BUDGET EXECUTION,

MONITORING AND
REPORTING
CHAPTER 3
This Chapter prescribes the ff:
 guidelines in monitoring, accounting and
reporting of the budget in the financial statement
 prescribes the records to be maintained by the

national government agencies, forms to be used

and reports to be prepared to effectively monitor
the budget
 as well as the required information disclosure and

presentation of budget information in the financial

statements in accordance with PPSAS 24.
 Definition of Terms
Sec. 2.
Definition of Terms
Allotment
 is an authorization issued by the DBM to NGAs to

incur obligations for specified amounts contained

in a legislative appropriation in the form of budget
release documents.
 It is also referred to as Obligational Authority.

Appropriation
 is the authorization made by a legislative body to

allocate funds for purposes specified by the

legislative or similar authority.
Approved Budget
 is the expenditure authority derived from appropriation laws,

government ordinances, and other decisions related to the

anticipated revenue or receipts for the budgetary period.
The approved budget consists of the following:
UACS Code
New General Appropriations 01
Continuing Appropriations 02
Supplemental Appropriations 03
Automatic Appropriations 04
Unprogrammed Funds 05
Retained Income/Funds 06
Revolving Funds 07
Trust Receipts 08
Continuing Appropriations
 are the authorizations to support obligations for a
specific purpose or project, such as multi-year
construction projects which require the incurrence
of obligations even beyond the budget year.
 Ex: multi-year construction projects which require
the incurrence of obligations even beyond the
budget year. Examples of continuing appropriations
are those from existing laws such as : RA 8150,
otherwise known as the Public Works Act of 1995;
and Republic Act No. 6657 and Republic Act 8532
which set funds specifically for the Agrarian Reform
Program (ARP).
Supplemental
Appropriations
 are additional appropriations authorized
by law to augment the original
appropriations which proved to be
insufficient for their intended purpose
due to economic, political or social
conditions supported by a Certification of
Availability of Funds (CAF) from the BTr.
Automatic Appropriations
 are the authorizations programmed annually or for
some other period prescribed by law, by virtue of
outstanding legislation which does not require periodic
action by Congress.
 Falling under this category are expenditures authorized
under Presidential Decree (PD) 1967, RA 4860 and RA
245, as amended, for the servicing of domestic and
foreign debts, Commonwealth Act 186 and RA 660, for
the retirement and insurance premiums of government
employees, PD 1177 and Executive Order 292, for net
lending to government corporations, and PD 1234, for
various special accounts and funds.
Obligation
 is an act of a duly authorized official
which binds the government to the
immediate or eventual payment of a
sum of money.
 Obligation maybe referred to as a
commitment that encompasses possible
future liabilities based on current
contractual agreement.
New General Appropriations
 are annual authorizations for incurring
obligations during a specified budget
year, as listed in the GAA.
Fund Release
Documents
Sec. 3
a. Obligational Authority or Allotment
1. General Appropriations Act Release Document
(GAARD)
2. Special Allotment Release Order (SARO)
3. General Allotment Release Order (GARO)

a. Disbursement Authority
1. Notice of Cash Allocation (NCA)
2. Non-Cash Availment Authority (NCAA)
3. Cash Disbursement Ceiling (CDC)
4. Notice of Transfer of Allocation
General Appropriations Act Release
Document (GAARD)

 serves as the obligational authority for

the comprehensive release of budgetary
items appropriated in the GAA,
categorized as For Comprehensive
Release (FCR).
Special Allotment Release Order (SARO)

covers budgetary items under For Later Release

(FLR) (negative list) in the entity submitted
Budget Execution Documents (BEDs), subject to
compliance of required documents/clearances.
Releases of allotments for Special Purpose
Funds (SPFs) (e.g., Calamity Fund, Contingent
Fund, E-Government Fund, Feasibility Studies
Fund, International Commitments Fund,
Miscellaneous Personnel Benefits Fund and
Pension and Gratuity Fund) are also covered by
SAROs.
General Allotment Release Order (GARO)

is a comprehensive authority issued to all

national government agencies, in general,
to incur obligations not exceeding an
authorized amount during a specified
period for the purpose indicated therein.
It covers automatically appropriated
expenditures common to most, if not all,
agencies without need of special clearance
or approval from competent authority, i.e.
Retirement and Life Insurance Premium.
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;
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;
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;
Notice of Transfer of
Allocation
 authority issued by the Central Office to
its regional and operating units to cover
the latter’s cash requirements.
Classification of Expenditures

Sec. 4.
Classification of
Expenditures
 Expenditures of NGAs shall be classified into categories as may be
determined by the DBM including, but not limited to the following
a. Entity incurring the obligation;
b. Program, Activity and Project (PAP);
c. Object of expenditures, including personnel services (PS),
maintenance and other
operating expenditures (MOOE), financial expenses (FE), and capital
outlays (CO);
d. Region or locality of use;
e. Economic or functional classification of the expenditures;
f. Obligational authority and cash transactions arising from fund
releases; and
g. Such other classifications as may be necessary for the budget
process.
Registries of Revenue and Other
Receipts
Sec. 6.
The Registries of Revenue and Other
Receipts (Appendices 7, 7A, 7B, 7C and
7D) shall be maintained by the Budget
Division/Unit of NGAs to monitor the
revenue and other receipts
estimated/budgeted, collected and
remitted/deposited.
Registry of Appropriations and
Allotments.
Sec. 8
The Registry of Appropriations and
Allotments (RAPAL) (Appendix 8) shall be
maintained by NGAs to monitor appropriations
and allotments charged thereto. It shall show
the original, supplemental and final budget for
the year and all allotments received charged
against the corresponding appropriation.
The balance is extracted every time an entry is
made to prevent incurrence of overdraft in
appropriations.