Chapter III

Appropriations and Obligations

The budget of the barangay as authorized by the Sangguniang Barangay (SB) through an appropriation ordinance serves as the authorization for the barangay to incur obligations. The Chairman of the Committee on Appropriations (CCA) shall be responsible for the proper monitoring and control of the barangay budget.

The specific policies and procedures related to barangay appropriations and obligations are:

3.1. Specific Policies and Procedures

3.1.1 Expenditures/Obligations shall in no case exceed available appropriations.

3.1.2 The duly approved barangay appropriation ordinance shall be recorded in the Record of Appropriation and Obligations (RAO) as shown in Annex 6 that shall be maintained by the CCA. Separate RAO shall be maintained for the following: a) 10% percent share of the Sangguniang Kabataan; b) 5% Local Disaster Risk Reduction Management Fund (LDRRMF); and c) 20% Development Fund.

3.1.3 The RAO shall show the annual and supplemental appropriations and the obligations charged against the said appropriations. It shall be used to monitor the availability of appropriations to cover proposed expenditures/obligations.

3.1.4 Charges against the appropriations shall be based on the obligations made as shown in Contracts or Purchase Orders (POs) and in the Disbursement Voucher (DV), and Payrolls.

3.1.5 Based on the RAO, the CCA shall certify as to the existence of appropriation on the Contracts or POs, DV or Payrolls. As such, the CCA shall regularly update the RAOs by posting all certified obligations to determine available balance of the appropriations.

3.1.6 The CCA shall report the charges to and balances of appropriations to the Punong Barangay (PB) and the SB monthly through the Statement of Appropriations, Obligations and Balances (SAOB) (Annex 7). It shall be certified correct by the CCA.

3.1.7 The PB and SB shall use the SAOB in the evaluation of the status of barangay finances.

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