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COMMITMENT
There is a difference
between interest and commitment.
When you are interested in doing
something,
you do it only when it is convenient.
When you are committed to something,
you accept no excuses, only results.
Kenneth Blanchard
Preparation of Annual Investment
Program (AIP) for Provinces, Cities,
Municipalities for FY 2016
Updates on Local Government Budgeting
Crown Regency Hotel, Quadalupe, Cebu City
June 8-10, 2015
ABSAL NAZ ABAH
Budget and Management Specialist
Outline
• Background
• New Issuances
▫ Local Budget Memorandum No. 68
▫ DBM-CCC-DILG JMC No. 2014-1
• Revised Form of the AIP
• Program, Project and Activity Structure
Background (key documents)
• In 2007 Joint Memorandum Circular (DBM,
NEDA, DILG, DOF) No 1 series of 2007 was
issued as NGA initiative in local planning and
budgeting
▫ serves as guide in harmonization of local
planning, investment programming, revenue
administration, budgeting and expenditures
management
Background (key documents)
▫ Planning and budgeting linkage is
institutionalized in the LGUs
▫ This linkage is provided through the concept of
the Annual Investment Program (AIP)
WHAT CONNECTS
PLAN TO BUDGET?
Economic
Services
Social
Services
General
Services
PLAN
AIP
BUDGET
What is an
?
 annual slice of the LDIP which
constitutes the total resource
requirements for all
programs/projects/activities
 yearly program of expenditures
both for capital and current
operating requirements of the
LGUs
 document that reinforces planbudget linkage
PREPARING the AIP
KEY PLAYERS
1. Local Development Council
(LDC)
2. Local Planning and
Development Coordinator
(LPDC)
3. Local Budget Officer (LBO)
4. Local Chief Executive (LCE)
5. Local Sanggunian (SP/SB)
6. NGOs, Civil Society Groups
and Other Stakeholders
PREPARING THE AIP: Roles of Key Players
Local Development Council
Align development
plan with current
development
issues
Cull out the current
slice of the LDIP as
input and annual
component of the
Capital Expenditure
(CAPEX) into the
AIP Summary Form
Determine the
annual resource
requirements of
Priority
development
projects of the AIP.
PREPARING THE AIP: Roles of Key Players
Local Planning Development Coordinator
Updates the AIP
to consider new
and
unimplemented
PPAs.
How to
update?
Consolidate the
PPAs of every
Department.
PREPARING THE AIP: Roles of Key Players
Local Budget Officer
Integrate the CAPEX
with the PS, MOOE
and Other CO into the
total resource AIP to
be reflected in the AIP
Summary Form.
PREPARING THE AIP: Roles of Key Players
Local Chief Executive
Present the AIP
Summary Form to the
LDC for deliberation
and concurs with the
AIP Summary Form
as agreed upon by the
LDC.
PREPARING THE AIP: Roles of Key Players
Sanggunian
Approve the AIP.
PREPARING THE AIP: Roles of Key Players
NGOs, Civil Society Groups and
Other Stakeholders
Serve as key informants on
major development issues
in the LGU. Provide
relevant information in the
identification and
prioritization of PPAs for
inclusion in the AIP.
The AIP Process Flow Chart
LDC
Aligns Dev Plan/ELA
(PDPFP/CDP)
with current
development issues
LPDC updates AIP
to consider new and
unimplemented
PPAs
LBO determines resource
requirements of PPAs
for Basic Services Delivery
and Administrative/
Legislative Services
LCE presents AIP
to LDC for deliberation
LDC prepares Draft AIP
and presents to
LCE for review
LDC determines annual
resource requirements
of priority development
projects from LDIP
LDC deliberates on/
endorses AIP to
Local Sanggunian
Local Sanggunian approves AIP
for the Budget Year
A nnex A
Summary Fo rm
CY ______ Annual Investment Program (AIP)
By Program/Project/Activity by Sector
As of _______________________
Province/City/Municipality/Barangay:________________________
AM OUNT (in thousand pesos)
SCHEDULE OF IMPLEMENTATION
AIP REFERENCE
CODE
(1)
PROGRAM /PROJECT/ACTIVITY
DESCRIPTION
(2)
IM PLEM ENTING
OFFICE/DEPARTM ENT
(3)
STARTING
DATE
(4)
COM LETION
DATE
(5)
EXPECTED
OUTPUTS
(6)
FUNDING
SOURCE
(7)
Personal
Services
(PS)
(8)
M aintenance
and Other
Operating
Expenses
(M OOE)
General Public Services
(10)
AIP Summary Form
Economic Services
(80)
Social Services
(30)
Prepared By:
Attested by:
Planning Officer/PLDC
Budget Officer
Local Chief Executive
Date:
Date: _____________
Date: _______________
Capital Outlay
(CO) (10)
TOTAL
(11)
New Issuances
• Local Budget Memorandum No. 68 dated July 1,
2014 provides that:
▫ Together with the General Annual Budget, LGUs
shall prepare their respective Local Disaster Risk
Reduction Management Plans (LDRRMP) and
Local Climate Change Action Plan (LCCAP)
▫ LGUs shall be encouraged to identify, tag and
prioritize climate change programs, activities and
projects (P/A/Ps). Guidelines for the purpose
shall be issued separately
New Issuances
• Joint Memorandum Circular No. 2014-1 (DBMCCC-DILG) dated August 7, 2014:
(Tagging/Tracking Climate Change Expenditures in
the Local Budget)
▫ To identify, tag and prioritize climate change
programs, activities and projects (PAPs) by all
Departments and Offices of LGUs;
▫ To take stock of climate change programs, activities
and projects and to track and report climate change
expenditures of LGUs
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:
• LGUs are encouraged to increase budgetary
allocations for basic services and facilities responsive
to climate change to improve the adaptive capacity of
communities and reduce adverse impact of climate
change
• All climate change related strategies and investments
of the LGUs in the AIP shall be identified as follows:
▫ Adaption responses
▫ Mitigation responses
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:
▫ To tag climate change expenditures in the AIP, the
following shall be undertaken:
 Identify P/A/Ps with climate change adaptation and
mitigation expenditures;
 Identify the components of the P/A/Ps that are
adaptation or mitigation responses using the Climate
Change Typologies
 Specify the amount of climate change component
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:
• LGUs who do not have any P/A/Ps that can be tagged
as climate change adaptation/mitigation can enter :
“No identified climate change related expenditures”
• For Provinces, Cities and Municipalities:
▫ Ensure that climate change is integrated in the budget
call issued by the LCE;
▫ Identify climate change expenditures in their Annual
Investment Programs (AIP) using the CCE typologies
▫ Tag identified CCE in their AIP using the revised AIP
form (Annex B)
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:
▫ Accomplish and submit to DILG and DBM the list
tagged climate change P/A/Ps during the annual
submission of the budget proposals;
▫ Ensure the integration of climate change PAPs in
the LGU budget proposals of department during
the technical budget hearing of the Local Finance
Committee (LFC) and the LCE;
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:
▫ For PAPs that do not qualify under the Climate
Change Typologies listed in Annex A, request CCC
to create a new typology;
▫ The CCET will be implemented by all LGUs in FY
2016
Annual Investment Program (AIP)
Implementing
AIP
REFERENCE Program/proje Office/Dept
ct/activities
CODE
(1)
(2)
(3)
Schedule
Completion
Starting
(4)
(5)
Expected
Outputs
(6)
Funding
(7)
Annual Investment Program (AIP)
AMOUNT OF CLIMATE
CHANGE P/P/A
AMOUNT
PS
(8)
MOOE
(9)
CO
(10)
TOTAL
(11)
Climate
Change
adpatat
ion
(12)
Climate
Change
mitigatio
n (13)
Climate
Change
Typology
code
(14)
Climate Change Adaptation:
- adjustments in human and natural systems in
response to actual or expected climate signals or
their impacts, that moderate harm or exploit
beneficial opportunities.
Climate Change Mitigation:
- in the context of climate change, refers to human
intervention to address anthropogenic emissions
by sources and removals by sinks of all GHG,
including ozone-depleting substances and their
substitutes
Human Security (Health):
Adaptation
Mitigation
Develop and introduce
health surveillance and
rapid response system that
reduces health impact of
climate change
Interventions that reduce
air pollution (e.g., antismoke belching campaign)
Fisheries (Policy & Governance):
Adaptation
Mitigation
Formulate/implement
ordinances on protection of
mangroves
Introduce ordinances to
reduce the emission of
GHGs or absorption of
GHGs in the fishery sector
Water sufficiency( water sanitation):
Adaptation
Mitigation
Training for communitybased water associations to
managed water supply
infrastructures
Train Managers or workers
to improve water or energy
efficiency in business
operations
Climate change Typologies for LGUs:
Strategic priority :
1. Food Security
2.
3.
4.
5.
6.
7.
8.
9.
1. Agriculture
2. Livestock’
3. fisheries
Water Sufficiency
Ecological and environmental Stability
Human Security
Climate smart Industries and Service
Sustainable energy
Knowledge and Capacity Development
Finance
Cross Cutting Priorities
Programs/Project/Activities (major
component of the AIP):
PPA Structure
• Review existing PPA structure
Analyze
Results/
Outputs
of PPAs
Relevant
to or
consistent
with
Policy
Objectives
Yes/No
Status
Quo
If Yes
If No
Determine
Causes
Redesign
Program
Structure
PPA Structure
• The review of existing program should ascertain the
relevance of present operations to the wider policy
objectives of the LGU;
• Evaluation of PPAs structure to determine the program’s
capacity to produce desired result;
• Performance indicator shall be identified to served as
bases for measuring performance.
PPA Structure
• Redesigning current PPA structure: (regular activities or
projects of a specific program):
Step 1. Review the existing regular activities or projects
of a specific program.
▫ What are the objectives of the program?
▫ Are the projects/activities relevant to the mission?
▫ What are the output indicators of the program?
▫ Are the results consistent with the program objectives?
▫ What activities/projects must be
redesigned/abolished?
PPA Structure
• Redesigning current PPA structure: (organization
structure)
Step 2. Design the proper organization structure that
will best carry out the program objectives.
▫ What are the tasked to be performed?
▫ What is the optimum number of personnel that can
carryout tasks efficiently and effectively?
▫ What qualifications are required of personnel to
perform the tasks well?
THANK YOU