(FY 2000)




The Annual COA Report on Cumulative Allotments, Obligations Incurred and Obligations Liquidated of the National Government Agencies (NGAs) is prepared by the Commission on Audit (COA) pursuant to Republic Act No. 7226, dated March 12, 1992 and Section 4 of the Special Provisions for the COA in the 2000 General Appropriations Act (R.A. No. 8760). The data shown in the consolidated reports on allotments, obligations and disbursements are taken from the quarterly reports furnished by each department/agency to the COA pursuant to Section 89 of the General Provisions of R.A. No. 8760 which states that "Within thirty (30) days after the end of each quarter, each department, bureau, office or agency shall submit a quarterly report to the House Committee on Appropriations and the Senate Committee on Finance, copy furnished the Majority and Minority Floor leaders of the House of Representatives, the Department of Budget and Management, the Commission on Audit, and the appropriate Committee Chairman of the House of Representatives on their cumulative allotments, obligations incurred/liquidated, total disbursements, unliquidated obligations, unobligated and unexpended balances, and the results of expended appropriations". These data are presented in this report, by quarter, by province/city and by department/agency of the National Government subject to audit by COA.


The primary purpose of this report is to provide financial information on the geographical distribution of the national budget by province/city, and to determine the total amount obligated and spent by each agency/province/city particularly for the selected objects of expenditures under Maintenance and Other Operating Expenses (MOOE) and Capital Outlays (CO).




The report for fiscal year 2000 consists of two parts. Part Iincludes reports on the cumulative allotments, obligations incurred and obligations liquidated presented by department and by quarter for all funds maintained by NGAs. It also shows the total allotments, obligations incurred and obligations liquidated by region and by allotment class presented in three statements as follows:


Statement A  - Allotments, Obligations Incurred and Obligations Liquidated - By Department, By Quarter
Statement B  - Allotments, Obligations Incurred and Obligations Liquidated - By Region, By Allotment Class
Statement C  - Allotments, Obligations Incurred and Obligations Liquidated - By Department, By Region, By Allotment Class


Part II of the report shows the details by agency, province/city of obligations incurred, liquidated and unliquidated obligations of selected objects of expenditures under MOOE and CO. The selected expenditure objects include those that require details under Section 89 of R.A. No. 8760 as follows:


Maintenance and Other Operating Expenses

Travelling Expenses
Communication Services
Water, Illumination and Power Services
Gasoline, Oil and Lubricants

Capital Outlays

Motor Vehicles


Also included are other expenditure items under MOOE that constitute the bulk of expenditures reported by NGAs. These are Grants, Subsidies and Contributions; Extraordinary and Miscellaneous Expenses; and Investment Outlays.





The financial data presented in this report were based on the quarterly reports received within the cut-off date from the departments, the regional offices and operating units including schools and engineering districts with complete books of accounts.



In FY 2000, the total allotments released to the different departments and agencies amounted to P487.5 billion with the following details: Personal Services - P208.5 billion; MOOE - P184 billion; and Capital Outlays - P95 billion. The allotments as taken up in the books of accounts of the NGAs for each quarter are as follows:



The bulk of the total allotments amounting to P92.6 billion was reported by the Department of Education, Culture and Sports, P79.1 billion of which was for salaries, allowances and other personnel benefits of teachers and school administrators nationwide. The Department of Budget and Management (DBM) reported a total allotment of P82.9 billion including the financial assistance to Local Government Units (LGUs) released under the Special Purpose Fund – Allocations to Local Government Units in the form of Internal Revenue Allotment, Specials Shares of LGUs in the Proceeds of National Taxes, Local Government Empowerment Fund and Municipal Development Fund.


Below are the departments that reported the ten biggest allotments:




Obligations incurred during the year totaled P900.2 billion, composed of Personal Services - P197 billion, (21.9 percent), MOOE - P637.4 billion (70.8 percent), and Capital Outlays - P65.8 billion (7.3 percent). Of the total amount, P483 billion or 53.6 percent was incurred for debt service consisting of loan repayments - P317.8 billion; interests - P156.1 billion and other charges - P9.2 billion. As reported by the Department of Finance (DOF), P481.7 billion of the debt service expenditures were incurred without allotment released by the DBM. The other departments/agencies with reported overdraft maybe due to late receipt of approved Agency Budget Matrix from the DBM.


On a quarterly basis, the obligations were incurred as follows: First Quarter - P162.2 billion, Second Quarter - P257 billion, Third Quarter - P199.1 billion, Fourth Quarter - P281.9 billion.


Total obligations incurred for each of the selected expenditure objects enumerated under Section 89 of R.A. No. 8760 and other objects with significant amount are as follows:



The departments that reported the ten biggest expenditures during the year are:




Out of the P900.2 billion obligations incurred during the year, P802.1 billion was liquidated as of the end of the year. Details of obligations liquidated/disbursements made during the year are as follows: Personal Services - P172.6 billion; MOOE - P605 billion; and Capital Outlays - P24.5 billion. Breakdown by quarter is shown below:


The DOF reported the biggest disbursements amounting to P502.8 billion, made primarily for the servicing of public debt both foreign and domestic composed of loan repayments, interests and other charges. On the other hand, the DBM reported a total disbursements of P74.2 billion, the bulk of which was made out of the funds released to LGUs.


The departments/offices that made the ten biggest liquidations/disbursements during the year are the following:




Owing to the fact that the Central Office of almost all departments/offices are located in Metro Manila, the National Capital Region reported the biggest amount of allotments, obligations incurred and obligations liquidated among all the regions in the country. It is followed by Regions IV, VI and III.


The regional breakdown of allotments, obligations incurred and obligations liquidated is shown below:





A.    Submission of Quarterly Reports

In reporting the requirements under R.A. No.7226 and Section 89 of R.A. No. 8760 the guidelines prescribed under COA Circular No. 92-374, dated March 5, 1992 as amended by COA Circular No. 96-006 dated May 6, 1996 were followed. The quarterly reports submitted by the NGAs (department central/regional offices and operating units/provincial offices) pursuant to the Circulars were the bases in the preparation of the COA Annual Report on Cumulative Allotments, Obligations Incurred and Obligations Liquidated. To ensure its timely completion and submission to the President and Congress of the Philippines the following guidelines were followed:

    1. Cut-off date of February 28, 2001 for the receipt of the Quarterly Reports was set. A total of 25,046 reports were included in this consolidated report. This is 78.4 percent of the reports expected.

    2. For agencies which failed to submit the first to third quarter reports but submitted the fourth quarter, the amount reported under the column "This Quarter" was deducted from the cumulative total and the balance was divided equally to get the amount pertaining to the first, second and third quarters.

    3. In some cases wherein quarterly reports were not submitted, the allotments, obligations and disbursements reported in the quarterly trial balances received by the Accountancy Office were considered as basis for consolidation.


 B.   Constraints in Report Preparation

As in the previous years, several problems were encountered in the preparation and consolidation of Quarterly Reports for FY 2000. Among them are the following:

    1. Non-submission of reports despite several reminders and follow-ups. A listing by department/agency/region of the unsubmitted FY 2000 Quarterly Reports is shown as Annex A hereof;

    2. Incomplete reports;

    3. Delayed submission particularly of the fourth quarter reports depriving the analysts of sufficient time for effective review and analysis;

    4. Non-compliance by agencies with the prescribed report format making the review and analysis time consuming and difficult;

    5. Unreconciled Allotments, obligations incurred and obligations liquidated as shown in the quarterly reports and the trial balances; and

    6. Absence of details for objects of expenditures which should be presented in detail pursuant to COA Circular No. 96-006.