BUDGET EXECUTION,

MONITORING AND
REPORTING OF GOVERNMENT
ACCOUNTING
Metalanguage
a. Allotment – is an authorization issued by the DBM to NGAs to incur obligations for specified amounts
contained in a legislative appropriation in the form of budget release documents. It is also referred to as
Obligational Authority.

b. Appropriation – is the authorization made by a legislative body to allocate funds for purposes specified
by the legislative or similar authority.
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c. Approved Budget – is the expenditure authority derived from appropriation laws, government ordinances, and
other decisions related to the anticipated revenue or receipts for the budgetary period. The approved budget
consists of the following:

UACS Code
New General Appropriations 01
Continuing Appropriations 02
Supplemental Appropriations 03
Automatic Appropriations 04
Unprogrammed Funds 05
Retained Income/Funds 06
Revolving Funds 07
Trust Receipts 08
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d. Automatic Appropriations – are the authorizations programmed annually or for some
other period prescribed by law, by virtue of outstanding legislation which does not require
periodic action by Congress.
e. Budget Information – the budgetary information consists of, among others, data on
appropriations or the approved budget, allotments, obligations, revenues and other
receipts and disbursements.
f. Continuing Appropriations – are the authorizations to support obligations for a specific
purpose or project, such as multi-year construction projects which require the incurrence
of obligations even beyond the budget year.
g. Disbursements – are the actual amounts spent or paid out of the budgeted amounts.
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h. Final Budget – is the original budget adjusted for all reserves, carry-over amounts,
transfers, allocations and other authorized legislative or similar authority changes
applicable to the budget period.
i. New General Appropriations – are annual authorizations for incurring obligations during a
specified budget year, as listed in the GAA.
j. Obligation – is an act of a duly authorized official which binds the government to the
immediate or eventual payment of a sum of money. Obligation maybe referred to as a
commitment that encompasses possible future liabilities based on current contractual
agreement.
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k. Original Budget – is the initial approved budget for the budget period usually the
General Appropriations Act (GAA). The original budget may include residual appropriated
amounts automatically carried over from prior years by law such as prior year
commitments or possible future liabilities based on a current contractual agreement.
l. Revenues – are increases in economic benefits or service potential during the
accounting period in the form of inflows or increases of assets or decreases of liabilities
that result in increases in net assets/equity, other than those relating to contributions from
owners.
m. Supplemental Appropriations – are additional appropriations authorized by law to
augment the original appropriations which proved to be insufficient for their intended
purpose due to economic, political or social conditions supported by a Certification of
Availability of Funds (CAF) from the BTr.
Essential Knowledge
BUDGET EXECUTION, MONITORING AND REPORTING

Sec. 1. Scope. This Chapter prescribes the guidelines in monitoring, accounting and
reporting of the budget in the financial statements. This also prescribes the records to be
maintained by the national government agencies, forms to be used and reports to be
prepared to effectively monitor the budget as well as the required information disclosure
and presentation of budget information in the financial statements in accordance with
PPSAS 24.
Essential Knowledge
BUDGET EXECUTION, MONITORING AND REPORTING

Sec. 1. Scope. This Chapter prescribes the guidelines in monitoring, accounting and
reporting of the budget in the financial statements. This also prescribes the records to be
maintained by the national government agencies, forms to be used and reports to be
prepared to effectively monitor the budget as well as the required information disclosure
and presentation of budget information in the financial statements in accordance with
PPSAS 24.