Republic of the Philippines
DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS ""-
CENTRAL OFFICE "
Manila
March 27, 2019
DEPARTMENT MEMORANDUM )
CIRCULAR NO.
29 ~
)
Series of 2019 ~ ()a.~.'7
FOR / TO : Undersecretaries
Assistant Secretaries
Service Directors
Bureau Directors
Regional Directors
Heads of UPMOs
District Engineers
This Department
For information and guidance, attached is a copy of DBM Circular Letter No. 2019-7 dated March
26,2019 entitled "RELEASE OF FUNDS FOR THE SECOND QUARTER OF FY 2019".
A copy of said National Budget Circular may also be downloaded from the DPWH
website:[Link] If an office cannot access the DPWH website, a hard copy may be
obtained from the Records Management Division, HRAS upon request.
For dissemination to all concerned.
B. ELI~YAP, Ph.D., CESO II
Assista~~!~ for Support Services
End: Circular Letter No. 2019-7 dated March 26, 2019
Cc: Office of the Secretary
8.1.2 JJqMAP
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF BUDGET AND MANAGEMENT
BONCODINHALL, GENERAL SOLANO STREET, SAN MIGUEL, MANILA
I CIRCULAR LETIER ~ No. 2019-7
March 26 ,2019
To Heads of Departments/Agencies/State Universities and Colleges
and Other Offices of the National Government; Budget Officers;
Heads of Accounting Units, and All Others Concerned
Subject RELEASE OF FUNDS FOR THE SECOND QUARTER OF
FY 2019
1.0 This Circular covers the following:
1.1 All agencies in the national govemment, including State Universities and
Colleges (SUCs); and
1.2 The Bureau of the Treasury for the amounts of assistance to
govemment-owned and/or controlled corporations (GOCCs) and local
government units (LGUs).
2.0 Pending enactment of the General Appropriations Act (GAA) for
FY 2019, all operating units, Le., agencies of the national government
receiving allotment/Notice of Cash Allocation (NCA) directly from DBM, are
authorized to obligate the amount corresponding to their actual
requirements under the regular budget for the second quarter of FY 2019
but not to exceed the following percentages:
2.1 Chargeable against Agency Specific Budget
2.1.1 Personal Services (PS) - twenty-five percent (25%) of the PS
level using actual salary requirements as of
December 31, 2018 (Le., number of filled positions and salary
rates) but not to exceed the level provided under the FY 2019
National Expenditure Program (NEP). This PS level shall
include the following:
• Mid-Year Bonus;
• Clothing and Uniform Allowance; and
• Built-in funds in the agency budget for creation of new
positions, inclusive of the required government premiums
in PHILHEALTH and Employees Compensation Insurance
Premiums (ECIP).
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2.1.2 Maintenance and Other Operating Expenses (MOOE), Capital
Outlays (CO), and capitalized wages and salaries - twenty-five
percent (25%) of regular programs and ongoing
foreign-assisted/locally-funded projects which appear under the
FY 2018 GAA (Republic Act [RA] No. 10964), and the FY 2019
NEP, whichever is lower in amount.
2.2 Chargeable against Automatic Appropriation
2.2.1 Retirement and Life Insurance Premiums (RLlP) - equivalent to
12% (or the applicable rate otherwise provided under special
laws) of the salaries component under item 2.1.1 of this Circular,
as well as the corresponding RLiP to the fourth tranche
compensation adjustments pursuant to Executive Order (EO)
No. 201, s. 2016, as amended by EO No. 76, s. 2019, and
National Budget Circular No. 573, s. 2018.
3.0 Obligations incurred pursuant to this Circular letter (Cl) shall be recorded in
the appropriate Registry of Appropriations and Allotments, as overdraft in
allotment. This shall be adjusted once the allotment (obligational
authority/General Appropriations Act as an Allotment Order) for the purpose is
approved. The rules and regulations pertinent to the recording of these
budgetary accounts are prescribed under Commission on Audit (COA)
Circular No. 2013-002 dated January 30, 2013, amending COA Circular No.
2004-008 dated September 20, 2004, COA Circular No. 2014-003 dated
April 15, 2014, and COA Circular No. 2015-007 dated October 22,2015.
4.0 Items enumerated below are not covered by this obligational authority and
shall be issued Special Allotment Release Order (SARO):
4.1 Items Not Requiring Submission of Agency's Special Budget Request
(SBR):
4.1.1 Budgetary support to GOCCs which are fully dependent on
national government assistance or are heavily subsidized,
equivalent to the second quarter of FY 2019 requirements.
4.1.2 Internal Revenue Allotment (IRA) of provinces, cities,
municipalities, and barangays. Release of SARO shall be
corresponding to the second to fourth quarter requirements
based on the FY 2019 NEP.
4.1.3 Requirements of the fourth tranche compensation adjustment
authorized per EO No. 201, s. 2016, as amended by EO No. 76,
s. 2019 inclusive of the required government premiums in
PHllHEAl TH and ECIP.
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4.2 Items Requiring SBR Submission
4.2.1 Centrally-managed items (CMls) of departments/agencies
chargeable against Regular Budget, FY 2018 GAA
(RA No. 10964), as reenacted.
4.2.2 Charges against Pension and Gratuity Fund (PGF)
FY 2018 GAA (RA No. 10964), as reenacted.
[Link] Actual requirements for retired government
employees, Le., terminal leave benefits and retirement
gratuity of all optional retirees, regardless of
retirement law.
[Link] Actual requirements for pension benefits of the Armed
Forces of the Philippines retirees, war/military
veterans of the Department of National Defense, and
uniformed personnel of the Department of the Interior
and Local Government, National Mapping and
Resource Information, and Philippine Coast Guard, as
well as other retirees whose pensions are funded by
the national government, Le., Energy Regulatory
Commission, Department of Labor and Employment-
National Labor Relations Commission, Professional
Regulation Commission, Department of Justice-Office
of the Solicitor General, and Office of the Government
Corporate Counsel. The amount of release shall be
based on the number of pensioners and rates as of
December 31,2018.
4.2.3 Charges against other' Special Purpose Funds such as National
Disaster Risk Reduction and Management Fund (NDRRMF),
Miscellaneous Personnel Benefits Fund (MPBF), Contingent
Fund (CF), among others.
4.2.4 Chargeable against Automatic Appropriations
Special Accounts in the General Fund (SAGF) of agencies-
amount to be released shall be limited to the uncommitted cash
balance with the Bureau of the Treasury under the SAGF of the
agency concerned.
5.0 All SAROs to be issued chargeable against the FY 2018 Budget
(RA No. 10964), as reenacted, under items 4.2.1, 4.2.2, and 4.2.3 of this
Circular shall be valid for obligation while the FY 2019 GAA is not yet in effect.
6.0 NCAs shall be issued for the items covered with obligational authority
authorized under this Circular, as well as items to be issued SAROs, based
on the DBM-evaluated Monthly Disbursement Program (MOP).
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(
7.0 Any unobligated allotment out of this obligational authority or SAROs
issued under item 4.0 of this Circular chargeable against the Regular Budget
as of the effectivity of the FY 2019 GAA shall be reported to DBM by the
agency within- 30 days from the effectivity of the 2019 GAA. Such
unobligated allotments shall be deemed withdrawn and, if necessary,
another may be issued chargeable against the FY 2019 GAA.
This policy is, however, not applicable to allotment releases charged
against Automatic Appropriations.
8.0 Agencies are likewise reminded to regularly submit to DBM the monthly
documents/reports prescribed under COA-DBM Joint Circular
No. 2014-1 dated July 2, 2014 (including, but not limited to, Financial
Accountability Report [FAR] No.4: Monthly Report of Disbursements), as well
as DBM Circular Letter No. 2015-9 dated June 30, 2015 (Prescribing the
Submission of Summary Performance Monitoring Report) within the
prescribed submission timelines after the end of each month starting from
January up to June 2019, as basis for determining the status of
program/project implementation and expenditures incurred for the
production/delivery of goods and services to the public. Said report shall be
consolidated for submission to the President.
9.0 For compliance.
JA~UEL
Officer-in-Charge, DBM
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