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DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012dated December 20, 2012

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012

DEFINITION:

An approach to formulating the budget proposal of national gov’t agencies, taking into consideration the development needs of poor cities / municipalities as identified in their respective local poverty reduction action plans that shall be formulated with strong participation of basic sectors and civil society organizations.


OBJECTIVES:

To make the planning and budgeting processes of both local and national governments more participatory;

To strengthen the convergence of the delivery of national services in the community;

Provide a balance in the identification of priorities;


FOCUS LGUs:

1,233 LGUs – “Poorest of the Poor”


FOCUS LGUs BY REGION:

REGION NO. OF LGUS

MAGNITUDE OF POOR

CAR 54 301,487NCR 10 305,864I 68 785,199II 49 374,187III 52 516,074IV-A 52 510,784IV-B 62 841,001V 109 2,120,466VI 115 1,771,494

REGION NO. OF LGUS

MAGNITUDE OF POOR

VII 123 2,226,788VIII 115 1,447,679IX 69 1,313,573X 87 1,691,593XI 48 1,254,229XII 49 1,445,109XIII 64 1,027,454ARMM 107 1,349,944TOTAL 1,233 19,282,925


Participating Agencies (12):• Department of Agrarian Reform (DAR)• Department of Agriculture (DA)• Department of Education (Deped• Department of Energy (DOE)• Department of Environment and Natural Resources

(DENR)• Department of Health (DOH)• Department of 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 Electrification Administration (NEA)


PROCESS:

1. Preparation for Poverty Reduction Planning and Budgeting

Includes the following activities organized by the NAPC and DILG in coordination with RPRATs:

Civil Society City or Municipal Assemblies

Selection of the LPRAT co-chairperson and CSO signatories of the LPRAP

Updating and validation of relevant economic and social data


PROCESS:

2. Conduct of LPRAP Workshop

LCE to constitute / reconstitute the LPRAT

LPRAT shall conduct workshop/s to formulate the LPRAP

o Includes review and validation of latest relevant data and relevant sections of CDP, CLUP, ELA and AIP

o Should be conducted with the active participation of CSOs, basic sector representatives and other non-government stakeholders


PROCESS:


Considerations in the Preparation of the LPRAP:

o Formulated with the technical assistance from the RPRAT

o Should incorporate specific poverty reduction strategies to be undertaken by the LGU and other stakeholders, including NGAs

o Should also incorporate good governance, gender mainstreaming and climate change mitigation/ adaptation strategies


PROCESS:



o Should reflect priority poverty reduction projects that will submitted to the NG for funding (using format under Annex B-1)

o Priority projects are identified through a vote among members of the LPRAT


PROCESS:



o All projects submitted to the NG must contribute to the following:

1. Provision of Basic Social Services and Attainment of the Millennium Development Goals, including poverty reduction;

2. Hunger Mitigation and Elimination;

3. Job Generation and Inclusive Local Economic Development; and

4. Climate Change Adaptation / Mitigation and Disaster Preparedness


PROCESS:



o The following projects may not be proposed as BuB Projects:

1. Expansion of Pantawid Pamilya Program beneficiaries2. Housing Projects3. Major Flood Control Projects4. Vaccination Program5. National Health Insurance Program6. Projects related to Law Enforcement, Fire Protection and Jail Management


PROCESS:




7. Construction of City/Municipal Halls and other Multi-purpose Buildings

8. Construction of new school buildings and classrooms and teacher deployment


PROCESS:




9. Procurement of Furniture and Fixtures10. Purchase of Motor Vehicles11. International Trainings / Scholarships


PROCESS:



o LPRAT must allocate 80% of their budget cap for projects included in the Menu (Annex C)

o Remaining 20% may be allocated for new programs proposed by the LPRAT consistent with the NG priorities and the projects not allowed as BuB projects


PROCESS:

3. Endorsement of CSOs

List of priority projects must be approved by the three CSO members of the LPRAT


PROCESS:

4. Adoption of the priority projects by the Sanggunian

List of priority poverty reduction projects must be adopted by the Local Sanggunian before submitted to NG.


PROCESS:

5. Submission of the List of Priority Poverty Reduction Projects

List of priority poverty reduction projects duly endorsed by the CSOs and approved by the Sanggunian shall be submitted to the RPRAT, through the DILG RO

By February 15, 2013


PROCESS:

5. Submission of the List of Priority Poverty Reduction Projects

Submission should include:

o Cover letter signed by the LCE

o List of Priority Projects using format (Annex B-1)

o Project Brief using template in Annex B-2

o Copy of Sanggunian Resolution approving the List of Priority Poverty Reduction Projects


PROCESS:

6. Consolidation of the List of Priority Poverty Reduction Projects by Region

List of priority poverty reduction projects will be consolidated by the RPRAT

Provide consolidated list to RPRAT members and NAPC


PROCESS:

7. Validation and Review of Priority Poverty Reduction Projects by the RPRAT

RPRAT:o Chairperson: DILG Regional Directoro Vice-Chairperson: DBM Regional Directoro Members:

1. Regional Directors of all other Participating Agencies2. Representatives from DOE and NEA3. Regional Director of NEDA4. A CSO representative per province as identified by NAPC


PROCESS:

7. Validation and Review of Priority Poverty Reduction Projects by the RPRAT

The RPRAT shall:

o Meet with the duly authorized LPRAT representative to clarify, modify or replace the rejected project/s

o Ensure that previously rejected projects are finally settled/ replaced before submission to the NAPC and the RDC

o Submit, through the DILG Regional Office, revised list of validated BuB projects to NAPC and the RDC


PROCESS:

8. Integration of the LGU projects in the budgets of participating agencies

• ACOs shall review all BuB projects submitted to them for funding

• ACO shall then incorporate the projects in their “within ceiling” budget proposal which will be submitted to DBM

• All agencies shall ensure that BuB projects are not duplicated in their regular programs, PAMANA program or in the ARMM Stimulus Fund


PROCESS:

9. Provision of Counterpart Funds

LGU CLASS REQUIRED COUNTERPART

Highly Urbanized Cities 30% of project cost

All Other Cities 20% of project cost

1st to 3rd Class Municipalities 15% of project cost

4th to 6th Class Municipalities 5% of project cost


PROCESS:

9. Provision of Counterpart Funds

Counterpart must be sourced from LGU Funds.

Counterpart must be included in the 2014 AIP and Annual Budget

“No Counterpart, No Release of NG Funds.”


PROCESS:

10. Project Implementation

Only the LGUs that meet the following requirements can implement their BuB projects in 2014:

o Recipient of the DILG’s Seal of Good Housekeeping (SGH) based on the 2013 Assessment

o Substantial progress in implementing its PFM Improvement Plan as determined by DBM


PROCESS:


Only the LGUs that meet the following requirements can implement their BuB projects in 2014:

o Technical capability to implement the project, as determined by the concerned participating agency (per project basis)

o No unliquidated cash advances from participating agencies based on existing auditing rules and regulations (per agency basis)


PROCESS:


If LGU is ineligible to implement a BuB Project, the project will be implemented by the concerned NGA

LGUs that poorly implement their BuB projects in 2013 will not be provided funding for their priority projects under the 2014 BuB Program


FUND SOURCE:

Funding for the implementation of BuB projects shall be incorporated by the participating agencies and DBM into the FY 2014 National Expenditure Program

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 1, series of 2012, March 2, 2012

KEY PLAYERS:


ROLES & RESPONSIBILITIES:

Local Chief Executive (LCE):o Organize and convene the LPRAT

o Ensure availability of relevant data

o Ensure conduct of LPRAT workshops and meetings

o Ensure that only projects prioritized by the LPRAT are submitted to the RPRAT

o Ensure conduct of quarterly LPRAT meetings

o Mobilize LGU to ensure compliance with SGH and implementation of PFM Improvement Plan (PFMIP)



Local Poverty Reduction Action Team (LPRAT):

o Organize and facilitate the conduct of LPRAP workshops

o Agree on the a list of priority poverty reduction projects for 2014 based on the LPRAP

o Conduct quarterly meetings to monitor status of the approval and integration of priority poverty reduction projects into the budgets of participating agencies



Local Sanggunian:

o Review and approve List of Priority Poverty Reduction Projects to be submitted to NAPC

o Pass the pertinent Sanggunian Resolution



CSO Representatives:

o Actively participate in the formulation of the LPRAP and identification of priority poverty reduction projects

o Endorse the LPRAP and list of priority poverty reduction projects for approval of the Local Sanggunian

o Monitor implementation of the projects through LPRAP



Regional Poverty Reduction Action Team (RPRAT):o Assign a permanent and alternate representative

o Conduct orientation workshops for the LPRAT of focus LGUs

o Engage DSWD Municipal Links and Pantawid Pamilya parent leaders and provide municipal-level NHTS data

o Provide data from participating agencies and technical assistance in LPRAP preparation

o Monitor activities of LGUs and progress in submission of proposals and LPRAPs



Regional Poverty Reduction Action Team (RPRAT):o Ensure compliance with budget cap and consolidate, review and

validate proposed LPRAPs

o Inform LCEs and RDCs on the final LPRAP projects

o Monitor and evaluate performance of the LPRAT and implementation of BuB projects



National Anti-Poverty Commission:o Lead in the conduct of regional orientation for RPRATs

o Ensure visibility and access to information on BuB projects through the empowerment portal

o Set-up web-based software for automation of planning and consolidation of LPRAP projects, and web-based monitoring system

o Facilitate overall monitoring and evaluation of the BuB initiative



Agency Central Offices (ACOs):o Incorporate list of priority projects submitted by

NAPC in their 2014 within the ceiling budget

o Submit to DBM the Department’s budget proposal for FY 2014 (including proposals fromBuB LGUs) by April 8, 2013

o Give feedback to the RDC and LGUs on the status of proposals

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012dated December 20, 2012

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