LORRAINE C.

JARIOL MPA-LGA 1
Course Title: PALGA 701 | Program and Project Dev. and Implementation
Professor: Debie T. Torres, JD, MPA, Ph.D., CESE

REACTION PAPER NO. 8

BUDGETING AND MANAGEMENT OF FINANCES

The implementation of a society's programs and projects and the usage

of those programs and projects to improve the lives of the community inside it
are two ways to measure the economy's growth. This report can be
summarized in two; (1) Project budget management, its importance,
budgeting procedures, and budget tracking and reporting were all covered in
the presentation budgeting and managing program and project finances with
the explicit intention of teaching the audience; and (2) local
government’s financial operations.

The activity of controlling and overseeing the project's financial

resources is known as project budget management. It is one of the elements
that will influence the success of a project or program. Budget maintenance
entails more than just staying within or exceeding it. Determining which
activities should receive money initially and in what manner is crucial given
the range of activities an organization engages in (Lucco, 2022). Two more
key elements in the budgeting process are tracking and reporting. A
monitoring system is necessary to keep track of all the records for that
particular program or project.

According to Barclay and Bryson (2015), the project not only serves as a
catalyst for change but also aids in the promotion of sustainable development.
Implementation of the project follows the process, and each phase has a
distinct purpose and function. In relation to this, the three variables of budget,
time, and project quality can be used to assess the project's success. Every
 LORRAINE C. JARIOL MPA-LGA 1
Course Title: PALGA 701 | Program and Project Dev. and Implementation
Professor: Debie T. Torres, JD, MPA, Ph.D., CESE
project's foundation is made up of these three elements. Although time and
quality could be equally important throughout a project's life cycle, nothing
can proceed without the required funding, which necessitates a well-planned
and accurately anticipated budget.

Local government financial operations have three stages of the budget

process – preparation, implementation, and accountability. During the
preparation stage, budget proposals from various departments and offices
must be prepared using standard templates to ensure the completeness and
comprehensiveness of budget information, as well as to facilitate the accurate
and timely consolidation of all proposals. The LBO will then compile all budget
proposals before submitting them to the LFC for use in holding budget
hearings. While in the execution stage, it is the fourth phase of the budget
process in local governments that involves the release of allotments, the
recording of actual obligations and disbursements of funds for approved
PPAs, and the delivery of goods and services to target clients in the most
efficient, effective, economical, and ethical way. Finally, accountability, the last
step in the budgeting process, includes keeping track of and analyzing all
financial transactions as well as reporting on the state of those transactions on
a financial basis (Budget Operations Manual for LGUs).

Given the local government's limited financing sources and the

requirement to support all of its programs, projects, and activities, good
budgeting and financial management are also essential. The justification,
objectives, monitoring, and evaluation, as well as the activities indicated by
the output indicator and target, should all be taken into account when
determining the financial requirement for PPAs. The Mandanas-Garcia ruling's
 LORRAINE C. JARIOL MPA-LGA 1
Course Title: PALGA 701 | Program and Project Dev. and Implementation
Professor: Debie T. Torres, JD, MPA, Ph.D., CESE
delegated powers will also result in the establishment of new PPAs,
demanding greater finance.

Budgeting is hardly a brand-new concept to us. We create our own

budgets each day to cover our expenses. Large-scale programs or projects,
however, require careful budgeting and money management. This topic
enlightens us on how organizations, in particular local governments, carry
out, oversee, and present the financial aspects of their programs and projects.

When implementing PPAs, everyone in an organization should be

responsible for planning, managing, and keeping an eye on their finances. The
LBO may only assist them by reviewing and assessing their physical and
financial performance, which must comply with RA 7160's requirements. The
planning team should also take into account the risk indicators during the
proposal stage in order to ensure that their budget is still adequate.

References

Lucco, J.(2022). Project Budget Management: Everything You Need To Know – Clear Point
Strategy

Budget Operations Manual for Local Government Units. Department of Budget and
Management, Edition 16.

Mughal, F. (2017). Exploring the Importance of Community Projects

Barclay, C & Bryson, K. (2015). The Role of Projects in Society. Strategic Project Management
Contemporary Issues and Strategies for Developing Economies, Chapter 1.

Media Attribution

https://www.dbm.gov.ph/wp-content/uploads/Issuances/2021/Local-Budget-
Memorandum/LOCAL-BUDGET-MEMORANDUM-NO-82.pdf