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Intelligence and Confidential Funds-----------------------------------------------

Salient Features

Of the

Guidelines

DILG DBM DND GCG COA

Joint Circular No. 2015-001 dated January 8, 2015

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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

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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

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• Entitlement • Release and Use, • Reporting, and • Audit

Coverage of the Guidelines:

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Distinction

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

Confidential Expenses (CE)

Intelligence Expenses (IE)

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General Guidelines

CF and IF: NGAs which

are expressly provided budget allocation under the GAA or other law/s

CF: GOCCs as provided in

their COBs as may be expressly authorized by the GCG under R.A. No. 10149, and by the DBM for all other GOCCs; and

LGUs whose peace and order is a priority concern and which have duly allocated CF, but not IF, in their annual appropriation ordinances

The following are entitled to CF and/or IF:

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The total amount for Confidential Fund shall not exceed thirty percent (30%) of the total amount allocated for the LGUs POP

Peace and Order Program

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Peace and Order Program

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.

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 so that these shall be eligible for funding of the CF:

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2. All allocations of CF and/or IF 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 and IE shall be based.

General Guidelines…continuation

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3. For NGAs, the amount appropriated for CF shall be included among the items to be released comprehensively upon approval in the GAA, subject to the approval of the Department Secretary concerned, or the HoA in the case of Constitutional Commission and other bodies belonging to the Constitutional Fiscal Autonomy Group (CFAG) such as the Office of the Ombudsman.

On the other hand, releases for IF shall be subject to the prior approval of the President of the Philippines.

General Guidelines…continuation

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For NGAs, approval of the President of the Philippines is required prior to release and disbursement of such savings for said activities.

General Guidelines…continuation

4. Use of savings for Budget Augmentation for intelligence and counter intelligence activities

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5. For GOCCs, release and utilization of the CF shall require prior approval of the President of the Philippines

General Guidelines…continuation

6. For LGUs, 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.

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For LGUs:

Approved Supplemental budget by local Sanggunian

Approved request by the Secretary of DILG.

General Guidelines…continuation

Requirement for additional CF in Excess of Limitation

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8. CF shall be used only for the ff. expenses:

8.1 Purchase of Information 8.2 Rental of transport vehicle 8.3 Rentals and incidental

expenses related to maintenance of safe houses 8.4 Purchase or rental of supplies, materials and equipment

General Guidelines…continuation

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8.5 Payment of rewards to informers (non- employee of concerned agency) with the ff. conditions:

a. Approval by the HoA for LGUs and NGAs and Chairman of the Board for GOCC.

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

8.6 Uncover/prevent illegal activities8.7 Others that may be authorized by the GAA

or other special law/s

General Guidelines…continuation

Uses of CF….continuation

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9. 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

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10. IF for ff. intelligence expenses to be carried out by uniformed and military personnel and intelligence practitioners:

General Guidelines…continuation

10.1 Intelligence and counter intelligence activities that have direct impact to national security

10.2 Special projects and case operation plans as approved by the HoA

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• Salaries, • wages, • overtime, • additional

compensation, allowance or

• other fringe benefits

General Guidelines…continuation

11. In no case shall CF or IF be used for:

officials and employees employed by the government in whatever capacity or elected officials, except when authorized by law.

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11. In no case shall CF or IF be used for:…. continuation

11.2 Representation, consultancy fees or entertainment expenses; or

11.3 Construction or acquisition of buildings or housing structures.

General Guidelines…continuation

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12. Disbursements from CF shall be supported with documentary evidence of payment to be submitted to ICFAU upon liquidation

13. Disbursements from IF shall be supported with documentary evidence of payment in a sealed envelope signed by the SDO, kept at all time in the vault of his office.

General Guidelines…continuation

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14. The preparation of documentary evidence of payment supporting the IE shall be subject to the handling of Security Information

General Guidelines…continuation

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15. Disbursements from CF and IF shall be supported by Certification of the Accountable Officer of the CF or IF under oath with the following:

15.1 Certifying officer or employee is

accountable for the disbursements

15.2 That expenses were incurred in

connection with the agency’s intelligence and/or

confidential operations and activities

General Guidelines…continuation

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15.3 Details and supporting documents of classified transactions are in the custody of the agency and kept in its vault

15.4 Funds are not used or payment of salaries and wages, overtime, additional compensation, allowance, or other fringe benefits of official and employees, representation/entertainment expenses, consultancy fees and construction or acquisition of buildings or housing structures.

General Guidelines…continuation

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15.5 Purchase of equipment (if there is any) is relevant to the confidential and/or intelligence activities.

General Guidelines…continuation

16. In case of misuse of IF/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.

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Approval of Release/Utilization For NGAs CF – included in GAA, subject to the approval of the Dept.

Secretary IF - approval of the Pres of the

Phils. For GOCCs CF -approval of the Pres of the

Phils.

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Approval of Release /Utilization…continuation

For LGUs: CF - approved resolution by two-third (2/3) of the total membership of the Local Peace and Order Council

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Reporting Requirements

Quarterly Accomplishment Report shall be submitted as follows: NGAs IF - Pres. of the Phils CF - a) Pres. of the Phils, b) the Senate Pres., the c) Speaker of the HoR, and d) Dept. Secretary GOCCs IF - a) Pres. of the Phils through the the GCG, b) the Senate Pres. ,and c) Speaker of the HOR

LGUsSecretary of DILGCF -

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Cash advance vouchers for CIF 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

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Upon receipt of the transmittal letter from the ICFAU, the Agency Accountant shall record the liquidation of the cash advance in the books of accounts

In case ND is issued by ICFAU, the agency 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

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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

Audit

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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

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download @

http://www.coa.gov.ph

Joint Circular No. 2015-001 dated January 8, 2015

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Good day!