BARANGAY FISCAL MANAGEMENT

The BUDGET

Composition of the barangay budget

1. Income portion
consist 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 income Miscellaneous income-contribution > Capital Revenue > Grants > Extraordinary receipts > Borrowings

Composition of the barangay budget

2. Expenditure portion
consist of estimated expenditures, which are the total appropriations covering Current Operating Expenditures & Capital Outlay > Current Operating Expenditures Personnel Services Maintenance and Other Operating Expenses > Capital Outlay

Budget Limitations
1. The barangay budget shall not exceed the estimated tax receipts and/or income for the immediately following calendar year certified as collectible by the city or municipal treasurer concerned. (Sec. 324a) The budget shall also provide for staturoty and contractual obligations of the barangay. (Sec. 324b)

2.

Budget Limitations
3. The budget shall not provide for per diems, wages or salaries and other compensation in excess of those provided under existing laws and executive orders.

4.

The total annual appropriations for personal services of a barangay for one (1) fiscal year shall not exceed fifty-five per cent (55%) of the total annual income actually realized from local sources during the next preceding fiscal year. (Sec. 331b)

Financial Management

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

A. The Sangguniang Barangay but the bond shall not exceed ten thousand pesos (P10,000.00)

A. The Barangay.

Disbursement of Funds (Sec. 336)

A. The treasurer shall see to it that: 1. 2. 3. The disbursement is authorized in the budget; There is a resolution of the Sangguniang Barangay; The voucher is signed by the payee and approved by the Punong Barangay;

4. 5.

The funds are available in the Barangay Treasury; and Auditing rules and regulations are complied with

A. Yes, the barangay treasurer may be authorized by the Sangguniang Barangay to make direct purchases not in excess of P1,000.00 at any time for ordinary and essential needs of the barangay.

A. Yes, provided the amount of petty cash is not more than 20% of the funds available and should be deposited in the name of the Barangay Treasurer.

A. Yes.

Audit of Barangay Funds (Sec. 334c)

A. The representative of the Commission on Audit (COA) shall audit the barangay funds annually or as often as necessary.

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

PURPOSE/SERVICES Personal Services Local Development SK DRRMF GAD BCPC Anti Drugs Abuse Senior Citizen and Differently Abled Person

FUND 55% /45% of local sources At least 20% of IRA 10% of General Fund 5% of Total Income 1% of IRA Substantial Amount 1% of General Fund

LEGAL BASIS LGC of 1991 LGC of 1991 LGC of 1991 Magna Carta of Women 2008 Juvenile Welfare Act of 2006 Comprehensive Dangerous Drugs Act of 2002 Expanded Senior Citizen Act of 2003 and Magna Carta of Disabled Persons 2009

5% of Regular Income Phil DRRM Act of 2010

MANDATORY ALLOCATION , SK FUNDS

Green Brigade = 10% Livelihood = 10% Capability Building = 10% Anti Drug Campaign = 10% Annual Dues = 2%

Definition of Terms

SPECIAL ACCOUNT
LGU shall maintain special account in the general fund for the following: (a) public utilities and other economic enterprise xxx;
Profits and income derived from the operation of public utilities and other economic enterprise , after deduction for all the cost of improvement, repair and maintenance and other related expenses of public utilities or economic enterprise concerned , shall first be applied for the return of the advances or loan made therefore. Any excess shall form part of the general fund of the local government unit concerned

GENERAL FUND, LOCAL SOURCE, REGULAR INCOME

Generated from sources expressly authorized by law or ordinance, and collection thereof shall at all time be acknowledge properly (taxes, fees and charges) Shall Consist of monies and resources of the local government which are available for the payment of expenditures, obligations or purposes not specifically declared by law as accruing and chargeable to, or payable from any other fund.

LOCAL SOURCE

GENERAL FUND

REGULAR INCOME

refers to income coming from sources that generate or provide money for the local treasury, such money recurring at a fixed, uniform or normal intervals or frequency whether in fixed or variable amounts

PERSONAL SERVICES, MAINTENANCE & 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 and services 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. 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)

PERSONAL SERVICES

MAINTENANCE AND OTHER OPERATING EXPENSES

CAPITAL OUTLAY

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/adjust salaries 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 in accordance with provisions of LGC and civil service laws, rules and regulations

e. Plantilla positions for career positions occupied by incumbents holding permanent appointments shall be covered by adequate appropriations

f.

No changes in designation and nomenclature of positions resulting in promotion/demotion or increase/decrease in compensation shall be allowed except if the position is actually vacant

g. Creation of positions, salary increases/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