4 Martel Revenue Generation Utilization and Accountability
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Transcript of 4 Martel Revenue Generation Utilization and Accountability
Revenue Generation, Revenue Generation,
Utilization and AccountabilityUtilization and AccountabilityUtilization and AccountabilityUtilization and Accountability
By: Dir. GARY R. MARTEL By: Dir. GARY R. MARTEL
DBM XIDBM XI
Section 17. Basic Services and Facilities. -
(a) Local government units shall endeavor to be self-
reliant and shall continue exercising the powers and
discharging the duties and functions currently vested
upon them. They shall also discharge the functions
and responsibilities of national agencies and officesand responsibilities of national agencies and offices
devolved to them pursuant to this Code. Local
government units shall likewise exercise such other
powers and discharge such other functions and
responsibilities as are necessary, appropriate, or
incidental to efficient and effective provisions of the
basic services and facilities enumerated herein.
(b) Such basic services and facilities include, but are not
limited to, the following:
(1) For Barangay:
(i) Agricultural support services which include planting
materials distribution system and operation of farm
produce collection and buying stations; produce collection and buying stations;
(ii) Health and social welfare services which include
maintenance of barangay health center and day-care
center;
(iii) Services and facilities related to general hygiene
and sanitation, beautification, and solid waste
collection;
iv) Maintenance of katarungang pambarangay;
(v) Maintenance of barangay roads and bridges
and water supply systems;
(vi) Infrastructure facilities such as multi-(vi) Infrastructure facilities such as multi-
purpose hall, multipurpose pavement, plaza,
sports center, and other similar facilities;
(vii) Information and reading center; and
(viii) Satellite or public market, where viable;
PURPOSES
1.1 To provide guidelines on the appropriation and utilization of no less than twenty percent (20%) of the Internal Revenue Allotment (IRA) for development projects.
1.2 To enhance transparency and accountability of local government units in undertaking development projects.
1.3 To include projects in addressing and responding to natural and man-made disasters and calamities.
GENERAL POLICIES
2.1 In accordance with Section 287 of the Local
Government Code, every LGU shall appropriate in its
annual budget no less than twenty percent (20%) of its
annual internal revenue allotment for development
projects. projects.
2.2 It may be utilized to finance the priority development
projects and programs, as embodied in the duly
approved local development plan that directly support
the Philippine Development Plan, the Medium-Term
Public Investment Program and the Annual Investment
Program.
2.3 All projects to be funded shall contribute to
the attainment of desirable socio-economic
development and environmental management
outcomes and shall partake the nature of outcomes and shall partake the nature of
investment or capital expenditures.
PROJECTS COVERED
The 20% of the IRA intended for development projects
may be utilized for the following priority programs and
projects:
3.1 Social Development 3.1 Social Development
3.1.1 Construction or rehabilitation of health
centers, rural health units or hospitals and
purchase of medical equipment;
3.1.2 Construction or rehabilitation of local
government-owned potable water supply
system;
3.1.3 Establishment or rehabilitation of
Manpower Development Centers; 3.1.4
Construction or rehabilitation of evacuation
centers;
3.1.5 Purchase or repair of area-wide calamity
related alarm or warning system;
3.1.6 Rehabilitation of cultural/historical sites;
3.1.7 Purchase or repair of appropriate calamity-
related rescue operations equipment such as
inflatable boats, breathing apparatus,
extraction tools, safe line rescue ropes, fire
extinguishers, chainsaws, two (2) way extinguishers, chainsaws, two (2) way
handheld radios and the like;
3.1.8 Purchase and development of land for the
relocation of informal settlers and relocation
of victims of calamities;
3.1.9 Construction or rehabilitation of facilities
such as multi-purpose hall intended to cater
out-of-school youths, women, senior citizens,
minors, displaced families, indigenous people minors, displaced families, indigenous people
and differently-abled persons; and
3.1.10 Installation and maintenance of street
lighting system except payment of electric
bills.
3.2 Economic Development
3.2.1 Construction or rehabilitation of
communal irrigation or water impounding
system and purchase of post harvest
facilities such as farm or hand tractor with facilities such as farm or hand tractor with
trailer, thresher and mechanical driers;
3.2.2 Construction or rehabilitation of local
roads or bridges and purchase of
appropriate engineering equipment such
as dump trucks, graders and pay loaders;
3.2.3 Capital expenditures related to the
implementation of livelihood
entrepreneurship/local economic
development projects; and or development projects; and or
3.2.4 Amortization of loans used to finance
development projects cited in this Joint
Circular, subject to the 20% debt service
cap.
3.3 Environmental Management
3.3.1 Reforestation and urban greening;
3.3.2 Construction or rehabilitation of sanitary
landfills, material recovery facilities and purchase
of garbage trucks and related equipment;
3.3.3 Implementation of flood and erosion control 3.3.3 Implementation of flood and erosion control
projects such as rehabilitation and construction
of drainage systems, de-silting of rivers, de-
clogging of canals; and
3.3.4 Other environmental management projects
that promote air and water quality, as well as
productivity of the coastal or freshwater habitat,
agricultural land and forest land.
EXPENDITURE ITEMS NOT COVERED
The following expense items that are not related to
and/or not connected with the implementation of
development projects, programs and activities shall
not be paid out of the 20% development fund:
4.1 Administrative expenses such as cash gifts, 4.1 Administrative expenses such as cash gifts,
bonuses, food allowance, medical assistance,
uniforms, supplies, meetings, communication,
water and light, petroleum products and the like;
4.2 Salaries, wages or overtime pay;
4.3 Travelling expenses, whether domestic or foreign;
4.4 Registration or participation fees in training,
seminars, conferences or conventions;
4.5 Construction, repair or refinishing of
administrative offices; administrative offices;
4.6 Purchase of administrative office' furniture,
fixtures, equipment or appliances; and
4.7 Purchase, maintenance or repair of motor
vehicles or motor cycles.
Principles and Rules to be Observed in the
Release & Disbursement of Brgy. Funds
1. No money shall be paid out of the barangay treasury except in
pursuance of an appropriations ordinance or law.
2. Barangay funds and monies shall be spent solely for public purposes.
3. Trust funds in the barangay treasury shall not be paid out except in fulfillment of the 3. Trust funds in the barangay treasury shall not be paid out except in fulfillment of the
purpose for which that trust was created or the funds received.
4. Fiscal responsibility shall be shared by all barangay officials exercising authority over
the financial affairs, transactions and operations of the barangay.
5. Total disbursements shall not exceed actual collections plus 50% of the uncollected
estimated revenue.
6. No cash Advances shall be made to any barangay official or
employee unless the same is in accordance with accounting and
auditing rules and regulations.
7. The Barangay Treasurer may be authorized by the SB or Bids & Awards Committee
(BAC) to make direct purchases amounting to not more than P1,000 for the essential
needs of the barangay.
8. Financial records must be kept in custody of the Brgy. Treasurer and the Brgy.
Bookkeeper and/or City Accountant.
9. In case of revenue shortfall, the following courses of action shall be taken:
- Spend only what is necessary
- Intensify revenue collection
- Seek financial assistance
- Resort to borrowing
10. The PB may by ordinance or policy in the general provision be
authorized by the SB to augment any item in the approved annual
budget from savings in other items within the same expense class.
11. Unexpended Balances and Appropriations for Personal Services shall revert to the
General Fund.
12. Unexpended Balances and Appropriations for Capital Outlays shall form part of
Continuing Appropriations.
13. Unexpended Balances and Appropriations of the 20% Development Fund from
completed or discontinued projects shall be reverted; however, shall be re-appropriated
for other development projects.
14. The 10% Sangguniang Kabataan (SK) Fund is a statutory obligation considered as a
Trust Fund. Therefore, any unexpended balances shall be added to the 10% share of
the SK for the next year.
BUDGET ACCOUNTABILITY(January 1 – December 31)
Legal Basis
The second paragraph of Section 332 provides
that “the responsibility for the execution of thethat “the responsibility for the execution of the
annual and supplemental budgets and the
accountability therefore shall be vested primarily
in the punong barangay concerned.”
How is the Accountability of the Budget Done?Step 1. Record all collections from taxes, fees, charges and
contribution due or accruing to the barangay in theIncome Books of Account under the General Fund.
Step 2. Issue an official receipt for all taxes, fees, charges and contribution collected.
Step 3. Deposit all collections in the depository account maintained in the name of the barangay within 5 days maintained in the name of the barangay within 5 days after receipt.
Step 4. Collect Real Property Taxes and such other taxes asmay be imposed by province/city/municipality that aredue in the barangay only after being deputized for thepurpose by concerned Provincial/City/MunicipalTreasurer.
Step 5. Record all obligations and disbursements in the Expenditure Books of Accounts under the General Fund.
Step 7. Post in a conspicuous place in the Barangay the
income earned for the quarter and where it was spent.
Step 8. Post in a conspicuous place the three Barangay Budget
Accountability Forms No. 1 to 3. The said forms shall
be prepared quarterly by the Brgy. Treasurer &
Secretary.Secretary.
Step 9. – Monitor and evaluate performance
- Monitor actual results of service delivery and
implementation of development projects.
- Compare actual results with planned targets.
- Provide corrective actions for negative deviations.