How to prepare a Statement of Comparison of Budget and Actual Amounts (SCBAA)?

Pursuant to Section 25, Chapter 3 of the Government Accounting Manual for National Government Agencies (GAM for NGAs),

An entity shall prepare a comparison of the budget and actual amounts spent as a separate statement since the budget and the financial statements are not prepared on a comparable basis in accordance with PPSAS (Par. 23, PPSAS 24).

Said comparison of the budget and actual amounts is prepared thru a statement called the Statement of Comparison of Budget and Actual Amounts (SCBAA).

The SCBAA is among the components of a complete set of Financial Statements which is required to be submitted to the Commission on Audit (COA) on or before February 14 of every year.

Documents Needed to Prepare a SCBAA

The following documents are needed in preparing a SCBAA, viz:

1. Report of Revenue and Other Receipts (RROR) or commonly known as Financial Accountability Report (FAR) No. 5;

2. Registry of Appropriations and Allotments (RAPAL);

3. Registry of Allotments, Obligations, and Disbursements (RAOD)/Registry of Budget Utilization and Disbursements (RBUD);

4. Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (SAAODB) (FAR Nos. 1, 1-A, 2, and 2-A);

6. List of Allotments and Sub-Allotments (FAR No. 1-B);

7. Statement of Cash Flows (SCF);

8. Report of Collections and Deposits (RCD);

9. Report of Checks Issued (RCI);

10. Report of Authority to Debit Account Issued (RADAI);

11. Tax Remittance Advices (TRAs); and

12. Other documents needed to support the figures to be indicated in the SCBAA.

General Procedures in the Preparation of a SCBAA

The SCBAA shall be prepared based on the various registries maintained by the Budget Division/Unit such as the RRORs, RAPAL, RAOD/RBUD and other SDs.

In general, the SCBAA shall present the following:

a. The original (approved appropriations, prior year’s not yet due and demandable obligations) and final budget (continuing appropriations, transfers, realignments/modification, reallocation and withdrawals) amounts;

b. The actual amounts on a comparable basis; and

c. By way of note disclosure, an explanation of the material differences between the budget and actual amounts, which are not included in the financial statements.

An entity shall present an explanation of whether the changes between the original and final budget are a consequence of reallocations within the budget by way of note disclosure in the FSs.

Hereunder is a pro-forma SCBAA as shown in the GAM.

Specific Procedures in the Preparation of a SCBAA

Based on the RRORs, RAPAL, RAODs/RBUDs and SDs, obtain the data on budgeted and actual revenue, appropriations, allotments, obligations/utilizations and disbursements and post these in the appropriate column of the SCBAA.

The number in the ‘Notes’ column shall correspond to those shown in the Notes to FS prepared by the agency.

The ‘Notes’ contain the disclosures required for the explanation of the material differences between the budget and actual amounts, which are not included in the financial statements.

I. “Receipts” portion of the SCBAA

The Receipts portion of the statement shall contain the various revenues and other receipts of the agency showing the following:

a. Budgeted Amount:

Original – the approved estimated revenue of the entity per major account based on the RROR maintained by the agency.

Final – the approved estimated revenue of the entity after effecting the adjustments as reflected in the RROR.

In cases where the estimated revenue was not reflected on the approved budget, the actual collections shall be considered as the estimated revenue (final). The same shall be disclosed in the notes to the FSs.

b. Actual Amounts on Comparable Basis – refer to collections received from revenue transaction based on the RCD, CRReg (for OU without complete set of books) and CM/Abstract of Deposit as posted in the RROR.

The Final Budgeted Amount and Actual Amounts on Comparable Basis is compared to get their difference.

The NCA received for funding requirements of the agency shall not be considered as receipts for the purpose of the SCBAA.

II. “Payments” portion of the SCBAA

The Payments portion of the SCBAA shall contain the expenditures of the agency classified into Personnel Services (PS), Maintenance and Other Operating Expenses (MOOE), Capital Outlay (CO), Financial Expenses (FE) and Other Disbursements showing the following:

a. Budgeted Amount:

Original – the approved appropriations of the agency as reflected in the GAA and other appropriations law.

Final – the approved appropriations of the agency after effecting the adjustments (transfers, realignments/modification of allotments, reallocations, and withdrawals) as reflected in the RAPAL.

b. Actual Amounts on Comparable Basis – refer to actual payments/disbursements posted in the RAOD based on the RCI, RADAI, TRA and JEV for disbursements not recorded in the RCI and RADAI.

For Operating Units without complete set of books, the source documents are the CBReg, CDReg and the JEV.

The Final Budgeted Amount and Actual Amounts on Comparable Basis is compared to get their difference.

Other Things to Remember

▪️The SCBAA shall be prepared by fund cluster based on the UACS.

Fund Cluster is composed of the following:

Cluster 01: Regular Agency Fund
Cluster 02: Foreign Assisted Projects Fund
Cluster 03: Special Account-Locally Funded/Domestic Grants Fund
Cluster 04: Special Account-Foreign Assisted/Foreign Grants Fund
Cluster 05: Internally Generated Funds
Cluster 06: Business Related Funds
Cluster 07: Trust Receipts

▪️In addition a consolidated/combined statement of all fund clusters shall likewise be prepared.

▪️Prepare the SCBAA in two (2) copies.

▪️Verify the actual amounts, both under the Receipts and Payments portion, with the accounting records and the Statement of Cash Flows. The data on Actual Amounts shall be verified by the Accounting Division/Unit in the Statement of Cash Flows (SCF).

▪️The difference between the Final Budget and the Actual Amounts in the SCBAA shall be reconciled with the balances of unreleased appropriations/budget, unobligated allotments/unutilized budget, and unpaid obligations/utilizations reflected in the SAAODB/SABUDB.

▪️Both the Accountant and Budget Officer certify as to the correctness of the SCBAA.

▪️The SCBAA shall be submitted together with the other Financial Statements to the Resident Auditor for post audit.

A complete set of Financial Statements is composed of the following:

a. Statement of Financial Position (SFP);

b. Statement of Financial Performance (SFPer);

c. Statement of Changes in Net Assets/Equity (SCNA/E);

d. Statement of Cash Flows (SCF);

e. Statement of Comparison of Budget and Actual Amount (SCBAA); and

f. Notes, comprising a summary of significant accounting policies and other explanatory notes. (Par. 21, PPSAS 1)