Evaluation of Fiscal Procedures in Regional Offices
- The Minister of the Budget is tasked to evaluate existing fiscal procedures related to sub-allotment of obligational authority and cash disbursement ceilings.
- Focus is on regional government agencies, with monitoring of fund utilization emphasized.
Design and Implementation of a Uniform Budgeting System
- Based on the evaluation, the Minister of the Budget will design a uniform system to include guidelines, procedures, and forms.
- This system will apply to all agencies and their regional offices, ensuring standardized budget execution and accountability.
Review of Agency Budget and Accounting Organization
- The Minister of the Budget will review organizational structures and staffing of budget and accounting offices.
- Objectives include assessing adequacy at regional levels and determining optimal delegation of authority from central to regional offices.
- A systems study will be conducted to recommend improvements in organization, staffing, and system relationships.
Reassessment and Improvement of Treasury Warrant Procedures
- The Minister of Finance and the National Treasurer will reassess the issuance and control of Treasury Warrants and the Treasury Current Account for Agencies (TCAA).
- Goals include prompt cash record reconciliation and maintaining Treasury Warrants within approved ceilings for cash disbursements.
Commission on Audit's Role in Fund Utilization Oversight
- The Acting Chairman of the Commission on Audit will ensure funds are used in strict accordance with allocated purposes.
- Measures will prevent diversion of funds, unauthorized reserves, and ensure implementing units receive full released amounts.
- Contracts can only be entered into if obligational authority and cash disbursement ceilings have been duly approved.
Study and Recommendation on Direct Fund Releases to Regional Offices
- The Minister of the Budget shall study the feasibility of directly releasing obligational authority and cash disbursement ceilings to regional offices, including schools and hospitals.
Contracting and Fund Availability Certification
- No head of agency may enter into contracts without certification from the Chief Accountant confirming funds availability from released allotments.
- Private contractors cannot undertake work "at their own risk." Contracts require certification of fund availability to be valid and binding.
Coordination and Support for Improvement Initiatives
- The Advisory Board of the Budget Improvement Project (BIP) will coordinate the studies and implementation.
- Necessary technical and financial support will be provided by the project in coordination with involved agencies.
Summary of Key Objectives
- Rationalize and standardize fiscal procedures at regional government levels.
- Ensure proper delegation and organizational adequacy in budgeting and accounting functions.
- Maintain strict control over Treasury Warrant issuance and fund utilization.
- Prevent unauthorized fund reserves and diversion.
- Enforce strict certification for fund availability before contract execution.
- Enhance transparency, accountability, and efficiency in the national government fiscal operations.