BUDGET OVERVIEW (Budget Officer)

FMOM TRAINING
MODULE ON
BUDGET PROCESSES
DEPARTMENT OF EDUCATION 1
Objectives
 To understand the functions of the budget office

and roles of the budget officers and staff on the basic
concepts and fundamentals of financial management
and the budget process;
 To ensure uniform application of and compliance

with existing budgeting policies, rules and regulations
(including recommendatory sanctions for non-
compliance);
Financial Management Operations Manual 2

Objectives
 To be familiarized with the various budgetary forms

as prescribed in the annual Budget Call, Government
Accounting Manual (GAM), and other COA and DBM
issuances;
 To identify technical assistance/support requirement

of budget units in the SDOs and SUs;

Learning Expectations
By the end of this session, participants should be able

to:
- explain the nature and functions of the budget office in

a public entity;
- distinguish and describe the responsibilities and

accountabilities of the budget officers and staff in the
SDOs in relation to the entire budget process; and
- gain knowledge on how to apply and comply with

existing budgeting policies, rules and regulations for an
effective and efficient management of budget
allocations.
Budget Preparation Phase at the Schools
Division Office(SDO)
Schools Division Office - Budget Officer

Budget Preparation Phase
Schools Division Office
 Budget preparation is the first phase of the

budget process. It covers the formulation of the
budget level, determination of budgetary
priorities and activities, and the translation of
these priorities and activities into budgetary
estimates.

DepEd RO/DO/IU Planning & Budgeting Process
A week following the issuance of the Budget Call by

DBM, DepEd Central Office issues the necessary
internal guidelines in the formulation of DepEd Budget
Proposal indicating thereof, among others, the
parameters, norms and standards to be used (i.e.
policy direction, budget ceiling, and others) as guide to
all Central (CO)/Regional (ROs)/ Schools Division
Offices (SDO), and Implementing Units (IUs).
 Simultaneously, the Planning Service informs the

Regional Planning Team to conduct their operational
planning and the situational analysis of SU/IU plans
and targets.
DepEd RO/DO/IU Planning & Budgeting Process
- Situational analysis
- Identification of strategies
- Review of programs, activities and projects (P/A/Ps)
- Estimation of resources
- Review of the plans submitted by the schools, and subsequent

consolidation and submission to the RO concerned

DepEd RO/DO/IU Budget Preparation Process
Central Office (CO) issues Regional Offices

internal budget preparation (ROs) send out Engagement of
guidelines to all Memorandum to stakeholders
CO/RO/SDO/IUs subordinate units
ROs review and Budget preparation

consolidate budget SDOs and SUs prepare activities being
proposals and their budget estimates conducted by the
submit to CO ROs
Final budget proposal should be encoded

and submitted thru the Online Submission
CO reviews and of Budget Proposal System (OSBPS) of the
consolidates CO and DBM. Hard copies of duly accomplished BP
Regional Proposals
and subsequently Forms shall be submitted to Budget
submit to DBM Division, CO.

Budget Preparation Forms for submission by the RO/DO/IU
BP 100 – Statement of Revenues (including sub-

tables)
BP 201 – Summary of Obligations and Proposed

Programs/Projects (including sub-tables)
BP 204 – Staffing Summary of Non-Permanent

Positions
BP 205 – List of Retirees

Budget Authorization/
Legislation Phase
 This is the second phase of the budget process. It

involves the review/deliberation by Congress of the
National Expenditure Program (NEP) as submitted by
the President, and its subsequent enactment into law.
In its review, Congress is guided by the provision of
law that it cannot increase the budget submitted to
them by the President. In implementing this provision
of law, specific activities may be increased but to be
offset by a corresponding decrease in other activities,
provided that the overall expenditure level is not
increased.

Authorization/Legislation
House Senate
Deliberation Deliberation
Bicameral
Deliberation
resident’s Enactment and Veto Ratification

Enrollment
and

Legislation Phase
Activity Responsible Unit/Officer

Receive budget submitted by the Senate President and Speaker
President of the House of Representatives
Review and evaluate budget Committee on Appropriations of

the House of Representatives
(HoR) & Finance Committee of
the Senate
Draft appropriations bill Committee on Appropriations of
the HoR
Conduct budget hearings with -do-

agencies and DBM as resource
persons

Legislation Phase
Activities Responsible Unit/Officer

Floor deliberations and approval HoR
Submission to Senate -do-

Floor deliberations and approval Senate
Joint Committee (Bicameral HoR and Senate
Committee) deliberation and Representatives
approval
Submission to President for Joint (Bicameral) Committee
signature
Final Approval President

Budget Authorization
Legislation Phase
What if the President does not agree to the Bill approved by both Houses of Congress?
The President can exercise his/her veto power, to wit:
• Renders the provision

Direct Veto inoperative, as if not written in
the GAA
Conditional • Specifies conditions in the

Implementation implementation of a provision
• Requires the issuance of

guidelines for the proper
implementation of a provision
General • Explains how a provision

Observation will be implemented during
the budget year
Budget Authorization
Legislation Phase
What happens if the GAA is not passed?
On the basis of the

Constitutional provision, the
budget of the previous year shall
be deemed re-enacted.

Budget Execution/
Implementation Phase
RO/DO/IU Budget Execution Process
 This is the third phase of the budget

process. Obligational and disbursement
authorities are being issued by DBM to
the departments and agencies in order
that implementation of the programs,
activities and projects authorized in the
GAA takes place. As basis for the release
of such authorities, DBM requires
agencies to submit Budget Execution
Documents (BEDs), through a
DBM issuance.
Execution/Implementation
Release
And Program Budget Allotment
Guidelines Documents Release Programming
Execution and Cash
Allotment
Release
Disbursements Incurrence
/Payments of
Obligations
Budget Execution
Budget Execution Documents (BEDs)
1. BED 1
2. BED 2
3. BED 3
4. BED 4

Budget Execution/
Purpose of Budget Execution Documents
• To ensure availability of funds for critical

programs/activities/projects, consistent with
the physical and financial plans/targets/
schedules as submitted.
• To set the benchmark in agency performance

that shall be used in determining the
achievement of objectives and targets in the
delivery of services

Budget Execution/
 Deadline for the submission of BEDs to DBM – not later

than November 30
 DBM consultation, consolidation and evaluation –
December 1 to 15
 DBM finalization and agency confirmation - December 16
to 30
 Formulation/approval of DBCC Disbursement Program –
January 1 to 15
 Notification to agency of approved MDP and posting of the
same in the DBM and agency websites
 Submission of revised MDP – not later than May 31
Note: In case of incomplete/non-submission of MDP by November

30, the DBM shall formulate/determine the level and schedule
of agency cash program

Budget Execution/
Obligational Authorities:
a) General Appropriations Act as Release

Document (GAARD);
b) General Allotment Release Order (GARO);
c) Special Allotment Release Order (SARO);
d) Sub-Allotment Release Order (Sub-ARO)

Budget Execution/
Disbursement Authorities:
a) Notice of Cash Allocation (NCA) = for regular

operations;
b) Non-Cash Availment Authority (NCAA) = for

loans in kind;
c) Cash Disbursement Ceiling (CDC) = for foreign

post’s expenses.

Budget Execution/
What is the first thing to do upon receipt of the Allotment?
RAPAL RAOD
PS PS
MOOE MOOE
CO CO
 Registry of Appropriations and Allotments (RAPAL)
 Registry of Allotments, Obligations and Disbursements

(RAOD)
Budget Execution/
Flow Chart of Obligational Authority (OA)
Responsible Officer Activity
Receives GAARD, SAROs, GAROs &

1) Budget Unit Staff Sub-AROs from DBM, and DepEd
CO and RO, as the case may be.
Records in the logbook and forwards
the OAs to Budget Staff in-charge of
recording in the Registries.
Disaggregates & records the GAARD,

2) Budget Officer SAROs, GAROs & Sub-AROs in the
RAPAL and RAOD under its
corresponding Allotment Class.
Forward a copy to Accounting Unit for
reference.
Budget Execution/
Budget Office Certifies Availability of Allotment in the ORS
Requesting Office Budget Unit/Division
Analyzes and reviews request

Prepares ORS and attaches
supporting documents
Verifies availability of allotments
Head of Requesting Office certifies
that the charges to appropriations/ Processes and completes the
allotment is necessary and lawful, entries (i.e. UACs) in the ORS
and is under his/her direct
supervision, and supporting
documents are valid, proper and Posts in the Registry of Allotment
legal and Obligation (RAO)
Forwards to Budget Budget Officer certifies that appro/

Unit/Division for certification allotment is available & obligated
as to availability of allotment for the purpose
Budget Execution/
Accomplishing ORS Form:
 Section C of the ORS is a subsidiary record

to monitor the status of a particular obligation as
to payment which shall be maintained by the
Budget Unit. It contains the original amount of
obligation incurred, amount payable, amount
actually paid and remaining balance (due and
not yet due).

Budget Execution/
Procedure in adjusting obligations incurred
Notice of Obligation Request

Status Adjustment - (NORSA)

Budget Execution/
Registry of Allotments, Obligations and Disbursements (RAOD)
a. RAOD-PS.
b. RAOD-MOOE
c. RAOD-FE
d. RAOD-CO

Budget Execution/
Registries to be maintained and procedures
Registry of Revenue and Other

Receipts (RROR)

Budget Execution/
Flow Chart of Approved Budget (AB) – Off Budget.
Responsible Officer Activity
Receives approved budget. Records

1) Budget Staff in the logbook and forwards the AB to
Budget Staff in-charge in recording it
in the RBUDs.
Records the AB in the RBUDs.

2) Budget Officer Forwards a copy to Accounting Unit
for reference.

Budget Execution/
Budget Utilization Request Slip (BURS) Flowchart
Requesting Office prepares Budget Office analyzes/reviews

BURS and attaches supporting request, if valid and proper
documents
Certification by Requesting Verifies availability of Budget

Office/Authorized Representative
that charges to the AB are legal,
proper, and necessary under Processes and completes the
his/her direct supervision entries (i.e. UACs) in the BURS
Posts in the Registry of Budget Util.

Forwards to Budget And Disbursement (RBUD)
Unit/Division for certification of
availability of Budget.
Head of Budget Div./Unit certifies
Budget Office receives that budget is available for
accomplished BURS utilization
Budget Execution/
Recording Utilization of Budget
- Registry of Budget, Utilization and Disbursement -

Personnel Service (RBUD-PS)
- Registry of Budget, Utilization and Disbursement -

Maintenance & Other Operating Expenses (RBUD-
MOOE)

Budget Execution/
Recording Utilization of Budget
- Registry of Budget, Utilization and Disbursements –

Financial Expense (RBUD-FE)
- Registry of Budget, Utilization and Disbursements -

Capital Outlay (RBUD-CO)

Budget Execution/
Procedure for Realignment:
For change from one allotment class to another, the

approving authority is DBM:
1.The Department/Agency submits request to DBM indicating

what is to be realigned, properly supported with the required
documents; and
2. DBM evaluates and approves if request merits approval, then

issue the necessary document authorizing the realignment.

Budget Execution/
Procedure for Realignment:
 For changes in object of expenditure and/or project modification, the

approving authority is the Agency Head and the procedure is as follows:
1. Realignment Advice Form (RAF) shall be filled up by the requesting

unit indicating the changes requested;
2. Head of the Budget Division recommends and signs the Form;
3. Agency Heads approves and signs the Form;
4. Budget Division registers the changes in the appropriate RAO.
5. Accounting Division includes in the SAAODB as adjustment

(disbursement portion); and
6. Planning Service reflects in the Physical Report of Operations.

Budget Execution/
Required Supporting Documents for “Request for Realignment”
1. Work and Financial Plan (WFP)
2. Justification of Request
3. Certificate of Savings by the Agency/RO/DO/IU Budget Officer

or designate
4. Certificate of Agency/RO/DO/IU head of priorities for

realignment of programs and projects; and
5. Confirmation of concerned representative for realignment or relocation

of infrastructure and other Capital Outlays.

Budget Accountability/
Reporting Phase
Fourth and final phase of the budget

process. It involves the reporting of
physical accomplishments and funds
utilization of agencies. Agencies report
how much of the funds released to them
were utilized.

Accountability/Reporting
Performance Budget Quarterly

and Outcomes
Target Reports
Accountabilit Performance
Agency Review
y
Year End
Performance
Budget Assessment
Review

Reporting Phase
Importance of Accountability Reporting
- For management consumption
- Assessment of agency performance (physical

and financial)
- Compliance to requirements of oversight

agencies

Reporting Phase
For decision-making
– Receipt, utilization and available balances
• Allotment
• Cash Allocation

Reporting Phase
Assessment of Agency Performance - The result of which serves as basis of
the Department of Budget and Management (DBM) in:
Releasing unreleased appropriations under the “For Later Release

of the Not Needing Clearance Portion” of the approved GAARD.
Additional Release from Special Purpose Funds (SPFs)
Approval of requests for realignment of funds
Withdrawal of previously released allotment
Revision of disbursement program
Revision of targets

Reporting Phase
DepED Order No. 46, s. 2004 dated July

29, 2004, “Amendment to DepED Order
No. 37, s. 2004:
– SDOs to consolidate reports of SDO and IUs in

the Division, hence, all IUs shall furnish the SDOs
concerned with copies of their reports
– ROs to consolidate the submissions of all SDOs in
the Region together with the reports of the
Regional Office Proper (ROP)
– CO to consolidate all accountability reports for the
entire DepED

Reporting Phase
 Joint Circular No. 2014-1, Par. 5.0

Responsibilities:
5.1 The BFARs shall be prepared and
certified correct by the following agency
officers:
5.1.1 Budget Officer/Head of Budget
Unit – for the portion of reports pertaining
to appropriation, allotments, obligations,
unpaid obligations-not yet due and
demandable, unreleased appropriation
and unobligated allotments.
Reporting Phase
5.2 “The Head of each OU, office or agency

shall be responsible for the timely
submission of the BFARs prescribed in
DBM-COA Joint Circular No. 2014-1 to the
DBM offices concerned and to the COA-
Audit Team Leader and the Government
Accountancy Sector (GAS).”
(Ref. DBM/COA Joint Circular No. 2014-1)

Reporting Phase
Budget & Financial Accountability Reports with Timelines
 For Submission on a Quarterly Basis
1. SAAODB – FAR No. 1

2. SAAODBOE – FAR No. 1.A
3. List of Allotments/Sub-Allotments - FAR No. 1.B
4. SABUDB – FAR No. 2
5. SABUDBOE – FAR No. 2.A
6. QRROR – FAR No. 5 –Accounting Report
 On or before 30th day following the end of the year – ADDO – FAR No. 3 – Budget
Division & Accounting Division
 On or before 30th day of the following month covered – MRD – FAR No. 4 –
Accounting Division
 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

Reporting Phase
Flowchart on the Submission of Monthly Accountability Reports
DEPARTMENT OF EDUCATION
Secondary School Schools

Implementing Unit Division Office Regional Office Central Office
SDO to RO to consolidate
Prepares the consolidate reports of RO CO to consolidate
required reports of SDO Proper and SDOs reports of Central
accountability Proper and IUs in and submits and Regional Offices
reports and the Division and simultaneously to
2nd day 5th day of and submits to
submits to the submits to the the DepEd Central
of the the
Office and DBM
7th day oversight agencies
Schools Division following DepEd Regional following of the
month month RO following
Office concerned Office
month
7th day of 10th

the DBM-RO day of the DBM-CO
following following
month month

Reporting Phase
Prep. of the Statement of Comparison of Budget and Actual Amounts (SCBAA)
First Step
Budget Staff posts all data on budgeted and actual amount of

revenue, appro., allotments, obligations and disbursements/
utilizations in the appropriate columns of the SCBAA Form.
Second Step
Signature on the Certified Correct portion by the Head of the Budget
Division / Unit and forward the same (2 copies) to the Accounting Division
Third Step
Accounting Division, upon verification, shall furnished Budget Division with

a copy of the duly signed SCBAA.

THANK YOU!

BUDGET OVERVIEW (Budget Officer)

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FMOM TRAINING

 To understand the functions of the budget office

 To ensure uniform application of and compliance

Financial Management Operations Manual 2

 To be familiarized with the various budgetary forms

 To identify technical assistance/support requirement

Financial Management Operations Manual 3

By the end of this session, participants should be able

- explain the nature and functions of the budget office in

- distinguish and describe the responsibilities and

- gain knowledge on how to apply and comply with

Financial Management Operations Manual 7

 Budget preparation is the first phase of the

Financial Management Operations Manual 8

A week following the issuance of the Budget Call by

 Simultaneously, the Planning Service informs the

- Review of programs, activities and projects (P/A/Ps)

- Review of the plans submitted by the schools, and subsequent

Financial Management Operations Manual 10

Central Office (CO) issues Regional Offices

ROs review and Budget preparation

Final budget proposal should be encoded

Financial Management Operations Manual 11

BP 100 – Statement of Revenues (including sub-

BP 201 – Summary of Obligations and Proposed

BP 204 – Staffing Summary of Non-Permanent

BP 205 – List of Retirees

Financial Management Operations Manual 12

 This is the second phase of the budget process. It

Financial Management Operations Manual 14

resident’s Enactment and Veto Ratification

Financial Management Operations Manual 15

Activity Responsible Unit/Officer

Review and evaluate budget Committee on Appropriations of

Conduct budget hearings with -do-

Financial Management Operations Manual 16

Activities Responsible Unit/Officer

Submission to Senate -do-

Financial Management Operations Manual 17

The President can exercise his/her veto power, to wit:

• Renders the provision

Conditional • Specifies conditions in the

• Requires the issuance of

General • Explains how a provision

On the basis of the

Financial Management Operations Manual 19

 This is the third phase of the budget

Financial Management Operations Manual 23

• To ensure availability of funds for critical

• To set the benchmark in agency performance

Financial Management Operations Manual 24

 Deadline for the submission of BEDs to DBM – not later

Note: In case of incomplete/non-submission of MDP by November

Financial Management Operations Manual 25

a) General Appropriations Act as Release

b) General Allotment Release Order (GARO);

c) Special Allotment Release Order (SARO);

d) Sub-Allotment Release Order (Sub-ARO)

Financial Management Operations Manual 26

a) Notice of Cash Allocation (NCA) = for regular

b) Non-Cash Availment Authority (NCAA) = for

c) Cash Disbursement Ceiling (CDC) = for foreign

Financial Management Operations Manual 27

 Registry of Appropriations and Allotments (RAPAL)