Compute the Total Annual Income from Regular Sources realized from local sources during the next

preceding
realized in the next preceding fiscal year or TIRS, based fiscal year
on the trial balance as of December 31 of said year or
from the accomplished Local Budget Accountability
Forms
PS Budget - Refers to appropriations for the payment of
PS Limitation 1st to 3rd class pcm = (45%) (TIRS) salaries, wages, step increments, and other
PS Limitation 4th to eth class pcm = (55%) (TIRS) compensation of permanent, temporary, contractual,
PS Limitation Barangay — (55%) (TILS) and casual employees of the LGU (Section 306 [k] of RA
No. 7160).
Sectoral 325 Limitations

-The total appropriations, whether annual or

supplemental, for personal services of a local
government unit for one (1) fiscal year shall not exceed
forty-five percent (45%) in the case of first to third class
provinces, cities and municipalities, and fifty-five
percent (55%) in the case of the fourth class or lower, of
the total annual income from regular sources realized in
the next preceding fiscal year. The appropriations for
salaries, wages, representation and transportation
allowances of officials and employees of the public
utilities and economic enterprises owned, operated, and
maintained by the local government unit concerned
shall not be included in the annual budget or in the MOOE – Maintenance and Other Operating Expenses
computation of the maximum amount for personal
services. The appropriations for the personal services of Traveling Expenses
such economic enterprises shall be charged to their Training and Scholarship Expenses
respective budgets; Supplies and Materials Expenses
Utility Expenses
-The total annual appropriations for personal services of Communication Expenses
Awards/ Rewards and Prizes
a barangay for one (1) fiscal year shall not exceed fifty-
Survey, Research, Exploration and Development Expenses
five percent (55%) of the total annual income actually
Demolition/ Relocation and Desilting/ Dredging Expenses
Generation, Transmission and Distribution Expenses
Confidential Expenses -Regular Agency Fund
Intelligence Expenses -Foreign Assisted Fund
Extraordinary and Miscellaneous Expenses -Domestic Grant Fund
Professional Services -Foreign Grant Fund
General Services Repairs and Maintenance -Internally Generated Funds
Financial Assistance/ Subsidy -Business Related Funds
Taxes, Insurance Premiums and Other Fees -Trust Receipt
Labor and Wages
Other Maintenance and Operating Expenses COMPLETE SET OF GENERAL PURPOSE FS
Advertising Expenses
1. SFPosition
Printing and Publication Expenses OFFICES CHARGED WITH GOV. ACCT. 2. SFPerformance
Representation Expenses 3. Statement of Changes in Equity
Transportation and Delivery Expenses 1. COA 4. Statement of Cash Flows
Rent/ Lease Expenses 2. DBM 5. Statement of Comparison of Budget and
Membership Dues and Contributions to Organizations 3. BTr Actual Amounts
Subscription Expenses 4. Government Agencies 6. Notes to financial Position
Donations
Litigation/ Acquired Assets Expenses

Capital Outlay GAM for NGA’s:Objective – to update

 All equipment necessary for the implementation and
the management of the research (E.g. computers, 1. Standards, policies, guidelines and procedures
printers, bioref, biosafety cabinets) 2. Coding structure and accounts
3. Acct books, registries, records, forms reports,
 Include warranty for replacement, service and parts, and FS
delivery/shipping fees, duties and taxes in the budget
 Expected service life more than one year Basic Principles
-interst exp for unfinished infrastructure
1. IPSAS
 2. Accrual basis
FINANCIAL Expenses 3. Budget basis for presentation
-interest expenses - losses on foreign exchange 4. Revised Chart of Accounts
transaction 5. Double Entry Bookkeeping
-bank charges - interest exp of finished 6. FS based on acct and budgetary records
infrastructures 7. Fund Cluster Accounting
BUDGET PROCESS Budget Accountability 4. Check Disbursement Journals
-Budget Accountability Reports
Budget Preparation Budget Registries
-Budget Call 1. Monthly report of disbursement
-Budget Hearing 2. Quarterly Physical Report of operation 1. RROR
-Presentation to the office of the President 3. Statement of Appropriations, Alloments, Obligations, 2. RAPAL
*President’s Budget – President Budget Msg, NEP, BESF, Disbursement and Balnces 3. RAOD -
other docs 4. Statement of Appropriations, Alloments, Obligations, Object of Expenditure
Disbursement and Balnces by Object of Expenditures - PS, MOOE, FE, CO
Budget Legislation 5. List of Allotments and sub-alloments 4. RBUD
-House Deliberations 6. Statement of approved budget, utilizations
-Senate Deliberations disbursement and balances GOVRENMENT ACCOUNTING CYCLE
-Bicameral deliberations 7. Statement of approved budget, utilizations
-President’s enactment disbursement and balances by object of expenditures 1. Appropriation
8. Quarterly report of revenue and other receipts 2. Allotment
APPROVED BUGDET consist of 3. Incurrence of Obligation
4. Disbursement Authority
1. New general appropriation -Performance Reviews 5. Disbursement
2. Continuing appropriation -Audit 6. Billings, collections and remittance
3. Supplementary appropriation 7. Unadjusted Trial balance
4. Automated appropriation 8. Adjusting Entries
5. Unprogrammed funds 9. Closing entries
6. Retained Income 10. Preparation of FS
7. Revolving Funds
LOCAL GOVERNMENT UNIT BUDGET PROCESS
8. Trust receipts
1. Budget Preparation
2. Budget Authorization
Budget Execution 3. Budget Review
-Realease Guidelines and BEDs 4. Budget Execution
*Major receipeint of budget 5. Budget Accountability
NGAs, LGUs, GOCCs
JOURNALS
-Allotment – GAARD, SARO, GARO
-Incurrence of Obligations
1. General Journal
-Disbursement Authority – NCA, NTA, Non-cash Availment
2. Cash receipts Journal
Authority, Cash Disbursement Ceiling
3. Cash Disbursement Journals