TEAM 4

BUDGET
EXECUTION
TEAM 4 CONTRIBUTIONS
RESEARCH
REPORTING AND INFO POWERPOINT
GATHERING
LEADER:
✓ ✓
BOLOS, CRISTINE MAY V.
MEMBERS:
DAVID, REGINA ISABELA ✓ ✓
DIMATULAC, JENNILYN JOY A. ✓ ✓
GOMEZ, HANAH GRACE G. ✓ ✓
MALLARI, STEPHANIE ARIANE C. ✓ ✓
MIRANDA, LOUELLA MAE W. ✓ ✓
ROMERO, HARJAY D. ✓ ✓ ✓
TRANSFIGURACION, KATHLINE A. ✓ ✓
 • BUDGET EXECUTION STAGE
IS WHERE FUNDS ARE ACTUALLY
RAISED AND SPENT TO
IMPLEMENT THE POLICIES,
BUDGET PROGRAMS, AND PROJECTS
EXECUTION OUTLINED IN THE ENACTED
BUDGET.
• IT IS ALSO AT THIS STAGE
WHERE AGENCIES MAY SUBMIT
REQUESTS FOR AVAILMENT FROM
SPECIAL PURPOSE FUNDS.

R e p o r t e r : M A L L A R I , S TA P H A N I E
 BUDGET EXECUTION

BUDGET EXECUTION PHASE IS THE PRIMARY THE FUNCTION

OF DBM WHICH IS TASKED TO PERFORM THE FF:
• TO ISSUE THE PROGRAMS AND GUIDELINES FOR THE
RELEASE OF FUNDS
• TO PREPARE AN ALLOTMENT AND CASH RELEASE
PROGRAM
• TO RELEASE ALLOTMENTS
• TO ISSUE DISBURSEMENT AUTHORITIES.

R e p o r t e r : M A L L A R I , S TA P H A N I E
 RELEASE GUIDELINES AND BEDs

RELEASE GUIDELINES

• DBM ISSUES GUIDELINES ON THE RELEASE AND

UTILIZATION OF FUNDS.

R e p o r t e r : R O M E R O , H A R J AY
 DBM
GUIDELINES

R e p o r t e r : R O M E R O , H A R J AY
 DBM
GUIDELINES

R e p o r t e r : R O M E R O , H A R J AY
 RELEASE GUIDELINES AND BEDs

BUDGET EXECUTION DOCUMENTS (BEDs)

• THE VARIOUS AGENCIES SUBMIT THEIR BUDGET

EXECUTION DOCUMENTS (BEDs).
• BEDs CONTAIN THE AGENCY’S TARGETS AND
PLANS FOR THE CURRENT YEAR.

R e p o r t e r : R O M E R O , H A R J AY
 BUDGET EXECUTION DOCUMENTS
PERIOD OF
BEDs DATA ELEMENTS FORM NO.
SUBMISSION
ESTIMATED BUDGETARY
FINANCIAL PLAN
ALLOCATION AND OBLIGATIONS
BED 1
PHYSICAL PLAN PHYSICAL TARGETS ON OR BEFORE
FEBRUARY 15
MONTHLY CASH PROJECTED MONTHLY OF EACH YEAR
PROGRAM DISBURSEMENT REQUIREMENTS BED 2
ESTIMATE OF MONTHLY ESTIMATED MONTHLY INCOME FOR
INCOME THE CURRENT YEAR BED 3
OBLIGATIONS THAT ARE NOT YET
LIST OF OBLIGATIONS ON OR BEFORE
RENDERED, DELIVERED AND
THAT ARE NOT YET DUE
COMPLETED AS OF DEC. 31 OF THE BED 4 JANUARY 31
AND DEMANDABLE OF EACH YEAR
PRECEDING YEAR.

THE OPERATING UNITS (OUs) OF NATIONAL GOVERNMENT AGENCIES SHALL

DIRECTLY SUBMIT THE BEDs TO THE CONCERNED DBM OFFICES.
R e p o r t e r : R O M E R O , H A R J AY
 RELEASE GUIDELINES AND BEDs

THE BEDs SHALL BE USED BY DBM AS BASIS TO:

• DETERMINE THE AGENCY’S LEVEL OF PERFORMANCE,
WHICH SHALL BE USED AS BENCHMARKS IN
VALIDATING THE:
• LEVEL OF FUNDING PROVIDED TO THE AGENCY.
• LEVEL OF AGENCY BUDGET FOR THE ENSUING
YEAR(S).
• DECIDE ON AGENCY REQUESTS FOR RELEASE OF
ADDITIONAL FUNDS AND REALIGNMENT OF FUNDS.

R e p o r t e r : R O M E R O , H A R J AY
 MAJOR RECIPIENT OF THE BUDGET:

NATIONAL GOVERNMENT AGENCIES (NGAS)

• INCLUDE ALL AGENCIES WITHIN THE EXECUTIVE,

LEGISLATIVE AND JUDICIAL BRANCHES OF
GOVERNMENT. THESE ARE THE ENTITIES WHICH
PERFORM FUNCTIONS NOT NORMALLY
UNDERTAKEN BY THE PRIVATE SECTOR. THEY ARE
WHOLLY DEPENDENT ON THE GOVERNMENT FOR
FINANCING ITS BUDGETARY REQUIREMENTS.

Reporter: MIRANDA, LOUELLA

 MAJOR RECIPIENT OF THE BUDGET:

LOCAL GOVERNMENT UNITS (LGUS)

• INCLUDE (A) AUTONOMOUS REGIONS, (B)

PROVINCES AND CITIES INDEPENDENT FROM A
PROVINCE, (C) COMPONENT CITIES (CITIES WHICH
ARE PART OF A PROVINCE) AND MUNICIPALITIES,
AND (D) BARANGAYS.

Reporter: MIRANDA, LOUELLA

 MAJOR RECIPIENT OF THE BUDGET:

GOVERNMENT OWNED AND CONTROLLED CORPORATIONS (GOCCS)

• CORPORATIONS THAT ARE OWNED OR CONTROLLED,

DIRECTLY OR INDIRECTLY, BY THE GOVERNMENT AND
VESTED WITH FUNCTIONS RELATING TO PUBLIC NEEDS.

THERE ARE FOUR TYPES OF RELEASES TO GOCCS:

1. EQUITY
2. SUBSIDY
3. NET LENDING
4. CREDITORS
Reporter: MIRANDA, LOUELLA
 BUDGET EXECUTION

PRIORITY DEVELOPMENT ASSISTANCE FUND (PDAF)

• ALSO KNOWN AS "PORK BARREL"

• THIS IS INTENDED TO FUND PRIORITY DEVELOPMENT
PROGRAMS OF THE GOVERNMENT.

R e p o r t e r : D I M AT U L A C , J E N N I LY N
 BUDGET EXECUTION

JUDICIARY DEVELOPMENT FUND (JDF)

• WAS CREATED ON 1985 THROUGH PD NO. 1949

• 80% COST OF LIVING ALLOWANCE
• 20% ALLOCATION FOR MAINTENANCE OFFICE
EQUIPMENT AND FACILITIES.

R e p o r t e r : D I M AT U L A C , J E N N I LY N
 BUDGET EXECUTION

DISBURSEMENT ACCELERATION PROGRAM (DAP)

• WAS INTRODUCED ON 2011 UNDER AQUINO

ADMINISTRATION.
• WHICH AIMS TO SPEED-UP PUBLIC SPENDING AND TO
BOOST THE ECONOMY.

R e p o r t e r : D I M AT U L A C , J E N N I LY N
 BUDGET EXECUTION

R e p o r t e r : D I M AT U L A C , J E N N I LY N
 BUDGET EXECUTION

R e p o r t e r : D I M AT U L A C , J E N N I LY N
 BUDGET EXECUTION

SAVINGS

• ARE AVAILABLE PORTIONS OR BALANCES OF ITEMS

UNDER GENERAL APPROPRIATION ACT.

UNPROGRAMMED FUNDS

• ARE APPROPRIATIONS THAT MAY BE TAPPED ONCE NEW

RESOURCES OF FUNDS ARE GENERATED BY THE
NATIONAL GOVERNMENT.

R e p o r t e r : D I M AT U L A C , J E N N I LY N
 ALLOTMENT

• THE DBM FORMULATES THE ALLOTMENT RELEASE

PROGRAM (ARP) AND IT IS USED AS A CONTROL DEVICE
TO ENSURE THAT THE RELEASE CONFORMS TO THE
NATIONAL BUDGET.

• ARP - SET THE LIMIT FOR ALLOTMENT RELEASES

DURING THE UPCOMING YEAR.
• CRP - SET THE DISBURSEMENT LIMITS FOR THE
YEAR, FOR EACH QUARTER AND FOR EACH MONTH.

Reporter: BOLOS, CRISTINE

 ALLOTMENT

• ALLOTMENT IS AN AUTHORIZATION ISSUED BY THE DBM

GOVERNMENT AGENCIES TO INCUR OBLIGATIONS FOR
SPECIFIED AMOUNTS CONTAINED IN A LEGISLATIVE
APPROPRIATION IN THE FORM OF BUDGET RELEASE
DOCUMENTS; ALSO REFERRED AS OBLIGATIONAL
AUTHORITY.
• OBLIGATION MAY BE REFERRED TO AS A COMMITMENT
THAT ENCOMPASSES POSSIBLE FUTURE LIABILITIES
BASED ON CONTRACTUAL AGREEMENT.
• OBLIGATION IS AN ACT OF A DULY AUTHORIZED OFFICIAL
WHICH BINDS THE GOVERNMENT TO THE IMMEDIATE OR
EVENTUAL PAYMENTS OF A SUM OF MONEY.
Reporter: BOLOS, CRISTINE
 DOCUMENTS USED IN RELEASING ALLOTMENTS

GAARD - GENERAL APPROPRIATIONS ACT RELEASE DOCUMENT

• SERVES AS OBLIGATIONAL AUTHORITY FOR

COMPREHENSIVE RELEASE OF BUDGETARY ITEMS
APPROPRIATED IN GAA, CATEGORIZED AS FOR
COMPREHENSIVE RELEASE.

Reporter: GOMEZ, HANAH

 DOCUMENTS USED IN RELEASING ALLOTMENTS

SARO - SPECIAL ALLOTMENT RELEASE ORDER

• COVERS BUDGETARY ITEMS UNDER FOR LATER

RELEASE (NEGATIVE LIST)
• RELEASES OF ALLOTMENTS FOR SPECIAL PURPOSE
FUNDS
• EXAMPLES: CALAMITY FUNDS, CONTINGENT
FUNDS, E-GOVERNMENT FUND, FEASIBILITY
STUDIES FUND, INTERNATIONAL, COMMITMENTS
FUND, MISCELLANEOUS PERSONNEL BENEFITS
FUND AND PENSION GRATUITY FUND
Reporter: GOMEZ, HANAH
 DOCUMENTS USED IN RELEASING ALLOTMENTS

GARO - GENERAL ALLOTMENT RELEASE ORDER

• IT COVER AUTOMATICALLY APPROPRIATED

EXPENDITURES COMMON TO MOST, IF NOT ALL,
AGENCIES WITHOUT NEED OF SPECIAL CLEARANCE OF
APPROVAL FROM COMPETENT AUTHORITY.
• EXAMPLES: RETIREMENT AND LIFE INSURANCE
PREMIUM

Reporter: GOMEZ, HANAH

 INCURRENCE OF OBLIGATION

INCURRENCE OF OBLIGATION

• GOVERNMENT AGENCIES INCUR OBLIGATION WHICH

WILL BE PAID BY THE GOVERNMENT.
• SHALL BE MADE THROUGH THE ISSUANCE OF
OBLIGATION REQUEST AND STATUS.

R e p o r t e r : T R A N S F I G U R A C I O N , K AT H L I N E
 DISBURSEMENT AUTHORITY

DISBURSEMENT AUTHORITY

• THIS IS THE POINT WHERE GOVERNMENT AGENCIES

OBTAIN ACCESS TO THE GOVERNMENT.

R e p o r t e r : T R A N S F I G U R A C I O N , K AT H L I N E
 DISBURSEMENT AUTHORITY

NOTICE OF CASH ALLOCATION (NCA)

• AUTHORITY ISSUED BY THE DBM TO CENTRAL,

REGIONAL AND PROVINCIAL OFFICES AND OPERATING
UNITS TO COVER THEIR CASH REQUIREMENTS.

R e p o r t e r : T R A N S F I G U R A C I O N , K AT H L I N E
 DISBURSEMENT AUTHORITY

NOTICE OF TRANSFER OF ALLOTMENT

• AUTHORITY ISSUED BY AN AGENCY’S CENTRAL OFFICE

TO ITS REGIONAL AND OPERATING UNITS TO COVER THE
LATTER’S CASH REQUIREMENTS

R e p o r t e r : T R A N S F I G U R A C I O N , K AT H L I N E
 DISBURSEMENT AUTHORITY

NON-CASH AVAILMENT AUTHORITY

• AUTHORITY ISSUED BY THE DBM TO AGENCIES TO

COVER THE LIQUIDATION OF THEIR ACTUAL
OBLIGATIONS INCURRED AGAINST AVAILABLE
ALLOTMENTS FOR AVAILMENT OF PROCEEDS FROM
LOANS/GRANTS THROUGH SUPPLIER’S
CREDIT/CONSTRUCTIVE.

Repo r ter : DAV I D, R EG I N A

 DISBURSEMENT AUTHORITY

CASH DISBURSEMENT CEILING

• AUTHORITY ISSUED BY THE DBM TO AGENCIES WITH

FOREIGN OPERATIONS ALLOWING THEM TO USE THE
INCOME COLLECTED BY THEIR FOREIGN SERVICE
POSTS TO COVER THEIR OPERATING REQUIREMENTS.

Repo r ter : DAV I D, R EG I N A

 DISBURSEMENT AUTHORITY

MODIFIED DISBURSEMENT SYSTEM (MDS) CHECKS

• REFERS TO A CHECK ISSUED BY GOVERNMENT

AGENCIES CHARGEABLE AGAINST THE ACCOUNT OF
THE TREASURER OF THE PHILIPPINES (I.E., TREASURY
SINGLE ACCOUNT) WHICH ARE MAINTAINED WITH
DIFFERENT MDS AGDBS ( AUTHORIZED GOVERNMENT
DEPOSITORY BANKS) . MDS CHECKS ARE COVERED BY
NCA.

Repo r ter : DAV I D, R EG I N A

 DISBURSEMENT AUTHORITY

MODES OF DISBURSEMENTS:
a. CHECKS (MDS CHECKS, COMMERCIAL CHECKS)
b. CASH
c. CASHLESS PAYMENTS
i. ADVICE TO DEBIT ACCOUNTS (ADA)
ii. ELECTRONIC MODIFIED DISBURSEMENTS
SYSTEMS (EMDS)
iii. CASHLESS PURCHASE CARD SYSTEMS
(CREDIT CARD)
iv. NON-CASH AVAILMENT AUTHORITY (NCAA)
v. TAX REMITTANCE ADVICE (TRA)
Repo r ter : DAV I D, R EG I N A
 REMEMBER THE FOLLOWING:
AUTHORIZATION BY LEGISLATIVE BODY TO
APPROPRIATION ALLOCATE FUNDS FOR SPECIFIED
PURPOSES
AUTHORIZATION TO AGENCIES TO INCUR
ALLOTMENT
OBLIGATIONS
AMOUNT CONTRACTED BY AN AUTHORIZED
OBLIGATION OFFICER FOR WHICH THE GOVERNMENT IS
HELD LIABLE
ACTUAL AMOUNT PAID OUT OF THE
DISBURSEMENT
BUDGETED AMOUNT

Repo r ter : DAV I D, R EG I N A

ACTIVITY
QUESTION 1

IT IS THE PRIMARY FUNCTION OF THE

DEPARTMENT OF BUDGET AND MANAGEMENT.
QUESTION 1

IT IS THE PRIMARY FUNCTION OF THE

DEPARTMENT OF BUDGET AND MANAGEMENT.

ANSWER: BUDGET EXECUTION

QUESTION 2
WHAT DOES A NEGATIVE LIST MEAN? AND GIVE 1
EXAMPLE OF A NEGATIVE LIST.
QUESTION 2
WHAT DOES A NEGATIVE LIST MEAN? AND GIVE 1
EXAMPLE OF A NEGATIVE LIST.

ANSWER: BY THEIR NATURE, NEGATIVE LISTS ARE THE

ITEMS THAT REQUIRE THE SUBMISSION OF DETAILS AND/OR
COMPLIANCE WITH CERTAIN REQUIREMENTS PRIOR TO THE
RELEASE OF FUNDS.
EXAMPLES: CALAMITY FUNDS, CONTINGENT FUNDS, E-
GOVERNMENT FUND, FEASIBILITY STUDIES FUND,
INTERNATIONAL, COMMITMENTS FUND, MISCELLANEOUS
PERSONNEL BENEFITS FUND AND PENSION GRATUITY FUND.
QUESTION 3
A GOVERNMENT ENTITY RECEIVES
AUTHORIZATION TO DISBURSE FUNDS NOT TO
EXCEED P 1 BILLION IN A SPECIFIED PERIOD. THIS
EVENT CAN BE DESCRIBED AS:
A. ALLOTMENT
B. NOTICE OF CASH ALLOCATION
C. APPROPRIATION
QUESTION 3
A GOVERNMENT ENTITY RECEIVES
AUTHORIZATION TO DISBURSE FUNDS NOT TO
EXCEED P 1 BILLION IN A SPECIFIED PERIOD. THIS
EVENT CAN BE DESCRIBED AS:
A. ALLOTMENT
B. NOTICE OF CASH ALLOCATION
C. APPROPRIATION

ANSWER: B
QUESTION 4
T OR F. ALLOTMENT OR ALSO CALLED AS
OBLIGATION AUTHORITY IS AN AUTHORIZATION
ISSUED BY THE COA TO NGAS TO INCUR
OBLIGATIONS.
QUESTION 4
T OR F. ALLOTMENT OR ALSO CALLED AS
OBLIGATION AUTHORITY IS AN AUTHORIZATION
ISSUED BY THE COA TO NGAS TO INCUR
OBLIGATIONS.

ANSWER: FALSE
QUESTION 5
IT IS ONE OF THE MAJOR RECIPIENTS OF THE
BUDGET WHICH INCLUDE ALL AGENCIES WITHIN
THE EXECUTIVE, LEGISLATIVE AND JUDICIAL
BRANCHES OF GOVERNMENT.
QUESTION 5
IT IS ONE OF THE MAJOR RECIPIENTS OF THE
BUDGET WHICH INCLUDE ALL AGENCIES WITHIN
THE EXECUTIVE, LEGISLATIVE AND JUDICIAL
BRANCHES OF GOVERNMENT.

ANSWER: NATIONAL GOVERNMENT AGENCIES (NGAS)

QUESTION 6
THIS SUMMARIZES AN AGENCY’S FISCAL YEAR PLANS AND
PERFORMANCE TARGETS. IT SHOWS THE AGENCY’S PHYSICAL
AND FINANCIAL PLAN, MONTHLY CASH PROGRAM, ESTIMATE OF
MONTHLY INCOME, AND LIST OF OBLIGATIONS THAT ARE NOT YET
DUE AND DEMANDABLE.
a. BUDGET EXECUTION DOCUMENTS (BEDS)
b. SPECIAL ALLOTMENT RELEASE ORDER
c. STATEMENT OF APPROVED BUDGET, UTILIZATIONS,
DISBURSEMENTS AND BALANCES
d. AGING OF DUE AND DEMANDABLE OBLIGATIONS
QUESTION 6
THIS SUMMARIZES AN AGENCY’S FISCAL YEAR PLANS AND
PERFORMANCE TARGETS. IT SHOWS THE AGENCY’S PHYSICAL
AND FINANCIAL PLAN, MONTHLY CASH PROGRAM, ESTIMATE OF
MONTHLY INCOME, AND LIST OF OBLIGATIONS THAT ARE NOT YET
DUE AND DEMANDABLE.
a. BUDGET EXECUTION DOCUMENTS (BEDS)
b. SPECIAL ALLOTMENT RELEASE ORDER
c. STATEMENT OF APPROVED BUDGET, UTILIZATIONS,
DISBURSEMENTS AND BALANCES
d. AGING OF DUE AND DEMANDABLE OBLIGATIONS

ANSWER: A
QUESTION 7
IT DEFINES THE ANNUAL EXPENDITURE PROGRAM OF THE
NATIONAL GOVERNMENT AND ALL OF ITS INSTRUMENTALITIES.
THE EXPENDITURE PROGRAM INCLUDES ALL PROGRAMS AND
PROJECTS THAT ARE SUPPOSED TO BE FUNDED OUT OF
GOVERNMENT FUNDS FOR THE YEAR.
A. PDAF
B. DAP
C. GAA
D. JDF
QUESTION 7
IT DEFINES THE ANNUAL EXPENDITURE PROGRAM OF THE
NATIONAL GOVERNMENT AND ALL OF ITS INSTRUMENTALITIES.
THE EXPENDITURE PROGRAM INCLUDES ALL PROGRAMS AND
PROJECTS THAT ARE SUPPOSED TO BE FUNDED OUT OF
GOVERNMENT FUNDS FOR THE YEAR.
A. PDAF
B. DAP
C. GAA
D. JDF

ANSWER: C