The budget execution phase begins when the spending agency receives the guidelines on the release and utilization of funds issued by the Department of Budget and Management (DBM) through an allotment release order and Notice of Cash Allocation. DBM and the Bureau of the Treasury (BTr), as spending agencies, incur liabilities on behalf of the government while implementing programs, activities, and projects. Corresponding legal obligations will then be paid for by the government thereby resulting to disbursement, which is the final step of the phase, where government money is spent.
In BTMS, the budget execution phase covers the following PFM functions:
- Commitments and Obligations Management
- Payments Management
- Receipts Management
- Property, Plant and Equipment
- Accounting and Fiscal Reporting
Commitments and Obligations Management
The processes involved in setting aside the budget allotments for specific expenditures that will be incurred are managed by the Commitments and Obligations Management module. The commitment can be created manually, or automatically through creation and approval of a Purchase Request (PR). The Obligation Request (OBR) can also be created manually, linked to a pre-created Commitment, or automatically when a Purchase Order (PO) is prepared and approved. The system enforces budget control where commitments or obligations exceeding allotments are not allowed. These public financial management functions are performed by the requesting unit or office and the Budget unit or division. Systems and customized reports according to government-prescribed format are available in this module.
The processes involved in recording of expenditures and processing of payments to suppliers, employees, and others are managed by the Payment Management module. Disbursement Vouchers (DV) can be created manually or linked to one or more approved OBR. The system maintains a database of suppliers, details of expenditures and payments, bank accounts which users could select. It also enforces expenditure control against cash allocations where payments more than approved obligations and/or available bank balances are not allowed. Expenditures are also matched against POs and Good Received Notes (GRNs) for acceptance and/or invoices from various suppliers. These functions are performed by the requesting unit or office and the Accounting unit or division or the Financial Management Service.
The processes involved in the settlement of liabilities or payment of approved DVs are are integral part of the Payments Management module. Payment forms are created through the system, from determining due and demandable transactions through Payment Extracts up to finalizing fund transfers. It also performs the daily bank reconciliation automatically using an interface with the electronic bank statements. These functions are performed by the Cash unit or division or the Administrative Service, and the Head of the Agency. Systems and customized reports according to government-prescribed format are available in this module.
Systems and customized reports according to government-prescribed format are available in this module.
The Receipt Management module manages all the processes involved in recording, classifying and managing revenue collections from different sources. This involves creation, modification, and approval of Revenue Voucher (RV) and Revenue Receipt Voucher (RRV). The main function of receipts management is to ensure correct recording and reporting of Non-Tax Revenue collections and other receipts (e.g. sale of bid docs, refunds, and the like) by DBM and BTr. Systems and customized reports according to government-prescribed format are available in this module. These functions are performed by the Accounting and Cash units or divisions.
Property, Plant and Equipment
The process involved in the procurement of assets, transfers, disposal, survey and valuation of the property, plant and equipment are managed by the PPE module. It covers the steps from the receipt of the new PPE’s on their acquisition, recording of their physical location, financial information, allocation of assets, and verification details. Maintenance of PPE register will be done through the system providing mandatory information such as asset ID, asset classification and sub-classification, Asset item group, value of the asset, asset acquisition methods, depreciation method and period, salvage value, item operational status, disposal details, etc. These functions are performed by the Property and Supply unit or division. Systems and customized reports according to government-prescribed format are available in this module.
Accounting and Fiscal Reporting
The processes involved in compiling all the financial transactions, generation of accounting reports, consolidated financial statements, budget and financial accountability reports, and other such reports as required for fiscal performance monitoring and management are managed by the Accounting and Fiscal Reporting module. The Journal Entry Vouchers (JEV) are generally linked to approved DVs, RVs, RRVs and Asset transactions, and hence generated automatically including updates in ledgers and registries. It can also be prepared manually for necessary periodic (month and year-end) adjustment entries. The system provides flexible reporting functionality, both the pre-formatted statutory reports and statements, such as periodic Trial Balances and Annual Financial Statements, and the system format-free reports for managerial purposes.