No. 529
~~.!I~~AL..B_~DG~~i~~:I~~~~3
21 February 2011
TO
All Heads of Departments/Agencies/State Universities and
Colleges. and Other Offices of the National Government,
.
Government-Owned or Controlled Corporations and Local
Government Units, Budget Officers, Heads of Accounting
Units and All Others Concerned
SUBJECT
1.0
2.0
Guidelines for the Release of Funds Chargeable Against the
Priority Development Assistance Fund for FY2011
PURPOSE
1.1
To prescribe guidelines on the release and utilizationof the Priority
Development Assistance Fund (PDAF)under Republic Act (R.A.) No.
10147, General AppropriationsAct (GAA)for FY2011;
1.2
To enhance transparency and accountability in the release and
utilizationof the PDAF;and
1.3
To align local development programs and projects with the national
development agenda and prioritiesof the government
GENERAL GUIDELINES
2.1
The PDAF shall be w~ed to fund priority development programs and
projects identifiedby Members of Congress or Vice-President from
the project menu (or the PDAF Project Menu) hereby attached as
AnnexA.
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
municipalitiesand beneficiaries
The list of programs/projects, as far as practicable, shall conform with
the priority list of programs/projects of each implementing agency.
2.2
2.3
The PDAF shall not be used for payment of persona! services
expenditures, (i.e. payment of salaries, honoraria, allowances, bonus
and similarforms of compensation).
Funds
shall
be
released
directly to the
implementing
agencies
enumerated in the PDAF Project Menu, provided that local government
units (LGUs) may only be identified as implementing agencies if they
have the administrative and technical capability to implement the
programs/projects.
2.4
The total allocation for programs/projects to be identified shall not
exceed the following amounts:
2.4.1 Congressional Districts and Party-listRepresentatives: Total
of Seventy Million Pesos (,J;!70,000,000)broken down into Forty
Million Pesos (,J;!40,000,000)for infrastructure projects and Thirty
Million Pesos (,J;!30,000,000) for soft projects.
2.4.2 senators and Vice President: Total of Two Hundred Million
Pesos (,J;!200,OOO,00O)
broken down into One Hundred Million
Pesos (,J;!100,000,OOO) for infrastructure projects and One
Hundred Million Pesos (,J;!100,000,000) for soft projects.
Considering the approved fiscal program of the government, fiftypercent (50%) of the allocation for each legislator and the VicePresident shall be released in the first semester, and the remaining
50%, in the second semester.
2.5
3.0
All procurement shall comply with the provisions of R.A. No. 9184 or
the Government Procurement Reform Act.
RELEASE OF FUNDS
3.1
Allotment
Within the limits prescribed under Section 2.4 hereof, the Department
of Budget and Management (DBM) shall issue the Special Allotment
Release Order (SARa) to cover the release of funds chargeable
against PDAF. All requests for issuance of allotment shall be
supported by the following:
3.1.1 List of priority programs/projects in accordance with the PDAF
Project Menu duly signed by the proponent;
3.1.2 Written endorsements/concurrence by the following:
3.1.2.1
In case of the Vice President, the Office of the
President;
2
3.1.2.2
In case of the Senate, the Senate President and the
Chairman of the Committee on Finance;
3.1.2.3
In case of the House of Representatives, the Speaker
and
the
Chairman
of the
Committee
on
Appropriations; and
3.1.2.4
In case the program/project identified by a District
Representative is outside his or her congressional
jurisdiction, the District Representative of the
beneficiary congressional district.
3.1.3 Additional supporting documents that may be required under the
PDAF Project Menu.
3.2
Cash Allocation
3.2.1 For national government agencies
As a general rule, cash requirements of the programs/projects
shall be accommodated within the department/agency 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
3.2.1.2
3.2.1.3
Request of implementing agency;
Cash Program; and
List of Due and Demandable Accounts
(LDDAP).
Payable
NCA for infrastructure projects implemented by Department of
Public Works and Highways and Department of Education shall
be issued based on the List of Due and Demandable Accounts
Payable (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-Regional
Office concerned, upon receipt of the SARO by said office.
3.2.3 For government-owned or controlled corporations, the
corresponding NCA shall be released to the Department of
Finance-Bureau of the Treasury (BTr).
4.0
REALIGNMENT OF FUNDS
4.1
Realignment may be allowed by the DBM if the following conditions
exist:
3
4.1.1 The substitute program/project is within the PDAF Project Menu;
4.1.2 The allotment requested for realignment has not yet been
obligated; and
4.1.3 The validity of the allotment has not yet lapsed.
Only one realignment is permitted under this fund.
4.2
Requests for realignment shall be supported by the following:
4.2.1 Written reason/justification for realignment duly endorsed by the
implementing agency;
4.2.2 Concurrence of the proponent Vice President/legislator;
4.2.3 Certification from the head of the budget office/local treasurer,
duly noted by the agency head/local chief executive concerned,
that the fund being requested for realignment has not yet been
obligated and is still available;
4.2.4 In addition, for LGUs, certification of non-implementation of
programs/projects proposed to be realigned, and if funding
checks have already been issued/credited to the account of the
LGU, submit a Remittance Advice of the amount returned to the
BTr; and
4.2.5 In case the substitute program/project identified by a District
Representative is outside his or her congressional jurisdiction,
written concurrence of the District Representative of the
beneficiary congressional district.
4.3
The Secretaries of Education, Health, Social Welfare and
Development, Interior and Local Government, Environment and Natural
Resources, Energy and Public Works and Highways are authorized to
approve realignment from one project/scope to another within the
same allotment, subject to the following conditions: (Ij for infrastructure
projects, realignment is within the same implementing unit and same
project category as the original project; (il) allotment released has not
yet been obligated for the original project/scope of work; and (iii)
approval/concurrence of the concerned proponent. The DBM must be
informed in writing of the approved realignment within five (5) calendar
days from its approval.
4.4
Requests for realignment of unobligated allotment treated as
continuing appropriations shall be submitted to DBM not later than
June 30,2012.
4
5.0
POSTING REQUIREMENTS
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) priority list, standard and design
submitted to Congress; (i/) 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 any procurement to be undertaken under the PDAF, implementing
agencies shall post in the Philippine Government Electronic
Procurement System (PHILGEPS) or in a newspaper of general
circulation all invitations to bid, names of participating bidders with their
corresponding bids, and awards of contract.
6.0
ACCOUNTABILITY
The implementing agencies shall be accountable for the implementation of the
programs/projects, subject to existing budgeting, accounting and auditing
rules and regulations.
Proponent legislators/vice-president shall be
accountable for ensuring that the LGU, chosen by them as implementing
agency, meets the requirements under Section 2.3.
7.0
REPEALING CLAUSE
All issuances that are inconsistent
rescinded/superseded accordingly.
8.0
with
this
Circular
are
hereby
SAVING CLAUSE
Cases not covered by the provisions of this circular shall be referred to DBM
for appropriate action.
9.0
EFFECTIVITY
This Circular shall take effect immediately.
I
:~
'-~
'FLORENCIOB. ABAD
Secretary
5