Salient Features Guidelines Intelligence and Confidential Funds ----------------------------------------------- Joint Circular No. 2015-001 dated January 8, 2015 DILG DBM DND GCG COA Salient Features Of the Guidelines

Legal Bases of the 5 agencies in preparing the guidelines: General Provisions 77 and 78 of the 2015 GAA requiring DBM to issue the guidelines Administrative Code of 1987 prescribing DILG to prescribe rules and regulations and other issuances and implementing laws on the general supervision of LGUs and the DND to formulate policies on matters concerning national security

Legal Bases of the 5 agencies in preparing the guidelines:…Continuation RA 10149 creating GCG as central advisory with authority to formulate policies involving GOCCs Section 2(2) Article IX D of 1987 Constitution which mandates COA to promulgate accounting and auditing rules and regulations

Release and Use, Reporting, and Audit Coverage of the Guidelines: Entitlement Release and Use, Reporting, and Audit

confidential Expenses (CE) Intelligence Expenses (IE) confidential Expenses (CE) surveillance activities in civilian government agencies that are intended to support the mandate or operation of the agency intelligence information gathering activities of uniformed and military personnel and intelligence practitioners that have direct impact to national security

General Guidelines CF Entitlement to LGU: LGUs shall only be entitled to CF pursuant to general provisions of GAA 2015 LGUs whose peace and order is a priority concern and which have duly allocated CF, but not IF, in their annual appropriation ordinances

Peace and Order Program The total amount for CF shall not exceed thirty percent (30%) of the total amount allocated for the LGUs POP

Peace and Order Program Refers to any or a combination of the ff. programs, activities and projects which may be included as part of the Peace and Order and Public Safety Plan of an LGU: a. Crime prevention and law enforcements b. Aid and/or capability development for personnel of law enforcement agencies, and volunteers/partners c. Programs for anti-illegal drug, illegal gambling, counter-insurgency and/or counter-terrorism, illegal logging, illegal mining, illegal fishing, smuggling and human trafficking.

General Guidelines…continuation All allocations of CF shall be supported with a Physical and Financial Plan indicating the proposed amount allocated for each program, activity, and project, where disbursements pertaining to CE shall be based.

General Guidelines…continuation Release and utilization of the total CF shall be covered by a resolution duly approved by two-thirds (2/3) of the total membership of the Local Peace and Order Council

General Guidelines…continuation Requirement for additional CF in Excess of Limitation Approved Supplemental budget by local Sanggunian Request approved by the DILG Secretary

General Guidelines…continuation CF shall be used only for the ff. expenses: 1 Purchase of Information 2 Rental of transport vehicle 3 Rentals and incidental expenses related to maintenance of safe houses 4 Purchase or rental of supplies, materials and equipment

General Guidelines…continuation Uses of CF….continuation 5 Payment of rewards to informers (non- employee of concerned agency) with the ff. conditions: a. Approval by the Head of LGU b. Supporting documents evidencing the success of information gathering and/or surveillance activities c. Directly related to the conduct of the specific confidential activities of authorized agencies 6 Uncover/prevent illegal activities 7 Others that may be authorized by the GAA or other special law/s

General Guidelines…continuation Conduct of confidential activities shall be done in collaboration with: a. Philippine National Police b. Armed Forces of the Philippines c. Philippine Drug Enforcement Agency, or d. Other agencies with law- enforcement functions.

General Guidelines…continuation In no case shall CF be used for: officials and employees employed by the government in whatever capacity or elected officials, except when authorized by law. Salaries, wages, overtime, additional compensation, allowance or other fringe benefits

General Guidelines…continuation In no case shall CF be used for:…. continuation 1 Representation, consultancy fees or entertainment expenses; or 2 Construction or acquisition of buildings or housing structures.

General Guidelines…continuation Disbursements from CF shall be supported with documentary evidence of payment to be submitted to ICFAU upon liquidation

General Guidelines…continuation Disbursements from CF shall be supported by Certification of the Accountable Officer of the CF under oath with the following: 1 Certifying officer or employee is accountable for the disbursements 2 That expenses were incurred in connection with the LGU’s confidential operations and activities

General Guidelines…continuation 3 Purchase of equipment (if there is any) is relevant to the confidential activities. In case of misuse of CF, and depending on the participation in the transaction, the Budget Officer, Chief Accountant, the Treasurer and Project Officer may likewise be held accountable with the SDO.

Procedural Guidelines: Release, Augmentation, and additional CF LGUs with Peace and Order concerns shall allocated in their respective Annual Appropriation Ordinance funds for POP Approved resolution by two-third (2/3) of the total members of the Local Peace and Order Council LGU shall secure certification from the concerned PNP Chief relative to the peace and order situation in the locality

Requirements for additional CF Duly approved 3-year Peace and Order and Public Safety Plan Annual and Supplemental Appropriations Ordinance indicating the appropriations for CF Certification from the Budget Officer as to the availability of appropriations Certifications from PNP chief as to peace and order situation in the locality Physical and Financial Plans for both the original allocation for CF and the subject request Certification of Full Disclosure Policy (FDP) policy

Reporting Requirements Quarterly Accomplishment Report shall be submitted as follows: Secretary of DILG ICFAU containing proof of receipt by DILG LGU shall report the specific detail of the corresponding expenditures by object in the Accomplishment Report as indicated in the Physical and Financial Plan

Guidelines: Grant and Liquidation Cash advance shall be used for specific legal purpose related to CF Cash advance shall be drawn by duly designated and bonded SDO or LCE. In no case shall the cash advance be utilized for reimbursement of the expenses prior to the granting of cash advance

Guidelines: Grant and Liquidation Cash advances chargeable against the CF shall not exceed the appropriation Cash advance shall be limited to the requirements for three (3) months. No transfer of funds/appropriation through cash advance or any form of payment from one LGU to another for purposes of confidential shall be allowed.

Supporting Documents: Granting of Cash advance Certified true copy of the designation of the SDO Certified true copy of the fidelity bond Certified true copy of the transmittal letter of the LR of the previous cash advance duly stamped “Received” by ICFAU Certification of the Accountant that the SDO has no unliquidated CF cash advances

Supporting Documents: Granting of Cash advance Original specimen signatures of signatories of DV, ObR, and LR Certified true copy of the Physical and Financial Plan where disbursements of the cash advance of the CF shall be based Certified true copy of the annual budget bearing approval of proper authorities

Granting of Cash Advance: Additional Requirements Certified true copy of the Annual/Supplemental budget supported with the AIP showing the allocation/budget for POP and the corresponding Appropriation Ordinance Statement of itemized POP of the LGU where the allowable CF was computed, duly certified by the Budget Officer

Additional Requirements Certified true copy of the minutes of the meeting evidencing 2/3 votes of the members of the Local Peace and Order Council approving the POP and the release of CF Certification from the PNP Chief on the peace and order situation in the area Approval by the DILG Secretary in case of additional appropriation for CF Certified copy of the ObR

Submission of Documents: Within seven (7) days after the release of check, the cash advance voucher with covering transmittal letter enumerating the supporting documents shall be submitted by the local accountant or authorized representative in a sealed envelope, to the concerned COA Audit Team Leader for post audit

Liquidation of Cash Advance Liquidation of cash advances for CF shall be audited by ICFAU. All cash advances for CF shall be liquidated within 30 days after every quarter or from the approved target date of completion of the project/activity, or after the cash advance had been fully utilized whichever comes first in accordance with the following procedures:

Liquidation of Cash Advance Submission of the LR duly signed by the HoA or SDO approved by HoA, together with the supporting documents, directly to ICFAU in the following manner: a. registered mail b. courier c. authorized liaison officer

Liquidation of Cash Advance The agency liaison officer’s authorization by the HoA is required The ICFAU authorized receiving staff checks completeness of the liquidations through a checklist. If incomplete, the ICFAU shall not stamp “Received” the Transmittal Letter and shall return the documents in a sealed envelope signed by the ICFAU staff.

Liquidation of Cash Advance A copy of the transmittal letter, duly received by the ICFAU, shall be forwarded by the liaison officer to the agency accountant and the COA ATL concerned. The accountant shall record the liquidation of the cash advance in the books of accounts through journal entry voucher

Liquidation of Cash Advance In case LRs are received by ICFAU thru mail, the “Received” copy of the transmittal shall be immediately sent to the concerned agency within five (5) days upon its receipt.

Audit Cash advance vouchers for CF shall be post audited by the ATL within seven (7) days from the release of the check. Results of post-audit shall be furnished the ICFAU Audit of Liquidation Report shall be done by ICFAU, Office of the Chairman, COA No Credit advice shall be issued

Audit In case ND is issued by ICFAU, the LGU accountant shall restore the corresponding amount of disallowance in the books of accounts and shall form part of the unliquidated cash advance of the SDO/HoA

Audit Utilization of Cash Disbursement Records (Cashbook) is required Administrative/Penal Sanctions are cited in the JC All documentary requirements, mentioned in the JC for Local, National, and Corporate agencies

Responsibilities of the LCE Assume the responsibility as SDO or designate a regular/permanent employee for that purpose Approve the cash advance for CF and oversee its agency-wide used and disposition Institute and maintain sound and effective internal control

Responsibilities of the LCE Approve the LR of the cash advances for CF Approve and submit quarterly accomplishment report on the utilization of CF to the DILG Ensure the submission by the accountant of all DVs for CF, with complete required supporting documents to the concerned COA ATL Ensure compliance with this Circular and related issuances of government oversight bodies on CF

Responsibilities: SDO Disburse the CF in accordance with the provisions of this Circular Maintain separate records of all transactions in CDR Prepare and submit for LCE approval, the LR and progress reports and the quarterly accomplishment report on the use of CF Prepare and submit to ICFAU the LR supported with required documentary requirements in accordance with this circular

Responsibilities: Agency Accountant Ensure that the amount of CE will not exceed the authorized funds provided for the CF Ensure that the amount of CF handled by SDO will not exceed the maximum cash accountability covered by the fidelity bond Record the cash advance in the books of accounts and maintain separate subsidiary record of cash advance solely for CF per SDO

Responsibilities: Agency Accountant Submit all DVs for cash advance for confidential activities, with complete required supporting documents, within seven (7) working days from release of the check to the COA ATL concerned in a sealed envelope with a visible label “CONFIDENTIAL – For the COA ATL Only” and with a covering transmittal letter enumerating the submissions.

Responsibilities: Agency Accountant Record the liquidation in the books of accounts within five days after the receipt of the copy of the transmittal of documents duly acknowledged by ICFAU. He shall submit the corresponding Journal Entry Voucher (JEV) to the COA ATL Ensure that the amount subject of ND is recorded in the books of accounts upon receipt of the said notice from ICFAU

Budget Officer Certify the availability of appropriations; Prepare and certify the Statement of Itemized POP of the LGU where the allowable CF was computed

List of Annexes List of Acronyms Annex A – Physical and Financial Plan Annex B - Certification of the Accountable Officer Annex C - Accomplishment Report Annex D - Proforma Transmittal Letter to ATL Annex E - Liquidation Report Annex F - Proforma Transmittal Letter to COA Annex G - Report on the Submission of Cash Advance for CE/IE and results of audit thereof

Joint Circular No. 2015-001 dated January 8, 2015 download @ http://www.coa.gov.ph

Workshop Identify on the following list of Activities the appropriate POP (follow the criteria as provided for in the Joint Circular regarding POP) Provide explanation for each POP inclusion. Compute for the 30% allowable CF

Good day!