Lgsf-Fa To Lgus LBC No. 119

FY 2019 LOCAL GOVERNMENT SUPPORT
FUND-FINANCIAL ASSISTANCE TO
LOCAL GOVERNMENT UNITS
(LGSF-FA to LGUs)
(Local Budget Circular No. 119 dated July 15, 2019)
JOHN ARIES S. MACASPAC

DEPARTMENT OF BUDGET AND MANAGEMENT
LEGAL BASES
Under Special Provision (SP) No. 5 of the LGSF-FA to LGUs in the FY
2019 General Appropriations Act (GAA), Republic Act (RA) No. 11260,
the appropriated amount of Php 8,752,905,000 shall be used for
financial assistance to local government units to support the following
priority programs and projects:
a. Assistance to indigent patients either confined or out-patient
(including professional fees) and purchase of ambulance;
b. Assistance to indigent individual or families in any of the
following forms: (i) medical; (ii) burial; (iii) transportation; (iv)
food assistance; (v) cash for work; and (vi) educational
assistance;
2
LEGAL BASES
c. Purchase of mini dump trucks;
d. Purchase of multicabs and/or multi-purpose vehicles;
e. Purchase and installation of video surveillance;
f. Maternal and child health projects, pursuant to RA No. 11148 or
the “Kalusugan at Nutrisyon ng Mag-Nanay Act”;
3
LEGAL BASES
g. Construction, concreting, rehabilitation, repair or improvement
of any of the following:
(i) local roads and/or bridges;
(ii) public markets;
(iii) slaughterhouses;
(iv) multi-purpose buildings/halls;
(v) multi-purpose pavements;
(vi) drainage canals;
(vii) sea wall/river wall;
4
LEGAL BASES
g. Construction, concreting, rehabilitation, repair or improvement
of any of the following:
(vii) water system projects including level 1 stand alone water points;
(viii) evacuation centers;
(ix) public parks;
(x) fish ports; and
(xi) post-harvest facilities composed of ice plant and cold storage
facilities; and
h. Purchase and installation of streetlighting.
5
LEGAL BASES
However, in Page 3 of the President’s Veto Message dated April 15, 2019,
item (f) of SP No. 5 of the LGSF-FA to LGUs was directly vetoed inasmuch
as the implementation of maternal and child health projects is the
responsibility of the Department of Health (DOH).
Moreover, in Page 7 of the President’s Veto Message, items (d) and (e) of
the said SP were placed under conditional implementation, to ensure that
the same shall be used only for priority development programs and
projects of LGUs which comply with the requirements provided in the
guidelines to be issued jointly by the Department of Budget and
Management (DBM) and the Department of the Interior and Local
Government (DILG).
6
PURPOSE
This Circular is being issued to prescribe the
guidelines and procedures on the release and
utilization of the LGSF-FA to LGUs consistent with
the FY 2019 GAA, RA No. 11260 and the
President’s Veto Message.
7
GENERAL GUIDELINES
• The LGSF-FA to LGUs shall be exclusively used by the
provinces, cities, municipalities and barangays concerned
to fund the eligible programs and projects enumerated
under SP No. 5 of the LGSF-FA to LGUs in the FY 2019 GAA,
RA No. 11260.
• All requests for financial assistance chargeable against the
LGSF-FA to LGUs shall be signed by the local chief executive
(LCE) of the province, city, municipality or barangay, and
shall be addressed to the Secretary of the DBM, coursed
through the Director of the DBM Regional Office (RO)
concerned.
8
GENERAL GUIDELINES
• The LGUs shall submit their requests, together with the
documentary requirements as prescribed therein, directly
to the DBM RO concerned for evaluation as to the
compliance with the requirements and conditions
prescribed under SP No. 5 of the LGSF-FA to LGUs in the FY
2019 GAA, RA No. 11260, and the Circular. However, in
case of requests directly submitted by the LGUs to the DBM
Central Office (CO), the same shall be evaluated by the
DBM CO, in coordination with the DBM RO concerned,
when necessary.
(Local Budget Circular No. 119-A dated August 8, 2019)
9
GENERAL GUIDELINES
• The DBM RO concerned shall endorse compliant
requests to the DBM CO for appropriate action. On
the other hand, non-compliant requests shall be
returned by the DBM RO concerned to the
requesting LGU with the advice of its findings.
• The requests favorably endorsed by the DBM RO
shall be subject to further evaluation by the DBM
CO.
10
GENERAL GUIDELINES
• The requests that have fully complied with all the
conditions and documentary requirements may be
considered by the DBM CO for further evaluation,
while non-compliant requests shall be returned by
the DBM CO to the requesting LGU, copy furnished
the DBM RO concerned, with the advice of its
evaluation findings.
11
GENERAL GUIDELINES
The requests of LGUs must be supported by the
following:
• In case the request covers two (2) or more
programs and/or projects, a list of programs
and/or projects in order of their priorities of the
LGU shall be included in the request which must
be signed by the LCE.
12
GENERAL GUIDELINES
following:
• The pertinent documents for each type of
program/project being proposed to be funded.
13
PROJECT MENU DOCUMENTARY REQUIREMENT
Assistance to indigent It is understood that
patients either programs/projects of this nature
confined or out-patient shall be referred by the requesting
(including professional LGU concerned to national
fees) government agencies concerned,
such as, but not limited to, DOH,
DSWD, and other executive offices,
as the case may be, before the
same may be considered for
funding under the LGSF-FA to LGUs.
14
Purchase of a. Certification under oath from
ambulance the LCE attesting that there is a
Sanggunian Resolution
endorsing the proposed
project(s), and that the same
is/are part of the duly approved
Local Development Investment
Program and Annual Investment
Program of the LGU using the
template provided; and
15
Purchase of b. Project Profile/Proposal
ambulance signed by the LCE and/or
local health officer, using the
template provided, including
the following information:
i. Vehicle type/specifications
in accordance with existing
guidelines;
ii. Cost per unit, including
number of units; and
16
Purchase of b. Project Profile/Proposal
ambulance signed by the LCE and/or
iii. Specific
hospital/office/unit in the
LGU or other government
entity to where the
ambulance will be
assigned/deployed.
17
Assistance to indigent It is understood that
individuals or families programs/projects of this nature
in the following forms: shall be referred by the requesting
1. Medical; LGU concerned to national
2. Burial; government agencies concerned,
3. Transportation; such as, but not limited to, DepEd,
4. Food Assistance; DOH, DOLE, DSWD, and other
5. Cash for Work; and executive offices, as the case may
6. Educational be, before the same may be
Assistance considered for funding under the
LGSF-FA to LGUs.
18
Purchase of mini a. Certification under oath from
dump trucks the LCE attesting that there is a
Sanggunian Resolution
endorsing the proposed
project(s), and that the same
is/are part of the duly approved
Local Development Investment
Program and Annual Investment
Program of the LGU using the
template provided; and
19
Purchase of mini b. Project Profile/Proposal
dump trucks signed by the LCE and/or
i. Vehicle type/specifications
in accordance with existing
guidelines;
ii. Cost per unit, including
number of units; and
20
Purchase of mini b. Project Profile/Proposal
dump trucks signed by the LCE and/or
iii. Specific office/unit in the
LGU or other government
entity to where the motor
vehicle(s) will be
assigned/deployed.
21
Purchase of multi- Consistent with the President’s
cabs and/or multi- Veto Message, the guidelines
purpose vehicles and documentary requirements
for these projects shall be
Purchase and covered by separate guidelines
installation of video to be jointly issued by the DBM
surveillance and the DILG.
22
Construction, Certification under oath from the
Concreting, LCE attesting that:
Rehabilitation, Repair, i. There is a Sanggunian
or Improvement of any Resolution endorsing the
of the following: proposed project(s), and that
a. Local roads and/or bridges;
b.
c.
d.
Public Markets;
Slaughterhouses;
Multi-purpose buildings/halls;
the same is/are part of the duly
e.
f.
Multi-purpose pavements;
Drainage Canals; approved Local Development
g. Sea wall/river wall;
h. Water system projects, including Level 1/Stand-
alone water points;
Investment Program and
Annual Investment Program of
i. Evacuation centers;
j. Public parks;
k. Fish ports; and
l. Post-harvest facilities composed of ice plants and
storage facilities the LGU;
23
Rehabilitation, Repair, ii. The LGU has prepared the
or Improvement of any necessary Program of Works,
of the following: Detailed Estimates, and
Detailed Engineering Design for
b. Public Markets;
c. Slaughterhouses;
d.
e.
f.
Multi-purpose pavements;
Drainage Canals;
the project, in accordance with
g.
h.
Sea wall/river wall;
Water system projects, including Level 1/Stand- the design, plan,
alone water points;
j. Public parks;
specifications, and such other
standards and policies of the
k. Fish ports; and
storage facilities
National Government;
24
Rehabilitation, Repair, iii. The LGU has the capability to
or Improvement of any implement the proposed
of the following: project(s) either by
b.
c.
Public Markets;
Slaughterhouses; administration or contract;
d. Multi-purpose buildings/halls;
e. Multi-purpose pavements;
f. Drainage Canals;
alone water points;
j. Public parks;
k. Fish ports; and
storage facilities
25
Rehabilitation, Repair, iv. The proposed project(s)
or Improvement of any
is/are readily implementable
of the following:
within the prescribed
timelines and that there are
b. Public Markets;
c. Slaughterhouses;
no issues related to the

f. Drainage Canals;
site/land title, including

alone water points;
j. Public parks;
k. Fish ports; and
informal settlers thereon, and
storage facilities
right-of-way acquisition;
26
Rehabilitation, Repair, v. The LGU has complied with
the standards prescribed by
of the following:
the appropriate government
agencies and has secured all
b. Public Markets;
c. Slaughterhouses;
the necessary clearances or

f. Drainage Canals;
certifications from same

alone water points;
j. Public parks;
k. Fish ports; and
agencies, e.g., Environmental
storage facilities
Clearance;
27
Rehabilitation, Repair, vi. The location, area or site of the
or Improvement of any project(s) is:
of the following: (1) not a privately-owned
land/lot;
b. Public Markets;
c. Slaughterhouses;
d.
e.
Multi-purpose pavements; (2) not included in the critical
geo-hazard areas or no build
f. Drainage Canals;
alone water points;
i. Evacuation centers; zones identified and/or
j. Public parks;
k. Fish ports; and
certified by the Mines and
storage facilities
Geo-sciences Bureau hazard
map; and
28
Rehabilitation, Repair, vi. The location, area or site of the
or Improvement of any project(s) is:
of the following: (3) within the territorial
b.
c.
Public Markets;
Slaughterhouses;
jurisdiction of the LGU;
f. Drainage Canals;
alone water points;
j. Public parks;
k. Fish ports; and
storage facilities
29
Rehabilitation, Repair,
vii. The LGU commits to fund the
of the following: cost of maintenance and
a.
b.
Local roads and/or bridges;
Public Markets;
repairs of the project(s); and
viii. The project is not fully funded
c. Slaughterhouses;
from other sources

f. Drainage Canals;
alone water points;
j. Public parks;
k. Fish ports; and
storage facilities
30
Purchase and a. Certification under oath from
installation of street the LCE attesting that:
lighting i. There is a Sanggunian
Resolution endorsing the
proposed project, and that the
same is/are part of the duly
approved Local Development
Investment Program and
Annual Investment Program of
the LGU;
31
lighting ii. The LGU has the capability to
implement the project by
administration or contract;
32
lighting iii. The project is readily
implementable within the
prescribed timelines and that
there is/are no issue(s)
related to the site/land title,
including informal settlers
thereon, and right-of-way
acquisition;
33
lighting iv. The LGU has complied with
the standards prescribed by
the appropriate government
agencies and has secured all
the necessary clearances or
Certification from same
agencies, e.g., Environmental
Clearance; and
34
lighting
v. The LGU commits to fund
the cost of maintenance
and repairs thereof,
including payment of
electricity, if any.
35
Purchase and b. List of barangay(s) covered by
installation of street the proposed project signed by
lighting the LCE
36
GENERAL GUIDELINES
following:
• LGUs that previously received funding support
from the FYs 2016 to 2018 LGSF-FA to LGUs shall
submit a report following the template
prescribed.
37
GENERAL GUIDELINES
following:
• The minimum percentage of physical completion
or delivery of the programs and/or projects
funded under the previous years’ LGSF-FA to LGUs
as of reporting period shall be as follows:
Minimum Percentage
Year
of Physical Completion
2016 100%
2017 90%
2018 80%
38
GENERAL GUIDELINES
following:
• Failure on the part of the LGU to meet the
minimum percentage of physical completion or
delivery of the programs and projects under the
previously received LGSF-FA to LGUs shall be a
ground to deny the request of the LGU.
39
GENERAL GUIDELINES
• All the required information, format, and
signatories in the documentary requirements
under the Circular and its annexes shall be
completely provided by the LGUs. Failure to
completely provide the required information,
format, and signatories shall be a ground to
deny the request of the LGU.
40
GENERAL GUIDELINES
• Other documents submitted by the LGUs
that are not among the prescribed
documentary requirements under this
Circular shall not form part of the
evaluation of the DBM RO.
41
GENERAL GUIDELINES
• Consistent with Section 28 of the General
Provisions of the FY 2019 GAA, RA No. 11260,
the LGUs shall ensure that the designs of all
proposed projects for the construction,
rehabilitation, repair or improvement of public
markets and other buildings include the
installation of a Rainwater Collection System,
in accordance with the prescribed design of the
DPWH.
42
GENERAL GUIDELINES
• It is understood that only requests prepared,
signed and submitted by the LCEs shall be
evaluated by the DBM ROs. Requests that are
shown to have been prepared and/or
submitted by third parties, e.g., fixers,
middlemen, and facilitators, shall be
immediately denied.
43
GENERAL GUIDELINES
• In line with the Build, Build, Build Program of
the Government pursuant to the Philippine
Development Plan 2017-2022 on
Accelerating Infrastructure Development,
infrastructure programs and projects shall be
given priority in the allocation and utilization
of the LGSF-FA to LGUs.
44
GENERAL GUIDELINES
• All requests shall be subject to the
evaluation by the DBM based on just and
equitable distribution among LGUs, and
fund availability.
45
GENERAL GUIDELINES
• Consistent with DBM-DOF Joint Circular No.
2016-1 dated January 4, 2016, the LGSF-FA
to LGUs shall be released directly by the BTr to
the beneficiary LGUs, through authorized
government servicing banks, consistent with
the purposes indicated in the corresponding
Special Allotment Release Order and Advice of
Notice of Cash Allocation Issued to be
released by the DBM to the BTr.
46
GENERAL GUIDELINES
• The LGSF-FA to LGUs shall be recorded as
trust by the LGUs for the specified purpose(s)
for which the funds were received. Funds
which remain unutilized as of December 31,
2020 shall be reverted to the National
Treasury by the recipient LGUs.
47
GENERAL GUIDELINES
• However, if at any point before December 31,
2020, the LGU determines that the funds can
no longer be utilized, e.g., when the
program(s) and/or project(s) cannot be
implemented for any reason or when the same
has/have been funded from other sources, the
amount received by the same LGU from the
LGSF-FA to LGUs shall be immediately
reverted to the National Treasury.
48
PROHIBITION ON THE USE OF THE
LGSF-FA to LGUs
The LGSF-FA to LGUs shall not be used:
• For any purpose other than the program(s) and/or
project(s), including the location thereof, for which
the fund was released;
• To fund projects already fully covered by the other
sources of funds; and
• For the payment of Personal Services expenditures
(i.e., payment of salaries, including honoraria, allowances,
bonuses, and similar forms of compensation).
49
PROJECT IMPLEMENTATION
• Disbursement and utilization by the LGUs shall
be subject to pertinent provisions of the
Government Procurement Reform Act (RA No.
9184) and its 2016 Revised Implementing
Rules and Regulations (IRR), and any relevant
policies issued by the Government
Procurement Policy Board (GPPB), as well as
the applicable budgeting, accounting, and
auditing rules and regulations.
50
PROJECT IMPLEMENTATION
• The purchase of motor vehicles shall be subject
to the pertinent guidelines issued by the DBM
and other guidelines that may be issued by the
appropriate government agency for the
purpose. The authority to purchase, where
applicable, shall be sought before the posting
of the Invitation to Bid/Request for Quotation,
consistent with pertinent guidelines on the
acquisition and use of motor vehicles.
51
POS TING AND REPOR TING REQUIREMENT S
The beneficiary LGUs shall:
• Comply with the posting requirements prescribed
under RA No. 9184 and its 2016 Revised IRR, and all
relevant policies issued by the GPPB.
• Prepare quarterly reports on fund utilization and
status of program/project implementation using the
prescribed format (Annex C) until such time that the
Unified Reporting System for LGUs has been
developed and can be used by the LGUs.
52
• Consistent with the Full Disclosure Policy of the DILG,
the said reports shall be posted on the LGU’s website
within twenty (20) days from the end of each quarter,
and in at least three (3) conspicuous public places in
the locality.
53
• The LCE of the implementing LGU shall send a written
notice to the Speaker of the House of
Representatives, President of the Senate of the
Philippines, and the Chairpersons of the House
Committee on Appropriations and Senate Committee
on Finance upon posting of the reports on the LGU’s
website. Such written notice of the LGU shall be
considered the date of submission of the reports to
the said offices.
54
RESPONSIBILIT Y AND ACCOUNTABILIT Y
• The responsibility and accountability in the
implementation of programs and projects, and
proper utilization and disbursement of the LGSF-FA
to LGUs shall rest upon the LCE and other local
officials concerned of the recipient LGU. It is also
the responsibility of said local officials to ensure
that the funds released to the LGU are utilized
strictly in accordance with applicable budgeting,
accounting, and auditing rules and regulations, and
pertinent provisions of RA No. 9184.
55
RESPONSIBILIT Y AND ACCOUNTABILIT Y
• Moreover, the LGU shall ensure that no duplication
of funding will occur. As such, the LGU, through its
LCE, shall immediately inform the DBM if it has
received funding from other sources for the same
programs or projects.
56
Thank you!
FY 2019 LOCAL GOVERNMENT SUPPORT
FUND-FINANCIAL ASSISTANCE TO
LOCAL GOVERNMENT UNITS
(LGSF-FA to LGUs)
(Local Budget Circular No. 119 dated July 15, 2019)
JOHN ARIES S. MACASPAC

DEPARTMENT OF BUDGET AND MANEGEMENT

Lgsf-Fa To Lgus LBC No. 119

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Lgsf-Fa To Lgus LBC No. 119

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FY 2019 LOCAL GOVERNMENT SUPPORT

JOHN ARIES S. MACASPAC

no issues related to the

site/land title, including

the necessary clearances or

certifications from same

from other sources

JOHN ARIES S. MACASPAC

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