maintenance and other operating expenses (mooe) & capital outlay venzon l. limpiada head, bids...

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015 1

MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) & CAPITAL OUTLAYVENZON L. LIMPIADAHEAD, BIDS & AWARDS COMMITTEE SECRETARIAT

Reo-orientation Meeting25 August 2015 | PSU Hostel | 3:00 pm

psubacsec@psu.palawan.edu.ph(048) 433-0448

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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GOVERNMENT BUDGETING

Is the critical exercise of allocating revenues and borrowed funds to attain the economic and social goals of the country.

It also entails the management of government expenditures in such a way that will create the most economic impact from the production and delivery of goods and services while supporting a healthy fiscal position.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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WHAT IS A FUND?

The word "fund" in government has taken several meanings or connotations.

It is sometimes used to refer an appropriation which is a legislative authorization to spend or an allotment which is an authorization by the Department of Budget and Management (DBM) to obligate, or as actual cash available.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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WHAT BASIS LAW GOVERNS THE USE OF GOVERNMENT FUNDS?

The following provision of the Philippines Constitution sets the basic rule for the use of government funds:

"Art. VI, Sec. 29. No money shall be paid by the Treasury except in pursuance of an appropriation made by law."

The aforequoted provision of the Constitution also establishes the need for all government entities to undergo the budgeting process to secure funds for use in carrying out their mandated functions, programs and activities.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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HOW ARE GOVERNMENT FUNDS APPROPRIATED?

Funds for the use of government entities are appropriated or authorized following a process with the following major steps : 1) individual agencies prepare their estimates of expenditures or proposed budgets for the

succeeding year and submit these estimates or proposals contained in required budget forms to the DBM following baseline figures, guidelines and timetable earlier set;

2) agencies justify details of their proposed budgets before DBM technical review panels;

3) DBM reviews and consolidates proposed budgets of all agencies for inclusion in the President's proposed budget for submission to Congress;

4) agencies explain the details of their proposed budgets in separate hearings called by the House of Representatives and the Senate for inclusion in the General Appropriation Bill; and

5) the President signs the General Appropriation Bill into law or what is known as the General Appropriations Act (GAA).

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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WHAT IS THE EXPENDITURE PROGRAM?

The expenditure program is that portion of the national budget that refers to the current operating expenditures and capital outlays necessary for the operation of the programs, projects and activities of the various government departments and agencies.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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GENERAL APPROPRIATIONS ACT (GAA)

The is the legislative authorization that contains the new appropriations in terms of specific amounts for salaries, wages and other personnel benefits;

maintenance and other operating expenses; and

capital outlays

authorized to be spent for the implementation of various programs/projects and activities of all departments, bureaus and offices of the government for a given year.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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WHAT ARE THE SOURCES OF APPROPRIATIONS THAT MAKE UP THE ANNUAL BUDGET?

The sources of appropriations of the annual budget are: 1) new general appropriations legislated by Congress for every

budget year under the General Appropriations Act (GAA); and

2) existing appropriations previously authorized by Congress.

Under the Constitution, Article VI, Section 29, no money can be withdrawn from the Treasury except in pursuance of an appropriation made by law.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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WHAT ARE THE EXISTING OR CONTINUING APPROPRIATIONS?

Existing or continuing appropriations are those which have been previously enacted by Congress and which continue to remain valid as an appropriation authority for the expenditure of public funds.

There are two type of existing appropriations : 1) continuing appropriations

2) automatic appropriations

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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CONTINUING APPROPRIATIONS

refer to appropriations available to support obligations for a specified purpose or project, such as multi-year construction projects which require the incurrence of obligations even beyond the budget year.

Examples of continuing appropriations are those from existing laws such as : RA 8150, otherwise known as the Public Works Act of 1995; and Republic Act No. 6657 and Republic Act 8532 which set funds specifically for the Agrarian Reform Program (ARP).

Currently, appropriations for capital outlays and maintenance and other operating expenses are considered as continuing appropriations but only for a period of 2 years.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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AUTOMATIC APPROPRIATIONS

Refer to appropriations programmed annually or for some other period prescribed by law, by virtue of outstanding legislation which does now require periodic action by Congress.

Falling under this category are expenditures authorized under Presidential Decree (PD) 1967, RA 4860 and RA 245, as amended, for the servicing of domestic and foreign debts, Commonwealth Act 186 and RA 660, for the retirement and insurance premiums of government employees, PD 1177 and Executive Order 292, for net lending to government corporations, and PD 1234, for various special accounts and funds.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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GOVERNMENT SPENDING

"Lower government spending, investment delays and slowdown, and weaker exports are likely to limit economic growth to… 6.5 percent in 2015,“ …

"Provided that government can fully commit to utilizing the budget as planned, as well as accelerating reforms…

There was a clear need for us to adopt firmer and more aggressive measures so that the Budget can duly support the growing economy.

The A.O. will allow us to strengthen agency capacities for implementing the budget and clear more of the bottlenecks that hamper efficient spending," Abad said.http://cnnphilippines.com/business/2015/04/20/government-expedite-spending.html

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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PSU ADMINISTRATION’S ROLE TO MEET PBB REQUIREMENT (DBM CIRCULAR N0. 2014-01)

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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PSU ADMINISTRATION’S ROLE TO MEET PBB REQUIREMENT (DBM CIRCULAR N0. 2014-01)

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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PSU ADMINISTRATION’S ROLE TO MEET PBB REQUIREMENT (DBM CIRCULAR N0. 2014-01)

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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PSU ADMINISTRATION’S ROLE TO MEET PBB REQUIREMENT (DBM CIRCULAR N0. 2014-01)

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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BUDGET UTILIZATION RATE: AS GOOD GOVERNANCE CONDITION REQUIREMENT TO RECEIVE PBB EX.

http://nationalarchives.gov.ph/wp-content/uploads/2015/06/FORM-A-2014.pdf

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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BUDGET UTILIZATION RATE: AS GOOD GOVERNANCE CONDITION REQUIREMENT TO RECEIVE PBB

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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PERFORMANCE0-INFORMED BUDGETING (PIB)

Source:

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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ADMINISTRATIVE ORDER NO. 46, S. 2015

DIRECTING ALL HEADS OF DEPARTMENTS AND AGENCIES TO IMPLEMENT MEASURES TO FACILITATE BUDGET EXECUTION FOR FISCAL YEAR (FY) 2015

SECTION 3. Procurement Measures. Departments and agencies shall adopt the following measures to speed up the conduct of procurement procedures: Assign full-time support staff to their respective Bids and Awards Committee (BAC) Secretariats, and require BAC members and

Technical Working Groups to give utmost priority to procurement assignments over all other duties and responsibilities until the requirements for the said assignments are completed;

Increase the number of BACs in big departments where the number and the complexity of items to be procured so warrant, such as, but not limited to, the Department of Transportation and Communications, Department of Public Works and Highways, Department of Education, Department of Health, and Department of Social Welfare and Development;

Comply with the procurement timelines as specified in Annex C of the Revised Implementing Rules and Regulations of Republic Act No. 9184, or the “Government Procurement Reform Act;” and,

“Submit their respective Annual Procurement Plan (APP) based on the approved budget in the GAA to the Government Procurement Policy Board (GPPB) and its Technical Support Office (TSO), within the first month of the year. For those who have not submitted, to comply before the end of April.” (2015)

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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ALLOTMENT CLASS

Classification of expenditures under the following categories: 1. Personnel Services (PS) (01)

2. Maintenance and other Operating Expenses (MOOE) (02)

3. Financial Expenses (FinEx) (03)

4. Capital Outlays (CO) (06)

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) (MOOE EXPENSE CODE 200)

This account includes Traveling expenses, communication services, repair and maintenance, transportation services, supplies and materials, water, illumination and power services, chalk allowance, auditing services, training and seminar expenses.

For purchase of supplies, items should not exceed P10, 000.00 as prescribed by COA.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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USES OF SCHOOL MOOE To pay expenses for utilities (e.g. electric and water

expenses); To procure school supplies necessary in classroom

teaching; To pay salaries for janitorial and security services; and To use for other mandatory expenditures except for the

procurement of textbooks and other instructional materials, and school furniture and equipment.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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TRAVELING EXPENSES This account includes expenses incurred in the movement

of persons whether employed in the government or not, such as transportation, subsistence, lodging and travel per diems, hire and guides or patrol; transportation of personal baggage or household effects; bus, railroad, airline and steamship fares, tips, transfers, etc., of persons while traveling abroad; charter of boats, launches, automobiles, etc., road tolls, parking fees and all other similar expenses.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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AUDITING SERVICES

This account includes the amount remitted to the Commission on Audit for auditing services rendered to the agency.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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TRAINING AND SEMINAR EXPENSES

This account includes expenses incurred for participation / attendance of personnel to training and seminars / workshops.

Includes: Training Expense

ICT Training Expense

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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COMMUNICATION SERVICES

This account includes expenses for communication of messages such as: telephone (landline and mobile),

internet expenses/subscriptions (this includes data communication expenses, including but not limited to leased lines, and WAN communication expenses.

wireless and cable charges,

Cable, satellite and tolls,

postage charges and

rent of post office boxes,

Telegraph, and

Radio

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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REPAIR AND MAINTENANCE OF GOVERNMENT FACILITIES

This account includes cost of repairing and maintaining government facilities such as public buildings,

roads,

bridges,

irrigation systems,

river control and sea protection works,

artesian wells,

water supply systems,

telegraph lines,

radio stations,

wharves and

other public structures.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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REPAIR AND MAINTENANCE OF GOVERNMENT VEHICLES

This account includes the cost of repairing and maintaining government vehicles. Not included herein are spare parts, gasoline and oil which shall be under Supplies and Materials.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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SUPPLIES AND MATERIALS

This account includes the cost of all expendable commodities acquired or ordered for immediate use in connection with government operations. Office Supplies Expenses

Medical, Dental and Laboratory Supplies Expenses

Military, Police and Traffic Supplies Expenses

School Supplies Expenses

Fuel, Oil and Lubricants Expenses

Maintenance Supplies Expenses

Other Supplies Expenses and other expendable property consumed in a function, activity or office.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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RENTS

This account includes charges for the use of facilities or equipment belonging to others.

Examples of these facilities and equipment: offices and grounds,

quarters of personnel,

arsenal,

barracks,

warehouses,

schoolhouses,

office machines,

road and other maintenance equipment.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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GRANTS, SUBSIDIES AND CONTRIBUTIONS

This account includes all aids and contributions in the form of cash or property granted to people, entities or organizations for the purpose of furthering programs or policies adjudged to be in the interest of the government.

Examples are aid for educational purposes,

public health and sanitation

for construction,

to cultural minorities and contributions to economic development projects.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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WATER, ILLUMINATION AND POWER SERVICES

 This account includes the cost of water and electricity or gas illumination consumed in government facilities.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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FIDELITY BOND AND INSURANCE PREMIUMS

This account includes expenses for premiums on fidelity bond of accountable officials and insurance premiums of government properties such as government buildings, equipments, motor vehicles etc.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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OTHER SERVICES

This account includes the cost of all other services which are not otherwise classified under other accounts.

Examples are: repairs and maintenance of equipment when done by other

government agencies or by private contractors;

printing and binding;

subscription, money order fees, meal and transportation or motor vehicle allowance for overtime work and election expenses.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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PETTY CASH

is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, signing and then cashing the cheque.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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CAPITAL OUTLAYS (CO) (06)

are appropriations spent for the purchase of goods and services, the benefits of which extend beyond the fiscal year and

which add to the assets of government.

includes investments in the capital stock of GOCCs and their subsidiaries.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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LAND AND LAND IMPROVEMENTS OUTLAY

This account includes the cost of rights to land ownership and the permanent improvements to land such as filling,

draining,

grading,

surveying and planting of trees

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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INVESTMENT OUTLAY

This account includes cost investment in stock,

bonds or other securities of government and private corporations, associations or political subdivisions.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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BUILDINGS AND STRUCTURES OUTLAY

 This account includes the cost of building structures,

purchased or constructed and permanent improvements thereto.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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FURNITURE, FIXTURE, EQUIPMENT AND BOOKS OUTLAY

This account includes furniture,

fixtures,

equipment and

books

whose serviceable life is more than one year and which adds to the assets of the government.

MOOE & CAPITAL OUTLAY REVIEW | OFFICE OF THE BAC SECRETARIAT | FY2015

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REFERENCES AND CREDITS

Department of Budget and Management. www.dbm.gov.ph. http://budgetngbayan.com/

Maintenance and Other Operating Expenses & Capital Outlay Presented by: LEMUEL BALTAZAR ESTRADA