MEMORANDUM CIRCULAR

NO. 2011- _______

TO

ALL CITY AND MUNICIPAL MAYORS, PUNONG BARANGAYS,

SANGGUNIAN MEMBERS, SANGGUNIANG KABATAAN, MUNICIPAL,
CITY, BARANGAY AND SK TREASURERS, DILG REGIONAL DIRECTORS
AND FIELD OFFICERS, THE ARMM REGIONAL SECRETARY AND OTHERS
CONCERNED

SUBJECT

GUIDE IN THE ALLOCATION AND UTILIZATION OF THE TEN PERCENT

(10%) SANGGUNIANG KABATAAN (SK) FUNDS PER SECTION 329 OF
THE LOCAL GOVERNMENT CODE OF 1991

In view of the numerous requests and queries received by the Department concerning
the allocation and/or utilization of the Ten percent (10%) general fund of the barangay
reserved for the Sangguniang Kabataan (SK), the Department, in the exercise of its
general supervision over local government units (LGUs), as delegated unto the DILG
Secretary per Administrative Order No. 267 February 18, 1992 of the Office of the
President, and applying analogously the pertinent provisions of the Commission on
Audit (COA) Circular No. 93-396 re Barangay Accounting Manual issued on April 15
1993, issues this Guide not only to ensure that Section 329 of the Local Government
Code (LGC) of 1991 is properly implemented and its legislative intent upheld, but also to
provide a uniform process in the allocation, utilization and disbursement of the SK funds.
I.

Sources of SK Funds
1. Ten per cent (10%) of the general fund of the barangay set aside for the SK1
2. Proceeds from fund raising activities2

II.

Ten Percent (10%) SK Funds and other sources

The 10% of General Fund of the Barangay is earmarked for the SK. It shall be
administered by the SK and shall be spent for the purposes provided in Rule XXVII
of the IRR of the LGC, which is to initiate programs designed to enhance the
social political, economic, cultural, intellectual, moral, spiritual and physical
development of the members. [General Fund of the barangay refers to all
monies and resources of the Barangay which are available for the payment of
expenditures, obligations or purpose not specifically declared by law as
accruing and chargeable to or payable from other funds].
The 10% SK fund shall not, in any way, be used for personal services. 3
Proceeds from fund raising activities shall be tax-exempt and shall accrue to the
general fund of the SK, provided, that in the appropriation thereof, the specific
purpose for which such activity has been held shall first be satisfied.4

Section 329, 1991 Local Government Code (LGC)

Section 426 (c) LGC
3
Article 424 (a) ph. 2, IRR of LGC
4
Section 426 (c) LGC
2

III.

Allocation of SK Funds
1. The SK funds may be allocated to programs, projects and activities designed
to enhance the social, political, economic, cultural, intellectual moral spiritual
and physical development of the members5 such as, but not limited to, the
following:
a.
b.
c.
d.
e.
f.
g.
h.

IV.

Barangay Council for the Protection of Children;

Green brigade;
Livelihood;
Capacity building;
Legislative work and involvement;
Education Services and Adolescent Reproductive Health Program;
Sports Development Activities; and
Other Development Programs vital for the youth and children

Formulation and Submission of SK Budget Plan

1. The SK, in consultation with the Katipunan ng mga Kabataan (KK) and the
youth
organizations
in
the
barangay,
shall
prepare
an
SK
Budget/development plan for one fiscal year containing its programs,
activities and projects, incorporating therein the corresponding fund
requirements for the said undertaking. The SK development plan shall serve
as the mother document and basis of the SK budget.
2. The SK development plan shall be approved by a majority vote of the SK
members present during the session called for the purpose through an SK
resolution.
3. The SK submits the plan and budget through a resolution to the Punong
Barangay or Appropriations Committee of the Sangguniang Barangay.
4. The Punong Barangay or Appropriations Committee of the Sangguniang
Barangay reviews SK Development Plan for inclusion in the over-all Barangay
Development Plan. [In reviewing the SK Plan, the punong barangay merely
checks if it exceeds or does not follow the prescribed allocation for activities
and projects or if it needs to be attuned to make it supplementary and
complementary to the barangay development plan]
5. The Punong Barangay, in the exercise of his supervisory function over the SK,
may ask clarification or suggest/advise adjustments to improve the SK
Development Plan, but the SK holds the final decision whether or not to revise
the same.
6. The Barangay Appropriations Committee includes the SK Development Plan
and Budget in the Barangay Development Plan.
7. The Sangguniang Barangay enacts appropriate Budget Ordinance for the
purpose, and submits the same to the Sangguniang Panlungsod/Bayan for
the latters review.
8. In case of failure of the Sangguniang Panlungsod/Bayan to review the
Barangay Budget within 60 days, the budget shall be considered in full effect.

Section 426(b) , LGC

V.

Access to Funds
1. After the Barangay Budget has been approved and allocated, the SK can
begin accessing funds for its planned projects and activities.
a. Based on the approved SK Development Plan, the SK shall prepare
individual activity design for each of the projects/activities included in the
plan, signed by all the SK members, detailing the process involved in the
planned project/activity.
b. The activity designs will be attached to the resolution that the SK will pass.
The said SK resolution shall state the funds to be used in the planned
projects/activities.
c. The Punong Barangay, the Barangay Appropriations Committee and the
Barangay Treasurer shall be provided copy of the activity designs and the
SK resolution by the SK.
2. After the SK have complied with the above, there is no reason for anyone to
delay, hinder or withhold the release of the SK funds for the implementation of
its programs, projects or activities.
The 10 % SK Fund is a statutory obligation considered as a Trust Fund. Trust
Fund is funds in the barangay treasury that shall not be paid out or used
except in fulfillment of the purpose for which that trust was created or the
funds received. Any unexpended balances therefore shall be added to the
10% share of the SK for the next year.6
3. Obligate and Disburse Funds.
On behalf of the SK, the Punong Barangay prepares the Obligation Request
in the form as required by the COA and corresponding Disbursement
Voucher for valid obligations found in the General Appropriation Ordinance
or Supplemental Budget. 7
a. Signatories to the Obligation Request (ObR) 8
-

Chairman of the Committee on Appropriations of the Sangguniang

Barangay certifies as to the existence of the appropriation;
The Barangay Treasurer certifies as to the availability of funds; and
The City/Municipal Accountant certifies as to the obligation of
allotment

b. Signatories to the Disbursement Voucher (DV) 9

The Punong Barangay (PB); Barangay Treasurer; and the City/Municipal
Accountant
6

7
8
9

The PB, on behalf of the SK, shall prepare the Disbursement Voucher
(DV) to which the activity design shall be attached;
The SK Chairman shall affix his/her initial under the punong barangays
name approving claims chargeable against the SK fund;
All budget claims shall be approved by the Punong Barangay

DBMs Budget Operations Manual for Barangays, p. 71, July 2006

DBMs Budget Operations Manual for Barangays, p. 64, July 2006

Sulong Kabataan! The SK Guide to Child and Youth Participation, p.85

Sulong Kabataan! The SK Guide to Child and Youth Participation, p.85

VI.

Accountability
1. The Punong Barangay (PB)
a. The responsibility for the execution of the annual and supplemental
budgets and the accountability therefor shall be vested primarily in the
punong barangay concerned 10, as such, he/she shall ensure the
following:
-

that the revenues as estimated are realized; and

that the approved development projects and basic services are
implemented and delivered

b. The PB is tasked to approve vouchers relating to the disbursement of

barangay funds.11 Since the 10% SK fund is part of the barangay fund,
he/she is accountable and answerable for the proper use of the said
funds.
2. The Sangguniang Kabataan, on the other hand, needs to account
responsibility for the funds (10% SK fund) released to them and proceeds from
fund raising activities. Therefore the SK Chairman, through the SK Treasurer,
shall:
a. Disburse fund in accordance with the approved budget of the SK;
b. Submit annual and end-of-term reports to the sangguniang barangay on
their projects and activities for the survival and development of the youth
of the barangay; and
c. Submit to the Sangguniang Kabataan and to the Sangguniang Barangay
certified detailed statements of actual income and expenditures at the
end of every month.12
3. Failure of the SK to account the funds spent may be a ground for
administrative, civil or criminal proceedings against the erring SK Official(s).
For the information and guidance of all concerned.

JESSE M. ROBREDO
Secretary

10

Section 332 (paragraph 2) , LGC

Section 389 (b)(8),LGC
12
Section 433, LGC
11