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Western

View COMMITMENT
There is a difference
between interest and commitment.

When you are interested in doing


something,
you do it only when it is convenient.

When you are committed to something,


you accept no excuses, only results.
Kenneth Blanchard
Preparation of Annual Investment
Program (AIP) for Provinces, Cities,
Municipalities for FY 2016

Updates on Local Government Budgeting


Crown Regency Hotel, Quadalupe, Cebu City
June 8-10, 2015

ABSAL NAZ ABAH


Budget and Management Specialist
Outline
• Background
• New Issuances

▫ Local Budget Memorandum No. 68


▫ DBM-CCC-DILG JMC No. 2014-1

• Revised Form of the AIP


• Program, Project and Activity Structure
Background (key documents)
• In 2007 Joint Memorandum Circular (DBM,
NEDA, DILG, DOF) No 1 series of 2007 was
issued as NGA initiative in local planning and
budgeting
▫ serves as guide in harmonization of local
planning, investment programming, revenue
administration, budgeting and expenditures
management
Background (key documents)
▫ Planning and budgeting linkage is
institutionalized in the LGUs

▫ This linkage is provided through the concept of


the Annual Investment Program (AIP)
WHAT CONNECTS
PLAN TO BUDGET?
Social
Services
Economic
Services

General
Services

PLAN BUDGET
AIP
What is an ?
 annual slice of the LDIP which
constitutes the total resource
requirements for all
programs/projects/activities
 yearly program of expenditures
both for capital and current
operating requirements of the
LGUs
 document that reinforces plan-
budget linkage
PREPARING the AIP
KEY PLAYERS
1. Local Development Council
(LDC)
2. Local Planning and
Development Coordinator
(LPDC)
3. Local Budget Officer (LBO)
4. Local Chief Executive (LCE)
5. Local Sanggunian (SP/SB)
6. NGOs, Civil Society Groups
and Other Stakeholders
PREPARING THE AIP: Roles of Key Players

Local Development Council

Cull out the current


slice of the LDIP as
input and annual Determine the
component of the annual resource
Align development
Capital Expenditure requirements of
plan with current (CAPEX) into the Priority
development AIP Summary Form development
issues projects of the AIP.
PREPARING THE AIP: Roles of Key Players

Local Planning Development Coordinator

Updates the AIP


to consider new
and
unimplemented
PPAs. Consolidate the
PPAs of every
Department.
How to
update?
PREPARING THE AIP: Roles of Key Players

Local Budget Officer

Integrate the CAPEX


with the PS, MOOE
and Other CO into the
total resource AIP to
be reflected in the AIP
Summary Form.
PREPARING THE AIP: Roles of Key Players

Local Chief Executive

Present the AIP


Summary Form to the
LDC for deliberation
and concurs with the
AIP Summary Form
as agreed upon by the
LDC.
PREPARING THE AIP: Roles of Key Players

Sanggunian

Approve the AIP.


PREPARING THE AIP: Roles of Key Players

NGOs, Civil Society Groups and


Other Stakeholders

Serve as key informants on


major development issues
in the LGU. Provide
relevant information in the
identification and
prioritization of PPAs for
inclusion in the AIP.
The AIP Process Flow Chart
LDC
Aligns Dev Plan/ELA LPDC updates AIP LDC prepares Draft AIP
(PDPFP/CDP) to consider new and and presents to
with current unimplemented LCE for review
development issues PPAs

LBO determines resource LDC determines annual


requirements of PPAs resource requirements
for Basic Services Delivery of priority development
and Administrative/ projects from LDIP
Legislative Services

LDC deliberates on/


endorses AIP to
LCE presents AIP
Local Sanggunian
to LDC for deliberation

Local Sanggunian approves AIP


for the Budget Year
A nnex A
Summary Fo rm

CY ______ Annual Investment Program (AIP)


By Program/Project/Activity by Sector
As of _______________________
Province/City/Municipality/Barangay:________________________

SCHEDULE OF IMPLEMENTATION AM OUNT (in thousand pesos)


IM PLEM ENTING EXPECTED FUNDING Personal M aintenance
AIP REFERENCE PROGRAM /PROJECT/ACTIVITY STARTING COM LETION
OFFICE/DEPARTM ENT OUTPUTS SOURCE Services and Other Capital Outlay TOTAL
CODE (1) DESCRIPTION (2) DATE DATE
(3) (6) (7) (PS) Operating (CO) (10) (11)
(4) (5) Expenses
(8)
(M OOE)
General Public Services
(10)

Economic Services
AIP Summary Form
(80)

Social Services
(30)

Prepared By: Attested by:

Planning Officer/PLDC Budget Officer Local Chief Executive


Date: Date: _____________ Date: _______________
New Issuances
• Local Budget Memorandum No. 68 dated July 1,
2014 provides that:
▫ Together with the General Annual Budget, LGUs
shall prepare their respective Local Disaster Risk
Reduction Management Plans (LDRRMP) and
Local Climate Change Action Plan (LCCAP)

▫ LGUs shall be encouraged to identify, tag and


prioritize climate change programs, activities and
projects (P/A/Ps). Guidelines for the purpose
shall be issued separately
New Issuances
• Joint Memorandum Circular No. 2014-1 (DBM-
CCC-DILG) dated August 7, 2014:
(Tagging/Tracking Climate Change Expenditures in
the Local Budget)
▫ To identify, tag and prioritize climate change
programs, activities and projects (PAPs) by all
Departments and Offices of LGUs;

▫ To take stock of climate change programs, activities


and projects and to track and report climate change
expenditures of LGUs
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:
• LGUs are encouraged to increase budgetary
allocations for basic services and facilities responsive
to climate change to improve the adaptive capacity of
communities and reduce adverse impact of climate
change

• All climate change related strategies and investments


of the LGUs in the AIP shall be identified as follows:

▫ Adaption responses
▫ Mitigation responses
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:

▫ To tag climate change expenditures in the AIP, the


following shall be undertaken:
 Identify P/A/Ps with climate change adaptation and
mitigation expenditures;
 Identify the components of the P/A/Ps that are
adaptation or mitigation responses using the Climate
Change Typologies
 Specify the amount of climate change component
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:
• LGUs who do not have any P/A/Ps that can be tagged
as climate change adaptation/mitigation can enter :
“No identified climate change related expenditures”

• For Provinces, Cities and Municipalities:

▫ Ensure that climate change is integrated in the budget


call issued by the LCE;
▫ Identify climate change expenditures in their Annual
Investment Programs (AIP) using the CCE typologies
▫ Tag identified CCE in their AIP using the revised AIP
form (Annex B)
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:

▫ Accomplish and submit to DILG and DBM the list


tagged climate change P/A/Ps during the annual
submission of the budget proposals;

▫ Ensure the integration of climate change PAPs in


the LGU budget proposals of department during
the technical budget hearing of the Local Finance
Committee (LFC) and the LCE;
Joint Memorandum Circular No. 2014-1
(DBM-CCC-DILG) dated August 7, 2014:

▫ For PAPs that do not qualify under the Climate


Change Typologies listed in Annex A, request CCC
to create a new typology;

▫ The CCET will be implemented by all LGUs in FY


2016
Annual Investment Program (AIP)
AIP Implementing Schedule Expected
REFERENCE Program/proje Office/Dept Starting Completion Outputs Funding
CODE ct/activities
(3) (4) (5) (6) (7)
(1) (2)
Annual Investment Program (AIP)
AMOUNT OF CLIMATE
AMOUNT
CHANGE P/P/A
Climate
Climate
Change Climate Change
adpatat
PS MOOE CO TOTAL ion
Change
mitigatio
Typology
code
(8) (11) (12) n (13)
(9) (10) (14)
Climate Change Adaptation:

- adjustments in human and natural systems in


response to actual or expected climate signals or
their impacts, that moderate harm or exploit
beneficial opportunities.
Climate Change Mitigation:

- in the context of climate change, refers to human


intervention to address anthropogenic emissions
by sources and removals by sinks of all GHG,
including ozone-depleting substances and their
substitutes
Human Security (Health):
Adaptation Mitigation
Develop and introduce Interventions that reduce
health surveillance and air pollution (e.g., anti-
rapid response system that smoke belching campaign)
reduces health impact of
climate change
Fisheries (Policy & Governance):
Adaptation Mitigation
Formulate/implement Introduce ordinances to
ordinances on protection of reduce the emission of
mangroves GHGs or absorption of
GHGs in the fishery sector
Water sufficiency( water sanitation):
Adaptation Mitigation
Training for community- Train Managers or workers
based water associations to to improve water or energy
managed water supply efficiency in business
infrastructures operations
Climate change Typologies for LGUs:

Strategic priority :
1. Food Security
1. Agriculture
2. Livestock’
3. fisheries
2. Water Sufficiency
3. Ecological and environmental Stability
4. Human Security
5. Climate smart Industries and Service
6. Sustainable energy
7. Knowledge and Capacity Development
8. Finance
9. Cross Cutting Priorities
Programs/Project/Activities (major
component of the AIP):
PPA Structure

• Review existing PPA structure


Analyze
Results/ Policy
Outputs Status
Objectives
of PPAs Quo
Relevant Yes/No
to or If Yes
consistent
with If No

Determine Redesign
Causes Program
Structure
PPA Structure
• The review of existing program should ascertain the
relevance of present operations to the wider policy
objectives of the LGU;

• Evaluation of PPAs structure to determine the program’s


capacity to produce desired result;

• Performance indicator shall be identified to served as


bases for measuring performance.
PPA Structure
• Redesigning current PPA structure: (regular activities or
projects of a specific program):

Step 1. Review the existing regular activities or projects


of a specific program.
▫ What are the objectives of the program?
▫ Are the projects/activities relevant to the mission?
▫ What are the output indicators of the program?
▫ Are the results consistent with the program objectives?
▫ What activities/projects must be
redesigned/abolished?
PPA Structure
• Redesigning current PPA structure: (organization
structure)
Step 2. Design the proper organization structure that
will best carry out the program objectives.
▫ What are the tasked to be performed?
▫ What is the optimum number of personnel that can
carryout tasks efficiently and effectively?
▫ What qualifications are required of personnel to
perform the tasks well?
THANK YOU

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