The Unified Accounts Code

Structure (UACS)
E. BARRIENTOS, A.J. GASPAR, M.
ORLINA

Major Final Output (MFO)/Program,

Activity, & Project (PAP) Codes
A.J. GASPAR

Classifications of the Functions of

the Government (COFOG)
Developed by the Organization for

Economic Cooperation and Development

(OECD)
Classifies government expenditure data
from the system of National accounts by
the purpose for which the funds are used.

Classifications of the Functions of

the Government (COFOG)
The 1st level COFOG splits expenditure data

into 10 functional groups:

1. General public services
2. Defense
3. Public order and safety
4. Economic affairs
5. Environmental protection
6. Housing and community amenities
7. Health
8. Recreation and culture
9. Education
10. Social protection

Classifications of the Functions of

the Government (COFOG)
The 2nd level COFOG further splits the 1 st

level group up to 12 sub-groups

Business Rules for UACS MFO/PAP

Sector Outcomes
The sector code should never be utilized.

All MFO/PAPs are REQUIRED to have Subsector Outcome Code Value.

The sub-sector is AUTOMATICALLY related
to the Sector group.
The wordings of the sub-sector are
internationally-defined-sub-sectors and the
description of each sub-sector is fixed.

Horizontal Outcome/Program
A specific program implemented with the

aim of achieving common policy objectives

among government agencies.

Business Rules for Horizontal

Programs
Every MFO/PAP Code shall be attributed to

one outcome sub-sector, and may or may

not have horizontal program.
In the absence of horizontal program, the
code shall be outcome sub-sector.

Major Final Output (MFO)

A good or service that a department or

agency is mandated to deliver external

clients through the implementation of
program, activities and projects.
It should be within the department or
agencys control and be measurable,
manageable, and auditable.
Examples: regulatory services, health
services, education services, and
agricultural services.

Program
An integrated group of activities that

contributes to an agency or departments

continuing objective.
Examples: General Administration and
Support, Support to Operations, etc.

Activity
A work process that contributes to the

fulfillment of a program or project.

Project
A special department or agency

undertakings carried out within a definite

timeframe and which are designed to
produce a predetermined measures of
goods or services.

Basic Rules for MFO, Program and

Activity
The first program is the General and Support

(GAS) which consists of activities involving the

overall administrative management support to
the entire agency operation.
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.
The third program is Operations, which
consists of activities directed at fulfilling the
department/agency mandate.

Basic Rules for MFO, Program, and

Activity
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 DepEds Division Offices and
Secondary Schools is managed under the
operating unit segment of organization coding.
For representation purposes in the NEP/GAA,
projects and SPFs shall not be attributed to a
particular MFO.

UACS Codes for Program, Projects,

or Purpose

Project Category
For UACS purposes, it is defined as a

classification or group of projects having

common qualities.
This is divided into:
Physical Infrastructure
Non-Physical Infrastructure

UACS Codes for Project Category

FAQs
Is there a possibility that one project sub-

category may appear in more than one

project category?
Can a Project Title be applicable to both
Projects and Operations?
Will the MFO/PAP Code be the same or is it
changing every year?
If a project or an activity is completed, can
the Code be utilized for another project or
activity in the succeeding year?

MFO/PAP for Special Purpose Fund

(SPF)
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
LGU 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 to be used for the SPFs shall be
determined by the DBM subject to the UACS
Administration Procedures on updating the UACS
repository.

Object Codes
A.J. Gaspar

Object Code
The object classification covers all financial

transactions of the government, such as,

but not limited to, goods or services
acquired, payments made, the source of
revenue or the cause of increases or
decreases in assets and liabilities.

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

Sources and Basis of Object Coding

Elements
Sources:
The codes from COA Revised Chart of Accounts

prepared for accrual basis financial reporting;

The addition of some sub-object codes; and
Additional expenditure accounts designed for
cash basis budgeting, such as those of capital
outlays.
The basis for coding the object classification in

the COA Revised Chart of Accounts is accrual

accounting, which requires transactions to be
recorded in the period when they occur.

The Classification Framework for

Object Coding

Definition of Terms
Assets
The economic resources of an agency that are

recognized and measured in conformity with

generally accepted accounting principles.
Liabilities
The economic obligations of an agency that

are recognized and measured in conformity

with generally accepted accounting principles.
Equity
The residual interest of the government in an

agency.

Definition of Terms
Income
The gross inflow of economic benefits or service

potential during the reporting period, when those

inflows result in an increase in net assets/equity,
other than increase relating to contributions from
the government.
Expenses
Decrease in economic benefits or service potential

during the reporting period in the form of outflows

or consumption of assets or incurrence of liabilities
that result in decrease in net assets/equity, other
than those relating to distribution to owners.

Allotment Classes of
Expenses

Responsible agencies for the disaggregation of

Object Code Into Sub-Object Codes

Examples of Object Codes

Retirement and Life Insurance

Premium
Personal Share
Charged against Personnel Services (PS)

budget of the agency under Funding Source

Code 01101101 and Object Code
5010101001 for salaries
Government Share
Charged to Automatic Appropriation on RLIP,

with funding Source Code 01104102 and

Object Code 5010301000

Harmonization of Coding for 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 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 Account.

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,
particularly on the funding source and organization codes,
to conform to the prescribed UACS codes. In case of any
discrepancy noted in the indicated UACS codes per
SARO/NCA vis--vis the UACS Manual, the codes per UACS
manual shall be adopted by the agency concern.

References
Unified Accounts Code Structure (UACS) Primer
UACS Manual
Government Accounting by A. Punzalan and M. Cardona