Joint Memorandum Circular (JMC) No. 2021

DiLG
DEPARTMENT OF BUDGET AND MANAGEMENT

DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Joint Memorandum Circular (JMC) No. 2021 -

Date: August 12, 2021
TO All Heads of Departments, Agencies, Bureaus, and Offices Concerned

of the National Government, including Government-Owned or-
Controlled Corporations (GOCCs), and All Others Concerned
SUBJECT GUIDELINES ON THE PREPARATION OF THE DEVOLUTION

TRANSITION PLANS OF THE NATIONAL GOVERNMENT
AGENCIES CONCERNED IN SUPPORT OF FULL DEVOLUTION
UNDER EXECUTIVE ORDER (EO) NO. 138S S. 2021
1.0 Background/Rationale
1.1 This JMC is being issued pursuant to Section 5 of EO No. 138 dated 01 June
2021, which requires that the national government agencies (NGAs)
concerned and all local government units (LGUs) shall prepare their respective
devolution transition plans (DTPs) which shall conform to the guidelines to be
jointly issued by the Department of Budget and Management (DBM) and the
Department of the Interior and Local Government (DILG).
Specifically, the NGA DTP shall identify andi clarify the functions and services
devolved to the LGUs based on Republic Act (RA) No. 7160 or the Local
Government Code (LGC) of 1991 and other relevant laws, and the strategy
for and phasing of devolution to the LGUs. The NGA DTP shall likewise include
the definition of standards for the delivery of devolved services; strategy for
the capacity development of the LGUs; framework for monitoring and
performance assessment of the LGUs; and an organizational effectiveness
proposal to strengthen the department/agency in assuming steering functions
as part of the devolution efforts.
1.2 Consistent with the policies of decentralization and local autonomy espoused
under the 1987 Philippine Constitution, Section 2 (a) of RA No. 7160 declares
that the State shall provide for a more responsive and accountable local
government structure instituted through a system of decentralization whereby
the LGUs shall be given more powers, authority, responsibilities, and
1 Full Devolution of Certain Functions of the Executive Branch to Local Governments, Creation of a Committee on Devolution, and
for Other Purposes
Page 1 ori.t
resources. The process of decentralization shall proceed from the national
government to the LG Us.
1.3 The Supreme Court (SC) ruling on the Mandanas-Garcia2 cases will
significantly increase the tax base to be used for the computation of the total
shares of the LGUs in the national taxes starting FY 2022. This means that
there will be greater funds available for use by the LGUs to undertake the
provision of basic services and facilities devolved under Section 17 of RA No.
71603 and other pertinent legislative measures.
As such, this will enable the LGUs to contribute more substantially in the
growth of the economy, creation of jobs, and promotion of the welfare and
development of their constituencies, which have become more important
because of the pandemic.
1.4 Relatedly, under National Budget Memorandum (NBM) No. 1384 dated 06
January 2021, in view of the implementation of the aforesaid SC decision,
departments/agencies are advised to focus on the development of policy and
service delivery standards, provision of technical assistance, monitoring and
performance assessment of the LGUs.
Specifically, the NGAs concerned are directed to 1) refrain from including

funding for devolved local projects for the LGUs belonging to the 1st to 4th
income classifications in their budget proposals, 2) include funding
requirement for capacity building of the LGUs to enable them to assume these
devolved functions, and 3) limit subsidies for local projects to the LGUs
belonging to the 5th and 6th income classes, the geographically isolated and
depressed areas (GIDAs), and those with the highest poverty incidences,
ranked in top third highest.
2.0 Strategic Review of Thrusts and Priorities Towards Full Devolution
2.1 Section 4 of EO No. 138 directs the full devolution of the functions, services,
and facilities as provided under Section 17 of RA No. 7160 and other existing
laws which subsequently devolved functions from the national government
(NG) to the LGUs by not later than the end of FY 2024.
2.2 The implementation of the SC ruling and EO No. 138 presents the NGAs
concerned, used herein to refer to departments/agencies or GOCCs with
functions devolved to the LGUs, a unique opportunity to finally hand over to
the local governments the responsibility of providing devolved basic goods and
services, and shift their focus to capacitating and assessing the performance
of the LGUs. At the same time, the NGAs can start to address urgent and
strategic challenges facing the country, such as strengthening the health care
sector, reviving the economy due to the pandemic, and addressing the issues
1 “Congressman Hemiilando 1. Mandanas. et al. vs. Executive Secretary Paquito N. Ochoa, et al. and Honorable Enrique T. Garcia
vs. Honorable Paquito N. Ochoa, et al." (G.R. Nos. 199802 and 208488)
■ National agencies or offices concerned shall devolve to the LGUs the responsibility for the provision of basic services and facilities
enumerated under Section 17 ofRA No. 7160. Other pertinent sections of the LGC include Sections 447, 458, and 468.
4 National BtiJget Call for FY 2022
Page 2 of 13
of the 4.0 Industrial Revolution, climate change, and disaster management,
among others.
2.3 Thus, to enhance economic recovery and strengthen fiscal sustainability, the
LGUs should start to fully and permanently assume all functions which have
already been devolved under RA No. 7160 and other pertinent laws, but are
currently being performed/implemented and funded by the NGAs. This can be
done gradually, depending on the resources and capacity of the different
LGUs, for three (3) years or not later than FY 2024, pursuant to Section 4 of
EO No. 138. The status of this devolution transition effort will be reported
annually to the President as provided under Section 7 (h) of EO No. 138.
2.4 The overriding objective of the full devolution transition process is to enable a
timely and seamless handover of the devolved functions to the LGUs starting
FY 2022, and ensure the continual efficient and effective provision of basic
goods and services to the public by assisting the LGUs to address capacity
gaps and by setting common standards which the LGUs can follow in the
delivery of these goods and services.
2.5 To guarantee the prioritization of the initiative, the NGAs concerned are
required to recalibrate their thrusts, plans, and priorities to reflect the
progressive operationalization of full devolution of basic services and facilities,
at both the NGA and LGU levels.
3.0 Identification of Functions, Services, Facilities and/or Programs/Projects/

Activities (PPAs) for Phasing Out or Scaling Down by the NGAs Concerned
and Unbundling of the Devolved Functions
3.1 The functions/services/facilities and PPAs to be phased out or scaled down by

the NGAs shall be consistent with those devolved under Section 17 of the LGC,
as amended by pertinent laws. The phasing out or scaling down of the PPAs
is necessary to sustain a manageable public sector deficit, increase the fiscal
space left to the NG for major national programs and projects, and to
empower and provide flexibility to the LGUs in the phasing and
implementation of the devolution in FY 2022 onwards.
The proposed phasing out or scaling down may be done in phases \N\\h\n a
three (3) year transition period, pursuant to Section 4 of EO No. 138, which
provides that the full devolution of functions, services and facilities shall be
undertaken not later than the end of FY 2024. Moreover, as suggested in
Sections 2.6 and 2.7 of NBM No. 138, the NGAs may first phase out/scale
down the implementation of local projects in the richest and most capable
LGUs (i.e., 1st to 4th class LGUs) and provide technical assistance to these
LGUs when requested. This will enable the NGAs to focus their financial and
technical assistance to the least financially able LGUs (i.e., 5th and 6th class
LGUs), particularly those with the highest poverty incidences and have
multiple GIDAs.
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3.2 Simultaneously, the NGA functions/services/facilities which have been
devolved shall be unbundled/disaggregated with specific responsibilities
identified to the level of LGU which is deemed best to undertake and/or
finance the same, consistent with existing relevant laws and based on the
experience and assessment of the NGA or GOCC.
The degree of subsidiarity or externality of benefits, economies of scale, and

equity impact of the function shall determine the unbundling of the function
and assignment of specific responsibilities to each level of LGU.
3.3 The NGA concerned is advised to transition from directly providing devolved
functions/services/facilities to communicating and transferring the execution
of the same to the LGUs starting FY 2022.
The LGUs will be expected to gradually start financing and delivering these
devolved services following their thrusts and priorities under their local plans
and investment programs. The autonomy afforded under RA No. 7160 to the
LGUs must be recognized, and hence, the NGAs are encouraged to coordinate
their transition strategies with the LGUs most important to the achievement
of their sectoral goals and strategies under the Philippine Development Plan
and the Regional Development Plans through their Leagues.
3.4 In cases where the NGAs deem it not feasible to fully devolve certain functions
to the 1st to 4th class LGUs by FY 2022, the NGAs shall present strong
justification for retaining the pertinent PPA in their proposed budgets and
provide a time-bound plan that will address capacity building and other
concerns to prepare the LGUs for the full devolution of functions at the soonest
feasible time, i.e., within three (3) years or from FY 2022 to 2024.
4.0 Principles Guiding the NGA Devolution Transition Plans
4.1 The conduct of the organizational review by the NGAs concerned and the
unbundling/delineation of the devolved functions by level of LGUs shall be
guided by the following principles, consistent with Section 2 of EO No. 138:
a) The proper role of the NG is to set the national policy, development

strategies, and minimum service delivery standards, and to assist,
oversee, and supervise the LGUs, complementary to the stronger role in
the implementation of direct service delivery that the LGUs shall assume
by reason of full devolution.
Flence, the NGAs shall identify necessary improvements in their

organizational set-up and staffing which will enable them to efficiently
and effectively conduct their steering functions. Said improvements shall
be based on the "scrap and build" policy, wherein existing vacant
funded positions which are considered obsolete/unnecessary shall be
abolished to support the creation of new position/s.
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b) Aside from the legal mandates, the determination of which NGA functions
and tasks would be best (i) fully devolved to the LGUs, (ii) left to the
NGA, and (ill) shared between the NGA and the LGU, shall be guided by
the following principles:
1) Public services with little or no benefit spillover (i.e., public services

whose benefits are local in scope) are best administered and
financed by lower level governments, while public services with
significant inter-jurisdictional externalities or benefit and cost
spillovers are best assigned to higher levels of government;
2) The provision of public goods and services that involve economies of

scale is best assigned to higher levels of government; and
3) Functions related to the redistributive role of government should be

assigned to the NG.
c) The NGA, in close consultation with the LGUs through their respective
Leagues, shall formulate and pursue an institutional development
program for the LGUs in order to strengthen their capacities and
capabilities to fully assume the devolved functions based on RA No. 7160
and other relevant laws, at the shortest possible time.
Considering, however, that the LGUs shall have the authority to

determine the functions and services that they shall pursue, the NGAs
are advised to focus on the set of LGUs most critical to the fulfilment of
their target outputs, outcomes, and sector objectives, for capacity
building and performance assessment. The NGAs may likewise come up
with mechanisms to incentivize these LGUs to take on the devolved
functions and services, such as entering into memoranda of agreement
with the LGUs for the provision of technical assistance.
The capacity development plan of the NGAs for the LGUs should consider
the aspects of planning, management, implementation, and monitoring
and reporting with regard to the delivery of the devolved functions and
services.
d) To promote harmonization, convergence, and prioritization in the

provision of needed capacity development interventions to the LGUs, the
NGAs shall be guided by the provisions of EO No. 138 and its
implementing rules and regulations5 (IRR), and other guidelines and
standards to be promulgated by DILG through the Local Government
Academy (LGA).
5 Dated July 2, 2021
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5.0 Preparation of the NGA Devolution Transition Plans
5.1 All departments, agencies and instrumentalities concerned in the Executive

Branch shall conduct a review of their respective thrusts, priorities, strategic
plans, mandates, and functions to reflect the progressive operationalization of
the full devolution of basic services and facilities to the LGUs within three (3)
years.
The NGAs with devolved functions and services to the LGUs pursuant to RA
No. 7160 and other pertinent laws, as indicated under Annex A of the IRR of
EO No. 138 and as Attachment 1 hereof, shall prepare their respective DTPs
to ensure the smooth implementation of said EO.
5.2 Consistent with Section 5 of EO No. 138, department secretaries/agency heads

concerned shall lead and oversee the preparation and implementation of their
respective department's/agency's DTP to ensure the smooth implementation
of this full devolution transition. The DTP shall cover all
functions/services/facilities that have been devolved to the local
governments in line with RA No. 7160 and other pertinent laws, specifically
highlighting those which are yet to be handed over to the LGUs.
5.3 For a holistic and coordinated approach to the full devolution transition effort,
the DTP shall be from the perspective of the whole department. Hence, there
shall only be one (1) DTP for each department, which shall already cover the
agencies and GOCCs attached to it or under its control or administrative
supervision.
The central offices shall coordinate the formulation of the DTPs of the
pertinent bureaus, regional offices, attached agencies, and GOCCs affected by
the devolution. They shall ensure that these support the same principles,
vision, thrusts, and directions in the DTP of the department.
Hence, it is understood that the department has studied and supports the
DTPS prepared by its pertinent bureaus, attached agencies, and GOCCs, and
their interphases and value contributions. The DTPs of the attached
agencies/GOCCs shall be endorsed or signed off by the Department Secretary
concerned or his/her authorized representative prior to their submission to
the DBM.
5.4 The NGAs concerned, through their regional and field offices, are likewise
encouraged to consult and coordinate with the LGUs and the LGU Leagues to
enhance the likelihood of consistency between the NG and the local
government transition plans, as well as understand the issues and gaps in the
capacity and resources of the LGUs. This is in view of the different resources,
geographical situations, and other circumstances facing the LGUs.
A focal unit/person in charge of the devolution of functions may be designated

in the department/agency to ensure that coordination with the LGUs is
maintained.
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5.5 Further, pursuant to Section 38 of the IRR of EO No. 138, non-government
organizations (NGOs)/civil society organizations (CSOs)/people's organizations
(POs) are encouraged to participate in the preparation, implementation, and
monitoring of the DTPs of the NGAs concerned through consultations and
public dialogues. Relatedly, the NGAs are reminded to ensure that their DTPs
have undergone consultation with the NGOs/CSOs/POs during its preparation
and prior to its implementation.
5.6 To facilitate this process, the departments concerned shall organize and assign
their respective Devolution Transition Committee (DTC), to be called the
Department DTC, consisting of the attached agencies and GOCCs, and
headed by a senior official second in rank to the head to coordinate and
oversee the entire process. The agencies and GOCCs concerned are not
precluded to establish their own DTCs, to be called the Agency DTC. The
constitution of these committees and the names of their heads shall be
submitted to the Secretariat of the Committee on Devolution created under
EO No. 138 for communications and monitoring purposes.
5.7 Agencies and instrumentalities not under the control or supervision or

attached to a department shall prepare and implement their own DTPs in
consultation and coordination with the DBM and DILG.
6.0 Contents of the NGA Devolution Transition Plans
6.1 The NGA DTP shall comprise a narrative report, with the following seven (7)
elements, and each element supported by annexes:
a) Strategic directions/shifts. This will lay out the strategic vision of

what the department/agency/GOCC should or intends to do considering
the changes in its work as a result of the full devolution of certain
functions it is currently performing to the LGUs.
It will include the objectives, goals and expected outcome, as well as the
strategies or approaches taken in the formulation of the DTP, including
the coordination of efforts of the affected department, its bureaus,
attached agencies, and GOCCs. It will also present the new thrusts and
emerging challenges which the NGA intends to address as part of the
strengthening of its steering functions. Further, it shall indicate which
functions/PPAs of the NGA will be strengthened, scaled down, phased
out, and/or abolished.
b) Assignment of functions, services and facilities to each level of

government. This will include the identification of the: (i) appropriate
assignment of functions, services and facilities to each level of
government, determining the specific level of LGU wherein said functions
and services have been or can be devolved and transferred to, based on
RA No. 7160 and other relevant laws (Annex A); and (///implementation
strategy and phasing of the devolution transition activities, subject to the
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capacity and resources of the LGUs to take on these devolved functions,
based on the experience and assessment of the NGA (Annex B).
Please note that these two (2) annexes will be shared with the LGUs,
and hence, must be definitive with regard to the legal bases and clear in
terms of the delineation of functions and tasks by level of LGU.
The specific list of priority or pilot LGUs which shall be assuming the
devolved PPAs that will be scaled down/phased out by the NGA per
devolution phase may be included as an attachment to Annex B, if
already identified.
c) Service delivery standards. The identification and inventory of

standards for the delivery of devolved services, which cover the minimum
cost, scope, specifications, and quality of the services to be delivered by
the LGUs according to the hierarchy of LGU (Annex C-1). Among the
objectives of devolution is to ensure that the LGUs abide by common
standards in the delivery of services pertinent to them. It is understood
that these standards and underlying processes and programs may be
changed and improved by the LGUs over time, depending on their
capacities and innovativeness. Hence, it will be preferable to provide
service standards which are outcome-based. Annex C-1 will be shared
with the LGUs, and the Development Academy of the Philippines (DAP)
and LGA for use in the capacity development of the LGUs.
Copies of existing pertinent NGA issuances, guidelines, and manuals shall

be attached or provided in the DTP.
Moreover, these service standards may include the recommended

associated minimum organizational structure and staffing complement in
the LGUs which can undertake the devolved services based on the NGA's
experience and/or assessment and in consultation with the LGUs
(Annex C-2). Identifying and working with the existing, especially the
mandatory organizations and positions in the LGUs, will facilitate the
capacity building, pending the creation of new units and hiring of
additional personnel by the LGUs. Annex C-2 is also intended to be
shared with the LGUs.
The NGAs can approach the DAP to train pertinent personnel/unit in the
development of the needed standards for LGU service delivery, as well
as in the formulation and development of the DTP.
d) NGA capacity development strategy. To enable the NGAs to

effectively and efficiently perform their steering, as well as monitoring
and evaluation functions, in view of this devolution effort, they can
identify the capacity development strategies and interventions needed to
strengthen the relevant units and personnel in their organization, and
the timelines for the purpose (Annex D).
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e) LGU capacity development strategy. This shall include the strategy
for capacity development of the LGUs to enable them to fully absorb and
manage the devolved functions and services by FY 2024, which shall
include the checklist of criteria and conditions necessary to determine
the readiness of the LGUs to take on the delivery of the devolved
functions/services consistent with their local growth priorities and
resources. The strategies and activities indicated under Annex B shall be
further detailed and supported by the modes of technical assistance to
be provided by the NGA to the LGUs under Annex E. Other capacity
development requirements shall be anchored on the LGA's LGU capacity
development framework. Annex E shall likewise be shared with the LGUs.
f) Performance monitoring and assessment framework. The

systems and mechanisms, whether existing or new, for monitoring and
performance assessment of the LGUs in undertaking the devolved
functions, including the imposition of incentives and sanctions provided
by pertinent laws, shall be contained in Annex F, which shall be shared
with the LGUs.
It will be important for the NGAs to come up with their own performance
monitoring and assessment framework, if not yet established, to ensure
that they are able to effectively and efficiently monitor and assess the
performance of the LGUs in the delivery of the devolved functions and
services.
g) Organizational effectiveness proposal (OEP). This will present the

organizational changes proposed to be effected in order to ensure that
the department/agency/GOCC will be able to perform its "steering
functions" efficiently and effectively as a result of the full devolution
effort.
The OEP shall contain the following components:
1) Modifications in the organizational structure of the

departments/agencies/GOCCs concerned, as applicable, stating the
specific changes in the offices/units in said
department/agency/GOCC (Annex G-1).
This may include offices/units which could be:
i) Abolished6 or deactivated7;
ii) Merged8 or consolidated9;
6 Abolition refers to the elimination of an obsolete urmecessary organizational unit.

7 Deactivation is the act of making dormant or non-operational an organizational unit by phasing out its functions or transferring them
to other units. An organizational unit is rendered dormant or non-operational if its operation is terminated but its formal existence
continues. A deactivated organizational unit is devoid of any activity, personnel, financial and physical resources.
8 Merger is the combination of two (2) or more organizational units, whereby the identity of one is retained and the other is abolished
or deactivated (A + B ^ A or B).
9 Consolidation is the dissolution of two (2) or more organizational units to form a new unit (.\ + B = C).
Page 9 of 13
iii) Transferred to other offices/units within the
department/agency/GOCC where they are appropriately
subsumed or where their functions are more aligned; and/or
iv) Created, if no other existing offices/units in the
department/agency/GOCC are performing their intended
functions given the strengthening of the "steering" role of the
NGAs.
The functional description of offices/units as a result of the

downscaling and/or strengthening of their functions in view of the
changes in the organizational structure of the
department/agency/GOCC shall likewise be presented.
2) Modifications on the staffing complement of the

departments/agencies/GOCCs concerned, specifying the number of
personnel who are affected by the devolution efforts (Annex G-2).
This may include positions which may be: abolished10, transferred11,
reclassified12, converted13, retitled14, and/or created15, in line with
the organizational changes to be adopted in the
department/agency/GOCC.
As regards the number of personnel who are affected by the

devolution effort and would want to avail of the separation
incentives, the NGA DTP shall identify which among the options16
under Section 12 of EO No. 138 will be availed of by the affected
personnel, for processing by the DBM (Annex G-3).
Departments/Agencies may include, as an attachment to this annex,

the list of non-permanent personnel (contractual, casual, or contract
of service/job order) who are involved in the implementation of
devolved services and are affected by the full devolution effort, for
ready reference; and
3) Modifications in resource allocation, highlighting the effects of the

revised set-up on the budgetary allocations of the
departments/agencies/GOCCs concerned (Annex G-4).
10 Abolition is the elimination of an obsolete and or unnecessary' position.

11 Transfer is the movement of an employee from one organizational unit to another in the same department agency, or from one
department or agency to another, which is of equivalent rank, level or salary.
13 Reclassification is a form of staffing modification or position classification action which may be applied only when there is a
warranted substantial change in the regular duties and responsibilities and/or qualifications of the incumbent of the position, as
determined by the DBM.
13 Conversion is a form of reclassification which only applies to vacant positions wherein a position shall be abolished and the
appropriate position shall be created in their stead.
14 Retitling is a form of reclassification which involves a change in the position title without any change in salary grade allocation.
15 Creation of positions mu.st observe the “scrap and build” policy wherein new positions may be proposed as long as there are
corresponding obsolete unnecessary but funded position s W'hich may be abolished to support the creation of the new position s.
16 Personnel hired on a pennanent basis who may he affected by the devolution effort shall have the option to: 1) transfer to other
offices/units w'ithin the department agency GOCC concerned without reduction in pay; 2) transfer to other
departments agencies/GOCCs in the Executive Branch without reduction in pay; or 3) avail of the retirement .separation benefits
and incentives and. subject to the discretion of the LGUs. apply to vacant positions therein.
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6.2 The attached annexes shah be used to facilitate the preparation by the NGAs
concerned of their respective DTPs. The departments/agencies/GOCCs could
provide other supporting documents and information that they deem are
relevant or necessary to include in their DTPs. Said additional supporting
documents and information may be included as attachments in their
respective DTPs.
The annexes for the DTPs shall be accomplished and form an integral part of
the DTPs. The specific instructions/guide on filling out the attached DTP
templates are indicated in each annex.
As mentioned, since Annexes A, B, C-1, C-2, E and F shall be shared with the
LGUs for their reference in formulating their DTPs, the same should be clear,
useful and doable.
Hence, the NGA is encouraged to consult the LGUs so that the NGA and LGU
DTPs shall complement and support each other.
6.3 The departments and agencies concerned shall ensure that their DTCs, or
their regional offices (ROs) or field units shall be ready to respond to the LGUs'
requests and queries, and ensure the alignment of national and regional
objectives, as well as the implementation of the NGA and LGU DTPs.
For this purpose, each department and agency shall make available in their
respective websites the contact details of the focal person/s and office/s
concerned in their DTCs or ROs/field units whom the LGUs may contact for
any queries and requests.
6.4 The NGAs concerned may consult and collaborate with the DILG, National
Economic and Development Authority (NEDA), Department of Finance (DOF),
Civil Service Commission (CSC), and the DAP and other resource institutions
for technical assistance in the preparation of their respective DTPs.
7.0 Submission of NGA Devolution Transition Plans
7.1 The DTPS prepared by the departments/agencies/GOCCs concerned shall be

submitted, in soft and hard copies, by the department concerned to the DBM
for evaluation and approval on or before 30 September 2021, which is
one hundred and twenty (120) calendar days from the effectivity date of EO
No. 138.17
Said DTP shall be signed by the head of the department/agency/GOCC and

endorsed by its Department/Agency DTC.
7.2 Agencies and instrumentalities not under the control or supervision or

attached to a department shall submit their DTPs directly to the DBM for
evaluation and approval.
Said EO was published in the Official Gazette on June 2. 2021.
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7.3 Departments/Agencies/GOCCs are strongly encouraged to submit their
respective DTPs as early as possible, before the aforesaid deadline, in order
to provide timely reference and guidance to the LGUs in the preparation of
their respective DTPs.
8.0 Evaluation and Approval of the NGA Devolution Transition Plans
8.1 The DBM shall evaluate and approve the NGA DTPs within one hundred twenty
(120) calendar days upon receipt of the completed DTP, with the required
narrative and complete and properly filled out annexes, and the submission
of all other required information and supporting documents for the purpose,
consistent with Section 14 of the IRR of EO No. 138.
8.2 Whenever necessary, the DBM shall consult the DILG, NEDA, and DOF on
concerns regarding the evaluation of the NGA DTPs, and shall refer to the
Governance Commission for GOCCs (GCG) needed actions for those GOCCs
under its jurisdiction (e.g., organizational and staffing changes).
The proposed changes in the organizational structure and staffing

complement by the NGAs shall be evaluated by the DBM pursuant to existing
laws, rules and regulations.
8.3 The NGA DTPs to be submitted in line with EO No. 138, shall be consistent
with the initial DTPs previously submitted to the DBM pursuant to NBM No.
138 for consideration in their respective FY 2022 budget proposals.
Departments/Agencies/GOCCs which have previously submitted their

complete accomplished DTP annexes shall inform the DBM in writing should
they intend to revise the same given the requirements of EO No. 138 and its
IRR.
The changes in the PPAs of the NGAs concerned and other pertinent proposals
(e.g., capacity development interventions of the NGA concerned to the LGUs)
based on the submitted DTPs under EO No. 138, which are on top of the
changes/proposals based on the submitted DTPs under NBM No. 138 and
cannot be accommodated under the existing/approved budgets of the NGAs
concerned for FYs 2021 and 2022, shall be evaluated for possible
consideration in their FY 2023 budget.
8.4 The NGAs concerned shall update their respective DTPs upon the approval of
the FY 2022 General Appropriations Act, as may be necessary, to consider the
applicable provisions and possible adjustments in the budgetary allocations of
the NGAs.
8.5 For transparency and to provide stakeholders with access to information

regarding the NGA DTPs, an online portal through the DBM and DILG websites
shall be set up wherein the approved NGA DTPs will be posted.
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9.0 Separability
If, for any reason, any part or provision of this JMC is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain in full force
and effect.
10.0 Effectivity
This JMC shall take effect immediately following its complete publication in the
Official Gazette or in a newspaper of general circulation.
aSADO EDUARD^^ANO
Secretary, DBM Secretary, DILG
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DBM-DILG Joint Memorandum Circular No. 2021-2 dated 12 August 2021
LIST OF ANNEXES
Annex A Matrix on the Unbundling of Programs, Projects, and Activities (PPAs) of the
National Government Agencies (NGAs) to Different Levels of Government
Annex B Implementation Strategy and Phasing of Devolution Transition Activities
Annex C-1 Registry of Service Standards for the Delivery of Devolved Functions, Services and
Facilities
Annex C-2 Summary of Recommended Organizational Structure and Staffing Complement for
the LGUs
Annex D Matrix on the Capacity Development Strategy for the National Government
Agencies (NGAs)
Annex E Matrix on the Capacity Development Strategy for the Local Government Units
(LGUs)
Annex F Matrix on Monitoring and Performance Assessment of the LGUs in Undertaking
the Devolved Functions
Annex G-1 Organizational Effectiveness Proposal: Summary of Offices/Units to be Abolished,
Merged/Consolidated, Transferred, and/or Created
Annex G-2 Organizational Effectiveness Proposal: Summary of Positions to be Transferred,
Reclassified, Converted, Retitled, Abolished, and/or Created
Annex G-3 Organizational Effectiveness Proposal: Summary of Affected Personnel for
Deployment to Other Departments/Agencies/GOCCs, Who Opted to
Retire/Separate from the Service, and Apply to Vacant Positions in the LGUs
Annex G-4 Organizational Effectiveness Proposal: Summary of Modifications in Resource
Allocation
Annexes for the Devolution Transition Plans of National Government Agencies
DBM-DILG Joint Memorandum Circular No. 2021-2 dated 12 August 2 02:
ANNEX A
Matrix on the Unbundling of Programs, Projects, and Activities (PPAs) of the National Government Agencies (NGAs)
to Different Levels of Government
rPepartment/Agencv/GOCCI
Assignment per Level of Government

(NG - National Government; Appropriation
Function /Service/Facility/ in Decentralization Principle and
P — Province;
Program/Project/Activity Legal Basis Other Remarks to Delineate the PPAs to be
C - City; M - Municipality; B - Barangay) FY 2021 GAA
[1] Please tick off/ mark appropriate column(s). (in PhP M) [4] Assigned to Each Level of LGU
One oer row oniv. [5]
[3]
[2]
NG p c M B
1. 0. PPA # 1 CMay come from the GAA) XXXX RA/EO. s. Xxxx (Principles/rationale/justifications and other remarks)
1. 1. Component # 1 (C.l) of PPA # 1 X xxxx RA/EO, s.__ Xxxx (Discussion on disaggregated PPA to be performed by
the NG, to be further disaggregated into the central office
and the reqional/field offices)
X XXXX RA/EO, S.__ Xxxx (Discussion on disaggregated functions/services/ PPAs
devolved to the provinces)
X xxxx RA/EO, S.__ Xxxx (Discussion on disaggregated functions/services/ PPAs
devolved to the cities)
X xxxx RA/EO, S.__ Xxxx (Discussion on disaggregated functions/services/ PPAs
devolved to the municipalities)
X xxxx RA/EO, s.__ Xxxx (Discussion on disaggregated functions/services/ PPAs
devolved to the baranqavs)
1. 2. Component # 2 (C.2) of PPA # 1
2. 0. PPA # 2
2. 1. Component # 1 (C.l) of PPA # 2
Page I of29
DBM-DILG Joint Memorandum Circular No. 2J21-2 dated 12 Aj.g-sz 222 1

f/Vtj - National Government; Appropriation
Function /Service/Facility/ P-Province; in Decentralization Principle and
Program/Project/Activity Legal Basis Other Remarks to Delineate the PPAs to be
C — City; M — Municipality; B — Barangay) FY 2021 GAA
[1] Please tick off/mark appropriate coiumn(s). (in PhP M) [4] Assigned to Each Level of LGU
One per row oniv. [5]
[3]
, [2] ,
NG 1 P 1 C I M I B
u. PPA # 3
3. 1. Component # 1 (C.l) of PPA # 3
3. 2. Component # 2 fC.2) of PPA # 3
Prepared by: Reviewed by: Approved by:
Name and Position/Designation Name and Position/Designation Department/Agency Head
Legend;
[1] Specifies the department/agency devolved function, service, facility, program, project, and/or activity (PPA) to be disaggregated or unbundled per level of government, including all devolved services which are already
being performed by the LGUs (Note: The PPA may not necessarily correspond to a line item in the agency budget.)
[2] Identifies which level of government the function/service/facility/PPA shall be appropriately assigned to
[3] Indicates the corresponding budget tagged on each function/service/facility/PPA and the budget assigned per level of government, if feasible
[4] Identifies the pertinent legal bases directing or mandating the assignment and devolution of the function/service/PPA to local governments, indicating the year the function/service/facility/PPA was devolved, e.g..
Republic Act No. 7160 [Local Government Code (LGC) of 1991] and pertinent laws/executive issuances
[5] Discusses briefly the principle/s governing the devolution/decentralization of the function/service/PPA, rationale/justifications and other important considerations, specificaliy identifying and disaggregating the PPAs
assigned to the central office (CO), regional offices (ROs), down to each level of LGU
Notes and Guide Questions:
1. The purpose of this template is to help the national government agencies (NGAs) think through and provide greater clarity in the assignment of functions across the different levels of government. When government functions
are broadly articulated, many of them would appear to be the shared responsibility of both the national and local governments. This may result in the duplication of efforts on the part of both the national and local governments
and/or in an overall failure to meet the demand for much needed services. At the same, it tends to blur the lines of accountability and responsibility of the national government vis-a-vis the local government units (LGUs).
Hence, the detailed specifications of the duties and responsibilities that will be retained by the departments and agencies versus those that can be devolved to the LGUs are important. Thus, the NGAs are strongly advised to
consult their respective operations units, including regional offices, to seek the lessons they have learned, and consult with the LGUs to seek their inputs, as emphasized during the consultation meetings.
Paw’of 29
2. In more specific terms, this template is designed to assist the NGAs to unbundle or deconstruct their PPAs in such a way that each component part of an NGA's PPA may exclusively be assigned to different levels of government,
and in a manner that is aligned with the list of functions assigned to the different levels of LGUs under the 1991 LGC, as well as other relevant laws (Refer to column [4]).
PPAs are a detailed disaggregation of activities and projects under a function. They should not be construed to be the same as a program, activity and project (PAP) or line item under the agency budget. PPAs may, but not
necessarily, be the same as an agency budget line item.
3. Relatediy, identifying and disaggregating the PPAs from those to be assigned to the CO, ROs, down to each level of LGU, will avoid redundancies and/or unnecessary overlaps. The agency should provide sufficient/strong
justification/explanation for the proposed retenbon of a PPA under the NG. These shall be discussed in column [5].
4. The decomposition of broadly articulated government functions by level of government may be done in a number of ways.
One, broadly defined sectors/functions may be decomposed in terms of their national-local dimension on the basis of whether the benefits of the services provided are national or local in scope, e.g., national highways versus
provincial/city/munidpal roads.
Two, broadly defined sectors/functions may also be unbundled along management functions, i.e., (i) policy formulation and standards setting, (ii) regulation and/or enforcement of standards, (iii) planning, (iv) financing,
(v) implementation or actual service delivery, and (vi) monitoring and reporting. Typically, policy formulation and standards setting are assigned to the national government, while implementation (or at least some aspects of
it) may be assigned to the local governments. At the same time, different aspects of enforcement of standards may be assigned exclusively to different levels of governments.
Three, broadly defined sectors/functions may also be decomposed in terms of their sub-competencies, e.g., education may be broken down into elementary, secondary, technicaland vocational educationand training, and
tertiary sub-sectors.
5. Here are some questions that may help the NGAs in this unbundling exercise:
• For each one of the NGA's PPA,

a) Does the LGC or other pertinent pieces of legislation give the LGUs the soie responsibility for the administration, provision, and/ or delivery of goods and services that are associated with the specified PPA in its
entirety?
b) Is it possible to decompose the specified PPA into its component parts, such that any one of these component parts are assigned exclusively to the LGUs either on the basis of the LGC or other pertinent laws?
• For each one of the component parts of any given PPA,

a) Are the benefits resulting from the implementation/performance of the specified component part of the PPA enjoyed exclusively by the constituents of a specific level of LGU?
b) Does the specified component part of the PPA have benefits that spill over outside the territorial jurisdiction of a specific level of LGU?
c) Are there economies of scale involved in the delivery of the specified component part of the PPA? Is the average size province large enough to implement the specifiedcomponent part of thePPA? How about the
average size city or municipality?
d) How big a role does the specified component part of the PPA have in the attainment of the government's overall redistributive goal?
Additional details on the differentiation of the PPAs that can be assigned to the agency CO, ROs, provinces, cities, municipalities and barangays can further be explained in column [5]. The more exclusive the PPAs (and
the more specific their description) to be assigned to the CO, ROs and the different LGU levels, the better for assignment and accountability purposes.
6. The accomplished template is intended to be shared with the different levels of LGUs for their reference and guidance. Hence, this should also cover all services and facilities which have already been devolved to the LGUs in
the previous years. Such devolved functions and sen/ices may be indicated at the end of the matrix and briefly discussed in column [5].
Pago 3 ot‘ 29
DBM-DILG Joint Memorandum Circular No. 2J21-2 dated 12 August 2 :2:
7. This template is also intended to assist the fiscal oversight agencies to have baseline information for the budgetary resources that are allocated for each one of the component parts of an NGA's PPAs. In order to do this, the
total budget of an NGA's PAP as provided under the FY 2021 GAA shall be indicated. Based on the unbundling of functions/services, the NGA should be able to specifically identify which components of the PPAs are for
assignment to the LGUs. The corresponding budget tagged on said components of the PPA shall also be disaggregated per level of government. The total amount indicated in all levels of government per component should
correspond to the total budget of the pertinent PAP under the FY 2021 GAA (Refer to column [3]).
Page 4 of 29
DBM-DILG Joint Memorandum Circular No. 2021-2 dated 12 August 2:2:
SAMPLE ACCOMPLISHED MA TRIX (For reference purposes only)
Department of Tourism

(NG — National Government; P — Province; Appropriation in
C - City; M - Municipality; B - Barangay) Decentralization Principle and
Function/Service/Fadlity/ FY 2021 GAA Legal Basis
Please tick off/mark appropriate colutnn(s). Other Remarks
Program/Project/Activity (in PhP M) [4]
One oer row oniv. [5]
[1] [3]
[21
NG p c M B
1. 0. Tourism policy formulation and planning 267.4 Formulation of national level strategies and plans
1. 1. Tourism planning - national level X Funded in FY 2021 GAA? RA 9593, s. 2009 are typically assigned to NG for greater
(Y/N); If Y, how much? integration of the program. The regional offices
1. 2.a. Tourism planning - regional level including X Funded in FY2021 GAA? RA 9593, s. 2009 can guide, and assist the LGUs given their greater
integration of local tourism plans (Y/ N): If Y, how much? knowledge of the different tourism assets and
1. 2.b. Formulation of local tourism plan X Funded in FY2021 GAA? RA 9593 Section 38, s. 2009 facilities in each region.
(Y/ N): If Y, how much?
X Funded in FY2021 GAA? RA 7160 (or LGC), s. 1991: The actual planning, formulation and
(Y/N); If Y, how much? For provinces - Section 17 (b) implementation of the local tourism plans are
(3) (xii); better accomplished at the P/C/M levels.
For cities - Section 17 (c)
2. 0. Tourism industry training program X Function not devolved to LGUs The participation of the regional offices can be
under RA 7160 nor RA 9593 articulated to guide the LGUs.
3. 0. Development of tourism standards and

accreditation and enforcement program
3 1. Development of standards X How much of the budget RA 9593, s. 2009 Standards setting is typically assigned to the NG,
is intended for the and the differentiation is better if the CO vs. RO
development of roles can be specified.
standards?
3. 2. Accreditation program for primary tourism X How much of the budget RA 9593 - Section 39 provides What are the roles of the ROs vs. the CO in this
enterprise by NG is intended for the the DOT and LGUs to ensure program ? How do they interact or interphase with
implementabon of the the compliance of tourism the LGUs?
accreditation program? enterprises to standards set by
3. 3. Enforcement of tourism standards, including X How much of the budget the DOT. It also provides that
enforcement of accreditation program by LGUs for the enforcement of the DOT may deiegate
tourism standards is
Pace 5 of 29
DBM-DILG Joint Memorandum Circular No. 2321-2 dated 12 A-.:qusr 2021

(NG - National Government; P - Province; Appropriation in
C - City; M - Municipality; B - Barangay) Decentralization Principle and
Function/Service/ Facility/ FY 2021 GAA Legal Basis
Please tick off/mark appropriate column(s). Other Remarks
Program/ Project/Activity (in PhP M) [4]
One per row only. [5]
[1] [3]
J2L
NG M B
intended to be allocated enforcement of the DOT
to activities that may be accreditation program for
devolved to the LGUs? primary tourism enterprises
that have adopted and
impiemented their iocal tourism
plans. However, there is a need
to ciarify where NG
enforcement of standards ends
and where LGU enforcement
begins under RA 9593.
RA 7160 - Section 447 (a) (4)

(iv) and Section 458 (a) (4) (iv)
gave municipai and city
Sanggunians the power to
reguiate the establishment of
restaurants, cafes, hotels,
motels, inns, and similar
establishments, including
4. 0 Market and product development

program
4. 1. Market and product development, including X How much of the budget Are there programs and responsibilities assigned
development and implementation of an is intended for to the regional offices?
integrated international promotions and international promotions
marketing program and branding campaign and marketing programs?
Clearly, the budget for the
branding campaign
program (PhP 803.6)
4. 2. Market and product development program X How much of the budget A significant amount of benefits from the tourism
activities that may be devolved to provinces. for this PPA is intended for sector in the form of number of jobs created in
market and product tourism enterprises and ancillary services, local
Pace 6 of 29
DBM-DILG Joint Memorandum Circular No. 2021-2 dated 12 August 2 021

(NG - National Government; P - Province; Appropriation In
Function/Service/Facility/ C — Qty; M - Municipality; B - Barangay) FY 2021 GAA Decentralization Principle and
Legal Basis
Prog ram / Project/Activity Please tick off/mark appropriate column(s). (in PhP M) Other Remarks
One oer row oniv.
[4]
[3] [5]
[1]
[2]
NG P C M B
cities, and municipalities, including tourist development dctivides tax and non-tax revenues from said enterprises
assistance programs and promotion of local that may be devolved to accrues to LGUs where tourism is a significant
tourism sites the LGUs? industry. Are there differences as to size, for
instance, of the tourism sites that each of the LGU
levels are asked to manage?
X
X
Page 7 of 29
ANNEX B
Implementation Strategy and Phasing of Devolution Transition Activities
Level of Local
Function/Service/Facility/ Expected Responsible Success Indicator for
Strategies and Activities Timeline/Schedule Government
Program/Project/Activity Output/Outcome Organization/ Unit Target LGUs
[2] [3] Unit (LGU)
[1] [5] [6] [7]
[4]
PHASE I (FY 2021 - 2022)
PPA# 1
Component # 1 (C.l) of Strategy # 1 Outcome Bu rea u/Servi ce/Offi ce No. of target
PPA # 1 concerned provinces/cities/
Consuitations with the LGUs Q3, 2021 Strengthened relationship municipalities/
and trust are built between barangays which
To level-off with the LGUs and inform the NGA and the LGUs participated in the
them of the PPAs to be scaled consultation
down/phased out, and resolve meetings/fora/FGDs
concerns/issues
Client satisfaction rating
Activities obtained
(Specific date/month, P/C/M/B OutDUtS
1. Conduct of consultation if feasible) Number or percent of
meetings/fora/FGDs with the 1, Identified areas of target LGUs capacitated
LGUs Q3-Q4, 2021 concern or issues raised
by the LGUs and the No. of LGUs with MOAs
2. Xxxx corresponding action with NGA for the
plan of the agency and provision of technical
the LGU concerned to assistance for specific
address the same skills and systems
development
Page 8 of 29
Level of Local
Function/Service/Fadlity/ Expected Responsible Success Indicator for
Strategies and Activities Timeline/Schedule Government
Program/ Project/ Activity Output/Outcome Organization /Unit Target LGUs
[2] [3] Unit (LGU)
[1] [5] [6] [7]
____________
Outcome No. of LGUs adopting
Strategy # 2 NGA recommended
1. Strengthened systems and structures
Provision of capacity building/ relationship and trust
technical assistance to the LGUs between the NGA and
the LGUs
To build the capacity of the LGUs to 2. Increased capacity of
undertake the devolved functions LGUs to take on the
devolved functions
Activities Xxxx
Outputs
1. Conduct of
trainings/seminars/workshops with 1. Xxxx
the LGUs
2. Xxxx
Component # 2 (C.2) of
PPA# 1
PHASE II (FY 2023)

1 III 1 1
PHASE III (FY 2024)
1 1 1 1 1 1
Pam; 9 of 29
Legend;
[1] Specifies the department/agency devolved function, service, facility, or PPA

[2] Describes the strategies and activities to be undertaken by the NGA starting 2021, 2022 and in the medium term, e.g., consultations with offices involved, the Regional Development Councils and target LGUs to plan
the strategy; rolling out of delivery standards to capacitate the LGUs; development of and entering into memoranda of agreement (MOAs) with the LGUs for capacity building; implementation of the devolution and
monitoring of devolved functions; participation in training programs to be set up and coordinated by the DILG-Local Government Academy; conduct of demonstration projects with the LGUs, etc., to successfully help
the LGUs to implement and manage the devolved services relevant to the PPAs to be scaled down/phased out, so as not to create a vacuum in the delivery of the pertinent basic services, including'the rationale for the
proposed strategies
[3] Provides the approximate timeline/schedule of the activities to be done per strategy and activity, specifying the date/month/quarter, as feasible
[4] Identifies which level of LGU will be involved in the activities, i.e., P/C/M/B, including the specific unit/personnel in the LGU that needs to be capacitated, if applicable
[5] Indicates the expected results per strategy (outcomes), and per activity (outputs)
[6] Identifies the organization/unit responsible in the department/agency for each devolution transition activity
[7] Provides a set of quantitative/measurable values to evaluate the success or achievement of a particular devolution transition strategy or activity
Notes;
This matrix shall present the details of the phasing of the devolution transition activities to the LGUs, taking into consideration their capacity and resources, and as well as the impact of the devolution on their delivery of
services/programs and growth.
In phasing the devolution transition, the agency may first delimit the scope of work by considering the set of LGUs most important in meeting their sector outputs and outcomes. Secondly, the agency should consider their
resources and capacity by initially devolving activities to the richer and more capable 1st to class LGUs, and providing technical assistance to help them take over the function and implement them well. In this manner,
focus can be given to the LGUs or areas which exhibit the most deficiencies/shortfalls in meeting sector outputs and outcomes but which have the least resources and capacities. Another suggestion is to try to phase the
assistance (e.g., cost-sharing, implementation and management assistance) in a manner that will enable the different sets of LGUs to finally take over the funding and management of the function after a specific number of
year/s before going to the next ones, which may be a win-win situation for both the NGA and the LGUs.
The specific list of priority or pilot LGUs which shall be assuming the devolved PPAs that will be scaled down/phased out by the NGA per devolution phase may be included as an attachment to this Annex, if already identified.
The checklist of criteria and conditions necessary to determine the readiness of the LGUs to take on and manage the delivery of the devolved senrices shall also be included as an attachment to this Annex.
The strategies and activities indicated under column [2] shall be further detailed and supported by the modes of technical assistance to be provided by the NGA to the LGUs under Annex E.
Roadmaps, Gantt Charts, among other tools, may be presented to show the implementation schedule and phasing of the NGA devolution transition activities.
Paee 10 of 29
ANNEX C-1
Registry of Service Standards for the Delivery of Devolved Functions, Services and Faciiities
Local Service Delivery Standards

Function/
Government [4L
Program/
Unit (LGU) OUTPUT PROCESS INPUT
Project/ Beneficiary/ Fee to ritteof
Level and Standard Technical Qualification/ Updating
Activity and User Avail Other References
Office/Unit Specifications Quality of Procedural Resource Cost Specifications Competency Status
Corresponding [3] Service Standards
to Use the of Service Service Standards Inputs to Deliver of Input of Service [S]
Service* (if any) [4.9] [6]
Standard [4.1] [4.2] [4.3] [4.4] the Service [4.6] Provider
[1] [4.8]
[2] [4.5] [4.7]
Function/PPA
#1
Provision of
support to
education
services
[Service #1 of
Function/PPA
#1]
Construction of City/Munidpal Students ' Construct > No. of Steps on land ' Construction Total amount Standard quality Licensed N/A mm/dd/
school building Engineering school building students acquisition/site materials and to construct of construction Engineer with x
Office yyyy
with X number accommodat suitability, equipment school building materials and years of
of classrooms to ed in the procurement, ' Land equipment experience
accommodate x school construction, ' Standard based on the
number of I No. of operations and Design Plan Building Code
students classrooms maintenance Standard site
constructed suitability for
based on land (e.g., far
DPWH from danger
design plan zones)
' No. of
facilities
(e.q., library,
Page II of 29
DBM-DILG Joint Memorandum Circular No. 2J21-2 dated 12 August 2221
Local Service Delivery Standards

Function/
Government [4]...................................................................................................................................................
Program/
Unit (LGU) OUTPUT PROCESS INPUT
Project/ Beneficiary/ Fee to TiUeof
Level and Standard Technical Qualification/ Updating
Activity and User Avail Other References
Office/Unit Specifications Quality of Procedural Resource Cost Specifications Competency Status
Corresponding [3] Service Standards [5]
to Use the of Service Service Standards Inputs to Deliver of Input of Service [6]
Service* (if any) [4.9]
Standard [4.1] [4.2] [4.3] [4.4] the Service [4.6] Provider
[1] [2] [4.8]
[4.5] [4.7]
restroom,
clinic)
• With facilities
to
accommodat
e needs of all
children and
teachers
(i.e., PWD)
[Service #2 of
Function/PPA
:
Function/PPA
#2
[Service #1 of
Function/PPA
_______
[Service #2 of
Function/PPA
#2J
* Service pertains to the tangible or non-tangible byproduct of the performance of government functions delivered to the people, which involves transaction between the user/beneficiary and the service provider,
Page 12 of 29
Legend:
[1] Identifies the devolved functions/PPAs as presented in Annex A and the corresponding services to be delivered by the LGUs under each function/PPA, including all devolved services which are already being performed by
the LGUs [Examples: (1) DOT'S accreditation of tourism enterprises relative to its function on the enforcement of tourism standards for tourism enterprises; and (2) NHA's provision of low-cost housing relative to its function
to develop and implement a comprehensive and integrated housing program]
[2] Identifies which level of LGU (i.e., P/C/M/B) and the office/unit in the LGU which will deliver the service and use the service standards
[3] Indicates the recipients of the devolved services, or people/entities which should be regulated/monitored in case of devolved services involving enforcement of laws
[4] Lists down all pertinent standards the department/agency/GOCC has developed and needing to be developed for the delivery of devolved functions/services/facilities, which covers minimum cost, scope, and quality of the
services to be delivered by the LGUs, among others
[4.1] Describes the specific outputs/products the beneficiary can expect to receive from the service
[4.2] Identifies and defines the attributes that can measure the degree to which the expected specifications of the service were met,which may bedefined interms of performance criteria such as timeliness, quantity, quality,
effectiveness, among others.
[4.3] Specifies the necessary steps to execute/carry out/deliver the service
[4.4] Enumerates the resources needed to deliver the services, i.e. materials, facilities, and equipment
[4.5] States the recommended standard cost to deliver the devolved services, and construct, operate and maintain devolved facilities, among others
[4.6] Describes the qualities of resource inputs (e.g., material, facility, and equipment) essential to the delivery of the service to achieve the intended result/s
[4.7] Identifies the minimum required qualifications and skills of the personnel who will directly deliver the service to the public
[4.8] Indicates the recommended standard amount of fee the beneficiary/user should pay to avail of the service, if any
[4.9] Determines other pertinent service delivery standards not covered in items 4.1 to 4.8, if any (e.g., international standards)
[5] Identifies the titles and reference numbers of pertinent department/agency issuances and manuals governing the service deliverystandards, as well as the objective/purposeof the delivery standards
[6] Indicates the date when the standards were last updated
Notes;
This matrix shall contain the registry/inventory of existing and new (to be developed) standards for the delivery of devolved services to be disseminated to the LGUs, covering the minimum cost, scope, and quality of the
services to be delivered by each level of LGU. This Annex is intended to be shared to the different levels of LGUs for their reference and guidance, and will be used by the Local Government Academy as inputs to the LGU
Capacity Development Program.
Hard and digital copies of existing pertinent NGA issuances, guidelines, and manuals shall be attached or provided.
Pace 13 of 29
DBM-DILG Joint Memorandum Circular No. 232 1-2 dated 12 2 321
ANNEX C-2
Summary of Recommended Organizational Structure and Staffing Complement for the LGUs
Province/City/Municipality/Barangay/a
Salary Minimum Qualifications and No. of

Organizational Unit Position Title Description
Grade Competencies Positions
[11 [2] [6]
[31 [4] [5]
Provinces
Provincial SDWO Xxxx Xx Xxxx 1
Total
Cities
City SDWO Xxxx Xx Xxxx 2
Total
/a Each level of LGU shall have its own organizational structure, unless deemed unnecessary, and may be further disaggregated per LGU class
Name and Position/Designabon Name and Position/Designation Department/Agency Head
Legend;
[1] Refers to an appropriate office, committee or work group in the LGU, whether existing or proposed, with defined authority and accountability that will assume or perform the devolved function/service, which may
include mandated organizational structures or offices, as well as local special bodies and other support groups in which the LGU stakeholders participate (e.g., disaster management teams)
[2] and [3] Indicates the position and corresponding salary grade, consistent with the latest Index of Occupational Services, Occupational Groups, Classes and Salary Grades issued or to be issued by the DBM
[4] States the eligibilities (e.g., years of work experience, educational attainment, certification/licensure) required to qualify for the position, as well as the relevant knowledge and skills or technical/functional
competencies of the incumbent in order to perform the assigned functions
[5] Indicates the number of positions needed to perform the job
[6] Indicates the functions and/or importance of the organizational unit, and whether there is already an existing unit or position in the LGU, as well as the functions and/or importance of the position and the
corresponding period wherein the services of said position is considered necessary, i.e., short term (FYs 2021-2022) and medium term (FYs 2023-2025)
Payo 14 of 29
D8M-DILG Joint Memorandum Circular No. 2021-2 dated 12 August 2021
Notes:
This shall contain information on the organizationai structures and critical/minimum staffing complement which the NGA concerned deems appropriate for the LGUs to enabie them to undertake the devolved functions
effectively and efficiently in a phased manner, e.g., in the short term (FYs 2021-2022) and the medium term (FYs 2023-2024).
The NGA may start by identifying the most important set of LGUs to their sector and begin with the activities which need to be implemented and assumed by the LGUs witha skeletalworkforce and with minimum capacities
before going into the more complex activities. Inputs from operations units and regional offices which have been assisting the LGUs in these devolved activities wiil be very usefulfor this exercise.
Activities which are deemed important to be done by the LGU and can be done by the existing mandatory positions in the LGU should be brought up to said LGUs.
Organizational structure and best practices of model LGUs may be presented to replicate their effectiveness to other LGUs.
Pane 15 of 29
DBM-DILG Joint Memorandum Circular No. 2021-2 dated 12 A-iguso 202:
ANNEX D
Matrix on the Capacity Development Strategy for the National Government Agencies (NGAs)
Target Period of
Current Practices, Progress Indicators
Capacity Development Implementation for Responsible
Office/Unit Capacities Required Systems, or Capacity Gaps and Measurement
Actions/Activities Capacity Development Organization
[1] [2] Structures [4] Tools
[5] Actions/Activities [8]
[3] [7]
[6]
Policy Office Policy research and Trainings, competency Policy evaluation, Trainings (i.e., M&E, Q3-Q4, 2021 % of personnel HR, DAP, other
evaluation, profiling cascading of strategic communication) concerned capacitated agencies and
development of service service delivery Coaching and mentoring (measurement tool: service providers
delivery standards, standards. improvement rate -
systems thinking, pre-test vs. post-test)
strategic
communication, No. of M&E system on
stakeholder policy implementation
management developed/enhanced
Regional Office Training management, Trainings, competency Database Trainings (i.e., database Q3-Q4, 2021 % of personnel HR, DAP, other
monitoring and profiling, M&E systems management, management, data concerned capacitated agencies and
evaluation, risk designing of analytics, capacity (measurement tool; service providers
management, trainings development designing) improvement rate -
stakeholder Coaching and mentoring pre-test vs. post-test)
management
Prepared by; Reviewed by: Approved by:
Paac 16 of'29
DBM-DILG Joint Memorandum Circular No. 2321-2 dated 12 August 232:
Legend;
[1] Identifies the corresponding office/unit in the NGA that should be strengthened to undertake the policy and standards development, provision of technical assistance to the LGUs, monitoring and evaluation, and
performance assessment of the LGUs in view of the devolution, per the Personnel Services Itemization and Plantilla of Personnel
[2] Specifies the essential or standard capacities that the department/agency/GOCC requires to implement Its steering functions/renewed roles, e.g., policy research and evaluation, development of service delivery standards,
development of a monitoring and evaluation system, provision of capacity building to the LGUs, assessment of LGU performance, change management, etc., for the effective decentralization/devolution of functions
[3] Indicates the existing practices, systems and/or structures, as well as current level of performance, in the office/unit in relation to the capacities required
[4] Identifies areas which need to be addressed or strengthened
[5] Lays out the specific actions to be undertaken in order to address the gaps or areas for improvement, e.g., attendance to trainings, implementation of coaching programs, development of manuals and systems
[6] Indicates the target period of implementation of column [5], specifying the date/month, if feasible
[7] Identifies outputs and indicators to measure the progress of activities, and the tools which will be used to measure the achievement of milestones
[8] Identifies the organization, unit or person that will provide the capacity development interventions
Notes:
• This shall contain the description of strategies to strengthen the units and personnel of the NGA concerned to assume the organization's renewed role on i) policy formulation and standards setting, ii) monitoring and
evaluation, and performance assessment, and Hi) capacity building of the LGUs for the effective decentralization/devolution of functions.
• It shall also include the proposed timelines for the purpose.
• The units involved here will mainly be the existing and/or new units identified in the Organizational Effectiveness Proposal of the NGA.
Paac 17 of 29
ANNEX E
Matrix on the Capacity Development Strategy for the Local Government Units (LGUs)
Technical Assistance Plan for the Devolution of Functions/Services
Level and Office of

Function/Service/ Facility/ Responsible Success Indicator for
Target Local Mode of Technical Assistance Schedule/Timeline
Program/Project/Activity Agency/Office/ Unit Target LGUs
Government Unit (LGU) [3] [4]
[1] [5] [6]
[2]
PPA # 1
Component # 1 (C.l) of PPA
# 1
Example: DOH
Prevention of Blindness Program/ P/C/M/B 1. Orientation of LGUs and local April 2021 Disease Prevention and Control Percentage increase in the
Community Eye Health Program Local Health Office health centers on the Bureau; Centers for Health number of LGUs with
establishment of eye health teams Development community eye health
teams
2. Conduct of training of trainers on May 2021
primary eye care Percentage increase in the
number of LGUs with pool
3. Publication/dissemination of Q2-Q3, 2021 of trainers on primary eye
policies, guidelines, and care
infographics/advocacy materials
on primary eye care Percentage increase in the
number of LGUs
implementing Prevention of
Blindness Program /
Community Eye Health
Program_______________
Page 18 of 29
DBM-DILG Joint Memorandum Circular No. 2 321-2 dated 12 Augus- 2221
Level and Office of

Function/Service/ Facility/ Responsible Success Indicator for
Target Local Mode of Technical Assistance Schedule/Timeline
Program/ Project/Activity Agency/Office/Unit Target LGUs
Government Unit (LGU) [3] [4]
[1] [5] [6]
F21
Component # 2 (C.2) of PPA
#1
Legend:
[1] Specifies the department/agency devolved function, service, facility/PPA as presented in Annex A
[2] Indicates the different target levels of LGUs to whom each kind of technical assistance/capacity building intervention shall be given to, including the specific unit/personnel in the LGU that needs to be capacitated, if
applicable
[3] Lists the different specific capacity development interventions or modes of technical assistance the NGA intends to provide to the LGUs to build their capacities and handhold them to manage and implement the devolved
function/service/facility
[4] Indicates the schedule/timeline or the implementation period for the identified modes of technical assistance/capacity building interventions
[5] Identifies the office or unit in the NGA responsible for the provision of the specified mode of technical assistance/capacity building intervention
[6] Provides a set of quantitative/measurable values to evaluate the success or achievement of a particular capacity building intervention/mode of technical assistance
Notes:
• This shall detail the strategies proposed to be implemented by the NGAs concerned to capacitate and enable the LGUs to absorb and manage the functions and services to be devolved starting FY 2022 as part of their
devolution strategy and activities identified in Annex B. This Annex will likewise be used by the Local Government Academy to input in the LGU Capacity Development Program.
• The technical assistance plan can be based on the different target sets of LGUs grouped according to capacity, resources, and need to determine the kind of intervention to be given.
• Modes of technical assistance may include participation in training programs to be set up and coordinated by the Local Government Academy, conduct of demonstration projects with the LGUs, and entering into memoranda
of agreement with the LGUs which need specific types of capacity building interventions.
Pago 19 of 29
DBM-DILG Joint Memorandum Circular No. 2321-2 dated 12 Augus- 2321
ANNEX F
Matrix on Monitoring and Performance Assessment of the LGUs in Undertaking the Devolved Functions
Local Government Existing Performance

Responsible NGA Monitoring and
Function/Service/Facility/ Performance Frequency of Unit (LGU) Level Evaluation
Baseline Organization/ Performance
Program/ Project/Activity Indicator Monitoring and Office/Unit System/Mechanism
[3] Unit in the NGA Evaiuation Strategy
[1] [2] [4] Concerned and Updating Status
[7] [8]
[5] [6]
PPA # 1 (May come from the
GAA)
Example: DSWD Percentage increase No. of families Monthly P/C/M/B Performance Governance DSWD B/S/0 Enhance existing M&E
Sustainable Livelihood Program in the number of with SWD SWDO System (PGS) concerned system to cover
families with SWD coverage in the 2016 performance indicators for
coverage vis-a-vis preceding devolved services
identified families/ reference period
target beneficiaries Integrate M&E system/
performance indicators in
Percentage increase No. of fully Semi-annual established incentive
in the number of fully functional schemes (e.g., SGLG)
functional Local LSWDOs in the
Social Welfare and preceding Complete the staffing
Development Offices reference period complement or fill the
(LSWDOs) vacant positions in DSWD
field offices to strengthen
Percentage increase direct coordination with
in income of 4Ps and and monitoring of LGUs
near poor families in
the LGU
Paac 20 of 29
DBM-DILG Joint Memorandum Circular No. 2J21-2 dated 12 August 2321
Local Government Existing Performance

Function/Service/Facility/ Performance Frequency of Unit (LGU) Level Responsible NGA Monitoring and
Evaluation
Baseline Organization/ Performance
Program/ Project/Activity Indicator Monitoring and Office/Unit System/Mechanism
[3] Unit in the NGA Evaluation Strategy
[1] [2] [4] Concerned and Updating Status
[7] [8]
[5] [6]
Rate of reduction of
poverty incidence in
the LGU
Component # 1 (C.l) of
PPA # 1
Component # 2 (C.2) of
PPA# 1
Legend:
[1] Specifies the department/agency devolved function/service/facility/PPA as presented in Annex A, including all devolved services which are already being performed by the LGUs
[2] Identifies the quantified and/or qualified parameters or measures which will be used to assess the presence, extent, and quality, among others, of the devolved function/service
[3] Identifies the baseline information on the indicator before the implementation of the DTP in order for the NGA to objectively assess the devolution process, results, or effectiveness
[4] Indicates the frequency of monitoring the LGUs, be it annual, quarterly, etc., to assess the devolution results or effectiveness
[5] Specifies the level of LGU, and the existing office/unit in the LGU which will need to be monitored by the NGA with regard to the performance indicator, which may also be the source of data with regard to the
performance indicators
[6] Indicates the existing performance evaluabon system/mechanism of the NGA and the date/year when the system/mechanism was last updated, as applicable
[7] Identifies the organization, unit or person in the NGA responsible for the implementation of the performance evaluation system and mechanism
[8] Identifies the strategy/ies which the NGA needs to undertake to either improve or set up its LGU monitoring and performance evaluation system in the central and regional offices, in terms of organizational unit,
staffing and competencies
Notes:
This matrix shall indicate the plan and systems which will need to be set up or improved in the NGA for monitoring and assessing the performance of the LGUs in undertaking the devolved programs and functions. Specifically,
it shall not only identify which systems are existing and are still to be developed, but will also lay down the agency plan to set up its monitoring system to be able to assess the effectivity of its devolution transition plan
strategies.
The monitoring system may include the imposition of sanctions provided by pertinent laws [use column (8)].
Page 21 of 29
DBM-DILG Joint Memorandum Circular No. 2321-2 dated 12 Aug-.^st 2 321
ANNEX G-l
Organizational Effectiveness Proposal
rPepartment/Aaencv/GOCCI
Summary of Offices/Units to be Abolished, Merged/Consolidated, Transferred, and/or Created
A. For Abolition
Name of Office/Unit/a Organizational Code/b Remarks

1.
2.
/b Organizational code per the PSIPOP
B. For Merger and/or Consolidation
FROM TO
Organizational Organizational Name of Office/Unit and Remarks
Name of Office/Unit/a Name of Office/Unit/a
Code/b Code/b Organizational Location/c
I. MERGER
1. ! 1. 1
2. 2. I
II. CONSOLIDATION
1. 1. 1
2. 2. 1
/b Organizational code per the PSIPOP
/c Name of the proposed office/organizational unit and where the new office/unit will be located/placed (e.g., under the Office of the Secretary)
Page 22 of 29
C. For Transfer
FROM TO
Name of Organizational
Organizational Organizational Remarks
Unit/a Name of Office/Unit/b Name of Office/Unit/d
Code/c Code/c
1.
2.
/b Office/organizabonal unit where subject office/unit is currenby located or subsumed per the PSIPOP (e.g., under the Office of the Secretary)
/c Organizational code of per the PSIPOP
/d Office/organizabonal unit where subject office/unit is being proposed to be located/placed
D. For Creation
Name of Office/Unit/a Organizational Location71* Proposed Functions and Justifications for Creation
1.
2.
/a Nomenclature of the proposed office/organizabonal unit
/b Organizabonal unit where the new office/unit will be located/placed (e.g., under the Office of the Secretary)
Notes:
This shall identify the offices/units for: abolition or deactivation, if the functions of the office/unit are already redundant or no longer relevant or necessary, or could be better undertaken by another entity given the
devolution of functions to the LGUs; 2) merger or consolidation, if functions are unnecessarily overlapping or duplicating, or could be undertaken by a single entity; 3) transfer to other offices/units within the
department/agency/GOCC or to other government agencies where they are appropriately attached or where their functions are more aligned; and 4) creation, if no other existing offices/units are performing their intended
functions given the strengthening of the "steering" role of the NGAs, and the corresponding justifications.
Two (2) objectives for organizational change can be presented in these annexes. First, the changes resulting from the devolution of functions to the LGUs. Second, the changes resulting from the new thrusts, direction, and
programs which the NGA is adopting to address the emerging challenges and issues which the country is facing, if any.
Please indicate the rationale for the proposed organizational action under the Remarks portion, as well as the functional description of offices/units as a result of the downscaling and/or strengthening of their functions in view
of the changes in the organizational structure of the department/agency/GOCC.
Page 23 of 29
DBM-DILG Joint Memorandum Circular No. 2321-2 dated 12 August 232:
ANNEX G-2
rDepartment/Aaencv/GOCCI
Summary of Positions to be Transferred, Reciassified, Converted, Retitied, Abolished, and/or Created
A. Personnel and Their Positions for Transfer to Other Units Within the Department/Agency/GOCC
FROM TO
Unique Item Position Title and Remarks/
Name of Personnel Organizational Unit Organizational Unit
Na/a Salary 6rade/b Justifications
(Organizational Code)/c (Organizational Code)/d
1.
2.
Total No. of Personnel:
/a
/b Position title and corresponding salary grade of the incumbent
/c Organizational unit where the position is currently deployed and the corresponding organizabonal code per the PSIPOP
/d Organizational unit in the department/agency/GOCC where the position is proposed to be deployed and the corresponding organizational code per the PSIPOP
B. Positions for Reclassification
FROM TO
Annual Personnel Annual Personnel
Unique Item Position Title and Position Title and Remarks/Justifications/F
Services Cost/c Services Cost/c
No. Salary Grade/b Salary Grade/d
(PhP) (PhP)
Organizational Unitfe
1.
2.
Total No. of Positions: Total PS Cost: Total No. of Positions: Total PS Cost:
/a
/b Existing position title and corresponding salary grade per the PSIPOP proposed to be reclassified
/c Annual salary and other compensation
/d Proposed new position tide and corresponding salary grade
/e Organizational unit where the position is currently subsumed/deployed per the PSIPOP
/f Should include/indicate the dudes and responsibilities of the posidon, as reclassified
Page 24 of 29
DBM-DILG Joint Memorandum Circular No. 2321-2 dated August :21
C. Positions for Conversion
FROM TO
Annual Personnel Annual Personnel Remarks/
Unique Item Position Title and Position Title and
Services Cost/c Services Cost/c Justifications
No./a Salary Grade/b Salary Grade/d
(PhP) (PhP)
Onanizationa! Unit/e
1.
2.
Total No. of Positions: Total PS Cost: Total No. of Positions: Total PS Cost:
/a Unique item number of the position per the PSIPOP
/b Existing position title and corresponding salary grade per the PSIPOP proposed to be converted
/d Proposed new position title and corresponding salary grade
/e Organizational unit where the position is currently subsumed/deployed per the PSIPOP
D. Positions for Retitling
FROM TO
Remarks/
Unique Item Position Title and Position Title and
Justifications
No.Im Salary Grade76 Salary Grade/C
Organizational Unit/d
1.
2.
Total No. of Positions:
/a Unique item number of the position per the PSIPOP
/b Existing position title and corresponding salary grade per the PSIPOP proposed to be retitled
/c Proposed new position tide and corresponding salary grade
/d Organizational unit where the position is currently subsumed/deployed per the PSIPOP
Page 25 of 29
DBM-DILG Joint Memorandum Circular No. 2 021-2 dated 12 August 2021
E. Positions for Abolition
Annual Personnel
Unique Item Position Title and Remarks/
Services Cost/c
No./a Salary Grade/b Justifications
[PhP)
Organizational Unifd
1.
2.
Total No. of Positions: Total PS Cost:
Is Unique item number of the position per the PSIPOP
lb Existing position title and corresponding salary grade per the PSIPOP proposed to be abolished
/d Organizational unit where the position is currently subsumed/deployed per the PSIPOP
F. Positions for Creation
Annual Personnel
Position Title and Remarks/
Services Cost/b
Salary Grade/a Justifications
(PhP)
Organizational Unit'c
1.
2.
Total No. of Positions: Total PS Cost:
/a Posifion title and corresponding salary grade of posibon proposed to be created
/b Annual salary and other compensation
/c Organizational unit where the position is proposed to be subsumed/deployed
Notes;
This shall identify the names of personnel and their positions to be transferred to other units within the department/agency/GOCC, reclassified, converted, rebtled, abolished, and/or created, and the corresponding justifications
for said actions.
The department/agency/GOCC may propose other staffing actions, e.g., transfer and reclass/retitle/conversion, as necessary.
Pane 26 of 29
DBM-DILG Joint Memorandum Circular No. 2321-2 dated 12 August 2C21
ANNEX G-3
Summary of Affected Personnel for Deployment to Other Departments/Agendes/GOCCs, Who Opted to Retire/Separate from the Service, and Apply
to Vacant Positions in the LGUs
A. List of Affected Personnel for Redeployment to Other Departments/Agendes/GOCCs
Annual
Organizational Unit and Department/Agency/GOCC
Name of Personnel Position Title and Unique Item Personnel
Code where Position is for Redepioyment and Specific
(Surname, First Name, Middle Name) Salary Grade-Step/a No.,b Services Cost/d
Located' Office/Unit Therein'6
(PhP)
1. Xxxxx, Xxxxx Xxxx Social Welfare Officer V/SG 24-3 Xxxxx (1.0000) Xxx
2.
3.
Total No. of Personnel:
/a Position title currently being occupied by the incumbent and corresponding salary grade and step
/b Unique item number of the position per the Personnel Services Itemization and Plantilla of Personnel (PSIPOP)
/c Organizational unit where the position occupied by the incumbent is currently subsumed/deployed per the PSIPOP
/d Annual salary and other compensation
/e Department/agency/GOCC and specific office/unit therein where the personnel will be redeployed
Page 27 of 29
DBM-DILG Joint Memorandum Circular No. 232 1-2 dated 12 A-jgus- 2321
B. List of Affected Personnel Who Opted to Retire/Separate from the Service and Options Availed of by Said Personnel
Annual Organizational Option to be

Would
Name of Personnel Personnel Unit and Code Availed of Under Name of LGU and
Position Title and Apply to
(Surname, First Name, Middle Unique Item No./b Services where the Specific Office/Unit
Salary Grade-Step7' the LGU?
Name) Cost/c Position is Executive Order Therein71
(Yes/No)
(PhP) Located7" on Devolution7'
1. Xxxxx, Xxxxx Xxxx Social Welfare Officer V/SG 24-3 Xxxx Xxxx Xxxx (1.0000) RA 1616 Yes Imus City SWDO
2.
3.
Total No. of Personnel: Xxx
/a Position titie currently being occupied by the incumbent and corresponding salary grade and step
/b Unique item number of the position per the PSIPOP
/d Organizational unit where the position occupied by the incumbent is currently subsumed/deployed per the PSIPOP
/e Retirement/separation benefit under existing laws, i.e., RA No. 1616, RA No. 660, or RA No. 8291
/f Name of LGU and specific office/unit therein where the affected personnel intends to apply
Notes:
This shall indicate the names of personnel who are affected by the devolution efforts of the NGA and opted to (1) be deployed to other departments/agencies/GOCCs, or (2) retire/separate from the service and the
retirement/separation benefit to be availed of by said personnel, and if said personnel under (2) wishes to apply to vacant positions in the LGUs.
The list should be presented/grouped/categorized per the retirement/separation benefit to be availed of, and in alphabetical order based on surname, for easy use/reference.
The list of affected non-permanent personnel (contractual, casual, or contract of service/job order) who are involved in the implementation of the devolved services may be included as an attachment to this annex, for ready
reference.
Page 28 of 29
DBM-DILG Joint Memorandum Circular No. 2321-2 dated 12 Augus: 232 1
ANNEX G-4
rPepartment/Aaencv/GOCCI
Summary of Modifications in Resource Allocation
FY 2021 GAA FY 2022 NEP/GAA

Program/Project/Activity Allotment Class Budget (Amount or Percentage Remarks
(in thousand Php) Increase/Decrease)
PPA # 1 Personnel Services
Maintenance and Other Operating
Expenses
Capital Outlay
PPA# 2 Personnel Services
Maintenance and Other Operating
Expenses
Capital Outlay
Notes:
This shall indicate the estimated changes in the budget allocation (Personnel Services, Maintenance and Other Operating Expenses, and Capital Outlays) of the NGA, as can be gleaned prior to the scaling down/phasing out
of PPAs (FY 2021 GAA) vis-a-vis upon scaling down/phasing out of the PPAs [FY 2022 National Expenditure Program (NEP) or GAA].
The effects of the revised set-up on the budgetary allocations of the department/agency/GOCC concerned could further be highlighted under the Remarks column.
Page 29 of 29
Attachment 1
BASIC SERVICES AND FACILITIES DEVOLVED UNDER THE LOCAL GOVERNMENT CODE OF 1991
Department/ Functions/
Provinces Municipalities Cities1 Barangays
Agency/GOCC Services
❖ Department of Agriculture Agricultural extension and on-site • Agriculture extension on-site Agricultural support
Agriculture Services research services and facilities which research services and facilities services which include
include the prevention and control of related to agriculture and planting materials
plant and animal pests and diseases; fishery activities related to distribution system and
dairy farms, livestock markets, animal dispersal of livestock, poultry, operation of farm
breeding stations, and artificial fingerlings and seedlings; produce collection and
insemination centers; and assistance operation of demonstration buying stations
in the organization of farmers and farms; improvement of local
fishermen's cooperatives and other distribution channels, inter-
collective organizations, as well as the barangay irrigation systems;
transfer of appropriate technology and enforcement of fishery laws
• Fish ports
Department of Local School buildings and other facilities

Education Infrastructure for public elementary and
Services secondary schools
Information services which include Information and reading
maintenance of public library center
❖ Department of Natural Resource Enforcement of forestry laws limited to Implementation of community-

Environment Management community-based forestry projects, based forestry projects which
and Natural Services pollution control law, small scale include integrated social forestry
Resources mining law, and other laws on programs and similar projects which
environment protection include integrated social forestry
programs and similar projects;
management and control of
All the services and facilities of the municipality and province, and in addition thereto, adequate communication and transportation facilities and support for education, police and fire services and facilities
Paae 1 of 6
Attachment 1
communal forests with an area not
exceeding fifty (50) square
kilometers; establishment of tree
parks, greenbelts and similar forest
development projects
Environmental Enforcement of pollution control law Solid waste disposal system or Services and facilities
Services environmental management system related to beautification
and solid waste
collection
❖ Department of Energy-related Mini-hydroelectric projects for local
Energy Services purposes
Department of Other Services: Upgrading and modernization of tax Information services which include
Finance Revenue information and collection services tax and marketing information
Mobilization through the use of computer hardware systems
Services and software and other means
❖ Department of Health Services Health services which include hospitals • Health services which include Health services which
Health and other tertiary health services the implementation of programs include the maintenance
and projects on: of barangay health
❖ Department of 0 Primary health care, centers
Science and o Maternal and child care, and
Technology- o Communicable and
Food and non-communicable disease
Nutrition control services
Research • Access to secondary and tertiary
Institute health services
• Purchase of medicines, medical
National supplies, and equipment needed
Economic and to carry out the services herein
Development enumerated
Page 2 of 6
Attachment 1
Authority- • Rehabilitation programs for
Commission on victims of drug abuse
Population and • Nutrition services and family
Development planning services
• Clinics, health centers, and
other health facilities necessary
to carry out health services
Department of Inter-municipal telecommunications
Information and services
Communications
Technology-
National
Telecommunicat
ions Commission
❖ Department of Other Services: Provincial buildings, freedom parks Municipal buildings, cultural
the Interior and Local and other public assembly areas and centers, public parks, including
Local Infrastructure similar facilities freedom parks, playgrounds, and
Government Services; sports facilities and equipment, and
other similar facilities
Department of Local Provincial jails Sites for police and fire stations and -
Public Works Development substations and municipal jail
and Highways and Supervision - Public markets, slaughterhouses, Satellite or public
Services; and other municipal enterprises market, where viable
Public cemetery
Maintenance of
Peace and Order
1
Page 3 of 6
Attachment 1
DBM-DILG Joint Memorandum Circular No. 2021- dated 12 August 2021
❖ Department of Maintenance of
Justice Katarungang
Pambarangay
Department of Other Services: Information services which include
Labor and Employment job placement information systems
Employment Facilitation
❖ Department of Local Provincial roads and bridges, inter • Municipal roads and bridges, • Maintenance of
Public Works Infrastructure municipal waterworks, drainage and small water impounding barangay roads and
and Highways Services sewerage, flood control, reclamation projects and other similar bridges and water
projects projects, rainwater collectors supply systems
Department of and water supply systems, • Infrastructure
Environment seawalls, dikes, drainage and facilities such as
and Natural sewerage, flood control multi-purpose hall,
Resources • Facilities related to general multi-purpose
hygiene and sanitation pavement, plaza,
sports center, and
other similar facilities
• Services and facilities
related to general
hygiene and
sanitation
❖ Department of Social Welfare Social welfare services including • Social welfare services including Social welfare services
Social Welfare Services programs for rebel returnees, relief child and youth programs, family such as maintenance of
and operations and population and community programs, day-care centers
Development development services welfare programs for women,
elderly and persons with
Office of disabilities, community-based
Presidential rehabilitation programs for
Adviser on the vagrants, beggars, street
Peace Process children, juvenile delinquents
Page 4 of 6
Attachment 1
National Youth • Livelihood and other pro-poor
Commission projects
National
Economic and
Development
Authority-
Commission on
Population and
Development
Department of Investment support services, including Information services on
Trade and access to credit financing investments information systems
Industry
Department of Other Services Industrial research and development
Trade and services, as well as the transfer of
Industry appropriate technology
Department of
Science and
Technology
❖ Department of Transportation Infrastructure facilities such as
Transportation Services traffic signals and road signs, and
similar facilities
<• Department of Tourism Services Tourism development and promotion Tourism facilities and other tourist
Tourism programs attractions, including the acquisition
of equipment, regulation and
supervision of business
concessions, and security services
for such facilities
Page 5 of 6
Attachment 1
National Housing Services Programs and projects for low-cost
Housing housing and other mass dwelling
Authority
Social Housing
Finance
Corporation
*> National Local Irrigation systems Communal irrigation
Irrigation Infrastructure
Administration Services
End -
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DiLG

DEPARTMENT OF BUDGET AND MANAGEMENT

Joint Memorandum Circular (JMC) No. 2021 -

TO All Heads of Departments, Agencies, Bureaus, and Offices Concerned

SUBJECT GUIDELINES ON THE PREPARATION OF THE DEVOLUTION

Specifically, the NGAs concerned are directed to 1) refrain from including

2.0 Strategic Review of Thrusts and Priorities Towards Full Devolution

3.0 Identification of Functions, Services, Facilities and/or Programs/Projects/

3.1 The functions/services/facilities and PPAs to be phased out or scaled down by

The degree of subsidiarity or externality of benefits, economies of scale, and

4.0 Principles Guiding the NGA Devolution Transition Plans

a) The proper role of the NG is to set the national policy, development

Flence, the NGAs shall identify necessary improvements in their

1) Public services with little or no benefit spillover (i.e., public services

2) The provision of public goods and services that involve economies of

3) Functions related to the redistributive role of government should be

Considering, however, that the LGUs shall have the authority to

d) To promote harmonization, convergence, and prioritization in the

5 Dated July 2, 2021

5.1 All departments, agencies and instrumentalities concerned in the Executive

5.2 Consistent with Section 5 of EO No. 138, department secretaries/agency heads

A focal unit/person in charge of the devolution of functions may be designated

5.7 Agencies and instrumentalities not under the control or supervision or

6.0 Contents of the NGA Devolution Transition Plans

a) Strategic directions/shifts. This will lay out the strategic vision of

b) Assignment of functions, services and facilities to each level of

c) Service delivery standards. The identification and inventory of

Copies of existing pertinent NGA issuances, guidelines, and manuals shall

Moreover, these service standards may include the recommended

d) NGA capacity development strategy. To enable the NGAs to

f) Performance monitoring and assessment framework. The

g) Organizational effectiveness proposal (OEP). This will present the

The OEP shall contain the following components:

1) Modifications in the organizational structure of the

This may include offices/units which could be:

6 Abolition refers to the elimination of an obsolete urmecessary organizational unit.

The functional description of offices/units as a result of the

2) Modifications on the staffing complement of the

As regards the number of personnel who are affected by the

Departments/Agencies may include, as an attachment to this annex,

3) Modifications in resource allocation, highlighting the effects of the

10 Abolition is the elimination of an obsolete and or unnecessary' position.

7.0 Submission of NGA Devolution Transition Plans

7.1 The DTPS prepared by the departments/agencies/GOCCs concerned shall be

Said DTP shall be signed by the head of the department/agency/GOCC and

7.2 Agencies and instrumentalities not under the control or supervision or

Said EO was published in the Official Gazette on June 2. 2021.

8.0 Evaluation and Approval of the NGA Devolution Transition Plans

The proposed changes in the organizational structure and staffing

Departments/Agencies/GOCCs which have previously submitted their

8.5 For transparency and to provide stakeholders with access to information

Assignment per Level of Government

Assignment per Level of Government

Prepared by: Reviewed by: Approved by:

Name and Position/Designation Name and Position/Designation Department/Agency Head

Notes and Guide Questions:

• For each one of the NGA's PPA,