Travel Allowances and Expenses

for Official Local and Foreign Travels

of Government Personnel

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Legal Bases

A. Local and Foreign Travels

(conferences, special missions, and non-study trips)
○ Executive Order (EO) No. 248 dated May 29, 1995
○ EO No. 248-A dated August 14, 1995
○ EO No. 298 dated March 23, 2004
B. Foreign Study Trips
○ EO No. 367 dated August 21, 1989
 Memorandum Circular No. 35, s. 2017

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Travel Rates Committee (TRC)

○ Section 72, Chapter 7, Book VI of Executive Order No. 292

(Administrative Code of 1987) dated July 25, 1987

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Executive Order No. 77
dated March 15, 2019

“Prescribing Rules and Regulations

and Rates of Expenses and Allowances
for Official Local and Foreign Travels
of Government Personnel”

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 1. Coverage

Shall cover local and foreign travels of personnel of:

○ National government agencies, including SUCs
○ Government-owned or -controlled corporations
○ Government financial institutions
○ Congress of the Philippines
○ Judiciary
○ Constitutional commissions
○ Office of the Ombudsman
○ Local government units

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 2. Definition of Terms

Permanent Official Station

○ Place where the office or regular place of business/work
of an official or employee is permanently located
Transportation Expenses
○ Actual fares of the authorized modes of transportation for
local and foreign travels from permanent official station
to destination or place of assignment and back
Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 2. Definition of Terms
Daily Travel Expenses
Amounts authorized to cover expenses for local travel
which consist of (i) costs for hotel accommodation or
lodging, including the prescribed taxes and service charges,
(ii) meals, and (iii) incidental expenses
Daily Subsistence Allowance
Cost to cover expenses for foreign travel

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 3. Authorized Official Travel
Official travels/assignments shall meet the following criteria:
○ Essential to the effective performance of an official or
employee’s mandates or functions
○ Required to meet the needs of the department/agency/bureau or
there is substantial benefit to be derived by the State
○ Presence of official or employee is critical to the outcome of the
meeting, conference, seminar, consultation, or any official
activity to be attended
○ Projected expenses are not excessive or involve minimum
expenditure

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Official Local Travel
of Government Personnel

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 4. Approval of Local Travels
Official local travels of the following officials, irrespective of the number of days,
need not be approved by higher authorities:
○ Heads of NGAs
○ Chairs of governing boards, commissions, and committees
(collectively referred as “Governing Bodies,” and heads of SUCs,
GOCCs, and GFIs
○ Chief Minister of Bangsamoro Autonomous Region for
Muslim Mindanao, Provincial Governors, and Mayors of
Special, Highly Urbanized, and Independent Component
Cities (DILG MC No. 2019-82 dated May 29, 2019)

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 4. Approval of Local Travels
Official local travels of the government personnel for less than 30 days shall be
approved by the following officials:
○ In NGAs, by head of agencies
○ In NGAs composed of Governing Boards, including SUCs, GOCCs, and GFIs
■ By Chairs of Governing Boards - for board members and chief executive officers
■ By Chief Executive Officers - for other personnel
○ In LGUs (DILG MC No. 2019-82 dated May 29, 2019)
■ By Provincial Governors - for their respective LGU
officials and employees and the Mayors of Component
Cities and Municipalities

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 4. Approval of Local Travels
Official local travels of the government personnel for less than 30 days shall be
approved by the following officials:
○ In LGUs (DILG MC No. 2019-82 dated May 29, 2019)
■ By Municipal Mayors or City Mayors - for their
Municipal Vice-Mayors or City Vice-Mayors, their
respective LGU employees, and Punong Barangays
within their territorial jurisdiction

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 4. Approval of Local Travels
Official local travels of the government personnel for less than 30 days shall
be approved by the following officials:
○ In LGUs (DILG MC No. 2019-82 dated May 29, 2019)
■ By Municipal Vice-Mayors or City Vice-Mayors - for
Members of the Sangguniang Panlungsod and Bayan,
and respective employees.
■ By Punong Barangays - for Sangguniang Barangay
Members, Sangguniang Kabataan Chairperson, SK
Members and Barangay employees.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Official local travels of the government personnel for 30 days or more shall
be approved by the following officials:
○ In NGAs
■ By Department Secretaries, of equivalent rank, or authorized representative -
for personnel in their respective agencies
■ By the Chair, CHED, or authorized representative: -for personnel in SUCs
■ By the Director General, TESDA, or authorized representative - for personnel
in technical and vocational schools
○ In GOCCs and GFIs attached to departments or organizational equivalents - by the
corresponding department secretaries, those of equivalent rank, or their authorized
representatives
○ In all levels of LGUs - by the Secretary of the Department of the
Interior and Local Government (DILG), or his/her authorized
representative
Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 5. Travel Beyond 50-km Radius from the
Permanent Official Station
A. Transportation Expenses and Miscellaneous Expenses
from permanent official station to destination or place of assignment
shall cover the following areas:
• From the office or residence to the point of embarkation
and vice versa
• From the point of embarkation to the point of disembarkation
in the place of destination, and vice versa
• From the point of disembarkation to the office of destination or
place of assignment in the field, and vice versa

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 B. Daily Travel Expenses (DTE)

Maximum
Destination
DTE
Regions: I, II, III, V, VIII, IX, XII, XIII,
Cluster I ₱ 1,500.00
ARMM
Cluster II Regions: CAR, VI, VII, X, XI ₱ 1,800.00
Cluster III Regions: NCR, IV-A. IV-B ₱ 2,200.00

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Apportionment of DTE on the day of arrival at point of destination
Hotel/lodging 50%
Meals 30%
Incidental expenses 20%

Apportionment of DTE on the day of departure at point of destination

Meals 30%
Incidental expenses 20%

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 6. Travel Within the 50-km Radius from the
Permanent Official Station
◉ Actual transportation expenses and DTE may be authorized, Provided, that
(i) personnel concerned shall stay in the place of assignment and does
not commute daily from place of assignment to the place
of residence/permanent official station,
(ii) claims for lodging expense shall be substantiated by a hotel bill or invoice

◉ Those who commute daily shall be allowed the following expenses:

(i) actual fare at the prevailing rates
(ii) meals in an amount not exceeding 30% of the authorized meal component
of the DTE

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 7. Mode of Transportation and Type of
Accommodation

◉ Most economical and efficient mode of transportation and type of

lodging
◉ As a general rule, ordinary public conveyance or customary
modes of transportation shall be used
◉ Patronize DOT- accredited accomodations to ensure availment of
adequate but reasonably-priced services and amenities (Section 8)

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Official Foreign Travel
of Government Personnel

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 9. Types of Foreign Travels

◉ International conferences or meetings

◉ Scholarships, fellowships, trainings, and studies
abroad
◉ Invitations for speaking engagements or receiving of
awards from foreign governments/institutions

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 10. Approval of Foreign Travels

Official foreign travels and payment of travel expenses shall be approved by the following
officials:
◉ By the OP – for the following:
○ Department Secretaries and those of equivalent rank
○ Heads of NGAs under or attached to the OP
◉ By Department Secretaries or those of equivalent rank – for personnel in NGAs,
GOCCS and GFIs under or attached to departments or their organizational equivalents
◉ By the DILG Secretary or authorized representative - for
personnel in all levels of LGUs

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 11. Pre-Departure Expenses and Return
Trip Fees
◉ Pre-departure expenses not exceeding ₱3,500.00 shall be allowed to
cover miscellaneous expenses

◉ Reimbursement of airport terminal fees imposed at the point/s of

embarkation on the return trip to the Philippines, if any, shall be
allowed upon completion of the official trip

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 12. Transportation Expenses

◉ In case officials and employees are not provided with transportation

by the host country or sponsoring organization, they shall be allowed
transportation expenses for the economy class.

◉ For long-haul trips, Department Secretaries, Undersecretaries,

Assistant Secretaries, and those of equivalent ranks, business class,
may be authorized, subject to approval of the OP

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 13. Clothing Allowance
◉ Foreign travel in tropical or temperate countries for the period coinciding with
the summer and spring seasons
More than one (1) month but less than three (3) months US $200.00
Three (3) months but less than six (6) months US $300.00
Six (6) months and more US $400.00
* Study trips to tropical countries – US $300
◉ Foreign travel to temperate countries for the period coinciding with the autumn
or winter seasons
Two (2) weeks or less US $200.00
More than two (2) weeks but less than one (1) month US $300.00
One (1) month and more US $400.00

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 14. Daily Subsistence Allowance
Apportionment of DSA upon arrival at the country of destination
Hotel/lodging 50%

Meals 30%

Incidental expenses 20%

Apportionment of DSA on the day of departure for permanent official station

Meals 30%

Incidental expenses 20%

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 16. Reimbursement of
Representation Expenses
Cabinet Members and those of equivalent rank US $1,000.00
Department Undersecretaries and those of equivalent rank,
US $700.00
if designated as head of the delegation
Department Assistant Secretaries and those of equivalent rank,
US $500.00
if designated as head of the delegation
Those holding positions lower than an Assistant Secretary level
US $300.00
who are designated as head of the delegation

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 17. Scholarships, Fellowships, Trainings,
and Studies Abroad

◉ Expenses of government agencies related to such travels

abroad shall be limited only to:
○ Pre-departure expenses
○ Airfares *
○ Clothing Allowance *

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 18. Insurance

◉ Travel Insurance at the minimum amount required by the

country of destination, depending on the duration of official
travel or a travel coverage of P500,000 if there is no
minimum coverage set by the country

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Miscellaneous Provisions

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 19. Prohibition against Junkets of
Government Officials and Employees
◉ All forms of travel junkets shall be strictly prohibited
◉ Conduct of strategic planning workshops or team building activities
abroad shall not be allowed
◉ Taking of personal leave immediately before or after the official
activity is highly discouraged
◉ If travel circumstances indicate that the trip is mainly
intended for personal purposes, no part thereof shall be
considered as official
Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 20. Travel in Connection with Official Duties
Paid for by a Private Source
◉ Official foreign trips which are partially or fully sponsored or funded by
private corporations or individuals shall be fully disclosed
◉ No official or personal travel of government officials and employees shall
be funded directly or indirectly, fully or partially, by private individuals,
including suppliers or contractors, with pending request/s or applications
or future dealings with any branch of the national government or LGU
concerned
◉ This prohibition applies to invitations to travel purportedly to undertake
study or assessment of the proponents’ capabilities as contractors or
suppliers

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 21. Implementing Rules and Regulations on
Local and Foreign Travels of Personnel in
NGAs, GOCCs, GFIs, and LGUs

◉ Department Secretaries and those of equivalent rank shall cause the

preparation and issuance of internal guidelines on local and foreign travels
of personnel in NGAs, SUCs, GOCCs, and GFIs under or attached to their
respective departments/agencies
◉ The DILG Secretary shall cause the preparation and issuance of the
rules and regulations governing official local and foreign travels of
LGU personnel

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 22. Rendition of Account on Cash Advances
and Sanction
◉ Two (2) calendar months – for official travel abroad One (1) calendar
month – for official local travel

◉ Refund of excess cash advance may be in US$ or in PhP, computed at

the prevailing bank rate at the day of refund

◉ No foreign travels with government funding for those who have not
liquidated their expenses from previous government-funded
overseas travel

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 23. Reportorial Requirements and Sanction

◉ Every personnel authorized to travel shall submit to the head of the

agency a report with recommendations, if any, on the conference or
seminar attended, examination or investigation conducted, or mission
undertaken

◉ In the case of participation in an international conference or

convention in which the Philippines is represented by a delegation, a
report of the delegation shall be submitted to the OP, copy furnished
the Secretary of Foreign Affairs

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 Section 24. Fund Sources

◉ For government personnel in NGAs, including SUCs

○ Charged against the appropriation for travelling expenses in the
annual agency budgets
◉ For GOCCs, GFIs, and LGUs
○ Sourced solely from their respective corporate and local funds,
respectively

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

Section 25. Periodic Review of Local Travel Rates
Every Three (3) Years

◉ To ensure that local travel rates remains up-to-date, the TRC shall conduct
a regular review of the travel rates every three (3) years based on the
survey of lodging costs to be conducted by the Department of Tourism,
and other economic indicators to be provided by the Philippine Statistics
Authority

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

 DEPARTMENT OF BUDGET AND MANAGEMENT
SYSTEMS AND PRODUCTIVITY IMPROVEMENT BUREAU

Budget Circular Nos. 2019-2

and 2019-3:
Implementing AO No. 14, s. 2018
 BACKGROUND

 AO No. 14 entitled, “Consolidating and Rationalizing the Rules on

the Acquisition of Government Motor Vehicles, Adopting a
Centralized System of Procurement Therefor, and for Other
Purposes” was issued on December 10, 2018 to amend AO No.
233 dated August 1, 2008 entitled, “Reiterating the Prohibition
on the Acquisition and Use of Luxury Vehicles and Directing
Revisions of Guidelines on Government Motor Vehicles
Acquisition”, as amended by AO No. 15 dated May 25, 2011.

39
 BACKGROUND

Specifically, AO No. 14 was issued to:

 Update the specifications of motor vehicles that could be
acquired by the government to be at par with the developments in
the automotive industry, thereby upgrading the maximum
allowable engine displacement of certain motor vehicles in
reference to the definition of “luxury vehicles”;
 Streamline and rationalize the approval process for requests to
acquire government motor vehicles; and
 Direct the conduct of the centralized procurement of motor
vehicles.
40
Budget Circular No. 2019-2
dated March 4, 2019
 COVERAGE OF BC NO. 2019-2

All national government agencies (NGAs) under Executive Branch

and instrumentalities, including:
 state universities and colleges (SUCs)
 government-owned or –controlled corporations (GOCCs)
 government financial institutions (GFIs)
 local government units (LGUs)

42
 PURPOSE OF BC NO. 2019-2

Specific guidelines to implement AO No. 14 :

◉ Approving authorities
◉ Allowable engine displacements

43
 H IGH LIGH TS OF BC N O. 2019 -2
Defines motor vehicle:
 Any self-propelled, four (4)-wheeled road vehicle, including, but not
limited to, sedans, coupes, station wagons, convertibles, pick-ups, vans,
assembled owner- or passenger-type jeeps/jitneys/jeepneys, SUVs,
AUVs, CUVs, and MPVs
 Motorcycles
 Delivery trucks, fire trucks, dump trucks, and buses
 Heavy equipment, such as bulldozers, payloaders, graders, forklifts,
amphibian trucks, and cranes;
 All-terrain vehicles, armored vehicles and specific-purpose vehicles
 Aircraft
 Motorized bancas, motorized boats, and seacraft

44
 HIGH LIGH TS OF BC NO. 2019 -2

Updated engine displacements:

AO No. 233, s. 2008 AO No. 14, s. 2018

Type of Motor
Vehicle Gasoline Diesel Gasoline Diesel
Car 2200 cc 3000 cc 2500 cc 3500 cc
Pick-up and 2200 cc 3000 cc 2500 cc 3000 cc
Passenger Van

AUV/CUV/MPV 2000 cc 2500 cc 2500 cc 2800 cc

SUV 2700 cc 3000 cc 2700 cc 3000 cc

45
 H IGH LIGH TS OF BC N O. 2019 -2
Rationalized approving authorities:

Departments/
Others
Type of Motor Vehicle Agencies/ LGUs
(OP and OEOs)
GOCCs/GFIs/SUCs

Section 4.1.a of BC No. 2019-2 DBM: Local Chief DBM:

 Special-purpose approving authority Executives: recommending
 Heavy equipment approving authority authority
 Locally-assembled owner or (local funds)
passenger-type jeep
 Motorized bancas/boats DBM: Office of the
 Vehicles for mass transportation approving authority President:
 Motorcycles and tri-wheel vehicles (NG funds) approving authority

46
 H IGH LIGH TS OF BC N O. 2019 -2

Rationalized approving authorities:

Departments/
Others
Type of Motor Vehicle Agencies/ LGUs
(OP and OEOs)
GOCCs/GFIs/SUCs

Those which are not included under DBM: DILG: DBM:

Section 4.1.a and not considered as approving authority approving authority recommending
luxury motor vehicles per Section regardless of the authority
3.2 of BC No. 2019-2 source of funds
Office of the
(Ex: Car, passenger van, pick-up type President:
vehicle, AUV/CUV/MPV and SUV) approving authority

47
 HIGH LIGH TS OF BC NO. 2019 -2

Rationalized approving authorities:

Departments/
Others
Type of Motor Vehicle Agencies/ LGUs
(OP and OEOs)
GOCCs/GFIs/SUCs

Section 4.5 of BC No. 2019-2 DBM:

recommending authority
 All types of aircraft
 All types of seacraft, except motorized Office of the President:
bancas/boats approving authority

48
 HIGH LIGH TS OF BC NO. 2019 -2

 Endorsement by the Department of requests of attached agencies

 Use of alternative fuel types such as biofuels, flexi-fuel, natural

gas, and solar and electric power, subject to the limitations

 Typology, classification and specifications of motor vehicles, as

indicated under BC No. 2017-1 dated April 26, 2017, as reiterated
under BC No. 2019-2

49
 Budget Circular No. 2019-3
dated May 16, 2019
(Centralized Procurement of Government Motor Vehicles)
 COVERAGE OF BC NO. 2019-3

All national government agencies (NGAs) under Executive Branch

and instrumentalities, including:
 State Universities and Colleges (SUCs)
 Government-Owned or –Controlled Corporations (GOCCs)
 Government Financial Institutions (GFIs); and
 Local Government Units (LGUs)

51
 PURPOSE OF BC NO. 2019-3

Specific guidelines to implement AO No. 14:

◉ Centralized procurement of government motor vehicles
 GPPB Resolution No. 21-2018 on "Approving the Inclusion of Motor
Vehicles in the List of Common-use Supplies and Equipment of the
Procurement Service“
 GPPB Resolution No. 08-2019 dated April 22, 2019 entitled,
“Authorizing the DBM and the PS to Issue Specific Procedural
Process for the Operationalization of a Centralized Procurement of
Motor Vehicles”.

◉ Transitory guidelines
52
 HIGH LIGH TS O f BC NO. 2019 -3

 Same recommendatory and approval requirements under AO No. 14

and BC No. 2019-2

 Centralized procurement through Procurement Service (PS):

 Exercise of executive functions

 Transport of personnel, equipment, supplies, products and
materials
 Transport of sick and/or injured persons
 Patrol operations
 Firefighting operations
53
 H IGH LIGH TS OF BC N O. 2019 -3

 Typology, classification, specifications, and intended use and/or user

based on BC No. 2017-1 and BC No. 2019-2
 Exempted certain vehicles from centralized procurement
 used for the internal and external safety or defense of the State and
require highly specialized and customized specifications;
 to be procured and used in foreign posts
 Identification and inclusion by DBM Secretary of other specific uses of
motor vehicles to be covered by centralized procurement
 PS services and expertise in procuring other motor vehicle
requirements
54
 HIGH LIGH TS OF BC NO. 2019 -3

 Effectivity – June 4, 2019 (Fifteen (15) days from

publication on May 20, 2019)

 Transition Period
 Invitation to Bid:
• Posted on or before effectivity – not covered
• Posted and re-posted after effectivity – covered

55
 ISSUANCES RELATED TO THE PROCUREMENT OF
MOTOR VEHICLES
Government agencies are advised to refer to these issuances with regard to the
centralized procurement of motor vehicles as prescribed by Administrative
Order No. 14, s. 2018.
◉ Administrative Order No. 14 on "Consolidating and Rationalizing the Rules
on the Acquisition of Government Motor Vehicles, Adopting a Centralized
System of Procurement Therefor, and for Other Purpose"
◉ GPPB Resolution No. 21-2018 on "Approving the Inclusion of Motor
Vehicles in the List of Common-use Supplies and Equipment of the
Procurement Service"
◉ DBM Budget Circular No. 2019-2 on "Guidelines Implementing Certain
Provisions of Administrative Order No. 14, s.2018"

56
 ISSUANCES RELATED TO THE PROCUREMENT OF
MOTOR VEHICLES
◉ DBM Budget Circular No. 2019-3 on "Guidelines to Implement the
Centralized Procurement of Government Motor Vehicles pursuant to
Administrative Order No. 14, s. 2018"
◉ GPPB Resolution No. 08-2019 on "Submission of 2019 Supplemental APP-
CSE (Motor Vehicles) to Implement Administrative Order No. 14 s. 2018"
◉ PS Advisory No. 2019-1 on "Submission of 2019 Supplemental APP-CSE
(Motor Vehicles) to Implement Administrative Order No. 14 s. 2018"
◉ GPPB NPM No. 015-2019 re: "Procurement of Motor Vehicles under
Administrative Order (AO) No. 14, series of 2018"

57
58
59
 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
UPDATES ON SANGGUNIANG KABATAAN (SK) FUNDS

 DBM-DILG-NYC Joint Memorandum Circular No. 2019-1,

Guidelines on the Appropriation, Release, Planning and
Budgeting Process for the SK Funds, already provides
the guide on the complete budget process for the SK, to
include budget execution phase or the disbursement of
funds pending the issuance of the COA Handbook.

61
UPDATES ON SANGGUNIANG KABATAAN (SK) FUNDS

 Authority of LGUs to Grant Allowances/Honoraria to SK

Members, SK Secretary and SK Treasurer.
 Based on pertinent provisions of the Local Government Code
of 1991, RA No. 7160 and SK Reform Act of 2015, RA
No.10742, only provides for privileges that may be availed of
by the SK Officials
 Only the SK Chairman is authorized to receive honoraria for
every session attended, while the SK Members, SK Secretary
and SK Treasurer are not entitled to receive honoraria, in the
absence of a legal basis for the purpose.
62
 REMINDERS ON SANGGUNIANG KABATAAN (SK) FUNDS

 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
 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.
63
 REMINDERS ON SANGGUNIANG KABATAAN (SK) FUNDS

 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 to its area
of jurisdiction, with the SK chairperson and the SK treasurer as
the official signatories.
 The SK funds shall be deposited by the barangay in the current
account of the SK not later than 5 working days after the crediting
of the monthly IRA share or after the end of the month.
64
 REMINDERS ON SANGGUNIANG KABATAAN (SK) FUNDS

 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.
 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.

65
 THANK YOU!

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT