REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF BUDGET AND MANAGEMENT

GENERAL SOLANO STREET, SAN MIGUEL, MANILA

No. 587
NATIONAL BUDGET CIRCULAR
January 3, 2022

For : All Heads of Departments/ Agencies/ State Universities and Colleges

(SUCs) and Other Offices of the National Government, including
Commissions/Offices under the Constitutional Fiscal Autonomy Group
(CFAG); Government-owned or -Controlled Corporations (GOCCs) and
Local Government Units (LGUs) receiving budgetary support from the
national government; Budget Officers; Heads of Accounting Units, and
All Others Concerned

Subject : GUIDELINES ON THE RELEASE OF FUNDS FOR FY 2022-----------

1.0 PURPOSES
1.1 To prescribe policies, procedures, rules and regulations on the release of funds
authorized under Republic Act (R.A.) No. 11639, the FY 2022 Gene^
Appropriations Act (GAA), Continuing Appropriations under R.A. No. 11518 (FY
2.021 GAA) as extended under R.A. No. 11640, as well as programmed automatic
appropriations.
1.2 To synchronize fund release with the implementation of the overall physical and
financial plans, targets and schedules submitted by the departments, agencies,
and/or operating units (OUs).

1.3 To remind agencies of the budgetary and accountability reports required for
agency performance review.

2.0 COVERAGE
Ail departments, agencies and OUs of the National Government, including
Constitutional Offices under CFAG, SUCs, as well as GOCCs and LGUs receiving
budgetary support from the national government from all sources of appropriations in
FY 2022. ,

3.0 GENERAL GUIDELINES

3.1 The FY 2022 GAA takes effect on January 1, 2022, as provided under Section
1, General Provisions (GPs) of said law.
3.2 Consistent with the FY 2022 fiscal program as approved by the Development
Budget Coordination Committee (DBCC), the aggregate allotment release program
(ARP) during the year from all appropriation sources shall not exceed the Total
Obligation Program under Table H of the FY 2022 Budget of Expenditures and
Sources of Financing (BESF).

3.2.1 The Allotment Release Program (ARP) of each National Government Agency
(NGA) shall be an amount equal to the aggregate of the following:

3.2.1.1 Their Built-in Appropriation under the FY 2022 GAA; and

3.2.1.2 The programmed level of their automatic appropriations, i.e.,

Retirement and Life Insurance Premiums (RLIP), Special
Accounts in the General Fund (SAGF), among others.

3.2.2 In accordance with prudent fiscal management, taking into account

programmed available financing sources (revenues, net proceeds from
borrowing, cash balance) and subject to agency absorptive capacity,
unless supported with incremental adjustments in performance
targets, the following items shall be accommodated within the agency
ARP, i.e., to be offset against the items programmed/identified under item
3.2.1 hereof:

3.2.2.1 Releases from Unprogrammed Appropriations (UA) under the FY

2022 GAA;

3.2.2.2 Other automatic appropriations, such as additional RLIP, SAGFs,

among others; as well as,

3.2.2.3 Other appropriation sources as extended by subsequent

legislative enactment.

Hence, agencies are required to submit updated Physical Plan BED No. 2
indicating the adjustment in targets.

3.2.3 Releases pertaining to grant proceeds, which are not considered in the
revenue and obligation levels for the FY 2022 budget, shall be on top of the
agency ARP determined under item 3.2.1 hereof.

3.3 Consistent with Section 68, GPs of the FY 2022 GAA and The President's Veto
Message, all appropriations authorized under the FY 2022 GAA, shall be
available for release, obligation, and disbursement for the purpose specified, and
under the same General and Special Provisions of said GAA applicable thereto, as
follows:

3.3.1 Personnel Services until December 31, 2022;

3.3.2 Maintenance and Other Operating Expenses (MOOE) and Capital Outlays
(CO) until December 31, 2023, including construction of infrastructure
projects, delivery of goods and services, inspection and payment.
 3.4 Appropriations for the statutory shares of LGUs, shall be available for release,
obligation, and disbursement until fully disbursed:

3.4.1 National Tax Allotment (NTA) based on the actual collections of national
taxes in FY 2019 pursuant to the Local Government Code of 1991 (R.A.
No. 7160) and the Supreme Court (SC) decision in the consolidated cases
of Congressman Hermilando I. Mandanas, et al. vs. Executive Secretary
Paquito N. Ochoa, Jr. et al. and Honorable Enrique T. Garcia, Jr. vs.
Executive Secretary Paquito Ochoa, et al.,1; and

3.4.2 Special Shares in the proceeds of National Taxes:

3.4.2.1 From the utilization and development of national wealth within

their territorial jurisdiction (Sections 289 to 291, R.A. No. 7160);

3.4.2.2 From Tobacco Excise Tax (R.A. No. 7171 - Virginia Tobacco
Cigarettes, R.A. No. 8240 as amended by R.A. No. 10351 -
Burley and Native Tobacco Products and further amended by
R.A. No. 11346);

3.4.2.3 From gross income taxes paid by businesses/enterprises within

economic zones (R.A. No. 7922, as amended by R.A. No. 9400);

3.4.2.4 From Incremental Collection from Value-Added Tax (VAT) (R.A.

Nos. 7643 and 8424) and VAT in lieu of Franchise Tax (R.A. Nos.
7953 and 8407); and

3.4.2.5 From share in Fire Code Fees (R.A. No. 9514).

3.5 Pursuant to R.A. No. 11640 which extended R.A. No. 11518 (FY 2021 GAA),
appropriation items authorized under RA 11518 for MOOE and CO are valid for
release, obligation, and disbursement until December 31, 2022.

3.6 For reasons of fiscal prudence, programmed Automatic Appropriations are valid
for release, obligation and disbursement within the budget year, and any
deficiency thereof may be proposed for inclusion in the succeeding year's budget
as warranted.

Likewise, Unprogrammed Appropriations (UA) are valid for release, obligation, and
disbursement during the year. UA are considered as standby appropriations and
are funded from excess revenue or from new revenue sources vis-a-vis the original
targets for the budget year, as reflected in the BESF, or when additional foreign
loan and proceeds are realized within the budget year.

3.7 After the end of the specified applicable validity period, all unreleased
appropriations or unexpended or undisbursed funds shall revert to the
unappropriated surplus of the General Fund, in accordance with Section 28,

G.R. Nos. 199802 and 208488 dated April 10,2019

 Chapter 4, Book VI of E.O. No. 2922 and shall not be available for expenditure
except by subsequent legislative enactment.

3.8 All funds transferred between or among government agencies and LGUs shall not
be considered disbursed until the transferred amounts have been actually utilized
to pay for goods and services rendered, inspected, and accepted. Any unexpended
or undisbursed funds at the end of the validity period shall be subject to reversion
to the National Treasury and shall not thereafter be available for expenditure,
except by subsequent legislative enactment, in accordance with Section 2 of EO
No. 91.

3.9 The obligational authority for items of appropriations in the budget shall
be released through the following:

3.9.1 GAA as the Allotment Order (GAAAO) for items classified as For
Comprehensive Release (FCR) per Schedule I, including P/A/Ps in the
President's Budget (NEP) with increased allocation in the GAA subject to
corresponding updated targets.

3.9.2 Special Allotment Release Order (SARO) or General Allotment

Release Order (GARO), for items of appropriations classified as For
Later Release (FLR). These items shall be considered the withheld
portion of the budget.

3.10 Release of funds in the FY 2022 GAA are made directly to the Regional Offices
(ROs) or Operating Units (OUs) of agencies. An OU refers to an organizational
entity directly receiving NCA from DBM and capable of administering its own funds.

3.10.1 Funds specifically appropriated in the GAA to ROs or OUs of agencies

shall be released directly to these ROs and OUs, except as otherwise
requested by the agencies from the DBM (Section 71, GPs of the FY
2022 GAA).

3.10.2 Funds for Centrally-Managed Items (CMI) or Lump-sum

Appropriations in the agencies' budgets are those with unidentified
recipient ROs or OUs and/or unspecified allocation per recipient in the
GAA, and thus classified as FLR. Such CMIs shall be released directly to
the RO or OU upon agency submission to DBM of a Special Budget
Request (SBR), supported by the complete details of the activities or
projects and the corresponding cost up to the lowest level, i.e.,
provincial, city or municipal, as the case may be (Section 72, GPs of
the FY 2022 GAA).
t

3.11 Release of funds, i.e., Obligational Authority and Disbursement Authority, shall be
in accordance with the targets set forth under the DBM-evaluated Budget
Execution Documents (BEDs) consistent with the FY 2022 GAA, prepared

2 Executive Order No. 292 dated July 25,1987 (Instituting the "Administrative Code Of 1987")

4
 and submitted by agencies/OU through the Unified Reporting System (URS)
pursuant to the provisions of DBM Circular Letter (CL) No. 2021-113.

All concerned are reminded of the following relative to BEDs:

3.11.1 The Financial Plan (FP) or BED No. 1 shall be the basis for determining
the obligation program of the agency, classifying the agency/OUs
budgetary items into a) "For Comprehensive Release (FCR)"; and b) "For
Later Release (FLR)".

3.11.2 The Physical Plan (PP) or BED No. 2 shall serve as the overall physical
plan of the department/agency/operating units (OUs) and shall be
updated to include increased targets for increases in the amounts of
existing PAPs from President's Budget to GAA.

3.11.3 The Monthly Disbursement Program (MDP) or BED No. 3 shall serve
as basis for the DBM's release of disbursement authorities including the
comprehensive Notice of Cash Allocation (NCA). The MDP shall likewise
be prepared for later requirements of the agency for its regular operating
requirements, in addition to those to be covered by other disbursement
authorities (tax remittance advice [TRA], non-cash availment authority
[NCAA], cash disbursement ceiling [CDC]).

3.11.3.1 Additional NCAs, as may be required, shall be issued for items

classified under FLR, as well as those pertaining to Prior Year's
obligations (i.e., accounts payable/due and demandable
obligations/not yet due and demandable obligations).

3.11.3.2 Other disbursement authorities, i.e., TRA, NCAA, CDC, may be

issued for agency specific budgets.

3.12 Agencies are reminded that agency-specific funds for the purchase of motor
vehicles for FY 2022 as reflected in the FY 2022 GAA shall no longer require the
issuance of Authority to Purchase Motor Vehicles (APMV) by the DBM. This
policy covers motor vehicles with the same number, specifications, unit costs and
intended use/user indicated in the confirmation letters issued by the DBM to the
agencies during budget preparation.

3.13 Pursuant to Section 78, GPs of the FY 2022 GAA, the general rule is that
departments, bureaus and offices of the National Government, including
Constitutional Offices enjoying fiscal autonomy and SUCs shall spend their
respective programmed appropriations under the FY 2022 GAA.

However, in exceptional circumstances, issued allotments within an activity

or project may be modified upon timely submission of reports by all offices
concerned, and subject to approval by the designated authority. The existence of

3 DBM CL 2021-11 dated October 28, 2021 (Guidelines for the Preparation and Reiteration of the Prescribed Submission of the Annual Budget Execution
Plans Coveting the Fiscal Year (FY) 2022 Budget)
 an allotrnent class or object of expenditure in the recipient P/A/P is not necessary
for purposes of modification.

3.13.1 Modification refers to any change within an activity or project, change

in operating unit, allotment class, object of expenditure, within an
agency or department budget. It may likewise cover Speciai Purpose
Funds (SPFs) as reflected in the FY 2022 GAA. This also covers the use
of appropriations for authorized purposes under the Unprogrammed
Appropriation to cover any deficiency in a purpose.

3.13.2 Modification covering allotments for MODE and CO shall not entail any
increase in the total amount appropriated for an activity or project. In
the case of programs with several activities, modification may be done
only within each activity.

3.13.3 The following expenditures to cover PS requirements, are not considered

as a form of modification:

a. Payment of deficiencies in authorized personnel benefits. A

department or agency may utilize any available allotment for PS
within said department or agency, subject to Section 53 of the
GPs of the FY 2022 GAA.

b. Payment of magna carta benefits for which the DBM guidelines

relative thereto shall be observed, pursuant to Section 58, GPs of
FY 2022 GAA.

c. Payment of Collective Negotiation Agreement (CNA) Incentive shail

be subject to Section 79 of GPs of the FY 2022 GAA.

3.14 The foliowing guidelines shall be observed in the use of savings for purposes of
Augmentation of deficient items of appropriations for P/A/Ps in the FY 2022
GAA:

3.14.1 An item of appropriation refers to the amount appropriated for an activity

or project authorized in the FY 2022 GAA. Section 76 of GPs of the FY
2022 GAA. A deficiency in an item of appropriation occurs when
following conditions exist:

a. Unforeseen modifications or adjustments in the P/A/P; or

b. Re-assessment in the use, prioritization and/or distribution of

resources.

3.14.2 Augmentation is subject to the approval by the constitutional officers

identified under Section 74, GPs of the FY 2022 GAA as well as item 5.2
of this NBC.
 3.14.3 Savings as defined under Section 75, GPs of the FY 2022 GAA, refer
to portions or balances of any released appropriations in the FY 2022
GAA which have not been obligated as a result of any of the following
conditions:

a. Completion, final discontinuance, or abandonment of a program,

activity or project for which the appropriation is authorized.

b. Implementation of measures resulting in improved systems and

efficiencies and thus enabled an agency to meet and deliver the
required or planned targets, programs and services approved in the
FY 2022 GAA at a lesser cost.

However, in case the declaration of savings is based on final

discontinuance or abandonment, such discontinued or abandoned
program, activity or project cannot be proposed for funding in the next
two (2) fiscal years, i.e., 2023 and 2024.

3.14.4 Savings may be used to augment actual deficiency/ies incurred

for the current year in any existing item activity or project within the
respective appropriations of each authorized constitutional officer cited
in Section 74 GPs of the FY 2022 GAA. The existence of an activity or
project regardless of the availability of allotment class/es is sufficient for
the purpose of augmentation (Section 76, GPs FY 2022 of the GAA).

In the use of savings, priority shall be given to the payment of

compensation, mid-year and year-end bonus and cash gift, retirement
gratuity, terminal leave benefits, old-age pension of veterans, and other
personnel benefits authorized by law and under the FY 2022 GAA, as
well as the implementation of priority projects or activities covered in the
FY 2022 GAA (Section 77, GPs of the FY 2022 GAA).

3.15 Consistent with the policy of adopting an annual cash-based budget, the annual
financial requirements of departments/agencies to cover their implementation-
ready programs and projects have been fully provided. Hence,
departments/agencies are no longer authorized to avail of excess income.

3.16 Nevertheless, the following agencies which are included in Table B.15 of the FY
2022 BESF are authorized by specific laws to utilize income collections
accruing to their Special Accounts in the General Fund (SAGFs) to cover
their operating requirements. With this funding source, these specific agencies are
provided minimal budget support in the GAA since their requirements are charged
against their income collection, subject to the usual budgeting rules and
regulations:

3.16.1 DOF — Insurance Commission — PS, MOOE and CO;

3.16.2 DOTr — Office for Transportation Security — PS and MOOE;

3.16.3 DOLE — Office of the Secretary (Verification Fees) — MOOE; and

 3:16.4 DOJ — Land Registration Authority - MOOE

3.17 Agencies, pursuant to their respective mandates, are authorized to collect fees for
the conduct of the following specific activities and use said collections to defray
the cost of the future activities of a similar nature:

3.17.1 Seminar, conference, training and oath-taking activities from

government and private agency participants (Section 12, GPs of the FY
2022 GAA).

3.17.2 Sale of official publications, to defray the cost of preparing, printing and
disseminating such official publications (Section 13, GPs of the FY 2022
GAA).

The proceeds in excess of the actual cost of implementing these aforecited

activities shall be deposited with the National Treasury as income of the General
Fund, pursuant to Section 44, Chapter 5, Book VI of E.O. No. 292.

3.18 Agencies which do not have sufficient appropriations in their budget for the
purpose, i.e., conduct of seminar, conference, training and oath taking activities
and/or sale of official publications, may use such proceeds subject to budgeting,
accounting, and auditing rules and regulations.

3.19 Accountabilities/Timelines

3.19.1 November 15, 2022 - deadline for submission to the DBM of agency
request/s for any release requiring issuance of SAROs/ additional NCAs.

3.19.2 Within 30 days after the end of each quarter - submission of the
Budget and Financial Accountability Reports (BFARs) by program, activity
or project, pursuant to Section 99, GPs of the FY 2022 GAA.

3.19.3 On or before the tenth day of the month immediately following

the covered period:

3.19.3.1 The Monthly Report on Appropriations, Allotments,

Obligations and Disbursements, should be submitted to
DBM, in the format prescribed under DBM CL No. 2015-9;
and

3.19.3.2 Monthly Report of Disbursements (MRD), using Financial

Accountability Report (FAR) No. 4, as prescribed under COA-
DBM Joint Circular No. 2019-1 dated January 1, 2019 due on
or before the 10th day of the month following the last month
of the covered reporting period.
 3.19.4 The DBM shall conduct Agency Performance Reviews (APRs)
prescribed under DBM CL No. 2018-134 to determine the level of
performance of each agency in terms of physical outputs; as well as
actual expenditures incurred in the productions/deiivery of
goods/services to the pubiic vis-a-vis targets for the same period. The
result of APR will be used as one of the bases for determining the
necessity of any of the following:

3.19.4.1 Release of the balance of the FLR items under the FY 2022
Programmed Appropriations;

3.19.4.2 Additional release from SPFs;

3.19.4.3 Approval of requests for modification in allotment; or

3.19.4.4 Revision of plans/targets as reflected in the DBM-evaluated

BEDS submitted by agencies.

Two (2) APRS; mid-year and end-year; shall be conducted by the DBM
using the following documents, among others:

a. BFARs as of June 30 and as of December 31 encoded through the

URS;

b. APR report; and

c. Summary of findings and overall agency recommendation.

3.19.5 Departments/agencies are required to implement the transparency

provisions pursuant to Sections 11,101 and 102, GPs of FY 2022 GAA
and Executive Order (EO) No. 2, s. 2016 (Operationalizing in the
Executive Branch the People's Constitutional Right to Information and
the State Policies to Full Public Disclosure and Transparency in the Public
Service and Providing Guidelines Therefor).

4.0 SPECIFIC GUIDELINES

4.1 Obligational Authorities shall be released pursuant to the following procedures:

4.1.1 GAA items shall be classified into FCR and FLR.

4.1.1.1 Existing P/A/Ps in the President's budget which remained

unchanged in the GAA shall be classified as FCR. An increase
in allocation for P/A/Ps in the GAA shall still be considered as
FCR, subject to submission of revised/updated agency
performance targets.

4 DBM CL 2018-13 dated November 22, 2018 (Guidelines for the Conduct of Agency Performance Reviews (APRs) and Evaluation Thereof Effective FY
2018 and Onwards)
 4.1.1.2 In general, new P/A/Ps shall be considered as FLR. However,
it must be emphasized that changes between the NEP vis-a-
vis GAA does not automatically imply that the P/A/P is a new
item.

An FLR item is not considered new if it is part of a previous

P/A/P or existing structure, which although not part of the
NEP, has been provided funding under the GAA for its
continuation and/or expansion.

4.1.1.3 An SBR together with the necessary supporting documents

is required for the release of FLR items. In addition, the
agency is required to submit a duly signed certification in the
event that the P/A/P being requested for release, is ongoing
or an expansion of a previous P/A/P.

4.1.1.4 Completely new items of appropriations which the agency

cannot certify as ongoing shall be subject to the approval by
the Office of the President pursuant to the President's Veto
Message (Item V, New Budgetary Items, page 822, RA. No.
11639).

4.1.2 The list of GAA Items fCR through GAAAO is summarized under
Schedule I. On the other hand, the list of Expenditure Items FLR
through SARO/GARO is summarized under Schedule II. Details of the
aforecited schedules are enumerated in the following annexes:

4.1.2.1 Schedule I - FCR

o Annex A - Summary of Appropriations by Agency under

FCR.

o Annex A-1 - Summary of Funds for Direct Release to

Implementing Agencies under FCR.

o Annex A-2 - Summary of Funds for Direct Release to

Implementing Agencies under FCR, from GAA to
Automatic Appropriations.

4.1.2.2 Schedule II- FLR

o Annex B - Summary of Appropriations by Agency by

Program, Activity and Project under FLR.

o Annex B-1 - Summary Funds for Direct Release to

Implementing Agencies under FLR.

When covered with the pertinent special provisions in the

GAA, appropriations under an agency which are
authorized to be released directly to another, as

10
 implementing agency, shall no longer require the
issuance of SARO/s for memo entries to cover the
release of said appropriations.

o Annex C - Summary of Automatic Appropriations by

Agency - Full Year Allocation for Automatic Release
through GARO for RLIP.

o Annex D - Summary of Automatic Appropriations by

Agency - Release through SARO upon submission of a
Special Budget Request.

4.2 Disbursement Authorization Documents

4.2.1 Notice of Cash Allocation (NCAs)

4.2.1.1 An initial comprehensive NCA has been issued directly to

the OUs covering one quarter (January to March) operating
cash requirements including RLIP, but excluding provision
for prior years' obligations (due and demandable accounts
payable and not yet due and demandable obligations).

4.2.1.2 Succeeding NCAs shall be issued to cover the

requirements for the second quarter, i.e., April 2022 to June
2022, consistent with the full-year DBM-evaluated MDP. This
subsequent NCA release shall be subject to the
submission of Monthly Report of Disbursement (FAR
No. 4) as of end of February 28, 2022.

4.2.1.3 Additional NCAs shall be issued for the following:

• Second semester requirement i.e., July to December

2022, subject to the submission of Monthly Report
of Disbursement (FAR No. 4) as May 31, 2022;

• Items classified under FLR (including, but not limited to,

releases from SPFs, CMIs without details, other
automatically appropriated items, and availment of
Working fund), as may be required, subject to
determination by the DBM of NCA balances under the
agencies' MDS Sub-Accounts.

4.2.1.4 All agencies are advised to use the Advice to Debit

Account (ADA) to settle payables pursuant to the updated
guidelines provided under DBM CL 2018-145.

3 DBM CL No. 2019-3 dated January 4, 2019 (Updated Guidelines In TTie Implementation Of The Modified Direct Scheme (MDPS) Due Creditors/Payees Of
All National Government Agencies)

11
 In cases where the use of ADA is impracticable, agencies are
reminded that the validity of MDS checks has been shortened
from six (6) months to three (3) months from date of issue,
pursuant to Treasury Circular No. 03-20176 dated October
20, 2017.

4.2.1.5 Pursuant to EO No. 87 and COA-DBM JC No. 1, s. 2021, all

Accounts Payables for FY 2018 and 2019 shall be reverted to
the Accumulated Surplus/(Deficit) on or before the end of
2022.

4.2.1.6 Crediting and Validity Periods for NCAs

o NCAs shall be issued to the three (3) Modified

Disbursement System - Government Servicing, Banks
(MDS-GSBs), namely. Land Bank of the Philippines
(LBP), Development Bank of the Philippines (DBP) and
Philippine Veterans Bank (PVB).

o MDS sub-accounts (i.e., regular MDS sub-account for

regular operating requirements including existing foreign
assisted projects (FAPs), Retirement Gratuity and
Terminal Leave (RG/TL) benefits, and Accounts Payable;
MDS sub-accounts for new FAPs (loan or grant
assisted) negotiated starting May lr 2021; and
another MDS sub-account for Trust Receipts) shall be
maintained at the three MDS-GSBs, with the following
periods of validity for NCAs issued and credited to:

• The Regular MDS Sub-Accounts of agencies/OUs

for their regular operations, retirement
gratuity/terminal leave benefits, existing foreign
loans/grants and accounts payable (A/Ps) shall be
valid until the last working day of the 3rd month of
the quarter covered, pursuant to DBM CL No. 2019-
37.

• For the comprehensively released NCAs, covering

the quarterly cash requirements, the specific
monthly allocation shall be credited on the first
working day of each month.

• For other/additional NCAs, the amount indicated

shall be credited on the date of issuance of such
NCA, and on the first working day of the succeeding
months (If any).

6 Treasury Orcular No. 03-2017 dated October 20, 2017 (Reduction in the Expiry Period of MDS Check from Six (6) Months to Three (3) Months from Date
of Issue)
7 DEIM CL No. 2019-3 dated January 4, 2019 (Guidelines Covering the Crediting and Validity of NCA for Reguiar MDS Sub-Accounts Effective First Quarter
of FY 2019 and Onwards)

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 • NCAs to be issued for crediting to MDS Sub-
Accounts opened for new FAPs pursuant to
NBC 581 and maintained by agencies specifically
for such loans and grants shall be valid from issue
date until the last working day of the year, or
December 31, 2022.

• NCAs for crediting to the Trust MDS Sub-

Accounts on the issue date of the NCA, shall be
valid until the last working day of the year, or
December 31, 2022.

4.2.1.7 Under the Common Fund System, to optimize the use of the
available NCAs under the Regular NIDS Sub-Account, NCAs
released to agencies under this account can be used to cover
payment of both current year and prior years’ A/Ps of all
creditors (external and internal). It is understood that
payment of mandatories, i.e., PS, MODE, and CO
requirements, shall take precedence over A/Ps in the
utilization of the NCAs received. Only when the mandatory
requirements are satisfied, can the payment of A/Ps be
charged against the available NCAs.

4.2.2 Other Disbursement Authorities issued during the year shall be

valid from date of issuance until the last working day of the
year, or December 31, 2022.

4.2.2.1 The Non-Cash Availment Authority (NCAA) for the cash

equivalent of grant/loan proceeds availed of through direct
payment/supplier's credit/constructive cash, shall be issued
by DBM subject to agency compliance with the conditions
specified under DBM-COA-DOF JC 2-978, CL No. 2003-129,
and NBC No. 581 dated December 27, 2020. Agencies shall
ensure that requests for the issuance of NCAA submitted to
DBM are supported by the following documentary
requirements:

o Agency letter of request for the release of NCAA;

o Photocopy of the Application for Withdrawal or Request

for Disbursement (RFD);

o Certified list of allotments and corresponding obligations

incurred for the specific foreign loan/grant assisted
project against which the disbursements shall be
applied;

8 DBM-COA-DOF 3C No. 2-97 dated March 21, 1997 (Revised and Updated Budgeting and Accounting Guidelines and Procedures Applicable to FAPs
Implemented by NGAs and GOCCs)
9 DBM CL No. 2003-12 dated December 4, 2003 (Guidelines on the Availment of Foreign Loan Proceeds In-Kind Superseding Circular Letter No. 2003-91

13
 o Details of disbursements expressed both in peso and
equivalent foreign currency as indicated in the
application;

o Certification from BTr on the peso value of the amount

paid to the supplier/contractor/consultant; and

o Certificate of Acceptance when the project is completed.

To avoid unnecessary build-up in A/Ps, and to ensure

consistency in the recording of loan/grant availments by
both the Bureau of the Treasury (BTr) and the books of the
availing agency and the DBM, implementing agencies shall
regularly coordinate with the BTr on the actual availments to
be reflected in the BTr's monthly Cash Operations Report
and with the DBM for the issuance of the corresponding
NCAA for liquidation purposes.

4.2.2.2 The Cash Disbursement Ceiling (CDC) is issued by DBM

to the Department of the Foreign Affairs (DFA) and
Department of Labor and Employment (DOLE) to utilize their
income collected/retained by the Foreign Service Posts
(FSPs) to cover their operating requirements, but not to
exceed the released allotment to the said post. The
agency shall submit a request for issuance of CDC,
supported with the following:

o Accountability reports as consolidated by the DFA or

DOLE Home Office i.e., FSP Monthly Report of Income;

o BTr certification on actual income collected; and

o Certified list of allotments and corresponding obligations

incurred for the specific funds against which the
disbursements shall be applied.

FSPs shall request for the issuance of CDCs for the utilization
of retained income from DBM, as support to their reported
retained income, to ensure consistency in the books of the
agency and DBM, as well as BTr's monthly Cash Operations
Report.

14
5.0 OTHER PROCEDURAL GUIDELINES

5.1 Modification in the Allotments Issued

5.1.1 The modification of allotments shall be:

5.1.1.1 Supported with an accomplished Modification Advice

Form (MAF) (Attachment 1) duly signed by the approving
authority or his designated representative cited in item 5.1.3
hereof.

5.1.1.2 Reflected in the appropriate Registry of Allotments and

Obligations.

5.1.1.3 Reported in the accountability reports to be submitted to

DBM, i.e., SAAODB as adjustments to allotments. Also, the
corresponding adjustments in targets and accomplishments
as a result of modification shall be reflected in the Physical
Report of Operation.

5.1.2 Agency requests to be submitted to DBM shall be supported with the

following documents:

5.1.2.1 Justification for the proposed modification;

5.1.2.2 Certification of actual Deficiency and Sources of Funds

signed by the Budget Officer, identifying the affected P/A/Ps
and objects of Expenditure ("From" and To") -
(Attachment 2);

5.1.2.3 Latest SAAODB; and

5.1.2.4 Financial Plan (Bed No. 1) and Physical Plan (BED no. 2), as
revised.

5.1.3 The specific approving authority for the modification(s) shall be as

follows:

5.1.3.1 The Heads of Agencies for:

o Change in the details of an activity or project without

changing its nature and within the same operating unit;

o Change in the object of expenditure (Salaries and

Wages, Travelling Expenses, or Investment Outlays)
within an ailotment class (PS, MOOE, or CO); and

o Use of MOOE for the payment of CNA incentive,

during the validity of appropriations (Section 79 (d).

15
 GPs of the FY 2022 GAA) as an exemption of the
modification of allotment where the DBM is the
approving authority in case of change in allotment class.

5.1.3.2 DBM:

o From one allotment class to another;

o From one operating unit to another;

o Within a special purpose fund;

o For the payment of newly-authorized Magna Carta

Benefits not otherwise appropriated; and

o Within the purpose authorized under the Unprogrammed

Appropriations.

5.1.3.3 The President of the Philippines for the payment of

intelligence funds within the Executive Branch.

5.2 Use of Savings for Augmentation of Deficient P/A/ Ps

The use of savings to augment deficient P/A/Ps shall be subject to approval by the
authorized constitutional officers cited in Section 74, GPs of the FY 2022 GAA, as
follows:

5.2.1 The President of the Philippines for the Departments/Agencies under the
Executive Branch;

5.2.2 The President of the Senate and the Speaker of the House, for the
Congress of the Philippines;

5.2.3 The Chief Justice of the Supreme Court, for the Judiciary; and

5.2.4 Heads of the Civil Service Commission (CSC), Commission on Audit

(COA), and Commission on Elections (COMELEC).

5.3 Use of PS Appropriations

5.3.1 Department or Agency Specific Appropriations for PS

5.3.1.1 Consistent with Section 53, GPs of the FY 2022 GAA, the
appropriations for PS shall be used for the payment of
Authorized Personnel Benefits to be given to National
Government employees, to wit;

o Basic Salaries, including Step Increments;

16
 standard Allowances and Benefits, which shall be limited
to the following:
• Personnel Economic Relief Allowance;
• Uniform or Clothing Allowance; and
• Mid-year Bonus, Year-End Bonus and Cash Gift

Specific-Purpose Ailowances and Benefits, iimited to the

foilowing:
Representation and Transportation Ailowances;
Per Diem;
Honoraria;
Night-Shift Differential;
Overtime Pay;
Subsistence Aliowance;
Hazard Pay;
Speciai Counsel Allowance; and
Other ailowances and benefits as may be
authorized by law or the President of the
Philippines.

Incentives, which refer to the following:

Loyalty Incentive
Anniversary Bonus
Productivity Enhancement Incentive
Performance-Based Bonus
Other existing benefits as may be categorized by
DBM as incentives

o Magna Carta Benefits as authorized by law and its

Implementing Rules and Regulations;

o Personnel benefits for military and uniformed personnel

as authorized by law or the President of the Philippines;
and

o Overseas and other allowances for government

personnel stationed abroad.

5.3.2 Available PS allotments released to the department or agency at the

start of the year shall be used for the (i) original purpose of
appropriations; and (ii) to cover PS deficiencies in Authorized Personnel
Benefits such as:

o Deficiency in Magna Carta Benefits, subject to approval by the

DBM Secretary for: (i) additional recipients arising from newly
issued certifications or hiring of new employees; (ii) valid
adjustments due to inadvertent omission or erroneous encoding
In the System;

17
 o Award of Back Pay for cases with final and executory decision of
a competent authority such as courts, CSC, and COA;

o Deficiency in specific-purpose allowances and benefits, such as

Overtime Pay, Honoraria, and Representation and Transportation
Allowance, among others, subject to existing conditions in the
grant of such benefits;

o Any deficiency in authorized compensation and personnel benefits

of civilian employees and Military/Uniformed Personnel that may
be determined during the year. Since PS benefits are mandatory
in nature, actual services rendered or benefits allowed in
prior years shall not be categorized as unbooked
obligations; and

o Deficiency in the provision for the upgrading of faculty positions

up to the 8th cycle pursuant to NBC No. 461 dated June 1, 199810.

5.3.3 The available PS allotments referred under item 5.3.2 may be realized
from unspent compensation of employees due to the following:

5.3.3.1 Incurrence of leaves of absence without pay;

5.3.3.2 Vacant positions on account of termination, resignation,

transfer, retirement or separation;

5.3.3.3 Delay in the actual assumption of duty from the date of

appointment;

5.3.3.4 Suspension and other disciplinary sanctions;

5.3.3.5 Erroneous computations of PS benefits; or

5.3.3.6 Other similar instances

5.3.4 The following limitations in the use of available released PS

allotments/appropriations shall be observed:

5.3.4.1 Released allotments which cannot be reallocated to other

object of expenditures under PS:

o Retirement and Life Insurance Premium (RLIP); and

o Special Account in the General Funds (SAGFs), except

if expressly authorized in the law creating them.

10 DBM NBC No. 461 dated June 1,1998 (Revising and Updating the Compensation and Position Qassification Plan for Faculty Positions Embodied In
National Compensation Circular No. 69}

18
 53.4.2 Available released allotments for PS cannot be used to pay
CNA Incentives.

5.3.5 In instances where an insufficiency in PS occurs and frontloading shall

be resorted to, available PS allotments which have been
comprehensively released may be utilized subject to approval of
Agency Head, based on the following:

5.3.5.1 Advice for Use of PS Allotment (APSA) (Attachment

3) duly accomplished and signed by the Agency Head or his
designated representative. In the case of SUCs, the
approving authority shall be the President of SUC as Agency
Head, unless approval of the Board is necessary as required
in the respective charter of SUCs; and

5.3.5.2 Registry of Allotments and Obligations for PS

(RAOPS) reflecting said adjustments and reported in the
accountability reports to be submitted to DBM, i.e., SAAODB.

6.0 Pursuant to DBM-DICT-NEDA Joint Memorandum Circular (JMC) No. 2021-01 dated
September 27, 2021, the DBM shall have the authority to evaluate/recommend/
approve ICT-related budgetary requests, subject to provisions of latest applicable
budgetary issuances and such frameworks that DICT may promulgate.

7.0 Agency-specific funds may be used for the purchase of motor vehicles for FY 2022
as reflected in the FY 2022 GAA, provided such vehicles have already been evaluated
and included in the Confirmation Letter issued by the DBM to agencies during the
preparation of the FY 2022 budget. The said confirmation letter shall serve as the
Authority to Purchase Motor Vehicle (APMV) issued by the DBM, only if the
same number of vehicles as approved in the letter, and if such vehicles conform with
the terms and conditions laid out under Administrative Order No. 1411 as
implemented by Budget Circular 2019-212.

8.0 For purposes of agencies' entering into multi-year contracts, the issuance of a Multi-
Year Contractual Authority (MYCA) or an Equivalent authority may be required or
prescribed by the DBM. A MYCA is an authority issued by the DBM to agencies,
covering the full contract cost, for the procurement of multi-year projects (MYPs).
This shall be used as the basis in the certification of availability of funds (CAF)
required prior to contract execution.

8.1 MYCAs may be required for single-year projects which do not cover a calendar
year but, by design, necessitates implementation covering two fiscal years.

8.2 In the case of recurring projects, such as, but not limited to, janitorial and
security services, supply of drinking water, telecommunications requirements,
rental of office and equipment, and lease-purchase agreements, the following
options are available for government agencies:

11 Office of the President AO No. 14 dated December 10, 2018 (Consolidating and Rationalizing die Rules on the Acquisition of Government Vehicles Adopting
a Centralized System of Procurement There for. and for Other Purposes)
12 DBM BC 2019-2 (Guidelines Implementing Certain Provisions of AO No. 14, S. 2018)

19
 8.2.1 Secure a MYCA or an equivalent authority; or

8.2.2 Renew the ongoing contract to not more than one year, subject to a
favorable assessment or evaluation of contractor's performance, but in
no case shall the total contract renewal exceed two years

8.3 For MYPs, the Certification of Availability of Funds shall be issued annually based
on the budget for the year.

8.4 For MYPs with no funding requirement on any given year, instead of the CAF,
the Chief Accountant shall issue a certification that no fund is needed for the
year, as indicated in the approved MYCA.

8.5 For foreign-assisted projects funded by foreign loans, the issuance of a MYCA
is not necessary (Section 31, GPs of FY 2022 GAA).

8.6 For multi-year PPP projects with government undertakings, a Letter of

Commitment (LOC) shall be issued (Section 31, GPs of FY 2022 GAA).

9.0 SEPARABILITY CLAUSE

If any part or provision of this Circular is held invalid or unconstitutional, other

provisions not affected thereby shall remain in force and effect.

10.0 REPEALING CLAUSE

All provisions of existing circulars and other issuances inconsistent with this Circular
are hereby rescinded/repealed and/or modified accordingly.

11.0 EFFECTIVITY

This Circular shall take effect immediately.

TINA ROSE MARIE L. CANDA

Officer-in-Charge, DBM

20
 REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF BUDGET AND MANAGEMENT
GENERAL SOLANO STREET, SAN MIGUEL, MANILA

Schedule I of NBC No. 587 dated January 3, 2022

GAA Items For Comprehensive Release (FCR) through GAA as Allotment Order

1.0 For Personnel Services (PS);

1.1 Release of the full amount of the approved budget per GAA pertaining to filled
positions of NGAs.

1.2 Lump-sum for PS under Agency Specific Budget:

1.2.1 Provision for unfilled positions:

1.2.1.1 For CFAG agencies - 100%; and

1.2.1.2 For the rest of NGAs - the deficiency to cover the full-
yeap requirement of unfunded vacant positions under the
FY 2022 GAA which were filled from June 2021 onwards.

PS allotments comprehensively released may be used by

the agency to fund the filling up of vacant positions
during the year. In case of insufficiency of PS allotments,
agencies may later submit to DBM, request(s) for release
of additional allotments, to be charged against the
Miscellaneous Personnel Benefits Fund (MPBF).

1.2.2 Terminal Leave/Retirement Gratuity (TL/RG) of compulsory retirees

of departments/agencies.

1.2.3 The following lump-sum funds under the budget of DepEd shall also
be comprehensively released, the obligation of which shall be subject
- to compliance with certain documentary requirements:

1.2.3.1 Equivalent Record Forms (ERFs);

1.2.3.2 Conversion to Master Teacher (MT) Positions;

1.2.3.3 Reclassification of Positions; and

1.2.3.4 Special Hardship Allowance, net of budget provision for

increase.

21
2.0 For Maintenance and Other Operating Expenses (MOOE) (including
Financial Expenses [FinEx]) and Capital Outlays (CO)

2.1 Release of the full amount categorized under FCR consistent with the agency-
formulated Financial Plan (FP). This includes provisions for the following,
among others:

2.1.1 Lumpsum for Chalk Allowance and Repair and Maintenance of School
Buildings under MOOE of the budget of the DepEd;

2.1.2 CMIs of agencies concerned, if already disaggregated per agency FP;

2.1.3 Farm to Market Roads of DA categorized as FCR;

2.1.4 Quick Response Fund (QRF) under the budgets of (i) DA - OSEC; (ii)
DepEd - OSEC; (iii) DOH - OSEC; (iv) DILG - BFP; (v) DILG - PNP;
(Vi) DND - OCD; (vii) DPWH - OSEC and (viii) DSWD - OSEC;

2.1.5 Provisions for Supplies, Materials and Office Equipment, subject to

submission of FY 2022 Annual Procurement Plan for Common-Use
Supplies and Equipment (APP-CSE) and conditions in incurring
obligations per DBM CL No. 2013-1413;

2.1.6 The following funds under the budget of specific

departments/agencies shall also be released comprehensively, the
obligation of which shall be subject to compliance with certain
documentary requirements;

2.1.6.1 Communication equipment, subject to prior clearance from

the National Telecommunications Commission;

2.1.6.2 Firearms, subject to prior approval of the Philippine

National Police;

2.1.6.3 Research and development projects in agriculture and

fisheries, natural, technological and engineering sciences,
consistent with the DA's or DOST's respective master plans
on the priority research programs and projects to be
implemented;

2.1.6.4 Books to be procured by agencies, other than schools and

the National Library of the Philippines (NLP), exceeding the
authorized five (5) copies per title, subject to prior approval
from DBM;

2.1.6.5 On-going Foreign-Assisted Projects (FAPs), subject to

compliance with certain conditionalities;

13 DBM CL No. 2013-14 dated November 29, 2013 (Reiterating the Submission of Annual Procurement Plan for Common use Supplies and Equipment
(APP-CSE)

22
 2.1.6.6 Grants, subsidies and contributions - subject to submission
of details indicating the purpose, amount for each
beneficiary, and the complete list of recipients, among
others;

2.1.6.7 ICT-related expenditures, subject to the endorsed

Information Systems Strategic Plan (ISSP) from the
Department of Information and Communications
Technology (DICT); and

2.1.6.8 P/A/Ps in the President's Budget (NEP) with increased

allocation in the GAA, duly supported with revised/updated
agency performance targets.

2.1 Contributions to International Organizations under MODE, in compliance with

various Agreements with the Philippines as a signatory.

23
 REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF BUDGET AND MANAGEMENT
, GENERAL SOLANO STREET, SAN MIGUEL, MANILA

t. * Schedule 11 of NBC No. 587 dated January 3, 2022

Expenditure Items For Later Release through SARO/GARO

1.0 Issuance of SARO/GARO for the following appropriation items Not

Requiring Submission of Special Budget Request (SBR):

1.1 GAA items through SARO:

1.1.1 Budgetary support (i.e., operating subsidy) to the following heavily-

subsidized GOCC equivalent to the full year subsidy appropriation:

1.1.1.1 Philippine Rice Research Institute (PRRI);

1.1.1.2 Lung Center of the Philippines (LCP);

1.1.1.3 National Kidney &. Transplant Institute (NKTI);

1.1.1.4 Philippine Children's Medical Center (PCMC);

1.1.1.5 Philippine Heart Center (PHC);

1.1.1.6 Philippine Institute of Traditional and Alternative Health

Care (PITAHC);

1.1.1.7 Center for International Trade Expositions and Missions

(CITEM);

1.1.1.8 Aurora Pacific Economic Zone and Freeport Authority

(APECO);

1.1.1.9 Light Rail Transit Authority (LRTA);

1.1.1.10 Philippine Institute for Development Studies (PIDS);

1.1.1.11 People's Television Network, Inc. (PTNI);

1.1.1.12 Intercontinental Broadcasting Channel (IBC);

(
1.1.1.13 Cultural Center of the Philippines (CCP);

1.1.1.14 National Irrigation Administration (NIA);

1.1.1.15 Philippine Coconut Authority (PCA);

24
 1.1.1.16 Southern Philippines Development Authority (SPDA);

1.1.1.17 Zamboanga City Special Economic Zone Authority

(ZCSEZA);

1.1.1.18 Philippine Center for Economic Development (PCED);

1.1.1.19 National Dairy Authority (NDA);

1.1.1.20 National Tobacco Administration (NTA);

1.1.1.21 Credit, Information Corporation (CIC);

1.1.1.22 Philippine Tax Academy (PTA);

1.1.1.23 Philippine Postal Corporation (PHLPost);

1.1.1.24 Tourism Promotions Board (TPB);

1.1.1.25 ( Tourism Infrastructure and Enterprise Zone Authority

(TIEZA); and

1.1.1.26 Development Academy of the Philippines (DAP).

1.1.2 Initial release of one-fourth of the full year program for pension for
the following, chargeable against the PGF;

1.1.2.1 AFP retirees and war/military veterans of the DND-GHQ

and PVAO;

1.1.2.2 Uniformed personnel of DILG (BFP, BJMP, PNP including

Philippine Constabulary - Integrated National Police [PC-
INP]);

1.1.2.3 DENR-NAMRIA;

1.1.2.4 DOTr-PCG; and

1.1.2.5 Other retirees whosepensions are funded by the national

government, i.e.,OEO-ERC, DOLE-NLRC, DOLE-PRC.

1.1.3 Allocation for LGUs such as MMDA.

1.2 Automatically Appropriated Items:

Full Year Allocation

1.2.1 RLIP through GARO for all agencies.

25
 1.2.2 Through SARO for:

1.2.2.1 National Tax Allotment (NTA) of provinces, cities,

municipalities, barangays;

1.2.2.2 Annual Block Grant for the Bangsamoro Autonomous

Region in Musiim Mindanao (BARMM);

1.2.2.3 Pensions of Former Presidents or their Surviving Spouses;

and

1.2.2.4 Additional programming on account of foreign grants.

2.0 Issuance of SARO for the following appropriation items Requiring Submission of
SBR supported with separate/detailed FP, MDP, physical plan and other
documentary requirements to DBM.

2.1 GAA items

2.1.1 For CMIs or lump-sum appropriations within the Agency Specific

Budgets, the agencies concerned shall submit the SBR supported with
the list of specific OUs which shall implement the project and amount
allocated to each OU including the complete details of the activities
or projects (i.e., Basic Educational Facilities, Supplemental Feeding
Program; Higher Education Support Program due to lack of details,
etc.), and the corresponding cost up to the lowest level, i.e.,
provincial, city or municipal, as the case may be (Section 72, GPs of
the FY 2022 GAA).

2.1.2 ROW Acquisitions, Engagement of Independent Consultants,

Variation Orders, Cash Subsidy, Feasibility Studies, Advance Works
Improvements, ROW expenses through the PPP Strategic Support
Fund.

2.1.3 Free Higher Education for State Universities and Colleges, subject to
the sue submission of the program of receipts and expenditures
based on the actual number of enrollees and fees authorized under
RA No. 10931 and duly approved by the board of regents/trustees of
sues.
2.1.4 Budgetary items in the Special Provisions of National Government
Agencies, i.e.. Land Owners Compensation under DAR to be released
to the Land Bank of the Philippines thru the BTr.

2.1.5 Operating requirements for State Universities and Colleges (SUCs)

under BARMM, i.e., Cotabato State University; Adiong Memorial
Polytechnic State College; Sulu State College; and Tawi-Tawi
Regional Agricultural College located in the BARMM region, except
for new programs/activities/projects under these specific

26
 SUCs which shall be subject to the approval by the Office of
the President.

2.1.6 Considered as new P/A/Ps which are not part of the P/A/Ps or existing
structure, although not part of the NEP, has been provided funding
under the GAA for its continuation and/or expansion, subject to the
agency submission of duly signed certification that the
P/A/P being requested for release is ongoing or expansion
of a previous P/A/P.

2.1.7 Completely new items of appropriations which the agency cannot

certify as ongoing, subject to the approval by the Office of the
President.

2.1.8 Eligible expenditures for charging against multi-user SPFs (e.g.

Contingent Fund [CF], MPBF, Pension and Gratuity Fund [PGF],
National Disaster Risk Reduction and Management Fund [NDRRMF])
consistent with the Special Provisions of the respective SPF.

o CF shall cover the funding requirements of new and/or urgent

projects and activities of national government agencies and
GOCCs that need to be implemented or paid during the year,
e.g., legal obligation of the government arising from final and
executory decisions by competent authority including
requirements of newly created offices, or deficiencies in the
appropriations for local and external travels of the President of
the Philippines, etc. In no case shall this Fund be used for
purchase of motor vehicles, including any improvements
thereon.

o PGF shall be used to fund the pension requirements, TL/RG

benefits of optional retirees, including those retiring under
R.A. No. 1616, monetization of leave credits of government
employees, separation and incentives for those affected by
restructuring, merger, streamlining, abolition, or privatization.

o The release of subsequent SAROs to cover pension

requirements for the second to fourth quarters of pensioners
cited in item 1.1.2 of Schedule II shall be based on the latest
list of actual pensioners provided by the agencies concerned,
as confirmed by DBM and supported with the required BFARs.

o MPBF shall be used to fund PS deficiencies of employees who

are still in the government service, e.g., salaries, bonuses,
etc., except those pertaining to filling-up of existing and newly-
created positions already provided under the agencies'
budgets. PS deficiencies shall be initially charged against the
available allotment of the agency; release from the MPBF for
the purpose shall be made after it has been determined that
the PS deficiency cannot be accommodated within the

27
 agency's available allotment In addition, the MPBF includes
the Legal Defense Fund which shall cover the actual expenses
for the defense of government employees in administrative,
civil or criminal cases filed against them in courts in connection
with their performance of official functions.

o NDRRMF shall be used to fund aid, relief arid rehabilitation

services to communities/areas affected by man-made and
natural calamities and repair and reconstruction of permanent
structures, including other capital expenditures for disaster
operation and rehabilitation activities. Release from this fund
shall be made to the appropriate implementing agencies/
units/LGUs.

2.1.9 Unreleased balance of the budgetary support for GOCCs, including

equity subsidy/contributions.

2.1.10 Allocation for LGUs - Local Government Support Fund (LGSF):

o Conditional Matching Grant to Provinces for Road and Bridge

Rehabilitation, Upgrading and Improvement.

o Financial Assistance to Local Government Units and Support

for Capital Outlays and Social Programs;

o Support to the Barangay Development Program of the National

Task Force to End Local Communist Armed Conflict (NTF-
ELCAC); and

o Growth Equity Fund.

Condition for the release from LGSF shall be in accordance with the
Special Provisions under the FY 2022 GAA and other DBM issuances
as may be issued for the purpose.

2.1.11 Allocation for LGUs - Special Shares of LGUs in the Proceeds of

National Taxes, Barangay Officials Death Benefits Fund and Fire Code
fees shall be released pursuant to their Special Provisions under
current year's GAA, duly supported by the pertinent certification from
the BTr and the collecting agency.

2.1.12 Allocation for BARMM - Special Development Fund and Share in

National Taxes, fees and charges collected in the Bangsamoro
Autonomous Region.

2.2 Automatically Appropriated Items

2.2.1 Full year requirements for RLIP of filled/created positions during the
year and deficiencies in RLIP contributions, as the case may be.

28
2.2.2 Operating requirements, inclusive of RLIP of the following agencies
reflected in Table B. 15 of the FY 2022 BESF which are fully dependent
on income collections accruing to its SAGFs or with very minimal
budget provision in the GAA, subject to the submission of Certification
of Collections from BTr:

o DOF - Insurance Commission - PS, MOOE and CO;

o DOTr - Office for Transportation Security - PS and MOOE;

o DOLE - Office of the Secretary (Verification Fees) - MOOE;

and

o DOJ - Land Registration Authority - MOOE.

2.2.3 The rest of the SAGFs (excluding those cited under item 2.2.2
hereof), listed in Table B.15 of the BESF, to be released supported
with BTr certification on the latest available balance of the SAGF.

2.2.4 Any adjustment to effect the authorized deductions from the NTA,
i.e., LGU contributions to MMDA and loan amortization to the
Municipal Development Fund Office.

2.2.5 Tax Expenditure Fund

2.2.6 Twenty-five percent (25%) corresponding to the initial requirement

for the following:

o Interest Payment; and

o Net Lending.

Subsequent releases shall be based on the actual requirements as

reported in the monthly Bureau of the Treasury Cash Operations
Report.

—nothing follows—

29
 ATTACHMENT 1
Deoartment of
Aqency/OperatinQ Unit
Address
1

MODIFICATION ADVICE FORM (MAF) NO. 2022-XX-XXXX

Dated ;

Funding Source :

Legal Basis

Purpose

DEFICIENT ITEMS (TO) :

PROGRAMS / PROJECTS / ALLOTMENT OBJECT OF

RESPONSIBILITY CENTER AMOUNT
ACnVITIES CLASS EXPENDITURES

Total : -

SOURCE ITEMS (FROM) :

PROGRAMS / PROJECTS / ALLOTMENT OBJECT OF

ACTIVITIES RESPONSIBILITY CENTER AMOUNT
CLASS EXPENDITURES

Total : _

Prepared by: Recommending Approval by:

Analyst/Specialist Budget Officer/ Director of FMS or Equivalent

'
Approved by:

Agency/Entity Head or Authorized Representative

 ATTACHMENT 2

Department/ Agency
Funding Source____

CERTIFICATION

This is to certify that the amount of PhP is available and not yet obligated as of
^ considering that the original purposes (as enumerated below) have already been
undertaken in the early part of FY 2022.
FROM - (Allotment Class, e.a., MOPE)
P/A/P AMOUNT
OBJECT OF EXPENDITURE
CODE DESCRIPTION (in pesos)

Total

This is to certify further that the said available allotments shall be used to cover the following purposes of
modification:

TO - fAllotment kClass, e.a.. CO)

P/A/P AMOUNT
OBJECT OF EXPENDITURE
CODE DESCRIPTION (in pesos)

Total

Prepared by: Approved by:

Budget Officer Agency Head

 ATTACHMENT 3

Department of________
Agency/Operating Unit.
Address_______________

Advice for use of PS Allotment (APSA) NO. 2022-XX-XXXX

Date :_______________

Funding Source

Legal Basis:

DEFICIENT ITEMS (TO) :

PROGRAMS/
OPERATING UNIT / ALLOTMENT OBJECT OF
PROJECTS / AMOUNT
RESPONSIBILITY CENTER CLASS EXPENDITURES
ACTIVITIES

Tota

SOURCE ITEMS (FROM) :

PROGRAMS/
OPERATING UNIT / ALLOTMENT OBJECT OF
PROJECTS / AMOUNT
RESPONSIBILITY CENTER CLASS EXPENDITURES
ACTIVITIES

Tota

Prepared by: Recommended by:

Analyst/Specialist Budget Officer/ Director, FS

Approved by:

Agency Head or Authorized Representative