MODULE 4

1
BARANGAY BUDGETING WORKBOOK:
USERS MANUAL
(17 FEBRUARY 2008 VERSION)
A. INTRODUCTION
The barangay budgeting workbook provides a worksheet-based facility
for preparing the barangay budget, particularly the Annual Investment Plan
(AIP).
The worksheet has the following features:
User-friendliness
Internally linked
Provides a warning for statutory requirements
Generates indicators for gender-responsiveness
Minimizes error protecting formulas (to be done)
The worksheets used the forms found in the 2006 Budget Operations
Manual for Barangays (BOMB).
There are several worksheets in the workbook, namely: (a) the Information
Worksheet; (b) the Barangay Budget Preparation Form Worksheets; (c) the AIP
Form Worksheets; (d) the Revenue forecasting worksheet; (e) the AIP Project
Worksheets; and (f) the personnel time utilization worksheet. Each of these
worksheets is discussed subsequently.
B. THE WORKSHEETS
Information Worksheet (InfoSheet)
This worksheet provides summary information on the barangay, including
name, budget year, and demographic information, to be used as input in individual
worksheets. Figure 1 provides a picture of the information worksheet.
Budgeting workbook manual.indd 1 1/26/2010 5:31:26 PM
BARANGAY BUDGETING WORKBOOK
2
Figure1. Information Sheet
Barangay Budget Preparation Form No. 2-4 (BBPF2-4)
These worksheets provide the actual income and expenditure for the
past (next preceding) budget year (BBPF2), the current (preceding) budget
year (BBPF3), and the budget year (BBPF4). The worksheets have identical
elements except that the budget preparation form for the current (preceding)
year (BBPF3) divides the revenues and expenditures into actual gures for the
rst six months of the year and estimated gures for the second six months of
the year, to reect the availability of actual data.
Figure 2 is a picture of Income and Expenditure for the Budget Year
(BBPF4).
Budgeting workbook manual.indd 2 1/26/2010 5:31:41 PM
MODULE 4
3
Figure 2. Income and Expenditure for the Budget Year (BBPF4).

Barangay Budget Preparation Form No. 4
Barangay: ABC
City/Municipality: DEF
Part A. Income TOTAL
Beginning Balance 10,690.37
Share on Internal Revenue Collections 1,620,159.00
Share on Real Property Tax 221,988.07
Business Taxes (Stores & Retailers) 11,000.00
Shares on Sand & Gravel Tax
Share on National Wealth
Share on EVAT
Miscellaneous Taxes on Goods & Services 2,200.00
Other Taxes
Other Specific Income
Subsidy from Other LGUs
Total Available Resources 1,866,037.44
Part B. Expenditures
Program/Project/Activity Personal Maintenance & Capital
Major Final Output Services Other Operating Outlay TOTAL
Expenses
Agricultural Services
1.1 Establishment of Plant Nursery
Daycare Services
Health and Nutrition Services 89,899.00 89,899.00
Peace & Order Services 32,964.00 32,964.00
Administrative & Legislative Services 814,419.74 88,083.43 75775.099 978,278.27
Implementation of Development Projects
(20% of IRA) 324,031.80
Implementation of SK Projects (10% SK
Funds) 184,396.63
Implementation of Projects/Activities for
Unforseen Events (5% Calamity Fund) 92,198.32
Other Services 92,198.32
Total Expenditures 937,282.74 88,083.43 75,775.10 1,793,966.34
Balance/Deficit 72,071.10
Prepared By: Certified By: Approved By:
______________________ _______________________ _______________________
Barangay Treasurer City/Municipal Accountant Punong Barangay
Instructions:
A. Indicate in Part A the estimated income (less beginning balance for the Budget Year.
B. Indicate in Part B the estimated expenditure allotment by class and by Program/Project/Activity
or major Final Output.
INCOME AND EXPENDITURE ESTIMATES FOR BUDGET YEAR
AIP Form 4 (AIP F4)
This worksheet provides a summary of the barangays priority development
projects, funded out of the Development Fund (at least 20% of internal revenue
allotment or IRA)
Budgeting workbook manual.indd 3 1/26/2010 5:31:41 PM
BARANGAY BUDGETING WORKBOOK
4
Figure 3. Projects Funded from Development Fund (AIP F4)

AIP Form No. 4
Barangay: ABC
City/Municipality: DEF
TOTAL IRA for Barangay 1,620,159
x 20% 324,032
Priority Developmet Projects funded by the
20% of IRA
Project Description (1)
Nutrition Program 15,500 15,500
Sanitary toilet 75,576 91,076
Education Program (Conditional Cash transfer) 103,474 194,550
Livelihood (animal dispersal) 126,454 321,004
Unallocated 3,027 324,032
Instructions:
(3) Indicate the total project cost that will complete the project.
(4) Add all project costs from Rank 1 to the last rank equivalent to the 20% of the IRA or higher.
(2) Indicate in this column the ranking of development projects in their proper order, Rank 1 is the first
priority, Rank 2 is the second, etc.
RANK (2)
PROJECT COST
(3)
CUMULATIVE
TOTAL (4)
PRIORITIES FOR DEVELOPMENT PROJECTS
(20% OF IRA), BY ____________________
Note: Formulated and endorsed in a BDC planning workshop conducted last
______________________. For approval by the SB.
(1) Describe the project to be implemented like construction of a Day Care Center, acquisition of a
computer etc. in their order of priority.
AIP Form 5 (AIP F5)
This worksheet summarizes a barangays priority development projects to
be funded from external sources.
AIP Project Budget (AIProj?)
This worksheet provides the costing details of each AIP project. This is
the heart of the budgeting workbook.
Worksheet Sections. The worksheet is divided into ve sections (A to E).
Section A identies the nancing options. Each nancing option is contained in
a column. Section B provides the costs. Costs are disaggregated into personnel
(B1), material (B2), and capital expense (B3). B4 simply sums B1, B2 and
B3. Section C provides the distribution of the budget across local funding
(Barangay Development Fund), Municipal/City Development fund, and other
external funding. Section D provides the details of the computation of per unit
cost. Together with the number of prospective beneciaries, this computation
provides the basis for budget allotments thereby improving the transparency
of fund allocations. Finally, Section E provides the sex disaggregation of the
prospective beneciaries, to provide some prospective incidence analysis. If
the service to be provided is at the individual level, e.g. nutrition intervention
Budgeting workbook manual.indd 4 1/26/2010 5:31:41 PM
MODULE 4
5
or education intervention, then CBMS data on these outcomes provides the
disaggregation by sex of the intended beneciaries. When the services to be
provided are for households, e.g. toilet facilities or livelihood programs, then
it will be assumed initially that the household members will equally benet
from the program. Thus, the sex disaggregation of the household members
beneted is used. This will provide a direct measurement of the beneciaries
of the programs/projects being proposed. This assumption of equal benet
can be improved if data becomes available that will allow renement of this
assumption.
Providing figures on the number and the sex-disaggregation of the
beneciaries demonstrates the strength of the CBMS data. It connects plans
and budgets to identied and quantied community needs. It also provides a
sex-disaggregate accounting of prospective beneciaries of programs, projects
and activities (PPAs).
Computing Unit Cost. Computing unit cost requires the denition of the
unit of costing. This can either be per person or per household. For instance,
in the nutrition project (AIPProj1) the unit of cost is on per child basis. The
number of beneciaries (malnourished children) is taken from the CBMS
tabulation. Computing for per unit cost is usually based on administrative
data on programs. In the nutrition project, the cost of the food for the feeding
program is P20 and P5 is the cost of gas for cooking per day. Feeding is done
5 school days per week and will run for 12 weeks, yielding a unit cost of 1,500
per child. The personnel cost will be based on the wage of the personnel
directly involved the project and the proportion of time he/she will spend
on the project. Again using the nutrition program as an example, the BHW
is assumed to spend one-fourth of his/her time on the project, so one-fourth
of his salary will be charged to the project. Similarly, a proportional allocation
will be done for capital equipment if these are used only part of the time for
the project. If it is fully utilized for the project alone then this should be fully
charged to the project. If the equipment is rented, the rental value should be
used. If the equipment is purchased, the capital consumption allowance or
depreciation would be budgeted. For instance, in the nutrition program, for
cooking facilities costing 10,000 pesos with a useful life of 5 years the presumed
depreciation is 2,000 per year.
Sex-disaggregation of beneficiaries. To generate sex-disaggregation
for the beneficiaries one needs to determine the recipient unit of the
service a person or a household. This is also the unit of costing. For
instance, in the case of the nutrition project (AIPProj1) the costing unit
is per person. The sex disaggregation of would be beneficiaries is given
by tabulating the CBMS data on malnourished children as it is presumed
that they will be the recipients of the intervention. In the case where the
recipient is a household, such as the Sanitary Toilet project (AIPProj2), one
Budgeting workbook manual.indd 5 1/26/2010 5:31:41 PM
BARANGAY BUDGETING WORKBOOK
6
needs to assume a distribution of the benefits. The simplest assumption is
proportional to the sex-disaggregation of the members of the beneficiary
household. If the specific beneficiary household cannot as yet be identified,
such as in the case where projects do not intend to cover the whole subject
population, the community sex disaggregation (provided in the InfoSheet)
can be used as proxy. The presumption is that selection of beneficiaries is
at random so that the sex disaggregation of the community is presumed to
be maintained. If necessary, the attribution of benefits can be fine-tuned
some more based on the programmed implementation of the project. In
addition, project implementation programming can be done with desired
sex-differentiated impacts as an important consideration.
Allowing for several nancing options. When a project has several nancing
options, one can use different columns to dene these choices. For instance,
AIPProj2 has two nancing options while AIPProj3 has three nancing options.
The nancing options for AIPProj2 are 100% LGU (i.e., DF) funded or 50%
LGU funded. For AIPProj3, three nancing options were presented, namely:
(a) 100% LGU funded at 5% coverage, (b) 50% LGU funded at 10% coverage,
and (c) 20% LGU funded at 30% coverage.
To enable the use financing option selections one needs to define and
attach a name to the financing option data range. The financing option data
range is from the A. Financing Option row to the last row in Section C
and from the Financing label column to the last financing options column.
In the case of AIPProj2 the financing option data range is from B3:D25.
To attach a name to the financing option data range, do the following: (a)
select Financing Options Data Range; (b) click Insert/Name/Define; (c) in
the Names in workbook, input the name for the range (this is Financing_
Option_P2 of AIPProj2); note that in the Refers to: window, the appropriate
range has already been provided because the range selection had been done
earlier; (d) select OK. The range has been named. The name is useful for
selecting the financing options automatically.
Figure 4 provides a sample project worksheet where the sections described
above are shown.
Budgeting workbook manual.indd 6 1/26/2010 5:31:41 PM
MODULE 4
7
Figure 4. Sample Project Budget Worksheet

Title of Project Sanitary toilet
1 A. Financing Option Option 1 Option 2
2 Description 100% LGU 50% LGU
3
4 B. Costs
5 B1. Personnel 12000 12000
6 BHW (P4000/month) (1/4 time) 12000 12000
7
8
9 B2. Material 139,153 139,153
10
11 No of households without
12 sanitary toilet (CBMS 2006) 835 835
13 Unit Cost 500.00 500.00
14 Coverage for the budget year (over 3 years) 33.33 33.33
15
16 B3. Capital Equipment
17
18
19 B4. Total 151,153 151,153
20
21 C. Financing
22 Bgy Development Fund 151,153 75,576
23 Mun/City Development Fund 0 75,576
23 External 0 0
D. Unit cost (per household) computation
Material 500
Cost of toilet bowl plus installation 400
Information/Educ. campaign 100
Personel (BHW) 12000
Time in the project 0.25
Salary per month 4000
Months 12
Capital Equipment
E. Sex-disaggregation of beneficiaries
Total 1,392
Male 716
Female 675
Male/Female Ratio (Male per 100 Female) 106
AIP Project Summary (AIPProjSum)
This worksheet provides the summary of the AIP projects both funded
from the Development Fund and External sources.
Specic cells in this worksheet are linked to specic cells in the other
AIPProj worksheets:
(a) Amount of development fund (B4) is linked to the development fund
in the current budget year (BBPF4!E32).
(b) The sources of nancing column are linked to the corresponding
nancing cells in each of the project worksheets.
The Budget Total column is merely the sum of the Development Fund and
External Fund columns.
Budgeting workbook manual.indd 7 1/26/2010 5:31:41 PM
BARANGAY BUDGETING WORKBOOK
8
Linking Financing Cells. To get the summary of the AIP project budgets,
one needs to link specic cells in the summary worksheet to specic cells in
the project worksheet. The cells in the Development Fund and External Fund
columns need to be linked to corresponding cells in the project worksheets.
When there is only one nancing option, one needs to link specic cells in the
summary worksheet to the corresponding cell in the project worksheet. For
instance, the Development Fund cell for the nutrition program is linked to cell
C22 of the AIPProj1. To link, just type = in the destination cell then move to
the specic cell in the project worksheet e.g. C22 in the AIPProj1, then press
Return/Enter. The data in that specic cell is shown in the destination cell. The
link is now established. All changes in the source cell will be reected in the
destination cells as well; this is what linked cells mean. This can be done for
the External fund column as well.
In case the project has several nancing options, one can automate the
selection of the nancing options by dening the options in the nancing
options column.
Dening nancing options needs a listing of the options in the corresponding
cell. To dene options do the following: (a) go to the cell where options are to
be dened (e.g. E13 in the budget workbook), (b) Click Data/Validation, (c)
in the Allow: window select List, (d) in the Source: window, type in <Option
1, Option 2>, (e) then select OK. A drop down button would be added to the
cell and clicking at the button will show the option list. If there are more than
two nancing options, input the required number. To activate the nancing
option selection the HLOOKUP( ) function is used. The syntax of HLOOKUP
function is given in Box 1.
Box 1: Syntax of the HLOOKUP function

Description: Searches for a value in the top row of a table or any array of values, and then returns a value in
the same column from a row you specify in the table or array.

HLOOKUP(lookup_value, table_array, row_index_num, range_lookup)

Lookup_value is the value to be found in the first row of the table. Lookup_value can be a value, a
reference, or a text string.

Table_array is a table of information in which data is looked up. Use a reference to a range or a range name.

The values in the first row of table_array can be text, numbers, or logical values.

If range_lookup is TRUE, the values in the first row of table_array must be placed in ascending order;
otherwise, HLOOKUP may not give the correct value. If range_lookup is FALSE, table_array does not
need to be sorted.

Row_index_num is the row number in table_array from which the matching value will be returned. A
row_index_num of 1 returns the first row value in table_array, a row_index_num of 2 returns the second row
value in table_array, and so on.

Range_lookup is a logical value that specifies whether you want HLOOKUP to find an exact match or an
approximate match. If TRUE or omitted, an approximate match is returned. In other words, if an exact match
is not found, the next largest value that is less than lookup_value is returned. If FALSE, HLOOKUP will find
an exact match. If one is not found, the error value #N/A is returned.
Source: MS Excel Help File.
Budgeting workbook manual.indd 8 1/26/2010 5:31:41 PM
MODULE 4
9
In the Sanitary toilet example (AIPProj2) the HLOOKUP function has
the following parameters: the Lookup_value is given by the corresponding
cell in the Financing Options column (E13 in the Sanitary Toilet project); the
Table_array is named Financing_Option_P2 of the Sanitary Toilet project; the
Row_index_num is 22 (see the sequence numbers in column A of AIPProj2,
the corresponding number of External is 23); the Range_lookup is FALSE
because we need not sort the options. The HLOOKUP function parameters
of the External Fund cell are identical except that the Row_index_num is 23,
rather than 22.
The Remarks column also uses the HLOOKUP function. In the example,
this would refer to the nancing label row, i.e. the Row_index_num is 2.
Figure 5 provides the Sample AIP program structure. Note the HLOOKUP
function in the selected cell (C13).
Figure 5. Sample AIP Program Structure (AIPProjSum)



HLOOKUP Formula
Revenue Forecasting Worksheets (RevFor)
This worksheet provides the forecast of revenues from the different sources.
It also provides estimates of the basis for statutory allocation such as regular
income or general fund.
The forecast of revenues for the budget year uses the MS Excel function
TREND to automate the forecasting of revenue sources using the linear trend
method. The syntax of the TREND function is given in Box 2.
Budgeting workbook manual.indd 9 1/26/2010 5:31:42 PM
BARANGAY BUDGETING WORKBOOK
10
Box 2. Syntax of the TREND function
TREND computes the values along a linear trend (y=mx+b) fitted through a method of least squares.
TREND(known_revenues,known_years,forecast_year,const)
Known_revenues is the set of revenue values that are available
Known_years is an optional set of year values where revenues are available
If known_year is omitted, it is assumed to be the array {1,2,3,...} that is the same size as
known_revenues.
Const is a logical value specifying whether to force the constant b to equal 0.
If const is TRUE (non-zero value) or omitted, b is calculated normally.
If const is FALSE, b is set equal to 0 (zero), and the m-values are adjusted so that y = mx.
Source: MS Excel Help File
Figure 6. Sample Revenue Forecasting Worksheet.

Revenue Forecast
Next
Preceding Preceding Budget
Year Year Year
2006 2007 2008
1 Beginning balance 0.00 0.00 10,690.37
2 Internal Sources 213,807.34 224,497.71 235,188.07
3 Tax Revenues 213,807.34 224,497.71 235,188.07
4 Share on Real Property Tax 201,807.34 211,897.71 221,988.07
5 Business Taxes (Stores & Retailers) 10,000.00 10,500.00 11,000.00
6 Shares on Sand & Gravel Tax
7 Miscellaneous Taxes on Goods & Services 2,000.00 2,100.00 2,200.00
8 Other Taxes
9 Non-tax revenue 0 0 0
10 Permit and licenses
11 Clearance and certification fees
12 Business income
13 Sale of assets
14 Other Specific Income
15
16 External Sources
17 Tax Revenues 1,492,912.00 1,493,168.00 1,620,159.00
18 Share on Internal Revenue Collections (IRA) 1,492,912.00 1,493,168.00 1,620,159.00
19 Share on National Wealth
20 Share on EVAT
21
22 Non-tax revenues 0 0 0
23 Subsidy from Other LGUs
24 Loan proceeds
25 Others
26
27 Regular Income (1+3+10+11+12+14+17+23+25) 1,706,719.34 1,717,665.71 1,866,037.44
28 General Fund (26+12+23) 1,706,719.34 1,717,665.71 1,866,037.44
Statutory Requirements
SK (10% of 28) 170,671.93 171,766.57 186,603.74
DF (20% of 18) 298,582.40 298,633.60 324,031.80
Calamity (5% of 27) 85,335.97 85,883.29 93,301.87
GAD (5% of 28) 85,335.97 85,883.29 93,301.87
PS (55% of 27 of next preceeding year) 938,695.64
Unallocated 230,102.52
Budgeting workbook manual.indd 10 1/26/2010 5:31:42 PM
MODULE 4
11
Personnel Time Utilization (Personnel)
This worksheet provides an accounting of the time utilization of personnel
directly involved in the AIP projects.
AIP Project Budget Form (AIPProjForm)
This worksheet provides a blank form for new projects. Use this worksheet
to add a new worksheet for a new project.
Adding a new project worksheet. To do this, right-click on the Worksheet
tab; select Move or Copy; in Before sheet list select the worksheet where you
want to pla ce the new project worksheet; check the box labeled Create a copy;
select OK. A new worksheet is then added. Double click on the tab of the new
worksheet to rename it. One can now input data on the new project. Once
the budgeting for the new project is done, add the project to the summary
worksheet (AIPProjSum) by establishing the needed links to the new project
worksheet.
Figure 7. AIP Project Worksheet Form

Worksheet tab
Budgeting workbook manual.indd 11 1/26/2010 5:31:42 PM