Govt Acctg Ch2 Budgetary Accts

8/22/2019 Govt Acctg Ch2 Budgetary Accts

1/58

BUDGETARY ACCOUNTS

WHAT THE 1987 (TITA CORYS TIME)CONSTITUTION PROVIDES ONGOVERNMENT MONEY:

.... NO MONEY SHALL BE PAID OUT OF THETREASURY EXCEPT IN PURSUANCE OF ANAPPROPRIATION OF LAW....


2/58

MEANING.....

NO PAYMENT FROM PUBLIC MONEY IF NOLAW AUTHORIZING SUCH PAYMENT ANDSPECIFYING SUCH PURPOSE

MEANING FURTHER THAT NO PAYMENTUNLESS NO LAW PASSED BY CONGRESS/SENATE --- THE GENERAL

APPROPRIATIONS ACT..


3/58

MEANING...

THE DEPT OF BUDGET AND MANAGEMENT

--- UPON APPROVAL OF THE BUDGET LAWWILL START ISSUING ALLOTMENTS ORAUTHORITY TO GOVT AGENCIES TO INCUROBLIGATIONS OR ENTER INTOCOMMITMENTS OR SPEND GOVT MONEY


4/58

MEANING FURTHER ....

THE DBM ....

DEPENDING ON THE LEVEL OF ALLOTMENTSTO AGENCIES CONCERNED, WILL ONLYSTART RELEASING FUNDS ONLY UPONAPPROVAL OF THE GENERALAPPROPRIATIONS LAW (OR NATIONALBUDGET)


5/58

GENERAL ACCOUNTING PLAN ...

WHAT IS THIS? SHOWS THE OVERALL ACCTG SYSTEM OF A

GOVERNMENT UNIT OR AGENCY

ACCOUNTING SYSTEMS ARE THEFOLLOWING:

BUDGETARY ACCOUNTS SYSTEM

RECEIPT/ INCOME & DEPOSIT SYSTEMDISBURSEMENT SYSTEM, &

FINANCIAL REPORTING SYSTEM


6/58

Q.: WHAT IS THE SYSTEM OF

PRESCRIBING THE PROCEDURES FOR

RECORDING APPROPRIATIONS,

ALLOTMENTS AND OBLIGATIONS?

a. Fund accounting

b. Government accounting

c. Obligation accounting

d. Budgetary accounting


7/58

Q.: WHAT IS THE SYSTEM OF

PRESCRIING THE PROCEDURES FOR

RECO DING APPROPRIATIONS,

ALLOTMENTS AND OBLIGATIONS?

a. Fund accounting

b. Government accounting

c. Obligation accounting

d. Budgetary accounting


8/58

BUDGETING.....

IT IS PLANNING ...

IT IS CONTROLLING ....

PLANNING -DELVES INTO THE FUTURE OBJECTIVES AND

BUDGETS TO ATTAIN SUCH OBJECTIVES;

CONTROLLING STEPS TAKEN BY MGT TO ENSURE

OBJECTIVES ARE ATTAINED


9/58

GOVERNMENT OR NATIONAL BUDGET

PLAN FOR FINANCING ALL GOVTACTIVITIES FOR A FISCAL YEAR PREPAREDAND SUBMITTED BY AN AGENCY HEAD TOTHE REPRESENTIVE BODY (CONGRESS)....TO OBTAIN APPROVAL ANDAUTHORIZATION BEFORE ANY PLAN IS

DONE


10/58


INCLUDES ....REVENUES AND EXPENDITURES OF PAST YEAR

AND ENSUING YEAR ARE REPORTED FORPURPOSES OF:

KNOWING THE GENERAL CHARACTER,PURPOSE AND AMT OF GOVT EXPENDITURE;

DETAILED DATA IN MAINTAINING AND

REFLECTION OF PERFORMANCE OF APARTICULAR GOVT UNIT.


11/58


ALSO EMBODIES HOW SUCH MONEY IS TOBE OBTAINED, OR THE MEANS AND COSTOF FINANCING SUCH NEED GIVEN A TIME

FRAME CONTROLS AMOUNTS TO BE RAISED, IF

ANY, AND PROPOSED AMOUNT FORSPENDING

THIS IS A PROGRAM ABOUT RAISING/COLLECTING MONEY AND HOW IT SHALLBE SPENT.


12/58


THEREFORE .....

THERE IS A NEED TO CLASSIFY INCOME AND

EXPENDITURES TO REFLECT SUCHACCOUNTS --- SO THAT THESE DATACOULD BE USED IN FUTURE BUDGEESTIMATES


13/58

Q.: ITS MAIN CONCERN IS THE

AVAILABILITY AND USE OF FUNDS

FOR PUBLIC SERVICES

a. Commission on audit

b. Bureau of the treasury

c. Department of finance

d. National budgetary system

e. Bangko sentral


14/58

Q.: ITS MAIN CONCERN IS THE

AVAILABILITY AND USE OF FUNDS

FOR PUBLIC SERVICES

a. Commission on audit

b. Bureau of the treasury

c. Department of finance

d. National budgetary system

e. Bangko sentral


15/58

FORM AND CONTENT OF GOVT/

NATIONAL BUDGET --- STARTING

POINT

IT IS THE EXECUTIVE BRANCH- (OP) THATPREPARES AND SUBMITS THE NATIONAL

BUDGET FOR CONGRESSIONAL APPROVAL


16/58


NATIONAL BUDGET

TIMELINE :

W/N 30 DAYS FROM OPENING OF REGULARSESSION (LAST MONDAY OF JULY EVERYYEAR) EXECUTIVE BRANCH SUBMITS TOCONGRESS --- THE NATIONAL BUDGET, AS

BASIS OF THE GENERAL APPROPRIATIONSACT


17/58


NATIONAL BUDGET

CONTENTS OF THE NATIONAL BUDGET:

PRESIDENTIAL MESSAGE THAT CONTAINS ---

THRUST OF GOVTIMPACT ON DEVELOPMENT GOALS

MONETARY AND FISCAL OBJECTIVES

& IMPLICATIONS OF REVENUE,EXPENDITURES AND DEBT PROPOSALS


18/58


NATIONAL BUDGETWILL ALSO INCLUDE SUMMARY FSDETAILING:

ESTIMATED EXPENDITURES AND PROPOSEDAPPROPRIATIONS

ESTIMATED RECEIPTS

ACTUAL APPROPRIATIONS OF LASTCOMPLETED FISCAL YEAR


19/58


NATIONAL BUDGET ESTIMATED EXPENDITURES AND RECEIPTSAND ACTUAL OR PROPOSEDAPPROPRIATIONS DURING THE FY IN

PROGRESS; AND STATEMENTS OF CONDITION OF THE

NATIONAL TREASURY .....

AT THE END OF LAST COMPLETED FY;AT THE END OF FISCAL YEAR INPROGRESS; &

ESTIMATED CONDITON AT END OF ENSUINGFY


20/58

Q.: IT IS A STATEMENT OF

ESTIMATED RECEIPTS AND EXPENSES

OF THE GOVERNMENT WHICH IS THEBASIS FOR THE GENERAL

APPROPRIATIONS LAW.

a. National government budget

b. Local government budget

c. National and local government budgetsd. Statement of budget operations

e. Government financial statements.


21/58

Q.: IT IS A STATEMENT OF

ESTIMATED RECEIPTS AND EXPENSES

OF THE GOVERNMENT WHICH IS THEBASIS FOR THE GENERAL

APPROPRIATIONS LAW.

a. National government budget

b. Local government budget

c. National and local government budgetsd. Statement of budget operations

e. Government financial statements.


22/58

FUNDAMENTAL PRINCIPLES OF

FISCAL OPERATIONS WHAT IS THE TERM FISCAL ALL ABOUT?

.... IT IS ABOUT PUBLIC FINANCE ANDFINANCIAL TRANSACTIONS, BELONGINGTO THE PUBLIC OR GOVERNMENTTREASURY


23/58


FISCAL OPERATIONS (THERE ARE

8)

1. NO MONEY SHALL BE USED EXCEPT IN

PURSUANCE OF AN APPROPRIATION LAWOR OTHER SPECIFIC STATUTORYAUTHORITY.

2. GOVT MONEY AND/OR PROPERTYSHALL ONLY BE USED FOR PUBLIC (NOTPRIVATE) PURPOSE.


24/58


FISCAL OPERATIONS 3. TRUST FUND SHALL BE AVAILABLE AND

MAYBE SPENT ONLY FOR THE SPECIFICPURPOSE FOR WHICH THE TRUST WASCREATED.

BUT WHAT IS A TRUST FUND?

.... IT IS REAL PROPERTY OR PERSONAL

PROPERTY HELD IN TRUST FOR THE BENEFIT

OF ANOTHER PERSON...


25/58


FISCAL OPERATIONS 4. FISCAL RESPONSIBILITY BE SHARED BY

ALL THOSE EXERCISING AUTHORITY OVERFINANCIAL AFFAIRS, TRANSACTIONS ANDOPERATIONS OF A GOVERNMENT AGENCY.

5. ALL DISBURSEMENTS OR DISPOSITIONOF GOVT MONEY AND/OR PROPERTY

SHALL BEAR THE APPROVAL OF THEPROPER OFFICIALS


26/58


FISCAL OPERATIONS 7. ALL LAWS AND REGULATIONS

APPLICABLE TO FINANCIALTRANSACTIONS SHALL BE FAITHFULLYADHERED TO;

8. GAAP AND PRACTICES OF ACCOUNTING,SOUND MANAGEMENT AND GOOD FISCAL

ADMINISTRATION SHALL BE OBSERVED,PROVIDED THESE DO NOT CONTRAVENEEXISTING LAWS AND REGULATIONS.


27/58

KINDS OF BUDGET AS TO

NATURE ANNUAL BUDGET

COVERS ONE YEAR AND THE BASIS FOR AN

ANNUAL APPROPRIATION SUPPLEMENTAL BUDGET

ONE THAT ADJUSTS A PREVIOUS BUDGETDEEMED INAPPROPRIATE FOR THEPURPOSE IT WAS INTENDED; ALSO THEBASIS FOR A SUPPLEMENTALAPPROPRIATION


28/58


NATURE SPECIAL BUDGET

THIS IS SUBMITTED IN SPECIAL FORM ONACCOUNT THAT ITEMIZATIONS ARE NOTADEQUATELY PROVIDED IN THEAPPROPRIATIONS ACT OR THAT AMOUNTS

ARE NOT AT ALL INCLUDED IN THE BUDGETLAW.


29/58


BASIS PERFORMANCE BUDGET

EMPHASIZES THE PROGRAM OR SERVICES

CONDUCTED AND BASED ON FUNCTIONS,ACTIVITIES AND PROJECTS, FOCUSATTENTION UPON THE GENERALCHARACTER AND NATURE OF WORK TO BE

CARRIED OUT AND THE SERVICES TO BERENDERED


30/58


BASIS LINE ITEM BUDGET

THE OBJECTS OF THIS BUDGET AREEXPENDITURES SUCH AS SALARIES ANDWAGES, TRAVELLING EXPENSES, FREIGHT,SUPPLIES AND MATERIALS AND

EQUIPMENT


31/58

WHAT IS A BALANCED BUDGET?

THIS IS WHERE THE PROPOSEDEXPENDITURES ARE EQUAL TO OR LESSTHAN THE ESTIMATED REVENUE.

BUT PRESENTLY, (EVEN IN THE PAST), THEREPUBLIC IS ALWAYS IN BUDGET

DEFICIENCY.

Q It ith th


32/58

Q.: It concerns with the

implementation of the

national budget by thedifferent departments and

release of allotments.a. Budget preparation

b. Budget authorization

c. Budget execution

d. Budget accountability

Q It ith th


33/58

Q.: It concerns with the

implementation of the

national budget by thedifferent departments and

release of allotments.a. Budget preparation

b. Budget authorization

c. Budget execution

d. Budget accountability


34/58

BALANCED BUDGET BUT ALWAYS

ENDING UP WITH BUDGET

DEFICIENCY

HOW TO DO ABOUT IT?

IDENTIFY GOVERNMENT PRIORITIES ....(EXAMPLES?....)

INCREASE REVENUE (EXAMPLES?... TAX)

DECREASE EXPENDITURES....

SPEND THE DEFICIT.


35/58

THE GOVERNMENT

BUDGET PROCESS PREPARATION

LEGISLATIVE AUTHORIZATION

EXECUTION AND OPERATION ACCOUNTABILITY


36/58

1. BUDGET PREPARATION

COVERS THE FOLLOWING:

ESTIMATING REVENUES

DETERMINING PRIORITIES AND ACTIVITES TRANSLATING PRIORITIES AND ACTIVITIES

IN TO EXPENDITURE LEVELS


37/58

WHO ESTIMATES/ PREPARES THE

GOVERNMENT BUDGET?VARIOUS GOVERNMENT AGENCIESESTIMATES THEIR RESPECTIVE BUDGETS:

LGUsBUREAUS, AGENCIES

GOCCs, ALL OTHER GOVT BODIESUNDER THE EXECUTIVE DEPARTMENT

THEN SUBMITTED TO EXECUTIVE BRANCH PRESIDENT FOR REVIEW ANDFINALIZATION


38/58

WHO ESTIMATES/ PREPARES THE

GOVERNMENT BUDGET?

THE OFFICE OF THE PRESIDENT:

TRANSMITS THE PROPOSED BUDGET TO THELEGISLATIVE DEPARTMENT (CONGRESS) ---AS THE BASIS FOR THE APPROVAL OFBUDGET LAW, KNOWN AS THE GENERAL

APPROPRIATIONS ACT- OF YEAR XXXX


39/58

BUDGET PREPARATON ....

BEGINS WITH ...BUDGET CALL .... WHATIS BUDGET CALL?

IT IS A DOCUMENT ISSUED BY THE DBMOUTLINING PRIORITY AREAS OF THE GOVTFOR THE APPLICABLE BUDGET YEAR


40/58

BUDGET CALL....

REMINDS AGENCIES OF BUDGET LIMITS

APPROXIMATE RATE OF INCREASE IN GOVTCIELINGS, AS UP DATED IN THE LATEST

BUDGET MESSAGE OF THE PRESIDENT/MALACANANG

THEN DBM SUMMARIZES ALL BUDGETPROPOSALS, ANALYZES ANDRECOMMENDS TO THE PRESIDENT FORSIGNATURE AND EVENTUAL TRANSMITTALTO CONGRESS


41/58

BUDGET PROCESS #2- LEGISLATIVE

AUTHORIZATION

FROM MALACANANG, IT TAKES NO MORETHAN 30 DAYS RECKONED FROM OPENING OF

CONGRESS (STATE OF THE NATIONADDRESS); THE NATIONAL BUDGETPROPOSAL IS NOW TRANSMITTED TO THEHOUSE OF REPRESENTATIVE


42/58

LEGISLATIVE AUTHORIZATION

A SUMMARIZED BUDGET IS DONE IN LUMPSUM, FURTHER DETAILED INTOBUDGETARY FUNCTION BY ACTIVITIES OR

PROJECT.

EACH AGENCY IDENTIFIES ITS MOSTSIGNIFICANT ACTIVITY OR ACTIVITIES.

HEADS OF AGENCIES ARE OCCASIONALLYINVITED DURING BUDGET COMMITTEEHEARINGS TO EXPLAIN


43/58

BUDGET PROCESS#3 EXECUTION

AND OPERATION

THIS IS NOW THE TOOL OF MANAGEMENT(GOVT AGENCY) TO ENSURE THAT FUNDS ARESPENT ONLY FOR SPECIFIC PURPOSE/S THE

MONIES ARE INTENDED.INCLUDES:

OPERATING AMT OF THE BUDGET

TIME LINE W/N TO EXECUTE/ USE THE BUDGET

MANPOWER, OTHER RESOURCES NEEDED, AND

PESO AMOUNT REQUIRED TO FINISHTHEPROJECT.


44/58

BUDGET PROCESS#4 BUDGET

ACCOUNTABILITY

THE 4TH & LAST PHASE OF BUDGET PROCESS.....:

PERIODIC REPORTING OF PERFORMANCEUNDER APPROVED BUDGET;

TOP MGT REVIEW OF ACTIVITIES & FISCALPOLICY IMPLEMENTATIONS; AND

ACTIONS OF COMM ON AUDIT REGARDINGFAITHFUL PERFORMANCE OF OFFIALS REHANDLING OF RECEIPTS & DISB.


45/58

BUDGETARY ACCOUNTS ....

CONSIST OF:

APPROPRIATION;

ALLOTMENT; AND

OBLIGATION


46/58

WHAT IS APPROPRIATION...

THIS IS AN AUTHORIZATION MADE UNDERLAW OR LEGISLATIVE ENACTMENT,DIRECTING THE PAYMENT OF GOODS AND

SERVICES OUT OF GOVERNMENT FUNDSUNDER SPECIFIC CONDITIONS OR FORSPECIAL PURPOSE...


47/58

WHAT ABOUT ALLOTMENT....

THIS IS AN AUTHORIZATION ISSUED BYTHE DBM TO A GOVERNMENT UNIT/AGENCY WHICH WILL ALLOW SUCH UNIT

TO INCUR OBLIGATIONS FOR SPECIFIEDAMOUNTS WITHIN THE LEGISLATIVEAPPROPRIATION...


48/58

AND OBLIGATION? ....

THIS IS A COMMITTMENT BY AGOVERNMENT AGENCY ARISING FROM ANACT OF THE HEAD OF SUCH UNIT WHICH

WILL BIND THE GOVERNMENT TO THEEVENTUAL PAYMENT OF A SUM OF MONEY.


49/58

Q.:WHICH DEPT PREPARES THE

NATIONAL BUDGET, WHICH

SERVES AS THE BASIS FOR THEGENERAL APPROPRIATIONS ACT?

a. Legislative department

b. Executive department

c. Judiciary departmentd. National agencies/ units


50/58

Q.:WHICH DEPT PREPARES THE

NATIONAL BUDGET, WHICH

SERVES AS THE THE BASIS FORTHE GENERAL APPROPRIATIONS

ACT?a. Legislative department

b. Executive department

c. Judiciary departmentd. National agencies/ units


51/58

BUDGETARY ACCOUNTS SYSTEM

Includes the following

Agency Budget Matrix

Recording and monitoring by agencies foramounts from DBM

Releases of allotments from Central Office toRegional offices

Allotment Release Orders

Special allotment release orders


52/58

(BUDGET) REPORTING

REQUIREMENTS BUDGET EXECUTION DOCUMENTS (BEDs),and

BUDGETARY ACCOUNTABILITY REPORTS(BARs)

BUDGETARY EXECUTION DOCS (BED )


53/58

BUDGETARY EXECUTION DOCS (BEDs)

Includes the following:Physical financial plan

--- the over all plan of the agency for the entire

year

Monthly cash program

--- this concerns the monthly cashdisbursement required of an agency

BUDGETARY EXECUTION DOCS (BED )


54/58

BUDGETARY EXECUTION DOCS (BEDs)

Includes the following:Estimates of monthly income

--- the estimated income of the concerned

agency, by source

List of not yet due & demandable obligations

--- claims vs the govt for services rendered,goods delivered

BUDGETARY ACCOUNTABILITY


55/58


REPORTS (BARs)

Quarterly reports: Quarterly Physical Report of Operations

--- a report on actual accomplishment for a givenquarter in terms of performance measure

Quarterly Financial Report of Operations

--- report on actual obligations/ expendituresincurred by program or by activities



56/58


REPORTS (BARs)Quarterly reports:

Quarterly Report of Actual Income

--- report on agencys income or collections fromall sources; and

Statement of Allotments, Obligations andBalances

--- this is a summary report of all allotments

received and corresponding obligationsincurred for the months in the reported quarter


57/58

FAILURE TO SUBMIT BEDs AND

BARs

Done in call up letters:

1st

call up letter signed by the DBM director2nd call up letter signed by the assistant or

undersecretary of the DBM;

3rd call up letter signed by the DBM secretary;

Non compliance - to be reported toMalacanang/ OP


58/58

End.

Documents

Govt Acctg Ch2 Budgetary Accts