19 3t

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF BUDGET AND MANAGEMENT
BONCODIN HALL, GEN. SOLANO ST., SAN MIGUEL, MANILA

I NATIONAL BUDGET CIRCULAR I No. 567

January 3, 2017

TO : 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 Entities Receiving Budgetary Support (Government
Owned or Controlled Corporations (GOCCs) and Local Government Units
(LGUs); Budget Officers, Heads of Accounting; and All Others Concerned

SUBJECT : GUIDELINES ON THE RELEASE OF FUNDS FOR FY 2017

1.0 POLICY STATEMENT

The FY 2017 budget aims to facilitate the achievement of meaningful national development
goals as emphasized by the Duterte Administration. The implementation of real change is
anchored on the timely and appropriate execution of this budget. In particular, the policy of
using the General Appropriations Act as an Allotment Order (GAAAO) shall continue to be
adopted to ensure the immediate implementation of programs, projects and activities. In so
doing, resource unpredictability and delays in project/program implementation are reduced.
Likewise, credibility and transparency in the budget process is expected to be further
enhanced.

2.0 PURPOSES

2.1 To provide policies, procedures, rules and regulations on the release, utilization of
funds, and monitoring thereof for FY 2017.

2.2 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).

2.3 To institutionalize evidence-based decision-making, streamlined and simplified

monitoring and evaluation and reporting of performance information.

3.0 COVERAGE

All departments, agencies and OUs of the National Government, including the CFAG,
SUCs, GOCCs and LGUs receiving budgetary support from the national government from
all sources of appropriations, such as Republic Act No. 10924 (FY 2017 GAA) and
Automatic Appropriations.

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4.0 GENERAL GUIDELINES

4.1 The FY 2017 GM takes effect on January 1, 2017 as provided under Section 1,
General Provisions (GP) of said law.

4.2 The appropriations authorized under FY 2017 GAA shall be valid for release and
obligation for the purpose specified and subject to the pertinent special and general
provisions:

4.2.1 For Personnel Services (PS) until December 31, 2017.

4.2.2 For Maintenance and Other Operating Expenses (MOOE) and Capital
Outlays (CO) until December 31, 2018.

4.2.3 For Financial Expenses (FinEx) until December 31, 2018, considering that
it is similarly treated as an MOOE.

However, pursuant to Item III.A of the FY 2017 Presidents Veto Message, all
agency heads are directed to ensure obligation of programs, activities and projects
funded under FY 2017 GAA not later than December 31, 2017. Failure to do so
will adversely affect future budget levels of the respective agency/department.

4.3 The aggregate allotment releases during the year from all appropriation sources
shall not exceed the Allotment Release Program (ARP) of each agency. This
agency ARP shall be consistent with the Total Obligation Program under Table H
(Reconciliation of the Obligation Program and the Proposed General
Appropriations) of the FY 2017 Budget of Expenditures and Sources of Financing
(BESF).

4.4 Release of funds shall be consistent with the DBM-evaluated Budget Execution
Documents (BEDs) for FY 2017 formulated/submitted by agencies/OU through
the Unified Reporting System (URS) pursuant to DBM Circular Letter (CL) No.
2016-91.

4.4.1 The Financial Plan (FP) or BED No. 1 shall be the basis for classifying the
agency/OU budgetary items into (a) "For Comprehensive Release (FCR)"
and (b) For Later Release (FLR)." All items of appropriations classified as
FLR shall constitute the negative list (NL) and shall not be covered by the
GAA as an Allotment Order.

The obligational authority for items of appropriations in the budget shall be

released through the following:

4.4.1.1 GAA as Allotment Order for those categorized as FCR, as

enumerated in Schedule I hereof; and

4.4.1.2 Special Allotment Release Order (SARO) or General

Allotment Release Order (GARO), as the case may be, for
those categorized as FLR, as listed in Schedule ll hereof.

CL 2016-9 dated October 27, 2016 (Submission of the Annual Budget Execution Plans)

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 4.4.2 The Monthly Disbursement Program (MOP) or BED No. 3 shall guide the
determination of the monthly allocation to be initially released
comprehensively (i.e., covering the first semester requirements, in the case
of cash allocations) as well as through later tranches as may later be
required including those to be covered by other disbursement authorities
(i.e., tax remittance advice, non-cash availment authorities, cash
disbursement authorities).

4.5 Release of funds shall be made directly to the OUs of agencies. An OU refers to an
organizational entity directly receiving, and capable of administering, its own funds.

4.5.1 Funds appropriated in the FY 2017 GAA shall be released directly to the
Regional Offices (R0s) and Operating Units (OUs) of agencies where funds
are specifically appropriated to ROs and OUs (GP No. 63 of the FY 2017
GAA).

4.5.2 Centrally-Managed Items (CM!) or those items in the budget of agencies, for
which the OUs and the specific amounts allocated for each have not been
identified in the GAA, shall be released directly to the OU upon receipt by
the DBM of a Special Budget Request (SBR), with corresponding cost up to
the lowest level - provincial, city, municipal level, as the case may be (GP
No. 64 of FY 2017 GAA).

4.6 As a general rule, departments, bureaus and offices of the national government,
including Constitutional Offices enjoying fiscal autonomy and SUCs shall spend
what is programmed in their respective appropriations. In exceptional
circumstances, agencies may modify the allotment issued within a program, activity
or project (GP No. 70 of FY 2017 GAA). The existence of an allotment class or
object of expenditure in the recipient P/A/P is not necessary for purposes of
modification.

4.6.1 Modification refers to any change within a program, activity, project (P/NP)
in operating unit, allotment class, object of expenditure, within a special
purpose fund (SPF) and within the purpose authorized under the
Unprogrammed Appropriation, as reflected in the FY 2017 GAA.

4.6.2 All modification in allotment shall not entail any increase in the total amount
appropriated for a P/NP. In the case of programs with several activities,
modification may be done only within each activity (GP No. 70 of the FY
2017 GAA).

4.6.3 All modifications within Capital Outlays, as appropriated in the FY 2017

GAA, may only be made until June 30, 2017, except in cases where
calamities occur.

4.7 The following guidelines shall be observed in the use of savings to augment
deficient appropriations for P/A/Ps in the FY 2017 GAA:

4.7.1 Savings refer to portions or balances of any released appropriations which

have not been obligated as a result of any of the following:

4.7.1.1 Final discontinuance or abandonment of an ongoing program,

activity or project (P/NP);

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 47.1.2 Non-commencement of the P/A/P for which the appropriations is
released;
4.7.1.3 Decreased cost resulting from improved efficiency during the
implementation or until the completion by agencies of their
P/NPs:

4.7.1.4 Difference between the approved budget for the contract and the
contract award price including any variations required for the
project.

4.8 Savings may be used to augment a deficiency in any existing P/A/P within their
respective offices. The existence of an allotment class/object of expenditure in the
recipient P/A/P is not necessary for the purpose of augmentation. A deficiency in a
P/A/P may result from:

4.8.1 Unforeseen modifications or adjustments in the P/A/P;

4.8.2 Re-assessment in the use, prioritization and/or distribution of resources; and

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

compensation, year-end bonus and cash gift, retirement gratuity, terminal
leave benefits, old-age pension of veterans, CNA incentives and other
personnel benefits authorized by law and in FY 2017 GAA, as well as the
implementation of priority P/A/P covered in the FY 2017 GAA (GP No. 69 of
FY 2017 GAA).

4.9 Appropriations for PS shall be used for the payment of personnel benefits
authorized by law to be given to National Government personnel, computed based
on the Government Manpower Information System (GMIS), as well as any
deficiency in authorized personnel benefits that may be determined during the year.

4.9.1 Any available allotment for PS within a department or agency may be

utilized by said department or agency for the payment of deficiencies in
authorized personnel benefits (GP No. 45 of FY 2017 GAA).

4.9.2 In case there is insufficiency in PS allotment, the department or agency may

frontload requirement corresponding to said insufficiency against the
unobligated PS allotments comprehensively released.

4.9.3 In the use of available released PS allotments/appropriations, the following

limitations shall be observed:

4.9.3.1 Released allotments which cannot be reallocated to other object

of expenditures under PS:

Retirement and Life Insurance Premium (RLIP); and

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

expressly authorized in the law creating them.

4.9.3.2 Available released allotments for PS cannot be used to pay CNA

Incentives.

4.10 Use of Fees and Income

Agencies authorized by specific laws may use fees or regular income or excess
income, to cover any deficiency in available appropriations/allotments for P/A/Ps.
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 4.10.1 Agencies listed in Schedule II (item 1.2.2.d) are authorized by specific laws
to utilize income collections accruing to their SAGFs to cover their operating
requirements. With this funding source, these specific agencies are provided
minimal budget support in the GAA since their requirements may be
charged against their income collection in case of deficiencies, subject to
the usual budgeting rules and regulations.

4.10.2 Authorized agencies with insufficient budget appropriations may use the
following sources of fees or income to cover related expenses, with any
excess proceeds to be deposited with the National Treasury as income of
the General Fund:

4.10.2.1 Fees collected from the conduct of seminar, conference, training

and oath taking from government and private agency participants
(GP No. 12 of FY 2017 GAA).

4 10 2.2 Proceeds from the sale of official publications, to defray the cost
of preparing, printing and disseminating such official publications
(GP No. 13 of FY 2017 GAA).

4.10.3 Agencies with Excess income (actual collections vis-a-vis the targets
shown in Table C.4 of the FY 2017 BESF) realized, deposited and as
certified by the Bureau of the Treasury may be authorized to use such
excess income chargeable against the Unprogrammed Appropriations
(UA) of the GAA, pursuant to Special Provision (SP) No. 2 of the UA,
subject to the following conditions:

4.10.3.1 If, upon evaluation, it has been proven that the agency shall incur
a deficiency or can still utilize the excess income over and above
their existing specific budget;

4.10.3.2 To augment current appropriations except PS appropriations as

well as discretionary and representation expenses;

4.10.3.3 To utilize such excess income during the current year; and

4.10.3.4 To ensure that the proposed utilization shall result to better

delivery of services.

4.11 Departments/agencies are required to implement the transparency provisions in the

FY 2017 GAA and Executive Order (EO) No. 2, s. 2016 on Freedom of Information
(F01).

4.12 The DBM shall conduct periodic monitoring and review of agency utilization of funds
in the production/delivery of goods/services to the public vis--vis plans/targets for a
given period based on the DBM-evaluated BEDs and quarterly BFARs submitted by
agencies through URS.

Relative to this, agencies are reminded to submit the Monthly Report on

Appropriations, Allotments, Obligations and Disbursements to DBM, every
tenth day of the following month, copy furnished the NEDA and Office of the
Cabinet Secretary, in the format prescribed under CL No. 2015-92.

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DBM CL No. 2015-9 dated June 30, 2015 (Prescribing the Submission of Summary Performance Monitoring Reports)

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 4.13 Reporting timelines

4.13.1 January 29, 2017 - deadline for submission to DBM of agencies revised
Performance Targets corresponding to changes, i.e., increases, reductions,
new budgetary items introduced in the GAA.

4.13.2 May 31, 2017 - deadline for submission to DBM of agencies' Emerging
Monthly Disbursement Program (EMDP).

4.13.3 November 15, 2017 - deadline for submission to DBM of agency request/s
for any release requiring issuance of SAR0s/additional NCAs.

4.13.4 Dates prescribed under COA-DBM Joint Circular (JC) No. 2014 - 13 and
DBM CL No. 2016 - 114 - submission of the Budget and Financial
Accountability Reports (BFARs).

4.14 Other Timelines

4.14.1 The appropriations under the following shall be available for release and
obligation of SARO for the specified purposes:

4.14.1.1 FY 2016 Continuing Appropriations for MOOE and CO until

December 31, 2017; and

4.14.1.2 All FY 2017 programmed amounts under Automatic

Appropriations for PS. MOOE, and CO until December 31, 2017.

5.0 SPECIFIC GUIDELINES

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

5.1.1 The list of GAA Items FCR through GAAAO is summarized under Schedule
I. On the other hand, the list of Expenditure Items FLR (Negative List)
through SARO/GARO is summarized under Schedule II. Details of the
aforecited schedule are enumerated in the following annexes:

5.1.1.1 Annex A (Summary of Appropriations by Agency under FCR)

5.1.1.2 Annex A-1 (Summary of Funds for Direct Release to

Implementing Agencies under FCR)

5.1.1.3 Annex B (Summary of Appropriations by Agency by Program,

Activity and Project under FLR)

5.1.1.4 Annex B-1 (Summary Funds for Direct Release to Implementing

Agencies under FLR)

3
COA-DBM JC No. 2014-1 dated July 2, 2014 (Guidelines Prescribing the Use of Modified Formats of the Budget and Financial
Accountability Reports)

4 DBM CL No. 2016-11 dated December 6, 2016 (Guidelines Prescribing Electronic Submission of Budget and Financial Accountability
Reports)

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 Pursuant to the pertinent special provisions in the GAA,
appropriations under an agency which are authorized to be
released directly to another, as implementing agency, shall no
longer require the issuance of SARO/s for memo entries to
cover the release of said appropriations.

5.1.1.5 Annex C (Summary of Automatic Appropriations by Agency Full

Year Allocation for Automatic Release through GARO or SARO
at the Beginning of the Year)

5.1.1.6 Annex D (Summary of Automatic Appropriations by Agency

under FLR through SARO upon submission of a Special Budget
Request)

5.1.2 Modification in the Allotment

5.1.2.1 Approving authority for the modifications shall be as follows:

a The Heads of Agencies for change in the object of

expenditure (e.g., Salaries and Wages, Travelling Expenses,
Bank Charges, or Investment Outlays, etc.) within an
allotment class (i.e., Personnel Services, MOOE, FinEx or
Capital Outlays).

b The DBM in the following modifications:

for the payment of newly-authorized Magna Carta

Benefits not otherwise appropriated;

from one allotment class to another;

from one operating unit to another;

within a special purpose fund; and

within the purpose authorized under the Unprogrammed

Appropriations.

c The President of the Philippines for the payment of

intelligence funds within the Executive Branch.

5.1.2.2 Any deficiency of the agency for the following authorized

personnel benefits may be charged against their available PS
allotment, to wit:

Deficiency in the provision for authorized Magna Carta

benefits provided in the GAA.

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.

Award of backpay for cases with final and executory

decisions of competent authorities such as Courts, CSC, and
COA.
 Personnel benefits authorized in prior years but only
approved for payment during the current year. These benefits
shall not be considered as prior years unbooked obligations.

Deficiency in the provision for upgrading faculty positions up

to the 6th cycle pursuant to NBC No. 461 dated June 1, 1998.

5.1.2.3 In instances where an insufficiency in PS occurs and frontloading

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

Reallocation Advice for Use of PS Appropriations (RAPSA)

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

Registry of Allotments and Obligations for PS reflecting said

adjustments and reported in the accountability reports to be
submitted to DBM, i.e., Statement of Appropriation, Allotment,
Obligation, Disbursement and Balances (SAAODB).

5.1.3 Subject to the approval of the President of the Philippines, deficient

allocation of existing P/NPs due to (a) unforeseen modifications or
adjustments in the P/NP, or (b) re-assessment in the use, prioritization
and/or distribution of resources, may be augmented using savings realized
from final discontinuance or abandonment of an ongoing P/NP, non-
commencement of the P/NP for which the appropriations is released,
decreased cost resulting from improved efficiency during the implementation
or until the completion by agencies of their P/A/Ps, or difference between
the approved budget for the contract and the contract award price including
any variations required for the project.

5.2 The procedures to be observed in the issuance of Disbursement Authorities shall

be as follows:

5.2.1 Notice of Cash Allocation (NCAs)

5.2.1.1 An initial comprehensive NCA to be issued directly to the OUs

covering the first semester requirements (January to June, 2017)
chargeable against the current budget year. This shall be
consistent with the DBM-evaluated agency Monthly
Disbursement Program (MDP), which shall include, among
others, current year requirements and prior years' accounts
payables, RLIP, and Continuing Appropriations, i.e., unobligated
allotments and unreleased appropriations as of December 31,
2016 for MOOE and CO under R.A. 10717.

In case of agency non-submission of MDP or BED No. 3,

DBM shall prepare and issue initial NCAs corresponding to
the estimated one (1) month operational requirement based
on the FY 2017 GAA.

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 5.2.1.2 Succeeding comprehensive NCAs shall be issued to cover the
second semester requirements (July to December, 2017),
consistent with the Emerging Monthly Disbursement Program
(EMDP on or before May 31 of the budget year reflecting actual
disbursements as of April 30 of the budget year, not exceeding
the approved full year MDP level of the department/agency to
consider, among others:

a Releases from SPFs/transfers to other

departments/agencies,

b Frontloading of critical programs/projects;

c Delay in procurement process; and

d Availment of Working fund, etc.

5.2.1.3 Additional NCAs may be issued for allotments chargeable

against continuing appropriations under RA No. 10717, prior
years' obligations which become accounts payables in the
current budget year.

5.2.1.4 Validity of NCAs issued and credited to:

a The Regular MDS Sub-Accounts of agencies/OUs for their

regular operations, shall be valid until the last working day
of the 3rd month of that quarter pursuant to DBM CL No.
2013-125.

b The Special MDS Accounts of agencies specifically for

payment of RGTTL benefits shall be valid until the last
working day of the following month when the NCA was
issued, except when issued in December, pursuant to DBM
Budget Circular (BC) No. 2013-16.

c. The trust receipts and credited to the Trust MDS Account of

agencies shall be valid until the last working day of the
year.

d The BTr for working funds of agencies shall be valid until the
last working day of the year.

5.2.1.5 Under the Common Fund System, NCAs released to agencies

under the Regular MDS sub-account shall be used to cover
payment of current year and prior years A/Ps of all creditors
(external and internal) consistent with the MDP. This is to
optimize the use of the available NCAs under the Regular MDS
Account.

5 CL 2013-12 dated November 21, 2013 (Validity of Notice of Cash Allocation for Regular MDS Sub-accounts Effective January 1,
2014)

6 BC No. 2013-1 dated April 12, 2013 (Guidelines Prescribing the Documentary Requirements and Procedures in Processing/Payment
of Retirement Benefits of Government Employees)

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 Similarly, all agencies are reminded to use the Advice to Debit
Account (ADA) to settle government payables.

5.2.2 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 2-977
and CL No. 2003-128. Agencies shall ensure that requests for the issuance
of NCAA submitted to DBM are supported by the following documentary
requirements:

5.2.2.1 Photocopy of the application for withdrawal or equivalent

document covering the amount requested;

5.2.2.2 List of allotments and corresponding obligations incurred

for the specific foreign loan assisted project against which the
disbursements shall be applied; and

5.2.2.3 Details of disbursements expressed both in peso and equivalent

foreign currency as indicated in the application.

It is emphasized that non-issuance of NCAAs for availments of proceeds

from loans/grants thru direct payments (already taken up as constructive
payments per BTr report) results to accounts payable build up in the agency
books.

5.2.3 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:

5.2.3.1 Accountability reports as consolidated by the DFA or DOLE

Home Office i.e., FSP Monthly Report of Income and

5.2.3.2 BTr certification on actual income collected.

The non-issuance of CDCs for actual utilization of retained income by FSPs

(already taken up as revenue and disbursements per BTr report) shall result
to unreconciled accounts between BTr and agency books.

5.3 A mid-year and year-end Agency Performance Reviews (APRs) shall be conducted
by the DBM using the following documents, among others:

5.3.1 BFARs as of June 30 and as of December 31 encoded through the URS;

5.3.2 APR review report; and

5.3.3 Summary of findings and overall agency recommendation.

7 DBM-COA-DOF JC 2-97 dated March 21, 1997 (Revised and Updated Budgeting and Accounting Guidelines and Procedures
Applicable to FAPs Implemented by NGAs and GOCCs)

8 DBM CL 2003-12 dated December 4, 2003 (Guidelines on the Availment of Foreign Loan Proceeds in-Kind Superseding Circular

Letter No. 2003-9)

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6.0 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.

7.0 REPEALING CLAUSE

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

8.0 EFFECTIVITY

This Circular shall take effect immediately.

Department of Budget
and Management
C :
BENJAMIN E. DIOKNO
%.
Secretarlt, 1

4'

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 REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF BUDGET AND MANAGEMENT
BONCODIN HALL, GEN. SOLANO ST., SAN MIGUEL, MANILA

Schedule I of NBC No. 567 dated January 3, 2017

GAA Items For Comprehensive Release (FCR) through the 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:

a. For CFAG agencies 100%;

For the rest of NGAs the deficiency to cover the full year
requirements corresponding to the FY 2016 unfilled positions filled
up only in FY 2017 but have not been provided for in the
appropriations for salaries under the FY 2017 GAA.

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 MPBF.

1.2.2 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 :

Equivalent Record Forms (ERFs);

Conversion to Master Teacher (MT) Positions;

Reclassification of Positions and

Special Hardship Allowance, net of budget provision for increase.

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 ASEAN National Organizing Council (NOC) under the budget of the Office
of the President (OP);
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 2.1.2 Lump sum for Chalk Allowance and Repair and Maintenance of School
Buildings under MOOE of the budget of the DepEd;

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

2.1.4 Farm to Market Roads of DA categorized as FCR;

2.1.5 Tulay ng Pangulo Para sa Kaunlarang Pang-Agraryo Project (TPKP), GOP

Counterpart Funds, subject to endorsement by the Secretary of Agrarian
Reform of the location or sites where the bridges will be constructed;

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

submission of FY 2017 Annual Procurement Plan for Common-Use
Supplies and Equipment (APP-CSE) and conditions in incurring obligations
per DBM CL No. 2013-149;

2.1.7 Communication equipment, subject to prior clearance from the National

Telecommunications Commission;

2.1.8 Firearms, subject to prior approval of the Philippine National Police;

2.1.9 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;

2.1.10 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;

2.1.11 On-going Foreign-Assisted Projects (FAPs), subject to compliance with

certain conditionalities; and

2.1.12 Grants, subsidies and contributions subject to submission of details

indicating the purpose, amount for each beneficiary, and the complete list of
recipients, among others.

2.2 Contributions to International Organizations under MOOE, in compliance with

various Agreements with the Philippines as a signatory.

--nothing follows---

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

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 REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF BUDGET AND MANAGEMENT
BONCODIN HALL, GEN. SOLANO ST., SAN MIGUEL, MANILA

Schedule ll of NBC No. 567 dated January 3, 2017

Expenditure Items For Later Release (Negative List) 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 one quarter requirements of the full year
subsidy appropriation:

Philippine Rice Research Institute (PRRI)

Lung Center of the Philippines (LOP)
National Kidney & Transplant Institute (NKTI)
Philippine Children's Medical Center (PCMC)
Philippine Heart Center (PHC)
Philippine Institute of Traditional and Alternative Health Care (PITAHC)
Center for International Trade Expositions and Missions (CITEM)
Aurora Pacific Economic Zone and Freeport Authority (APECO)
Light Rail Transit Authority (LRTA)
Philippine Institute for Development Studies (PIDS)
People's Television Network, Inc. (PTNI)
I. Cultural Center of the Philippines (COP)
m National Irrigation Administration (NIA)
Philippine Coconut Authority (PCA)
Southern Philippines Development Authority (SPDA)
Zamboanga City Special Economic Zone Authority (ZCSEZA)

1.12 Specific Quick Response Fund (QRF) of agencies (DSWD, DND, DOH,
NEA, DPWH, and DND) under the National Disaster Risk Reduction and
Management Fund (NDRRMF).

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

a AFP retirees and war/military veterans of the DND-GHQ and PVAO;

b Uniformed personnel of DILG (BFP, BJMP, PNP including PC-INP);
c DENR-NAMRIA;
d DOTC-PCG, and

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 e. Other retirees whose pensions are funded by the national government,
i.e., ERC, DOLE-NLRC.

1.1.4 Full year requirement of Assistance to Disadvantaged Municipalities (ADM)

and Conditional Matching Grant to Provinces for Road Repair,
Rehabilitation and Improvement under the Allocation to Local Government
Units (ALGU) listed in Volume I-B of the FY 2017 GAA to be implemented
by LGUs. The release of said funds shall be subject to the compliance with
the conditions as may be provided under the guidelines to be issued by the
DILG and the DBM.

1.1.5 Allocation for LGUs such as MMDA (corresponding to the agency-specific

budget), shares from national wealth and special taxes shall be released
pursuant to the Special Provisions of the current year's GAA duly supported
by the necessary certifications from the BTr and the collecting agency.

1.2 Automatically Appropriated Items

1.2.1 RLIP through GARO for all agencies, except the following which shall be
released through SARO:

a. Full year requirements for RLIP for the following

departments/agencies:

i. For charging against Special Accounts in the General Funds

(SAGFs):
DOF-Insurance Commission
DPWH-Office of the Secretary (Road Board)
DOTr-Office of Transportation Security

ii. Covered by special arrangements:

ARMM-DepEd
ALGU-MMDA

b. RLIP for filled/created positions during the year and deficiencies in

RLIP contributions, as the case may be.

1.2.2 Full Year Allocation for other Automatically Appropriated Items through
SARO, as follows:

a. Interest Payments

Internal Revenue Allotment (IRA) of provinces, cities, municipalities,

barangays, including adjustments for MMDA and loan amortization
to MDFO

c. Pensions of Ex-Presidents and Spouses

d. Operating requirements of the following agencies included in Table

B.19 of the FY 2017 BESF which are fully dependent on income
collections accruing to its SAGFs or with very minimal budget
provision in the GAA:

i. DOF Insurance Commission PS, MOOE and CO;

DOTr - Office of Transport Security PS, MOOE and CO;
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 DOLE Office of the Secretary (Verification Fees) PS and
MOOE;
0E0 HLURB MOOE and CO; and
DOJ Land Registration Authority - MOOE and CO.

2.0 Issuance of SARO for the following appropriation items Requiring Submission of SBR
(supported with Separate/Detailed FP, MDP, physical plan and other required documentary
support) 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.

2.1.2 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.

2.1.3 Budgetary allocations introduced by the legislature for new items which
were not considered under the Presidents Budget, e.g, ARCP II - FAPS
under DAR.

2.1.4 Terminal Leave/Retirement Gratuity (TURG) of compulsory retirees of

departments/agencies chargeable against lump-sums in agency specific
budgets.

2.1.5 Eligible expenditures for charging against multi-user SPFs (e.g. CF, MPBF,
PGF, NDRRMF) consistent with the Special Provisions of the respective
SPF.

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

benefits of optional retirees including those retiring under R.A. 1616,
monetization of leave credits of government employees, separation
and incentives for those affected by restructuring, merger,
streamlining, abolition, or privatization.

The release of subsequent SAROs to cover pension requirements

for the second to fourth quarters of pensioners cited in item 1.1.3 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.

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

still in the government service, e.g., salaries, bonuses (including
performance-based bonuses and performance enhancement
incentive), allowances, associated premiums and other personnel
benefits, except those pertaining to filling-up of existing and newly
created positions already provided under the agencies' budgets.

2.1.6 Unreleased balance of the budgetary support for GOCCs, including equity
subsidy/contributions.

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 2.1.7 Allocation for LGUs, specifically collections pertaining to Fire Code fees,
shall be released pursuant to SP No. 1 of the Bureau of Fire Protection-
DILG under the FY 2017 GAA and specific guidelines governing the
allocation and use of the funds, duly supported by the pertinent certifications
from the BTr and the collecting agency.

2.2 Automatically Appropriated Items

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

2.2.2 Tax Expenditure Fund.

2.2.3 The rest of the SAGFs (excluding those cited under item 1.2.2 hereof),
listed in Table B.19 of the BESF, to be released supported with BTr
certification on the latest available balance of the SAGF.

---nothing follows-

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