FY 2020

FUND RELEASE
National Budget Circular No. 578
Philippine International Convention Center
Pasay City
January 23, 2020

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 WHAT IS AN ALLOTMENT RELEASE
PROGRAM?

- Maximum allotment that can be issued to an

agency

- Shall be equal to the total of the following:

 R.A. No. 11465, FY 2020 GAA; and

 Automatic appropriations, i.e., RLIP, SAGF, among

others.

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 Prior to NBC No. 578 and
Enactment of R.A. No. 11465
DBM issued CIRCULAR LETTER NO. 2020-1
January 2, 2020

 Agencies are authorized to incur obligation equivalent

to January 2020 regular operating requirements
 Such overdraft in allotment are not considered “add-
ons” to the ARP
 To be adjusted upon the effectivity of the FY 2020
GAA

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VALIDITY OF APPROPRIATIONS FOR THE
FY 2020 BUDGET

ALL appropriations authorized under

the FY 2020 GAA, including budgetary
support to GOCCs and SAGF shall be
valid for release and disbursement for
the purpose specified until
December 31, 2020
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 TRANSITION PERIOD FOR THE
CASH BUDGETING SYSTEM
For infra-related CO
o completion of construction, inspection,
acceptance and payment - up to December
31, 2021

For MOOE and other CO items

o delivery, inspection, acceptance and
payment - up to June 30, 2021
This validity period shall also apply to the FY 2019 Continuing
Appropriations under R.A. No. 11464

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 TRANSITION PERIOD FOR THE
CASH BUDGETING SYSTEM

Financial assistance to LGUs released

during the year
o shall be available for disbursement for the
purpose specified until December 31, 2021

Statutory shares of LGUs

o shall be available for obligation and
disbursement until fully expended

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After the end of validity period, all
unreleased appropriations or
unexpended or undisbursed funds shall
revert to the unappropriated surplus of
the General Fund

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 FLEXIBILITIES ALLOWED TO AGENCIES

 Modification in Allotments issued

 Use of PS Appropriation for any PS deficiency

 Use of savings to augment any deficient item of

appropriation

 Use of fees and income

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 MODIFICATION OF ALLOTMENT
Change within an activity or project without
increasing the total amount appropriated therein,
subject to the approval of the designated authority
ensued by the timely submission of reports by all
offices concerned

The existence of the recipient allotment class or

object of expenditure within a P/A/P is not
necessary for purposes of modification

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 APPROVING AUTHORITY FOR THE
MODIFICATION IN THE ALLOTMENT
President of the Philippines
Intelligence Funds within the Executive Branch
Heads of Agencies
• Change in the details of an activity or project without
changing its nature and within the same operating unit.
• Change in the object of expenditure within an allotment
class (PS, MOOE, or CO).
• Use of MOOE for the payment of CNA incentive,
during the validity of appropriations

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 APPROVING AUTHORITY FOR THE
MODIFICATION IN THE ALLOTMENT

DBM Secretary
• From one allotment class to another
• From one operating unit to another
• Within a Special Purpose Fund
• Within purposes of Unprogrammed Appropriations
• Payment of newly-authorized Magna Carta
benefits not otherwise appropriated

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 USE OF PS APPROPRIATION FOR ANY PS
DEFICIENCY

• Shall not be considered as a form of modification in

allotment
• Any available allotment for PS may be utilized for
the payment of deficiencies in authorized personnel
benefits
• In instances where agencies have newly-filled
positions or staffing modifications, as well as
authorized benefits not originally provided in their
PS levels, the unobligated PS allotments may be
utilized

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 USE OF PS APPROPRIATION FOR ANY PS
DEFICIENCY (con’t.)
Limitation in the use of available PS allotments

• Released allotments which cannot be reallocated to

other PS items
- RLIP
- SAGFs, except if expressly authorized in the law
creating them

• Released allotments for PS cannot be used to pay CNA

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 USE OF SAVINGS FOR AUGMENTATION

Savings refer to portions or balances of any

released appropriations for P/A/Ps:
• Due to completion, final discontinuance or
abandonment; or
• With decreased cost due to improved efficiency.

Augmentation is the act of the constitutional

officers authorized to use savings in their
respective appropriations to cover a
deficiency in any existing P/A/P within their
respective offices.
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 USE OF SAVINGS FOR AUGMENTATION

 Only existing P/A/Ps may be funded by

augmentation from savings regardless of
the availability of allotment class/es
 Needs OP approval

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 USE OF FEES AND INCOME

Departments/agencies are no longer

authorized to avail of excess income
since the annual financial requirements
of their programs/projects have been
fully provided

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 USE OF FEES AND INCOME (cont.)

- Fees from the conduct of seminar, conference,

training and oath taking from government and
private agency participants

- Proceeds from the sale of official publications

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 IMPORTANT TIMELINES

 January 15, 2020 - submission to DBM of agencies' revised

Budget Execution Documents (within 7 working days after the
approval of the GAA)
 November 15, 2020 - deadline for agency request/s that
requires issuance of SAROs/additional NCAs.
 Within 30 days after the end of each quarter - submission of
the BFARs per COA-DBM JC 2019-1 dated January 1, 2019
 On or before 30th day following the end of the year -
submission of the BFARs per COA-DBM JC 2019-1 dated
January 1, 2019
 Aging of Unpaid Obligations

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 IMPORTANT TIMELINES

 On or before the tenth day of the month immediately

following the covered period:

 The Monthly Report on Appropriations, Allotments, Obligations

and Disbursements

 Monthly Report of Disbursements (FAR No. 4)

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AGENCY PERFORMANCE REVIEW (APR)

The DBM shall conduct the following APRs:

• Mid-year APR (covering January to June)

• Year-end Review (covering January to December)

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APR will be used as one of the bases for
determining the necessity of any of the following:

 Release of the balance of the FLR items under

the FY 2020 Programmed Appropriations

 Additional release from SPFs

 Approval of requests for modification in allotment

 Revision of plans/targets as reflected in the DBM-

evaluated BEDs submitted by agencies

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SPECIFIC GUIDELINES ON THE
RELEASE OF FUNDS FOR
FY 2020

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OBLIGATIONAL AUTHORITIES SHALL
BE RELEASED THROUGH:

GAAAO - For Comprehensive Release (FCR)

items

GARO/SARO - For Later Release (FLR) items

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 2019 2020
Expenditure Items
FCR FLR FCR FLR
PS
Filled positions  
Lump-sum for PS under agency
specific budget:
-Unfilled positions  
-Equivalent Record Forms  
-Conversion to Master Teacher  
positions, among others  
-Terminal Leave/Retirement Gratuity
(TL/RG) of compulsory retirees
 
RLIP  

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 2019 2020
Expenditure Items
FCR FLR FCR FLR
MOOE and CO
Lump-sum Appropriations or CMIs    
Farm to Market Roads    
Quick Response Fund (QRF)  
Research and development projects  
Budgetary support to GOCCs  
IRA including block grant of BARMM  
SAGF  
Interest Payment  
Congress-introduced increases in
appropriations and new budgetary  
items

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FLR: List of Expenditure Items (Negative List) for
release through SARO
Requiring submission of SBR and other additional
documentary requirements
 Centrally-managed items or Lump-sum Appropriations with no
details
 Right-of-way acquisitions, Feasibility Studies, Cash Subsidy
 Budgetary items in the Special Provisions of National
Government Agencies
 Congress-introduced increases and new budgetary items
 Multi-user Special Purpose Funds
 Unreleased balance of the budgetary support for GOCCs
 Allocation to LGUs - Local Government Support Fund

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FLR: List of Expenditure Items (Negative List) for
release through SARO
 Congress-introduced increases in appropriations and
new budgetary items
o Agency certification that the project can be implemented
within the validity of the appropriation
o Project Profile
o Certification/clearances from appropriate government
agencies for infrastructure and non-infrastructure projects
 DPWH - for building structural integrity/resiliency;
signed picture of geo-tagged actual location of
project/activity, etc
 DENR - for environmental clearance

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FLR: List of Expenditure Items (Negative List) for
release through SARO
 Congress-introduced increases in appropriations and
new budgetary items (cont.)
o For DPWH infrastructure projects, certification by the Department
Secretary that the detailed list of infrastructure projects is already
implementation-ready as vetted by the Regional Office/District
Engineering Office, as the case may be and endorsed by the
Regional Development Council concerned to ensure alignment
with regional priority plans and programs
o Commitment from the agency head to fund the cost of the
maintenance and repairs of the project
o Certification from the agency head that the project/activity is not
fully funded from other sources
o President’s approval/directive on the basis of initial DBM
recommendation

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 DISBURSEMENT AUTHORITIES

 For Cash Disbursements

 Notice of Cash Allocation (NCA)

 For Non-cash Disbursement

 Non-Cash Availment Authority (NCAA)
 Cash Disbursement Ceiling (CDC)
 Tax Remittance Advice (TRA)
- issued by agencies to BIR

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 DISBURSEMENT AUTHORITIES

 NCA issuance will now be subject to the MDP

to be submitted and evaluated by the DBM

 Succeeding NCA issuance to cover regular

operating requirements will be subject to
submission of Monthly Report of
Disbursements (FAR No. 4)

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 NCAs FOR CREDITING
 Regular MDS Sub-Accounts
o Comprehensive NCA covering the quarterly regular
cash requirements
 Specific monthly allocation to be credited on the
1st working day of each month
o Other NCAs
 To be credited on the date of issuance of such NCA
and on the 1st working day of the succeeding
month, if any
 Trust MDS Sub-Accounts
 To be credited on the date of issuance of such
NCA

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VALIDITY OF DISBURSEMENT AUTHORITIES

 Regular MDS Sub-Accounts – until the last working

day of the 3rd month of the quarter covered
 Trust MDS Sub-Accounts – until the last working
day of the year or December 31, 2020

 Other Disbursement Authorities (CDC & NCAA) –

from date of issuance until the last working day of the
year or December 31, 2020

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 OTHER BUDGET AUTHORIZATION
DOCUMENTS
Multi-Year Contracting Authority (MYCA)

 is the authority issued by the DBM to agencies,

covering the full contract cost, for the procurement of
multi-year projects
 shall be used as the basis in the certification of
availability of funds required prior to contract execution
 funding requirements for subsequent years for projects
covered by MYCA included in the NEP

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 OTHER BUDGET AUTHORIZATION
DOCUMENTS (con’t.)
Purchase of motor vehicles as reflected in the FY
2020 GAA shall be classified as FCR

- motor vehicles evaluated and included in the

Confirmation Letter during budget preparation
- with the same number of vehicles to be
procured, specification, unit cost, intended
use/user

Confirmation Letter = APMV

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Thank You!!!

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