SUPPORT TO THE LGUs FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCE MANAGEMENT
In filling out the AIP Summary Form, the following pointers shall be observed:
1. Column 1 - AIP Reference Code
The AIP Reference Code is vital to ensuring the Plan-Budget Linkage. The code assigned to each PPA
facilitates validation of whether or not the PPAs funded in the budget are the same PPAs prioritized in
the AIP.
0000 - 000 - 0- 0- 00 - 000 - 000 - 000
Activity
Project / Activity
Program
Office
Office Type ( 1- Mandatory, 2 - Optional )
LGU Level ( 1 - Province, 2 - City, 3 – Municipality )
Sub-Sector (if any)
Sector ( 1000 – General Public Services Sector, 3000 – Social Ser-
vices Sector, 8000 – Economic Services Sector, 9000
– Other Services)
The codes for the offices were included to establish the responsibility centers for the PPAs.
Services falling under each sector are presented under Annex C while the suggested coding structure for
the offices in the LGU are presented under Annex D.
2. Column 2 - PPA Description
Column 2 should reflect a concise description of the work to be done under a particular sector to achieve
specific objectives. The scope and nature of the work to be undertaken by the LGU is better captured by
presenting the PPAs in the following manner:
PPA Structure Example
I. Program I. Executive Governance Program
A. 1. Activity 1 A. 1. General Management and Supervision
2. Activity 2 2. Public Affairs, Information, Communication
and Technical Assistance
B. Project B. Operationalization of the Internal Audit Unit
1. Activity 1 1. Rehabilitation of Office Facilities
2. Activity 2 2. Purchase of Office Equipment and Furniture
and Fixtures
The foregoing structure requires that all activities Program – an integrated group of activities that contribute
and projects be subsumed under a specific to a particular continuing objective of a department/
program, which, in turn, should be under agency.
the responsibility of a particular department/ Project – a special undertaking carried out within
office in the LGU. Accordingly, the program(s) a definite time frame and intended to result in
should be directly related to the mandate of the some pre-determined measure of goods and
services.
Department/Office as it should contribute to
the achievement of the Department’s/Office’s Activity – a work process that contributes to the
implementation of a program, sub-program or
organizational outcome(s). project.
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BUDGET OPERATIONS MANUAL FOR LOCAL GOVERNMENT UNITS
3. Column 3 - Implementing Office/Department
The implementing Office/Department refers to the Office/Department responsible for the execution of
the PPAs, and for delivering the services as mandated by the Local Government Code of 1991. The
implementing Office/Department should be presented by sector.
4. Columns 4 and 5 - Implementation Schedule
The expected start and completion dates should be specified to provide a concrete basis for work plans,
and to serve as a guide in procurement planning.
5. Column 6 - Expected Outputs
Major Final Outputs (MFOs) shall be identified for each Program while immediate outputs shall be
identified for each project and activity.
An MFO is a good or service that a department/agency is mandated to deliver to external clients through
the implementation of PPAs.
It may be defined relative to the outcomes that they contribute to, the client or community group it
serves, and the business lines of the department/agency.6
Immediate Output, for purposes of the AIP Summary Form, refer to what is actually produced when the
activities are undertaken.
For example:
PPAs MFO / Immediate Output
I. Executive Governance Program Executive Governance Services
A. 1. General Management and PPA implementation managed
Supervision LGU personnel supervised
2. Public Affairs, Information, Information, Education and Communication
Communication and Technical activities and materials developed/
Assistance disseminated
Stakeholders assisted
B. Operationalization of the Internal Internal Audit Unit operationalized
Audit Unit
1. Rehabilitation of Office Facilities Office Facilities
2. Purchase of Office Equipment Office Equipment and Furniture and
and Furniture and Fixtures Fixtures
Sample MFOs and their corresponding Performance Indicators (PIs) are presented under Annex B.
6. Column 7 - Funding Source
Consistent with the provisions of RA No. 7160 and its IRR, whereby the AIP should indicate the PPAs for
inclusion in the local government budget as well as in the budgets of NGAs or GOCCs concerned, the
following may be indicated under the column for funding source:
General Fund (GF) Proper
GF – Special Account (SA) – 20% Development Fund (DF)
6 The Organizational Performance Indicator Framework (OPIF) Reference Guide, 2012
11
SUPPORT TO THE LGUs FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCE MANAGEMENT
GF – Local Disaster Risk Reduction Management Fund (LDRRMF)
Transfers from NGAs (Other than those accruing to the GF)
Transfers from GOCCs (Other than those accruing to the GF)
Transfers from Other LGUs
Income of Local Economic Enterprises (for its own operations)
Others
7. Columns 8 to 11 - Estimated Cost
The total cost of the PPAs is broken down into PS, MOOE and CO.
For purposes of the AIP, the total PS and MOOE costs of a particular program or office, both line
departments and administrative/ legislative support services, shall represent the current operating cost
for all regular activities. Costs which add to the fixed assets of the LGU are categorized as capital outlays.
8. Columns 12 to 14 – Amount of Climate Change PPAs7
Indicate the amount pertaining to PPAs for Climate Change Adaptation (CCA) and Climate Change
Mitigation under Columns 12 and 13, respectively.
PPAs for CCA are measures that address the drivers of vulnerability. Vulnerability is the degree to which
people or systems are susceptible to the adverse effects of climate change but are unable to cope with
them. Vulnerability can be decreased by reduced exposure (e.g., shifting population or assets to less risky
areas through zoning regulations), or by increasing coping capacity (e.g., well-targeted poverty reduction,
income and livelihood diversification, health programs and dissemination of climate risk information).
Measures that directly confront climate change impacts are PPAs that directly address the impacts or
potential impacts of climate change variability such as construction of infrastructure that incorporate
climate change risks in the design.
Measures that build resilience to current and future climate risks, on the other hand, refer to those
which increase the capacity of the social or ecological system to reach or maintain an acceptable level of
functioning or structuring while undergoing changes.
PPAs for CCM are measures to reduce greenhouse gas emissions such as, but not limited to, improved
energy efficiency, use of renewable energy, improved forest management, and improved transport systems.
They also include measures to protect and enhance greenhouse gas sinks and reservoirs such as but not
limited to Bantay Gubat, Bantay Bakawan, and reforestration.
The entire cost of the PPA is reflected as Climate Change expenditure if the program/project profile
indicates that the primary goal/objective of the PPA is to provide a direct adaptation or mitigation
response.
If CCA or CCM is not the primary objective of the PPAs, only the cost of specific components of the PPA
that match those listed in the CC Typologies (Annex A of DBM-CCC-DILG JMC No. 2015-01 dated July
23, 2015) is reflected.
2.5 Procurement Planning and Budgeting Linkage
Section 7 of RA No. 91848 explicitly provides that all procurement should be within the approved budget of
the Procuring Entity and should be meticulously and judiciously planned by the Procuring Entity concerned.
7 DBM-CCC-DILG JMC No. 2015-01 dated July 23, 2015
8 Government Procurement Reform Act
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