When is the Barangay Budget Prepared?

     The Punong Barangay shall prepare the barangay budget for the coming Fiscal Year upon receipt of the detailed Statement of Income and Expenditures from the Barangay Treasurer on or before September 15 of each year.

Who prepares the Barangay Budget?

     The Punong Barangay (PB) with the assistance of the Barangay Treasurer and in consultation with the Sangguniang Barangay (SB) and Barangay Development Council (BDC) prepares the barangay budget, (Section 389 (b) (7)) consisting of the following:

1. Estimate of Income

2. Total Appropriations as Proposed by the Punong Barangay (PB)

The Barangay Budget Process

     The specific provision provided in the LGC in relation to the start of the budget process is article 423 on the Preparation of Barangay Budgets.

     Letter b of this Article provides that "on or before the fifth (5th) day of September of each year, the city or municipal treasurer jointly with the city or municipal accountant, shall issue a certified statment covering the actual income of the past year and estimates of income of the current and ensuing fiscal year from local sources for the barangay concerned.  Based on such certified statements the barangay treasurer shall submit on or before the fifteenth (15th) day of September of each year to the punong barangay a statement covering the estimates of income and expenditures for the past, current and ensuing fiscal years."

Procedure for Execution

1. If the execution be for the payment of money, the party obliged is allowed a period of five (5) days to make a voluntary payment, failing which, the Punong Barangay shall take possession of sufficient personal property located in the barangay, of the party obliged to satisfy the settlement or award from the proceeds of the sale thereof with legal interest such sale to be conducted in accordance with the procedure herein provided. If sufficient personal property exists, the party obliged is allowed to point out which of them shall be taken possession of ahead of the others. If personal property is not sufficient to satisfy the settlement or award, the deficiency shall be satisfied in accordance with the applicable provisions of the Rules of Court.
2. If it be for the delivery or restitution of property located in the barangay, the punong barangay shall oust therefrom the person against whom the settlement or award is rendered and place the party entitled thereto in possession of such property.
3. If it be for the delivery or restitution of property located in another barangay of the same city or municipality, the Punong Barangay issuing the notice shall authorize the punong barangay of the barangay where the property is situated to take possession of the property and to act in accordance with paragraph (b) Rule, KPR.
4. If a settlement or award directs a party to execute a conveyance of land, or to deliver deeds or other documents, or to perform any other specific act, and the party fails to comply within the time specified, the Punong Barangay may direct the lupon secretary to perform the act at the cost of the disobedient party and the act when so done shall have like effects as if done by the party.

Execution of Settlement or Award

Execution shall issue only upon the expiration of ten (10) days from date of settlement or receipt of award unless repudiation of the settlement has been made or a petition to nullify the award has been filed prior to the expiration of the said period.

Modes of Execution

The amicable settlement or arbitration award may be enforced by execution by the lupon within six (6) months from date of the settlement or date or receipt of the award or from the date the obligation stipulated in the settlement or adjudged in the arbitration award becomes due and demandable. After the lapse of such time, the settlement or award may be enforced by the appropriate local trial court pursuant to the applicable provisions of the Rules of Court. An amicable settlement reached in a case referred by the court having jurisdiction over the case of the lupon shall be enforced by execution by the said court.

Motion for Execution

The disputant/s may file a motion with the Punong Barangay, copy furnished to the other disputant/s, for the execution of a final settlement or award which has not been complied with.

Hearing

On the day the motion for execution is filed, the Punong Barangay shall set the same for hearing on a date agreed to by the movant, which shall not be later than five (5) days from the date of the filing of the motion. The Punong Barangay shall give immediate notice of hearing to the other party.

During the hearing, the Punong Barangay shall ascertain the fact on non-compliance with the terms of the settlement or award. Upon such determination of non-compliance, the Punong Barangay shall strongly urge the party obliged to voluntarily comply with the settlement or award.

Notice of Execution

The Punong Barangay shall within five (5) days from the day of hearing, determine whether or not voluntary compliance can be secured. Upon the lapse of said five day period, there being no voluntary compliance, he shall issue a notice of execution in the name of the lupong tagapamayapa. The said notice must intelligently refer to the settlement or award and the amount actually due thereunder if it be for money, or the terms thereof which must be complied with.

Parties may go direct to Court

     The parties may go direct to court in the following instances:

1. Where the accused is under detention;
2. Where a person has otherwise been deprived of personal liberty calling for habeas corpus proceedings;
3. Where actions are coupled with provisional remedies such as preliminary injunction, attachment, delivery of personal property, and support pendente lite; and
4. Where the action may otherwise be barred by the statute of limitations.

     The customs and traditions of indigenous cultural communities shall be applied in settling disputes between members of the cultural communities.

Transmittal To Court

     The secretary of the lupon shall transmit the settlement of the arbitration award to the appropriate city or municipal court within five (5) days from the date of the award or from the lapse of the ten-day period repudiating the settlement and shall furnish copies thereof to each of the parties to the settlement and the lupon chairman.

Repudiation

     Any party to the dispute may, within ten (10) days from the date of the settlement, repudiate the same by filing with the lupon chairman a statement to the effect sworn to before him, where the consent is vitiated by fraud, violence, or intimidation. Such repudiation shall be sufficient basis for the issuance of the certification for filing a complaint.

Execution

     The amicable settlement or arbitration award may be enforced by the execution by the lupon within six (6) months from the date of the settlement. After the lapse of such time, the settlement may be enforced by action in the appropriate city or municipal court.

Effects of Amicable Settlement

     The amicable settlement and arbitration award shall have the force and effect of a final judgment of a court upon the expiration of ten (10) days from the date thereof, unless repudiation of the settlement has been made or a petition to nullify the award has been filed before the proper city or municipal court.

     However, this provision shall not apply to court cases settled by the lupon under the last paragraph of Section 408 of RA. 7160, in which case the compromise settlement agreed upon by the parties before the lupon chairman or the pangkat chairman shall be submitted to the court and upon approval thereof, have the force and effect of a judgment of said court.

Arbitration

     The parties may, at any stage of the proceedings, agree in writing that they shall abide by the arbitration award of the lupon chairman or the pangkat. Such agreement to arbitrate may be repudiated within five (5) days from the date thereof for the same grounds and in accordance with the procedure hereinafter prescribed. The arbitration award shall be made after the lapse of the period for repudiation and within ten (10) days thereafter.

     The arbitration award shall be in writing in a language or dialect known to the parties. When the parties to the dispute do not use the same language or dialect, the award, shall be written in the language or dialect known to them.

Form of Settlement

     All amicable settlements shall be in writing, in a language or dialect known to the parties, signed by them, and attested to by the lupon chairman, as the case may be. When the parties to the dispute do not use the same language or dialect, the settlement shall be written in the language or dialect known to them.

Failure to Appear

     The complaint may be dismissed when complainant, after due notices, refuses or willfully fails to appear without justifiable reason on the date set for mediation, conciliation or arbitration. Such dismissal ordered by the Punong Barangay/pangkat chairman after giving the complainant an opportunity to explain his non-appearance shall be certified to by the lupon or pangkat secretary as the case may be, and shall bar the complainant from seeking judicial recourse for the same cause of action as that dismissed.

     Upon a similar failure of the respondent to appear, any counterclaim he has made that arises from or is necessarily connected with complainant's action, may be dismissed. Such dismissal, ordered by the Punong Barangay/pangkat chairman after giving the respondent an opportunity to explain his non-appearance shall be certified to by the lupon or pangkat secretary, as the case may be, and shall bar the respondent from filing such counterclaim in court or any government office for adjudication.

     Further, in all cases where the respondent fails to appear at the mediation proceedings before the Punong Barangay it is mandatory for the latter to constitute the pangkat pursuant to Section 1 (c), Rule III KPR; but the respondent's refusal or willful failure to appear without justifiable reason before the pangkat, as determined by the latter after notice of hearing, shall be a sufficient basis for the issuance of a certification for filing complainant's cause of action in court or with the proper government agency or office. (Sec. 8, Rule VI, KPR).

    Refusal or willful failure of any party or witness to appear before the lupon or pangkat in compliance with a summons issued pursuant to the provisons of the Katarungang Pambarangay law, may be punished by the city or municipal court as for indirect contempt of court upon application filed therewith by the lupon chairman, the pangkat chairman, or by any of the contending parties. Such refusal or willful failure to appear shall be reflected in the records of the lupon secretary or in the minutes of the pangkat secretary and shall bar the complainant who fail to appear, from seeding judicial recourse for the same cause of action and the respondent who refuses to appear, from filing any counterclaim arising out of or necessarily connected with the complaint. (Sec. 515, LGC)

Pangkat has no POWER to punish

     The Lupon or Pangkat does not have the power to directly punish contemptuous acts, said power being an inherent attribute of a court. The sanctions for said acts are imposed by the city or municipal court upon application filed therewith by the Lupon Chairman, the Pangkat Chairman, or by any of the parties.

     The rationale behind this prohibition is that a charge for contempt of court is in the nature of a criminal action and the rules of procedure and constitutional guarantees governing criminal prosecutions which are applicable thereto are not observed in barangay proceedings.

     For this same reason, the Lupon or the Pangkat would be precluded from imposing any criminal sanction such as imprisonment or fine upon a party to a barangay settlement proceeding.

Proceedings not Investigative

     The barangay settlement procedure is compulsory for all cases falling within the authority of the lupon. The only exceptions to this rule are those cases enumerated in Section 408 of RA. 7160. Moreover, the said barangay proceedings are not investigative in nature but conciliatory. In the exercise of their conciliation functions, the Punong Barangay and the Pangkat ng Tagapagkasundo, explore all avenues to obtain an amicable settlement from the parties. A hearing of both parties, not an investigation of the incident involved, is necessary to find out how far each party is willing to compromise their respective interests to avoid a court litigation.

Appearance of Parties

     In all katarungang pambarangay proceedings, the parties must appear in person without the assistance of counsel or representative, except for minors and incompetents who may be assisted by their next-of-kin who are not lawyers.

Proceedings Open to Public

     All proceedings for settlement shall be public and informal. However, the lupon chairman or the pangkat chairman, as the case may be, may motu proprio or upon request of a party, exclude the public from the proceedings in the interest of privacy, decency, or public morals.

Barangay Budget: Definition of Terms

A. Annual Budget - Financial plan embodying the estimates of income certified as reasonably collectible by the treasurer, and appropriations covering the proposed expenditures for the ensuing calendar year.

B. Budgetary Appropriations - Refers to the estimates of expenditures in a budget when finally approved by the appropriate authorities concerned.

C. Capital Outlay - Refers to the purchase of goods and services with a life-expectancy extending beyond the fiscal year and which add to the assets of the local government concerned, except furniture and equipment of nominal value usually used in the conduct of normal government operations.

D. Current Operating Expenditures - Refers to appropriations for the purchase of goods and services for current consumption within the fiscal yer, including the acquisition of furniture and equipment of nominal value usually used in the conduct of normal government operations.

E. Income - Covers all revenues and receipts collected or received, forming the gross accretions of funds of the government.

F. Receipts - Refers to income realized from operations and activities of the government or are received by the government in the exercise of its corporate functions, consisting of charges or services rendered or for conveniences furnished, or the price of commodity sold, as well as authorized contributions or aids from other entities except provisional advances for budgetary purposes.

G. Revenue - Refers to income derived from the regular system of taxation enforced under authority of law or ordinance, and as such, accrue more or less regularly every year.

H. Supplemental Budget - A supplementary financial plan embodying changes during the calendar year in the annual estimates of income and appropriations.

Procedure for Amicable Settlement

1. Complaint - Upon payment of the appropriate filing fee, any individual who has a cause of action against another individual involving any matter within the authority of the lupon may complain, orally or in writing, to the lupon chairman of the barangay.
2. Mediation by lupon chairman - Upon receipt of the complaint, the lupon chairman shall within, the next working day, summon the respondent(s), with notice to the complainants(s) for them and their witnesses to appear before him for a mediation of their conflicting interests. If he fails in his mediation effort within fifteen (15) days from the first meeting of the parties before him, he shall forthwith set a date for the constitution of the pangkat.
3. Suspension of prescriptive period of offenses - While the dispute is under mediation, conciliation, or arbitration, the prescriptive periods for offenses and cause of action under existing laws shall be interrupted upon filing of the complaint with the Punong Barangay. The prescriptive periods shall resume upon receipt by the complainanat of the complaint or the certificate of repudiation or of the certification to file action issued by the lupon or pangkat secretary. Such interruption shall not exceed sixty (60) days from the filing of the complaint with the Punong Barangay.
4. Issuance of summons - The pangkat shall convene not later than three (3) days from its constitution, on the day and hour set by the lupon chairman, to hear both parties and their witnesses, simplify issues, and explore all possibilities for amicable settlement. For this purpose, the pangkat may issue summons for the personal appearance of parties and witnesses before it.
5. Move to disqualify - In the event that a party moves to disqualify any member of the pangkat by reson of relationship, bias, interest, or any other similar grounds discovered after the constitution of the pangkat, the matter shall be resolved by the affirmative vote of the majority of the pangkat whose decision shall be final. Should disqualification be decided upon, the resulting vacancy shall be filled.
6. Period to arrive at a settlement - The pangkat shall arrive at a settlement or resolution of the dispute within fifteen (15) days from the day it convenes. This period shall, at the discretion of the pangkat, be extendible for another period which shall not exceed fifteen (15) days, except in clearly meritorious cases.

Rules Governing Venue

1. Disputes between persons actually residing in the same barangay shall be brought for amicable settlement before the lupon of said barangay.
2. Those involving actual residents of different barangays within the same city or municipality shall be brought in the barangay where the respondent or any of the respondents actually resides, at the election of the complainant.
3. All disputes involving real property or any interest therein shall be brought in the barangay where or the larger portion thereof is situated.
4. Those arising at the workplace where the contending parties are employed or at the institution where such parties are enrolled for study shall be brought in the barangay where such workplace or institution is located.

     Objection to venue shall be raised in the mountain proceedings before the Punong Barangay; otherwise, the same shall be deemed waived. Any legal question which may confront the Punong Barangay in resolving objections to venue herein referred to may be submitted to the Secretary of Justice or his duly designated representation whose ruling thereon shall be binding.

Meaning of Venue

     The term "venue" is defined " as the place provided by law for filing an action or proceeding."  As it is generally understood, an action or proceeding is filed in a place designated as venue for trial thereof by the panel of jurors furnished by said place". (Black's Law Dictionary, Revised Fourth Ed., 1968, p. 1727). Applying this definition to the barangay system of settlement of disputes, where the proceedings do not constitute a trial in the strict sense but merely an informal confrontation between the parties, and where the body given the authority to officiate at the settlement is not a panel of jurors but a panel of conciliators, the Lupon, subject provisions in referring to the barangay where the respondent resides as the venue of a dispute, contemplate that the dispute shall be filed with the Punong Barangay of said barangay and shall be heard and settled therein by its Lupong Tagapayapa.

     The Philosophy underlying Section 409 of RA. 7160 is that as the Lupon members of the barangay where the respondent resides and the respondent are neighbor or at least members of, the same barangay, the former would be best positioned to persuade the latter to settle his dispute with the complainant.

Cases Brought before the Lupon

     The types of cases brought before the Lupong Tagapayapa for conciliation or mediation, based on the ten-year report of the Department of Local Government on the Katarungang Pambarangay (1978-87) are classified as follows:

A. Criminal Cases:

1. Physical Injuries
2. Slander/Oral Defamation
3. Threats
4. Robbery/Theft
5. Drug Abuse
6. Damage to Property
7. Estafa
8. Trespassing
9. Coercion/Unjust Vexation

B. Civil Cases

1. Ejectment
2. Family/Marital Relations
3. Collection of Debts or Rentals
4. Breach of Contract
5. Damages
6.  Demand for specific performance of obligation arising from contracts

C. Miscellaneous Cases

1. Agrarian Cases pursuant to LOI-1314
2. Boundary Disputes
3. Labor Cases
4. Violation of the Price Control Law
5. Violation of local ordinances

Subject matters for settlement

     The lupon of each barangay shall have authority to bring together the parties actually residing in the same city or municipality for amicable settlement of all disputes except:

1. Where one party is the government or any subdivision or instrumentality thereof;
2. Where one party is a public officer or employee, and the dispute relates to the performance of his pfficial functions;
3. Offenses punishable by imprisonment exceeding one year or a fine exceeding Five Thousand Pesos (Php5,000.00)
4. Offenses where there is no private offended party;
5. Where the dispute involves real properties located in different cities or municipalities unless the parties thereto agree to submit their differences to amicable settlement by an appropriate lupon;
6. Disputes involving parties who actually reside in barangays of different cities or municipalities, except where such barangay units adjoin each other and the parties thereto agree to subbmit their differences to amicable settlement by an appropriate lupon;
7. Such other classes of disputes which the President may determine in the interest of justice or upon the recommendation of the Secretary of Justice.

     The court in which non-criminal cases not falling within the authority of the lupon under RA. 7160 are filed may, at any time before trial, motu proprio refer the case to the lupon concerned for amicable settlement.

Lupon Members Character of Office

     The lupon members, while in the performance of their official duties or on the occasion thereof, shall be deemed as persons in authority, as defined in the Revised Penal Code.

     The lupon or pangkat members shall serve without compensation, except as provided for in Section 393 and without prejudice to incentives as provided for in Sec. 406 and in Book IV of RA. 7160. The Department of the Interior and Local Government shall provide for a system of granting economic or other incentives to the lupon or pangkat members who adequately demonstrate the ability to judiciously and expeditiously resolve cases referred to them. While in the performance of their duties, the lupon or pangkat members, whether in public or private employment, shall be deemed to be an official time, and shall not suffer from any diminution in compensation or allowance from said employment by reason thereof.

Duties of Pangkat Secretary

     The pangkat secretary shall be chosen by the majority vote of its three (3) members from among themselves and shall perform the following duties and functions:

1. Issue notices of hearing before the pangkat and cause them to be served upon the parties and their witnesses;
2. Keep minutes of the proceedings for conciliation and arbitration by the pangkat and have them attested by the pangkat chairman;
3. Note in the minutes the willful failure or refusal of a party to comply with the summons issued by the pangkat chairman;
4. Immediately transmit to the lupon secretary al settlements agreed upon by the parties and arbitration awards rendered by the pangkat;
5. Submit copies of the aforesaid minutes to the lupon secretary and to the proper local trial court;
6. Issue the certification required for filing an action or proceeding in court or any government office for adjudication. Such certification shall show that a confrontation of the parties took place but no conciliation or settlement has been reached; or that no such personal confrontation took place through no fault that can be attributed to the complainant; and
7. Issue a certification for barring the complainant from filing a case, or the respondent from filing a counterclaim in court in case of willfull failure of the complainant or respondent, respectively, to appear as provided in Section 8, Rule VI, KPR. 

Powers and Duties of the Pangkat Chairman

     The chairman of the pangkat shall be chosen by the majority vote of its three (3) members and shall have the following powers and duties;

1. Preside over all hearings conducted by the pangkat and administer oaths in connection with any matter relating to all proceedings in the implementation of the Katarungang Pambarangay;
2. Issue summons for the personal appearance of parties and witnesses by the parties before the pangkat;
3. Attest to the authenticity and due execution of the settlement reached by the parties before the pangkat;
4. When the parties agree in writing to have the pangkat arbitrate their dispute, preside over the arbitration hearings; and
5. Attest the certification issued by the pangkat secretary for filing an action or proceedings in court of any government office for adjudication.

Constitution of the Pangkat

     The parties to a dispute that has not been successfully settled by the Punong Barangay shall in his presence, choose from among the Lupon membership three persons who shall constitute the Pangkat that shall mediate their difference.

     Should the parties fail to agree on the composition of the Pangkat, the same shall be determined by lot drawn by the lupon chairman.

     The three regular members of the Pangkat, shall elect from among themselves their chairman and secretary.

Duties and Functions of Lupon Secretary

     The Barangay Secretary shall concurrently be the secretary of the Lupon and shall have the following duties and functions:

1. Keep and maintain a record book of all complaints filed with the Punong Barangay numbered consecutively in the order in which they were received and enter therein the names of the parties, date and time filed; nature of the case, and disposition;
2. Note the results of the mediation proceeding before the Punong Barangay and submit a final report thereon to the proper city or municipal court;
3. Record the willful failure or refusal of a party to comply with the summons issued by the Punong Barangay and transmit a certification to that effect to the proper court having jurisdiction over the matter in dispute;
4. Receive and keep the records of proceedings submitted to him by the various Pangkats;
5. Transmit the settlement agreed upon by the parties to the local city or municipal court;
6. Issue the certification required for filing an action or proceeding in court or any government office for adjudication. Such certification shall show that a confrontation of the parties has taken place and that no conciliation or settlement has been reached; although no such personal confrontation took place through no fault that can be attributed to the complainant, such certification may nevertheless be issued; and
7. Issue a certification for barring the complainant from filing a case or the respondent from filing a counterclaim in court in case of willful failure of the complainant or respondent, respectively, to appear as provided in Sec. 412, RA. 7160.

Functions of Lupon

1. Administrative Supervision - The lupon shall exercise administrative supervision over the various pangkats by seeing to it that they have the necessary supplies and forms required for discharging their duties and that they perform their functions efficiently, effectively and fairly.
2. Regular Meeting - The lupon shall meet regularly once a month on a date set by the lupon chairman, to provide a forum for the exchange of ideas on matters relevant to the amicable settlement of disputes, and to enable the various conciliation panel members to share with one another their observations and experiences in effecting speedy resolution of disputes, as well as to discuss problems relating to the amicable settlement of disputes and devise solutions thereto by harnessing the resources provided by the sangguniang barangay and other local resources of the barangay.
3. Withdrawal of appointment - After proper notice and hearing, the Punong barangay may, with the concurrence of a majority of all the lupon members, withdraw the appointment of a member of the lupon by reason of incapacity to discharge the duties of his office or unsuitability therefor.
4. Execution of Settlement or Award - The lupon shall, through the Punong Barangay, enforce by execution the settlement or arbitration award in accordance with the provisions of Rutle VII of KPR.
5. Other Powers and Duties - the lupon shall exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance.

Opposition to Appointment

     Any person may register with the Punong Barangay his opposition to the appointment or any once included in the list of intended appointees on the ground that he is not qualified or suitable for membership in the Lupon. Endorsement of any proposed appointee or recommendation of other persons not included in the list may likewise be made.

     After considering such opposition, endorsement or recommendation as may have been made, the Punong Barangay shall within ten days after completion of the twenty-one day period of posting the list of proposed appointees, issue the written appointment of Lupon members who thereupon must take their oath of office before him.

Qualification for Lupon Membership

     To qualify for appointment to the Lupon, a person must have his actual residence or place of work in the barangay and must possess personal characteristics that indicate his suitability for the task of conciliating disputes. Such  suitability may be indicated by his integrity, impartiality, independence of mind, sense of fairness and reputation for probity in relation to his age, social standing in the community, educational attainment, tact, patience, resourcefulness, flexibility, open mindedness and other relevant considerations. Further, he must not be expressly disqualified by law from holding public office.

Mediational Functions of Punong Barangay

1. Receive all written complaints and put in writing all verbal complaints made by individuals personally before him against other individuals. He shall not receive complaints made by or against corporations, partnership or other juridical entities. Immediately upon such receipt he shall notify the complainant of the date of initial hearing and shall, within the next working day, issue summons to the respondent/s to appear before him not later than five (5) days from date therof for a mediation of their conflicting interest;
2. Administer oaths in connection with any matter relating to all proceedings  in the implementation of the Katarungang Pambarangay;
3. Resolve all objections to venue raised during he mediation proceedings before him and certify that he resolved the matter or that no such objection was made;
4. Mediate all disputes within his jurisdiction. Upon successful conclusion of his mediation efforts, he shall reduce to writing in a language or dialect known to the parties the terms of the settlement agreed upon by them, have them sign the same, and attest to its due execution;
5. Arbitrate the dispute upon written agreement of the parties to abide by the arbitration award of the lupon chairman. He shall within ten (10) days from date of the agreement to arbitrate, conduct hearings and evaluate the evidence presented by the parties. He shall render the award in writing in a language or dialect known to the parties not earlier than the sixth day but not later than the fifteenth day following the date of the agreement to arbitrate.

Powers and Duties of Lupon Chairman

     The Punong Barangay as chairman of the lupon, shall have and perform the following powers and duties:

1. Determine within fifteen (15) days from the start of his term of office the actual number, not less than ten (10) nor more than twenty (20), that will constitute the lupon. In determining the actual number he shall take into consideration the barangay population and the volume of disputes previously brought for conciliation in his barangay;
2. Prepare, within the period mentioned in the immediately preceding paragraph, a notice to constitute the lupon, which shall include the names of proposed members who are residing or working in the barangay, not otherwise expressly disqualified by law and who have expressed their willingness to serve. The list of names shall be at least five (5) more than the actual number previously determined in accordance with the immediately preceding paragraph and it shall contain an invitation to the barangay members to endorse or oppose the proposed appointment of any person included in the list or to recommend other persons not included in the list, which endorsement, opposition, or recommendations shall be made within the period of posting. For this purpose, he shall determine thier sutiablility to the task of conciliation by considering their integrity, impartiality, independence of mind, sense of fairness, reputation for probity and other relevant considerations;
3. Post said notice to constitute the lupon immediately upon its completion in three (3) conspicuous places within the barangay for a period of not less than three (3) weeks;
4. Appoint not less than ten (10) nor more than twenty (20) suitable persons from the list of names contained in the notice, as lupon members within ten (10) days from the last day of posting after considering endorsements of or opposition to the proposed appointees and recommendations for the appointment of other persons nto included in the list. He shall likewise appoint immediately a qualified person to any vacancy that may thereafter occur in the lupon for any cause;
5. Swear the appointees into office, sign their appointment papers and have them attested to by the barangay secretary;
6. Post the list of appointed lupon membersin three (3) conspicuous places in the barangay for the entire duration of their term of office;
7.  Withdraw the appointment of any lupon member for justifiable cause with the concurrence of a majority of all lupon members.

Lupong Tagapayapa

     Republic Act No. 7160 created in each barangay a body known as Lupong Tagapayapa composed of the Punong Barangay as chairman and not less than ten nor more than twenty members, to be constituted every 3 years in the following manner:

1. Any suitable person actually residing or working in the barangay not otherwise expressly disqualified by law, and taking into account considerations of integrity, impartiality, independence of mind, sense of fairness, and reputation for probity, including educational attainment, may be appointed member.
2. A notice to constitute the Lupon, which shall include the named of proposed members who have expressed their willingness to serve, shall be prepared by the Punong Barangay within the first fifteen (15) days from the start of his term of office. Such notice shall be posted in three conspicuous places in the barangay continuously for a period of not less than three weeks.
3. The Punong Barangay taking into consideration any apposition to the proposed appointment or any recommendation/s for appointment as may have been made within the period of posting, shall within ten days thereafter, appoint as members those whom he determines to the suitable therefor.
4. Appointments shall be in writing signed by the Punong Barangay and attested to by the Barangay Secretary. The list of appointed members shall be posted in three conspicuous places in the barangay for the entire duration of their term of office.

Philosophy behind Barangay Proceedings

      The basic philosophy behind the barangay proceedings is that through the amicable settlement of the disputes, the volume of cases filed before the courts and quasi-judicial bodies may be reduced. Thus, the essence of the proceedings is conciliation or peaceful resolution of conflicts. The Punong Barangay and conciliation panel or the Pangkat ng Tagapagkasundo does not issue an order or render judgment except where both parties agree in writing to enter into an arbitration of their dispute. The law only enjoins the Punong Barangay and the Pngkat to exert all efforts and to explore all possibilities to enable the parties to reach an amicable settlement or agreement which is acceptable to both of them. This settlement has the force and effect of a judgment of the courts after the lapse of a period of ten days from the date thereof if repudiation of the settlement or agreement is not made within said period.

Essense of Katarungan Pambarangay

     The essence of the Katarungang Pambarangay Law is the amicable settlement of disputes wherein the disputing parties are encouraged to make mutual concession to obtain a peaceful resolution of the dispute without formal adjudication thereof. The important consideration in amicable settlement is the extent to which the parties are willing to compromise their respective claims against each other within the limits imposed by law, morals, good customs, public order and public policy. The amicable settlement is in the nature of a contract between the parties, except that by express provision of law, it acquires the force and effect of a judgment of  court upon the expiration of ten days from date thereof. The provisions of the New Civil code on contracts are applicable to an amicable settlement insofar as they are not inconsistent with the provisions of RA. 7160. Accordingly, the parties to an amicable settlement re free to establish such stipulations, clauses, terms and conditions they may deem convenient subject to the limitations of Article 1306, New Civil Code.

Benefits of Barangay Officials

     The following are the benefits of Barangay Officials:

1. Honoraria and Allowance
2. Compensation and Leave Privileges
3. Christmas bonus
4. Civil Service Eligibility
5. Preference in Appointment
6. Exemption from Tuition and Matriculation Fees

Barangay Officials as Deputy Fish Wardens

     Barangay officials who are duly accredited by the Department of Interior and Local Government and trained by the Bureau of Fisheries and Aquatic Resources are eligible for appointment s Deputy Fish Warden upon recommendation of the director of Fisheries and Aquatic Resources.

Duties of Deputy Fish Wardens:

Barangay officials deputized as fish wardens have the following powers and duties:

1. Enforce all fishery laws, rules and regulations governing the conservation and protection of fishery and aquatic resources within his area of jurisdiction.
2. Make arrest, even without warrant, of any person who has committed in his presence any of the offenses penalized under the provisions of existing fishery laws, rules and regulations.
3. Deliver within the prescribed period, from the time of arrest of the offender, together with the agents, explosives, obnoxious or poisonous substances, fish nets, and other paraphernalia used in illegal fishing, including confiscated or abandoned fish, if any, and file the proper complaint with the appropriate official designated by law to conduct preliminary investigation and file the corresponding information in court through the assistance of the BFAR Provincial Program Officer or Regional Director where the offense was committed, whoever is nearest and most expendiently available.
4. Conduct fishery information campaign on all forms of illegal fishing in coordination with BFAR and other government agencies involved in similar work.
5. Submit monthly accomplishment report and other reports required of them by the BFAR through its district or regional officers.

Exemption from Tuition and Matriculation Fees

     The Punong Barangay, the Sangguniang Barangay members, the Barangay Treasurer, and the Barangay Secretary shall be exempted during their incumbency from paying tuition and matriculation fees for their legitimate dependent children attending state colleges or universities. He may likewise avail of such educational benefits in a state college or university located within the province or city to which the barangay belongs.

Preference in Appointment

     Elective barangay officials shall have preference in appointments to any government position or in any government-owned or controlled corporations, including their subsidiaries, after their tenure of office, subject to the requisite qualifications and the provisions of the Rules and Regulations issued by the Civil Service Commission on the subject.

Civil Service Eligibility

     The Punong Barangay, the Sangguniang Barangay members, the Barangay Treasurer, and the Barangay Secretary shall be entitled to appropriate civil service eligibility on the basis of the number of years of service to the barangay, pursuant to the rules and regulations issued by the Civil Service Commission in the grant of eligibility.

     CSC Resolution No. 83-496

     1. Service to the barangay shall mean the elective barangay officials service for the duration of his term of office, and in the case of appointive barangay officials, 6 years of service as provided under the Local Government Code.

     2. To be granted an eligibility, an applicant may file his properly accomplished application form with the following documents with the Examination Administration Division, Civil Service commission or with any of the Civil service Commission Regional Offices nearest his residence upon expiration of his term of office:

          a. For Punong Barangay, Sangguniang Barangay Member and Sangguninag kabataang chairman. Certification of service by the Municipal or city Mayor of the Municipality or City which exercises general supervision over the government of the barangay.

          b. For Barangay Secretary and Barangay Treasurer. - Certification of service by the Punong Barangay who has direct supervision over him.

     3. In accordance with CSC Resolution No. 641, s. 1980, an admission fee of 20.00 is charged each applicant for grant of civil service eligibility under these rules.

     4. Civil Service commission Regional Offices shall evaluate the qualifications of applicants and prepare a master list of those who have been granted civil service eligibility under the preceding paragraphs. The corresponding Notice of Eligibility shall likewise be prepared.

     5. The Barangay Official Eligibility shall be appropriate for first level positions in the career service.

Christmas Bonus

     The Punong Barangay, the Sangguniang Barangay members, the Barangay Treasurer, and the barangay Secretary shall be entitled to Christmas bonus of at least One thousand pesos (Php1,000.00) each, the funds for which shall be taken from the general fund of the barangay or from such other funds appropriated by the national government for the purpose.

Compensation and Leave Privileges

     The Punong Barangay, the Sangguniang Barangay members, the Sangguniang Kabataan Chairman, the Barangay Treasurer, and the Barangay Secretary shall be entitled to such compensation, allowances, emoluments and such other privileges as provided under Title One, book III of the Local Government Code.

     Elective local officials shall be entitled to the same leave privileges as those enjoyed by appointive local officials, including the cummulation and commutation thereof. (Sec. 81, LGC)

     As a general proposition, elective officials entitled to salary is not dependent upon actual attendance in office. They are not even required to keep a record of their daily attendance such as by accomplishing civil service form No. 48 (daily time record) or punching the bundy clock. Thus, a provincial governor is entitled to collect salary even when absent on a personal business, it being well-settled that an elected officer is entitled to emoluments so long as he is permitted to retain the office, the right thereto, being independent of services performed. (De villa v. Mathay, Sr. G.R. 38426, 11 May 88)

Honoraria and Allowance

     Barangay officials, including barangay tanods and members of the lupong tagapamayapa, shall receive honoraria, travel expenses, reasonable allowances, and such other emoluments as may be authorized by law or barangay, municipal or city ordinance in accordance with the provisions of the Local government 

code, but in no case shall it e less than One Thousand Pesos (Php1,000) per month for the Punong Barangay and Six Hundred Pesos (Php600.00) per month for the sangguniang Barangay members, Barangay Treasurer, and Barangay Secretary. The annual appropriations for personal services shall be subject to the budgetary limitations prescribed under Title Five, Book II of the Local Government code.