DEPARTMENT OF BUDGET AND MANAGEMENT (DBM)

DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT (DILG)

NATIONAL YOUTH COMMISSION (NYC)

JOINT MEMORANDUM CIRCULAR NO. 2019-1

GUIDELINES ON THE APPROPRIATION, RELEASE,

PLANNING AND BUDGETING PROCESS FOR THE
SANGGUNIANG KABATAAN (SK) FUNDS

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 JOHN ARIES S. MACASPAC
Local Government and Regional Coordination Bureau
Department of Budget and Management

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
OUTLINE OF THE PRESENTATION

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 • Legal Basis

• Purpose

• General Guidelines

• Transitory Provision

• Responsibility and Accountability

• Repealing Clause

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 LEGAL BASIS
Section 20, SK Reform Act of 2015 (Republic Act [RA]No.
10742)
• 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.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 • SK shall have financial independence in its
operations, disbursements, and encashment of their
fund, income and expenditures.
PURPOSE
This JMC is being issued to prescribe the guidelines on the
appropriation and release of the SK fund, provide for the
planning and budgeting process for the SK, and emphasize
the concomitant posting requirements to enhance
transparency and accountability.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 APPROPRIATION OF THE SK FUND
BY THE BARANGAY
• The punong barangay shall include the 10% of the general
fund accruing to the SK in the barangay executive budget to
be submitted to the sangguniang barangay for budget
authorization purposes.

• The sangguniang barangay, in turn, shall appropriate the said

SK funds in lump-sum in the pertinent appropriation
ordinance.
APPROPRIATION OF THE SK FUND
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 BY THE BARANGAY
• 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 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.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 RELEASE OF THE SK FUND

BY THE BARANGAY
• 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.

• Consistent with Section 20 (b) of RA No. 10742, the SK

shall open a current account in the name of the SK in a
bank, preferably government-owned, situated in or nearest

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 RELEASE OF THE SK FUND
to its area of jurisdiction, with the SK chairperson and the
SK treasurer as the official signatories.
BY THE BARANGAY
• For efficiency and economy purposes, it is strongly
encouraged for the SK to open and maintain a depository
account in the same bank and branch of its barangay.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 RELEASE OF THE SK FUND
• In the opening of account, the provisions of Department of
Finance Department Circular No. 1-2017 dated May 11,
20171 shall be strictly observed.
BY THE BARANGAY
• The SK funds shall be deposited by the barangay 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).

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 RELEASE OF THE SK FUND
• 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
month.
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.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 RELEASE OF THE SK FUND
• Failure by the barangay to release any amount of the SK
fund shall subject the erring officials to penalties under
existing laws
• In case of barangays without elected SK officials, 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.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS FOR THE SK FUND
Planning Process by the SK
• 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).

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
• This plan shall be aligned with the Philippine Youth
Development Plan and Local Youth Development Plans in
provincial, city or municipal level.
FOR THE SK FUND
Planning Process by the SK
• The CBYDP shall serve as the basis for the preparation of
the Annual Barangay Youth Investment Program (ABYIP).

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
• The ABYIP shall contain the specific programs, projects,
and activities with corresponding project costs, including
the necessary fund flows to approximate the reasonable
timing in the release of funds. It is understood that the
ABYIP shall reflect the total resource requirement for the
budget year.
FOR THE SK FUND
Planning Process by the SK

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
• The ABYIP shall be prepared and approved by the SK
through a resolution before the start of the preparation of
the SK annual budget.

• In the preparation of the CBYDP and ABYIP, the SK shall

observe the pertinent policies and guidelines issued by the
NYC for the purpose.
FOR THE SK FUND

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
Budget Preparation by the SK
• 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.

• The SK chairperson, with the assistance of the SK

treasurer, shall prepare the SK annual budget consisting the
following:

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
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 by the SK
• In the preparation of the SK annual budget, priority should be
given to youth development and empowerment programs,
projects and activities in accordance with the Philippine
Youth Development Plan and Local Youth Development
Plan, as embodied in the approved CBYDP and ABYIP, that
will promote the following:

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 a. Equitable access to quality education;
b. Environmental protection;
c. Climate change adaptation;
d. Disaster risk reduction and resiliency;
e. Youth employment and livelihood;
PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Preparation by the SK

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
• In the preparation of the SK annual budget, priority should be
given to youth development and empowerment programs,
projects and activities in accordance with the Philippine
Youth Development Plan and Local Youth Development
Plan, as embodied in the approved CBYDP and ABYIP, that
will promote the following:
f. Health and antidrug abuse;
g. Gender sensitivity;
h. Sports development; and
i. Capability Building, which emphasizes
leadership training.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Preparation by the SK
• 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

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 the applicable budgeting, accounting, and auditing laws, rules
and regulations.
PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Preparation by the SK
• 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
• Moreover, the conduct of study tours or “ Iakbayaral’” 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.
PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Preparation by the SK
• The budget cycle of the SK shall be synchronized with that of
the barangay.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
• As such, the SK chairperson shall submit the proposed SK
annual budget to the SK members not later than the 16 th 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
 PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Authorization by the SK
• The SK shall deliberate on the proposed SK
annual/supplemental budget.

• The SK shall pass a resolution approving the SK

annual/supplemental budget.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 • 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.
PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Authorization by the SK
• As a general rule, all budgetary items shall be included and
considered in the preparation of the annual budget. However, if

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 funds allow, changes in the annual budget may be done through
supplemental budget(s) under the following circumstances:

a. When supported by funds actually available as

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

Provided, that the programs, projects, and activities to be

funded under the supplemental budget should be consistent
with the ABYIP of the SK.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS FOR THE SK
FUND
Budget Authorization by the SK
• The SK secretary shall cause the posting of the resolution
approving the SK annual/supplemental budget in the
barangay bulletin board and in at least three (3)
conspicuous places within the jurisdiction of the barangay,
and if possible including the use of traditional and non-

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 traditional media, not later than five (5) days after the
approval thereof.
PLANNING AND BUDGETING
PROCESS FOR THE SK
FUND
Budget Authorization by the SK
• The SK secretary shall submit the 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 by the Sangguniang Panlungsod or
Sangguniang Bayan
• The sangguniang panlungsod or sangguniang bayan, as the
case may be, shall within sixty (60) days upon receipt
review the annual/supplemental budget of the SK on their
compliance with the priority programs, projects and

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 activities identified under Section 20 (c) of RA No. 10742,
and with other existing laws, rules and regulations.
PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Review by the Sangguniang Panlungsod or Sangguniang
Bayan
• Depending on its findings, the sangguniang panlungsod or
sangguniang bayan may render the following review actions:

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 a. The SK annual/supplemental budget may be declared operative
in its entirety when it fully complies with the priority programs,
projects, and activities identified under Section 20 (c) of RA No.
10742, and with other existing laws, rules and regulations.
b. The SK annual/supplemental budget may be declared operative
in its entirety, subject to conditions, when certain items of
appropriation require prior clearance/documentation and/or
approval from appropriate authorities.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS

FOR THE SK FUND

Budget Review by the Sangguniang Panlungsod or Sangguniang
Bayan
• Depending on its findings, the sangguniang panlungsod or
sangguniang bayan may render the following review actions:
c. The SK annual/supplemental budget may be declared
inoperative in its entirety, when:
i. the expenditure program exceeds the estimates of
income; ii. all the programs, projects, and activities are
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
not based on the ABYIP or inconsistent with the priority
programs, projects, and activities under Section 20 (c) of
RA No. 10742; and
iii. the resolution approving the SK annual/supplemental
budget is passed before the approval of the ABYIP.

FOR THE SK FUND

Budget Review by the Sangguniang Panlungsod or Sangguniang
Bayan

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
• Depending on its findings, the sangguniang panlungsod or
sangguniang bayan may render the following review actions:
c. The SK annual/supplemental budget may be declared
inoperative in part, when:
i. there is/are item(s) of appropriation contrary to budgetary
limitations, such as, but not limited to, inclusion of
personal services expenditures;
ii. there is/are item(s) of appropriation that has/have no
legal
basis;

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
iii. there are programs, projects, and activities not based on
the approved ABYIP;

FOR THE SK FUND

Budget Review by the Sangguniang Panlungsod or Sangguniang
Bayan
• Depending on its findings, the sangguniang panlungsod
or sangguniang bayan may render the following review
actions:

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
c. The SK annual/supplemental budget may be declared
inoperative in part, when:
iv. there are other programs, projects, and activities included
before providing for all the priority programs, projects,
and activities under Section 20 (c) of RA No. 10742; and
v. when the amount provided for a specific program,
project, and activity is higher than the amount provided
in the ABYIP for the same program, project, and activity.

FOR THE SK FUND

Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
Budget Review by the Sangguniang Panlungsod or Sangguniang
Bayan
• 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.

• The sangguniang panlungsod or sangguniang bayan shall

return to the SK chairperson, through the city/municipal
budget officer, the SK annual/supplemental budget with the

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 PLANNING AND BUDGETING
PROCESS
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 by the SK
• The SK Treasurer, whenever necessary, shall certify the
availability of funds.

• All payments out of the SK fund shall be made

through
Disbursement Vouchers.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 • 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.
PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Execution by the SK
• All claims against the SK funds shall be properly supported
with complete documentation.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 • 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.
PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Budget Execution by the SK

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
• 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.
PLANNING AND BUDGETING
PROCESS
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 FOR THE SK FUND
Budget Execution by the 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 chairperson, the reversion of funds
no longer needed in connection with the activities funded by
said balances.
PLANNING AND BUDGETING
PROCESS
FOR THE SK FUND
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
Budget Accountability by the SK
• 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.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
• 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

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 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.
REPEALING CLAUSE
• All issuances by the DBM, DILG and NYC that are inconsistent
or contrary to the provisions of this JMC are hereby repealed
and modified accordingly. Subsequent issuances by any of the
agencies in relation to SK planning and budgeting shall be
made in accordance with this JMC.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 CASES FOR RESOLUTION
• Cases not covered by this JMC shall be referred to the NYC for
joint resolution by the DBM, NYC and DILG.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 EFFECTIVITY
• This JMC shall take effect fifteen (15) days following its
publication in the Official Gazette or in a newspaper of general
circulation.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 Thank you!
DEPARTMENT OF BUDGET AND MANAGEMENT (DBM)
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT (DILG)
NATIONAL YOUTH COMMISSION (NYC)

JOINT MEMORANDUM CIRCULAR NO. 2019-1

GUIDELINES ON THE APPROPRIATION, RELEASE,

Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
PLANNING AND BUDGETING PROCESS FOR THE
SANGGUNIANG KABATAAN (SK) 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