DEPARTMENT OF BUDGET AND MANAGEMENT

DRAFT DBM-DILG-NYC JMC RE:

GUIDELINES ON THE ALLOCATION,
RELEASE, PLANNING AND BUDGETING
PROCESS FOR THE
SANGGUNIANG KABATAAN FUNDS

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 OUTLINE OF THE
PRESENTATION
• Legal Basis

• Purpose

• Allocation of the SK Fund

• Release of the SK Fund

• Planning and Budgeting Process for the

SK Fund

• Transitory Provision

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 LEGAL BASIS
Section 20, Republic Act No. 10742
• SK Reform Act of 2015
• Ten percent (10%) of the general fund of the barangay
shall be set aside for the SK.
• The sangguniang barangay shall appropriate the SK
funds in lump-sum, which shall be disbursed solely
for youth development and empowerment purposes.
• SK shall have financial independence in its
operations, disbursements, and encashment of their
fund, income and expenditures.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PURPOSE
1. To prescribe the guidelines on the allocation and release
of the SK fund, provide for the planning and budgeting
process for the SK; and

2. To emphasize the concomitant posting, reporting and

monitoring requirements to enhance transparency and
accountability.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 ALLOCATION OF THE SK FUND
• The punong barangay shall include the 10% of the general
fund accruing to the SK. The sangguniang barangay, in turn,
shall appropriate the said SK funds in lump-sum in the
pertinent appropriation ordinance.

• The barangay treasurer shall inform the SK chairperson and

the SK treasurer on or before the 15th day of September of the
estimated ten percent (10%) of the general fund:
1. To be sourced from the Internal Revenue Allotment (IRA) shares
of the barangay and other appropriate sources of revenues
2. Supported by a certification of income of the barangay from the
city/municipal treasurer.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 RELEASE OF THE SK FUND
• The SK funds shall be automatically released by the
barangay to the SK, and shall not be subject to any lien or
holdback that may be imposed by the barangay for whatever
purpose.

• The SK shall open a current account in the name of the SK in

a government-owned bank situated or nearest to its area of
jurisdiction, with the SK chairperson and the SK treasurer as
the official signatories.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 RELEASE OF THE SK FUND
• The SK funds shall be deposited in the current account of the
SK not later than five (5) working days after the crediting of
the monthly IRA share of the barangay consistent with the
rules and regulations issued by the Commission on Audit
(COA).
For all other income accruing to the general fund of the
barangay, the corresponding SK funds shall be deposited not
later than five (5) working days after the end of the preceding
month.
The barangay may opt to transfer/release the SK funds on an
annual, semestral or quarterly basis, subject to the mutual
agreement between the barangay and the SK.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Planning Process
• The SK, in consultation with the Katipunan ng Kabataan,
shall formulate a 3-year rolling plan, which shall be
known as Comprehensive Barangay Youth Development
Plan (CBYDP).
• The CBYDP shall serve as the basis for the preparation of
the Annual Barangay Youth Investment Program
(ABYIP).
• The ABYIP shall be prepared and approved by the SK
through a resolution before the start of the preparation of
the SK annual budget.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Preparation
• The SK annual budget shall be prepared in accordance
with the approved ABYIP.
• The SK chairperson, with the assistance of the SK
treasurer, shall prepare the SK annual budget consisting
the following:
1. estimates of income; and
2. expenditure program

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Preparation
• In the preparation of the SK annual budget, priority should be
given to youth development and empowerment programs,
projects and activities that will promote the following:
a. Equitable access to quality education;
b. Environmental protection;
c. Climate change adaptation;
d. Disaster risk reduction and resiliency;
e. Youth employment and livelihood;
f. Health and anti-drug abuse;
g. Gender sensitivity;

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Preparation
• In the preparation of the SK annual budget, priority should be
given to youth development and empowerment programs,
projects and activities that will promote the following:
g. Sports development;
h. Capacity Building;
i. Linggo ng Kabataan Celebration; and
j. Payment of annual dues for the Pederasyon ng mga
Sangguniang Kabataan as may be provided in their
Internal Rules of Procedures, subject to the pertinent
accounting, auditing, and other applicable rules and
regulations.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Preparation
• All regular operating expenses pertaining to the activities
of the SK shall be charged against the SK funds.
• In accordance with Article 423 of the Implementing Rules
and Regulations of the Local Government Code of 1991
(RA No. 7160), the SK fund shall not be used for the
payment of Personal Services expenditures.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Preparation
• Moreover, the conduct of study tours or “lakbay aral” of
the SK officials, chargeable against the SK fund, shall be
subject to the policies and guidelines prescribed under
DILG-DBM JMC No. 02 dated September 23, 2016.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Preparation
• The SK Chairperson, with the assistance of the SK
Treasurer, shall formulate the SK Project Procurement
Management Plan (PPMP) based on the approved ABYIP
for their programs and activities to be incorporated in the
Indicative Annual Procurement Plan of the SK.
• Whenever necessary, the PPMP may be accordingly
adjusted by the SK Chairperson, subject to the
concurrence of the majority of the SK members.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Preparation
• The budget cycle of the SK shall be synchronized with
that of the barangay.

• AS such, the SK chairperson shall submit the proposed

SK annual budget to the SK members not later than the
16th day of October of the current year for budget
authorization purposes.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Authorization
• The SK shall deliberate on the proposed SK
annual/supplemental budget.
• On or before the end of the current fiscal year, the SK
shall authorize the SK annual/supplemental budget.
• For the annual budget, the authorization by the SK shall
be before the beginning of the ensuing year.
• The authorization by the SK shall be signed by the SK
chairperson upon approval by the majority of all its
members.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Authorization
• In case the SK fails to authorize the SK budget at the
beginning of the ensuing fiscal year, the authorization for
the appropriations of the preceding year shall be deemed
reenacted and shall remain in force and effect until the
authorization for the annual budget is passed by the SK.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Authorization
• However, only the annual appropriations for statutory and
contractual obligations, and essential operating expenses
authorized in the annual and supplemental budget of the
SK for the preceding year shall be deemed reenacted and
disbursement of funds shall be in accordance therewith.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Authorization
• As a general rule, all budgetary items shall be included
and considered in the preparation of the annual budget.
• However, if funds allow, changes in the annual budget
may be done through supplemental budget(s) under the
following circumstances:
1. When supported by funds actually available as
certified by the SK treasurer; and
2. If covered by new revenue source(s)

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Authorization
• The SK secretary shall submit the duly authorized SK
annual/supplemental budget to the sangguniang
panlungsod or sangguniang bayan, through the
city/municipal budget officer, within ten (10) days upon
the approval thereof.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Review
• The sangguniang panlungsod or sangguniang bayan shall,
within sixty (60) days upon receipt hereof, review the
annual budget of the SK on their compliance with existing
laws, rules and regulations.
• Non-compliance shall render the SK annual budget
inoperative either in whole or in part.
• Failure on the part of the sanggunian to complete the
review within the prescribed period shall render the said
annual/supplemental budget deemed approved.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Review
• The sangguniang panlungsod or sangguniang bayan shall
return to the SK chairperson, through the city/municipal
budget officer, the authorization for the SK
annual/supplemental budget with the advice of action
thereon, if any, for proper adjustments.
• Upon receipt of such advice, the SK treasurer who has
custody of the funds shall not make further disbursements
from any item of appropriation declared inoperative,
disallowed, or reduced.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Execution
• The SK Treasurer, whenever necessary, shall certify the
availability of funds.
• All payments out of the SK fund shall be made thru
Disbursement Voucher.
• Disbursement 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.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Execution
• All claims against the SK fund shall be properly supported
with complete documentation.
• The SK chairperson and 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 in accordance with Section 101 of
Presidential Decree No. 1445 and Section 50, Chapter 9,
Subtitle B, Book V of Executive Order No. 292.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Execution
• Unexpended balances of appropriations in the SK
budget(s) shall revert to the unappropriated surplus of the
general fund of the SK at the end of the fiscal year, and
shall not thereafter be available for expenditure except by
subsequent enactment.
• However, appropriations for capital outlays shall continue
and remain valid until fully spent, reverted or the project
is completed. Reversions of continuing appropriations
shall not be allowed unless obligations therefor have been
fully paid or otherwise settled.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS
FOR THE SK FUND
Budget Accountability
• The SK chairperson, with the assistance of the SK treasurer
and SK secretary, shall prepare a Statement of Budget,
Commitments, Payments and Balances.
• The said Statement shall be:
i. submitted to the COA auditor concerned, copy furnished the
sangguniang barangay, local youth development office, and
local youth development council;
ii. presented during the Katipunan ng Kabataan Assembly; and
iii. posted by the SK chairperson and SK treasurer in at least three
conspicuous places in the barangay.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 TRANSITORY PROVISION
• For the remaining months of FY 2018, the newly-elected SK
officials shall continue to implement the PPAs contained in the
ABYIP that was formulated by the Task Force on Youth
Development in FY 2017 in accordance with Commission on
Election Resolution No. 10213, which was issued pursuant to
RA No. 10952.

• For FY 2018, the SK funds shall be disbursed in accordance

with the existing procedures for the disbursement of barangay
funds which is through the authority of the punong barangay
and barangay treasurer. Any balance of the SK funds at the end
of FY 2018 shall be transferred to the current account of the
SK.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 RESPONSIBILITY AND
ACCOUNTABILITY
• The responsibility and accountability in the utilization and
disbursement of SK funds shall rest upon the SK officials
concerned.

• It is also the responsibility of the said SK officials to ensure

that the SK funds are utilized strictly in accordance with
applicable budgeting, accounting and auditing rules and
regulations, provisions of RA No. 9184 and other pertinent
laws.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 NEXT STEPS
• Consolidation of the additional inputs of all agencies and other
stakeholder concerned

• Integration of the inputs to the final draft JMC

• Presentation to the Senior Officials concerned of the signatory

agencies and other stakeholders

• Finalization and issuance of the JMC

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 Thank you!

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 DEPARTMENT OF BUDGET AND MANAGEMENT

DRAFT DBM-DILG-NYC JMC RE:

GUIDELINES ON THE ALLOCATION,
RELEASE, PLANNING AND BUDGETING
PROCESS FOR THE
SANGGUNIANG KABATAAN FUNDS
JOHN ARIES S. MACASPAC
Local Government and Regional Coordination Bureau
Department of Budget and Management

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT