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(NAR) VOL. 26 NO. 1/ JANUARY - MARCH 2015
[ COA Circular No. 2015-002, March 08, 2015 ]
SUPPLEMENTARY GUIDELINES ON THE PREPARATION OF FINANCIAL STATEMENTS AND OTHER FINANCIAL REPORTS, THE TRANSITIONAL PROVISIONS ON THE IMPLEMENTATION OF THE PHILIPPINE PUBLIC SECTOR ACCOUNTING STANDARDS, AND THE CODING STRUCTURE
Date Filed: 18 March 2015
The Unified Accounts Code Structure (UACS), a government-wide coding framework that provides a harmonized budgetary and accounting code classification, took effect on January 1, 2014. This was jointly developed by the Department of Budget and Management (DBM), Commission on Audit (COA), Department of Finance (DOE) and Bureau of the Treasury (BTr) and was prescribed under COA-DBM-DOF Joint Circular No. 2013-1 dated August 6, 2013.
The account codes in the Revised Chart of Accounts for National Government Agencies prescribed under COA Circular No. 2013-002 dated January 30, 2013, as amended by COA Circular No. 2014-003 dated April 15, 2014, were adopted as an integral part of the UACS or the object codes.
COA Resolution No. 2014-003 dated January 24, 2014 prescribed the adoption of 25 Philippine Public Sector Accounting Standards (PPSASs) effective January 1, 2014. These PPSASs were based on International Public Sector Accounting Standards (IPSASs) which were published in the 2012 Handbook of International Public Sector Accounting Pronouncements of the International Public Sector Accounting Standards Board. Each IPSAS provides transitional guidelines on the proper implementation of the IPSASs.
In view of these developments, there is a need to issue this Circular to prescribe the guidelines on the:
1.1 | preparation of the financial statements and other related financial reports required for submission to COA and other oversight agencies for the reporting period ending December 31, 2014 and onwards; |
1.2 | coding structure to be used for CY 2014 financial statements in accordance with the UACS; and |
1.3 | implementation of the PPSASs in accordance with the IPSASs transitional provisions. |
This Circular covers public sector entities, such as, the National Government Agencies (NGAs) and Government-Owned and/or Controlled Corporations (GOCCs) maintaining Special Accounts in the General Fund (SAGF). GOCCs not maintaining SAGF and Local Government Units (LGUs) shall be covered by separate guidelines.
For the purpose of this Circular, the following terms shall be construed to mean as follows:
3.1 | Entities - refer to NGAs and GOCCs maintaining SAGF. These may be a group of NGAs and GOCCs combined as a single entity (e.g. central and regional offices including their operating units) |
3.2 | NGAs - refers to the various units of the Government, including a department, bureau, office and instrumentality. |
3.3 | GOCCs - refers to any agency organized as a stock or nonstock corporation, vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government of the Republic of the Philippines directly or through its instrumentalities either wholly or, where applicable as in the case of stock corporations, to the extent of at least a majority of its outstanding capital stock. |
3.4 | Fund cluster - refers to an accounting entity (similar to a bank account) for recording expenditures and revenues associated with a specific activity for which accounting records are maintained and periodic financial reports are prepared. |
4.1 | The components of the financial statements, pursuant to PPSAS 1, are as follows: |
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4.2 | For the purpose of preparing the Annual Financial Report (AFR) and the annual audit reports (AARs) for CY 2014, all NGAs shall submit to the COA Auditors and the Government Accountancy Sector (GAS), COA, the detailed financial statements and trial balances consolidated by fund cluster as follows: |
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4.3 | NGAs are required to upload the soft copies of the above required financial statements at the COA website (www.coa.gov.ph) |
4.4 | GOCCs, such as NTA and PCA, shall submit to the COA Auditors and the Government Accountancy Sector (GAS), COA, the trial balances and financial statements stated in 4.2 of the SAGF as required by law, and upload the soft copies of the same at the COA website. |
4.5 | The Budget and Financial Accountability Reports (BFARs) prescribed under COA DBM Joint Circular No. 2014-1 dated July 2, 2014 shall also be submitted to the GAS, COA and Agency’s COA Auditor, in addition to the financial statements and reports stated in 4.1 and 4.2. |
4.6 | The NGAs, including the NTA and PCA, are likewise required to upload the BFARs at the COA website following the deadlines prescribed in the COA- DBM Joint Circular No. 2014-1 dated July 2, 2014. |
4.7 | The fund clusters and fund codes as prescribed in the UACS Manual per DBM-COA-DOF Joint Circular No. 2013-1, as amended by DBM-COA-DOF Joint Circular No. 2014-1 dated November 7, 2014, shall be used. |
4.8 | Upon the effectivity of this Circular, the following revised forms and registries shall be used/maintained by the NGAs, including the NTA and PCA for their SAGF, to facilitate the monitoring of budget information and the preparation of the budget and accounting reports: |
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4.9 | The guidelines on the implementation of PPSAS transitional provisions under paragraphs 6.1a to 6.1m shall be implemented. |
5.1 | All NGAs shall prepare and submit for the CY 2014 one set of financial statements for all funds (combined all funds) as enumerated in paragraph 4.1 as their general purpose financial statements. |
5.2 | The NTA and PCA shall submit the financial statements of the SAGF as stated paragraph 4.4. |
5.3 | The Statement of Management Responsibility (Appendix A) shall be attached to the financial statements. |
5.4 | To serve as guide to preparers of financial statements, a basic model or pro- forma Notes to Financial Statements shall be included in the Government Accounting Manual (GAM). |
5.5 | The guidelines in the submission of the financial statements and trial balances for the preparation of the CY 2014 AFR and annual audit reports are as follows: |
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5.6 | The following are the revised budget forms and registries to be used/maintained by NGAs: |
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6.1 | The guidelines for the implementation of the PPSAS transitional provisions are as follows: |
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Procedural issues and other matters not covered in this Circular shall be covered by supplemental issuances and/or shall be referred to the Government Accountancy Sector of the Commission on Audit for resolution.
All circulars, memoranda and other issuances or parts thereof which are inconsistent with the provisions of this Circular are hereby rescinded/ repealed/modified accordingly.
This Circular shall take effect immediately.
(SGD) HEIDI L. MENDOZA | (SGD) JOSE A. FABIA |
Commissioner | Commissioner |
Officer-in-Charge |