Overview in Barangay Budgeting

1. 1. OVERVIEW INBARANGAYBUDGETING
2.
3. 2. aside to its being a legal requirement under the Local Government
Code, it is one of the basic requirements of the local governance
4.  is the legal authority and a financial plan for the use of Barangay funds,
embodying the Estimates of Income and Expenditures for the designated
calendar year. No money shall be paid out of the treasury except in
pursuance of a lawful appropriationBUDGET
5.
6. 3. THE BUDGET CYCLE
7. 1. Budget Preparation
8. 2. Budget Authorization
9. 3. Budget Review4. Budget Execution
10. 5. Budget Accountability
11.
12. 4. 1. BUDGET PREPARATION The preparation of the Barangay budgetis
provided in Article 423 of the Local Gov’t.Code which states that “Upon
receipt of theStatement of Income and Expenditures fromthe Barangay
Treasurer, the Punong Barangayshall prepare the Barangay Budget for
theensuing Fiscal Year in the manner and withinthe period prescribed and
submit the AnnualBarangay Budget to the SangguniangBarangay for
enactment.”
13.
14. 5. WHO prepares the budget? The Punong Barangay with the assistance of
the Barangay Treasurer and in consultation with the Sangguniang
Barangay and Barangay Development Council prepares the Barangay
Budget. The Barangay Budget consist of the following:
15.
16. 1. Estimates of Income
17. 2. Total Appropriations as proposed by the Punong Barangay
18.
19. 6. WHEN is the budget prepared? The Punong Barangay prepares
theBarangay Budget for the coming CalendarYear upon receipt of the
detailedStatement of Income and Expendituresfrom the Barangay
Treasurer on or beforeSept. 15 of each year.
20.
21. 7. WHAT are the contents of theBarangay Budget?The Annual Barangay
Budget shall contain thefollowing:
22.
23.- Budget Message
24.- Local Expenditures Program on Proposed General Barangay
Appropriations Bill
25.- Summary of Income and Expenditures (Past Year, Current Year and
Budget Year)
26.- Summary of Actual and Estimated Output
27.
28. 8. * Indicative Budget Calendar a. Issuance of Budget Call - Sept. 20 b.
Preparation of Budget Proposals - Sept. 25 c. Budget Forum with Barangay
Officials and Stakeholders
29.- Oct. 2 d. Finalization of Budget Proposals
30.- Oct. 5 e. Preparation of Budget Message
31.- Oct. 10 f. Submission of Executive Budget to the Sangguniang Barangay
32.- Oct. 16
33.
34. 9. * Provide funds pursuant to the provisions of the local code for
Mandatory Obligations:
35.
36. Internal Revenue Allotment (IRA) share- shall be used for basic services
delivery including administrative and legislative services
37.
38.1. 20% of the IRA- shall be used for priority development projects
39.2. 10% of the General fund- shall be allocated for the Sangguniang
Kabataan (SK)
40.3. 5% of the General Income- shall be used for unforeseen calamities
41.4. 55% of the Total Regular Income of the next preceding year- intended for
Personal Services (PS)
42.
43. 10. PS Cap on Limitation Formula = Regular Income of the Next Preceding
Year x 55%
44.
45.For Example:
46.Regular Income for: Budget Year 2012 P1,000,000.00
47. Preceding Year 2011 900,000.00
48.Next Preceding Year 2010 700,000.00
49.Therefore: P700,000.00 x 55% = P385,000.00
50.
51.P385,000.00 is allocated for Personal Services (PS)
52.
53. 11. 2. BUDGET AUTHORIZATION
54.This stage of the budget process is theadoption and enactment of a
BarangayBudget into a General AppropriationsOrdinance (GAO). This s
provide is Section 391 (a) (3) ofthe Local Gov’t. Code – “the
SangguniangBarangay shall enact Annual andSupplemental Budgt in
accordance with theProvisions of this code.
55.
56. 12. How the Barangay Budget is authorized?
57.
58.Step 1- Present the Executive Barangay Budget to the Sangguniang
Barangay
59.Step II- Deliberate on the Executive Budget
60.Step III- Enact the General Appropriations Act (GAO) Step IV- Approved the
GAO by the Punong Barangay
61.
62. 13. Step 1- Present the ExecutiveBarangay Budget to the
SangguniangBarangay
63.
64.a. deliver the State of the Barangay Address (SOBA)
65.b. follow contents of Budget Message
66.c. calendar and certify as urgent the proposed executive budget
67.
68. 14. Step II- Deliberate on the Executive Budget* Budgetary Requirements:
69.
70.a. 20% of the IRA is intended for Dev’t. Projects
71.b. 5% of the Regular Income for Calamity Fund Regular Income – is derived
from recurring source like tax income and misc. and operating income
72.c. 10% of the General Fund of the Barangay for Sangguniang Kabataan
73.d. 2% of the Real Property Tax Collection of the next preceding year – this
is intended for Discretionary Expenses of the Punong Barangay
74. e. 55% of the Regular income of the next preceding year shall be the
Personal Services (PS) Cap on limitation
75.
76. 15. 3. BUDGET REVIEW
77. The GAO, authorizing the Annual or Supplemental Budget is submitted for
review within ten (10)days after its enactment to the Sangguniang Bayan.
78.* Legal basis for the review of brgy. Budget underArticle 424
79.a. copies of the Brgy. Ordinance authorizingthe Annual Appropriation shall
be furnished theSangguniang Bayan through the Municipal BudgetOfficer
80.b. the Sanggunian concerned shall review theBarangay Ordinance to
ensure compliance thereofwith all the budgetary requirements
andlimitations provided in this rule.
81.
82.* Purposes in the Budget Review
83.a. to ensure that the budgetary requirements and general limitations
provided in the Code are complied with
84.b. the Budget does not exceed the Estimated Receipts or Income of the
Barangay
85.c. the items of Appropriations are not more than those provided by existing
laws.
86.
87. 17. * HOW IS THE BUDGET REVIEW DONE?
88.There are 6 STEPS:
89.1. Review within 60 days upon receipt
90.2. Declare the Barangay Budget Operative
91.3. Declare the Barangay budget inoperative in its entirely
92.4. Declare the Barangay budget inoperation in past
93.5. Check consistency of GAO with AIP and ELA
94.6. Appeal for consideration in case of Conflict in Budget Review
95.
96. 18. 6 STEPS in the Budget Review
97. 1. Review within 60 days upon receipt The Sangguniang Bayan, through the
Municipal Budget Officer shall review the Barangay Budget within 60 days
upon receipt of the appropriation ordinance.
98.2. Declare the Barangay Budget Operative There is no substantial change
in the budget, it is declared operative in its entirely. The Punong Barangay
right away execute the authorized budget.
99.3. Declare the Barangay budget inoperative in its entirely A Barangay
budget that is declared inoperative in its entirely shall be returned to the
Punong Barangay for proper adjustments/ revisions. The Barangay
Treasurer shall not make any further disbursements from the inoperative
budget.
4. Declare the Barangay budget inoperation in past A Barangay Budget
maybe declared inoperative in past when it has not complied with some
budgetary requirements or general limitations. A budget is declared
inoperative in its entirely if:
a. when Expenditure is greater than the Estimated Income
b. when there is not sufficient provision appropriated for payment of loan
5. Check consistency of GAO with AIP and ELA Monitor projects for
implementation. See to it that the AIP and ELA projects are funded in the
20% Dev’t. Fund and the activities undertaken in the delivery of basic
services.
6. Appeal for consideration in case of Conflict in Budget Review The
Barangay may make an appeal in case of conflict.
100. 21. 4. BUDGET EXECUTION The local Government Code is clear and
explicit on the effectivity of Barangay Budget. Section 332 provides that “
the ordinance enactingthe Annual Budget shall take effect at the
beginning of theensuing calendar year. However, an ordinance enacting
aSupplemental Budget shall take effect upon its approval oron the date
fixed herein. The Punong Barangay shall be primarily responsiblefor the
execution of the Annual and Supplemental Budgetof the Barangay. He
ensures the following:
101. 1. that the revenues as Estimated are realized
102. 2. that the approved dev’t. projects and basic services are
implemented and delivered
103. 22. 5. BUDGET ACCOUNTABILITY Section 332 of the Local
Government Code provides that “the responsibility for accountability of the
Annual and Supplemental Budget vested primarily in the Punong Barangay.
104. 23. * How is the accountability of the budget done?
105. 1. Record all collections from taxes, fees and charges in the Income
Books of Accounts
106. 2. Issue an Official Receipt
107. 3. Deposit all collections in the bank
108. 4. Collect Real Property Taxes and other taxes
109. 5. Record all obligation and disbursements in the Expenditure
Booksof Accounts
110. 24. END