DEPED BUDGET UNDER THE FY 2010 GAA

FY 2009 FY 2010 FY 2010GAA + AA NEP GAA + AA

OFFICE OF THE SECRETARY 157,959 159,085 161,190PHIL. HIGH SCHOOL FOR THE ARTS 46 46 58NATL. COUNCIL FOR CHILDREN'S TELEVISION

13 10 15

NATL. BOOK DEVT. BOARD 33 21 21NATIONAL MUSEUM 159 122 122SUB-TOTAL APPROPRIATION 158,210 159,283 161,406SCHOOLBUILDING PROGRAM (SBP) 2,000 2,000 2,000SBP-FISCAL STIMULUS FUND 3,000 0 0FOOD FOR SCHOOL PROGRAM 0 0 0MALUSOG NA SIMULA, YAMAN NG BANSA SCHOOL NUTRITION PROGRAM 0 0 0SUB-TOTAL APPROPRIATION 5,000 2,000 2,000TOTAL APPROPRIATION 163,210 161,283 163,406AUTOMATIC APPRO. (RLIP) - GS 11,258 11,560 11,560TOTAL OBLIGATION 174,468 172,843 174,966

PARTICULARS

Comparative Budgets, FYs 2009 and 2010 (in Million Pesos)

DepED Budgets, by Allotment Class

(in Million Pesos)

Expense Type 2009 GAA + Auto Appro

2010 GAA + Auto Appro

Inc/Dec from

previous FY

Personal Services (PS) 137,864 140,877 2%

Maintenance and Other Operating Expenses (MOOE)

22,767 22,038 -3%

Capital Outlay (CO) 13,837 12,051 -13%

TOTAL 174,468 174,966 0%

Effectivity of the FY 2010 GAA

– The President signed into law RA 9970 or the FY 2010 GAA together with her Veto Message on February 8, 2010

– Section 2 of the New Civil Code requires publication for laws to be operative. Thus, RA 9970 was published in the Official Gazette on February 12, 2010

– The same provision states that laws shall take effect 15 days following its publication, unless otherwise provided.

– GP 98 of RA 9970 reads: “The provisions of this Act shall take effect on January one, two thousand and ten …”

– Hence, RA 9970 is effective January 1, 2010 (retroactive application)

COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

FY 2009 FY 2010

Prospective i.e., April 1, 2009 Retroactive i.e., January 1, 2010

R.A. 9498 as reenacted –

Jan. 1 to March 31, 2009 operations

R.A.9524

April 1 to Dec. 31, 2009 operations

R.A. 9970

Jan 1 to Dec. 31, 2010 operations

1. Effectivity of the GAA

2. Appropriation Cover

Agencies were authorized to incur overdraft in obligations for regular operating requirements.

Overdrafts in obligations shall be charged against the comprehensive allotment release thru the ABM under the 2010 GAA

- 1st tranche compensation adjustment including govt premiums in RLIP, PHILHEALTH, ECIP shall be considered in the comprehensive release for PS

Agencies were authorized to incur overdraft in obligations for regular operating requirements.

Overdrafts in obligations were issued SAROs charged against the 2008 reenacted budget.

- 10% salary adjustments were issued SARO against the

MPFB

FY 2009 FY 2010

COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

3. Treatment of funds utilized prior to the effectivity of the GAA

SAROs issued against the 2009 GAA (R.A. 9524, as reenacted) prior to approval of the 2010 GAA shall be subject to issuance of adjusting SAROs:

- SARO to cover withdrawal of the allotment released

- Another SARO vs. FY 2010 GAA, RA 9970 as replacement of withdrawn SARO (same amount and purpose)

SAROs issued against the 2008 GAA (R.A. 9498, as reenacted) prior to approval of the 2009 GAA were valid for obligation only up to March 31, 2009 while the 2009 GAA was not yet in effect.

Unutilized allotments out of issued SAROs lapsed upon effectivity date of the GAA.

FY 2009 FY 2010

COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

Authorized Appropriation xx Less: Withheld

xNet Program = xx

Not Needing Clearance (NNC)

This ReleaseFor Later Release

Needing Clearance (NC)

Authorized Appropriation =

Not Needing Clearance (NNC)

This ReleaseFor Later Release

Needing Clearance (NC)

COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

4. Agency Budget Matrix

FY 2009 FY 2010

FY 2009 FY 2010

PS - 100 %

at least 50%

MOOE of the Not Needing

CO Clearance portion

PS - 100 %

at least 75%

MOOE of the Not Needing

CO Clearance portion

COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

4. Comprehensive allotment release under NNC

FY 2009 FY 2010

COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

Items issued SAROs prior to the approval of the FY 2010 GAA to accelerate implementation of priority projects (i.e., frontloading of requirements); and

Items that shall be released to the agency upon compliance of certain documentary requirements.

5. NC portion

Items that shall be released to the agency upon compliance of certain documentary requirements.

FY 2009 FY 2010

COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

6. Approval of the ABM

On or before March 31, 2010

Departments/agencies with lumped budgets shall submit to DBM their List of OUs and corresponding budgetary allocations on or before February 28, 2010.

E.g. DENR (PENROs) and DAR (PAROs), among others

No specific deadline.

FY 2009 FY 2010

7. Validity of AppropriationGeneral Provision No. 66 provides the following:

“ Appropriations for MOOE of the education, health and agricultural sectors and all appropriations for CO authorized in this Act shall be available for release and obligation for the purpose specified, and under the same special provisions applicable thereto, for a period extending to two fiscal years after the end of the year in which such items were appropriated.”

Said provision was directly vetoed, thus:

Appropriations for PS, MOOE and CO under the 2010 GAA RA 9970 shall be available for release and obligation up to December 31, 2010 only.

General Provision No. 64 provides the following:

“ Appropriations for MOOE and CO authorized in this Act shall be available for release and obligation for the purpose specified, and under the same special provisions applicable thereto, for a period extending to one fiscal year after the end of the year in which such items were appropriated”.

Appropriations under the 2009 GAA R.A. 9524 shall be available for release and obligation up to December 31, 2010, with the exception of PS.

COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

REITERATION OF POLICIES Allotment Release Program refers to all allotment releases

during the year from all sources, except multi-user SPFs.

Under Common Fund Concept, NCAs under the Regular MDS sub-account may be used to cover payment of current year A/Ps regardless of the period when the covering obligations were incurred by the agency (i.e., during the current year or in previous years).

Excess income shall be used to augment the agency’s operating requirements for the current year except PS.

Agency Performance Review shall be conducted on periodic basis (quarterly) instead of semestral.

REITERATION OF POLICIES

• List of Due and Demandable A/Ps as of December 31, 2009 shall be submitted to DBM on or before January 31, 2010 pursuant to CL No. 2004-2

• List of PY A/Ps received by DBM within the cut-off date shall be included in the special lane for priority funding. NCA release shall be made thru the agency’s Special MDS Account.

• PY A/Ps not included in List submitted to DBM shall be queued by the agency in the normal payment procedure for current year A/Ps i.e., to be charged against the NCA under the Regular MDS account or Common Fund