RC

dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTA

The objectives NGAS include all of the following, excepta.

To simplify government accounting and its eventual computerizationb.
To adopt a system that is conformity with Philippine Financial Reporting Standar
ds (PFRS)c.
To keep close tabs on erring officers that misappropriate government fundsd.
To generate periodic and relevant financial reports for better monitoring of per
formance2.
It is the government body that keeps the general accounts of the government and
prepares the annual financialstatement of the national government, local governm
ent agencies and government-owned or controlled operations(GOCCs)?a.
Commission on Audit( CoA) c. Department of Budget and Managementb.
Bureau of Treasury d. Department of Finance3.

What are the components of the financial statements (FS) under NGAS?a.
Balance sheet, statement of income and expenses and notes to the FSb.
Balance sheet, statement of income and expenses and cash flow statementc.
Balance sheet, statement of income and expenses and statement of government equi
tyd.
Balance sheet, statement of income and expenses, cash flow statement, statement
of government equity andnotes to the FS4.
It is a system of prescribing the procedures for recording appropriations, allot
ments and obligations.a.
Fund accounting c. Obligation accountingb.
Budgetary accounting d. Treasury disbursement coding system5.
It is an authorization made by law or other legislative enactment, directing pay
ments of goods and services outgovernment funds under specifiedcondition or for
specific purposes.a.
Allotment c. Appropriationb.
Obligation d. Malversation6.
It is the allotment by the Central office to its Regional office.a.
Regular allotment c. Ordinary Allotmentb.
Suballotment d. Secondary Allotment7.
It refers to the commitment by a government agency arising from an act of a duly
authorized official that binds thegovernment to the immediate or eventual payme
nts of a sum of money.a.
Allotment c. Appropriationb.
Obligation d. Malversation8.
It is an authorization issued by the DBM to government agencies to withdraw cash
from the National Treasurythrough the issuance of Modified Disbursement System
Checks.a.
Allotment c. Appropriationb.
Obligation d. Notice of Cash Allocation9.
The following are the system followed in the NGAS, excepta.
Commercial accounting c. Responsibility accountingb.
Double-entry bookkeeping d. Fund accounting10.
Which is not a basic feature of NGAS?a.
One-fund concept c. Three-digit account number systemb.

Two-column trial balance d. Four-digit responsibility account coding structure11

.
Which is not a basic feature of NGAS?a.Straight-line depreciation c. Corollary a
nd negative (red) entriesb. Allowance for doubtful accounts d. Perpetual invento
ry system12.
This serves as the basis for recording transactions in the general journal.a. Jo
urnal Entry Voucher (JEV) c. Government bidding filesb. Source documents d. Gove
rnment contractor form13.
Which of the following is not a Regular Agency Book?a. General journal c. Cash J
ournalb. General ledger d. Check disbursements journal14.
Under NGAS, supplies and materials purchased for inventory purposes are recorded
usinga. First-in, first-out(FIFO) c. Weighted averageb. Last-in, first-out (LIF
O) d. Moving average15.
Once a government agency receives Notice of Cash Allocation (NCA), it shall
debit Cash
-National Treasury,
Modified Disbursement System and credit
a. NCA- Local Government c. Subsidy Income- Local Governmentb. NCA- National Go
vernment d. Subsidy Income- National Government16.
Petty cash fund being maintained by government agencies shall be maintained unde
ra. Fluctuating fund system c. Either of theseb. Imprest system d. Neither of th
ese17.
Under NGAS, the standard residual value of depreciable assets is equal toa. 10%
of cost c. P 1,000
b. Zero d. P 5,00018.
It represents all funds received by the government from taxes, grants, aids and
subsidies.a. Government income c. Cash Fundb. Government surplus d. Borrowing19.
What are the two major classification of government income?a. National and Local
 income c. External and Internal tradeb. General and Specific income d. Any of t
hese20.
Specific income accounts of the government include all of the following, excepta
. Taxes imposed on income c. Taxes on international tradeb. Taxes imposed on pro
perties d. Grants and donations21.
Which is
not
a major classification of government expenses?a. Personal Services c. Selling an
d administrative expensesb. Financial expenses d. Maintenance & other operating
expenses22.
Personal services in government entities would normally includea. Advertising, r
ent, insurance and gasolineb. Salaries, bonuses and allowancesc. Travels, traini
ng, seminar and telephoned. Bank charges, interest and foreign currency exchange
losses23.
These accounts are closed to the government equity account at the end of the per
iod.a. Balance sheet accounts c. Guarantee depositb. Intermediate accounts d. Al
lowance for doubtful accounts24.

A government agency shall maintain which of the following registries for allotme
nts and obligations?a.Registry of Allotments and Obligation- Personal Services (
RAOPS)b. Registry of Allotments and Obligation-Maintenance & Other Operating Exp
enses (RAOMO) & Registry of Allotments and Obligation- Financial Expense (RAOFE)
c. Registry of Allotments and Obligation-Capital Outlay (RAOCO)d. All of the cho
ices25.
In Controlling and monitoring the appropriations and allotment, DBM shall mainta
in the following registries, excepta. Registry of Appropriation & Allotment (RAP
AL)b. Registry of Special Purpose Fund Appropriation (RESPFA)c. Registry of Allo
tments & NCA (RANCA)d. Registry of Notice of Cash Allocation and Replenishments
(RENREP)26.
This consists of cash and resources of the government that are available for any
purpose.a. General fund c. Trust fundb. Special fund d. Depository fund27.
Fund administered by government under a fiduciary capacity is referred to asa. G
eneral fund c. Trust fundb. Special fund d. Depository fund28.
Which is (are) a
special purpose fund
created as required by law r by a donor agency?a. Miscellaneous Personal Fund c.
Organization Adjustment Fundb. Calamity Fund d. All of the choices29.
Which is not a local government fund?a. General fund c. Special education fundb.
Infrastructure fund d. Pork barrel fund30.
A local government fund that constitutes the annual contribution from city or mu
nicipality in the amounts approvedby law for each barrio which is spent solely f
or community development projects.a.Infrastructure fund c. Trust fundb. Special
education fund d. Barrio development fund31.
Disbursement of local funds must be approved bya. Division head c. Accountantb.
Local administrator d. Local chief executiveTerminologies __________________1. A
government official that disburses government funds beyond approved budget may
be chargedwith __________________2.The activities necessary to perform a major p
urpose for which a government entity is established. __________________3. It is
a compound of program covering a homogeneous group of activities that result in
theaccomplishment of an identifiable output. __________________4.The services, p
roducts or benefits accruing to the public estimated in terms of performance tar
get. __________________5.The actual asset of the government agency such as cash,
receivables, land and buildings. __________________6. A national budget designe
d wherein total estimated revenue is more than total estimatedexpenditures. ____
______________7. This type of budget focuses on the objects of expenditure such
as salaries and wage, travelingexpenses, freight, supplies, materials equipment.
__________________8. This is a process in budget preparation that required syst
ematic consideration of all programs,
projects, and activities with the use of defined ranking procedures, and does no
t accept the prior s year budget as a startin
gpoint for analysis. __________________9.A covering letter in trans
mitting as agency s accounting
report to CoA, DBM and others agencies. __________________10. It is the allotmen
t release by
Local Government Units ( LGU) or Department of Budget andManagement to barangay
s.RC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTARC
dm
dl
foh
but not distribution cost kahit pa variable

alloc = cc

keep or drop:
oi if other is dropped = oi - allocated common cost of dropped segment

special order accepted:

w/cap - incre revenue : sp-vc
wo cap - lost from regular sales: np-sp
___
effect in oi
No additional selling expenses would be incurred on the special order. = wlang s
elling expense ung special order

Kerrigan Lumber Yard receives 12,000 large trees each year that they process int
o rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is
considering processing the logs further into refined lumber. Each log can be pr
ocessed into 200 feet of refined lumber at an additional cost of $0.40 per foot.
The refined lumber can be sold for $0.95 per foot.

sell @ split off: 75

selling price after processed = 200x.95
addtl processing cost = 200x.4
increase of income = process further inc-sell at splitoff inc
Target price ? desired profit = Target cost
Target price ? 0.2 (target price) = $64
Target price = $80

w/ excess capacity = @market price

a capacity to produce 2,000 units and is expecting to sell 1,500 units. = min t
ransfer price = vc

??

Budget prep
- Issue budget call
o budget parameters set by DBCC and policy guidelines and procedures In pr
ep and submission of agency budget proposals
o Budget call is issued on December
o increase citizenship participation thru partnering with Civil Society Or
g and other citizen stakeholders as they prepare budget proposals (institutional
ization)
o allocating resources fro top to bottom now Bottom up- grassroot comm. Wi
ll be engaged in designing national budget; focus on rural dev prog and conditio
nal cash transfer prog of poorest municipalities
- after submitting agency budget proposal to DBM, gov agencies defend prop
osed budget to tech panel of DBM (who review prop and recommend);
- recommendations are presented bef an executive review board (DBM sec and
senior officials)
- DBM consolidates recommended agency budgets and recommendations into NEP
and BESF (National Expenditure program and Budget of Exp and Sources of Financi
ng)
- Proposed budget is presented by DBM with DBCC to president and cabinet f
or further refinements.
- Once approved by Pres and Cabinet, DBM prepares and finalizes the budget
docs to be submitted to Congress
- END: submission of proposed national budget President s Budget to Congress;
submission of pres budget day after SONA
-
- Pres budget docs:
a. President s budget message
b. Budget of Expenditure and Sources of Fiancing
c. National Expenditure program
d. Details of Selected programs and projects
e. Staffing Summary
II. Budget Legislation
- Starts at receipt of PB by House speaker
- Ends with president s enactment of GAA
- HOR assigns PB to House App Committee, wc conduct hearing and scutinize
their prog and prog- then makes Gen Appropriation Bill
- GAB is sponsored pres and defended by App Committee and Sub Committee Ch
airment
- GAB is approved on 2nd and 3rd hearing
- After receing GAB from HOR, senate finance com and sub com makes committ
ee hearings and plenary delib on GAB
- After: bicameral conference harmonized version of GAB- submit to both hous
es- vote to ratify the finalGAB
- Passed to pres GAB is enrolled
- Pres and DBM review GAB and prepare VETO message (direct/conditional imp
le)
- GAB only legislative measure where pres can iompose line veto
- When GAA is not enacted previous year GAA is auto (same parin PAP) fundi
ng for prog or proj that has been aleready terminated is realigned for other exp
- Appropriations approve by Legislative body in the form of:
1. General App Law- covers most exp of gov
2. Supplemental App law passed from time to time
3. Automatic APpp for fixed and specific purpose
-
III. Budget exec and ope
- Operational aspect
- Principal tools of mgt
- Ensure public funds are spent on specific purpose
- Develops operating budget (program/work to be done, time, manpower/resou
rces, peso)
- Medium thru wc plans of ope can be implemented using available resources
- BEGINS: DBM s issuance of guidelines of release and utilization of funds
- Agencies REQUIRED to submit Budget Execution Doc at start of budget exec
- Budget Exec0 outlines agency plans and performance targets
- DBM set a limit for allotments issued to agency and on Aggregate thru AL
LOTMENT RELEASE PROG
- ARP of each agency- total amount of agency specific budget under GAA as
well as Auto App
- Cash release prog is also formulated alongside to set a guide for disbur
sement levels
- Allotments orig released by DBM thru Agency Budget Matrix and SARO; new
obligational authroirty includes GAARD, SARO, GARO
IV. Budget Accoutnability
- Ensure whether used properly and contributing to achievement of socio ec
on goals
- Happens alongside budget econ phase
- Monitors efficiency of fund utilization, assess agency perf and provides
vital basis for reforms and new polcities
- Agencies are held accountable on how to use funds ethically, attainment
and outcome
- Performance measures are set alongside the prep of National budget and i
ndicated in OPIF book of outputs
- Performance targets are firmed during prep of BED
- Budget and Financial accountability reports- submitted on a monthly and
quarterly ; shows how agencies used their funds and identify their corresponding
physical accomplishment
- Fail to submit BFAR- penalize agenciesby withholding fund release (Misca
llaneous Personal Benefit Fund; limited allotment only agencies will be penalize
d and implementation is not disrupted
- DBM reg reviews financial and physical per of agencies
- Actual utilization of fudns and physical accom are evaluated against tar
gets as identified by OPIF and agencies BED
- Agency performance review- quarter or sem
- Annual Budget Perf Assesment Review conducted to determine each agency s a
ccomplishment and performance by year end
- DBM regulary reports resultsto presi
- Auditing is not within DBM s jurisdiction- logged under COA
- Auditing is critical in ensuring agency accountability of public fudns
- DBM uses COA s audit reports in confirming agency performance, determining
budgetary levels for agencies and addressing issues of fund usage
- DBM process of establishing a performance based incentive system wc will
recognize and reward good perf among gov employees
Budgetary Accounts System
Allotment Release Prog- ceiling for aggregate allotment releases during year fro
m all sources; amount equal to its appropriations:
1. New appropriations
2. Automatic Appropriaions
3. Continuing Appropriations
Budgetary accounts:
1. Appropriation
2. Allotment
3. Obligation
Revised coa doesn t include classification and codes for bduegtary accounts
Info system need to provde in response to the required input of any exp account
code an amount with respect to appropriations, adj to app, adj app, allotment,
transfers

Fund release Docu

1. Obligational auth/allot
- GAARD
- SAROa
- GARO
2. Disbursement Auth
- NCA
- NCAA
- CDC
- NTA

The objectives NGAS include all of the following, excepta.

To simplify government accounting and its eventual computerizationb.
To adopt a system that is conformity with Philippine Financial Reporting Standar
ds (PFRS)c.
To keep close tabs on erring officers that misappropriate government fundsd.
To generate periodic and relevant financial reports for better monitoring of per
formance2.
It is the government body that keeps the general accounts of the government and
prepares the annual financialstatement of the national government, local governm
ent agencies and government-owned or controlled operations(GOCCs)?a.
Commission on Audit( CoA) c. Department of Budget and Managementb.
Bureau of Treasury d. Department of Finance3.
What are the components of the financial statements (FS) under NGAS?a.
Balance sheet, statement of income and expenses and notes to the FSb.
Balance sheet, statement of income and expenses and cash flow statementc.
Balance sheet, statement of income and expenses and statement of government equi
tyd.
Balance sheet, statement of income and expenses, cash flow statement, statement
of government equity andnotes to the FS4.

It is a system of prescribing the procedures for recording appropriations, allot

ments and obligations.a.
Fund accounting c. Obligation accountingb.
Budgetary accounting d. Treasury disbursement coding system5.
It is an authorization made by law or other legislative enactment, directing pay
ments of goods and services outgovernment funds under specifiedcondition or for
specific purposes.a.
Allotment c. Appropriationb.
Obligation d. Malversation6.
It is the allotment by the Central office to its Regional office.a.
Regular allotment c. Ordinary Allotmentb.
Suballotment d. Secondary Allotment7.
It refers to the commitment by a government agency arising from an act of a duly
authorized official that binds thegovernment to the immediate or eventual payme
nts of a sum of money.a.
Allotment c. Appropriationb.
Obligation d. Malversation8.
It is an authorization issued by the DBM to government agencies to withdraw cash
from the National Treasurythrough the issuance of Modified Disbursement System
Checks.a.
Allotment c. Appropriationb.
Obligation d. Notice of Cash Allocation9.
The following are the system followed in the NGAS, excepta.
Commercial accounting c. Responsibility accountingb.
Double-entry bookkeeping d. Fund accounting10.
Which is not a basic feature of NGAS?a.
One-fund concept c. Three-digit account number systemb.
Two-column trial balance d. Four-digit responsibility account coding structure11
.
Which is not a basic feature of NGAS?a.Straight-line depreciation c. Corollary a
nd negative (red) entriesb. Allowance for doubtful accounts d. Perpetual invento
ry system12.

This serves as the basis for recording transactions in the general journal.a. Jo
urnal Entry Voucher (JEV) c. Government bidding filesb. Source documents d. Gove
rnment contractor form13.
Which of the following is not a Regular Agency Book?a. General journal c. Cash J
ournalb. General ledger d. Check disbursements journal14.
Under NGAS, supplies and materials purchased for inventory purposes are recorded
usinga. First-in, first-out(FIFO) c. Weighted averageb. Last-in, first-out (LIF
O) d. Moving average15.
Once a government agency receives Notice of Cash Allocation (NCA), it shall
debit Cash
-National Treasury,
Modified Disbursement System and credit
 a. NCA- Local Government c. Subsidy Income- Local Governmentb. NCA- National Go
vernment d. Subsidy Income- National Government16.
Petty cash fund being maintained by government agencies shall be maintained unde
ra. Fluctuating fund system c. Either of theseb. Imprest system d. Neither of th
ese17.
Under NGAS, the standard residual value of depreciable assets is equal toa. 10%
of cost c. P 1,000
b. Zero d. P 5,00018.
It represents all funds received by the government from taxes, grants, aids and
subsidies.a. Government income c. Cash Fundb. Government surplus d. Borrowing19.
What are the two major classification of government income?a. National and Local
income c. External and Internal tradeb. General and Specific income d. Any of t
hese20.
Specific income accounts of the government include all of the following, excepta
. Taxes imposed on income c. Taxes on international tradeb. Taxes imposed on pro
perties d. Grants and donations21.

Which is
not
a major classification of government expenses?a. Personal Services c. Selling an
d administrative expensesb. Financial expenses d. Maintenance & other operating
expenses22.
Personal services in government entities would normally includea. Advertising, r
ent, insurance and gasolineb. Salaries, bonuses and allowancesc. Travels, traini
ng, seminar and telephoned. Bank charges, interest and foreign currency exchange
losses23.
These accounts are closed to the government equity account at the end of the per
iod.a. Balance sheet accounts c. Guarantee depositb. Intermediate accounts d. Al
lowance for doubtful accounts24.
A government agency shall maintain which of the following registries for allotme
nts and obligations?a.Registry of Allotments and Obligation- Personal Services (
RAOPS)b. Registry of Allotments and Obligation-Maintenance & Other Operating Exp
enses (RAOMO) & Registry of Allotments and Obligation- Financial Expense (RAOFE)
c. Registry of Allotments and Obligation-Capital Outlay (RAOCO)d. All of the cho
ices25.

In Controlling and monitoring the appropriations and allotment, DBM shall mainta
in the following registries, excepta. Registry of Appropriation & Allotment (RAP
AL)b. Registry of Special Purpose Fund Appropriation (RESPFA)c. Registry of Allo
tments & NCA (RANCA)d. Registry of Notice of Cash Allocation and Replenishments
(RENREP)26.
This consists of cash and resources of the government that are available for any
purpose.a. General fund c. Trust fundb. Special fund d. Depository fund27.
Fund administered by government under a fiduciary capacity is referred to asa. G
eneral fund c. Trust fundb. Special fund d. Depository fund28.
Which is (are) a
special purpose fund
created as required by law r by a donor agency?a. Miscellaneous Personal Fund c.
 Organization Adjustment Fundb. Calamity Fund d. All of the choices29.
Which is not a local government fund?a. General fund c. Special education fundb.
Infrastructure fund d. Pork barrel fund30.
A local government fund that constitutes the annual contribution from city or mu
nicipality in the amounts approvedby law for each barrio which is spent solely f
or community development projects.a.Infrastructure fund c. Trust fundb. Special
education fund d. Barrio development fund31.
Disbursement of local funds must be approved bya. Division head c. Accountantb.
Local administrator d. Local chief executiveTerminologies __________________1. A
government official that disburses government funds beyond approved budget may
be chargedwith __________________2.The activities necessary to perform a major p
urpose for which a government entity is established. __________________3. It is
a compound of program covering a homogeneous group of activities that result in
theaccomplishment of an identifiable output. __________________4.The services, p
roducts or benefits accruing to the public estimated in terms of performance tar
get. __________________5.The actual asset of the government agency such as cash,
receivables, land and buildings. __________________6. A national budget designe
d wherein total estimated revenue is more than total estimatedexpenditures. ____
______________7. This type of budget focuses on the objects of expenditure such
as salaries and wage, travelingexpenses, freight, supplies, materials equipment.
__________________8. This is a process in budget preparation that required syst
ematic consideration of all programs,
projects, and activities with the use of defined ranking procedures, and does no
t accept the prior s year budget as a startin
gpoint for analysis. __________________9.A covering letter in trans
mitting as agency s accounting
report to CoA, DBM and others agencies. __________________10. It is the allotmen
t release by
Local Government Units ( LGU) or Department of Budget andManagement to barangay
s.

1.
The objectives NGAS include all of the following, excepta.
To simplify government accounting and its eventual computerizationb.
To adopt a system that is conformity with Philippine Financial Reporting Standar
ds (PFRS)c.
To keep close tabs on erring officers that misappropriate government fundsd.
To generate periodic and relevant financial reports for better monitoring of per
formance2.
It is the government body that keeps the general accounts of the government and
prepares theannual financial statement of the national government, local governm
ent agencies andgovernment-owned or controlled operations (GOCCs)?a.
Commission on Audit( CoA) c. Department of Budget and Managementb.
Bureau of Treasury d. Department of Finance3.
What are the components of the financial statements (FS) under NGAS?a.
Balance sheet, statement of income and expenses and notes to the FSb.
Balance sheet, statement of income and expenses and cash flow statementc.
Balance sheet, statement of income and expenses and statement of government equi
tyd.
Balance sheet, statement of income and expenses, cash flow statement, statement
of government equity and notes to the FS4.
It is a system of prescribing the procedures for recording appropriations, allot
ments andobligations.a.
Fund accounting c. Obligation accountingb.
Budgetary accounting d. Treasury disbursement coding system5.
It is an authorization made by law or other legislative enactment, directing pay
ments of goodsand services out government funds under specified condition or for
specific purposes.a.
Allotment c. Appropriationb.

Obligation d. Malversation6.
It is the allotment by the Central office to its Regional office.a.
Regular allotment c. Ordinary Allotmentb.
Suballotment d. Secondary Allotment7.
It refers to the commitment by a government agency arising from an act of a duly
authorizedofficial that binds the government to the immediate or eventual payme
nts of a sum of money.a.
Allotment c. Appropriationb.
Obligation d. Malversation8.
It is an authorization issued by the DBM to government agencies to withdraw cash
from theNational Treasury through the issuance of Modified Disbursement System
Checks.a.
Allotment c. Appropriationb.

Obligation d. Notice of Cash Allocation9.

The following are the system followed in the NGAS, excepta.
Commercial accounting c. Responsibility accountingb.
Double-entry bookkeeping d. Fund accounting10.
Which is not a basic feature of NGAS?a.
One-fund concept c. Three-digit account number system
b.
Two-column trial balance d.
Four-digit responsibility account coding structure
11.
Which is not a basic feature of NGAS?a. Straight-line depreciation c. Corollary
and negative (red) entriesb. Allowance for doubtful accounts d. Perpetual invent
ory system12.
This serves as the basis for recording transactions in the general journal.a. Jo
urnal Entry Voucher (JEV) c. Government bidding filesb. Source documents d. Gove
rnment contractor form
13.
Which of the following is not a Regular Agency Book?a. General journal c. Cash J
ournalb. General ledger d. Check disbursements journal14.
Under NGAS, supplies and materials purchased for inventory purposes are recorded
usinga. First-in, first-out(FIFO) c. Weighted averageb. Last-in, first-out (LIF
O) d. Moving average15.
Once a government agency receives Notice of Cash Allocation (NCA), it shall
debit Cash
-
National Treasury, Modified Disbursement System and credit
a. NCA- Local Government c. Subsidy Income- Local Governmentb. NCA- National Go
vernment d. Subsidy Income- National Government16.
Petty cash fund being maintained by government agencies shall be maintained unde
ra. Fluctuating fund system c. Either of theseb. Imprest system d. Neither of th
ese17.
Under NGAS, the standard residual value of depreciable assets is equal toa. 10%
of cost c. P 1,000b. Zero d. P 5,00018.
It represents all funds received by the government from taxes, grants, aids and
subsidies.a. Government income c. Cash Fundb. Government surplus d. Borrowing19.
What are the two major classification of government income?a. National and Local
income c. External and Internal tradeb. General and Specific income d. Any of t
hese20.
Specific income accounts of the government include all of the following, excepta
. Taxes imposed on income c. Taxes on international tradeb. Taxes imposed on pro
perties d. Grants and donations21.
Which is
not
a major classification of government expenses?a. Personal Services c. Selling an
d administrative expensesb. Financial expenses d. Maintenance & other operating
expenses22.
Personal services in government entities would normally includea. Advertising, r
ent, insurance and gasolineb. Salaries, bonuses and allowancesc. Travels, traini
ng, seminar and telephoned. Bank charges, interest and foreign currency exchange
losses23.
These accounts are closed to the government equity account at the end of the per
iod.a. Balance sheet accounts c. Guarantee depositb. Intermediate accounts d. Al
lowance for doubtful accounts24.
A government agency shall maintain which of the following registries for allotme
nts andobligations?a. Registry of Allotments and Obligation- Personal Services (
RAOPS)b. Registry of Allotments and Obligation-Maintenance & Other Operating Exp
enses (RAOMO) &Registry of Allotments and Obligation- Financial Expense (RAOFE)c
. Registry of Allotments and Obligation-Capital Outlay (RAOCO)d. All of the choi
ces25.
In Controlling and monitoring the appropriations and allotment, DBM shall mainta
in thefollowing registries, excepta. Registry of Appropriation & Allotment (RAPA
L)b. Registry of Special Purpose Fund Appropriation (RESPFA)c. Registry of Allot
ments & NCA (RANCA)
d. Registry of Notice of Cash Allocation and Replenishments (RENREP)26.
This consists of cash and resources of the government that are available for any
purpose.a. General fund c. Trust fundb. Special fund d. Depository fund27.
Fund administered by government under a fiduciary capacity is referred to asa. G
eneral fund c. Trust fundb. Special fund d. Depository fund28.
Which is (are) a
special purpose fund
created as required by law r by a donor agency?a. Miscellaneous Personal Fund c.
Organization Adjustment Fundb. Calamity Fund d. All of the choices29.
Which is not a local government fund?a. General fund c. Special education fundb.
Infrastructure fund d. Pork barrel fund30.
A local government fund that constitutes the annual contribution from city or mu
nicipality in theamounts approved by law for each barrio which is spent solely f
or community developmentprojects.a. Infrastructure fund c. Trust fundb. Special
education fund d. Barrio development fund31.
Disbursement of local funds must be approved bya. Division head c. Accountantb.
Local administrator d. Local chief executiveTerminologies __________________1. A
government official that disburses government funds beyond approvedbudget may b
e charged with __________________2. The activities necessary to perform a major
purpose for which a governmententity is established. __________________3. It is
a compound of program covering a homogeneous group of activities thatresult in t
he accomplishment of an identifiable output. __________________4.The services, p
roducts or benefits accruing to the public estimated in terms of performance tar
get. __________________5. The actual asset of the government agency such as cash
, receivables, land andbuildings. __________________6. A national budget designe
d wherein total estimated revenue is more than totalestimated expenditures. ____
______________7. This type of budget focuses on the objects of expenditure such
as salaries andwage, traveling expenses, freight, supplies, materials equipment.