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

2. 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

3. Legal Bases of the 5 agencies in
preparing the guidelines:…Continuation
RA 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

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

5. 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

6. 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

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

8. 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.

9. 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.

10. 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

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

12. 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

13. 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

14. 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.

15. 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

16. 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.

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

18. 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

19. 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.

20. 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

21. 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

22. 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

23. 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

24. 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.

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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:

31. 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

32. 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.

33. 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

34. 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.

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. 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.

43. 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

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

45. 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

46. Joint Circular No. 2015-001 dated January 8, 2015
download @

47. 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

48. Good day!