Budget Management and Monitoring System (BMMS)

A presentation provided by SPIDC for a training seminar in Tarlac City

1. By: SYSTEMS AND PLAN INTEGRATOR AND DEVELOPMENT CORPORATION (SPIDC)
FOR THE YEAR 2021 IMPLEMENTATION FOR THE YEAR 2021 IMPLEMENTATION
Based on the Local Budget Circular dated June 10, 2016Based on the Local Budget Circular dated June 10, 2016

2. Objectives of the Training/Worskhop
To Provide awareness on the requirements of the preparation of the Annual
Investment Plan (AIP) and the Annual Budget Preparation (ABP).
To Synchronize the prepared AIP with the approved Projects for the preparation
of the Budget Proposal.
To be able to prepare the Annual Proposed Budget of each office in
accordance to the requirement of the LBC No. 112.
To standardize the preparation of the AIP for submission to the Planning &
Development Office in accordance to the requirements of the Law.
To standardize the preparation of Proposed Budget of each Office for
Submission to the Budget Office
To provide the template for the preparation of the AIP and Annual Proposed
Budget
To implement the electronic submission of proposed AIP & PPMP by each office
To implement the electronic approval of proposed AIP by the MPDC and
proposed Project Procurement Management Plan (PPMP) by the Budget OFiice

3. Designed and Developed by:
Systems & Plan Integrator & Development Corporation
BUDGET MANAGEMENT
MONITORING SYSTEM
BUSINESS PROCESS FLOW

4. Step 1: Annual Investment Plan Preparation
The Annual Investment Plan is the process of
preparing the yearly investment plan of the offices
of the Local Government Unit (LGU) for their
operations expenditure and projects to be
implemented for the improvement of the delivery
of public service.
The yearly plan is anchored on the Medium Term
Development Plan of the LGU extracted from the
LGU Long Term Development Plan (Comprehensive
Development Plan) which is based on the National
Mandate of the Law & Local Mandate.
The Local Planning Officer shall issue the
Development Programs prioritized based on the
approval of the Local Chief Executive Officer with
the advise of the Local Finance Committee.
Project
Plans AIP Entry
AIP Review
by PDO
Approved
for Budget
Preparation
By BO
Print
AIP/Sign
Local
Finance
Committee
Deliberation
CPDO
Project
Approval
Tagging
Project
Procuremen
t
Manageme
nt Plan

5. Step 2: Proposed Budget Preparation & Budget
Authorization
The Budget Office post the Agency Budget Ceiling,
Central Office & Economic Enterprise Budget Ceiling,
per Office Budget Ceiling (MOOE & CO) or the system
retrieves the previous years records as basis of
budget ceiling.
The system retrieves the budget ceilings and projects
approved where the Offices’ AO encodes their
proposed budgets & edits the PPMP from AIP based
on the budget ceiling provided as ceiling guide while
the Head of Office Reviews and submits this proposed
budget with their proposed PPMP.
The Local Budget Officer reviews and advise the
offices for any adjustment and approves the
proposed budget of each office and consolidates for
deliberation by LFC and advises offices for
adjustments. The adjusted proposed budget is
submitted to SP for approval.
Budget
Ceiling
from LFC
Agency,
Operating
Units, Offices
Budget
Ceiling Entry
Proposed
Budget &
PPMP Entry,
Review
Proposed
Budget
Hearing,
Approval
Print Proposed
Budget & PPMP
/Sign & Submit
Local Finance
Committee
Review,
Deliberation &
Approval

Consolidation
Submission to
SP
Proposed Budget
& PPMP
Adjustment Entry,
Review
Internal
Budget
Allocation
by BO
Approved
Annual
Budget
Ordinance
Print/sign
Notice of
Advice of
Allotment
Approved
Budget
Entry By Offices
& Review-
Approval by
BO
WFP
Posting
ABM

6. Step 3: Budget Execution
Budget Execution is the actual
Utilization of the approved budget
of each office.
Upon Purchase Request, the Office
shall generate the Certificate of
Availability of Allotment to be
signed by the Budget Officer.
The Bids and Awards Committee
shall process the request thru the
selection of the proper mode of
acquisition. Upon issuance of Notice
of Award the contract is prepared
by the BAC and the Purchase Order
is prepared by the GSO based on
the winning bidder bid price.
P.R.
Preparation
based on
PPMP by
Office
Print
Certificate of
Availability of
Funds
Process
Mode of
Acquisition
by BAC
Purchase Order
Preparation
based on
Winning Bidder
by GSO
Process/Print
Obligation No.
on CAA slip
Process Re-
alignment/
augmentatio
n
Process
Budget
Reversion/
Supplemental
Supplement
al Budget
Ordinance
To GAAMS (ACTG)
Reports
Generation
FROM
BUDGET
PROCESSES
S

7. ANNUAL BUDGET DELINEATION
DELINEATION OF ANNUAL ESTIMATED BUDGET PIE BY SECTOR % DISTRIBUTION
BUDGET DELINEATION FRAMEWORK

8. AIP – Annual Investment Plan
Refers to the Annual slice of the Municipal Local Development Investment
Program which constitutes the total resource requirements for all PPAs (Program,
Projects, Activities)
REFERENCE CODE
0000 – 000 – 0 – 0 – 00 – 000 – 000 – 000
ACTIVITYACTIVITY
PROJECT/ ACTIVITYPROJECT/ ACTIVITY
PROGRAMPROGRAM
OFFICEOFFICE
OFFICE TYPE (1- MANDATORY, 2 – OPTIONAL)OFFICE TYPE (1- MANDATORY, 2 – OPTIONAL)
LGU LEVEL (1-PROVINCE, 2- CITY, 3- MUNICIPALITY)LGU LEVEL (1-PROVINCE, 2- CITY, 3- MUNICIPALITY)
SUB-SECTORSUB-SECTOR
SECTOR (1000-GENERAL PUBLIC SERVICES SECTOR, 3000-SOCIAL SERVICES SECTOR, SECTOR (1000-GENERAL PUBLIC SERVICES SECTOR, 3000-SOCIAL SERVICES SECTOR,
8000- ECONOMIC SERVICES SECTOR & 9000-OTHER SERVICES)8000- ECONOMIC SERVICES SECTOR & 9000-OTHER SERVICES)

10. FUNDING SOURCE
BUDGET OPERATIONS MANUAL FOR LOCAL GOVERNMENT UNITS FUNDING SOURCE:
- General Fund (GF) Proper
- GF – Special Account (SA) – 20% Development Fund (DF)
-5% Local Disaster Risk Reduction Management Fund (LDRRMF)
-5% GAD Fund
-1% PWD
-1% Senior Citizen
- Women, Children & Youth
- Transfers from NGAs (Other than those accruing to the GF)
- Transfers from GOCCs (Other than those accruing to the GF)
- Transfers from Other LGUs
- Income of Local Economic Enterprises (for its own operations)
(Public Market, Slaughterhouse, Hospitals, Properties for lease, Business Units like
Hotels, Resorts,etc.
- Others

11. PPAs – program, projects, activities
Program – an integrated group of activities that contribute to a
particular continuing objective of a department/agency.
• Project – a special undertaking carried out within a definite time
frame and intended to result in some pre-determined
measure of goods and services.
• Activity – a work process that contributes to the implementation of
a program, sub-program or project.

12. Annex C. The Services Falling Under Each of the Major Sectors
Pursuant to the New Government Accounting System (NGAS) of the
Commission on Audit (COA)
General Public Services Sector
Executive Services
Legislative Services
Planning and Development Coordination Services
Budgeting Services
Treasury Services
Accounting Services
Administrative Services
Civil Registry Services
General Services
Assessment of Real Property Services
Auditing Services
Information Services
Legal Services l
Prosecution Services
Administration of Justice Services
Land Registration Services
Claim Registration Services
Police Services l
Fire Protection Services
Repair and Maintenance of Government Facilities

13. Social Services Sector
Education and Manpower Development
Public Education Services
Medical Subsidiary Services
Manpower Development Services
 Sports Center, Athletic Field, and Playground Maintenance Service cultural Project
Services
Cultural/Conference/Convention Center
 Operation Services l
Health
Health Services
Field Projects (Immunization, Inoculation, Blood Donor Services)
Day Care Clinic
Hospital Services
Chest Clinic

14. Housing and Community Development
Housing Projects
Sanitary Services
Street Cleaning
Garbage Collection
Sewerage and Drainage
Street Lighting
- Community Development Services
Economic Services Sector
Agricultural Services
Veterinary Services
Natural Resources Services
Architectural Services
Engineering Services l
Economic Enterprises and Public Utilities Operation Services l
Tourism Services
Other Services
Services that cannot be categorized in any of the sectors identified above shall be under
other services.

15. COST STRUCTURE
GAS- GENERAL ADMINISTRATION AND SUPPORT
STO – SUPPORT TO OPERATION
O – OPERATION
SPECIAL PURPOSE FUNDS
LOCALLY FUNDED PROJECTS
NATIONAL FUNDED PROJECTS
FOREIGN ASSISTED PROJECTS

ACTIVITY LEVEL
1- ACTIVITY
 2 – LOCALLY FUNDED PROJECTS
3 – FOREIGN ASSISTED PROJECTS

16. Unified Accounts Code Structure -UACS
The government implemented UACS as a single system
of codes classification for all budgetary, treasury, and
accounting transactions.
0-0-00-00-0-00000-000
RESERVED CODES
LOWEST LEVEL ACTIVITY/ PROJECT TITLE
IDENTIFIER (1- ACTIVITY, 2 –LFPs, 3 – FAPs)
SUB-PROGRAM
PROGRAM
ORGANIZATIONAL OUTCOME
COST STRUCTURE (1 - GAS, 2 - STO, 3 – OPERATIONS, 4 – SPF )

17. AIP PREPRATION RELATIVE
TO PROPOSED BUDGET

18. (15 YEARS)
LONG TERM
DEVT PLAN
(3 YEARS)
MEDUM TERM
DEVT PLAN
ANNUAL
INVESTMENT
PLAN & PPMP
PROPOSED
BUDGET BASED
ON AIP
APPROVED PER
OFFICE
BUDGET
CEILING
ALLOCATION
BY SECTOR,
BY DEPT.
APPROVED BUDGET
ORDINANCE BASED ON
APPROVED BUDGET
ADJUSTMENTS

19. REQUIREMENTS OF LBC NO. 112
1.Present project plans per program priority
in accordance to the National
Government Policy Mandate & Direction.
2.Separate Administrative Services Expenses
based on General Administration,
Operation, Support To Operation Cost
Structure from the LGU Funded Projects,
National Funded/Assisted Projects and
Foreign Assisted Projects

20. REQUIREMENTS OF LBC NO. 112
A.General Administration & Governance Program-Day to
day administrative operation
1.General Administrative Support Services:
PS (Regular/Casual Personal Services)
2. Support to Operation:MOOE (Utilities like Water, Electricity

,Telecommunications-telephone & Cell phone
subscription, internet subscription) & Fuel for service
vehicles, generators, trucks, ambulances)
3. Operation: MOOE & CO (Labor, Technical, Contracted
Services, Offices Supplies), Maintenance of Bldgs. &
Machineries)

21. B. SPECIAL PROJECTS: projects performed to make a difference in the daily operations of
the Local Government Unit. The projects are planned for the improvement of delivery of
services: Projects are Planned to contribute to the improvement of delivery of services
such as conduct Personnel Training/Workshops, establishing computerized systems,
process re-engineering, construction of Roads, Building, Bridges, Renovations where the
LGU shall be funding such projects or LGU may partner with International Entities or Local
Private Entities.
4. Locally Funded Projects: MOOE & CO –Additional Other Materials,
Replacement for existing equipments, purchase of vehicles, land, building construction,
renovation, roads, bridges, convention halls, etc. (special projects))
5. National Funded Projects: (NGA’s & GOCC’s and Office of the President’s
Grants or Donations placed as Trust Funds or General Funds
6. Foreign Assisted Projects: Foreign Grants or Donations placed as Trust Funds or
General Funds
REQUIREMENTS OF LBC NO. 112