BARANGAY

BUDGETING
 BARANGAY BUDGETING

Basic rules and regulations :

No money shall be paid out of the

local treasury except in pursuance of
an appropriation ordinance or law
(Section 305 (a) of R.A. 7160)
 Budgetary Requirements

Personal Services Cap

45% (of the regular income of the
next preceding year) in case of 1st to
3rd class provinces, cities, and
municipalities, including barangay.

55% (of the regular income of the

next preceding year) in case of 4th
class or lower (Section 331 (b) of
R.A. 7160).
20% Development Fund (Section 287 of R.A.
7160; Joint Memorandum (DILG-DBM) Circular
No. 2011-1 dated 4/13/2011)

10% SK Fund (Section 329 of R.A. 7160)

5% Calamity Fund (Section 324 (d) of R.A. 7160)

5% Gender and Development Fund

(Section 36 (a) of R.A. 9710 [An Act Providing for the Magna
Carta of Women])
 SECTION 329. Barangay Funds-

All income of the barangay from whatever

source shall accrue to its general fund

To be deposited in a government bank

situated in or nearest to its area.
SECTION 330. Submission of Detailed
Statements of Income and
Expenditures for the Barangay Budgets
On or before the fifteenth (15th) day of
September of each year, the barangay treasurer
shall submit to the punong barangay a
statement covering the estimates of income and
expenditures for the ensuing fiscal year, based
on a certified statement issued by the city or
municipal treasurer covering the estimates of
income from local sources for the barangay
concerned.
• (a) Upon receipt of the statement of income
and expenditures from the barangay
treasurer, the punong barangay shall prepare
the barangay budget for the ensuing fiscal
year and submit the annual barangay budget
to the sangguniang barangay for legislative
enactment.
• The ordinance enacting the annual budget shall
take effect at the beginning of the ensuing
calendar year. An ordinance enacting a
supplemental budget, however, shall take effect
upon its approval or on the date fixed therein.

• The responsibility for the execution of the annual

and supplemental budgets and the accountability
therefor shall be vested primarily in the punong
barangay concerned.
• (a) Within ten (10) days from its approval, copies of the
barangay ordinance authorizing the annual appropriations shall
be furnished the sangguniang panlungsod or the sangguniang
bayan, through the city or municipal budget officer.

The sanggunian concerned shall have the power

to review such ordinance in order to ensure that
the provisions are complied with.

If within sixty (60) days after the receipt of the

ordinance, the sanggunian concerned takes no
action thereon, the same shall continue to be in
full force and effect.
 If within the same period, the sanggunian
concerned shall have ascertained that the
ordinance contains appropriations in excess of
the estimates of the income duly certified as
collectible, or that the same has not complied
with the budgetary requirements, the said
ordinance shall be declared inoperative in its
entirety or in part. Items of appropriation
contrary to, or in excess of, any of the general
limitations or the maximum amount prescribed
shall be disallowed or reduced accordingly
• (b) Within the period hereinabove fixed, the sangguniang
panlungsod or the sangguniang bayan concerned shall
return the barangay ordinance, through the city or
municipal budget officer, to the punong barangay with
the advice of action thereon for proper adjustments, in
which event, the barangay shall operate on the ordinance
authorizing annual appropriations of the preceding fiscal
year until such time that the new ordinance authorizing
annual appropriation shall have met the objections raised.
Upon receipt of such advice, the barangay treasurer or the
city or municipal treasurer who has custody of the funds
shall not make further disbursement from any item of
appropriation declared inoperative, disallowed, or
reduced.
NECESSARY DATA/INFORMATION (For budget 2012)
1. Certified statement issued by the City/Municipal Treasurer covering the estimates of
income from local sources for the barangay concerned. (for 2012 estimates)

Ex. IRA= P2,000,000.00 Local income = P100,000.00 Total=2,100,000.00

2. Total annual income actually realized from local sources during the next preceding
fiscal year. (2010) Ex. P1,900,000.00
(Income from local sources = IRA + local income)

BREAKDOWN FOR 2012 BUDGET

20% Development Fund = (20% of IRA P2,000,000.00) P 400,000.00

5% Calamity Fund = (5% of P2,100,000.00) 105,000.00
SK Fund = (10% of General Fund ) 145,000.00
General Fund = PS =55% x P1,900,000.00= P1,045,000.00
MOOE (1,450,000.00-1,045,000.00)= 405,000.00 1,450,000.00
(MOOE to include fund/prog. for GAD)
TOTAL P2,100,000.00
 20% Development Fund

• AMENDING DILG-DBM JOINT MEMO CIR NO. 1

DATED SEPTEMBER 20, 2005

• PROJECTS COVERED -

The 20% of the IRA intended for development

projects MAY be utilized for priority
programs and projects :
Period ACTIVITY OUTPUT
June Punong
Invitation
1-15 Barangay to
letters signed
issue invitation
by the Punong
letters to
Barangay
persons who
will form part of
the BDC.
Period ACTIVITY OUTPUT
Punong Barangay to Punong Barangay
June
convene the BDC to Executive Order-
1-15
prepare the Annual 1. Composition of
Investment Plan BDC-
a.Chairman
(AIP). b.Vice-Chairman
3. BDC Secretary
4. Thirty two (32)
Members.
Period ACTIVITY OUTPUT

June Preparation of Annual Investment Plan

1-15 AIP.
Period ACTIVITY OUTPUT

Not
later
than 1st Approval of AIP for the Budget
week of the AIP
August
Period ACTIVITY OUTPUT

Preparation of
Project
After the Management
Approval
of the AIP Procurement
Plan (PMPP).
Project Management
Details the mode
and schedule of
Procurement Plan (PMPP).
procurement,
tech. description &
specifications of
goods, equipment
& civil works
Period ACTIVITY OUTPUT

June Barangay Budget Call

Issuance of
16 to (Barangay Budget
Budget Call
30 Memorandum)

Submission to
On or
the PB of the
before
estimated Certified Statement of
the 15th
Income & Exp. Income & Expenditures
day of
for the insuing
Sept.
year.
Period ACTIVITY OUTPUT
Enactment of
the Annual
October
Budget of the
17 Enacted Annual Budget
onwards
ensuing fiscal
year by the
Sanggunian
period ACTIVITY OUTPUT

Within 10
days from
Submission of
approval the Annual
Annual Budget submitted
by the PB Budget for
of the for review
Review by the
Annual
Budget
SB/SP
Period ACTIVITY OUTPUT
Within 60
days from
receipt of Review of the
Reviewed Annual Budgets
the Annual
submitted of Barangays
Budgets of
Annual
Budget of Barangays by
Brgys. For the SB or SP
review
Period ACTIVITY OUTPUT

January Implementation
1 to /Execution of
Annual Budget
Dec. 30 the Annual
Budgets
Systems and Procedures Manual on the Management of Barangay
Funds and Property

24
Learning Objective

 To understand the policies on

operating, recording and
reporting governing
appropriations and
commitments

25
 OUTLINE
 Budget Accounting Process
 Legal Provision
 Definition of Terms
 Appropriations and Commitments
 Policies
 Operating, Recording and Reporting
Policies

26
 Approved
Budget RAC
(GAO)

DV/ Payroll/
PR /PO/
Contract

City/Municipal
CSACB Budget Office SACB

27
Definition of Terms

Appropriations
Appropriations – are amounts in the
annual or supplemental budget that are
authorized by the Sanggunian or
legislative body to be obligated or spent
for the undertaking of a particular
function, program, activity or project, for
which services have been rendered or
goods delivered.

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Definition of Terms

Commitments
Commitments – are amounts earmarked by the
barangay, arising from an act of a duly
authorized official which binds the barangay to
the immediate or eventual payment of a sum of
money.

Note: “Commitments” shall be used

synonymously as “Obligations”

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Laws, rules and regulations of the
government provide that all
disbursements of public funds, except
those received for specific purposes,
shall be covered by an approved General
Appropriations Ordinance (GAO)
authorizing appropriation for the annual
budget, the expenditure items of which
shall be in accordance with Philippine
Government Chart of Accounts under
NGAS.

30
 Unless authorized and covered
by subsequent SB Resolution
approving the appropriation,
commitments shall not exceed
the approved appropriations.

31
 The Kagawad, designated as Chairman,
Committee on Appropriations (CCA) shall be
responsible in monitoring the approved
appropriations and the charges against the
following funds:

◦ General Fund
◦ 20% Development Fund
◦ Calamity Fund
◦ Sangguniang Kabataan Fund
◦ Gender and Development Fund

32
The CCA shall monitor the use of
appropriated funds thru the Registry of
Appropriations and Commitments (RAC)
which shall be maintained by Fund, by
class (PS, MOOE, FE and CO) with
breakdown as to account classification.

33
The BRK shall prepare the RAC

The CCA may examine/check anytime, the

balance of appropriations and the recording
in the registries.

34
1. Charges (deductions) against the
appropriated funds shall be based on
commitments made by the Barangay as
shown in the Disbursement
Vouchers/Payrolls for Personal Services,
Contracts or Purchase Orders and
Purchase Requests ;

35
2. In addition to the certification in the
Disbursement Vouchers Payrolls, the
existence of available appropriations as
reflected in the SB Resolution shall also be
shown on the face of the Contracts and
Purchase Orders (POs);

36
The certification of the CCA on
the “existence of available
appropriations” means the
availability of appropriations to
cover the commitment.

37
3. For all procurement including
infrastructure projects, the CCA shall
certify the availability of funds by
stamping “Funds (Appropriations)
Available” on the face of the Purchase
Request (PR) and affix his signature
indicating the estimated required amount
on the available appropriation on the PR
based on the SB Resolution authorizing
the construction/ procurement; and

38
4. Expenses for Personal Services
(PS), Maintenance and Other
Operating Expenses (MOOE) and
Financial Expenses (FE) shall be
charged against respective
appropriation; and

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Investments, purchase of PPE and
construction of Public Infrastructures
(PI) and Reforestation Projects (RP)
shall be charged against
appropriations for Capital Outlay (CO).

40
- Personal Services (PS)
- Maintenance and Other Operating
Expenses (MOOE)
- Capital Outlay (CO)
- Financial Expenses (FE)

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Commitments/Charges against the
appropriations for the four major classes of
expenditures shall include but are not
limited to the following:
Personal Services
 Salaries and Wages – Regular
 Salaries and Wages – Contractual
 Honoraria
 Cash Gift

42
Maintenance and Other Operating Expenses
◦ Traveling Expenses – Local
◦ Training Expenses
◦ Supplies and Materials Expenses
◦ Utility Expenses
◦ Communication Expenses

43
Maintenance and Other Operating Expenses

◦ Membership Dues and Contributions to

Organizations
◦ Rent Expenses
◦ Repairs and Maintenance of PPE
◦ Repairs and Maintenance of PIs and RPs
◦ Taxes, Insurance Premiums and Other Fees

44
Capital Outlay
 Investments in Treasury Bills

 Purchase/Construction of the following PPE:

 Land
 Land Improvements
 Buildings
 Leasehold Improvements

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Capital Outlay

 Office Equipment
 Furniture and Fixtures
 Books
 Motor Vehicles
 Other Equipment
 Public Infrastructures
 Reforestation Projects

46
Financial Expenses

 Bank Charges (cost of

checkbooks)
 Interest Expenses
 Other Financial Charges

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Basic principle in government finance
-
 No funds shall be spent without the
necessary appropriations
 Monitoring of the approved approp-
riations of barangays and the
commitments/ charges against such
appropriations to prevent the
incurrence of commitments/charges
with insufficient or without
appropriations

48
1. The following registries shall be
maintained by the CCA/BRK for the five
funds of the barangay by class and by
object of expenditures:
 Registry of Appropriations and Commitments
– General Fund

 Registry of Appropriations and Commitments

– Calamity Fund

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 Registry of Appropriations and Commitments –
20% Development Fund

 Registry of Appropriations and Commitments-

Sangguniang Kabataan Fund

50
Policies on Recording the GAO and Commitments

 Registry of Appropriations and

Commitments – Gender and
Development Fund

2. Postings in the appropriations columns of

the Registry of Appropriations and
Commitments (RAC) shall be based on the
GAO of the barangay;

51
Policies on Recording the GAO and Commitments

3. Postings of commitments in the RAC

shall be based on the amount of
commitments/charges as certified in the
Disbursement Voucher (DV), Payroll,
Contract/Purchase Order (PO);

52
Policies on Recording the GAO and Commitments

4. Commitments/Charges for Personal

Services (PS), Maintenance and Other
Operating Expenses (MOOE), Financial
Expenses (FE) and Capital Outlay (CO)
shall be recorded in their respective
RAC for the General Fund (GF);

53
Policies on Recording the GAO and Commitments

5. Commitments/Charges against the

Calamity Fund (CF), 20% Development
Fund (DF), Sangguniang Kabataan
Fund (SKF) and Gender and
Development Fund (GDF) shall be
recorded in their respective RAC with a
detailed breakdown of expenditures;

54
6. The balance of appropriations for PS,
MOOE and FE shall be reverted/closed at
the end of the year and shall not be made
available for commitments/charges after
the calendar year unless otherwise
authorized to be retained as continuing
appropriations;

55
7. Balance of appropriations for CO, 20%
Development Fund and SK Fund,
however, shall be valid until fully spent or
until the project is completed. The
balance, if any, shall be forwarded to the
RAC of the following year.

56
 8. Calamity Fund (R.A. 10121)
Unexpended fund shall accrue to a
Special Trust Fund

To support disaster risk reduction

and management activities within
the next five years
Any amount still not fully utilized after five (5)
years shall revert back to GF for other social
services identified by the sanggunian.

57
 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - GENERAL FUND
PERSONAL SERVICES
For the Calendar Year 2007

Barangay: SIMAMLA City/Municipality:VIRAC

Tel. No.: 811-0936 Province: CATANDUANES

Date Breakdown
Particulars Ref Appropriations Salaries & Sal. & Wages- Commitments Balance
2007 Wages-Reg Contractual
Honoraria Cash Gift

1/2 Ordinance NO. 001-07 330,200.00 108,000.00 64,800.00 132,000.00 25,400.00 330,200.00
1/18 Payroll salaries of employees 2007-01-013 5,000.00 5,000.00 325,200.00
1/18 Payroll of security guard 2007-01-021 1,700.00 1,700.00 323,500.00
1/25 Honorarium of barangay officials 2007-01-015 13,200.00 13,200.00 310,300.00
Honorarium of of PB 2007-01-014 1,400.00 1,400.00 308,900.00

12/31 Grand Totals 330,200.00 106,000.00 64,500.00 132,000.00 25,400.00 327,900.00 2,300.00

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
58
 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - GENERAL FUND
MAINTENANCE AND OTHER OPERATING EXPENSES
For the Calendar Year 2007
Barangay: SIMAMLA City/Municipality: VIRAC
Virac
Tel. No.: 811-0936 Province: CATANDUANES
Catandunaes
Breakdown
Date Gas, Oil &
Repair &
Particulars Ref Appropriations Repair & Maint.- Insurance Tel. Exp.- Office Taxes Duties & Post. & Total Balance
Maint.- Electricity Lubricants Others
Motor Vehicles Premuims Moblie Supplies Licenses Deliveries Commitments
2007 Office Bldg Exp.

1/2 Ordinance No. 001-07 194,138.00 35,000.00 40,000.00 25,000.00 3,500.00 5,000.00 38,394.00 20,000.00 10,000.00 2,500.00 14,744.00 194,138.00
1/3 Electric bill from FICELCO 2007-01-017 1,480.50 1,480.50 192,657.50
Registration of motor vehicles 2007-01-008 1,600.00 1,600.00 191,057.50
Renewal of property insurance 2007-01-006 985.00 985.00 190,072.50
1/6 Establishment of PCF 2007-01-010 5,000.00 5,000.00 185,072.50
Gasoline - Petron Gas Station 2007-01-018 1,500.00 1,500.00 183,572.50
1/10 Job Order repair of motor vehicles 2007-01-019 2,000.00 2,000.00 181,572.50
1/18 Payroll of repair of barangay hall 2007-01-020 800.00 800.00 180,772.50
1/26 Replenishment of PCF 2007-01-016 300.00 350.00 80.00 730.00 180,042.50

12/31 Grand Totals 194,138.00 35,000.00 40,000.00 25,000.00 3,000.00 4,500.00 38,394.00 20,000.00 9,500.00 2,500.00 13,500.00 191,394.00 2,744.00

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date 59
 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - GENERAL FUND
CAPITAL OUTLAY
For the Calendar Year 2007
Barangay: SIMAMLA City/Municipality: VIRAC
Tel. No.: 811-0936 Province: CATANDUANES
Breakdown
Date Buildings Parks, Plaza Total
Particulars Ref Appropriations Office Furniture Other Motor Other Roads & Reforesta- Balance
Land and & Commitments
2007 Equipmt. & Fixtures Equipment Vehicles PPE Bridges tion
Structure Monuments

1/2 Ordinance No. 001-07 81,101.94 81,101.00 81,101.00

1/5 PO for 1 set of computer 2007-01-012 30,000.00 30,000.00 51,101.00

12/31 Grand Totals 81,101.00 75,986.00 75,986.00 5,115.00

Balance forwarded 5,115.00 5,115.00
to 2008 RAC-Continuing

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
60
 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - CALAMITY FUND
For the Calendar Year 2007

Barangay: SIMAMLA City/Municipality: VIRAC

Tel. No.: 811-0936 Province: CATANDUANES
Breakdown
Date Total
Particulars Ref Appropriations Food Supplies Med, Dental & Balance
Commitments
2007 Expenses Lab. Supplies
1/2 Ordinance No. 001-07 60,858.00 60,858.00
1/8 Purchase of groceries & medicines 2007-01-001 500.00 2,000.00 2,500.00 58,358.00

12/31 Grand Totals 60,858.00 40,000.00 5,000.00 5,000.00 10,858.00 60,858.00 -0-

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
61
 REGISRTY OF APPROPRIATIONS AND COMMITMENTS - 20% DEVELOPMENT FUND
For the Calandar Year 2007

Barangay: SIMAMLA City/Municipality: VIRAC

Tel. No.: 811-0936 Province: CATANDUANES
Breakdown
Date
Particulars Ref Appropriations Repairs & Maint - Commitments Balance
2007 Roads

1/2 Ordinance No. 001-07 102,000.00 102,000.00

1/11 Purchase of construction 2006-01-001 15,000.00 15,000.00 87,000.00

materials for barangay roads

12/31/07 Grand Totals 102,000.00 102,000.00 102,000.00 -0-

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
62
 REGISTRY OF APPROPRIATIONS AND COMMITMENTS - SANGGUNIANG KABATAAN FUND
For the Calendar Year 2007
Barangay: SIMAMLA City/Municipality: VIRAC
Tel. No.: 811-0936 Province: CATANDUANES
Breakdown
Date
Buildings Total
Particulars Ref Appropriations Office Balance
and Commitments
2007 Equipmt.
Structures

1/2 Ordinance No. 001-07 50,066.00 25,066.00 25,000.00 50,066.00

1/11 Purchase of construction materials 2007-01-001 12,500.00 12,500.00 37,566.00

12/31 Grand Totals 50,066.00 25,066.00 25,000.00 50,066.00 -0-

Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
63
 The Status of Appropriations, Commitments
and Balances (SACB) shall be prepared to
check on the utilization of the appropriated
funds of the barangays. To comply with the
requirement and to facilitate the work of the
City/Municipal Budget Officer, the basic
policies in reporting the General
Appropriation Ordinance (GAO) and the
commitments are as follows:

64
1. The BRK shall close and certify the
correctness of entries in the RACs
at year end

65
2. The BRK shall prepare the Status of
Appropriations, Commitments and
Balances (SACB) for Current Legislative
Appropriations and Continuing
Appropriations for the barangay based on
the RACs for the five funds.

66
3. The SACB shall be submitted annually
to the City/Municipal Budget Officer on
the 5th day of January of the ensuing
year for review and consolidation with
all the SACB of the different barangays
in the city/municipality.

67
 STATUS OF APPROPRIATIONS, COMMITMENTS AND BALANCES
(Current Legislative Appropriations)
As of
AsDecember 31, 2007
of _________________________
Barangay: SIMAMLA City/Municipality: VIRAC
Tel. No.: 811-0936 Province: CATANDUANES
Appropriations
Fund Commitments Balance
Total Annual Supplemental
General Fund
Personal Services 330,200.00 330,200.00 327,900.00 2,300.00
Maintenance and Other Operating Expenses 194,138.00 194,138.00 191,394.00 2,744.00
Capital Outlay 81,101.00 81,101.00 75,986.00 5,115.00
Sub-total
Calamity Fund
Maintenance and Other Operating Expenses 60,858.00 60,858.00 60,858.00 0.00
Sub-total
20% Development Fund
Maintenance and Other Operating Expenses
Capital Outlay 102,000.00 102,000.00 102,000.00 0.00
Sub-total
Sangguniang Kabataan Fund
Maintenance and Other Operating Expenses
Capital Outlay 50,066.00 50,066.00 50,066.00 0.00
Sub-total
Gender and Development Fund
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Grand Total 818,363.00 808,204.00 10,159.00
Prepared by: Certified Correct:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
Noted by:

Signature over Printed Name

Punong Barangay

Date 68
 STATUS OF APPROPRIATIONS, COMMITMENTS AND BALANCES
(Continuing Appropriations)
As of December 31, 2007

Barangay: Simamla City/Municipality: Virac

Tel. No.: 811-2318 Provinve: Catanduanes
Appropriations
Fund Commitments Balance
Total Annual Supplemental
General Fund
Capital Outlay
Sub-total
20% Development Fund
Maintenance and Other Operating Expenses
Capital Outlay
Sub-total
Sangguniang Kabataan Fund
Maintenance and Other Operating Expenses
Capital Outlay
Sub-total
Grand Total
Prepared by: Certified by:

Signature over Printed Name Signature over Printed Name

Barangay Record Keeper Chairman, Committee on Appropriations

Date Date
Noted by:

Signature over Printed Name

Punong Barangay
69
Date
 Approved
Budget RAC
(GAO)

DV/ Payroll/
PR /PO/
Contract

City/Municipal
CSACB Budget Office SACB

70
71