Bub dbm dilg-dswd-napc joint memorandum circular no. 5 dated october 1, 2014

o F Fl C IA LRELEASESION

NO

DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. SOctober 1, 2014

FOR : Heads of Departments (DA, DEPED, DOE, I)ENR, DOH, DILG,DOLE, DSWD, DOT, DTI, NCIP and TESDA) and theAdministrator of NEA, All City/Municipal Mayors and Membersof the Sanggunian Panlungsod/Bayan, and All OthersConcerned

SUBJECT : POLICY GUIDELINES AND PROCEDURES IN THEIMPLEMENTATION OF THE GRASSROOTS PARTICIPATORYBUDGETING PROCESS (FORMERLY CALLED BOTTOM-UPBUDGETING) FOR THE PREPARATION OF THE FY2016 BUDGETAND SUCCEEDING YEARS

1. STATEMENT OF POLICY

In pursuit of attaining the Philippine Development Plan's goal of inclusive growthand poverty reduction, and promoting good governance at the local level, theHuman Development and Poverty Reduction Cluster (HDPRC), through the

Grassroots Participatory Budgeting (GPB) Oversight Agencies, shall implement theGPB Program, formerly called Bottom-up Budgeting, to ensure the inclusion of thefunding requirements for local development needs as they are identified at the

local level in the budget proposals of participating agencies.

2. PURPOSE

To provide participating agencies and local government units (LGUs) with the

policy guidelines, processes, responsibilities and timelines in the GPB approach to

be applied in the preparation of the FY 2016 National Expenditure Program and

the proposed budget in succeeding yers.

3. COVERAGE

This Circular shall cover the following participating agencies:

• National Government Agencies (NGAs):Department of Agriculture (DA), including the Bureau of Fisheries and

Aquatic Resources (BFAR)

Department of Education (DepEd)

Department of Energy (DOE)

:1.

Department of Environment and Natural Resources (DENR)

Department of Health (DOH)

Department of the Interior and Local Government (DILG)

Department of Labor and Employment (DOLE)

Department of Social Welfare and Development (DSWD)

Department of Tourism (DOT)

Department of Trade and Industry (DTI)

National Commission on Indigenous Peoples (NCIP)

Technical Education and Skills Development Authority (TESDA)

. Government Owned and Controlled Corporations (GOCCs):

National Electrification Administration (N EA)

National Irrigation Authority (NIA)

• For Coordination and OversightDepartment of Budget and Management (DBM)

Dl LGDSWDNational Anti-Poverty Commission (NAPC) Secretariat

National Economic and Development Authority (NEDA)Office of the NAPC Vice-Chair for the Basic Sectors

. Beneficiaries

All cities and municipalities

4. DEFINITION OF TERMS

4.1. Basic Sector Organizations (BSOs) - refer to organizations of themarginalized sectors of Philippine society, namely: farmers and landlessrural workers, artisanal fisherfolk, formal labor and migrant workers,workers in the informal sector, indigenous peoples and cultural communities,

women, persons with disabilities, senior citizens, victims of calamities anddisasters, youth and students, children, cooperatives, and urban poor.

4.2. Grassroots Participatory Budgeting (GPB) - is an approach to preparingthe budget proposal of agencies, taking into consideration the development

needs of cities/municipalities as identified in their respective local povertyreduction action plans that shall be formulated with strong participation of

basic sector organizations and other civil society organizations.

4.3. GPB Executive Committee - composed of the heads of the GPB oversightagencies (DBM, DILG, DSWD, NAPC, NAPC Office of the Vice-Chair for Basic

2

Sectors, and NEDA). It is responsible for setting GPB policies and to oversee

the implementation of the program.

4.4. GPB Technical Working Group - composed of representatives of the GPU

oversight agencies. It shall provide the GPB Executive Committee with

technical support in formulating GPB policies and overseeing the

implementation of the program.

4.5. Civil Society Organizations (CSOs) - include non-government

organizations (NGOs), People's Organizations (POs), basic sector

organizations, cooperatives, trade unions, professional associations, faith-

based organizations, media groups, indigenous peoples movements,

foundations, and other citizen's groups which are non-profit and are formedprimarily for social and economic development to plan and monitorgovernment programs and projects, engage in policy discussions, and

actively participate in collaborative activities with the government.

4.6. Civil Society Assembly - an inclusive meeting of all CSOs, POs,

community/grassroots organizations facilitated by DILG at the municipallevel, with the support of DSWD and NAPC (where present), to gather,analyze and share results of poverty situation and other local poverty data in

their locality, identify strategies to address poverty and present them to the

Local Development Council or the Local Poverty Reduction Action Team(LPRAT), and local special bodies. CSOs shall also be oriented on their role in

local governance and select CSO representatives to the LPRAT.

4.7. Local Development Fund - equal to 20% of the Internal Revenue Allotmentto be used for local development projects as prescribed by DILG-DBM JMC2011-1.

4.8. Local Poverty Reduction Action Plan (LPRAP) - the LG1J plan which

contains programs and projects collectively drawn through a participatory

process by the LGU with CSOs and other stakeholders, and which will directlyaddress the needs of the poor constituencies and the marginalized sectors inthe city or municipality.

4.9. Local Poverty Reduction Action Team (LPRAT) - the group to spearheadthe formulation and monitoring of the LPRAP.

Under the Regular GPB program, the LPRAT shall be composed of thefollowing members:

3

Chairperson: Local Chief Executive (LCE)

Co-Chairperson: A CSO representative

Members:Representatives from Government, to wit:

• Sangguniang Panlungsod/Bayan Member who is the

Chairperson of the Committee on Appropriation;

• All local government department heads such as the Planning

Officer, Budget Officer, Fishery and Agriculture Officer, SocialWelfare and Development Officer, Health Officer, and Public

Employment Service Office (PESO) Manager;

• Representatives of NGAs such as the DSWD municipalIinks/NCDDP area coordinators, the DILG City/Municipal LocalGovernment Operations Officer, the Schools District

Supervisor, Agrarian Reform Officer, DTI field officer,

City/Municipal Environment and Natural Resource

Management Officer (CENRO) and all other NGA

representatives; and

Representatives from CSOs (must be residents of the city ormunicipality), that can come from the followinggroups/organizations:

• Pantawici Pamilya Parent-Leaders recognized by DSWD;

• Leaders from DON organized Community Health Teams;

• Leaders of the Parent-Teacher Associations;

• Leader of CSOs accredited by LGUs;

• Leaders of CSOs accredited or recognized by any NGA;

• Leaders of a women's group;

• Leaders of a basic sector organization;

• Leaders of a basic sector organization recognized by NAPC;

• Leaders of other community or grassroots organizations;

• In cities/municipalities where Indigenous Peoples comprise

over twenty-percent (20%) of the population, one of theelected representatives must come from the IP sector

A representative from a local business group or association

Elected officials, their immediate relatives (spouse, parent, sibling,

child), and LGU employees are ineligible to be elected as CSOrepresentatives.

4

Municipalities that have graduated from or are currently implementing the

NCDDP shall undergo the Enhanced GPB process, wherein the LPRAT shallperform its functions as the technical working group of the Enhanced Local

Development Council (LDC). It shall be composed of the following members:

• 10 representatives from government (may come fromgovernment members or observers of the Enhanced LDC)

• 5 Barangay Development Council Vice-Chairpersons selected

through the NCDDP

• 5 CSO representatives in the Enhanced LDC who are elected

during the CSO assembly

Elected officials, their immediate relatives (spouse, parent, sibling,child), and LGU employees are ineligible to he elected as CSO

representatives.

The LPRAT under the Regular or Enhanced GPB Process shall always becomposed of an equal number of government (including the LCE) and non-government representatives. All CSO representatives should be residents of

the city/municipality. The LPRAT should also be composed of at least 40%

women.en.

4.10. Enhanced Local Development Council - refers to the Local Development

Council (LDC) with an expanded membership to include the regularmembers of the LDC with the addition of all the Vice-Chairs of the BarangayDevelopment Councils who are to be elected from among the NCDDP

community volunteers.

Chairperson: Local Chief Executive (LCE)Vice-Chairperson: A CSO representativeMembers:

Representatives from Government, to wit:

• All punong barangays in the city or municipality

• Chairperson of the Committee on Appropriation of theSangguniang Pan lungsod/Bayan

• District Representative or his/her representative

Representatives from Civil Society Organizations andCommunities, to wit:

• All Vice-chairs of the barangay development councils (electedthrough the NCDDP)

5

• At least five CSO representatives elected by CSOs during theCSO assembly

A representative from a local business group or association

Elected officials, their immediate relatives (spouse, parent, sibling,child), and LGU employees are ineligible to be elected as CSOrepresentatives.

The Enhanced LDC shall be composed of at least 40% women.

All local government department heads such as the Planning Officer, BudgetOfficer, Agriculture Officer, Social Welfare and Development Officer, HealthOfficer and Peso Manager and representatives of national governmentagencies (NGAs) such as the DSWD municipal links, NCDDP Area Coordinator,the DILG City/Municipal Local Government Operations Officer, the schooldistrict supervisor and Agrarian Reform Officer shall be invited to sit asobservers and resource persons in the Enhanced LDC.

4.11. National Community Driven Development Program (NCDDP)- refers tothe DSWD managed povery reduction program that seeks to empower poorcommunities to have better access to quality basic services and to participatein more inclusive local planning, budgeting, and implementation at thebarangay level.

4.12. National Poverty Reduction Action Team - the group that shall discuss andaddress policy and implementation issues and provide guidance to theRPRATs throughout the GPB process. It shall be chaired by DILG andcomposed of representatives from all GPB oversight and participatingagencies.

4.13. Parent Leaders - Pantawid Pamilya Pilipino Program (4Ps) grantees chosenby their co-grantees/fellow parents to lead a cluster of family-grantees. Theirrole and function is to ensure that grantees comply with the conditions set bythe 4Ps program. They preside over meetings during community assemblies;disseminate information and updates, follow-up/monitor commitment andcompliance of grantees with health and education conditions. They also actas the bridge of the community in communicating to the municipal linkassigned in the area and to other stakeholders in the municipality or city.

4.14. Participating Agencies - refers to the NGAs (DA- including BFAR, DepEd,DOE, DENR, DOH, DILG, DOLE, DSWD, DTI, DOT, NCIP and TESDA) and GOCCs(NEA and NIA) through which GPB projects will be funded and implemented.

6

4.15. Public Financial Management Improvement Plan - refers to the set of

programs/projects/activities (PPAs) that will he undertaken by the LGU toaddress the areas in Public Financial Management (PFM) that need to be

further improved and/or sustained based on the assessment by the LGUof the different critical dimensions of an open and orderly PFM system

provided under the PFM Assessment Tool for LGUs.

4.16. Regional Poverty Reduction Action Teams (RPRATs) - the group that

shall provide support and guidance to LGEJs throughout the GPB process and

monitor the implementation of the GPI3 Projects, composed of the following:

Chairperson: DILG Regional DirectorVice-Chairpersons: DBM Regional Director

NAPC Secretariat RepresentativeMembers:

• Regional Directors of BFAR, DA, DENR, DOH, DEPED, DOLE, DSWD, DTI,

DOT, NEDA, NIA, NCIP, and TESDA

• Representatives from DOE and NEA

• All Provincial Planning and Development Officers (PPDOs) in the Region

• The provincial CSO permanent representative elected in the processfacilitated by NAPC and an alternate representative selected by the

permanent representative per province. This does not refer to the

elected members of the basic sector councils of NAPC at the nationallevel.

S. HARMONIZATION OF THE PLANNING PROCESSES FOR GRASSROOTSPARTICIPATORY BUDGETING, NATIONAL COMMUNITY DRIVENDEVELOPMENT PROGRAMNCDDP, AND LOCAL DEVELOPMENT PLANNING

5.1. The harmonization of the planning processes being undertaken for GPB, NCDDP,and Local Government Development Planning will be implemented in twomodalities.

5.1.1. The first mode will institutionalize the LPRAT as a committee of the local

development council. This will be referred to as the regular GPB process

which will be implemented in all cities and municipalities that have not yetparticipated in the NCDDP. In situations wherein the local developmentcouncil does not meet regularly or is not functional, the LPRAT may beconstituted independently from the LDC.

7

5.1.2. The second mode will integrate the GPB program into the processes of the

local development council. It will also integrate barangay level planning into

the city/municipal level planning process. This process will be referred to as

the Enhanced GPB process. It will he implemented in all two hundred

seventy one (271) municipalities that have graduated froni or are currentlyimplementing the NCDDP. The list of municipalities that shall undergo the

Enhanced GPB process can be found in Annex A.

5.2. Local government units that do not adopt the regular or Enhanced GPI3 process,

whichever is applicable, in their local development planning process will not be

eligible to participate in the GPB and NCDDP.

GUIDELINES FOR FY 2015 BUDGET PREPARATION AT THE LOCAL LEVEL IN

NON-NCDDP CITIES AND MUNICIPALITIES (REGULAR GPB PROCESS)

The following processes shall serve as the main components to implement GPB innon-NCDDP cities and municipalities: 1) CSO assemblies, 2) LPRAP Workshops, 3)Submission of the list of priority projects to the DILG Regional Office (RU), 4)Consolidation of the projects by the DILG RO, 5) Validation of projects by theRPRAT and the NPRAT, 6) Submission of the revised list of priority projectstogether with a Sanggunian Resolution to the DILG RU, 7) Integration of the LGIJprojects in the budgets of participating agencies, 8) Provision of LGU Counterpartand 9) Project Implementation.

6.1. Announcement of the ('SO Assembly. The schedule of the CSO assembly must beannounced through invitations to CSOs, posters in the city/municipal hall andthrough the DILG website at least two weeks before the CSO assembly. The listof CSOs invited and information about the person/office who may be contactedby other local CSOs who wish to be invited shall also be posted in the municipalbulletin board of the city/municipal hall at least two weeks before the assembly.

6.2. Conduct of Civil Society General Assembly. DILG, through the assistance of NAPCand DILG, will convene the general assembly of CSOs at the city/municipal levelto select CSO representatives in the LPRAT. To ensure broad participation ofCSOs, NAPC and DSWD shall assist DILG in convening the general assembly. TheLCE and/or City/Municipal Planning Development Coordinator (C/MPDC) shallalso be invited to observe in the CSO assembly.

6.2.1. Orientation. DILG shall give an orientation to CSOs on local governance,highlighting the role of CSOs in Local Development Councils (LDCs) andLocal Special Bodies (LSBs), as well as explain the rationale for and processof GPB.

6.2.2. Election of LPRAT representatives. The CSOs shall independently select theorganizations that will represent CSOs in the LPRAT. Elected officials, their

immediate relatives (spouse, parent, sibling, child), and LGU employees areineligible to be elected as CSO representatives.

• The assembly will also elect the LPRAT co-chair and two other CSOsignatories in the LPRAP from among the elected representatives.They must include a Pantawid Pamilya parent leader, a basic sectororganization representative and a CSO member of the localdevelopment council, as detailed in Section 6.2.3.

• Local government officials, including but not limited to the LCE orthe C/MPDC, shall not influence the election of the CSOrepresentatives during the CSO assembly

• The number of CSO representatives in the LPRAT shall equal thenumber of government representatives.

6.2.3. Composition of the CSO signatories of the LPRAP. The Co-chair of theLPRAT (or the vice-chair in the case of Enhanced LDCs) and the two otherCSO representatives who will sign the LPRAP must include:

• a Pantawid Pamilya parent leader, the selection of whom shall befacilitated by the l)SWD municipal link (lithe city or municipality hasno Pantawid Pamilya beneficiaries, a Parent Teacher Associationrepresentative can serve as an alternative);

• a representative from a basic sector organization or cooperative ofany of the following sectors: farmers and landless rural workers,artisanal fisherfolk, formal labor and migrant workers, workers in theinformal sector, indigenous peoples and cultural communities,women, persons with disabilities, senior citizens, victims of calamitiesand disasters, youth and students, children, or urban poor, theselection of which shall be facilitated by the LPRAP facilitator to beidentified by DILG; and

• a CSO representative who is a member of the city or municipal localdevelopment council.

6.2.4. Reporting on the status of GPB Projects. The DILG City or Municipal LocalGovernment Operations Officer (MLGOO) shall report on the status of theGPB Projects for the current and previous years during the CSO Assembly.

6.2.5. Poverty Situation Analysis. After the selection of representatives, theassembly should review, validate and analyze social and economic data ofthe city/municipality and propose solutions to its concerns and problems.The City/Municipal Planning and Development Coordinators (C/MPDC),with the local finance committee (LFC) and other department heads of theLGU, will provide technical assistance to the CSU assembly in doing the localpoverty situation analysis. These include presentation of updated,consolidated, relevant social and economic data.

9

6.3. Conduct of LPRAP Workshop. The conduct of the LPRAP workshop shall beguided by modules which will be provided by DILG to all MLGOOs, GPBCommunity Mobilizers and MPDCs.

6.3.1. The LGU shall announce the schedule of the LPRAP workshop through aninvitation to the members of the LPRAP sent at least two weeks before thescheduled workshop.

63,2. The LCE shall constitute or reconstitute the LPRAT based on the membersas identified in Section 4.9 and based on the process undertaken pursuantto Section 6.2. The LCE must ensure the active participation of the electedCSO representatives in the LPRAT during the LPRAP workshop.

6.3.3. The RPRAT shall provide technical assistance to the LPRATs in theformulation of the LPRAP. The DILG RU shall ensure that at least onemember of the RPRAT or representatives of participating agency regionaloffices will participate in each LPRAP Workshop.

6.3.4. The GPB Project Management Office (PMO), housed within DILG, mayalso deploy facilitators in coordination with the RPRAT to assist selectedLPRATs in the conduct of the LPRAP workshop to ensure that an adequatepoverty analysis be done before identifying poverty reduction strategies.

6.3.5. The C/MPDC with the assistance of the local finance committee (LFC) andother department heads of the LGU, shall present the poverty situation ofthe city/municipality for validation of the LPRAT. Updateddata/information should be made accessible to the LPRAT for validationand discussion.

6.3.6. The LPRA'I' shall review previously identified strategies and prioritypoverty reduction projects and update the strategies to be undertaken bythe LGU and other stakeholders, including the national agencies, andincorporate the same in the LPRAP. Identification of strategies should bebased on the results of the poverty situational analysis. The LPRAT shalldiscuss and identify major causes of poverty in the area and specify howthese can be addressed.

6.3.7. The LPRAT shall also identify priority poverty reduction projects througha consensus among its members. If consensus cannot be reached, thedecision will be made through a majority vote. The list of priority projectswill be submitted to the national government for funding consideration inthe next budget to be proposed to Congress, using the format provided inAnnex B.

6.3.8. Only projects that can be implemented through programs in the GPBMenu of Programs (see annex D) can be proposed for funding by thenational government. However, outside the menu projects can be proposedas a LGU implemented project funded through the LGU counterpart for GPB.

10

6.19. All proposed projects must consider gender-responsiveness and genderequality in their design and implementation.

6.3.10. Projects below five hundred thousand pesos cannot be proposed forfunding by national government. Such projects can be proposed as LGUimplemented projects to be funded through the LGIJ counterpart for GPB.

6.3.11. Total funding for proposed priority poverty reduction projects requestedby each city and municipality from national government shall not exceedthe cap set for each of them as indicated in Annex A.

6.4. Submission of the List of Priority Poverty Reduction Projects. The list of prioritypoverty reduction projects duly endorsed by the LPRAT shall be submitted tothe RPRAT through the DILG RO on or before November 15.

6.4.1. The submission should include:• Cover letter signed by the city / municipal mayor;• List of Priority Projects to he considered for funding in the next

proposed budget, using the attached format (Annex B) and with allpages signed by the 3 CSO representatives identified in Section 6.1.3;and

• Project brief for each proposed project (using template in Annex C)• Report on compliance with the required participatory processes

under GPB as detailed in Section 6.4.3

6.4,2 The list of priority projects that will be submitted must be signed by thethree elected CSO members of the LPRAT on every page.

6.4.3 The report on compliance with the required GPB participatory processesshall include the following documents:

CONDITIONConduct of CSO assemblyand election of CSOrepresentatives

Conduct of LPRAPworkshops

DOCUMENTARY EVIDENCE- Attendance sheet of CSO assembly;- Photo of participants of CSO assembly;- Highlights of the CSO assembly;- Documentation of Election Results-LGU report on status of GPB projects,including LGU implemented projects- Attendance sheet of the LPRAPworkshop- Photo of LPRAP workshop participants;- Minutes of the LPRAP workshop

6.4.4 Both printed and electronic copies of these documents should besubmitted to the DILG RO. Electronic copies should be submitted throughe-mail. The list of priority projects must be submitted in both PDF andword/excel format.

11

6.5. Consolidation of the List of Priority Poverty Reduction Projects by Region - the listof priority poverty reduction projects will be consolidated by the D1LG RO,which will then provide the consolidated list to all members of the RPRATs andto DBM. Copies of the list of priority projects, including all attachmentssubmitted by the LPRATs should also be forwarded to DBM and NAPC byNovember 30. In addition, copies of the report on compliance with requiredGPB participatory processes shall also be forwarded to NAPC for review andvalidation.

6.6. Validation, review and revision of Priority Poverty Reduction Projects

6.6.1. The DILG Regional Director shall convene the RPRAT to review andvalidate the proposed projects. The RPRAT shall also identify theappropriate implementing agency for each project.

6.6.2. The RPRAT shall meet with the duly authorized LPRAT representativesequal number of government and CSO representatives) to inform them of

the need to replace proposed projects which have not been accepted by theRPRAT.

6.7. Submission of revised list of priority projects. The LPRAT shall submit its revisedlist of priority poverty reduction projects, with all pages signed by the 3 CSOrepresentatives identified in Section 6.1.2, together with project briefs for eachproject and the highlights of the LPRAT meeting, to the DILG RO on or beforeJanuary 16. The submission shall include a Sangguniang Panlungsod/BayanResolution adopting the revised list of priority projects. A sample resolution isattached as Annex E.

6.7.1. The RPRAT must ensure that rejected projects are replaced beforesubmission of the final list of GPB Projects to DBM and the RegionalDevelopment Council (RDC].

6.7.2. The RPRAT, through the DILG RO, shall then submit the revised list ofvalidated GPB Projects to DBM and the RDC on or before January 21

6.8. Integration of the LGU projects in the budgets of participating agencies. The ACOsshall review and integrate in their proposed budget for all GPB projects thathave been submitted to them by DBM.

6.8.1. DBM shall consolidate all the submissions of the RPRAT and forward it toall participating Agency Central Offices (ACOs)on or before January 31

6.8.2. All agencies should ensure that GPB Projects are not duplicated in theirregular programs, in the PAMANA program or in the ARMM Stimulus Fund,

6.8.3. DBM shall provide all RPRATs a copy of the list of GPB projects which hasbeen incorporated into the proposed budget.

6.9. Provision of LGU Counterpart. See Section 8.

6.10. Project Implementation. See Section 9.

7. GUIDELINES FOR BUDGET PREPARATION AT THE LOCAL LEVEL IN NCDDP

CITIES AND MUNICIPALITIES (ENHANCED GPB PROCESS)

Municipalities that have graduated from or are currently implementing the NCDDP

(see Annex A for the list of municipalities) will have to follow the Enhanced GPB

Process. Under this process, the following modifications are made to the regular

GPB Process: a) Integration of Participatory Barangay Development Planning and

b) Enhancement of the composition of the Local Development Council. The

detailed steps for the Enhanced GPB Process is provided under Annex F.

7.1. Election of harangay volunteers. DSWD through its NCDDP program shallfacilitate the election of a volunteer in each barangay during a barangayassembly to serve as the Barangay Development Council Co-chair and serve as amember of the enhanced Municipal Development Council. The barangaydevelopment council co-chairs shall also be invited by DILG and DSWD to attendthe CSO assembly.

7.2. Participatory Barangay Development Planning. A parallel barangay developmentplanning process shall be undertaken through the NCDDP. DSWD shall facilitatethe conduct of participatory barangay development planning in all barangays inmunicipalities with NCDDP.

7.3. Integration of the LPRAT into the Enhanced Local Development Council (LD(structure. The LCE shall convene the Enhanced LDC to approve the LPRAP, theComprehensive Development Plan (CDP), Local Development Investment Plan(LDIP), Executive-Legislative Agenda (ELA) and Annual Investment Plan (AlP),and identify the priority poverty reduction projects to be funded by GPBNCDDP and the LGU. To make the planning more manageable, the EnhancedLDC shall constitute an LPRAT to serve as its technical working group, whichshall undertake the formulation of the plans and present it for the approval ofthe Enhanced LDC.

7.3.1. The Enhanced LDC shall include the vice-chairpersons of all barangayBDCs, who are selected from the NCDDP community representatives inthe Barangay Development Council. Its composition shall be consistentwith Section 4.10. The Enhanced LDC shall have the following structure:

13

ri P)C/ DepartineWH . di

AIM

7.3.2. The Enhanced LDC shall form an LPRAT to serve as its technical workinggroup. The LPRAT shall draft the plans, including the identified prioritypoverty reduction projects. It shall be composed of 20 members of orobservers in the LDC:

• 10 coming from government (may include observers in the LDC),• 5 from the BDC Vice-Chairpersons, selected by them from among

themselves, and• 5 from the CSO representatives elected during the CSO assembly.

7.3.3. The Vice-Chairs of Barangay Development Councils identified throughNCDDP shall be added to the membership of the existing LDC.

7.4. Annex F provides a step-by-step explanation of the Enhanced GPB Process.

8. COUNTERPART REQUIREMENTS

8.1. LGUs must provide a cash counterpart for the GPB program equal to apercentage of their current Local Development Fund (LDF). This must besourced from LGU funds.

8.2. For LGtJs which are also part of the NCDDP program, the GPB and the NCDDPprogram will have a common and combined cash counterpart requirement.

8.3. The percentage shall be based on the proportion of the GPB and NCDDPfunding to 20% of the LGU Internal Revenue Allotment, or the LDF, as follows:

Reauired Cash CounMunicipalities (Based on proportion ofGPB and NCDDP funding to LDF)

Up to 100% of the LDF 10% of the LDF amountOver 100% up to 150% of the 15% of the LDF amountLDFOver 150% of the LDF - 20% of the LDF amount

All Cities 40% of the Budget Cap'The required counterpart for each LGUs is detailed in Annex A.

14

Sample Computation:

Municipality A (part of NCDDP1GPB Budget Cap Allocation P15 MillionNCDDP Grant 5 MillionTotal Funding P20 Million

Local Development Fund P15 Million

Proportion of GPB and NCDDP Funding to LDF:= (GPB Cap + NCDDP) / LDF= 20 Million / 15 Million= 133%

Required Cash Counterpart:= 15% of the LDF amount= 15% of 15 Million= 2.25 Million

Municipality B (not uart of NCDDPGPB Budget Cap Allocation P15 MillionNCDDP Grant 0 MillionTotal Funding P15 Million

Local Development Fund P 8 Million

Proportion of GPB and NCDDP Funding to LDF:= (GPB Cap + NCDDP) / LDF= 15 Million / 8 Million= 187.5%

Required Cash Counterpart:= 20% of the LDF amount= 20% of 8 Million= 1.6 Million

CitvAGPB Budget Cap Allocation: P30 Million

Required Cash Counterpart:= 40% of Budget Cap= 40% of P30 Million= P12 Million

8.4. For LGUs not included in the NCDDP, the counterpart will be solely based ontheir GPB budget cap allocation.

8.5. For LGUs currently part of the NCDDP program, additional non-cashcounterpart shall be required from the Local Government Units as provided forin the NCDDP Community Finance Manual.

15

8.6. The GPB Counterpart Funds from the LGU shall be added to the fundingavailable for GPB Projects. Its use shall be determined by the LPRAT or theEnhanced LDC, whichever may be applicable, provided that funds formonitoring and evaluation of GPB Projects and the conduct of quarterly LPRATor Enhanced LDC meetings shall be included.

8.6.1. Counterpart funding need not be allocated on a per project basis.Identified counterpart funds may be used to fund projects that are 1000/0funded by the local government unit.

8.6.2. National programs that require a counterpart, as indicated in the Menu ofPrograms, shall be included as part of the LGU counterpart.

8.7. The counterpart to be provided must be sourced from LGU funds. This shallbe formalized and included by the LGU in its AlP and annual budget.

8.7.1. The LGIJ shall submit a copy of its AlP and annual budget to the DILGRegional Office to provide evidence that the required counterpart fundinghas been included in the LGU budget on or before the end of the calendaryear.

8.7.2. Failure to provide counterpart funds in the Appropriation Ordinanceauthorizing the local Annual Budget will result in the non-release of thenational government funding for the city or municipality's GPB projects.

8.8. Specific guidelines governing the computation, mobilization, use andaccounting and reporting of Local Counterpart Funds under the Enhanced GPBprocess shall be issued by the DSWD within 30 days of the issuance of theseguidelines.

8.9. Projects to be funded out of the local government counterpart should beconsistent with the DILG-DBM Joint Memo Circular 2011-1 dated April 13, 2011on the Amended Guidelines on the Appropriation and Utilization of the 20% ofthe Annual Internal Revenue Allotment for Development Projects.

8.9.1. The cost for the operation of the LPRAT or the Enhanced LDC, vis-a-vis itsrole in crafting the LPRAP and monitoring/evaluating its implementation(including meeting and travel costs) may be shouldered through the LGUcounterpart and sourced from its general fund.

9. PROJECT IMPLEMENTATION

9.1. Funding for both NGA and LGU-implemented GPB Projects in a city or municipal

government shall only be released if the LGU achieves the following:

9,1,1. Pass the Good Financial Housekeeping component of the Seal of Good

Local Governance under the most recent assessment;

16

9.1.2. Substantial accomplishment in the implementation of the PFM

Improvement Plan as determined by DBM;

9.1.3. Required GPB counterpart has been provided in the LGU Annual Budget;

and

9.1.4. Submission of proper financial and physical accomplishment reports to

the concerned NGAs for GPB projects in previous years.

9.1.5. Compliance with the intent of GPB for meaningful participation of CSOs

and communities in GPB. This includes:

• conduct of CSO assembly and election of CSO representatives in the

LPRAT or in the Enhanced LDC,

• conduct of participatory planning through the LPRAP workshops (or

through Enhanced LDC meetings), and

• conduct of quarterly LPRAT or Enhanced LDC meetings to report on the

status of GPB Projects

9,2. Funding under agencies where LGUs have unliquidated cash advances beyondthe reglamentary period will also not be released and the identified GPH

Projects will not be implemented.

9.3. LGUs that poorly implement their GPB Projects in the previous year, asdetermined by the RPRAT based on guidelines that will be subsequently issued,will not be provided funding for their priority projects under the GPB in thecurrent year.

10. ROLES AND RESPONSIBILITIES

10.1. The LCE shall:

10.1.1. Organize and convene the LPRAT or the Enhanced LDC;

10.1.2. Make available information and data sets for poverty situation analysis

including but not limited to Community-Based Monitoring System (CBMS),

Field Health Service Information System, National Household TargetingSystem for Poverty Reduction, CDP, LDIP, ELA and AlP;

10.1.3. Ensure the conduct of LPRAP workshop/s or Enhanced LDC meetings

with strong CSO and basic sector participation and ensure that only project

proposals included in the LPRAP and prioritized by the LPRAT aresubmitted to the RPRAT;

17

10.1.4, Ensure the conduct of quarterly LPRAT or Enhanced LDC meetings; and

10.1.5. Mobilize the LGU to comply with the requirements of the DILG's Seal of

Good Housekeeping, undergo the PFM assessment (if not yet undertaken),

and develop and implement a PFM Improvement Plan.

10.2, The LPRAT (for the Regular GPB Process) shall:

10.2.1. Organize and facilitate the conduct of a Local Poverty Reduction ActionPlanning workshop for the formulation of the LPRAP and the identificationof priority poverty reduction projects;

10.2.2. Agree on a list of priority poverty reduction projects based on a thoroughpoverty analysis and submit the LPRAP to the RPRAT using the templateprovided in Annex B; and

10.2.3. Conduct quarterly meetings to monitor the status of the approval andintegration of the priority poverty reduction projects into the budgets ofparticipating agencies and monitor the implementation and status of theprojects.

10.3. The Enhanced LDC (for the Enhanced GPB Process) shall:

10.3.1. Organize and facilitate the conduct of planning workshops for theformulation or the updating of the CDP, LDIP, and identification of prioritypoverty reduction projects;

10.3.2. Create an LPRAT to serve as its technical working group in the initialpreparation of the CDP, LDIP and identification of poverty reductionprojects;

10.33. Agree on a list of priority poverty reduction projects based on a thoroughpoverty analysis and submit the LPRAP to the RPRAT using the templateprovided in Annex B-2; and

10.3.4. Conduct quarterly meetings to monitor the status of the approval andintegration of the priority poverty reduction projects into the budgets ofparticipating agencies and monitor the implementation and status of theprojects.

10.4. The Sangguniang Panlungsod/Bayan shall:

10.4.1.Accredit all local CSOs, including those recognized by any nationalgovernment agency such as Basic Sector Organizations recognized by NAPCand volunteer groups in the NCDDP program; and

18

10.4.2. Review and adopt the List of Priority Poverty Reduction Projects to besubmitted to the RPRAT. It shall pass a Sanggunian Resolution using theprescribed form (see Annex E) endorsing the list of priority povertyreduction projects.

10,5. The CSO members of the LPRAT or the Enhanced LDC shall:

10.5.I. Actively participate in the formulation of LPRAP and identification of thepriority poverty reduction projects;

10.5.2. Through their elected representatives identified in Section 6.1.2, endorsethe LPRAP and list of priority poverty reduction projects for approval of theSangguniang Panlungsod/Bayan;

10.5.3. Advocate for the local scinggunian's adoption of the list of priority povertyreduction projects, when necessary; and

10.5.4. Remind and demand that the LCE convene the quarterly meeting toreport on the status of the implementation of the priority poverty reductionprojects so that they can monitor the implementation of the projects. Theymay also undertake monitoring activities independent of the LGIJ.

10.6,Thc Area Coordination Teams of NCDDP shall:

10.6.1. Facilitate barangay level processes for municipalities undertaking theEnhanced GPB Process;

10.6.2. Conduct orientation workshops for the LPRAT of focusmunicipalities/cities on the GPB process; and

10.6.3. Assist DILG in the municipal level planning activities, including in thepreparation and conduct of the Enhanced LDC and LPRAT meetings andensure the active participation of the BDC Vice-Chairs in these meetings;and

10.7.The RPRAT shall:

10.7.1. Require each member agency to assign a permanent and alternaterepresentatives to the RPRAT;

10.7.2. Conduct orientation workshops for the LPRAT of focusmunicipalities/cities on the GPB process which will discuss the following:

• Rationale for GPB;• GPB guidelines;• Tools for LPRAP development; and• Menu of Programs for GPB, including technical requirements for

projects by participating agencies;

19

10.7.3. Provide technical assistance in the development of LPRAPs and monitorthe activities of the LGUs and the progress of submission of projectproposals and LPRAPs;

10,7.4. Consolidate, review and validate the proposed LPRAPs submitted by theLPRATs and ensure that proposed projects do not exceed the LGU budgetcap;

10.7.5. Inform the RDCs and the concerned LCEs on the final LPRAP projects forthe focus cities and municipalities which are included in the budgetproposal of the participating agencies; and

10.7.6. Monitor and evaluate the performance of the LPRAT and theimplementation of GPB Projects. It shall give recommendations oractions to be taken by LRPATs or Enhanced LDCs which are notresponsive or non-compliant with this JMC.

10.8.The GPB-PMO (DILG) shall:

10.8.1. Lead the conduct of regional orientation for the RPRATs on theformulation of LPRAPs as necessary;

10.8.2. Monitor the performance of the LPRATs and the progress of theimplementation of GPB Projects and undertake internal evaluation of theprogram for program management purposes.

10.9.The NAPC shall:

10.9.1. Create a helpdesk at the national level for the purpose of directcommunication between the local community and NGAs/GOCCs with regardto LPRAP implementation status and issues;

10.9.2. Establish a grievance and redress system where various stakeholders cancommunicate their concerns regarding the implementation of GPB;

10.9.3. Monitor LGU compliance with the requirements for participatoryprocesses in crafting the LPRAP

10.9.4. Facilitate the overall external evaluation of the GPB program.

10.10. The Central Offices of Participating Agencies shall:

10.10.1. Incorporate the list of priority projects provided by DBM in theirproposed budget;

10.10.2. Submit to DBM, the department's budget proposal which includes theproject proposals from the focus cities/ municipalities by the deadline setbyDBM.

20

10.10.3. Give feedback to the RDC and the LGUs on the status of the proposalsthrough their Agency Regional Offices (AROs); and

10.10.4. Monitor the implementation of GPB projects under their respectiveagencies.

10.11.The GPB Executive Committee shall set GPB policies and oversee theimplementation of the program.

10.12. The NPRAT shall:

10.12.1. Create new programs to address unmet needs as identified through theGPB Process; and

1012.2. Discuss and provide recommendations on policy and implementationissues that may arise.

11. FUND SOURCE

Funding for the implementation of approved GPB Projects shall be incorporated by

the participating agencies and DBM into the National Expenditure Program.

12. GPB CALENDAR

Participating agencies and LGUs are enjoined to adhere to the GPB budget

preparation calendar as specified in the table below.

Activity Responsible Party Period

For NCDDP areas only:Selection of BDC Vice-Chairs and DSWD Area Coordination To be set byBarangay-level poverty situational Teams for NCDDP DSWD

analysis and conduct of barangayassemblies

I Orientation of the RPRATS DILG PMO As needed

2 Conduct of Civil Society Assemblies September

3 Orientation workshops for LPRATs RPRATS October 1-15

4 Conduct of LPRAP Workshops 7 LGIJs October 16-Enhanced LDC and LPRAT Novembermeetings 14

21

Activity I Responsible Party I Period

5 Submission of LPRAPs and list of LGUs

priority project / LDIPs to the

DILG RO

6 Convening of RPRAT to validate RPRAT

LGU proposals; clarify proposals

with LGUs if necessary

7 Provide a copy of the consolidated RPRAT

list of proposed priority

projects/LDIPs and requiredsupporting documents to DBM and

NAPC

8 Inform LPRATs of rejected project RPRAT

for replacement

9 Validation workshop to replace RPRATsprojects with LPRATs

10 Submission of consolidated revised LGUs

LPRAPs/ LDIP to RPRATs togetherwith Sangunian Resolution and

highlights of LPRAT meeting torevise LPRAPs

11 Submission of consolidated list of RPRATsvalidated projects to DBM

12 Endorsement of proposed GPB DBMProjects to participating agencies ______________________________

13 Integration of GPB Proposals with DBM and Agency CentralNGA budget proposals in the NEP Offices

14 Submission of agency proposed Participating agenciesbudget to DBM

November

15

November

16-

December

15

November

30

December

20

December21- January

15

January 16

January 21

January 31

February 1-

March 31

To be set by

DBM

3. GOVERNING CLAUSE. Issues arising from the implementation of this Circular shall

be resolved by the oversight agencies of the program.

14. REPEALING CLAUSE. All provisions of existing issuances that are inconsistent withthis Circular are hereby repealed/amended accordingly.

22

IS. EFFECTIVITY. This circular shall take effect immediately.

For compliance.

I fl\\\NJULSOL1MAN

JOSE EJiSRO M. ROCA RA

Secretary, DSWD

Lead Convenor, NAPC

-

FLORENCIO B. ABAD

Secretary, DEIM

Secreta , DILG

!II1ItIIIIIIIIIThIIllh!IQILG-OSFCOUTGOIN6 14-03808

I.,

23