Presentation for DD 3 Best Practices of Davao City

1. BOTTOM--UP
BUDGETING (BUB) PROCESS for FY 2016
DILG XI
Orientation on

2. LEGAL BASIS
DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. 1
Policy Guidelines and Procedures in the Implementation of Bottom-Up
Planning and
Budgeting for the FY 2013 Budget Preparation
DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. 2
Guidelines for the Implementation and Monitoring of Bottom-Up
Budgeting f(BUB) Projects in or the FY 2013

3. LEGAL BASIS
• DBM-DILG-DSWD-NAPC Joint
Memorandum Circular No. 3
• Policy Guidelines and Procedures in the
Implementation of Bottom-Up Budgeting
(BUB) for the FY 2014 Budget Preparation

4. LEGAL BASIS
• DBM-DILG-DSWD-NAPC Joint
Memorandum Circular No. 4
• Policy Guidelines and Procedures in the
Implementation of Grassroots Participatory
Budgeting Process (formerly called Bottom-
Up Budgeting) for the FY 2015 Budget
Preparation

5. LEGAL BASIS
• DBM-DILG-DSWD-NAPC Joint
Memorandum Circular No. 5
• Policy Guidelines and Procedures in the
Implementation of Grassroots Participatory
Budgeting Process (formerly called Bottom-
Up Budgeting) for the Preparation of the FY
2016 Budget and Succeeding Years

6. LEGAL BASIS
• DBM-DILG-DSWD-NAPC Joint
Memorandum Circular No. 6
• Policy Guidelines and Procedures in the
Implementation of Bottom-Up Budgeting
Projects for FY 2015

7. Concept of Bottom-Up Budgeting
• an approach in formulating budget proposal
of National Government Agencies, taking into
consideration the development needs of poor
municipalities as identified in their respective
local anti-poverty action plan formulated with
strong participation with civil society
organizations
• A process of reshaping national priorities
• A process of promoting governance reforms

8. OBJECTIVES
1. BUDGET REFORM :
- making the national budget more responsive to local
needs
2. LOCAL GOVERNANCE REFORM
- providing incentives for good local governance
- strengthening the devolution of basic services delivery
3. DEMOCRATIC AND EMPOWERMENT PROJECT
- creating a conducive environment for people’s participation
- generating demand for good governance at the local level

9. Better Delivery of
Public Services, More
Democratic Local
Elections, More
Efficient Local
Bureaucracy
Governance
Reforms
Participation in
All Aspect of
Planning and
Implementation
Core Goal:
Empower-
ment of the
Poor
GPB (BuB)
Framework

10. • Community Empowerment
– Empowering communities to
articulate their needs
• LGU-CSO Partnership
– Strengthen LGU-CSO partnership
in local development planning and
budgeting process
• National – Local Convergence
– Local plans and priorities as basis
for national agency programs and
budgets
– Convergence among NGA
programs
Guiding Principles
Convergenc
e
Participation
Empowerment

11. Empowerment Program Framework
NGAs
LGU
CSOs/BS
Communit
y
Convergence of 15
NGAs projects in
49 LGUs- R XI
Partners in service
delivery
Services felt and
needs addressed
Priority for
funding
Assist in ID of
needs of
community
Articulate
needs of
community

12. COVERAGE - LGUs
2013
National – 609
2014
National 1,233
2015:
National - 1,634
2016:
National - 1,634
Cities & Municipalities
Region XI – 32
Php - 578M
Region XI – 48
Php - 800M
Region XI – 49
Php - ?
2017
Region XI – 49
Php - ?

13. • Participating Agencies (for FY 2015):
DA, DAR, DEPED, DOE, DENR, DOH,
DILG, DOLE, DSWD, DOT, DTI, TESDA and
NEA
• Oversight Agencies:
DBM, DILG, DSWD, NAPC and NEDA
COVERAGE
National Government Agencies (NGAs)

14. Allocations per city/ municipality
• Formula:
No. of poor x P700
(Rounded up to nearest million)
• Minimum of P15 million Maximum of P50 million
BUDGET CAP

15. HARMONIZATION WITH LOCAL
PLANNING PROCESSES
– Two modes of Grassroots Budgeting
• Regular
– LPRAT as a technical working committee of the LDC (Non-
functionality of LDC should not be an obstacle for the
LPRAT to meet)
• Enhanced Process
– To be undertaken in 270 municipalities that have
graduated from or are currently implementing KALAHI-
CIDSS
– LPRAT to serve as a technical working group of an
“Enhanced LDC”; Final decisions to be made in the
“Enhanced” LDC

16. LPRAT Membership
• Under Regular Grassroots Budgeting, LPRAT
composed of:
– Mayor, Sanggunian Appropriations Committee Chair,
local department heads and representatives of NGAs at
the city/municipal level (50% of LPRAT members)
– Representatives of CSOs elected during the CSO
assembly + 1 business group representative (50% of
LPRAT members)
Elected officials, their immediate relatives (spouse,
parent, sibling, child) and LGU employees are ineligible
to be elected as CSO representatives

17. LPRAT Membership
CSOs IDENTIFIED
• Pantawid Pamilya Parent Leaders recognized by DSWD
• Leaders from DOH organized Community Health Teams
• Leaders of PTA
• Leaders of CSOs accredited by LGUs
• Leaders of CSOs accredited or recognized by any NGA
• Leaders of women’s group
• Leaders of basic sector organizations
• Leaders of basic sector organizations recognized by NAPC
• Leaders of other community or grassroots organization
• One of the elected representatives from IP sector

18. Steps in Regular
Grassroots Budgeting
Process

19. STEP 1
1. Civil Society Assemblies
– Orientation on Grassroots Budgeting
– Election of LPRAT representatives and 3
CSO signatories to the LPRAP (including
LPRAT co-chair)
– Report of LCE on status of 2013, 2014 &
2015 GB Projects (if applicable)
– Poverty Situation Analysis

20. STEP 1
1. Civil Society Assemblies
• Report to be submitted:
− Attendance sheet of Assembly;
− Pictures during the assembly;
− Documentation of election result; and,
− Report on the status of Grassroots
Budgeting projects (if applicable)

21. STEP 2
2. LPRAT Orientation/LPRAP Workshop
– Orientation on BUB JMC
– LPRAP Workshop
– Multi-year planning (indicative list of projects for
2015 to 2017)
– Project Identification
• 80% within Menu of Programs (to be reviewed and
validated by RPRAT)
• 20% outside of the Menu (to be reviewed and validated by
NPRAT)

22. STEP 2
2. LPRAT Orientation/LPRAP Workshop
• Report to be submitted:
− Executive/Admin. Order on the Creation of LPRAT
− Attendance sheet of Orientation/Workshop;
− Pictures during the Orientation-Workshop;
− Documentation/Post Activity Report

23. STEP 3
3. Submission of List of Priority Projects and
other supporting documents (hard and soft
copies)
– Cover letter signed by mayor
– List of projects using the prescribed template signed
by LCE and 3 CSO representatives on every page
– Project brief for each project
Report on compliance with participatory processes
• Conduct of CSO assembly – attendance sheet, photo of
participants, documentation of election report, LGU report on
status of GB 2013 projects
• Conduct of LPRAP workshop – photo of participants,
attendance sheet, minutes or highlights of the LPRAP
workshop

24. STEP 4, 5
4. Consolidation of list of projects by DILG RO
and submission to NAPC and distribution to
RPRAT members
5. Validation, Review and Replacement of
Projects
– Review/Validation by RPRAT and NPRAT
– RPRAT meeting/workshop with LPRAT to replace
rejected projects
– Submission to NAPC of final list of projects

25. STEP 6, 7, 8
6. Adoption of final list of priority projects by
local Sanggunian (to be submitted to
DILG RO)
7. Integration into the National Budget
8. Provision of funding for LGU Counterpart
in local budget

26. Counterpart Requirements
Proportion of BuB plus
KALAHI-CIDSS funding to LDF
Required Cash Counterpart
Up to 100% of LDF 10% of LDF
Over 100% up to 150% 15% of LDF
Over 150% 20% of LDF
• For Municipalities: cash counterpart will be a
% of the local development fund
• For Cities: cash counterpart will be 40% of
the GB budget cap

27. Counterpart Requirements
(computation)
A. Municipality B (not part of KALAHI-CIDSS)
GB Budget Cap Allocation P15 Million
KALAHI-CIDSS Grant 0 Million
Total Funding P15 Million
Local Development Fund P 8 Million
Proportion of GB and KALAHI-CIDSS Funding to LDF:
= (GB Cap + KALAHI-CIDSS) / LDF
= 15 Million / 8 Million
= 187.5%
Required Cash Counterpart:
= 20% of LDF
= 20% of 8 Million
= 1.6 Million

28. B. Municipality A (part of KALAHI-CIDSS)
Grassroots Budgeting Budget Cap Allocation P15 Million
KALAHI-CIDSS Grant 5 Million
Total Funding P20 Million
Local Development Fund P15 Million
Proportion of Grassroots Budgeting and KALAHI-CIDSS Funding to LDF:
= (GB Cap + KALAHI-CIDSS) / LDF
= 20 Million / 15 Million
= 133%
Required Cash Counterpart:
= 15% of LDF
= 15% of 15 Million
= 2.25 Million
Counterpart Requirements
(computation)

29. C. City D
Grassroots Budgeting Budget Cap Allocation: P30 Million
Required Cash Counterpart:
= 40% of Budget Cap
= 40% of P30 Million
= P12 Million
Counterpart Requirements
(computation)

30. KALAHI-CIDDS AREA
COMPOSTELA
VALLEY:
• Compostela
• Maco
• Maragusan
• Mawab
• Monkayo
• Montevista
• Nabunturan
• New Bataan
• Pantukan
DAVAO DEL
NORTE:
• Asuncion
• Braulio E. Dujali
• Carmen
• Kapalong
• New Corella
• San Isidro
DAVAO DEL
SUR
• Don
Marcelino
• Jose Abad
Santos
• Kiblawan
• Magsaysay
• Malalag
• Malita
• Matanao
• Santa Cruz
• Santa
Maria
• Sarangani
• Sulop
DAVAO
ORIENTAL
• Baganga
• BanayBanay
• Boston
• Caraga
• Cateel
• Gov
Generoso
• Lupon
• San Isidro

31. Counterpart Requirements
Counterpart funding need not be allocated on a per
project basis.
Cash counterpart may be used to fund projects that are
100% funded by the LGU.
Projects to be funded by the LGU cash counterpart
should be determined by the LPRAT, effectively adding
it to the ‘Grassroots Budgeting Funding Pot’.
KALAHI-CIDSS will no longer ask for other cash
counterpart, however, additional non-cash counterpart
may be required

32. Project Identification
• Project Identification: NEGATIVE LIST
– Projects below P500,000.00
– Expansion of Pantawid Pamilya, Social Pension
for Indigents Senior Citizens, PhilHEALTH
coverage, vaccination programs
– Housing Projects
– Materials Recovery and landfills
– Vaccination program and National Health
Insurance Program (provided by DOH &
PhilHealth
– Construction of school buildings, classrooms and
rural health units
– Farm to Market Roads

33. Project Identification
– Law enforcement, fire protection and jail
management related projects
– Construction of city hall, training centers and
other multi-purpose buildings
– Purchase of motor vehicles, except those used for
rescue in times of disaster
– International Training, scholarships
Project Identification: NEGATIVE LIST

34. Governance Requirements
• Attain Seal of Good Housekeeping for 2013 assessment
• Develop a PFM Improvement Plan or attain 2014 targets if already
developed
• Counterpart requirements are provided for Grassroots Budgeting 2015
budget
• Submission of proper financial and physical accomplishment reports
for LGU implemented Grassroots Budgeting 2013, 2014 projects
• Compliance with intent of Grassroots Budgeting for meaningful
participation
– Conduct of CSO assembly and LPRAT workshop
– Conduct of Quarterly LPRAT meetings
• No unliquidated cash advances
• LGUs that poorly implement their Grassroots Budgeting
projects in 2014.
IDENTIFIED PROJECTS WILL NOT BE FUNDED AND WILL NOT BE
IMPLEMENTED IF THESE CONDITIONS ARE NOT MET

35. Enhanced Grassroots
Budgeting Process
(For Municipalities that have
graduated from or are currently
implementing KALAHI-CIDSS)

36. Variances in the Process
• Barangay level planning
– Conduct of barangay poverty situation analysis and
barangay assemblies (to be facilitated/ conducted by DSWD
KALAHI-CIDSS)
• ‘Enhanced’ Local Development Council
– CSO members:
• Barangay Development Council Vice-Chairs to be elected from
KALAHI-CIDSS volunteers (1 per barangay)
• 5 CSO representatives elected during the CSO assembly
– LPRAT to be created as a technical working group of the
Enhanced LDC
• With 10 members from government, 5 members from Barangay
BDC Vice-Chairs, and the 5 CSOs elected during the CSO
assembly

37. Variances in the Process
• ‘Enhanced’ Local Development Council to approve list
of priority projects prepared by the LPRAT
• List of projects to be submitted to also contain
KALAHI-CIDSS and LGU funded projects
• Planning process to be harmonized with crafting of
Comprehensive Development Plan

38. Other Requirements
LPRAP Template
Sanggunian Resolution (adopting LPRAP
list of priority projects) pro-format
Project Brief Template
Executive Order creating LPRAT