Budget Services Office

Allotment – authorization issued by the DBM to an agency, through authority contained in the GAA or the release of SARO, permitting the agency to commit/incur obligation and/or pay out funds within a specified period of time within the amount specified for the purpose indicated therein.

Appropriation – an authorization pursuant to laws or other legislative enactment directing the payment of goods and services out of government funds under specified conditions or for specified purposes.

Budget – The budget is the government’s plan for a year.  It is a table/schedule of expenditures, based on either obligations or cash concept and the corresponding sources of financing, either from revenues, borrowings or cash balance drawdown.  Ultimately, it is a tool that enables government to achieve its development agenda.

Budget Call – a budget document issued by the DBM at the start of the budget preparation phase.  This document contains the following: Budget Priorities Framework, macroeconomic assumptions and fiscal parameters for the Proposed Budget; Guidelines, procedures and prescribed forms in formulating budget proposals; a separate Corporate Budget Call is issued for government corporations.

Budgeting – Allocation of revenues/borrowed funds among agency programs and projects to attain socio-economic goals and within bounds of fiscal sustainability/prudence.

Expenditure Program – The ceiling on the obligations that could be incurred by the government in a given budget year. The said ceiling is supported by estimated financial resources.

General Fund – Fund which is available for any purpose to which the Congress may choose to apply, and is composed of all receipts or revenues which are not otherwise accruing to other funds.

Obligation – A commitment by a government agency arising from an act of a duly authorized official which binds the government to the immediate or eventual payment of a sum of money.  The agency is authorized to incur obligations only in the performance of activities which are in pursuit of its functions and programs authorized in appropriations acts/laws within the limit of the allotment released by the DBM.

Special Allotment Release Order (SARO) – a specific authority issued to identified agencies to incur obligations not exceeding a given amount during a specified period for the purpose indicated.  It shall cover expenditures the release of which is subject to compliance with specific laws or regulations, or is subject to separate approval or clearance by competent authority.

BURS – Budget Utilization Request and Status

DBM – Department of Budget and Management

GF – General Fund

GAA – General Appropriations Act

ORS – Obligation Request and Status

OSBP – Online Submission of Budget Proposal

RAOD – Registry of Allotments, Obligations and Disbursements

RAPAL – Registry of Appropriations and Allotments

STF – Special Trust Fund

ORGANIZATION AND RESPONSIBILITIES OF BUDGET SERVICES OFFICE

• Provides executive direction and control in the preparation of a total resource and expenditure budget and in the execution and control of the University Budget;

• Reviews and evaluates legislative proposals that have budgetary or organizational implications to the University;

• Establishes general monetary limit covering the university’s program and project obligations taking into account that no major deviation in established work program from goals and monetary amount is made without prior approval of the University President;

• Assists the University President in justifying the university budget to the Board of Regents, Commission on Higher Education, Department of Budget and Management, House of Representatives and Senate;

• Spearheads the achievement of economy and efficiency in the management of University operations; and 

• Directs and controls the operation of the different sections under the Budget Services.

Functions of the Budget Technical Section

• Reviews, evaluates and monitors budgetary request;

• Establishes mechanism for the university’s budgeting system;

• Studies and designs changes in budget formulation if necessary;

• Issues university budget circulars, budgetary guidelines and budgetary instructions;

• Prepares budget calendar for the university;

• Realigns approved appropriation into operating budgets for each major program according to organization’s responsibility;

• Evaluates request for modification of the university budgetary program/project structures;

• Prepares materials for the university budget proposals.

Functions of the Budget Operations Section

• Processes and analyzes work and financial plans and other budgetary requests of the different units and activities of the university;

• Advises and assists all concerned university officials and offices in the preparation of the university budget proposals and the control of obligation and expenditures within the approved university budget;

• Processes and recommends for approval of disbursement vouchers for salaries, equipment, supplies, and other claims arising from regular operations through the ORS/BURS; and

• Controls releases of allotment to conform to the university’s program of expenditures.

OPERATING PROCEDURES

1. PUP Budget Proposal Preparation

1. The DBM issues the National Budget Call for the preparation of agency proposed budgets;

2.  Upon receipt of the National Budget Call, the OVPF through the BSO prepares and issues a schedule of budget forum or issues a Memorandum to all officials of the university to prepare and submit to the BSO their budget proposals within the prescribe time-frame;

3.  The BSO consolidate the proposals and evaluates the documents submitted has sufficiently complied with the prescribed forms;

4. The VPF reviews the budget to determine whether the proposed program/activities/projects are relevant to the university and national goals, and it is a realistic estimate than can be justified;

5.  The budget proposal is submitted to the University President for approval.  The President will present and recommend to the BOR its approval and endorsement to the Commission on Higher Education and the DBM;

6.  Upon approval by the BOR the BSO submits PUP budget proposal to the DBM through the OSBP and submits hard copy with the documents that shall support the proposals.

2. Recording of Appropriations and Allotments

1. Upon receipt of the GAA and SARO the documents are forwarded to assigned Budget Staff for recording in the Registry of Appropriations and Allotments (RAPAL);

2. The concerned budget staff records the appropriations and allotments in the appropriate column of the RAPAL and RAOD;

3. Forwards a copy of the allotment release documents to the Accounting Department for reference.

3. ORS and BURS Preparation

1. The receiving/releasing staff receives the disbursement vouchers/payrolls, contracts, purchase orders supported by valid claim documents from the requesting office and verifies the completeness of the documents;

2. If complete, records the same in the logbook maintained for the purpose and forwards the documents to the concerned budget staff for processing.  If incomplete, returns the documents for completion;

3. The concerned budget staff verifies the availability of allotment;

4. If there is an available allotment to cover the obligations, the budget staff assigns a number in the ORS/BURS based on the control record maintained for the purpose. .  If allotment is not available, returns the documents to the office concerned;

5. The budget staff prepares the ORS (GF) and BURS (STF) in three copies and forward the ORS/BURS and the supporting documents to the Chief of the Budget Operations Section;

6. The Chief of the Budget Operations Section reviews ORS/BURS and process the same for database management;

7. The releasing clerk forwards the ORS/BURS to the Sectoral Vice Presidents and Director, HRMD for certification in the Section A of the ORS/BURS as to the necessity and legality of charges to the budget under his/her supervision and validity, propriety and legality of the transactions;

8. The office of the Sectoral VP and Director, HRMD returns the documents to the BSO for signature of Section B by the Director, BSO;

9. The Budget Director will certify the availability of allotment and such is duly obligated by signing the Section B of the ORS/BURS;

10. The concerned staff forwards the ORS/BURS with the supporting documents to the Accounting Department for processing of the claim;

11. The BSO retains original copies of the ORS/BURS for monitoring of obligation status.