ACCOUNTING FOR BUDGETARY ACCOUNTS
a fiscal year prepared and submitted by responsible
Sec 29 , Art. VI of the 1987 Constitution “no money shall be
paid out of the treasury except in pursuance of an
appropriation by law”
BUDGETARY ACCOUNTS – bedrock of govt accounting
- Commences upon enactment of GAA
GAA – contains the legal authorization to use public money
for the various PAP of the national govt.
DBM – issuing allotments or the authority of govt agencies
to incur obligations or commitments
***APPROPRIATIONS, ALLOTMENTS AND CASH
ALLOCATIONS
ACCOUNTING SYSTEM
GAP – GENERAL ACCOUNTING PLAN
- Shows the overall accounting system of a govt
agency
1. Budgetary Accounts System
2. Receipt/ Income and Deposit System
3. Disbursement System
4. Financial Reporting System
FUNDAMENTAL PRINCIPLES OF FISCAL OPERATIONS 5/8
NGTCA
1. NO MONEY SHALL BE PAID UT F THE PUBLIC TREASURY
OR DEPOSITORY EXCEPT IN PURSUANCE OF AN
APPROPRIATION LAW OR OTHER SPECIFIC AUTHORITY
2. GOV’T FUNDS OR PROPERTY SHALL BE SPENT OR USED
SOLELY FOR PUBLIC PURPOSES
3. TRUST FUNDS SHALL BE AVAILABLE AND MAY BE SPENT
ONLY FOR THE SPECIFIC PURPOSE FOR W/C THE TRUST
WAS CREATED
4. CLAIMS AGAINST GOVT FUNDS SHALL BE SUPPORTED
WITH COMPLETE DOCUMENTATION
5. ALL LAWS AND REGULATIONS APPLICABLE TO FINANCIAL
TRANSACTION SHALL BE FAITHFULLY ADHERED TO
NATIONAL GOVT BUDGET – plan for financing activities for
executive to a representative body whose approval and
authorization are necessary before the plan can be
executed
- Financial BLUEPRINT of a country’s dev’t plan
PERFORMANCE- INFORMED BUDGETING
- Budgeting approach that uses performance
information to assist in deciding where the funds
will go
- required govt agencies to strengthen the link
between planning and budgeting and to simplify
the presentation of the budget
BALANCED BUDGET – proposed expenditures are equal t or
less than the estimated revenues
APPROPRIATIONS DOCUMENT – provides the context for
the PAP
1. purpose for the funds required
2. outputs that would be produced or the services that
would be rendered
3. outcomes that would be achieved by outputs/services
4. cost of the programs and activities proposed to achieve
the objectives
KINDS OF BUDGET:
1. AS TO NATURE
A. ANNUAL BUDGET – a period of 1 year; basis of annual
appropriation
B. SUPPLEMENTAL BUDGET – adjust the previous budget
C. SPECIAL BUDGET – special forms; not adequately
provided in the Appropriation Act
2. AS TO BASIS
A. PERFORMANCE BUDGET - emphasizing programs or
services conducted and based on functions, activities and
projects upon general character and nature of work to be
done
B. LINE-ITEM BUDGET – basis is the objects of expenditures
such as salaries and wages
3. AS TO APPROACH AND TECHNIQUE
A. ZERO-BASED BUDGETING – systematic considerations of
all PAP with define ranking procedures; DECISION
PACKAGES
B. INCREMENTAL APPROACH – additional requirements
need justifications
BUDGET CYCLE
1. BUDGET PREPARATION – estimation of gov’t revenues;
determination of budgetary priorities and translation of
approved priorities and activities into expenditure levels
- begins with issuance of “BUDGET CALL” by the DBM
- contains budget parameters set beforehand by
Dev’t Budget Cordination Committee; EVERY DECEMBER
- BOTTOM-UP BUDGETING APPROACH (rural dev’t
programs and the conditional cash transfer programs of
poorest municipalities) (DA, DAR, DENR, DWSD, DepEd,
DOH)
- ends with the submission of ‘’PRESIDENT’S BUDGET” to
Congress
CONTENTS:
1. PRESIDENT’S BUDGET MESSAGE – policy framework and
priorities in the budget
2. BESF BUDGET OF EXPENDITURES AND SOURCES OF
FINANCING - mandated by the Constitution;
macroeconomic assumptions for the fiscal year and 2
previous years
3. NAT’L EXPENDITURE PROGRAM – details if spending for
each dep’t or agency “GAA”
4. DETAILS OF SELECTED PROGRAMS AND PROJECT – more
detailed segregation of key PAP in the NEP
5. STAFFING SUMMARY – staffing complement of each
dep’t
2. LEGISLATIVE AUTHORIZATION/ BUDGET LEGISLATION
- starts upon receipt of the President’s Budget by the House
Speaker and ends with the President’s enactment of GAA
HOUSE APPROPRIATION COMMITTEE – conducts hearing
and scrutinize the programs and projects
- Crafts the GA BILL “approved in the 2nd and 3rd
reading”
***GAA, SUPPLEMENTAL APPROP AND AUTOMATIC
APPROP
3. BUDGET EXECUTION AND OPERATION – covers the
various operational aspects of budgeting
- begins with DBM’s issuance of guidelines on the
release and utilization of funds “BEDs or BUDGET
EXECUTION DOCUMENTS” – outline agency plans and
performance targets
ARP ALLOTMENT RELEASE PROGRAM – limits for
allotments
CRP CASH RELEASE PROGRAMS – disbursements
OBLIGATIONAL AUTHORITY - GAA, SARO, GARO
4. BUDGET ACCOUNTABILITY – DBM Monitors efficiency of
fund utilization, assesses agency performance and provides
vital basis for reforms and new policies
BUDGET AND FINANCIAL ACCOUNTABILITY REPORTS –
submitted monthly or quarterly; req’d reports that
show how agency used their funds and identify
corresponding accomplishments
APR AGENCY PERFORMANCE REVIEW - quarterly or
every semester
BPAR BUDGET PERFORMANCE ASSESSMENT REVIEW –
year- end
BUDGETARY ACCOUNTS SYSTEM
ARP – serve as ceiling for aggregate allotment releases
during the year from all sources (New appropriations,
automatic appropriations and continuing appropriations)
BUDGETARY ACCOUNTS
1. APPROPRIATION - made by law
2. ALLOTMENT – issued by DBM
3. OBLIGATION - commitment by a gov’t agency
FUND RELEASE DOCUMENTS
1. OBLIGATIONAL AUTHORITY/ ALLOTMENT – to incur
obligations
A. GAARD - GAA RELEASE DOCUMENT “FOR
COMPREHENSIVE RELEASE”
B. SARO – “FOR LATER RELEASE”
C. GARO – comprehensive authority issued to all nat’l gov’t
agencies
2. DISBURSEMENT AUTHORITY – pay obligations and
payables
A. NOTICE OF CASH ALLOCATIONS - central, regional and
provincial offices and operating units to pay operating
expenses
B. NON-CASH AVAILMENT AUTHORITY – cover liquidations
of actual obligations incurred against available allotments
“proceeds of loans”
C. CASH DISBURSEMENTS CEILING – DFA AND DOLE
D. NOTICE OF TRANSFER AND ALLOCATION – issued by the
Central Office to its regional and operating units
ARP – determines the level of allotment
1. Obligations incurred
2. Obligations authorized as overdraft
3. SAROs issued from the beginning of fiscal year to the
effectivity date of the current GAA
4. Releases from the unprogrammed fund
REPORTING REQUIREMENTS
BEDs – BUDGET EXECUTION DOCUMENTS
- Agencies’ targets and plans NOT LATER THAN NOV.
30 BEFORE THAT FINANCIAL YEAR
- Modifications; revised plans shall be submitted ON
OR BEFORE JAN. 7 OF THE YEAR
1. BED NO. 1: FINANCIAL PLAN – comparative obligation
levels for budget year and current year
2. BED NO. 1: PHYSICAL PLAN – performance indicator and
targets of dep’t
- Operations: MFO
- Major Programs and Projects: President
-Other projects: milestones indicated in the
approved project profile
3. BED NO. 1: MONTHLY DISBURSEMENT PROGRAM – as
basis for determining the monthly level of NCAs/ other
disbursement authorities
- by type of FUND CATEGORY, ALLOTMENT CLASS and
TYPE OF DISBURSEMENT AUTHORITY
4. BED NO. 1: ANNUAL PROCUREMENT PLAN FOR
COMMON-USE SUPPLIES AND EQUIPMENT – monthly
quantity and cash requirements by items
***BED 1,2,3 submitted to DBM THRU UNIFIED
REPORTING SYSTEM while BED 4 submitted thru email to
DBM-PS AND PhilGEPS
BUDGET AND FINANCIAL ACCOUNTABILITY REPORTS
1. QUARTERLY PHYSICAL REPORT OF OPERATION QPRO
BAR#1 – actual physical accomplishments
- 30 DAYS AFTER THE END OF EACH QUARTER
2. STATEMENT OF APPROPRIATIONS, ALLOTMENTS,
OBLIGATIONS, DISBURSEMENTS AND BALANCES SAAODB
FAR#1 – authorized appropriations and adjustments
- FUND AUTHORIZATION, MFO, PAP, MAJOR PROGRAMS
PROJECTS
- 30 DAYS AFTER THE END OF EACH QUARTER
3. SAAODB by OBJECTS OF EXPENDITURES – prepared by
Fund Cluster
4. LIST OF ALLOTMENTS AND SUB-ALLOTMENTS LASA
FAR# 1-B – allotments released by the DBM and the sub-
allotment issued by the Agency Central Office
5. STATEMENT OF APPROVED BUDGET, UTILIZATIONS,
DISBURSEMENTS AND BALANCES SABUDB – OFF-BUDGET
FUND FAR#2
- approved budget, utilizations
6. SABUDBOE FAR#2-A
7. AGING OF DUE AND DEMANDABLE OBLIGATIONS ADDO
FAR 3 – prepared by Fund Cluster; balance of unpaid
obligations as indicated in the Obligation Request
- ON OR BEFORE THE 3OTH DAY OF THE FF END OF THE - Appropriation Act, Fund Cluster, MFO/PAP and
YEAR allotment class (Personal Services and MOOE,
FinEx, Capital Outlay)
8. MONTHLY REPORT OF DISBURSEMENTS MRD FAR # 4

- total disbursements made by dep’t, office or agency and

operating unit by Fund Cluster

- BEFORE THE 30TH DAY OF THE FF MONTH COVERED BY

THE REPORT

9. QUARTERLY REPORT OF REVENUE AND OTHER RECEIPTS

QRROR FAR# 5 – actual revenue and other receipts of the
agency

REGISTRY OF APPROPRIATIONS AND ALLOTMENTS RAPAL

- Shows the original, supplemental and final budget

for the year

REGISTRY OF ALLOTMENTS AND NOTICE OF CASH

ALLOCATION RANCA

OBLIGATION REQUEST AND STATUS ORS

- Incurrence of obligation
- Adjustment of obligation incurred after the
processing of the claim NORSA NOTICE OF
OBLIGATION REQUEST AND STATUS ADJUSTMENT

A. 01-01101101-2016-01-00001

- PERSONNEL SERVICES
- UACS
- YEAR
- MONTH
- SERIAL NUMBER PER FUND CLUSTER PER YEA

B. 103-00-1-00-00-00000

- SECTOR OUTCOME CODE VALUES

- HORIZONTAL OUTCOME CODE VALUES
- PROGRAM
- MFO
- ACTIVITY CODE 1ST LEVEL
- ACTIVITY CODE 2ND LEVEL

C. 5-01-02-040

RAOD REGISTRY OF ALLOTMENTS, OBLIGATIONS, AND

DISBURSEMENTS

- Maintained by the Budget Division/Unit of agencies