DBM LBC No. 109 LGSF 2016 Guidelines
DBM LBC No. 109 LGSF 2016 Guidelines
DBM LBC No. 109 LGSF 2016 Guidelines
No. 109
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Date: March 17, 2016
1.0 BACKGROUND
Cognizant of the need to provide further support to the LGUs to enable them to fully.
carry out functions devolved to them while at the same time, building their capacity
. towards genuine fiscal autonomy, the National Government has scaled up its efforts to
ensure meaningful devolution. /
To this end, the LGSF was included in RA No. 1'0717 or the FY 2016 General
Appropriations Act (GAA) to cover the following:
a. Financial Assistance to LGUs, which shall support priority programs and projects of .
LGUs;
b. Bottom-up Budgeting Projects; and
c. Rehabilitation and Upgrading of Provincial Roads.
2.0 PURPOSE
To prescribe the guidelines and procedures in the release and utilization of the LGSF-
Financial Assistance to LGUs, and ensure its sound utilization and timely release.
3.1. The LGSF-Financial Assistance to LGUs shall be used to fund the priority
.programs and/or projects that are included in the Project Menu attached hereto
as Annex A.
6.0 RESPONSIBiliTY AND ACCOUNTABiliTY
The LCE and other local officials concerned shall be responsible and accountable in
the proper disbursement and utilization of the LGSF-Financial Assistance to LGUs for
the implementation of eligible programs and/or projects, including compliance with
pertinent provisions of RA No. 9184, as well as accounting, budgeting and auditing
rules and regulations.
Interpretation of the provisions in this Circular, including cases not covered herein shall
be referred to the DBM for final resolution.
All provisions in existing guidelines that are not consistent with this Circular are hereby
revised, modified and/or repealed accordingly.
9.0 EFFECTIVITY
This Circular shall take effect one day after its publication.
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FLORENCIO B. ABAD
Secretary
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3.2 The local chief executive (LeE) shall submit a request for financial assistance to
the DBM, supported by the following:
3.4 Similar with the release procedure for LGU special shares under Section 93 of
the General Provisions in the FY 2016 GAA, the LGSF-Financial Assistance to
LGUs shall be released directly by the Bureau of the Treasury (BTr) to the LGU
beneficiaries through authorized govemment servicing banks upon receipt of,
and consistent with the purposes indicated under, the corresponding Special
Allotment Release Order and Advice of Notice of Cash Allocation Issued by the
DBM to the BTr.
The amount received by the LGU from the LGSF-Financial Assistance to LGUs shall
not be used:
4.1 For any purpose other than the programs and/or projects for which the fund was
released;
4.2 To augment funding for programs and/or projects already cove'red by the
Bottom-up Budgeting Projects and Rehabilitation and Upgrading of Provincial
Roads under the FY 2016 GAA; and
4.3 For the payment of Personal Services expenditures (Le., payment of salaries,
including honoraria, allowances, bonuses, and similar forms of compensation).
5.2 Comply with the posting requirements prescri~ed under RANo. 9184.
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3. Flood Control- drainage canals/ sea wall 4. For projects costing more than P10.O Million
Certification from DPWH OED covering
4. Water Supply System- Level 1/ Stand alone water technical capability of LGUs
points (e.g. handpumps, shallow wells, rain water
collector) 5. For requests for Water Supply System,
Certification from DILG that the project is not
included/ funded from other fund source such as
SALINTUBIG, BUB and PAMANA.
Annex B
Date of Notice
Type of Mechanism/ Estimated Amount
Fund of Authority to 'Name/Title of Specific Estimated Program/
Program/ Mode of Number of Period of
-Source Debit Account Program/Project Location Project
Project Implementation Beneficiaries Received Obligation Disbursement Completion
Issued (NADAl) Status
Local Treasurer
Instructions:
1. The report shall be prepared by the LFC in coordination with the other local officials concerned (e.g., local accountant on the allotment, obligation and
disbursements; local engineer on the:status of infrastructure projects, as may be applicable).
2. The fund source shall be based on th~ NADAl issued to LGUs.
3. The type of program/project shall be identified consistent with the Project Menu in the Annex A of this Circular.
4. Amount received refers to the amount received by the LGU as its share. It is the amount indicated in the NADAl. Obligation refers to the total amount obligated by
the LGU as of reporting period. Disbursement refers to the total amount paid by the LGU. as of reporting period.
5. The ,estimated period of completion refers to the projected date (month and year) to complete the program/project.
6. The status of programs/projects refers to the percentage of physical completion a~ of reporting period.