Local Government Budget Process Quiz

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Questions and Answers

What is the maximum time allowed to post the Appropriation Ordinance after its approval?

10 days

5 days (correct)

1 week

3 days

Which step should be completed within 3 days after the approval of the Appropriation Ordinance?

Enact the Appropriation Ordinance

Submit the Ordinance for Review (correct)

Post the Approved Ordinance

Authorize the Budget

What is the role of the Sanggunian in the budget process?

Evaluate the submitted budget documents (correct)

Authorize the budget directly

Enact the budget ordinance unchanged

Collect the budget documents from the public

When must the Appropriation Ordinance be approved in relation to the beginning of the ensuing year?

On or before the beginning of the ensuing year Signup and view all the answers

Which of the following is not a step outlined in the enactment of the Appropriation Ordinance?

Conduct a public referendum Signup and view all the answers

What percentage of the regular income of the LGU can be allocated for debt servicing?

20% Signup and view all the answers

How much aid must be provided to each component barangay?

One Thousand Pesos (P1,000) Signup and view all the answers

What minimum percentage of estimated revenue from regular sources should be allocated to the Local Disaster Risk Reduction Management Fund?

5% Signup and view all the answers

For what purposes is the allocation from the Local Disaster Risk Reduction Management Fund utilized?

For prevention, preparedness, response, and recovery Signup and view all the answers

What is the minimum percentage of the Internal Revenue Allotment (IRA) that must be set aside for development projects?

20% Signup and view all the answers

What does the ruling in Quisumbing, et al. vs. Garcia highlight regarding contracts entered by the local chief executive?

All contracts must have prior Sanggunian authorization. Signup and view all the answers

What was a key recommendation made by the COA audit report regarding the Provincial Governor's contracts?

To secure prior authorization from the Sanggunian Signup and view all the answers

What is required for the Sanggunian to consider the budget as a priority measure?

Certification as urgent by the LCE Signup and view all the answers

What happens if the aggregate amount appropriated exceeds the estimates of income for the LGU?

The budget must be revised to align with income estimates. Signup and view all the answers

Who can provide inputs during the budget hearings when allowed by the IRP?

Civil Society Organizations (CSOs) Signup and view all the answers

What should the Department Heads present to justify their budgets?

Mandate and performance indicators Signup and view all the answers

What role does the Local Finance Committee (LFC) play in the budgeting process?

They assist the Sanggunian by providing data Signup and view all the answers

Which of the following must the Sanggunian ensure compliance with in the proposed budget?

Provisions on general limitations under RA No. 7160 Signup and view all the answers

What was the total contract amount between Philkonstrak and the Municipality of Corella?

P15,997,732.63 Signup and view all the answers

Which of the following amounts did Philkonstrak incur for construction works before construction was suspended?

P8,233,000.00 Signup and view all the answers

What principle did the court utilize to determine Philkonstrak's entitlement to payment?

Quantum meruit Signup and view all the answers

Who was exonerated from liability according to the CIAC decision?

Former Mayor Rapal Signup and view all the answers

What percentage of the construction work had Philkonstrak completed by December 2009?

Over 50% Signup and view all the answers

What was the outcome of the Court of Appeals regarding Corella's Petition for Review?

The petition was denied. Signup and view all the answers

Why did the incumbent Mayor Tocmo refuse to pay Philkonstrak?

He did not recognize the contract's validity. Signup and view all the answers

What is not required when there is a sufficient appropriation ordinance?

A separate Sanggunian bayan authorization Signup and view all the answers

What is the total membership required for a majority vote in the context mentioned?

14 Signup and view all the answers

In a scenario where there are 12 members and the Presiding Officer present, how many votes are needed to pass a motion?

7 Signup and view all the answers

If the Presiding Officer casts a vote to break a tie of 6 yes and 6 no in a meeting with 13 members present, what will be the total votes in favor?

7 Signup and view all the answers

How many members must be present to meet the quorum requirement, as illustrated in the examples provided?

8 Signup and view all the answers

In a situation where 10 members and the Presiding Officer are present and there are 5 yes votes and 5 no votes, is the vote sufficient to enact the Appropriation Ordinance?

No, 7 votes are required Signup and view all the answers

What happens to the budget if the ordinance authorizing it is declared inoperative in its entirety?

The budget is invalid until a new ordinance is enacted. Signup and view all the answers

What must happen to the budget following a review action if any appropriation items are declared inoperative?

The budget should be revised to comply with laws. Signup and view all the answers

What form does the review action by the Department of Budget and Management (DBM) Regional Office take?

A letter. Signup and view all the answers

What is the primary purpose of the review action conducted by the DBM?

To determine compliance with laws and regulations. Signup and view all the answers

What should be included in the findings of the reviewing authority?

An enumeration of infractions of budgetary requirements. Signup and view all the answers

What does the review action NOT do regarding the items of appropriation?

It authorizes items prohibited by law. Signup and view all the answers

What must be done about deficiencies identified during the review action?

They should be incorporated in the next supplemental budget. Signup and view all the answers

Which of the following statements is true regarding an ordinance's validity?

It must not violate any law or statute. Signup and view all the answers

Study Notes

Appropriation Ordinance Timeline

The Appropriation Ordinance must be posted within 15 days after its approval.
The Sanggunian must complete the review and approval of the Appropriation Ordinance within 3 days after the approval.

Sanggunian Role in Budget Process

The Sanggunian plays a crucial role in the budget process, reviewing and approving the Appropriation Ordinance proposed by the Local Chief Executive.

Appropriation Ordinance Approval Deadline

The Appropriation Ordinance must be approved before the beginning of the ensuing year.

Steps in Enactment of Appropriation Ordinance

The prompt posting of the Appropriation Ordinance is not a step outlined in the enactment process.

Budget Allocations

20% of the LGU's regular income can be allocated for debt servicing.
10% of the total IRA (Internal Revenue Allotment) should be allocated to the **Local Disaster Risk Reduction Management Fund (LDRRMF)*.
At least 20% of the estimated revenue from regular sources must be allocated to the LDRRMF.

LDRRMF Utilization

The LDRRMF is utilized for programs such as:
- Disaster preparedness
- Disaster response
- Disaster rehabilitation
- Disaster recovery

Development Projects Allocation

At least 20% of the IRA must be set aside for development projects.

Quisumbing vs. Garcia Ruling

The ruling in Quisumbing, et al. vs. Garcia emphasizes that contracts entered by the local chief executive must be supported by a valid appropriation ordinance.

COA Audit Report Recommendations

The COA (Commission on Audit) audit report recommended that the Provincial Governor seek approval from the Sanggunian before entering into contracts.

Budget Priority and Excess Appropriation

The Sanggunian must declare the budget as a priority measure for it to be considered.
If the aggregate amount appropriated exceeds the estimated income for the LGU, the Sanggunian must revise the budget.

Budget Hearings and Justification

Department Heads can provide inputs during budget hearings.
Department Heads must present justification for their budget requests.

Local Finance Committee (LFC) Role

The Local Finance Committee (LFC) plays a key role by reviewing and evaluating the proposed budget before it is submitted to the Sanggunian.

Sanggunian Compliance

The Sanggunian must ensure compliance with the following in the proposed budget:
- Revenue estimates
- Expenditure items
- Debt servicing
- LDRRMF allocation
- Development projects funding

Philkonstrak Case

The total contract amount between Philkonstrak and the Municipality of Corella was PHP 24.1 million.
Philkonstrak incurred PHP 7.3 million for construction works before construction was suspended.

Principle of Entitlement to Payment

The court applied the principle of quantum meruit to determine Philkonstrak's entitlement to payment based on work completed.
The principle of quantum meruit states that a party should be paid a reasonable amount for services rendered.

Liability Exoneration

The CIAC (Construction Industry Arbitration Commission) decision exonerated the incumbent Mayor Tocmo from liability.

Construction Completion Percentage

Philkonstrak had completed 30.4% of the construction work by December 2009.

Court of Appeals Decision

The Court of Appeals reversed and set aside the ruling of the RTC (Regional Trial Court).

Reason for Refusal to Pay

The incumbent Mayor Tocmo refused to pay Philkonstrak due to allegations of irregularities in the contract.

Ordinance and Appropriation

A sufficient appropriation ordinance is not required when there is a valid contract.

Majority Vote

A majority vote requires more than half of the total membership present to pass a motion.

Voting Scenarios

In a meeting with 12 members and the Presiding Officer, 7 votes are needed to pass a motion.
In a meeting with 13 members and a tie of 6 yes and 6 no, the Presiding Officer's vote would result in 7 votes in favor.

Quorum Requirement

The quorum requirement in the illustrated examples is at least 7 members being present.

Appropriation Ordinance Passage

With 10 members and the Presiding Officer present, and a tie of 5 yes and 5 no, the vote is not sufficient to enact the Appropriation Ordinance.

Budget Inoperability

If the ordinance authorizing the budget is declared inoperative in its entirety, the budget becomes inoperative as well.
If any appropriation items are declared inoperative, those specific items must be removed from the budget.
The review action by the Department of Budget and Management (DBM) Regional Office takes the form of a formal review.

Purpose of Review Action

The primary purpose of the review action is to ensure the legality and propriety of the proposed budget.

Review Action Findings

The findings of the reviewing authority should include:
- Compliance with relevant laws and regulations
- Proper allocation of funds
- Justification for appropriation items

Review Action Limitations

The review action does not invalidate the items of appropriation.

Deficiency Correction

Deficiencies identified during the review action must be corrected by the LGU.

Ordinance Validity

An ordinance is valid even if it is not reviewed by the DBM Regional Office.

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Description

Test your knowledge on the local government budget process, including the Appropriation Ordinance and related procedures. This quiz covers key aspects such as the timeline for approval, roles of the Sanggunian, and funding allocations. Perfect for students and professionals in public administration.