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Module 8 - AGNO

The document provides information about the budget cycle phases in the Philippines: 1) The preparation phase involves government agencies drafting their budget proposals which are submitted to the Department of Budget and Management for review. 2) The legislation phase involves congressional deliberation and passage of the budget, starting with the house and ending with presidential approval. 3) The execution phase refers to agencies receiving allotments and obligation authority to spend funds and make payments. 4) The accountability phase refers to auditing, reporting, and evaluation of actual spending compared to the approved budget.

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quennie vilchez
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6K views4 pages

Module 8 - AGNO

The document provides information about the budget cycle phases in the Philippines: 1) The preparation phase involves government agencies drafting their budget proposals which are submitted to the Department of Budget and Management for review. 2) The legislation phase involves congressional deliberation and passage of the budget, starting with the house and ending with presidential approval. 3) The execution phase refers to agencies receiving allotments and obligation authority to spend funds and make payments. 4) The accountability phase refers to auditing, reporting, and evaluation of actual spending compared to the approved budget.

Uploaded by

quennie vilchez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Quennie V.

Centino BSMA 3 November 27,2020

APPLICATION
Problem 1: Summary
Create a summary of the budget cycle by filling up
the table below with brief descriptions of each budget
cycle
phase:

Phase Preparation Legislation Execution


Accoun
tabil
ity
Steps 1. Budget 1. House of 1. Appropria 1. Repo
Preparati Representa tion rts
on tives 2. Allotment 2. Revi
(agencies) 2. Senate 3. Obligation ew
2. Budget 3. Bicameral 4. Disburse 3. Audi
Hearing Conference ment t
(DBM with Committee 5. (Authorit (CO
agencies) (Bicameral y to pay) A)
3. Presenta Deliberation)
tion of 4. Enactment
the by the
Budget to President
the
President
(President
and the
Cabinet
Members)

Docume 1. Allotment
nts 1. Budget 1. General General
Proposal Appropriation
s Bill (GAB) Appropriati
2.National (House of ons Act
Expenditure Representativ Release
Program (NEP) es Version) Document
2. General (GAARD)
3.Budget of Appropriation Special
Expenditures and Bill (GAB) Allotment
Sources of (senate Release
Financing (BESF) Version) Order
3. Final General- (SARO)
Appropriation
s Bill General
Allotment
Release
Order
(GARO)
4. General 2. Disburseme
Appropriation nt
s Act Notice of
Cash
Allowance
(NCA)
Notice of
Transfer of
Allocation
(NTA)
Non-cash
Availment
Authority
(NCAA)
Cash
Disburseme
nt Ceiling

PROBLEM 2: TRUE OR FALSE


Write true if the statement is true, otherwise, write false.

FALSE 1. The budget preparation in the Philippines uses a “bottom-up” approach.


Under this approach, the budget preparation starts from the highest levels of the
government down to the lowest levels.
FALSE 2. An entity prepares its budget by simply rolling-over the budget in the
previous year and adjusting each line item by 10% increment to reflect inflation.
This process is described as zero-based budgeting.
FALSE 3. After the budget call from the DBM, the proposed budget of various
agencies is submitted immediately to the Office of the President for review.
FALSE 4. An entity can incur obligations after receiving notice of its appropriation
but before receiving the allotment.
FALSE 5. Budget deliberations in the Congress starts in House of the Senate
TRUE 6. A government entity must receive an allotment before it can incur
obligations.
FALSE 7. A government entity can make disbursements even before it receives a
disbursement authority.
FALSE 8. Appropriation is also called Obligational authority
TRUE 9. The Notice of Cash Allocation (NCA) is an authority issued by the DBM to
central, regional and provincial offices and operating units to cover their cash
requirements.
FASLSE 10. Responsibility accounting greatly enhances budget accountability
because managers are evaluated only in terms of the costs or other variables that
they
control, and therefore, budget deviations can be readily attributable to the
managers accountable therefore.

PROBLEM 3: MULTIPLE CHOICE


B 1. Which of the following does not properly describe the budget process used in
the Philippines?
a. Bottom-up budgeting
b. Top-down budgeting
c. Zero-based budgeting
d. Non-incremental
budgeting

B 2. Arrange the following steps according to the sequence that they appear in the
budget cycle
I.Allotment
II.Bicameral deliberations
III.Budget accountability reports
IV.President’s enactment of the GAA
V.Budget hearings with the DBM

a. V, IV, II, I and III


b. V, II, IV, I and III
c. II, V, IV, I and III
d. V, I, II IV and III

Fact Pattern:
A legislation approves the allocation of P100B funds to support the
operations of Entity A (a government agency) in the current year. At
the start of the first quarter, Entity A receives authorization to incur
obligations for a maximum amount of P45B in that quarter. Entity A
extends half of that authorization to its lower operating units. During
the quarter, Entity A receives monthly authorization to disburse funds
not to exceed P15B per month. Entity A extends half of those monthly
authorizations to its lower operating units. At the end of the quarter,
total obligations incurred amounted to P40B while total disbursements
amounted to P35B.

B 3. The allocation of the P100B funds to Entity A is referred to as:


a. Allotment c. Obligation
b. Appropriation d. Sub-allotment

A 4. The allocation of the P100B funds to Entity A is authorized by


a. Department of Budget and Management (DBM)
b. Commission on Audit
(COA)
c. Bureau if Treasury (BTr)
d.
Congress

A 5. The P45B authorization is referred to as


a. Allotment c.
Obligation
b. Appropriation d. Sub-allotment

B 6. The P45B authorization is received by Entity A from


a. DBM c. Obligations
b. COA d. Sub-allotment

D 7.The half of the P45B authorization extended by the Entity (Central Office) to its
lower operating units is referred to as
a. Allotment c. Obligation
b. Appropriation d. Sub-allotment

C 8. Which of the following best describes the P15B monthly authorizations?


c. Allotment
d. Obligation authority
e. Notice of Cash Allocation
f. Notice of Transfer of Allocation

A 9. The P15B monthly amortizations are received by Entity A from


a. DBM c. BTr
b. COA d. Congress

B 10. All disbursements of government entities must be in conformance with the


law and the
a. National budget c. PPSASs
b.

Closure
Congratulations for finishing this module! May this help you understand
the budget cycle. The steps discussed in this chapter will have a great
impact on how government transactions are accounted. But more than
that, I hope that this chapter helped you become an empowered Filipino
Citizen. Now you know how things are supposed to be done in terms of
handling government funds. Keep safe and see you on your next
module.

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