Overview in Barangay BudgetingPresentation Transcript
BUDGET 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 aside to its being a legal requirement under the Local Government Code, it is one of the basic requirements of the local governance
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.”
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: 1. Estimates of Income 2. Total Appropriations as proposed by the Punong Barangay
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.
WHAT are the contents of theBarangay Budget?The Annual Barangay Budget shall contain thefollowing: - Budget Message - Local Expenditures Program on Proposed General Barangay Appropriations Bill - Summary of Income and Expenditures (Past Year, Current Year and Budget Year) - Summary of Actual and Estimated Output
* 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 - Oct. 2 d. Finalization of Budget Proposals - Oct. 5 e. Preparation of Budget Message - Oct. 10 f. Submission of Executive Budget to the Sangguniang Barangay - Oct. 16
* Provide funds pursuant to the provisions of the local code for Mandatory Obligations: Internal Revenue Allotment (IRA) share- shall be used for basic services delivery including administrative and legislative services1. 20% of the IRA- shall be used for priority development projects2. 10% of the General fund- shall be allocated for the Sangguniang Kabataan (SK)3. 5% of the General Income- shall be used for unforeseen calamities4. 55% of the Total Regular Income of the next preceding year- intended for Personal Services (PS)
PS Cap on Limitation Formula = Regular Income of the Next Preceding Year x 55%For Example: Regular Income for: Budget Year 2012 P1,000,000.00 Preceding Year 2011 900,000.00 Next Preceding Year 2010 700,000.00 Therefore: P700,000.00 x 55% = P385,000.00 P385,000.00 is allocated for Personal Services (PS)
2. BUDGET AUTHORIZATION 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.
How the Barangay Budget is authorized? Step 1- Present the Executive Barangay Budget to the Sangguniang Barangay Step II- Deliberate on the Executive Budget Step III- Enact the General Appropriations Act (GAO) Step IV- Approved the GAO by the Punong Barangay
Step 1- Present the ExecutiveBarangay Budget to the SangguniangBarangay a. deliver the State of the Barangay Address (SOBA) b. follow contents of Budget Message c. calendar and certify as urgent the proposed executive budget
Step II- Deliberate on the Executive Budget* Budgetary Requirements: a. 20% of the IRA is intended for Dev’t. Projects b. 5% of the Regular Income for Calamity Fund Regular Income – is derived from recurring source like tax income and misc. and operating income c. 10% of the General Fund of the Barangay for Sangguniang Kabataan d. 2% of the Real Property Tax Collection of the next preceding year – this is intended for Discretionary Expenses of the Punong Barangay e. 55% of the Regular income of the next preceding year shall be the Personal Services (PS) Cap on limitation
3. BUDGET REVIEWThe GAO, authorizing the Annual or SupplementalBudget is submitted for review within ten (10)days after its enactment to the Sangguniang Bayan.* Legal basis for the review of brgy. Budget underArticle 424 a. copies of the Brgy. Ordinance authorizingthe Annual Appropriation shall be furnished theSangguniang Bayan through the Municipal BudgetOfficer b. the Sanggunian concerned shall review theBarangay Ordinance to ensure compliance thereofwith all the budgetary requirements andlimitations provided in this rule.
3. BUDGET REVIEW* Purposes in the Budget Review a. to ensure that the budgetary requirements and general limitations provided in the Code are complied with b. the Budget does not exceed the Estimated Receipts or Income of the Barangay c. the items of Appropriations are not more than those provided by existing laws.
* HOW IS THE BUDGET REVIEWDONE?There are 6 STEPS: 1. Review within 60 days upon receipt 2. Declare the Barangay Budget Operative 3. Declare the Barangay budget inoperative in its entirely 4. Declare the Barangay budget inoperation in past 5. Check consistency of GAO with AIP and ELA 6. Appeal for consideration in case of Conflict in Budget Review
6 STEPS in the Budget Review 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. 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.
6 STEPS in the Budget Review 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
6 STEPS in the Budget Review5. 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.
4. BUDGET EXECUTION The local Government Code is clear and explicit onthe 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: 1. that the revenues as Estimated are realized 2. that the approved dev’t. projects and basic services are implemented and delivered
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.
* How is the accountability of the budget done? 1. Record all collections from taxes, fees and charges in the Income Books of Accounts 2. Issue an Official Receipt 3. Deposit all collections in the bank 4. Collect Real Property Taxes and other taxes 5. Record all obligation and disbursements in the Expenditure Booksof Accounts