effraing 0105 0705
Government Buildin s Trade and Industry
0106 0706
Enterprise Development
Housin 0707
Micro-Enterprise Development
0200 0708
Credit Facility Development
Flood Control and Draina e 0201 0709
Flood Control Structures/Facilities Tourism Development
0202 0710
Industry Manpower Development
Draina e/Protection Works
0300 0800
Education
Non-Road Trans rt Infrastructure 0301 0801
Basic Education
Aviation 0302 0802
Technical and Vocational Education
0303 0803
Tertiary Education
Ports, Li thouses and Harbors 0304 Education Not Definable by Level
0804
Accessibili Facilities 0305
Multi-P • ose Pavement Environmental Protection
0900
0400 0901
Power and Communication Infrastructure Waste Management
0401
Electrification
 Chapter 2— The Unified Accounts Code Structure 49
Chapter 2 — The Unified Accounts Code Structure

Survivors 1403
Pollution Abatement Family and Children 1404
Protection of Biodiversi and Landsca Unemployment 1405
Food Programs 1406
Social Security Welfare and Employment 1407
Poverty Reduction 1408
General Public Services Housing 1409
Defense Livelihood 1410
Public Order and Safe Peace and Development 1411
S stems Develo•ment Trafficked Persons 1412
Ca .aci Develo • ment Youth Development 1413
Governance and Accountabili Im rovement
d. Project Title
Health
Public Health Services The list of projects by title is shown in the NEP/GAA.
Im roved Parentin
Im roved Women's Health
5. Object Codes
Recreation S • orts and Culture th
Recreation and S • orts It is a ten-digit code composed of the first eight digits (Ist to 8 ) are for
COA Chart of Accounts Object, and the next two digits (9th and 10th) are
Broadeastint and Publishin Services for Sub-Object.

This particular key element of UACS provides information on the object

Research and Develo ment
code classification for Assets, Liabilities, Equity, Income and Expense
A: 'culture and Food
accounts. The object classification covers all financial transactions of the
Environment and Natural Resources
government, such as, but not limited to, goods or services acquired,
Disaster Miti ation and Mana ement
payments made, the source of revenue or the cause of increases or
decreases in assets and liabilities.
Health
Information and Communication Technolo
The object information provides a method for classifying and coding
Biotechnolo transactions to enable the reporting of information (including the impact of
Nanotechnolo government revenues and expenditures on the economy) as well as the
Genomics nature and standard classification of transactions for internal departmental
Technolo 3 Transfer analysis. It will also provide the oversight agency information in making
Science and Technolo economic decision, as well as a repository of government-wide information,
Defense which can be used without requiring departments and agencies to respond
to individual request.
Social Protection
Sickness and Disabill
Senior Citizens
 Chapter 2— The Unified Accounts Code Structure Chapter 2 — The Unified Accounts Code Structure 51
50

The sources of account descriptions and codes in the UACS object coding Income refers to the gross inflow of economic benefits or service potential
elements includes the following: during the reporting period, when those inflows result in an increase in net
I. The codes from the COA Revised Chart of Accounts prepared for assets/equity, other than increase relating to contributions from the
accrual basis financial reporting. government. The term "income" is broader than revenue and includes gains
in addition to revenue.
The addition of some sub-object codes; and
Expenses refer to decrease in economic benefits or service potential during
Additional expenditure accounts designed for cash basis budgeting, the reporting period in the form of outflows or consumption of assets or
such as those of capital outlays. incurrence of liabilities that result in decrease in net assets/equity, other
than those relating to distributions to owners. (PPSAS 1 — Presentation of
The basis for coding the object classification in the COA Revised Chart of Financial Statements)
Accounts is accrual accounting, which requires transactions to be recorded
in the period when they occur. The elements recognized under accrual The categorization of expense description and codes in the UACS involves
accounting are Assets, Liabilities, Equity, Income and Expenses. As an amalgamation of all of the expenditure codes from the COA Revised
provided by COA in the Revised Chart of Accounts, the classification Chart of Accounts prepared for accrual basis financial reporting, the
coding framework for Object Coding is as follows: addition of some sub-object codes and the addition of expenditure accounts
designed for cash basis budgeting, such as all of the accounts for capital
PARTICULARS UACS outlays. Collectively, these provide the harmonized budgetary and
1 accounting expenditure classification codes.
Assets
Liabilities 2
3 For object coding, descriptions and codes are drawn from the COA
Equity
4 Revised Chart of Accounts. If disaggregation is necessary, sub-object
Income
5 codes shall be used to show the breakdown of selected assets, income and
Expenses expenses. Otherwise, two zeros will be used.
Assets refer to the economic resources of an agency that recognized and
measured in conformity with generally accepted accounting principles. As Some examples of object codes for Personnel Expenses (PS) and
asset is any owned physical object (tangible) or rights (intangibles) with Maintenance and Other Operating Expenses (MOOE) are as follows:
economic value that is expressed in terms of its cost or some other value.
Personnel Expenses:
Liabilities refer to the economic obligations of an agency that are
recognized and measured in conformity with generally accepted accounting
principles. Liabilities may include certain deferred credits that are not PARTICULARS COA UACS
actual obligations, but are nonetheless recognized and measured according Salaries and Wages - Regular 50101010 50101010 00
to accounting principles as outlined in the Philippine Public Sector Basic Salary - Civilian 50101010 01
Base Pay — Military/Uniformed
Accounting Standards (PPSAS).•
Personnel 50101010 02
Equity refers to the residual interest of the government in an agency, which Salaries and Wages —
is the excess of the agency assets over liabilities. Casual/Contractual 50101020 50101020 00
52 Chapter 2— The Unified Accounts Code Structure
Chapter 2— The Unified Accounts Code Structure 53

Maintenance and Other Operating Expenses:

particularly on the funding source and organization codes, to conform to the
PARTICULARS COA UACS prescribed UACS codes. In case of any discrepancy noted in the indicated UACS
Rent/Lease Expenses 50299050 50299050 00 codes per SARO/NCA vis-i-vis the UACS Manual, the codes per UACS Manual
Rent — Building and Structures 50299050 01 shall be adopted by the agency concern.
Rent-Land 50299050 02
Rent — Motor Vehicles 50299050 03
Rent - Equipment 50299050 04
kent — Living Quarters 50299050 05
Operating Lease 50299050 06
Financial Lease 50299050 07

Harmonization of Coding for Capital Outlays

From the time budget is appropriated until funds are disbursed, 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. According to
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 would most likely be automated in Government Integrated Financial
Management Information System (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 and not disclosed in
the Income and Expense Statement.

Once the project is completed, the Infrastructure Construction in Progress account

would be credited and a Public Infrastructure Asset is recognized, as an example, an
asset account like Road Networks account is debited.

Transitory Measure

According to National Budget Circular No. 554 dated March 14, 2014, "Conversion
of Codes to Conform to the UACS," as a transition measure to allow Government
Agencies/Operating Units sufficient time in the familiarization of the UACS codes,
the DBM shall still reflect the previous codes alongside the UACS codes in the
release documents. However, all National Government Agencies and Operating Units
are authorized to make the necessary conversion of the appropriate codes,