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Vol5 LGU Budget And Expenditure Management Tools

Jan 27, 2017

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Page 1: Vol5 LGU Budget And Expenditure Management Tools
Page 2: Vol5 LGU Budget And Expenditure Management Tools

TABLE OF CONTENTS

CHAPTER 1. APPROACHES AND TOOLS IN BUDGET PREPARATION 5-39

Budget ForumAnalyzing LGU Income Trend and CompositionAnalyzing LGU Expenditure Trend and CompositionFormulating Multi-Year Revenue Estimates

A. Regular IncomeB. Internal Revenue Allotment (IRA)C. Non-Recurring Income

Setting Expenditure CeilingsApproaches for Costing Regular ActivitiesDefining Performance Indicators Using the OPIF (with Table)

A. Clarify the link between PPAs, MFOs and department/office outcomesB. Specify outcome/s of each LGU department/office C. Specify the outputs of each LGU department/officeD. Formulate performance indicatorsE. Agree on the performance target for each performance indicator

Guide Questions for Evaluating Targets for the Budget YearGuidelines on Preparing the Local Expenditure Program (with 10 Forms)Guidelines on Preparing the Budget MessageGuidelines on Preparing the BESF (with 6 Forms)

Summary List of Forms for the Budget Preparation Phase

Budget of Expenditures and Sources of Financing (BESF)1. Summary of Financial Statement on Actual Receipts and Expenditures2. Estimated Expenditure by PPA and by Sector3. Actual and Estimated Expenditure Program by Sector/Office4. Staffing Summary5. Summary Statement of Statutory and Contractual Obligations and Budgetary

Requirements6. Summary Statement of Long-term Obligations and Indebtedness

Local Budget Preparation (LBP) Forms

• LBP Form No. 1 - Certified Statement of Receipts

• LBP Form No. 2 - Certified Statement of Receipts and Expenditures

• LBP Form No. 3 - Programmed Appropriation and Obligation by Object of

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Expenditure

• LBP Form No. 4 - Personnel Schedule

• LBP Form No. 5 - Functional Statements, Objectives and Expected Results

• LBP Form No. 6 - Statement of Debt Service

• LBP Form No. 7 - Statement of Statutory/Contractual Obligations and Budgetary Requirements

• LBP Form No. 8 - Statement of Fund Operation

Supplemental Budget Preparation Forms• Supplemental Budget Preparation Form No. 1 - Certified Statement of Funding Sources• Supplemental Budget Preparation Form No. 2 - Statement of Supplemental Appropriation

CHAPTER 2. APPROACHES AND TOOLS IN BUDGET AUTHORIZATION 40-47

Guide Questions for DeliberationsChecklist of Compliance with Budgetary RequirementsChecklist of Compliance with General LimitationsBudget Summary Table (with 2 Tables)Budget Review Matrix for Budgetary Requirements (with Table)Budget Review Matrix for Budgetary Limitations (with Table) Local Budget Authorization Form (LBAF) No.1A and No.1B (Forms)

Summary List of Forms for the Budget Authorization Phase

Local Budget Authorization (LBA) Forms

• LBA Form No. 1A - Checklist on Documentary and Signature Requirements for the Executive Budget (for Annual Budget)

• LBA Form No. 1B - Checklist on Documentary and Signature Requirements for the Executive Budget (for Supplemental Budget)

CHAPTER 3. APPROACHES AND TOOLS IN CONDUCTING BUDGET REVIEW 48-51

Checklists on Documentary and Signature Requirements (2 Forms)Table Recapitulating the Findings and Possible Action (Form)

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Summary List of Forms for the Budget Review Phase

Local Budget Review (LBR) Forms

• LBR Form No. 1A - Checklist on Documentary and Signature Requirements for the Annual Budget

• LBR Form No. 1B - Checklist on Documentary and Signature Requirements for the Supplemental Budget

• LBR Form No. 2 - Table Recapitulating the Findings and Possible Action

CHAPTER 4. APPROACHES AND TOOLS IN BUDGET EXECUTION 52-65

Cash Flow Forecasting (CFF)Statement of Cash Flow Forecast (SCFF) (with Table)Cash Flow Analysis (with Table)Summary Financial and Physical Performance Targets (SFPPT) (Form)Detailed Financial and Physical Performance Targets (DFPPT) (Form)Interpreting Cash Flow ForecastsLocal Budget Matrix (LBM) (Form)Allotment Release Order (ARO) (Form)

Summary List of Tables and Forms for the Budget Execution Phase

Statement of Cash Flow Forecast

Cash Flow Analysis

Local Budget Execution Forms

• LBE Form No. 1 – Local Budget Matrix

• LBE Form No. 2 – Allotment Release Order

• LBE Form No. 3 – Summary of Financial and Physical Performance Targets

• LBE Form No.3A – Detailed Financial and Physical Performance Targets

CHAPTER 5. TOOLS AND APROACHES IN BUDGET ACCOUNTABILITY 66-80

Organizational Performance Indicator Framework (OPIF)Best Practice in Local Budget AccountabilityTools Used for Conducting Performance Evaluation

A. Weights (with unlabeled Table)B. Scoring System. (with unlabeled Table)

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C. Total Overall Weighted Score (TOWS) (with unlabeled Table) D. Performance Review Report (PRR)

Accounting for the Local BudgetA. Local Budget Accountability (LBAc) Forms (4 Forms)B. Local Budget Performance Evaluation (LBPE) Forms (3 Forms)

Summary List of Forms for the Budget Accountability Phase

Local Budget Accountability Forms1. LBAc Form No. 1 – Quarterly Report of Income2. LBAc Form No. 2 – Quarterly Financial Report of Operations3. LBAc Form No. 3 – Quarterly Physical Report of Operations4. LBAc Form No. 4 – Statement of Receipts and Expenditures

Local Budget Performance Evaluation Forms1. LBPE Form No. 1 – Physical Performance Evaluation Form 2. LBPE Form No. 2 – Financial Performance Evaluation Form(with sample presentation)LBPE Form No. 3 – Income Performance Evaluation Form with sample presentation)

List of Tables

1 Illustrative Outcome, Output and Performance Indicator Statements 2 Proposed Budget Summary – Part I (General Fund)

3 Proposed Budget Summary – Part II (General Fund)4 Budget Review Matrix for Budgetary Requirements5 Budget Review Matrix for Budgetary Limitations6 Statement of Cash Flow Forecast7 Cash Flow Analysis

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CHAPTER 1. APPROACHES AND TOOLS IN BUDGET PREPARATION

Budget Forum. A one-day forum on the budget call shall be initiated by the LCE through the local budget officer for all LGU Department Heads to explain or clarify the following: (a) specific objectives for the budget year, major thrusts and policy directions; (b) sources of income for the past three (3) years; (c) major assumptions used in estimating the income for the budget year; and (d) spending ceilings and budget strategies.

Analyzing LGU Income Trend and Composition1. This tool analyzes the pattern of LGU income and helps in determining realistic revenue estimates. The following indicators are generated: (a) percentage share in total LGU income of each of its components - to show how much the LGU relies on any given revenue source; and (b) annual increase in LGU income and its components, as well as the compounded and geometric average annual growth in the last five years – to show which of the various components of LGU revenues are increasing faster than others during the period under study, thereby making the LGU more dependent on these as revenue sources. One could also relate changes in the revenue policies of the LGU with the movement in these growth rates.

Analyzing LGU Expenditure Trend and Composition. This analysis provides LGUs with a better appreciation of past trends in local government spending priorities and allows them to relate LGU spending levels with various outcome indicators. The following indicators are generated: (a) percentage share of the different components of LGU expenditure which shows the relative priority accorded by the LGU to the various sectors during the period in review; (b) yearly increase and average annual growth rate in the last five years of total LGU expenditures and its components, which, together with the movement in the budget shares show how resources have been shifted from/to different sectors/offices during the period and enables one to validate the consistency of these movements with the policies found in the local development plans and investment programs; (c) per capita expenditure by sector2 which indicates whether LGU spending has been able to keep up with the growth in population (using a population estimate derived from the geometric average growth rate formula); and (d) real per capita expenditure by sector using the GNP implicit price index as divisor of each expenditure item to show whether LGU spending has been able to keep up with inflation as well.

Formulating Multi-Year Revenue Estimates. In formulating revenue estimates, the use of simple extrapolation is prescribed because of the lack of data on the local tax base and the absence of sufficient time series data in many LGUs. Estimates for each of these major revenue categories are summed up for each year to arrive at the total resource envelope for the

1 This tool contains more computational details than a similar tool, Financial Capacity Analysis, described in Appendix 2.5, which presents

various approaches in determining an LGU's investment capacity.

2 Computed by dividing each spending component with a population estimate derived using the geometric average growth rate formula, e.g.

Estimated Population in 2001=Population in 2000*(1+Popngr/100), where Popngr is the geometric average growth rate between 1995 and

2000 population. Appendix 1.2 shows the geometric average growth rate formula.

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budget year and the two outer years3:

A. Regular Income. The estimated revenue component in the current year is simply grown by the average annual growth rate of the particular revenue component to arrive at the estimated revenue component for the budget year. Specifically, this can be expressed as: revenue component estimate for budget year = revenue component estimate for current year * [1+average annual growth rate of revenue component/100]. The expression in brackets is raised to the second and third powers when deriving revenue estimates for the next budget year and the budget year after that, respectively. The growth rate applied for each of these years may be the same or different depending on assessment of the LGU's specific situation. Moreover, if new revenue measures will be introduced in the budget year, the estimated revenue yield from such measures should be added to the estimate of the relevant revenue component.

B. Internal Revenue Allotment (IRA). The IRA for any given year is based on BIR collections three years back. For brevity, an illustrative example will be presented: Current year is 2005 with an estimated annual IRA level. In preparing the annual budget for the budget year 2006 and forecasts for two outer years, 2007 and 2008, the IRA for 2006 may be estimated by applying the actual growth rate of BIR revenues (actgrBIR) between 2002 and 2003 to the estimated IRA level for 2005: IRA2006 = estimated IRA2005 * [1+ actgrBIR2003/2002]. Similarly, the IRA for 2007 may be estimated by applying the actual growth rate of BIR revenues between 2003 and 2004 to the forecast value of the IRA for 2006: IRA2007 = forecasted IRA2006 * [1 + actgrBIR2004/3]. On the other hand, the IRA for 2008 may be estimated by applying the estimated growth rate of BIR revenues between 2004 and 2005. Projected BIR revenues for 2005 (which in this case is the current year and thus without complete annual data yet) may be obtained from the 2005 Budget of Expenditures and Sources of Financing (BESF) of the national government. Thus, IRA2008 = IRA2007 * [1 + estgrBIR2005/4].

C. Non-Recurring Income. Forward estimates of non-recurring income for the budget year and two outer years requires knowledge of the LGU's specific situation, e.g., plans to sell property or capital assets during the period under consideration. On the other hand, forecasts of revenues from the province’s share in national wealth, economic zones, tobacco excise tax, EVAT, etc. are largely dependent on national government program for the years under consideration.

Setting Expenditure Ceilings. Setting sectoral/departmental expenditure ceilings for the budget year requires (a) determining the net amount of resources available for appropriation; (b) estimating the amount of resources needed to meet budgetary requirements; (c) preparing the estimate of the cost of regular programs and ongoing projects of each department/office to arrive at the 'baseline' ceiling; (d) adding the resource requirements from the two preceding steps; and (e) estimating the amount of available resources by subtracting the total resource

3 Formulas presented here may be skipped if using the worksheets accompanying PLPEM Volume 4 which have built-in formulas and

automatically computes forecast figures.

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requirement from the net amount of resource available.

The determination of the sectoral/departmental expenditure ceilings for the two outer years of the multi-year expenditure program (similar to the concept of the Multi-year Expenditure Framework or MTEF used in the national government) essentially follows the same steps as those for the budget year. It should be emphasized that estimation of the cost of on-going programs of the various departments should include the forward cost of programs introduced during the budget year (i.e., the recurrent cost implied by investment projects and/or policy changes programmed for the budget year). This ensures the predictability of future funding for any new policy that is introduced in the present. The multi-year program does not cost the implementation of new policies except those that are introduced during the budget year. Thus, the ceilings for the outer years do not include the cost of future policies that are already being considered but which are not yet put into effect in the budget year. [PLPEM, pp.25-62]

Approaches for Costing Regular Activities. There are two approaches in costing regular activities of the office/department: (a) Per capita cost is simply the total cost of doing an activity (direct labor and direct materials + overhead or administrative expenses) divided by the total number of beneficiaries or clientele served. For budgeting purposes, the per capita cost becomes the benchmark in computing the cost of providing services whenever the number of clientele served is changed; and (b) Fixed and Variable Costs are disaggregated from the current operating expenditures. Their total should match the budgetary ceiling given a target output. Distinguishing the fixed and variable costs enables the decision-maker to choose among alternatives that works within the budgetary ceiling: increasing the target outputs, maintaining the status quo, or increasing the target outputs but reducing (variable) costs to optimize available resources. [RBOM pp.105-109]

Defining Performance Indicators Using the OPIF. The Organizational Performance Indicator Framework describes the hierarchical link between what each LGU department/office does and the goods and services it delivers (outputs) and their desired impact on the community (outcomes). This framework helps foster a performance-oriented budget process as it helps LGUs focus on what is important, i.e., the delivery of outputs that are relevant to its goals. The tools and techniques provided below for the application of the OPIF are aimed at helping LGU officials define more clearly the performance indicators that will be used to assess how well their departments/offices have delivered their Major Final Outputs (MFOs).

A. Clarify the link between PPAs, MFOs and department/office outcomes. To help the department/office heads and the PFC link outputs with desired outcomes, it is useful to complete the following statement: “We should produce this output because such and such will happen (desired outcome/s) which will contribute to the LGU’s goals and objectives in the following way.” And/or answer the following questions: “What effect, impact, result or consequence (outcome) does this output have on target clients or the community? How does this outcome relate to the LGU’s goals and objectives?”. In turn, the guide questions found in

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Appendix 2.1 may help in screening PPAs and MFOs.

B. Specify outcome/s of each LGU department/office4. Outcomes are conditions of well-being that the LGU intends to achieve. Outcome statements are important because they define the impacts expected from the goods/services the LGU produces or delivers (i.e., its outputs).

C. Specify the outputs of each LGU department/office. Outputs are the goods and services that any given department/office delivers to external clients for the achievement of desired outcomes. The specification of outputs provides critical information for performance measurement in terms of identifying, costing, and producing outputs in the most efficient and effective manner.

D. Formulate performance indicators. Performance-oriented budgeting requires that outcomes and outputs should be measurable. Performance indicators are the measures that are used to judge success in achieving the outcomes or in delivering the outputs. Output indicators focus on various aspects of efficiency: quantity, quality, timeliness, access and cost. In contrast, outcome indicators focus on the overall state of the outcome and the effectiveness of government’s contribution to the result.

The Budget Operations Manual specifically asks the province to define performance indicators for each of their PPAs (outputs). In coming up with outcome indicators, it is helpful to ask the following questions: How relevant are the goods/services provided by government to the achievement of the stated outcomes? How well do these outputs contribute to the achievement of the said outcome? Is government doing the right things? Is the output mix right? In assessing efficiency through output indicators, the following questions serve as guide: Is government doing things right? Is it combining resources in a manner that minimizes total input cost to produce a given unit of output (or in a manner that maximizes the quantity of output produced in relation to a given total cost of inputs)? Is the input mix right?

E. Agree on the performance target for each performance indicator. It is necessary to determine and agree on the performance targets for each output measure during the budget preparation phase as these will become the benchmarks against which actual performance will be compared. Performance targets may be based on past performance of the province, a benchmark derived from performance of other provinces, and/or standards set by the central government.

Guide Questions for Evaluating Targets for the Budget Year. (1) What are the mandated regular activities of the department? Activities that do not contribute to the mandate of the office shall be subjected to further review for possible discontinuance or to challenge the rationale for their continued implementation; and (2) What is the total service area of the

4 Diagnostic questions to help specify outcomes and outputs are enumerated in PLPEM Volume 4, pp. 50-51.

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office/department? This could be a people-based service area comprised of service beneficiaries who are the main targets of poverty reduction efforts, or an asset-based area comprised of natural physical assets that make up the LGU's growth promoting economic base. Total service area less clientele served refers to the service gap. This reflects the unserved area which could be reduced or served via a substantive increase in the budget. [technical notes, p99]

Guidelines on Preparing the Local Expenditure Program. The LEP shall be the material document for deliberation by the Local Sanggunian. It shall serve as part of the “appropriations bill” once submitted to the Sanggunian for authorization or legislation.

The LEP consists of five parts: (1) For income estimates, the sources of income are generated in Local Budget Preparation (LBP) Forms No. 1 and No. 2. Any proposed measure to increase the LGU income shall be subject to the deliberation and approval of the local Sanggunian. (2) Each department shall have the following presentation in its expenditure program: (a) Functional statement, objectives and expected results presented by program/project/activity using LBP Form No.5. The program structure shall reflect the expected results or output indicators for each activity/project since it is the key result area and responsibility center; (b) Proposed new appropriations language for the budget year presented by program/projects/activities and corresponding budget requirements broken down by expense class using LBP Form No.5. The number of personnel and their respective salaries shall be disclosed to determine the overall salaries and wages of an office/department using LBP Form No. 4; and (c) Special Provisions which pertain to policies on the use of funds, specific purpose/s or results expected and measures to reduce cost. (3) The Special Purpose Appropriations (SPA) shall be provided as mandated by the Local Government Code. Presentation shall follow a similar sequence as the Office/Department expenditure program except for the staffing and compensation profile. A special provision shall also be included to provide guidelines in the use of the fund pursuant to existing accounting, budgeting and auditing rules and regulations. For easy monitoring and evaluation of fund utilization, the Local Finance Committee shall formulate the guidelines on the release and use of special purpose appropriations under the needing clearance column of the local budget matrix5. (4) The General Provisions includes guidelines on receipts, income and expenditure policies of the local government that shall be supported by rules and policies coming from oversight agencies like the Commission on Audit, Civil Service Commission, Department of Budget and Management, and the Department of the Interior and Local Government. (5) The last part is a Summary of the Fiscal Year New Appropriations by Office/Department and Special Purpose Appropriations which reflect the total proposed budget for the year.

Guidelines on Preparing the Budget Message. (a) Present the objectives, policies, strategies, and priority programs/projects activities of the LGU for the budget year and relate their consistency with the proposed revenue and expenditure structure; (b) Identify the “flagship

5 Local Budget Execution Form No. 1 in Appendix 4.4 .

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projects” by sector and by program and relate how they are envisioned to carry out the development goals for the next three years; (c ) Review, with the aid of simple graphs and charts, the past five years revenue and expenditure patterns and disclose what basic services and facilities were provided; (d) Discuss the current year’s income and expenditure performance and disclose any improvements in the production of results as compared with those during the past five years; (e) Any gap or inability of the LGU to provide basic services delivery imply the urgency to fill in service gaps as a major justification for proposals to expand the budget for a sector/office. Reflect on the policy decisions and the goods and services designed to close the service gaps.

Guidelines on Preparing the BESF. Preparing the BESF requires the provision or disclosure of the following information: (a) three-year comparative data of the receipts and expenditure program by sector, office/department, and expense class; (b) extent of compliance of the LGU with the budgetary requirements under the Local Government Code; (c) the LGU’s compliance with its statutory and contractual obligations; (d) sources of financing the expenditure program for the three-year period; (e) capacity of the LGU to service its long-term obligations and indebtedness.

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Table 1. Illustrative Outcome, Output and Performance Indicator Statements

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SUMMARY LIST 4.1. FORMS FOR THE BUDGET PREPARATION PHASE

Budget of Expenditures and Sources of Financing (BESF)1. Summary of Financial Statement on Actual Receipts and Expenditures 2. Estimated Expenditure by PPA and by Sector 3. Actual and Estimated Expenditure Program by Sector/Office 4. Staffing Summary 5. Summary Statement of Statutory and Contractual Obligations an Budgetary

Requirements6. Summary Statement of Long-term Obligations and Indebtedness

Local Budget Preparation (LBP) Forms

• LBP Form No. 1 - Certified Statement of Receipts

• LBP Form No. 2 - Certified Statement of Receipts and Expenditures

• LBP Form No. 3 - Programmed Appropriation and Obligation by Object of Expenditure

• LBP Form No. 4 - Personnel Schedule

• LBP Form No. 5 - Functional Statements, Objectives and Expected Results

• LBP Form No. 6 - Statem ent of Debt Service

• LBP Form No. 7 - Statement of Statutory/Contractual Obligations and Budgetary Requirements

• LBP Form No. 8 - Statement of Fund Operation

Supplemental Budget Preparation Forms• Supplemental Budget Preparation Form No. 1 - Certified Statement of Funding Sources• Supplemental Budget Preparation Form No. 2 - Statement of Supplemental Appropriation

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BUDGET OF EXPENDITURES AND SOURCES OF FINANCING

BESF 1

Summary Financial Statement on Receipts and Expenditures(In 000 Pesos)

ParticularsAccount

Code(NGAS)*

Past

Year(Actual)

Current Year Budget

Year(Estimate)

Total(Actual) (Estimate) Total

(1) (2) (3) (4) (5) (6) (7) (8)

1.0 Beginning Cash Balance

2.0 Receipts

2.1 Tax Revenue

Internal Revenue Allotment

(IRA)

Real Property Tax (RPT)

Local Taxes

Total Tax Revenue

2.2 Non-Tax Revenue

Operating and Miscellaneous

Revenue

Capital Revenue

Grants and Aids

Loan Proceeds (Borrowings)

Extraordinary Receipts

Inter-Fund Transfer

Other Receipts

Total Non-Tax Revenue

3.0 TOTAL RECEIPTS

4.0 TOTAL AVAILABLE

RESOURCES (1.0 + 3.0)

5.0 Less Continuing Appropriations

6.0 Net Available Resources for

Appropriation (4.0 – 5.0)

7.0 Expenditures

7.1 Current Operating

Expenditures

A. Personal Services

B. Maintenance and Other

Operating Expenditures

7.2 Capital Outlay

7.3 Financial Expense

8.9 TOTAL EXPENDITURE

9.0 UNAPPROPRIATED BALANCE

* Please refer to COA Circular 2008-001 dated 29 January 2008

Instructions

BESF 1 summarizes actual and estimated receipts coming from all sources (tax and non-tax revenue) and actual and estimated expenditures by allotment class (PS, MOOE, CO, and Financial Expense). This three-year data reflect how the past, current, and budget year expenditures are financed. It also discloses balances in receipts, if there are any that were not appropriated during the year. Data on this form shall be taken from Local Budget Preparation Form No. 1

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BESF 2

Estimated Expenditure by PPA and by Sector

(In 000 Pesos)

Programs /Projects/ActivitiesOffice/

Department

Budget Year

(Estimate)

(1) (2) (3)

1. General Public Services Sector

Program

Activity 1

Activity 2

Project 1

Project 2

Sub-Total

2. Economic Services Sector

Program 1

Activity 1

Activity 2

Project 1

Project 2

Program 2

Sub-Total

3. Social Services Sector

Program 1

Activity 1

Activity 2

Project 1

Project 2

Activity 1

Sub-Total

T O T A L

Instructions

BESF 2 shall reflect the proposed expenditures by program, project, activity within a sector and by office/department. The classification of PPAs that should fall within a sector shall follow these guidelines:

1. General Public Services Sector- All PPAs that provide planning, financial, administrative, legal and legislative services to the front-line services of the LGU shall be categorized within this sector.2. Economic Services Sector- All PPAs directed towards promoting growth in the economy, using all factors in production, like increasing productivity in agriculture and all other industries, generating employment and other livelihood projects, shall fall within this sector.3. Social Services Sector- All PPAs that promote the well-being and general welfare of constituents or people like education, health, public safety, and protection of the marginalized and disadvantaged members of society, shall be classified within this sector.

It is possible that a PPA may not be categorized under either social or economic services sector. In cases like this, it is safest to classify it under the general public services sector.

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BESF 3

Actual and Estimated Expenditure Program by Sector/Office

2007-2009(In 000 Pesos)

Sector/Office Past Year Current Year Budget Year

(1) (2) (3) (4)

Economic Services

______________

______________

______________

Social Services

______________

______________

______________

General Public Services

______________

______________

______________

TOTAL

Instructions

BESF 3 classifies expenditure by sector and the implementing offices within the sector using BESF 2 as a guide. Data here show comparative figures in magnitudes for the past year (Actual), current year (Actual and Estimated), and for the budget year (Estimated). It is possible that an office or department may appear in two or more sectors, like the engineering office where it provides infrastructure services to all sectors. It is all right for as long as the total amount shall not exceed the appropriations for the whole office.

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BESF 4

STAFFING SUMMARY

Particulars

Past Year

(Actual)

Current Year

(Actual)

Budget Year

(Proposed)

No.Salaries &

WagesNo.

Salaries &

WagesNo.

Salaries &

Wages

(1) (2) (3) (4) (5) (6) (7)

A. Permanent Positions (Filled)

1. Key Positions with RATA

2. Other Technical Positions

3. Administrative Positions

Total: Filled Permanent Positions

Add: Unfilled Authorized Positions

TOTAL: Permanent Positions

B. Non-Permanent Positions (Filled)

1. Contractual

2. Casual/Emergency

Total: Filled Non-Permanent Position

Add: Unfilled Non-Permanent Positions

TOTAL: Non-Permanent Positions

Total Permanent/Non-Permanent

Positions

Instructions

BESF 4 provides information on the staffing complement of the LGU. It segregates permanent positions into key, technical, administrative positions. These data are important in evaluating whether the LGU is under or over staffed as reflected in the number of non-permanent positions. The comparative data for three (3) years will show the number and salaries and wages of authorized and proposed positions for the current and budget years, respectively.

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BESF 5

Summary Statement of Statutory and Contractual Obligations

and Budgetary Requirements(In 000 Pesos)

Particulars Basis of ComputationComputed

Amount(1) (2) (3)

1. Statutory and Contractual Obligations

1.1 20% of IRA for Development Fund

1.2 5% Regular Income (MMDA Contribution

for LGUs in NCR only (R.A. No. 7924)

1.3 Prior Years’ Obligation (if any)

1.4 Terminal Benefits and Retirement Gratuities

(compulsory retirement age)

• IRA for the budget

Year X 20%

• Regular income only

X 5%

• Appropriation

Ordinance

• Service Record

2. Budgetary Requirements

2.1 20% Debt Service

2.2 5% Calamity Fund

2.3 Financial Assistance to Barangays (P1,000

minimum aid)

2.3.1 45%/55% PS Cap

1st to 3rd Class LGU

4th to 6th Class LGUs

2.3.3 2% Discretionary Fund

• Regular income for

BY X 20%

• Regular income for

BY X 5%

• No. of barangays in a

particular LGU X P1000

• Total income from

regular sources of next

preceding year X 45% or

55%

• RPT of next

preceding fiscal year X

2%

T O T A L

Instructions

BESF 5 shall disclose relevant data on the computation of mandatory obligations of the LGU. Any deficiencies reflected in BESF 5 shall be corrected at once to show compliance with R. A. No. 7160. A separate schedule to show actual computation may be done by the LGU to advocate the principle of transparency.

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BESF 6

SUMMARY STATEMENT OF LONG-TERM OBLIGATIONS

AND INDEBTEDNESS(In 000 Pesos)

CreditorDate

ContractedTerm Amount

Previous Payment Amount Due BY Balance

Interest

Principal

Total

Interest

Principal

Total

Interest

Principal

Total

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

T O T A L

Instructions

BESF 6 shows the capacity of the LGU to service its debt, reflecting thereat the amount to be paid as provided in R.A. No. 7160. The period covered includes previous payments for the past and current years to show how much more is to be paid for the budget year and the next coming years which are within the debt service cap.

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LOCAL BUDGET PREPARATION FORMSLBP Form No. 1

CERTIFIED STATEMENT OF RECEIPTS__________________________

Municipality / City / Province

General Fund

PARTICULARSAccount

Code (NGAS)*

Income Classification

A M O U N T

Past Year(Actual)

Current Year(Estimated)

Budget Year

(Proposed)(1) (2) (3) (4) (5) (6)

1. Beginning Balance

2. Receipts

2.1 Tax Revenue

2.2 Operating and Miscellaneous Revenue

2.3 Capital Revenue

2.4 Grants and Aids

2.5 Extraordinary Receipts

2.6 Loan Proceeds (Borrowings)

TOTAL RECEIPTS

TOTAL AVAILABLE RESOURCES

3. Less Continuing Appropriations

4. Net Available for Appropriation

We hereby certify to the reasonable probability of collection of the estimated receipts for the Budget Year based on the present economic conditions and existing tax ordinances.

__________________ __________________ ____________________ _______________

Local Budget Officer Local Treasurer Local Planning and Local Accountant

Development Officer

Approved by:

___________________

Local Chief Executive

* Please refer to COA Circular 2008-001 dated 29 January 2008

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21

CERTIFIED STATEMENT OF RECEIPTS(Continuation)

INSTRUCTIONS:

This form is intended to reflect the following:

Column 1 – Indicate income by major categories of sources. Balances beginning shall include the Cumulative Results of Operations (CRO) – Unappropriated and the breakdown of continuing appropriations.

Column 2 – Indicate account code in each itemized receipts using the National Government Accounting System (NGAS).

Column 3 – Indicate under income classification the letter “R” if the receipts is classified as regular and “NR” if the receipts is classified as non-regular.

Column 4 – Indicate actual past year’s estimated receipts.

Column 5 – Indicate current year’s estimated receipts.

Column 6 – Indicate budget year’s estimated receipts.

The Budget Year’s estimate of receipts shall be the income from reasonably probable collections during the ensuing calendar year to which the annual budget pertains as the Local Finance Committee may determine.

A separate LBP Form No. 1 shall be prepared for each economic enterprise and public utility.

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LBP Form No. 2

CERTIFIED STATEMENT OF RECIEPTS AND EXPENDITURES __________________________

Municipality / City / ProvinceGeneral Fund

PARTICULARSAccount

Code(NGAS)*

Past Year

(Actual)

CURRENT YEAR

TOTALFirst

Semester(Actual)

SecondSemester(Estimate)

(1) (2) (3) (4) (5) (6)

1.0 Beginning Balance

2.0 Receipts

2.1 Tax Revenue

2.2 Operating and Miscellaneous Revenue

2.3 Capital Revenue

2.4 Grants and Aids

2.5 Extraordinary Receipts

2.6 Loan Proceeds (Borrowings)

TOTAL RECEIPTS

TOTAL AVAILABLE RESOURCES

3.0 Less Continuing Appropriations

4.0 Net Available for Appropriation

5.0 Expenditures

5.1 Current Operating ExpendituresA. Personal ServicesB. Maintenance and Other Operating Expenditures

5.2 Capital Outlay

5.3 Financial Expense

Total Expenditure

6.0 Unappropriated Balance

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Certified Correct: Approved by:

________________ ________________ _____________ _________________ Local Accountant Local Budget Officer Local Treasurer Local Chief Executive

* Please refer to COA Circular 2008-001 dated 29 January 2008

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CERTIFIED STATEMENT OF RECEIPTS AND EXPENDITURES(Continuation)

INSTRUCTIONS:

This form is intended to reflect the following:

Column 1 – Indicate receipts and expenditures by major categories. Beginning balances shall include the Cumulative Results of Operations (CRO) – Unappropriated and breakdown of continuing appropriations.

Column 2 – Indicate account code in each itemized receipts using the National Government Accounting System (NGAS).

Column 3 – Indicate actual past year’s receipts and expenditure.

Column 4, 5 and 6 – Indicate current year’s estimated receipts and expenditure, actual for the first semester, estimate for the second semester, and the total of both.

A separate LBP Form No. 2 shall be prepared for each local enterprise and public utility.

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LBP Form No. 3

PROGRAMMED APPROPRIATION AND OBLIGATION BY OBJECT OF EXPENDITURE

OFFICE :

PROJECT/ACTIVITY :FUND/SPECIAL ACCOUNT :

Object of ExpenditureAccount

Code(NGAS)*

PastYear

(Actual)

CurrentYear

(Estimated)

BudgetYear

(Proposed)(1) (2) (3) (4) (5)

1.0 Current Operating Expenditures

1.1 Personal Services

1.2 Maintenance and Other Operating Expenditures

2.0 Capital Outlay

3.0 Financial Expense (interest payments)

Total Appropriations

Prepared by : Reviewed by : Approved by : _________________ ____________________ ____________________ Department Head Local Budget Officer Local Chief Executive

* Please refer to COA Circular 2008-001 dated 29 January 2008

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25

PROGRAMMED APPROPRIATION AND OBLIGATION BY OBJECT OF EXPENDITURE (Continuation)

INSTRUCTIONS:

This form is intended to reflect the following:

Column 1 – State the applicable “Objects of Expenditures” such as the following:

A. Current Operating Expenditures

1. Personal Services

2. Maintenance and Other Operating Expenditures

B. Capital Outlays

Under Financial Expense indicate whether it is bank charges, interest expense, commitment charge, documentary stamp expense and other financial charges, losses incurred relative to foreign exchange transactions and debt service subsidy to GOCCs consistent with NGAs.

Column 2 – Indicate account code using the National Government Accounting System (NGAS).

Column 3 – Indicate the actual amounts incurred in the Past Year per column (3) of LBP Form No. 2.

Column 4 – Indicate the amounts for the current year per Column (5) of LBP Form No. 2.

Column 5 – Indicate the estimated amounts to be appropriated.

A separate LBP Form No. 3 shall be prepared for each economic enterprise and public utilities.

The review by the Provincial/ City/Municipal Budget Officer shall take into consideration the budgetary ceilings prescribed by the Local Finance Committee.

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LBP Form No. 4

PERSONNEL SCHEDULEBudget Year : ______________Municipality / City : __________Province : _________________

OFFICE :

PROGRAM :PROJECT / ACTIVITY :

Ordinance

/Item Number

Position TitleName of

Incumbent

Current YearAuthorized

Rate/Annum

Budget YearProposed

Rate/Annum Increase/ Decrease

Grade/ Step

AmountGrade/Step

Amount

(1) (2) (3) (4) (5) (6) (7) (8)

Prepared by : Reviewed by: Approved by :

_______________________________ __________________ _________________Human Resource Management Officer Local Budget Officer Local Chief Executive

INSTRUCTIONS:

This form is intended to reflect the following:

In appropriate columns, indicate:

Column 1 - The appropriation ordinance number and item number.

Column 2 and 3 - The position title and the name of the incumbent occupying each position. If the position is unfilled, indicate the word “vacant”. If the position is proposed for abolition, bracket the

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old item number, position title, and the authorized salary for the current year. If the position is proposed for reclassification, bracket the previous position title and indicate the proposed position title below it.

Column 4 and 5 - For the authorized salary for the current year. Indicate the circular implemented and the salary grade/step and rate per annum of each position. For initial implementation/changes in approved PAL, attach copy thereof.

Column 6 and 7 - For the proposed salary for the budget year. Indicate the salary grade/step and rate per annum of each position.

Column 8 - The proposed salary increase/decrease is the difference between the old and new rates of compensation per annum for the budget year.

A separate LBP Form No. 4 shall be prepared for each economic enterprise and public utilities.

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LBP Form No. 5

INSTRUCTIONS:

Summarize briefly the function of the Office/Department in outline or capsulized statement. The mandate of the office should be dearly described.

Specify the objectives of the office for the budget year.

Column 1 - Indicate the AIP Reference Code for the specific P/P/A to be implemented for the budget year.

28

FUNCTIONAL STATEMENTS, OBJECTIVES and EXPECTED RESULTSOffice / Department:____________________

Budget Year_________________

I. FUNCTIONAL STATEMENTS

_____________________________________________________________________

_____________________________________________________________________

II. OBJECTIVES

_____________________________________________________________________

III. PROGRAMS/ PROJECTS/ACTIVITIES

ReferenceCode

Program/Project /ActivityDescription

Cost(In 000 Pesos)

PerformanceIndicator

Annual Targets

ImplementationSchedule

FROM TO(1) (2) (3) (4) (5) (6) (7)

Prepared by: Reviewed by: Approved by:

__________________ ___________________ _____________________

Department Head Local Budget Officer Local Chief Executive Reviewed as to consistency with approved Annual Investment Program.

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Column 2 - Describe briefly the project/activity to be implemented.

Column 3 - Indicate the proposed funding for the project/activity.

Column 4 - Specify the expected result of the project/activity in terms of performance or output indicator, e.g., percent education or malnutrition number of children provided pre-education, kilometers of road cemented, etc.

Column 5 - Specify the quantity, quality and timeliness of project/activity in terms of targets for the budget year.

Column 6 and 7 - Indicate the expected start and completion of the project/activity.

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LBP Form No. 6

STATEMENT OF DEBT SERVICE Budget Year : _______________Municipality / City : ___________ Province : __________________

FUND / SPECIAL ACCOUNT:

CreditorDate

ContractedTerm Amount

Previous PaymentMade

Amount Due (Budget Year) Balance

(5) (6)

(1) (2) (3) (4)Principal Interest Total Principal Interest Total

(7)

T O T A L

Certified Correct : Noted by:

________________ ___________________ Local Accountant Local Chief Executive

INSTRUCTIONS:

This form is intended to reflect the following:

Column 1 - Full name of creditors with their corresponding addresses under each fund/special account and under each office.

Column 2 - Date of contracting/incurring the obligation

Column 3 - Term of payment

Column 4 - Total indebtedness (the gross obligations interest due each creditor)

Column 5 - Payments made prior to Budget Year, including payments made and to be made in current year. Indicate also the total payments made both of the principal and interest in the appropriate column.

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Column 6 - Amounts due and budgeted for the budget year. Indicate in the appropriate column the principal obligation and interest.

Column 7 - Any balance due after December 31 of the current year

A separate LBP Form No. 6 shall be prepared for economic enterprises and public utilities.

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LBP Form No. 7

STATEMENT OF STATUTORY/CONTRACTUAL OBLIGATIONS AND BUDGETARY REQUIREMENTS

Budget Year : _______________Municipality / City : ___________Province : __________________

1. Statutory and Contractual Obligations

20% Development FundPrior Years’ Obligation5% MMDA Contribution for LGUs in NCR only (R.A. No. 7924)Others

A m o u n t

2. Budgetary Requirements

20% Debt Service5% Calamity FundP1,000 Financial Assistance to Barangays45%/55% PS Cap2% Discretionary Funds

A m o u n t

T O T A L

Certified Correct: Approved:

Local Finance Committee:

_________________ _____________ _______________ __________________Local Budget Officer Local Treasurer Local Planning and Local Chief Executive Development Officer

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INSTRUCTIONS:

This form is intended to reflect the following:

Indicate statutory and contractual obligations.

Budgetary requirements shall include provision for each devolved basic service/facility pursuant to Section 17 of RA 7160.

A separate LBP Form No. 7 shall be prepared for economic enterprises and public utilities.

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LBP Form No. 8

STATEMENT OF FUND OPERATIONBudget Year : ________________Municipality / City : ____________Province : ___________________

FUND/SPECIAL ACCOUNT:

PARTICULARSGeneral Public

Services

SocialServices

EconomicServices

TOTAL

(1) (2) (3) (4) (5)

1.0 Beginning Balance

2.0 Receipts

2.1 Tax Revenue

2.2 Operating and Miscellaneous Revenue

2.3 Capital Revenue

2.4 Grants and Aids

2.5 Extraordinary Receipts

2.6 Loan Proceeds (Borrowings)

Total Receipts

Total Available ResourcesLess Continuing AppropriationsNet Available Resources for Appropriations

3.0 Expenditures

3.1 Current Operating ExpendituresA. Personal ServicesB. Maintenance and Other Operating

Expenditure

3.2 Capital Outlay

3.3 Financial Expense

Total Appropriations

Balance

Prepared by: Approved by:__________________ ______________________ Local Budget Officer Local Chief Executive

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35

STATEMENT OF FUND OPERATION(Continuation)

INSTRUCTIONS:

The Statement of Fund Operation is a summary of the total estimates of revenues and other receipts and appropriations covering the proposed expenditures of the budget year.

Under the income portion, fill in Column 5 (Total) based on the Certified Statement of Receipts (LBP Form No. 1).

Under the expenditures portion, indicate all expenditures by sectors/services and the total. Use Appendix 1 as guide for major categories of expenditures by sector/services.

Deduct from the total resources the total expenditures to arrive at the balances.

A separate LBP Form No. 8 shall be prepared for each economic enterprise and public utility.

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SUPPLEMENTAL BUDGET PREPARATION FORMS

Supplemental Budget Preparation Form No. 1

* Please refer to COA Circular 2008-001 dated 29 January 2008

36

CERTIFIED STATEMENT OF FUNDING SOURCESFiscal Year _________

___________________________Province/City/Municipality

___________________________Fund/Special Account

ParticularsAccount

Classification(NGAS)*

Amount

(1) (2) (3)

1.0 New Revenue Sources

Tax Revenue

Loan Proceeds (Borrowings)

2.0 Savings

3.0 Realignment/Reversion

Total Estimated Income

I hereby certify to the reasonable probability of collection in the current year of the above stated estimated receipts from new revenue measures enacted by the Sanggunian.

________________ ___________________ Date Local Treasurer

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INSTRUCTIONS

1. The column under new revenue source shall be filled for Supplemental Budget funded from new revenue source.2. The column under savings shall be filled for Supplemental Budget funded from savings.3. The column under Realignment/Reversion shall be filled for Supplemental Budget funded from reversion or realignment.4. Indicate under column 2 the account classification using the NGAS.5. Indicate under column 3 the appropriate amount for whatever funding source of the Supplemental Budget.6. The certification to be signed by the Local Treasurer shall depend on funding source (i.e. New Revenue Source, Savings, Realignment/Reversion) of the Supplemental Budget to be enacted.

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Supplemental Budget Preparation Form No. 2

* Please refer to COA Circular 2008-001 dated 29 January 2008

38

_________________________Province/City/Municipality

SB-200__

STATEMENT OF SUPPLEMENTAL APPROPRIATION

Implementing Office

Particulars/ PurposeObject of

ExpendituresAccount

CodeAmount

(1) (2) (3) (4) (5)

TOTAL APPROPRIATION

P______

Prepared by: Approved by:

______________________ ______________________ Local Budget Officer Local Chief Executive

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INSTRUCTIONS

1. Indicate under Column 1 the implementing office of the item of appropriation.2. Indicate under Column 2 the particulars/purpose of the appropriation and in Column 3 the object of expenditures.3. Indicate under Column 4 the appropriate account code using the NGAS.4. Indicate under column 5 the amount per purpose and object of expenditures being implemented by the office concerned.

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CHAPTER 2. APPROACHES AND TOOLS IN BUDGET AUTHORIZATION

Guide Questions for Deliberations. These guide questions should help the LFC prepare for budget hearing as the Sanggunian may use during deliberations: [UBOM pp. 119-120],

Is the budget consistent with the AIP? Does the budget adequately provide funds for the delivery of basic services and maintenance of facilities enumerated under Section 17 of R.A. No. 7160? Are the requirements of component LGUs considered and equitably allocated for in the budget? Is the proposed expenditure program within the recommended ceiling for economic, social, and general services? Does the budget provide for a proper balance among these various services? Were differences between essential and less essential services taken into consideration? Are the existing/proposed organizational structure and staffing pattern in accordance with the basic requirements and considerations as prescribed under R.A. No. 7160? Are the minimum standards and guidelines of the Civil Service Commission met? Does the existing/proposed complementary structure or staffing have the capability to implement the plans and programs and to deliver basic public services? Are there some expenditures that need to be reduced to ensure reasonable economy in local government operations? Will some projects or activities need to be “fast-tracked,” and procedures to be simplified to maximize utilization of resources? What is the estimated revenues and other receipts to be collected? Are the new tax and other revenue measures proposed to finance the budget covered by subsisting tax ordinances? Is the proposed borrowing or other credit financing scheme within the capability of the LGU to pay?

Checklist of Compliance with Budgetary Requirements. The Local Government Code provides for the following budgetary requirements: [PLPEM Vol 4,pp.66-67]

The proposed total appropriation shall not exceed the estimates of income (Section 324). Full provision shall be made for all statutory and contractual obligations, provided that the amount to be appropriated for debt service shall not exceed 20% of the regular income of the LGU (Section 324). Provinces, cities and municipalities shall provide aid to component barangays not less than P1,000 per barangay (Section 324). Five percent of the estimated income from regular sources shall be set aside as

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an annual lump sum appropriation for unforeseen expenditures arising from the occurrence of calamities (Section 324). No less than 20% of the IRA must be appropriated for development projects (Section 287). The proceeds from the share of the LGU in the utilization and development of national wealth shall be appropriated for local development and livelihood projects, provided that at least 80% of those coming from the utilization of hydrothermal, geothermal and other sources of energy must be applied to lower the cost of electricity in the LGU concerned (Section 294).

Checklist of Compliance with General Limitations. The Local Government Code also provides the following general limitations on the budget: [PLPEM,pp.67-68]

The total appropriations, whether annual or supplemental, for personal services of an LGU for one fiscal year must not exceed 45% in the case of first- to third-class provinces, cities and municipalities and 55% in the case of fourth- to sixth-class provinces, cities and municipalities, provided that appropriations for salaries, wages, and representation and transportation allowances of officials and employees of LGU public utilities and economic enterprises shall not be included in the annual budget or in the computation of the maximum amount for personal services (Section 325). No official or employee shall be entitled to a salary rate higher than the maximum fixed for his or her position (Section 325). No local fund shall be appropriated to increase or adjust salaries or wages of officials and employees of the national government except as expressly authorized by law (Section 325). Positions in the official plantilla for career positions which are occupied by incumbents holding permanent positions shall be covered by adequate appropriations (Section 325). The annual appropriations for discretionary purposes of the LCE shall not exceed 2% of the actual receipts derived from the basic real property tax in the next preceding calendar year (Section 325).

Budget Summary Table. A spreadsheet model that puts together the key elements of the proposed executive budget to facilitate the verification of compliance with the budgetary requirements enumerated above. The first part of this spreadsheet presents the estimates of income and the total amount of resources available for appropriation. The second part presents the allocation of the proposed budget to the different sectors/departments/projects.

Budget Review Matrix for Budgetary Requirements. A spreadsheet model that automatically indicates whether the budget has complied or not complied with the above-cited budgetary requirements, upon inputting of values from the Budget Summary Table.

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Budget Review Matrix for Budgetary Limitations. A spreadsheet model that automatically indicates whether the budget has complied or not complied with the above-cited budget limitations, upon encoding of values of key decision variables pertinent to the checklist.

Local Budget Authorization Form (LBAF) No.1A and No.1B. Forms that serve as checklists of documentary and signature requirements for the Executive Budget.

Table 2. Proposed Budget Summary – Part I (General Fund)

[Worksheet 6 of PLPEM4]

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Table 3. Proposed Budget Summary – Part II (General Fund)

[Worksheet 6 Part II of PLPEM4]

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Table 4. Budget Review Matrix for Budgetary Requirements

[Worksheet 7 of PLPEM4, p67]

Table 5. Budget Review Matrix for Budgetary Limitations

[Worksheet 8 of PLPEM4, p68]

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SUMMARY LIST 4.2. FORMS FOR THE BUDGET AUTHORIZATION PHASE

Local Budget Authorization (LBA) Forms

• LBA Form No. 1A - Checklist on Documentary and Signature Requirements for the Executive Budget (for Annual Budget)

• LBA Form No. 1B - Checklist on Documentary and Signature Requirements for the Executive Budget (for Supplemental Budget)

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LOCAL BUDGET AUTHORIZATION FORMS

LBA Form No. 1A

CHECKLIST ON DOCUMENTARY AND SIGNATURE

REQUIREMENTS FOR THE EXECUTIVE BUDGET

for Annual Budget

Document Signatory

Budget Message Local Chief Executive

Local Expenditure Program Local Chief Executive

BESF Local Finance Committee

Local Chief Executive

AIP

(Approved by the Sanggunian through a Resolution)

Secretary to the Sanggunian

Presiding Officer

Personnel Schedule HRMO

Local Chief Executive

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LBA Form No. 1B

CHECKLIST ON DOCUMENTARY AND SIGNATURE

REQUIREMENTS FOR THE SUPPLEMENTAL BUDGET

for Supplemental Budget

Document Signatory

Funds Actually Available:

• Certified Statement of Additional

Realized Income

• Certification of Savings

Local Treasurer

Local Treasurer

New Revenue Measure/s:

• Certified Statement of Income from New

Revenue Measure/s

• Copy of duly enacted ordinance which

imposes new local taxes, charges, fees, fines or penalties or which raises existing local taxes, charges, fees, fines or penalties

• Copy of official communication stating

that the LGU is a recipient of new or higher remittances, contributions, subsidies or grants in aid from the National Government or from government corporations and private entities

Local Treasurer

Realignment of Appropriations in Times of Public Calamity:

• Certificate of Source of Funds Available

for AppropriationsLocal Treasurer

Local Accountant

LCE

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CHAPTER 3. APPROACHES AND TOOLS IN CONDUCTING A BUDGET REVIEW

Checklists on Documentary and Signature Requirements. Local Budget Review (LBR) Form Nos. 1A and 1B serve as validation checklists of requirements when the Appropriation Ordinance and supporting documents are submitted by the LGU for review.

Table Recapitulating the Findings and Possible Action. After reviewing the contents of the Appropriation Ordinance and the accompanying budget documents, the DBM-RO or Sangguniang Panlalawigan will prepare the LBR Form No. 2 which, as its name indicates, summarizes the various findings of the reviewing authority and indicates the possible action that may be taken.

SUMMARY LIST 4.3. FORMS FOR THE BUDGET REVIEW PHASE

Local Budget Review (LBR) Forms

• LBR Form No. 1A - Checklist on Documentary and Signature Requirements for the Annual Budget

• LBR Form No. 1B - Checklist on Documentary and Signature Requirements for the Supplemental Budget

• LBR Form No. 2 - Table Recapitulating the Findings and Possible Action

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LOCAL BUDGET REVIEW FORMS

LBR Form No. 1A

CHECKLIST ON DOCUMENTARY AND SIGNATUREREQUIREMENTS FOR THE ANNUAL BUDGET

_____________ _____________

Date Received Deadline

_________________________________________ _____

Local Government Unit Class

_________________________________ _______________________

Title General Fund

Check each item Signatory Remarks

a. Transmittal Letter Secretary to the Sanggunian

b. Budget Message Local Chief Executive

c. Appropriation Ordinance

Secretary to the Sanggunian

Presiding Officer

LCE

d. Budget of Expenditures and

Sources of Financing.

Local Finance Committee

LCE

e. Annual Investment Program Secretary to the Sanggunian

Presiding Officer

f. Personnel Schedule

HRMO

Local Chief Executive

g. Veto message, if any LCE

h. Sanggunian’s action on veto, if any Secretary to the Sanggunian

Presiding Officer

______________________

Reviewing Analyst

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LBR Form No. 1B

CHECKLIST ON DOCUMENTARY AND SIGNATUREREQUIREMENTS FOR THE SUPPLEMENTAL BUDGET

_____________ _____________

Date Received Deadline

_________________________________________ ______

Local Government Unit Class

_________________________________ _______________________

Title General Fund

Check each item Signatory Remarks

a. Transmittal Letter Secretary to the Sanggunian

b. Budget Message Local Chief Executive

c. Appropriation Ordinance

Secretary to the Sanggunian

Presiding Officer

LCE

d. Funds Actually Available:

Certified Statement of Additional Realized Income

Certification of Savings

Local Treasurer

e . New Revenue Measures:

Certified Statement of Income from New Revenue

Measures;

Copy of duly enacted Tax Ordinance which

imposes new local taxes, charges, fees, fines or

penalties or which raises existing local taxes, charges,

fees, fines or penalties; and

Copy of official communication stating that the

LGU is a recipient of new or higher remittances,

contributions, subsidies or grants in aid from the

National Government or from government

corporations and private entities

Local Treasurer

f. Realignment of Appropriations in Times of Public

Calamity

Certified Statement of Additional Realized Income

Local Treasurer

Local Accountant

LCE

g. Veto message, if any LCE

h. Sanggunian’s action on veto, if any Secretary to the Sanggunian

Presiding Officer

______________________

Reviewing Analyst

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LBR Form No. 2

TABLE RECAPITULATING THE FINDINGS AND POSSIBLE REVIEW ACTIONS

FINDINGS POSSIBLE REVIEW ACTIONS

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CHAPTER 4. APPROACHES AND TOOLS IN BUDGET EXECUTION

Cash Flow Forecasting (CFF). CFF necessitates the conduct of the following: (a) estimates of receipts from taxes (local and external sources) based on schedules of payments and historical trends on payment of taxes imposed by the LGU; (b) estimates of other revenues considering the seasonality of operations and past performances of the particular sources of incomes; (c) a determination and a listing of all regular/recurring expenses or those that are payable periodically; (d) a listing and assessment of all accounts payable and outstanding obligations to determine when they may be paid legally; (e) estimates and schedule of project costs which will be paid and disbursed during the year; (f) estimates of payments for debt servicing taking into account maturity dates and adjustments for refinancing, if any; and (g) consideration of other current costs of operations especially non-recurring/unforeseen expenses. [PLPEM4 pp. 72-73] The corresponding matrix used is the Statement of Cash Flow Forecast described below.

Cash flow forecasting enables LGUs to derive adjusted annual income estimates given actual data on year-to-date collections of each major receipt item. A comparison of the adjusted annual income estimate with the original annual income estimate indicates whether a shortfall or surplus of collections is likely for the entire year. Following are the steps in coming up with cash flow forecasts6:

(i) Compute for the following indicators:

share or contribution of collections in each month to total receipts for each year under study (in this case, five years) using the formula: share of collections for the period = collections for the period / total revenue for the year.

year-to-date share of collections for a particular month to total collections for the year, which can be generated by summing up the computed share of collections for each month (up to that month in particular), e.g., adding up the share of collections for January, February and March to get the share of the January - March collections to total collections for the year.

arithmetical average of the share of collections for a particular month in the last five years, generated by getting the sum of the computed share of collections for that particular month for each year under study and dividing this by 5 (given five years).

arithmetical average of the year-to-date share of collections for a particular month in the last five years, generated by getting the sum of the computed year-to-date share of collections for that particular month for each year under

6 These indicators are automatically computed when using the spreadsheet model accompanying Volume 4 of the PLPEM.

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study and dividing this by five.

(ii) Forecast the following at the start of the budget year, given annual income estimates:

monthly cash receipt and monthly year-to-date cash receipt. These are generated by simply multiplying the given annual income estimate for the budget year by the average share (or year-to-date share) of collections for a particular month (as computed above).

(iii) Compute for adjusted annual income estimate given actual data on year-to-date collections as the year progresses. Specifically, if actual monthly collections data are available up to month k, the adjusted annual estimate of collections may be derived by dividing the actual year-to-date collections for month k by the average year-to-date share of collections for month k.

Statement of Cash Flow Forecast (SCFF). The SCFF is a schedule of anticipated receipts and disbursements of the LGU for the fiscal year with a quarterly breakdown showing the beginning and ending cash balances for each quarter. This enables the treasurer, accountant and LCE to plan for effective cash management and utilization. The forecast is prepared at the beginning of the year. [RBOM, p.180]

Cash Flow Analysis. This is a cash flow monitoring tool complementary to the Statement of Cash Flow Forecast (see description above) and useful in determining the short-term viability of the LGU, particularly its ability to pay its obligations. CFA's primary purpose is to give up-to-date and relevant information on the LGU’s overall cash position, liquidity and solvency. The CFA serves as a guide in the analysis of the variances between actual collections and disbursements against estimates indicated in the SCFF, thus capturing the feasibility of attaining collection and disbursement targets. [RBOM, p.180-181]

Summary Financial and Physical Performance Targets (SFPPT). The SFPPT reflects the budget allocation for the budget year and the targeted performance indicators under each major final output and PPA. These targets are based on historical data of actual output of regular activities considering their average growth and the peculiar requirements of certain PPAs. The targets are prepared for the entire calendar year for each department to serve as basis in comparing actual level of accomplishment for the preceding year and knowing the available resources for the budget year. The Local Budget Execution (LBE) Form 3 is used for this purpose.

Detailed Financial and Physical Performance Targets (DFPPT). Department/Office Heads in the Executive and Legislative branch shall support the SFPPT with a DFPPT. This form presents the quarterly breakdown of the Financial Allocation that would be needed to accomplish a specific level of target for each PPA for a particular quarter. This form also contains key variables that serve as inputs for preparing a schedule of expenditures for the

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SCFF. This is reflected in LBE Form 3A.

Interpreting Cash Flow Forecasts. The computed variance (or difference) of the cash flow forecast from the outturns (or actual levels) both for the monthly/quarterly forecasts and the year-to-date forecasts for each major income item indicate areas for corrective actions to ensure that planned targets are achieved within the year and within available resources:

If actual collections for any one item exceed monthly forecasts consistently from month to month, the annual income estimate for that item may have been under-estimated. Prospectively, the methodology for arriving at the annual income estimate should be re-evaluated. If year-to-date actual collections in the aggregate exceed year-to-date forecasts in the aggregate well into the budget year, then the LFC has basis for reviewing and, perhaps, releasing all or part of the reserve towards the fourth quarter. If actual collections for any one item fall short of monthly forecasts consistently from month to month, the LFC should revisit the revenue strategies of the province and work to improve its collection efficiency. If actual disbursements for project expenses fall short of monthly forecasts, the PFC should evaluate the situation. Is it because of realized savings relative to original cost estimates? If so, then the LFC should duly note availability of cash for other uses. Is it due to delays in implementation? If so, the LFC should identify cause of delay and remedy the same. If actual year-to-date disbursements exceed year-to-date forecasts in the aggregate, the LFC should consider the imposition of further reserves.

Local Budget Matrix (LBM). The LBM or Local Budget Execution (LBE) Form No.1 is the yearly overall financial plan of the LGU equivalent to its approved appropriations disaggregated into components or categories. Through the LBM, a comprehensive authority is issued to each department/office to incur obligations not exceeding a certain amount for a specified period usually for regular/current operating expenditures.

Allotment Release Order (ARO). The ARO is specific authority to incur obligations not exceeding a given amount for the specific purpose indicated. Budgetary items under the reserve, needing clearance, and for later release columns shall be released with the use of the ARO or LBE Form No.2.

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SUMMARY LIST 4.4. TABLES AND FORMS FOR THE BUDGET EXECUTION PHASE

Statement of Cash Flow Forecast7

Cash Flow Analysis8

Local Budget Execution Forms LBE Form No. 1 – Local Budget Matrix LBE Form No. 2 – Allotment Release Order LBE Form No. 3 – Summary of Financial and Physical Performance Targets LBE Form No.3A – Detailed Financial and Physical Performance Targets

7 While the RBOM described the Statement of Cash Flow Forecasting as a necessary tool in budget execution, only PLPEM Volume 4 presented a table format using a monthly, instead of a quarterly, breakdown.

8 Also available only in PLPEM Volume 4 .

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Table 6. Statement of Cash Flow Forecast

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Table 7. Cash Flow Analysis

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LOCAL BUDGET EXECUTION FORMS

LBE Form No. 1

LOCAL BUDGET MATRIXFY_________

Annual Budget Supplemental BudgetLOCAL GOVERNMENT UNIT: ________________FUND: ___________

PROGRAM/ PROJECT/ ACTIVITY(DEPARTMENT/OFFICE)

AUTHORIZED APPROPRIATION

RESERVE

NOT NEEDING CLEARANCE NEEDING CLEARANCE

PS

M

OO

E

CO TOTAL PS

M

OO

E

CO

TOTAL

FOR

LATER RELEASE

THIS RELEASE

PS

M

OO

E

CO TOTAL

(1) (2) (3) (4) (5)

a.

b.

c.

d.

TOTAL

Recommending:

___________________ ___________________Local Budget Officer Local Chief Executive

INSTRUCTIONS:

The LOCAL BUDGET MATRIX shall be accomplished as follows:

Local Government Unit Name of the Province/City/Municipality implementing the budget.Source of Appropriation Indicate the appropriation source, i.e.either annual or supplemental budget.Fund Fund codes under the NGAs for Local Government Units

100 General Fund200 Special Education Fund300 Trust Fund

Col. 1 Program/Project/Activity Pertains to the functional grouping of appropriations and the services rendered by the implementing units of the LGU to wit:Executive Services Accounting and Internal Audit ServicesLegislative Services Budget and Management Services

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Delivery of Social Services Planning, Monitoring & Evaluation ServicesFinancial Services Delivery of Health ServicesLegal Services Delivery of Veterinary ServicesAssessment Services Delivery of Engineering ServicesDelivery of Social Services Delivery of Agricultural Services

Col. 2 Authorized Appropriation This column pertains to the appropriations in the approved budget, or from the supplemental budget.

Col. 3 Reserve This column shall reflect the amount set aside to provide contingencies and emergencies which may later arise in the execution of the budget.

Col. 4 Not Needing Clearance This column shall include all other budgetary requirements that do not fall under the NC column. This shall be separated into: “This Release” and “For Later Release”

Col. 5 Needing Clearance This column pertains to the portion of the department’s budget which can only be released upon clearance and/or compliance with documentary requirements.

The last page of the LBM shall be machine-validated with an amount that shall tally with the amount of the initial release.

The LBM shall be signed by the Local Budget Officer and Local Chief Executive.

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LBE Form No. 2

ALLOTMENT RELEASE ORDERFor Fiscal Year_________

Local Government Unit Fund Code Appropriation Source

Annual Budget

Supplemental BudgetDepartment/Office

Purpose

ParticularsObject Class/ Account Code

Amount Authorized

Amount in Words

Notes

The allotments herein authorized shall be used solely for the purposes indicated and disbursements therefrom shall be made in accordance with existing budgeting, accounting and auditing rules and regulations. It is the primary responsibility of the head of the Department/ Office or Unit concerned to keep expenditures within the limits of the amount allotted.

__________________ _______________________________ Date of Issue Local Chief Executive

Page ___ of ___ page(s) ARO No. ________________

INSTRUCTIONS:

The Allotment Release Order (ARO) shall be accomplished by the Local Budget Officers as follows:

CaptionFor the Fiscal Year This pertains to the current budget yearLocal Government Unit Name of the province/city/municipality concerned.Department /Office Name of the requesting department/office of the LGU.Fund/Code Fund/code under the NGAs for Local Government Units

100 General Fund200 Special Education Fund

300 Trust FundAppropriation Source Indicates the appropriation source, i.e. either annual/supplementary budget.Purpose Brief explanation of purpose or other information or details

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Particulars This column shall include the following:-Program/Activity/Project-Allotment Class-Object of Expenditure

Object Class/Account Code This pertains to the account code of the object of expenditure based on the NGAs for LGUs. Please refer to COA Circular 2008-001 dated 29 January 2008.

Amount Authorized Amount of allotment to be released.Amount in Words Amount in words of the total amount authorized.Notes Legal bases for such release and/or the period of validity of the

allotment.Date of Issue Date of the preparation of AROApproved by This shall include the name and signature of the LCE approving the

release of the allotment.Page ___ of ___ page(s) Indicate the number of pages of the ARO.ARO No. Assign ARO Number to the form.

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LBE Form No. 3

SUMMARY OF FINANCIAL AND PHYSICAL PERFORMANCE TARGETS

LGU : _____________________________Department/Office: _____________________________MFO : _____________________________

Program/ Project/ Activity Total CostPerformance

IndicatorPrior Year(ACTUAL)

Physical Targets

Remarks

(1) (2) (3) (4) (5) (6)

Prepared by: Approved by:

_________________________ _________________________ Department Head Local Chief Executive

INSTRUCTIONS:

The report on physical performance targets shall be accomplished as follows:

Local Government Unit Name of the province/city/municipality concerned. Department/Office Name of the implementing department/office, e.g. Governor's OfficeMajor Final Output Services provided by the different department and offices to external

clients, such as, but not limited to:

Executive Services

Agricultural ServicesLegislative Services Social ServicesVeterinary Services Engineering ServicesPlanning, Monitoring & Evaluation ServicesHealth Services Budget and Management Services

Services which are not directly consumed by the external clients such as the following shall be subsumed under the executive services:

Ex. MFO: Executive Services (Accounting and Internal Services) P/A/P: Preparation and submission of reports PI : 90% Financial report submitted on time

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Procurement ServicesAccounting and Internal ServicesFinancial ServicesLegal ServicesAssessment Services

(Col. 1) Program/Activity/Project Programs, projects and activities which are identifiable to the final output. Ex. MFO: Agricultural Services ; P/A/P; Swine dispersal program

(Col. 2) Budget Allocation Amount approved for the current year by allotment class (Col. 3) Performance Indicators Performance standards/ criteria and indicators set that will be accomplished by the LGU ( Ex. No. of beneficiaries of swine dispersal program)

(Col. 4) Prior Year's Actual Accomplishment during the preceding year. Accomplishments(Col. 5) Current Year Targets Estimates/targets for each performance indicator to be accomplished for the current year.

(Col. 6) Remarks Other information relative to the performance standards * This document shall be signed by the appropriate signatories- the Department Head and the Local Chief Executive* This shall be submitted to the Local Budget Officer upon approval of the Annual Budget.

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LBE Form No. 3A

DETAILED FINANCIAL AND PHYSICAL PERFORMANCE TARGETS

LGU : _____________________________Department/Office: _____________________________MFO : _____________________________

PROGRAM/ PROJECT/ ACTIVITY/Performance

Indicator/s(1)

FINANCIAL ALLOCATION(2)

PHYSICAL TARGETS(3)

1st

Quarter2nd

Quarter3rd

Quarter4th

Quarter1st

Quarter2nd

Quarter3rd

Quarter4th Quarter

Prepared by: Approved by:

_________________________ _________________________ Department Head Local Chief Executive

INSTRUCTIONS:

The Detailed Financial and Physical Performance Targets shall be accomplished as follows:

Local Government Unit Name of the province/city/municipality concerned.Department/Office Name of the implementing department/office, e.g. Governor's OfficeMajor Final Output Services provided by the different departments and offices to

external clients, such as but not limited to:

Executive Services Agricultural Services Legislative Services Social Services Veterinary Services Engineering Services

Planning, Monitoring & Evaluation Services Budget and Management Services Health Services

Services which are not directly consumed by the external clients such as the following shall be subsumed under the executive services

Ex. MFO: Executive Services (Accounting and Internal Services) P/A/P: Preparation and submission of reports PI: 90% Financial report submitted on time

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Procurement Services Accounting and Internal Services Financial Services Legal Services Assessment Services

(Col. 1) Programs, projects and activities which are identifiable to the final output, example: MFO: Agricultural Services ; P/A/P; Swine dispersal program

Indicate for each P/P/A the Performance Indicator/s

(Col. 2) Quarterly Financial Allocation based on the currently approved budget for the department.

(Col. 3) Quarterly Physical Targets for each performance indicator per P/P/A.

* This should be submitted to the Local Budget Officer as an attachment to LBE Form No. 3 (SFPPT).

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CHAPTER 5. TOOLS AND APPROACHES FOR BUDGET ACCOUNTABILITY

Organizational Performance Indicator Framework (OPIF). The application of the OPIF as described in Appendix 4.1 is also useful for performance management as it provides the context against which the implementation of the PPAs will be measured during the budget accountability phase. This phase is also the appropriate period to revisit the definition of the MFOs and the performance indicators employed using this framework. [PLPEM 4, pp.47-48]

Best Practice in Local Budget Accountability. Key elements of public participation in budget accountability include: (a) a well-publicized description of services provided by the LGU with their corresponding standard response time; (b) a system that citizens can use to provide feedback on service delivery of LGU offices; (c) the development of an LGU report card system showing how well the LGU has performed in delivering its MFOs, the gaps in LGU outcomes, and report on budget appropriations and actual spending on various sectors vis-à-vis actual outputs delivered and actual results attained; and (d) widespread dissemination of the report card to the public. [PLPEM4 p.82]

Tools Used for Conducting Performance Evaluation9

A. Weights. Assignment of weights for each accomplishment is necessary to differentiate the relative importance of an accomplishment to the overall performance of each office/department and the entire LGU. The following are suggested weights for each department/office:

For Department With Income Collection

For Department Without Income Collection

Absorption Capacity (Financial) 30% Physical Accomplishment 70%

Income Accomplishment 70% Absorption Capacity (Financial) 30%

Total 100% Total 100%

The following suggested weights may be used in evaluating departments/offices with

income and services (i.e., economic enterprise) and the overall performance evaluation of the LGU:

Physical Performance 60% Financial Performance 25%

Income Performance 15% --------------------

Total 100%

9 The Revised Budgetary Operations Manual provides detailed steps and computations in evaluating LGU performance on pp. 203-205.

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B. Scoring System. A scoring system will give points to the accomplishment of the physical, financial and income variables. It may also be used in rating a department performance. The maximum score is 15 points (without weights).

Rate ofAccomplishments

Physical Financial Income

Adj. Rate Points

Adj. Rate Points

Adj. Rate Points

110 – 120 % O 5 P 1 O 5

100 – 109.9% VS 4 F 2 VS 4

90 – 99.9 % S 3 S 3 S 3

80 – 89.9% F 2 VS 4 F 2

Below 80 % P 1 O 5 P 1 Legend: O – Outstanding; S – Satisfactory; P – Poor; VS – Very Satisfactory; F – Fair

C. Total Overall Weighted Score (TOWS). The overall performance of the office/department is computed using the total overall weighted score for physical, financial and income accomplishments with corresponding adjectival ratings:

TOWS or Overall Score Performance Rating

4.0 – 5.0 Outstanding (O)

3.0 – 3.9 Very Satisfactory (VS)

2.0 – 2.9 Satisfactory (S)

1.0 – 1.9 Fair (F)

Below 1.0 Poor (P)

D. Performance Review Report (PRR). The PRR should be brief and concise and should include a descriptive discussion of the department/office, overall LGU performance, explanations for deviations, and measures undertaken or recommended to be undertaken for negative deviations and further improve systems and procedures10.

Accounting for the Local Budget. The forms described below are used in accounting for the local budget which involves two steps: monitoring and performance evaluation.

A. Local Budget Accountability (LBAc) Forms. Accountability reports in the form of LBAc Forms are imperative and useful documents and are, in fact, required for submission for monitoring purposes. They establish the performance record of the various departments and offices of the LGU.

10 A sample outline of the Performance Review Report is found on page 205 of the RBOM.

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B. Local Budget Performance Evaluation (LBPE) Forms. LBPE Form Nos. 1 to 3 which reflect the physical and financial accomplishments of the LGU mid-year during the budget year may be used for reviewing and re-evaluating the relevant contribution of the various programs, projects and activities of the different departments of the LGU to its specific objectives and strategies. [RBOM pp. 211-212]

SUMMARY LIST OF FORMS FOR THE BUDGER ACCOUNTABILITY PHASE

Local Budget Accountability Forms

• LBAc Form No. 1 – Quarterly Report of Income

• LBAc Form No. 2 – Quarterly Financial Report of Operations

• LBAc Form No. 3 – Quarterly Physical Report of Operations

• LBAc Form No. 4 – Statement of Receipts and Expenditures

Local Budget Performance Evaluation Forms

• LBPE Form No. 1 – Physical Performance Evaluation Form

• LBPE Form No. 2 – Financial Performance Evaluation Form (with sample presentation)

• LBPE Form No. 3 – Income Performance Evaluation Form(with sample presentation)

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LOCAL BUDGET ACCOUNTABILITY FORMS

LBAc Form No. 1

QUARTERLY REPORT OF INCOMEFor the Quarter Ending __________

Account Title/

Description of Income

Account Code

Estimated Income Previous Quarter

Estimated Income This

Quarter

Total Estimated Income to

Date

Actual Income for the Quarter

Total Actual

Income to Date

Variance

RemarksAmount %1st Month

2nd Month

3rd Month

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

Prepared by: Certified Correct: ___________________ __________ ____________________ __________ LOCAL TREASURER Date LOCAL ACCOUNTANT Date

INSTRUCTIONS:

Column (1) shall refer to the appropriate account classification and nature of the actual income generated during the period as appearing in Column (3) to (6) in accordance with the New Government Accounting System (NGAS), i.e., Other Taxes - Community Tax - Share from Internal Revenue Collection - Share from Expanded Value Added Tax - Share from National Wealth

Column (2) shall denote the numerical code per NGAS of the income classification in Column (1). Please refer to COA Circular 2008-001 dated 29 January 2008

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Column (3) shall indicate the estimated income of prior quarter(s).

Column (4) shall indicate the estimated income of the current quarter reported.

Column (5) shall refer to the estimated income from January to the end of the quarter reported.

Columns (6) to (8) shall refer to the actual income realized during the three months of the quarter reported, while Column (9) shall indicate the cumulative total of each income category from January 1 to the end of the quarter reported. Said total should tally with the income account per Trial Balance as of even date.

Column (10) shall indicate the difference between the estimated income and actual income to date (Col.10 – Col.5).

Column (11) shall indicate the percentage increase/(decrease) in the income (10/5).

Column (12) shall refer to additional information/reasons for material increase or decrease of actual income realized during the period from those previous quarters.

This report shall be submitted directly to the Local Finance Committee through the Local Budget Officer on or before the 20th day of the month following the quarter reported.

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LBAc Form No. 2

QUARTERLY FINANCIAL REPORT OF OPERATIONSFor the Quarter Ending ______________

P/P/AImplementing

Unit

Appropriation Allotment Released Balance of Appro-priation

Obligations IncurredUnobligated Allotment RemarksContinuing Current Total

Previous Quarters

This Quarter

TotalPrevious Quarters

This Quarter

Total

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (`11) (12) (13) (14)

Certified Correct: _______________________ ____________ LOCAL BUDGET OFFICER Date

INSTRUCTIONS:

Column (1) shall refer to the P/P/A Code of the activity as listed down in the General Fund Budget.

Column (2) shall refer to the implementing unit (i.e. General Services Department, Accounting Department, etc.).

Column (3) shall refer to the released appropriation of the past year/s which can still be utilized beyond the budget year.

Column (4) shall indicate the current year's appropriation in the approved budget, whether from the annual budget or from supplemental budgets.

Column (5) shall refer to the total appropriation (3 + 4).

Column (6) shall refer to the allotment released in the previous quarters during the year.

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Column (7) shall refer to the allotment released during the quarter being reported.

Column (8) shall refer to the total allotment released as of end of the quarter being reported (6 + 7).

Column (9) shall refer to the unreleased appropriation (5 - 8) as of end of the quarter being reported.

Column (10) shall refer to the obligations incurred in the previous quarters during the year as recorded in the Registry of Allotment and Obligation (RAO).

Column (11) shall refer to the obligations incurred during the quarter being reported as recorded in the RAO.

Column (12) shall refer to the total obligations incurred as of end of the quarter being reported (10 + 11).

Column (13) shall refer to the unobligated allotment (8 - 12) which shall equal the balance shown in the Statement of Allotments, Obligations, and Balances as of end of the quarter being reported.

Column (14) shall cover the other relevant information for which no appropriate column is provided.

This report shall be submitted directly to the Local Finance Committee on or before the 20th day of the month following the quarter being reported.

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LBAc Form No. 3

QUARTERLY PHYSICAL REPORT OF OPERATIONSFor the Quarter Ending ___________

Department/Office: __________________

P/P/AMajor Final

OutputPerformance

Indicator

Target Output Actual Performance Variance

Previous Quarters

This Quarter

TotalPrevious Quarters

This Quarter

Total Output % Remarks

(1)(2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

Prepared by:

_______________________ ___________________________________ ____________ DEPARTMENT HEAD LOCAL PLANNING & DEVELOPMENT OFFICER Date

INSTRUCTIONS:

Column (1) shall refer to the P/P/A Code of the activity as listed down in the General Fund Budget.

Column (2) shall refer to the Major Final Output (MFOs) - goods and services that a department is mandated to deliver to external clients through the implementation of the P/P/A.

Column (3) refers to the performance indicator - predetermined measure of the results of an activity against a standard of performance required to achieve set policy objectives within a given period. Column (4) refers to the cumulative target output as of the previous quarter.

Column (5) refers to the target output during the quarter being reported. Column (6) shall refer to the total target output ( 5 + 6 ) as of end of the quarter being reported. Column (7) refers to the actual performance as of the previous quarter.

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Column (8) refers to the actual performance during the quarter being reported.

Column (9) refers to the total actual performance ( 8 + 9) as of end of the quarter reported

Column (10) refers to the variance between the target and actual accomplishments

Column (11) refers to the variance expressed in percentage

Column (12) shall cover other relevant information/reasons for increase or decrease in actual performance vis-à-vis target performance.

This report shall be submitted to the Local Finance Committee thru the Local Budget Officer on or before the 20th day of the month following the quarter reported. Consolidated report shall be prepared by the Local Budget Officer.

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LBAc Form No. 4

STATEMENT OF RECEIPTS AND EXPENDITURESFor the Fiscal Year Ending __________

Province/City/Municipality: ______________

ParticularsAmounts Variance

RemarksEstimate Actual Amounts %

(1) (2) (3) (4) (5) (6)

Beginning Cash Balance

Receipts:

Tax Revenue

Internal Revenue Allotment (IRA)

Real Property Tax (RPT)

Local Taxes

Total Tax Revenue

Non-Tax Revenue

Operating & Misc. Revenue

Capital Revenue

Grants

Extraordinary Income

Borrowings

Inter-Fund Transfers

Other Receipts

Total Non-Tax Revenue

Sub-total Receipts

Total Available Resources

Expenditures

General Services

Economic Services

Social Services

Total Expenditures

Ending Cash Balance

Certified Correct:

_______________________ _______________________ LOCAL TREASURER LOCAL ACCOUNTANT

INSTRUCTIONS:

Column (1) shall refer to the details of the receipts and expenditures.

Column (2) shall refer to the estimated receipts and expenditures for the fiscal year being reported.

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Column (3) shall refer to the actual receipts and expenditures for the fiscal year reported.

Column (4) shall refer to the variance between the estimated and actual receipts and expenditures for the fiscal year reported (3 - 2).

Column (5) refers to the variance, expressed in percentage (4 / 2).

Column (6) shall cover other relevant information/reasons for increase or decrease in actual vis-à-vis target receipts and expenditures.

This report shall be submitted to the Department of Budget and Management thru the Local Budget Officer within 30 days from the end of the fiscal year reported, copy furnished the Local Finance Committee.

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LOCAL BUDGET PERFORMANCE EVALUATION FORMS

LBPE Form No.1

PHYSICAL PERFORMANCE EVALUATION FORM As of the 1st Semester Ending, _______

Office/Department: __________

MFO/Activity

%Weight

ActualOutput

Target Variance Absorptive Capacity PointsWeighted

Score

(1) (2) (3) (4) (5) (6) (7) (8)

Total 100%

INSTRUCTIONS:

Column (1) refers to the MFO of the various P/P/As of the Office/Department.

Column (2) refers to the percentage (%) weight of each MFO.

Column (3) refers to the actual output for the semester being reported.

Column (4) refers to the target output for the semester reported.

Column (5) refers to the difference between col.3 and col. 4 (Col.3 – Col.4).

Column (6) refers to the accomplishment expressed in percentage (Col.3/Col.4)

Column (7) refers to the point score based on the physical accomplishment shown in Column (6) using the scoring system.

Column (8) refers to the weighted score (Column 2 x Column 7).This Report shall be submitted to the LCE by the LFC on or before September 30 of each year.

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LBPE Form No. 2

FINANCIAL PERFORMANCE EVALUATION FORM As of the 1st Semester Ending, _______

Department/Office:__________________

MFO/Activity

%Weight

ActualObligations

Incurred

AllotmentReleased

VarianceAbsorptive Capacity

PointsWeighted

Score

(1) (2) (3) (4) (5) (6) (7) (8)

TOTAL

INSTRUCTIONS:

Column (1) refers to the MFO of the various P/P/As of the Department/Office.

Column (2) refers to the percentage (%) weight of each MFO.

Column (3) refers to the actual obligations incurred as reflected in the Registry of Allotment and Obligation (RAO) for the semester being reported.

Column (4) refers to the allotment released for the Department/Office for the semester being reported.

Column (5) refers to the difference between Columns 3 and 4 (Col.4 – Col.3).

Column (6) refers to the financial accomplishment expressed in percentage (Col.3/Col.4).

Column (7) refers to the point score based on the financial accomplishment shown in Column 6 using the scoring system.

Column (8) refers to the weighted score (Column 2 x Column 7).

This report shall be submitted to the LCE by the LFC on or before September 30 of each year.

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LBPE Form No. 3

INCOME PERFORMANCE EVALUATION FORM As of the 1st Semester Ending______

Department/Office :_____________

Actual Collections

Target Collections

Collection Efficiency Rate

Point ScoreOverall IncomePerformance

(1) (2) (3) (4) (5)

INSTRUCTIONS:

1. Column (1) refers to the actual collections made during the semester.

2. Column (2) refers to the target collections for the semester.

3. Column (3) refers to the income accomplishment (1/2).

4. Column (4) refers to the point score based on the income accomplishment shown in Column 3 using the scoring system.5. Column (5) refers to the overall income performance (Column 4 x 30% if income performance is by an office/department and 15% if income performance being measured is LGU-wide).

This report shall be submitted to the LCE by the LFC on or before September 30 of each year.

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SAMPLE PRESENTATIONS

Office/Department Performance Evaluation

Financial Accomplishment

LBPE Form No. 2

FINANCIAL PERFORMANCE EVALUATION FORM As of the 1st Semester Ending June 30, 2007

Department/Office: OFFICE OF THE TREASURER

MFO/Activity

%Weight

ActualObligations

Incurred

AllotmentReleased

VarianceAbsorptive Capacity

PointsWeighted

Score

(1) (2) (3) (4) (5) (6) (7) (8)

Local Revenue Generation Services

75% 5,800,000 7,000,000 1,200,000 83% 4 3.00

Program Implementation Monitoring Services

25% 2,400,000 2,500,000 100,000 96% 3 0.75

Total 100% 8,200,000 9,500,000 1,300,000 3.75

Income Accomplishment

LBP Form No. 3

INCOME PERFORMANCE EVALUATION FORM As of the 1st Semester Ending June 30, 2007

Department/Office: OFFICE OF THE TREASURER

Actual Collections

Target Collections

Collection Efficiency Rate

Point ScoreOverall IncomePerformance

(1) (2) (3) (4) (5)

21,800,000 25,000,000 87.2% 2 1.4

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Sources

Budget Operations Manual for Local Government Units (An Updated Version of the June 2005 Edition), April 2008

Harmonization of Local Planning, Investment Programming, Revenue Administration, Budgeting and Expenditure Management, Joint Memorandum Circular (JMC) No. 001, Series of 2007 (JMC)

Physical Development & Physical Framework Plan, Volume 4. Tools and Techniques on Budgeting Public Expenditure Management

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