DBM-DILG-NYC JMC 2019-01

GUIDELINES ON APPROPRIATION,
RELEASE, PLANNING AND BUDGETING
PROCESS FOR SK FUNDS AND
DILG LEGAL OPINIONS ON SK AFFAIRS
 LEGAL BASIS
Section 20 (a) of the SK Reform Act of 2015
10% of general fund of the barangay shall be set
aside for SK which should be used SOLELY for
youth development and empowerment purposes

SK shall have financial independence

 PURPOSE OF JMC
 To prescribe guidelines on appropriation and
release of SK fund;
 To provide guidance on planning and budgeting;

 To emphasize transparency and accountability;

 GENERAL GUIDELINES
APPROPRIATION
The Punong Barangay shall:
- Include the 10% SK Fund in the barangay
executive budget to be submitted to the
sangguniang barangay for budget authorization
purposes.

 The Sangguniang Barangay shall:

- Appropriate the said SK funds in lump sum in
the pertinent appropriation ordinance.
 GENERAL GUIDELINES
APPROPRIATION
For budget preparation purposes, 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
ten percent (10%) of the general fund of the
barangay for the ensuing fiscal year, supported by
a certification of income of the barangay from the
city/municipal treasurer.
 GENERAL GUIDELINES
RELEASE OF FUND BY BARANGAY
SK fund shall automatically be released;
SK shall open a current and separate account in
“preferably” government owned bank nearest
their area;
For efficiency and economy, it is STRONGLY
ENCOURAGED for SK to open and maintain
account in same bank and branch of its barangay.
DOF Circular 1-2017 shall strictly be observed;
The barangay shall deposit the SK funds to its
account not later than 5 working days after
crediting of monthly IRA.
 GENERAL GUIDELINES
RELEASE OF FUND BY BARANGAY
For all other income accruing to the general fund
of the barangay, the corresponding SK funds shall
be deposited not later than 5 working days
after the end of the month.
SK and barangay may agree in writing to
transfer/release funds earlier than herein
prescribed on annual, semestral or quarterly
basis;
FAILURE TO RELEASE SK FUNDS SHALL
SUBJECT ERRING OFFICIALS TO PENALTIES
UNDER EXISTING LAWS
 GENERAL GUIDELINES
IN CASES WHERE THERE IS NO ELECTED
SK OFFICIAL:
 The barangay shall transfer the corresponding
ten percent (10%) SK Fund to the trust fund of
the barangay, and the same shall be released by
the barangay upon the election of the SK officials
concerned.
 PLANNING AND BUDGETING
PLANNING PROCESS
 SK, in consultation with KK, shall formulate the 3
year rolling CBYDP which should be aligned to
Provincial/City/Municipal LYDP;
CBYDP shall serve as basis for ABYIP;
ABYIP shall contain specific PPAs with
corresponding costs and necessary fund flows to
approximate the reasonable timing in release of
funds;
ABYIP shall be prepared and approved through
resolution before the start if SK annual budget.
SAMPLE ABYIP (from SKMT presentation)
PROGRAM/ BRIEF PROGRAM / PROJECT BUDGET (IN PHP) SCHEDULE
PROJECT/ DESCRIPTION (MONTH)
ACTIVITY

Gender This training is designed to open up Php. 12,500.00 March 2018

Sensitivity communications between the genders to bring
Training mutual understanding and respect of each (Am Snacks- Php 75x 50
others’ roles. The training starts with pax= Php. 3750.00)
employing local experts on gender issues who
have a clear understanding of the problem (Lunch- Php 100x 50 pax=
within the current social and cultural context to Php. 5,000.00)
help create and lead training sessions.
Pm Snacks- Php 75.00x 50
pax= Php. 3750.00)
SAMPLE CBYDP (from SKMT presentation)
SAMPLE LYDP (from SKMT presentation)
 PLANNING AND BUDGETING
BUDGET PREPARATION

 The SK annual budget, which is the financial plan

embodying the estimates of the income and
expenditures of the SK for one (1) fiscal year, shall
be prepared in accordance with the approved
ABYIP.
 PLANNING AND BUDGETING
BUDGET PREPARATION
 SK annual budget should give priority to 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 antidrug abuse;
g. Gender sensitivity;
h. Sports development; and
i. Capability Building, which emphasizes leadership training
 PLANNING AND BUDGETING
BUDGET PREPARATION

 All regular operating expenses pertaining to

the activities of the SK, including the SK
counterpart on expenses related to the
celebration of the Linggo ng Kabataan, and
payment of annual dues for the Pederasyon
ng mga Sangguniang Kabataan as may be
provided in the SK's Internal Rules of
Procedures, shall be charged against the SK
funds, subject to the applicable budgeting,
accounting, and auditing laws, rules and
regulations.
 PLANNING AND BUDGETING
BUDGET PREPARATION

 SK fund shall not be used for payment of

Personnel Services expenditures

 Conduct of LAKBAY ARAL shall be subject to

guidelines under DILG-DBM JMC 02 dated
September 23, 2016;

 Budget cycle of SK shall be synchronized with

the barangay.
BUDGET AUTHORIZATION
SK shall deliberate on the proposed
annual/supplemental budget;
 SK shall pass a resolution approving the SK
annual/supplemental budget;
For the annual budget, the resolution shall be
passed before the beginning of the ensuing
year;
The resolution passed by the SK shall be
signed by the SK chairperson upon
approval by the majority of all its
members
 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:

• When supported by funds actually available as

certified by the SK treasurer; and
• If covered by new revenue source(s).

Provided, that the PPAs to be funded under the

supplemental budget should be consistent with
the ABYIP of the SK.
 BUDGET AUTHORIZATION
 SK secretary shall:
 Cause the posting of resolution approving SK
annual/supplemental budget in barangay bulletin
board and at least 3 conspicuous places and if
possible including the use of traditional and non-
traditional media, not later than five (5) days
after the approval thereof;

 Submit SK budget to the Sangguniang

Panlungsod/Bayan through City/Municipal Budget
Officer within 10 days upon approval thereof.
 BUDGET REVIEW
 The Sangguniang Panlungsod/Bayan shall review the
SK budget within 60 days upon receipt

 Depending on its findings, the Sanggunian may render

the following review actions:

a. Declare the budget operative in its entirety;

b. Declare operative in its entirety subject to

conditions (e.g. prior clearance/documentation)

c. Declare inoperative in its entirety

 BUDGET REVIEW
d. Declare inoperative in part when:
i. There is/are item/s contrary to budgetary
limitations;
ii. There is/are item/s of appropriation with no legal
basis
iii. There are PPAs not based on ABYIP
iv. There are PPAs included before providing for all
the priority PPAs under RA 10742 and
v. Amount provided for a specific PPA is higher than
the amount provided in ABYP for same PPA
 BUDGET REVIEW
 Failure on the part of the sangguniang
panlungsod or sangguniang bayan to
complete the review within the
prescribed period shall render the said
annual/supplemental budget DEEMED
APPROVED.
 BUDGET REVIEW
 The SP/SB shall return to the SK
Chairperson, through City/Municipal Budget
Officer, the SK budget, with advice of
action;

Upon receipt of advice, SK Treasurer

shall not make disbursements from any
item of appropriation declared inoperative,
disallowed or reduced.
 BUDGET EXECUTION BY SK
 SK Treasurer shall certify 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 againstthe 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.
 BUDGET EXECUTION BY SK
 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.
 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 thereafter be available for expenditure
except by subsequent approval of the SK. However,
unexpended balances for capital outlays shall
continue and remain valid until fully spent,
reverted, or the project is completed. Reversions of
such balances shall not be allowed unless obligations
therefor have been fully paid or otherwise settled.
 BUDGET EXECUTION BY SK
 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.
 BUDGET ACCOUNTABILITY
 The SK chairperson, with the assistance of the
SK treasurer and SK secretary, shall prepare
the budget accountability reports as may be
prescribed by the COA.
 TRANSITORY PROVISION
 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 thereof shall be subject
to subsequent planning and budgeting by the
SK, in accordance with the policies and
procedures prescribed under this JMC.
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,
and the provisions of the Government
Procurement Reform Act (RA No. 9184) and
other pertinent laws.
 CASES FOR RESOLUTION
 Cases not covered by this JMC shall be
referred to the NYC for joint resolution
by the DBM, NYC and DILG.
 EFFECTIVITY
 JMC shall take effect fifteen (15) days
following its publication in the Official
Gazette or in a newspaper of general
circulation.
DILG LEGAL
OPINIONS ON
SANGGUNIANG
KABATAAN
AFFAIRS
DILG Legal Opinion No. 09 s. 2020

 If there is no quorum in the SK, then there

will be no business that may be transacted
which will result to failure to enact
appropriations, in which case reenacted
budgets will be in operation.

 However, as provided by Section 323 of the

Local Government Code, only MOOE and PS
(not applicable for SK) shall be deemed
reenacted. (to the exclusion of Capital
Outlay)
DILG Legal Opinion No. 64 s. 2019

 Consistent with CSC Resolution No. 00078, a

designation in an acting capacity entails not only
the exercise of the ministerial functions attached to
the position but also the exercise of discretion. This
is so considering that the person designated is
deemed to be the incumbent of the position.

 The Department opines that an official in

acting capacity can perform all the duties and
functions of the office.
DILG Legal Opinion No. 58 s. 2019

 An Acting SK Chairperson is entitled to

honorarium, the same with that given to a duly
elected SK Chairperson (in accordance to Section 16
of RA 10742 and Section 393 of RA 7160).

 Honorarium, as defined by the Government

Accounting and Auditing Manual (GAAM), is
the remuneration given to public officials for
“services actually rendered”
DILG Legal Opinion No. 66 s. 2018

 As stated in Section 94 of RA 7160 or the Local

Government Code of 1991, no elected or
appointive official shall be eligible for
appointment in any capacity to any public
office or position during his or her tenure.

 Consequently, SK officials may not be employed

as JO or COS employees in the government, even
though there is no EE-ER relationship in the a JO or
COS status.
DILG Legal Opinion No. 58 s. 2019

 An Acting SK Chairperson is entitled to

honorarium, the same with that given to a duly
elected SK Chairperson (in accordance to Section 16
of RA 10742 and Section 393 of RA 7160).

 Honorarium, as defined by the Government

Accounting and Auditing Manual (GAAM), is
the remuneration given to public officials for
“services actually rendered”
DILG Legal Opinion No. 42 s. 2019

 A Punong Barangay may still be an author

of a resolution pertaining to sports activities.
It did not amount to interference to the powers of
SK under RA 10742 or the SK Reform Law of 2015.

 Nevertheless, it should be noted that while PBs

are allowed to propose and author a
resolution/ordinance, they are prohibited to vote,
except in case of tie.
Regional Legal Opinion dated April 22,
2020
 Whether the concerned barangay has a
complete set of SK officials or not, the quorum
shall be based on the existing SK members duly
ELECTED and have QUALIFIED.

 In absence of an SK Treasurer, there is

essentially no elected SK official vested the
authority to disburse SK Funds.