FREQUENLY ASKED QUESTIONS Is the inclusion of appropriation for Early and Voluntary Separation Incentive Program (EVSIV) legally tenable? NO. It is not legally tenable. An early retirement program to be valid should be by virtue of a valid reorganization pursuant to a law passed by Congress. Although local autonomy grants local governments the power to streamline and reorganize as may be inferred from Sections 16 and 76 of the Local Government Code of 1991, it does not confer authority upon any local government unit to create a separate and supplementary retirement benefit plan. Budget Operations Manual for Local Government Units, 2016 Edition
FREQUENLY ASKED QUESTIONS Can the LGU appropriate for Monetization of Leave Credits? Generally, Monetization of Leave Credits is chargeable against savings. However, under CSC-DBM Joint Circular No. 2, s. 2003, Monetization of Leave Credits, CNA, Overtime Pay and such other benefits that are authorized by law but are chargeable against savings of the LGUs may also be included by direct appropriation either in the annual budget or supplemental budget of the LGU concerned, provided these are within the PS limitation, as stipulated under Section 325 (a) of RA No. 7160. Budget Operations Manual for Local Government Units, 2016 Edition
FREQUENLY ASKED QUESTIONS Can the appropriation for development projects of no less than 20% of the IRA be appropriated in lump-sum amount? No. The said appropriation for the 20% Development Fund should cover itemized projects. Section 287 of RA No. 7160 provides that each LGU shall appropriate in its annual budget no less than 20% of its annual IRA for development projects. Article 384 of the IRR of RA 7160 further provides that it shall be mandatory for each LGU to set aside in its annual budget amounts no less than 20% of its IRA for the next year as appropriation for local development projects that embodied or contained in local development plans. Budget Operations Manual for Local Government Units, 2016 Edition
FREQUENLY ASKED QUESTIONS Is an Appropriation Ordinance necessary to authorize utilization of loan proceeds? Yes. An Appropriation Ordinance is necessary to authorize utilization of loan proceeds. Loans, interests, bond issues, and other contributions for specific purposes form part of the general fund of the LGU. Pursuant to Section 305 (a) of RA No. 7160, no money shall be paid out of the local treasury except in pursuance of an appropriation ordinance or law. Budget Operations Manual for Local Government Units, 2016 Edition
FREQUENLY ASKED QUESTIONS Is an Appropriation Ordinance necessary to authorize the use of the shares in the proceeds from development and utilization of the national wealth? Yes. Article 391 of the IRR of RA No. 7160 provides that the proceeds from the shares of LGUs in the proceeds from the development and utilization of the national wealth shall be appropriated by their respective Sanggunian to finance local development and livelihood projects. Article 454 (d) of the same IRR reiterates this mandate and provides further that disbursements from such special accounts under the General Fund shall proceed from itemized appropriations in the budgets of LGU insead of by lump-sum. Budget Operations Manual for Local Government Units, 2016 Edition
FREQUENLY ASKED QUESTIONS How is the CNA Incentive Bonus classified in the budget? The CNA Incentive Bonus shall be taken up as PS Expenditure. Budget Operations Manual for Local Government Units, 2016 Edition
WORKSHOP Budget Operations Manual for Local Government Units, 2016 Edition
WORKSHOP for BUDGET PREPARATION PHASE The following data are available for the preparation of the FY 2018 Annual Budget of the Municipality of Siabatu: I. RECEIPTS •General Fund Past Year 2016 Current Year 2017 Budget Year 2018 Local Sources Basic RPT 1,000,000.00 1,100,000.00 1,200,000.00 Non-Tax Revenue – Permit Fees 700,000.00 800,000.00 900,000.00 Receipts from Economic Enterprise 600,000.00 700,000.00 800,000.00 External Sources Internal Revenue Allotment (IRA) 70,000,000.00 73,000,000.00 75,000,000.00 Grants (Cash) 100,000.00 200,000.00 Non-Income Receipts Gains on Sale of Assets 20,000.00 50,000.00 Loans from LBP 5,000,000.00 3,000,000.00 Total 72,420,000.00 80,600,000.00 81,150,000.00 •Local Economic Enterprise Receipts from Market 900,000.00 800,000.00 800,000.00 Subsidy from General Fund 800,000.00 1,000,000.00 1,200,000.00 Total 1,700,000.00 1,800,000.00 2,000,000.00 . EXPENDITURES: Personal Services (PS) 37,500,000.00 38,700,000.00 39,765,000.00 Maintenance and Other Operating Expenses (MOOE) 14,085,000.00 15,050,000.00 15,600,000.00 Financial Expenses 400,000.00 450,000.00 520,000.00 Capital Outlay (CO) 2,000,000.00 7,000,000.00 4,000,000.00 Special Purpose Appropriations 20% Development Fund 14,000,000.00 14,600,000.00 15,000,000.00 5% Local Disaster Risk Reduction Management Fund 3,615,000.00 3,780,000.00 3,895,000.00 Aid to Barangays (20 Barangays) 20,000.00 20,000.00 20,000.00 Appropriation for Debt Service 1,150,000.00 Advances to Local Economic Enterprise 800,000.00 1,000,000.00 1,200,000.00 Total 72,420,000.00 80,600,000.00 81,150,000.00
ASSUMPTIONS: 1. The Municipality of Siabatu is a 4 th class LGU. 2. Total appropriations for the budget year (FY 2018) is equal to total estimated revenues: • • PS = 39,765,000.00 • MOOE = 15,600,000.00 • Financial Expenses = 520,000.00 • Capital Outlay = 4,000,000.00 • Debt service = 1,150,000.00 Terminal Leave Benefits = 500,000.00
Income and Expenses per object of expenditures account code are as follows: Income Basic RPT – 4 01 02 040 Permit Fees – 4 02 01 010 Receipts from Market – 4 02 02 140 Internal Revenue Allotment (IRA) - 4 03 01 010 Grants and Donations (Cash) - 4 04 02 010 Gains on Sale of Assets – 4 05 01 050 Loans Payable (Domestic) - 2 01 02 040
Personal Services (PS) Salaries and Wages (regular) – 5 01 01 010 PERA – 5 01 02 010 Representation Allowance – 5 01 02 020 Transportation Allowance – 5 -1 02 030 Clothing Allowance – 5 01 02 040 Mid-Year Bonus – 5 01 02 990 Year-End Bonus – 5 01 02 140 Cash Gift – 5 01 02 150 RLIP – 5 01 03 010 Pag-IBIG Contributions – 5 01 03 020 Philhealth Contributions – 5 01 03 030 ECC Contributions – 5 01 03 040 Terminal Leave Benefits – 5 01 04 030 Other Personnel Benefits – 5 01 04 990
Maintenance and Other Operating Expenses (MOOE) Traveling Expenses – 5 02 01 010 Office Supplies – 5 02 03 02 010 Training Expenses – 5 02 03 010 Electricity Expenses – 5 02 04 010 Water Expenses – 5 02 04 020 Telephone Expenses – 5 02 05 020 Internet Subscription Expenses – 5 02 05 030 Repairs & Maintenance of – Transportation Equipment – 5 02 13 060 Other MOOE – 5 02 99 990
Financial Expenses Bank Charges – 5 03 01 020 Interest Expenses – 5 03 01 040 Capital Outlays Information and Communication Technology Equipment – 1 07 05 030 Buildings – 1 07 04 010
Office: Local Chief Executive Mandate/Function: 1) Exercise general supervision and control over all programs, projects, services and activities of the LGU; 2) Enforce all laws and ordinance relative to the of the LGU and the exercise of the appropriate corporate powers; 3) Ensure the delivery of basic services and the provision of adequate facilities. Program: Executive Governance Program MFO: Executive Governance Services Performance Output/Indicator : 1) Percentage of programs/activities/projects (PPAs) fully implemented within the prescribed schedule; 2) Percentage of policies and ordinances fully enforced; 3) Percentage of services delivered rated at least satisfactory by clients. AIP Code: Executive Governance Program – 1000-001-3-1-01-001-001-001
INSTRUCTIONS: 1. Compute for the following items and provide the exact amount for FY 2018 20 % Development Fund 5% Local Disaster Risk Reduction Management Fund (LDRRMF) Aids to Barangays 2. Prepare LBP Form No. 1 ( totals only per object of expenditure for Expenditures portion), LBP Form No. 2a ( for Debt Service only) and LBP Form No. 6 (leave blanks the items that has no available data) 3. Use the answer sheets provided
WORKSHOP OUTPUTS Accomplished LBP Forms Budget Operations Manual for Local Government Units, 2016 Edition
LBP Form No. 1 BUDGET OF EXPENDITURES AND SOURCES OF FINANCING LGU: Municipality of Siabatu GENERAL FUND CURRENT YEAR APPRORPRIATION SECOND INCOME PAST YEAR FIRST SEMESTER SEMESTER BUDGET YEAR PARTICULARS ACCOUNT CODE CLASSIFICATION (ACTUAL) (ACTUAL) (ESTIMATE) TOTAL (PROPOSED) 1 2 3 4 5 6 7 8 I. Beginning Cash Balance II. Receipts A. Local Sources 1. Tax Revenue Basic RPT 4 01 02 040 1,000,000.00 1,100,000.00 1,200,000.00 2. Non-Tax Revenue Permit Fees 4 02 01 010 700,000.00 800,000.00 900,000.00 Receipts from Economic Enterprise 4 02 02 140 600,000.00 700,000.00 800,000.00 B. External Sources 1. Internal Revenue Allotment 4 03 01 010 70,000,000.00 73,000,000.00 75,000,000.00 2. Grants & Donations (Cash) 4 04 02 010 100,000.00 - 200,000.00 C. Non-Income Receipts 1. Capital Investments Receipts Gains on Sale of Assets 4 05 01 050 20,000.00 - 50,000.00 2. Receipts from Loans and Borrowings Loan from LBP 2 01 02 040 5,000,000.00 3,000,000.00 Total Receipts 72,420,000.00 80,600,000.00 81,150,000.00
CURRENT YEAR APPRORPRIATION SECOND INCOME FIRST SEMESTER SEMESTER BUDGET YEAR PARTICULARS ACCOUNT CODE CLASSIFICATION PAST YEAR (ACTUAL) (ACTUAL) (ESTIMATE) TOTAL (PROPOSED) III. Expenditures Personal Services 37,500,000.00 38,700,000.00 39,765,000.00 Salaries and Wages (Regular) 5 01 01 010 PERA 5 01 02 010 Representation Allowance 5 01 02 020 Transportation Allowance 5 01 02 030 Clothing Allowance 5 01 02 040 Mid-year Bonus 5 01 02 990 Year-End Bonus 5 01 02 140 Cash Gift 5 01 02 150 RLIP 5 01 03 010 Pag-Ibig Contributions 5 01 03 020 Philhealth Contributions 5 01 03 030 ECC Contributions 5 01 03 040 Terminal Leave Benefits 5 01 04 030 Other Personnel Benefits 5 01 04 990 Maintenance & Other Operating Expenses 14,085,000.00 15,050,000.00 15,600,000.00 Traveling Expenses 5 02 01 010 Office Supplies 5 02 02 010 Training Expenses 5 02 03 010 Electricity Expenses 5 02 04 010 Water Exepenses 5 02 04 020 Internet Subscription Expenses 5 02 05 030 Repairs & maintenance - Transportation Equipment 5 02 13 060 Other MOOE 5 02 09 990 Financial Expenses 400,000.00 450,000.00 520,000.00 Bank Charges 5 03 01 020 Interest Expenses 5 03 01 040 Capital Outlays 2,000,000.00 7,000,000.00 4,000,000.00 Information and Communication Technology Equipment 1 07 05 030 Buildings 1 07 04 010 Special Purpose Appropriations 20% Development Fund 14,000,000.00 14,600,000.00 15,000,000.00 5% LDRRMF 3,615,000.00 3,780,000.00 3,895,000.00 Aids to Barangays 20,000.00 20,000.00 20,000.00 Appropriation for Debt service - - 1,150,000.00 Advances to Local Economic Enterprises 800,000.00 1,000,000.00 1,200,000.00 Total Expenditures 72,420,000.00 - - 80,600,000.00 81,150,000.00 IV. Ending Balance - - - - - We hereby certify that the information presented above are true and correct. We further certify that the foregoing estimated receipts are reasonably projected as collectible for Budget Year. ______________ _________________ ______________________________ _______________ Local Treasurer Local Budget Officer Local Planning development Officer Local Accountant Approved: _________________ Local Chief Executive
LBP Form No. 2a PROGRAMMED APPROPRIATION AND OBLIGATION FOR SPECIAL PURPOSE APPORPRIATION LGU: Municipality of Siabato Office: Office of the Mayor CURRENT YEAR PROGRAM/PROJ PAST YEAR BUDGET YEAR AIP REFERENCE CODE SECTOR ECT/ACTIVITY (ACTUAL) ACTUAL ESTIMATE (PROPOSED) 1 2 3 4 5 6 7 1,150,000.00 1000-001-3-1-01-001-001-001 General Public Services Sector Debt Service Prepared By: Reviewed By: Approved: ______________ _________________ _________________ Local Treasurer Local Budget Officer Local Chief Executive
LBP Form No. 6 STATEMENT OF STATUTORY AND CONTRACTUAL OBLIGATIONS AND BUDGETARY REQUIREMENTS CY 2018 LGU: Municipality of Siabatu DESCRIPTION AMOUNT 1 2 1. Statutory and Contractual Obligations 1.2 Terminal Leave 500,000.00 1.2 Debt Service 1,150,000.00 1.3 Employees Compensation and Insurance Premiums 1.4 PhilHealth Contributions 1.5 PAG-IBIG Contributions 1.6 Retirement and Life Insurance Premiums 2. Budgetary Requirements 2.1 20% IRA for Development Fund 15,000,000.00 2.2 5% Local Disaster Risk reduction and Management 3,895,000.00 2.3 Aids to Barangays ( 20 barangays) 20,000.00 TOTAL APPROPRIATIONS 121,200,000.00 Certified Correct: ___________________ ______________________ ______________________________________ Local Budget Officer Local Treasurer Local Planning and Development Coordinator Approved: _______________________ Local Chief Executive
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