Compute the Total Annual Income from Regular Sources realized from local sources during the next preceding
realized in the next preceding fiscal year or TIRS, based fiscal year
on the trial balance as of December 31 of said year or
from the accomplished Local Budget Accountability
Forms
PS Budget - Refers to appropriations for the payment of
salaries, wages, step increments, and other
PS Limitation 1st to 3rd class pcm = (45%) (TIRS)
compensation of permanent, temporary, contractual,
PS Limitation 4th to eth class pcm = (55%) (TIRS)
and casual employees of the LGU (Section 306 [k] of RA
PS Limitation Barangay — (55%) (TILS)
No. 7160).
Sectoral 325 Limitations
-The total appropriations, whether annual or
supplemental, for personal services of a local
government unit for one (1) fiscal year shall not exceed
forty-five percent (45%) in the case of first to third class
provinces, cities and municipalities, and fifty-five
percent (55%) in the case of the fourth class or lower, of
the total annual income from regular sources realized in
the next preceding fiscal year. The appropriations for
salaries, wages, representation and transportation
allowances of officials and employees of the public
utilities and economic enterprises owned, operated, and
maintained by the local government unit concerned
shall not be included in the annual budget or in the
computation of the maximum amount for personal
services. The appropriations for the personal services of
such economic enterprises shall be charged to their
respective budgets;
-The total annual appropriations for personal services of
a barangay for one (1) fiscal year shall not exceed fiftyfive percent (55%) of the total annual income actually
MOOE – Maintenance and Other Operating Expenses
Traveling Expenses
Training and Scholarship Expenses
Supplies and Materials Expenses
Utility Expenses
Communication Expenses
Awards/ Rewards and Prizes
Survey, Research, Exploration and Development Expenses
Demolition/ Relocation and Desilting/ Dredging Expenses
Generation, Transmission and Distribution Expenses
Confidential Expenses
Intelligence Expenses
Extraordinary and Miscellaneous Expenses
Professional Services
General Services Repairs and Maintenance
Financial Assistance/ Subsidy
Taxes, Insurance Premiums and Other Fees
Labor and Wages
Other Maintenance and Operating Expenses
Advertising Expenses
-Regular Agency Fund
-Foreign Assisted Fund
-Domestic Grant Fund
-Foreign Grant Fund
-Internally Generated Funds
-Business Related Funds
-Trust Receipt
COMPLETE SET OF GENERAL PURPOSE FS
Printing and Publication Expenses
Representation Expenses
Transportation and Delivery Expenses
Rent/ Lease Expenses
Membership Dues and Contributions to Organizations
Subscription Expenses
Donations
Litigation/ Acquired Assets Expenses
OFFICES CHARGED WITH GOV. ACCT.
Capital Outlay
GAM for NGA’s:Objective – to update



All equipment necessary for the implementation and
the management of the research (E.g. computers,
printers, bioref, biosafety cabinets)
Include warranty for replacement, service and parts,
delivery/shipping fees, duties and taxes in the budget
Expected service life more than one year
-interst exp for unfinished infrastructure

FINANCIAL Expenses
-interest expenses
- losses on foreign exchange
transaction
-bank charges
- interest exp of finished
infrastructures
1.
2.
3.
4.
1.
2.
3.
COA
DBM
BTr
Government Agencies
Standards, policies, guidelines and procedures
Coding structure and accounts
Acct books, registries, records, forms reports,
and FS
Basic Principles
1.
2.
3.
4.
5.
6.
7.
IPSAS
Accrual basis
Budget basis for presentation
Revised Chart of Accounts
Double Entry Bookkeeping
FS based on acct and budgetary records
Fund Cluster Accounting
1.
2.
3.
4.
5.
6.
SFPosition
SFPerformance
Statement of Changes in Equity
Statement of Cash Flows
Statement of Comparison of Budget and
Actual Amounts
Notes to financial Position
BUDGET PROCESS
Budget Preparation
-Budget Call
-Budget Hearing
-Presentation to the office of the President
*President’s Budget – President Budget Msg, NEP, BESF,
other docs
Budget Legislation
-House Deliberations
-Senate Deliberations
-Bicameral deliberations
-President’s enactment
Budget Accountability
-Budget Accountability Reports
1.
2.
3.
4.
5.
6.
7.
8.
Monthly report of disbursement
Quarterly Physical Report of operation
Statement of Appropriations, Alloments, Obligations,
Disbursement and Balnces
Statement of Appropriations, Alloments, Obligations,
Disbursement and Balnces by Object of Expenditures
List of Allotments and sub-alloments
Statement of approved budget, utilizations
disbursement and balances
Statement of approved budget, utilizations
disbursement and balances by object of expenditures
Quarterly report of revenue and other receipts
APPROVED BUGDET consist of
1.
2.
3.
4.
5.
6.
7.
8.
New general appropriation
Continuing appropriation
Supplementary appropriation
Automated appropriation
Unprogrammed funds
Retained Income
Revolving Funds
Trust receipts
Budget Execution
-Realease Guidelines and BEDs
*Major receipeint of budget
NGAs, LGUs, GOCCs
-Allotment – GAARD, SARO, GARO
-Incurrence of Obligations
-Disbursement Authority – NCA, NTA, Non-cash Availment
Authority, Cash Disbursement Ceiling
-Performance Reviews
-Audit
LOCAL GOVERNMENT UNIT BUDGET PROCESS
1.
2.
3.
4.
5.
Budget Preparation
Budget Authorization
Budget Review
Budget Execution
Budget Accountability
JOURNALS
1.
2.
3.
4.
General Journal
Cash receipts Journal
Cash Disbursement Journals
Check Disbursement Journals
Budget Registries
1.
2.
3.
4.
RROR
RAPAL
RAOD Object of Expenditure
- PS, MOOE, FE, CO
RBUD
GOVRENMENT ACCOUNTING CYCLE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Appropriation
Allotment
Incurrence of Obligation
Disbursement Authority
Disbursement
Billings, collections and remittance
Unadjusted Trial balance
Adjusting Entries
Closing entries
Preparation of FS