CERTIFICATION ON THE OBLIGATION REQUEST

About the service

In budgeting, the amount arising from an act of an official which binds the local government unit to the immediate or
eventual payment of a definite sum of money is an obligation. Disbursements of local funds shall be made in accordance
with the appropriation ordinance authorizing the annual or supplemental appropriations without the prior approval of the
Sanggunian concerned.
Thus an allotment system has been adopted or introduced as a system of budget control and a way of ensuring that
obligations and disbursements do not exceed appropriations as provided in the appropriation ordinance (annual and
supplemental) as approved and authorized by the Sanggunian Bayan concerned. When effectively executed the system
delineates the major budget execution responsibilities among the Local Chief Executive, the Department/Office/Unit
heads, the Local Budget Officer, the Local Treasurer, and the Accountant.
To facilitate the certification of the Local Budget Officer on the Obligation Request, the concerned department/
Office/Unit head shall prepare and certify the Obligation Request form as to the appropriation/allotment necessary, lawful
and under his/her direct supervision.
Requirements
1. For Salaries and Wages
1.
1. Duly signed Obligation Request on box A by the concerned
Department/Office/Unit head
1.
1. Approved Payroll
2. For Claims of reimbursement of travel
1. Duly signed Obligation request on Box A by the concerned Department Head/Office/Unit head
2. Disbursement/Petty cash voucher
3. Official receipts/boat tickets/etc.
4. Appendix A & B
5. Approved travel Order
6. Certificate of appearance
3. For Cash advance of Travel
1. Duly signed Obligation request on Box A by the concerned
Department Head/Office/Unit head
1.
1. Appendix A
2. Travel Order
3. Invitation letter/communication letter
2. For Purchase of Supplies and Materials/equipments/etc. (P50,000 and Below)
1. Duly signed Obligation request on Box A by the concerned
Department Head/Office/Unit head
1.
1. BAC Resolution recommending the Procuring entity to enter into
Alternative mode of procurement (shopping)
1.
1. Canvass and Award at least three bonafied bidders duly signed and approved by the concerned officials
2. duly approved purchase request
3. duly signed and approved purchase order
4. inspection and report
5. warranty certificate (for equipment)
6. Approved program of work and bill of materials/plans and specifications
7. Disbursement voucher
2. For purchase of supplies and materials/equipment/ etc. (Above P50,000.00)
1. Duly signed Obligation request on Box A by the concerned
Department Head/Office/Unit head
d) Disbursement voucher
1.
1. BAC Resolution
2. Abstract of Bids
3. duly approved purchase request
4. duly signed and approved purchase order
5. inspection report
6. delivery receipt
7. Warranty certificate (for equipment)
8. Approved program of work and bill of materials
2. For purchase of gasoline
1. Duly signed Obligation request on Box A by the concerned
Department Head/Office/Unit head
1.
1. approved purchase request
2. Approved purchase order
3. trip tickets
4. consumption report
2. For Repair and Maintenance of motor vehicle/equipments
1. Duly signed Obligation request on Box A by the concerned
Department Head/Office/Unit head
1.
1. Approved purchase request
2. Approved purchase order
3. Canvass and Award
BUDGETING SERVICES
1.
1. Certificate of inspection
2. Disbursement voucher
3. Pre-inspection report
4. Post inspection report
5. Report of Waste materials
How to avail of the service
1. Request
Submit OBR with all supporting documents and let the staff receive by signing the logbook
1. Verification
MBO staff verify as to existence of appropriation. Record the OBR in the logbook and assign OBR no. and post in the
control ledger columnar book and MS-excel file
1. Certification
Certify Box B of OBR if appropriation is available. Return OBR unsigned to concern Office, if no more available
appropriation. If no cash back up inform the concerned head of office, the OBR is laid on the table or return to concerned
office. Advise them to come back once cash is available
1. Release of OBR
Retain the 3
rd
copy of OBR for file and forward the documents to the Office of the Municipal Accountant
1. Recording
Record the OBR in the Budget System and record transaction no. on the OBR form as appearing in the budget system
program
1. Review and approval
Review and approved the OBR in the Budget System
The proper procedure is that the Obligation Request should be prepared based on approved Purchase Request,
then during the preparation of Purchase Order there will be an adjustments in the Obligation Request and in
Registries of Appropriations, the purpose is to earmark the amount of Purchase Request from Available
Appropriation Balance.



When will be the most appropriate time to prepare and issue the ObR? After PR, before any procurement?
during procurement? after the award?


After the PR,before any procurement.


Just the name of Office or Department, then add the name of the awarded supplier during adjustments in the
Obligation Request and in Registry of Appropriation after PO preparation , ex. Engineering Office - Bacoor
Hardware and Construction Supply.


Se. 114 of NGAS Manual Volume I may guide you.
(d) Certification on Allotment and Obligation Slip (ALOBS) - Every PR must be accompanied by an ALOBS
showing the certification of the local budget officer and the local accountant, that an appropriation therefore
exists; and that the estimated amount of such expenditure has been obligated. The Local Treasurer shall certify
as to cash availability in the purchase request.

(e) Approval of Requisitions - Approval of requisitions by the head of office or department concerned who has
administrative control of the appropriation against which the proposed expenditure is chargeable is deemed
sufficient, except in case of requisition for supplies to be carried in stock which shall be approved by the local
chief concerned.


2.0

POLICIES

The responsibilities of the Heads of the Requesting Unit, the Budget Unit and the Accounting Unit are hereby
set forth as follows:

2.1

The Head of the Requesting Unit shall prepare the Obligation Request (ObR) - Annex A1 or Budget Utilization
Request (BUR) - Annex A2 and the Disbursement Voucher (DV) - Annex B. He shall certify on the necessity
and legality of charges to appropriations/allotment under his direct supervision as well as the validity, propriety
and legality of supporting documents.

2.2

The Head of the Budget Unit shall certify the availability of allotment and obligations incurred in the ObR or
budget and utilization in the BUR

2.3

The Head of the Budget Unit shall maintain the Registries of Allotments and Obligations (RAO) prescribed
under the Manual on the New Government Accounting System for National Government and/or the Registry of
Budget and Utilization (RBU) - Annex C for income which the agency may use as authorized by law.

2.4

For contract or purchase order, the Head of the Accounting Unit shall certify the availability of funds based on
the ObR or BUR duly certified by the Budget Officer.

2.5

The Head of the Accounting Unit shall certify the availability of cash and completeness of supporting
documents in the DV.

2.6

The Head of the Accounting Unit shall also prepare the Daily Cash Position Report - Annex D to be submitted
to the Head of the Agency.