Requirements (Cash Advance)

Revised as of 05-11-2010

AUDITING REQUIREMENTS (DRAFT)

Fundamental Principles governing the financial transactions and operations of any government agency as provided under Section 4 of PD 1445:

1. No money shall be paid out of any public treasury or depository except in pursuance of an appropriation law or other specific statutory authority.

2. Government funds or property shall be spent or used solely for public purposes.3. Trust funds shall be available and may be spent only for the specific purpose for which the

trust was created or the funds received.4. Fiscal responsibility shall, to the greatest extent, be shared by all those exercising authority

over the financial affairs, transactions, and operations of the government agency.5. Disbursements or disposition of government funds or property shall invariably bear the

approval of the proper officials.6. Claims against government funds shall be supported with complete documentation.7. All laws and regulations applicable to financial transactions shall be faithfully adhered to.8. Generally accepted principles and practices of accounting as well as of sound management and

fiscal administration shall be observed, provided that they do not contravene existing laws and regulations.

General Requirements for All Types of Disbursement

Certificate of Availability of Funds issued by the chief accountantExistence of lawful and sufficient allotment duly obligated as certified by authorized officials (except for corporations)Legality of transaction and conformity with laws, rules and regulationsApproval of expenditure by Head of Office or his authorized representativeSufficient and relevant documents to establish validity of claim

Specific Requirements for Each Type of Disbursement

1.0 Cash Advances

1.1 Granting of Cash Advances

General Guidelines

The rules and regulations on the grant and liquidation of cash advances are prescribed under COA Circular No. 97-002 dated February 10, 1997 and reiterated in COA Circular No. 2009-002 dated May 18, 2009 and Section 89 of PD 1445. These guidelines provide, among others:

No cash advance shall be given unless for a legally authorized specific purpose.

No additional cash advances shall be allowed to any official or employee unless the previous cash advance given him is first liquidated and accounted for in the books.

No cash advance shall be granted for payments on account of infrastructure projects or other undertaking on a project basis.

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Documentary Requirements common to all cash advances except for travels

Designation of the accountable officer by the Head of the Agency or his duly authorized representative indicating the maximum accountability and purpose of cash advance (for initial cash advance)

Certification from the Accountant that previous cash advance has been liquidated and accounted for in the books

Approved application for bond for initial cash advance, and Fidelity Bond for the year for subsequent cash advance as the bond is renewable yearly

1.1.1 Payroll Fund for Salaries, Wages, Allowances, Honoraria and Other Similar Payments

The cash advance for payroll fund shall be equal to the net amount of the payroll for the pay period.

Additional Documentary Requirements

Approved Payroll or list of payees indicating their net payments Approval/authority to pay any allowance/salaries/wages/fringe

benefits issued by the GOCCs/GFIs governing boards

1.1.2 Petty Cash Fund (PCF)

The PCF shall be set up at the beginning of the year. It shall be sufficient for the recurring petty operating expenses of the agency for one month. The cash advance shall not be used for payment of regular expenses, such as rentals, subscriptions, light and water bills and the like. Payments out of PCF, which shall be made through a Petty Cash Voucher, shall be allowed only for amounts not exceeding P15,000 for each transaction, except when a higher amount is allowed by law and/or specific authority by the Commission on Audit. Splitting of transactions to avoid exceeding the ceiling shall not be allowed.

Additional Documentary Requirements for initial cash advances

Approved estimates of expenses for one month Copy of company policy for maintaining PCF under the imprest

system for GOCCs

1.1.3 Field / Activity Current Operating Expenses (COE)

The amount of the cash advance shall be limited to the requirements for two months. Additional cash advances shall be granted on the basis of the activity budget or the requirements for two months, whichever is lower.


Approved Budget for COE of the agency field office or agency activity in the field

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1.1.4 Other Expenses


Financial Assistance for Witness Protection Program

o Approved Work and Financial Planso Program Implementing Guidelineso List of witnesses in custody

Financial Assistance to Victims

o Approved Work and Financial Planso Program Implementing Guidelineso Agency resolution recommending assistanceo Status of cash

For prisoners’ Subsistence Allowance (SA)

o Roster of Inmates duly certified by the jail wardeno Certification from the Chief, Operations Division on actual

number of inmates (jail population)

Anniversary celebrations/conferences, etc.

o Approved Budget Estimateso Approved Program of Activities

1.1.5 Traveling Allowance

General Guidelines

Under Section 2, Executive Order (EO) No. 248 dated May 29, 1995 as amended by EO 248A

dated AugThe mere failure to timely liquidate the cash advance is the gravamen of the offense against Sections 89 and 128 of P.D. No. 1445Posted on February 27, 2012

In the case at bar, the Sandiganbayan granted the demurrer to evidence on the ground that the prosecution failed to prove that the government suffered any damage from private respondent’s non-liquidation of the subject cash advance because it was later shown, as admitted by the prosecution’s witness, that private respondent liquidated the same albeit belatedly.

Sections 89 and 128 of P.D. No. 1445 provide—

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SECTION 89. Limitations on Cash Advance. — No cash advance shall be given unless for a legally authorized specific purpose. A cash advance shall be reported on and liquidated as soon as the purpose for which it was given has been served. No additional cash advance shall be allowed to any official or employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made.

SECTION 128. Penal Provision. — Any violation of the provisions of Sections 67, 68, 89, 106, and 108 of this Code or any regulation issued by the Commission [on Audit] implementing these sections, shall be punished by a fine not exceeding one thousand pesos or by imprisonment not exceeding six (6) months, or both such fine and imprisonment in the discretion of the court. (Emphasis supplied.)

On the other hand, COA Circular No. 90-331[14] or the “Rules and Regulations on the Granting, Utilization and Liquidation of Cash Advances” which implemented Section 89 of P.D. No. 1445 pertinently provided–

5. LIQUIDATION OF CASH ADVANCES

5.1 The AO (Accountable Officer) shall liquidate his cash advance as follows:

5.1.1 Salaries, Wages, etc. – within 5 days after each 15 day/ end of the month pay period.

5.1.2 Petty Operating Expenses and Field Operating Expenses – within 20 days after the end of the year; subject to replenishment during the year.

5.1.3 Foreign Travel – within 60 days after return to the Philippines.

Failure of the AO to liquidate his cash advance within the prescribed period shall constitute a valid cause for the withholding of his salary.

x x x x

5.7 When a cash advance is no longer needed or has not been used for a period of two (2) months, it must be returned to or deposited immediately with the collecting officer.

5.8 All cash advances shall be fully liquidated at the end of each year. Except for petty cash fund, the AO shall refund any unexpended balance to the Cashier/Collecting Officer who will issue the necessary official receipt.

x x x x

9. DUTIES AND RESPONSIBILITIES OF THE COA AUDITOR

x x x x

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9.6 Upon failure of the AO to liquidate his cash advance within one month for AOs within the station and three months for AOs outside the station from date of grant of the cash advance, the Auditor shall issue a letter demanding liquidation or explanation for non-liquidation.

9.7 If 30 days have elapsed after the demand letter is served and no liquidation or explanation is received, or the explanation received is not satisfactory, the Auditor shall advise the head of the agency to cause or order the withholding of the payment of any money due the AO. The amount withheld shall be applied to his (AO’s) accountability. The AO shall likewise be held criminally liable for failure to settle his accounts.[15] (Emphasis supplied.)

As can be seen, contrary to the findings of the Sandiganbayan, actual damage to the government arising from the non-liquidation of the cash advance is not an essential element of the offense punished under the second sentence of Section 89 of P.D. No. 1445 as implemented by COA Circular No. 90-331. Instead, the mere failure to timely liquidate the cash advance is the gravamen of the offense. Verily, the law seeks to compel the accountable officer, by penal provision, to promptly render an account of the funds which he has received by reason of his office.[16]

Nonetheless, even if the Sandiganbayan proceeded from an erroneous interpretation of the law and its implementing rules, the error committed was an error of judgment and not of jurisdiction. Petitioner failed to establish that the dismissal order was tainted with grave abuse of discretion such as the denial of the prosecution’s right to due process or the conduct of a sham trial. In fine, the error committed by the Sandiganbayan is of such a nature that can no longer be rectified on appeal by the prosecution because it would place the accused in double jeopardy.[17]

ust 14, 1995 and EO 298 dated March 23, 2004, travel shall cover only those that are urgent and extremely necessary, will involve the minimum expenditure and are beneficial to the agency concerned and/or the country. In line with this policy, all foreign and local travels are suspended under Administrative Order No. 103 dated August 31, 2004 as one of the austerity measures in the government except in the cases enumerated therein.

Under Section 17 (c) of CY 2010 GAA, no government fund shall be utilized to defray foreign travel expenses of any government official or employee, except in the case of training, seminar or conference abroad when the officials or other personnel of the foreign mission cannot effectively represent the country therein, and travels necessitated by international commitments; provided that no official or employee, including uniformed personnel of the DILG and DND will be sent to foreign training, conferences or attend international commitments when they are due to retire within one year after the said foreign travel.

Under Memorandum Circular No. 52 dated October 2, 2003 of the Office of the President, the grant of clothing allowance in all categories of trips is suspended indefinitely.

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Traveling allowances granted shall be treated and accounted for as cash advances. No additional cash advance shall be granted to any official or employee unless the previous cash advance given to him for travel is first liquidated and accounted for in the books as stated under Item 4.1.3(ii) of COA Circular No. 2009-002 dated May 18, 2009. The guidelines on the grant of traveling allowances are prescribed under COA Circular No. 96-004 dated April 19, 1996.

1.1.5.1 Local Travel

Documentary Requirements

Office Order/Travel Order approved in accordance with Section 3 of EO No. 298

Duly approved itinerary of travel Certification from the accountant that the previous cash

advance has been liquidated and accounted for in the books

1.1.5.2 Foreign Travel


Office Order/Travel Order approved in accordance with the provisions of Sections 1 and 2 of EO No. 459 dated September 1, 2005

o As approved by the Office of the President in case of the following officials:

- Members of the cabinet and officials of equivalent rank

- Heads of government-owned and controlled corporations (GOCCs) and government financing institutions (GFIs) under or attached to the Office of the President

- Heads of agencies under or attached to the Office of the President

The Chief Justice and Associate Justices of the Supreme Court were exempted under Memorandum Order No. 26 dated July 31, 1986. Under Executive Order No. 477 dated August 21, 1991, the Chairmen and Commissioners of the Constitutional Commissions, Chairman and Members of the Commission on Human Rights, Ombudsman and Deputy Ombudsmen were also exempted from securing prior approval from the Office of the President in connection with travels abroad.

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o As approved by the respective heads of agencies in the case of other government officials and employees regardless of the length of travel:

- National agencies – Department Secretaries or their equivalents

- GOCCs and GFIs attached to the Office of the President – Heads of the GOCCs or GFIs

- GOCCs and GFIs not attached to the OP – Department Head to which they are attached

- Provincial Governors and Mayors of highly urbanized cities or independent component cities – Secretary of the Interior and Local Government

- SUCs – Chairman of CHED in the case of heads of the SUCs and respective heads in the case of all other officials and employees

- Technical and Vocational Schools – Chairman of TESDA in the case of heads of technical and vocational schools and respective heads in the case of all other officials and employees

Duly approved itinerary of travel Letter of invitation of host/sponsoring country/

agency/organization For plane fare, quotations of three travel agencies or its

equivalent Flight itinerary issued by the airline/ticketing office/travel

agency Copy of the UNDP rate for the daily subsistence allowance

(DSA) for the country of destination for the computation of DSA to be claimed

Document to show the dollar to peso exchange rate at the date of grant of cash advance

Where applicable, authority from the Office of the President to claim representation expenses

In case of seminars/trainings

o Invitation to nominate participant (issued by the foreign country)

o Acceptance of nomination as participant (issued by the foreign country)

o Programme Agenda and Logistics Information

Certification from the accountant that the previous cash advance has been liquidated and accounted for in the books

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1.2 Liquidation of Cash Advances

General Guidelines

The accountable officer shall liquidate cash advances within the following period:

Salaries, Wages, Allowances, Honoraria and Other Similar Payments – within five (5) calendar days after the end of the pay period

Field Operating Expenses – within 20 calendar days after the end of the year subject to replenishment as frequently as necessary during the year

Petty Cash Fund - as soon as the disbursements reaches 75% or as needed, the PCF shall be replenished which shall be equal to the total amount of expenditures made therefrom. In case of termination, resignation, retirement or dismissal of the PCF custodian, immediately thereafter.

Traveling Expenses – within 30 days after the return of the official/employee concerned to his official station for local travel and within 60 days after the return of the official/employee concerned to the Philippines in the case of foreign travel.

Special purpose - as soon as the purpose of the cash advance has been served.


1.2.1 Payroll Fund for Salaries, Wages, etc.

Report of disbursements certified correct by the accountable officer Approved payrolls/vouchers duly acknowledged/signed by the payee Approved DTRs or Certificate of Service Approved application for leave In case of payment of personnel under the “job order” status, duly

verified/accepted accomplishment report Official Receipt (OR) in case of refund for unclaimed salaries Authority from the claimant and identification documents, if claimed

by person other than the payee Such other pertinent supporting documents as are required by the

nature of expense

1.2.2 Petty Cash Fund

Summary of Petty Cash Vouchers Report of disbursements Approved purchase request with certificate of Emergency Purchase, if

necessary Bills, receipts, sales invoices Certificate of inspection and acceptance Report of Waste Materials in case of replacement/repair Approved trip ticket, for gasoline expenses Canvass from at least three suppliers for purchases involving P1,000

and above, except for purchases made while on official travel Summary/Abstract of Canvass Petty Cash Vouchers duly accomplished and signed

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OR – for refund, in case of current/petty expenses of time-bound undertaking

Such other supporting documents that may be required and/or required under the company policy depending on the nature of expenses

1.2.3 Field/Activity Current Operating Expenses

Same requirements as those for salaries, petty operating expenses, other personal services, and maintenance and other operating expenses depending on the nature of expenses incurred

1.2.4 Other Expenses

Financial Assistance (Witness Protection Program)

o Approved Work and Financial Planso Program Implementing Guidelineso List of witnesses in custodyo Report of disbursements duly supported with necessary

documents depending on the nature of expenses

Financial Assistance to Victims

o Approved Work and Financial Planso Program Implementing Guidelineso Agency resolution recommending assistanceo Status of casho Report of disbursement duly supported with necessary documents

depending on the nature of expense

For prisoners’ Subsistence Allowance (SA)

o Roster of Inmates duly certified by the jail wardeno Certification from the Chief, Operations Division on actual

number of inmates (jail population)o Summary of Committed and Released Inmates on a daily basis

duly signed by the Jail Wardeno Certificate of discharge on a daily basis, if there is any, duly signed

by the Jail Wardens, Duty Gater and other responsible officialso Report of disbursement duly supported with necessary documents

depending on the nature of expenses

For reimbursement of toll receipts

o Toll Receiptso Trip tickets

Anniversary celebration/conference, etc.

o Approved Budget Estimateso Approved Program of Activitieso Report of disbursements duly supported with necessary

documents depending on the nature of expenses

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1.2.5 Traveling Expenses

1.2.5.1 Local Travel


Paper/electronic plane, boat or bus tickets, boarding pass, terminal fee

Certificate of appearance/attendance Copy of previously approved itinerary of travel Revised or supplemental Office Order or any proof

supporting the change of schedule Revised Itinerary of Travel if the previous approved itinerary

was not followed Certification by the Head of Agency as to the absolute

necessity of the expenses together with the corresponding bills or receipts, if the expenses incurred for official travel exceeded the prescribed rate per day. (Certification or affidavit of loss shall not be considered as an appropriate replacement for the required hotel /lodging bills and receipts.)

Liquidation Report Official Receipt – in case of refund of excess cash advance Certificate of travel completed Hotel room/lodging bills with official receipts in the case of

official travel to places within 50 kilometer radius from the last city or municipality covered by the Metro Manila Area, or the city or municipality where their permanent official station is located in the case of those outside the Metro Manila Area, if the travel allowances being claimed includes the hotel room/lodging rate

1.2.5.2 Foreign Travel


Paper/electronic plane tickets, boarding pass, boat or bus ticket, terminal fee

Certificate of appearance/attendance for training/seminar/ participation

Bills/receipts for non-commutable representation expenses approved by the President under Section 13 of EO 248

For reimbursement of actual travel expenses in excess of the prescribed rate (EO No. 298): o Approval by the Presidento Certification from the Head of Agency that it is

absolutely necessary o hotel room bills with official receipts. (Certification or

affidavit of loss shall not be considered as an appropriate replacement for the required hotel/lodging bills and receipts.)

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Revised Itinerary of Travel, if applicable Narrative report on trip undertaken/Report on Participation Official Receipt, in case of refund of excess cash advance Certificate of travel completed Liquidation Report

2.0 Fund Transfers to Non-Government Organizations / People’s Organizations (NGOs/POs)

General Guidelines

NGOs/POs are not allowed to participate in the implementation of any program or project of government agencies until such time that any earlier fund releases availed by the said NGOs and POs shall have been fully liquidated pursuant to pertinent accounting and auditing rules and regulations as certified by the Head of the Agency concerned and the COA Auditor. Government agencies shall likewise ensure that the NGOs and POs that they deal with are legitimate. A report on the fund releases indicating the names of NGOs and POs shall be prepared by the agency concerned and duly audited by the COA and shall be submitted to the Senate Committee on Finance and House Committee on Appropriations. (Section 76 of CY 2010 GAA or pertinent sections of the GAA for the year).

As provided for under Section 4.5.6 of COA Circular No. 2007-001, no NGO/PO shall be a recipient of funds where any of the provisions thereat and the MOA entered into with the GO has not been complied with, in any previous undertaking with funds allocated from the GO. The guidelines in the granting, utilization and accounting of funds released to NGOs/POs are prescribed under COA Circular No. 2007-001 dated October 25, 2007, COA Circular No. 2009-007 dated September 25, 2009 and GPPB Resolution No. 12-2007 dated 6-29-2007.

2.1 Release of Funds


In case of selection of NGO through competitive bidding or negotiated procurement, relevant requirements under GPPB Resolution No. 12-2007 dated June 29, 2007

Approved Summary of Budgetary Requirements detailing the items of expenditure/disbursement to be incurred in the program/project

List of priority projects which may be implemented by the NGO/PO published in the newspaper, agency website, bulletin board and the like

Accreditation of the NGO/PO by the Bids and Awards Committee (BAC) of the grantee agency

Results of evaluation of financial and technical capability of selected NGO/PO

Performance security for infrastructure project

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NGOs/POs proposal or application for funding accompanied by:

o Certificate of registration from SEC or either CDA or DOLE as the case may be

o Authenticated copy of the latest Articles of Incorporation or Articles of Cooperation as the case may be, showing the original incorporators/organizers and the Secretary’s certificate for incumbent officers, together with the Certificate of Filing with the SEC/Certificate of Approval by the CDA

o Audited financial reports for the past three (3) years preceding the date of project implementation. For NGO/PO which has been in operation for less than three (3) years, financial reports for the years in operation and proof of previous implementation of similar projects

o Disclosure of other related business, if anyo Work and Financial Plan (WFP), and sources and Details of

Proponent’s Equity Participation in the Projecto Complete project proposal approved/signed by officerso List and /or photographs of similar projects previously

completed, if any, indicating the source of funds for implementation

o Sworn affidavit of the secretary of the NGO/PO that none of its incorporators, organizers, directors or officers is an agent of or related by consanguinity or affinity up to the fourth civil degree to the official of the agency authorized to process and/or approve proposed MOA, and release funds

Document showing that NGO/PO have equity equivalent to 20% of the total project cost, which shall be in the form of labor, land for the project site, facilities, equipment and the like, to be used in the project

Certification from the Accountant that the previous cash advance granted to the NGO/PO has been liquidated, liquidation documents are post-audited and properly taken up in the books

Memorandum of Agreement (MOA) incorporating therein the following terms and provisions:

o Project name, intended beneficiaries, benefits to be delivered, project cost estimates, brief description of project and its site/location.

o Systems and procedures to implement the project such as, but not limited to, procurement of goods and services by the NGO/PO and their distribution which should be documented and coordinated with the governmental organization’s (GO) authorized officials and the respective barangays.

o Time schedules for the releases of funds, periodic inspection/evaluation, reporting, monitoring requirements, date of commencement and date of completion. Releases of funds after the initial fund transfer must be output-based, that is, subsequent fund releases must be dependent on 100% delivery of physical status of the project corresponding to the previous funds received by the NGO/PO.

o Submission of the required periodic financial and physical status reports. No subsequent fund transfer must be granted unless previous fund transfers have been liquidated and required physical status report has been submitted.

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o Specific period to liquidate the funds granted to NGO/PO with the GO.o In case of construction projects like school buildings, housing, and other

similar structures, and acquisition of assets like vehicles and equipment, a stipulation of turnover of ownership of the infrastructure or fixed asset. In the procurement of any type of asset out of government funds, the NGO/PO shall conduct simple bidding or canvass to ensure the best terms and quality of purchase.

o In case the asset shall be owned by a specific beneficiary, a stipulation that a Deed of Donation shall be executed by the GO after the completion of the project.

o Monitoring and inspection of project implementation and verification of financial records and reports of the NGO/PO by the GO.

o Visitorial audit by the officials and personnel of the Commission on Audit (COA) authorized to perform the audit under an approved office order.

o Institution of legal action by the GO against the defaulting NGO/PO which fails to complete a project covered by the MOA, or for a material violation of the provisions of the MOA or of this Circular, and in any of these cases, its subsequent disqualification from applying for another project in any other GO.

o In case of the dissolution of the recipient NGO/PO, voluntary or involuntary, the lien of the granting GO on its assets, in accordance with existing laws, to the extent of the unexpended or unutilized portion of the fund.

o Maintenance by the NGO/PO of a separate savings/current account for each fund received from the GO.

o The return by the NGO/PO to the granting GO of any amount not utilized to complete the project, including interest, if any.

2.2 Implementation and Liquidation of Funds Released

General Guidelines

No portion of the funds granted to the NGO/PO shall be used for the following (Section 6 of COA Circular No. 2007-001 dated October 25, 2007):

o Money market placement, time deposit or other forms of investmento Cash advance of any official of the NGO/PO unless related to the

implementation of the projecto Payment of salaries, honoraria or any form of allowances of the personnel of

the GO or the NGO/PO who are not connected with the projecto Purchase of supplies, materials, equipment and motor vehicles of the GOo Acquisition of assets of the NGO/PO, unless necessary for the prosecution of

the project and specifically stipulated in the MOA


Final fund utilization report, indicating the summary of expenses and the status report of accomplishments, certified by the accountant, approved by the President/Chairman of the NGO/PO and verified by the internal auditor or equivalent official of the GO

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Pictures of implemented projects Inspection report and certificate of project completion issued by the GO

authorized representative List of beneficiaries with their signatures signifying their acceptance/

acknowledgement of the project/funds/goods/services received Proof of verification by the GO official of the validity of the documents

submitted by the NGO/PO Official Receipt - from the granting GO acknowledging return by the

NGO/PO of any unutilized/excess amount of cash advance, including interest, if any

List of equipment/vehicles procured by the NGO/PO out of the project funds indicating its brief description, date acquired, acquisition cost and final disposition

Warranty for procurement of equipment and projects In case of dissolution of the recipient NGO/PO, in addition to the OR

acknowledging return of unutilized amount, copy of the vouchers paid by the NGO/PO

Liquidation Report

2.3 Staggered Release of Funds to NGO/PO


Duly approved Schedule on the Release of funds to the NGO/PO Interim Fund Utilization Report of the previous release certified by the

NGO/PO’s Accountant, approved by its President/Chairman and verified by the internal auditor or equivalent official of the GO showing a summary of expenses and a status report of accomplishment evidenced by pictures.

List of beneficiaries of previous releases with their signatories signifying their acceptance/acknowledgement of the project funds/goods/services

3.0 Transfer of Funds

3.1 Transfer of Funds to Implementing Agencies

General Guidelines

Fund transfers should be properly taken up in the books of both agencies, used only for the purpose intended, and utilization thereof properly accounted and reported (COA Circular No. 94-013 dated December 13, 1994).

3.1.1 Transfer

Source Agency:

Copy of the OR issued by the implementing agency to the source agency acknowledging receipt of funds transferred

Copy of MOA/Trust Agreement Copy of Approved Program of Work (for infrastructure project) Approved Project Expenditures or Estimated Expenses indicating

the project objective and expected output (for other projects)

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Board/Sanggunian Resolution ratifying the MOA Certification by the Accountant that funds previously transferred

to the IA has been liquidated, post audited and accounted for in the books

3.1.2 Implementation and Liquidation

Implementing Agency (IA):

Necessary supporting documents depending on the nature of transactions

Copy of MOA/Trust Agreement Copy of OR upon receipt of funds transferred Copy of OR issued by the Source Agency evidencing refund of

unexpended/unutilized balance of fund transfer3.1.3 Liquidation

Source Agency:

Report of Checks Issued and Report of Disbursement certified correct by the Accountant and approved by the Head of the implementing agency (IA)

Copy of the JEV duly audited by the Auditor of the IA Copy of OR issued for the refund of unexpended/unutilized balance

of fund transferred

4.0 Salary

The personnel benefits costs of government officials and employees shall be charged against the funds from which their salaries are paid. All authorized supplemental or additional compensation, fringe benefits and other personal services costs of officials and employees whose salaries are drawn from special accounts or special funds shall similarly be charged against the corresponding fund from which their basic salaries are drawn. In no case shall such personnel benefits costs be charged against the General Fund of the National Government.

Personnel benefits costs shall include salary increases, step increment, incentive and service fees, commutation of vacation and sick leaves, retirement and life insurance premiums, compensation insurance premiums, health insurance premiums, HDMF contributions, hospitalization and medical benefits, scholarship and educational benefits, training and seminar expenses, all kinds of allowances, whether commutable or reimbursable, in cash or in kind, and other personnel benefits and privileges authorized by law, including the payment of retirement gratuities, separation pay and terminal leave benefits.

If the personnel benefits costs of government officials and employees, in whatever form, are partly sourced from the General Fund and partly from other sources, then in determining the fund source for payment of retirement gratuity and terminal leave benefits, only the portion attributed to personnel benefits cost charged against the General Fund shall be sourced from such. In no case shall personnel benefits costs charged against another source be charged against the General Fund. (Section 41 of CY 2010 GAA or pertinent provisions of the GAA for the year)

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GOCCs and GFIs which are exempt from, or are legally enjoying special compensation and other benefits superior to those provided under RA 6758, as amended, shall be governed by their special compensation loans. Accordingly, they shall not be entitled to the compensation and other benefits provided under or granted by virtue of RA No. 6758, as amended (President’s Veto Message, February 8, 2010, page 1236, RA No. 9970)

4.1 First Salary


Certified true copy of duly approved Appointment Assignment Order Certified true copy of Oath of Office Certificate of Assumption Statement of Assets, Liabilities and Net Worth Approved Daily Time Record (DTR) BIR withholding certificates (Forms 1902 and 2305) Payroll information on New Employee (PINE) (for Agencies with

computerized payroll systems) Authority from the claimant and identification documents, if claimed by

person other than the payee

Additional Requirements, if transferee

Clearance from money, property and legal accountabilities from the previous office

Certified true copy of pre-audited disbursement voucher of last salary from previous agency and/or Certification by the Chief Accountant of last salary received from previous office duly verified by the assigned auditor thereat

BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) Certificate of Available Leave Credits Service Record

4.2 Salary (if deleted from the payroll)


Approved DTR Approved Application for Leave Notice of Assumption

4.3 Salary of Casual / Contractual Personnel

General Guidelines

When authorized to, and within limits of their respective appropriations, agencies may hire casual and contractual personnel as part of the organization. Casual personnel are hired to perform essential and necessary services where there are not enough regular staff to meet the demands of the service while contractual personnel are hired to undertake a specific work or job for a limited period not to exceed one year. An appointment issued in accordance with pertinent laws and rules shall take effect immediately upon its issuance by the appointing authority and assumption of duties of the position by the appointee.

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An appointment shall be submitted to the CSC within thirty (30) calendar days from the date of issuance, which shall be the date indicated below the signature of the appointing authority. Otherwise, it shall be made effective thirty (30) days prior to date of submission to CSC. In case of appointments issued by accredited agencies, the Report of Personnel Actions (ROPA) together with photocopies of appointments issued during the month shall be submitted within 15 days of the succeeding month. Appointments not submitted within the prescribed period shall be made effective 30 days prior to date of submission (CSC – Revised Omnibus Rules on Appointments and other Personnel Actions).

For LGUs, the budget limitations for Personal Services provided under Section 325(a) of the Local Government Code (RA 7160) of 45%, in case of first to third class provinces, cities and municipalities, and 55%, in case of fourth class or lower, of the total income from regular sources realized in the next preceding fiscal year shall be strictly observed.


For accredited agencies (for first claim)

o Certified copy of the pertinent contract/ appointment/job ordero Copy of the ROPA of the pertinent contract/appointment marked received

by the CSC

For other agencies (for first claim)

o Certified copy of the pertinent contract/appointment/job order marked received by the Civil Service Commission

Certification by the LCE/Personnel Officer that the activities/services cannot be provided by regular or permanent personnel of the agency (for first claim)

Accomplishment Report DTR

4.4 Salary Differentials due to Promotion and/or Step Increment


Certified true copy of approved appointment in case of promotion or Notice of Salary Adjustment in case of step increment/salary increase

Certificate of assumption Approved DTR or certification that the employee has not incurred leave

without pay

4.5 Last Salary


Clearance from money, property and legal accountabilities Duly approved DTR

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4.6 Salary due to heirs of deceased employee


Same requirements as those for last salary Additional requirements:

o Death Certificate authenticated by NSOo Marriage Contract authenticated by NSOo Birth Certificate of surviving legal heirs authenticated by NSOo Designation of next-of-kino Waiver of right of children 18 years old and above

4.7 Maternity Leave

General Guidelines

Female permanent and regular employees in the government service who have rendered an aggregate of two (2) or more years of service shall, in addition to the vacation and sick leave granted them, be entitled to maternity leave of sixty (60) calendar days with full pay. Those who have rendered one (1) year or more but less than two (2) years of service shall be entitled to 60 days maternity leave with payment in proportion to their length of service, while those who have served for less than one (1) year shall be entitled to 60 days maternity leave with half pay (Section 11 of the Omnibus Rules on Leave, Rule XVI of the Omnibus Rules Implementing Book V of EO 292).

When a female employee wants to report back to duty before the expiration of her maternity leave, she may be allowed to do so provided that she presents a medical certificate that she is physically fit to assume the duties of her position (Section 14 of the Omnibus Rules on Leave, Rule XVI of the Omnibus Rules Implementing Book V of EO 292).

In the case of those in the teaching profession, maternity benefits can be availed of even if the period of delivery occurs during the long vacation, in which case, both the maternity benefits and the proportional vacation pay shall be received by the teacher concerned. (Section 14 of CSC MC No. 14, s. 1999)

The commuted money value of the unexpired portion of the leave need not be refunded and that when the employee returns to work before the expiration of her maternity leave, she may receive both the benefits granted under the maternity leave law and the salary for actual services rendered effective the day she reports for work. (CSC Resolution No. 02-1420)


Certified true copy of approved application for leave Certified true copy of Maternity leave clearance Medical certificate for maternity leave Marriage Certificate (first claim)

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Additional Requirements for Unused Maternity Leave (upon assumption before the expiration of the 60-day maternity leave)

Medical certificate that the employee is physically fit to work Certificate of assumption Duly approved DTR

5.0 Allowance, Honoraria and Other Forms of Compensation

General Guidelines

No government funds shall be utilized for payment of honoraria and other allowances to any government official or employee except those specifically authorized by law (Section 17 (e) of CY 2010 GAA or pertinent provisions of the GAA for the year).

5.1 Personnel Economic Relief Allowance (PERA)

General Guidelines

The PERA shall be paid only when basic pay (salary, wages or base pay) is also paid. It shall be paid to personnel in NGAs, GOCCs, GFIs and LGUs (as determined by the Sanggunian) provided they render full-time service for eight (8) hours per working day, twenty-two (22) working days per month, inclusive of leaves of absence with pay. The guidelines on the grant of PERA are provided under DBM Budget Circular No. 2009-003 dated August 18, 2009. Under Section 54 of CY 2010 GAA, the PERA of P500 and additional compensation of P1,500 per month shall be collectively referred to as PERA.


Same requirements as those for payment of salaries

5.2 Representation and Transportation Allowance (RATA)

General Guidelines

The officials/employees who are entitled to receive RATA are defined under Section 47 of CY 2010 GAA or pertinent sections of the GAA for the year. Transportation allowances shall not be granted to officials who are assigned or who are presently using government motor transportation. The entitlement of government officials, whose offices were issued government vehicle, to transportation allowance was clarified under COA Circular No. 2000-005 dated October 4, 2000.

In the local government sector, the grant of RATA under the revised rates is subject to the 45% / 55% limitation on personal services expenditures mandated under Section 325(a) of the 1991 Local Government Code (DBM Local Budget Circular No. 2009-91 dated March 27, 2009).

The guidelines on the grant of RATA are prescribed under DBM National Compensation Circular No. 67 dated January 1, 1992. Officials and employees duly designated by competent authority as Officer-In-Charge of positions entitled

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to commutable RATA for one full calendar month or more may be authorized to collect the RATA authorized for the said positions, provided it is so specified in the Order designating them as Officer-in-Charge except for the instances defined under Section 3.5 of DBM NCC No. 67 dated January, 1992.

An official who is on leave (VL/SL/ML) of absence with or without pay for one full calendar month or more is not entitled to collect RATA. However, official and employees who are on authorized attendance at a training course/scholarship grant/seminar or any other similar activity, which is tantamount to the performance of their regular duties and responsibilities, may be authorized to continue to collect RATA on a reimbursable basis subject to the availability of funds. (Sec. 3.3.2 and 3.4 of DBM National Compensation Circular No. 67 dated January 1, 1992).

For positions without incumbents, a designation may be made only for a maximum of one (1) year. (CSC Memorandum Circular No. 06, s. 2005)


Copy of Office Order/Appointment (1st payment) Certificate of Assumption (1st payment) Certification that the official/employee did not use government vehicle Certification that no government vehicle is assigned to the official/employee Certificate or evidence of service rendered

5.3 Clothing/Uniform Allowance

General Guidelines

Government personnel who are expected to render at least six (6) consecutive months of service in a particular year including leaves of absence with pay shall be entitled to clothing allowance. Newly hired government personnel shall be entitled to the clothing allowance after they have rendered six (6) consecutive months of service or in the next grant thereof whichever comes later. The clothing allowance of government personnel who are on detail with other government agencies shall be borne by the mother agency.

Government personnel who transferred to other agencies during the first six (6) months of a particular year and were not granted clothing allowance, whether in cash or in kind, by their former agencies, shall be granted clothing allowance by their new agencies. If they transferred to other agencies within the last six months of a particular year, they shall no longer be granted clothing allowance by their new agencies as by then they are deemed to have been granted clothing allowance by their former agencies (DBM Budget Circular No. 2003-8 dated December 8, 2003).

Under Section 51 of CY 2010 GAA, the appropriations provided for each agency may be used for uniform or clothing allowance of employees at not more than P4, 000 each per annum. In case of deficiency or in the absence of appropriation for the purpose, the requirements shall be charged against available savings of the agency.

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The rules and regulations on the grant of uniform/clothing allowance to all government personnel are prescribed under DBM Budget Circular No. 2003-8 dated December 8, 2003 with amendments under DBM Budget Circular No. 2003-8A dated July 2, 2004.

Documentary Requirements for newly hired personnel

Payroll of Personnel entitled to clothing allowance together with certified true copy of approved appointment

Certificate of Assumption Certificate of non-payment from previous agency, for transferees

5.4 Subsistence, Laundry and Quarters Allowances

General Guidelines

Subsistence and Laundry Allowance

Public health workers (PHWs) and selected other sectors are allowed under existing laws and regulations to receive laundry and subsistence allowances.

Quarters Allowance

Officials and employees who, by virtue of their positions, are entitled to Quarters Privilege as may be authorized by law, shall be provided free quarters within their office premises. Quarters allowance shall only be paid when the agency has no quarters available. (Section 53 of CY 2010 GAA or pertinent provisions of GAA for the year).


Payroll of personnel entitled to claim subsistence, laundry and quarters allowance

Duly approved DTR Authority to collect

5.5 Productivity Incentive Allowance (PIB)

General Guidelines

The PIB is given to government personnel in recognition of the government employees’ productivity and performance. The guidelines on the grant of PIB are provided under DBM National Compensation Circular (NCC) No. 73 dated December 27, 1994 as supplemented by NCC No. 73A dated March 1, 1995, DBM Circular Letter No. 3-96, DBM Circular Letter No. 2001-06 and DBM Circular Letter No. 2002-03 dated January 2, 2002.

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Certification that the performance ratings for the two (2) semesters given to the personnel of the concerned division/office is at least satisfactory

List of personnel who were suspended either preventively or as a penalty as a result of an administrative charge within the year for which PIB is paid, regardless of the duration (except if the penalty meted out is only a reprimand)

List of personnel dismissed within the year List of personnel on AWOL

5.6 Special Counsel Allowance

General Guidelines

Lawyer personnel, including those designated to assume the duties of a legal officer and those in the legal staff of departments, bureaus, offices or agencies of the national government deputized by the Office of the Solicitor General to appear in court as special counsel in collaboration with the Solicitor General or prosecutors concerned are hereby authorized to receive an allowance of P1,000 for each appearance or attendance of hearing except pursuant to a motion for extension, chargeable to savings in the appropriations of their respective offices, but not exceeding P4,000 per month. The grant of the Special Counsel Allowance shall be subject to the guidelines, rules and regulations issued by the DBM (Section 52 of CY 2010 GAA).


Office Order/Designation Certificate of Appearance issued by the Office of the Clerk of Court Certification that the cases to be attended by the lawyer personnel are directly

related to the nature/function of the particular office represented

5.7 Honoraria

General Guidelines

Government personnel performing activities or discharging duties in addition to, or over and above their regular functions may be granted honoraria.

5.7.1 Government Personnel involved in Government Procurement

The guidelines in the grant of honoraria to government personnel involved in government procurement are prescribed under DBM Budget Circular No. 2004-5A as amended by DBM Budget Circular No. 2007-3 dated November 29, 2007. The honoraria shall be sourced from the following:

Collections from successfully completed procurement projects limited however, to activities prior to awarding of contracts to winning bidders:

- Proceeds from sale of bid documents- Fees from contractor/supplier registry

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- Fess charged for copies of minutes of bid openings, BAC resolutions and other BAC documents

- Protest fees- Proceeds from bid security forfeiture

Savings realized from the current year’s specific budget of the agency under the GAA

In the case of GOCCs, savings from the DBM-approved corporate operating budgets

In the case of LGUs, savings from the local budgets approved by their respective Sanggunian subject to the pertinent provisions of the Local Government Code of 1991 (RA 7160).

Under DBM Circular No. 2004-5A, the payment of honoraria shall be limited to:

o Successfully completed procurement project. A procurement project shall be considered successfully completed once the contract has been awarded to the winning bidder.

o Procurement that involves public bidding. Public bidding activities are present only in:

Competitive bidding Limited source bidding Negotiated procurement, only when resorted to after there has

been failure of bidding for the second time

The honoraria per completed procurement project shall not exceed P3,000 for BAC Chair, P2,500 for BAC members and P2,000 for each TWG Chair and Members. The average amount of honoraria per month over one year shall not exceed 25% of the basic monthly salary.


Office Order creating and designating the BAC composition and authorizing the members to collect honoraria

Minutes of BAC Meeting Notice of award to the winning bidder of procurement activity being

claimed Certification that the procurement involves competitive bidding Attendance Sheet listing names of attendees to the BAC meeting

5.7.2 Teaching Personnel (DepEd, TESDA, SUCs and other educational institutions)

General Guidelines

Payment of honoraria to teaching personnel engaged in actual classroom teaching whose teaching load is outside of the regular office hours or in excess of the required load is prescribed under Section 3 of Administrative Order No. 103 dated August 31, 2004.

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Certificate from the Registrar / Dean of College that the load is in excess of the regular load or outside the regular office hours

Schedule of classes indicating the designated teaching personnel Certificate of actual conduct of classes and/or Accomplishment

Report DTR/Service Report

5.7.3 Governing Boards of Collegial Bodies

General Guidelines

The guidelines in the grant of honoraria to the governing boards of collegial bodies are prescribed under DBM National Budget Circular No. 2007-510 dated May 8, 2007.


Appointment / designation as member of the Board Certification that the claimant is not an appointee to a regular position

in the governing board of the collegial body who receives salaries, regular allowances and other benefits

Minutes of meeting and Attendance Sheet as certified by the Board Secretary

5.7.4 Lecturer/Coordinator

General Guidelines

Payment of honoraria to lecturers, resource persons, coordinators and facilitators are subject to the guidelines provided under DBM Budget Circular No. 2007-1 dated April 23, 2007.


Office Order Coordinator’s report on lecturer’s schedule Course Syllabus/Program of Lectures Duly approved DTR in case of claims by the coordinator and

facilitators

5.7.5 Special Projects

General Guidelines

Payments of honoraria to officials and employees assigned to special projects are subject to the guidelines prescribed under DBM Budget Circular No. 2007-2 dated October 1, 2007. Honoraria received from all special projects shall not exceed twenty-five percent (25%) of the annual basic salary.


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Performance evaluation plan formulated by project management used as basis for rating the performance of members

Office Order designating members of the special project Terms of Reference Certificate of completion of project deliverables Special Project Plan Authority to collect honorarium Certificate of acceptance by the agency head of the deliverables per

project component

5.7.6 Science and Technological Activities

General Guidelines

Those who are involved in science and technological activities who render services beyond their regular workload are entitled to honoraria (Section 49 (d) of CY 2010 GAA or pertinent provisions of the GAA for the year)


Office Order Plan/Program of Activities Accomplishment Report / Certificate of completion of programmed

activities Authority to collect honoraria

5.8 Hazard Duty Pay

General Guidelines

Departments, bureaus, offices and agencies which are not specifically authorized by law to grant Hazard Duty Pay are hereby allowed to use savings from their appropriations for payment thereof to officials and employees who are actually assigned to, and performing their duties in strife-torn or embattled areas as may be determined and certified by the Secretary of National Defense. Hazard duty pay shall only be granted for the duration of such assignment. (Section 55 of CY 2010 GAA or pertinent provisions of the GAA for the year)

The grant of hazard duty pay shall be subject to the rules and regulations prescribed under DBM Budget Circular No. 2005-4 dated July 13, 2005 and other rules and regulations that may be issued by the DBM.

The implementation of RA No. 7305 (Magna Carta for Public Health Workers) and RA No. 8439 (Magna Carta for Scientists, Engineers, Researchers and Other Science and Technology personnel in the government) shall be within the appropriations authorized in the Act for the purpose. Savings may be used to augment current year’s deficiencies in the payment of benefits subject to Section 60 of the Act and the implementing rules and regulations issued by the DBM in coordination with the agencies concerned. (Section 57 of CY 2010 GAA or pertinent provisions of the GAA for the year)


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Certification by the Secretary of the DOH / DND / Director of the Philippine Institute of Volcanology and Seismology that the place of assignment/travel is a strife-torn/embattled area or with volcanic activity and/or eruption

Duly accomplished time record of employees or travel report; Copy of special order from the agency/department head covering the

assignment to hazardous/difficult areas. DTR/Service Report

5.9 Longevity Pay

General Guidelines

Longevity Pay or Length of Service Incentive shall be given to an employee who has rendered at least three years of continuous satisfactory service to a particular position and which shall consist of step increments in accordance with the provisions of Joint CSC DBM Circular No. 1 s.1990.

For purposes of computing the length of service for the grant of step increment, approved vacation leave without pay for an aggregate of 15 days shall not interrupt the continuity of the three-year service requirement for the grant of step increment. However, if the total number of authorized vacation leave without pay included within the three-year period exceeds 15 days, the grant of one-step increment will only be delayed for the same number of days that an official or employee was absent without pay (Section 60 of the CSC Omnibus Rules on Leave).


Masterlist of Personnel entitled to the Longevity Pay Service Record Certification issued by the Personnel Officer that the claimant has not incurred

more than 15 days of vacation leave without pay

5.10Overtime Pay

General Guidelines

Overtime work should be avoided by adequate planning of work activities. It should not be resorted to in the performance of regular/routine work and activities except in cases when unforeseen events and emergency situations will result in any of the following:

Financial loss to the government or its instrumentalities Embarrassment to the government due its inability to meet its

commitments Negate the purpose for which the work or activity was conceived

As a general rule, the total overtime pay of the employee for a given calendar year shall not exceed fifty percent (50%) of his annual basic salary.

The updated guidelines and procedures on the rendition of overtime services are prescribed under DBM Budget Circular No 10 dated March 29, 1996.

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Overtime authority stating the necessity and urgency of the work to be done, and the duration of overtime work

Overtime work program Quantified Overtime accomplishment duly signed by the employee and

supervisor Certificate of service or duly approved DTR

5.11Year-End Bonus (YEB) and Cash Gift (CG)

General Guidelines

The guidelines on the grant of YEB and CG are provided under DBM Budget Circular No. 2005-6 dated October 28, 2005 which is applicable for FY 2005 and years thereafter, with amendment under DBM Budget Circular No. 2008-4 dated July 10, 2008 and additional guidelines under DBM Budget Circulars No. 2009-4 dated September 29, 2009 and 2009-4A dated October 6, 2009 for the YEB and CG for FY 2009.

The YEB and CG are granted to:

o All government personnel, whether appointive or elective, under permanent, temporary or casual status, and those issued contractual appointments who are under the following instances from January 1 to October 31 of each year:

Those who have rendered at least a total or an aggregate of 4 months of service including leaves of absence with pay;

Those who are on approved leave of absence without pay but have rendered at least a total or an aggregate of 4 months of service provided they are not yet dropped from the rolls; and

Those who have rendered less than 4 months of service as of October of a particular year shall be entitled solely to the P5,000 cash gift pro-rated as follows:

Length of Service Percentage3 months but less than 4 months 40%2 months but less than 3 months 30%1 month but less than 2 months 20%Less than 1 month 10%

The aggregate service requirement of government employees for purposes of the grant of the YEB shall include such services before the termination of their employment during the year under the following modes: resignation, separation not for cause, termination of contract/appointment, or termination of term in office, and such services from the date they were rehired/reappointed during the year to the same or another position in the same or another agency.

o All “punong barangay,” “sangguniang barangay” members, “barangay” secretaries and “barangay” treasurers,

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All government personnel under the following instances shall not be entitled to the one-half (1/2) YEB or the full YEB:

Those on absence without leave (AWOL); Consultants, experts, student laborers, apprentices, laborers of contracted

projects (“pakyaw”), mail contractors, those paid on piecework bases and others similarly situated;

Those who were formally charged administrative cases as well as criminal cases which relate to acts or omissions in connection with their official duties and functions and found guilty and/or meted penalties.

Government personnel who have rendered more than 4 months of service in a given year and are to retire or are to be separated without cause before October 31 of the same year may receive proportionate shares of the remaining balances of their YEBs and CGs based on the following scheme, to be paid within the month of retirement/separation. These are in addition to ½ of their YEBs and CGs received earlier in May (DBM Budget Circular No. 2008-4 dated July 10, 2008).

Month of Retirement/ Separation from the Service

Percentage of ½ of the YEB and CG

May 15%June 30%July 45%August 60%September 75%October 90%

Government personnel who have rendered less than 4 months of service as of October 31 of a particular year shall be entitled solely to the cash gift pro-rated as follows:

Length of ServicePercentage of P5,000

Corresponding Amount

3 months but less than 4 months 40% P2,000.002 months but less than 3 months 30% 1,500.001 month but less than 2 months 20% 1,000.00Less than one month 10% 500.00

Documentary Requirement (for 1 st and last payments)

For retirees – same requirements as last salary For new employees

5.12Retirement Benefits

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General Guidelines

Appropriations authorized in the GAA to cover retirement gratuity benefit claims shall be released directly to the office and agencies concerned based on the provisions of applicable retirement laws, rules and regulations. The computation of retirement gratuity and terminal leave benefits shall be based on the basic salary of retiring government personnel (Section 56 of CY 2010 GAA or pertinent provisions of the GAA for the year).

The retirement benefit due to government employees under RA 8291 (1997 GSIS Act) follow:

The lump sum equivalent to sixty (60) months of the basic monthly pension (BMP) payable at the time of retirement plus an old-age pension benefit equal to the basic monthly pension payable for life, starting upon the expiration of the five-years covered by the lump sum; or

A cash payment equivalent to eighteen (18) months of his/her basic monthly pension plus monthly pension for life payable immediately.

Conditions for Entitlement to Retirement Benefit:

He/she has rendered at least fifteen (15) years of service He/she is at least sixty (60) years of age at the time of retirement; and He/she is not receiving a monthly pension benefit for permanent total

disability

Other Features:

Retirement shall be compulsory at age 65 Employees who entered the service before June 1, 1977 and who have not

received any separation or retirement benefit have the option to retire under RAs 1616, 660 or 8291

Retirement benefits shall be paid on the last day of service in government if all requirements are submitted to the GSIS at least thirty (30) days prior to the effective date of retirement

Documentary Requirements under RA 1616

Updated Service record indicating the number of days on leave without pay and/or certification issued by the Human Resource Office that the retiree did not incur any leave of absence without pay

Certificate from the Office of Ombudsman indicating whether or not the retiree has a pending criminal or administrative case*

Retirement application Office clearance from money/property accountability & administrative/

criminal liability Statement of assets and liabilities Retirement Gratuity Computation Affidavit of Undertaking for authority to deduct accountabilities Affidavit of applicant that there is no pending criminal investigation or

prosecution against him/her (anti-graft RA 3019)

* Memorandum Circular No. 10 s. 1995 of the Office of the Ombudsman states that: “…a person retiring from the government service whether optional or compulsory, needs only to present a

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certification from this Office whether or not he has a pending criminal or administrative case with it. In the event the certification presented states that the prospective retiree has a pending case, the responsibility of determining whether to release his retirement benefits, as well as the imposition of necessary safeguards to ensure restitution thereof in the event the retiree is found guilty, rests upon and shall be left at the sound discretion of the head of the department, office or agency concerned.”

Additional requirements in case of resignation

Employee’s letter of resignation duly accepted of Agency Head

Additional requirements in case of death of claimant

Death certificate authenticated by NSO Marriage contract authenticated by NSO Birth certificates of all surviving legal heirs authenticated by NSO Designation of next-of-kin Waiver of rights of children 18 years old and above Affidavit of two (2) disinterested parties that the deceased is survived by

legitimate and illegitimate children (if any), natural, adopted or children of prior marriage.

5.13Terminal Leave Benefits

General Guidelines

The guidelines on terminal leave are provided under Rule XVI of the Omnibus Rules Implementing Book V of EO 292, as amended by CSC MC Nos. 41 s. 1998, 6 and 14 s. 1999. The computation and funding of terminal leave benefits are provided under DBM Budget Circular 2002-1 dated January 14, 2002. Terminal leave is applied for by an official or an employee who intends to sever his connection with his employer. Accordingly, the filing of application for terminal leave requires as a condition precedent, the employee’s resignation, retirement or separation from the service. It must be shown first that public employment ceased by any of the said modes of severances.

Any official or employee of the government who retires, voluntarily resigns, or is separated from the service and who is not otherwise covered by special law, shall be entitled to the commutation of his leave credits exclusive of Saturdays, Sundays and Holidays without limitation and regardless of the period when the credits were earned.

Request for payment of terminal leave benefits must be brought within ten (10) years from the time the right of action accrues upon an obligation created by law. Payment of terminal leave for purposes of retirement or voluntary resignation shall be based on the highest monthly salary received at any time during his period of employment in the government service and not on his latest salary, unless the latter is the highest received by the retiree.


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Clearance from money, property and legal accountability from the Central Office and from Regional Office of last assignment

Certified photocopy of employees leave card as at last date of service duly audited by the Personnel Division and COA

Approved leave application Complete service record Statement of assets and liabilities Certified photocopy of appointment/Notice of Salary Adjustment (NOSA)

showing the highest salary received if the salary under the last appointment is not the highest.

Computation of terminal leave benefits duly signed/certified by the accountant Applicant’s authorization (in affidavit form) to deduct all financial obligations

with the employer/agency/LGU Affidavit of applicant that there is no pending criminal investigation or

prosecution against him/her (RA 3019) In case of resignation, employee’s letter of resignation duly acceptance by the

Head of the Agency

Additional requirements in case of death of claimant

Death certificate authenticated by NSO Marriage contract authenticated by NSO Birth certificates of all surviving legal heirs authenticated by NSO Designation of next-of-kin Waiver of rights of to children 18 years old and above

5.14Monetization

General Guidelines

Officials and employees in the career and non-career service, whether permanent, temporary, casual or coterminous, who have accumulated fifteen (15) days of vacation leave credits shall be allowed to monetize a minimum of ten (10) days: Provided that at least five (5) days is retained after monetization and provided further that a maximum of thirty (30) days may be monetized in a given year. (Sec. 22 of Omnibus Rules on Leave, Rule XVI of the Omnibus Rules Implementing Book V of Executive Order No. 292)

Under Sec. 23 of the Omnibus Rules on Leave, monetization of fifty percent (50%) or more of accumulated leave credits may be allowed for valid and justifiable reasons, such as:

Health, medical and hospital needs of the employee and the immediate members of his family;

Financial aid and assistance brought about by force majeure events such as calamities, typhoons, fire, earthquake and accidents that affect the life, limb and property of the employee and his/her immediate family;

Educational needs of the employee and the immediate members of his/her family;

Payment of mortgages and loans which were entered into for the benefit or which inured to the benefit of the employee and his/her immediate family;

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In cases of extreme financial needs of the employee or his/her immediate family where the present sources of income are not enough to fulfill basic needs such as food, shelter and clothing;

Other analogous cases as may be determined by the Civil Service Commission


Approved leave application (10 days) with leave credit balance certified by the Human Resource Office

Approved request from the Head of Agency for leave covering more than 10 days

For monetization of 50% or more

o Clinical abstract / medical procedures to be undertaken in case of health, medical and hospital needs

o Barangay Certification in case of need for financial assistance brought about by calamities, typhoons, fire, etc.

5.15Loyalty Cash Award/Incentive

General Guidelines

The guidelines on the grant of Loyalty Cash Award/Incentive are provided under COA Resolution No. 2002-010 dated November 29, 2002 and of Loyalty Award under CSC Memorandum Circular No. 6, s. 2002 dated March 1, 2002.

A loyalty award is granted to all officials and employees, in the national and local governments, including those in the state colleges and universities (SUCs) and government-owned and controlled corporations (GOCCs) with original charter, who rendered ten (10) years of continuous and satisfactory service in the government. The agency where the employee or official completed ten (10) years of continuous and satisfactory service shall grant the award.

An official or employee who incurred an aggregate of not more than 50 days authorized vacation leave without pay within the 10-year period shall be considered as having rendered continuous service for purposes of granting the loyalty award. In the same way, an official or employee who incurred an aggregate of not more than twenty-five (25) days authorized vacation leave without pay within the 5-year period may qualify for the 5-year milestone loyalty award.

Effective January 1, 2002, continuous and satisfactory services in government for purposes of granting loyalty award shall include services in one or more government agencies without any gap. Services rendered in other government agencies prior to January 1, 2002 shall not be considered for purposes of granting the loyalty award.


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Service Record Certificate of non-payment (for transferee) Certification from the HR that the claimant has not incurred more than fifty

(50) days authorized vacation leave without pay within the 10 year period or aggregate of more than twenty-five (25) days authorized vacation leave without pay within the 5 year period, as the case may be.

5.16Collective Negotiation Agreement (CNA) Incentive

General Guidelines

The guidelines on the grant of CNA incentives including the allocation of savings generated from cost-cutting measures as a result of the joint efforts of labor and management and the conditions for payment thereof are prescribed under DBM Budget Circular No. 2006-1 dated February 1, 2006 as amended by DBM Budget Circular No. 2009-2 dated March 20, 2009.

Savings shall refer to savings in Maintenance and Other Operating Expenses (MOOE) as prescribed under Budget Circular No. 2009-2 dated March 20, 2009 clarifying the funding source of the CNA Incentive authorized under AO No. 135 dated December 27, 2005 and amending pertinent provisions of DBM Budget Circular No. 2006-1 issued on February 1, 2006.


Resolution signed by both parties incorporating the guidelines/ criteria for granting CNA incentive.

Comparative statement of DBM approved level of operating expenses and actual operating expenses

Proof of remittance to the National Treasury of its 50% dividends share or percentage approved by the Department of Finance on the annual earnings for income-generating GOCCs/GFIs

Copy of CNA Certificate issued by the Head of the Agency on the total amount of

unencumbered savings generated from cost-cutting measures identified in the CNA which resulted from the joint efforts of labor and management and systems / productivity / income improvement

Proof that the planned programs/activities/projects have been implemented and completed in accordance with targets for the year

6.0 Other Expenditures

General Guidelines

The amounts programmed, particularly for, but not limited to, petroleum, oil and lubricants as well as for water, illumination and power services, telephone and other communication services, rent, retirement gratuity and terminal leave requirements shall be disbursed solely for such items of expenditures. Any savings generated from these items after taking into consideration the agency’s full year requirements may be realigned only in the last quarter. Use of funds in violation of this section shall be void, and shall subject the erring officials and employees to disciplinary actions in accordance with Section 43,

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Chapter 5 and Section 80, Chapter 7, Book VI of EO No. 292, and to appropriate criminal action under existing penal laws. (Section 18 of CY 2010 GAA).

6.1 Water Illumination and Power Services


Statement of Account / Bill Invoice / Official Receipt or machine validated statement of account/bill

6.2 Telephone/Communication Services


Statement of Account Invoice/ Official Receipt Certification by Agency Heads or his authorized representatives that all

National Direct Dial (NDD), National Operator Assisted Calls and International Operator Assisted Calls are official calls.

7.0 Extraordinary and Miscellaneous Expenses

General Guidelines

The amount fixed under the GAA for National Government offices and officials shall be the ceiling in the disbursement of extraordinary and miscellaneous expenses. It shall cover extraordinary and miscellaneous expenses and other similar expenses, such as discretionary, business development expenses, representation expenses and the like. The audit guidelines on disbursement for these expenses in National Government Agencies are prescribed under COA Circular No. 89-300 dated March 21, 1989.

For GOCCs/GFIs, the amount authorized in their corporate charters shall be the ceiling in the disbursement of funds. Where no such authority is granted in the corporate charter and the authority to grant extraordinary and miscellaneous expenses is derived from the GAA, the amounts fixed thereunder shall be the ceiling in the disbursements. The guidelines for GOCCs/GFIs are prescribed under COA Circular No. 2006-001.

For the LGUs, the annual appropriation for discretionary purpose of the local chief executive shall not exceed 2% of the actual receipts derived from the basic real property tax in the next preceding calendar year as provided under Sec. 325(h) of the Local Government Code (RA 7160).

Appropriations for extraordinary and miscellaneous expenses may be used for the following purposes, among others:

o Meetings, seminars and conferenceso Official entertainmento Public relationso Educational, athletic and cultural activitieso Contributions to civic and charitable institutionso Membership in government associations

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o Membership in national professional organizations duly accredited by the Professional Regulatory Commission

o Membership in the Integrated Bar of the Philippineso Subscription to professional technical journals and informative

magazines and materials (include library books and materials)o Office equipment and supplieso Other similar expenses not supported by the regular budget allocation.

In case of deficiency, the requirements for the foregoing purposes shall be charged against savings of the agency. (Section 28 of CY 2010 GAA)


Invoices/receipts depending on the nature of expense for GOCCs/GFIs and LGUs Certification in case of national government agencies Other supporting documents as are necessary depending on the nature of expense

charged

8.0 Confidential and Intelligence Expenses

8.1 Grant of Cash Advance

General Guidelines

Confidential and intelligence funds provided for in the budgets of departments, bureaus, offices or agencies of the national government including amounts from savings authorized by special provisions to be used for intelligence and counter-intelligence activities shall be released only upon approval of the President. At least 80% of the Confidential and Intelligence Funds shall be used for field operations.

All departments, bureaus, offices or agencies shall submit to the Senate President, Speaker of the House of Representatives and Chairman of the COA, a quarterly report on the accomplishments in the use of Confidential and Intelligence Funds, copy furnished the Senate Committee on Finance and the House on Appropriation. (Section 22 of CY 2010 GAA or appropriate provision of the current GAA)

Subsequent cash advances shall be granted only after the issuance of credit advance from the Chairman or the submission of liquidation vouchers/reports for previous cash advance to the COA Chairman as provided under item 6 of COA Circular Nos. 2003-002 and 2003-003 both dated July 30, 2003.

The guidelines relative to the utilization of LGU funds for intelligence or confidential purposes are prescribed under DILG Memorandum Circular No. 99-65 dated April 23, 1999 with amendments under DILG Memorandum Circular No. 99-100 dated June 15, 1999. The Circular provides, among others, the following:

The use of funds for intelligence or confidential activities shall be limited to the following:

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o purchase of informationo payment of rewardso rental and other incidental expenses relative to the maintenance of

safehouseso purchase of supplies and ammunitions, provision of medical and food aid,

as well as, payment of incentives or traveling expenses relative to the conduct of intelligence or confidential operations

Funds for confidential and intelligence purposes may be sourced from the appropriations for peace and order or total annual appropriation. The total amount appropriated for intelligence and confidential undertakings shall not exceed 30% of the total annual amount allocated for Peace and Order or 3% of the total annual appropriations of the LGU for the year, whichever is lower.

Allocations exceeding the above limitation shall be subject to the prior approval of the Secretary of Interior and Local Government.

Basic Requirements for All Sectors

For newly-appointed or designated Disbursing Officer

Certified copy of the designation of the Special Disbursing Officer (SDO) Certified copies of the Fidelity Bond of the designated SDO Specimen signatures of officials authorized to sign cash advances and

liquidation reports (formerly liquidation vouchers), particularly:

Special Disbursing Officer Head of Agency Chief Accountant Budget Officer


8.1.1 Local Government Units

Copy of the budget approved by Sanggunian of the concerned LGU Copy of the minutes of the meeting evidencing the 2/3 votes of the

Peace and Order Council endorsing the release of the Intelligence/ Confidential Fund in case of allocations beyond the limitations

Local PNP certification re: peace and order situation in the area for the use of Confidential and Intelligence Fund

Allocations for intelligence and confidential funds Peace and Order program including fund allocation Approval from the President of the Philippines in the case of LGUs in

Metro Manila and by the Department of Local Government in case if LGUs outside Metro Manila

8.1.2 National Government Agencies

Approval of the President of the release of the Confidential and Intelligence Fund

Covering Special Allotment Release Order (SARO)

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Copy of the Obligation Request (OBR) for those charged against the General Fund or Budget Utilization Request (BUR) for those charged against Special Income Fund

8.1.3 Government Owned and Controlled Corporations

Approval from the President of the Philippines/COB reviewed by DBM, except for Bangko Sentral ng Pilipinas (BSP) which is especially authorized under the BSP Charter.

8.2 Liquidation of Cash Advance

General Guidelines

Under COA Circular Nos. 2003-002 and 2003-003 both dated July 30, 2003, all cash advances chargeable against the intelligence and/or confidential funds of the national government agencies, local government units and government-owned and controlled corporations shall be liquidated within one (1) month from the date the purpose of the cash advance was accomplished.

For projects continuing beyond one month, a monthly progress liquidation report shall be submitted. The first progress report shall be submitted one month after the commencement of the project. The liquidation report shall be submitted in a sealed envelope with a visible label “CONFIDENTIAL – For COA Chairman Only” directly to the Office of the Chairman, COA.

Basic Requirement for all Sectors

Liquidation Report Certified photocopy of the paid disbursement voucher of the cash advance

being liquidated Certification of the Agency Head concerned for the utilization of the

Intelligence and Confidential Expense Accomplishment Report/Activities undertaken for the attainment of the

program For procurement of goods, necessary supporting documents required under

RA 9184 and other pertinent laws, rules and regulations

9.0 Fund Transfers

From Trust Fund to the General Fund for unspent balance/excess amount Documentary Requirements

Report of Receipt, Disbursement and Fund Balance certified by LGU Accountant Contract, which may be a Memorandum of Agreement, Trust Agreement or

Memorandum of Understanding governing the utilization of funds and disposition of any balance thereof after completion of the purpose of the funds transferred

Letter of LGU to source agency to transfer the unexpended balance to the General Fund duly approved by the source agency, if the disposition thereof has not been provided in the MOA, Trust Agreement or Memorandum of Understanding

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10.0Procurement

General Guidelines

Procurement of any branch, agency, department, bureau, office or instrumentality of the government including government-owned and controlled corporations, government financial institutions, state universities and colleges, and local government units shall be governed by RA 9184 and its Revised Implementing Rules and Regulations (IRR), and other issuances of the General Procurement Policy Board (GPPB). Strict adherence to the procurement procedures, laws, rules and regulation is prescribed under Section 90 of CY 2010 GAA.

The Government Electronic Procurement System (G-EPS) shall be used as the primary source of information on government procurement of common-use supplies, goods and equipment, and as a repository of all government procurement information. All Invitation to Apply for Eligibility and to Bid, Notices of Award and all other procurement related notices shall be posted in the G-EPS Electronic Bulletin Board in accordance with the IRR of RA 9184, regardless of the method of procurement used (Section 90 of CY 2010 GAA or pertinent provisions of the GAA for the year).

Under Section 7 of the IRR, consistent with government fiscal discipline measures, only those considered crucial to the efficient discharge of government functions shall be included in the Annual Procurement Plan (APP). No procurement shall be undertaken unless it is in accordance with the approved APP of the procuring entity.As a general rule, all procurement shall be done through public bidding and agencies shall see to it that the procurement program allows sufficient lead time for such public bidding. Under Rule XVI of the Revised IRR of RA 9184, alternative modes shall be resorted to only in highly exceptional cases defined therein.

It is further provided under Section 13.1 thereof, that to enhance the transparency of the process, the BAC shall, in all stages of the procurement process, invite, in addition to the representatives of COA, at least two (2) observers.

10.1Procurement through Public Bidding

Basic Requirements for all types of procurement through public bidding

Authenticated photocopy of the approved APP and any amendment thereto Approved contract supported by the following documents which are required

under COA Circular No. 2009-001 dated February 12, 2009 and COA Memorandum No. 2005-027 dated February 28, 2005 to be submitted to the Auditor’s Office within 5 days from the execution of the contract:

o Invitation to Apply for Eligibility to Bido Letter of Intento Eligibility Documents and Eligibility Data Sheeto Eligibility Requirementso Results of Eligibility Check/Screeningo Bidding Documents enumerated under Sec.17.1 of the Revised IRR of RA

9184o Minutes of Pre-bid Conference, (ABC P1 million and above)o Agenda and/or Supplemental Bulletins, if any

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o Bidders Technical and Financial Proposalso Minutes of Bid Openingo Abstract of Bidso Post-Qualification Report of Technical Working Groupo BAC Resolution declaring winning biddero Notice of Post Qualificationo BAC Resolution recommending approvalo Notice of Awardo Performance Securityo Program of Work and Detailed Estimateso Bid security in the prescribed form, amount and validity periodo Notice to Proceedo Such other documents peculiar to the contract and/or to the mode of

procurement and considered necessary in the auditorial review and in the technical evaluation thereof

o Copy of complete Technical specificationso Copy of the document containing the Detailed Breakdown of the

Approved Budget for the Contract (ABC) including the detailed breakdown of estimates and/or unit cost analysis/derivation for each work item

o Copy of the document containing the Detailed Breakdown of the Contract Cost

including the detailed breakdown of estimates and/or unit cost analysis/derivation for each work item expressed in volume/area/lump sum/lot for infrastructure projects

indicating the following, among others, for consultancy services:

- Schedule of basic rates certified by the consultant with a sworn statement

- Derivation of the billing factor/multiplier certified by the consultant with a sworn statement

- Detailed breakdown of reimbursable costs based on agreed fixed rates

- Detailed breakdown of reimbursable costs based on actual costs

indicating costs and dates of acquisition of the equipment, quantities and cost of materials, spare parts, and supplies furnished by the contractor for janitorial/security/maintenance services

In case of first payment

o Copy of Advertisement of Invitation to Bid/Request for expression of interest

Newspaper clippings of advertisement (ABC P5 million and above for infrastructure, P2 million and above for goods, and P1 million or four (4) months duration and above for consulting services)

Printout copy of advertisement posted in PhilGEPS Certification from the Head of BAC Secretariat on the posting of

advertisement at conspicuous places Printout copies of advertisement posted in agency website, if any

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o Sworn statements by the prospective bidders as required under Sections 25.2.b(iv) for infrastructure projects, 25.2a(iv) for goods and 25.2c(vi) for consulting services of the Revised IRR of RA 9184

o Minutes of Pre-procurement Conference for projects costing above P5 million for infrastructure, P2 million and above for goods, and P1 million and above for consulting services

o Bid Evaluation Reporto Post Qualification Evaluation Reporto Printout copy of posting of Notice of Award, Notice to Proceed and

Contract of award in the PhilGEPSo For LGUs, as summarized under COA Memorandum No. 2010-014 dated

April 22, 2010, authorization by local Sanggunian for the Local Chief Executive to enter into contract in case of the following:

In the case of a reenacted budget:

- For new contracts entered into by the local chief executive for contractual obligations included in the previous year’s annual and supplemental budget

In the case of the regularly enacted budget:

- For projects described in generic terms, such as infrastructure projects, inter-municipal waterworks, drainage and sewerage, flood control, irrigation system projects, reclamation projects, or roads and bridges

- For purchase of goods and services which are neither specified nor encompassed within the regular personal services and maintenance operating expenses

o Evidence of Invitation of three (3) observers in all stages of the procurement process pursuant to Section 13.1 of the Revised IRR of RA 9184

10.1.1 Infrastructure

Appropriations authorized under the GAA for the construction of buildings for SUCs, schools, hospitals, sanitaria, health centers and health stations, roads and buildings, and irrigation systems, among others, shall be implemented only in accordance with the appropriate standards and specifications for the planning, survey, design and construction of the project as prescribed by the DPWH, DOTC or National Irrigation Administration, as the case may be. In addition, land use and zoning guidelines as prescribed by existing laws, rules and regulations shall be strictly observed. In the implementation of construction projects, Sections 2-7, 9-10 and 12 of EO No. 182 series of 1997 and other legislations on public works shall be strictly complied with (Section 91 of CY 2010 GAA or pertinent Sections of GAA for the year).

Additional documentary requirements common to all infrastructure transactions

Letter request from contractors for progress/final payment or for substitution in case of release of retention money

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Common to progress/final payments

o Statement of Work Accomplished/Progress Billingo Inspection Report by the Agency’s Authorized Engineero Results of Test Analysis, if applicableo Statement of Time Elapsedo Monthly Certificate of Paymento Contractor’s Affidavit on payment of laborers and materialso Pictures, before, during and after construction of items of work

especially the embedded itemso Photocopy of vouchers of all previous paymentso Certificate of completion

10.1.1.1 Advance Payment

General Guidelines

The procuring entity shall, upon a written request from the contractor, make an advance payment to the contractor in an amount not exceeding 15% of the total contract price to be made in lump sum or, at the most, two installments according to a schedule specified in the Invitation to Bidders and other relevant Tender Documents. The advance payment shall be made only upon submission to and acceptance by the procuring entity of an irrevocable standby letter of credit of equivalent value from a commercial bank, a bank guarantee or a surety bond callable upon demand, issued by a surety or insurance company duly licensed by the Insurance Commission and confirmed by the procuring entity. (Annex E of the Revised IRR of RA 9184)

Additional Documentary Requirements:

Project requirements as required under Section 25.2b(iii) of the Revised IRR of RA 9184

Irrevocable Standby Letter of Credit/Security Bond/Bank Guarantee

Additional documents for review/evaluation of the technical aspect of the contracts/transactions required under Annex A of COA Memorandum No. 2005-027 to be submitted to the Auditors Office within five days from the execution of the contract consisting of the following:

o Copy of the Approved PERT/CPM Network Diagram and detailed computations of contract time

o Copy of the complete set of approved plans/drawings including the following:

Site development plan Profile sheet, typical section and details Drainage details where applicable

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Structural plans at appropriate scale indicating all details necessary in order that the complete structure can be set out and constructed

Other necessary details

10.1.1.2 Variation Order / Change Order / Extra Work Order

General Guidelines

Variation Order/Extra Work Order may be issued to cover any increase/decrease in quantities, including the introduction of new work items that are not included in the original contract or reclassification of work items either due to change of plans, design or alignment to suit actual field conditions resulting in disparity between the pre-construction plans used for the purpose of bidding and the “as staked plans” or construction drawings prepared after a joint survey by the contractor and the government after award of the contract, provided that the cumulative amount of the positive or additional Variation Order does not exceed 10% of the original contract price. The addition/deletion of works under Variation Orders should be within the general scope of the project as bid and awarded. Any cumulative positive Variation Order beyond 10% of the original contract price shall be subject of another contract to be bid out if the works are separable from the original contract. (Annex E of the Revised IRR of RA 9184)


Additional documents enumerated under Annex B of COA Memorandum No. 2005-027 dated February 28, 2005 required to be submitted to the Office of the Auditor for the review/evaluation of the changes in the contract:

o Copy of Approved Change Order (CO) / Extra Work Order (EWO)

o Copy of the approved original plans indicating the affected portion(s) of the project and duly revised plans and specifications, if applicable, indicating the changes made which shall be color coded

o Copy of the agency’s report establishing the necessity/justification(s) for the need of such CO and/or EWO which shall include (a) the computation as to the quantities of the additional works involved per item indicating the specific stations where such works are needed; (b) the date of inspection conducted and the results of such inspection; (c) a detailed estimate of the unit cost of such items of work for new unit costs including those expressed in volume/area/lump sum/lot

o Copy of the approved/revised PERT/CPM Network Diagram which shall be color coded, reflecting the effect of additional/deductive time on the contract

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period and the corresponding detailed computations for the additional/deductive time for the subject Change Order/Extra Work Order

o Copy of the approved detailed breakdown of contract cost for the variation order

o Copy of the COA Technical Evaluation Report for the original contract

o If the Variation Order to be reviewed is not the 1st variation order, all of the above requirements for all previously approved variation orders, if not yet reviewed, otherwise, copy of the COA Technical Evaluation Report for the previously approved variation orders

o Additional performance security in the prescribed form and amount if variation order exceeds 10% of the original contract cost

10.1.1.3 Progress Payment

General Guidelines

Once a month, the contractor may submit a statement of work accomplished (SWA) or progress billing and corresponding request for progress payment for work accomplished. The SWA should show the amounts which the contractor considers itself to be entitled to, up to the end of the month, to cover the cumulative value of the works executed to date based on the items in the Bill of Qualities and adjustments made for approved Variation Orders executed (Annex E of the Revised IRR of RA 9184).

10.1.1.4 Final Payment

General Guidelines

Contractors shall be fully paid only upon completion and acceptance of the project by the agency.


As-Built plans Warranty security Clearance from the Provincial Treasurer that the

corresponding sand and gravel fees have been paid (DO No. 108 s. 1990) [ verify ]

Copy of turn over documents / transfer of project and facilities such as motor vehicle, laptops other equipment, furniture and others included in the contract to concerned government agency

10.1.1.5 Release of Retention Money

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General Guidelines

The total retention money shall be due for release upon final acceptance of the works. The contractor may, however, request the substitution of the retention money for each progress billing with irrevocable standby letters of credit from a commercial bank, bank guaranties or surety bonds callable on demand, of amounts equivalent to the retention money substituted for and acceptable to the Government, provided that the project is on schedule and is satisfactorily undertaken (Annex E of the Revised IRR of RA 9184).


Any security in the form of cash, bank guarantee, irrevocable standby letter of credit from a commercial bank, GSIS or surety bond callable on demand

Certification from the end-user that the project is completed and inspected

10.1.2 Consulting Services

General Guidelines

The services of consultants may be engaged by any procuring entity for government projects or related activities of such magnitude and/or scope as would require a level of expertise or attention beyond the optimum in-house capacity of the agency concerned and consistent with the government’s policy not to compete with the private sector. (Annex E of the Revised IRR of RA 9184)


Additional documents under Annex D of COA Memorandum No. 2005-027 dated February 28, 2005 required to be submitted to the Auditor’s Office within 5 days from the execution of the contract

o Copy of the Terms of Reference (TOR)o If not in the TOR, appropriate approved documents containing the

following:

Statement of the scope of work, expected outputs/deliverables and expected time frame

Minimum requirements on the expertise of the consultants and the qualifications of individual personnel necessary for the undertaking

o Copy of the Approved Program of Work/Project Schedule (PERT/CPM Network Diagram, Gantt Chart or equivalent)

o Copy of the Approved Manning Schedule indicating the names and positions of the consultants and staff and the extent of their participation in the project

o Copy of the curriculum vitae of the consultants and staff

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Letter request for payment from the consultant Approved Consultancy Progress/Final Reports, and/or output required

under the contract Progress/Final Billing

Ranking of short listed bidders Organizational chart for the contract to be bid List of completed and on-going projects

10.1.3 Goods

General Guidelines

This refers to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction or personal property of any kind, including non-personal or contractual services such as the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security and related or analogous services, as well as procurement of materials and supplies provided by the procuring entity for such services. The term “related” or “analogous services” shall include, but not limited to, lease or purchase of office space, media advertisements, health maintenance services, and other services essential to the operation of the agency. (Section 5(r) of the Revised IRR of RA 9184)

In addition to the Revised IRR of RA 9184, procurement of Goods shall also be governed by the following provisions of CY 2010 GAA or pertinent provisions of the GAA for the year.

The inventory of supplies, materials and equipment spare parts to be procured out of available funds shall at no time exceed the normal three-month requirement (Section 23);

Departments, bureaus, offices or agencies are authorized to make emergency purchases of supplies, materials and spare parts of motor transport equipment when there is an unforeseen contingency requiring immediate purchase, subject to the conditions prescribed under RA 9184 and its IRR (Sec 24);

Priority on procurement shall be given to the purchase of locally-produced and manufactured materials. Importation may be made when (Section 25):

o None of the desired quality or standard is available in the market or when the price of the local product or service is more than 15% of that of a similar product offered by an enterprise other than a domestic entity pursuant to Section 4 of C.A. No. 138, as certified by the DTI

o The quality of the locally produced and manufactured material is sub-standard compared with its imported counterpart as determined by the DOST; and

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o No locally produced and manufactured material is available as certified by the DTI.

10.1.3.1 Supplies, Materials, Equipment and Motor Vehicles

General Guidelines

The inventory of supplies, materials and equipment spare parts to be procured out of available funds shall at no time exceed the normal three-month requirement, subject to pertinent rules and regulations issued by competent authority. The heads of departments, bureaus, offices or agencies may increase their inventory of critical supplies and materials in anticipation of cost increases, or if necessitated by a national emergency or of an impending shortage in the items concerned, specifying maximum quantities of individual items. Unless otherwise approved by the President of the Philippines, upon the joint recommendation of the Secretary concerned and the Chairman of COA, these stocks shall not exceed one year’s requirement (Section 23 of CY 2010 GAA or pertinent provisions of the GAA for the year).


Additional documents required under Annexes F and S of COA Memorandum No. 2005-027 dated February 28, 2005 required to be submitted within 5 days upon execution of the contract:

o Approved detailed plans/drawings/layout, if applicableo Conditions of Contracto Certificate of Exclusive Distributorship, if applicableo Complete set of approved agency specifications/item

description indicating the following, among others, brand, unit of measurement, accessories (if any), make, country of origin, size/dimension/volume, model, use of item, color, capacity, horsepower, voltage, watts, gauge, kind of equipment where spare parts are to be used, statement whether replacement or original (for spare parts), part number of spare parts, type and classification of materials, packing (quantity per pack), substance, speed, kind of service rendered

o Appropriate approved documents indicating the unit prices of the items

o Samples and brochures/photographs, if applicableo For imported items:

Consular Invoice/Pro-forma invoice of the foreign supplier with the corresponding details

Home Consumption Value of the items

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Breakdown of the expenses incurred in the Importation

Original copy of Dealers/Suppliers’ Invoices showing the quantity, description of the articles, unit and total value, duly signed by the dealer or his representative, and indicating receipt by the proper agency official of items delivered.

Results of Test Analysis, if applicable Tax receipts from the Bureau of Customs or the BIR

indicating the exact specifications and/or serial number of the equipment procured by the government as proof of payment of all taxes and duties due on the same equipment, supplied or sold to the government (AO No. 200 dated November 21, 1990)

Inspection and Acceptance Report prepared by the Department/Agency property inspector and signed by the Head of Agency or his authorized representative

For equipment, Property Acknowledgement Receipt Warranty Security for a minimum period of three (3)

months, in the case of expendable supplies, or a minimum period of one (1) year in the case of non-expendable supplies, after acceptance by the procuring entity of the delivered supplies

Request for purchase or requisition of supplies, materials and equipment duly approved by proper authorities

In case of motor vehicles, (AO 233 dated August 1, 2008) authority from:

oAgency head and Secretary of DBM, or office of the President depending on the type of vehicle being provided (Sections 7 and 9)

o Local Chief Executives, including Punong Barangay, for types of vehicles enumerated under Section 7 of AO 233 sourced from their unencumbered local funds and if chargeable under the GAA, either from the DBM or OP depending on the type of vehicles purchased (Sections 7 to 9)

For procurement of drugs and medicines

o Certificate of product registration from Food and Drug Administration (FDA)

o Certificate of good manufacturing practice from FDAo Batch Release Certificate from FDAo If the supplier is not the manufacturer, certification from

the manufacturer that the supplier is an authorized distributor/dealer of the products/items

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10.1.3.2 General Support Services (janitorial, security, maintenance, garbage collection and disposal and similar services)


Additional documents under Annexes H to K and P of COA Memorandum No. 2005-027 dated February 28, 2005 required to be submitted to the Auditor’s Office within 5 days from the execution of the contract:

o For janitorial/security/maintenance services,

appropriate approved documents indicating the following:

- The number of personnel involved and their corresponding rates/salary

- Schedule of work and places of assignment or station / visits indicating, among others, the number of hours per visit

- The type and number of equipment to be served (in case of visitorial maintenance service)

The scaled floor plans of the building and other area/s covered by the service contract (for janitorial services)

The group classification of personnel to determine the Equivalent Equipment Monthly Statutory Minimum Wage Rate in accordance with the applicable Rules Implementing Republic Act No. 6727

Approved documents indicating the minimum requirements of the agency on the number of security personnel to be involved in the project (for security service contract)

The population of the agency where the services is rendered (for security service controls)

Detailed description of the maintenance services to be rendered or activities to be performed (for maintenance service contracts)

o For Garbage Collection and Disposal

Complete description/specifications (brand name, model, make/country of origin, hp, piston displacement, capacity) and number of units of dump trucks to be used

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Complete descriptions/specifications (age, condition, brand, etc.) and number of units of all other equipment to be rented/used

Appropriate approved documents containing the terms and conditions, whether operated or bare rental for heavy equipment, whether per trip or package deal; and other relevant condition

The designated dumpsite/location of dumpsite (if provided in a separate document)

The measurement in kilometers of the total distance covered by one (1) complete route for all the required routes to be traveled

Estimated volume in cubic meters of garbage to be hauled from area of operation, including the basis for such estimates

In cases where the type of contract differs from the usual per trip contract basis, sufficient justification and comparative analysis between the type of contract adopted against the basic per trip type of contract

o For forwarding/shipping/hauling contract

The type/kind and technical description of the mode of transportation used

The point of origin and destination including the estimated distance/s if transported by land

The estimated weight and volume of cargoes involved

Accomplishment Report Request for payment Contractor’s Bill Certificate of Acceptance Record of Attendance/Service

10.1.3.3 Rental Contracts


Additional documents under Annexes L, N and O of COA Memorandum No. 2005-027 dated February 28, 2005 required to be submitted to the Auditor’s Office within 5 days from the execution of the contract.

o For privately owned office/building

- Complete copy of the building floor plans indicating in shaded colors the rentable space

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- Copy of the Certificate of Occupancy of the building or appropriate approved documents showing the date the building was constructed or age of the building

- Complete description of the building as to type, kind and class including its component parts and equipment facilities such as, but not limited to, parking areas, elevators, air-conditioning systems, firefighting equipment, etc.

- Copy of the Master of Deed Declaration and Restrictions in case of lease/rental of office condominiums

o For equipment rental/ lease / purchase contract

- Agency evaluation of equipment utilization

- Pertinent data of area of operation

Request for payment Bill/Invoices Certificate of occupancy (space/building)

10.1.3.4 Repair and Maintenance of Aircraft, Equipment and Motor Vehicles


Additional documents under Annexes Q and R of COA Memorandum No. 2005-027 dated February 28, 2005 required to be submitted to the Auditor’s Office within 5 days from the execution of the contract:

o Copy of the pre-repair evaluation report and approved detailed plans by the agency showing in sufficient detail the scope of work/extent of repair to be done

o Copy of the latest service bulletin, in case of aircrafto Report of waste materialso Copy of document indicating the history of repair

Post-inspection reports Warranty Certificate Request for payment Bill/Invoices Certificate of Acceptance Pre-repair inspection reports

10.1.3.5 Advertising Expenses

General Guidelines

One of the austerity measures adopted under Administrative Order No. 103 dated August 31, 2004 is the suspension, among

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others, of paid media advertisements, except those required in the issuance of agency guidelines, rules and regulations, the conduct of public bidding and the dissemination of important public announcements.


Bill/Statement of Account Copy of newspaper clippings evidencing publication and/or

CD in case of TV/Radio commercial

10.2Procurement through Alternative Modes

Basic Requirements Common to All Purchases under alternative mode

Documents to be submitted within five (5) working days from the execution of the contract as required under COA Circular No. 2009-001 dated February 12, 2009:

o Purchase / Letter Order / Contract, duly approved by the official concerned and accepted by the supplier (date of acceptance must be clearly indicated, especially when the time or date of delivery is dependent on or will be counted from the date of acceptance of the purchase/letter order/contract)

o Proof of posting of invitation or request for submission of price quotation in the PhilGEPS website, website of the procuring agency, if available, and at any conspicuous place reserved for this purpose in the premises of the procuring agency for a period of seven (7) calendar days in case of Shopping under Section 52.1(b), and Negotiated Procurement under Section 53.1 (two failed bidding) and 53.9 (small value procurement) of the Revised IRR of RA 9184

o Performance and warranty securities, except for shopping and negotiated procurement under emergency cases, small value procurement, lease of real property and UN agencies

o BAC Resolution recommending and justifying to the Head of Procuring Entity the use of alternative mode of procurement

o Proof of posting of Notice of Award in the PhilGEPs website, the website of the procuring entity concerned, if available, and at any conspicuous place reserved for this purpose in the premises of the procuring entity

Approved Procurement Plan Request for purchase or requisition of supplies, materials and equipment, duly

approved by proper authorities Original copy of the delivery invoice showing the quantity, description of the

articles, unit and total value, duly signed by the dealer or his representative and indicating receipt by the proper agency official of items delivered

Inspection and acceptance report signed “Inspected by” by the authorized agency inspector and signed “accepted by” by the authorized end-user to whom the item was delivered or the property officer if item is for stock

Approval by the Head of the Procuring Entity or his duly authorized representative on the use of the alternative methods of procurement, as recommended by the BAC

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10.2.1 Limited Source Bidding

General Guidelines

This is a method of procurement of goods and consulting services that involves direct invitation to bid from the list of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract. This alternative method of procurement may be employed under any of the following conditions (Section 49 of the Revised IRR of RA 9184):

Procurement of highly specialized types of goods (e.g., sophisticated defense equipment, complex air navigation systems, coal) and consulting services where only a few suppliers or consultants are known to be available, such that resorting to public bidding method will not likely result in any additional suppliers or consultants participating in the bidding; or

Procurement of major plant components where it is deemed advantageous to limit the bidding to known qualified bidders in order to maintain uniform quality and performance of the plant as a whole.


Specific requirements to be submitted within five (5) working days from the execution of the contract as required under COA Circular No. 2009-001 dated February 12, 2009:

o Copy of direct invitation to bid served by the concerned agency to all suppliers or consultants appearing in the pre-selected list of manufacturers/suppliers/distributors with known experience and proven capability on the requirements of the particular contract;

o Winning bidder’s offer or proposalo Abstract of bids showing the most responsive and complying

bidder from among the other bidders who participated in the bidding

o Notice of Awardo Bid Securityo Eligibility documentso For consultancy – same requirements under public bidding (item

10.1.2)

10.2.2 Direct Contracting

General Guidelines

This is a method of procurement of goods whereby the supplier is simply asked to submit a price quotation or a pro-forma invoice together with the

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conditions of sale. The offer may be accepted immediately or after some negotiations. Direct contracting may be resorted to under any of the following conditions (Section 50 of the Revised IRR of RA 9184):

Procurement of goods of proprietary nature which can be obtained only from the proprietary source, i.e. when patents, trade secrets, and copyrights prohibit others from manufacturing the same item;

When the procurement of critical plant components from a specific supplier is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract; or

Those sold by an exclusive dealer or manufacturer which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the government.



Copy of letter to selected manufacturer/supplier/distributor to submit a price quotation and conditions of sale

Certificate of Exclusive Distributorship issued by the principal under oath and authenticated by the embassy/consulate nearest the place of the principal, in case of foreign suppliers

Certification from the agency authorized official that there are no sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the government

Certification of the BAC in case of procurement of critical plant components and/or to maintain certain standards

10.2.3 Repeat Order

General Guidelines

This is a method of procurement of goods from the previous winning bidder, whenever there is a need to replenish goods procured under a contract previously awarded through Competitive Bidding. Repeat Orders shall likewise be subject to the following conditions (Section 51 of the Revised IRR of RA 9184):

Unit prices of the repeat order must be the same as, or lower than, those in the original contract, provided that such prices are still the most advantageous to the government after price verification;

The repeat order will not result in splitting of contracts, requisitions, or purchase orders, as provided for in Section 54.1 of the Revised IRR of RA 9184;

Except in cases duly approved by the GPPB, the repeat order shall be availed of only within six (6) months from the contract effectivity

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date stated in the Notice to Proceed arising from the original contract; and

The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item in the original contract.



Copy of the original contract used as basis for repeat order indicating that the original contract was awarded through public bidding

Certification from the Purchasing Department/Office that the supplier has complied with all the requirements under the original contract

10.2.4 Shopping

General Guidelines

Shopping is a method of procurement of goods whereby the procuring entity simply requests for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications. This method of procurement shall be employed in any of the following cases (Section 52 of the Revised IRR of RA 9184):

When there is an unforseen contingency requiring immediate purchase; provided, however, that the amount shall not exceed the threshold prescribed in Annex H of the Revised IRR of RA 9184

Procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not exceeding the threshold prescribed in Annex H of the Revised IRR of RA 9184

The Guidelines for shopping and small value procurement are prescribed under the GPPB Resolution No. 09-2009 dated November 3, 2009.



Price quotations from at least three (3) bonafide and reputable manufacturers/suppliers/distributors

Abstract of canvass

10.2.5 Negotiated Procurement

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General Guidelines

This is a method of procurement of goods, infrastructure projects and consulting services, whereby the procuring entity directly negotiates with a technically, legally and financially capable supplier, contractor or consultant in any of the following cases (Section 53 of the Revised IRR of RA 9184):

Two Failed Biddings Emergency cases Take-over of Contracts Highly Technical Consultants Defense Cooperation Agreement Small Value Procurement Community Participation United Nations Agencies Adjacent or Contiguous NGO Participation (GPPB Resolution No. 12-2007) Agency-to-Agency Procurement Agent Lease of Real Property

The last three (3) items are subject to the guidelines to be issued by the GPPB.



o In cases of two failed biddings, emergency cases, take-over of contract small value procurement

- Price quotation/bids/final offers from the invited suppliers which should at least be three (3)

- Abstract of submitted Price Quotation

- BAC Resolution recommending the award of contract to the LCRB

Additional requirements in specific cases

o In case of two failed biddings

- Agency’s offer for negotiations with selected suppliers, contractors or consultants

- Certification of BAC as to failure of competitive bidding for the second time

- Evidence of invitation of observers in all stages of the negotiation

- Eligibility documents in case of infrastructure projects

o In emergency cases

- Justification as to the necessity of purchase

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o In case of take-over of contracts,

- Copy of terminated contract

- Reasons for the termination

- Negotiation documents with the second lowest calculated bidder and that third lowest calculated bidder in case of failure of negotiation with the second lowest bidder. If negotiation still fails, invitation to at least three eligible contractors

- Approval by the Head of the Procuring Agency to negotiate contracts for projects under these exceptional cases

o In case of small value procurement

- Letter/invitation to submit proposals

o For adjacent or contiguous

- Original contract and any document indicating that the same resulted from competitive bidding

- Scope of work which should be related or similar to the scope of work of the original contract

- Latest Accomplishment Report of the original contract showing that there was no negative slippage/delay

10.3For procurement through ADA or direct payment


Same documents required under goods, infrastructure or consulting services depending on the mode of procurement adopted

Letter request from the Head of the Agency to the Bank to pay/credit the account of the supplier

Warranty Security in case of final payment Confirmation from the bank that the account of the supplier has already been

credited (for post audit purposes)

11.0Road Right of Way (ROW) / Real Property

General Guidelines

Claims for road right-of-way is subject to the provisions of RA 8974 and its implementing rules and regulations.


Project profile and description duly certified by the Project Director Certification by the Project Director that said lot and structures are within the

boundaries of the right-of-way as shown in the parcellary survey plan and structure mapping plan

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Certification by the Planning Service, DPWH that the claim is not within the ROW of a converted local road

Certification from the Head of the Implementing Office that there is no previous pending claim and previous payment on subject property

Environmental Clearance Certificate (ECC) Appraisal / valuation of the land / damaged improvements / crops duly approved by

the Head of the Agency together with copies of documents used in the determination of the amount. Valuation should be based on the provisions of RA 8974.

Certified Photocopy of Authority to Purchase Land or Land Rights using approved/established valuations

Deed of Absolute Sale registered with the Register of Deeds where the land is located Certified Photocopy of Tax Clearance from Assessor’s Office where the land is

located

o Certificate Authorizing Registration (CAR)o Capital Gains Tax (CGT)o Documentary Stamp Tax (DST)o Transfer Tax

Certified Photocopy of approved survey plan of the area/portion of land being acquired

Copy of latest updated master list of Project-Affected-Persons (PAP) approved by Agency’s authorized representative

If registered land:

o If whole lot is acquired, Transfer Certificate of Title (TCT/CLOA/OCT/EP) certified as true copy by the Register of Deeds with court Decision annotated in case of payment thru court Decision and Tax Declaration (TD) certified as true copy by the Assessor’s Office in the name of the procuring entity

o If portion of lot is acquired, certified photocopy of TCT and TD in the name of the procuring entity or previous owner with annotation of sale / court decision

If unregistered land/improvement/structure:

o Certified photocopy of TD in the name of the procuring entity or previous owner with annotation of sale / court decision

o Notarized Affidavit of Ownershipo Certification from the Treasurer that the claimant is the sole entity paying the

taxes for the property for the past 5 yearso Notarized joint affidavit of 2 adjoining landowners or Barangay/Local Officials

concerned attesting to the ownership of land/improvemento If claim for payment or amount of sale exceeds P50,000 (EO1035); certified

photocopy of Claimant’s Surety/Indemnity Bond issued by any Insurance Company duly accredited by the Insurance Commission

Certified photocopy of Court Decision registered with the Register of Deeds where the land is located in case of payment through court decision.

Notarized landowner’s waiver of rights / quitclaim to affected houses/structures or establishments if payment will be made to claimants other than the owner

12.0Financial Expenses

General Guidelines

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In line with entering into various transactions with local and international financing institutions, agencies incurred bank charges, commitment fees, documentary stamp tax, interest expenses and other related financial charges.


Loan Agreements/Memoranda of Agreement together with supporting documents Statement of Account Bank Debit memos Other supporting documents deemed necessary

depending on the nature of the transaction

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