Section 20. Sangguniang Kabataan Funds.— The Sangguniang Kabataan funds shall be governed by the following provisions:

1. All the income of the barangay derived from whatever source shall accrue to its general fund and shall, at the option of the barangay concerned, be kept as trust fund in the custody of the city or municipal treasurer or be deposited in „ hank n refer ably government-owned, situated in or nearest to its area of jurisdiction. Such funds shall be disbursed in accordance with the provisions of this Act. Ten percent (10%) of the general fund of the barangay shall be set aside for the Sangguniang Kabataap. The Sangguniang Barangay shall appropriate the Sangguniang Kabataan funds in lump-sum which shall be disbursed solely for youth development and empowerment purposes;

2. The Sangguniang Kabataan shall have financial independence in its operations, disbursements and encashment of their fund, income and expenditures. As such, the Sangguniang Kabataan funds shall be deposited in the name of the Sangguniang Kabataan of the concerned barangay in a government-owned bank situated in or nearest to its area of jurisdiction with the Sangguniang Kabataan chairperson and the Sangguniang Kabataan treasurer as the official signatories;

3. All Sangguniang Kabataan funds shall be allocated in an annual budget, and if the funds allow, in a supplemental budget in accordance with the adopted Annual Barangay Investment Program. Both the Comprehensive Barangay Youth Development Plan and Annual Barangay Investment Program shall give priority to programs, projects and activities that will promote and ensure the equitable access to quality education, environmental protection, climate change adaptation, disaster risk reduction and resiliency, youth employment and livelihood, health and anti-drug abuse, gender sensitivity, sports development, and capability building which emphasizes leadership training; and

4. The Sangguniang Bayan or Sangguniang Panlungsod shall, within sixty (60) days upon receipt hereof, review the annual budget and supplements budget of the Sangguniang Kabataan on their compliance in the immediately preceding provision and other existing laws, rules and regulations. Noncompliance shall render said budgets inoperative either in whole or in part. Failure on the part of the sanggunian to complete the review within the prescribed period shall render the said annual budget deemed approved.

All Sangguniang Kabataan funds derived from any source shall be stated in its financial records which shall be kept by the Sangguniang Kabataan treasurer, copy furnished the sangguniang barangay, in simplified manner as may be prescribed by the Commission on Audit (COA). All Sangguniang Kabataan funds shall be subject to all existing accounting and auditing laws, rules and regulations.