1.

The General Accounting Plan (GAP) shows the overall accounting system of a government
agency/unit. It includes the source documents, the flow of transactions and its accumulation
in the books of accounts and finally their conversion into financial information/data
presented in the financial reports.
1. The following accounting systems are:

i. Budgetary Accounts System;

ii. Receipts/Income and Deposits System;
iii. Disbursement System; and
iv. Financial Reporting System

 Budgetary Accounts System - The Budgetary Accounts System encompasses the processes of
preparing the Agency Budget Matrix (ABM), monitoring and recording of allotments received by the
agency from the DBM, releasing of Sub-Allotment Release Order (SARO- to Regional Offices (RO) by
Central Office (CO), issuance of Sub-SARO to operating units (OUs) by the RO and recording and
monitoring obligations.

2. As to Nature
a. Annual Budget – a budget which covers a period of one year. It is the basis of an annual
appropriation.

b. Supplemental budget – a budget which purports to supplement or adjust a previous budget which is
deemed inadequate for the purpose for which it is intended. This is the
Basis for a supplemental appropriation.

c. Special budget – a budget of special nature and generally submitted in special forms on account of
the fact that itemizations are not adequately provided in the Appropriation Act or that amounts are
not at all included in the Appropriations Act.

As to Basis
a. Performance Budget – a budget emphasizing the programs or services conducted and based on
functions, activities and projects which focus attention upon the general character and nature of the
work to be done, or upon the services to be rendered, rather than the things to be acquired, such as
personal services, supplies and equipment. It is management-oriented measures actual or estimated
results in the basis, terms of benefits accruing to the public and their costs.

b. Line-Item Budget – a budget the basis of which are the objects of expenditures such as salaries and
wages, travelling expenses, freight, supplies, materials and equipment’s, tec.

As to Approach and Technique

a. Zero-Based Budgeting – a process which requires systematic consideration of all programs, projects
and activities with the use of the defined ranking procedures. In ZBB, activities are analyzed and
presented in “decision packages” or key budgetary inclusions.

The term “zero-base” refers to the yearly analysis, evaluation and justification of each activity, project
or program, starting from a “zero” performance and budgeting level. ZBB does not accept the prior
year’s budget as a starting point for analysis. The analysis of the levels of funding and performance
as well as the expected impact of the objectives at each level will give enough leeway for
management to decide whether to eliminate entirely a low priority to make way for a new one or to
cut back the performance and funding level of the program to permit another to expand.

b. Incremental Approach – a budget where only additional requirements need justification. It focuses
on analysis of incremental changes in the budget and may be done within the context of performance
and program budgeting.
 c. Capital Budgeting Approach - a budgeting technique which consists of a two-tiered strategy, as
follows:

c.1 Setting a baseline budget that will correspond to the minimum level of operating requirements at
which each agency of the national government will be able to perform its basic functions; and

C.2 Prioritization of the allocable balance (i.e. what is left of the budget ceiling after deducting the
baseline budget) among the proposed projects and programs of agencies.

Agency baseline – refers to the cost of performing regular agency functions, including an
Allowance for inflation, but excluding the cost of non-recurring programs and
Projects.

Government-wide baseline – refers to the budget impact of decisions or policies

Enunciated by the government that require priority funding. These items are not
Traditionally reflected in the individual budgets of agencies but are shown as
A lump sum to be distributed later on the basis of prescribed rules or procedures.

3. Government budgeting is undertaken using a process that consists of four (4) phases, namely:
1) Budget preparation
2) Budget legislation or authorization
3) Budget execution or implementation
4) Budget accountability or review

Budget Preparation

This process starts with the determination of budgetary priorities and activities guided by our national
development plan, within the ceilings or constraints imposed by available revenues and borrowing limits and
inclusion of amounts needed for approved priorities and activities into the expenditure levels.

Budget Legislation or Authorization

The President submits the overall budget that he/she approved to Congress in the form of a
detailed Expenditure Program (National Expenditure Program) accompanied by the Budget of
Expenditures and Sources of Financing, The President’s Budget Message and the Regional
Allocation of the Expenditure Program

Budget Execution or Implementation

This is the operational aspect of budgeting. After the President signs the GAA into law, the DBM requires the
different agencies of government to prepare the Agency Budget Matrix (ABM) to be accompanied by the
Annual Cash Program.

The allotment (based on the ABM) is the authority of the government agency to incur obligations and enter
into contract. It is possible that sometimes the allotment is issued for the funding of projects even if these will
take one year to finish. This is done to enable the agency to enter into contracts and begin the projects.
However, pursuant to DBM Circular Letter #2008-11, the releases of Notices of Cash Allocation (NCAs) is
being modified. NCAs to
Cover regular requirements of agencies shall be comprehensively released with a monthly breakdown of NCA
requirements of the agency receiving NCA directly from DBM. Basis of releases is the Monthly Cash Program
(MCP), a budget execution document, reflects the monthly disbursement requirement of OUs.

Budget Accountability
This refers to the evaluation of actual performance and initially approved work targets. Obligation incurred,
personnel hired and work accomplished are compared with the plans and targets submitted by the agencies
at the time that their respective budgets are prepared. This work is entrusted with the DBM and COA.

4. Accounting for budgetary accounts

Budgetary accounts consists of the appropriations, allotments and obligations. Appropriations refers
to an authorization made by law or other legislative enactment, directing the payment of goods and services
out of government funds under specified conditions or for special purposes. Allotment is the authorization
issued by the DBM to the agency, which allows it to incur obligations for specified amounts, within the
legislative appropriation.

In order that the appropriation may be released, the agency, in consultation with the DBM, is
required to prepare and to submit the Agency Budget Matrix (ABM), the official document used as the basis in
the release of the obligational authority. This is prepared by appropriation/financing sources to support
expenditures to be made during the year broken down by allotment class/expenses. The ABM shall contain,
among others, the following information:
a. The amount to be released categorized under “Not Needing Clearance” column,
b. The amount that will be released through the issuance of Special Allotment Release Order
(SARO) categorized under “Needing Clearance” column including continuing appropriations
based on the Statement of Allotments, Obligations and Balances (SAOB).

An Annual Cash Program, which shall provide cash to finance the programs reflected in the ABM and
the prior year’s accounts payable, is also submitted with the ABM. Upon approval of the total comprehensive
release by the DBM, it will be released to the agency.

For request “Non-Needing Clearance”, the Notice of Cash Allocation (NCA) is issued as requested.
Pursuant to the Tax Remittance Advice (TRA) system as provided in Joint Circular No. 1-200 of the DOF, DBM
and COA dated January 3, 2000, the NCA released to the agency

Is reduced by the amount of the taxes withheld to be remitted by the DBM for the Agency thru the TRA based
on the request of the agency duly supported by the Summary of Taxes Withheld (STW).

5. Upon the approval and issuance of the ABM and the SARO, the DBM shall enter the pertinent data on
releases for each government agency in the Registry of Appropriations and Allotments (RAPAL). The
DBM shall maintain the Registry of Allotments and NCA (RANCA) for the allotments and the NCA
issued to the agency. The RANCA shall be the control and monitoring record of the DBM and shall
furnish the BTr a copy of the NCA.

6. Upon receipt of the NCA from DBM, the BTr shall enter it in the Registry of NCA and Replenishment
(RENREP). It shall also enter the transfer of cash from its bank account(s) to the appropriate MDS
account.

7. Upon receipt of the approved ABM and ARO, the Budget Officer shall record the allotment to the
respective registries through the Allotment and Obligation Slips (ALOBS). Although the agency will
not journalize its appropriation and allotments, it shall maintain four registries for the obligations it
incur:
- Registry of Allotment and Obligations – Capital Outlay (RAOCO)
- Registry of Allotment and Obligations – Maintenance and Other Operating Expenses
(RAOMO)
- Registry of Allotment and Obligations – Personal Services (RAOPS)
- Registry of Allotment and Obligations – Financial Expenses (RAOFE)
 8. Tax Remittance Advice- A serially-numbered document that should be used by the NGAs in
the remittance of withheld taxes on funds coming from DBM. This form is being attached to
every withholding tax return filed as payment for taxes withheld. This shall be the basis for
the BIR and the Bureau of Treasury (BTr) to record the tax collection in their respective
books of accounts.

9. The Department of Budget and Management requires national government agencies to

submit, on a regular basis, Budget Execution Documents (BEDs) which contain the agencies
targets and plans for the current year and the Budget Accountability Reports (BARs) which
contain information on the agencies actual accomplishments and performance for a given
period.

10. The three authorities are :

1. 1. Notice of Cash Allocation (NCA) - authority issued by the DBM to central, regional
and provincial offices and operating units to cover the cash requirements of the
agencies;

2. Non-Cash Availment Authority (NCAA)- authority issued by the DBM to agencies to

cover the liquidation of their actual obligations incurred against available
allotments for availment of proceeds from loans/grants through supplier's
credit/constructive cash;

3. Cash Disbursement Ceiling(CDC)- authority issued by DBM to the Department of

Foreign Affairs (DFA) and Department of Labor and Employment (DOLE) to utilize
their income collected/retained by their Foreign Service Posts (FSPs) to cover their
operating requirements, but not to exceed the released allotment to the said post

MCQ

1. B. BUDGETARY ACCOUNTING

2. D. NATIONAL BUDGETARY SYSTEM

3. C. NATIONAL GOVERNMENT BUDGET

4. A. EXECUTIVE DEPARTMENT

5. B. AUTHORIZATION

6. C. BUDGET EXECUTION

7. B. ACCOUNTABILITY
8. D. APPROPRIATION

9. A. APPROPRIATION

10. C. ALLOTMENT

11. A. OBLIGATION

12. A. PROGRAM

13. A. CASH- MDS REGULAR

SUBSIDY FROM NATIONAL GOVERNMENT

14. A. RAOCO,RAOPS,RAOMO AND RAOFE

15. A. SPECIAL ALLOCATION RELEASE ORDER

16. D. SALARIES AND WAGES

17. C. LAND IMPROVEMENT

18. C. BUDGET EXECUTION DOCUMENTS

19. A. PHYSICAL AND FINANCIAL PLAN

20. D. STATEMENT OF ALLOTMENTS,OBLIGATIONS AND BALANCES

21. B. NOTICE OF CASH ALLOCATION

22. C. APRIL 15

23. C. JUNE 30 OF THE CURRENT YEAR

24. C. ALL NCAS PROGRAMMED AND CREDITED FOR THE MONTH WHETHER PART OF THE
COMPREHENSIVE RELEASE OR CONSTITUTING THE ADDITIONAL NCA RELEASE, SHALL
BE VALID ONLY UNTIL THE LAST WORKING DAY OF THE FISCAL YEAR

25. D. FIFTEEN DAYS AFTER THE APPROVAL BY THE PRESIDENT OF THE PHILIPPINES

26. C. LINE-ITEM BUDGET

27. B. SPECIAL BUDGET

28. C. BUDGET CALL

29. B. JANITORIAL SERVICES

 PROBLEM:

1.

 PERSONNEL SERVICES - P100,000,000

 MAINTENANCE AND OTHER OPERATING EXPENSES- P5,000,000

 NEEDING CLEARANCE PORTION: PERSONNEL SERVICES P10,000,000

 MAINTENANCE AND OTHER OPERATING EXPENSES- P3,000,000

 CAPITAL OUTLAY- P 20,000,000

 TOTAL- P 138,000,000

1.

 JANUARY- P2,000,000

 FEBRUARY- P2,000,000

 MARCH- P 2,000,000

 APRIL- P3,000,000

 MAY- P6,000,000

 JUNE- P 2,000,000

 TOTAL- P17,000,000

2.

FOR THE MONTH OF MAY 2012- P 6,000,000

3.

THE BALANCE IS -0-.