MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Order No. 264, November 17, 1989 ]

PROVIDING GUIDELINES FOR THE RELEASE AND ADMINISTRATION OF THE BARANGAY ADMINISTRATION FUND (BAF)

I, CORAZON C. AQUINO, President of the Philippines, by virtue of the power vested in me by law, do hereby prescribe the guidelines for the release and administration of the Barangay Administration Fund (BAF) provided under the National Assistance to Local Government Units (NALGU) under Republic Act No. 6688 the General Appropriations Act for CY 1989, as follows:

Section 1. Use of Fund. — The Barangay Administration Fund (BAF) shall be used for the following purposes:

(a) For the improvement of barangay administration such as for office supplies, transportation expenses for official trips of barangay officials, representation expenses during barangay council meetings, maintenance and repair of barangay halls, posting and mailing, and similar expenses.

(b) Capability-building activities such as orientation and training programs/projects, community organizing activities and the like.

Section 2. Allocation And Release Of The Fund. — The Barangay Administration Fund (BAF) shall be allocated and released as follows:

(a) For improvement of barangay administration, the amount of P5,000 shall be allocated for each barangay duly certified to by the Department of Local Government (DLG) for CY 1989.ℒαwρhi৷

(b) For barangay capability-building activities, the amount of P33,000,000 shall be allocated, to be utilized up to December 31, 1989.

(c) The balance shall be imposed as Budgetary reserves pursuant to Administrative Order No. 137 dated September 15, 1989.

Section 3. General Guidelines. — The allocation for the improvement of barangay administration shall be released by the Department of Budget and Management (DBM) directly to the city/municipality concerned where the barangay belongs. On the other hand, the allocation for barangay capability-building activities shall be released to the DLG.

Section 4. Procedural Guidelines. — (a) The Advice of Allotment and the corresponding Treasury Warrant for improvement of barangay administration shall, upon the effectivity of this Circular, be released by the DBM direct to the city/municipality where the barangay belongs. Within fifteen (15) days after receipt of funds, the City/Municipality Treasurers shall release the same to the Barangay Treasurers for the implementation of the purposes stated under Item (a) in Section 2 hereof. Disbursement of said funds by the barangay treasurers shall be made upon the approval of the barangay budget for the purpose; and (b) Requests for funds chargeable against the amount for barangay capability-building activities shall be based on a special budget to be submitted by the DLG, indicating, among others, the activities to be undertaken and the specific barangay to be benefited.

Section 5. Reporting Requirements. — At the end of calendar year 1989, the Punong Barangay shall submit to City/Municipality Budget Office, a status report indicating the details of the expenditures/disbursements made, duly certified by the Barangay Treasurer, and the City/Municipal Treasurer, and verified by the Local Auditor.

Section 6. Effectivity. — This Memorandum Order shall take effect immediately.

DONE in the City of Manila, this 17th day of November, in the year of Our Lord, Nineteen Hundred and Eighty-Nine.

(Sgd.) CORAZON C. AQUINO

By the President:

(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary


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