BUDGET AUTHORIZATION LECTURE-BARANGAYS-2020 - Des
BUDGET AUTHORIZATION LECTURE-BARANGAYS-2020 - Des
BUDGET AUTHORIZATION LECTURE-BARANGAYS-2020 - Des
BUDGET
AUTHORIZATION
THE LOCAL BUDGET
PROCESS
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BUDGET AUTHORIZATION
2nd phase in the budget process
Legislative function enacting the
ordinance authorizing the budget
Starts from the time the
Sangguniang Barangay (SB)
receives the Barangay Budget from
the Punong Barangay (PB)
LEGAL BASES
1. Punong Barangay
2. Sangguniang Barangay
3. Committee on Appropriations/Finance
4. Barangay Treasurer
5. Barangay Secretary
STEPS IN BUDGET
AUTHORIZATION
ON OR BEFORE
1. ENACT THE AO BEGINNING OF
ENSUING YEAR
4. SUBMIT THE AO
FOR REVIEW WITHIN 10 DAYS AFTER
APPROVAL OF AO
WHAT MARKS THE START OF THE BUDGET
AUTHORIZATION PHASE?
1b
ANNUAL BUDGET
Document Signatory
Budget Message PB
Proposed Annual Budget PB
Plantilla of Personnel BT and PB
1b
SUPPLEMENTAL BUDGET
Document Signatory
Transmittal Letter PB
Statement of Funding Sources BT, C/M
Accountant
and PB
Statement of Supplemental BS and PB
Appropriations
Supplemental AIP – approved by SB BT and PB
STEP 1.2 EVALUATE THE BUDGET
Receipts Program
Check/validate:
1.Check Budget year’s total estimated
income and assess probability of
collection (Sec 391[a][2], LGC)
Check/validate:
Aggregate income (BY) vs. aggregate
expenditure program (BY) (Sec 324 [a], LGC)
Regular income (BY) – basis for computing
20% ceiling for debt servicing (Sec 324 [b],
LGC)
Regular income (BY) – basis for 5% LDRRMF
(RA No. 10121 [2010]; NDRRMC, DBM & DILG JMC
No. 2013-1 dated March 25, 2013)
app
Quisumbing, et al. vs. Garcia, et al.
The question of whether a sanggunian
authorization separate from the appropriation
ordinance is required should be resolved depending
on the particular circumstances of the case. Resort
to the appropriation ordinance is necessary in order
to determine if there is a provision therein which
specifically covers the expense to be incurred or the
contract to be entered into. Should the
appropriation ordinance, for instance, already
contain in sufficient detail the project and cost of a
capital outlay such that all that the local chief
executive needs to do after undergoing the
requisite public bidding is to execute the contract,
no further authorization is required, the
appropriation ordinance already being sufficient.
Quisumbing, et al. vs. Garcia, et al.
On the other hand, should the appropriation
ordinance describe the projects in generic terms
such as "infrastructure projects," "inter-municipal
waterworks, drainage and sewerage, flood control,
and irrigation systems projects," "reclamation
projects" or "roads and bridges," there is an obvious
need for a covering contract for every specific
project that in turn requires approval by the
sanggunian. Specific sanggunian approval may also
be required for the purchase of goods and services
which are neither specified in the appropriation
ordinance nor encompassed within the regular
personal services and maintenance operating
expenses.
•See also COA Memo No. 2010-014 dated 22 April 2010
COA MEMORANDUM No. 2010-014
dated 22 April 2010
• Expenditure Program
Check/validate:
80% of Nat’l Wealth from dev. and utilization
of hydrothermal… applied SOLELY to lower
cost of electricity…
Discretionary expenses, if any, does not
exceed 2% of actual RPT in the NPY
Honoria does not exceed the authorized rates
4th sub
STEP 1.4 AUTHORIZE THE BUDGET
Contents of the AO
An assigned number, title or caption, enacting
or ordaining clause, and the date of proposed
effectivity (Article 107 [b], IRR)
A provision identifying the documents appended
to the AO that will form an integral part thereof
– Plantilla of Personnel; AIP; List of 20% DF;
GAD Plan; LDRRMP; APP
Receipts Program
Expenditure Program
General Provisions
basic rules
STEP 1.4 AUTHORIZE THE BUDGET
cont
STEP 1.4 AUTHORIZE THE BUDGET
cont
STEP 1.4 AUTHORIZE THE BUDGET
WHAT IS MAJORITY?
Exception
The LCE or the presiding officer of the
Sanggunian may, BY ORDINANCE, be authorized
to augment any item in the approved annual
budget for their respective offices from savings
in other items WITHIN THE SAME EXPENSE
CLASS of their respective appropriations (Sec
336, LGC)
SAMPLE PORTION OF AO
CONSEQUENCES:
o The AO of the preceding year shall be
deemed reenacted
Sagot:
– Ito ay nagsisimula sa oras na natanggap
na ng Sanggunian Barangay ang
Barangay Badyet mula sa Punong
Barangay
2. Ano ang legal na basehan sa
paggamit ng pondo ng barangay?
Sagot:
– Seksyon 305 (a) ng LGC – Walang pera na
ipambabayad mula sa lokal na yaman
kundi alingsunod sa appropriation
ordinance o batas.
3. Kailan dapat isumite ng Punong Barangay and
taunang badyet ng barangay?
Sagot:
– Ito ay dapat na ma-isumite ng hindi
lalampas sa ika-16 ng Oktubre ng
kasalukuyang piskal na taon.
4. Ano ang magiging parusa sa Punong Barangay
kung sakaling hindi niya na isumite ang badyet sa
tamang panahon?
Sagot:
– Siya ay pwedeng kasuhan, kriminal at/o
administratibo.
5. May takdang panahon ba ang Sangguniang
Barangay sa pagpasa ng badyet?
Sagot:
– Oo, sa araw ng o bago katapusan ng
kasalukuyang piskal na taon, ang Sangguniang
ay dapat ng nakapag-pasa na ng ordinansa na
ipinapasa ang taunang badyet ng lokal na
pamahalaan para sa padating na taong piskal.
6. Maari bang pabilisin ang pagpasa ng
barangay badyet?
Sagot:
o Oo, kung ito ay i-sertipika ng Punong
Barangay bilang “urgent.”
7. Ano ang epekto pag hindi naipasa ang taunang
badyet bago mag-umpisa ang taong piskal?
Sagot:
o Magpapatuloy ang sesyon ng Sangguniang Barangay
na ang taunang badyet lang ang tatalakayin.
o Walang ibang bagay na pwedeng talakayin
o Magkaroon ng “reenacted” na badyet.
o Hindi pwedeng magpasa ng “supplemental budget.”
7. Ilang bahagi ng Internal Revenue Allotment ang
dapat pumunta sa “development projects”?
Sagot:
– Hindi bababa sa 20%
8. Dapat bang naka-lista ang mga proyekto
sa badyet? Bakit?
Sagot:
o Oo, sapagkat kung hindi ito naka-lista
kailangan pa ng panibagong pahintulot mula
sa Sangguniang Barangay bago magamit ang
perang nakalaan.
9. Ano ang bagong tawag sa Calamity Fund?
Ilang bahagi ng badyet ang dapat ilaan dito?
Sagot:
o LDRRMF
o Dapat hindi ito kukulangin sa 5% ng
tinantiyang kita mula sa regular sources.
10. Magagamit ba ang natirang pera sa LDRRMF
pagkatapos ng taon?
Sagot:
o Hindi, ano mang balanse ay dapat pumunta sa
“trust fund” hanggang matapos ang limang
taon – pagtapos ng limang taon, pwede nang
ibalik ang buong balanse ng LDRRMF sa GF.
11. Kailan magiging epektibo ang
taunang badyet ng barangay?
Sagot:
o Pagkatapos ng takdang panahon ng
paglathala.