A Presentation on

The Budget Cycle

in the Barangay Government
 PREPARATIO
N

ACCOUNT- AUTHOR-
ABILITY THE IZATION
BUDGE
T
CYCLE

EXECUTION REVIEW
PREPARATIO
N
 PREPARATION

1. Formulation
and Approval of
the Barangay 2 3 4
Dev’t Annual
Investment Plan.

It is a Summary Listings of Barangay Programs and projects

It has to be prepared in coordination with the CPDO
It has to be prepared in compliance with the requirements set forth
under the Local Government Code of 1991 and SP Resolution

Budget Cycle
 Composition of the
Barangay Development Council
(LGC Sec. 107)

Punong Barangay

Members of the Representatives of A representatives

Sangguniang NGOs operating in of the
Barangay the Barangay congressman
PREPARATION
 PREPARATION

1. Formulation 2. Projection of
and Approval of Income and its
the Barangay certification by 3 4
Dev’t Annual the Brgy.
Investment Plan. Treasurer

Prepare Certified Statement of Income, indicating all the Source of

Income…such as IRA, Certification from the CTO that are sourced out
from the collection of Basic Real Property Tax and others.

Budget Cycle
Barangay Budget Preparation Form No. 1

CERTIFIED STATEMENT OF INCOME

 Account Past Year Current Year 2017 Budget Year

PARTICULARS
 No. 2016 Jan - June July - Dec. TOTAL 2018
(2)
(1) (3) (4) (5) (6) (7)
I LOCAL SOURCES        
  A. Tax Revenue      

 588 1. Share of Real Property Tax Collection 520,277.03    462,408.89 69,049.50 531,458.39 576,608.00
  2. Other Taxes      
583  Share on Community Tax  9,161.74  13,196.10 5,345.51  18,541.61 30,000.00

 613 Miscellaneous - Fees and Clearances   9,618.00   9,800.00   5,200.00 15,000.00 18,863.00
616 Miscellaneous - Garbage Fees    
  3. Other Specific Income      
664 Interest Income 21,216.62 8,753.75 6,246.25 15,000.00 30,000.00
678 Miscellaneous Income 10,202.00
  4. Other Income      
Solid Waste Management     358,000.00   358,000.00
8,578,812.00 
665 5. Share on Internal Revenue Collection 4,980,828.00 4,980,827.00  9,961,655.00 10,707,073.00
  C. Grants and Aids      

 656 1. City Aid  -  -   1,000.00 1,000.00

  TOTAL AVAILABLE RESOURCES 9,139,085.39 5,844,188.74   5,066,668.26 10,910,857.00 11,363,544.00
 PREPARATION

1. Formulation 2. Projection of 3. Preparation of

and Approval of Income and its the Annual
the Barangay certification by Budget by the 4
Dev’t Annual the Brgy. Barangay
Investment Plan. Treasurer Captain

According to the Budget Operations Manual for Barangays…PB shall prepare

the barangay budget for the coming Fiscal Year upon receipt of the detailed
Statement of Income and Expenditures from the Barangay Treasurer on or
before September 20 of each year.

PB shall prepare Brgy. Budget, taking into consideration the Priorities for Basic
Services
Budget Cycle
 GENERAL FUND ANNUAL BUDGET
Budget Year 2018
Barangay: City of Davao
District:
STATEMENT OF INCOME AND EXPENDITURES

  Past Year Current Year 2017 Budget Year

Account
  PARTICULARS Code 2016 Jan - June July - Dec. 2018
  (Actual) ( Actual) (Estimate) (Estimate)
I INCOME/RECEIPTS          
BEG. BALANCES (SK, BDF CONTG. &
  UNAPPROPRIATED SURPLUS     8,529,425.24      
  A. Tax Revenue        
  1. Share of Real Property Tax Collection 588 520,277.03    462,408.89 69,049.50 576,608.00
  2. Business Taxes and Licenses        
  2.1 Community Tax 583   9,161.74   13,196.10  5,345.51 30,000.00
  3. Other Taxes      
  3.1 Miscellaneous - Fees and Clearances 613   9,618.00   9,800.00   5,200.00 18,863.00
3.2 Miscellaneous - Garbage Fees 616     10,202.00  
  3.3 Miscellaneous - Local Government Shares      
on Internal Revenue Collection 665 8,578,812.00 4,980,828.00 4,980,827.00 10,707,073.00
3.4 Tax on Sand and Gravel 593
  B. Operating and Miscellaneous Revenue      
  1. Interest Income 664   21,216.62   8,753.75   6,246.25 30,000.00
  2. Miscellaneous Income 678    
  C. Grants and Aids      
  1. City Aid 656  - 1,000.00   1,000.00
  TOTAL AVAILABLE RESOURCES 17,668,510.63 5,844,188.74   5,066,668.26 11,363,544.00
 GENERAL FUND ANNUAL BUDGET
Budget Year 2018
Barangay: City of Davao
District:
STATEMENT OF INCOME AND EXPENDITURES
Past Year Current Year 2017 Budget Year

Account
PARTICULARS Code

2016 Jan - June July - Dec. 2018

II 11,363,544.00
(Actual) X 5%
( Actual) (Estimate) (Estimate)
A. STATUTORY OBLIGATIONS
           
  1. Disaster Risk Reduction and Management Fund 11,363,544.00
    X 10%    
(5% of Estimated Income from Regular Source BY
2018 568,177.20
     
2. Sangguniang Kabataan (SK) Fund – (10% of 10,707,073.00 X 20%
Estd. Income from Regular Source BY 2018) 1,136,354.40
       
2,141,414.60
  3. Development Fund – (20% of IRA)   9,139,085.39 X  55%=5,026,496.96
Sub-Total - Statutory Obligations         3,845,946.20
B. Personal Services:
- honoraria 5,002,800.00
C. MOOE: past year IRA x 1% = ÷ 2
  Auditing Services
Extraordinary Expenses
    520,277.03
   X 2% (RPT
  past year)
 GENERAL FUND ANNUAL BUDGET
Budget Year 2018
Barangay: City of Davao
District:
STATEMENT OF INCOME AND EXPENDITURES

Past Year Current Year 2017 Budget Year

PARTICULARS 2016 Jan - June July - Dec. 2018
(Actual) ( Actual) (Estimate) (Estimate)
II. OTHER MANDATORY REQUIREMENTS

1. Senior Citizen Project   1%

  of the  total appropriation
 
 
2. BCPC-Brgy. Council for the Protection of
1% of IRA of Budget Year
Children Project        
 
3. GAD – Gender and Development Project 5%
  of the total appropriation
 
4. PWD – Persons with Disability Project 1% of the total appropriation
 
   
   

 
 PREPARATION
4. The Brgy.
Captain
2. Projection of 3. Preparation of submits the
1. Formulation and Income and its the Annual budget for
Approval of the Budget by the
Barangay Dev’t Annual certification by authorization
Investment Plan. the Brgy. Barangay to the Council
Treasurer Captain on or Before
October 16

The Council will enact the Budget to make it operated through an

Appropriation Ordinance.

Budget Cycle
 Budgetary, Contractual & Statutory Requirements

1. Total appropriation should not exceed the total estimated Income

2. Full provision shall be made for all statutory and contractual obligations

3. Appropriation for Debt Servicing should not exceed 20% of the regular
income of the barangay

4. 5% of the estimated revenue from regular sources shall be set aside as

Disaster Risk Reduction and Management Fund ( the Calamity Fund)

Budreq
 Budgetary, Contractual & Statutory Requirements

5. 10% of the General Fund of the Barangay shall be set aside for the
Sangguniang Kabataan

6. The total annual appropriation for Personal Services for one fiscal year
shall not exceed 55% of the total annual income actually realized from local
sources during the next preceding fiscal year

7. The annual appropriations for discretionary purposes of the Punong

Barangay shall not exceed 2% of the actual receipts from basic real property
tax in the next preceding calendar year
8. An appropriation of not less than 20% of its annual internal revenue
allotment for development projects shall be provided and it shall be utilized
in accordance with the DILG-DBM Joint Circular No. 2011-1, dated April 13,
2011. Bud Req
PREPARATIO
N

AUTHORI-
ZATION
 AUTHORIZATION
1. The Barangay Council shall deliberate the budget and enact an Appropriation
Ordinance (AO).

2. This will authorize the Barangay Captain and other Barangay Officials to
carry out the delivery of basic services and to implement the
programs/projects/activities as provided in the approved budget

3. The AO provides funds to support the PPA

4. Enactment shall be done October 20 to 31

Budget Cycle
PREPARATIO
N

AUTHORI-
ZATION

REVIEW
 REVIEW
The appropriations ordinance authorizing the
budget is submitted for review within 10 days
after its enactment to the Sangguniang
Panlungsod through the City Budget Officer;

The SP shall review the barangay ordinance to

ensure compliance thereof with all the
budgetary requirements and limitations
provided in the code and other existing laws.
Budget Cycle
 PREPARATIO
N

AUTHOR-
IZATION

EXECUTION REVIEW
 EXECUTION
The budget shall take effect upon its approval or on the date fixed in
the AO; the Annual Budget shall take effect on January 1.

The Barangay Captain is primarily responsible for the execution of the

Barangay Budget and;

- sees to it that revenues are realized

- ensures that the funds released and disbursed are in accordance with the
approved budget

- monitors and ensures that the planned PPAs are implemented and
delivered

- ensures that all financial transactions shall follow accounting and auditing
rules and regulations.
Budget Cycle
 PREPARATIO
N

ACCOUNT- AUTHOR-
ABILITY THE IZATION
BUDGE
T
CYCLE

EXECUTION REVIEW
 ACCOUNTABILITY
The responsibility on accountability of the budget is
vested primarily in the Barangay Captain

- financial and physical performance are monitored, recorded,

validated and evaluated to include collections, expenditures,
and delivery of goods and services and infra projects

- assess whether performance is in accordance with the

targets or budget plans

- Corrective actions should be immediately done for any

negative deviation during this phase.
Budget Cycle
“Individual commitment
to a group effort”
That’s what makes
a team work,
a company work,
a society work,
and a civilization work.
-Vince Lombardi
THANK YOU !!!

The City Budget Office