August 28, 2018

ATTY. CARMELA S. FERNAN, CESO III

Regional Director
Department of Budget and Management
Zone 1, National Highway, Bulua
Cagayan de Oro City

Dear Director Fernan:

Greetings!

This is to respectfully request for your confirmation or opinion on our understanding on the utilization of
the unexpended LDRRM Fund, which includes the unexpended balance of the 30% or Quick Response
Fund and the 70%, transferred to the Special Trust Fund Account of the Local Government Unit.
Presented below are the understandings by the undersigned, to wit:

First, the fund can be utilized and disbursed within the next five (5) years to support the
various programs and activities of the LDRRM Council and that includes the procurement or
acquisition of disaster equipment for disaster response and rescue activities such as heavy
equipments;

Second, if the current year appropriation for the 30% or Quick Response Fund (QRF) is
insufficient, the unexpended balance in the Trust Fund can be utilized and disbursed in cases
where a state of calamity is declared by the Local Sanggunian;

And lastly, any unexpended balance after five (5) years will be reverted back to the General
Fund to be appropriated for social services.

The above understandings are based on the pertinent provisions of law as stated below, to wit:

1. Section 6.4 and 6.5 of the Joint Memorandum Circular No. 2013-1, dated march
25, 2013, jointly issued by the National Disaster Risk Reduction and Management Council,
Department of Budget and Management, and Department of Interior and Local
Government, which states as follows “6.4 The unexpended LDRRMF shall accrue to a
special trust fund solely for the purpose of supporting disaster risk reduction and
management activities of the Local Disaster Risk Reduction and Management Council
(LDRRMC) within the next five (5) years.” and “6.5 The unexpended balances of the
LDRRMF may be released and utilized for new expenditure items upon recommendation of
the LDRRMF in accordance with the approved LDRRMP.”

2. Section 3. Rule 18 of the Implementing Rules and Regulations of RA 102101 .

“Unexpended LDRRMF shall accrue to a special trust fund solely for the purpose of
supporting disaster risk reduction and management activities of the LDRRMCs within the
next five (5) years. Any such amount still not fully utilized after five (5) years shall revert
back to the general fund and made available for other social services to be identified by the
local sanggunian.”

Your opinion on the above concerns on the specific provisions of law regarding the utilization of
the unexpended balances of the LDRRM Fund transferred to the special trust fund will definitely
guide us in our commitment to conform with the provisions of law in the implementation of our
programs and activities. Thank you.

Very truly yours,

HON. ERNIE R. DEVIBAR

Municipal Mayor