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

...2 Application of SCOA by Local Chapters..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 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 ..................................................................................................... 4 1........................ 3 Part 1: Implementing the Standard Chart of Accounts .......................................... 3 1.............................1 About the Standard Chart of Accounts ...................................................................................................................................................................... 5 Part 3: Standard Chart of Accounts Fact Sheet ....................................................................................................................4 Benefits from SCOA ............................................................................................................................... 3 Key Concepts ................................................. 3 1............................................................................................................. 4 Part 2: Standard Chart of Accounts and Data Dictionary ..................................................3 Use of Local Chapters ................................... 11 FOREWORD In May 2013.................. 3 1.....................................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 TABLE OF CONTENTS Foreword ...........................................................................................................................................................................................................................

(Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council Page 3 of 11 . Part 2 attaches the SCOA. Liabilities=2 and so forth. liabilities. and Part 3 provides the fact sheet for Local Chapters to use and adapt as necessary. use of the SCOA is not mandatory for the Local Chapters. Application of the Standard Chart of Accounts by Local Chapters From 1 June 2013. Use of Local Chapters While the NFJPIA Region III Council should accept financial information from the Local Chapters in accordance with the SCOA. The SCOA groups accounting into assets.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 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. C. revenue and expenses. Its objectives is to simplify and improve consistency of financial reporting of Local Chapters to the NFJPIA Region III Council. 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. Part 1 provides information on implementing the SCOA. The NFJPIA Region III Council should ensure that Local Chapter are aware that their adaptation of the SCOA is voluntary. B. equity. The circular is provided in three parts. 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. IMPLEMENTING THE STANDARD CHART OF ACCOUNTS A. There is no requirement for Local Chapters to convert existing reporting requirements for grants entered into before this date. 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.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. 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. The numbering system follows an accepted approach of Assets=1. and expenses are listed in alphabetical order. KEY CONCEPTS Chart of Accounts . which can also be provided to the Council.

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 D. it is reported here. Note that negative cash at bank is often referred to as bank overdraft (and listed as a negative asset). Organizations should itemize by the nature of the restriction. Unrestricted cash represents funds not allocated by a funding agreement for a specific purpose and is usually the general operating funds of an organization.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. Standardized data (common definitions and groupings) enabling Local Chapters to undertake more accurate analysis and data comparison and set reliable benchmarking targets. If this amount is in negative. it is reported here. Benefits from Standard Chart of Accounts Consistent financial information in accounting categories and terms across budgets. This account includes any roll-over funds and funds not yet allocated for a specific purpose whilst still relating to a program/project/s. Also known as trade debtors. Current assets are all assets with future economic benefit expected to become available or used within the next 12 months. better policy development and improved decision making. (Petty Cash and Cash Float should equal Cash on Hand which may be a header account). If this amount is in negative. Note that negative cash at bank is often referred to as bank overdraft (and listed as a negative asset). This account shows the gross Page 4 of 11 113 Petty Cash 120 Accounts receivable (Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council . Some organizations may use sub accounts and itemize by account. This will contribute to better monitoring and evaluation processes. acquittal reporting and financial accountability from Local Chapters. This would include interest bearing deposits such as a building sinking fund and would usually be a "sub" account with the reconcilable accounts. 112 Cash in Bank – Unrestricted Restricted cash represents funds to be used for a specific purpose. This account represents the amount of petty cash on hand at the end of the reporting period. STANDARD CHART OF ACCOUNTS AND DATA DICTIONARY Account Code 100 110 111 Account Name Assets Current Assets Cash in Bank . and ultimately. It does not include cash at bank or till floats (1-1150). This account does not include cash at bank or on hand that is used for the general operating purposes of the organization. which relates to program or project or outcomes.

sports equipment. office furniture owned or leased. art collections. allied health equipment. The assets shown here should reconcile to the asset register. (This account excludes rental properties. furniture and fittings installed in rental properties. scenery sets and (theatre. 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. musical instruments. 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 would include short-term loans made to officers or committee members. aids and equipment rented or leased to clients. 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. libraries and educational resources. Accumulated depreciation to date in respect of plant and equipment excluding rental properties for which a separate account is maintained. Non-current assets are all assets with future economic benefits not expected to become available or used within the next 12 months. office equipment (including computers and software) owned or leased. dance.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 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. IT assets separately. Organizations are also encouraged to discuss the issue of impairment of assets with their advisors to ensure compliance. This includes all other debtors other than trade debtors. It is suggested that these accounts be broken up to meet the business needs to include Improvements such as landscaping and surrounds. these are recorded at fair value. The account includes all classes (movable plant and equipment.). This account represents the total value of movable plant and equipment (excluding vehicles) that is owned or leased recorded at cost. May be itemized according to the nature of the asset. opera) production properties). These items are recorded at cost. Separate accounts for items that are ongoing are suggested so that these accounts are not disproportionate Liabilities 200 (Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council Page 5 of 11 . In the case of donated assets. costumes.

Current liabilities are liabilities with future economic losses expected to be used. 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. these may be included in Fees and Charges (either restricted or unrestricted) above. hostel. Accounts payable are also known as trade creditors. Revenue 400 Income or Revenues are inflows or other enhancements of assets or decreases of liabilities that result in increases in equity. Page 6 of 11 300 Equity 400 Revenue 401 402 Membership/Registration Fee Sponsorship Fee 403 Merchandise Fee 404 Other Revenue (Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council . village clients & advertisement contracts. This header account includes accounts with future economic losses not expected to be used. This account can be used for any other current liabilities not specifically included in any of the accounts already listed. or expended. programs. uniforms. or committed to be used within the next 12 months. This account includes all sponsorships fees received by the nonprofit organization. May include residential accommodation. This account refers to the membership and registration fees paid to the organization. or expended. the settlement of which is expected to result in an outflow from the entity of resources embodying economic events. tickets. food & beverage. This account represents the sale made by the organization of all goods (purchased or donated). Equity 300 Equity is defined as the residual interest in the assets of the entity after deducting all its liabilities. This account represents other fees received by the organization not specifically included in any of the accounts already listed. This represents the liability component of amounts due at the end of the reporting period that remain unpaid. merchandise and products. or committed to be used within the next 12 months. 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). other than those relating to contributions from equity participants.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 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.

risk management and operational plans. and sending volunteers on organizational business such as reimbursements of expenses. finance committees. * It includes travel and accommodation costs incurred for meeting purposes eg. and all costs related to volunteer training (Board expenses are included in Board/Governance Expenses). eg. audit committees such as travel and accommodation for meetings. reimbursement of expenses to those on the committees (kept separate to organizational volunteers). management committees. business plans. hiring of venues and facilities and food expenses. Executive Meeting. Peak Body activities. * It includes the costs of managing volunteers. staff committees.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 500 Expenses 501 Business Planning. This account includes all expenses incurred to represent the organization. Board meetings. reimbursements and incidental expenses paid to volunteers (excluding Board members). and Executive Board Meeting expenses. This account should be a header account with detailed accounts listed for the various inclusions. This account represents the costs of preparing and drafting submissions. as well as the costs of feasibility studies. This account is specifically for administration costs incurred by the organization. MidYear and Annual Conventions and any other expense not Page 7 of 11 504 Representation Expense (Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council . This account represents all costs relating to volunteers (including training of volunteers). This account includes both pre and post program or project costs and evaluation. governance activities. This account included any expenses related to boards. marketing plans. This account also represents all costs associated with meetings. volunteer management plans. 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. development and research that occurs within an organization. including school visit. * It includes catering costs for the meeting. * It includes allowances. Some organizations may wish to use this as a header breaking down specific accounts for management purposes. organizational agendas such as Research Panels.

This account includes the cost of newsletters. the costs may be capitalized. This account includes all costs incurred in non-academic activities. * This account excludes telecommunication and internet charges. This account includes all insurances including accident. This account represents motor vehicle expenses. (library-based) books. *It excludes the costs of printing loose-leaf brochures. This can be included under the heading of other accounts such as Academic Expense and Non-Academic Expense. including printing & photocopying of materials. 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. It includes rental fees. * It includes the costs of trophies. owned properties This account represents all membership fees paid by the organization. hard cover publications purchased by the nonprofit organization (but not capitalized as an asset). This account represents all donations and contributions made by the organization. as well as education kits provided to clients/participants. postage. This account includes all academic costs. This account includes all computer costs. This account includes other administrative costs associated with printing and stationery incurred by the organization such as photocopying and purchase of paper. materials used. Whilst most costs of development and maintenance of websites are an expense. stamps. for the organization and for members. building and contents. It includes transportation. transportation and any other expense directly attributable to academic activities. Freight and Courier Printing & Stationery 512 513 514 Publications and Information Resources (Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council . food. internet and website development and maintenance. This account represents all freight. including e-mail. franking costs and courier costs incurred by the organization. * This account includes the repairs and maintenance of computers (unless separately disclosed). and fuel and oil costs incurred by the organization in respect of motor vehicles owned or leased. photo-shoot costs and any other costs attributable to nonacademic activities. in some limited instances. It also includes the cost of computer software expensed (but excludes training costs). supplies used. medals and other awards other than those classified. awards.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 505 Academic Expense 506 Non-academic Expense 507 Computer Expense classified to those mentioned.

This account covers all small.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 515 516 Telephone & Fax Charges & Internet Miscellaneous Expenses 517 General Expense 518 Bank Charges (these are not coded as printing & stationery costs). Some organizations may wish to use this as a header breaking down specific accounts for management purposes. This account represents all telephone. This account represents all charges associated with the various bank accounts held by a nonprofit. It includes accommodation. and which are not specifically included in other items. The SCOA lists the names of account categories most likely to be required from Local Chapters to detail accounting information. and fax costs incurred by the organization. It also includes the costs incurred in printing promotional materials. From 1 June 2013. This account includes all costs not classified as administration cost. miscellaneous one-off expenses which may occur. and explains each one in plain language (a data dictionary or detailed description of the item). tickets and any other costs residual of those classified. convention kits. STANDARD CHART OF ACCOUNTS FACT SHEET The SCOA The SCOA is an agreed list of account categories for use by all Local Chapters. all Local Chapters will accept financial information from NFJPIA Region III Council in the defined accounting categories of the SCOA. mobile telephone. Benefits of the SCOA (Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council Page 9 of 11 .

However.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 Local Chapters will be able to use consistent accounting terms for all government grant funding. some have found the best approach is to adopt similar definitions of account categories into their existing chart of accounts. it is recommended that LCs use the SCOA. Ocampo PRESIDENT Systems Plus College Foundation ___________________________________ Francis Xavier W. Ferrer VICE PRESIDENT FOR ACADEMICS Systems Plus College Foundation (Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council Page 10 of 11 . Comparisons of financial information will be made easier when all Local Chapter recognize the same financial categories in their grant funding. Auditing of Local Chapters’ financial accounts will be simpler. Optional for Local Chapter It is not mandatory for Local Chapters to use the SCOA for their internal financial management. 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. Antonio VICE PRESIDENT FOR FINANCE Wesleyan University-Philippines Approved by: ___________________________________ Zheena E. Prepared by: ___________________________________ Leila Victoria R.

Bataan ___________________________________ Adrianne B. Villanueva VICE PRESIDENT FOR MEDIA Wesleyan University . Rivera VICE PRESIDENT FOR MEMBERSHIP Tarlac State University ___________________________________ John Kendrick H. Pajarin VICE PRESIDENT FOR AUDIT Colegio de San Juan de Letran . CISA ADVISER SGV & Co. Harve VICE PRESIDENT FOR COMMUNICATIONS University of the Assumption ___________________________________ Jane T.Philippines ___________________________________ Roy James S. David VICE PRESIDENT FOR NON ACADEMICS Holy Angel University ___________________________________ Enrico C. (Document Type) National Federation of Junior Philippine Institute of Accountants – Region III Council Page 11 of 11 . Alviz. CPA.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 ___________________________________ Emil Julius T. Enrile SECRETARY GENERAL Baliuag University Noted by: ___________________________________ Conrad Allan M.