BORONGAN, July 19, 2019–A total of P1 billion will be allocated to finance 173 local development projects in Eastern Visayas under the Assistance to Municipalities (AM) Program of the Department of the Interior and Local Government (DILG).
This is the region’s share from the P11.714 billion overall AM fund that will support 1,373 municipal projects across the country.
DILG Provincial Director Visitacion V. Giva clarified, however, that only those Local Government Units (LGUs) that complied with several good governance requirements will be endorsed for the direct download of AM funds from the Department of Budget and Management (DBM).
“There are two requirements. LGUs need to pass DILG’s Good Financial Housekeeping (GFH) and the Local Development Council (LDC) Functionality Assessment which will determine their financial capabilities based on the financial report of the Commission on Audit (CoA),” Giva added.
Out of 22 municipalities, only Mercedes and Lawaan failed to comply with the requirements for the AM program in Eastern Samar.
While the 2 municipalities were able to submit a Public Financial Management (FDM) Improvement Plan, they failed to pass the GFH which resulted to ineligibility to the program.
To recall, DILG Secretary Eduardo M. Año explained in a statement that while AM program will finance a major part of the projects, LGUs should have the financial capacity to cover preliminary and administrative costs.
“Municipal governments need to shell out counterpart funds to cover expenses incurred in the conduct of preliminary activities,” Año said.
This means that LGUs will have to fund preparatory activities such as community consultations; securing clearances and permits; feasibility study preparations; surveys; detailed engineering design preparations; procurement activities; water drilling explorations; pump test/water quality test, among others.
Municipal Mayors will also have to issue an executive order to create or reactivate Project Monitoring Committees which will ensure the effective implementation of the projects.
The budget allocation for municipalities is based on the its equal share, fiscal capacity, per capita share and share for good performance. (Nikko Bajado / ESTE News)