ONLINE CLASS REPORT 1

GRADUATE SCHOOL
PROGRAM PHDEM 2213 :
Doctor of Philosophy in
Education Financial Management in
Educational Institutions
DR. ALBERT DE CHAVEZ
Professor

ABRAHAM R. TOM –EN , JR.

Student No. 22-2992-227 “Character Building is Nation Building”
 2

BUDGET
PREPARATION
ABRAHAM R. TOM -EN, JR.
SDO Ilocos Sur
MRS. FE PINCA-IRINCO
SDO Norther Samar “Character Building is Nation Building”
Session Objectives:
At the end of the session, the participants should be able to
understand and implement laws, policies, guidelines and issuances
that relate to budget preparation. Specifically, the session aims to:
1. Explain the concepts, policies, guidelines and issuances on
budget preparation.
2. Relate the processes and flow chart in budget preparation to the
accountability of the head of an office.
3. Reflect on the practices of budget preparation leading to
financial management and accountability.
 ○ INSTRUCTIONS:
Let’s Play ○ Each participant will take
BINGO! turns answering questions
related to finance

○ The game master will give the definition

of a common finance term or word and
each participant will have to give her/his
answer.
Question 1: LETRANG F
It is the role that the school
principal takes in ensuring
resources are accounted for
accurately?
FINANCIAL MANAGEMENT
 Question 2: LETRANG E
It is part of the guidelines on the
Internal Control System and defines
how we should operate in the schools.
(The 4 Es in Fiscal/Financial Management)

Ethical, Economical, Efficient, EFFECTIVE

 Question 3: Sa Letrang E
It is the incurring of liability, the payment
of cash, or the transfer of property for the
purpose of acquiring an asset or service or
settling a loss, when unqualified, the
accrual basis of accounting is assumed.
EXPENDITURE
 Question 4: Sa Letrang A
An authorization issued by the DBM which
allows agencies/offices to incur obligations
up to a specified amount that is within a
legislative appropriation as reflected in the
Advice of Allotment.
ALLOTMENT
 Question 5: Letrang A
An authorization made by law or other
legislative enactments of obligations to be
incurred and allowing payments to be
made with funds of the government under
specified conditions and/or specified
purposes.
APPROPRIATION
 Questions:
1. How do you find the activity?
2. What have you realized from the
activity?
3. How do you look at yourself as a
financial manager? A BUDGET Officer?
The
Budget
Cycle

Preparation
Legislation
Execution
Accountability
Definition of a Budget
❑ A Budget - a financial plan for the coming period, setting
out goals with the allocation of resources needed for the
achievement of those goals.

❑ The Budget Act, 2001 defines the Budget as “the process

by which Government sets levels to the efficiently collect
revenue and allocate the spending of resources among all
sectors to meet national objectives.”

The national budget allocates resources, distributes wealth

and income, and stabilizes the economy.
Budget Development
Legal Bases Underlying Government
Budgeting
❑ The Philippine Constitution establishes the budget policy, fundamental
principles and requirements of the budget process and the budget
calendar, while the details of the budget process are defined in various
laws such as starting from Commonwealth Act No. 246, also known as the
Budget Act of 1937, Republic Act No. 992, which introduced the concept of
performance budgeting, Presidential Decree No. 1177 or the Budget
Reform Decree of 1977.

❑ Book VI of the Administrative Code of 1987 (E.O. No. 292) is the latest
guide and is the one currently being applied and followed. It provides the
governing rules and regulations on National Government budgeting,
specifically, on budget policy and expenditure of expropriated funds.
Legal Basis of Budget Preparation
Upon receipt of the statements of income and
expenditures from the treasurer, the budget
proposals of the heads of the departments and
offices and the estimates of income and budgetary
ceilings from the local finance committee, the local
chief executive shall prepare the executive budget
for the ensuing year in accordance with the
provisions of Title V, Book II of RA 7160) (Section
318, RA No. 7160)
Key Players in Budget Preparation
Local Executive (LCE) – The LCE shall prepare the
executive budget for the ensuing fiscal year upon receipt
of the statements of income and expenditure from the
treasurer, the budget proposals from the heads of various
departments an offices and estimates of revenue and
budgetary ceilings from the Local Finance Committee.
He shall submit said Executive Budget to the Sanggunian
Concerned not later than the 16th of October of the
Current fiscal year (Section 318, RA, No. 7160)
Key Players in Budget Preparation
1. Local Chief Executive
2. Local Finance Committee
3. Local Treasurer
4. Local Budget Officer
5. Local Planning and Development Coordinator
6. Local Accountant
7. Head of Departments and Offices/Heads of Local
Economic Enterprises (LEEs) & Public Utilities (Pus)
8. CSOs and the Private Sector Group
What is Budget Preparation?
❑ It is the first phase of the budget process.
❑ It involves cost estimation per PPA, preparation of
budget proposals, executive review of budget
proposals, and preparation of the LEP and the
Budget Message.
❑ This phase starts with the issuance of the Budget
Call, and ends with submission of the Executive
Budget to the Sanggunian on or before October 16
of each year.
Budget Preparation in DepEd
What are the activities or events during Budget Preparation?

❑Budget preparation is the first phase of the

budget process. It covers the formulation of
the overall budget level, the determination
of budgetary priorities and activities, and the
translation of these priorities and activities
into agency budgetary estimates.
How is the overall budget formulated?
❑ The overall budget level is formulated on the basis of the
projected revenues of the government and a manageable level
of domestic and foreign borrowings, which are in turn
consistent with the macroeconomic assumptions and fiscal
targets set by the Development Budget Coordination
Committee (DBCC).

❑ The fiscal targets are based on macroeconomic assumptions,

and consistent with the fiscal targets, the revenue program,
expenditure program, and the financing program are
formulated and approved by the DBCC. The expenditure
program is the overall obligation budget ceiling.
What is the DBCC?
Development Budget Coordination Committee

The (DBCC) is the highest fiscal policy-making body

composed of the Department of Budget and
Management (DBM) Secretary as Chairman. Among its
members are the Secretary of the Department of
Finance (DOF), the Director-General of the National
Economic and Development Authority (NEDA), the
Governor of the Bangko Sentral ng Pilipinas (BSP), and
a representative from the Office of the President (OP).
Composition and Responsibility of
the DBCC? (Development Budget Coordination Committee)
DBCC

DBM DOF NEDA OP BSP

Responsible Responsible Responsible

Responsible Responsible
for Resource for Resource for
for Overall for
Allocation Generation Monetary
and and Debt
Macroecon Presidential
omic Policy Measures
Management Management Oversight
and Policies

DBCC was created on 14 May 1970 through Executive Order No. 232
Functions of the DBCC
DBCC was created on 14 May 1970 through Executive Order No. 232
❑ Reviewing and approving macroeconomic targets, revenue
projections, and borrowing level,
❑ Aggregate budget level and expenditure priorities of the
government
❑ Recommends to the President and the Cabinet the consolidated
public sector financial position and the national government
fiscal program.
❑ Assess the reliability of revenue estimates;
❑ Recommend appropriate tax or other revenue measures and the
extent and type of the borrowings; and
❑ Conducts periodic reviews and general examination of costs,
accomplishments and performance standards applied in
undertaking development projects
DBCC Macroeconomic Assumptions
What are macroeconomic assumptions?
Macroeconomic assumptions serve as a guide to
government planners on the anticipated
performance of the economy, taking into
consideration the actual performance in previous
years. These consist of:
1. Gross National Product (GNP) Real Growth Rate;
2. Gross Domestic Product (GDP) Real Growth Rate;
3. Inflation Rate; and
4. Foreign Exchange Rate (P/$).
Fiscal Targets What are Fiscal Targets?

1. Revenue, Disbursement, and

Surplus/Deficit Levels;
2. Percent to Gross Domestic
Product (GDP) – market value
3. Growth rates
The Budget Preparation Flow Chart
INDICATIVE RESPONSIBLE
How is a Budget ACTIVITY
SCHEDULE OFFICIALS

prepared by the ISSUE THE BUDGET CALL JUNE 16

DBM
LCE

government? CONDUCT BUDGET FORUM JUNE 16

DBM LCE/LFC
Department Heads

1) Issuance of circulars PREPARE AND SUBMIT

BUDGET PROPOSALS
JULY 15
Line Department or Agency
Department Heads

2) Consultations on
proposals received CONDUCT BUDGET HEARING AUGUST 15 LCE/LFC

3) Allocation of PREPARE THE EXECUTIVE

BUDGET
OCTOBER 10 LCE/LFC

revenues
4) Pre-Budget meetings
PREPARE THE BUDGET
OCTOBER 10 LCE/LFC
MESSAGE

5) Budget printing SUBMIT EXECUTIVE BUDGET

OCTOBER 16 LCE
TO THE SANGGUNIANG
The Budget Preparation Flow Chart
Issuance of Conduct
Conduct
the Budget Planning
Budget Forum
Call Workshop

Submission of Technical Approval of

Proposed Budget Agency
Budget Hearing Budgets

Preparation and
Information Approval of the Submission to
National
Dissemination Expenditure Congress
Program
What is the National Expenditure Program
(NEP)?
 The NEP is the budget document submitted by the President to the
Congress of the Philippines. It presents the President’s Budget
Proposal by Department/Agency and by Special Purpose Funds.
The expenditure items are structured by program, activity, and
project, grouped into Major Final Output of the Agency, by
expense class (personnel services, maintenance, and other
operating expenses, financial expenses, and capital outlay), in a
three-year period: actual for the past year, and estimate for the
current and budget years. The NEP is the basis of the General
Appropriations Bill and eventually, the General Appropriations
Act. Starting FY 2013 the agency’s performance indicators as well
as performance targets and accomplishments were presented in
the NEP.
Other Budget Documents Submitted to
Congress: Budget of Expenditures and
1
Sources of Financing (BESF)

2 Staffing Summary

Details of Selected Programs

3
and Projects,

4 President’s Budget Message

R.A. 9184 In support of the NEP submitted by the
Government Procurement
Reform Act President to Congress.
BUDGET PREPARATION AND PROPOSAL
(An Illustrative Example)
CY 2024
MAINTENANCE
AND OTHER
OPERATING
DO 008. s. 2019 EXPENSES
PARAMETERS-DBM
APPROVED
Sample Computation for MOOE
(Elementary)
WHERE: USING THE PARAMETERS:
ENROLMENT = 650 FIXED COST P 117,600.00
TEACHERS = 26 ENROLMENT (P300 X 650) 195,000.00
TEACHERS (P6,000 X 26) 156,000.00
CLASSROOMS = 26 CLASSROOMS (P4,500 X 26) 117,000.00
GRADUATION = 116 GRADUATION (P376 X 116) 43,616.00
TOTAL P 629,216.00
Rounded Off : 629,000.00
1. Whichever is Higher( Boncodin vs Previous Year’s MOOE) P 637,000.00
2. 3% On Indexed Items (637,000 x 60% X 3%) 11,466.00
P 648,466.00
3. TOTAL TIER 1 FY 2024 (rounded off) 648,000.00
Sample Computation for MOOE
(Junior High School)
USING THE PARAMETERS:
WHERE: FIXED COST P 172,800.00
ENROLMENT = 650 ENROLMENT (P480 X 650) 312,000.00
TEACHERS = 26 TEACHERS (P9,600 X 26) 249,600.00
CLASSROOMS = 26 CLASSROOMS (P7,200X 26) 187,200.00
GRADUATION (P300 X 116) 34,800.00
GRADUATION = 116 TOTAL P 956,400.00
GAA 2023 P 637,000.00 Rounded Off 956,000.00
Additional Parameters
1. Whichever is Higher( Boncodin vs Previous Year’s MOOE) P956,000.00
2. 3% On Indexed Items (956,000 x 60% X 3%) 17,208.00
P 973,208.00
TOTAL TIER 1 FY 2024 (rounded off) 973,000.00
Sample Computation for MOOE
(Senior High School)
WHERE:
ENROLMENT = 192
Teachers = 12
USING THE PARAMETERS:
USING THE PARAMETERS:
ENROLMENT (P 1,640 X 192) 314,880.00
TOTAL P 314,880.00

GAA 2022 P 506,000.00 Rounded Off 315,000.00

Additional Parameters
1. Whichever is Higher( Boncodin vs Previous Year’s MOOE) P 506,000.00
2. 3% On Indexed Items (506,000.00 x 60% X 3%) 9,108.00
P 515,108.00
3. TOTAL TIER 1 FY 2024 (rounded off 515,000.00)
SCHOOL MOOE COMPUTATION BP FORM 201B
ENROLMENT = 353 SCHOOL: SANTIAGO SOUTH CENTRAL SCHOOL
MOOE AMOUNT
TEACHERS = 14 5020101000 - Traveling Expenses – Local 18,000.00
CLASSROOMS = 19 5020201002
5020301002
- Training Expenses
- Office Supplies Expenses
30,350.00
20,000.00
GRADUATION = 44 5020302000
5020307000
- Accountable Forms Expenses
- Drugs and Medicines Expenses
570.00
1,500.00
5020308000 - Medical Dental and Laboratory Supplies Expenses 2,500.00
5020309000 -Fuel, oil & Lubricants Expenses
5020321002 - Semi-expendable Office Equipment
COMPUTATION USING THE PARAMETERS: 5020321003
5020321007
- Semi-expendable ICT Equipment
- Semi-expendable Communication Equipment
FIXED COST P 117,600.00 5020321008
5020321010
- Semi-expendable DRRM Equipment
- Semi-expendable Medical Equipment
ENROLMENT (P300 X 353) 105,900.00 5020322001
5020321099
- Semi-expendable Furniture and Fixtures
- Semi-expendable Other Machinery & Equipment
8,000.00

TEACHERS (P6,000 X 14) 84,000.00 5020399000

5020401000
- Other Supplies and Materials Expenses
- Water Expenses
64,197.00

CLASSROOMS (P4,500 X 19) 85,500.00 5020402000

5020501000
- Electricity Expenses
- Postage and Courier Expenses
222,000.00

GRADUATION (P376 X 44) 16,544.00 5020502001

5020502002
- Mobile
- Landline
18,000.00

TOTAL P 409,544.00 5020503000

5021202000
- Internet Subscription Expenses
- Janitorial Services
26,508.00

5021203000 - Security Services

Rounded Off: 410,000.00 (457,000.00 Last CY) 5021303004 - R&M - Water Supply System 15,000.00
5021304002 - R&M - School Buildings 30,000.00
5021305003 - R&M - ICT Equipment 5,000.00
5021305099 - R&M - Other Machinery and Equipment
COMPUTATION USING THE HIGHER ALLOCATION: 5021307000 - R&M - Furniture & Fixtures
5021502000 - Fidelity Bond Premiums 3,375.00
Higher (last Year) 457,000.00 x 60% x 3%) 5021503000 - Insurance Expenses

=(60%)=274,200.00 + (3%) 8,226.00 = 465,226.00 GRAND TOTAL - MOOE 465,000.00

TIER FY 2024: 465,000.00 Prepared by: ABRAHAM R. TOM-EN, JR.

BP FORM 201A ( Based on PSIPOP as of December 31, 2022
using 4th Trance SSLV)

SCHOOL: SANTIAGO SOUTH CENTRAL SCHOOL

PS CODES AMOUNT
5010101001 - Basic Salary - Civilian ( Total Annual Salary filled positions-updated SG/step)
5010102000 - Salaries and Wages - Casual/Contractual ( for DILI NHS & Pagangpang NHS)
5010102000 - Salaries and Wages - Substitute ( 10% of teaching positions) x T1 salary
5010201000 - PERA - Civilian (P 2,000x 12mos.x total filled positions)
5010204001 - Clothing/ Uniform Allowance- Civilian ( P6,000 x total filled positions)
5010214001 - Year-end Bonus - Civilian ( 1 month salary of filled positions)
5010215001 - Cash Gift - Civilian ( P5,000 x total filled positions)
5010299012 - Productivity Enhancement Incentives ( P5,000 x total Filled positions)
5010299036 - Mid-year Bonus ( 1 month salary of filled positions)
5010302001 - Pag-IBIG - Civilian (P100 x 12 mos. X total filled positions/2)
5010303001 - PhilHealth - Civilian ( Actual salary x 4.5% x 12 mos./ 2 )
5010304001 - ECIP - Civilian ( P100x 12 mos. X total filled positions/2)

TOTAL PS -
5010301000 - Retirement and Life Insurance Premium (RLIP) ( Total Annual Salary x 12%)

TOTAL PS & RLIP -

Prepared by: ABRAHAM R. TOM-EN, JR
BP FORM 201D

SCHOOL: SANTIAGO SOUTH CS

CAPITAL OUTLAY Quantity Unit Cost Total Costs JUSTIFICATION
5060401001 - Land
5060404001 - Buildings
5060404002 - School Buildings
5060405002 - Office Equipment
5060405003 - Information and
Communication Technology Equipment
5060405009 - Disaster Response and
Rescue Equipment
5060405013 - Sports Equipment
5060406001 - Motor Vehicles
5060407001 - Furniture and Fixtures

TOTAL COST
-
Prepared by: ABRAHAM R. TOM-EN, JR.
Process in the Preparation of the Budget
• Budget estimates are prepared by the Ministry of Finance
1
• Based on the estimated income and expenditure of various
2 ministries and departments, sent to the Ministry of Finance

• Prepares Budget
3
• Presented by the finance minister to the cabinet for
4 approval

• Budget is ready for presentation in the parliament

5
 The Budget Process
President submits House and Senate House and Senate
budget to mark up and pass conference the
congress budget budget resolution

Spending bills OCTOBER 1

passed by Reconcialliation/
Appropriations New Fiscal Year
Authorization
Committees begins
 40

Maraming Salamat!
THANK YOU!
Agyaman!
God Bless!!!

“Character Building is Nation Building”