rules and regulations, including the guidelines and mechanisms
unilaterally prescribed by the Oversight Committee from time to time,
as sanctioned by the assailed provisos in the GAAs of 1999, 2000, and
2001 and the OCD resolutions, makes the release not automatic, a
flagrant violation of the constitutional and statutory mandate that the
just share of the LGUs shall be automatically released to them. The
LGUs are, thus, placed at the mercy of the Oversight Committee.”
(underscoring supplied)
17.7 Given this ruling, the LGSEF should have been recorded under the General Fund
and made available for use by the LGU, instead of being withheld or restricted
and subjected to the guidelines prescribed by the Oversight Committee, which is
unconstitutional. Therefore, the non-utilization of the LGSEF, being part of the
IRA, deprived the constituents of the benefits that would have been gained had
the amount been used for additional projects.
17.8 We recommended and Management agreed to revert the balance of the
LGSEF from the Due to NGAs to the General Fund and utilize the amount
in accordance with budgetary requirements and general limitations under
Sections 324 and 325, respectively, of R.A. No. 7160, and other existing laws,
rules, and regulations.
Non-compliance with Item 6.1 of DepED, DBM and DILG Joint Circular No. 1, Series of 2017
on monitoring, transparency and accountability in the allocation and utilization of the SEF
18. The Municipality has not fully complied with Item 6.1 of DepED, DBM and DILG
Joint Circular No. 1, Series of 2017, due to the various deficiencies noted, thus
hindering effective monitoring, transparency and accountability in the allocation
and utilization of the Special Education Fund (SEF).
18.1 The Department of Education (DepEd), Department of Budget and Management
(DBM), and the Department of the Interior and Local Government (DILG) issued
Joint Circular (JC) No. 1, series of 2017 dated January 19, 2017, to revise the
guidelines on the use of the SEF. Item 6.1 of the JC guidelines on monitoring,
transparency, and accountability in the utilization of the SEF.
18.2 Our audit of the allocation and utilization of the SEF in CY 2024 revealed that
the Municipality has not fully complied with Item 6.1 of the JC due to the
following deficiencies:
a. Approved SEF Budget not provided to the concerned Municipal Officials
within seven days after approval
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