Coa

Fiscal Responsibility of Fiscal Responsibility of Heads of AgenciesHeads of Agencies

Sec. 2 State Audit Code of the Philippines (PD Sec. 2 State Audit Code of the Philippines (PD 1445)1445)

It is the declared policy of the state that all It is the declared policy of the state that all resources of the government shall be managed, resources of the government shall be managed, expended or utilized in accordance with law and expended or utilized in accordance with law and regulations, and safeguarded against loss or regulations, and safeguarded against loss or wastage through illegal or improper disposition, wastage through illegal or improper disposition, with a view to ensuring efficiency, economy and with a view to ensuring efficiency, economy and effectiveness in the operations of government. effectiveness in the operations of government. The responsibility to take care that such policy is The responsibility to take care that such policy is faithfully adhered to rests directly with the chief faithfully adhered to rests directly with the chief or head of the government agency concerned.or head of the government agency concerned.

Jurisdiction, Powers and Jurisdiction, Powers and Functions of COAFunctions of COA

Section 25, PD 1445.Section 25, PD 1445.In keeping with its Constitutional In keeping with its Constitutional mandate, the Commission adheres to mandate, the Commission adheres to the following primary objective:the following primary objective:1) To determine whether or not the 1) To determine whether or not the fiscal responsibility that rests directly fiscal responsibility that rests directly with the head of the government with the head of the government agency has been properly and agency has been properly and effectively discharged;effectively discharged;xxxxxxxxxx

Fundamental Principles Fundamental Principles (Sec. 4 PD 1445)(Sec. 4 PD 1445)

No money shall be paid out of any public No money shall be paid out of any public treasury or depository except in pursuance of treasury or depository except in pursuance of an appropriation law or other specific an appropriation law or other specific statutory authority.statutory authority.

Government funds or property shall be spent Government funds or property shall be spent or used solely for public purposes.or used solely for public purposes.

Trust funds shall be available and may be Trust funds shall be available and may be spent solely only for the specific purpose for spent solely only for the specific purpose for which the trust was created or the funds which the trust was created or the funds received.received.

Fundamental Principles Fundamental Principles (Cont’d)(Cont’d)

Fiscal responsibility shall, to the greatest Fiscal responsibility shall, to the greatest extent be shared by all those exercising extent be shared by all those exercising authority over the financial affairs, authority over the financial affairs, transactions and operations of the transactions and operations of the government agency.government agency.

Disbursements or disposition of Disbursements or disposition of government funds or property shall government funds or property shall invariably bear the approval of the proper invariably bear the approval of the proper officials.officials.

Claims against government funds shall be Claims against government funds shall be supported with complete documentation.supported with complete documentation.

Fundamental Principles Fundamental Principles (Cont’d)(Cont’d)

All laws and regulations applicable All laws and regulations applicable to financial transactions shall be to financial transactions shall be faithfully adhered to.faithfully adhered to.

Generally accepted principles and Generally accepted principles and practices of accounting as well as of practices of accounting as well as of sound management and fiscal sound management and fiscal administration shall be observed, administration shall be observed, provided that they do not contravene provided that they do not contravene existing laws and regulations.existing laws and regulations.

Personal ServicesPersonal Services includes includes salaries and wages, other salaries and wages, other compensation, personnel compensation, personnel benefits contributions, and benefits contributions, and other personal benefits.other personal benefits.

Basic ConceptsBasic Concepts

APPROPRIATIONS FOR APPROPRIATIONS FOR PERSONAL SERVICESPERSONAL SERVICES

The appropriations for Personal The appropriations for Personal Services of an agency are for Services of an agency are for Regular Plantilla Items and the Regular Plantilla Items and the Lump Sum Appropriation, for Lump Sum Appropriation, for temporary, emergency and temporary, emergency and contractual employees.contractual employees.

Lump Sum AppropriationLump Sum AppropriationIn case of any lump-sum appropriation for In case of any lump-sum appropriation for salaries and wages of temporary, emergency and salaries and wages of temporary, emergency and contractual employees as provided in any GAA contractual employees as provided in any GAA or other Acts, the expenditure of such or other Acts, the expenditure of such appropriation shall be limited to the employment appropriation shall be limited to the employment of persons paid by the month, by the day, or by of persons paid by the month, by the day, or by the hour. the hour. (Sec. 35, Book VI, 1987 Adm. Code)(Sec. 35, Book VI, 1987 Adm. Code)

The following are covered by Lump Sum The following are covered by Lump Sum Appropriations:Appropriations:

-Casual/Emergency EmployeesCasual/Emergency Employees-Contractual PersonnelContractual Personnel-Contract of Service/Job OrderContract of Service/Job Order

BASIC REQUIREMENTS FOR PAYMENT OF BASIC REQUIREMENTS FOR PAYMENT OF SALARIES AND WAGESSALARIES AND WAGES

The following are the basic requirements for the The following are the basic requirements for the payment of salaries and wages:payment of salaries and wages:

1.1. Existence of a legally created position with fixed Existence of a legally created position with fixed compensation or emolument attached to the compensation or emolument attached to the positions.positions.

The position should be included in the The position should be included in the plantilla of personnel prepared by the Agency plantilla of personnel prepared by the Agency and approved by the Compensation and Position and approved by the Compensation and Position Classification Bureau (CPCB) of the Department Classification Bureau (CPCB) of the Department of Budget and Management (DBM) in of Budget and Management (DBM) in accordance with the General Appropriations accordance with the General Appropriations Act.Act.

2. Issuance of a valid appointment. 2. Issuance of a valid appointment.

3. Rendition of service being paid. 3. Rendition of service being paid. The service must be actual and The service must be actual and according to prescribed office or according to prescribed office or work hours, recorded on a time work hours, recorded on a time record, certified as correct by the record, certified as correct by the employee concerned, and approved employee concerned, and approved by his immediate supervisor. (Sec. by his immediate supervisor. (Sec. 194, GAAM Vol. 1)194, GAAM Vol. 1)

4. Payment to the right person. Payment shall be 4. Payment to the right person. Payment shall be made directly to such official and employee made directly to such official and employee except when there is an authority to collect the except when there is an authority to collect the claim due him or her given to another person claim due him or her given to another person under a power of attorney or other forms of under a power of attorney or other forms of authority. The following persons are authorized:authority. The following persons are authorized:

immediate member of the family of the official immediate member of the family of the official or employee concerned;or employee concerned;

liaison officer duly designated by the chief or liaison officer duly designated by the chief or head of unit, office or agency. head of unit, office or agency. (COA cir. 85-(COA cir. 85-248, Dec. 18, 1985, as amended by COA Cir. 248, Dec. 18, 1985, as amended by COA Cir. 86-248-A, March 17, 1988, Sec. 195, GAAM 86-248-A, March 17, 1988, Sec. 195, GAAM Vol. 1)Vol. 1)

REQUIREMENTS FOR REQUIREMENTS FOR APPOINTMENT IN THE APPOINTMENT IN THE

PHILIPPINE CIVIL SERVICEPHILIPPINE CIVIL SERVICE1.1. An appointment shall be issued by An appointment shall be issued by

a person or body authorized by law a person or body authorized by law to make appointments in favor of a to make appointments in favor of a person who possesses the person who possesses the qualifications required by law.qualifications required by law.

2.2. An appointment issued in An appointment issued in accordance with pertinent laws accordance with pertinent laws and rules shall take effect and rules shall take effect immediately upon its issuance by immediately upon its issuance by the appointing authority.the appointing authority.

3.3. It shall be submitted to the Civil Service It shall be submitted to the Civil Service Commission (CSC) within thirty (30) Commission (CSC) within thirty (30) calendar days from the date of issuance calendar days from the date of issuance otherwise it shall be made effective thirty otherwise it shall be made effective thirty (30) days prior to the date of submission (30) days prior to the date of submission to CSC.to CSC.

4.4. If the appointee has assumed the duties If the appointee has assumed the duties of the position, he shall be entitled to of the position, he shall be entitled to receive his salary at once without receive his salary at once without awaiting the approval of his appointment awaiting the approval of his appointment by the Civil Service Commission. His by the Civil Service Commission. His appointment shall remain effective until appointment shall remain effective until disapproved.disapproved.

5.5. No official or employee shall be No official or employee shall be required to assume duty without required to assume duty without being furnished with a copy of his being furnished with a copy of his appointment after it is issued by the appointment after it is issued by the appointing authority. The services appointing authority. The services rendered by any person who was rendered by any person who was required to assume the duties and required to assume the duties and responsibilities of any person without responsibilities of any person without an appointment having been issued an appointment having been issued by the appointing authority, shall be by the appointing authority, shall be the personal accountability of the the personal accountability of the person who made him assume office. person who made him assume office. (Rule IV, CSC, MC No. 40, as (Rule IV, CSC, MC No. 40, as amended).amended).

6.6. When an appointment is disapproved, When an appointment is disapproved, the services of the appointee shall be the services of the appointee shall be immediately terminated, unless a immediately terminated, unless a motion for reconsideration or appeal motion for reconsideration or appeal is filed. Services rendered by a is filed. Services rendered by a person for the duration of his person for the duration of his disapproved appointment shall not be disapproved appointment shall not be credited as government service for credited as government service for whatever purpose.whatever purpose.

7.7. If the appointment was disapproved on If the appointment was disapproved on grounds which do not constitute a grounds which do not constitute a violation of Civil Service law, such as violation of Civil Service law, such as failure of the appointee to meet the failure of the appointee to meet the Qualifications Standards (QS) Qualifications Standards (QS) prescribed for the position, the same is prescribed for the position, the same is considered effective until disapproved considered effective until disapproved by the CSC. The appointee is by the CSC. The appointee is meanwhile entitled to payment of meanwhile entitled to payment of salaries from the government.salaries from the government.

8.8. The appointing authority shall be personally liable The appointing authority shall be personally liable for the salary of appointees whose appointments for the salary of appointees whose appointments have been disapproved for violation of pertinent law have been disapproved for violation of pertinent law such as the publication requirement pursuant to RA such as the publication requirement pursuant to RA 7041.7041.

9.9. The appointee whose appointment was made The appointee whose appointment was made effective thirty (30) days prior to date of submission effective thirty (30) days prior to date of submission to the CSC, shall be entitled to payment of salary to the CSC, shall be entitled to payment of salary from the government immediately following the from the government immediately following the effectivity of the appointment. The salaries of the effectivity of the appointment. The salaries of the appointee for the actual service rendered before appointee for the actual service rendered before the approved effectivity date shall be the liability of the approved effectivity date shall be the liability of whoever caused the delay. whoever caused the delay. (Rule VI, CSC, MC No. (Rule VI, CSC, MC No. 40, as amended; Sec. 193, GAAM Vol. I)40, as amended; Sec. 193, GAAM Vol. I)

Types of AppointmentTypes of Appointment

For our purpose, we classify the For our purpose, we classify the appointments as those which are appointments as those which are covered by the regular plantilla and covered by the regular plantilla and those which are charged against the those which are charged against the lump sum appropriation.lump sum appropriation.

The appointments covered by the The appointments covered by the regular plantilla may be original, regular plantilla may be original, reinstatement, promotional or transfer.reinstatement, promotional or transfer.

Original appointmentOriginal appointment – refers to the initial – refers to the initial entry into the career service of persons entry into the career service of persons who meet all the requirements of the who meet all the requirements of the position. position. (MC No. 14, s. 1999)(MC No. 14, s. 1999)

Appointment by reinstatementAppointment by reinstatement – the – the issuance of an appointment to a person issuance of an appointment to a person who has been previously appointed to a who has been previously appointed to a position in the career service and who has, position in the career service and who has, through no delinquency or misconduct, through no delinquency or misconduct, been separated there from or to one who been separated there from or to one who has been exonerated of the administrative has been exonerated of the administrative charges unless the decision exonerating charges unless the decision exonerating him specifies restoration to his previous him specifies restoration to his previous position. position. (MC No. 14, s. 1999)(MC No. 14, s. 1999)

Payment of the salaries of employees Payment of the salaries of employees originally appointed or reinstated in originally appointed or reinstated in the service who are already 57 years the service who are already 57 years of age should not be allowed unless of age should not be allowed unless his reinstatement is duly approved his reinstatement is duly approved by proper authorities by proper authorities (AG OM 220, (AG OM 220, 3-1-63 citing MC 19 Off. Pres., Sec. 3-1-63 citing MC 19 Off. Pres., Sec. 12 (g), CA 186, as amended; Sec. 1, 12 (g), CA 186, as amended; Sec. 1, P.D. 1502)P.D. 1502)

Promotional appointmentPromotional appointment – This is – This is the advancement of an employee from the advancement of an employee from one position to another with an one position to another with an increase in duties and responsibility as increase in duties and responsibility as authorized by law, and usually authorized by law, and usually accompanied by an increase in salary. accompanied by an increase in salary. The movement may be from one The movement may be from one department or agency to another or department or agency to another or from one organizational unit to another from one organizational unit to another within the same department or agency.within the same department or agency.

Appointment by transferAppointment by transfer – a transfer is a – a transfer is a movement from one position to another movement from one position to another which is of equivalent rank, level or salary which is of equivalent rank, level or salary without break in service involving the without break in service involving the issuance of an appointment. The transfer issuance of an appointment. The transfer may be from one organizational unit to may be from one organizational unit to another in the same department or agency: another in the same department or agency: Provided, however, that any movement Provided, however, that any movement from the non-career service to the career from the non-career service to the career service shall not be considered a transfer service shall not be considered a transfer ((Rule III, Sec. 4(d), CSC MC No. 40, as Rule III, Sec. 4(d), CSC MC No. 40, as amended)amended)

Casual/Emergency AppointmentCasual/Emergency Appointment – issued only – issued only for essential and necessary services where there for essential and necessary services where there is not enough regular staff to meet the demands is not enough regular staff to meet the demands of the service. of the service. (MC No. 14, s. 1999)(MC No. 14, s. 1999)

Casual/emergency personnelCasual/emergency personnel are employed for a are employed for a limited period not exceeding six months, or until limited period not exceeding six months, or until the completion of a particular project in which the completion of a particular project in which their services are hired. They include skilled and their services are hired. They include skilled and unskilled personnel. Their continuance in the unskilled personnel. Their continuance in the service depends on the appointing authority service depends on the appointing authority concerned. They are not, therefore compulsory concerned. They are not, therefore compulsory members of the Government Service Insurance members of the Government Service Insurance System. They are not subject to separation pay System. They are not subject to separation pay even if they are already 65 years of age or over. even if they are already 65 years of age or over. (Sec. 208, GAAM, Vol. I)(Sec. 208, GAAM, Vol. I)

Employees who are paid on a daily Employees who are paid on a daily wage basis are entitled to salaries wage basis are entitled to salaries or wages during special holidays or wages during special holidays proclaimed by the President. proclaimed by the President. (P.D. (P.D. No. 442, as amended; Sec. 205, No. 442, as amended; Sec. 205, GAAM Vol. I)GAAM Vol. I)

Contractual AppointmentContractual Appointment - Issued to a person - Issued to a person who shall undertake a specific work or job for a who shall undertake a specific work or job for a limited period not to exceed one year. The limited period not to exceed one year. The appointing authority shall indicate the inclusive appointing authority shall indicate the inclusive period covered by the appointment for purposes period covered by the appointment for purposes of crediting services. (MC No. 14, s. 1999)of crediting services. (MC No. 14, s. 1999)

Contractual employeesContractual employees are those employed in are those employed in the government in accordance with a special the government in accordance with a special contract to undertake a specific work or job contract to undertake a specific work or job requiring special or technical skills not available requiring special or technical skills not available in the employing agency, to be accomplished in the employing agency, to be accomplished within a specific period, which in no case shall within a specific period, which in no case shall exceed one (1) year and who perform or exceed one (1) year and who perform or accomplish the specific work or job under their accomplish the specific work or job under their own responsibility with minimum direction or own responsibility with minimum direction or supervision. supervision. (Sec. 6 (4), P.D.; Sec. 209, GAAM (Sec. 6 (4), P.D.; Sec. 209, GAAM Vol. I).Vol. I).

The following rules must be observed The following rules must be observed in the hiring of contractual in the hiring of contractual personnel:personnel:

Contractual personnel may be hired Contractual personnel may be hired only if they are authorized and only if they are authorized and funds are available to support the funds are available to support the payment of their salaries.payment of their salaries.

In no case shall contractual In no case shall contractual appointments or contracts of personnel appointments or contracts of personnel services be issued to non-technical services be issued to non-technical personnel or those whose duties and personnel or those whose duties and functions are clerical or administrative functions are clerical or administrative in nature or those who will hold in nature or those who will hold positions in the labor or trades and positions in the labor or trades and crafts groups. If such services are crafts groups. If such services are needed in support of the job or project, needed in support of the job or project, the regular staff or personnel may be the regular staff or personnel may be augmented by hiring casual or augmented by hiring casual or emergency staff.emergency staff.

Contractual employees and Contractual employees and consultants may be allowed not more consultants may be allowed not more than two (2) part-time contracts with than two (2) part-time contracts with two (2) government agencies at one two (2) government agencies at one time. In no case should they be time. In no case should they be designated Officers-in-Charge or designated Officers-in-Charge or Executive Directors or the like Executive Directors or the like wherein they exercise control or wherein they exercise control or supervision over regular personnel in supervision over regular personnel in the hiring agency. the hiring agency.

Contract of Services/Job Orders refer to Contract of Services/Job Orders refer to the employment described as follows:the employment described as follows:

The contract covers lump sum or The contract covers lump sum or services such as janitorial, security, or services such as janitorial, security, or consultancy services where no consultancy services where no employer-employee relationship exists;employer-employee relationship exists;

The job order covers piece of work or The job order covers piece of work or intermittent job of short duration not intermittent job of short duration not exceeding six months on a daily basis;exceeding six months on a daily basis;

Contract of Services/Job-OrdersContract of Services/Job-Orders – – Contract of Services/Job-Orders Contract of Services/Job-Orders as distinguished from contractual as distinguished from contractual personnel need not be submitted personnel need not be submitted to the Civil Service Commission. to the Civil Service Commission. Services rendered there under are Services rendered there under are not considered government not considered government services.services.

The contract of services and job orders are The contract of services and job orders are not covered by Civil Service Law, Rules and not covered by Civil Service Law, Rules and Regulations, but by rules of COA on the Regulations, but by rules of COA on the payment of a transaction.payment of a transaction.

The employees involved in the contract of The employees involved in the contract of services or job orders do not enjoy the services or job orders do not enjoy the benefits enjoyed by government employees, benefits enjoyed by government employees, such as PERA, ADCOM and RATA (Rule XI, such as PERA, ADCOM and RATA (Rule XI, CSC MC No. 40, as amended.CSC MC No. 40, as amended.

DOCUMENTARY REQUIREMENTS DOCUMENTARY REQUIREMENTS FOR PAYMENT OF SALARIES AND FOR PAYMENT OF SALARIES AND

WAGESWAGESOriginal Appointment:Original Appointment:

1.1. Certified true copy of duly approved Certified true copy of duly approved appointment by appointing authority.appointment by appointing authority.

2.2. Certified true copy of oath of office.Certified true copy of oath of office.3.3. Evidence of service rendered or daily time Evidence of service rendered or daily time

record (DTR)record (DTR)4.4. Evidence or certificate of compliance with the Evidence or certificate of compliance with the

conditions set forth in approval of the conditions set forth in approval of the appointmentappointment

5.5. Statement of Asset and LiabilitiesStatement of Asset and Liabilities6.6. Certificate/Notice of Assumption Certificate/Notice of Assumption (Sec. 197, (Sec. 197,

GAAM Vol. I; COA Circ. No. 92-389)GAAM Vol. I; COA Circ. No. 92-389)

Promotion/Salary DifferentialPromotion/Salary Differential

Copy of approved appointment or notice Copy of approved appointment or notice of salary adjustmentof salary adjustment

Certificate/Notice of Assumption to new Certificate/Notice of Assumption to new positionposition

Certificate of service or DTR Certificate of service or DTR (Sec. 199, (Sec. 199, GAAM Vol. I; COA Cir. No. 92-389)GAAM Vol. I; COA Cir. No. 92-389)

TransferTransfer

In addition to the documents required for original In addition to the documents required for original appointment the following are required:appointment the following are required:

1.1. Copy of authority to transferCopy of authority to transfer

2.2. Clearance from cash and property Clearance from cash and property accountabilityaccountability

3.3. Certificate of last salary received from former Certificate of last salary received from former office certified by the Chief Accountantoffice certified by the Chief Accountant

4.4. Certificate showing date when the appointee Certificate showing date when the appointee left his former official station left his former official station (section. 200, (section. 200, GAAM Vol I COA Cir. No. 92-389)GAAM Vol I COA Cir. No. 92-389)

Casual/ContractualCasual/Contractual

1. Certified copy of the pertinent 1. Certified copy of the pertinent contract/appointment/Job Order contract/appointment/Job Order (First Claim)(First Claim)

2. Certificate or evidence of service 2. Certificate or evidence of service rendered or work accomplishedrendered or work accomplished

3. DTR3. DTR

PERSONNEL ECONOMIC RELIEF PERSONNEL ECONOMIC RELIEF ALLOWANCE (PERA)ALLOWANCE (PERA)

Allowance granted to all appointive national and local Allowance granted to all appointive national and local government employees occupying itemized plantilla government employees occupying itemized plantilla positions, to casual and contractual employees , to positions, to casual and contractual employees , to uniformed personnel of the Armed Forces of the uniformed personnel of the Armed Forces of the Philippines, Department of Interior & Local Philippines, Department of Interior & Local Government and the National Mapping Resource Government and the National Mapping Resource Information Authority, Philippine Coast Guard and the Information Authority, Philippine Coast Guard and the Department of Transportation and Communications Department of Transportation and Communications pursuant to Sec. 47 of Republic Act (RA) 8250 in the FY pursuant to Sec. 47 of Republic Act (RA) 8250 in the FY 1997 GAA. (P500 per month) It is granted to augment 1997 GAA. (P500 per month) It is granted to augment a govt. employee’s pay due to the rising cost of living.a govt. employee’s pay due to the rising cost of living.

Computation of PERA paid on daily or part-time Computation of PERA paid on daily or part-time basis:basis: PERA for the Month=PERA for the Month=P500/mo.P500/mo.. x no. of days . x no. of days worked during the worked during the Work days/mo. Work days/mo. monthmonth

ADDITIONAL COMPENSATION ADDITIONAL COMPENSATION (ADCOM)(ADCOM)

Amount authorized under Administrative Amount authorized under Administrative Order No. 53 dated May 17, 1993 granted Order No. 53 dated May 17, 1993 granted to all government personnel whether to all government personnel whether regular or casual; and those on temporary regular or casual; and those on temporary status or contractual personnel whose status or contractual personnel whose employment is in the nature of a regular employment is in the nature of a regular employee. AO No. 144 dated February 28, employee. AO No. 144 dated February 28, 2006, authorized the increase from P500.00 2006, authorized the increase from P500.00 per mo. to P1,500.00 per mo. It is granted per mo. to P1,500.00 per mo. It is granted as a supplement to basic pay.as a supplement to basic pay.

DBM & DepEd Joint DBM & DepEd Joint Circular No. 2004-1Circular No. 2004-1

Sec. 4.7 The RPSU of each DepEd-RO shall Sec. 4.7 The RPSU of each DepEd-RO shall prepare the payroll and other related prepare the payroll and other related documents for teachers and other personnel of documents for teachers and other personnel of the SDO including those in the elementary the SDO including those in the elementary schools and Secondary Schools without schools and Secondary Schools without financial staff under it.financial staff under it.

Sec. 4.7.1. Payment of salaries and allowances Sec. 4.7.1. Payment of salaries and allowances of teachers and other personnel in the SDO, of teachers and other personnel in the SDO, elementary schools and SSs without financial elementary schools and SSs without financial staff under the coverage of SDOs shall be either staff under the coverage of SDOs shall be either through the use of continuous form checks or through the use of continuous form checks or through ATMs.through ATMs.

REPRESENTATION ALLOWANCE REPRESENTATION ALLOWANCE (RA)(RA)

Amount granted to authorized officials Amount granted to authorized officials and employees for official and employees for official entertainment while in the actual entertainment while in the actual performance of their respective performance of their respective functions or duties and functions or duties and responsibilities pertaining to their responsibilities pertaining to their positions.positions.

TRANSPORTATION ALLOWANCE TRANSPORTATION ALLOWANCE (TA)(TA)

Amount granted to authorized Amount granted to authorized officials and employees for officials and employees for transportation expenses which transportation expenses which shall be paid from the shall be paid from the programmed appropriations programmed appropriations provided for their respective provided for their respective offices.offices.

Limitations on RATALimitations on RATA

The grant of RATA is subject to the following The grant of RATA is subject to the following rules:rules:

The officials/employees who are entitled to The officials/employees who are entitled to receive RATA are as follows:receive RATA are as follows:

Those who are expressly authorized in the GAA Those who are expressly authorized in the GAA and those of equivalent rank as may be and those of equivalent rank as may be determined by the DBM; anddetermined by the DBM; and

Those who are duly designated by Those who are duly designated by competent/appointing authority to a vacant competent/appointing authority to a vacant position which is entitled to RATAposition which is entitled to RATA

Officials and employees allowed by law to collect Officials and employees allowed by law to collect monthly commutable representation and monthly commutable representation and transportation allowances shall be paid from transportation allowances shall be paid from the programmed appropriations provided for the programmed appropriations provided for their respective offices, not exceeding the rates their respective offices, not exceeding the rates indicated in the current GAA.indicated in the current GAA.

The grant of commutable transportation The grant of commutable transportation allowance must be expressly authorized by law allowance must be expressly authorized by law or provided in a budget approved by an or provided in a budget approved by an appropriating body.appropriating body.

Officials and employees receiving Officials and employees receiving commutable transportation allowance commutable transportation allowance are no longer entitled to the use of any are no longer entitled to the use of any government vehicle in the performance government vehicle in the performance of their official duties except as may be of their official duties except as may be approved by the president. If one is approved by the president. If one is used, a proportionate amount should be used, a proportionate amount should be deducted.deducted.

Commutable RATA, by its very nature, are Commutable RATA, by its very nature, are additional perquisites attached to a additional perquisites attached to a position, the enjoyment of which position, the enjoyment of which presupposes actual rendition of service presupposes actual rendition of service incident to or in connection with the incident to or in connection with the discharge of official duties. Hence, the discharge of official duties. Hence, the official who is on leave for more than one official who is on leave for more than one month is not entitled to collect the same month is not entitled to collect the same (COA Dec. 290, Sept. 13, 1982).(COA Dec. 290, Sept. 13, 1982).

Documentary Requirements:Documentary Requirements:

Authority to collect Representation Authority to collect Representation and Transportation Allowanceand Transportation Allowance

Certification for Representation Certification for Representation and Transportation Allowance and Transportation Allowance ((COA Memo Mo. 88-572)COA Memo Mo. 88-572)

CLOTHING AND UNIFORM ALLOWANCECLOTHING AND UNIFORM ALLOWANCE

The appropriations provided for each department, The appropriations provided for each department, bureau, office or agency may be used for uniform or bureau, office or agency may be used for uniform or clothing allowance of employees at not more than clothing allowance of employees at not more than P4,000.00 each per annum which may be given in P4,000.00 each per annum which may be given in cash or in kind. It is granted to cover the cost of cash or in kind. It is granted to cover the cost of uniform/clothing of govt. employees to identify them uniform/clothing of govt. employees to identify them with their mother agency or office.with their mother agency or office.

Annual Clothing allowance shall be given to all Annual Clothing allowance shall be given to all employees whether employed on permanent or employees whether employed on permanent or emergency basis, who are in the service for at least emergency basis, who are in the service for at least six (6) consecutive months, provided he serves the six (6) consecutive months, provided he serves the agency for another six (6) months from the day he agency for another six (6) months from the day he receives the allowance.receives the allowance.

Govt. personnel who are required to wear Govt. personnel who are required to wear uniforms at all times in the performance uniforms at all times in the performance of their functions such as security of their functions such as security guards, prison guards, firefighters, guards, prison guards, firefighters, teachers, those who are in direct teachers, those who are in direct contacts with patients, and others contacts with patients, and others occupying similar positions, shall be occupying similar positions, shall be granted U/CA whether or not they meet granted U/CA whether or not they meet the service requirement.the service requirement.

HONORARIAHONORARIA

Amount paid for services rendered by Amount paid for services rendered by government personnel performing activities or government personnel performing activities or discharging duties in addition to, or over and discharging duties in addition to, or over and above their regular functions, and payment for above their regular functions, and payment for services of personnel with expertise or services of personnel with expertise or professional standing in recognition of his professional standing in recognition of his broad and superior knowledge in specific broad and superior knowledge in specific fields, provided that the total honorarium fields, provided that the total honorarium granted in any given year shall in no case granted in any given year shall in no case exceed exceed fifty percent of his annual salaryfifty percent of his annual salary. In . In the case of personnel involved in government the case of personnel involved in government procurement, the honoraria should not exceed procurement, the honoraria should not exceed twenty-fivetwenty-five percent (25%)percent (25%) of the monthly of the monthly basic salary of the payee. basic salary of the payee.

Coverage:Coverage: Agency personnel performing or discharging Agency personnel performing or discharging

duties in agency activities or special projects duties in agency activities or special projects in addition to or over and above their regular in addition to or over and above their regular functions regardless of the source of fund;functions regardless of the source of fund;

Researchers, experts and specialists who are Researchers, experts and specialists who are acknowledged authorities in their field of acknowledged authorities in their field of specialization, other than those paid specialization, other than those paid consultancy fees; andconsultancy fees; and

Military personnel who are rendering Military personnel who are rendering security services to the Congress of the security services to the Congress of the Philippines including its committees.Philippines including its committees.

The following are shall continue to be paid honoraria The following are shall continue to be paid honoraria at rates prescribed by existing rules and regulations:at rates prescribed by existing rules and regulations:

Teaching personnel of the Department of Teaching personnel of the Department of Education, (DepEd) and State Universities Education, (DepEd) and State Universities and Colleges (SUCs) engaged in actual and Colleges (SUCs) engaged in actual classroom teaching whose teaching load is classroom teaching whose teaching load is outside regular office hours and/or in excess outside regular office hours and/or in excess of regular load;of regular load;

Teaching personnel of SUCs designated as Teaching personnel of SUCs designated as heads of department;heads of department;

Government personnel acting as lecturers, Government personnel acting as lecturers, resource persons, coordinators and resource persons, coordinators and facilitators in seminars, training programs facilitators in seminars, training programs and other similar activities.and other similar activities.

HAZARD PAYHAZARD PAY

Hazard Pay is the compensation paid to Hazard Pay is the compensation paid to employees who are working or assigned in employees who are working or assigned in difficult, dangerous, strife-torn or difficult, dangerous, strife-torn or embattled areas as certified by the embattled areas as certified by the Department of National Defense (DND) Department of National Defense (DND) and whose lives are directly exposed to and whose lives are directly exposed to work conditions which may cause injury, work conditions which may cause injury, sickness or death or harmful change in the sickness or death or harmful change in the human organism, such as: exposure to human organism, such as: exposure to harmful chemicals, wastes and pollutants, harmful chemicals, wastes and pollutants, micro-organisms and other harmful micro-organisms and other harmful elements, or situations that endanger life elements, or situations that endanger life or health as certified by the authorized or health as certified by the authorized government agency. (RA 9336,FY 2005 government agency. (RA 9336,FY 2005 GAA)GAA)

Special Hardship Allowance (IRR of RA Special Hardship Allowance (IRR of RA 4670)4670)

The superintendent of schools shall report to the The superintendent of schools shall report to the Secretary of Education such schools where Secretary of Education such schools where teachers need special-hardship allowance teachers need special-hardship allowance under the following criteria:under the following criteria:

- The school is 10 or more kilometers from the The school is 10 or more kilometers from the poblacion and without means of regular poblacion and without means of regular transportation to reach it.transportation to reach it.

- The school is a place declared by the President The school is a place declared by the President calamitous.calamitous.

- The travel to the school involves hazards to life, The travel to the school involves hazards to life, to be determined by the school superintendent. to be determined by the school superintendent.

Payment of Hazard PayPayment of Hazard Pay

Hazard pay shall be paid from the savings in Hazard pay shall be paid from the savings in the appropriations of the the appropriations of the department/agency concerned which department/agency concerned which shall not be less than nor more than the shall not be less than nor more than the amount prescribed in the GAA, except in amount prescribed in the GAA, except in the following cases:the following cases:

Where the rates are specifically provided Where the rates are specifically provided for under special laws, charters or for under special laws, charters or enabling acts, in which case such rates enabling acts, in which case such rates shall govern; orshall govern; or

Where more incentives are needed to Where more incentives are needed to attract applicants, in which case the sum attract applicants, in which case the sum may be augmented at rates to be may be augmented at rates to be determined by the Department Heads.determined by the Department Heads.

Hazard pay benefits For Health Workers & Hazard pay benefits For Health Workers & Nutrition Personnel Pursuant to RA 7305 Nutrition Personnel Pursuant to RA 7305 Entitled “Magna Carta of Public Health Entitled “Magna Carta of Public Health Workers“ (DepEd Order 82, s. 2007)Workers“ (DepEd Order 82, s. 2007)

Cognizant of the positive correlation Cognizant of the positive correlation between good health & academic between good health & academic performance, and the importance & performance, and the importance & relevance of the services of public health relevance of the services of public health workers towards better health and nutrition workers towards better health and nutrition to reduce drop-out rates, and in order to to reduce drop-out rates, and in order to attain the purposes of the law, the payment attain the purposes of the law, the payment of hazard pay to all public health workers in of hazard pay to all public health workers in the DepEd shall be enforced as provided the DepEd shall be enforced as provided for in DepEd Order No. 74, s. 2003.for in DepEd Order No. 74, s. 2003.

Their entitlement to hazard pay is in Their entitlement to hazard pay is in consideration of the nature of their consideration of the nature of their work, exposing them to high/low risk work, exposing them to high/low risk areas/workplaces as they provide health areas/workplaces as they provide health services to the school populace. In times services to the school populace. In times of calamities or emergencies, these of calamities or emergencies, these personnel are in the forefront rendering personnel are in the forefront rendering basic health and nutrition services, and basic health and nutrition services, and their direct contact with the children, their direct contact with the children, teachers and non-teaching personnel, teachers and non-teaching personnel, and their interface with the parents and their interface with the parents during home visitation, highly exposes during home visitation, highly exposes them to risks.them to risks.

Duration of Entitlement to Hazard PayDuration of Entitlement to Hazard Pay

The period of entitlement to hazard pay The period of entitlement to hazard pay shall be coterminous with the duration of shall be coterminous with the duration of the actual assignment of the employee in the actual assignment of the employee in said hardship or difficult area, or with the said hardship or difficult area, or with the existence of such danger or peril, but in existence of such danger or peril, but in no case shall it exceed six months unless no case shall it exceed six months unless renewed and subsequent authority is renewed and subsequent authority is granted therefore, based on the granted therefore, based on the certification of the Secretary of National certification of the Secretary of National Defense.Defense.

Payment of Overtime ServicePayment of Overtime Service

The authority to render overtime shall state the The authority to render overtime shall state the period within which such service is to be period within which such service is to be performed. The authority shall not extend performed. The authority shall not extend beyond the scheduled date of completion.beyond the scheduled date of completion.

As a general rule, the total amount of As a general rule, the total amount of overtime compensation which may be allowed overtime compensation which may be allowed an employee for a given calendar year shall an employee for a given calendar year shall not exceed fifty percent (50%) of his/her not exceed fifty percent (50%) of his/her annual basic salary. Overtime Pay shall be annual basic salary. Overtime Pay shall be computed as follows:computed as follows:

For ordinary work days: Plus 25% of the hourly rate (0.25 For ordinary work days: Plus 25% of the hourly rate (0.25 x HR)x HR) Overtime Pay = 1.25xHRxNo. Of hours of OT services Overtime Pay = 1.25xHRxNo. Of hours of OT services renderedrendered For rest days, holidays and non-work days: Plus 50% of For rest days, holidays and non-work days: Plus 50% of the hourly rate (.50xHR) the hourly rate (.50xHR)

Funding SourceFunding Source

For NGAs including SUCs, the overtime pay shall be For NGAs including SUCs, the overtime pay shall be charged against:charged against: The amounts specifically appropriated for the purpose in The amounts specifically appropriated for the purpose in agency budgets and/or savings from released allotments for agency budgets and/or savings from released allotments for current operating expenditures provided that all mandatory current operating expenditures provided that all mandatory expenses as authorized by law have been paid; andexpenses as authorized by law have been paid; and

Total overtime payments made in a given calendar year shall not exceed 5% of the total salaries of authorized positions of the agency.

Such savings may be used without need for prior authority from the DBM, provided that all the conditions are fully satisfied.

COMPENSATORY TIME-OffCOMPENSATORY TIME-Off

Section 1 (d) of AO 103 (Directing the Section 1 (d) of AO 103 (Directing the Continued Adoption of Austerity Continued Adoption of Austerity Measures in the Government) dated Measures in the Government) dated August 31, 2004, provides for the August 31, 2004, provides for the adoption of a scheme that will allow adoption of a scheme that will allow employees to be compensated through employees to be compensated through time/days off in lieu of overtime pay. time/days off in lieu of overtime pay. Thus, the Civil Service Commission and Thus, the Civil Service Commission and DBM Joint Circular No. 2, s. 2004, was DBM Joint Circular No. 2, s. 2004, was issued to implement said provision.issued to implement said provision.

Compensatory Time-off (CTO) refers to the no. of hours or Compensatory Time-off (CTO) refers to the no. of hours or days an employee is excused from reporting for work days an employee is excused from reporting for work with full pay and benefits. It is a non-monetary benefit with full pay and benefits. It is a non-monetary benefit provided to an employee in lieu of overtime pay.provided to an employee in lieu of overtime pay.

GUIDELINESGUIDELINESOvertime services which may be compensated through CTO Overtime services which may be compensated through CTO

as may be authorized by heads of agencies for the as may be authorized by heads of agencies for the following activities:following activities:

Completion of infrastructure and other projects with set Completion of infrastructure and other projects with set deadlines when due to unforeseen events the deadlines deadlines when due to unforeseen events the deadlines cannot be met without resorting to overtime work;cannot be met without resorting to overtime work;

Relief, rehabilitation, reconstruction and other related Relief, rehabilitation, reconstruction and other related work or services during calamities and disasters;work or services during calamities and disasters;

Work related to school t graduation/registration where Work related to school t graduation/registration where the additional work cannot be handled by existing the additional work cannot be handled by existing personnel during regular work hours;personnel during regular work hours;

Work involving the preparation and administration of Work involving the preparation and administration of government examinations, including the prompt corrections government examinations, including the prompt corrections and release of results thereof where existing personnel are and release of results thereof where existing personnel are not adequate to handle such work during regular work hours;not adequate to handle such work during regular work hours;

Seasonal work such as budget preparation and rendition of Seasonal work such as budget preparation and rendition of reports to meet scheduled deadlines;reports to meet scheduled deadlines;

Preparation of special/financial/accountability reports Preparation of special/financial/accountability reports required occasionally by central monitoring agencies like required occasionally by central monitoring agencies like Congress of the Philippines, Office of the President, COA, Congress of the Philippines, Office of the President, COA, DBM, and NEDA;DBM, and NEDA;

The provision of essential public services during emergency The provision of essential public services during emergency situations, such as power and energy, water, distribution and situations, such as power and energy, water, distribution and control of basic staples, communication and transportation, control of basic staples, communication and transportation, medical and health services, peace and order and security;medical and health services, peace and order and security;

Implementation of special program/projects embodied in Implementation of special program/projects embodied in Presidential directives and authorizations with specific Presidential directives and authorizations with specific dates of completion;dates of completion;

Legal services to facilitate the dissolution of Legal services to facilitate the dissolution of cases/resolutions/decisions;cases/resolutions/decisions;

Services rendered by drivers and other immediate staff of Services rendered by drivers and other immediate staff of officials when required to keep the same working hours as officials when required to keep the same working hours as their superiors; andtheir superiors; and

Such other activities as may be determined by the head of Such other activities as may be determined by the head of agency.agency.

COMPUTATION OF COMPENSATORY OVERTIME CREDITCOMPUTATION OF COMPENSATORY OVERTIME CREDIT

As a result of services rendered beyond regular work hours, As a result of services rendered beyond regular work hours, and/or those rendered on Saturdays, Sundays, holidays or and/or those rendered on Saturdays, Sundays, holidays or scheduled days off without the benefit of overtime pay, an scheduled days off without the benefit of overtime pay, an employee earns accrued no. of hours worked. These are employee earns accrued no. of hours worked. These are collectively referred to as Compensatory Overtime Credit collectively referred to as Compensatory Overtime Credit (COC).(COC).

The COC is expressed in no. of hours and computed as The COC is expressed in no. of hours and computed as follows:follows:

. For overtime services rendered on weekdays and . For overtime services rendered on weekdays and scheduled work days; scheduled work days;

COC = No. of Hours of Overtime Services x 1.0COC = No. of Hours of Overtime Services x 1.0 . For overtime services rendered on weekends, holidays . For overtime services rendered on weekends, holidays

or scheduled days off:or scheduled days off: COC = No. of Hours of Overtime Services x 1.5COC = No. of Hours of Overtime Services x 1.5

ACCRUAL AND USE OF COCsACCRUAL AND USE OF COCs

Employees may accrue not more than 40 hours of COC in a Employees may accrue not more than 40 hours of COC in a month. In no instance, however, shall the total COC exceed month. In no instance, however, shall the total COC exceed 120 hours at any given time. COC in excess of the limit 120 hours at any given time. COC in excess of the limit shall be forfeited.shall be forfeited.

COCs shall be used as a time-off within the year they are COCs shall be used as a time-off within the year they are earned until the immediately succeeding year. Thereafter, earned until the immediately succeeding year. Thereafter, any unutilized COCs are deemed forfeited.any unutilized COCs are deemed forfeited.

The COCs shall be considered as official time for the The COCs shall be considered as official time for the following purposes:following purposes:1. compliance with compensation rules relative to the 1. compliance with compensation rules relative to the entitlement to PERA, Adcom, Year-end Benefits, and other entitlement to PERA, Adcom, Year-end Benefits, and other benefits received on regular bases;benefits received on regular bases;2. computation of service hours for entitlement to vacation 2. computation of service hours for entitlement to vacation and sick leave credits, and step-increment due to length of and sick leave credits, and step-increment due to length of service.service.

LIMITATION ON THE USE OF COCsLIMITATION ON THE USE OF COCs

The COCs cannot be used to offset The COCs cannot be used to offset undertime/s or tardiness incurred by the undertime/s or tardiness incurred by the employee during regular work days.employee during regular work days.

The COCs cannot be converted to cash, hence The COCs cannot be converted to cash, hence are not commutative.are not commutative.

The COCs cannot be added to regular leave The COCs cannot be added to regular leave credits of the employee. Hence it is not part credits of the employee. Hence it is not part of the accumulated leave credits of the of the accumulated leave credits of the employee.employee.

Documentary Requirements:Documentary Requirements:

Certificate of service or DTR Certificate of service or DTR Authority to render overtime serviceAuthority to render overtime service Accomplished report signed by employee Accomplished report signed by employee

and supervisor and supervisor (COA Cir. No. 92-389)(COA Cir. No. 92-389)

Holiday PayHoliday Pay

Year-End Bonus and Cash GiftYear-End Bonus and Cash Gift

The year-end bonus equivalent to one(1) month The year-end bonus equivalent to one(1) month basic salary and additional cash gift of P5,000.00 basic salary and additional cash gift of P5,000.00 provided under Republic Act No. 6686 as provided under Republic Act No. 6686 as amended by Republic Act. No. 8441, shall be amended by Republic Act. No. 8441, shall be granted to all national government officials and granted to all national government officials and employees, whether regular, temporary, casual or employees, whether regular, temporary, casual or contractual status, on full-time or part-time basis, contractual status, on full-time or part-time basis, who have rendered at least a total of four (4) who have rendered at least a total of four (4) months of service including leaves of absence months of service including leaves of absence with pay from Jan. 1 to Oct. 31 of each year, and with pay from Jan. 1 to Oct. 31 of each year, and who are still in the service as of Oct 31 of the who are still in the service as of Oct 31 of the same year.same year.

Payment of the authorized benefits shall be Payment of the authorized benefits shall be made not earlier than May 1 or later than made not earlier than May 1 or later than May 31 of the particular year.May 31 of the particular year.

CASH GIFTCASH GIFT

The cash gift is granted to all government The cash gift is granted to all government employees pursuant to Republic Act. No. employees pursuant to Republic Act. No. 6686 as amended by Republic Act. No. 8441.6686 as amended by Republic Act. No. 8441.

Government personnel who have rendered less Government personnel who have rendered less than four (4) months of service as of October than four (4) months of service as of October 31 of the same year shall be entitled solely to 31 of the same year shall be entitled solely to the cash gift pro-rated as follows:the cash gift pro-rated as follows:

Length of ServiceLength of Service PercentagePercentage

3 months but less than 4 months3 months but less than 4 months40%40%

2 months but less than 3 months2 months but less than 3 months30%30%

1 month but less than 2 months1 month but less than 2 months 20%20%Less than 1 monthLess than 1 month 10%10%

PRO-RATED SHARE IN THE REMAINING BALANCE PRO-RATED SHARE IN THE REMAINING BALANCE OF CASH GIFTOF CASH GIFT

With the issuance of Budget Circular No. 2003-2, all With the issuance of Budget Circular No. 2003-2, all government personnel who have rendered more government personnel who have rendered more than four (4) months of service in a given year than four (4) months of service in a given year before their retirement/separation from service before their retirement/separation from service may receive a proportionate share of the remaining may receive a proportionate share of the remaining balance of the cash gift in addition to the year-end balance of the cash gift in addition to the year-end bonus.bonus.

The pro-rated share of the cash gift follows a twenty The pro-rated share of the cash gift follows a twenty percent (20%) gradation for every month of percent (20%) gradation for every month of service, in excess of the four months service service, in excess of the four months service requirements.requirements.

Month of Month of retirement/separatiretirement/separati

on from serviceon from servicePercentaPercenta

gegeAmountAmount

MayMay 0 %0 % 0.000.00

JuneJune 20 %20 % 500.00500.00

JulyJuly 40 %40 % 1,000.001,000.00

AugustAugust 60 %60 % 1,500.001,500.00

SeptemberSeptember 80 %80 % 2,000.002,000.00

OctoberOctober 100 %100 % 2,500.002,500.00

PRODUCTIVITY INCENTIVE BENEFITPRODUCTIVITY INCENTIVE BENEFIT

This refers to the incentive benefits given in This refers to the incentive benefits given in recognition of the government employees’ recognition of the government employees’ productivity and performance pursuant to productivity and performance pursuant to Administrative Order No. 161 dated Administrative Order No. 161 dated December 6, 1994.December 6, 1994.

LIFE RETIREMENT AND RETIREMENT LIFE RETIREMENT AND RETIREMENT INSURANCE CONTRIBUTIONSINSURANCE CONTRIBUTIONS

This refers to the government share in premium This refers to the government share in premium contributions to the life insurance and contributions to the life insurance and retirement funds of the GSIS. These expenses retirement funds of the GSIS. These expenses are treated as part of the price of the services are treated as part of the price of the services of the employees.of the employees.

Membership in the GSISMembership in the GSIS

Membership in the GSIS shall be Membership in the GSIS shall be compulsory for all employees receiving compulsory for all employees receiving compensation, irrespective of employment compensation, irrespective of employment status, who have not reached the status, who have not reached the compulsory retirement age at the time of compulsory retirement age at the time of election or appointment. election or appointment. (Sec. 2.1.1, Rule (Sec. 2.1.1, Rule III, IRR 1997 GSIS Act)III, IRR 1997 GSIS Act)

Contractual and other employees with an Contractual and other employees with an employee relationship to an employer are employee relationship to an employer are included under compulsory coverage, included under compulsory coverage, provided that the following conditions provided that the following conditions that determine an employee-employer that determine an employee-employer relationship exist:relationship exist:

The person was selected and engaged by The person was selected and engaged by an employer as an individual, rather than an employer as an individual, rather than as representative, assignee or agent of as representative, assignee or agent of another entity;another entity;

The employer pays the salary to the The employer pays the salary to the employee as an individual;employee as an individual;

The employer has power of dismissal; andThe employer has power of dismissal; and

The employer has the power to control the The employer has the power to control the means and the result of the work to be means and the result of the work to be done. done. (Sec. 2.1.2, Rule II, IRR 1997 GSIS (Sec. 2.1.2, Rule II, IRR 1997 GSIS Act)Act)

Benefit CoverageBenefit Coverage

All members of the GSIS shall be covered All members of the GSIS shall be covered with life insurance and social security with life insurance and social security protection including retirement, disability, protection including retirement, disability, survivorship, separation, and survivorship, separation, and unemployment benefits, and such other unemployment benefits, and such other benefits and protection as may be benefits and protection as may be extended to them by GSIS, subject to the extended to them by GSIS, subject to the limitations provided by law. limitations provided by law. (Sec. 2.2.1, (Sec. 2.2.1, Rule II, IRR 1997 GSIS Act)Rule II, IRR 1997 GSIS Act)

Amount of ContributionsAmount of Contributions

Section 3.1 of the Implementing Rules and Section 3.1 of the Implementing Rules and Regulations of RA 8291 as amended: Regulations of RA 8291 as amended: Amount of contributions. – It shall be Amount of contributions. – It shall be mandatory for the covered employee and mandatory for the covered employee and the employer to pay the monthly the employer to pay the monthly contributions specified in the following contributions specified in the following schedule:schedule:

For all employers and employees, except for For all employers and employees, except for those Members of the Judiciary and the those Members of the Judiciary and the

Constitutional Commissioners:Constitutional Commissioners:

Monthly Monthly compensatiocompensatio

n (MC)n (MC)

Employee’Employee’s s ShareShare

Employer’Employer’s s ShareShare

Basic Salary Basic Salary (MC)(MC)

9% 9% 12% of MC12% of MC

For members of the Judiciary and the For members of the Judiciary and the Constitutional Commissioners:Constitutional Commissioners:

Monthly Monthly CompensatioCompensatio

n (MC)n (MC)

Employee’s Employee’s ShareShare

Employer’s Employer’s ShareShare

Regardless of Regardless of the amountthe amount

3 %3 % 3 %3 %

Optional InsuranceOptional Insurance

A member may at any time apply for A member may at any time apply for optional life insurance and pre-need optional life insurance and pre-need coverage for himself and/or his coverage for himself and/or his dependents.dependents.

Types of Life Insurance and Pre-Need Types of Life Insurance and Pre-Need ProductsProducts

An applicant for optional life insurance may An applicant for optional life insurance may choose ordinary life, limited payment life, choose ordinary life, limited payment life, and single payment, joint life, endowment, and single payment, joint life, endowment, term insurance and such other types of term insurance and such other types of insurance as may be approved by the GSIS.insurance as may be approved by the GSIS.

An applicant for pre-need coverage may An applicant for pre-need coverage may choose from the various types of choose from the various types of educational, memorial, hospitalization educational, memorial, hospitalization products as well as other types of pre-need products as well as other types of pre-need products that may be approved by the products that may be approved by the GSIS.GSIS.

Retirement Benefit under RA 8291 Retirement Benefit under RA 8291 (1997 GSIS Act)(1997 GSIS Act)

The lump-sum equivalent to sixty (60) The lump-sum equivalent to sixty (60) months of the basic monthly pension months of the basic monthly pension (BMP) payable at the time of retirement (BMP) payable at the time of retirement plus an old-age pension benefit equal to plus an old-age pension benefit equal to the basic monthly pension payable for the basic monthly pension payable for life, starting upon the expiration of the life, starting upon the expiration of the five-years covered by the lump-sum; orfive-years covered by the lump-sum; or

A cash payment equivalent to eighteen A cash payment equivalent to eighteen (18) months his/her basic monthly (18) months his/her basic monthly pension plus monthly pension for life pension plus monthly pension for life payable immediately.payable immediately.

Conditions for Entitlement to Conditions for Entitlement to Retirement BenefitRetirement Benefit::

He/she has rendered at least fifteen He/she has rendered at least fifteen (15) years of service;(15) years of service;

He/she is at least sixty (60) years of age He/she is at least sixty (60) years of age at the time of retirement; andat the time of retirement; and

He/she is not receiving a monthly He/she is not receiving a monthly pension benefit for permanent total pension benefit for permanent total disabilitydisability

Other Features of the Retirement Other Features of the Retirement Benefit:Benefit:

Retirement shall be compulsory at age 65Retirement shall be compulsory at age 65 Employees who entered the service before Employees who entered the service before

June 1, 1977 and who have not received June 1, 1977 and who have not received any separation or retirement benefits have any separation or retirement benefits have the option to retire under Republic Act No. the option to retire under Republic Act No. 1616, 660 or 82911616, 660 or 8291

Retirement benefits shall be paid on the Retirement benefits shall be paid on the last day of service in government if all last day of service in government if all requirements are submitted to the GSIS at requirements are submitted to the GSIS at least thirty (30) days prior to the effective least thirty (30) days prior to the effective date of retirement.date of retirement.

The following documents shall be filed The following documents shall be filed in duplicate with the GSIS Head in duplicate with the GSIS Head Office or any Branch Office, as the Office or any Branch Office, as the case may be, at least thirty (30) days case may be, at least thirty (30) days before the date or retirement for before the date or retirement for processing and payment of benefit.processing and payment of benefit.

Other Retirement OptionsOther Retirement Options

The following retirement options are The following retirement options are available to those who were in the service available to those who were in the service before June 1, 1977;before June 1, 1977;

RA 8291 and PD 1146 – for those who RA 8291 and PD 1146 – for those who have rendered at least fifteen (15) years have rendered at least fifteen (15) years service and are at least sixty (60) years of service and are at least sixty (60) years of age upon retirement.age upon retirement.

RA 1616 – for those who have rendered at RA 1616 – for those who have rendered at least twenty (20) years serviceleast twenty (20) years service

RA 660 – for those who pass the “Magic RA 660 – for those who pass the “Magic 87”, the two options available to them are 87”, the two options available to them are RA 8291 and PD 1146.RA 8291 and PD 1146.

For those who came into the service after For those who came into the service after May 31, 1977, the two options available May 31, 1977, the two options available to them are RA 8291 and PD 1146;to them are RA 8291 and PD 1146;

For those who came into the service on or For those who came into the service on or after June 24, 1997, the only option open after June 24, 1997, the only option open to them is RA 8291. to them is RA 8291. [Primer on GSIS [Primer on GSIS Act of 1997 (RA No. 8291]Act of 1997 (RA No. 8291]

Membership in the PAG-IBIG FundMembership in the PAG-IBIG Fund

Membership in the Fund shall be mandatory upon Membership in the Fund shall be mandatory upon all employees covered by the Social Security all employees covered by the Social Security System and the Government Service Insurance System and the Government Service Insurance System, and their respective employers; System, and their respective employers; Provided, however, that coverage of the Provided, however, that coverage of the employees whose monthly compensation is less employees whose monthly compensation is less than four thousand pesos (P4,000.00) shall be than four thousand pesos (P4,000.00) shall be voluntary. voluntary. (Sec. 1, Rule IV, IRR of RA No. (Sec. 1, Rule IV, IRR of RA No. 7742)7742)

Portability of MembershipPortability of Membership

A member who transfers to another employer or A member who transfers to another employer or who becomes self-employed carries with him who becomes self-employed carries with him his total accumulated value. his total accumulated value. (Sec. 1, Rule IV, (Sec. 1, Rule IV, IRR of RA No. 7742)IRR of RA No. 7742)

Return ContributionsReturn Contributions

A member shall be entitled to receive his A member shall be entitled to receive his total accumulated value upon termination total accumulated value upon termination of his membership, free from any pending of his membership, free from any pending obligation with the Fund or any of its loan obligation with the Fund or any of its loan Programs. In the event of his death, his Programs. In the event of his death, his legal heirs shall likewise receive the legal heirs shall likewise receive the same, free from any pending obligation same, free from any pending obligation with the Fund or any of its loan programs.with the Fund or any of its loan programs.

Optional Withdrawal of ContributionsOptional Withdrawal of Contributions

A new member of the Fund after the effectivity of Republic A new member of the Fund after the effectivity of Republic Act No. 7742 shall be allowed partial withdrawal after Act No. 7742 shall be allowed partial withdrawal after ten (10) or fifteen (15) years of continuous membership, ten (10) or fifteen (15) years of continuous membership, provided he has no outstanding housing loan with the provided he has no outstanding housing loan with the fund at the time of withdrawal. This option may be fund at the time of withdrawal. This option may be exercised only once and shall not prejudice his exercised only once and shall not prejudice his continuing membership in the Fund.continuing membership in the Fund.

The exercise of this option by the member shall not be The exercise of this option by the member shall not be considered as a ground to terminate his membership considered as a ground to terminate his membership with the Fund. He shall continue to be mandatorily with the Fund. He shall continue to be mandatorily covered by the Fund and his employer is mandated to covered by the Fund and his employer is mandated to deduct and remit the employee’s required contribution deduct and remit the employee’s required contribution together with his employer’s contribution pursuant to together with his employer’s contribution pursuant to these Rules.these Rules.

Termination of MembershipTermination of Membership

Membership shall be terminated anytime Membership shall be terminated anytime upon the occurrence of any of the upon the occurrence of any of the following:following:

Membership term maturityMembership term maturity DeathDeath RetirementRetirement Permanent total disability or insanityPermanent total disability or insanity

Departure from the country Departure from the country permanentlypermanently

Termination from the service by Termination from the service by reason of health.reason of health.

Membership in PhilhealthMembership in Philhealth

Applicable Laws, Rules and Regulations:Applicable Laws, Rules and Regulations:

““All government employees who entered All government employees who entered government service should register government service should register with the Philhealth to enable them and with the Philhealth to enable them and their dependent(s) to secure Philhealth their dependent(s) to secure Philhealth Identification Numbers and provide the Identification Numbers and provide the Philhealth the necessary data and Philhealth the necessary data and information to facilitate transactions information to facilitate transactions related to their availment of benefits.”related to their availment of benefits.”

The contribution schedule for the The contribution schedule for the payment and collection of payment and collection of contributions to the National contributions to the National Health Insurance Program or Health Insurance Program or NHIP pursuant to PHILHEALTH NHIP pursuant to PHILHEALTH Circular No. 004-2000 dated Circular No. 004-2000 dated March 21, 2000.March 21, 2000.

Monthly Salary Monthly Salary RangeRange

Salary BaseSalary Base Monthly Monthly ContributionContribution

Employer ShareEmployer Share Employees ShareEmployees Share

P 3,499.99 and P 3,499.99 and belowbelow

P 3,000.00P 3,000.00 P 75.00P 75.00 P 37.50P 37.50 P 37.50P 37.50

3,500.00 to 3,500.00 to 3,999.993,999.99

3,500.003,500.00 87.5087.50 43.7543.75 43.7543.75

4,000.00 to 4,000.00 to 4,499.004,499.00

4,000.004,000.00 100.00100.00 50.0050.00 50.0050.00

4,500.00 to 4,500.00 to 4,999.994,999.99

4,500.004,500.00 112.5112.5 56.2556.25 56.2556.25

5,000.00 to 5,000.00 to 5,499.995,499.99

5,000.005,000.00 125.00125.00 62.5062.50 62.5062.50

5,500.00 to 5,500.00 to 5,999.995,999.99

5,500.005,500.00 137.50137.50 68.7568.75 68.7568.75

6,000.00 to 6,000.00 to 6,499.996,499.99

6,000.006,000.00 150.00150.00 75.0075.00 75.0075.00

6,500.00 to 6,500.00 to 6,999.996,999.99

6,500.006,500.00 162.50162.50 81.2581.25 81.2581.25

7,000.00 to 7,000.00 to 7,499.997,499.99

7,000.007,000.00 175.00175.00 87.5087.50 87.5087.50

7,500.00 and up7,500.00 and up 7,500.007,500.00 187.50187.50 93.7593.75 93.7593.75

TERMINAL LEAVE BENEFITTERMINAL LEAVE BENEFIT

(Rule XVI of the Omnibus Rules (Rule XVI of the Omnibus Rules Implementing Book V of EO 292, as Implementing Book V of EO 292, as amended by CSC MC Nos. 41 s. amended by CSC MC Nos. 41 s. 1998; 6 and 14s 1999)1998; 6 and 14s 1999)

This is the payment for the money value This is the payment for the money value of the total accumulated leave credits of the total accumulated leave credits of an employee based on the highest of an employee based on the highest salary rate received prior to, or upon salary rate received prior to, or upon retirement date/voluntary separation.retirement date/voluntary separation.

It is applied for by an official or an It is applied for by an official or an employee who intends to sever his employee who intends to sever his connection with his employer. connection with his employer. Accordingly, the filing of application for Accordingly, the filing of application for terminal leave requires as a condition terminal leave requires as a condition sine qua non, the employee's sine qua non, the employee's resignation, retirement or separation resignation, retirement or separation from the service. It must be shown first from the service. It must be shown first that public employment ceased by any that public employment ceased by any of the said modes of severances. (Sec. of the said modes of severances. (Sec. 35, Rule XVI, Omnibus Rules on Leave 35, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 41 s. 1998)as amended by CSC MC No. 41 s. 1998)

Approval of Terminal LeaveApproval of Terminal Leave

Application for commutation of vacation and Application for commutation of vacation and sick leave in connection with separation sick leave in connection with separation through no fault of an official or employee through no fault of an official or employee shall be sent to the head of department shall be sent to the head of department concerned for approval. In this concerned for approval. In this connection, clearance from the connection, clearance from the Ombudsman is no longer required for Ombudsman is no longer required for processing and payment of terminal leave processing and payment of terminal leave as such clearance is needed only for as such clearance is needed only for payment of retirement benefits. (Sec. 36, payment of retirement benefits. (Sec. 36, Rule XVI, Omnibus Rules on Leave as Rule XVI, Omnibus Rules on Leave as amended by CSC MC no. 41, s. 1998)amended by CSC MC no. 41, s. 1998)

Payment of Terminal LeavePayment of Terminal Leave

Any official/employee of the government who Any official/employee of the government who retires, voluntarily resigns, or is separated retires, voluntarily resigns, or is separated from the service through no fault of his from the service through no fault of his own, and who is not otherwise covered by own, and who is not otherwise covered by special law, shall be entitled to the special law, shall be entitled to the commutation of his leave credits exclusive commutation of his leave credits exclusive of Saturdays, and Holidays without of Saturdays, and Holidays without limitation and regardless of the period limitation and regardless of the period when the credits were earned. (Sec. 36, when the credits were earned. (Sec. 36, Rule XVI, Omnibus Rules on Leave as Rule XVI, Omnibus Rules on Leave as amended by CSC MC no. 41, s. 1998)amended by CSC MC no. 41, s. 1998)

Period within Which to Claim Terminal Period within Which to Claim Terminal Leave PayLeave Pay

Request for payment of terminal leave Request for payment of terminal leave benefits must be brought within ten benefits must be brought within ten (10) years from the time the right of (10) years from the time the right of action accrues upon an obligation action accrues upon an obligation created by law. (Sec. 36, Rule XVI, created by law. (Sec. 36, Rule XVI, Omnibus Rules on Leave as Omnibus Rules on Leave as amended by CSC MC no. 41, s. amended by CSC MC no. 41, s. 1998)1998)

Basis of computation of Terminal Leave Basis of computation of Terminal Leave

Payment of terminal leave for purposes of Payment of terminal leave for purposes of retirement or voluntary resignation shall retirement or voluntary resignation shall be based on the highest monthly salary be based on the highest monthly salary received at any time during his period of received at any time during his period of employment in the government service and employment in the government service and not on his latest salary, unless the latter is not on his latest salary, unless the latter is the highest received by the retiree. (Sec. the highest received by the retiree. (Sec. 36, Rule XVI, Omnibus Rules on Leave as 36, Rule XVI, Omnibus Rules on Leave as amended by CSC MC no. 41, s. 1998)amended by CSC MC no. 41, s. 1998)

Documentary Requirements to Support the Documentary Requirements to Support the Payment of Terminal Leave Payment of Terminal Leave

Approved application for leaveApproved application for leave Complete service recordComplete service record Clearance from money, property and Clearance from money, property and

legal accountabilitylegal accountability Statement of Assets and LiabilitiesStatement of Assets and Liabilities

Additional requirements in case of Additional requirements in case of field employees:field employees:

Clearance from central officeClearance from central office Clearance from office of last Clearance from office of last

assignmentassignment

STEP INCREMENTSSTEP INCREMENTS

Based on length of service onlyBased on length of service only Step increments for meritorious Step increments for meritorious

performance is already considered in the performance is already considered in the grant of Productivity Incentive Benefitsgrant of Productivity Incentive Benefits

Legal basis: Sec. 13 c of RA 6758Legal basis: Sec. 13 c of RA 6758 Amount: One step for every three years Amount: One step for every three years

of continuous satisfactory service in a of continuous satisfactory service in a particular position (based on the Monthly particular position (based on the Monthly Salary Schedule for Civilian Government Salary Schedule for Civilian Government Personnel, effective June 1, 2008)Personnel, effective June 1, 2008)

Beneficiaries: Permanent government officials Beneficiaries: Permanent government officials & employees & employees

Fund source: Regular Agency Budget(1% of Fund source: Regular Agency Budget(1% of total salaries)total salaries)

LEAVE BENEFITLEAVE BENEFIT

Leave benefit Leave benefit is generally defined as a right is generally defined as a right granted to officials and employees not to report granted to officials and employees not to report for work with or without pay as may be for work with or without pay as may be provided and as the rules prescribed in Rule provided and as the rules prescribed in Rule XVI. XVI. (MC no. 41, s. 1998)(MC no. 41, s. 1998)

The regular leave benefits for government The regular leave benefits for government officials and employees are vacation officials and employees are vacation leave, sick leave, maternity leave, leave, sick leave, maternity leave, paternity leave, and parental leave for paternity leave, and parental leave for solo parent.solo parent.

Vacation LeaveVacation Leave – refers to leave of – refers to leave of absence granted to officials and absence granted to officials and employees for personal reasons, the employees for personal reasons, the approval of which is contingent upon the approval of which is contingent upon the necessities of the service.necessities of the service.

Sick LeaveSick Leave – refers to leave of absence – refers to leave of absence granted only on account of sickness or granted only on account of sickness or disability on the part of the employee disability on the part of the employee concerned or any member of his concerned or any member of his immediate family. “Immediate family immediate family. “Immediate family refers to the spouse, children, parents, refers to the spouse, children, parents, unmarried brothers and sisters and any unmarried brothers and sisters and any relative living under the same roof and relative living under the same roof and dependent upon the employee for dependent upon the employee for support.support.

Appointive officials up to the level of Heads of Appointive officials up to the level of Heads of Executive Departments, Head of Departments, Executive Departments, Head of Departments, Undersecretaries and employees of the Undersecretaries and employees of the government whether permanent, temporary, or government whether permanent, temporary, or casual, who render work during the prescribed casual, who render work during the prescribed office hours, shall be entitled to 15 days vacation office hours, shall be entitled to 15 days vacation and 15 days sick leave annually with full pay and 15 days sick leave annually with full pay exclusive of Saturdays, Sundays, Public Holidays, exclusive of Saturdays, Sundays, Public Holidays, without limitation as to the number of days of without limitation as to the number of days of vacation and sick leave that they may vacation and sick leave that they may accumulate. (accumulate. (Sec. 1, Rule XVI, CSC Omnibus Sec. 1, Rule XVI, CSC Omnibus Rules on Leave, as amended by CSC MC Nos. 41, Rules on Leave, as amended by CSC MC Nos. 41, s. 1998; 6 and 14, s. 1999)s. 1998; 6 and 14, s. 1999)

Employees rendering services on part-Employees rendering services on part-time basis are entitled to vacation and time basis are entitled to vacation and sick leave benefits proportionate to the sick leave benefits proportionate to the number of work hours rendered. A part-number of work hours rendered. A part-time employee who renders four (4) hours time employee who renders four (4) hours of work five (5) days a week or a total of of work five (5) days a week or a total of 20 hours a week is entitled to 7.5 days 20 hours a week is entitled to 7.5 days sick leave and 7.5 vacation leave annually sick leave and 7.5 vacation leave annually with full pay. with full pay. (Sec. 1, MC No. 14, s. 1999)(Sec. 1, MC No. 14, s. 1999)

Employees on rotation basis shall be Employees on rotation basis shall be entitled to vacation and sick leave entitled to vacation and sick leave corresponding to the periods or services corresponding to the periods or services rendered by them. If an employee has rendered by them. If an employee has been allowed to work in two or more been allowed to work in two or more shifts or rotation, the periods of actual shifts or rotation, the periods of actual service covered by each shift or rotation service covered by each shift or rotation should be added together to determine should be added together to determine the number of years, months and days the number of years, months and days during which leave is earned. during which leave is earned. (Sec. 5, (Sec. 5, Rule XVI, Omnibus Rules)Rule XVI, Omnibus Rules)

Absence on a regular day for which Absence on a regular day for which suspension of work is announcedsuspension of work is announced – Where – Where an official or an employee fails to report for an official or an employee fails to report for work on a regular day for which suspension of work on a regular day for which suspension of work is declared after the start of the regular work is declared after the start of the regular working hours, he shall NOT BE considered working hours, he shall NOT BE considered ABSENT FOR THE WHOLE DAY. INSTEAD, ABSENT FOR THE WHOLE DAY. INSTEAD, HE SHALL ONLY BE DEDUCTED LEAVE HE SHALL ONLY BE DEDUCTED LEAVE CREDITS OR THE AMOUNT CREDITS OR THE AMOUNT CORRESPONDING TO THE TIME WHEN CORRESPONDING TO THE TIME WHEN OFFICIAL WORKING HOURS START UP TO OFFICIAL WORKING HOURS START UP TO THE TIME THE SUSPENSION OF WORK IS THE TIME THE SUSPENSION OF WORK IS ANNOUNCED. ANNOUNCED. (Sec. 32, MC No. 14, s. 1999)(Sec. 32, MC No. 14, s. 1999)

Contractual employees are entitled Contractual employees are entitled to vacation and sick leave credits as to vacation and sick leave credits as well as special leave privileges. well as special leave privileges. (Sec. (Sec. 4, Rule XVI, CSC Omnibus Rules on 4, Rule XVI, CSC Omnibus Rules on Leave, as amended by CSC MC Nos. Leave, as amended by CSC MC Nos. 41, s. and 6 14, s. 1999)41, s. and 6 14, s. 1999)

Monetization of Leave/Service CreditsMonetization of Leave/Service Credits

Officials and employees in the career and Officials and employees in the career and non-career service whether permanent, non-career service whether permanent, temporary, casual, or co-terminus, who temporary, casual, or co-terminus, who have accumulated fifteen (15) days of have accumulated fifteen (15) days of vacation leave credits shall be allowed to vacation leave credits shall be allowed to monetize a minimum of ten (10) days: monetize a minimum of ten (10) days: Provided, that at least five (5) days is Provided, that at least five (5) days is retained after monetization and provided retained after monetization and provided further that a maximum of thirty (30) further that a maximum of thirty (30) days may be monetized in a given year.days may be monetized in a given year.

Limitation:Limitation:

Monetization of fifty (50%) of all accumulated Monetization of fifty (50%) of all accumulated leave credits may be allowed for valid and leave credits may be allowed for valid and justifiable reasons subject to the discretion of justifiable reasons subject to the discretion of the agency head and availability of funds. the agency head and availability of funds. (Sec. (Sec. 22-23, Rule XVI of the Omnibus Rules on Leave, 22-23, Rule XVI of the Omnibus Rules on Leave, as amended by CSC MC Nos. 41, s. 1998; 14, s. as amended by CSC MC Nos. 41, s. 1998; 14, s. 1998)1998)

If an officer or employee does not avail of the If an officer or employee does not avail of the privilege of monetizing his vacation privilege of monetizing his vacation leave/service credits in a year, it shall be leave/service credits in a year, it shall be deemed included in his accumulated leave deemed included in his accumulated leave credits.credits.

An officer or employee who availed of the An officer or employee who availed of the maximum ten (10) vacation leave/service maximum ten (10) vacation leave/service credits can still go on five (5) days forced credits can still go on five (5) days forced leave as provided for under EO No. 1077 leave as provided for under EO No. 1077 dated January 9, 1986.dated January 9, 1986.

Teachers who have accumulated service Teachers who have accumulated service credits, may also avail of this privilege credits, may also avail of this privilege provided that the service credit shall be provided that the service credit shall be converted to vacation and sick leave in converted to vacation and sick leave in accordance with the Conversion Rate of accordance with the Conversion Rate of Service Credits prescribed in Sec. 45, Rule Service Credits prescribed in Sec. 45, Rule XVI, CSC Omnibus Rules on Leave, as XVI, CSC Omnibus Rules on Leave, as amended by CSC MC Nos. 41, s. 1998; 6 and amended by CSC MC Nos. 41, s. 1998; 6 and 14, s. 1999. 14, s. 1999.

Funding for the monetization of vacation Funding for the monetization of vacation leave credits/service credits shall be leave credits/service credits shall be charged against the savings of the charged against the savings of the department, agency, and government unit department, agency, and government unit concerned. Provided that in utilization of concerned. Provided that in utilization of savings, agencies shall give priority to savings, agencies shall give priority to payment of monetized leave payment of monetized leave credits/service credits and provided credits/service credits and provided further that employees holding positions further that employees holding positions below salary grade 19 shall be given below salary grade 19 shall be given preference in the availment of the preference in the availment of the privilege. privilege. (Joint CSC and DBM Cir. No. 1, (Joint CSC and DBM Cir. No. 1, s. 1999)s. 1999)

Forfeiture of Leave CreditsForfeiture of Leave Credits

Leave credits cannot be availed of in the Leave credits cannot be availed of in the following instances:following instances:

A person who was separated by virtue of A person who was separated by virtue of court conviction is not entitled to the court conviction is not entitled to the commutation of vacation and sick leave to commutation of vacation and sick leave to his credit, his separation is considered as his credit, his separation is considered as though his fault though his fault (COA Dec. 217, Aug. 7, (COA Dec. 217, Aug. 7, 1979)1979)

An official, employee or laborer of the An official, employee or laborer of the government who upon termination of the government who upon termination of the administrative case filed against him is administrative case filed against him is considered as involuntarily separated, and is considered as involuntarily separated, and is not entitled to the benefits guaranteed under not entitled to the benefits guaranteed under Section 286 of the revised Administrative Code. Section 286 of the revised Administrative Code. The separation not being voluntary but for The separation not being voluntary but for cause, such official, employee or laborer is not cause, such official, employee or laborer is not entitled to commutation of leave credits entitled to commutation of leave credits immediately upon separation from the service. immediately upon separation from the service. (opinion of the Sec. of Justice, No. 144, series of (opinion of the Sec. of Justice, No. 144, series of 1958; Ex. Sec. 101958; Ex. Sec. 10thth Ind., dated August 8, 1995) Ind., dated August 8, 1995)

An official/employee who reached the An official/employee who reached the compulsory retirement age of 65 but compulsory retirement age of 65 but whose services have been extended by whose services have been extended by the Civil Service Commission for the Civil Service Commission for another six (6) months, can no longer another six (6) months, can no longer earn leave credits earn leave credits (sec. 42, Rule XIV, (sec. 42, Rule XIV, CSC Omnibus Rules, as amended by CSC Omnibus Rules, as amended by CSC MC Nos. 41, s. 1998; 6 and 14, s. CSC MC Nos. 41, s. 1998; 6 and 14, s. 1999)1999)

Maternity LeaveMaternity Leave

Documentary Requirements:Documentary Requirements: Approved application for leave Approved application for leave

accompanied by a medical certificate accompanied by a medical certificate showing that the woman is on the showing that the woman is on the family way and nearing deliveryfamily way and nearing delivery

Clearance, if in excess of thirty daysClearance, if in excess of thirty days Marriage contract for first maternity Marriage contract for first maternity

leave leave (COA Cir. No. 92-389)(COA Cir. No. 92-389)

Limitations on Maternity Leave:Limitations on Maternity Leave:

Permanent and Regular EmployeesPermanent and Regular Employees

Every woman in the government service Every woman in the government service who has rendered an aggregate of two (2) who has rendered an aggregate of two (2) or more years of service, shall, in addition or more years of service, shall, in addition to the vacation and sick leave granted to the vacation and sick leave granted them, be entitled to maternity leave of them, be entitled to maternity leave of sixty (60) calendar days with full pay.sixty (60) calendar days with full pay.

Maternity leave of those who have rendered Maternity leave of those who have rendered one (1) year or more but less than two (2) one (1) year or more but less than two (2) years of service, shall be computed in years of service, shall be computed in proportion to their length of service, proportion to their length of service, provided, that those who have served for provided, that those who have served for less than one (1) year shall be entitled to 60 less than one (1) year shall be entitled to 60 days maternity leave with half pay.days maternity leave with half pay.It is understood that enjoyment of maternity It is understood that enjoyment of maternity leave cannot deferred but should be enjoyed leave cannot deferred but should be enjoyed within the actual period of delivery in a within the actual period of delivery in a continuous and uninterrupted manner not continuous and uninterrupted manner not exceeding 60 calendar days. exceeding 60 calendar days. (Sec. 11, Rule (Sec. 11, Rule XVI, Omnibus Rules on Leave as amended by XVI, Omnibus Rules on Leave as amended by CSC MC No. 22, s. 2002)CSC MC No. 22, s. 2002)

A married woman may be granted maternity A married woman may be granted maternity leave more than once a year. It shall be leave more than once a year. It shall be granted to female employees in every instance granted to female employees in every instance of pregnancy irrespective of its frequency. of pregnancy irrespective of its frequency. (Sec. 13, Rule XVI, Omnibus Rules on Leave as (Sec. 13, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 22, s. 2002)amended by CSC MC No. 22, s. 2002)

Maternity leave with pay may be granted even Maternity leave with pay may be granted even if the delivery occurs not more than 15 if the delivery occurs not more than 15 calendar days after the termination of calendar days after the termination of employee’s service as her right thereto has employee’s service as her right thereto has already accrued. already accrued. (Sec. 15, Rule XVI, Omnibus (Sec. 15, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 41, Rules on Leave as amended by CSC MC No. 41, s. 1998)s. 1998)

Maternity leave of employee with Maternity leave of employee with pending administrative case.pending administrative case. A A married woman employee is entitled married woman employee is entitled to maternity leave of absence with to maternity leave of absence with pay even if she has a pending pay even if she has a pending administrative case. administrative case. (Sec. 17, Rule (Sec. 17, Rule XVI, Omnibus Rules on Leave as XVI, Omnibus Rules on Leave as amended by CSC MC No. 22, s. amended by CSC MC No. 22, s. 2002)2002)

Maternity leave of contractual employee. All Maternity leave of contractual employee. All contractual employees shall be entitled to contractual employees shall be entitled to maternity leave benefits like regular maternity leave benefits like regular employees. employees. (Sec. 18, Rule XVI, Omnibus Rules (Sec. 18, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 22, s. on Leave as amended by CSC MC No. 22, s. 2002)2002)

Married or unmarried women may go on Married or unmarried women may go on maternity leave for less than sixty (60) days. maternity leave for less than sixty (60) days. When an employee wants to report back for When an employee wants to report back for duty before the expiration of her maternity duty before the expiration of her maternity leave, she may be allowed to do so provided leave, she may be allowed to do so provided she presents a medical certificate that she is she presents a medical certificate that she is physically fit to assume the duties of her physically fit to assume the duties of her position.position.

The commuted money value of the The commuted money value of the unexpired portion of the leave need not unexpired portion of the leave need not be refunded and that when the employee be refunded and that when the employee returns to work before the expiration of returns to work before the expiration of her maternity leave, she may receive both her maternity leave, she may receive both the benefits granted under the maternity the benefits granted under the maternity leave law and the salary for actual leave law and the salary for actual services rendered effective the day she services rendered effective the day she reports for work. reports for work. (Sec. 14, Rule XVI, (Sec. 14, Rule XVI, Omnibus on Leave, CSC MC No. 41, s. Omnibus on Leave, CSC MC No. 41, s. 1998; 14 s. 1999; 22 s. 2002)1998; 14 s. 1999; 22 s. 2002)

Paternity LeavePaternity Leave – non-cumulative/non- – non-cumulative/non-commutative – Paternity leave of seven commutative – Paternity leave of seven (7) days shall be non-cumulative and (7) days shall be non-cumulative and strictly non-commutative. The same may strictly non-commutative. The same may be enjoyed either in a continuous or in be enjoyed either in a continuous or in an intermittent manner by the employee an intermittent manner by the employee on the days immediately before, during on the days immediately before, during and after the childbirth or miscarriage of and after the childbirth or miscarriage of his legitimate spouse. his legitimate spouse. (Provided under (Provided under CSC MC No. 41, s. 1998 and amended CSC MC No. 41, s. 1998 and amended by CSC MC No. 14, s. 1999)by CSC MC No. 14, s. 1999)

PARENTAL LEAVE TO SOLO PARENTSParental leave shall refer to leave benefits

granted to a solo parent to enable said parent to perform parental duties and responsibilities where physical presence is required.

COVERAGE

Any individual in the government service who falls under any one of the following categories shall be considered a Solo Parent for the availment of Parental Leave.

1.1. A woman who gives birth as a result of A woman who gives birth as a result of rape and other crimes against chastity, rape and other crimes against chastity, even without a final conviction of the even without a final conviction of the offender: Provided, that the mother offender: Provided, that the mother keeps and raises the child;keeps and raises the child;

2.2. Parent left solo or alone with the Parent left solo or alone with the responsibility of parenthood due to any responsibility of parenthood due to any of the following circumstances:of the following circumstances:

Death of spouse; detention of the spouse or serving sentence for a criminal conviction for at least one (1) year;

Physical/mental incapacity of spouse as certified by a public medical practitioner;Legal separation or de facto separation from spouse for at least one year provided he/she has custody of the children;

Declaration of nullity or annulment of marriage as decreed by a court or by a church, provided, he/she has custody of the children; andAbandonment of spouse for at least one year;

3.Unmarried person who has preferred to keep and rear the children instead of having others care for them or give them up to a welfare institution;

4.Any other person who solely provides parental care and support to a child or children provided said person is duly licensed as a foster parent by the DSWD or duly appointed legal guardian by the court;

5. Any family member who assumes 5. Any family member who assumes the responsibility of head of family the responsibility of head of family as a result of death, abandonment, as a result of death, abandonment, disappearance or prolonged disappearance or prolonged absence of the parents or solo absence of the parents or solo parent: Provided, that such parent: Provided, that such abandonment, disappearance, or abandonment, disappearance, or absence lasts for at least one (1) absence lasts for at least one (1) year.year.

CONDITIONS FOR AVAILING OF PARENTAL LEAVE

The parental leave of seven (7) days in addition to existing leave privileges shall be granted to any solo parent employee subject to the following conditions:

1.The solo parent must have rendered government service for at least one (1) year, whether continuous or broken, reckoned at the time of the effectivity of RA 8972 on Sept. 22, 2002 and regardless of employment status.

2. The parental leave shall be availed 2. The parental leave shall be availed of every year and shall not be of every year and shall not be convertible to cash unless convertible to cash unless specifically agreed upon specifically agreed upon previously. If not availed of within previously. If not availed of within the calendar year, said privilege the calendar year, said privilege shall be forfeited within the same shall be forfeited within the same year.year.

3.The parental leave shall be availed of on a staggered or continuous basis, subject to the approval of the head of agency/office. In this regard, the solo parent shall submit the application for parental leave at least one (1) week prior to its availment, except on emergency cases.

4.The solo parent employee may avail of parental leave under any of the following circumstances:

attend to personal milestones of a child attend to personal milestones of a child such as birthdays, first communion, such as birthdays, first communion, graduations and other similar events;graduations and other similar events;

perform parental obligations such as perform parental obligations such as enrollment and attendance in school enrollment and attendance in school programs, PTA meetings and the like;programs, PTA meetings and the like;

attend to medical, social, spiritual and attend to medical, social, spiritual and recreational needs of the child; andrecreational needs of the child; and

other similar circumstances necessary in other similar circumstances necessary in the performance of parental duties and the performance of parental duties and responsibilities, where physical presence responsibilities, where physical presence of a parent is required.of a parent is required.

CONDITION FOR TERMINATION OF PARENTAL LEAVE PRIVILEGESChanges in the status and family situation of

a solo parent such as: marriage or the concerned parent is no longer left alone with the responsibility of parenthood. However, the termination shall be without prejudice to reapplication should circumstances warrant.

The head of agency/office concerned may determine whether granting of parental leave is proper or may conduct the necessary investigation to ascertain if grounds for termination and withdrawal of the privilege exist.

Special leave privilegesSpecial leave privileges – in addition to – in addition to the vacation, sick, maternity and paternity the vacation, sick, maternity and paternity leave, officials and employees with or leave, officials and employees with or without existing or approved Collective without existing or approved Collective Negotiation Agreement (CNA), except Negotiation Agreement (CNA), except teachers and those covered by special teachers and those covered by special leave laws, are granted the special leave leave laws, are granted the special leave privileges subject to the following stated privileges subject to the following stated conditions:conditions:

Personal milestones such as Personal milestones such as birthdays/wedding/wedding anniversary birthdays/wedding/wedding anniversary celebrations and other similar milestones, celebrations and other similar milestones, including death anniversaries.including death anniversaries.

Parental obligations such as attendance in Parental obligations such as attendance in school programs, PTA meetings, school programs, PTA meetings, graduations, first communion; medical graduations, first communion; medical needs, among others, where a child of the needs, among others, where a child of the government employee is involved.government employee is involved.

Filial obligations to cover the employee’s Filial obligations to cover the employee’s moral obligation toward his parents and moral obligation toward his parents and siblings for their medical and social siblings for their medical and social needs.needs.

Domestic emergencies such as sudden Domestic emergencies such as sudden urgent repairs needed at home, sudden urgent repairs needed at home, sudden absence of a yaya or maid, and the likeabsence of a yaya or maid, and the like

Personal transactions to cover the entire Personal transactions to cover the entire range of transactions an individual does range of transactions an individual does with government and private offices with government and private offices such as paying taxes, court appearances, such as paying taxes, court appearances, arranging a housing loan, etc.arranging a housing loan, etc.

Calamity, accident, hospitalization leave Calamity, accident, hospitalization leave pertain to force majeure events that pertain to force majeure events that affect the life, limb, and property of the affect the life, limb, and property of the employee or his immediate family.employee or his immediate family.

An employee can still avail of his An employee can still avail of his birthday or wedding anniversary birthday or wedding anniversary leave if such occasion falls on either leave if such occasion falls on either a Saturday, Sunday or Holiday, either a Saturday, Sunday or Holiday, either before or after the occasion.before or after the occasion.

Employees applying for special Employees applying for special privilege leaves shall no longer be privilege leaves shall no longer be required to present proof that they required to present proof that they are entitled to avail of such leaves.are entitled to avail of such leaves.

Three-day limit for a given year shall be Three-day limit for a given year shall be strictly observed: an employee can avail strictly observed: an employee can avail of one special privilege leave for three of one special privilege leave for three (3) days or a combination of any of the (3) days or a combination of any of the leaves for maximum of three days in a leaves for maximum of three days in a given year. Special leave privileges are given year. Special leave privileges are non-cumulative and strictly non-non-cumulative and strictly non-convertible to cash.convertible to cash.

Service Fees, Incentives or CommissionsService Fees, Incentives or Commissions

Granting of service fees, incentives or Granting of service fees, incentives or commissions - this kind of extra commissions - this kind of extra compensation is granted by the GSIS and compensation is granted by the GSIS and other government offices as authorized by other government offices as authorized by the Office of the President for the the Office of the President for the remittance of premiums, amortization, remittance of premiums, amortization, interests, etc. due these offices. interests, etc. due these offices. (Sec. 65, (Sec. 65, PD 1177; Sec. 6, CA 186, as amended; PD 1177; Sec. 6, CA 186, as amended; Sec. 290, GAAM Vol. 1)Sec. 290, GAAM Vol. 1)

Deposit of service fees collected Deposit of service fees collected – service fees – service fees collected shall be deposited with the national collected shall be deposited with the national or public financial institution treasury and or public financial institution treasury and shall accrue in the general fund pursuant to shall accrue in the general fund pursuant to Sec. 50 of PD 1177 Sec. 50 of PD 1177 (Sec. 44, Bk. VI, EO 292)(Sec. 44, Bk. VI, EO 292). . Such fees may be made available for payment Such fees may be made available for payment of incentive or service fees to employees who of incentive or service fees to employees who are actually and directly involved in the are actually and directly involved in the collection: Provided however, that the share collection: Provided however, that the share of any employee may not, in the aggregate, of any employee may not, in the aggregate, exceed fifty (50%) percent of his annual exceed fifty (50%) percent of his annual salary.salary.

Quarters AllowanceQuarters Allowance – quarters have been – quarters have been construed to include the place of lodging construed to include the place of lodging and the actual and necessary cost of and the actual and necessary cost of illumination and water. It also includes illumination and water. It also includes use of electric power for the use of radio use of electric power for the use of radio or refrigerator or any electrical device or refrigerator or any electrical device used in the home.used in the home.

Loyalty Cash GiftLoyalty Cash Gift

Civil Service Commission Memorandum Civil Service Commission Memorandum Circular No. 06s. 2002 provides that Circular No. 06s. 2002 provides that the payment of loyalty cash gift shall the payment of loyalty cash gift shall not be less than P500.00 but not more not be less than P500.00 but not more than P1,000.00 for every year of service than P1,000.00 for every year of service to qualified officials and employees.to qualified officials and employees.

DedEd Order No. 55 s. 2003 has set the DedEd Order No. 55 s. 2003 has set the amount of P500.00 as loyalty cash gift amount of P500.00 as loyalty cash gift to be given to DepEd officials and to be given to DepEd officials and employees.employees.

Anniversary BonusAnniversary Bonus

The Anniversary Bonus (AB) is a The Anniversary Bonus (AB) is a financial incentive authorized financial incentive authorized under Administrative Order No. under Administrative Order No. 263 dated March 28, 1996, to be 263 dated March 28, 1996, to be granted to government employees granted to government employees on the occasion of their agencies’ on the occasion of their agencies’ milestone years.milestone years.

CoverageCoverage

All government personnel whether employed All government personnel whether employed on full-time or part-time bases under on full-time or part-time bases under permanent, temporary or casual status, permanent, temporary or casual status, elective or appointive, including contractual elective or appointive, including contractual personnel whose employments are in the personnel whose employments are in the nature of regular employees who have nature of regular employees who have rendered at least 1 year of service in the rendered at least 1 year of service in the same agencies as of the date of milestone same agencies as of the date of milestone years and continue to be employed in the years and continue to be employed in the same government entities as of the occasion same government entities as of the occasion of their milestone anniversaries.of their milestone anniversaries.

Not CoveredNot Covered

Those absent without leave as of the date Those absent without leave as of the date of the milestone year for which the of the milestone year for which the anniversary bonus is being paid;anniversary bonus is being paid;

Those who are no longer in the service in Those who are no longer in the service in the same government entity as of the date the same government entity as of the date of the milestone year; andof the milestone year; and

Those Consultants, laborers of contracted Those Consultants, laborers of contracted projects (pakyaw), student laborers, projects (pakyaw), student laborers, apprentices, mail contractors, those paid apprentices, mail contractors, those paid on piecework bases and others similarly on piecework bases and others similarly situated.situated.

Rules and RegulationsRules and Regulations

The anniversary bonus shall be paid at The anniversary bonus shall be paid at P3,000.00 per personnel, provided that P3,000.00 per personnel, provided that he/she has rendered at least 1 year of he/she has rendered at least 1 year of service in the same agency.service in the same agency.

In case of insufficiency of funds, a lesser but In case of insufficiency of funds, a lesser but uniform amount of anniversary bonus may uniform amount of anniversary bonus may be paid to the personnel entitled thereto.be paid to the personnel entitled thereto.

A milestone year refers to the 15A milestone year refers to the 15thth anniversary and to every 5anniversary and to every 5thth year thereafter. year thereafter.

The counting of milestone years shall The counting of milestone years shall start from the year the government entity start from the year the government entity was created regardless of whether it was was created regardless of whether it was subsequently renamed or reorganized, subsequently renamed or reorganized, provided that its original primary provided that its original primary functions have not substantially changed. functions have not substantially changed. Otherwise, the counting of milestone Otherwise, the counting of milestone years shall start from the date the years shall start from the date the functions were substantially changed.functions were substantially changed.

The counting of the milestone years of The counting of the milestone years of merged agencies shall start from the date merged agencies shall start from the date they were merged.they were merged.

Officials and employees in government Officials and employees in government entities attached to or placed directly under entities attached to or placed directly under a department or department level entity and a department or department level entity and which creations are not through charters, which creations are not through charters, may be considered as organic personnel of may be considered as organic personnel of the mother department/department level the mother department/department level entity, for purposes of the grant of the entity, for purposes of the grant of the anniversary bonus.anniversary bonus.

The anniversary bonus shall be granted The anniversary bonus shall be granted only during milestone years and shall be only during milestone years and shall be received by the employee only once every received by the employee only once every 5 years, regardless of transfer from one 5 years, regardless of transfer from one government entity to another.government entity to another.

Gov’t. personnel who were found guilty of Gov’t. personnel who were found guilty of any offense in connection with their work any offense in connection with their work during the 5-year interval between during the 5-year interval between milestone years shall not be entitled to milestone years shall not be entitled to the immediately succeeding anniversary the immediately succeeding anniversary bonus.bonus.

Funding SourceFunding Source

For NGAS including SUCs, the For NGAS including SUCs, the amounts shall be solely charged amounts shall be solely charged against savings for released against savings for released allotments for current operating allotments for current operating expenses, provided that all expenses, provided that all authorized mandatory expenses shall authorized mandatory expenses shall have been paid first.have been paid first.

Those who thank God Even in trials turn the burden

into blessingsSo, keep your faith close to your

heartAnd God shall provide the

comfort you need

Traveling ExpensesTraveling Expenses - Include expenses incurred in the movement of - Include expenses incurred in the movement of

persons whether employed in the government persons whether employed in the government or not , such as transportation, subsistence, or not , such as transportation, subsistence, lodging and travel per diems, hire of guides or lodging and travel per diems, hire of guides or patrol; transportation of personnel baggage or patrol; transportation of personnel baggage or household effects; bus, railroad, airline and household effects; bus, railroad, airline and steamship fares, tips, transfers, etc. of persons steamship fares, tips, transfers, etc. of persons while on official travel whether foreign or local; while on official travel whether foreign or local; charter of boats, launches, automobiles, etc. charter of boats, launches, automobiles, etc. non-commutable transportation allowances, non-commutable transportation allowances, road tolls, parking fees and other expenses.road tolls, parking fees and other expenses.

-- Rates of allowances for official local and Rates of allowances for official local and foreign travels of government personnel are foreign travels of government personnel are provided under EO 248 as amended by EO 298.provided under EO 248 as amended by EO 298.

Approval of Travel Under EO 298, official local travel

shall be approved as follows:

Less than thirty Less than thirty (30) days(30) days

Head Head office/Bureau or office/Bureau or equivalentequivalent

Thirty (30) days Thirty (30) days or moreor more

Department Department Secretary or Secretary or equivalent (to be equivalent (to be construed as construed as Approved by Approved by Budget Secretary)Budget Secretary)

Allowable Travel Expenses

Pursuant to EO 298, the allowable travel expenses are as follows:

TotalTotal

Per dayPer dayHotel/Hotel/

LodgingLodgingMealsMeals IncidentIncident

alal

ExpenseExpensess

P800.00P800.00 50% - 50% - P400P400

30% - 30% - P240P240

20% -20% -P160P160

Allowable Travel Expenses Allowable Travel Expenses (cont’d.)(cont’d.)

Claims for reimbursement of actual travel Claims for reimbursement of actual travel expenses in excess of the travel expenses expenses in excess of the travel expenses authorized may be allowed upon authorized may be allowed upon certification of the head of the agency certification of the head of the agency concerned as absolutely necessary in the concerned as absolutely necessary in the performance of assignment and performance of assignment and presentation of bills and receipts. Provided presentation of bills and receipts. Provided that, certification or affidavit of loss shall that, certification or affidavit of loss shall not be considered as appropriate not be considered as appropriate replacement for the required hotel/lodging replacement for the required hotel/lodging bills and receipts.bills and receipts.

Entitlement to Travel ExpensesEntitlement to Travel Expenses

ParticularsParticulars PercentagePercentage To CoverTo Cover

Arrival not Arrival not laterlater

than 12:00 than 12:00 noonnoon

90%90% Hotel/lodging- Hotel/lodging- 50%50%

Meals- Meals- 20%20%Incidental Expenses- Incidental Expenses- 20%20%

Arrival afterArrival after

12:00 noon12:00 noon80%80% Hotel/lodging- Hotel/lodging- 50%50%

Meals- Meals- 10%10%Incidental Expenses- Incidental Expenses- 20%20%

Departure Departure beforebefore

12:00 noon12:00 noon

30%30% Breakfast- Breakfast- 10%10%Incidental Expenses- Incidental Expenses- 20%20%

Departure atDeparture at

12:00 and 12:00 and laterlater

40%40%Breakfast- Breakfast- 10%10%

Lunch- Lunch- 10%10%Incidental Expenses- Incidental Expenses- 20%20%

Specific Guidelines on Local Specific Guidelines on Local TravelTravel

1.1. The amount of transportation expenses The amount of transportation expenses allowable shall be the actual rates of the allowable shall be the actual rates of the authorized means of transportation plus authorized means of transportation plus other incidental expenses:other incidental expenses:

1.a1.a From the office or residence to the point From the office or residence to the point of embarkation;of embarkation; 1.b From the point of embarkation to the 1.b From the point of embarkation to the point of debarkation in the place of point of debarkation in the place of destination;destination; 1.c From the point of debarkation to the 1.c From the point of debarkation to the office oroffice or destination or temporary destination or temporary residence in the place of assignment in the residence in the place of assignment in the field and return.field and return.

Specific Guidelines on Specific Guidelines on Travel Travel

2. The allowable transportation expenses 2. The allowable transportation expenses shall not include local or inland shall not include local or inland transportation and other expenses after transportation and other expenses after arrival in the office or temporary arrival in the office or temporary residence in the place of assignment in residence in the place of assignment in the field which are contemplated to be the field which are contemplated to be covered by the travel allowance.covered by the travel allowance.

3. Only ordinary public conveyance or 3. Only ordinary public conveyance or customary modes of transportation customary modes of transportation shall be used. shall be used.

Specific Guidelines on Specific Guidelines on TravelTravel

4. Payment of travel expenses for travel/ 4. Payment of travel expenses for travel/ assignment to places within the fifty assignment to places within the fifty (50) kilometer radius from the last city (50) kilometer radius from the last city or municipality covered by the MMA, or municipality covered by the MMA, or the city or municipality wherein their or the city or municipality wherein their permanent official station is located in permanent official station is located in the case of those outside the MMA, the case of those outside the MMA, shall be allowed only upon presentation shall be allowed only upon presentation of bills or invoices with official receipts of bills or invoices with official receipts of expenses that they stayed in the of expenses that they stayed in the place of their assignment for the place of their assignment for the duration of travel.duration of travel.

Specific Guidelines on Specific Guidelines on TravelTravel

4. continuation…. 4. continuation….

- If they commute daily from the - If they commute daily from the place of their assignment to the place of their assignment to the place of their residence or place of their residence or permanent official station, they shall permanent official station, they shall be allowed only the reimbursement be allowed only the reimbursement of actual fare and cost of meals and of actual fare and cost of meals and incidental expenses which shall in no incidental expenses which shall in no case exceed four hundred pesos case exceed four hundred pesos (P400.00) per day.(P400.00) per day.

Specific Guidelines on Specific Guidelines on TravelTravel

5. Where government vehicles are 5. Where government vehicles are used, the officials and employees used, the officials and employees are not entitled to the are not entitled to the transportation expenses.transportation expenses.

6. No reimbursement of the cost of 6. No reimbursement of the cost of gasoline and oil shall be allowed gasoline and oil shall be allowed where a private vehicle is used. where a private vehicle is used.

Specific Guidelines on Specific Guidelines on TravelTravel

7. 7. The travel allowance shall not be allowed The travel allowance shall not be allowed in cases where the fare includes meals in cases where the fare includes meals and quarters en route, or where meals and quarters en route, or where meals and lodging are paid for or furnished by and lodging are paid for or furnished by the government.the government.

8. 8. No portion of the actual cost of the travel No portion of the actual cost of the travel expenses allowed to Dept. Secretaries, expenses allowed to Dept. Secretaries, Under-Under-

secretaries, Asst. Secretaries, & secretaries, Asst. Secretaries, & equivalent shall cover the expenses of any equivalent shall cover the expenses of any staff accompanying said officials, staff accompanying said officials, otherwise, such staff shall not be allowed otherwise, such staff shall not be allowed any of the allowances authorized.any of the allowances authorized.

Documentary Documentary Requirements for Cash Requirements for Cash

Advance VoucherAdvance Voucher Travel order properly approved in Travel order properly approved in

accordance with Section 5 of E.O. 248, accordance with Section 5 of E.O. 248, as amended;as amended;

Approved itinerary of travel detailing the Approved itinerary of travel detailing the transportation expenses and travel transportation expenses and travel expenses to be incurred as basis for expenses to be incurred as basis for determining the amount of cash advance. determining the amount of cash advance. (COA Circular Nos. 92-389(COA Circular Nos. 92-389 and and 96-004).96-004).

General Guidelines on General Guidelines on

Cash Advances (Official Cash Advances (Official Local Travel) Local Travel) 1.1. Local travels shall be treated and Local travels shall be treated and

accounted for as cash advances. accounted for as cash advances. Under the NGAS the account to be Under the NGAS the account to be used is “Due from Officers and used is “Due from Officers and Employees”. Employees”.

2. No cash advance shall be granted 2. No cash advance shall be granted to any official or employee unless a to any official or employee unless a proper accounting of the previous proper accounting of the previous cash advance given to him for cash advance given to him for travel is first made or the same is travel is first made or the same is first liquidated and/or settled.first liquidated and/or settled.

3. Proper accounting shall mean the 3. Proper accounting shall mean the receipt by the Accountant of the receipt by the Accountant of the prescribed liquidation documents prescribed liquidation documents although not yet recorded in the although not yet recorded in the books of accounts nor audited by books of accounts nor audited by the auditor.the auditor.

4. Liquidation shall mean the 4. Liquidation shall mean the recording of the liquidation recording of the liquidation documents in the books of accounts documents in the books of accounts by the accountant as a credit to the by the accountant as a credit to the cash advance account after cash advance account after verifying the same although not yet verifying the same although not yet audited by the auditor.audited by the auditor.

Liquidation of Cash Liquidation of Cash Advance after the TripAdvance after the Trip

1. Cash advance for local travel shall 1. Cash advance for local travel shall be liquidated strictly within thirty be liquidated strictly within thirty (30) days after return to permanent (30) days after return to permanent official station as required under official station as required under Section 16 of Executive Order No. Section 16 of Executive Order No. 248 as amended otherwise, payment 248 as amended otherwise, payment of salary shall be suspended until of salary shall be suspended until compliance therewith.compliance therewith.

2. Documents supporting Liquidation 2. Documents supporting Liquidation VoucherVoucher

* Certificate of travel completed* Certificate of travel completed

* Used tickets* Used tickets

* Certification of the head of the * Certification of the head of the agency as to agency as to the absolute necessity the absolute necessity of the expenses of the expenses together together with the corresponding bills and with the corresponding bills and

receipts, if the expenses receipts, if the expenses incurred for official incurred for official

local travel exceed the local travel exceed the prescribed rate of prescribed rate of

P800.00 per day.P800.00 per day.

* Certificate of appearance or copy of report * Certificate of appearance or copy of report

duly noted by agency head or authorized duly noted by agency head or authorized

representativerepresentative

* Where a trip is cancelled, the amount * Where a trip is cancelled, the amount paid in paid in

advance shall be refunded in full.advance shall be refunded in full.

* When a trip exceeds the approved * When a trip exceeds the approved itinerary,itinerary,

the additional travel expenses due shall the additional travel expenses due shall be be

paid upon submission of a written paid upon submission of a written

justification to the agency head.justification to the agency head.

In-house training programs of agency In-house training programs of agency personnel with minimal expenses personnel with minimal expenses for:for:

1.1. Supplies and materials;Supplies and materials;2.2. Materials reproduction (hand-outs);Materials reproduction (hand-outs);3.3. Rental for training venues/facilities Rental for training venues/facilities

for offices/agencies which do not for offices/agencies which do not have any;have any;

4.4. Resource persons’ services; andResource persons’ services; and5.5. Communication and transportation Communication and transportation

expensesexpenses

1.1. Bills shall be attached.Bills shall be attached.

2.2. Rates are those allowed under Rates are those allowed under existing regulations.existing regulations.

3.3. Any significant increase in Any significant increase in consumption is caused by consumption is caused by operations and not by any defect operations and not by any defect in the service.in the service.

1.1. Telephone rentals must conform to Telephone rentals must conform to the prevailing rates.the prevailing rates.

2.2. Long distance calls for official Long distance calls for official business shall be limited to urgent business shall be limited to urgent and absolutely necessary business of and absolutely necessary business of the government.the government.

3.3. All officers placing long distance calls All officers placing long distance calls should certify to the official nature of should certify to the official nature of the conversation including the name the conversation including the name and address and the official and address and the official designation of the party called.designation of the party called.

4.4. Number of days of interruption in the Number of days of interruption in the telephone service should be recorded telephone service should be recorded and deducted from the telephone and deducted from the telephone service bills.service bills.

5.5. Unless authorized by law or regulation, Unless authorized by law or regulation, no government official is entitled to no government official is entitled to telephone service at his residence and telephone service at his residence and payment of bills thereto.payment of bills thereto.

6.6. Telegrams, cables and wireless charges Telegrams, cables and wireless charges must conform by invoices/receipts and must conform by invoices/receipts and a copy of the message sent.a copy of the message sent.

7.7. Telegrams, radiograms, cablegrams Telegrams, radiograms, cablegrams and all other wireless messages and all other wireless messages official in nature shall be used only official in nature shall be used only for matters of urgent importance.for matters of urgent importance.

8.8. The message transmitted must be The message transmitted must be brief and concise.brief and concise.

9.9. Any personal matter contained in Any personal matter contained in an official message which no an official message which no bearing thereon should be charged bearing thereon should be charged against the sender.against the sender.

10. Messages covering request or 10. Messages covering request or authorization for leave of absence, authorization for leave of absence, personal business or greetings for personal business or greetings for birthdays, anniversaries, etc., birthdays, anniversaries, etc., should not be charged to the should not be charged to the government funds.government funds.

The agency head shall approve the The agency head shall approve the subscription.subscription.

Library materials such as technical Library materials such as technical magazines, periodicals, documents and magazines, periodicals, documents and other reading matters may be ordered other reading matters may be ordered provided the funds are available therefor provided the funds are available therefor and that these are kept in the agency’s and that these are kept in the agency’s library or research center for referencelibrary or research center for reference

Auditing ServicesAuditing Services

Expenses incurred by any Expenses incurred by any government agency or the amount government agency or the amount due to the Commission on Audit for due to the Commission on Audit for auditing services rendered.auditing services rendered.

Building MaintenanceBuilding Maintenance Cost of repairing and maintaining buildings Cost of repairing and maintaining buildings

owned by the governmentowned by the government Before prosecution of work by Before prosecution of work by

Administration or by Contract, there must Administration or by Contract, there must be:be:1. A certificate of availability of 1. A certificate of availability of appropriations free from other obligations, appropriations free from other obligations, issued by the Chief Accountant of the issued by the Chief Accountant of the agency concerned.agency concerned.2. A program and estimate of work 2. A program and estimate of work prepared by the project engineerprepared by the project engineer3. Prosecution by contract shall follow the 3. Prosecution by contract shall follow the requirements of “Contracts”requirements of “Contracts”

Motor Vehicles Motor Vehicles MaintenanceMaintenance

This is the cost of repairing and maintaining This is the cost of repairing and maintaining motor vehicles owned by the government.motor vehicles owned by the government.

General Rules and Requirements for Payment:General Rules and Requirements for Payment:1. Requests for repair and/or servicing of vehicle 1. Requests for repair and/or servicing of vehicle should be approved by proper authorities;should be approved by proper authorities;2. If the repair involves replacement of spare 2. If the repair involves replacement of spare parts, a Report of Waste Materials should be parts, a Report of Waste Materials should be prepared upon submission of the worn-out spare prepared upon submission of the worn-out spare parts.parts.3. Certificate of the Property Officer must state 3. Certificate of the Property Officer must state that the vehicle belongs to or is used by the that the vehicle belongs to or is used by the agency, and the repair is necessary, and that the agency, and the repair is necessary, and that the defect in the vehicle is incurred through normal defect in the vehicle is incurred through normal wear and tear and not due to the fault or wear and tear and not due to the fault or negligence of any official or employee.negligence of any official or employee.

Motor Vehicle Maintenance Motor Vehicle Maintenance (Cont’d)(Cont’d)

Additional requirements in the case of a major repair Additional requirements in the case of a major repair such as general reconditioning, overhauling, such as general reconditioning, overhauling, repainting, etc.:repainting, etc.:- Canvass from at least three (3) repair shops or - Canvass from at least three (3) repair shops or public bidding if the amount involved is more than public bidding if the amount involved is more than P50,000.00. P50,000.00. - The repair shop to which the contract is awarded - The repair shop to which the contract is awarded should be duly accredited by the Department of should be duly accredited by the Department of Trade and Industry, except in places where there is Trade and Industry, except in places where there is no accredited shop in the locality or where the no accredited shop in the locality or where the accredited shop does not have sufficient facilities or accredited shop does not have sufficient facilities or where the cost of services of the accredited shop is where the cost of services of the accredited shop is relatively high or completion of repairs will suffer relatively high or completion of repairs will suffer delays as certified by the head of the agency.delays as certified by the head of the agency.

Cont’dCont’d

- The job contract should be very clear as to - The job contract should be very clear as to the specific job to be undertaken, the the specific job to be undertaken, the specifications of materials to be used, the specifications of materials to be used, the period within which the job is to be completed, period within which the job is to be completed, etc.etc.- Warranty certificate of the repair shops shall - Warranty certificate of the repair shops shall be as clear to coverage and period.be as clear to coverage and period.- The certificate of acceptance by the Property - The certificate of acceptance by the Property Officer should be clear that the work or service Officer should be clear that the work or service done is in conformity with the specifications of done is in conformity with the specifications of the contract and accomplished within the the contract and accomplished within the specified period of time.specified period of time.

An application of the employee An application of the employee concerned giving facts of the offense he concerned giving facts of the offense he was charged with and approved by the was charged with and approved by the proper Department Head concerned proper Department Head concerned and passed upon by the COA Chairman.and passed upon by the COA Chairman.

Copies of decisions exonerating him Copies of decisions exonerating him from administrative or criminal liability.from administrative or criminal liability.

Receipts of actual and related expenses Receipts of actual and related expenses incurred.incurred.

Certificate of availability funds. Certificate of availability funds.

Legal Expenses (Cont’d)Legal Expenses (Cont’d)

As a general rule, government officials As a general rule, government officials and employees who are criminally and employees who are criminally prosecuted for acts committed in the prosecuted for acts committed in the performance of their duties may be performance of their duties may be allowed reimbursement of reasonable allowed reimbursement of reasonable attorney’s fees including the bail bond attorney’s fees including the bail bond premiums incurred in connection with premiums incurred in connection with their defense, only upon their their defense, only upon their acquittal from such criminal cases.acquittal from such criminal cases.

These are the expenses incurred for or during These are the expenses incurred for or during meetings, seminars, and conferences, official meetings, seminars, and conferences, official entertainment of a government official or entertainment of a government official or through his authorized representative, public through his authorized representative, public relations, educational, athletic and cultural relations, educational, athletic and cultural activities, contributions to civic or charitable activities, contributions to civic or charitable institutions, membership fees in government institutions, membership fees in government associations and national professional associations and national professional organizations duly accredited by the PRC. organizations duly accredited by the PRC.

No portion of the amounts authorized and fixed No portion of the amounts authorized and fixed by law shall be used for salaries, wages, by law shall be used for salaries, wages, allowances and intelligence and confidential allowances and intelligence and confidential expensesexpenses

1.1. Asset cost- Asset cost- Purchase amount of the Purchase amount of the asset.asset.

2.2. Estimated salvage value- Estimated salvage value- estimated estimated amount that the asset can be sold amount that the asset can be sold at the end of its estimated life.at the end of its estimated life.

3.3. Estimated useful life- Estimated useful life- estimated estimated period that the agency can make period that the agency can make use of the asset.use of the asset.

InventoriesInventories

DefinitionDefinition

Expendable commodities acquired or ordered Expendable commodities acquired or ordered for immediate use in connection with for immediate use in connection with government operations. They include, but government operations. They include, but are not restricted to items normally are not restricted to items normally consumed within one year after being put consumed within one year after being put into use, or converted in the process of into use, or converted in the process of manufacture or construction, having a life manufacture or construction, having a life expectancy of more than one year but which expectancy of more than one year but which shall have decreased substantially in value shall have decreased substantially in value after being put into use in only one year.after being put into use in only one year.

COA Circular 2005-002COA Circular 2005-002 Small tangible items with estimated useful life of Small tangible items with estimated useful life of

more than one year shall be recorded as more than one year shall be recorded as inventories upon acquisition and expense upon inventories upon acquisition and expense upon issuance.issuance.Ex.: Ex.: Black board/white board, cutter, desk tray, Black board/white board, cutter, desk tray, mini-calculators, pen, puncher, sharpener, stapler, mini-calculators, pen, puncher, sharpener, stapler, water jug, water hose, weighing scale, screen water jug, water hose, weighing scale, screen projector, mouse, emergency light, extension projector, mouse, emergency light, extension cord, wooden chairs, desks, tables, blanket, etc. cord, wooden chairs, desks, tables, blanket, etc.

- - For monitoring, control and accountability, an For monitoring, control and accountability, an Inventory Custodian Slip (ICS) shall be prepared Inventory Custodian Slip (ICS) shall be prepared upon issuance of small tangible items covered by upon issuance of small tangible items covered by approved Requisition and Issue Slip (RIS)/approved Requisition and Issue Slip (RIS)/

General Guidelines in General Guidelines in ProcurementProcurement

1.1. Agencies shall procure common-use Agencies shall procure common-use supplies, materials and equipment supplies, materials and equipment from the Procurement Service (PS) from the Procurement Service (PS) which is attached to DBM.which is attached to DBM.

2.2. Procurement of supplies, materials Procurement of supplies, materials and equipment shall be through and equipment shall be through competitive public biddingcompetitive public bidding

3.3. Appropriated funds shall be available Appropriated funds shall be available for locally manufactured goods.for locally manufactured goods.

Documentary Documentary RequirementsRequirements

1.1. Purchase RequestPurchase Request

2.2. Purchase Order/Letter Purchase Order/Letter Order/ContractOrder/Contract

3.3. Original copy of the Original copy of the dealer’s/suppliers invoicedealer’s/suppliers invoice

4.4. Acceptance and Inspection (AIR)Acceptance and Inspection (AIR)

5.5. Result of test/analysis by proper Result of test/analysis by proper government agency if articles are government agency if articles are subject to test.subject to test.

General Procedures in General Procedures in ProcurementProcurement

1.1. Procurement Planning and the Procurement Planning and the Preparation of the Annual Procurement Preparation of the Annual Procurement Plan (APP);Plan (APP);

2.2. Requisitioning or Preparation of Supplies Requisitioning or Preparation of Supplies Availability Inquiry (SAI)Availability Inquiry (SAI)

3.3. Approval of RequisitionApproval of Requisition

4.4. Preparation of Obligation Request (ObR)Preparation of Obligation Request (ObR)

5.5. Preparation, Approval and Delivery of Preparation, Approval and Delivery of Purchase Order/ Letter Order/ContractPurchase Order/ Letter Order/Contract

General Procedures in General Procedures in ProcurementProcurement

6.6. Delivery, Inspection and Delivery, Inspection and Acceptance of the ItemsAcceptance of the Items

7.7. Payment for the Items delivered.Payment for the Items delivered.

Preparation of Purchase Preparation of Purchase Order Order

The PO/LO/Contract is the document The PO/LO/Contract is the document evidencing a transaction for the purchase of evidencing a transaction for the purchase of supplies and materials.supplies and materials.

It shall indicate:It shall indicate:

- Office to which account shall be charged- Office to which account shall be charged

- Requisition Number- Requisition Number

- Name and Address of the contractor/supplier- Name and Address of the contractor/supplier

- Complete description and specifications of - Complete description and specifications of the the

suppliessupplies

(Cont’d)(Cont’d)

- Other information and data needed to - Other information and data needed to enable agency officials and all others enable agency officials and all others concerned to determine:concerned to determine:

a. Nature, quality of the items purchaseda. Nature, quality of the items purchased

b. Quantity and unit price of the itemsb. Quantity and unit price of the items

c. Period of deliveryc. Period of delivery

d. Shipping termsd. Shipping terms

e. Provisions on penalties for late or no e. Provisions on penalties for late or no deliverydelivery

COA Circular 96-10COA Circular 96-10 A copy of any letter or purchase order A copy of any letter or purchase order

irrespective of amount, and all supporting irrespective of amount, and all supporting documents thereto shall be submitted to documents thereto shall be submitted to the Unit or Agency Auditor concerned the Unit or Agency Auditor concerned within five (5) days from issuancewithin five (5) days from issuance

The agency official responsible for The agency official responsible for accepting deliveries of procured items accepting deliveries of procured items shall, within 24 hours from such shall, within 24 hours from such acceptance, notify the Auditor of the time acceptance, notify the Auditor of the time and date of the scheduled deliveries. and date of the scheduled deliveries.

Section 465 of GAAM Section 465 of GAAM Vol. IVol. I

Report of Inspection of all Report of Inspection of all consumables shall be submitted to consumables shall be submitted to the COA Auditor within 24 hours the COA Auditor within 24 hours after delivery.after delivery.

Purchase of Supplies, Purchase of Supplies, Materials and Equipment Materials and Equipment

Spare Parts for StockSpare Parts for Stock The inventory of supplies, materials and equipment spare The inventory of supplies, materials and equipment spare

parts to be procured out of available funds shall in no parts to be procured out of available funds shall in no time exceed the normal three-month requirement, time exceed the normal three-month requirement, subject to pertinent rules and regulations issued by subject to pertinent rules and regulations issued by competent authority: Provided, that heads of competent authority: Provided, that heads of departments, bureaus, offices or agencies and other departments, bureaus, offices or agencies and other instrumentalities of government may increase their instrumentalities of government may increase their inventory of critical supplies and materials in anticipation inventory of critical supplies and materials in anticipation of cost increases, of if necessitated by a national of cost increases, of if necessitated by a national emergency or an impending shortage in the items emergency or an impending shortage in the items concerned, specifying maximum quantities of individual concerned, specifying maximum quantities of individual items. Unless otherwise approved by the President of items. Unless otherwise approved by the President of the Philippines, upon the joint recommendation of the the Philippines, upon the joint recommendation of the Secretary concerned and the Chairman of the COA, these Secretary concerned and the Chairman of the COA, these stocks shall not exceed one year’s requirement.stocks shall not exceed one year’s requirement.

Acceptance or Rejection of Acceptance or Rejection of DeliveriesDeliveries

Where a trend of shortage in quantity, or Where a trend of shortage in quantity, or deficiencies/defects in quality is established, the deficiencies/defects in quality is established, the inspector may recommend for rejection or reduction inspector may recommend for rejection or reduction in price.in price.

After consideration of tolerable allowance, supplies or After consideration of tolerable allowance, supplies or property tested and found to be in accordance with property tested and found to be in accordance with the required specifications shall be accepted.the required specifications shall be accepted.

Supplies with deficiency of less than 10% may be Supplies with deficiency of less than 10% may be accepted provided that the contract price is reduced accepted provided that the contract price is reduced according to the deficiency noted.according to the deficiency noted.

Supplies whose quantity is short by volume, weight, Supplies whose quantity is short by volume, weight, actual count, shall be subject to reduction in contract actual count, shall be subject to reduction in contract price at an amount equivalent to the shortage, price at an amount equivalent to the shortage, provided said deliveries are acceptable to the agency provided said deliveries are acceptable to the agency or unit.or unit.

Basic Requirements in the Basic Requirements in the Payment of Supplies and Payment of Supplies and

MaterialsMaterials Duly approved Purchase RequestDuly approved Purchase Request Purchase Order/Letter Order/ContractPurchase Order/Letter Order/Contract Original Copy of the Original Copy of the

Dealer’s/Supplier’s InvoiceDealer’s/Supplier’s Invoice Acceptance and Inspection Report Acceptance and Inspection Report

(IAR)(IAR) Result of Analysis if articles are Result of Analysis if articles are

subject to testsubject to test

Other Activities After Other Activities After ProcurementProcurement

1. Property Records to be Maintained1. Property Records to be Maintained

* * Stock CardStock Card

2. Recording of Deliveries of Supplies 2. Recording of Deliveries of Supplies or Property in the Books of Accountsor Property in the Books of Accounts

* * Supplies Ledger CardSupplies Ledger Card

* * Equipment Ledger CardEquipment Ledger Card

3. Report of Supplies and Materials 3. Report of Supplies and Materials Issued (RSMI)Issued (RSMI)

Measure of Liability of Measure of Liability of Persons Accountable for Persons Accountable for

Supplies or PropertySupplies or Property The person in possession of or The person in possession of or

having custody or control of supplies having custody or control of supplies or property is immediately or property is immediately accountable therefor and shall be accountable therefor and shall be liable for its money value in case of liable for its money value in case of illegal, improper or unauthorized illegal, improper or unauthorized use or misapplication thereof, by use or misapplication thereof, by himself or any other person for himself or any other person for whose acts he may be responsible.whose acts he may be responsible.

Receipts/Income Receipts/Income Collections and Deposits Collections and Deposits

SystemSystem covers the processes of covers the processes of

acknowledging and reporting acknowledging and reporting income/collections, deposits of income/collections, deposits of collections with Authorized collections with Authorized Government Depository Bank (AGDB) Government Depository Bank (AGDB) or through the AGDB for the account or through the AGDB for the account of Treasurer of the Philippines, and of Treasurer of the Philippines, and recording of collections and deposits recording of collections and deposits in the books of accounts of the agency.in the books of accounts of the agency.

Deposit of CollectionsDeposit of Collections

All Collecting Officers shall deposit All Collecting Officers shall deposit intact all their collections, as well as intact all their collections, as well as collections turned over to them by sub-collections turned over to them by sub-collectors/tellers, with AGDB daily or collectors/tellers, with AGDB daily or not later than the next banking day. not later than the next banking day. They shall record all deposits made in They shall record all deposits made in the Cash Receipts Record.the Cash Receipts Record.

Reporting of Collections Reporting of Collections and Depositsand Deposits

At the close of each business day, the At the close of each business day, the Collecting officers shall accomplish the Collecting officers shall accomplish the Report of Collections and Deposits Report of Collections and Deposits (RCD) in accordance with the (RCD) in accordance with the instructions provided in Volume II of the instructions provided in Volume II of the NGAS Manual for the RCD. All NGAS Manual for the RCD. All collections shall be deposited with collections shall be deposited with AGDB for the account of the agency or AGDB for the account of the agency or the Treasurer of the Philippines daily or the Treasurer of the Philippines daily or not later than the next banking day.not later than the next banking day.

Types of Collections as Types of Collections as to authority to useto authority to use

Without authority to use.Without authority to use. With authority to useWith authority to use Authority with limitationsAuthority with limitations Income from sale of equipmentIncome from sale of equipment Grants and donations intended for Grants and donations intended for

agency useagency use Miscellaneous collectionsMiscellaneous collections

Without Authority to UseWithout Authority to Use

As a general rule, all revenues, As a general rule, all revenues, regardless of amount and frequency regardless of amount and frequency of collection are to be remitted to of collection are to be remitted to the National Treasury. Such income the National Treasury. Such income shall be recorded by the collecting shall be recorded by the collecting agency in a separate book of agency in a separate book of accounts, the National Government accounts, the National Government (NG) Books.(NG) Books.

With Authority to UseWith Authority to Use

Agencies, which are authorized to Agencies, which are authorized to use income for their operations shall use income for their operations shall record their collections in the record their collections in the Regular Agency Books (RA). Since Regular Agency Books (RA). Since said collections may be used by the said collections may be used by the agency for their operations, no agency for their operations, no remittance to the National Treasury remittance to the National Treasury shall be required. shall be required.

Authority With Authority With LimitationsLimitations

If the authority is subject to the If the authority is subject to the limitations that any excess collection limitations that any excess collection shall be remitted to the National shall be remitted to the National Treasury, such as collections from Treasury, such as collections from seminar and convention fees, the same seminar and convention fees, the same shall be recorded in the Regular Agency shall be recorded in the Regular Agency Books (RA). The expenses shall be Books (RA). The expenses shall be journalized, and whatever excess shall journalized, and whatever excess shall be transferred to NG Books and be transferred to NG Books and remitted to National Treasury.remitted to National Treasury.

INCOME FROM SALE OF INCOME FROM SALE OF EQUIPMENTEQUIPMENT

Sec. 12. 2008 General Appropriations ActSec. 12. 2008 General Appropriations Act Sale of Non-Serviceable, Obsolete or Unnecessary Sale of Non-Serviceable, Obsolete or Unnecessary

Equipment.Equipment.Departments, bureaus, offices or agencies are Departments, bureaus, offices or agencies are hereby authorized to sell non-serviceable, obsolete, hereby authorized to sell non-serviceable, obsolete, or unnecessary equipment including cars, vans and or unnecessary equipment including cars, vans and the like pursuant to the provisions of Section 79 of the like pursuant to the provisions of Section 79 of PD No.1445 and EO No. 309 s. 1996. The proceeds PD No.1445 and EO No. 309 s. 1996. The proceeds from the sale of such equipment shall be deemed from the sale of such equipment shall be deemed automatically appropriated for the purchase of new automatically appropriated for the purchase of new ones, and for the repair or rehabilitation of existing ones, and for the repair or rehabilitation of existing vital equipment, subject to the submission of a vital equipment, subject to the submission of a Special Budget pursuant to Sec. 35, Chapter 5, Book Special Budget pursuant to Sec. 35, Chapter 5, Book VI of EO No. 292.VI of EO No. 292.

Cont’dCont’d

Provided, that the purchase of such new Provided, that the purchase of such new cars and vans shall be subject to prior cars and vans shall be subject to prior authority pursuant to pertinent laws, authority pursuant to pertinent laws, rules and regulations; Provided, further, rules and regulations; Provided, further, that the agency concerned shall submit that the agency concerned shall submit to the DBM, the House Committee on to the DBM, the House Committee on Appropriations and the Senate Appropriations and the Senate Committee on Finance a report on the Committee on Finance a report on the types of equipment sold and the types of equipment sold and the utilization of the sales proceeds.utilization of the sales proceeds.

Grants and Donations Grants and Donations

All income from grants and donations shall be All income from grants and donations shall be receipted by national government agencies receipted by national government agencies and remitted to the National Treasury, unless and remitted to the National Treasury, unless it is authorized by the donor/grantor that the it is authorized by the donor/grantor that the same shall be deposited with the Authorized same shall be deposited with the Authorized Government Depository Bank (AGDB).Government Depository Bank (AGDB).

Account “Income from Grants and Donations” Account “Income from Grants and Donations” shall be used to record receipt of the shall be used to record receipt of the grants/donations whether to be remitted to grants/donations whether to be remitted to the National Treasury or deposited to AGDB.the National Treasury or deposited to AGDB.

Grants and Donations Grants and Donations Remitted to the National Remitted to the National

TreasuryTreasury Special Allotment Receipt Order Special Allotment Receipt Order

(SARO) and Notice of Cash Allocation (SARO) and Notice of Cash Allocation (NCA) shall be requested by the (NCA) shall be requested by the recipient agency from the DBM before recipient agency from the DBM before utilization of the grants and donation.utilization of the grants and donation.

The receipt of NCA shall be recorded The receipt of NCA shall be recorded in the RA books as credit to “Subsidy in the RA books as credit to “Subsidy Income from the National Income from the National Government”Government”

Grants and Donations Grants and Donations Deposited with AGDBDeposited with AGDB

A Special Budget shall be prepared A Special Budget shall be prepared in accordance with the in accordance with the Memorandum of Agreement or Deed Memorandum of Agreement or Deed of Donation for approval of Head of of Donation for approval of Head of the Agency or its approving body. the Agency or its approving body. The approved Special Budget shall The approved Special Budget shall be entered in the Registry of be entered in the Registry of Budgeted Income and Utilization.Budgeted Income and Utilization.

DepEd Order No. 19 s. DepEd Order No. 19 s. 20082008

Implementation of No Collection Policy in all Implementation of No Collection Policy in all Public Elementary and Secondary SchoolsPublic Elementary and Secondary SchoolsPursuant to the Constitutional mandate for Pursuant to the Constitutional mandate for the provision of free public education at the the provision of free public education at the elementary and secondary levels and to meet elementary and secondary levels and to meet the country’s targets in the Education for All the country’s targets in the Education for All Plan 2015 and the Millennium Development Plan 2015 and the Millennium Development Goals (MDGs) with respect to primary school Goals (MDGs) with respect to primary school participation, there is an urgent need to participation, there is an urgent need to remove obstacles to the enrolment of school-remove obstacles to the enrolment of school-age children. These obstacles include the age children. These obstacles include the out-of-pocket costs which families have to out-of-pocket costs which families have to bear in the course of sending their children bear in the course of sending their children to school.to school.

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