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ARMM Budget Cycle

Budget Cycle

 

  1. a.       Budget Call

At the beginning of the budget preparation year, the Regional Budget and Management Office issue the Local Budget Call to all line agencies, bureaus, departments and offices. The Budget Call contains budget parameters as set beforehand by the RBCC; and the policy guidelines and procedures in the preparation and submission of agency budget proposals.

 

 

  1. a.       Stakeholder’s Meeting

A new feature in budget preparation which seeks to increase citizen participation in the budget process; departments and agencies are tasked to partner with civil society organizations and other citizen stakeholders as they prepare their agency budget proposals. This new phase, which was piloted in the preparation of the 2014 National Budget, is now being expanded towards institutionalization.

 

 

  1. a.       Technical review of the Proposal

Subsequent to the issuance of the budget policy statement/Budget call, submission of budget proposals for FY 2014 to RBMO comes next. Technical Review is done by reviewing the proposed programs and activities if it is in line with the priority programs. Budget preparation forms are thoroughly checked if they are properly filled up.

 

 

  1. a.       RBCC Budget Hearing

Here, agencies defend their proposed budgets before the RBCC, based on performance indicators, targets, and agency absorptive capacity. RBCC reviews the agency proposals and prepare recommendations.

 

 

  1. a.       RBCC Budget Ceiling

After Budget hearing, a budget ceiling is set based on the comments and recommendation of RBCC and in consideration of priority programs vis-à-vis. Agencies are then required to submit new budget proposal based on the ceiling provided.

 

 

  1. a.       Consolidation of Proposal Based on Ceiling

Agency proposals are then reviewed and consolidated by RBMO for presentation to the Regional Governor.

 

 

  1. a.       Presentation to the Governor

The consolidated line agencies/offices budgets are presented by the RBCC, through the RBMO, to the Regional Governor for his comment and subsequent approval.

 

 

  1. a.       RLA Deliberation

The second phase of the budget process is relative to the enactment of the MMA Act by the Regional Legislative Assembly based on the Executive Budget submitted by the Regional Governor within 30 days from opening of its regular session; this will become the basis of the appropriation act.

 

 

  1. a.       Enactment or Veto

The bill is passed to the Governor who has ten (10) days to review and approve or veto the budget. The Governor may approve or veto the entire budget or he may veto certain line items or sections of the budget; he may not add anything to the budget. Once the Governor signs the budget the bill is given a final number that identifies it as a Chapter of the Acts of the current year.

 

 

  1. a.       Agency Submission of WFP

After the Notification of Agency Approved Budget based on the MMA, all concerned agencies are required to submit Work and Financial plan (WFP’s) to the RBMO based on their approved appropriation as a basis of their Monthly Fund releases.

 

 

After thorough evaluation and checking  of WFP, it is then transmitted to the Regional Governor for approval.

 

 

 

  1. a.       RG Approval of WFP

After thorough evaluation and checking  of WFP, it is then transmitted to the Regional Governor for approval.

 

 

  1. a.       Obligation Incurred

Upon the receipt of allotment, agencies incur obligations/enter into commitments, for and on behalf of the government, for payment of delivered goods and rendered services. Obligations are liabilities legally incurred, which the government will pay for. There are various ways that an agency “obligates:” for example, when it hires staff (an obligation to pay salaries), receives billings from the use of utilities, or enters into a contract with an entity for the supply of goods or services.

 

 

  1. a.       Cash Allocation

To authorize an agency to pay the obligations it incurs, ORT issues a disbursement authority extended by the Regional Governor.

 

 

 

  1. a.       Cash Allocation

To authorize an agency to pay the obligations it incurs, ORT issues a disbursement authority extended by the Regional Governor.

 

 

  1. a.       Submission of Accountability Reports

Submitted by agencies on a monthly and quarterly basis, PAPs are required reports that show how agencies used their funds and identify their corresponding physical accomplishments. These include quarterly physical and financial reports of operations; quarterly income reports, a monthly statement of allotments, obligations and balances; and monthly report of disbursements.

 

 

  1. a.       Quarterly Performance Review

The RBMO regularly reviews the financial and physical performance of agencies. Actual utilization of funds and physical accomplishments, as indicated in the agencies’ PAPs, are evaluated against their targets. Agencies are held accountable not only for how they use public funds ethically, but also on how they commit to attain their performance targets and outcomes using their available resources. This is achieved through conducting an annual BPAR to determine each agency’s accomplishments and performance by the year-end. The RBMO regularly reports results to the Regional Governor.

 

 

 

 

 

 

  1. a.       COA Audit 

Auditing lodged under the COA. This is critical in ensuring agency accountability in the use of public funds. The ORT uses COA’s audit reports in confirming agency performance, determining budgetary levels for agencies and addressing issues in fund usage.

 

 

 

 

 

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