Guidelines in the

Implementation of the
Bottom-Up Budgeting
Program for FY 2015
Department of Budget and Management

FUND RELEASE
A. Projects under NGAs and GOCCs:
Funding for BUB projects is comprehensively
released to the implementing agencies
Fund transfers from agencies to LGUs will only
be allowed if the beneficiary LGU has complied
with the following governance conditions:
- Compliance with the Good Financial
Housekeeping (2014 Assessment)
- Submission of the PFM-IP or initiation of its
implementation, as determined by the DBM
ROs.

FUND RELEASE
B. Projects under the Local Government Support
Fund
Funds under LGSF are comprehensively released to
DBM Regional Offices through SARO
DBM ROs shall release funds intended for the
implementation of infrastructure projects directly to
LGUs, subject to the LGUs compliance to
governance requirements.
No additional requirements will be asked from the
Local Government Units.
For Integrated Community Food Production
projects- submission of an endorsement from NAPC.

FUND RELEASE
B. Projects under the Local Government
Support Fund
In implementing the BuB projects, LGUs shall be
accountable for ensuring that the design and
costing of these projects are within standard
and do not exceed the cost of similar projects
being implemented by NGAs in the same
locality and that government procurement,
budgeting, accounting and auditing rules and
regulations are observed.

FUND RELEASE
C. Funding for the BUB Projects in LGUs that
have not complied with the governance
conditions
LGUs will be given until March 2015 to comply with
the BuB governance conditions. They should
coordinate with the concerned DILG or DBM ROs.
If a city or municipality fails to comply with the
governance conditions, NGAs may release funds to
the provincial government where it is a part of,
subject to the following conditions:
- The provincial government has complied with the
Good Financial Housekeeping
- The concerned LPRAT agrees to have the project
implemented by the provincial government

FUND RELEASE
C. Funding for the BUB Projects in LGUs that
have not complied with the governance
conditions
In areas where cities/municipalities and
province fail to comply the governance
requirements, NGAs may implement the
projects.

PROJECT IMPLEMENTATION
A. Coordination between NGAs and LGUs
The participating agencies will coordinate and inform
the LGUs about the requirements for the project
implementation not later March 2015.
RPRATs shall have the operational authority and
accountability to:
- Create Project Management Office composed of full
time staff to provide RPRAT with secretariat and
technical support in implementing and monitoring
BUB, as well as providing LGUs with technical
assistance.
- Facilitate the coordination between LGUs and NGAs

PROJECT IMPLEMENTATION
A. Coordination between NGAs and LGUs

- Coordinate and guide the use of 3% M&E fund for

coordinated action of implementing agencies
- Resolve implementation issues not addressed in
this guideline
- Resolve any grievance raised to the RPRAT or
referred by any oversight agencies
All participating agency shall designate a BuB
focal person in their central office and all their
regional offices.
Provincial government are encouraged to provide
technical assistance to LGUs.

PROJECT IMPLEMENTATION
B. Realignment of Funds
Replacement of projects is no longer permitted.
DBM approval is needed for any realignment of
funds from one allotment class to another
without augmentation of the amount
appropriated for a particular project.

PROJECT IMPLEMENTATION
C. Mode of Implementation
The following projects will be implemented by the
concerned agencies in collaboration with the LGUs.
- Household Electrification Projects under DOE
- SEP and BLEP under NEA
- Projects under DSWD which will be implemented
through CDD approach, unless otherwise
determined by DSWD
- Projects under DEPED, DOH, and TESDA, unless
otherwise determined by these agencies
- CSO CapDev Projects under DILG-LGA

PROJECT IMPLEMENTATION
C. Mode of Implementation
BUB projects, except those mentioned in the
previous slide, may be implemented by the
LGUs provided they meet the following
eligibility standards:
- Technical capabilities as determined by the
participating agency concerned
- Issuance of a single Sanggunian Resolution
authorizing the LCE to enter into MOA with all
BuB the participating agencies

PROJECT IMPLEMENTATION
C. Mode of Implementation
If a city or municipal local government is
ineligible to implement a BuB Project, the project
may be implemented by the concerned
participating agency or by the provincial
government under the following conditions:
- The provincial government has the technical
capability as determined by the participating
agency concerned;
- The provincial government complied with the
requirements of the Good Financial
Housekeeping for the FY2014 Assessment; and

PROJECT IMPLEMENTATION
C. Mode of Implementation
- The city or municipal local government agrees
to have the project implemented by the
provincial government, as attested to by a
letter signed by the mayor and the 3 CSO
signatories; and
- Issuance of a single Sangguniang Panlalawigan
resolution authorizing the LCE to enter into a
MOA with all BuB participating agencies for the
implementation of all BuB Projects.

PROJECT IMPLEMENTATION
C. Mode of Implementation
Agencies and/or LGUs may enter into a
partnership with NGOs or POs for the
implementation of BUB Projects
Communities at the barangay level may also
manage and implement BUB projects provided
that they have had prior experience in
implementing projects through CDD approach.
In case of conflict between agency specific
guidelines and provisions on project
implementation under this Circular, the
provisions under this Circular shall prevail

PROJECT IMPLEMENTATION
D. LGU Counterpart Funding
LGUs must provide a cash counterpart equal to a
percentage of their FY2014 LDF. This must be
sourced from LGU funds, but not necessarily from
LDF.
Ratio of Approved BUB
Budget to the FY2014 LDF

Required Cash Counterpart

Up to 100% of the LDF

10% of the LDF amount

Over 100% up to 150% of the

LDF

15% of the LDF amount

Over 150% of the LDF

20% of the LDF amount

Cities - 40% of the total amount of their approved

projects

PROJECT MONITORING
A. Reporting by LGUs
LPRATs shall meet quarterly to discuss the
progress of BUB projects.
LGUs shall submit quarterly reports on the
progress of their LGSF projects to DILG and DBM
ROs (for infra projects) and NAPC (for ICFP
projects)

PROJECT MONITORING
B. Reporting by NGA Regional
Agency Regional Offices shall submit quarterly
progress reports through online reporting system
DILG shall submit the quarterly report for road
projects under LGSF while NAPC for ICFP projects
under LGSF
Agency Central Offices shall validate the ARO
reports through the online reporting system
within two weeks of the ARO online submission
Reports will be publicly viewable on the
OpenBUB portal

PROJECT MONITORING
C. Monitoring
The RPRAT shall meet quarterly to review the
submission of LGU reports and status of project
implementation
The RPRAT may blacklist any LGU from participating
in next years BUB program for the following reasons:
- Non-completion or grossly unsatisfactory
implementation of projects
- Violation of the RA 9184 or the Procurement Act
A citizen-led monitoring of the implementation of the
BUB projects shall be undertaken by NAPC though
local partners

PROJECT MONITORING
C. Use of 3% M&E Fund
Funding support for M&E of BUB projects has
been provided to participating agencies
- Engagement of personnel
- Conduct of activities in support of the
implementation, monitoring and evaluation of
BUB projects
- Engagement of 3rd party external monitors
RPRATs are enjoined to undertake joint or
coordinated monitoring activities.

Thank you!