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    Assignment Module 2

    Uploaded by

    Drew Banluta
    The document provides information about a government entity (Entity A) that received a ₱100B appropriation for the year. In the first quarter, Entity A received a ₱45B allotment from the DBM and extended half of that allotment to its lower operating units. Entity A also received monthly ₱15B disbursement authorities from the DBM and extended half of each to its operating units. By the end of the quarter, Entity A had incurred ₱40B in obligations and made ₱35B in disbursements.

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    Assignment Module 2

    Uploaded by

    Drew Banluta
    2K views3 pages
    The document provides information about a government entity (Entity A) that received a ₱100B appropriation for the year. In the first quarter, Entity A received a ₱45B allotment from the DBM and extended half of that allotment to its lower operating units. Entity A also received monthly ₱15B disbursement authorities from the DBM and extended half of each to its operating units. By the end of the quarter, Entity A had incurred ₱40B in obligations and made ₱35B in disbursements.

    Original Description:

    From "Government Accounting and Accounting for NPOs"-MILLAN

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    The document provides information about a government entity (Entity A) that received a ₱100B appropriation for the year. In the first quarter, Entity A received a ₱45B allotment from the DBM and extended half of that allotment to its lower operating units. Entity A also received monthly ₱15B disbursement authorities from the DBM and extended half of each to its operating units. By the end of the quarter, Entity A had incurred ₱40B in obligations and made ₱35B in disbursements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views3 pages

    Assignment Module 2

    Uploaded by

    Drew Banluta
    The document provides information about a government entity (Entity A) that received a ₱100B appropriation for the year. In the first quarter, Entity A received a ₱45B allotment from the DBM and extended half of that allotment to its lower operating units. Entity A also received monthly ₱15B disbursement authorities from the DBM and extended half of each to its operating units. By the end of the quarter, Entity A had incurred ₱40B in obligations and made ₱35B in disbursements.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Module 2

    Problem 2-1.TRUE OR FALSE.

    FALSE 1. The budget preparation in the Philippines uses a “bottom-up” approach. Under this approach,
    the budget preparation starts from the highest levels of the government down to the lowest levels.
    *lowest levels of the government to the highest levels.

    FALSE 2. An entity prepares its budget by simply rolling-over the budget in the previous year and
    adjusting each line item by 10% increment to reflect inflammation. This process is described as zero-
    based budgeting. *incremental budgeting

    FALSE 3. After the budget call from DBM, the proposed budget of various agencies are submitted
    immediately to the Office of the President for review. *DBM for budget hearings

    FALSE 4. An entity can incur obligations after receiving notice of its appropriation, but before receiving
    the allotment. *and after

    FALSE 5. Budget deliberation in the Congress Start in the House of Senate. *House of Representatives

    TRUE 6. A government entity must first receive an allotment before it can incur obligations.

    FALSE 7. A government entity can make disbursement even before it receives a disbursement authority.
    *only after

    FALSE 8. Appropriation is also called obligational authority. *Allotment

    TRUE 9. The Notice of Cash Allocation (NCA) is an authority issued by the DBM to central, regional, and
    provincial offices and operating units to cover their cash requirements.

    TRUE 10. Responsibility accounting greatly enhances budget accountability because managers are
    evaluated only in terms of the costs or other variables that they control, and therefore, budget
    deviations can be readily attributed to the managers accountable therefor.

    PROBLEM 2-3: MULTIPLE CHOICE

    Fact pattern:

    A legislation approves the allocation of ₱ 100B funds to support the operations of Entity A (a
    government agency) in the current year. At the start of first quarter, Entity A receives authorization to
    incur obligations for a maximum amount of ₱45B in that quarter. Entity A extends half of that
    authorization to its lower operating units. During the quarter, Entity A receives monthly authorization to
    disburse funds not to exceed ₱15B per month. Entity A extends to half of those monthly authorization to
    its lower operating units. At the end of the quarter, total obligations incurred mounted to ₱40B while
    total disbursement amounted to ₱35B.

    1. The allocation of the ₱100B funds to Entity A is referred to as


    a. Allotment
    b. Appropriation
    c. Obligation
    d. Sub-allotment
    2. The allocation of the ₱100B funds to Entity A is authorized by
    a. Department of Budget and Management (DBM)
    b. Commission on Audit (COA)
    c. Bureau of Treasury (BTr)
    d. Congress
    3. The ₱45B authorization is referred to as
    a. Allotment
    b. Appropriation
    c. Obligation
    d. Sub-allotment
    4. The ₱45B authorization is received by Entity A from
    a. DBM
    b. COA
    c. BTr
    d. Congress
    5. The half of the ₱45B extended by Entity A (Central Office) to its lower operating units is referred
    to as
    a. Allotment
    b. Appropriation
    c. Obligation
    d. Sub-allotment
    6. Which of the following best describes the ₱15B monthly authorizations?
    a. Allotment
    b. Obligation authority (e.g., Notice of Cash Allocation ‘NCA’)
    c. Disbursement authority (e.g., Notice of Cash Allocation ‘NCA’)
    d. Disbursement authority (e.g., Notice of Transfer of Allocation ‘NTA’)
    7. The ₱15B monthly authorizations are received by Entity A from
    a. DBM
    b. COA
    c. BTr
    d. Congress
    8. The half of the ₱15B monthly authorizations extended by Entity A (Central Office) to its lower
    operating units is referred to as
    a. Cash Disbursement Ceiling
    b. Non-Cash Availment Authority
    c. Notice of Cash Allocation (NCA)
    d. Notice of Transfer of Allocation (NTA)

    9. In Entity A’s first quarter Statement of Appropriations, Allotments, Obligations, Disbursements


    and Balances, how much is shown as “unreleased appropriations?’
    a. ₱65B
    b. ₱60B
    c. ₱55B (₱100B Appropriation - ₱45B Allotment received)
    d. ₱45B
    10. In Entity A’s first quarter Statement of Appropriations, Allotments Obligations, Disbursements
    and Balances, how much is shown “unobligated allotment?”
    a. ₱6B
    b. ₱5B (₱45B Allotment received - ₱40B Obligations incurred)
    c. ₱10B
    d. ₱15B
    11. In Entity A’s first quarter Statement of Appropriations, Allotments Obligations, Disbursements
    and Balances, how much is shown “unpaid obligation?”
    a. ₱6B
    b. ₱5B (₱40B Obligations incurred - ₱35B Disbursements)
    c. ₱10B
    d. ₱15B

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