National Government and Local Government Budget Process

National Government Budget
Process and Local Government
Budget Process
Prepared by: Guiller A. Ellomer
Western Mindanao State University
College of Teacher Education
Webinar Series - 4

ACTIVITY: “NAME THE PICTURE”
CATEGORY: Philippine Government Seal
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The National Government Budget Process
National government budgeting is a continuing cycle –
that is, while the current year’s budget is being spent (and
accounted for) by implementing agencies, the budget for
the ensuing year is simultaneously being prepared by the
Executive then passed on to Congress for review and
approval.

Phase 1 - Budget Preparation
The Executive through the Development Budget Coordination
Committee (DBCC) determines the government priorities and sets
macroeconomic and fiscal targets. After deciding on the
macroeconomic parameters, the Department of Budget and
Management (DBM) issues the Budget Call. This document contains the
policy guidelines and procedures in preparing budget proposals i.e.,
budget priorities, agency budget ceilings, budget forms/annexes and
budget calendar.

Budget of Expenditures and Sources of
Financing (BESF)
reflects three-year budgets (i.e. previous, current and
immediately succeeding year) broken down by sector, item
of expenditure, agency allocation and regional distribution.
It presents the sources of financing consisting of revenues
from tax and non-tax sources, loans and grants.

National Expenditure Program (NEP)
 presents the proposed budget allocation by agency, and spells out the General
and Special Provisions1 or the rules that shall apply in the implementation of
the Appropriations Law. In line with current reforms in the budgeting system,
the NEP for 2014 incorporates data previously contained in the Organizational
Performance Indicator Framework (OPIF)—e.g., the agency mandates, key
result areas, major final outputs (MFOs), performance targets and indicators.

Details of the Budget
is an accompanying document to the National Expenditure
Program (NEP) that presents the specific allocations by agency,
by program/activities/projects (PAPs), and by expense class (i.e.,
personal services (PS), maintenance and other operating
expenses (MOOE), and capital outlay (CO).

Staffing Summary
gives information on the personnel complement
(permanent and filled positions) of every national
government agency covering a three-year period, and the
corresponding budget for such positions. This book also
shows the distribution of permanent positions by salary
grade.

President’s Budget Message
provides an overview of the administration’s budget policy
thrusts, and the dimensions of the proposed budget.

Phase 2 – Budget Authorization
The budget authorization phase is the primary avenue where the
legislature exercises its power of the purse—i.e.,
Congress determines the appropriateness of budgetary allocation and
decides whether a particular program should be continued or
discontinued.

In the exercise of its Constitutional mandate,
Congress must ensure that:
(i) the government has the capacity to raise its set revenue targets,
(ii) the budget deficit will be kept at a level that is not detrimental
to the economy and the society as a whole, and
 (iii) every peso spent will produce the intended outcomes. Hence,
agency officials are called upon to justify their budget requests on
the basis of past spending decisions and to present results of
operations/service delivery.

The arduous task of scrutinizing the budget is initially done at the
House of Representatives as stipulated in Article VI, Section 24 of the
Constitution. Upon receipt of the six (6) budget books, the Committee
on Appropriations and its subcommittees conduct marathon hearings
on the proposed budget. Thereafter, the Committee endorses a General
Appropriations Bill for plenary deliberation. Congressional debates over
the national budget are made accessible to interested parties.

The approved House version of the General Appropriations Bill
(GAB) is then submitted to the Senate for review/scrutiny.3 Just
like any other legislative measure, the GAB passes through a
bicameral conference committee which reconciles the
differences between the House and Senate versions. The
bicameral committee report is then ratified by both houses and
sent to the President for signature.

To balance the power of Congress over the purse, the
Constitution clothes the President with veto power (Article VI,
Sec. 27 [2]). The veto may apply to any of the general and
specific provisions of the General Appropriations Act (GAA) as
well as the budget re-alignments introduced by Congress.
Presidential veto, however, may be overturned by Congress by
a three-fourths vote of its members.

Should Congress fail to pass the budget law before the
end the year, the government is authorized to operate
under a reenacted budget until a new appropriations law is
approved (Article VI, Sec. 25).

(Automatic and Continuing Appropriations)
 Automatic appropriations are appropriations programmed annually or for some
other period prescribed by law, by virtue of outstanding legislation that does not
require periodic action by Congress.
 This type of appropriations includes expenditures authorized under the following
laws:
 (a) Presidential Decree (PD) 1967, RA 4860 and RA 245 as amended for the servicing
of domestic and foreign debts;
 (b) Commonwealth Act 168 and RA 660, for the retirement and insurance premiums
of government employees;
 (c) PD 1177 and EO 292, for net lending to government corporations; and (d) PD
1234, for various special accounts and funds.

(Automatic and Continuing Appropriations)
Continuing Appropriations, on the other hand, are appropriations
available to support obligations for a specified purpose or project
such as multi-year construction of projects requiring the incurrence
of obligations even beyond the budget year—e.g., RA 8150 or the
Public Works Act of 1995, and RA 6657 and RA 8532 which set funds
specifically for the Agrarian Reform Program (ARP).

Phase 3 – Budget Execution
The fiscal year covered by the budget execution phase starts on 1
January of any given year and ends on the last day (31 December) of
the same year. To be effective, budget execution must embrace the
following principles:
(a) implementation of the approved budget with as little distortion as
possible,
(b) utilization of resources with frugality, efficiency and transparency,
and
(c) realization of developmental goals set in the Medium-Term
Development Plan.

Previously, releases of allotment were programmed and prioritized by the
DBM in consultation with agencies concerned. Agency Budget Matrix
(ABM) and Allotment Release Program (ARP) would have to be authorized
before agencies could enter into contracts with suppliers of goods and
services. Effective 2014, the DBM adopts a Budget-as Release-Document
policy wherein budgets of agencies are considered “released” as soon as
the GAA is passed. However, a Special Allotment Release Order (SARO) will
still be required for transactions that need prior clearance such as lump-
sum budget items (Budget Message 2014).

In order to make payments for valid obligations, Notices of Cash
Allocation (NCAs) are issued by the DBM to implementing
agencies/departments. Unsettled obligations during the year are
reported as accounts payable for the ensuing year. Meanwhile, paid
vouchers and their supporting documents are sent to the Commission
on Audit for review.

Phase 4 – Budget Accountability
Budget Accountability may be the last but is definitely
not the least important segment of the budget process.
Sharing this responsibility are the oversight bodies—
DBM, COA and Congress.

Budget oversight is undertaken by DBM in relation to the periodic
release of allotments and notices of cash allocations. Meanwhile, the
COA examines all government transactions and use of public resources
to ensure that all disbursements are duly authorized and beneficial to
government. Audit findings are expected to feed into the other phases
of the budget, particularly budget preparation and authorization
phases.

Congressional budget oversight is usually done alongside budget
authorization. During budget hearings, agencies report on their
accomplishments and are made to explain any questions on
program implementation or use of agency resources.

Local Government Budget Process

Budget Preparation Phase
Budget preparation is the first phase of the local budget process. It
involves cost estimation per PPA, preparation of budget proposals,
executive review of budget proposals, and preparation of the LEP and
the Budget Message. This phase starts with the issuance of the
Budget Call, and ends with submission of the Executive Budget to the
Sanggunian on or before October 16 of each year.

Legal Basis of Budget Preparation
Upon receipt of the statements of income and expenditures from the
treasurer, the budget proposals of the heads of departments and
offices and the estimates of income and budgetary ceilings from the
local finance committee, the local chief executive shall prepare the
executive budget for the ensuing year in accordance with the
provisions of [Title V, Book II of RA No. 7160] (Section 318, RA No.
7160).

Key Players in Budget Preparation
 Local Chief Executive (LCE)
 Local Finance Committee (LFC)
 Local Treasurer
 Local Budget Officer (LBO)
 Local Planning and Development Coordinator (LPDC)
 Local Accountant
 Heads of Departments and Offices/Heads of LEEs/Pus
 CSOs and the Private Sector Group -

Emerging Roles of CSOs in the Budget
Preparation Phase
ACTIVITY LGU ROLES CSO ROLES
1. ISSUE THE BUDGET CALL The
Budget Call is a directive from the
LCE that contains general
objectives, policy decisions,
strategies, and prioritized PPAs by
sector/office as reflected in the AIP
for the budget year
Provide a copy of the Budget Call to
the accredited CSOs. Include in the
Budget Call a requirement for the
Department Heads to consult with
accredited CSOs.
Check that AIP priorities are
highlighted in the Budget Call.
2. CONDUCT THE BUDGET FORUM
A one-day forum wherein the LBO
explains to Department Heads the
major thrusts and policy directions,
sources of income, spending
ceilings and budget strategies.
Invite accredited CSOs to the
Budget Forum. Ideally, the Budget
Forum may provide information on
why recommended priorities of
accredited CSOs were not included
in the identified PPAs.
Participate in the Budget Forum to
gain an overall appreciation of the
thrusts and priorities of the LGU for
the budget year as contained in the
Budget Call.

Preparation Phase
3. PREPARE AND SUBMIT BUDGET
PROPOSALS Each Department Head
prepares the budget proposals and
submits these to the LBO for review
and consolidation. He/ She needs to
determine the expected outputs for
the budget year and estimated
costs.
LCE to ensure that the
Department Heads consulted
with accredited CSOs. The
Budget Call may already
prescribe such requirement.
The accredited CSOs sectoral
representative may partner with the
Department Heads concerned in
determining the target beneficiaries and
funding requirements for the particular
sector. The CSOs may also propose
projects for consideration by the
Department Heads concerned. In cases
where CSOs’ proposed PPAs are not
included in the budget, CSOs can
request information from the LGU on
the reasons for non-inclusion.

Preparation Phase
4. CONDUCT BUDGET HEARINGS
The technical budget hearings are
conducted by the LFC to validate
the revenue sources, PPAs, cost
estimates and expected outputs for
the budget year.
budget hearings in relation to
sectoral concerns.
Participate in the budget hearings
to provide inputs on sectoral
concerns.
5. EVALUATE BUDGET PROPOSALS
The LFC evaluates all budget
proposals using the output and cost
criteria.
May replicate the best practices of
other LGUs in engaging CSOs in
LFC.
May replicate the best practices of
other CSOs in engaging LFC.

Preparation Phase
6. SUBMIT EXECUTIVE BUDGET TO
SANGGUNIAN After consolidation of the
budget proposal and approval thereof by
the LCE, the LGU shall submit the proposed
executive budget not later than October 16
16 of the current fiscal year pursuant to
Section 318 of RA No. 7160. This is usually
done through a State of the Province/City/
Municipality Address (SOPA/
where the LCE presents the proposed
Annual Budget to the Sanggunian and
other stakeholders.
SOPA/SOCA/SOMA.
Attend the SOPA/SOCA/ SOMA.

The Budget
Preparation
Flow Chart
The sequence of activities
in preparing the LEP should
be synchronized with the
mandated deadline for its
submission to the Local
Sanggunian.

Budget Authorization Phase
 Budget Authorization is the second phase in the local budget process. This phase
starts from the time the Sanggunian receives the Local Expenditure Program
(LEP) submitted by the LCE, and ends with the enactment of the Appropriation
Ordinance and approval thereof by the LCE.
 Authorization of the budget is done through an Appropriation Ordinance
enacted by the Local Sanggunian in accordance with the fundamental principle
that, “No money shall be paid out of the local treasury except in pursuance of an
Appropriation Ordinance or law” (Section 305 (a), RA No. 7160).

Legal Basis of Budget Authorization
On or before the end of the current fiscal year, the
Sanggunian concerned shall enact, through an ordinance, the
annual budget of the local government unit for the ensuing
fiscal year on the basis of the estimates of income and
expenditures submitted by the local chief executive (Section
319, RA No. 7160).

Key Players in Budget Authorization
 Local Chief Executive
 Sanggunian
 Committee on Appropriations/Finance
 Secretary to the Sanggunian
 Local Finance Committee
 Heads of Departments and Offices
 CSOs and Private Sector Groups

Authorization Phase
1. DELIBERATE ON THE BUDGET The
Sanggunian shall consider the executive
budget as a priority measure which shall
take precedence over all other pending
and proposed measures. As a rule, all
Sanggunian sessions shall be open to
the public, unless otherwise provided by
law (Article 105 [b], IRR of RA No.7160).
Sanggunian to post notice of budget
deliberation schedule in three (3)
conspicuous places at least seven (7)
days before the conduct of said
activity. Invite accredited CSOs to
attend and provide inputs during the
budget deliberation sessions,
including committee hearings.
Observing the Internal Rules of
Procedure (IRP) of the
Sanggunian, the accredited CSOs
may:
a. Provide inputs on sectoral
concerns; and
b. Raise questions on changes in
the Executive Budget not
found in the approved AIP.
2. AUTHORIZE THE ANNUAL BUDGET
The Sanggunian authorizes the annual
budget through an Appropriation
Ordinance (AO).
Sanggunian may allow accredited
CSOs to observe the voting for the
enactment of the AO.
Accredited CSOs to observe the
voting conducted by the
Sanggunian.

Authorization Phase
3. APPROVE THE A P P R O P R I A T I O N
ORDINANCE The AO enacted by the
Sanggunian shall be presented to the LCE
for approval, in which case he shall affix
his signature in every page thereof.
Otherwise, the LCE may exercise veto
power.
LCE to consider formal comments and
observations of accredited CSO, if any,
subject to the fifteen (15) and ten (10)
days reglementary period for approval,
for provinces, and cities or
municipalities, respectively, per Section
54 (b), RA No. 7160.
Accredited CSOs to inform the
LCE in writing of their
observation in the
deliberation and enactment of
AO, subject to the applicable
reglementary period.

Authorization Phase
4. POST THE APPROPRIATION
ORDINANCE The Sanggunian is required
to post the AO, in Filipino, English and
the local dialect, in a bulletin board at the
entrance of the provincial capitol or city,
or municipal hall, as the case may be, and
in at least two (2) other conspicuous
places in the local government unit
concerned (Section 59 [a and b], RA No.
7160).
Comply with the Full Disclosure Policy
pursuant to existing DILG issuances.
Comply with the posting requirement
under Section 59 (a and b), RA No. 7160.
Monitor the posting of the
approved AO, and assist in
making this known to the
public.

The Budget
Authorization
Flow Chart

Budget Review Phase
Budget Review is the third phase in the local budget process. Its
primary purpose is to determine whether the Appropriation
Ordinance has complied with the budgetary requirements and
general limitations set forth in the Local Government Code of 1991,
as well as provisions of other applicable laws. It starts from the time
the reviewing authority receives the Appropriation Ordinance for
review and ends with the issuance of the review action.

Legal Bases of Budget Review
The Department of Budget and Management shall review ordinances
authorizing the annual or supplemental appropriations of provinces,
highly-urbanized cities, independent component cities, and
municipalities within the Metropolitan Manila Area in accordance
with Section 327 of RA No. 7160 (Section 326 of RA No. 7160).
The Sangguniang Panlalawigan shall review the ordinance
authorizing annual or supplemental appropriations of component
cities and municipalities in the same manner and within the same
period prescribed for the review of other ordinances (Section 327, RA
No.7160).

Key Players in Budget Review
Secretary to the Sanggunian
Sangguniang Panlalawigan
Provincial Finance Committee
Department of Budget and Management Regional Office
CSOs and Private Sector

Emerging Roles of CSOs in the Budget Review
Phase
1. ISSUE THE REVIEW ACTION The
reviewing authority may declare the AO
as: a) operative in its entirety; b) operative
operative in its entirety, subject to
conditions; c) inoperative in its entirety;
or d) inoperative in part.
If the arrangement is allowed in the
terms of engagement between the LGU
and CSO, the LGU may furnish copy of
the review letter to the accredited CSOs.
Check the LGU compliance
with the review findings.

Reglementary Period of Review
The Appropriation Ordinance of provinces, highly-urbanized
cities, independent component cities, component cities and
municipalities shall be reviewed within 90 days from receipt
of copies of such ordinances (Section 327, RA No. 7160).

The Budget
Review Flow
Chart
 It shows the sequence of
activities from the time the
Secretary to the Sanggunian
submits the approved
Appropriation Ordinance to
the reviewing body/office
until the same is returned
together with the budget
review action to the
Sanggunian concerned
through the LCE.

The Budget Execution Phase
 The execution of the budget in accordance with existing rules, laws and regulations is
the fourth phase of the budget process in local governments. After the usual recording
of appropriations in the proper registries, the execution of the budget involves the
release of allotments, the certification of available appropriations and cash, the
recording of actual obligations and disbursements of funds for approved PPAs and the
delivery of goods and services to target clients in the most efficient, effective,
economical and ethical way.
 A critical aspect of this phase is the collection of funds to ensure that cash is available
for payment of obligations and further ensuring that disbursements do not exceed
appropriations. While seemingly a separate activity, the collection and/or receipt of
revenues are considered an integral part of Budget Execution.

Legal Bases of Budget Execution
 The fundamental principles governing all financial transactions in local governments are covered in
Section 305 of RA No. 7160. The responsibility, however, for the execution of authorized annual and
supplemental budgets shall be vested upon the Local Chief Executive (Section 320 of RA No. 7160).
 The use of appropriated Funds pursuant to Section 336 of RA No. 7160 shall be exclusively for the
specific purpose for which they have been appropriated.
 Another legal basis in Budget Execution is the Certification requirement before local funds are
utilized. Section 344 of R.A. No.7160 provides that “No money shall be disbursed unless the local
budget officer certifies to the existence of appropriation that has been legally made for the purpose,
the local accountant has obligated said appropriation, and the local treasurer certifies to the
availability of funds for the purpose.
 Finally, disbursements of local funds shall be made in accordance with the ordinance authorizing the
annual or supplemental appropriations even without the prior approval of the Sanggunian
concerned (Section 346 of R.A. No. 7160).

Key Players in Budget Execution
 Local Chief Executive (LCE)
 Vice Governor/ Vice Mayor
 Local Budget Officer (LBO)
 Local Treasurer
 Local Planning and Development Coordinator (LPDC)
 Department Head
 Civil Society Organizations (CSOs)/Private Sector Groups

Execution Phase
1. RELEASE THE ALLOTMENTS (LBM/ARO)
The Local Budget Matrix (LBM) is issued
to effect the comprehensive release of
allotment for a Department/ Office.
Release of reserve amounts shall be
effected through the use of Allotment
Release Order/s (ARO/s).
Post information on allotment releases
(LBM/SAROs) in three (3) conspicuous
places in the LGU within twenty (20)
days from the release of the allotment.
Monitor the LGU compliance
on the release of allotments.
Inform beneficiaries and
communities concerned of the
release of allotments through
tri-media or conduct meetings
with the beneficiaries and
communities concerned.

Execution Phase
2. POST THE STATEMENT OF RECEIPTS
AND EXPENDITURES IN THE LGU
WEBSITE The LGU shall post the monthly
Statement of Receipts and Expenditures
within ten (10) days after the end of the
month pursuant to Section 513 of RA No.
7160
Post information on receipts and
expenditures in three (3) conspicuous
places in the LGU within ten (10) days
after the end of the month pursuant to
Section 513 of RA No. 7160; and within
twenty (20) days after the approval by
the LCE of the Annual Report of Receipts
and Expenditures as required under the
Full Disclosure Policy of the DILG.
Monitor the postings as
required under RA No. 7160
and the Full Disclosure Policy
of the DILG.
Advocate for the citizen’s
awareness of posted
information through trimedia.

Execution Phase
3. PREPARE CASH PROGRAM AND
FINANCIAL AND PHYSICAL
PERFORMANCE TARGETS The Local
Treasurer shall prepare the Cash Program.
The [LFC] / Department Heads shall
prepare the Summary of Financial and
Physical Performance Targets for the
entire year. The detailed financial and
performance targets present the
quarterly breakdown of the financial
allocation needed to accomplish a
specific level of target.
Post information on the following: a.
Cash Program b. Financial and Physical
Performance Targets in three (3)
conspicuous places in the LGU within
twenty (20) days after the end of each
quarter.
on the preparation of cash
program and financial and
physical performance targets.
Inform beneficiaries and
communities concerned of the
information through tri-media
or conduct meetings with the
beneficiaries and communities
concerned

Execution Phase
4. OBLIGATE AND DISBURSE FUNDS FOR
IMPLEMENTATION OF PPAS -
PROCUREMENT PROCESS Procurement
Process To enhance the transparency of
the process, the BAC shall, in all stages of
procurement process, invite, in addition
to the representative of Commission on
Audit, at least two (2) observers to sit in
its proceedings, one (1) from a duly
recognized private group in a duly
recognized private group in a sector or
discipline relevant to the procurement at
hand.
Invite accredited CSOs, if qualified as
observers, in the procurement process at
least three (3) calendar days before each
procurement activities in compliance
with the Government Procurement
Reform Act, RA No. 9184.
Attend as observer in the
procurement process and
carry out the responsibilities
provided under Section 13.4
of the IRR of RA No. 9184.
May use as reference the
GPPBissued Procurement
Observers Guide (POG).

Execution Phase
PPA Implementation The responsibility
for the execution of the annual and
supplemental budget shall be vested
primary in the LCE concerned. In the
implementation of PPAs, the following
must be ensured:
• standards of service
• quality of work
• timelines of implementation pricing of
goods, contracts and services
• PPA fund release/ utilization
• proper delivery to target beneficiaries
Invite accredited CSOs to spot check or
track implementation of ongoing
projects. (This may be differentiated
from the monitoring activity in the
Budget Accountability Phase which is
done on scheduled periods, i.e.,
quarterly, mid-term and annual, and
aimed at comp
Participate in the spot check
or tracking of implementation
of ongoing projects and
prepare Project Monitoring
Report for submission to the
LCE. (Annex B)

Execution Phase
5. ADJUST CASH PROGRAM FOR
SHORTAGES AND OVERAGES The LFC,
through the Local Treasurer, shall use the
results of the cash flow analysis as basis
for adjusting the Cash Program and the
financial and physical targets.
Post information on adjusted Cash
Program in three (3) conspicuous places
in the LGU within twenty (20) days after
the end of each quarter
on the preparation of adjusted
cash program, and financial
and physical performance
targets.

Execution Phase
6. PROVIDE CORRECTIVE ACTIONS FOR
NEGATIVE DEVIATIONS The LFC shall
compare the actual performance in both
the financial and physical
accomplishments visà-vis the targets for
the quarter. For variances, Department
Heads concerned shall take corrective
actions or prepare necessary adjustments
to catch up with the plans for the year.
Render reports on actions taken to
address negative deviations. Provide
copies of catch-up plans to parties
concerned. Partner with accredited CSOs
in addressing service gaps and
acknowledge contribution of CSOs.
Monitor appropriate
interventions and measures
taken by the LGU on negative
deviations. Assist the LGU in
implementing appropriate
interventions on negative
deviations, which may include
providing possible support for
service and/or resource gaps
in the delivery of services.

The Budget
Execution
Flow Chart
The budgetary accounts
to be maintained during
the budget execution
process include the
following: l
Appropriations l
Allotments l Obligations

The Budget Accountability Phase
 Budget accountability is the last and final phase of the budget process. Budget
Accountability, in simple terms, is accounting for the budget. It involves the use of a
management control techniques to assist in tracking receipts of income/revenues and
controlling expenditures.
 This mechanism provides a venue for the LCE, Local Sanggunian and stakeholders to be
continuously informed of the status of implementation of PPAs being funded by public
funds. It covers the monitoring and analysis of all financial transactions, the recording of
budgetary accounts in the registries, recording in the books of accounts of all receipts and
expenditures and financial reporting of their current status. An integral part of accountability
is the evaluation of the financial and physical performance of the LGU. This review and
assessment of performance is necessary to introduce improvements and reforms to make the
budget more transparent to the people and stakeholders.

Legal Bases of Budget Accountability
 Section 340 of RA No. 7160 provides that “any officer of the LGU whose duty
permits or requires the possession or custody of local government funds shall be
accountable and responsible for the safekeeping thereof in conformity with the
provisions of this Title. Other local officers, who, though not accountable by the
nature of their duties, may likewise be held accountable and responsible for local
government funds through their participation in the use or application thereof.”
 Section 305 of RA No. 7160 also provides that “Fiscal responsibility shall be
shared by all those exercising authority over the financial affairs, transactions,
and operations of the local government unit

Key Players in Budget Accountability
 Local Chief Executive
 Local Treasurer
 Local Budget Officer
 Planning and Development Coordinator
 Heads of Departments/Offices
 Local Finance Committee
 CSOs and Private Sector Organizations

Accountability Phase
1. MONITOR OUTPUTS AND RESULTS
OF PPAs The appropriations recorded
in the books shall be compared with
the actual collections and
disbursements for the same period.
Expenditures are tracked and
monitored vis-à-vis the outputs and
accomplishments.
Invite accredited CSOs to participate in the
local project monitoring activities. Post
financial information in three (3) conspicuous
places in the LGU within twenty (20) days
after the end of each quarter. Invite
accredited CSOs in the midyear and year-end
assessment of the overall performance of the
LGU. Invite accredited CSO in the impact
assessment of the programs and projects, and
the overall performance of the LGU. Make use
of available and existing monitoring tools
such as the Citizens Satisfaction Report Card
(from CODE-NGO) and the LGU Fiscal
Sustainability Scorecard (from BLGF).
Actively participate in the local project
monitoring activities. Enhance CSOs own
technical capability in project monitoring.
Monitor PPA implementation and check on
the following:
• standards of service • quality of work •
timeliness of implementation • pricing of
goods, contracts, and services • PPA fund
release/ utilization • proper delivery to
target beneficiaries Provide
recommendations based on monitoring
results. Organize citizens’ fora with the
LGU to provide feedback to the
community. Actively participate in the
impact assessment of programs and
projects and of the overall performance of
the LGU.

The Budget
Accountability
Flow Chart
 Budget accountability is
accounting for the local
budget, which involves
three (3) steps:
 Monitor receipts and
expenditures
 Submit Accountability
Reports
 Evaluate Performance of
each Department/Office

References
 Congressional Policy and Budget Research Department, August 2013, House of Representative, A
Legislator’s Guide in Analyzing the National Budget, 2nd Edition
 Budget Operations Manual of Local Government Units, 2016 Edition

National Government and Local Government Budget Process

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Editor's Notes