Frequently Asked Questions - LBC No. 119

FREQUENTLY
ASKED QUESTIONS
(Local Budget Circular No. 119 dated July 15, 2019)
RAINIER H. DIAZ
DEPARTMENT OF BUDGET AND MANAGEMENT
FREQUENTLY ASKED QUESTIONS
Main body of the LBC: Cases 1 to 19
Annexes A and B: Cases 20 to 25
Annexes B1, B4 and B5: Cases 26 to 31
Annexes B2 and B3: Cases 32 to 33
Annex C: Cases 34 to 36
2
Case 1 (Section 3.1)
An LGU (e.g. barangay) sent letter request
addressed to the next level LGU (e.g.
city/municipality) for financial support with
supporting documents stated in LBC 119. The
city/municipality endorsed the request of the
barangay through a letter to DBM for possible
funding.
3
Q:Does the letter submitted by the
city/municipality addressed to DBM can be
considered a valid letter request?
A: No. Implementing LGUs should send requests

and supporting documents to DBM.
4
An LGU requested for a project but has a portion
in the title not included in the projects
mentioned in Annex A, e.g. river control, slope
protection.
Q: Is the project compliant?
A: No unless there is an attestation from DPWH
that such works can be considered for the project
5
Letter request was addressed to the President of
the Philippines or the DBM Undersecretary,
Assistant Secretary, Regional Director or LGRCB.
Q: Is the request letter valid?
A: Yes
6
Case 4 (Sections 3.2 and 3.7)
Letter request and supporting documents were
signed by different individuals, e.g. LCE, acting
LCE, OIC LCE.
Q: What is the validation process?
7
Case 4 (Sections 3.2 and 3.7)
A: The DBM ROs shall validate said individuals
identity through requesting proof of
designation of acting or OIC LCE. Meanwhile,
the LGRCB can request DBM RO for validation
if the letter is coursed through directly to the
DBM CO.
8
Q: Are photocopies or certified true copies of the
documents be allowed?
A: No
9
Q: What other documents should the DBM RO
submit to DBM CO once the request is
evaluated compliant?
A: DBM RO shall endorse the request with a

memo signed by the Director or OIC-Director
and checklist accomplished and signed by the
technical staff and CBMS/OIC CBMS
10
Case 7 (Section 3.6.1)
a. The list of priority programs/projects is not
signed by the LCE;
b. There is no separate list of priority
programs/projects and no mention of the list
of priority programs/projects in the request
letter;
11
c. Separate requests from same LGU but no list
of priorities of programs/projects and no
mention of the list in the request letter; or
d. List indicated in letter and separate list do not
match priorities
12
Q: Can these be considered valid?
A: No
13
No list of priorities programs/projects but
reflected in the request letter in an order,
whether in paragraph or table format.
Q: Can this be considered valid?
A: Yes
14
LGU submitted multiple projects and at least one
is non-compliant
Q: Are all documents returned to the LGU?
A: Only return the non-compliant portion while

compliant portion shall be processed.
15
LGU received FY 2018 LGSF-FA in the 1st quarter
of FY 2019
Q: Can the LGU be exempted from the minimum

percentage of physical completion or
delivery?
A: No
16
LGSF-FA was released to an LGU but cannot be
implemented
Q: What is the recourse of the LGU to be qualified
in the percentage requirement?
A: Revert the previously released funds to the
BTr. The proof from BTr that said funds were
reverted must be submitted.
17
The request was endorsed by Congress,
NGO/CSO
Q: Should the DBM RO and CO include in its

monitoring tools the endorser information?
A: Yes
18
Q: What will the evaluator do when the signatures
from the LCE differ?
A: DBM RO shall validate with the LGU on why the
signature differs given that the LCE should
sign the documents.
19
Q: Can all compliant requests be endorsed by the
DBM RO to DBM CO?
A: Yes
20
Q: Are LGUs assured fund release once request is
compliant of all the requirements?
A: No. Compliance is not an assurance of fund
release. DBM RO can suggest for LGUs to limit
their request (i.e. P20 mil – provinces, P15
mil – cities, P10 mil – municipalities, P1 mil
– barangays)
21
LGUs with no Authorized Government Servicing
Bank (AGSB)
Q: Can DBM CO provide list of AGSBs (based on

current BTr listing) to DBM RO?
A: Yes
22
Case 17 (Sections 3.14, 4.1 and 7.0)
Q: Can LGUs be allowed to their the projects,
including scope of work and location, once
funds are released for the purpose?
A: No
23
Q: Can LGUs be allowed to use portion of the
released fund for the project to pay for right-
of-way (ROW)?
A: No. ROWs should already been settled since it
was mentioned under the Omnibus Sworn
Statement that there are no issues related to
ROW.
24
Q: Should LGUs submit a written notice to DBM
upon posting of the reports on the LGU's
website?
A: Yes, stated under SP No. 6 of the LGSF under
FY 2019 GAA.
25
Case 20 (Annex A)
Q: Are hanging bridges or overpass projects
allowed?
A: As long as the conditions mentioned in the
definition are satisfied. Advise LGU to comply
with the requirement under the guidelines
such as the title.
26
Case 21 (Annex A)
a. Slope protection or revetment
b. Theme parks
Q: Are these project types allowed?
A: No unless there is an attestation from DPWH
that such works can be considered for the
project
27
Case 22 (Annex B)
Q: Are purchase of 2nd hand motor vehicles
allowed?
A: Discourage buying 2nd hand motor vehicles
28
Case 23 (Annex B)
Q: Can the request for motor vehicles be
compliant when the details required were not
reflected in the project profile but was
mentioned in the letter request or
certification under oath?
A: Yes
29
Case 24 (Annex B)
Q: Is the project profile of motor vehicles
compliant if only the LGU name was
mentioned?
A: Compliant for barangay level but non-
compliant for provinces, cities and
municipalities
30
Case 25 (Annex B)
Q: Is the use of construction as scope of work for
street lighting project valid?
A: No
31
Case 26 (Annexes B1, B4, B5)
Certification under oath
a. Mention of only “LDIP” or “AIP”;
b. Mention of Local Investment Program;
32
A: No
33
Certification under oath
a. Did not mention “Sanggunian”;
b. Mention of “Ordinance” instead of
“Resolution”;
c. Usage of LDIP and AIP acronym;
34
A: Yes
35
a. Multiple projects is not listed; or
b. With separate priority list but not reflected in
the Omnibus Sworn Statement.
36
A: No
37
Q: Can Omnibus Sworn Statement (OSS) be
considered valid if the request is only for a
single project and not reflected in the OSS?
A: Yes
38
Q: Is the Omnibus Sworn Statement valid if dates
are conflicting?
A: Acknowledgment date should be same date or
earlier in the date stated in the Jurat portion
and witness portion.
Jurat and witness portion dates should be the
same.
39
Q: If the Omnibus Sworn Statement has two or
more pages, is the LCE required to initial every
page?
A: Yes
40
Case 32 (Annexes B2 and B3)
Cost per vehicle indicates instead the total price
of all units;
A: No
41
Case 33 (Annexes B2 and B3)
Q: Is the project profile compliant if LGU did not
indicate anything under accessories,
equipment, and other vehicle specifications?
A: Yes
42
Case 34 (Annex C)
Q: Does the report refer to cumulative
accomplishment and financial status and
submit instead an “as of” status?
A: Yes
43
Case 35 (Annex C)
Q: Can other officials sign the report, such as the
local accountant and/or engineer, together
with the LCE and LFC?
A: Yes
44
Case 36 (Annex C)
Q: Are lower level personnel from the same
department be allowed to sign on behalf of
the LFC?
A: Yes. Can be accepted if there is an attached
document authorizing said personnel to sign
on behalf of the respective LFC member.
45
Thank you!
FREQUENTLY
ASKED QUESTIONS
(Local Budget Circular No. 119 dated July 15, 2019)
RAINIER H. DIAZ
DEPARTMENT OF BUDGET AND MANAGEMENT

Frequently Asked Questions - LBC No. 119

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FREQUENTLY

A: No. Implementing LGUs should send requests

Q: Is the request letter valid?

Q: What is the validation process?

A: DBM RO shall endorse the request with a

Q: Can this be considered valid?

Q: Are all documents returned to the LGU?

A: Only return the non-compliant portion while

Q: Can the LGU be exempted from the minimum

Q: Should the DBM RO and CO include in its

Q: Can DBM CO provide list of AGSBs (based on

Q: Can these be considered valid?

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