602 OFFICIAL GAZETTE Vol. 116, No.

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GENERAL APPROPRIATIONS ACT, FY 2020

Sec. 85. Allocation for Reorganized Depart1ents, Bureaus and Offices of the National Govern1ent, including Constitutional Offices
enjoying fiscal Autono1y aid sues. The a1ount appropriated in this Act for depart1ents, bureaus and offices of the National Govern1ent,
including Constitutional Offices enjoying fiscal autono1y and sues, 1hich 1ere reorganized during the i11ediately preceding fiscal year
and the current year, shall be released to the successor agency subject to any transitory provision in the issuance authorizing its
reorganization.

Sec. 86. Internal Revenue Allot1ent of lGUs. The IRA, 1hich is auto1atically appropriated, shall be apportioned a1ong LGUs,
including provinces, cities, and 1unicipalities created, approved, and ratified in 2019 in accordance with the allocation for1ula
prescribed under Section 285 of R.A. Mo. 7160, taking into consideration the follo1ing:

(a) The land area shall be based on the FY 2001 Land Manage1ent Bureau (LMB) certified Masterlist of Land Area unless the latest LMD
certified Masterlist of Land Area has been validated by the DILG, MAMRIA and representatives of the Leagues of Provinces, Cities
and Municipalities, and endorsed by the Secretary of DEMR and the Chief Minister of the DARMM to DOM on or before Dece1ber Jl,
2019; and

(b) The population shall be based on the FY 2015 Census of Population by Province, City, Municipality and Darangay, as approved
under Presidential Procla1ation Mo. 1269 dated May 19, 2016.

All valid adjust1ents, changes, 1odifications, or alterations in any of the factors affecting the co1putation of IRA that occurred or
happened, including final and executory court decisions 1ade effective, during the current fiscal year, shall only be considered and
i1ple1ented by the DOM in the subsequent fiscal year fro• receipt by the DBM of the notice of said change.

LGUs shall include in their budgets inco1e fro1 both local and external sources, including the a.aunt of their IRA, based on the
allocation by the DOM, and receipts fro1 borro1ings, 1hich shall be approved by their respective sanggunian. Me1ber-1Unicipalities of the
Partido Developient Ad1inistration 1ay charge the capitalization require1ent under R.A. Mo. 7820 against their respective IRA.

Enforce1ent of the Personnel Services li1itations under Sections J25 (a) and JJl (b) of R.A. Mo. 7160 shall be 1aived to enable
LGUs to: (i) absorb the cost of hospital services transferred fro1 provinces to nelly created cities; (ii) pay the CMA incentives of their
e1ployees upon co1pliance 1ith the rules and regulations issued by the DOM; (iii) pay the retire1ent and ter1inal leave benefits,
including the 1onetization of leave credits of their e1ployees; and (iv) pay the 1ini1u1 year-end bonus of One Thousand Pesos (Pl,000)
for the punong barangay and Six Hundred Pesos (P600) for other 1andatory barangay officials, and their cash gifts.

The IRA and all LGU shares appropriated herein shall be directly released by the DTr to the LGU beneficiaries through authorized
govern1ent servicing banks.

Sec. 87. I1ple1&ntation of Nationally Funded Projects. Pursuant to Section 17 (c) of R.A. Mo. 7160, the National Govern1ent 1ay
designate LGUs as i1ple1enting agencies for public 1orks, infrastructure projects, including the construction of local roads, other
facilities, services and other progra1s appropriated in this Act of the follo1ing agencies: Depart1ent of Public lorks and High.ays
(DPIH), Depart1ent of Agriculture (DA), National Irrigation Ad1inistration (MlA), Depart1ent of Health (DOH), Depart1ent of Social lelfare
and Developient (DSMD), Depart1ent of Education (DepEd), Depart1ent of Environ1ent and Natural Resources (DUR), Departlent of the
Interior and Local Govern1ent (DILG), and the Departlent of Transportation (DOTr), subject to the follo1ing:

(a) The LGU has the capability to i1ple1ent the foregoing by ad1inistration or contract and in accordance 1ith the design, plan,
specifications, ·and such other standards and policies of the National Govern1ent;
(b) The LGU-recipient of nationally funded local public 1orks and infrastructure projects and other progra1s, services and
facilities shall co11it to fund the cost of 1aintenance and repairs thereof; and
(c) The a1ounts appropriated to LGUs shall be released during the fiscal year to be deposited in a trust fund and shall be 1ade
available for disburse1ent for the purpose specified until Dece1ber Jl, 2021.

After the end of validity period, any unreleased appropriations shall lapse, 1hile undisbursed funds shall revert to the
unappropriated surplus of the General Fund in accordance 1ith Section 28, Chapter 4, Book VI of E.O. Mo. 292.

The LGU shall sublit quarterly reports on fund utilization and acco1plish1ents through other electronic 1eans and LGU's 1ebsite.

The LGU shall send 1ritten notice 1hen said reports have been sublitted or posted on its 1ebsite to the DOM, House of
Representatives, Senate of the Philippines, House Co11ittee on Appropriations, Senate Co11ittee on Finance, and other offices •here the
sublission of reports is required under existing las, rules and regulations. The date of notice to said agencies shall be considered the
date of co1pliance 1ith this require1ent.