ACCOUNTABILITY

Atty. Antonio C. Bron

 Sa Barangay
Nagsisimula ang

PAG-UNLAD!
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 Public Administration and Public Officers

• Publicadministration is the implementation of government

policy and also an academic discipline that studies this
implementation and prepares civil servants for working in
the public service. The fundamental goal is to advance
management and policies so that government can function.

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 Public Administration and Public Officers

• Public administration is concerned with the organization of

government policies and programs as well as the behavior
of public. Public administrators are public servants working
in public departments and agencies, at all levels of
government.

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 What is a public office?

• Public office is the right, authority, and duty created and

conferred by law, by which for a given period, either fixed by
law or enduring at the pleasure of the creating power, an
individual is invested with some portion of the sovereign
functions of the government, to be exercise by him for the
benefit of the public. The individual so invested is a public
officer. (Laurel vs Desierto)

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 What does it mean to hold public office?

• A job in the government that you have because you were

appointed or elected.
• An office created by a constitution or legislative act, having a
definite tenure, and involving the power to carry out some
governmental function.
• A position or occupation established by law or by the act of a
government body, for the purpose of exercising the authority of
the government in the service of the public.

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 Characteristics of Public Office

• The Constitution stresses that a public office is a public trust and

public officers must at all times be accountable to the people,
serve them with utmost responsibility, integrity, loyalty, and
efficiency, act with patriotism and justice, and lead modest lives.

• These constitutionally-enshrined principles, oft-repeated in our

case law, are not mere rhetorical flourishes or idealistic
sentiments. They should be taken as working standards by all in
the public service.

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 Purpose and Nature of Public Office
A public office is created to effect the end for which government has
been instituted which is the common good; not profit, honor, or private
interest of any person, family or class of persons (63 A Am Jur 2d 667)
(1) A public office is a public trust. (Art. XI, Sec. 1, 1987
Constitution)
(2) It is a responsibility and not a right. (Morfe v. Mutuc)
(3) No person has a vested right in a public office.
(4) It cannot be inherited.
(5) It is not a property

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 Public Office not property
A public office is not the property of the public officer within the provision of the
Constitution against deprivation of property without due process of law or within an
agreement in a treaty not to impair the property or rights of private individuals.
Exceptions:
(1) In quo warranto proceedings relating to the question
as to which of 2 persons is entitled to a public office
(2) In an action for recovery of compensation accruing by virtue of
the public office

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 Who are public officers?

•A public officer is one who performs public

functions/duties of government by virtue of direct
provision of law, popular election, or appointment by
competent authority. His duties involve the exercise of
discretion in the performance of the functions of the
government, and are not of a merely clerical or manual
nature. (See Sec. 2 (14), E.O. 292)

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 Are public officers agents of the state?

• 1987 Constitution
• SECTION 4. The prime duty of the Government is to serve and protect
the people. The Government may call upon the people to defend the
State and, in the fulfillment thereof, all citizens may be required, under
conditions provided by law, to render personal, military or civil service.
• SECTION 5. The maintenance of peace and order, the protection of
life, liberty, and property, and the promotion of the general welfare are
essential for the enjoyment by all the people of the blessings of
democracy.

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 Public Office

• The characteristics of a public office include the

delegation of sovereign functions, its creation by law
and not by contract, an oath, salary, continuance of
the position, scope of duties, and the designation of
the position as an office. (Laurel vs. Desierto, G.R.
No. 145368, April 12, 2002)

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 Public Office
• When a public officer takes an oath of office, he or she binds
himself or herself to faithfully perform the duties of the office
and use reasonable skill and diligence, and to act primarily for
the benefit of the public. Thus, in the discharge of duties, a
public officer is to use that prudence, caution, and attention
which careful persons use in the management of their affairs.
(Farolan vs. Solmac Marketing Corporation, G.R. No. 83589,
March 13, 1991)

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 Accountability of Public Officers

• Public office is a public trust. It must be discharged by its

holder not for his own personal gain but for the benefit of the
public for whom he holds it in trust. By demanding
accountability and service with responsibility, integrity, loyalty,
efficiency, patriotism and justice, all government officials and
employees have the duty to be responsive to the needs of the
people they are called upon to serve. (ABAKADA-GURO Party
List vs. Purisima, G.R. No. 166715, August 14, 2008)

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 Accountability of Public Officers

• Public service is its own reward. Nevertheless, public officers may

by law be rewarded for exemplary and exceptional performance. A
system of incentives for exceeding the set expectations of a public
office is not anathema to the concept of public accountability. In
fact, it recognizes and reinforces dedication to duty, industry,
efficiency and loyalty to public service of deserving government
personnel. (ABAKADA-GURO Party List vs. Purisima, G.R. No.
166715, August 14, 2008)

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 Public office as a duty

Public officers and employees must at all times:

1. be accountable to the people
2. serve them with utmost responsibility, integrity,
loyalty, and efficiency
3. act with patriotism, and justice
4. and lead modest lives

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 Public office as a duty

Section 5. Duties of Public Officials and Employees.

(a) Act promptly on letters and requests.
(b) Submit annual performance reports.
(c) Process documents and papers expeditiously
(d) Act immediately on the public's personal transactions
(e) Make documents accessible to the public.

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 Accountable Public Officers

• The Accountable Officials/Employees are the employees of the government of the

Philippines whose duties performed permits or requires the custody of funds or
properties for which he is accountable be deemed bonded and his fidelity insured in
accordance with Public Bonding Law (Sec. 314).

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 Fidelity Bond

• Fidelity Bond is an insurance of bondable public officer under the

Fidelity Fund to assure:
• Ø faithfully perform all the duties imposed by law upon him;
• Ø faithfully account all funds and public property coming into his
possession, custody of control.

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• The Bureau of the Treasury shall bond all
accountable public officials & employees
pursuant to the provisions of the Public Bonding
Law and issue appropriate guidelines therefor
(EO 449, Sec 2)

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 Sanctions for Failure to Post Fidelity Bond
• Accountable official or employee will be subject to
administrative and criminal liabilities:
•· Administrative Liability – Failure to comply with
requirements of PD 1445 (Government Auditing Code of
the Philippines, Sections 101 & 127) is a neglect of duty and
will be penalized in accordance with the Civil Service Law.
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• Administrative Liability – Failure to comply
with requirements of PD 1445 (Government
Auditing Code of the Philippines, Sections
101 & 127) is a neglect of duty and will be
penalized in accordance with the Civil Service
Law.

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• Criminal Liability
• Article 236 of the Revised Penal Code -
Anticipation of Duties of a Public Office
•

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Section 53 of RA. 10951. Article 236 of the same Act
is hereby amended to read as follows:
• "Art. 236. Anticipation of duties of a public office. - Any person
who shall assume the performance of the duties and powers
of any public or employment without first being sworn in or
having given the bond required by law, shall be suspended
from such office or employment until he shall have complied
with the respective formalities and shall be fined from Forty
thousand pesos (₱40,000) to One hundred thousand pesos
(₱100,000)."
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• RA 6713
Code of Conduct and ethical standards for public officials and
employees
• “It is the policy of the State to promote high standards of ethics in
public service. Public officials and employees shall at all times be
accountable to the people and shall discharge their duties with
utmost responsibility, integrity, competence, and loyalty, act with
patriotism and justice, lead modest lives, and uphold public interest
over personal interest.
• (Sec. 1, RA 6713)
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NORMS OF CONDUCT OF PUBLIC OFFICIALS AND EMPLOYEES

1. Commitment to public interest

2. Professionalism
3. Justness and Sincerity
4. Political Neutrality
5. Responsiveness to the Public
6. Nationalism and Patriotism
7. Commitment to Democracy
8. Simple Living 26

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 PROHIBITED TRANSACTIONS

1.Financial and material interest

2.Outside employment and other activities related
thereto
3.Disclosure and misuse of confidential information
4.Soliciting and acceptance of gifts
• (Sec. 7, RA 6713)
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 STATEMENTS AND DISCLOSURE
• Statement of Assets Liabilities and Net Worth
- True and detailed account of assets, liabilities and financial connections

• FILING:

• Within 30 days after assumption to office

• On or before April 30 of every year
• Within 30 days after separation from the service
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 PENALTIES
Administrative penalties
Fine (not exceeding equivalent 6 months salary)
Suspension (not exceeding 1 year)
Removal (Dismissal from the service)

Criminal (Sec. 7, 8 & 9)

Imprisonment (not exceeding 5 years) or Fine (not exceeding P5000) or both
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 RA 3019

R.A. 3019 – What is graft? Graft?

Acquisition of gain or advantage by dishonest, unfair

or sordid means especially through the abuse of one’s
position or influence in politics, business etc.
(Webster’s Dictionary)
 RA 3019

What is Corruption?

Dishonest or fraudulent conduct committed by those in power

(IOS 6 Dictionary)
RA 3019

RA 6770 (Ombudsman Act of 1989)

 Persons Liable
• "Public officer" includes elective and appointive officials and
employees, permanent or temporary, whether in the classified or
unclassified or exempt service receiving compensation, even
nominal, from the government. (Sec. 2 (b), RA 3019)
• "Public Officials" includes elective and appointive officials and
employees, permanent or temporary, whether in the career or non-
career service, including military and police personnel, whether or
not they receive compensation, regardless of amount. Sec. 3 (b),
RA 6713
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•Can the barangay generate
revenues?

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 • Article X, 1987 Constitution
• Section 5. Each local government unit shall have the
power to create its own sources of revenues and to
levy taxes, fees and charges subject to such
guidelines and limitations as the Congress may
provide, consistent with the basic policy of local
autonomy. Such taxes, fees, and charges shall accrue
exclusively to the local governments.
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• Section 6. Local government units shall have a just
share, as determined by law, in the national taxes
which shall be automatically released to them.

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• Section 7. Local governments shall be entitled to
an equitable share in the proceeds of the utilization
and development of the national wealth within
their respective areas, in the manner provided by
law, including sharing the same with the
inhabitants by way of direct benefits.

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 •Constitutional and Legal Bases
• Direct authority conferred to LGUs to create “own-
source revenues” and to levy taxes, fees and charges
subject to such guidelines and limitations as the
Congress may provide consistent with the basic policy
on local autonomy
• Provides that the taxes, fees and charges shall accrue
exclusively to the local governments 38

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•The power to tax and the power to
create sources of revenues may be
exercised by local governments, not by
mere delegation of authority by
Congress, but pursuant to the direct
authority conferred by the
Constitution. 39

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 • Statutory Authority
• The enabling law on the power of LGUs to create
sources of revenue is the Local Government Code
of 1991, which provides that: “Each LGU shall
exercise its power to create its sources of revenue
and to levy taxes, fees and charges subject to the
provisions herein, consistent with the basic policy
of local autonomy. Such taxes shall accrue
exclusively to the LGUs.” (Section 129) 40

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 • Enabling Authority
• The power to impose a tax, fee or charge, or to
generate revenue under the Local Government Code
(LGC) is exercised by the Sanggunian of the LGU
concerned through an appropriate ordinance. (Section
132)

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•In their political or governmental nature,
LGUs are endowed with taxing powers and
police powers. Thus, they may levy taxes and
impose regulatory fees.

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•These revenue sources have different purposes:
•Taxes – enforced contributions made for purposes
of revenue generation and redistribution
• Fees – imposed collections as a system of recovery
for delivery of service by a public officer; purpose is
regulation and service delivery
•Charges – pecuniary liability as rents against
persons or property 43

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The barangay has the power of taxation.

It is the power of the barangay to raise

revenue by imposing taxes, fees, and
other charges on the barangay residents
and business.

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 • Local Resource Structure
• Internal
• • Taxes • Fees • Charges
• External Local Resource Structure
• Internal Revenue Allotment
• Share from National Wealth
• Direct Share From National Taxes
• Grants and Aids
• Borrowings
• Public-Private Partnership
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What are the sources of income of a barangay from the
exercise of its taxing powers?

Barangays are authorized to generate income from taxes

on stores or retailers with fixed business establishments
and gross sales or receipts in the preceding year of
P50,000 or less in cities and P30,000 or less in
municipalities at the rate not exceeding one percent (1%)
on such gross sales or receipts.
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• A barangay can also collect income from the following:
• • Service fees or charges for the use of barangay property
or facilities;
• • Barangay clearance fees;
• • Fees or charges for the commercial breeding of fighting
cocks and on cockpits and cockfights;
• • Fees or charges on places of recreation with admission
fees;
• Fees or charges for billboards, sign boards, neon signs and
other outdoor advertisements; 47

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• Toll fees or charges for the use of any public road, pier or
wharf, waterway, bridge, ferry, or telecommunications
system funded and constructed by the barangay;
• Revenues from the operation of public utilities and
barangay enterprises (markets, slaughterhouses, etc.);
• Fines (not exceeding P1,000) for the violation of barangay
ordinances; and,
• Proceeds from the sale or lease of barangay property or
from loans and grants secured by the barangay
government
48

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• A barangay is entitled to a share from the following revenues:
• • Real property tax (RPT) collections of the province and city;
• • Community tax collections when collected by the barangay;
• • Internal revenue collections;
• • The development and utilization of the national wealth;
• • The proceeds of tax on sand, gravel, and other quarry
sources; and,
• • Tobacco excise tax pursuant to RA No. 7171. 49

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•Is there a need for a public hearing when a
new revenue measure is enforced?

• Yes. Under Section 187 of the Local

Government Code of 1991 (RA No. 7160),
public hearing shall be conducted before a
new revenue measure/tax ordinance is
enacted.
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• What funding support does a barangay receive from
provincial/city or municipal governments?

• A barangay is entitled to a mandatory financial aid of

not less than P1,000.00 from the provincial and
city/municipal governments where the barangay is
located. Likewise, a barangay is also entitled to receive
voluntary donations, grants or aids from any public or
private entity. However, the amount of donations,
grants or aids received shall not be included in the
budget. Disbursement therefrom shall not be made
except for the purposes from which they are intended.
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• How much is the share of a barangay out of the proceeds from
real property tax (RPT)?
• • In the case of provinces, twenty-five percent (25%) of the proceeds
from RPT collections of the province shall accrue to the barangay
where the property is located.
• • In the case of cities and municipalities within the Metropolitan
Manila Area, thirty percent (30%) of the proceeds shall be distributed
among the component barangays within the city/municipality where
the property is located, as follows: o 50% to the barangay where the
property is located; and, o 50% to be distributed equally among all
component barangays of the city/municipality. 52

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• How much is the share of a barangay within a
province/highly urbanized or independent city out of the
proceeds from the development and utilization of
national wealth?
• A barangay is entitled to thirty-five percent (35%) of the
forty percent (40%) share of the province or highly
urbanized or independent component city where it
belongs. If the natural resources are located in two (2) or
more barangays, their respective shares should be
computed on the basis of: a. Population - Seventy percent
(70%) b. Land area - Thirty percent (30%) 53

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• Is the collection of community tax per barangay subject to
deputation by the Municipal/City Treasurer?

• Yes. Pursuant to RA No. 7160, the City or Municipal

Treasurer shall deputize the Barangay Treasurer to collect
the community tax in their respective jurisdiction, provided
that said Barangay Treasurer is bonded.

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•What are the institutions that can grant loans
to barangays?

•All financial institutions can grant loans to

barangays, subject to their existing guidelines
and requirements.
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•What is the Internal Revenue Allotment?

•The Internal Revenue Allotment (IRA) is the annual

share of local governments out of the proceeds from
national internal revenue taxes. It is estimated at
forty percent (40%) of the actual collections of
national internal revenue taxes during the third fiscal
year preceding the current year, as certified by the
Bureau of Internal Revenue (BIR). 56

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• What constitute the National Internal Revenue Taxes
being used as bases for the computation of IRA?
• The following are deemed as national internal
revenue taxes:
• Income tax
• Estate tax and donor’s tax
• Value-added tax
• Other percentage taxes
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• Taxes imposed by special laws, such as travel tax

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• What percentage of the total IRA goes to barangays and
how is it divided among barangays?

• Barangays get 20% of the total IRA which is divided among

each one of the 41,882 barangays based on the following
formula: a. Population - 60% b. Equal Sharing - 40%

• Note: If the barangay has a population of not less than 100 the share should
not be less than P80,000 per annum. The amount shall be chargeable
against the 20% share of the barangays from the total IRA, and the balance
to be allocated on the basis of the formula. 58

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•The Barangay Budget and the
Budget Process

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• What is the significance of preparing a barangay
budget?
•It is a financial plan.
•It serves as an instrument for barangay
officials to effectively manage the
development of the barangay .
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 • A well-prepared barangay budget serves as
basis for:
•• Planning and policy adoption
• • Program and project implementation
• • Financial control
• • Management information
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• What is the legal basis for barangay budgeting?
• Sections 329-334 (Barangay Budget) of the Local
Government Code of 1991 (RA No. 7160) provide the
basis for the collection, safekeeping and use of
barangay funds. The aforesaid provisions govern the
preparation, effectivity, and review of the barangay
budget, including the financial procedures that the
barangay shall observe. 62

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•Who prepares the barangay budget?
•The Punong Barangay, with the
assistance of the Barangay Treasurer,
prepares the barangay budget.
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•What are the components of a barangay
budget?
•A barangay budget consists of the following:
•• Estimates of income; and,
•• Total appropriations covering current
operating expenditures and capital outlays.
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• Who determines the estimated income to be used as a
source of fund in the budget?
• The Barangay Treasurer is responsible for determining
the estimated income to be used as a source of fund in
the budget.

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• When and why should the Barangay Treasurer
submit to the Punong Barangay the detailed
Statements of Income and Expenditures of the past
and current years?
• The Barangay Treasurer should submit to the
Punong Barangay on or before September 15 of each
year the detailed Statements of Income and
Expenditures.
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• Is there any penalty for a Punong Barangay who fails to
prepare and submit the annual barangay budget on time?
• Yes. Pursuant to Sec. 318 of R.A. No. 7160 and
implemented by DBMCOA Joint Circular No. 93-2 dated
June 8, 1993, a Punong Barangay who fails to submit the
budget on or before October 16 of the current year shall be
subject to such criminal and administrative penalties as
may be provided by the Local Government Code and other
applicable laws. 67

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• What are the mandatory obligations that should be provided in the barangay
annual budget?
• The barangay annual budget must include the following:
• • Appropriations for development projects of not less than 20% of the total IRA
of the barangay for the budget year (Development Fund);
• • Appropriations for Sangguniang Kabataan (SK) programs, projects and
activities equivalent to 10% of the general fund of the barangay for the budget
year (SK Fund);
• • Appropriations for unforeseen expenditures arising from the occurrence of
calamities at 5% of regular income for the budget year (Calamity Fund); and
• • Provision for the delivery of basic services pursuant to Section 17 of RA No.
7160, and effective local governance. 68

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•Who authorizes the barangay budget?
•The barangay budget is authorized by the
Sangguniang Barangay, the legislative body
empowered to enact all ordinances pertaining to
the barangay.

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•How does the Sangguniang Barangay
authorize the barangay budget?
•The SB passes the barangay budget through
the enactment of an appropriation ordinance
which shall be approved or ratified by majority
of the SB members.
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•What is an appropriation ordinance?
•An appropriation ordinance is the legislative
instrument authorizing the budget.

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•When is the effectivity of an appropriation
ordinance?
•An appropriation ordinance becomes effective
only upon its approval by majority of the SB
members and signed by the Punong Barangay
on the date fixed in the ordinance.
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• What happens if the Sangguniang Barangay fails to enact an
appropriation ordinance?
• The ordinance authorizing the appropriations of the preceding year
shall be deemed reenacted and shall remain in force and effect until
the ordinance authorizing the proposed appropriations is passed by
the Sangguniang Barangay. However, only the annual
appropriations for honoraria and salaries/wages of barangay
officials and employees, respectively, statutory and contractual
obligations, and essential operating expenses authorized in the
annual and supplemental budgets for the preceding year shall be
deemed reenacted. 73

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• Can the Sangguniang Barangay reduce the
appropriations in the budget during the
authorization phase of the budgeting process?
• Yes. The Sangguniang Barangay can reduce the
appropriations during the authorization phase of
the budgeting process.
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• Can the Sangguniang Barangay increase the appropriations
in the budget during authorization?
• No. Except when mandatory and statutory obligations have
not been provided for in the budget, in which case, the
increase may cover the deficiency, provided that the total
appropriation does not exceed the total estimated income
reflected in the budget proposed by the Punong Barangay.
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• Does an appropriation ordinance need the approval
of the Punong Barangay?
• Yes. Ordinances enacted by the Sangguniang
Barangay, upon approval by the majority of its
members, need to be approved and signed by the
Punong Barangay.
•
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• Does the Punong Barangay vote on the proposed budget?
• The Punong Barangay does not normally vote on the proposed
budget but he may do so only to break a tie.

• Does the Punong Barangay have a veto power?

• No. This is so because the Punong Barangay is also the Presiding
Officer of the Sangguniang Barangay. However, he may convince
other members of the Sangguniang Barangay from voting against
the appropriations measure if important items in his original
proposal are not adopted or if these were subjected to substantial
insertions/deletions. 77

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• Why is the barangay budget submitted for review?
• The barangay budget is submitted for review to ensure
that:
• • Budgetary requirements and limitations provided in the
Local Government Code are complied with;
• • The budget does not exceed the estimated receipts
and/or income of the barangay; and,
• • The items of appropriations are not more than those
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• When is the barangay budget submitted for review?
• The appropriation ordinance, authorizing the annual or supplemental
• budget is submitted for review within ten (10) days after its enactment.
•
• Who reviews the barangay budget/appropriation ordinance?
• The Sangguniang Panlungsod/Bayan, through the City/Municipal Budget
Officer, reviews the barangay budget.
• The City/Municipal Mayor may indirectly review barangay budgets through
the City/Municipal Budget Officer.
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• What is the prescribed period for the review of the
barangay budget?
• The barangay budget should be reviewed within 60
days upon receipt of the appropriation ordinance
authorizing the barangay budget by the Sangguniang
Panlungsod/Bayan, through the City or Municipal
Budget Officer.

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• What happens if the Sangguniang
Panlungsod/Bayan fails to act on the proposed
barangay budget after the prescribed period?
• The budget is deemed in full force and effect if the
Sangguniang Panlungsod/Bayan fails to review the
barangay budget within the 60-day period.

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• What are the effects of an inoperative budget?
• a. The budget shall be returned to the Punong Barangay for
proper adjustment/ revisions. The Barangay Treasurer who has
custody of the funds shall not make any further disbursements
from the inoperative budget.
• b. The barangay operates on a reenacted budget or the budget
of the previous year until the proposed budget meets the
approval of the Sangguniang Panlungsod or Bayan to ensure the
continuity of its projects and activities
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• What are the disadvantages of a re-enacted budget?
• While a re-enacted budget ensures that barangay operations
will continue despite the absence of a new budget, it has,
however, the following disadvantages:
• • No new projects can be undertaken;
• • New positions cannot be filled;
• • No new equipments can be acquired;
• • Non-recurring activities, no matter how vital, cannot be
undertaken; and
• • No increase in honoraria and other benefits
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• What options does the barangay have in case of conflict in the
review of its budget by the Sangguniang Panlungsod/Bayan?
• In case of conflict in the review of its budget, the barangay may take
the following courses of action:
• • Make an appeal to the City/Municipal Legal Officer who is assigned
to review and submit recommendations on approved ordinances
and executive orders issued by the city/municipal components; and
• • Seek the technical assistance of the Department of Budget and
Management through its appropriate Regional Office.
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• Who is responsible for the execution of the
barangay budget?
• The Punong Barangay is responsible for the
execution of the barangay budget.

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• What are the primary responsibilities of the barangay officials in
implementing the barangay budget?
• In implementing or executing the barangay budget, barangay
officials shall ensure the following:
• • That the revenues as estimated are realized;
• • That the approved programs and projects in the barangay
development plan and in the annual budget are implemented;
• • That barangay funds are disbursed in accordance with the
appropriation ordinance and reviewed annual budget; and
• • That all financial transactions of the barangay follow accounting 86
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• How is the barangay budget executed?
• The barangay budget is executed through the following
procedures:
• • Preparation of a simple cash program for the quarter
• • Disbursement of funds per cash program;
• • Preparation of requests for obligation of allotment (ROA);
• • Preparation of disbursement voucher based on approved
ROA; and,
• • Issuance of checks.
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• What are the financial records that must be kept in
custody?
• Financial records that must be kept in custody of the
Barangay Treasurer and the Municipal Accountant are
the following:
• • Books of accounts
• • Statements of income and expenditures
• • Balance sheets
• • Trial balances 88

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• What can the barangay do if their Real Property Tax
share is not actually remitted by the LGU concerned?
• In case of non-remittance of RPT share, a barangay may
demand for payment or call the attention of the local
treasurer and the chief executive of the LGU concerned.
If all efforts are denied, the matter may be referred to
higher authorities like the Bureau of Local Government
Finance (BLGF) of the DOF.
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• What is the option of the barangay if there is a shortfall in
income?
• In case of revenue shortfall, barangay officials may take
the following courses of action:
• a. Prioritize expenditures or spend only what is necessary;
• b. Intensify revenue collections;
• c. Seek financial asistance; and
• d. Resort to borrowings.
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• Can the Municipal Accountant refuse to sign the Statement
of Income of a barangay to support a supplemental budget?
• No. The Municipal Accountant cannot refuse to sign the
Statement of Income to support a suplemental budget
unless the proposed income of the barangay cannot be
considered as a source of fund for a supplemental budget.
Should this happen, the matter can be referred to the
mayor for appropriate action.
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• Is it possible to use savings from one expense item to another
without enacting a supplemental budget?
• Yes. The Punong Barangay may by ordinance, be authorized by
the Sangguniang Barangay to augment any item in the
approved annual budget from savings in other items within the
same expense class, ie. from a personal services (PS) item to
another PS item, or from a MOOE item to another MOOE item.
Hence, use of savings through augmentation of funds is allowed
without enacting a supplemental budget.
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• Under a reenacted budget, can the barangay continue to
pay the honoraria of Barangay Health Workers?
• Yes. Pursuant to Sec. 323 of RA No. 7160, the annual
appropriations for honoraria of existing positions in the
barangay, statutory and contractual obligations, and
essential operating expenses authorized in the
preceeding year’s annual and supplemental budgets are
deemed reenacted.
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• How are the IRA shares of barangays released?
• Section 286 of the Local Government Code of 1991
provides that the IRA share of local government units
(LGUs) shall be released within five (5) days after the end
of each quarter without need of further action or request.
However, in order to facilitate the early release of the IRA
to the barangays, the DBM has adopted a direct credit
system of cash release to the barangays

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• How is the 10% Sangguniang Kabataan (SK) Fund utilized?
• As a requisite for the use of the SK fund, the SK shall develop a plan or a
work program (or a purchase order) which reflects the projects that they
intend to fund for the year. The plan or work program must be approved by
the majority members of the Sangguniang Barangay.
• Should unexpended balances of SK fund be reverted to the general fund at
the end of the year?
• The 10% SK fund is a statutory obligation that can be considered a trust
fund. Therefore, any unexpended balances shall form part of the beginning
balance of the succeeding fiscal year but only to be added to the 10% share
of the SK for the next year.
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• What is budget accountability?
• Budget accountability is the last stage of the
budget process whereby financial records and
reports are prepared and validated periodically to
assess whether performance is in accordance with
the budget plans.
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• What accountability reports must be prepared by the
barangays?
• All barangays are required to prepare the following
reports:
• • Quarterly Report of Actual Income (Barangay Budget
Accountability Form No. 300); and
• • Quarterly Financial Report of Operations (BBA Form 301).
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• Why do barangays have to keep records and prepare reports on all budgetary
transactions?
• Barangay records and reports of budgetary transactions must be prepared
and kept for the following reasons:
• • To provide information on the status of project implementation and serve as
basis for the necessary corrective action for identified deviations;
• • To ensure that obligations are incurred within the limits of the approved
appropriations;
• • To record unpaid obligations, both current and those certified to as
accounts payable at the end of the year;
• • To make transactions transparent and the financial status of the barangay a
matter of public knowledge; and 98

• • To serve as basic input into the next budget preparation. WOODGROVE

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• Who are responsible for reporting the budget
performance of the barangay?
• The following are responsible for reporting the budget
performance of the barangay:
• • Punong Barangay;
• • Chairman of the Committee on Appropriations of the
Sangguniang Barangay;
• • Barangay Treasurer; and
• • City/Municipal Treasurer/Accountant 99

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• What must barangay officials report to the general
public regarding the barangay and its budgetary
transactions?
• Barangay officials must report the following to the
general public:
• • Income actually realized for the quarter;
• • Expenditures actually spent for the quarter; and
• Accomplishments for the quarter.
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