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7/31/2019 Capiz State

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CAPIZ STATE UNIVERSITY

GRADUATE SCHOOL

MAIN CAMPUS

ROXAS CITY

EDM 216- FISCAL MANGEMENT IN EDUCATION

JOHNNY J. MAHINAY DR. L. VIPINOSA

Reporter Course Facilitator

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FISCAL PLANNING, PROGRAMMING BUDGETING ASPEC TS

PLAN- BUDGET LINKAGE: Doable or Not

The Code provides a clear linkage between approved Local Development Plans and the Budget that will

implement such a plan. A budget is a plan expressed in financial terms which describes the sources and

uses of funds. It is the blueprint of the financial and policy decisions that the local government will

implement during a fiscal year. It is also a document for establishing control over the direction of

change and determining the future.

A budget is a tool for development and a blueprint of strategic policy framework. Yes, plan-budget linkage is already being done by most LGUs.

1. Operationalization of Local Development PlansLocal Development plans shall be operationalized through the Annual or Supplemental Budgets.

Local budgets shall carry out the smooth execution of planned projects to pursue the attainment

of development objectives. LGU shall provide a window for evaluating and monitoring its

output on a periodic basis to determine whether expected results or goods and services

produced in the short term are getting closer to the predetermined objectives. This pan budget

linkage may be done as early to local executive budget.


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ACITVITY RESPONSIBILITY Timeframe Expected Output

1. Alignment of AIPwith LDP and

national goals

and strategies

Planning and

Developing Office,

Local Development

Council and Local

Sanggunian.

6 months before

budget preparation

(January to June of

current year)

AIP for the budget

year

2. Formulation offiscal policies and

directions for the

budget year

Expanded Local

Finance Committee &

Local Chief Executive

July of current year Local Budget Call for

the budget year

3. Review ofexisting

programs/

activities and

preparation of

budget proposalfor the budget

year

All Department Heads July of current year Budget proposals of

Department/Offices

4. Target setting foreach major final

output by

program/

project/activity

All Department Heads July of current year Performance

measures and

targets for the

budget year

2. Plan-Budget LinkThe linking of the plan to the budget is a must do. LGUs have to understand clearly the

objectives or purpose of the plan, analyze whether the programs, projects and activities to be

implemented are consistent with the purpose and determine the extent to which this purpose

can be achieved on the basis of available resources. The framework to which the plan-budget

link is easily cognizable is in the program structure.

3. Planning Annual/Supplemental BudgetsThe whole Annual/supplemental budgets shall be dedicated to sustainable human

development in order to achieve the twin goals of eliminating poverty and promoting economic

growth. Development planning shall not be limited to projects and activities to be funded by the

20 percent of IRA share.


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4. Mobilization of ResourcesLocal elective officials shall develop the capacity to mobilize resources and ensure program

sustainability. It is their responsibility to develop the capabilities of their people in the long-term

so that the well-being of the present and future generation is not undermined.

5. Policy FormulationLocal budgets shall be policy-driven. Policy formulation shall include the following:

. Explicit policy directions to eliminate poverty and employment.

. Policies on how the budget shall be financed in the medium-term and how it shall be

allocated among priority programs/projects/activities in the short/term. The LFC shall

recommend to the LCE alternative sources of financing the budget and rational criterion for

allocating available resources.

6. Review of Program StructureLocal budget shall have a periodic review and analysis of the program structure to determine

capacity to produce desired result. Performance indicators shall be identified in LGU budget

proposals to serve as basis in measuring annual performance. The review of existing program

shall challenge the relevance of present operation to the wider policy objectives of the LGU as

approved by the local Sanggunian.

7. Redesigning of Current Program Structure7.1Consistency with Strategic Policy Objectives

7.1.1 Current program structure found inconsistent with strategic policy objectives asplanned shall be redesigned following these steps:

STEP 1 Challenge the regular activities or projects being done at present for specific program.

What is the role/mission of the program? Are the projects/activities relevant to the mission? What are the output indicators of the program? Are the results consistent with program objectives? What activities/projects must be redesigned or abolished?

STEP 2 Designed the proper organization structure that will best carry out the mission.

What are tasks to be performed? What is the optimum number of personnel that can carry out tasks efficiently and effectively What are the duties/responsibilities of the personnel What qualification standards/specifications are required of personnel?

Step 3 Redesigned cost allocation and financial reporting systems to improve efficiency.

What projects/activities produce results relevant to the mission? What are the relevant costs/input that produce results? What is the cost (direct/indirect)on a per unit of output?


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What financial reporting systems are used for management decision-making purposes? What is the actual cost per activity/project for one semester? Are there variances between

budget and actual cost?

What is the actual output per activity/project? Are there variances between target output andactual results?

Is the output cost effective?7.2Importance of the Program Structure Review

7.2.1 The review of program structure shall ensure that there is a clear policy statement or objectives

that define the purpose of the program and the expected results to be used as basis assessing

performance.

8. Program PerformanceThe program structure is the primary link or the center between the

plan and budget. It should be understood, however, that the strength or weakness

Of this linkage depends on the efficiency, effectiveness, and quality of service delivery.

Performance of each program depends on the presence of the following performance

Framework:

PLANNING-BUDGETING PROCESS

(a) Procedures requiredThe Administrator shall establish procedures to ensure that the

Planning, programming, budgeting, and financial of the Administrator comport with

Sound financial and fiscal management principles. Those procedures shall, at a minimum,

Provide for the planning, programming, and budgeting of activities of the Administrator

using funds that are available for obligation for a limited number of years.

(b) Annual plan for obligation of funds(1) Each year, the Administrator shall prepare a plan for the obligation of the

Amounts that, in the Presidents budget submitted to congress that year

Under section 1105 (a) of title 31, are proposed to appropriate for the

Administration for the fiscal year that begins in that year (in this section

referred to as the budget year) and the two succeeding fiscal years.

(2) For each program elements and construction line item of the administration


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For the obligation of those amounts for that element or item for each fiscal

Year of the plan, expressed as a percentage of the total amount proposed to be appropriate

in that budget for that element or item.

(c) Submission of plan and reportThe Administrator shall submit to Congress each year, at about the time

That the Presidents budget is submitted to Congress under section 1105

(a) Of title 31, each of the following.(1) The plan required by subsection (b) of section prepared with respect to that budget(2) A report on the plans prepared with respect to the preceding years

Budget, which shall include, for each goal in those plans-

(A) The assessment of the administrator as to whether or not thatGoal was met; and

(B) If that assessment is that goal was not met-(i) The reasons why that goal was not met; and(ii) The plan of the administrator for meeting or, if necessary, adjusting that

goal.

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