SK REFORM ACT OF 2015 OPERATIONS: FREQUENTLY ASKED QUESTIONS
FINANCIAL CONCERNS
Q: How can we (SK Chairperson and SK Treasurer) get bonded?
A: The bonding process is stipulated in Treasury Circular No. 02-2009 dated August 2009. You may follow the steps below:
- Accomplish General Form Nos 57A and 58A (2 copies) which can be secured from the District Offices (DOs)/Provincial Offices (POs) of the Bureau of the Treasury. General Form No. 58A shall be subscribed and sworn to before any officer authorized to administer oath, attaching therewith two (2) passport size ID pictures, accompanied by the following:
- Latest Sworn Statement of Assets, Liabilities, and Net Worth (SALN); and
- List of bondable public officers certified by the officer in charge of Administrative and/or Finance Department (see Annex D of TC No. 02-2009)
- The forms together with the required supporting documents shall be filed with the Chief Treasury Operations Officer II (CTOO II) assigned at the BTR DOs/POs having jurisdiction over the agency. The CTOO II shall assess the applicable bond premium and issue the ATAP when General Forms 57A and 58A and supporting documents are found to be complete and in order.
- Upon receipt of the Authority to Accept Payment (ATAP), proceed to the nearest Authorized Government Depository Bank (AGDB) where the Treasurer of the Philippines (TOP) has a deposit account for payment of the assessed bond premium.
- Submit and present to the concerned CTOO II a copy of the validated deposit slip and ATAP as proof of payment of the bond premium.
Q: How can we pay the bond premium considering that we do not have the funds transferred to us yet?
A: You may request your Barangays to advance the amount due the National Government which shall be deducted from the SK funds; alternatively, if you have the capacity to shoulder the required premium, it will be subject to reimbursement from SK funds in accordance with the usual accounting and auditing rules and regulations.
Q: Do we need a TIN? If so, how can we apply for it?
A: Yes. In a letter to NYC dated 19 September 2019, the Bureau of Internal Revenue invokes Section 4.2.II of Revenue Regulations (RR) No. 7-2012, which cites the following:
“A person who, although exempt from the imposition of the taxes imposed under the Code, as amended, is nevertheless required to withhold taxes on account of income payments made to taxable individuals or entities, are required to or may secure TIN.”
The abovementioned provision vis-a-vis the financial independence clause in RA 10742 surmises that the SK shall become a withholding agent on purchases made to taxable individuals or entities. Therefore, the SK shall acquire their TIN, specifically an Organizational TIN.
You may register at the Revenue District Office (RDO) having jurisdiction over the location of the barangay. For the directory of RDOs, they may visit: https://www.bir.gov.ph/index.php/contact-us/directory/revenue-district-offices.html
To process the TIN application, you will need the following documentary requirements:
- Two (2) original copies of BIR Form No. 1903 [Application for Registration (For Corporations, Partnerships (Taxable/Non-Taxable) including GAIs, LGUs, Cooperative and Association] January 2018 version; and
- Photocopy of SK’s Proof of Registration (any document that shows the official name of the SK issued by the governing body or a certification from the Barangay or Local Government Unit of the existence of such body/organization.)
Once you have completed the documentary requirements, you may now go to the Revenue District Office (RDO) having jurisdiction over your barangay and do the following:
- Get a queueing number in the office entrance and wait for the number to be called;
- Submit complete documentary requirements to the New Business Registrants Counter (NBRC);
- Payment of Registration Fee if the SK shall discharge proprietary functions (if the SK shall discharge governmental functions, registration fee shall be exempted);
- Secure an Authority to Print (ATP) if the SK performs proprietary functions (if SK performs governmental functions, ATP shall not be required)
- Received duly approved BIR Form No. 1903, Certificate of Registration and/or ATP;
- Register Books of Accounts; and
- File appropriate tax returns and pay tax dues
Q: How do we open a bank account?
A: If your chosen bank is Landbank of the Philippines, please be advised of the following requirements:
- At least one (1) original valid photo-bearing ID of the SK Chairperson and the SK Treasurer
- Two (2) recent ID photos of the SK Chairperson and the SK Treasurer
- SK Resolution stating its authorized signatories
- SK Chairperson’s Oath of Office and Appointment Paper of the SK Treasurer
- In case of temporary or permanent vacancy in the position of the SK Chairperson, the following shall be required:
- New SK Resolution when the previous SK Resolution specifically indicates the name of the former SK Chairperson or SK Treasurer
- If the general term “SK Chairperson” and “SK Treasurer” were used in the SK Resolution in the opening of account, a certification from the DILG on the assumption of the successor as SK Chairperson, while for the new treasurer, the appointment paper of the new SK Treasurer shall be sufficient
- If there is a conflict on the assumption to the position of the new SK Chairperson, a certification from the DILG on the assumption of the successor shall be required.
Please note that additional information may be required depending on the assessment of Landbank’s Branch Officers.
For those with the Development Bank of the Philippines as their chosen bank, please be advised of the following requirements:
- Submission of the following documents:
- Certified true copies of:
- Sangguniang Bayan/Panglungsod resolution creating the Barangay (Note: For the barangays that do not have an available Sangguniang Bayan/Panglungsod resolution, they may opt to request a certification from their local DILG.)
- Oath of Office of duly elected SK Chairperson/President and member who is appointed as Treasurer
- Valid Government ID of SK Chairperson/President and Treasurer
- SK Resolution appointing the SK Treasurer
- Sangguniang Kabataan resolution authorizing the opening of the deposit account and designating the duly authorized signatories (SK Chairperson and Treasurer)
- 1×1 ID picture of SK Chairperson and Treasurer
- Certified true copies of:
- Accomplishment by the SK Chairperson and Treasurer of the following forms obtained from DBP Branch:
- Customer Information Form
- Deposit Record Form
- Signature Card
- Initial deposit depending on the type of account it intends to open (Current/Savings)
Q: Where can I get a copy of the COA Handbook?
A: The Handbook can be accessed and downloaded through their website: https://www.coa.gov.ph/phocadownload/userupload/Issuances/Circulars/Circ2020/COA_C2020-003_Annexes/Handbook_FTSK.pdf
Q: Can we start disbursing even if we have not attended the training provided by the Commission on Audit?
A: You can already disburse, but it is highly recommended that you wait to be trained by COA to ensure that you have the proper know-how on the disbursement of their funds.
Q: Is it okay to disburse the fund through the old process (Through the Brgy. Treasurer)?
A: No. Since there is already the Joint Memorandum Circular No. 2019-001 (DBM-DILG-NYC) released last January 23, 2019 a Guidelines on the Appropriation, Release, Planning and Budgeting Process for the SK Funds aligned to the provision given under Section 20 of Republic Act No.10742.
Q: Where can I get the copy of the Guidelines for Appropriation, Release, Planning and Budgeting Process for the SK Funds? Saan pwede makakuha ng kopya ng Guidelines for Appropriation, Release, Planning and Budgeting Process for the SK Funds?
A: The Joint Memorandum Circular 2019-001 (DBM-DILG-NYC) can be downloaded through the website of DBM and NYC:https://www.dbm.gov.ph/index.php/239-latest-issuances/joint-memorandum-circular/joint-memorandum-circular-2019/1356-joint-memorandum-circular-no-2019-001
PLANNING AND BUDGETING
Q: When will the Barangay release the 10% funds to our bank account?
A: The Barangay will release the 10% funds once you 1) are already bonded, and 2) have already opened a current account. Pursuant to Section 3.2.2. of the DBM-DILG-NYC Joint Memorandum Circular No. 1, s. of 2019, the SK funds shall be deposited in your current account“not later than five (5) working days after the crediting of the monthly internal revenue allotment (IRA) share of the barangay, consistent with the rules and regulations issued by the Commission on Audit (COA).”
Q: What will happen to the SK Funds if there are no elected SK Officials in the barangay?
A: According to Section 3.2.4 of the same JMC, the barangay shall transfer the corresponding ten percent (10%) SK Fund to the trust fund of the barangay, and will be released upon the election of the SK Officials.
Q: Will the Barangay release the 10% funds in lump-sum, quarterly, or monthly?
A: According to Section 3.1.1. of the DBM-DILG-NYC JMC No. 1, s. of 2019,“The Sangguniang Barangay, in turn, shall appropriate the said SK funds in lump-sum in the pertinent appropriation ordinance.”This means that the SB will budget the SK funds as a whole (the 10%); this does not entirely translate to the actual transfer of funds.
With regards to the monthly deposit, please be advised of Section 3.2.3 of the same JMC:“The SK Funds shall be deposited by the barangay in the current account of the SK not later than five (5) working days after the crediting of the MONTHLY internal revenue allotment (IRA) share of the barangay consistent with the rules and regulations issued by the Commission on Audit (COA).” Thus, the LGU still has a basis on transferring the funds on a monthly basis.
However, there are other mechanisms or frequency of depositing the funds to your account. Please be also advised of the 3rd paragraph of 3.2.3 of the same JMC, which states that“The barangay may opt to transfer/release the SK funds earlier than herein prescribed on an annual, semestral or quarterly basis, subject to the written agreement between the barangay and the SK.”This means that the transfer of funds should be mutually agreed by you and the barangay through a written agreement; such matters must be properly documented. Additionally, the transfer/release may also depend on the funds that the LGU allocates to your Barangay.
Can we proceed with the plans and budget if we do not have a complete set of SK Officials?
A: Yes. Per DILG Legal Opinion No. 09-2020, you can proceed despite having an incomplete set of Officials, since only a quorum is needed in order for the SK to transact business. Pursuant to Section 9 (b) of RA 10742, and Section 53 of RA 7160 or the Local Government Code of 1991, a quorum is defined as a majority (50% +1) of the members who have been elected.
Q: Can we augment/realign our budget? What would be the process in augmenting our budget?
A: Yes. Per DILG Memorandum Circular No. 2020-074, in a letter dated April 2, 2020, the Department of Budget and Management reiterates that, if funds allow, changes in your Annual Budget may be done through a Supplemental Budget under the following circumstances: (i) when supported by funds actually available as certified by the SK Treasurer; and (ii) if covered by new resources.
Further, pursuant to Section 336 of RA No. 7160 and Article 454 (b) of its IRR, the following conditions and requirements must be observed:
- The SK Chairperson is authorized to use savings and augment items in the approved Annual Budget through a resolution passed by the SK;
- The authority granted to the SK Chairperson covers the augmentation of any item in the approved Annual Budget, which upon implementation or subsequent evaluation of needed resources is determined to be deficient pursuant to Article 454 (b) (2) of the IRR of RA No. 7160;
- The amount to augment the deficient item of the budget must be sourced from savings as defined under Articles 454 (b) (1) of the IRR of RA No. 7160; and
- The item/s of budget to be augmented and from which the savings will be derived are within the same expense class in the approved Annual Budget of the SK.Finally, in issuing a Supplemental Budget, changes in the Annual Budget must be in line with the approved Annual Barangay Youth Investment Program (ABYIP) derived from the Comprehensive Barangay Youth Development Plan (CBYDP). It is understood that the pertinent provisions of RA No. 10742, DBM-DILG-NYC JMC No. 1, s. 2019, Handbook on the Financial Transactions of the SK as prescribed through COA Circular No. 2020-003 dated January 28, 2020, and other applicable budgeting, accounting and auditing laws must also be observed and complied with for this purpose within the same expense class in your approved Annual Budget.
BENEFITS
Q: When will we get our Philhealth coverage?
A: A baseline data of SK Officials nationwide is needed first in order for Philhealth to propose the total amount of budget to be included in the next GAA to ensure the coverage of all SK Officials.
In the meantime, we advise you to apply for a PIN (Philhealth Identification Number) and submit it to the nearest Philhealth Office, if you don’t have one yet.
Q: Are we also exempted in taking NSTP 1 (Common Module)?
A: No. Per the CHED-NYC Joint Memorandum Circular No.1 series of 2019, you must pass the NSTP 1 (Common Module) before being exempted from taking the NSTP-CWTS.
Q: How will we be exempted from taking the NSTP-CWTS?
A: You will have to apply for exemption with your respective NSTP Coordinator/Director. You must have 1) passed the NSTP 1 (common module); 2) have good standing as an SK Official with certification issued by the City/Municipal Local Government Operations Officers; and 3) enrolled in NSTP 2 (NSTP-CWTS program component).
You must submit the application for exemption with attached certificate of enrolment, Oath of Office, Certificate of Good Standing, Copy of Approved ABYIP, and Terms of Reference to be evaluated by the NSTP-CWTS Coordinator. Written reports, with photographs that document your participation in the implementation of PPAs as outlined in the ABYIP shall also be submitted.
For more information, kindly download the CHED NYC Joint Memorandum Circular No. 01, series of 2019 at the CHED website.
Q: Can we apply for a job in government?
A: No. Please be reminded of Section 94 (a) of the Local Government Code of 1991 or Republic Act No. 7160, which states that “no elective or appointive official shall be eligible for appointment or designation in any capacity to any public office or position during his tenure.”
However, you are allowed to accept employment in private offices or practice your profession as long as it does not conflict with your duties in the SK.
Q: I am an acting SK Chairperson, can I receive honorarium?
A: Yes. DILG Opinion No. 58 s. of 2019 cites Section 393 of the Local Government Code of 1991 or Republic Act No. 7160: “Honorarium, as defined by the Government Accounting and Auditing Manual (GAAM), is that remuneration given to public official for services actually rendered.”
If you were present in the Sangguniang Barangay sessions and have dutifully fulfilled the roles of the SK Chairperson as outlined in RA 10742, you may be entitled to an honorarium.
Q: Can we allot honoraria/allowances for our SK Officials in the annual budget?
A: No. Pursuant to Section 3.3.2.3 of the DBM-DILG-NYC JMC No. 1. s. of 2019, citing the provision of Article 423 of the Implementing Rules and Regulations of the Local Government Code of 1991, the SK budget shall not be disbursed for personal services (salaries, honoraria, and the like).
Q: Is a Master’s Degree included in the exemption from payment of tuition and matriculation fees of the SKs?
A: Yes. Per DILG Legal Opinion No. 32, s. of 2018, since tertiary education was not defined in RA No. 10742 and its IRR, it can be surmised that RA No. 10931 or the “Universal Access to Quality Tertiary Education Act” is applicable, so long as the master’s degree will be taken in state colleges/universities and those locally funded educational institutions within or nearest their area of jurisdiction.
SPECIAL ELECTIONS, MANDATORY TRAININGS, AND OTHER RELATED CONCERNS, MISCELLANEOUS
Q: I am a newly-elected SK Official from the special elections and I wasn’t able to attend the simultaneous batches of the Mandatory Training. Where and when can I attend the SKMT?
A: You may contact your local DILG; they shall be assisting you with regards to the conduct of the SK Mandatory Training.
Q: In the event that face-to-face trainings are not allowed, can the SK Mandatory Training be conducted online?
A: Yes. In a letter dated May 11, 2020 from the Local Government Academy, conduct of the SK Mandatory Training online via secure video-conferencing platforms will be allowed. Further, NYC reiterates that pertinent provisions from the DILG Memorandum Circular No. 2018-48, such as the roles, duties and functions of the Regional and Provincial/City Management Teams shall still be applicable.
Q: What can we do about non-performing SK Officials?
A: Per Section 18 of the IRR of the SK Reform Act of 2015, “SK Officials may, after due process be suspended for not more than six (6) months or removed from office by majority vote of all members of the sangguniang panlungsod or sangguniang bayan.” Moreover, the sangguniang
panlungsod or pambayan shall be the body to promulgate the rules on suspension and removal from office of any elected SK Official.
Should you pursue filing charges against the concerned SK Official to your sangguniang panglungsod or pambayan, please make sure that all proceedings are properly documented.
Q: What is the process in filing complaints against an SK Pederasyon Officer?
A: Pursuant to Section 32 of the DILG-COMELEC-NYC Joint Memorandum Circular No. 1 s. of 2017, verified complaints against any SK Pederasyon Officer shall be initiated only by any officer or member of the concerned Pederasyon and shall be filed before the following:
- Office of the President – in the case of the Panlalalawigan, Panlungsod/Bayan Pederasyon Presidents who are ex-officio members of the Sangguniang Panlalawigan, Panlungsod (HUC, ICC, or Component City), and the Pederasyon President of Pateros, NCR, respectively, or;
- Sangguniang Panlalawigan – in the case of the Pambayang President who is an ex-officio member of the Sangguniang Bayan (municipality), whose decision may be appealed to the Office of the President; or
- Sanggunian concerned, in the case of other officers of the concerned Pederasyon, whose decision shall be final and executory.
Further, Section 33 also highlights the due process in filing complaints: “Within seven (7) days after the verified complaint is filed, the Office of the President or the sanggunian concerned, as the case may be, shall require the respondent to submit their verified answer within fifteen (15) days from receipt thereof, and commence the investigation of the case within ten (10) days after receipt of such answer of the respondent.”
LOCAL YOUTH DEVELOPMENT COUNCIL (LYDC) AND YOUTH ORGANIZATIONS’ REGISTRATION PROGRAM (YORP) CONCERNS
Q: In the event that mass gatherings are prohibited in our localities, can we conduct the LYDC Elections online?
A: Yes, provided that the elections are still conducted in a transparent manner, which can be available through utilizing secure live-streaming platforms.
Q: In the event that there are only a limited number of YORP-registered organizations in a certain locality, can a non-YORP registered organization be part of the LYDC?
A: Yes, but with the following conditions: 1) they shall be recognized by their respective Local Youth Development Officer, and 2) they shall be registered to the YORP by their LYDO.
Q: How do we register in the Youth Organizations’ Registration Program and how long will the process take?
A: Prepare the following documents:
- Registration form
- Directory of officers and advisers
- List of members in good standing
- Constitution and by-laws
- Endorsement (from Competent Authority)
The hard-copies of the documentary requirements of registering youth organizations and youth-serving organizations shall be submitted to the appropriate office:
- Municipal/City organizations – Municipal/City Youth Development Office
- Provincial organizations – Provincial Youth Development Office
- Regional and National organizations, consortiums, federations – National Youth Commission
Electronic/scanned copies shall be forwarded to the National Youth Commission for the issuance of the Unique Registration Number (URN) through the YORP Online Hub. Thereafter, the appropriate offices shall verify the registration information provided by the organizations. It shall be the responsibility of the YDOs to verify the details of the registering organizations within their respective local government unit (1st stage verification), while the NYC Area Officer and YORP Secretariat will verify the authenticity and completeness of the documents (2nd stage verification). On the other hand, the NYC Area Officers shall handle the verification of regional and inter-regional organizations, while the YORP Secretariat shall handle the verification of national organizations, consortiums, and federations.
If with deficiencies, the appropriate office (YDO, Area Officer, or YORP Secretariat) shall send a notice of deficiency to the youth organization.
If there are no deficiencies, the Area Officer or YORP Secretariat will approve the application through the issuance of a system-generated confirmation of registration via email. The YORP Secretariat will draft the resolution of the approval of the registration and shall be endorsed to the Chairperson of the Committee on Active Citizenship (1 day).
Once the Commission Proper approves the resolution (approx. 7 days), the YORP Secretariat will draft the Certificate of Registration (approx. 7-14 days), which shall be signed by the NYC Chairperson and CEO (approx. 1 month).
Certificates can either be picked up at the NYC office or can be delivered via courier service (1 month after approval of certificates).
The total process can take a total of 41 days, 7 hours and 20 minutes.
Q: Where can we get the endorsement from?
A: If you are a Community-Based Organization:
- Certificate of Existence of Office from the barangay where the office is located (if you have a physical office)
- Barangay Certification of Residence of the President (if you do not have a physical office)
- Resolution of endorsement coming from the Sangguniang Kabataan
If you are a School-Based Organization – Certificate of Registration or Recognition from a competent school authority supervising student affairs
If you are a Faith-Based Organization – Certificate of Registration or Recognition from any head/pastor of congregation or parish priest
If you are a Chapter of a Multi-level Organization – Certificate of Registration or Recognition from the president governing the highest organizational level
If you are representing a Consortium – Certificate of Registration or Recognition issued by the secretariat/board
Q: What are the benefits of being registered in YORP?
A: YORP-Registered Organizations can use the official YORP Seal. You will have access to free exclusive trainings offered by the NYC. Your organization shall also be prioritized in the selection of representatives for youth consultations, NYC-initiated activities, international youth exchange programs, and other avenues which may provide further exposure to your organization. NYC’s media outlets can promote the activities of your organization upon request. Lastly, YORP-registered organizations can also participate in the Local Youth Development Council (LYDC).
Q: For the LYDOs, how can we get our username and ID?
A: The username and ID shall be given upon coordination with the YORP Secretariat and IT Unit of the NYC.
Q: For the organizations, how can we get our username and ID?
A: A system-generated email will be sent to you once you have been registered by the YORP Secretariat.
References for further reading:
NYC Citizen’s Charter, p. 17 for YORP Process. https://nyc.gov.ph/citizens-charter/
Revitalized YORP Guidelines. https://drive.google.com/file/d/1L4qW4CPnApJOj3uG3IoFqRQAGdaTKdSm/view
DBM-DILG-NYC Joint Memorandum Circular No. 1 s. of 2019. https://www.dbm.gov.ph/index.php/239-latest-issuances/joint-memorandum-circular/joint-memorandum-circular-2019/1356-joint-memorandum-circular-no-2019-001
CHED-NYC Joint Memorandum Circular No. 1 s. of 2019. https://ched.gov.ph/wp-content/uploads/Joint-Memorandum-Circular-No.-01-Series-of-2019-Guidelines-for-the-exemption-of-the-SK-Officials-from-taking-the-NSTP-CWTS-in-accordance-with-Section-16-No.-2-of-RA-10742.pdf
LYDC Elections. https://drive.google.com/file/d/1aBUBMT1aTM5bxMaUoyyGy4dyS5xzsTTd/view?usp=sharing
Handbook for the Financial Transactions of the SK. https://www.coa.gov.ph/phocadownload/userupload/Issuances/Circulars/Circ2020/COA_C2020-003_Annexes/Handbook_FTSK.pdf
DILG Memorandum Circular No. 2020-074. https://dilg.gov.ph/issuances/mc/Realignment-and-Augmentation-of-SK-Budget-to-Provide-Funds-for-Programs-Projects-and-Activities-PPAs-Related-to-Coronavirus-Disease-2019-COVID-19/3198
Bureau of Treasury Letter re Fidelity Bonding. https://drive.google.com/file/d/1eTnJQ0s4StRM3VsqMQZlGp14nGIo8UmQ/view?fbclid=IwAR0VuHSm1Fo6UYxmS7eJwMg_LnNOQJPmjB1GJPluHa7j0b5q2toEmhwQyac
Bureau of Internal Revenue Letter re TIN Application. https://drive.google.com/file/d/1tiPpS-uMy_e2iGv8wRFPbCpA8cFAhKeE/view
NYC’s Advisory re LYDC Elections Online. https://www.facebook.com/NYCSangguniangKabataan/photos/a.1116076671877437/1712555292229569
DILG-COMELEC-NYC Joint Memorandum Circular No. 1 s. of 2017. https://dilg.gov.ph/issuances/jc/Guidelines-on-the-Conduct-of-Sangguniang-Kabataan-SK-Pederasyon-Electionand-Rules-Governing-Terms-of-OfficeSuspension-and-Removal-of-all-SK-Pederasyon-Officers/84
DILG Legal Opinion on whether the Acting SK Chairperson is entitled to Honoraria. https://dilg.gov.ph/legal-opinions/Legal-Opinion-on-whether-the-Acting-SK-Chairperson-is-entitled-to-honoraria/963
DILG Legal Opinion the Inclusion on master’s degree in the Coverage of Free Tuition. https://dilg.gov.ph/legal-opinions/Coverage-of-SK-Scholarship-whether-it-includes-masters-degree-taken-in-a-state-university/851
DILG Legal Opinion on the Utilization of SK funds with an incomplete set of SK Officials. https://dilg.gov.ph/legal-opinions/Legal-Opinion-on-the-utilization-of-Sanggunian-Kabataan-SK-funds-where-there-is-an-incomplete-set-of-SK-Officials/999
Source: https://nyc-sk.com/faq
SK Baybay City, Leyte 