DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
�COA-DBM-DILG-Governance Commission for GOCCs-DND Joint Circular No. 2015-01 dated January 8, 2015�Guidelines on the Entitlement, Release, Use, Reporting and Audit of Confidential and/or Intelligence Funds��
81 Provinces�� 145 Cities�� 1,489 Municipalities��
COVERAGE
CONFIDENTIAL FUND (CF)- refers to the lump sum amount provided in appropriation ordinance for confidential expenses.��CONFIDENTIAL EXPENSES (CE)- refer to those expenses pertaining/related to surveillance activities in civilian government agencies that are intended to support the mandate or operations of the agency.�
DEFINITION OF TERMS
INTELLIGENCE FUND (IF)- refers to the lump sum amount provided as such in the GAA for NGAs.��INTELLIGENCE EXPENSES (IE)- refer to those related to intelligence information gathering activities of uniformed and military personnel, and Intelligence Practitioners agencies that have direct impact to national security.
DEFINITION OF TERMS
PEACE AND ORDER AND PUBLIC SAFETY PLAN (POPSPlan)- refers to the 3-year comprehensive and concerted action plan of an LGU that aims to attain a safe, secure, peaceful and progressive community.��PEACE AND ORDER PROGRAMS (POPs) – refers to any or a combination of the following 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 enforcement activities, (conduct of coordination meetings with partner agencies/ stakeholders, increase in police visibility, provision of equipage and/or logistical support for law enforcement agencies and conduct of awareness raising activities for the community);�b) Aid and/or capability development for personnel of law enforcement agencies, and volunteers/partners; and�
c) Programs for anti-illegal drug, illegal gambling, counter-insurgency and/or counter-terrorism, illegal logging, illegal mining, illegal fishing, smuggling and human trafficking.��
PHYSICAL and FINANCIAL PLAN – refers to the plan approved by the Head of Agency (HoA), supporting the request for funds for CE containing the estimated amount per project, activity and program.��
SPECIAL DISBURSING OFFICER (SDO) - refers to the HoA or a regular employee designated by the HoA to be in charge of making disbursements of CF so received and accountable therefor.
A provincial, city and municipal government whose peace and order is a priority concern may allocate confidential fund (CF), but not intelligence fund (IF), in its annual appropriation ordinance.��The specific amount for POP must be incorporated in the LG POPSPlan, provided that there is a specific appropriation for POP in its annual budget. �
�GENERAL GUIDELINES
The computation of allowable CF shall be based on the LGU’s POP only.��The total amount for CF shall not exceed thirty percent (30%) of the total annual amount allocated for LGU’s POP.��The source of the CF shall not come from the twenty percent (20%) Development Fund. �
�GENERAL GUIDELINES
TOTAL ANNUAL PEACE AND ORDER PROGRAM BUDGET =PhP10,000,000.00��30% of POP = PhP10,000,000.00 X 30% = PhP3,000,000.00��LGU MAY ALLOCATE PhP3,000,000.00��BUT CONFIDENTIAL FUND IS A SEPARATE BUDGET FROM THE POP.
�SAMPLE COMPUTATION
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 POC.��Additional CF in excess of the limitation, additional appropriation supported with duly authorized supplemental budget shall be approved by the Secretary of DILG.
�GENERAL GUIDELINES
Expenses that may be chargeable against allocation for confidential undertakings shall be limited to the following:�a) purchase of information, necessary for the formulation and implementation of programs, activities and projects relevant to the national security and peace and order;
�GENERAL GUIDELINES
b) rentals of transport vehicle related to confidential activities;�c) rentals and the incidental expenses related to maintenance of safe houses;�d) purchase or rentals of supplies, materials and equipment for confidential operations that cannot be done through regular procedures without compromising the information gathering activity concerned;
�GENERAL GUIDELINES
e) payment of rewards to informers;�f) uncover/prevent illegal activities that pose a clear and present danger to agency personnel/property, or other facilities and resources under the agency protection, done in coordination with the appropriate law enforcement agencies; and�g) others that may be authorized by the GAA or other special law/s.
�GENERAL GUIDELINES
Conduct of confidential activities shall, as far as practicable, be done with proper collaboration with any of the following law enforcement agencies: (a) the Philippine National Police, (b) the Armed Forces of the Philippines, (c) the Philippine Drug Enforcement Agency, or (d) other agencies with law-enforcement functions. Such collaboration, if undertaken, must be specified in the accomplishment report of the concerned agency.�
�GENERAL GUIDELINES
CF shall not be used for: (a) salaries, wages, overtime, additional compensation, allowance or other fringe benefits of officials and employees who are employed by the government in whatever capacity or elected officials, except when authorized by law, (b) representation, consultancy fees or entertainment expenses, or (c) construction or acquisition of buildings or housing structures.
�GENERAL GUIDELINES
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 Special Disbursing Officer.�
�GENERAL GUIDELINES
No transfer of funds/appropriation through cash advances or any form of payment from one agency to another for purposes of confidential activities shall be allowed.�
�GENERAL GUIDELINES
A Provincial Governor, City Mayor or Municipal Mayor may assume the responsibility as Special Disbursing Officer (SDO) of public funds for confidential purposes, or may designate a regular employee of concerned LGU for that purpose. .�
�SPECIAL DISBURSING OFFICER
Provincial Governor, City Mayor or Municipal Mayor� Any utilization of funds for confidential purposes that does not exceed thirty percent (30%) of the total annual amount allocated for the Peace and Order Program shall be approved by the Provincial Governor, City Mayor, or Municipal Mayor, as the case maybe.
�APPROVING AUTHORITY
Secretary of Interior and Local Government� Any utilization of funds for confidential purposes that exceeds thirty percent (30%) of the total annual amount allocated for the POP prescribed under Item 5.1.3.1 of JC shall be subject to the approval by the SILG (Section 78 of Republic Act No. 10651 dated December 29, 2014, or the General Appropriations Act for CY 2015�
�APPROVING AUTHORITY
Any request for additional CF in excess of the limitation shall be filed with the concerned DILG Field Officer and supported with the following documentary requirements:�1. Duly approved Three-Year Peace and Order and Public Safety Plan�2. Local Peace and Order Council Resolution duly approved by two-thirds (2/3) of the total membership approving the POPSPlan and the release of the CF�
�ADMINISTRATIVE REQUIREMENTS
3. Certification from the concerned PNP Chief of the locality relative to the peace and order situation highlighting in concrete details the circumstances which require the urgency in allocating CF�4. Annual and Supplemental Appropriations Ordinance indicating the appropriations for CF�5. Certification from the Local Budget Officer as to the availability of appropriations�
�ADMINISTRATIVE REQUIREMENTS
6. Certification of Full Disclosure Policy Compliance (posting requirement in 3 conspicuous places for the last 2 quarters, duly signed by the DILG Regional Director and attested by a CSO representative)��7. Physical and Financial Plan (for both the original allocation for CF and the subject request)�8. �
�ADMINISTRATIVE REQUIREMENTS
8. Quarterly Accomplishment Report on the use of CF for the last 2 quarters ��9. Statement of itemized peace and order program duly certified by the Budget Officer��10. Certification from the Regional Director concerned as to the Total Annual Peace and Order Program (allocated and budgeted)�
�ADMINISTRATIVE REQUIREMENTS
Upon review of the documents and field- verification of the circumstances as to the need to allocate additional CF, the DILG Regional Office shall forward the request within five (5) days to the Director of the Bureau of Local Government Supervision (BLGS) for further evaluation.�The Director of the BLGS shall submit his or her recommendation to the Secretary of the DILG, who shall approve or disapprove the request. �
�RESPONSIBILITY OF THE DILG FIELD/REGIONAL OFFICE/BLGS
A quarterly accomplishment report duly certified by the local chief executive concerned shall be submitted not later than the 15th day of the first month of the succeeding quarter to, the Secretary thru the BLGS.�Said report shall contain specific detail of the corresponding expenditures by object as indicated in the Physical and Financial Plan.
�REPORTING REQUIREMENTS