Scribd Logo
Upload

Welcome to Scribd!

  • 56 views

    Guidance On The Use of The Collected Liquidated Damages by The Local Government Unit

    Uploaded by

    Municipal Accounting Office Los Baños
    Liquidated Damages

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Guidance On The Use of The Collected Liquidated Damages by The Local Government Unit

    Uploaded by

    Municipal Accounting Office Los Baños
    56 views2 pages
    Liquidated Damages

    Original Title

    RO_Guidance on the Use of the Collected Liquidated Damages by the Local Government Unit

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Liquidated Damages

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    56 views2 pages

    Guidance On The Use of The Collected Liquidated Damages by The Local Government Unit

    Uploaded by

    Municipal Accounting Office Los Baños
    Liquidated Damages

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Republic of the Philippines

    DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT


    REGION IV-A CALABARZON

    MEMORANDUM

    TO ALL PROVINCIAL AND HUC DIRECTORS

    SUBJECT : GUIDANCE ON THE USE OF THE COLLECTED LIQUIDATED


    DAMAGES BY THE LOCAL GOVERNMENT UNIT

    DATE MAY 31, 2022

    This has reference to the attached Memorandum dated May 23, 2022 issued by Dir.
    Rolyn Q. Zambales, CESO III, Office of Project Development Services (OPDS),
    regarding the abovementioned project.

    In response to the inquiry of DILG Romblon, the OPDS sought legal advice from the
    Legal and Legislative Liaison Service (LLLS) of this Department regarding the
    imposition of Liquidated Damages (LD) on contractors for projects funded either under
    the Local Government Support Fund (LGSF) or the LGUs’ 20% Development Fund,
    specifically whether the funds collected as LD should be remitted to the Bureau
    of the Treasury (BTr) or kept as LGU funds.

    Hence, in its Memorandum dated May 19, 2022, the LLLS recommended to apply
    plainly what is stated in the Commission of Audit’s New Governmental Accounting
    System (NGAS) which is for Liquidated Damages to be treated as project cost
    reduction that will likely result to an unexpended balance. For Local Government
    Support Fund (LGSF), which requires reversion of unexpended balances, said
    unexpended balance will be reverted back to the BTr, unless otherwise provided by
    the General Appropriations Act and the implementing guidelines therefore.

    Further, the LLLS also noted the response of the resource persons for APCPI
    Trainings from the Department of Budget and Management (DBM), as provided by the
    OPDS, that the liquidated damages will be recorded as a credit to the LGU’s
    miscellaneous income. The LLLS opined that we may agree to this only insofar as the
    liquidated damages are not financial assistance which requires reversion of
    unexpended balances to the BTr. We are of the position that the Department may

    /
    w
    CALABARZON
    W6»»n» ■wnnwiWfc n^a—

    “Matino, Mahusay at Maaasahan”


    533/F Andenson Bldg. 1, National highway, Brgy. Parian, City of Calamba, Laguna 4027
    S (02) 8876-3454 Loc. 7401 to 7410, 7420, 7430, 7440
    [email protected] ©www.calabarzon.dilg.gov.ph
    not rely on the DBM APCPI Trainer’s opinion if the same is not substantiated with a
    DBM’S department issuance on the matter.

    In this regard, you are hereby directed to disseminate the recommendations of the
    LLLS to all LGUs under your area of responsibility, for their information and
    appropriate action.

    For compliance.

    ARIEL O. IGLESIA
    Regional Director^

    AOI/LGCDD/PDMU/dcdc
    R220531-17458

    fiii
    CALABARZON
    “Matino, Mahusay at Maaasahan”
    S3/F Andenson Bldg. 1, National Highway, Brgy. Parian, City of Calamba, Laguna 4027
    Sf 827-4755; 827-4560; 827-4587; 827-3143 S 827-4745
    [email protected] ©www.calabarzon.dilg.gov.ph

    You might also like