BARANGAY BUDGET CONSISTS OF THE FOLLOWING:

1. ESTIMATES OF INCOME AND;

2. TOTAL APPROPRIATIONS COVERING CURRENT OPERATING EXPENDITURES
AND CAPITAL OUTLAYS.

THE BUDGET CYCLE

1.

PREPARATIONS OF THE BUDGET MADE BY THE PUNONG BARANGAY

2. LEGISLATIVE ACTION MADE BY THE SANGGUNIANG BARANGAY

3. BUDGET REVIEW BY THE SANGGUNIANG BAYAN
4. EXECUTION OF THE BUDGET BY THE PUNONG BARANGAY
5. MANAGEMENT REPORTING BY THE PUNONG BARANGAY.

GENERAL GUIDLINES ON BARANGAY BUDGETING:

1. IN PREPARING THE BARANGYAY ANNUAL BUDGET , THE PUNONG
BARANGAY SHALL STRICTLY OBSERVE THE FOLLOWING BUDGETARY
GUIDELINES, PROVISIONS OF THE CODE AND OTHER PERTINENT LAWS AND
ISSUANCES.
2. PRESENTED IN THE SO CALLED BARANGAY BUDGET CALENDAR
3. THE ANNUAL BUDGET , TOGETHER WITH SUPPLEMENTAL BUDGET ,
SHALL BE DOMINATED CHRONOLOGICALLY AND BY THE CALENDAR
SERIES.

YEAR

THE ACCOUNTING SYSTEM USED IS THE MODIFIED ACCRUAL

ACCOUNTING IS USED.

- Income shall be recorded when earned except when the use of accrual basis is
impractical or when other methods are required by law
-

Expenses shall be recorded when incurred irrespective of time of payment

Income and expenses shall be reported in the financial statements in the period they

relate Recognition of Liability >Liabilities shall be taken up only for goods actually
delivered and accepted or services rendered or upon receipt of bills from suppliers or
creditors
-

Cash received to guaranty faithful performance of an activity shall be recorded as

liability

Surety bonds shall not be recorded in books

All borrowings & secured loans shall be recorded using appropriate liability account
Purchase of Supplies and Materials and Small Items >It shall be recorded as
Inventories upon acquisition and Expense upon issuance

Other tangible assets shall be classified as Property, Plant and Equipment subject to
depreciation Cash Advances >Cash advance for payment of personal services shall
be accounted for as Payroll fund

Cash advance granted for travel and other special-time bound undertaking shall be
accounted for as Advances to Officers and Employees Audit Disallowances >Shall
be recorded only when they become final and executory Barangay Accounts >Shall
be kept within the framework of the New Government Accounting System chart of
accounts Processing of Transaction and Recording
in the Books >Processing of transactions shall be done at the barangay level

Recoding in the books through Journal entry voucher shall be done by the
City/Municipal accountant

The financial records of the barangay shall be kept in the office of the City/Municipal
Accountant

Recording in the barangay books shall be based on the reports submitted by the
Barangay Treasurer/Barangay record keeper

Reports and documents supporting entries in the reports shall remain with the
Barangay Treasure/Barangay Record keeper and shall be made available on the
Commission on Audit anytime for examination Certified Registers The following
Cash registers shall be used:

Cash Receipt Registers

Cash on Hand and In Bank registers

Cash Disbursement Registers

Check Disbursement Registers

WHO PREPARES THE BUDGET MADE ONLY FOR THE BARANGAY?

- THE PUNONG BARANGAY
( with the help of the Barangay Treasurer.)

WHO DETERMINES THE ESTIMATED INCOME TO BE USED AS SOURCE OF FUND

IN THE BUDGET?
- THE BARANGAY TREASURER IS HELD RESPONSIBLE FOR DETERMINING THE
ESTIMATED INCOME.

WHEN SHOULD SUBMIT TO THE PUNONG BARANGAY THE DETAILED STATEMENTS

OF INCOME AND EXPENDITURES OF THE PAST AND CURRENT YEARS?
- THE TREASURER MUST SUBMIT IT THE PUNONG BARANGAY ON OR
BEFORE SEPTEMBER 15 OF EACH YEAR

-ARVID GEROME D. PASCUAL