Guidelines on the Appropriation,

Release, Planning and Budgeting

Process of SK Funds
DILG-DBM-NYC JMC No. 1, s. 2019

“Matino, Mahusay at Maasahan.”

Under Sec. 20 (Sangguniang Kabataan Funds) of
the SK Reform Act of 2015, (RA No. 10742):

a) Ten percent (10%) of the general fund of the

barangay shall be set aside for the Sangguniang
Kabataan.
b) The Sangguniang Kabataan shall have
financial independence in its operations,
disbursements and encashment of their fund,
income and expenditures.
“Matino, Mahusay at Maasahan.”
Under Sec. 20 (Sangguniang Kabataan Funds) of
the SK Reform Act of 2015, (RA No. 10742):
c) All Sangguniang Kabataan funds shall be allocated in
an annual budget, and if the funds allow, in a
supplemental budget in accordance with the adopted
Annual Barangay Investment Program.
d) The Sangguniang Bayan or Sangguniang Panlungsod
shall, within sixty (60) days upon receipt hereof, review
the annual budget and supplements budget of the
Sangguniang Kabataan on their compliance in the
immediately preceding provision and other existing laws,
rules and regulations.
“Matino, Mahusay at Maasahan.”
Approriation of the SK Fund by the Barangay

• The PB shall include the 10% of the GF

accruing to the SK in the barangay executive
budget to be submitted to the sangguniang
barangay for budget authorization.
• The barangay treasurer shall inform, in writing,
the SK chairperson and the SK treasurer on or
before the 15th day of September of the
estimated 10% of the GF for the ensuing year.
“Matino, Mahusay at Maasahan.”
Release of the SK Fund by the Barangay

• The SK shall open a current account in the

name of the SK in a bank. Official signatories
are the SK treasurer and SK chairperson. The
provisions of the Dept. of Finance Dept.
Circular No. 1-2017 dated May 11, 2017 shall
be strictly observed.

“Matino, Mahusay at Maasahan.”

Release of the SK Fund by the Barangay

• The SK fund shall be deposited by the

barangay in the current account of the SK not
later than 5 working days after crediting of the
monthly internal revenue allotment (IRA) share
of the barangay.
• Other income- the corresponding SK funds
shall be deposited not later than 5 working days
after end of the month.
“Matino, Mahusay at Maasahan.”
Release of the SK Fund by the Barangay

• The barangay may opt to transfer/ release the

SK funds earlier than herein prescribed on an
annual, semestral or quarterly basis, subject to
the written agreement between the barangay
and the SK.

“Matino, Mahusay at Maasahan.”

Release of the SK Fund by the Barangay

• In case there are no elected SK officials, the

barangay shall transfer the 10% SK fund to the
trust fund of the barangay.

Failure by the barangay to release any amount of

the SK fund shall subject the erring officials to
penalties under existing laws.

“Matino, Mahusay at Maasahan.”

Planning and Budgeting Process

• The SK shall formulate the Comprehensive

Barangay Youth Development Plan (CBYDP), a
3 year rolling plan aligned with the Philippine
Youth Development Plan (PYDP) & Local
Youth Development Plans (LYDPs).

“Matino, Mahusay at Maasahan.”

Planning and Budgeting Process

• The CBYDP shall serve as the basis for the

preparation of the Annual Barangay Youth
Investment Program (ABYDP). It shall contain
the specific programs, projects and activities
with corresponding costs, including the fund
flows to approximate the reasonable timing in
the release of funds.

“Matino, Mahusay at Maasahan.”

Planning and Budgeting Process

• The ABYDP shall be prepared and approved by

the SK through a resolution before the start of
the preparation of the SK annual budget.

“Matino, Mahusay at Maasahan.”

Budgeting Process

1. Budget Preparation
2. Budget Authorization
3. Budget Review
4. Budget Execution/ Implementation
5. Budget Accountability

“Matino, Mahusay at Maasahan.”

Budget Preparation

• The SK annual budget shall be prepared by the

SK chairperson and SK treasurer consisting the
estimates of income and expenditure program
in accordance with the approved ABYIP.

“Matino, Mahusay at Maasahan.”

Budget Preparation
• Youth development & empowerment PPAs should be
prioritized and aligned to the PYDP that will promote
the following:
A. Equitable access to quality education;
B. Environmental protection;
C. Climate change adaptation;
D. Disaster risk reduction & resiliency;
E. Youth employment & livelihood;
F. Health & anti-drug abuse;
G. Gender sensitivity;
H. Sports development; and
I. Capability Building (Leadership training).
“Matino, Mahusay at Maasahan.”
Budget Preparation

• The SK fund shall not be used for the payment of

personal services expenditures.

• The conduct of study tours/ lakbay-aral of the SK

officials chargeable against the SK fund shall be subject
to the policies and guidelines under DILG-DBM JMC
No. 02 dated Sept. 23, 2016. (Policy & Guidelines on Study
Tours or Lakbay-Aral activities of LGUs)

“Matino, Mahusay at Maasahan.”

Budget Preparation

• The budget cycle of the SK shall be synchronized with

that of the barangay. The SK chairperson shall submit
the proposed SK annual budget to the SK members not
later than 16th day of October of the current year for
budget authorization.

“Matino, Mahusay at Maasahan.”

Budget Authorization

• The SK shall pass a resolution approving the SK annual/

supplemental budget after deliberation. The annual
budget should be passed before the beginning of the
ensuing year signed by SK chairperson upon approval
by the majority of all its members.

“Matino, Mahusay at Maasahan.”

Budget Authorization

• As a general rule, all budgetary items shall be included

and considered in the preparation of the annual
budget. Changes in the annual budget may be done
through supplemental budget under the following
circumstances:

1. When supported by funds actually available as

certifies by the SDK treasurer’ &
2. If covered by new revenue sources.

“Matino, Mahusay at Maasahan.”

Budget Authorization

• The SK secretary shall post the resolution approving the

annual/ supplemental budget in 3 conspicuous places
not later than 5 days after the approval.

• The SK secretary shall also submit the SK annual/

supplemental budget to the sangguniang panlungsod or
sangguniang bayan through the budget officer within
10 days upon the approval.

“Matino, Mahusay at Maasahan.”

Budget Review

• The SB/SP, shall within 60 days upon receipt review

the annual/ supplemental budget of the SK .
The SB/ SP may render the following review actions:
1. The SK annual/ supplemental budget may be declared
operative in its entirety when it fully complies with the
priority PPAs identified under Sec. 20 (c) of RA 10742 &
other existing laws, rules & regulations.

“Matino, Mahusay at Maasahan.”

Budget Review

2. May be declared operative in its entirety, subject to

conditions, when certain items of appropriation require
prior clearance/ documentation/ approval from authorities.

“Matino, Mahusay at Maasahan.”

Budget Review

3. May be declared inoperative in its entirety when:

-the expenditure program exceeds the estimates of income
-all the PPAs are not based on the BYIP or inconsistent
with the priority PPAs
-the resolution approving the the SK annual/
supplemental budget is passed before the approval of the
ABYIP

“Matino, Mahusay at Maasahan.”

Budget Review
3. The SK annual/ supplemental budget may be declared
inoperative in part, when:
- There is/are item/s in the appropriation contrary to
budgetary limitations, such as, but not limited to, inclusion
of personal services expenditures
- There is/are item/s of appropriation that has/have no legal
basis
- There are PPAs not based on the approved ABYIP
- There are other PPAs included before providing for all the
priority for all the priority PPAs under Sec. 20 (c) of RA
No. 10742
- When the amount provided for a specific PPA is higher
than the amount provided in the ABYIP for the same PPA.
“Matino, Mahusay at Maasahan.”
Budget Review

• Failure on the part of the SP/ SB to complete the review

within the prescribed period shall render the said
annual/ supplemental budget deemed approved.

• The SB/SP shall return the to the SK chairperson,

through the budget officer the SK annual/supplemental
budget with the advice of action thereon, if any, for
proper adjustments.

“Matino, Mahusay at Maasahan.”

Budget Execution

• The SK treasurer certifies the availability of funds

• All payments out of the SK fund shall be made
through Disbursement Vouchers
• Disbursements shall be made by issuing checks drawn
against the current account in the name of the SK
with the SK chairperson and SK treasurer as the
official signatories.
• All claims against the SK funds shall be properly
supported with complete documentation.

“Matino, Mahusay at Maasahan.”

Budget Execution

• The SK chairperson & SK treasurer shall be properly

bonded, chargeable against the SK funds, subject to
the pertinent guidelines and policies issued by the
Bureau of the Treasury. (Sec. 101 of Presidentil
Decree No. 1445 7 Section 50, Chapter 9, Subtitle B,
Book V of Executive Order No. 292)

“Matino, Mahusay at Maasahan.”

Budget Execution

• Unexpended balances in the SK budget/s shall revert

to the general fund of the SK at the end of the fiscal
year and shall not be available for expenditure except
by subsequent approval of the SK.

• Unexpended balances for capital outlays shall

continue and remain valid until fully spent, reverted,
or the project is completed.

“Matino, Mahusay at Maasahan.”

Budget Execution

• Reversions of such balances shall not be allowed

unless obligations have been fully paid or settled.

• The balances for capital outlays shall be reviewed as

part of the annual budget preparation and the SK
may approve, upon recommendation of the SK
chairman, the reversion of funds no longer needed
in connection with the activities funded by said
balances.

“Matino, Mahusay at Maasahan.”

Budget Accountability

• The SK chairperson with the assistance of the SK

treasurer & SK secretary shall prepare the budget
accountability reports prescribed by COA.

“Matino, Mahusay at Maasahan.”

Budget Accountability

• All undisbursed SK funds as of December 31, 2018

under the custody of the barangay shall be transferred
to the current account of the SK. The utilization shall
be subject to subsequent planning & budgeting by the
SK, in accordance with the policies & procedures
under this JMC.

“Matino, Mahusay at Maasahan.”

 The responsibility & accountability in the
utilization & disbursement of SK funds shall rest
upon SK officials concerned. Said officials shall
ensure that SK funds are utilized strictly in
accordance to budgeting, accounting & auditing
rules & regulations and provisions of the
Government Procurement Reform Act (RA No.
9184) & other pertinent laws.

“Matino, Mahusay at Maasahan.”

THANK YOU!

“Matino, Mahusay at Maasahan.”