BUDGETING SYSTEM

HEARTHY F. HERNANDEZ
CALAMBA BAYSIDE INTEGRATED SCHOOL
LEGAL BASIS
DEPED
MEMORANDUM
No. 134, s. 2019

(ADOPTING THE CASH

BUDGETING SYSTEM
BEGINNING FISCAL YEAL
2019)

DEPARTMENT OF EDUCATION 2
RATIONALE
 Preparation Legislation Execution Accountability
BUDGET CYCLE
The four phases of the
budget cycle overlap in
continuing cycles Budget Call House
Release
Guidelines &
Performance
Targets &
every year. For Deliberation Program Outcomes

instance, the Executive Stakeholder

Budget
engagement
Execution
implements the Senate Documents
Budget
Accountability
Deliberation
budget for the current Technical Reports
Budget Hearings Allotment &
year and prepares the Cash Release
Programming
budget for the next Executive Bicameral
Quarterly
Performance
Review Deliberation
fiscal year or defends Allotment and
R2eview

Cash Releases
it in Congress. Consolidation,
Validation & Year-end Budget
Execution and Confirmation Ratification &
Enrolment
Performance
Assessment
Incurring
Accountability phases Presentation to
the President &
Obligations Review

are simultaneously Cabinet

President’s
implemented year- President’s Enactment &
Veto
Disbursements/
Payments
Audit
Budget
round.

DEPARTMENT OF EDUCATION 7
Financial Management Operations Manual 8
Financial Management Operations Manual 9
Budget Preparation Phase at the Schools Division
Office(SDO)
Schools Division Office - Budget Officer

Financial Management Operations Manual 10

 Budget Preparation Phase
Schools Division Office

 Budget preparation is the first phase of the

budget process. It covers the formulation of the
budget level, determination of budgetary
priorities and activities, and the translation of
these priorities and activities into budgetary
estimates.

Financial Management Operations Manual 11

 Budget Preparation Phase
DepEd RO/DO/IU Planning & Budgeting Process

A week following the issuance of the Budget Call by

DBM, DepEd Central Office issues the necessary
internal guidelines in the formulation of DepEd Budget
Proposal indicating thereof, among others, the
parameters, norms and standards to be used (i.e.
policy direction, budget ceiling, and others) as guide to
all Central (CO)/Regional (ROs)/ Schools Division
Offices (SDO), and Implementing Units (IUs).

 Simultaneously, the Planning Service informs the

Regional Planning Team to conduct their operational
planning and the situational analysis of SU/IU plans
and targets.
Financial Management Operations Manual 12
 Budget Preparation Phase
DepEd RO/DO/IU Planning & Budgeting Process

- Situational analysis

- Identification of strategies

- Review of programs, activities and projects (P/A/Ps)

- Estimation of resources

- Review of the plans submitted by the schools, and subsequent

consolidation and submission to the RO concerned

Financial Management Operations Manual 13

 Budget Preparation Phase
DepEd RO/DO/IU Budget Preparation Process

Central Office (CO) issues Regional Offices

internal budget preparation (ROs) send out Engagement of
guidelines to all Memorandum to stakeholders
CO/RO/SDO/IUs subordinate units

ROs review and Budget preparation

consolidate budget SDOs and SUs prepare activities being
proposals and their budget estimates conducted by the
submit to CO ROs

Final budget proposal should be encoded

and submitted thru the Online Submission
CO reviews and of Budget Proposal System (OSBPS) of the
consolidates CO and DBM. Hard copies of duly accomplished BP
Regional Proposals
and subsequently Forms shall be submitted to Budget
submit to DBM Division, CO.

Financial Management Operations Manual 14

 Budget Preparation Phase
Budget Preparation Forms for submission by the RO/DO/IU

BP 100 – Statement of Revenues (including sub-

tables)

BP 201 – Summary of Obligations and Proposed

Programs/Projects (including sub-tables)

BP 204 – Staffing Summary of Non-Permanent

Positions

BP 205 – List of Retirees

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Financial Management Operations Manual 16
 Budget Authorization/
Legislation Phase

 This is the second phase of the budget process. It

involves the review/deliberation by Congress of the
National Expenditure Program (NEP) as submitted by
the President, and its subsequent enactment into law.
In its review, Congress is guided by the provision of
law that it cannot increase the budget submitted to
them by the President. In implementing this provision
of law, specific activities may be increased but to be
offset by a corresponding decrease in other activities,
provided that the overall expenditure level is not
increased.

Financial Management Operations Manual 17

 Authorization/Legislation

House Senate
Deliberation Deliberation

Bicameral
Deliberation

President’s Enactment and Veto Ratification

Enrollment
and

Financial Management Operations Manual 18

 Budget Authorization/
Legislation Phase

Activity Responsible Unit/Officer

Receive budget submitted by the Senate President and Speaker
President of the House of Representatives

Review and evaluate budget Committee on Appropriations of

Draft appropriations bill
the House of Representatives
(HoR) & Finance Committee of
the Senate
Committee on Appropriations of
the HoR

Conduct budget hearings with -do-

agencies and DBM as resource
persons

Financial Management Operations Manual 19

 Budget Authorization/
Legislation Phase

Activities Responsible Unit/Officer

Floor deliberations and approval HoR

Submission to Senate -do-

Floor deliberations and approval Senate
Joint Committee (Bicameral HoR and Senate
Committee) deliberation and Representatives
approval
Submission to President for Joint (Bicameral) Committee
signature
Final Approval President

Financial Management Operations Manual 20

 Budget Authorization
Legislation Phase
What if the President does not agree to the Bill approved by both Houses of Congress?

The President can exercise his/her veto power, to wit:

• Renders the provision

Direct Veto inoperative, as if not written in
the GAA

Conditional • Specifies conditions in the

Implementation implementation of a provision

• Requires the issuance of

guidelines for the proper
implementation of a provision

General • Explains how a provision

Observation will be implemented during
the budget year
Financial Management Operations Manual 21
 Budget Authorization
Legislation Phase
What happens if the GAA is not passed?

On the basis of the

Constitutional provision, the
budget of the previous year shall
be deemed re-enacted.

Financial Management Operations Manual 22

Financial Management Operations Manual 23
 Budget Execution/
Implementation Phase
RO/DO/IU Budget Execution Process

 This is the third phase of the budget

process. Obligational and disbursement
authorities are being issued by DBM to
the departments and agencies in order
that implementation of the programs,
activities and projects authorized in the
GAA takes place. As basis for the release
of such authorities, DBM requires
agencies to submit Budget Execution
Documents (BEDs), through a
DBM issuance.
Financial Management Operations Manual 24
 Execution/Implementation

Release
And Program Budget Allotment
Guidelines Documents Release Programming
Execution and Cash

Allotment
Release

Disbursements Incurrence
/Payments of
Obligations
Financial Management Operations Manual 25
 Budget Execution
Implementation Phase
Budget Execution Documents (BEDs)

1. BED 1
2. BED 2
3. BED 3
4. BED 4

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 Budget Execution/
Implementation Phase
Purpose of Budget Execution Documents

• To ensure availability of funds for critical

programs/activities/projects, consistent with
the physical and financial plans/targets/
schedules as submitted.

• To set the benchmark in agency performance

that shall be used in determining the
achievement of objectives and targets in the
delivery of services

Financial Management Operations Manual 27

 Budget Execution/
Implementation Phase

 Deadline for the submission of BEDs to DBM – not later

than November 30
 DBM consultation, consolidation and evaluation –
December 1 to 15
 DBM finalization and agency confirmation - December 16
to 30
 Formulation/approval of DBCC Disbursement Program –
January 1 to 15
 Notification to agency of approved MDP and posting of the
same in the DBM and agency websites
 Submission of revised MDP – not later than May 31

Note: In case of incomplete/non-submission of MDP by November

30, the DBM shall formulate/determine the level and schedule
of agency cash program

Financial Management Operations Manual 28

 Budget Execution/
Implementation Phase
Obligational Authorities:

a) General Appropriations Act as Release

Document (GAARD);

b) General Allotment Release Order (GARO);

c) Special Allotment Release Order (SARO);

d) Sub-Allotment Release Order (Sub-ARO)

Financial Management Operations Manual 29

 Budget Execution/
Implementation Phase
Disbursement Authorities:

a) Notice of Cash Allocation (NCA) = for regular

operations;

b) Non-Cash Availment Authority (NCAA) = for

loans in kind;

c) Cash Disbursement Ceiling (CDC) = for foreign

post’s expenses.

Financial Management Operations Manual 30

 Budget Execution/
Implementation Phase
What is the first thing to do upon receipt of the Allotment?

RAPAL RAOD
PS PS

MOOE MOOE

CO CO

 Registry of Appropriations and Allotments (RAPAL)

 Registry of Allotments, Obligations and Disbursements

(RAOD)
Financial Management Operations Manual 31
Financial Management Operations Manual 32
 Budget Accountability/
Reporting Phase

Fourth and final phase of the budget

process. It involves the reporting of
physical accomplishments and funds
utilization of agencies. Agencies report
how much of the funds released to them
were utilized.

Financial Management Operations Manual 33

 Accountability/Reporting

Performance Budget Quarterly

and Outcomes
Target Reports
Accountabilit Performance
Agency Review
y

Year End
Performance
Budget Assessment
Review

Financial Management Operations Manual 34

 Budget Accountability/
Reporting Phase
Budget & Financial Accountability Reports with Timelines
 For Submission on a Quarterly Basis

1. SAAODB – FAR No. 1

2. SAAODBOE – FAR No. 1.A
3. List of Allotments/Sub-Allotments - FAR No. 1.B
4. SABUDB – FAR No. 2
5. SABUDBOE – FAR No. 2.A
6. QRROR – FAR No. 5 –Accounting Report

 On or before 30th day following the end of the year – ADDO – FAR No. 3 – Budget
Division & Accounting Division

 On or before 30th day of the following month covered – MRD – FAR No. 4 –
Accounting Division

 On or before February 14 of the following calendar year – Consolidated

Statement of Allotments, Obligations, and Balances per Summary of Appropriations
under FCR under GAA, GARO, and SARO

Financial Management Operations Manual 35

 Budget Accountability/
Reporting Phase
Flowchart on the Submission of Monthly Accountability Reports
DEPARTMENT OF EDUCATION

Secondary School Schools

Implementing Unit Division Office Regional Office Central Office

SDO to RO to consolidate
Prepares the consolidate reports of RO CO to consolidate
required reports of SDO Proper and SDOs reports of Central
accountability Proper and IUs in and submits and Regional Offices
reports and the Division and simultaneously to
2nd day 5th day of and submits to
submits to the submits to the the DepEd Central
of the the
Office and DBM
7th day oversight agencies
Schools Division following DepEd Regional following of the
month month RO following
Office concerned Office
month

7th day of 10th

the DBM-RO day of the DBM-CO
following following
month month

Financial Management Operations Manual 36

 Budget Accountability/
Reporting Phase
Prep. of the Statement of Comparison of Budget and Actual Amounts (SCBAA)

First Step

Budget Staff posts all data on budgeted and actual amount of

revenue, appro., allotments, obligations and disbursements/
utilizations in the appropriate columns of the SCBAA Form.

Second Step
Signature on the Certified Correct portion by the Head of the Budget
Division / Unit and forward the same (2 copies) to the Accounting Division

Third Step

Accounting Division, upon verification, shall furnished Budget Division with

a copy of the duly signed SCBAA.

Financial Management Operations Manual 37

THANK YOU