Guidelines on the Preparation of Budget Proposals for Fiscal Year 2018

March 3, 2017

DEPED ORDER NO. 011-17

GUIDELINES ON THE PREPARATION OF BUDGET PROPOSALS FOR FISCAL YEAR 2018

 

1.  For the information and guidance of all concerned, the Department of Education (DepEd) issues the enclosed Guidelines on the Preparation of Budget Proposals for Fiscal Year (FY) 2018.

2.  This Order shall take effect immediately upon issuance.

3.  Immediate dissemination of and strict compliance with this Order is directed.

(SGD.) LEONOR MAGTOLIS BRIONESSecretary

ATTACHMENT

GUIDELINES ON THE PREPARATION OF BUDGET PROPOSALS FOR FISCAL YEAR 2018

I. RATIONALE

This DepEd Order aims to provide guidance on the policies, processes and timelines to be observed regarding the preparation of budget proposals for Fiscal Year (FY) 2018, in compliance with the Department of Budget and Management's (DBM) National Budget Memorandum (NBM) No. 127.

II. SCOPE OF THE POLICY

This DepEd Order covers the planning and budgeting process at all levels of the Department, including the Central Office (CO), Regional Offices (ROs), Schools Division Offices (SDOs), and Schools.

III. POLICY STATEMENT

The Department hereby issues this Order to provide guidance on the policies, processes and timelines to be observed regarding the preparation of budget proposals for Fiscal Year (FY) 2018.

These guidelines are based on National Budget Memorandum No. 127 dated December 28, 2016 or "Budget Call for FY 2018" as well as on prevailing DepEd policies on the planning and budget process.

IV. PROCEDURES

A. Policy Framework

1. The formulation of the FY 2018 Proposal must be guided primarily by the Vision, Mission, and Mandate of DepEd, as well as the thrusts of the Department as indicated in existing Orders and Memoranda, and the Department's Statement of Vision and Agenda including that contained in the document titled Quality, Accessible, Relevant and Liberating Basic Education for All.

 Furthermore, each operating unit must propose programs/activities/projects that are aligned with the revised Philippine Development Plan (PDP) Targets for Basic Education up to 2022 (see Annex A).

2. The FY 2018 Proposal must also be supportive of the President's 0+10 Socio-Economic Agenda as envisioned in Office of the President Memorandum Circular No. 12, dated October 24, 2016, the Ambisyon Natin 2040, and the Sustainable Development Goals.

3. All offices concerned in the CO, ROs and SDOs must comply with the requirements specified in NBM No. 127, which provides the policy guidelines and procedures in the preparation of FY 2018 Budget Proposals. The Revised Planning and Budget Strategy of the Department shall also be issued soon to guide the FY 2018 budgeting process.

4. Moreover, the FY 2018 Proposal shall be structured according to the DBM-approved Program Expenditure Classification (PREXC) for the Department, and guided by DBM's Expenditure Management Framework as articulated in NBM No. 127. Annex B contains the DBM-approved structure as well as the revised proposal for re-submission to DBM. CAIHTE

B. Two-Tiered Budgeting Approach

1. As in previous budget years, all offices are instructed to disaggregate lump-sum amounts in their budgets.

2. A Two-Tier budgeting approach will also continue to be adopted in FY 2018 budget preparations, wherein:

i. Tier 1 proposals will be based on the forward estimates for the year formulated during the 2017 budget preparation phase, which will be updated based on changes reflected in the 2017 General Appropriations Act (GAA). These estimates refer to amounts required for the year to continue ongoing programs, projects and commitments at the same scope and quality.

ii. Tier 2 proposals will be subject to evaluation based on available fiscal space and should comply with Public Investment Program (PIP) and the Three-Year Rolling Infrastructure Program (TRIP) guidelines. These shall cover amounts intended for the implementation of new activities, programs or projects or for the expansion of existing programs in terms of scope, beneficiaries, timeframe or outputs.

iii. The Agency Budget Level is therefore comprised of both Tier 1 and Tier 2 proposals: TIER 1 (Ongoing Spending) + TIER 2 (New Spending) = TOTAL BUDGET

iv. The planning and cost parameters that will guide the estimation of Tier 1 and Tier 2 requirements shall be provided during the Orientation on Plan Preparation or shall be subject of a separate issuance.

C. Instructions on Personnel Services (PS) Allotments

1. All Offices shall ensure that they have updated their Personnel Services Itemization and Plantilla of Personnel (PSIP-OP) report as this is the basis of the data contained in the Government Manpower Information System (GMIS) and the basis for FY2018 PS requirements.

2. Moreover, all offices shall be guided by the requirements and instructions of the DBM in NBM No. 127 pertaining to the preparation of budgets for PS allotments.

D. Preparation of Central Office-Managed Budgets

1. In accomplishing the Budget Preparation (BP) Forms, the amounts intended for downloading/sub-allotment to field offices must also be identified, for consideration in the comprehensive release of funds in FY 2018.

E. Preparation of the Regional Operations budget

1. The following items must be included in the Regional Operations budget:

i. School Maintenance and Other Operating Expenses (MOOE), Division Office Proper MOOE and Regional Office Proper MOOE computed based on the revised Boncodin formula and/or the Normative Financing Formula to be included in the Planning Parameters that will be provided/issued to the field;

ii. Unpaid personnel benefits that have no appropriation cover such as loyalty pay and step increments, to be reflected separately and fully documented (e.g. name of claimant, amount of claim and year the benefit is supposed to fall due);

iii. Requirement for hardship pay (fully documented), initially based on the criteria and formula per NBC No. 514 and the 3rd tranche of salary increase;

iv. Requirement for subsistence and laundry allowance of public health workers (fully documented), based on the recently issued DOH-DBM Joint Circular No. 1, s. 2016 or Amendment to DBM-DOH Joint Circular No. 1 s. 2012 Regarding the Rules and Regulations on the Grant of Compensation-Related Magna Carta Benefits to Public Health Workers (PHWs);

v. Unimplemented ERFs (fully documented), including requirements for the recurring costs for implementation of upgrading of salaries due to ERFs, conversion of Master Teacher positions, reclassification of positions, if any;

vi. Retirement/Gratuity/Terminal Leave Benefits of personnel retiring in 2018, separate forms for Compulsory and Optional Retirees per NBM No. 127;

vii. Requirement for newly-legislated/established secondary schools and Division Offices; and

viii. Cash allowance computed at P2,500 per teacher as in the 2017 GAA.

2. When possible, the above items shall be disaggregated by implementing unit (IU) so that these funds may be considered for comprehensive release directly to SDOs or IU schools in FY 2018.

3. The Regional Office shall also be responsible for vetting and endorsing the budget proposals of SDOs and all schools.

F. Preparation of the Schools Division Office and Schools budget

1. The SDOs shall formulate the forward estimates for the following basic inputs and programs. Please note that the planning and cost parameters that will guide the estimation forward estimates shall be provided during the Orientation on Plan Preparation or shall be subject of a separate issuance.

i. Classroom construction, repair and replacement

ii. Laboratories and workshops (Science, Kinder, TechVoc)

iii. Libraries

iv. Furniture

v. School Sites (acquisition and titling)

vi. Tools and Equipment (Kinder, Science & Math)

vii. ICT packages

viii. Teacher items

ix. School-based Feeding

x. School MOOE

xi. Subsidies (ESC, SHS Vouchers)

2. The SDOs shall also provide the bases for the determination of needs of Inclusion Programs and other Division-initiated programs. DETACa

G. Processes and Timelines to be Observed

1. All offices are expected to commence with planning and budgeting activities with the issuance of this policy. Annex C outlines the schedule of activities concerning FY 2018 budget preparations at different levels of the Department.

2. It is expected that all field office budgets would have undergone review by the Regional Office by March 10, 2017. These shall be submitted in 2 sets of print-outs and in e-copy format to the Planning and Programming Division, Planning Service (c/o Mary Jane Feliciano, Chief) and to Budget Division, Finance Service — Budget and Performance Monitoring of the Central Office (c/o Mr. Selwyn C. Briones, OIC Chief).

3. Regional budget proposals and Central Office budget proposals shall be presented to and reviewed by the DepEd Budget Committee (BudCom), which is comprised of members of the Executive Team excluding the Secretary.

4. Once vetted by the BudCom, the consolidated agency budget proposal shall be presented to the Secretary for his/her approval. This shall then be submitted to the DBM and encoded on the DBM's Online Submission of Budget Proposal facility in order to meet the deadline of submission of Tier 1 and 2 proposals by March 27, 2016.

V. Monitoring and Evaluation

Any related concerns not covered by the abovementioned provisions may be referred to the Central Office Finance Service — Budget Division at (02) 637-6203 or (02) 637-4214 and/or the Central Office Planning Service — Planning and Programming Division at (02) 633-7216.

VI. Effectivity

This Order shall take effect immediately upon issuance.

ANNEX A

PDP Targets for Basic Education

 

 

PDP Targets for Basic Education

 

 

 

ANNEX B

Approved PREXC Structure of DepEd by DBM

DepEd Proposed Improvements after DBM Approval

ANNEX C

DepEd Budget Calendar