REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT

Francisco Gold Condominium II EDSA Cor. MaPagnahal St', Diliman Quezon Ciw

I,iEI,iORANDUIICIRCULAR
TO

N0. 2011-08

ALL PROVINCIAL GOVERNORS, CITY AND I{UNICIPAL I'IAYORS PRESIDING OFFICERS OF THE SANGGUNIANG PANLALAWGAN, SANGGUNIANG PANLUNGSOD, SANGGUNIANG BAYAN, ARMA'I
REGIONAL GOVERNOR AND DILG REGIONAL DIRECTORS STRICT ADHERENCE TO SECTION 90 OF REPUBLIC ACT NO. 10147, GENERAL APPROPRIATIONS ACT, FISCAL YEAR 201'I

SUBJECT

13 January 2011

Legal and Administrative Authority

Sectiong0ofRepublicActNo.lol4T(GeneralApproPriationsAct)FY 2011 re,.Use ani Disbursement of Internal Revenue Allotment of LGUs", stipulates: The amount appropriated for the LGU's share in the Internal

Revenue Attotment shatt be used in accordance with Sections 17 (g) and 287 of R.A. No 7160. The annuat budgets of LGUS shatt be prepared in

accordance with the forms, procedures, and schedules prescribed by the Dupurtr"nt of Budget and Management and those jointty issued with the Commission on Audit. strict compliance with Sections 288 and 354 of R.A. No. 7160 and DILG Memorandum CircuLar No. 2010-83, entitted "Fult Disclosure of Local Budget and Finances, and Bids and Public offering" is posting hereby mandated; PRovtDED, That in addition to,th9 publication or requi;ement under Section 352 of R.A' No.. 7160 in three (3) publicly aciessibte and conspicuous places in the local government unit, the LGU, post the shall olso 'progromsdetoiled informotion on the use and disbursement, and and proiects in the LGIJS websites. Failure to comply ititus of -requirements shatl subiect the responsible officials to with these disciplinary actions in accordance with existing laws. (underscoring ours).

o o

Administrative order No. 267,

s. 1992, titled, Delegating certain General SupervisoryPowersofthePresidentoverLocalGovemmentstothe

Secretary of Interior and Local Govemment

commission on Audit Internat Memorandum, dated october 8, 2010, enjoining concemed coA officials and auditors to monitor management's comptiance to DILG Memorandum circular No. 2010-083, and any deviation therefrom or non-comptiance therewith shatt be a subject of an Audit observation Memorandum, and eventuatly forms part of the Annual Audit Report or Management Letter, if necessary'

Documents and Transactions to be Posted

In particular, as stiputated in the DILG Memorandum circular No.2010-83 dated August 31, 2010, thefottowing documents and transactions shall be posted in the website, in conspicuous ptaces within tocal government-owned pubtic buitdings and in print media of community or general circulation:
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1.

Annual Budqet Report, information detail to the level of personal services, maintenance and other operating expenses and capital outtay per individual offices (Locat Budget Preparation Form No. 3, titted, Program Appropriation and Obtigation by Object of Expenditure, timited to PS, MOoE and CO, (Sampte Form attached as Annex "A"); Quarterlv Statement of Cash Rows, information detail to the level of particulars of cash flows from operating activities (e.g. cash inflows, total cash inflows, total cash outflows), cash flows from investing activities (e.g. cash outflows), net increase in cash and cash at the beginning of the period (Sample Form attached as Annex "B");
Statement of Receipts and Expenditures, information detail to the levet of particulars of beginning cash balance, receipts or income on local sources

2.

J.

indicating past year's actual and current year's estimated receipts and expenditures (e.g. tax rsr'enue, non-tax revenue), externa[ sources, and receipts from loans and borrowings, surptus of prior years, expenditures on general services, economic services, social services and debt seMces, and total expenditures (Local Budget Preparation (LSP) Form No. 2, titled Statement of Receipts and Expenditures, Sample Form attached as Annex

"c");
4. Trust Fund (PDAF) Utilization, information detait to the level of particulars

of object expenditures

(Local Budget Preparation Form No. 3, titled, Program Appropriation and Obtigation by Object of Expenditure, limited to PDAF Utitization, (Form same as Annex "A");

Quarterlv Report of SEF (Special Education Fund) Utilization. information detail to the level of particulars of object expenditures (SEF Budget Accountability Form No. 1 Source: Budget Operations Manual for LGUs (Sampte Form attached as Annex "D");
20% Comoonent

particulars

of objects of expenditure on social development,

of the lRA Utitization, information detail to the [eve[ of

economic

devetopment and environmentat management, LBP Form No. 3, timited to 20% component of the lM (Form same as Annex "A");

7, 8.

Annual GAD Accomptishment Report, information detail to the levet of implementation of GAD budget attributed in the existing prograrns, projects and activities of LGUs (Sample Form attached as Annex 'E"); Statement

creditor, purpose

of Debt Service, information detail to the level of name of of loan, date contracted, term, principat amount,

previous payrnent made on the principat and interest, amount due for the budget year and batance of the principal (LBP Form No. 6, Sampte Form attached as Annex "F");

9.

Annual Procurement Plan or Procurement List, information detail to the level of name of project, individuat item or article and specification or description of goods and seMces, procurement method, procuring office or fund source, unit price or estimated cost or approved budget for the contract and procurement schedule (Sample Form attached as Annex "G");
ltems to Bid, information detail to the [eve[ of individual Invitation to Bid, containing information as prescribed in Section 21.1 of the IRR of Repubtic Act No. 9184, or The Government Procurement Reform Act, to be updated quarterly (Sample Form attached as Annex "H");

'10,

11. Bid Results on

Civil Work, and Goods and SeMces, information detait to the level of project reference number, name and tocation of project, name (company and proprietor) and address of winning bidder, bid amount, apprwed budget for the contract, bidding date, and contract duration, to be updated quarterly (Sample Form attached as Annex "1"); and

12.

Abstract of Bids as calcutated, information detail to the level of office, approved budget for @plementing

thecontract,quantityanditemssubjectforbidding,andbidsof competing biddLrs, to be updated quarterty (Sampte Form attached

as Annex

"J").

Frequenry of Posting
These shall be posted on the dates hereunder prescribed:

Annual Budget RePort

On or before January 15 of each year or not later than 15 days after approval of the Local
Sanggunian On or before January 31 of each Year

Annual Procurement Plan or Procurement Llst SEF Income and ExPnditure Estimates Statement of Debt Service

One (1) week after the approval by the Local

School Board

ol the SEF Income and Annual RePort Expenditure OnL 1t) week after the apProval of Local Chief Execufive (LCE) of the Stltement of Debt Service Annual Report
Not later than the end of January of
ensuing year

5,

Annual GAD Accomplishment RePort

the

6.

Statement of Receipts and Expenditures

One (1) week after approval of the local Chief Executive of the Statement of ReceiPts .nd Expenditures Annual RePort

Quarterlv
'l

Quarterly Statement of Cash Flow

ltems to be Bid Report of SEF Utilization

Within

1O days

after the end of every quarter

2.

Within the prescribed period under

the REform Act and its Government Procurement lRR, and to be uPdated quarterly One (1 ) week after the end of each guarter
One {1) week after the end of each quarter

Trust Fund (PDAF) Utilization Bid Results on Civil Works and Goods and Services Abstract of Bids as Calculated

Withtn

prescribad pariod under the Government Procurement Reform Act and its

the

Mthin the prescribed period under

lRR, and to be updated quarterly

7.

z09o

ComPonnt of the lRA

the Reform Act and its Government Procurement lRR, and to b uPdated quarterly One (1 ) vreek after the end of each quarter

Utilization

l{onthlv

1.

Supplemental Procurement Plan

NLT 15 days after approval by the Head of Procuring Unit

Sanctions

with the foregoing shall be dealt with in accordance with pertinent [aws, rules and regulations. In particular, attention is invited to the
Non-compliance
provision of the Locat Government Code of 1991 , quoted as follows:

Section 60. Grounds for Disciplinary Actions - An elective local official may be disciplined, suspended, or removed from office on: (c) Dishonesty, oppression, misconduct in office, gross neglicence, or dereliction of dutv.
(emphasis supptied).

Responsibilities of the DILG Reglonal Director, or ARlrtlrt Regional Gwernor

The DILG Regional Director, or the ARi M Regional Governor shall:
1

Cause the immediate and widest dissemination Circular;

of this Memorandum

2.

See to it that this Circutar is effectivety communicated and understood by tocat authorities;

3. Monitor tocal govemment compliance;

4.

Ensure the posting by locat authorities of the above-tisted financiat documents and transactions in the website, in conspicuous places within tocal govemment-owned pubtic buitdings, and in print media of community or general circulation;

5. In the event that a local government does not have a website, effect the posting of such financiat documents and transactions through the DILG
Regionat Office website or the DILG Central Office website; and

6. Submit Compliance Report to the Office of the Secretary, through the

Bureau of Local Government Supervision every quarter starting this current year.

Effectlvlty
This Memorandum Circular shall take effect immediately.

:
De^|lE||T

ROBREDO

Rpublic of rh Philipphe3
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GovE$ndar

SILGI l.ocoi 42

LBP FOrM

NO.3
PROGRAT]f, ED APPROPRIATION AND OBLIGATION BY OBJECT OF EXPENDITURE

ANNEX "A"

OFFICE / SPECIAL PURPOSE APPROPRIATIONS:

Object of Expenditure (1)

1.0 Current Operating Expenditures 1.1 Personal Service Salades & Wages-Regular Salaries & Wages-Others

Account Code
(21

Past Year
(3)

Current Year
(4)

Budget

Year
(5)

1.2 Maintenance & Other

Operating Expenses

Travel Expenses
Training and Scholarship Expenses

Capital Outlay

Buildings & Other Struclures Office Equipment Land Transport Equipment

3.0 Financial Expenses

Total Appropriations

Prepared:

Reviewed:

Approved:

Oepartment Head

Local Budget

Officer

Local Chief Executive

ANNEX

"B'

STATEMENT OF CASH FLOWS For the Year Ended December 31 , 2010

(ln Philippine Pesos) CASH FLOWS FROM OPERATING ACTIVITIES

Totial Comprehensive Income

irotes

Year

Year 2

Adjustment for: Provided by Operating Activities Deoreciation and Amortization

Operating Income before Working Capital Changes

Changes in Assets and Liabilities (lncrease) Decrease in Assets: Loans Receivables

ACL Receivables
Investment in Treasury Bills Increase (Decrease) in Liabilities Trade and Other Payables Insurance Policv and Contracts Net Cash Provided by (U3ed in) Operating Activitie6

CASH FLOWS FROM OPERATING ACTIVITIES Acquisition of Property and Equipment Not Cash Provided by (Used in)

Invting Actiyities

CASH FLOWS FROM FINANCING ACTIVITIES Increase/(Decrease) in Membe/s Equity

Net Cash Provided by (Used in) Financing

Activiti6

NET INCREASE/(DECREASE) IN CASH CASH AT THE BEGINNING OF THE YEAR

CASH AT THE END OF THE YEAR

ANNEX "C"
Fonn tlo. 2

STATEi,IENT OF RECEIPTS AND EXPENTDITURES

Provinciaucity/Municipality

General Fund
CURRENT YEAR APPROPRIATION

Particulars

Account code

Past Year

{Actual

Firct Second Smeatel Semester (Actual) (Estimatel

(4) (5)

TOTAL
(6)

(1)

12\

t3)

l.
ll.

Beginning Balance Receipts

A. Local Sources
1. Tax Revenue

a. Real Property Tax b. Special Education Tax c. Other Local Taxes

2.

Total Tax Revenue Non-Tax Revenue a. Regulatory Fees 1. License Fees 2. Permil Fees 3. Other Fees b. Business and Servic Income c. Other Income/Receipts Total Non-Tax Revenue

B. ExtemalSources 1. Share lrom National Intemal Revenue

Taxes (lRA)

2. Share from GOCCS 3. other Shares from National Tax

Collections

a. Share from Ecozone b. Share from EVAT c. Share from National Wealth d. Share from Tobacco Excise Tax
Extraordinary Receipts a. Grants and Donations b. Other Subsidy Income 5. lnter-local Transfers a. Subsidy from LGUS b. Subsidy from Other Funds 6. CapilaYlnvestmenl Receipts a. Gain on Sale Assets b. Gain on Investments Receipls from Loans and Bonowings

4.

C.

Total ReceiDts (l + ll)

ANNEX.,D,,
SEF Budget

Accountability Form no.1

REPORT OF SEF UTILIZATION For the quarter Ending _

Province/City Municipality
Receipt from sEF Less

DISBURSEMENTS (broken down by expense

class and by

object of expenditure

Personal Services

Maintenance and Other Operating Expenses

Capital Outlay

Financial Expenses

Sub

-total

Balance

Prepared by:

LocalAccountant

Approved by:

LCE, Chairman, LSB

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ANNEX'H"
BID FORM Date Invitation to Bid No.

(Office) (Address)

Gentlemen and/or Ladies:

the receipt of Having examined the Bidding Documents including Bid which is hereby duly acknowledged, we, the undersigned, offer to conformity with the said Bidding Documents in accordance with the schedule of prices:
Article / Description Total Amount

Bulletin

We undertake, if our bid is accepted, to the delivery schedule specified in the Schedule of Requirements.

in accordance with

lf our Bid is accepted, we undertake to provide a performance security in the form,

amounts and within the times specified in the Bidding documents. 2011 We agree to abide by this Bid and validity of our bid until and it shall remain binding upon us and may be accepted at any time before the expiration of that period.

Commission or gratuities, if any, paid or to be paid by us to agents relating to this Bid, and to contract execution if we are awarded the contract, are listed below:
Purpose of Commission or Gratuitv

Name and Address of Aoencv

Amount and Cunencv

(lf none, state "None")

Until a formal contract is prepared and executed, this Bid, together with you written acceptance thereof and your Notice of Award, shall be binding upon us.
We understand that you are not bound to accept the lowest or any bid you may receive.

We certify/confirm that we comply with the eligibility requirements per ITB Clause 5 of
the Bidding Documents.

_th

day of

2011.

Signature

(ln the capacity o0

Duly authorized to sign Bid for and in behalf of

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