CHAPTER I

Group No. BSA7 Gillera, Razel Ann Dupaloc, Jasmine B. Ravinera, Ma. Katrina B.

CHAPTER I INTRODUCTION A proper allocation of resource of a government agency supports the efficiency of controlling its funds and effectively budget it in accordance to the period of its spending level without sacrificing projects and other important expenditures. An accurately allocation of resource would result to a well controlled fund that is significant to government agencies since its budget is limited only to the appropriation provided by the government through the Department of Treasury and Department of Budget and Management. Every company or institutions have their own ways or strategies on how to manage the funds that has been given to them. A proper managing of resources would be achieved by setting priorities accordingly and conduct bids for the expenditures, also a strict internal control must be observed and cash disbursement must be monitored respectively. The matter understudy is the allocation of resources of government agencies, their priorities for the allocation, the reason or basis they consider such priorities and actual implementation is being made. The accounts they consider in the appropriation of funds and their remedies when problems arise in the budgeting or allocation of resources. The accounts involve the expenses they incur such as salaries, utilities, projects, maintenance, supplies, equipments, etc. The significance of this study will tender the researchers to conduct a study of how Ecosystems Research and Development Bureau, Provincial Environment and Natural Resources Office and Community Environment and Natural Resources Office allocate their resources and assess their control over it. Also researchers will determine their basis for such allocation and the problems they experienced and foresee when it comes to the allocation. When problems occur what remedies do they chose to solve the predicament.

Statement of the Problem How do government agencies acquire their funds? What are the basis of a government agency in allocating their resources? What are the priorities in the allocation funds of the selected government agencies? Why do these selected government agencies consider such priorities? How do government agencies implement the allocation of funds? What are the policies and procedures set by the selected government agencies? What are the common and possible problems that arise in controlling and allocating the funds? What are the remedies of the selected government agencies when problems occur?

Significance of the Study To the Government Institutions. This research study would help the government institution to improve the ways on how they will allocate their resources in the future base on the results or recommendations that we will gather in our study. To the Employees of the Government Institution. This research study would lend a hand to the employees or workers to be more devoted in their work and improve further their knowledge in applying the recommend actions or doing their work and also to develop an assurance that they will do their work efficiently. To the Academe. This research study would help Colegio de San Juan de Letran-Calamba because they will have another study that focuses on managing of resources in which the management, professors, staffs or employees of the school can use it as their guide if they will encounter problems in managing their resources. To the Future Researchers. This research study would serve as a guide to their study for them to be able to have a better result regarding their study.

Objectives of the Study The major objective of this study is to know how Ecosystems Research and Development Bureau, Provincial Environment and Natural Resources Office and Community Environment and Natural Resources Office manage and allocate their funds for their functions of distributing those resources base on the needs of the company. The specific objectives are the following: To know how government agencies acquire their funds. To determine what is/are the basis on allocating the funds. To identify the priorities in the allocation of funds of the selected government agencies. To recognize the reason/s why those selected government agencies consider such priorities. To classify how government agencies implement the allocation of funds. To find out the policies and procedures set by the selected government agencies. To know the common and possible problems that will arise in controlling and allocating the funds. To ascertain the remedies of the selected government agencies when problems occur

Hypothesis of the Study Ho: There is no efficient manageable ways of allocating the resources or funds of a government institution. Ha: There is an efficient manageable ways of allocating the resources or funds of a government institution. Scope and limitation of the Study This study will focus on cash allocation, budgeting and management of resources of a government agency particularly the Ecosystems Research and Development Bureau, Provincial Environment and Natural Resources Office and Community Environment and Natural Resources Office.

Management of resources focuses on the budget which is given to a government institution by the Department of Treasury and Department of Budget and Management. It is to know if the government institution properly allocates their funds and achieving the specific needs and goals of the institution. Management of resources would determine if the company can control their expenses correctly without any deficiency based to the given budget. Amounts and values of allocation given by these government agencies are not specifically in numbers but are only presented in percentages. The study will be conducted in Brgy. Lalakay, Los Banos, Laguna and University of the Philippines, College of Forestry and Natural Resources, College, Los Banos, Laguna. We will conduct survey and interview to the employees who can answer our questions. Definition of Terms Allocation of resources or allocation of funds is a systematic distribution of the resources/funds of a government agency for its expenditures. Budget is an itemized allotment of funds, time, etc., for a given period. Budget ceilings refers to the maximum point of a budget, or its capital. When a project reaches its budget ceiling, funds are depleted. Control - involves the step taken by government agencies to ensure that the objective down to the planning stage are attained, and to ensure that all parts of the organization function are in a manner consistent with government laws and policies. Expenditure refers to expenses government agencies allocate their funds for. It includes salaries & wages, projects, activities, utilities, acquisition of equipments, etc. General Accounting Plan (GAP) - shows the overall accounting system of a government agency/unit. It includes the source documents, the flow of transactions and its accumulation in the books of accounts and finally the conversion into financial information/data presented in the financial reports Government agencies - are administrative units of government that are tasked with specific responsibilities. These agencies can be established by national, regional or local governments.

Government Budgeting - is a plan for financing the government activities for a fiscal year prepared and submitted by responsible executive to a representative body whose approval and authorization are necessary before the plan can be executed; It is a definite proposal of estimate or statement of receipts and expenditures of the government for the past and ensuing years Management refers to the exercise of controlling and proper allocation of resources. Management of Resources an act of managing ones resources efficiently and having control over it in order to make it sufficient for the entire period; efficient and effective deployment and allocation of an organization's resources when and where they are needed. Medium-term expenditure framework (MTEF) - is a transparent planning and budget formulation process within which the Cabinet and central agencies establish credible contracts for allocating public resources to their strategic priorities while ensuring overall fiscal discipline. National Budget refers to the official budget of a nation that it typically drafted by the Department of Treasury and discussed by the legislative body. This is the budget where the funds of the government agencies come from, and is collected through taxes, customs, tariffs etc. Paper on Budget Strategy (PBS). - discusses the macroeconomic outlook and fiscal targets, the Presidents priorities, current achievements and challenges in achieving the plan, and options for priority sectors. Planning - involves the development of future objectives and the preparation of various budgets to achieve these objectives. Proposal A document containing suggestions, offer or bid specifically for the allocation of the budget. Resources refers to the funds or budget given or allocated by the government as the primary resource of government agencies.