accordingly and likewise initiate the procedures on the forfeiture of
performance bond posted by the defaulting contractors in case of non-
completion, delay or termination of contracts.
2.10 Management has directed the City Engineering Office to prepare and finalize
corresponding Statements of Work Accomplished for the projects awarded to
various contractors in order to deduct advance payments to the unbilled progress
billings.
2.11 Management is also in the process of recouping advance payment to one
contractor through forfeiture of its performance bond.
Deficiencies in the Projects under the 20 Per Cent Development Fund (DF) - ₱69,256,081.62
3. Several projects under the 20 per cent development fund with total appropriations
of ₱69,256,081.62 were considered to be not well-planned and not procurement-
and-implementation ready, inconsistent with DBM-DOF-DILG Joint
Memorandum Circular (JMC) No. 2020-1, affecting the optimal utilization of the
said funds which could have contributed to the attainment of desirable socio-
economic targets and outcomes of the City.
3.1 Section 287 of Republic Act (RA) No. 7160 or the Local Government Code of
1991 requires each LGU to appropriate no less than 20 percent of its internal
revenue allotment for development projects. This is to ensure that funds are
earmarked for projects intended to uplift the standard of living of its constituents.
Thus, aside from appropriation, the Code wants to ensure that the allocated
percentage is maximized in terms of the implementation of developmental
projects in each LGU.
3.2 Items 3.2.3 of the DBM-DOF-DILG JMC No. 1 states that the LGU shall ensure
that the development projects to be funded out of the 20 per cent DF are well-
planned and procurement-and implementation-ready.
3.3 For CY 2024, the City appropriated the amount of ₱164,140,055.55 under its 20
per cent DF for 31 development projects. On September 27, 2024 and October
15, 2024, the City reverted current and continuing appropriations amounting to
₱69,256,081.62 and ₱86,073,850.45, respectively, or a total of ₱155,329,932.07
for 102 projects. After the reversion, the City has 128 projects for implementation
for CY 2024, as summarized below:
Current Appropriations Continuing Appropriations Total
Particulars No. of No. of No. of
Amount Amount Amount
Projects Projects Projects
CY 2024
31 ₱164,140,055.55 155 ₱438,591,130.71 186 ₱602,731,186.26
Beginning
Reversions (5) (69,256,081.62) (41) (86,073,850.45) (46) (155,329,932.07)
New Projects 102 155,329,932.07 102 155,329,932.07
46
