REPUBL1C OF TI-IE PRILIPPNE-S

Department of Budget and MaaagementMalacafiang, Ma~na

CORPORATE OPERATING BUDGETCalendar Year 2012

TO: TOURISM PROMOTIONS BOARD (TPB)Your Corporate Operating Budget (COB) for Calendar Year 2012 per endorsement of the Department ofTourism Secretary Ramon R. Jimenez, Jr., dated July 17, 2012, submitted pursuant to Section 6 of ExecutiveOrder (E.O.) No. 518, series of 1979 and Section 19, Chapter 3, Book VI of E.O. No. 292, series of 1987, ishereby approved for a total amount not exceeding ONE HUNDRED FORTY NINE MILLION SIX HUNDREDEIGHTY FIVE THOUSAND PESOS ONLY (P149,685,OOO) details of which are shown below:

PROPOSAL APPROVED VARIANCE(a) (b) (ceb-a)

PARTICULARS

392,000,000 P 323,000,000 (69,000,000)369,000,000 300,000,000 (69,000,000) a/

23,000,000 23,000,000 -

392,000,000 P 149,685,000 P (242,315,000)125,200,000 51,123,000 (74,077 ,000) bl

TOTAL SOURCES:NG SubsidyCorporate Funds

TOTAL USES:Personal Services (PS)Maintenance and Other Operating

Expenses (MOO E)Capital Outlays (CO)

Excess/Shortfall

(168,238,000) cl256,800,00010,000,000

88,562,00010,000,000

P 173,315,000 P 173,315,000

Footnotes:

a/ The variance of P69,000,000 represents the proposed subsidy from the national government as retirementbenefits for employees who will avail of the retirement package as a result of the DOT-TPB reorganizationpursuant to Republic Act No. 9593, The Tourism Act of 2009.

b/ The variance ofP74,077,000 for PS is computed as follows:1. Overprovision (based on filled positions as of July 31 , 2012)

Salary, RegularWages, CasualsPersonnel Econom ic Relief AllowanceUniform/Clothing AllowanceYear-End BonusCash GiftProductivity Incentive BonusRepresentation and Transportation AllowancesRetirement Benefit/Gratuity

Other AllowancesLife & Retirement Insurance PremiumEmployee Compensation Insurance PremiumPag-IBIG ContributionsPhilriealth Contributions

1,108,000453,000

48,00020,00088,00020,000

8,000501,000

69,000,0002,659,000

133,0002,0002,000

35,000

94 filled regular positionsis existing casual positionsP2,000 x 12 mos. x 94 pos.PS,OOO/year x 94 pas.One moo basic salaryPS,OOOx 94 pas.P2,000/year x 94 pas.Based on GAA ratesNot recommendedNo legal basis12% of total salariesPi OO/mo. x 12 mos. x 94 pas.P100/mo. x 12 mos. x 94 pas.Based on DBM BudgetCircular Letter No. 2012-12

Total 74,077,000

cl MOOE level computed considering actual/audited expenses for the previous years and the effects ofinflation, resulting to the disallowance of P168,238,OOO.

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if The approval of the COB shall be subject to the following conditions:

1, All expenditures, whether for current operating expenditures or COs, shall be made within the limits ofavailable funds realized from corporate receipts, authorized corporate borrowings and National Governmentbudgetary support either in the form of subsidy, equity or loans outlay,

2, Disbursement for personnel amelioration/benefit shall be subject to the pertinent compensation laws, rulesand regulations, including E,O, Nos, 7 and 24 dated September 8, 2010 and February 10, 2011, respectively,Such expenditures shall also be conditioned on the relevant General Provisions of Republic Act (RA) No,10155, the FY 2012 General Appropriations Act (ex, Representation Allowances and TransportationAllowances under Section 45, General Provisions), or any specific law or approval of the President of thePhilippines or Secretary of Budget and Management, as the case may be,

3, Disbursements for extraordinary and miscellaneous expenses shall be subject to Section 23, GeneralProvisions of RA No. 10155.

4. Disbursements from the Confidential and Intelligence Fund shall be covered by an approval from thePresident of the Philippines,

5, For equipment items per Annual Equipment Procurement Program that require specific clearance/approvalfrom the Agencies concerned (ex. National Computer Center for information technology equipment and Officeof the President/Department of Budget and Management/Supervising Department for motor vehicles), thesame shall be secured before acquisition thereof in accordance with Corporate Budget Circular No, 17 datedFebruary 9, 1996, National Budget Circular Nos. 446 and 446-A dated November 24, 1995 and January 30,1998, respectively; Budget Circular No. 2010-2 dated March 1, 2010, Administrative Order (A.O,) No. 233dated August 1, 2008, Office of the President Memorandum Circular No. 9 dated December 4, 2010 and A.O.No. 15 dated May 25,2011, among others.

6. The fiscal discipline measures prescribed under A.O. No. 103 dated August 31,2004 shall be observed.

7. It is understood that this review action does not authorize any item of expenditure that is prohibited by orinconsistent with the provisions of law.

8. The pertinent laws, rules and regulations including those on compensation, procurement, budgeting,accounting and auditing shall be strictly followed, Compliance with all existing laws, rUI's and regulations shallbe the responsibility of the implementing government corporation. ~ j\

Recommending Approval: AP~ovedlfBy uthoritf of the Secretary:

/ .JA~/\' ItJ,J JLORENZ~;'- ~APETE MARIO L. RELAMPAGOS

Director, BMB-F Undersecretary It [,..J

Date:October 11, 2012 C08-F1-12-0027

cc: !The,Chairman'Boafd ofbirectors, TPB

Assistant Commissioner Lourdes M, CastilloCommission on Audit (COA) - Central OfficeCOA Building, Quezon City

The Resident AuditorCOA- TPB

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