Budget Monitoring & Reporting

Scope

• This chapter provides guidelines for monitoring, accounting, and reporting the budget in financial statements.
• Regulations are outlined for records maintenance, forms usage, and report preparation by national government agencies.
• The goal is to effectively monitor the budget.
• Required information disclosure and presentation of budget information adhere to PPSAS 24.

Definitions

• Allotment is an authorization issued by the DBM to NGAs, permitting them to incur obligations up to specified amounts within a legislative appropriation, identified through budget release documents and is also known as Obligational Authority.
• Appropriations are authorizations made by a legislative body to allocate funds for specific purposes.
• Approved Budget refers to expenditure authority derived from appropriation laws, government ordinances, and decisions related to expected revenue or receipts for the budgetary period and consists of items with UACS codes.
• New General Appropriations (01 UACS Code)
• Continuing Appropriations (02 UACS Code)
• Supplemental Appropriations (03 UACS Code)
• Automatic Appropriations (04 UACS Code)
• Unprogrammed Funds (05 UACS Code)
• Retained Income/Funds (06 UACS Code)
• Revolving Funds (07 UACS Code)
• Trust Receipts (08 UACS Code)
• Automatic Appropriations are authorizations programmed annually or for a fixed period by law and do not require periodic Congressional action.
• Budget Information includes data on appropriations, approved budgets, allotments, obligations, revenues, receipts, and disbursements.
• Continuing Appropriations support obligations for specific projects like multi-year construction, allowing obligations beyond the budget year.
• Disbursements are the actual amounts spent or paid from budgeted amounts.
• Final Budget is the original budget adjusted for reserves, carry-over amounts, transfers, and other legislative or similar authority changes.
• New General Appropriations are annual authorizations for incurring obligations during a specific budget year, as listed in the GAA.
• Obligations represent an act by an authorized official that commits the government to immediate or eventual payment. It may also represent commitments encompassing possible future liabilities.
• Original Budget is the initial approved budget for the budget period, typically per the General Appropriations Act (GAA), and may include residual appropriated amounts carried over from prior years.
• Revenues are increases in economic benefits during an accounting period, increasing assets or decreasing liabilities, excluding contributions from owners.
• Supplemental Appropriations are additional appropriations authorized by law to increase the original appropriations when those are insufficient.

Fund Release Documents

• Fund release documents are used with the UACS and Performance-Informed Budgeting (PIB)
• Documents include:
• Obligational Authority or Allotment: Authorizes entities to incur obligations.
• General Appropriations Act Release Document (GAARD): Serves as obligational authority for FCR budgetary items appropriated in the GAA.
• Special Allotment Release Order (SARO): Covers FLR budgetary items, Special Purpose Funds (SPFs).
• General Allotment Release Order (GARO): Authorizes national government agencies to incur obligations for specific purposes within set amounts.
• Disbursement Authority: Authorizes entities to pay obligations and payables.
• Notice of Cash Allocation (NCA): Issued by DBM to cover the cash requirements of central, regional, and provincial offices and operating units.
• Non-Cash Availment Authority (NCAA): Issued by DBM to liquidate obligations incurred against allotments for loan/grant proceeds.
• Cash Disbursement Ceiling (CDC): Issued by DBM to the Department of Foreign Affairs (DFA) and Department of Labor and Employment (DOLE).
• Notice of Transfer of Allocation: Issued by the Central Office to regional and operating units to cover cash requirements.

Classification of Expenditures

• Expenditures are classified based on the following factors as determined by the DBM:
• Entity incurring the obligation
• Program, Activity and Project (PAP)
• Object of expenditures: personnel services (PS), maintenance and other operating expenditures (MOOE), financial expenses (FE), and capital outlays (CO)
• Region or locality of use
• Economic or functional classification of expenditures
• Obligational authority and cash transactions due to fund releases
• Other classifications that may be required for the budget process

Registry Maintenance

• Registry of Appropriations and Allotments (RAPAL): Maintained by NGAs to monitor appropriations and allotments charged.
• Registries of Allotments, Obligations and Disbursements (RAOD): Maintained by Budget Division/Unit to record allotments, obligations, and disbursements.
• Maintained by appropriation act, fund cluster, MFO/PAP, and allotment class.
• Registry of Allotments, Obligations and Disbursements-Personnel Services (RAOD-PS): Used to record allotments, obligations, and disbursements for PS.
• Registry of Allotments, Obligations and Disbursements-Maintenance and Other Operating Expenses (RAOD-MOOE): Records allotments, obligations, and disbursements for MOOE.
• Registry of Allotments, Obligations and Disbursements-Financial Expenses (RAOD-FE): Tracks allotments, obligations, and disbursements for FE.
• Registry of Allotments, Obligations and Disbursements-Capital Outlays (RAOD-CO): Tracks allotments, obligations, and disbursements for CO.

Obligation Request and Status (ORS)

• ORS is used for incurring obligations.
• Prepared by Requesting/Originating Office with valid claim documents.
• Head of the Requesting/Originating Office certifies the necessity and legality of charges on the budget.
• Budget Division/Unit certifies allotment availability.
• Notice of Obligation Request and Status Adjustment (NORSA): Prepares by Accounting Division/Unit to adjust obligated amount to actual obligations incurred.
• Registries of Budget, Utilization and Disbursements (RBUD): Used to record approved special budget-related items.
• Budget Utilization Request and Status (BURS): Incurrence of budget utilization.
• Subsidiary Record for Budget Utilization: The Section C of the BURS serves as the subsidiary record.
• Adjustment of Budget Utilization: Adjustment of budget utilization is made through the use of Notice of Budget Utilization Request and Status Adjustment (NBURSA).

Budget and Actual Amounts

• Statement of Comparison of Budget and Actual Amounts: Based on various registries maintained by the Budget Division/Unit.
• Presents original and final budget amounts, actual amounts, and explanations of material differences.
• Notice of Budget Utilization Request and Status Adjustment. The NBURSA is prepared by the Accounting Division/Unit after the processing of the claim.

Budget Reports

• Quarterly Physical Report of Operation (QPRO) – Budget Accountability Report (BAR) No. 1 reflects departments or agency's actual physical accomplishments.
• Statement of Appropriations, Allotments, Obligations, Disbursements and Balances – Financial Accountability Report (FAR) No. 1 (SAAODB).
• Summary of Appropriations, Allotments, Obligations, Disbursements and Balances by Object of Expenditures- FAR No. 1.A (SAAODBOE).
• List of Allotments and Sub-Allotments – FAR No. 1.B.
• Statement of Approved Budget, Utilizations, Disbursements and Balances – FAR No. 2.
• Summary of Approved Budget, Utilizations, Disbursements and Balances by Object of Expenditures – FAR No. 2.A.
• Aging of Due and Demandable Obligations – FAR No. 3.
• Monthly Report of Disbursements – FAR No. 4.
• Quarterly Report of Revenue and Other Receipts – FAR No. 5.

Deadlines

• Deadlines in submitting the required FARs to COA-GAS and DBM:
• Within thirty (30) days after the end of each quarter: SAAODB – FAR No. 1, SAAODBOE – FAR No. 1.A, List of Allotments/Sub-Allotments - FAR No. 1.B, SABUDB – FAR No. 2, SABUDBOE – FAR No. 2.A, QRROR – FAR No. 5
• On or before 30th day following the end of the year: ADDO – FAR No. 3
• On or before 30th day of the following month covered: MRD – FAR No. 4
• On or before February 14 of the following calendar year: Consolidated Statement of Allotments, Obligations, and Balances per Summary of Appropriations under FCR under GAA, GARO, and SARO.