Budgeting Structure and Process.pptx

Budgeting Structure and Process.pptx

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  Reporter: Santos, AlginalynV. Professor : Bitonio, Josefina B. Budgeting Structure and Process
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  THE BUDGET CYCLE Thebudget and management reforms implemented since 2010 have strengthened the manner by which the government prepares, authorizes, implements, and accounts for the use of the National Budget. The four phases of the Budget Cycle overlap in continuing cycles.
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  THE BUDGET CYCLE PREPARATION EXECUTION ACCOUNTABILITY LEGISLATION
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  PREPARATION 1. Budget Call Janof Prior (FY Fiscal Year) 2. Citizen Engagement Before Tier 1 & 2 Proposals 3. RDC Consultations Before Tier 1 & 2 Proposals 5. Agency Tier 1 Proposals (Ongoing Expenditures) February of Prior FY 4. Program Convergence Before Tier 1 & 2 Proposals 6. Tier 1 Deliberations March of Prior FY 7. Budget Priorities Framework April of Prior FY 8. Agency Tier 2 Proposals (New/ Expanded Spending) 9. Tier 2 Deliberations June-July of Prior FY 11. Confirmation & Finalization July of Prior FY 10. Presentation to President & Cabinet July of Prior FY 12. The President’s Budget July- August of Prior FY Budget preparation starts with the Budget Call2 , which sets the parameters and procedures to guide agencies in preparing their respective proposed budgets. Agencies engage citizens as they prepare their proposed budgets, through the Budget Partnership Agreements with civil society organizations (CSOs), Bottom-Up Budgeting (BUB), and other participatory budgeting mechanisms. Agencies consult with Regional Development Councils (RDCs) to make sure that their respective budget proposals are aligned with the regions’ development needs and priorities. Lead and contributing agencies for each program priority of the government (for example, tourism) meet and synergize their proposed budgets to meet target outcomes. Agencies prepare the forward estimates (FEs) or current costs of their ongoing programs and projects and submit these for the “Tier 1” stage of 2TBA. Agencies prepare the forward estimates (FEs) or current costs of their ongoing programs and projects and submit these for the “Tier 1” stage of 2TBA. This document spells out the economic forecasts and fiscal targets for the budget year, the total cost of ongoing spending under Tier 1, and identifies the fiscal space: the available resources for new programs and projects or the expansion of existing ones. After undertaking further consultations with CSOs, RDCs, and other agencies, agencies prepare their proposals for new programs and projects or the expansion of existing ones. Agencies submit both their proposed Tier 1 and Tier 2 budgets through the Online Submission of Budget Documents System. Like in Tier 1, the DBM conducts TBH and ERB to review the Tier 2 proposals of agencies. Other government bodies are also involved in reviewing such proposals: the NEDA Investment Coordination Committee (ICC) for capital projects costing P1 billion or more and for PPP-related proposals; The DBM, DoF, and NEDA, with the BSP (as the DBCC) present the proposed Budget before the President and the Cabinet for discussion and approval. The DBM validates the approved budgets and consolidates these into the Budget of Expenditures and Sources of Financing (BESF) and other budget documents. The 1987 Constitution mandates the President to submit the Proposed Budget to Congress within 30 days from the opening of the regular session of Congress. The proposed Budgets for 2012 to 2016 had been consistently submitted one working day after the opening of the regular session.
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  LEGISLATION 1. House Deliberations August- October of Prior FY 2. Senate Deliberations September- Novemberof Prior FY 3. Bicameral Deliberations November- December of Prior FY 5. Enactment of the GAA December of Prior FY 4. Ratification & Enrollment December of Prior FY The Budget bill is tackled by Congress like any legislation. Thus, the Committee on Appropriations of the House of Representatives holds public hearings on the proposed Budget. Unlike normal legislation, the Constitution first requires the House to approve the GAB before the Senate considers the same. After the House and the Senate approve their versions of the GAB, they each form a panel of lawmakers that will constitute the Bicameral Conference Committee or Bicam. The Harmonized or “Bicam” version of the GAB is then submitted back to both Houses, which then vote to ratify the final GAB. Both Houses then submit or “enrol” the ratified GAB to the President. Budget legislation ends when the President signs the GAA into law. Prior to this, the President may veto or set conditions for implementation of certain items in the GAA, which are then specified in the President’s Veto Message. Unlike other legislation, the President may effect a “line item veto” of specific provisions of the GAB.
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  EXECUTION 1. Early Procurement Activities October- Decemberof Prior FY 2. Budget Program October-December of Prior FY 3. Allotment Release January (Comprehensive) and Throughout FY 4. Obligation Throughout FY 5. Cash Allocation January (Comprehensive) and Throughout FY 6. Disbursement Throughout FY Agencies are required to prepare their Annual Procurement Plans and other bid documents before the new fiscal year starts. Moreover, the government adopted a policy of allowing agencies—such as the DPWH and others which implement infrastructure projects—to bid their projects before the GAA is enacted. The DBM issues allotments to agencies to authorize the latter to incur obligations. Agencies submit Budget Execution Documents (BEDs) to outline their financial plans and performance targets for the year. Agencies incur liabilities that the national government will pay for, as they implement programs, activities, and projects. The DBM issues disbursement authorities, such as the Notice of Cash Allocation (NCA), to authorize an agency to pay the obligations it incurs. Monies are paid out from the Treasury to settle obligations that government incurred for the delivery of services to citizens.
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  ACCOUNTABILITY 1. Performance TargetsOctober- December of Prior FY 2. Citizen Engagement Throughout FY 3. Monitoring & Evaluation Throughout FY 4. Agencies’ Accountability reports Monthly & Quarterly 6. In-Year Reports Monthly & Quarterly 8. DBCC Year-End Report Within Next FY 9. Audit Report Within Next FY 5. Performance Review Throughout FY 7. DBCC Mid-Year Report September of FY The DBCC publishes another comprehensive report covering the full year. The DoF and the DBM regularly publish snapshots of the government’s fiscal performance, revenue collections, debt, and expenditures. The DBCC publishes a comprehensive report on macroeconomic developments, the fiscal situation of the national government, and the performance of key programs and projects. The COA reviews the accounts of each agency to ascertain if public funds are used properly, according to the law and standards, and with value-for-money. The DBM reviews the financial and physical performance of agencies against their targets. Review mechanisms include: the ZBB, to evaluate the efficiency and effectiveness of programs; and the FTDUs, to closely monitor agencies’ performance and Agencies submit Financial Accountability Reports on a monthly or quarterly basis, as required by the DBM and the COA. Budget accountability starts with the setting of targets that agencies are to be held accountable for. To empower citizens during Budget Accountability, the government ensures transparency--agencies disclose their budgets, reports, and other relevant information through the Transparency Seal; and make available data in open format. Agencies must set-up and implement monitoring and evaluation mechanisms to ascertain the effectiveness of the programs and projects on which they spend.
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  Reference: https://www.dbm.gov.ph/wp- content/uploads/Executive%20Summary/2016/Budget %20Cycle.pdf THANK YOU!
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  Name: Santos, AlginalynV. Student No.: 21-2629-29A Subject: SUMMER – MPA 207 Critiques/Reaction Reporter: Salindong, Irene Title: Strategic Project Identification Criteria The Overall presentation was detailed and very organized. I can say that we as the listeners of the topic will understand the whole presentation as Ms. Salindong discussed all the things that we can learn from “Project Presentation”. Ms. Salindong also includes the Characteristics of a Project, which is “A clear start and end date, A project has boundaries, A project creates something new, and lastly A project is not business as usual. She also discusses planning, which is can be viewed as an approach to problem-solving. It provides a systematic way of viewing problems and developing short- and long-term solutions. It can also be viewed as a decision-making process used to help guide decisions concerning future needs. Also, who makes the plan, well as Ms. Salindong discussed everybody must do the planning, the project manager initiates the planning process and coordinates planning activities into the overall project master plan. She also discusses the 8 steps of the planning process, Situational analysis, Goal/ objective/ target setting, Policy/ strategy formulation, Program/ project identification, Investment programming, Budgeting, Implementation and monitoring, Evaluation, and plan update The Importance of Project Preparation. Other than communication, one of the most important activities of the project manager is preparation. There is much that can be accomplished prior to the work beginning, and throughout the project, there are key activities that must be done in order to support the project correctly. Communicate and Over-communicate A key component of preparation is communication. The more that people understand what will happen on the project, the better they will be able to deal with the issues and problems that occur.