Review, Evaluation, and Approval of the Corporate Operating Budget (COB)

Details: 30.Jul

The review, evaluation, and approval of the COB of GOCCs/GFIs by the DBM is undertaken to ensure that the budgets of government corporations are consistent and supportive of national objectives and development plans, and consistent with the budgetary standards and guidelines adopted for national government agencies and local government units pursuant to Executive Order No. 518 dated January 23, 1979.The service is considered as highly technical considering the requirement for technical knowledge, specialized skills and/or training in the preparation thereof.

Office or Division

OFFICE OR DIVISION:	Budget and Management Bureau (BMB) - C Office of the Assistant Secretary for Budget Preparation and Execution (BPE) Group Office of the Undersecretary for BPE Group Office of the Secretary (OSEC) and Administrative Service-Central Records Division (AS-CRD)
CLASSIFICATION:	Highly Technical
TYPE OF TRANSACTION:	G2G - Government to Government
WHO MAY AVAIL:	GOCCs and GFIs under the coverage of the Governance Commission for GOCCs (GCG) pursuant to Republic Act 10149 and those under the jurisdiction of the DBM, with or without budgetary support from the national government

Checklist of Requirements

Client Steps

Administrative Service-Central Records Division (AS-CRD)

CLIENT STEPS	AGENCY ACTION	FEES TO BE PAID	PROCESSING TIME	PERSON RESPONSIBLE
1. Submit GOCC’s COB and documentary requirements to AS-CRD	1. Receive GOCC’s COB and documentary requirements	None	within 1 hour[1]	Administrative Assistant (ADAS) I, and Administrative Officer (AO) III and V
1.1 None	1.1 Upload all documents to the Document Management System (DMS) and attach DMS-generated routing slip to the document	None
1.2 Receive the DMS-generated acknowledgement receipt (AR).	1.2 Issue DMS-generated AR; and send hardcopy to BMB-C	None

Budget and Management Bureau (BMB) - C

CLIENT STEPS	AGENCY ACTION	FEES TO BE PAID	PROCESSING TIME	PERSON RESPONSIBLE
2. None	2. Route request to Director	None	7 working days, 6 hours, 50 minutes	Administrative Officer (AO)/Administrative Assistant (ADAS)
3. None	3. Instruct CBMS concerned to act on GOCC’s COB	None		Director
4. None	4. Assign GOCC’s COB proposal to technical staff for evaluation	None		CBMS
5. None	5. Validate the consistency of data/figures reflected in the different COB Forms and their supporting schedules under the current year Submitted on or before March 31 of the fiscal year	None		Budget and Management Analyst (BMAN), Budget and Management Specialist (BMS) I, BMS II, Senior BMS (SRBMS)
5.1 None	5.1 The total operating requirements indicated in the Uses of Funds by Expense Class (DBM Form No. 706) must be consistent with the total amount in the Board approval	None
5.2 None	5.2 The amounts in the following forms must be consistentwith the total amount per allotment class reflected inthe Uses of Funds (DBM Form No. 706): DBM Form No. 703-A - Personnel Services (PS) DBM Form No. 703-B - Maintenance and Other Operating Expenses (MOOE), net of non-cash expenses DBM Form No. 703-C - Capital Outlays (CO)	None
5.3 None	5.3 Total Sources of Fund reflected in DBM Form No. 705(Comparative Sources of Funds) should be equal to orgreater than the Uses of Funds under DBM Form No.706	None		BMAN, BMS I, II, SRBMS
5.4 None	5.4 Evaluate current operating expenditures and capital outlayrequirements of the GOCC/GFI for the fiscal year taking into consideration the following (Details of evaluation per attached Schedule J): Sources of Funds Ensure that all expenditures shall be within the limits of available funds realized from corporate receipts, authorized corporate borrowings, and National Government budgetary support (current year GAA and prior year's unutilized allotment as authorized in its Special Provision) Uses of Funds As a general policy, all proposed expenditures shall be aligned with the priorities of the National Government, as well as the GOCC's mandate, as indicated in their Corporate Strategic Measures (DBM Form 700)	None
5.5 None	5.5 Evaluate proposed COB considering the GOCC's physicalperformance in the previous years and the targets for theproposed year to ensure that funds are spent in the performanceof the GOCC's mandate	None
5.6 None	5.6 Evaluate the immediately preceding year's COB utilizationpresented by allotment class as against the DBM-approved COBfor the same year	None
5.7 None	5.7 Compute financial ratios based on the three-year financialperformance for the following: For heavily-subsidized GOCCs: Revenue to Expense Ratio to reflect the operational efficiency and funding deficits, if any For Government Banks Capital Adequacy Ratio (CAR) based on the prescribed standards set by the Bangko Sentral ng Pilipinas which shall be included in the Memorandum	None
6. None	6. Review action documents.	None	2 working days	Supervising BMS
7. None	7. Review action documents.	None	2 working days	CBMS
8. None	8. Review action documents.	None	2 working days	Assistant Director
9. None	9. Review and recommend approval of the action documents	None		Director

Office of the Assistant Secretary and Office of the Undersecretary for Budget Preparation and Execution (BPE) Group

Administrative Service-Central Records Division (AS-CRD)

General Solano Street
San Miguel, Manila
Philippines

Telephone No: 8657-3300
Email: osec@dbm.gov.ph

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CLIENT STEPS	AGENCY ACTION	FEES TO BE PAID	PROCESSING TIME	PERSON RESPONSIBLE
12. Receive COB approval letter	11. Release COB approval letter	None	10 minutes*	AO/ADAS
TOTAL			20 working days
* If for pick-up by the agency concerned; Within 1 day for personal delivery; Within 3 days thru courier service.