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ALL HEADS OF DEPARTMENTS/ AGENCIES/STATE UNIVERSITIES AND COLLEGES AND OTHER OFFICES OF THE NATIONAL GOVERNMENT, GOVERNMENT-OWNED AND/OR CONTROLLED CORPORATIONS AND LOCAL GOVERNMENT UNITS, BUDGET OFFICERS, HEADS OF ACCOUNTING UNITS AND ALL OTHERS CONCERNED

GUIDELINES ON THE RELEASE OF FUNDS CHARGEABLE AGAINST THE PRIORITY DEVELOPMENT ASSISTANCE FUND FOR FY 2012

1.1

To prescribe guidelines on the release and utilization of the Priority Development Assistance Fund (PDAF) under Republic Act (R.A) No. 10155, General Appropriations Act (GAA) for FY 2012;

1.2

To enhance transparency and accountability in the release and utilization of the PDAF; and

1.3

To align local development programs and projects with the national development agenda and priorities of the government.

2.1

The PDAF shall be used to fund priority development programs and projects identified by the Members of Congress from the PDAF project menu hereby attached as Annex A.

In the identification of programs/ projects or designation of beneficiaries, preference shall be given to projects located in the 4th to 6th class municipalities or indigents identified under the National Household Targeting System for Poverty Reduction by the Department of Social Welfare and Development without necessarily excluding other municipalities and beneficiaries.

2.1.1

Implementing agencies may be National Government Agencies (NGAs); Local Government Units (LGUs); and Government-Owned and/or Controlled Corporations (GOCCs).

2.1.2

Funds shall be released directly to the implementing agencies enumerated in the PDAF Project Menu However, in the case of LGUs, funds shall be released to the Department of Budget and Management (DBM) as the fund administrator and for GOCCs, funds shall be released to the Bureau of the Treasury (BTr).

2.2

The PDAF shall not be used for payment of personal services expenditures, (i.e. payment of salaries, honoraria, allowances, bonuses and similar forms of compensation).

2.3

LGUs may only be identified as implementing agencies if they have the administrative and technical capability to implement the programs/projects.

2.4

Any program/project identified by District Representatives to be implemented outside his or her congressional jurisdiction shall have the written concurrence of the District Representative of the recipient/beneficiary Congressional district.

2.5

The total allocation for programs/ projects shall not exceed the following amounts:

2.5.1

Each Congressional District and Party-List Representative: Total of Seventy Million Pesos (P70,000,000): Forty Million Pesos (P40,000,000) for infrastructure (hard) projects and thirty Million Pesos (P30,000,000) for soft projects.

2.5.2

Each Senator: Total of Two Hundred Million Pesos (P200,000,000): One Hundred Million Pesos (P100,000,000) for infrastructure (hard) projects and One Hundred Million Pesos (P100,000,000) for soft projects.

Considering the approved fiscal program of the government, fifty-percent (50%) of the allocation for each legislator shall be released in the first semester, and the remaining 50%, in the second semester.

2.6

All procurement shall comply with the provisions of the Government Procurement Reform Act (R.A. No. 9184).

2.7

All purchases of motor vehicles shall comply with the following provisions:

2.7.1

Administrative Order No. 233 dated August 1, 2008 (Reiterating the Prohibition on the Acquisition and Use of Luxury Vehicles and Directing Revisions of Guidelines on Government Motor Vehicles Acquisition) as amended by Administrative Order No. 15 dated May 25, 2011 and implemented by DBM Budget Circular No. 2010-2 dated March 1, 2010; and

2.7.2

Memorandum Circular No. 9 dated December 14, 2010 (Government Policy and Procedural/ Documentary Requirements on the Approval/Issuance of Authority to Purchase Motor Vehicles).

2.8

Purchase of multi-purpose vehicles shall only be for peace and order purposes and not for utility vehicles and that it should comply with the existing rules and regulations covering the acquisition of motor vehicles.

2.9

All purchases of IT equipment shall be limited to hardware component only and shall be preferably purchased through the Procurement Service.

2.10

Proposed programs and projects intended for Arts and Culture shall be submitted together with a certification from the National Historical Commission of the Philippines (NHCP) on the proper classification as either soft or infrastructure programs/projects.

Within the limits prescribed under Section 2.5 hereof, the DBM shall issue the Special Allotment Release Order (SARO) to cover the release of funds chargeable against the PDAF. All requests for issuance of allotment shall be supported with the following:

3.1.1

List of priority programs/ projects including the supporting documents in accordance with the PDAF Project Menu;

3.1.2

Written endorsements by the following:

3.1.2.1

In case of the Senate, the Senate President and the Chairman of the Committee on Finance; and

3.1.2.2

In case of the House of Representatives, the Speaker and the Chairman of the Committee on Appropriations.

3.2.1

For NGAs

As a general rule, the Common Fund Scheme shall be observed where the cash requirements for the implementation of the programs/projects shall be accommodated within the department/agency's available cash balance. When the cash balance is insufficient, issuance of Notice of Cash Allocation (NCA) may be made upon submission of the following:

3.2.1.1

Request of implementing agency;

3.2.1.2

Monthly Cash Program;

3.2.1.3

Certification whether the allotment is recorded as continuing appropriation or as accounts payable; and

3.2.1.4

List of Due and Demandable Accounts Payable (LDDAP).

NCA for infrastructure projects implemented by the Department of Public Works and Highways and the Department of Education shall be issued based on the LDDAP in accordance with the Direct Payment Scheme per DBM Circular Letter No. 2005-2 dated January 28, 2005.

3.2.2

For LGUs, the NCA shall be released to the DBM. Thereafter, the funding checks shall be issued for credit to the accounts of the LGUs concerned.

3.2.3

For GOCCs, the corresponding NCA shall be released to the BTr upon receipt of the SARO by the BTr.

4.1

Realignment under this Fund may be allowed only once pursuant to Special Provision No. 6 of the Fund in the FY 2012 GAA, R.A. No. 10155.

4.2

Realignment of allotment may be allowed by the DBM if the following conditions exist:

4.2.1

The revised program/ project is within the PDAF Project Menu;

4.2.2

The allotment requested for realignment has not yet been obligated; and

4.2.3

The allotment is still valid or has not yet lapsed. The validity of the FY 2012 budget is only until December 31, 2013.

4.2.4

Requests for realignment of unobligated allotment treated as continuing appropriations shall be submitted to DBM not later than June 30, 2013.

4.3

Requests for realignment shall be supported by the following:

4.3.1

Written request of the proponent legislator or in case the requesting party is the implementing agency, concurrence of the proponent legislator;

4.3.2

Written reason/justification for the realignment;

4.3.3

For NGAs/GOCCs:

4.3.3.1

Certification from the head of the budget office, duly noted by the agency head, that the fund being requested for realignment has not yet been obligated and still available;

4.3.3.2

If cash has already been issued, certification from the bank on lapsed NCA or Remittance Advice evidencing that the amount was returned to the BTr.

4.3.4

For LGUs:

4.3.4.1

Certification from the local treasurer, duly noted by the local chief executive concerned, that the fund being requested for realignment has not yet been obligated and still available;

4.3.4.2

Certification of non-implementation of programs/ projects proposed to be realigned; and

4.3.4.3

If funding checks have already been issued/credited to the account of the LGU and the realignment requires change of implementing LGU/ agency, submit Remittance Advice evidencing that the amount was returned to the BTr.

4.4

The Secretaries of Agriculture, Education, Energy, Environment and Natural Resources, Health, Interior and Local Government, Public Works and Highways, and Social Welfare and Development are authorized to approve realignment from one project/ scope to another within the allotment received from this Fund, subject to the following conditions: (i) for infrastructure projects, realignment is within the same implementing unit and same project category as the original project; (ii) allotment released has not yet been obligated for the original project/ scope of work; and (iii) request is with the concurrence of the legislator concerned. The DBM shall be informed in writing of any realignment approved within five (5) calendar days from its approval.

5.1

DBM shall post in its official website all releases and realignments under the PDAF. Implementing  agencies  shall likewise post in their respective official websites the (i) prioritylist, standard and design submitted to Congress; (ii) projects identified and names of the concerned proponents; (iii) names of project beneficiaries and/or recipients; (iv) any realignment authorized; (v) status of project implementation; and (vi) program/project evaluation and/ or assessment reports in line with the Organizational Performance Indicator Framework (OPIF).

5.2

For LGUs, aside from their websites, posting of PDAF releases shall also be made in at least three (3) publicly accessible and conspicuous places within the LGU consistent with the provision of the Local Government Code of 1991, or, to be published in a newspaper of general circulation in the territorial jurisdiction of the LGU concerned pursuant to the Department of the Interior and Local Government (DILG) Memorandum Circular (MC) No. 2011-08A dated January 13, 2011, as amended by MC No. 2011-134 dated September 19, 2011.

5.3

For any procurement to be undertaken under the PDAF, the implementing agencies shall post in the Philippine Government Electronic Procurement System (PHILGEPS) or in a newspaper of general circulation all invitation to bid, names of participating bidders with their corresponding bids, and awards of contract in accordance with R.A. 9184, its implementing rules and regulations and Administrative Order No. 17 dated 28 July 2011.

The implementing agencies shall be accountable for the implementation of the programs/projects, subject to existing budgeting, accounting, and auditing rules- and regulations.

All issuances that are inconsistent with this Circular are hereby rescinded/ superseded accordingly.

Cases not covered by the provisions of this Circular shall be referred to DBM for appropriate action.

This Circular shall take effect immediately.