GUIDELINES

on the RELEASE of FUNDS

for FY 2011

Department of Budget and Management

NBC No. 528
January 3, 2011
 FY 2010 FY 2011

1. Approval and Effectivity of the GAA

Approval - February 8, 2010 Approval - Dec. 27, 2010

Effectivity - retroactive Jan. 1, 2010 Effectivity - January 1, 2011

2. Appropriation Cover
R.A. 9970 R.A. 10147
Jan 1 to Dec. 31, 2010 Jan 1 to Dec. 31, 2011
operations operations
 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS

FY 2010 FY 2011

3. Treatment of funds utilized prior to the release of allotment

Pending approval of the GAA
(Jan.1-Feb 28)
Agencies were authorized to incur
overdraft in obligations for actual
requirements i.e., 1/12th of annual
requirements.
Pending approval of the
ABM (Jan. 1- 31)
Agencies are authorized to
incur overdraft in obligations
for actual requirements i.e.,
items chargeable against the
allotment to be comprehensively
released.

Overdrafts in obligations shall be

Overdrafts in obligations were charged against the
charged against the comprehensive comprehensive allotment release
allotment release thru the ABM thru the ABM under the 2011
under the 2010 GAA GAA
 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS

FY 2010 FY 2011
SAROs were issued (prior to the approval
of the 2010 GAA) charged against FY 2009
GAA, as reenacted:

- TL/RG benefits
- CMIs / lump-sum funds to accelerate SARO and ABM
implementation of priority projects shall be issued
chargeable against
the FY 2011 GAA
Adjusting SAROs were issued, as follows: R.A. 10147.

1. Negative SARO withdrawing the

released allotment vs. R.A. No. 9524, as
reenacted (FY 2009 GAA)

- 2. Positive SARO replacing the allotment

- withdrawn, charged against the R.A. No.
- 9970 (FY 2010 GAA)
 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS

FY 2010 FY 2011
4. Agency Budget Matrix

Authorized Appropriation = Authorized Appropriation =

Not Needing Clearance (NNC) Not Needing Clearance (NNC)

This Release This Release

For Later Release
Needing Clearance (NC)
Needing Clearance (NC)
 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

FY 2010 FY 2011

5. Comprehensive allotment release under Not Needing Clearance portion

PS - 100 %
PS 100 %
at least 75% MOOE of the Not Needing
MOOE of the Not Needing CO Clearance portion
CO Clearance portion

PS shall cover :
PS covers :
- filled positions of NGAs
- pension benefits
- filled positions of NGAs (AFP retirees, war/military veterans of DND,
retired uniformed personnel and other retirees
i.e., ERC)
 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

FY 2010 FY 2011

5. Comprehensive allotment release under NNC portion (cont.)

Comprehensive allotment released Comprehensive allotment to be

for PS (filled positions) can also be released for PS (filled positions)
used for: can
also be used for:
- 1st tranche of SSL 3
- PS deficiency due to filling up of - 2nd tranche of SSL 3
vacant positions - PS deficiency due to filling up of
vacant positions
 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS UNDER THE GAA

FY 2010 FY 2011

6. Needing Clearance portion

 Items issued SAROs prior to

 Items to be issued SAROs
the approval of the FY 2010
GAA to accelerate to accelerate
implementation of priority implementation of
projects (i.e., frontloading of priority projects; and
requirements); and

 Items which are subject t

 Items subject to compliance o compliance of certain d
of certain documentary ocumentary requirement
requirements. s.
 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS

FY 2010 FY 2011

7. Approval of the ABM

On or before March 31, 2010 On or before Jan. 31, 2011

Types of Disbursement Authorities

Agency:
• Tax Remittance Advice (TRA)

DBM:
• Non-Cash Availment Authority (NCAA)

• Cash Disbursement Ceiling (CDC)

• Notice of Cash Allocation (NCA)

 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS

FY 2010 FY 2011

8. Disbursement of Funds
- DBM prepares a tentative Cash Program
as basis for the initial release of NCA
covering 6 months requirements (Jan-June)
Same procedures
- Agencies submit their Monthly Cash In 2010
Program (MCP)

- DBM updates the cash program based on

the agency’s MCP and SARO releases made

- DBM issues another comprehensive NCA

based on the updated MCP
 COMPARATIVE PROCEDURES IN THE RELEASE OF FUNDS

FY 2010 FY 2011

9. Validity of Appropriation

Appropriations for PS, MOOE and CO Appropriations under the

under the 2010 GAA RA 9970 shall be
2011 GAA R.A. 10147 shall
available for release and obligation up to
December 31, 2010 only. be available for release and
obligation up to December
31, 2012, with the
However, E.O. No. 901 dated June 30, exception of PS.
2010 was issued extending the validity of
appropriations for MOOE and CO under
RA 9970 up to December 31, 2011.
 New Provision

 Posting of data/information in the

agency website (pur. to GP No. 97 of the
GAA):

• Major programs and projects to be implemented

• Annual procurement plans and Notice of Award
• Targeted and actual beneficiaries
• Utilization of funds
• Status of implementation
• Program/project evaluation and assessment reports.
 New Provision
Example:
For releases against PDAF, agencies shall post the following:

• Priority list, standard and design submitted to Congress

• Projects identified and names of proponent legislator

• Names of project beneficiaries and/or recipients

• Any realignment authorized

• Status of project implementation

• Program/project evaluation and assessment reports

• For any procurement, all invitations to bids, names of participating bidders and
corresponding bids and awards of contracts shall be posted in the PhilGEPs.
 New Provision

 Additional requirements to support the release of funds for

the implementation of priority projects i.e., farm to market
roads (FMRs) and irrigation projects (pur. to SP Nos. 3 and 4
under the budget of DA):

FMRs
• DA - new construction Designs
• DAR - agrarian reform communities network plan
Irrigation projects
• NIA – list of priority production areas where the irrigation
projects are to be constructed
 Reiteration of Policies

 Allotment Release Program refers to all allotment releases during the

year from all sources, except multi-user SPFs.

 Under Common Fund Concept, NCAs under the Regular MDS sub-
account may be used to cover payment of current year A/Ps regardless of
the period when the covering obligations were incurred by the agency
(i.e., during the current year or in previous years).

 Excess income shall be used to augment the agency’s operating

requirements for the current year except PS.

 Use of proceeds of sale of obsolete, unnecessary equipment for the

purchase of new ones and rehab of existing vital equipment can be
availed by the agency only during the year when such collections are
deposited to the BTr.
 Reiteration of Policies

Payment of Accounts Payables

 List of Due and Demandable A/Ps as of December 31, 2010
shall be submitted to DBM on or before January 31, 2011
pursuant to CL No. 2004-2

 List of PY A/Ps received by DBM within the cut-off date shall

be included in the special lane for priority funding. NCA
release shall be made thru the agency’s Special MDS
Account.

 PY A/Ps not included in List submitted to DBM shall be queued

by the agency in the normal payment procedure for current
year A/Ps i.e., to be charged against the NCA under the
Regular MDS account or Common Fund
 Reiteration of Policies

Agency Performance Review (APR)

 Periodic review of agency performance i.e., thru evaluation of agency
reports submitted to DBM (correlation of actual accomplishments per
BARs vis-à-vis plans and targets per BEDs).

Agency Action Programs that will cover:

- identification of risks and bottlenecks

- timetable of the measures to be undertaken

- indicators that will show if the agency is succeeding in

addressing issues/problems
 Important Timelines

 Submission of BEDs = February 15, 2011

 Submission of request for realignment of released

allotment under the FY 2010 budget = June 30, 2011

 Submission of requests that will require issuance of

SARO and NCA in FY 2011 = November 15, 2011

 Submission of BARs = on the dates prescribed

under NBC 507/507A
Without continual growth and progress, such words as
improvement, achievement, and success have no
meaning.
- Benjamin Franklin