3.Barangay-Budget-Preparation-Cei.mam Donna.pptx

BUDGET PREPARATION

1. Preparation Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT CCL-DBM

2. “ A financial plan embodying the estimates of income and expenditures for a given period of time (usually for one (1) fiscal year).” (Section 306 [a], R.A. No. 7160) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

3. The Local Budget Process Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

4. The Local Budget Process Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

5. Budget Preparation Budget Prepa r ation i s an executive functio n pursuan t t o S e c t i o n 3 3 1 ( a ) , R.A. No. 7160 “ U p o n r e c e i p t o f t h e s t a t e m e n t o f i n c o m e a n d e x p e n d i t u r e s f r o m t h e b a r a n g a y treasurer, the punong barangay p r e p a r e t h e b a r a n g a y b u d g e t s h a l l f o r t h e e n s u i n g f i s c a l y e a r in t h e m a nn e r a n d w i t h i n t h e p e r i o d p r e s c r i b e d in t h i s T i t l e a n d s u b m i t t h e a n n u a l b u d g e t t o t h e b a r a n g a y f o r l e g i s l a t i v e s a nn g u n i a n g enactment. ” Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

6. Budget Preparation Section 389 (b) (7), R.A. No. 7160 “In coordination with the barangay dev e l o p ment c oun c il, barangay shall prepare execu t iv e and s uppleme ntal th e p uno n g th e a n nual b u d gets of the barangay.” Article 417, IRR, R.A. No. 7160 “Changes in the annual budget may be done through supplemental budgets.” Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

7. Key Players Punong Barangay Barangay Treasurer Barangay Development Council Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

8. Steps in Preparing the Annual Budget Step 1 . Barangay Treasurer submits the detailed Statement of Income and Expenditure (Article 423 [b], IRR of R.A. No. 7160) On or before September 5 – the city or municipal treasurer (together with the city or municipal accountant), shall issue a certified statement covering the actual income of the past year and estimates of income of the current and ensuing fiscal years from local sources for the barangay concerned Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

9. O n or b efore S e p t e m b e r 1 5 – T h e treasu r e r punong sh a ll submit to t he barangay a statement covering the estimates of income and expenditures for the past, current, and the ensuing fiscal years. Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

10. Step 2. The Punong Barangay in coordination with the BDC prepares the barangay budget (Section 389 [b] [7], R.A. No. 7160) Task 1 . The punong barangay prepares the estimated income for the ensuing year upon receipt of the statement of income and expenditure from the barangay treasurer Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

11. O f th e t o t a l f u n d (estima t e d Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT T a s k 2 . general income), se t asid e 10 % for the Sangguniang Kabataan (Section 32 9 , R . A . No . 716 ) and i n fo r m the so o n SK Chair p er s on, as a s poss i ble , of t h e t o ta l am o un t r e p resen t i ng the 10% SK fund.

12. Task 3 . Sets aside not less than 20% of the barangay IRA share for development projects(Section 287, R.A. No. 7160) Task 4. Provides budgetary requirements (Section 331 [c], R.A. No. 7160) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

13. Payment of debts – must not exceed 20% of the regular income of the barangay (Section 303; Section 324[b], R.A. No. 7160) BDRRMF set aside not less than five percent (5%) of estimated revenue from regular sources (R.A. No. 10121) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

14. S tatutory and other contractual obligations (Section 324[b], R.A. No. 7160) 20% of IRA for development projects as mandated under Section 287 of R.A. No. 7160 and shall be utilized in accordance with DILG-DBM Joint Memorandum Circular No. 2017-1 dated February 22, 2017 Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

15. Task 5. Computes the mandatory requirements for personal services (PS), maintenance and other operating expenses (MOOE), and capital outlays (CO). Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

16. Total PS requirement for one (1) fiscal year shall not exceed 55% of the total annual income realized from local sources during the next preceding fiscal year (Section 331 [b], R.A. No. 7160) Essential expenditures such as rental, utilities, etc shall be given priority in the allocation of funds (Section 331 [c]; Section 324 [b], R.A No. 7160) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

17. Any available fund or resource of LGUs shall first be allocated for the provision of basic services and facilities before using such fund or resource for other purposes, unless otherwise provided in the Code (Section 17 [g], R.A. No. 7160) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

18. Basic services and facilities include, but are not limited to, the following: Agricultural support services which include planting materials distribution system and operation of farm produce collection and buying stations; Health and social welfare services which include maintenance of Barangay health center and day-care center; Services and facilities related to general hygiene and sanitation, beautification, and solid waste collection; Maintenance of Katarungang Pambarangay; Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

19. Basic services and facilities include, but are not limited to, the following: Maintenance of Barangay roads and bridges and water supply systems; Infrastructure facilities such as multi-purpose hall, multi-purpose pavement, plaza, sports center, and other similar facilities Information and reading center; and Satellite or public market Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

20. Task 6. Consolidates the estimated income and the proposed expenditures into: Part 1 – Receipts Program Part 2 – Expenditure Program Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

21. Task 7. Prepares the APP using the prescribed format (Section 7, R.A. No. 9184) Task 8. Prepares the Budget message (Section 314 [b] [1], R.A. No. 7160) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

22. Step 3. Punong Barangay submits the proposed Annual Budget to the sangguniang barangay not later tha n October 16 of the current fiscal year (Section 318, R.A. No. 7160) Budget Message Plantilla of Personnel Approved AIP Annual Procurement Plan BDRRM Plan reviewed by the appropriate Review Team List of Projects chargeable against the 20% development fund DILG-endorsed GAD Plan and Budget Statement of Indebtedness (if any) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

23. Barangay Budget Preparation Forms BBP Form No. 1 – Budget of Expenditures and Sources of Financing BBP Form No. 2 – Programmed Appropriation by PPA, Expense Class, Object of Expenditure and Expected Results Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

24. Barangay Budget Preparation Forms BBP Form No. 2-A – List of Projects Chargeable Against the 20% Development Fund BBP Form No. 3 – Plantilla of personnel BBP Form No. 4 – Statement of Indebtedness Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

25. Barangay Budget Preparation Form No. 1 Budget of Expenditures and Sources of Financing Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

26. Barangay Budget Preparation Form No. 2 Programmed Appropriation by PPA, Expense Class, Object of Expenditure and Expected Results Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

27. Barangay Budget Preparation Form No. 2A List of Projects Chargeable against the 20% Development Fund Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

28. Barangay Budget Preparation Form No. 3 Plantilla of Personnel Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

29. Barangay Budget Preparation Form No. 4 Statement of Indebtedness Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

30. Guidelines on the Preparation of the Annual Budget of Barangays Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT Local Budget Memorandum issued through For FY 2020 LBM No. 78 dated May 15, 2019

31. Changes in the Annual Budget – Supplemental Budget General Rule All budgetary proposals shall be included and considered in the budget preparation process (Section 321, R.A. No. 7160). Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

32. Exception Changes in the annual budget may be done through supplemental budgets (Section 321, R.A. No. 7160 as supplemented by Administrative Order No. 47 dated April 12, 1993) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

33. Three scenarios when the barangay may enact supplemental budgets: When supported by funds actually available as certified by the local treasurer and local accountant Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

34. If covered by new revenue sources Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

35. R ealignme n t in times of public calamity Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

36. Steps in preparing a Supplemental Budget 1. Local Treasurer and Local Accountant prepare and certify the Statement of Funding Sources to be attested by the Punong Barangay (Barangay Supplemental Budget Preparation (BSBP) Form No. 1 ) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

37. Steps in preparing a Supplemental Budget 2. Local Treasurer prepares the Statement of Supplemental Appropriations to be approved by the Punong Barangay (BSBP Form No. 2 ) Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

38. Steps in preparing a Supplemental Budget 3. Punong Barangay, through a covering letter, officially submits the two (2) supplemental budget forms to the Sangguniang Barangay for authorization through the enactment of a supplemental appropriation ordinance. Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT

39. 20% Development Fund IRA - Budget Year P 2,500,000.00 x 20% = P 500,000.00

40. 5% LDRRM Fund Regular Income- Budget Year- P 3,654,000.00 x 5% = P 182,700.00

41. 10% SK Fund General Fund Income – Budget Year P 4,152,000.00 x 10% = P 415,200.00

42. PS Cap Regular Income – Next preceding year P 2,242,000.00 x 55% = P 1,233,100.00

43. Computation of Regular Income Regular Income – Next preceding year Total Income (2018) – P 2,540,000.00 Less: Non-recurring income: Subsidy from LGU - 298,000.00 --------------------- Regular Income - P 2,242,000.00 55% --------------------- PS cap/limitation P 1,233,100.00 =============

44. Computation of PS Limitation PS cap/limitation P 1,233,100.00 Less: PS Cost Salaries and Wages P 150,000.00 Honoraria 855,000.00 Cash Gift 55,000.00 Mid-Year Bonus 70,000.00 Year-End Bonus 70,000.00 PEI 55,000.00 Monetization 10,000.00 1,265,000.00 Excess P (31,900.00) Add: Waived Items: YEB (1,000 for PB + 600 for SB/BT/BS) 7,000.00 Cash Gift (5,000.00 X 11) 55,000.00 Monetization 10,000.00 72,000.00 Allowable P 40,100.00 ===========

45. BBP Form No. 1 2024

46. BBP Form No. 1 (Cont.)

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48. BBP Form No. 2

49. BBP Form No. 2 (Cont.)

50. BBP Form No. 2 (Cont.)

51. BBP Form No. 2 (Cont.)

52. BP Form No. 2A

53. BBP Form No. 3

54. BBP Form No. 4

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60. Annual Budget

61. Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT