Powerpoint Presentation on the Budget Cycle

PPT on the budget process

1. LIGAYA S. FOZ Administrative Officer II- Budget Section BUDGETING 101

2. ROLES OF BUDGET FOCAL

3. Budget Cycle

4. Budget Call CSO Consultation Dialogue RDC Forms Budget Proposals National Expenditure Program (NEP)

5. BEDs 1, 2 and 3 (FP, PP, MDP) SENATE HEARING BICAMERAL COMMITTEE HEARING HEARING ON HOUSE OF REPRESENTATIVES Approval of GAA Budget Legislation Direct Release or Centrally Managed Funds

6. What is the difference between appropriation and allotment? Appropriation refers to an authorization made by law or legislative enactment directing payment out of government funds under specified conditions or for specific purposes. A llotment is an authorization issued by the DBM to an implementing agency to incur obligations for specified amounts contained in a legislative appropriation.

7. The GAA is the legislative authorization that contains the new appropriations in terms of specific amounts for Personnel services, mooe and capital outlay authorized to be spent for the implementation of various programs/projects and activities of all departments, bureaus and offices of the government for a given year. It is one of the most important legislations that Congress annually passes. It defines the annual expenditure program of the national government and all of its instrumentalities. What is GAA?

8. GAARD/GARO/ SARO/SAA (programmed/ unprogrammed ) RAOD MODIFICATION OF FUNDS WFP MONITORING TOOL Budget Execution OBLIGATION OF FINANCIAL CLAIMS

9. What happens when the General Appropriations Act has not been passed by Congress? Obligational Authority is issued by the DBM for an agency to utilize a certain percentage of its appropriation and all obligations incurred pertaining thereto shall be treated as overdraft in appropriations. Said overdraft shall be adjusted accordingly upon receipt of the GARO/SARO

10. Exemption to the issuance of obligational authority Centrally-managed items (CMIs) of departments/agencies. CMIs are lump-sum funds in the regular budget intended to be allocated to the different OUs of the concerned agency. The recipient OUs and corresponding amount of allocation shall be indicated in the request/details submitted by the Central Office of the concerned department/agency, as basis of DBM in the release of funds. The total allocation of OUs per submitted details shall not exceed the CMI level provided per GAA or NEP, whichever is lower.

11. General Appropriations Act Release Document (GAARD) – serves as the obligational authority for the comprehensive release of budgetary items appropriated in the GAA, categorized as For Comprehensive Release (FCR). General Allotment Release Order (GARO) is a comprehensive authority issued to all agencies to incur obligations not exceeding an authorized amount during a specified period for the purposes indicated. It shall cover expenditures common to most, if not all, agencies without need of special clearance or approval from a competent authority Special Allotment Release Order (SARO) is a specific authority issued to one or more identified agencies to incur obligations not exceeding a given amount during a specified period for the purpose indicated. It shall cover expenditures the release of which is subject to compliance with specific laws or regulations or are subject to separate approval or clearance by competent authority. WHAT IS GAARD, GARO/SARO and SAA?

12. In the case where the GARO/SARO received by the CO includes the allotment of the ROs, the CO shall sub-allot the amount pertaining to its ROs. It shall not exceed the allotment releases of the CO What is Sub Allotment Advice?

13. What happens upon receipt of the GARO/ SARO/ GAA?

14. the amount authorized shall be recorded in the books of accounts of the agencies (RAOD). The correct Fund Code for releases under the GARO shall be observed. WFP needs to be updated

15. What is obligation?

16. What is savings? Sec. 77. Meaning of Savings Savings refer to portions or balances of any released appropriations in this Act which have not been obligated as a result of any of the following : implementation of measures resulting in improved systems and efficiencies and thus enabled an agency to meet and deliver the required or planned targets, programs and services approved in this Act at a lesser cost . In case final discontinuance or abandonment is used as basis in the declaration of savings, such discontinued or abandoned program, activity or project shall no longer be proposed for funding in the next two (2) fiscal years

17. What is modification of funds? Sec. 80. Rules on Modification in the Allotment. As a general rule, departments, bureaus and offices of the National Government, including Constitutional Offices enjoying fiscal autonomy and SUCs shall spend what is programmed in their respective appropriations in this Act. In exceptional circumstances, agencies may modify the allotment issued within an activity or project subject to approval of the following ensued by the timely submission of reports by all offices concerned:   The heads of agencies or their duly authorized representatives who shall be the official next-in-rank, for the following: ( i ) change in the details of an activity or project without changing its nature and within the same operating unit; and (ii) change in the object of expenditure (Travelling Expenses or Investment Outlays) within an allotment class (MOOE or Capital Outlays);   The DBM, in the following modifications: ( i ) from one allotment class to another; (ii) from one operating unit to another; and (iii) within a special purpose fund; and   The President of the Philippines, for the payment of intelligence funds within the Executive branch.   All modification in the allotment shall not entail any increase in the total amount appropriated for an activity or project .

18. What is fund augmentation? Sec. 78. Rules on Augmentation. Augmentation is the act of the constitutional officers authorized to use savings in their respective appropriations in this Act to cover actual deficiencies in any existing item of appropriation within their respective offices in the current year. A deficiency in an item of appropriation may result from:   Unforeseen modifications or adjustments in the program, activity or project; or   Re-assessment in the use, prioritization and/or distribution of resources.   An item of appropriation shall pertain to the amount appropriated for an activity or project authorized in this Act.   The particulars of the expenditures to be funded from savings should be within the scope of, or covered by an existing activity or project. The existence of an activity or project regardless of the availability of allotment class/ es is sufficient for the purpose of augmentation.   In no case shall a non-existent activity or project be funded by augmentation from savings or by the use of an appropriations authorized in this Act.

19. FO AUGMENTATION Sec. 82. Mandatory Expenditures. The amounts programmed for petroleum, oil and lubricants, water, illumination and power services, telephone and other communication services, and rental expenses shall be disbursed exclusively for such items of expenditures. Any available allotment from these items after taking into consideration the agency's full year requirements may be modified only in the last quarter and subject to the provisions of Section 80 hereof.   Disbursements or expenditures of agencies in violation of this Section shall be void and shall subject the erring officials and employees to disciplinary actions in accordance with Section 43, Chapter 5, and Section 80, Chapter 7, Book VI of E.O. No. 292, and to appropriate criminal action under existing penal laws.

20. THE ENHANCED WFP MONITORING TOOL

21. Budget Accountability SAOB BFARs Narrative Report (admin and operational costs) HPMES

22. STATEMENT OF ALLOTMENT, OBLIGATION AND BALANCES

23. BUDGET FINANCIAL ACCOUNTABILITY REPORTS

24. NARRATIVE REPORT OF ACCOMPLISHMENT

25. HPMES