Sangguniang Kabataan Reform Act

of 2015 - Salient Features

These annotations shall focus on the important
provisions and principles of RA 10742 which shall be
known as the “Sangguniang Kabataan Reform Act of
2015”. The same was approved January 15, 2016 and
shall take effect fifteen days after the completion of its
publication in the Official Gazette or in any two
newspapers of general circulation.
What is Katipunan ng Kabataan?
Katipunan ng Kabataan is a policy-making
body which decides matters affecting the
youth in the barangay. The same is considered
to be the electorate of the Sangguniang
Kabataan.
 Composition of Katipunan ng
Kabataan
In order to be part of the Katipunan ng Kabataan, the
following requirements shall be present:
a.) Citizen of the Philippines. (This requirement does not
exclude those who are not natural-born citizens thus,
naturalized citizens are not prohibited).
b.) Resides on a barangay for at least six (6) months.
c.) Must have age of at least fifteen (15) but not more
than thirty (30) years of age.
d.) Duly registered in the list of the Commission on
Elections (COMELEC) or on the records of the
Sangguniang Kabataan secretary.
 What is Sangguniang Kabataan?
Sangguniang Kabataan, in simple sense, is considered as the officials ofthe
Katipunan ng Kabataan which is vested by this said Act with powers and
functions to wit as follows:
(1) Formulation of a three-year Development Plan; (2) Approve annual
budget; (3) Promulgate resolutions; (4) Initiate and implement programs
and projects in the promotion of the general welfare, development and
empowerment of the youth; (5) Hold fund-raising activities in line with the
Development Plan; (6) Create regular and special committees as it may
deem necessary in carrying out its programs and activities; (7) Submit
annual and end-of-term program accomplishments and financial reports;
(8) Partner with Local Youth Development Council; (9) Adopt and
implement a policy on full public disclosure of all its transactions and
documents involving public interest; and (10) Exercise such other powers
as may be prescribed by law, ordinance, or delegated by the Sangguniang
Barangay or the Commission.
 Creation and Election of the
Sangguniang Kabataan.
Sangguniang Kabataan in each barangay is composed of:
(1) Chairperson which is elected by the Katipunan ng
Kabataan;
(2) Seven members which shall also be elected by the
Katipunan ng Kabataan;
(3) Secretary which shall be appointed by the the Chairperson
among the members of the Katipunan ng Kabataan; and
(4) Treasurer which shall also be appointed by the
Chairperson among the members of the Katipunan ng
Kabataan.
 Qualifications of a Sangguniang
Kabataan Official
The following are the qualifications of an official of the
Sangguniang Kabataan:
(a) Must be citizen of the Philippines;
(b) able to read and write Filipino, English or the local
dialect;
(c) qualified voter of the Katipunan ng Kabataan;
(d) resident of the barangay for not less than one (1) year
immediately preceding the day of the election;
(e) at least eighteen (18) years but not more than twenty-
four (24) years of age on the day of the elections;
 Disqualifications:
1) He must not be related within the second civil
degree of consanguinity or affinity to any
incumbent elected national official or to any
incumbent elected, regional, provincial, city,
municipal or barangay official in the locality
where he or she seeks to be elected; (which is
called the anti-dynasty clause)
(2) He must not have been convicted by final
judgment of any crime involving moral turpitude.
 What is the Term of Office of the
members of the Sangguniang
Kabataan?
The term of office of the members of the SK is
a fixed term of three years. The term of the
secretary and treasurer shall be coterminous
with the appointing authority .
 Chairperson of the Sangguniang
Kabataan
The Chairperson of the Sangguniang Kabataan
carries with him different duties and obligations
than those of its members. Under the said law,
he shall be automatically serve as an ex officio
member of the Sangguniang Barangay upon
assumption of office as such, he performs and
exercises powers and responsibilities the same
with what members of the Sangguniang Barangay
has. And by default, he is tasked to head the
Committee on Youth and Sports Development of
the Barangay.
 Powers and Functions of the
Sangguniang Kabataan Chairperson
The Chairperson of the Sangguniang Kabataan is vested by law with bundle of
powers and functions to wit therefore:
(1) He shall call and preside over all meetings of the Sangguniang Kabataan;
(2) take the lead in the formulation of the Comprehensive Barangay Youth
Development Plan and in the preparation and implementation of the
Annual Budget Youth Investment Program; (3) ensure the implementation
of policies, programs and projects; (4) sign all required documents and
warrants drawn from the Sangguniang Kabataan funds for all
expenditures; (5) exercise general supervision over the affairs and
activities of the SK and Katipunan ng Kabataan; (6) appoint the secretary
and treasurer. Provided that thee appointee must be a member of the
Katipunan ng Kabataan and that the appointment is concurred by the SK;
(7) coordinate with the Sangguniang Barangay and other youth
organization; and (8) exercise such powers and perform such other duties
and functions as may be prescribed by law or ordinance.
 Privilege of Sangguniang Kabataan
Chairperson as an ex officio member
The service rendered by the Chairperson of the SK
is not without any compensation and incentives
thus the law provides that he shall be entitled to
a pro-rata honoraria for every session of the
Sangguniang Barangay he or she has attended.
He also enjoys the same privileges which are
enjoyed by other Sangguniang Barangay officials
under this Act subject to such limitations
provided herein.
 Functions of the SK Secretary
The SK Secretary must: (1) keep all the records of
the Katipunan ng Kabataan which includes the list
of its qualified members, youth policies, studies,
research and registry of youth and youth-serving
organizations in the barangay; (2) prepare and
keep all the minutes of all assemblies of the
Katipunan ng Kabataan and of all the meetings of
the SK; (3) cause the posting all the resolutions
approved by the SK; and (4) perform such other
duties and discharge such other functions as the
SK Chairperson may prescribed or direct.
 Functions of the SK Treasurer

The SK Treasurer shall: (1) take custody of all SK property funds; (2)
collect and receive contributions, monies, materials, and all other
resources intended for the SK and the Katipunan ng Kabataan; (3)
serve as cosignatory in all withdrawals from the SK funds and
disburse funds in accordance with the annual budget and
supplemental budget as the case may be; (4) certify to the
availability of the SK funds whenever necessary; (5) submit to the
SK and the Sangguniang Barangay certified and detailed statements
of actual income and expenditures at the end of every quarter; (6)
render report during the regular Katipunan ng Kabataan assembly
on the financial status of the SK; and (7) perform such other duties
and discharge such other functions as the SK Chairperson may
prescribe or direct.
 Privileges of the any Sangguniang
Kabataan Officials

Sangguniang Kabataan officials are vested with privileges by the law provided
however, that a member, whether elected or appointed, should maintain his good
standing during his incumbency.
1.) Exemption from payment of tuition and matriculation fees - a member is exempted
from payment of tuition and matriculation fees while enrolled in any public
tertiary school including state colleges and universities and those locally funded
public educational institutions within or nearest their area of jurisdiction.
Reimbursement of said exemption shall be done through the DILG.
2.) Exemption from taking NSTP-CWTS subjects - a member is exempted from taking
the National Training Program-Civic Welfare Training Service subjects. However, as
a substitute duty, he shall submit written reports, preferably with photographs , or
other documentations of their participation in the implementation of programs,
projects and activities as outlined in the Comprehensive Barangay Investment
Program. Failure of to do so will disqualify him from availing such exemption.
(d) such travel is supported by duly approved travel order.
3.) Excused to attend class in case of meeting - a member is excused from
attending his regular class whileattending the regular or special SK
meeting and Sangguniang Barangay sessions, in case of the SK
Chairperson. Provided, a certification of attendance shall be issued by
the SK secretary, attested by the SK chairperson and duly noted by the
Punong Barangay and shall be submitted to the concerned faculty
member and the dean of the educational institution. In case of the SK
secretary, the SK chairperson shall issue the certification duly noted by
the Punong Barangay.
4.) Philhealth benefits - a member is provided by the National
Government with Philippine Health Insurance Corporation coverage.
5.) Travel reimbursements - a member is entitled to receive actual
travelling reimbursements provided, that (a) it is authorized by law,
(b) subject to the availability of funds, (c) such travel is directly related
to the performance of their functions as SK official and
 Are the members of the SK be
considered Persons in Authority?
Sec. 17 of this Act, and for purposes of the
Revised Penal Code, the SK chairperson and
members in each barangay shall be deemed
as persons in authority in their jurisdiction.
 Suspension and removal from office
In order that any elected official of the SK may be suspended for not more
than six (6) months or removed from office he must be suspended or
removed through due process has been exercised, that a majority vote of all
members of the Sangguniang Bayan or Sangguniang Panlungsod and that the
any of the grounds under the law is present. The decision of the suspension
or removal is final and executory.
Grounds for suspension and removal
1. Absence from the regular meeting without valid caused for 2 consecutive
times or accumulated absences of 4 within a period of 12 months.
2. Failure to convene the regular Katipunan ng Kabataan meetings for 2
consecutive times.
3. Failure to convene the regular SK meetings for 3 consecutive months. This is
only applicable to the SK chairperson.
4. Failure to formulate the Comprehensive Barangay Youth Development Plan
and the Annual Barangay Youth Investment Program, or approve the annual
budget within the prescribed period of time without justifiable reason.
5. Failure to implement programs and projects outlined in the Annual Barangay
Youth Investment Program without justifiable reason.
6. 4 consecutive absences during the regular
Sangguniang Barangay sessions witout valid
cause. This is only applicable to SK chairperson.
7. Deliberate failure to attend the Mandatory and
Continuing Training Program.
8. Conviction by final judgment of a crime involving
moral turpitude and violation of existing laws
against graft and corruption and other civil service
laws, rules and regulations; and
9. Failure in the discharge if his or her duty or has
committed abuse of authority.
Pederasyon ng Sangguniang Kabataan
The law provides that an organization of the Pederasyon ng mga Sangguniang Kabataan shall be
established. In municipalities, the Pederasyon shall be known as Pambayang Pederasyon ng
mga Sangguniang Kabataan and shall be composed of the SK chairpersons of barangays in
the municipality. In case of cities, the Pederasyon shall be known as the Panlungsod na
Pederasyon ng mga Sangguniang Kabataan which shall be composed of the Sangguniang
Kabataan chairpersons of barangays in the city. In case of provinces the same shall be known
as Panlalawigang Pederasyon ng mga Sangguniang Kabataan and shall be composed of the
convenors of the Pambayan and Panlungsod na Pederasyon ng mga Sangguniang Kabataan.
The Pederasyon ng mga Sangguniang Kabataan shall have (a) a President, (2) Vice President, (3)
Treasurer, (4) Secretary, and (5) such officers as they may deem necessary. The said officers
shall be elected from among themselves in Pederasyon.
The suspension and removal of the officers of the Pederasyon shall adhere not necessarily as
identical to the procedures set forth in the SK officials. The DILG and the COMELEC shall
jointly issue guidelines sixty days upon the effectivity of this Act, and the same shall govern
the suspension and removal process of the Pederasyon.
 President of the Pederasyon ng
Sangguniang Kabataan as a member
in the Sanggunian and Local Special
Bodies
The President of the Pederasyon ng Sangguniang Kabataan shall serve as
ex officio member of the Sangguniang Bayan, Panlungsod and
Sangguniang Panlalawigan as the case may be. The same shall be the
chairperson of the Committee on Youth and Sports Development in the
said Sanggunian. He shall also be a regular member of the Committees
on Education, Environment, Employment and Livelihood, Health and
Anti-Drug Abuse, and gender and Development.
The President of the Pederasyon shall also serve as an ex officio member
of the (1) Local School Board, (2) Local Council for the Protection of
Children Local Development Council, (3) Local Health Board, (4) Local
Tourism Council, (5) and Local Peace and Order Council.
 Duty to convene the LYDC

The President of the Pederasyon shall

convene the LYDC every three (3) months to
conduct consultations with Youth
organizations.
Mandatory and Continuing Training
Programs
Mandatory and Continuing Training Program is a
program undertaken by the Commission in
coordination with the DILG. Any SK official
whether elected or appointed, or any member of
the LYDC must undergo to the same before he or
she can assume office. Deliberate failure to
attend the said training shall constitute sufficient
ground to disqualify said SK official or LYDC
member or subject to disciplinary actions.
 Election
The date of SK elections shall be synchronized
to that of the barangay elections and shall
subsequently held every three (3) years
thereafter.
Repealed laws by virtue of this Act
• (1) Sections 329, 423-439 of The Local
Government Code; (2) Section 10 paragraph O
of Youth in Nation-Building Act; (3)Sections 1
and 2 of “An Act emending Republic Act No.
9164, Resetting the Barangay and
Sangguniang Kabataan Elections, and for
Other Purpose”, (4) all other laws, presidential
decrees, executive orders letters of
instruction, rules and regulations or portions
thereof which are inconsistent with this Act .
 Appointment of SK Secretary and
Treasurer
The SK Chairperson, with the concurrence of
the whole SK, appoints a secretary and a
treasurer from the members of the KK.
A resolution should be created and signed by
the majority of the Sanggunian for the
appointment to take effect.
Copies of the resolution should be furnished the
Office of the LGOO.
 E. Term of Office
Elected SK officials shall each hold office for a
fixed term of three (3) years from day of
election, unless sooner removed or resigned,
and are eligible for re-election if in possession
of all the qualifications and none of the
disqualifications.
The SK Secretary and the SK Treasurer are
coterminus with the appointing authority,
unless either one of them is sooner removed.
An SK official who, during her/his term of
office, exceeds the age of 24 years is allowed
to serve the remaining portion of her/his
term.
 Planning
is a process of :
• - preparing for an activity or path that an
organization wishes to complete
• - deciding in advance what is to be done by
whom, and the steps to be taken in order to
• attain the objectives or goals of the
organization
Participatory Development Planning
• is a process through which stakeholders can
influence and share control over development
initiatives, and over decisions and resources
that affect themselves
• The Local Youth Development Plan(LYDP)
Is formulated with due consideration for the
corresponding provincial, city, or municipal
youth development plan anchored on the
Philippine Youth Development Plan (PYDP)
and the local development plans (LDPs) of the
LGU concerned
The participation of both SK and KK — including
the youth subsectors — is vital in the making
of decisions over their own affairs. This is not
only to make the process participatory but
inclusive as well and to instill ownership and
commitment.
 The Comprehensive Barangay Youth
Development Plan
• Is the three-year comprehensive youth
development plan of the barangay as
formulated by SK in consultation with and in
concurrence with the kk and anchored on the
PYDP and other LYDPs
• Is formulated within three (3) months of
assumption to office
• The participation of both SK and KK —
including the youth subsectors — is vital in the
making of decisions over their own affairs.
This is not only to make the process
participatory but inclusive as well and to instill
ownership and commitment.
 The Annual Barangay Youth
Investment Program (ABYIP)
-Is an annual program based on the CBYDP
• Contains the program, project, and activities
(PPAs) and corresponding cost of each, as well
as a cash flow
• chart to show the approximate timing needed
for the release of corresponding funds
 SK Budgeting
• Expense Classification in Budgeting
• Personal Services (PS) – used for salaries and
personnel benefits
• Maintenance and Other Operating Expenses (MOOE)
– used for operational expenses like supplies and
materials, rental of offices, trainings and seminars
and other operating expenses
• • Capital Outlay – equipment, investment outlay,
livestock and crops outlay, building and structure
outlay (large allocations for purchase of costly items
or obligations for amortization
• SK Annual Budget has two (2) parts:
• 1. Income Portion consists of the beginning
balances which are the unappropriated and/or
unexpended amounts of revenues and receipts
of prior calendar years carried forward to the
budget year, and estimates of income as
certified by the Barangay Treasurer (BT).
• 2. Expenditure Portion consists of estimated
expenditures which are the total appropriations
covering Current Operating Expenditures and
Capital Outlays.
• The SK’s budget cycle is synchronized with
that of the barangay
 Steps in Accessing the SK Fund

• After the Barangay Budget has been approved

and allocated, the SK can begin accessing
funds for planned projects and activities.
• Note that the SK fund is separated from all
other budget claims in the barangay.
• 1. Develop activity design. The SK must first
develop an activity design signed by all the SK
members. It details the processes involved in a
planned activity. The activity design is attached
to the resolution that the SK will submit
• 2. Submit resolution. The resolution should
state that the funds will be used for the planned
activities. Three (3) copies must be produced
and given to the: PB; BAC; and BT.
• 3. Prepare DV. On behalf of the SK
• the PB prepares the disbursement voucher (DV),
to which the SK’s activity design is attached. All
budget claims are certified and approved under
the PB’s name, his name signifying his approvalof
claims chargeable against the SK fund
4. Submit Resolution and DV. These documents
are submitted to the Sangguniang Panglungsod/
Bayan. The city/municipal accountants and
auditors process the review or approval. This
may take some time because of the number of
officers who need to sign the documents.
5. Turnover of funds. The BT is the one who
receives the check and encashes it at the
bank. She/he must turn over the cash to the
SK Chairperson.
The SK Chairperson signs a voucher showing
• that he or she has received the cash. She/he
turns over the cash amount to the SK
Treasurer. The SK Treasurer deposits the
amount in the SK bank account.
• The SK Chairperson signs a voucher showing
that he or she has received the cash. She/he
turns over the cash amount to the SK
Treasurer. The SK Treasurer deposits the
amount in the SK
 Steps in Opening a Bank Account
The SK needs to open a bank account to keep
track of its finances and to ensure fund safety.
1.Pass a resolution indicating the account
signatories The signatories are two to three
(2-3) persons who will sign bank-transaction
2.documents such as those reflecting deposits
withdrawals, and any other bank- related
activities. Their signatures will be required on
all bank documents such as deposit
2. Submit the necessary documents/ requirements to a government
bank (i.e. Landbank of the Philippines)
Duly approved resolution; must be signed by
the majority of the members
For each signatory, submit:
o Certified true copy (photocopy) of the Certificate of Incumbency
from DILG.
• o Copy of the Oath of Office from the required two (2) signatories
(the president and the treasurer)
• o Two (2) copies of latest ID pictures (sizes may
• be 1”x1” or 2”X2”)
• o Photocopy of Taxpayer Identification Number (TIN) Card of the
signatories.
3. Make sure that the account created would need
at least two (2) signatures for every
transaction.
• The two (2) duly authorized signatories are
the SK Chairperson and SK Treasurer at the
barangay level and the SK Federation
President and Treasurer at their respective
levels.
 General Accounting Policies

Observe the following guidelines in the accounting of SK

funds:
• Define the SK fiscal year as beginning on
January 1st and ending on December 31st of each
calendar year, in synchrony with the barangay fiscal
year and budget period
• Use the SK bank account for keeping track of SK
finances and for keeping funds safe
• Keep a simple bookkeeping system in recording
SK accounts
• Maintain records to monitor and control approved
appropriations and obligations; use a cashbook and a
record book
• Record cash receipts and payments, including bank
deposits and withdrawals, in the cashbook and record
non-cash transactions in a record book
• Maintain and update the cashbook daily
• All collections of the SK accrue to the SK fund unless
otherwise provided by law
• All lawful expenditures and obligations incurred
during a fiscal year shall be taken up in the
 in the accounts of that year
• Liabilities are recognized at the time goods
and services are accepted or rendered and
supplier/ creditor bills are received
• Record property, plant, and equipment (PPE)
when actually received
• Record all borrowings and secured loans in a
• record book using the appropriate liability accounts
• Petty Cash may be authorized to the credit of the SK treasury in an
amount not to exceed twenty percent (20%) of the funds available or to
the maximum amount of cash accountability under the bond determined
by the SK, such amount not to exceed ten thousand pesos (P10,000.00),
whichever is lower
• Prepare the month’s bank reconciliation statement upon receipt of the
corresponding bank statement
• In the absence of any cost at the time of receipt, record grants and
donations in kind at appraised value using the appropriate asset accounts
and subject to depreciation. Donations in kind must be covered by an SK
resolution accepting the donation and a corresponding deed of donation
• After deducting a residual value equivalent to ten percent (10%) of the
cost of the property/ equipment, property and equipment used in SK
operations shall be subject to depreciation
using the straight line method
• The SK Treasurer reports, as part of his/her
accountability, on all accountable forms
(official receipt, checks, cash tickets, petty
cash voucher, etc)
 Remember!

• Failure to account for funds spent may be

ground for administrative, civil, or criminal
proceedings against erring SK official(s).
• The SK Fund comes from the Barangay Fund,
thus the SK through the SK Treasurer must
properly account for the use of said Fund to
the BC.
• The SK Funds generated from its own
fundraising activities need to be properly
accounted for.
Aside from the annual and end-of-term
financial reports, the SK Treasurer should
submit to the BC through the BT detailed
statements of actual income and expenditures
at the end of every fiscal year.
 Recording Transactions
• Recording of all monetary transactions or other
resources are done using cashbook and record
book.
• Financial transactions are analyzed and recorded
as cash or non-cash transactions.
• Transactions have to be identified, approved,
sorted, and stored in a manner that will facilitate
retrieval of transaction data from the
organization’s financial statements and other
reports.
• The following are some of the financial transactions:
Purchase of supplies with cash
Purchase of merchandise on credit
Rent of office space
Buying equipment
Honorarium and wages
For each transaction, there must be a document that describes the
transaction. Documents include sales invoice, sales receipt, supplier
invoice, supplier payment, bank payment, and disbursement
voucher. These accompanying documents provide the audit trail of
each transaction and are an important part of maintaining accurate
records in the event of an audit.
Financial transactions are recorded using simple Bookkeeping
 Financial Reporting

The SK through its Treasurer must report all its

financial transactions and submit annual and
end-of-term financial reports.
Before submission of a report, the SK through
its audit committee, if there is one, must audit
the final report prepared.
Types of Financial Statements that the
SK may prepare:
Balance sheet, referred to as statement of financial position – reports on the organization‘s assets
(i.e. economic resource both tangible and intangible owned or controlled to produce value that
can be converted to cash), liabilities (i.e. obliged to make to other entities as a result of past
transactions or other past events), and equity (i.e. the difference between the value of the assets
and the cost of the liabilities of something owned) within a given period;

income statement, also known as a statement of comprehensive income,

statement of revenue and expenses, profit and loss (P&L) report – reports on
income, expenses, and profits over a period of time. P&L statement provides
information on the operation of the organization which includes sales and
various expenses incurred during the stated period .

Equity statement or statement of retained earnings – a statement of

changes in equity for the period.

cash flow statement– report on cash flow activities of the organization,

particularly the operating, investing, and financing activities.
 Disbursement
Is the payment from fund or account in the form
of cash, check, or voucher
Remember to disburse funds only in
accordance with the approved budget!
 Specific Policies and Procedures
• • Disbursements are generally made in the
form of cash or checks drawn against the
depository accounts of SK.
• Disbursements are made only when
authorized as reflected on corresponding duly
certified and approved. Disbursement
Voucher (DV) and Petty Cash Voucher (PCV).
• The SK Treasurer certifies the DV to acknowledge
the completeness and propriety of the
supporting documents and to signify the
availability of funds for the purpose.
• The SK Chairperson certifies to the validity,
propriety, and legality of the transaction and
approves payment of the corresponding DV.
• Disbursements in cash are made only from the
cash advances granted for the purpose (e.g. to
pay wages, honorarium, etc.) and petty cash.
 Cash Advances for Travel and other
Special Purpose
• The grant of cash advance for both local and
foreign travel is governed by the provisions of
Executive Order No. 298, as amended.
• Upon return to official station, liquidation
should be completed within 30 days for local
travel and 60 days for foreign travel.
Liquidation documents include certificate of
travel completed, certificate of appearance,
used tickets, official receipts, etc.
 Procurement
• The SK Treasurer serves as the Supplies and
Property Officer of the SK and is responsible for
the receipt, upkeep, issuance, and physical
inventory of SK property.
• She/he adopts a system of procurement
applicable to SK.
• If a bidding process is needed, the SK shall enact
a resolution requesting to undertake bidding
through the existing BAC of the barangay.
 Fundamental Principles
All procurement of SK, in all cases, are governed by the
following principles stipulated in R.A.9184, Section 3:
Transparency in the procurement process and
in the implementation of procurement contracts.
Competitiveness by extending equal opportunity to enable
private contracting parties who are eligible and qualified to
participate in public bidding.
System of accountability wherein both the public officials
directly or indirectly involved in the procurement process
as well as in the implementation of procurement contracts
and the private parties that deal with government are,
when warranted by circumstances, investigated and held
liable for their actions.
Public monitoring of the procurement process and of the
implementation of awarded contracts with the end in
view of guaranteeing that these contracts are awarded
pursuant to the provisions of existing law.
It is unlawful for public officials like the SK members or
their relatives — to within a certain civil degree of
consanguinity or affinity — to enter or to have any
interest in the procurement of any supplies, materials,
equipment, or property to be used in any project and
activity of SK.
 General Rule in Procurement
The acquisition of supplies and property of SK are governed by the pertinent provisions of the IRRs of:
R.A. 7160 or the Local Government Code of 1991 on Local Government
Supply and Property Management, whether items are to be supplied or
purchased from a local or foreign supplier;
R.A. 9184 or the Government Procurement Reform Act which provides for
modernization, standardization, and regulation of the procurement activities
of the GOP.
At the barangay level, if the Approved Budget for the Contract (ABC) is more
than PhP50,000.00, public bidding is mandatory.
If ABC is PhP50,000.00, an alternative method of procurement must be
resorted to as prescribed by existing laws.
The procuring entity adopts competitive bidding as a general mode of
procurement. (Sections 10 and 48.2 1st par. Revised IRR of R.A. 9184).
The procuring entity on behalf of SK is the Barangay Council. Bidding
proceeds through the BAC of the barangay.
The SK must abide with the BAC in deciding the winning bids, on questions of
awards on procurement, and regarding disposal of property of SK.
The payment of claims under a contract awarded not strictly in accordance
with the prescribed modes of procurement of supplies, materials, and
equipment is considered an irregular expenditure.