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TO:	(1)	All Heads of Departments, Bureaus and Offices of the National Government
	(2)	All Regional Directors
	(3)	The Budget Commission
	(4)	The Presidential Commission on Reorganization
SUBJECT:	Strengthening the Administrative Capacity for Regional Operations

In furtherance of the policy of government decentralization embodied in the Integrated Reorganization Plan (IRP), the following measures are directed to be implemented:

1. A standard set of minimum administrative powers shall be delegated to the regional directors of departments, bureaus and agencies of the executive branch of the national government (excluding government corporations), as follows:
   
   
   1. Exercise appointing authority over the following:
      
      

      (1)	Original and promotional appointments and reinstatements to positions of the first level which include clerical, trade, crafts, and custodial service positions and which involve non-professional or sub-professional work in a non-supervisory or supervisory capacity.
      (2)	Casual Appointments.

      
      
   2. Approve transfers of personnel within the jurisdiction of the regional office: Provided, That in cases of inter-regional transfers which shall be made by higher authorities, the same shall be done in consultation with the regional directors concerned.
   3. Investigate administrative complaints against employees of the   region and submit appropriate recommendations to the agency head.
   4. Approve sick, vacation and maternity leaves of absence with pay or without pay, for a period not beyond one year.
   5. Prepare and submit budget proposals for the region to the central office ana administer the budget of the regional office.
   6. Authorize disbursements of funds and accordingly approve vouchers for the payment of obligations pursuant to approved financial and work programs.
   7. Approve requisitions for supplies, materials and equipment subject to centeral office approval of a supply procurement program.
   8. Negotiate contracts for services or for furnishing supplies, materials and equipment involving an amount not exceeding P50.000 within a given quarter: Provided, however, That authority in excess of P50.000 may be further authorized at the discretion of the   proper department or agency head.
   9. Approve claims for benefits under Section 699 of the Revised Administrative Code, subject to the availability of funds.
   10. Approve requests for overtime services.
   11. Approve application of personnel for permission to teach, exercise a profession, or engage in business outside of office hours.
   12. Issue travel orders authorizing employees to travel on official business within the region for a period not exceeding thirty days.
   13. Approve attendance of personnel in conferences, seminars, and non-degree training programs within the region.
   14. Authorize the allocation of funds to provincial/district offices.
       
       
2. The delegation of administrative authority provided for above shall be subject to the following general provisions:
   
   
   1.  The powers herein given to the regional offices may be further delegated as needed by the regional directors concerned to lower level offices, such as provincial district offices.
   2. Nothing herein shall be construed to preclude any department or  agency head from  further delegating powers in excess of those herein provided to the regional offices.
   3. The exercise of the powers herein provided shall in all cases be subject to such existing national and/or departmental or agency policies, rules and regulations as may have been or may be promulgated.
      
   
   
3. The delegation of administrative authority herein prescribed shall be effected within one year after the actual establishment of the regional office.
4. Pursuant to Paragraph 1, Article II, Chapter III, Part II of the IRP, each head of department, bureau or agency is hereby enjoined to delegate as much authority on substantive matters as possible to the regional offices within two years after the actual establishment of the regional offices.  He is accordingly directed to determine what actions on substantive matters shall be delegated to the regional directors in order that the regional offices can perform department or agency functions and implement plans and programs efficiently and effectively.  Upon determination of the substantive powers to be delegated, each head of department, bureau or agency shall issue the appropriate directives delegating such substantive powers to the regional offices, copies of which shall be furnished the Office of the President.
5. All departments, bureaus and agencies shall prepare regional manuals of operations for their respective regional offices which shall include, among others, statements on the organization, functions and responsibilities, policies and standards, rules and regulations, operating procedures as such other guides as may be necessary, for the easy and ready reference of field personnel and the public.
6. An explicit regional orientation shall be reflected in the national budget for subsequent fiscal years, whereby funding authorizations for both operating expenses and development projects' are clearly indicated the. various regional offices.
7. Planning units of planning positions shall be established    or provided, whenever necessary and indicated, in the regional offices through the budgetary process.  Pending this, authorization  is given in the meantime for agencies to designate regional planning offices from among qualified officials in their respective regional offices. Said regional planning officers shall be responsible for providing staff assistance to the regional directors in the development of regional plans for their respective sectors and shall for this purpose maintain liaison and coordinate with and provide assistance as necessary to the NEDA regional planning staffs in the various regions.
8. A general policy is hereby promulgated prohibiting the detailing or assigning of regional office personnel to the central office or to other regional offices, especially to the  former, unless this is absolutely necessary in the interest of the service. Where necessary, such details or assignments shall only be for limited periods.
9. The eventual establishment, of a government center to house all regional offices within each administrative region is hereby declared to be the national policy. In the meantime that the location and construction of regional government centers are still prospective, a general policy is hereby adopted prohibiting agencies from constructing their own individual regional office buildings. Exemptions from this policy shall be granted only by the President in exceptionally meritorious cases and only in instances where the funding source is already available and obligated.
10. The Budget Commission and the Presidential Commission on "Reorganization shall provide such technical assistance as may be necessary to the various agencies in implementing the measures required to be taken under this LOI.

Done in the City of Manila, this 18th day of August, in the year of Our Lord, nineteen hundred and seventy-six.