Anent to the second issue, this Office, as also concurred by the LAO, LSS, this Commission, has

previously gave the opinion that Section 422 of the LGC is clear and unequivocal in providing that the
appropriation of operating funds for the Katarungang Pambarangay shall be provided for in the annual
budget of the city or municipality concerned in such amount as may be necessary for the effective
implementation of the same.

In connection thereto, we also gave the opinion that while the barangays are not precluded from using
the filing or summon fees collected, it is upon the auditor to determine whether these were used for the
implementation of the Katarungang Pambarangay and to inform the barangay of any observations
related thereto pursuant to the audit function of this Commission.

Attached herein is a copy of the Memorandum dated July 2, 2019 of this Office and the 1st Indorsement
dated October 24, 2019, 2019 of the LAO, LSS, this Commission, for information and ready reference.