Nfjpiar3 1314 IRR Standard Chart of Accounts

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS
THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit
REGION III COUNCIL
IMPLEMENTING RULES AND REGULATIONS ON STANDARD CHART OF ACCOUNTS FOR REPORTING
REVISION HISTORY:
Version No. 1 Date 22/5/2013 Revised By Leila Victoria R. Antonio Approved By Zheena E. Ocampo Noted By Conrad Allan M. Alviz Details Initial Issue
(Document Type) National Federation of Junior Philippine Institute of Accountants Region III Council
Page 1 of 11
REGION III COUNCIL

TABLE OF CONTENTS
Foreword ........................................................................................................................................................................................................................................ 3 Key Concepts ................................................................................................................................................................................................................................ 3 Part 1: Implementing the Standard Chart of Accounts .......................................................................................................................................... 3 1.1 About the Standard Chart of Accounts ............................................................................................................................................................... 3 1.2 Application of SCOA by Local Chapters.............................................................................................................................................................. 3 1.3 Use of Local Chapters .................................................................................................................................................................................................. 4 1.4 Benefits from SCOA ...................................................................................................................................................................................................... 4 Part 2: Standard Chart of Accounts and Data Dictionary ...................................................................................................................................... 5 Part 3: Standard Chart of Accounts Fact Sheet ....................................................................................................................................................... 11
FOREWORD
In May 2013, the National Federation of Junior Philippine Institute of Accountants Region III Council agreed that all Local Chapters would develop and implement a Standard Chart of Accounts (SCOA) in order to reduce the regulatory and administrative reporting burden and to maintain a uniform system of financial bookkeeping and
(Document Type) National Federation of Junior Philippine Institute of Accountants Region III Council Page 2 of 11
REGION III COUNCIL
reporting that is consistent with the generally accepted accounting principles (GAAP). The SCOA is an agreed list of account categories and data dictionary for Local Chapters. The circular is provided in three parts. Part 1 provides information on implementing the SCOA; Part 2 attaches the SCOA; and Part 3 provides the fact sheet for Local Chapters to use and adapt as necessary, which can also be provided to the Council.
KEY CONCEPTS
Chart of Accounts - classification structure for the accounting system that permits the standardization of reported financial data whereby analyses may be performed within and between district boards of education and on nationwide basis.
IMPLEMENTING THE STANDARD CHART OF ACCOUNTS

A. About the Standard Chart of Accounts The Standard of Chart of Accounts (SCOA) is an agreed list of account categories and data dictionary for the National Federation of Junior Philippine Institute of Accountants Region III Council to use when requesting financial information from Local Chapters. Its objectives is to simplify and improve consistency of financial reporting of Local Chapters to the NFJPIA Region III Council. The SCOA groups accounting into assets, liabilities, equity, revenue and expenses. The numbering system follows an accepted approach of Assets=1, Liabilities=2 and so forth, and expenses are listed in alphabetical order. The accompanying data dictionary provides guidance to Local Chapters on how to process transactions and determine which transactions go into which accounts by providing description of the specific account. B. Application of the Standard Chart of Accounts by Local Chapters From 1 June 2013, all Local Chapters should be in a position to accept financial information in the SCOA accounting categories from NFJPIA Region III Council entered into on or after 1 June 2013. There is no requirement for Local Chapters to convert existing reporting requirements for grants entered into before this date. The NFJPIA Region III Council should ensure that Local Chapter are aware that their adaptation of the SCOA is voluntary. The council should not require Local Chapters to report in the SCOA accounting categories and should continue to accept financial information in other agreed reporting formats. C. Use of Local Chapters While the NFJPIA Region III Council should accept financial information from the Local Chapters in accordance with the SCOA, use of the SCOA is not mandatory for the Local Chapters.
Page 3 of 11
REGION III COUNCIL
D. Benefits from Standard Chart of Accounts Consistent financial information in accounting categories and terms across budgets, acquittal reporting and financial accountability from Local Chapters. Standardized data (common definitions and groupings) enabling Local Chapters to undertake more accurate analysis and data comparison and set reliable benchmarking targets. This will contribute to better monitoring and evaluation processes, and ultimately, better policy development and improved decision making.
STANDARD CHART OF ACCOUNTS AND DATA DICTIONARY

Account Code 100 110 111 Account Name Assets Current Assets Cash in Bank - Restricted Assets 100 Data Dictionary/Description of Account Assets are resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Current assets are all assets with future economic benefit expected to become available or used within the next 12 months.
112
Cash in Bank Unrestricted
Restricted cash represents funds to be used for a specific purpose, which relates to program or project or outcomes. This account does not include cash at bank or on hand that is used for the general operating purposes of the organization. This account includes any roll-over funds and funds not yet allocated for a specific purpose whilst still relating to a program/project/s. This would include interest bearing deposits such as a building sinking fund and would usually be a "sub" account with the reconcilable accounts. Organizations should itemize by the nature of the restriction. If this amount is in negative, it is reported here. Note that negative cash at bank is often referred to as bank overdraft (and listed as a negative asset). Unrestricted cash represents funds not allocated by a funding agreement for a specific purpose and is usually the general operating funds of an organization. Some organizations may use sub accounts and itemize by account. If this amount is in negative, it is reported here. Note that negative cash at bank is often referred to as bank overdraft (and listed as a negative asset). This account represents the amount of petty cash on hand at the end of the reporting period. It does not include cash at bank or till floats (1-1150). (Petty Cash and Cash Float should equal Cash on Hand which may be a header account). Also known as trade debtors. This account shows the gross
Page 4 of 11
113
Petty Cash
120
Accounts receivable
REGION III COUNCIL
121 Allowance for Doubtful Accounts 130 Loans Receivable
140
Other Current Assets
150
Non-Current Assets
160
Property and Equipment
161
Accumulated Depreciation
170
Other Non-Current Assets
accounts receivable still owing by debtors to the organization at the end of the financial period which are expected to be collected in the next 12 months. This item (also known as Allowance for Doubtful Debts) is an estimate of the amount of debts not expected to be received in respect of outstanding debts. This includes all other debtors other than trade debtors. This would include short-term loans made to officers or committee members. Other current assets not specifically included in previous accounts and may include items held for sale or due to be sold or "one off" prepayments of memberships. Non-current assets are all assets with future economic benefits not expected to become available or used within the next 12 months. Organizations are also encouraged to discuss the issue of impairment of assets with their advisors to ensure compliance. This account represents the total value of movable plant and equipment (excluding vehicles) that is owned or leased recorded at cost. The account includes all classes (movable plant and equipment; office furniture owned or leased; furniture and fittings installed in rental properties; office equipment (including computers and software) owned or leased; libraries and educational resources; allied health equipment; aids and equipment rented or leased to clients; sports equipment, musical instruments, art collections, costumes, scenery sets and (theatre, dance, opera) production properties). May be itemized according to the nature of the asset. (This account excludes rental properties.). These items are recorded at cost. In the case of donated assets, these are recorded at fair value. The assets shown here should reconcile to the asset register. It is suggested that these accounts be broken up to meet the business needs to include Improvements such as landscaping and surrounds, IT assets separately. Accumulated depreciation to date in respect of plant and equipment excluding rental properties for which a separate account is maintained. Other non-current assets not specifically included in previous accounts which may include biological assets and long-term assets to be sold but not in the next 12 months. Separate accounts for items that are ongoing are suggested so that these accounts are not disproportionate Liabilities 200
Page 5 of 11
REGION III COUNCIL
200
Liabilities
210
Current Liabilities
211
Accounts Payable
212 213 220
Accrued Expenses Other Current Liabilities Non-Current Liabilities
A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic events. Current liabilities are liabilities with future economic losses expected to be used, or expended, or committed to be used within the next 12 months. Accounts payable are also known as trade creditors. This account shows the gross accounts payable owing to trade creditors or suppliers at the end of the reporting period (other creditors such as banks are not included for items such as bank loans). This represents the liability component of amounts due at the end of the reporting period that remain unpaid. This account can be used for any other current liabilities not specifically included in any of the accounts already listed. This header account includes accounts with future economic losses not expected to be used, or expended, or committed to be used within the next 12 months. Equity 300 Equity is defined as the residual interest in the assets of the entity after deducting all its liabilities. Revenue 400 Income or Revenues are inflows or other enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. This account refers to the membership and registration fees paid to the organization. This account includes all sponsorships fees received by the nonprofit organization. May include residential accommodation, hostel, village clients & advertisement contracts, these may be included in Fees and Charges (either restricted or unrestricted) above. This account represents the sale made by the organization of all goods (purchased or donated). This is the most common trading account of organizations and could be a header account with various detail accounts with sub-headings to cover activities such as retail, uniforms, merchandise and products, tickets, food & beverage, programs. This account represents other fees received by the organization not specifically included in any of the accounts already listed.
Page 6 of 11
300
Equity
400
Revenue
401 402
Membership/Registration Fee Sponsorship Fee
403
Merchandise Fee
404
Other Revenue
REGION III COUNCIL
500
Expenses
501
Business Planning, Reporting and Evaluation Costs
502
Administrative Expense
503
Volunteer/Working Committee Costs
Expenses 500 Expenses are outflows or depletions of assets or occurrences of liabilities that result in decreases in equity other than those relating to equity. This account represents the costs of preparing and drafting submissions, business plans, marketing plans, volunteer management plans, risk management and operational plans, as well as the costs of feasibility studies. This account is specifically for administration costs incurred by the organization. This account includes both pre and post program or project costs and evaluation, development and research that occurs within an organization. Some organizations may wish to use this as a header breaking down specific accounts for management purposes. This account included any expenses related to boards, management committees, governance activities, finance committees, audit committees such as travel and accommodation for meetings, reimbursement of expenses to those on the committees (kept separate to organizational volunteers), and Executive Board Meeting expenses. This account also represents all costs associated with meetings, eg. hiring of venues and facilities and food expenses. * It includes travel and accommodation costs incurred for meeting purposes eg. Board meetings. * It includes catering costs for the meeting, organizational agendas such as Research Panels, staff committees, Peak Body activities. This account represents all costs relating to volunteers (including training of volunteers). This account should be a header account with detailed accounts listed for the various inclusions. * It includes the costs of managing volunteers, and sending volunteers on organizational business such as reimbursements of expenses. * It includes allowances, reimbursements and incidental expenses paid to volunteers (excluding Board members), and all costs related to volunteer training (Board expenses are included in Board/Governance Expenses). This account includes all expenses incurred to represent the organization, including school visit, Executive Meeting, MidYear and Annual Conventions and any other expense not
Page 7 of 11
504
Representation Expense
REGION III COUNCIL
505
Academic Expense
506
Non-academic Expense
507
Computer Expense
classified to those mentioned. This account includes all academic costs, including printing & photocopying of materials, supplies used, awards, transportation and any other expense directly attributable to academic activities. This account includes all costs incurred in non-academic activities. It includes transportation, food, materials used, photo-shoot costs and any other costs attributable to nonacademic activities. This account includes all computer costs, including e-mail, internet and website development and maintenance. It also includes the cost of computer software expensed (but excludes training costs). Whilst most costs of development and maintenance of websites are an expense, in some limited instances, the costs may be capitalized. * This account excludes telecommunication and internet charges. * This account includes the repairs and maintenance of computers (unless separately disclosed). This account represents all donations and contributions made by the organization. This account includes all insurances including accident, building and contents, owned properties This account represents all membership fees paid by the organization, for the organization and for members. This account represents motor vehicle expenses. It includes rental fees, and fuel and oil costs incurred by the organization in respect of motor vehicles owned or leased. This account represents all freight, postage, stamps, franking costs and courier costs incurred by the organization. This account includes other administrative costs associated with printing and stationery incurred by the organization such as photocopying and purchase of paper. * It includes the costs of trophies, medals and other awards other than those classified. *It excludes the costs of printing loose-leaf brochures, as well as education kits provided to clients/participants. This can be included under the heading of other accounts such as Academic Expense and Non-Academic Expense. This account includes the cost of newsletters, (library-based) books, hard cover publications purchased by the nonprofit organization (but not capitalized as an asset). It also includes loose-leaf brochures prepared by the nonprofit organization
Page 8 of 11
508 509 510 511
Donations Paid Insurance Expense Membership Fees Paid Motor Vehicle Expenses Postage, Freight and Courier Printing & Stationery
512 513
514
Publications and Information Resources
REGION III COUNCIL
515 516
Telephone & Fax Charges & Internet

Miscellaneous Expenses
517
General Expense
518
Bank Charges
(these are not coded as printing & stationery costs). It also includes the costs incurred in printing promotional materials. This account represents all telephone, mobile telephone, and fax costs incurred by the organization. This account covers all small, miscellaneous one-off expenses which may occur, and which are not specifically included in other items. This account includes all costs not classified as administration cost. It includes accommodation, convention kits, tickets and any other costs residual of those classified. Some organizations may wish to use this as a header breaking down specific accounts for management purposes. This account represents all charges associated with the various bank accounts held by a nonprofit.
STANDARD CHART OF ACCOUNTS FACT SHEET

The SCOA The SCOA is an agreed list of account categories for use by all Local Chapters. The SCOA lists the names of account categories most likely to be required from Local Chapters to detail accounting information, and explains each one in plain language (a data dictionary or detailed description of the item). From 1 June 2013, all Local Chapters will accept financial information from NFJPIA Region III Council in the defined accounting categories of the SCOA. Benefits of the SCOA
Page 9 of 11
REGION III COUNCIL
Local Chapters will be able to use consistent accounting terms for all government grant funding. Auditing of Local Chapters financial accounts will be simpler. Comparisons of financial information will be made easier when all Local Chapter recognize the same financial categories in their grant funding. Optional for Local Chapter It is not mandatory for Local Chapters to use the SCOA for their internal financial management. However, it is recommended that LCs use the SCOA, or consider using the relevant definitions of income and expenditure categories as this will reduce confusion and inconsistency. Although the SCOA was designed primarily to meet the needs of all Local Chapters, some have found the best approach is to adopt similar definitions of account categories into their existing chart of accounts. Prepared by:
___________________________________ Leila Victoria R. Antonio VICE PRESIDENT FOR FINANCE Wesleyan University-Philippines
Approved by: ___________________________________ Zheena E. Ocampo PRESIDENT Systems Plus College Foundation ___________________________________ Francis Xavier W. Ferrer VICE PRESIDENT FOR ACADEMICS Systems Plus College Foundation
Page 10 of 11
REGION III COUNCIL
___________________________________ Emil Julius T. David VICE PRESIDENT FOR NON ACADEMICS Holy Angel University
___________________________________ Enrico C. Rivera VICE PRESIDENT FOR MEMBERSHIP Tarlac State University
___________________________________ John Kendrick H. Pajarin VICE PRESIDENT FOR AUDIT Colegio de San Juan de Letran - Bataan
___________________________________ Adrianne B. Harve VICE PRESIDENT FOR COMMUNICATIONS University of the Assumption
___________________________________ Jane T. Villanueva VICE PRESIDENT FOR MEDIA Wesleyan University - Philippines
___________________________________ Roy James S. Enrile SECRETARY GENERAL Baliuag University
Noted by: ___________________________________ Conrad Allan M. Alviz, CPA, CISA ADVISER SGV & Co.
Page 11 of 11

Nfjpiar3 1314 IRR Standard Chart of Accounts

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Nfjpiar3 1314 IRR Standard Chart of Accounts

Uploaded by

Copyright:

Available Formats

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

IMPLEMENTING RULES AND REGULATIONS ON STANDARD CHART OF ACCOUNTS FOR REPORTING

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

IMPLEMENTING THE STANDARD CHART OF ACCOUNTS

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

STANDARD CHART OF ACCOUNTS AND DATA DICTIONARY

Cash in Bank Unrestricted

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

121 Allowance for Doubtful Accounts 130 Loans Receivable

Other Current Assets

Property and Equipment

Other Non-Current Assets

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

212 213 220

Accrued Expenses Other Current Liabilities Non-Current Liabilities

Membership/Registration Fee Sponsorship Fee

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

Business Planning, Reporting and Evaluation Costs

Volunteer/Working Committee Costs

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

508 509 510 511

Publications and Information Resources

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

Telephone & Fax Charges & Internet

STANDARD CHART OF ACCOUNTS FACT SHEET

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCIL

___________________________________ Roy James S. Enrile SECRETARY GENERAL Baliuag University

You might also like