TO SUBJECT DATE L MEMORANDUM FROM THE MAYOR Memo No. 04 - 2021 3 ALL DEPARTMENT HEADS, : LEGISLATIVE EXPENDITURES 3 12 July 2021 BACKGROUND 1 The Commission on Audit’s Observations and Recommendations in the Annual Audit Report on the Municipality of Caluya, for the year ended December 31, 2020, the Municipal Vice Mayor, Sangguniang Bayan Members, Departments Heads, and all concerned, are earnestly enjoined to strictly implement the said recommendations effective immediately; Item Number 25 of the said Annual Audit Report, Pages 81 to 82, discussed in the detail the matters on Legislative Expenditures which were considered as not in accordance with the functions of the Legislative body as provided under Section 447 of Republic Act (RA) No. 7160 (The Local Govemment Code); Section 447 of R.A. No. 7160 provides that the Sangguniang Bayan, as the legislative body of the Municipality, shall enact ordinances, approve resolutions and appropriate funds for the general welfare of the ‘Municipality and its inhabitant and shail (1) Approve ordinances and pass resolutions necessary for an efficient and effective municipal government, (2) Generate and maximize the use of resources and revenues for the development plans, program - objectives, and priorities of the ‘Municipality, (3) grant franchises, enact ordinances authorizing the issuance of permits or licenses, or enact ordinances levying taxes, fees and charges (4) Regulate activities relative to the use of land, buildings, and structures within the Municipality (5) Approve ordinances which shallensure the efficient and effective delivery of the hhasic services and facilities, and (6) Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance; Section 1, Article VI of the 1987 Constitution provides that the legislative power shall be vested in the Congress of the Philippines, which shall consist of a Senate and a House of Representatives, except to the extent reserved to the people by the provision on initiative and seferendum; Section 3, Article X of the 1987 Constitution provides that Congress shall enact a Local Government Code that shall provide a more responsive and accountable local government structure; Section 48 of the Local Government Code of 1991 provides that local legislative power shall be exercised by the Sangguniang Bayan for the Legislative power is the authority under the Constitution to make laws and to alter or repeal them; Implementation of approved programs, projects, and activities of the ‘Municipality is the Municipal mayor's function, being the Local Chief Executive (LCE). ‘The authority to execute any contract on behalf of the local government ‘unit, to include the execution of contracts for the procurement of services (hiring job order personnel), remains exclusive to the local chief executive. NON-EXCLUSIVE EXAMPLES OF INELIGIBLE AND ELIGIBLE EXPENDITURES - Considering all the legal bases stated here in the memorandum, the Commission on Audit’s recommendation in their Annual Audit Report for the year ended December 31, 2020, the office of the Municipal Mayor, therefor, implements the following measures: 1. ‘The grant of assistance to individuals, other LGUs and other organizations, medical assistance for indigents, supplies, materials, equipment and cash assistance for barangays and schools, and cash assistance and donations to NGOs/POs and the Vice- Mayor's League of the Philippines — Antique Chapter which were implemented under and obligated or paid out of the Office of the Vice-Mayor's budget will no longer be allowed as itis a direct violation of the law.2. Financial Assistances, although charged out of the Office of the Mayor's budget, which were implemented with the intervention of the SB Members, will no longer be allowed. 3. Reimbursements for the payments made by the SB Members as assistances for distribution to recipient individuals, LGUs, and other organizations will not be permitted. 4, Scholarship grants and assistance will no longer be implemented with the intervention of the Vice-Mayor and the SB Members. 5. Supporting documents showing any sort of intervention of Vice-Mayor and SB Members in the grant of assistance will no longer be accepted when processing the said assistance. 6. Maintenance and Operating expenditures under the Municipality's legislative body should be limited to those related to law-making and activities in aid of legistation. Fy The hiring of Job Orders and Contract of Service of the Office under the office of the Vice Mayor and the SB, which does not comply with the authority that binds the Local Government Unit under the Local Government Code of 1991, will no longer be allowed. For your information, guidance, and implementation RIG! IM Gnicipal Major Copy furnished: Audit Group LGS-B — Antique Province JONATHAN V. FORTIN State Auditor IV OIC — Supervising Auditor Regional Office No. VI Audit Group LGSB — Antique ProvinceJUAN JOVIAN E, INGENIERO, CESO IV Director Regional Regional 6 - Western Visayas Pepita Aquino Street Fort San Pedro, loilo City 5000 MARLO L, IRINGAN, CESO IL Undersecretary for Local Government Department of the Interior and Local Government