03 Fiscal Management

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BARANGAYFISCALMANAGEMENT


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The BUDGET


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Composition of the barangay budget

1. Income portionconsist of beginning balances unappropriated and/or unexpended amounts of revenues and receipts.

> Tax Revenue (Real Property Tax)Taxes on Goods & Services> Operating & Miscellaneous Revenue

Operating & service incomeMiscellaneous income-contribution

> Capital Revenue> Grants> Extraordinary receipts> Borrowings


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Composition of the barangay budget

2. Expenditure portionconsist of estimated expenditures, which are thetotal appropriations covering Current Operating

Expenditures & Capital Outlay

> Current Operating ExpendituresPersonnel ServicesMaintenance and Other Operating Expenses

> Capital Outlay


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Budget Limitations

1. The barangay budget shall not exceed theestimated tax receipts and/or income for theimmediately following calendar year

certified as collectible by the city ormunicipal treasurer concerned. (Sec. 324a)

2. The budget shall also provide for staturoty

and contractual obligations of thebarangay. (Sec. 324b)


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Budget Limitations

3. The budget shall not provide for per diems,wages or salaries and other compensationin excess of those provided under existing

laws and executive orders.

4. The total annual appropriations forpersonal services of a barangay for one (1)

fiscal year shall not exceed fifty-five percent (55%) of the total annual incomeactually realized from local sources duringthe next preceding fiscal year. (Sec. 331b)


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Financial Management

A. The Punong Barangay and theBarangay Treasurer should be bonded.


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A. The Sangguniang Barangay but thebond shall not exceed ten thousand

pesos (P10,000.00)

A. The Barangay.


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A. The treasurer shall see to it that:

Disbursement of Funds (Sec. 336)

1. The disbursement is authorized inthe budget;

2. There is a resolution of the

Sangguniang Barangay;3. The voucher is signed by the payee

and approved by the Punong

Barangay;


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4. The funds are available in theBarangay Treasury; and

5. Auditing rules and regulations arecomplied with


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A. Yes, the barangay treasurer may beauthorized by the Sangguniang

Barangay to make direct purchasesnot in excess of P1,000.00 at any timefor ordinary and essential needs of the

barangay.


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A. Yes, provided the amount of pettycash is not more than 20% of the fundsavailable and should be deposited inthe name of the Barangay Treasurer.

A. Yes.


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A. The representative of the Commissionon Audit (COA) shall audit the

barangay funds annually or as oftenas necessary.

Audit of Barangay Funds (Sec. 334c)

A. To the Sangguniang Panlungsod/Bayan as the case maybe.


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PURPOSE/SERVICES FUND LEGAL BASISPersonal Services 55% /45% of local

sources

LGC of 1991

Local Development At least 20% of IRA LGC of 1991

SK 10% of General Fund LGC of 1991

DRRMF 5% of Regular Income Phil DRRM Act of 2010

GAD 5% of Total Income Magna Carta of Women 2008

BCPC 1% of IRA Juvenile Welfare Act of 2006

Anti Drugs Abuse Substantial Amount Comprehensive Dangerous

Drugs Act of 2002

Senior Citizen and

Differently Abled

Person

1% of General Fund Expanded Senior Citizen Act

of 2003 and Magna Carta of

Disabled Persons 2009


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MANDATORY ALLOCATION ,SK FUNDS

Green Brigade = 10%

Livelihood = 10%

Capability Building = 10%

Anti Drug Campaign = 10%

Annual Dues = 2%


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Definition of Terms


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SPECIAL ACCOUNT

LGU shall maintain special account in thegeneral fund for the following: (a) publicutilities and other economic enterprisexxx;

Profits and income derived from the operation ofpublic utilities and other economic enterprise , afterdeduction for all the cost of improvement, repairand maintenance and other related expenses of

public utilities or economic enterprise concerned ,shall first be applied for the return of the advancesor loan made therefore. Any excess shall form partof the general fund of the local government unitconcerned


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PERSONAL SERVICES, MAINTENANCE & OTHEROPERATING EXPENSES, CAPITAL OUTLAY

PERSONAL

SERVICES

MAINTENANCE

AND OTHER

OPERATING

EXPENSES

CAPITAL

OUTLAY

Appropriations for the payment of salaries, wages &other compensation (e.g. cost of living allowances,

honoraria, commutable allowances) of permanent,

temporary, contractual & casual employees of the

LGUs. (IRR, 7160)

Appropriations for the purchase of goods &

services, the benefits of which extend beyond the

fiscal year & which add to the assets of the LGU

concerned, including investments in public utilities,

such as public markets & slaughterhouses. (IRR of

RA 7160)

Appropriations for the purchase of goods andservices for the conduct of normal local

government operations within the fiscal year,

including goods and services that will be used or

consumed during the budget year.


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a. PS Cap

55% for Barangays (Sec 331 [b])b. Salary rate within that fixed by applicable

laws, rules and regulations

c. No local fund to be used to increase/adjustsalaries of NG employees/officials, except

as may be expressly authorized by law

d. Abolition of positions and creation of new

ones from abolished positions must be inaccordance with provisions of LGC and civil

service laws, rules and regulations


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e. Plantilla positions for career positionsoccupied by incumbents holding permanentappointments shall be covered by adequateappropriations

f. No changes in designation andnomenclature of positions resulting in

promotion/demotion or increase/decrease incompensation shall be allowed except if theposition is actually vacant


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g. Creation of positions, salaryincreases/adjustments shall in no case be

made retroactive

h. Discretionary fund for LCE shall not

exceed 2% of the actual receipts from

BASIC real property tax in the next

preceding calendar year


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03 Fiscal Management

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