GLOSSARY OF TERMS A - Department of Budget and …

1 GLOSSARY OF TERMS . A. to the public vis- -vis the targets/budgets for the same period. ccounts Payable (A/P). Obligations/commitments of national Allotment. Authorization issued by the government agencies, whether current Department of Budget and Management year and prior years, for which services (DBM) to an agency, permitting the have been rendered, goods have been agency to commit/incur obligation and/or delivered or projects have been completed pay out funds within a specified period of and accepted. Prior Year's Accounts time within the amount specified through Payable are those accounts payable which the: have been incurred and remained unpaid as of the end of the preceding year.

2 1. General Appropriations Act as an Current Year's Accounts Payable are Allotment Order (GAAAO). those accounts payable which have been (starting FY 2017), for specific incurred during the current year and appropriation items deemed released remain unpaid before the end of the upon effectivity of the GAA;. current year. 2. General Allotment Release Order Activity. A recurring work process that (GARO) for the full year contributes to the implementation of a requirement for the automatically program or sub-program appropriated Retirement and Life Insurance Premium (RLIP). Advice/Authority to Debit Account. contributions; and Refers to the accountable disbursement document which serves as notice to the 3.

3 Special Allotment Release Order Modified Disbursement System- (SARO) for Budget items requiring Government Servicing Bank (MDS- compliance with certain GSB) to debit the agency's MDS sub- conditionalities. account for payment of due and demandable A/Ps. Allocation to Local Government Units (ALGU). The scope of this expenditure Agency Heads. Refer to the heads of category depends on the type of departments, attached agencies and Other classification: Executive Offices under the Executive Branch, State Universities and Colleges, 1. As Special Purpose Fund, this Constitutional Commissions, and refers to the following legally Government-Owned and/or-Controlled mandated allocations a) Internal Corporations and other similar entities Revenue Allotment (IRA), the and instrumentalities concerned.

4 Automatically appropriated formula-based share of LGUs from Agency Performance Review (APR). national internal revenue The process of determining the level of collections (per No. 7160, the accomplishment of each agency in TERMS Local Government Code of 1991);. of outputs, income generated, and actual b) the annually appropriated expenditures incurred in the provisions for the special shares of production/delivery of goods and services selected LGUs from proceeds from national wealth (per specific laws, 791. such as share of tobacco producing enactment, hence, required Congressional provinces, etc.); and c) National action, directing the spending of public Government transfers to LGUs funds for a specific purpose, up to a (Barangay Officials Death Benefits specified amount under specified Fund, Local Government Support conditions.

5 Fund, and the Budget allocation for Metro Manila Development 1. Automatic Appropriations. Authority. One-time legislative authorization to provide funds for a specified 2. As an expenditure item, this refers purpose, for which the amount may to 80% of the automatically or may not be fixed by law, and is appropriated IRA, classified under made automatically available and Current Operating Expenditures. set aside as needed. Since it is The remaining allocations for already covered by a separate law, LGUs are classified under Capital it does not require periodic action Outlays as Capital Transfers to by the Congress of the Philippines, LGUs, considering the and need not be included in the developmental purposes for such legislation of annual allocations.

6 Appropriations. Among these items are: a) Debt Service (per No. Annual Cash-based Appropriation. 1967, 4860, and 245 as Annual appropriations that limit incurring amended) - interest payments for obligations and disbursing payments for foreign and domestic debt; b) Net goods delivered and services rendered, Lending ( 1177 and 292). inspected and accepted within the current to GOCCs; c) Special Accounts - fiscal year. Payments of these obligations per specific laws, , Wildlife shall be made until the Extended Payment Management Fund ( Period or within three (3) months 9147) sourced from fines etc. immediately succeeding the end of the relating to the implementation of preceding fiscal year.

7 The Wildlife Act. Difference between Obligation-based and 2. New General Appropriations Cash-based Appropriations: (Annual). An authorization for incurring obligations during a 1. Obligation-based specified Budget year as listed in Appropriations. Give rights to the General Appropriations Act make commitments and to make (GAA). The GAA is the legislative cash payments according to these authorization that contains the new commitments, without a appropriations authorized by predetermined time limit. Such Congress in TERMS of specific appropriations have their own life amounts for salaries, wages and cycle and are not limited to one other personnel benefits; MOOE;. year. and CO authorized to be spent for the implementation of programs, 2.

8 Cash-based Appropriations. Give activities and projects (P/A/Ps) of authority to make cash payments all departments, bureaus and offices over limited period of time, of government for a given year. generally corresponding to the fiscal year. 3. Unprogrammed Appropriations. Appropriations under the annual Appropriation. An authorization GAA which provide standby pursuant to laws or other legislative authority to incur additional agency 792. obligations for priority programs or Budget and Financial Accountability projects when revenue collections Reports (BFARs). Harmonized reports exceed targets, or when additional on the agencies' actual financial and foreign funds are generated.

9 Physical accomplishment/performance for a given period prescribed by the 4. Supplemental Appropriations. oversight agencies, , DBM and Additional appropriation Commission on Audit (COA) to authorized by law to augment the effectively report, monitor and/or original appropriations which evaluate agency performance versus proved to be inadequate or plans and targets which shall serve as insufficient for the particular basis for sound policy decisions. purpose intended due to current economic, political or social Budget and Treasury Management conditions. System (BTMS). A common, modern, integrated, accurate, reliable and secure Assumed Liabilities. Domestic or information system for the public foreign loans originally contracted or financial management (PFM) operations liabilities on securities issued by of the Government of the Philippines Government Financial Institutions (GFIs) (GOP).

10 The system will be used to collect or Government Owned or Controlled and organize government financial Corporations (GOCCs) which by law, information through a central database have been transferred to and form part of that supports the following fundamental the liabilities of the National PFM functions: a) Budget Management;. Government. b) Commitments Management; c). Payments Management; d) Receipts B. Management; e) Cash Management; f). Property, Plant and Equipment; g). alance of Payments (BOP). A. Accounting and Fiscal Reporting; and h). summary of the economic transactions of Commitments and Obligations a country with the rest of the world for a Management. specific period.