The BUDGET PROCESS BUDGET CYCLE Preparation Accountability Execution

The BUDGET PROCESS BUDGET CYCLE Preparation Accountability Execution Authorization

RA No. 10147 5 Priority Areas of AQUINO GOVT • Transparency • Economic Growth • Anti-Poverty • Rule of Law • Climate Change

The BUDGET PROCESS Budget Execution • Commences with the issuance by the DBM of a circular prescribing the preparation of the annual agency Work and Financial Plans (WFPs); The Agency annual work and financial plan is required for the following purposes : 1. To promote efficiency in the programming and utilization of budgetary resources; 2. To adjust agency physical targets and the corresponding level of program implementation in accordance with the budgetary level approved under the General Appropriations Act; 3. To establish appropriate schedules for the release and utilization of funds in accordance with the agency work program.

1. ABM 2. SAROs 3. NCA 4. NCAA 5. Cash Disbursement Ceiling

The BUDGET PROCESS and SIGNIFICANT BUDGETARY INNOVATIONS Budget Accountability • Involves submission of Accountability Reports to fiscal oversight agencies (DOF, COA) and Congress. This is preparation of financial and physical reports of operations which basically provides information on the actual physical accomplishment of agencies in relation to actual expenses accrued. • There also Performance Reviews and Audits. Auditing is the detailed examination of the books of accounts to ensure that all expenses have been disbursed in accordance with accounting regulations and purpose for which the funds have been authorized.

Personal Services Cost 1. Salaries 2. 3. 4. 5. 6. 7. 8. ex. New Teacher 1 SG 11 SSL 3 Second tranche June 23, 2010 – May 31, 2011 = Php 15, 649. 00 June 01, 2011 17, 099. 00 Clothing 4, 000/annum PIB 2, 000/annum (not included) PERA 2, 000/month Health Ins Pre 188/month Pag-Ibig 100/month ECIP 100/Month RLIP 12% of total salaries

Personal Services Cost 1. Salaries ex. New Teacher 1 SG 11 SSL 3 Second tranche Jan 01, 2011 – May 31, 2011 = Php 15, 649. 00 X 5 mo=78, 245 June 01, 2011 -Dec 31, 2011 17, 099. 00 X 7 Months =119, 693 2. Clothing 3. PIB 4. PERA 5. HIP 6. Pag-Ibig 7. ECIP 8. RLIP 9. Bonus 10. Cash Gift TOTAL Less: 8%tax) Net 4, 000 0 24, 000 2, 256 1, 200 23, 753 17, 099 5, 000 276, 446 15, 845 260, 601 ( NCA to be received)

Type of Report Form No. Period of Submission BED 1 On or before February 15 of each year. A. Annual Budget Execution Documents (BEDs) Physical and Financial Plan Monthly Cash Program BED 2

Type of Report Form No. Estimate of Monthly Income BED 3 List of Not Yet Due and Demandable Obligations BED 4 Period of Submission On or before January 31 of each year.

Type of Report Form No. Period of Submission B. Budget Accountabilit y Reports (BARs) Quarterly Physical Report of Operation Quarterly Financial Report of Operation BAR 1 On or before the 10 th day following the quarter. BAR 2

Type of Report Form No. Quarterly report of Income BAR 3 Monthly Statement of Allotments Obligations and Balances Monthly Report of Disbursements BAR 4 BAR 5 Period of Submission On or before the 10 th day following the month.