National Seminar-Workshop on the Preparation of FY 2010 Year-End Financial Reports Villa Caceres, Naga City January 31, 2011 to February 05, 2011

1. Registry of Appropriations and Allotments (RAPAL) o To control and monitor appropriations and releases of allotment 2. Reconciliation of releases of allotments with the agencies and DBM. 3. Submission of SAOB by SARO and ABM broken down by allotment class. COA REQUIREMENTS

4. Submission of SAOB to Auditors and to the Government Accountancy Sector (GAS) 5. The SAOB shall include the allotments and obligations of secondary schools under the Division, with complete set of books of accounts. It shall be submitted to the Regional Office for consolidation with its own SAOB. COA REQUIREMENTS

6. The SAOB of the Regional Offices shall be consolidated by the Central Office Budget Office and submitted to the GAS. 7. Sub-allotments issued by the Central Office should be reconciled with the sub-allotments received by the Regional Offices. 8. Submission of Quarterly Reports, by Province/City, 30 days after the close of each quarter COA REQUIREMENTS

5 1.Budget Execution Documents (BEDs) 2.Budget Accountability Reports (BARs) DBM Requirements (per NBC No. 507)

6 BEDs and BARS Type of ReportPeriod of Submission Budget Execution Documents (BEDs) 1.Physical and Financial Plan (PFP) On or before February 15 of each year - Serves as overall plan of the Operating Unit (OU), encompassing the physical (targeted outputs) and financial (estimated obligations/ expenditures) aspects, consistent with their approved budget level for the year, broken down by quarter.

7 BEDs and BARS Type of ReportPeriod of Submission Budget Execution Documents (BEDs) 2.Monthly Cash Program (MCP)On or before February 15 of each year -Reflect the monthly disbursement requirements of OUs. This shall be used by DBM as basis for issuance of NCA, CDC and other disbursement authorities

8 Type of ReportPeriod of Submission Budget Execution Documents (BEDs) 3.Estimate of Monthly IncomeOn or before February 15 of each year - Reflect the estimated income of OUs for the current year by source, as contained under the Budget of Expenditure and Sources of Financing (BESF) of the given year, broken down by month BEDs and BARS

9 Type of ReportPeriod of Submission Budget Execution Documents (BEDs) 4.List of Not Yet Due and Demandable Obligations On or before January 31 of each year - Reflect the level of OUs’ obligations/ expenditures charged against prior years’ budget, for which, goods/ services/projects are not yet delivered/rendered/completed and accepted as of the end of the preceding year. BEDs and BARS

10 Type of ReportPeriod of Submission Budget Accountability Reports (BARs) Quarterly 1.Quarterly Physical Report of Operations On or before the 10 th day of the following Quarter -Reflect the OUs’ actual physical accomplishments for a given quarter, in terms of the performance measures indicated in their PFP. BEDs and BARS

11 Type of ReportPeriod of Submission Budget Accountability Reports (BARs) Quarterly 2.Quarterly Financial Report of Operations On or before the 10 th day of the following Quarter -Reflect the OUs’ actual obligations/ expenditures incurred by P/A/P and allotment class for a given quarter, corresponding to the reported physical accomplishments for the same period. BEDs and BARS

12 Type of ReportPeriod of Submission Budget Accountability Reports (BARs) Quarterly 3.Quarterly Report of IncomeOn or before the 10 th day of the following Quarter -Reflect the OUs’ actual income collections from all sources for a given quarter broken down by month. BEDs and BARS

13 Type of ReportPeriod of Submission Budget Accountability Reports (BARs) Monthly A.Statement of Allotment, Obligations and Balances (SAOB) On or before the 10 th day of the following Month -Serve as the OUs summary report of allotments received and corresponding obligations/ expenditures incurred during the month, summarized by source and by object of expenditure of the total cumulative allotments BEDs and BARS

14 Type of ReportPeriod of Submission Budget Accountability Reports (BARs) Monthly B.Monthly Report of DisbursementsOn or before the 10 th day of the following Quarter -This (in lieu of the Summary of List of Checks Issued and Cancelled) shall reflect all the disbursements of the OUs during the month, arising from NCAs, NCAA, CDC and TRAs. BEDs and BARS

FY 2012 Budget Preparation Calendar

 Consultations between Agency Central Office (ACO) Budget and Planning Officers and DBM for formulation and updating the future annual cost of on going programs and projects  ACO consultation with Agency Regional Offices (ARO) to determine the appropriate regional distribution of existing PAPs FORWARD ESTIMATES/INDICATIVE BUDGET CEILING FOR FY

 Implications of the budget distribution for the agency’s financial and physical performance targets for FYs 2012 – 2014 shall serve as basis for the formulation of budget proposals above the ceiling FORWARD ESTIMATES/INDICATIVE BUDGET CEILING FOR FY

REGIONAL CONSULTATIONS  The Regional Development Councils (RDCs) shall be used as venues for the affirmation and/or suggestions on needed improvement in agency program  DBM RO and NEDA shall coordinate the conduct of RDC consultations with AROs, SUCs and LGUs in February 2011

REGIONAL CONSULTATIONS  AROs shall take their respective budget allocation agreed with ACOs for existing PAPs and lump sum funds and shall present them to the RDCs to secure feedback on the impact of these PAPs in the different provinces and localities in the region  ACOs, through the AROs, are enjoined to provide RDCs and DBM ROs with feedback on RDC recommendations on PAPs which are to be incorporated in the budget submission to DBM.

Consultations with CSOs, Private Sector and other Stakeholders  Principles of CSO Engagement 1.Transparency 2.Accountability 3.Integrity 4.Partnership 5.Consultation and mutual empowerment 6.Respect for internal processes 7.Sustainability 8.National Interest  A report shall be given to DBM containing the feedback of the CSOs and the other stakeholders on the existing P/A/Ps following the form prescribed under Table I.

 Trust Funds, Revolving Funds and Special Accounts in the General Fund earmarked to support identified P/A/Ps as provided for under specific provisions of law, shall be fully reflected in the budget proposal.  Activities which are not funded out of the regular budget of the agency but have the probability of becoming real liabilities such as contingent liabilities arising from BOT projects and other multi-year obligations or multi-agency projects must be identified through a footnote in the agency budget proposal (BP 201 Forms). TOTAL RESOURCE BUDGETING

 Indicative ceilings correspond to the FEs  Consistent with the performance-based budgeting approach, the indicative budget ceiling may be adjusted based on demonstrated absorptive capacity in relation to the agency MFOs.  Proposed financial allocation must be related with the target output/indicator  If agencies fail to support their proposed financial allocation with the targeted output/indicator, the budget level shall thus be limited to the FY 2010 actual expenditure level, net of non-recurring expenditure items. DEPARTMENT CEILING FOR FY 2012

OUTPUT-BASED BUDGETING/OPIF  OPIF logframe is a planning tool  Budget proposals of the OPIF-ready departments/ agencies/OEOs shall be distributed by MFOs using MFO Budget Matrix (Form A)  Agency P/A/Ps shall be attributed to appropriate MFOs

OUTPUT-BASED BUDGETING/OPIF  Appropriate key performance indicators/targets shall be identified per MFO  Performance Indicators (PIs), defined under NBC No. 501 (s. 2005) as performance measures to be used for the assessment of the delivery of MFOs contributing to organizational outcomes, can be expressed in either quantitative or qualitative terms:  Performance targets (PTs) are the achievable levels of accomplishment (quantitative and qualitative) pertaining to an agency’s MFO - PI consistent with its budget allocation within a one-year period. It is generally expected that PTs will rise with an increase in budget.

 Personal Services  MOOE  Capital Outlay B. FY 2012 SPECIFIC GUIDELINES Annex A

C. Budget Preparation Forms

Table 1

Submission Requirements  Adoption of MTEF and OPIF frameworks  Budget Preparation (BP) forms must be in accordance with expenditure and income accounts under the New Government Accounting System (NGAS)  The Department Secretary/Head of the OEO shall ensure compliance with the guidelines contained in the Budget Call  Budget proposals must be duly endorsed by the Department Secretary/OEO Head

Submission Requirements  Agency budget proposals shall include the following: a.Five (5) sets of Budget Preparation (BP) Forms, OPIF Forms A and B and Table 1; b.Inventory of equipment; and, c.Five (5) copies each of the agency’s FY 2009 and FY 2010 Accomplishment Reports.

Submission Requirements  Observe deadlines: March 15-for 2010 actual obligation and 2011 programs April 8-for 2012 budget proposal  Submission by NGAs to the Budget Technical Service (BTS), Ground Floor, DBM Building II, General Solano St., San Miguel, Manila.  For SUCs, submission shall be made to the DBM RO concerned