Republic of thc Philippines

DLDAP.TIi.{EI.{T OF f'HE II-JTERIOR AI.{D LOCA-T, GOVER]{I4ENT

A. Francisco Gold Condominium ll Bldg, EDSA
corner Mapagmahal Sr., Diliman, O-qezon City

LEGAL SERVICE

DILG OPINION NO. 43 S. 2OTO

12 April 201O

MR. OSCAR R. AMADOR, JR.

LGOO V
Municipal Operations Office
Department of the Interior and Local
Government
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Dear Mr. Amador, lr.:

This has reference to your earlier letter requesting for "legal advice an
the validity of the action of Hon. Natividad R. Magbalon, M.D.,
Municipal Mayor of Milagros, Masbate relative to her issuance of an
unnumbered Memorandum Circular dated May 4, 2009 requiring the
Accountant's Advice of Barangay Check Disbursement prior to
encashment of checks with depository banks."

This query arose because the above action seemed to run counter
against the provisions of Commission on Audit (COA) Circular No.
2002-004' dated 03 October 2002, the pertinent portion of which
states:
"hr uieur thercof, this Cumni.ssion heteby retsokes
COA Circular No.94-004, ilntcil fnnuanl 28, 1%)4, atil
onlers tltt discotttiruunrce of tlrc t$e of lhe
Accotntant's Ailaice ,f Barangay Check
Disltursen rcrfts presaib ed thereiu.. Ilnrntgay oJfici.n Is
concenie.d nrc remirded tlmt it
is tlrci.r ilrty trtd
responsibi.Iitlt to see to it that accorurthtg nnil
nadi.ting ntles and re.galatiorts, parti.cu.In y those on
tlrc dishurcanents of frtrrrls, ue propnly obserued."

In resolving the matter, this Department summed up the issue to:

..ON MATTERS PERTAINING TO BARANGAY
Errr r rr-t
Flll'.lllVlAl- r r rFTFi FEFTT rrtEA
lA\JlEl/\rnEJ, rrrur-lJr
YCnlln CLI r t I
JII.ILL
PREVAIL -- A MEMORANDUM CIRCULAR
ISSUED BY A LOCAL CHIEF EXECUTIVE OR
AN ISSUANCE BY THE COMMIS5ION ON
AUDIT MANDATED SPECIA,LLY TO
 o
IMPLEMENT THE FINANCIAL PROVISIONS
OF THE CODE"

In particularlyadclressing the issue, we are of the opinion that the

subject COA Circular 2OO2-OO4 prevails over the unnumbered
Memorandum Circular issued bv the Municioal Mavor oertaining to the
Accountant's Advise of Barangay Check Disbursement'

The existinE lalvs and jui-isprudence suppoi-i ihis Depai-tmeni's view.

The act of the local chief executive in issuing the subject Memorandum
Circular dated 04 May 20U9 is in consonance with Section 32 of the
Local Government Code ('Code') which provides that:

"Sechon 32. Ctty and Municipal Supenrision

oaer Their Respectizre Barnngays. The city or -
mtmicipnli$, th.rough the cihl or ntttricipn! rlttziior
concerned, shall exercise ganeral supettsision ouer
component barangatls to ensute thnt said barangaqs
act zoithin the scope of theb prescribed pou)ers
anil functions."

Thus, it is very explicit that the supervision referred thereto is a

general supervision over the component barangays. This pouter of
gcnernl vtVerzision is hnsed nn the gencrnl thenry lhnt locnl gnztcrnwcnls hntn
extra-souereign pozoer status and they can be subject to general superuision by the
central gouernment.1 The power of supervision, on the other hand, is
defined as " the poztter oJ a superior oJficer to see to it tlmt lozuer otficers petJorm
their ftnctions in nt:cordance zuith law, "'

the subject matter of Memorandum Circular dated 04 May 2009

peftains to the use of the Municipal Accountant's Advise for every
barangay check disbursement made, and was issued in the exercise bv
the local chief executive of her power of general supervision over the
barangay components.

However, on matters governing barangay budget, funds, and financial

procedures, Sections 329 to 334, Article II' of the Local
Government Code are relevant and controlling. as this Code
expressly mandated the Commission on Audit (COA) to prescribe the
procedures relative to barangay financial matters. We cite the
cjppiiUdUi\j
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LllE Ul>PvslLllrl | !rl
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-',\j^-+ -.!^F!r.
9uEly.

"
\tlrcn 334. Bnrongny f'inaucinl I'rocedures.-

Center and l-ocalitles: l)ynamrcs ol lntergovernmental Relatlons ,

http: / / www.logodef. org/ {ile / ssc/vol3/ Centerandl-ocalities-Dynamicsoflntergovernme
ntalRelations.pdf
Onon vs t'ernandez, G.R. No. 139413,3I January 20Ol
Barangav Budgets

'2
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(r) I"trc .firrondnl rcL'ords o.f the bornngay slrttll ht:

kept in ttrc ollice ol the city or muniripnl orrr)ttttttt'tt i't
sinptiltd ma fl's l.,1..o iltd by llrt Cotttrrissittn' ort
'rct
Iufit't't; itf llt Lit;iiitt is::it;ti on Autlit sltrti!
Attlit. lltprrsi:rr
ttullit such acrc trts nnmmlly or as often ns nny lte
n?rcssnry mril nn.kc n ra7orl qf t!t( tltdit !t'' tl,?
sn.nggu.ni.n.ng pnnlungsad or sn.nggrninng bnynn., n.s llrc
ffise nry bt. ur Atrdit slnll prescibe
Tlrc Countrissiort
and ptt into effect sinrytlified procedwes lor
hnrnngt y firtrnrces roithirt si.t (6) rtrorrllrs follotoitrg llrc
cfft:<:tktity ol this Cotlc." iemphasis and underscoring
supplied)

In pursuance of said mandate, the Commission on Audit (COA)

issued Circular No. 93-395 providing for the use of the'Barangay
Accounting Manual'. This was later on replaced by the 'Systems and
Procedures Manual on the Management of Barangay Funds ancl
Property and Accounting System Manual for Barangays under the New
covernment Accounting Sy'stem (iu"GAS)' as pi'ovi'jed ijndei' COA
Accounting Circular No. 2006-002 dated 19 December 2006.
'i
o eiucidaie iuitiier llie opinion of this Department, we cite the case
of the ,{afibnal Liga ng mga Barangay vs. Paredesa wherein the
Supreme Couri explained that the porver of supervision does not
cover the Dower of control:

, "Officers i;t cotftrcL laq daari tlie riiles iii tlic

doing of nrr trt't. If they nre not -folloznerl, if is
r.Ii-qt:n,tioun rv ott |tis pgrt to order thc nct trndour or
redone bry lis sultoriiuste or lrc nwy tnett decide to do
it hintsall. Supentision does not cozter such
frtititority. Sriperuising officers nm'eiy se.e to it
that the rules nre follozped, bltt hc ltinrsel-f does nof
Itrl Llotott strdt ntk's. tror dctcs lrr lutrtt'tltc discrction lt't
modi.fy or replace them. If the n.les nre not ohsented,
lrc ntny ttrdcr tlrc work done Ltr re-dotrt. to ctufonu .for
to tlrc. prcscribttl rules. ile anntot prest:ribe his tnon
tltonnrr tlu, rloitrg o.f tlu, nL't." (emphasis supplied)

Thus, while a local chiei executive is not preclu(ieci f rorii exei cisiiig Liie
power of general supervisicn over the component barangays of a
citv or municioalitv to ensure that thev perform their duties
accordingly, the power or authority to prescribe rules or procedures
gove!'ning barangay financial matters is not within the ambit of such

4 G.R. 130775, 27 Sentember 2O04

?
executivepower.Thecodeitse|fsoprovidesthatitistheCommission
on Audit (COA) which has that dutY.

Trusting that the foregoing settles your concerns with finality'

Very truly Yours,

By Authoriry of the Secreiary:

/t^ t.-.'-- .-.---

- -x z-
ATTY. JEStJS B. DOQUE IV
Director IIl/ r

Copy Furnished:

Hon. Blandino M. Maceda

Regional DirectLtr
DILG Regional offic€ V

PD Renato S. Alaurin
DiLG Provincial operations unice
Masbate City

Hon. Natividad M. Magllalotl, M D.

Municipal Mayor
Milagros, Masbate

Mr. Jaime M. Del Prado

COA State Auditor UI (Audit Team Leader)
Team 1-Masbate

The Manaqer
DBP Masbate Branch Omce
Masbate City

LS:55: ins