The Quick Scoop
Commission on Audit (COA) Circular No. 2026-001 prescribes updated accounting guidelines and procedures for recording and reporting personnel services, honoraria, and other benefits of Sangguniang Kabataan (SK) officials. It specifically implements the provisions of Republic Act No. 11768, which authorizes monthly honoraria and additional financial benefits for eligible youth leaders. This circular covers all provincial governors, city and municipal mayors, punong barangays, local legislative bodies, and SK officials including treasurers and secretaries across the country. Furthermore, it applies to local budget officers, accountants, and COA auditors tasked with monitoring, recording, and auditing local government and SK funds.
Core Legal Update
The circular amends the existing Handbook on the Financial Transactions of the Sangguniang Kabataan to incorporate accounting frameworks for personnel services, which were previously restricted under older local government codes. Under the updated rules, SK members, secretaries, and treasurers are entitled to monthly honoraria capped at Salary Grade 9, Step 1, provided that total personnel services expenditures do not exceed twenty-five percent (25%) of total SK funds. Additionally, local government units are now permitted to grant supplemental honoraria, social welfare contributions, and hazard pay through formal ordinances and memorandums of agreement.
Quick Summary
COA Circular No. 2026-001 updates the Handbook on the Financial Transactions of the Sangguniang Kabataan to govern the proper recording of personnel services. It defines key terms including additional honoraria, hazard pay, SK funds, and various categories of local officials. The general guidelines establish that SK officials excluding the chairperson receive monthly honoraria chargeable against SK funds based on actual meeting attendance and performance. Local government units may provide additional financial assistance, social welfare contributions, and hazard pay through local ordinances and explicit Memorandums of Agreement. Unexpended budget balances for regular honoraria revert to the SK general fund at the end of the fiscal year, while unutilized LGU financial assistance is handled based on contractual stipulations.
The circular introduces new and revised financial registries such as the Registry of Budget, Commitments, Payments and Balances for Personnel Services (RBCPB-PS). Specific accounting policies dictate that payments for honoraria, PhilHealth contributions, and hazard pay must be recorded under newly assigned personnel services account codes. Disbursement vouchers must be meticulously supported by approved meeting notices, minutes, attendance sheets, accomplishment reports, and payroll records. Financial statements, quarterly statements of receipts and payments, and fund utilization reports must be submitted on time to prevent the automatic suspension of officials’ honoraria. Finally, all transactions under this circular remain subject to the post-audit jurisdiction of the Commission on Audit.
Key Takeaways
Government accountants and SK treasurers must strictly adhere to the newly prescribed personnel services budget cap, account codes, and reporting registries to ensure full regulatory compliance. Maintaining complete documentation and timely report submissions will safeguard local youth councils from audit disallowances and payment suspensions.