GENERAL PROVISIONS RECEIPTS AND INCOME Sec. 3. Fees, Charges and Assessments.All fees, charges, assessments, and other receipts or revenues collected by departments, bureaus, offices or agencies in the exercise of their functions, at such rates as are now or may be approved by the Secretary concerned, shall be deposited with the National Treasury and shall accrue to the General Fund pursuant to Section 44, Chapter 5, Book VI of E.O. No. 292 and Section 3 of B.P. Blg. 325: PROVIDED, That certain receipts may be recorded as a Special Account in the General Fund or a Fiduciary or a Trust Fund, or a fund other than the General Fund, when authorized by law and following such rules and regulations as may be issued by the Permanent Committee created under Section 45, Chapter 5, Book VI of E.O. No. 292: PROVIDED, FURTHER, That all revenues or income accruing to special accounts in the General Fund may be made available for expenditure, subject to the Special Provision in this Act for the agencies concerned, if any, and to Special Budgets required under Section 35, Chapter 5, Book VI of E.O. No. 292: PROVIDED, FURTHERMORE, That whenever practicable and taking into account the cost reduction program of the government, when an agency contracts with another government office for fabrication of furniture or equipment, or for computer, printing or other services, the agency rendering such services may assess the requesting agency for the cost of production and services rendered and may utilize the proceeds thereof, subject to Section 35, Chapter 5, Book VI of E.O. No. 292, except as otherwise provided in this Act: AND PROVIDED, FINALLY, That the schedule of fees, charges and assessments collectible by any government agency including government-owned and/or controlled corporations shall be posted in big bold characters in a conspicuous place in said government agency or corporation, including its branches or extension offices and that the updating and continuous display of said schedule shall be the responsibility of the head of the agency or corporation concerned. Sec. 4. Revolving Fund. Revolving funds shall be established and maintained only in cases where said funds are expressly created and authorized by law. Revolving funds already in existence shall continue their operations. Receipts derived from business-type activities of departments, bureaus, offices or agencies which are authorized by law to be constituted into a Revolving Fund shall be separately recorded and deposited in an authorized government depository bank and may be made available for operational expenses of the said activity of the agency concerned, subject to the conditions prescribed under the special provision of the agency concerned, if any, and the rules and regulations as may be prescribed by the Permanent Committee created under Section 45, Chapter 5, Book VI of E.O. No. 292. The Revolving Fund shall be considered self-perpetuating and self-liquidating and all obligations or expenditures incurred by virtue of said business-type activities shall be charged against the Revolving Fund: PROVIDED, That no amount of the Revolving Funds authorized in this Act shall be used for the payment of discretionary and representation expenses. The agency concerned shall submit to the Department of Budget and Management (DBM), copy furnished the House Committee on Appropriations and the Senate Committee on Finance, separate quarterly reports of income and of expenditure from this Fund. In case of failure to comply with said requirement, no withdrawal in the subsequent quarter shall be allowed in audit except upon certification of the DBM that said report was submitted. Sec. 5. Trust Receipts. Receipts from non-tax sources authorized by law for specific purposes which are collected/received by a government office or agency acting as a trustee, agent or administrator, or which have been received as guaranty for the fulfillment of an obligation, and all other collections classified by law or regulations as trust receipts except those filed to guarantee the re-exportation of temporary importations shall be treated as trust liability of the agency concerned and deposited with the National Treasury in accordance with E.O. No. 338, series of 1996 and pertinent guidelines, subject to the conditions prescribed under the Special Provisions of the agency concerned, if any, and to the rules and regulations as determined by the Permanent Committee created under Section 45, Chapter 5, Book VI of E.O. No. 292. Disbursement out of such funds shall be made in accordance with the purpose for which the fund is created and subject to accounting and auditing regulations. (GENERAL OBSERVATION – President’s Veto Message, January 21, 2002, page1332, R.A. No. 9162) Sec. 6. Receipts Arising from Build-Operate-Transfer Transactions and Its Variant Schemes. Notwithstanding the provision of Section 5, General Provisions of this Act, receipts, such as toll fees, charges and other revenues arising from public sector projects implemented through build-operatetransfer arrangement and other variants pursuant to R.A. No. 6957, as amended by R.A. No. 7718, collected by an office or agency of the National Government but which shall accrue to the proponent private companies or individuals in accordance with the contract entered into by said government office or agency and project proponent(s), shall be deposited with any authorized government depository bank and shall be utilized exclusively for the fulfillment of obligations as stipulated and prescribed under the contract: PROVIDED, That the government share out of the collections from said projects, if any, General Appropriations Act of 2002 Page 1 of 18 judicial deposits for the benefit of clients. The implementation of this Section shall be in accordance with the guidelines issued jointly by the Department of Finance (DOF). bureaus. bureaus. 11. No. unless otherwise provided by law or by Special Provisions in this Act. obsolete. Obsolete or Unnecessary Equipment. The proceeds from the sale of such equipment shall be deemed automatically appropriated for the purchase of new ones. Sec. 292.including interest earned thereon. the House Committee on Appropriations and the Senate Committee on Finance a report on the types of equipment sold and the utilization of the sales proceeds. or unnecessary equipment including cars. in coordination with the Commission on Audit (COA). 8. National Economic and Development Authority (NEDA) and Coordinating Council for Private Sector Participation. Sec. and all bonds and deposits required by law. at such standard rates as the DBM and the Civil Service Commission (CSC) shall deem appropriate. vans and the like pursuant to the provisions of Section 79 of P. offices or agencies may accept donations. That the Department of Agriculture through the National Agricultural and Fishery Council and in coordination with the DBM and the NEDA. such as bidder's bond. 7. 1445 and E. shall accrue to the General Fund and shall be remitted to and deposited with the National Treasury.D. FURTHER. Chapter 5. FURTHER. 292. Departments. Book VI of E. Departments. 292. withdrawable in accordance with accounting and auditing rules and regulations: PROVIDED. 309 dated March 8. That the purchase of such new cars and vans shall be subject to prior authority pursuant to pertinent laws. Sec. That in cases of donations from foreign governments. 1996. Sec. accounting and auditing rules and regulations: PROVIDED. That any interest accruing on deposits and any forfeited amounts on performance bonds and deposits shall be deposited with the National Treasury and shall accrue to the General Fund pursuant to Section 44. bureaus. subject to a Special Budget pursuant to Section 35. No. Book VI of E. That any excess therefrom shall be remitted to the National Treasury and shall accrue to the General Fund pursuant to Section 44. 292: PROVIDED. Seminar and Conference Fees. cash under litigation deposited in courts or quasi-judicial bodies and other refundable and judicial bonds. domestic or foreign. guaranty bonds. That upon the conclusion of the seminar or conference. No. Book VI of E. FURTHER. 9. Performance Bonds and Deposits. acceptance thereof shall be subject to the prior clearance and approval of the President of the Philippines upon recommendation of the Secretary of the Department of Foreign Affairs: PROVIDED. rules and regulations to be posted to ensure the faithful performance of an activity or undertaking. Sale of Products. accounting and auditing rules and regulations: PROVIDED. The proceeds derived from such seminars or conferences may be made available for the conduct of seminars and conferences and for defraying the cost of training facilities. 10. This provision shall apply to bonds posted in cash. bequests or gifts.O. No. for purposes relevant to their functions: PROVIDED. subject to pertinent budget. industrial or other projects. Donations. that the agency concerned shall submit to the DBM. offices or agencies are hereby authorized to sell non-serviceable.O. bureaus. from various sources.O. contributions. Upon faithful performance of the undertaking or termination of the obligation for which the bond or deposit was required. and for the repair or rehabilitation of existing vital equipment. bail bonds. No. grants. subject to pertinent budget. DBM. Chapter 5. Departments.O.O. offices or agencies are hereby authorized to sell products out of their agricultural. 12. in cash or in kind. Departments. Departments. That the office concerned shall submit to the DBM a report of the proceeds from the subject sale and of the expenses incurred: PROVIDED. No. the office authorized to conduct the same shall submit to the DBM a report of the fees collected and of the expenses incurred: PROVIDED. Chapter 5.O. Chapter 5. FURTHER. Performance bonds and deposits filed or posted by private persons or entities with agencies of the government shall be deposited with the National Treasury as trust liabilities under the name of the agency concerned. Sec. offices or agencies are hereby authorized to sell their official publications. Book VI of E. No. any amount due shall be returned to the filing party by the office or agency concerned. Book VI of E. The proceeds derived therefrom shall be deposited with the National Treasury and shall accrue to the General Fund. pursuant to Section 44. Sale of Non-Serviceable. That any excess therefrom shall be deposited with the National Treasury and shall accrue to the General Fund pursuant to Section 44. Sec. Chapter 5. is hereby authorized to determine the utilization of the RP-Japan Increased General Appropriations Act of 2002 Page 2 of 18 . bureaus. Sale of Official Publications. 292. offices or agencies which conduct training programs in relation to their mandated functions are authorized to collect seminar and conference fees from government and private agency participants. The proceeds derived from such sale may be made available to defray the cost of printing such official publications. rules and regulations: PROVIDED. That the amounts pertaining to such taxes and duties covered by this Section shall be considered as revenue and expenditure of the government. Chapter 7. 292 and such limitations as may be provided by law: PROVIDED. 292. In addition. 13. tax expenditure subsidy to the following entities shall likewise be deemed automatically appropriated: (a) Bureau of the Treasury for Documentary Stamp Taxes on domestic securities issued. That other government-owned and/or controlled corporations (GOCCs) and other government agencies not listed in subsections (a) to (f) hereof may qualify for tax expenditure subsidy as determined by the Development Budget Coordinating Committee (DBCC): PROVIDED. Department of National Defense (DND) and Philippine National Police (PNP) importations of military hardwares. submit to the Congress of the Philippines a report of its decisions on applications for loans to be contracted or guaranteed by the government or government-owned and/or controlled corporations which have the effect of increasing the foreign debt: PROVIDED. (c) Light Rail Transit Authority (LRTA) Line 1 Capacity Expansion Phase 2 and Metro Manila Strategic Mass Rail Transit Development (Line 2). That the tax expenditure subsidy of each GOCC shall be subject to approval of the Fiscal Incentives Review Board (FIRB) in accordance with Executive Order No. as amended: PROVIDED. (e) PHIVIDEC Industrial Authority (PIA) for the Mindanao Container Terminal Project on importations of materials and equipment for the project. The agency concerned shall submit to the DBM. and to the COA a quarterly report of all donations whether in cash or in kind. 8435. (d) National Food Authority (NFA) for the importation of rice and corn as recommended by the NFA Council and approved by the President of the Philippines. FINALLY. arms and equipment. 880 and Section 17. Such donations. No. except upon concurrence of the Secretary of DBM with respect to peso requirements and implications on expenditure ceilings and prior approval of the President of the Philippines. 14. within thirty (30) days from the end of every quarter of the calendar year. and (f) Department of Transportation and Communications (DOTC) for the Metro Rail Transit Line 3 System. 292 and to appropriate criminal action under existing penal laws. incurred starting FY 1997 in accordance with the provisions of the Build-Lease-Transfer Agreement executed thereon.Food Production Program Grant for agriculture and fishery projects in accordance with the objectives of R. bureaus. shall in no case enter into foreign or domestic loan agreements. s. Sec. with the prior concurrence of the Monetary Board. and the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES).” Receipts from donations shall be accounted for in the books of the recipient government agency in accordance with pertinent accounting and auditing rules and regulations. the Senate Committee on Finance. whether in cash or in kind. Book VI of E. That in negotiating for “untied loans” to finance foreign-assisted projects. No.O. otherwise known as the “Agriculture and Fisheries Modernization Act of 1997. shall be deemed automatically appropriated for purposes specified by the donor. Chapter 5. munitions. That the Monetary Board shall. In case of violation of this Section. Sec. FURTHERMORE. Loan Agreements. including value-added taxes on importation payable by national government agencies to the National Government arising from foreign donations. of 1986.A. softwares. Book VI of E. FURTHER. National internal revenue taxes and import duties. incurred for the period starting in FY 1997. Book VI of E. No. Departments. the House Committee on Appropriations.O. including government-owned and/or controlled corporations. government loan negotiators shall enter only into contracts/agreements which shall provide equal General Appropriations Act of 2002 Page 3 of 18 . offices or agencies. in case of calamities or fortuitous event or shortfall in production. No. and a quarterly report of expenditures or disbursements of the amount released. grants and loans are deemed automatically appropriated. whether in cash or in kind. FURTHER. subject to LOI No. Chapter 5 and Section 80. 93.O. The receipts from cash donations and proceeds from sale of donated commodities shall be remitted to the National Treasury and recorded as a Special Account in the General Fund and shall be available to the implementing agency concerned through a Special Budget pursuant to Section 35. PROVIDED. (b) Specialty Hospitals. That the DBCC shall determine the overall level of tax expenditure subsidy for GOCCs and national government agencies: PROVIDED. the erring officials and employees shall be subject to disciplinary action under the provisions of Sections 43. National Internal Revenue Taxes and Import Duties. and (b) those authorized by the President. and e. (GENERAL OBSERVATION – President’s Veto Message. Speaker of the House of Representatives. The implementation of this section shall be in accordance with the rules and regulations issued by the DBM. telephone and other communication services. That any savings generated from these items may be realigned only in the last quarter. except official vehicles assigned to the President. the budgetary implications of foreign-assisted projects shall be explicitly considered by the Secretary of DBM and the office or agency concerned at the time of project design and financing negotiations. all government vehicles of any type shall be made available to meet the emergency and utilized to transport for free the commuters on a round-the-clock basis. parts. repair and maintenance to any government vehicle not properly identified as a government vehicle and does not carry its official government plate number. To be invested in non-government securities. R. retirement gratuity and terminal leave requirements shall be disbursed solely for such items of expenditures: PROVIDED. (d) operating and other expenditures which shall be ultimately required for general fund support when the project is implemented. The provisions of this section shall also apply to government-owned and/or controlled corporations. 15. motorized bancas and those used for mass transport when necessary in the interest of the public service. the Speaker of the House of Representatives. page 1332. Vice-President. That no official or employee. d. except in the case of training seminar or conference abroad when the officials and other personnel of the foreign mission cannot effectively represent the country therein and travels necessitated by international commitments: PROVIDED. For this purpose. No government funds shall be utilized for the following purposes: a. Restrictions on the Use of Government Funds. b. No. General Appropriations Act of 2002 Page 4 of 18 . illumination and power services. in coordination with the COA. 2002. 16. Chief Justice of the Supreme Court and Chairmen of the Constitutional Commissions and those used by personnel performing intelligence and national security functions: PROVIDED. oil and lubricants as well as for water. Senate President. conference or attend to international commitments when they are due to retire within one year after the said foreign travel. January 21. except those specifically authorized by law. The amounts released. For purposes of this Section. the Senate President. particularly for. FURTHERMORE. road construction equipment. except: (a) medical ambulances. welgang bayan. To pay honoraria. including uniformed personnel of the Department of the Interior and Local Government (DILG) and Department of National Defense (DND) will be sent to foreign training.opportunities to both the Filipino and foreign contractors in the bidding. Sec. c. typhoons and other emergencies. 9162) EXPENDITURES Sec. money market placements and similar investments or deposited in private banking institutions. Mandatory Expenditures. for: (a) payment of principal and interest. other utility vehicles. the term “untied loans” shall be construed to mean “program loans” which are not negotiated or entered into to finance specific foreign-assisted projects. upon authority of the department or agency head and the Secretary of DBM. To purchase motor vehicles. and (e) peso requirements needed as counterpart. (c) infrastructure and support facilities needed to be directly financed by government. petroleum. military and police patrol vehicles. but not limited to. (b) peso component of capital costs and project preparation. or the Chief Justice of the Supreme Court. That loan agreements shall not be signed by agencies of the national government unless the full amount of the loan is covered by a Forward Obligational Authority issued by the Secretary of DBM. To defray foreign travel expenses of any government official or employee. To provide fuel. floods. such as that occasioned by street demonstrations. rent. implementation and execution of the project or projects: PROVIDED. That in case of transport crisis. The project study shall specify the cash flow requirements of the project among others. motorcycles. allowances or other forms of compensation to any government official or employee.A. as amended) as certified by the Department of Trade and Industry. upon the joint recommendation of the Secretary concerned and the Chairman of the COA. Domestic Purchases and Foreign Importations.A. No. Purchase of Supplies. 20. 292 and to appropriate criminal action under existing penal laws. Authority to Identify Funds for Mandatory Expenditures. funds for the purpose shall be indicated in the approval of their Corporate Operating Budgets. in a monthly amount not exceeding four percent (4%) of the annual agency expenditure program for supplies and materials out of the appropriations allotted for maintenance and other operating expenses of the agency concerned. subject to pertinent rules and regulations issued by competent authority: PROVIDED. Unless otherwise provided in this Act. All departments. including foreign-assisted projects whose covering loan agreement expressly allow or which does not prohibit the same: PROVIDED. materials and spare parts of motor transport equipment that are urgently needed for the repair of ambulances. Book VI of E. Unless otherwise approved by the President of the Philippines. specifying maximum quantities of individual items. or of an impending shortage in the items concerned. or danger to. bureaus offices or agencies shall submit to the President of the Senate. bureaus. bureaus. 17. Sec. The stock on hand of supplies. or are to be used in connection with a project or activity which cannot be delayed without causing detriment to the public service. Out of the agency appropriations authorized in this Act. Speaker of the House of Representatives and the Chairman of the COA. shall be released only upon approval of the President of the Philippines: PROVIDED. No. supplies and materials and other products and services authorized in this Act shall be used only for the purchase of equipment. Only amounts identified as confidential and intelligence funds in this Act as specified in Object Code 19. That at least eighty percent (80%) of intelligence and confidential funds shall be used for field operations. Intelligence and confidential funds provided for in the budgets of departments. The implementation of this Section shall be subject to the guidelines issued by the DBM in coordination with the DOF and the COA. In the case of government-owned and/or controlled corporations without budgetary support from the National Government. or requirement of a national emergency. Sec. No amount appropriated in this Act shall be released or disbursed for confidential and intelligence activities unless specifically identified and authorized as such as intelligence or confidential fund in this Act. departments. Intelligence and Confidential Funds. vessels and aircrafts or to meet an emergency which may involve the loss of. 19. including amounts from savings authorized by Special Provisions to be used for intelligence and counter-intelligence activities. Chapter 5 and Section 80. That heads of departments. parts. except as may be authorized by the President of the Philippines upon the joint recommendation of the DBM and the COA. the DBM may identify in the fund release documents the amounts due all government service agencies and government service corporations to cover prior years’ mandatory expenditures as certified by the COA. Sec. can be subject to closed accounting. supplies and materials and other products and services locally available. Emergency Purchases. Materials and Equipment Spare Parts for Stock. these stocks shall not exceed one year's need. 18. Sec. priority shall be given to the purchase of locally-produced and manufactured materials in all projects undertaken either by administration or by contract. General Appropriations Act of 2002 Page 5 of 18 . Sec. That importation may be made when: (a) none of the desired quality or standard is available in the market or when the price of the local product or service is more than fifteen percent (15%) of that of a similar product offered by an enterprise other than a domestic entity pursuant to Section 4 of the Flag Law (C. For this purpose. offices or agencies of the national government. 138.O. life and/or property. 21. in the utilization of the amounts herein appropriated for infrastructure projects of the various departments and agencies. offices or agencies and other instrumentalities of the government may approve the build-up of stocks on hand of critical supplies and materials as defined or specified by the DBM in anticipation of cost increases. bureaus. and shall subject the erring officials and employees to disciplinary action under the provisions of Section 43. motor vehicles. offices or agencies of the National Government are authorized to make emergency purchases of supplies. All appropriations for the procurement of equipment. medicines and drugs. Chapter 7. a quarterly report on the accomplishments in the use of intelligence and confidential funds copy furnished the Senate Committee on Finance and House Committee on Appropriations. accessories. materials and equipment spare parts to be acquired through ordinary purchase out of appropriations herein provided shall at no time exceed the normal three month requirement.The use of funds in violation of this Section shall be null and void. e. Cultural and Athletic Activities. Sec. b. library books and materials. b. office or agency.200. and f. P180. membership in national professional organizations duly accredited by the Professional Regulations Commission. No. official entertainment. R. d. 2002. FURTHER.A. General Appropriations Act of 2002 Page 6 of 18 . PROVIDED. membership in the Integrated Bar of the Philippines. and Shari’a Circuit Court Judge.000 for each Department Secretary. 22. office equipment and supplies. other similar expenses not supported by the regular budget allocation. membership in government associations.000 for each of the offices under the above named officials are herein authorized. bureau. g. subject to the requirements of LOI No. accounting and auditing laws. miscellaneous expenses not exceeding P50. That purchases under foreign military sales agreements. subscription to professional technical journals and informative magazines. public relations. an amount not exceeding One Thousand Two Hundred Pesos (P1. d. For the purpose of this Section. Municipal Circuit Trial Court Judge. h. 9162) Sec. c.000 for each Municipal Trial Court Judge.00) may be used for the purchase of costume or uniform for each participant and other related expenses in the conduct of cultural and athletic activities. In addition. but shall not be limited to. (CONDITIONAL IMPLEMENTATION – President’s Veto Message. c. heavy equipment imports for infrastructure projects and other importations of agencies which are financed by foreign borrowings may be made. extraordinary and miscellaneous expenses shall include. P65. Out of the appropriations authorized in this Act for maintenance and other operating expenses for each department. athletic and cultural activities.000 for each Bureau Regional Director. e. and (c) no locally-produced and manufactured material is available as certified by the Department of Trade and Industry. educational. Extraordinary and Miscellaneous Expenses. 23. 880 and to pertinent budgeting.000 for each Department Assistant Secretary. seminars and conferences. rules and regulations. expenses incurred for: a. and k. Appropriations herein authorized may be used for extraordinary expenses of the following officials and those of equivalent rank as may be authorized by the DBM not exceeding: a. f. P35. P13.000 for each Department Undersecretary. contributions to civic or charitable institutions. page 1328. January 21. P30. j. meetings.(b) the quality of the locally-produced and manufactured material is sub-standard compared with its imported counterpart as determined by the Department of Science and Technology.000 for each head of bureau or organization of equal rank to a bureau and for each Department Regional Director. i. P18. in implementation of their plans. bureaus. Information Outlay. agencies. programs and projects. Sec. provide skills training and employment for the out-of-school youth as well as create summer jobs for students. FURTHER. That research efforts shall be geared towards achieving a wider commercialization of new discoveries. 26. That the said government agencies shall submit an annual report to the House Committee on Appropriations and the Senate Committee on Finance. The report shall include the list of recipient private entities. 1999-2004. and state universities and colleges shall set aside at least one percent (1%) of their total FY 2002 budget appropriations as cost of implementation thereof. bureaus. Science and Technology Research. The appropriations of departments. in accordance with R. for the implementation of GAD-related programs/projects/activities. accelerating technology transfer and integrating agricultural and fisheries plans and programs: PROVIDED. General Appropriations Act of 2002 Page 7 of 18 . technological and engineering sciences shall be released upon recommendation of the Department of Science and Technology and/or the Department of Agriculture in pursuance of the Agriculture and Fisheries Modernization Act of 1997. 28. Sec. designed to empower women and address gender issues. or agencies for research and development (R & D) in the natural. government-owned and/or controlled corporations and local government units shall. Sec. indicating the accomplishments and amounts utilized to implement programs/projects/activities addressing gender issues and women empowerment. with the primary objective of coordinating research agenda and optimizing the use of research funds and encouraging private sector participation in R & D activities: PROVIDED. commissions.No portion of the amounts herein authorized shall be used for salaries. the DBM. offices. bureaus. the DBM and NCRFW. Programs/Projects Related to Senior Citizens and the Disabled. government-owned and/or controlled corporations and other instrumentalities. Programs/Projects Related to Gender and Development. offices or agencies shall review and formulate their human resource development and training programs to make the same responsive to the organizational needs and manpower requirements of agencies and the need to train personnel in appropriate skills and attitudes. These expenditures shall be subject to accounting and auditing rules and regulations. The evaluation of agencies’ utilization of the GAD budget shall be performance-based. In case of deficiency. all departments including their attached agencies. No. The appropriations pertaining to information activities of various departments. In support of the Philippine Plan of Action for Older Persons. copies of which shall be furnished the House Committee on Appropriations and the Senate Committee on Finance. additional sets of guidelines as may be deemed necessary. allowances. 29. bureaus. offices. In consultation with the National Commission on the Role of Filipino Women (NCRFW). in coordination with the Department of Social Welfare and Development. shall be formulated. state universities and colleges. 24. bureaus. wages. which shall in no case exceed two (2) months duration. 25. offices or agencies shall be released upon presentation of an appropriate program of activities prepared by their respective Heads.A. and the NCRFW. Human Resources Development and Training Programs. Projects Related to Youth. offices. Such training programs shall be consistent with the rules and regulations issued by the Training Coordination Committee created under LOI No. The cost of implementation of the GAD Plan shall be at least five percent (5%) of the agency’s total FY 2002 appropriations. all executive departments. 99-4 issued by the NEDA. the requirements for the purpose may be charged against savings of the agency. Departments. 7192 and the Philippine Plan for Gender-Responsive Development (PPGD). status of research being undertaken. Sec. bureaus. The NEDA and the DBM. In addition to Joint Circular No. and the amount released and utilized for each project and the commercialization activities and technology transfer made. agencies. intelligence and confidential expenses. 1995-2025. agricultural. Sec. Sec. They shall likewise submit annual reports to Congress. which shall review and evaluate training activities. in coordination with the National Youth Commission shall formulate a set of guidelines for the implementation of projects related to youth. All concerned government entities shall submit their GAD Plan to the NCRFW for review. shall formulate a GAD Plan. 27. All departments. offices. 754. All authorized supplemental or additional compensation. commutation of vacation and sick leaves. the government shares in the compulsory contributions mandated by R.000. all kinds of allowances. emoluments or other benefits accruing to any government employee chargeable against the personal services appropriation authorized in this Act may be allowed for the payment of obligations due the GSIS. 626. Personnel Benefits Fund. the Bureau of Internal Revenue and those specifically allowed by existing laws: PROVIDED. fringe benefits and other personal services costs of officials and employees whose salaries are drawn from special accounts or special funds. That such deductions shall not reduce the employee’s monthly net take home pay to an amount lower than Three Thousand Pesos (P3. retirement and life insurance premiums. whether commutable or reimbursable. offices and agencies are authorized to use their appropriation to implement projects designed to address their disaster prevention. scholarship and educational benefits. after all authorized deductions. PHIC and other Government Financial Institutions. Funding of Personnel Benefits. Notwithstanding the issuance of the multi-year obligational authority. including the representatives and support personnel of auditing units assigned to serve other offices or agencies.A. bureaus. In the implementation of multi-year projects. Contracting Multi-Year Projects. All departments. Human and Ecological Security Concerns. the provisions of Letter of Instructions No. as amended. 31.00). R. offices and agencies to collect any form of service fees for the General Appropriations Act of 2002 Page 8 of 18 . Sec. bureaus. No. shall be remitted directly by departments. shall provide architectural facilities or structural features and designs as shall reasonably enhance the mobility. such as salary increases. Mitigation and Preparedness Projects. 35. non-infra and civil works projects of the government as well as office buildings. All government facilities. 34.A. offices and agencies shall set aside an amount out of their FY 2002 appropriations to be used for projects designed to address human and ecological security concerns. no agency shall enter into a multi-year contract without a multi-year Obligational Authority issued by the DBM for the purpose. 36. No. 30. including the payment of retirement gratuities. fringe benefits and other personal services costs from the appropriations of their parent agencies. streets and highways. shall be paid their salaries. mitigation and preparedness concerns pursuant to P. Geophysical and Astronomical Services Administration and Philippine Institute of Volcanology and Seismology whose basic concerns are disaster prevention. emoluments. safety and welfare of persons with disabilities pursuant to B. shall similarly be charged against the corresponding fund from which their basic salaries are drawn and in no case shall such personnel benefits costs be charged against the General Fund of the National Government. and other personnel benefits and privileges authorized by law.A. compensation insurance premiums. incentive and service fees. as the case may be. except when authorized by law. No. Disability-Related Projects/Facilities for the Handicapped. P. Sec. No. No. 6111. including local government units. shall in no case exceed the amount programmed for implementation during said calendar year. bureaus.Sec. December 31. step increment for length of service. to the Government Service Insurance System (GSIS). 1566. 2001 whichever comes later. or the Philippine Health Insurance Corporation (PHIC). separation pay and terminal leave benefits. HDMF. in cash or in kind. Except for the Office of Civil Defense.D. It shall be unlawful for departments. the HDMF. Sec. FURTHER. and in no case shall such be charged against the appropriations of the agencies where they are assigned or detailed.D. and R. training and seminar expenses. This Section shall be implemented in accordance with the guidelines issued by the National Disaster Coordinating Council in coordination with the DBM. Disaster Prevention.P. Home Development Mutual Fund (HDMF) contributions. 7277. Sec. That the agencies and offices with existing deductions arrangements with private lenders and cooperatives shall continue such deductions until the credits/loans outstanding or the premiums of the policies in force at the date of passage of this Act or. shall have been fully paid: PROVIDED. the obligation to be incurred in any given calendar year. Officials and employees on detail with other offices. PERSONNEL AMELIORATION Sec. allowances and the foregoing supplemental compensation. This Section shall be implemented in accordance with the guidelines jointly issued by the Department of Environment and Natural Resources. including infra. The personnel benefits costs of government officials and employees shall be charged against the funds from which their compensations are paid. Authorized Deductions. bureaus. Philippine Atmospheric. all concerned departments. health insurance premiums. Blg. 8291. offices and agencies. 33. 344 and R. Deductions from salaries. DILG and the Commission on Population in coordination with the DBM. mitigation and preparedness projects. 32. hospitalization and medical benefits. Sec. No. 7875. 1102 notwithstanding.A. At P2. Unless otherwise provided by law. The Speaker of the House of Representatives. January 21. g. Undersecretaries. 8441 shall be granted to all national government officials and employees whether under regular. chargeable to the allotment for travelling expenses. No. 2002. certified by the head of the agency concerned as absolutely necessary in the performance of an assignment and supported by receipts. The Secretaries. d. temporary. b. At P7. At P4. The transportation allowance herein authorized shall not be granted to officials who use government motor transportation. 9162) Sec. Official Vehicles and Transport. At P5.A. Department Assistant Regional Directors.000. which exceed the rates authorized under this Section. That one half (1/2) of the amount of said year-end bonus and cash gift may be paid not earlier than may 1 but not later than May 31 of each year. Nos. e. No. c.A. 248 and 248-a. The appropriations herein provided for the year-end bonus and cash gift equivalent to one (1) month basic salary and additional cash gift of Five Thousand Pesos (P5. on full-time or part-time basis. d. both series of 1995. Year-End Bonus and Cash Gift. subject to the provisions of E.O.payment of any obligation through authorized deductions. At P2. General Appropriations Act of 2002 Page 9 of 18 .950 for Assistant Bureau Regional Directors. At P3.575 for Assistant Bureau Directors. identified as such in the Personal Services Itemization and Plantilla of Personnel. Assistant secretaries and officials of equivalent rank. and g. 38. (GENERAL OBSERVATION – President’s Veto Message. 6686 as amended by R.700 for Department Undersecretaries. Representation and Transportation Allowances. The Vice-President.875 for Department Assistant Secretaries. The Presiding Justice of the Court of Appeals. Sec. 37. b. which shall apply to each type of allowance: a. The President of the Senate. subject to the implementing rules and regulations issued by the DBM. At P4.675 for Chief of Divisions. The Chief Justice and Associate Justices of the Supreme Court. casual or contractual status. 40. Government motor transportation may be used by the following officials with costs chargeable to the appropriations authorized for their respective offices: a. c. Previous administrative authorizations not consistent with the rates and conditions herein specified shall no longer be valid and payment shall not be allowed. f. Bureau Regional Directors. R. e. page 1332. Travelling Expenses. Officials and employees of the government may be allowed full payment of claims for reimbursement of travelling and related expenses incurred in the course of official travel. no amount appropriated in this Act shall be used to pay for representation and/or transportation allowances. The President of the Philippines. No.A. Sec.00) provided under R. The following officials and those of equivalent rank as may be determined by the DBM while in the actual performance of their respective functions are hereby granted monthly commutable representation and transportation allowances payable from the programmed appropriations provided for their respective offices not exceeding the rates indicated below. and Department Service Chiefs. 39. Sec.150 for Bureau Directors and Department Regional Directors. f.350 for Department Secretaries. who have rendered at least a total of four (4) months of service including leaves of absence with pay in the government from January 1 to October 31 of each year and who are still in the service as of October 31 of the same year: PROVIDED. whether commutable or reimbursable. 46.00) each per annum which may be given in cash or in kind.00) for each appearance. limited to the year when their services are reasonably required. Directors or their equivalent who are transferred from one station to another by virtue of agency policies on reshuffling or rotation and do not own rooms. 45.h. Quarters Allowance. Lawyer-personnel. offices or agencies. j. unless otherwise specifically provided by law: provided. Those who may be specifically authorized by the President of the Philippines. Special Counsel Allowance. bureau. Sec. The appropriations herein provided for each department. In case of deficiency. and k. Employment of Contractual Personnel. by virtue of their positions. Bureau Directors and Department Regional Directors. shall be charged the corresponding cost of rentals therefor subject to the guidelines issued by the DBM for the purpose. experts and specialists hired as consultants and who are paid professional consultancy fees for services rendered shall not be entitled to such honoraria. offices and elsewhere. bureaus. Except as may be authorized by law. with respect to the House of Representatives. office or agency may be used for uniform and clothing allowance of employees at not more than Four Thousand Pesos (P4. and the Chief Justice. Honoraria. offices or agencies. the implementation of this section shall be in accordance with the guidelines issued by the DBM. bureaus. houses or units therein shall be provided free quarters within their office premises. government officials and employees who. chargeable to savings in the appropriations of their respective offices. 43. shall forfeit their entitlement to any quarters allowance. i. Ministers Plenipotentiary and Consuls in charge of Consulates. Sec. but not exceeding Three Thousand Pesos (P3. Where there is not enough space to be used as quarters. office or agency. at such rates as the DBM may authorize. bureau. the agency concerned may rent buildings or rooms which shall serve as quarters for the officials and employees concerned. may hire contractual personnel as part of the organization to perform regular agency functions and specific vital activities or services which cannot be provided by the regular or permanent staff of the hiring agency. Those officials and employees who enjoy free quarters in government-owned buildings but are not entitled to quarters privileges.000. schools. The Heads of Constitutional Commissions. the President of the Senate with respect to the Senate. The Personnel Economic Relief Allowance (PERA) in the amount of Five Hundred Pesos (P500. or in the absence of appropriation for the purpose. furnished quarters. 41. are authorized to use their respective appropriations for payment of honoraria for services rendered by agency personnel performing activities or discharging duties in addition to or over and above their regular function. and the Regional Legislative Assembly of the Autonomous Region in Muslim Mindanao. including those designated to assume the duties of a legal officer and those deputized by the Office of the Solicitor General in the legal staff of departments.00) per month. Ambassadors. For those who desire more extensive quarters other than those provided by their agencies or by rental in the authorized amount appropriated for the purpose. Sec. offices or agencies of the National Government to appear in Court as special counsel in collaboration with the Solicitor General or Prosecutors concerned are hereby authorized an allowance of Five Hundred Pesos (P500. bureaus. or are charged only nominal rate for the use of government-owned buildings such as dormitories or living quarters in state colleges and universities.000. when authorized in their respective appropriations provided in this Act.00) per month shall be granted to the General Appropriations Act of 2002 Page 10 of 18 . Entitlement to Personnel Economic Relief Allowance. including their Committees. Sec. researchers. The contractual personnel employed pursuant to this Section shall be considered as an employee of the hiring agency. the Vice-Chief of Staff and the Commanding Generals of the major services of the Armed Forces of the Philippines. 42. Heads of departments. Departments. Sec. 44. the Speaker. The Chief of Staff. That researchers. such preferred quarters may be secured provided that the difference between the rental cost and the amount authorized therefor shall be paid by the officials and employees concerned. the requirements may be charged against savings in the appropriations of each department. Sec. Uniform and Clothing Allowance. in their respective stations abroad. experts and specialists as well as military personnel who render security service to the Congress of the Philippines. are provided free quarters. Bureau Regional Directors. in the case of the Judiciary. Personal Liability of Officials for Payment of Unauthorized Personal Services Cost. but not exceeding Five Hundred Pesos (p500. no amount appropriated in this Act shall be used for payment of retirement gratuity under the provisions of Section 12(c) of C. Modification of Expenditure Components. allowances and overtime pay. 49. 53 dated May 17. or salary. No official or employee of the National Government. chargeable against the appropriations provided for the purpose under this Act: PROVIDED. no change or modification shall be made in the expenditure items authorized in this Act and other General Appropriations Act of 2002 Page 11 of 18 . offices or agencies. That personnel of GOCCs or LGUs shall be paid from their respective corporate or local funds.00) per month authorized under A. 186. Book VI of E. 1616 and terminal leave benefits of retiring officials and employees which include in the computation thereof additional compensation as defined under retirement laws such as bonuses. 48. Use of Appropriations for Retirement Gratuity and Terminal Leave. including those of GOCCs. That employees of government-owned and/or controlled corporations (GOCCs) shall be paid from their respective corporate fund: PROVIDED. to casual and contractual employees and to uniformed personnel of the Armed Forces of the Philippines (AFP). No.A. HOWEVER. The erring officials and employees as determined by the COA and other competent authority shall be subject to disciplinary action under the provisions of Section 43. office or agency shall be used to augment deficient funds in other departments.following. Additional Compensation of P500. No. Unauthorized Pre-Retirement Promotions and Salary Increases. 1993 shall be granted to all government personnel whether regular personnel or full-time casual. Sec. FURTHER.O. The additional compensation in the amount of Five Hundred Pesos (P500. Chapter 7. That appointive local government employees shall be paid from their respective internal revenue allotment and local funds: PROVIDED. bureau. 292 and to appropriate criminal action under existing penal laws.00 Per Month. per diems. Savings generated in one department. as amended by R. The implementation of this Section shall be in accordance with the rules and regulations jointly issued by the CSC and the DBM. Sec. Sec. The payment of any unauthorized personal services benefit in violation of this Section is null and void. No portion of the appropriations provided in this Act shall be used for automatic promotions or for salary increases and adjustments granted to retiring officials and employees. In no case shall payment be made except on the basis of creditable services as computed by the GSIS in accordance with the provisions of existing retirement laws. except those exempted therefrom: all appointive national and local government employees occupying itemized plantilla positions. those on temporary status or contractual personnel whose employments are in the nature of a regular employee. The implementation of this section shall be in accordance with the rules and regulations jointly issued by the CSC and the DBM. Unless specifically authorized in this Act. DILG and the National Mapping and Resource Information Authority (NAMRIA): PROVIDED.A. bureaus. 5th Class and 6th Class 100% 90% 80% Municipalities 90% 80% 70% Sec. No. 51. shall be paid any unauthorized personal services benefits charged against the appropriations in this Act.00) per month. shall be allowed to do so at a rate uniformly applied to all their respective personnel entitled to this benefit: Provinces/Cities Special Cities and 1st Class 2nd Class and 3rd Class 4th Class. Appropriations authorized in this Act to cover retirement gratuity benefit claims shall be released directly to the offices and agencies concerned. pay or compensation given in addition to the base pay of the position or rank as fixed by law or regulation. that Local Government Units (LGUs) which can afford to pay higher than the rates authorized in the schedule below for their particular income class. 50. Chapter 5 and Section 80. other appropriations laws or income of the government. which are not authorized by law and duly formalized in an appropriate issuance by the DBM. 47.O. No. Unless otherwise authorized by law. CHANGES IN EXPENDITURE ITEMS Sec. Sec. Realignment/Relocation of Capital Outlays. the requirements shall be charged against savings in the appropriations authorized for each department. Priority in the Use of Savings. except intelligence and confidential fund as specified in object code 19. 54. may use existing appropriations to install an electronic “on-line” network to facilitate the open. 53. agencies and instrumentalities of the government. Use of Savings for the Implementation of the Magna Carta of Public Health Workers. project. Article VI of the 1987 Philippine Constitution. The rules and regulations to implement this Section shall be issued by the DBM. therefore. In the use of savings. 52. No. the Heads of Constitutional Commissions under Article IX of the 1987 Philippine Constitution. subject to the guidelines to be jointly prescribed by the Department of Health and the DBM. terminal leave benefit. Savings refer to portions or balances of any programmed appropriation in this Act free of any obligation or encumbrance still available after the completion or final discontinuance or abandonment of the work. activity or purpose for which the appropriation is authorized. replacement. duplication of projects. in order to minimize the implementation of ineffective programs and the undertaking of low priority projects and activities. the Speaker of the House of Representatives. Sec. Departments. Augmentation of Maintenance and Other Operating Expenses (MOOE) Items. purpose or object of expenditure be funded by augmentation from savings or by the use of appropriations authorized otherwise in this Act. offices. or arising from unpaid compensation and related costs pertaining to vacant positions and leaves of absence without pay. 55. shall not be realigned except to other foreign-assisted projects. Electronic Interconnection through the Internet and E-Commerce Application. agencies may augment an item of expenditure within MOOE. retirement gratuity. Fiscal Discipline Measures in Government Operations. shall a non-existent item. Use of Savings. and the Chairman of the Commission on Human Rights are hereby authorized to augment any item in this Act for their respective offices from savings in other items of their respective appropriations. office or agency concerned. rehabilitation and completion of various capital outlays may be realigned/relocated in cases of imbalanced allocation of projects within the district. 7305. Sec. All departments. bureaus. subject to the approval of the President. bureau. Sec. In no case. activity or purpose with an appropriation which upon implementation or subsequent evaluation of needed resources is determined to be deficient. 57. Sec. The amount appropriated in this Act for the implementation of foreign-assisted projects. including loan proceeds and local counterpart. Sec. The amount appropriated in this act for acquisition. The Judicial and Legislative branches of government may institute their own respective fiscal discipline measures. 60. including goccs. Realignment of Foreign-Assisted Projects. Book VI of E.A. the Ombudsman. offices and agencies including Local Government Units (LGUs) and Government-Owned and/or Controlled Corporations (GOCCs) are hereby encouraged to implement fiscal discipline measures and to review their respective expenditure programs approved pursuant to Section 34.appropriations laws unless in cases of augmentations from savings in appropriations as authorized under Section 25(5). the Chief Justice of the Supreme Court. year-end bonus and cash gift. overlapping of funding source and similar cases: PROVIDED. The President of the Philippines. bureaus. In case of deficiency in the funds needed to implement the Magna Carta of Public Health Workers pursuant to R. project. Meaning of Savings and Augmentation. Chapter 5. Sec. construction. old-age pension of veterans and other personnel benefits authorized by law and those expenditure items authorized in agency Special Provisions and in section 16 and in other sections of the General Provisions of this Act.O. activity. No. That such realignment/relocation of capital outlays shall be done only upon prior consultation with the representative of the legislative district concerned. 292. 56. speedy and efficient General Appropriations Act of 2002 Page 12 of 18 . priority shall be given to the augmentation of the amounts set aside for compensation. 59. the President of the Senate. Augmentation implies the existence in this Act of an item. 58. from savings in other items of MOOE without prior approval of the DBM. Sec. Sec. the E-Commerce Act. Article VII of the Constitution or there are clear economic indications of an impending occurrence of such condition. Prohibition Against Deduction/Retention of Allotment. 8792. the appropriations authorized in this Act for the Judiciary. retention or imposition of reserves.O. Unmanageable national government budget deficit as used in this Section shall be construed to mean that the actual national government budget deficit has exceeded the quarterly budget deficit targets consistent with the full-year target deficit of P130. offices and agencies shall give utmost priority in the utilization of their funds for basic services to all provinces and all cities with the poorest families as set forth in the National Anti-Poverty Program. The appropriations for attached agencies and subordinate offices authorized in this Act shall be sub-allotted and transmitted intact or in full to the offices or agencies concerned without any retention or deduction as reserves or overhead by their General Appropriations Act of 2002 Page 13 of 18 . bureaus. Sec. the Civil Service Commission. 65. 68. Sec. Direct Release of Funds to Regional Offices. Copies of fund releases to the said Regional Offices shall be furnished the House Committee on Appropriations and the Senate Committee on Finance. Any provision of law to the contrary notwithstanding. 67. Sec. No. s. except those covered by Special Provision No. 262. 63. FURTHER.electronic “on-line” transmission conveyance and use of electronic data messages or electronic documents consistent with R. Sec. as determined by the Development Budget Coordinating Committee and approved by the President. the DBM shall identify by region the expenditure programs of agencies in the national government budget and shall release funds intended for them in accordance with the approved regional distribution of expenditures specifying the region of destination. That a report of these releases and obligations shall be submitted to the Senate Committee on Finance and to the House Committee on Appropriations. projects and activities authorized in this Act. The appropriations to be made available for the ECommerce application may be used in the acquisition of computer equipment. including the Philippine Coast Guard on account of death or injury suffered in line of duty. Appropriations for capital outlays authorized in this Act shall be available for release and obligation for the purpose specified and under the same special provisions applicable thereto for a period extending to one fiscal year after the end of the year in which such items were appropriated: PROVIDED. Availability of Appropriations.O. Utmost Priority to Priority Provinces and Cities.0 billion as indicated in the FY 2002 Budget of Expenditures and Sources of Financing submitted by the President to Congress pursuant to Section 22. Appropriations of Agencies Vested with Fiscal Autonomy. all the funds appropriated for the purposes. 61. Accordingly. subject to the provisions of E. No. Unmanageable National Government Budget Deficit. All departments. Sec. peripherals and software. That such acquisition shall be consistent with the approved Information Systems Strategic Plan of the agency: PROVIDED. For this purpose. the NAMRIA and the DILG. Retention or reduction of appropriations authorized in this Act shall be effected only in cases where there is unmanageable national government budget deficit. appropriations authorized in this Act shall be impounded through deduction or retention. Sec. preferably on a lease basis whenever applicable and more cost efficient. The amounts appropriated for payment of death gratuity and disability benefits of uniformed personnel of the AFP. 64. and for additional upgrading of hardware components. goods and equipment. 62. 1 of the Unprogrammed Fund shall be regularly and automatically released in accordance with the established allotment period and system by the DBM without any deduction. Release of Funds for Payment of Death Gratuity and Disability Benefits. 2000. 2000: PROVIDED. programs.A. shall be paid to the legitimate beneficiaries at the earliest possible time but in no case later than thirty (30) days after submission of the required documentation. Congress of the Philippines. Funds allotted for regional offices but included in the budgets of their central offices or which are specifically allocated for the different regions shall automatically be released directly to said regional offices. Sec. the Office of the Ombudsman. pursuant to E. That the Electronic Procurement System (EPS) shall be used as the primary source of information on government procurement of common-used supplies. Prohibition Against Impoundment of Appropriations. s. No. RELEASE AND USE OF FUNDS Sec. retention or deferral of releases shall have been issued by the DBM in coordination with the House Committee on Appropriations and the Senate Committee on Finance. 66. the Commission on Human Rights. unless in accordance with the guidelines for the imposition and release of reserves and the rules and regulations for deduction. 322. No. the Commission on Audit and the Commission on Elections shall be automatically and regularly released. rehabilitation. 9162) Sec. Departments. 968. Disbursement of Funds. the amount involved shall be released and allocated back for the use by. January 21. That the certification of availability of funds sufficient to cover the cost of the contracted activities shall be contained in and made part of the contract duly signed by the Chief Accountant of the contracting agency. For this purpose. flood control. 292: PROVIDED. Before entering into contracts involving the expenditure of public funds. R. In cases where there is unmanageable deficit as defined under Section 63 of the General Provisions of this Act and upon consultation with the head of the department or agency concerned. Book VI of E. No contracts shall be entered into nor work undertaken without such certification of fund availability. no organizational units or changes in key positions in any department or agency shall be authorized in their respective organizational structures and staffing patterns and funded from appropriations provided by this Act.A. Any provision of law to the contrary notwithstanding. 70. betterment or improvement of roads and bridges. 2002. it is hereby declared a policy of the Government that no cash advances shall be granted until such time that the earlier cash advances availed of by the officials or employees concerned shall have been already liquidated pursuant to pertinent accounting and auditing rules and regulations as certified by the Head of Agency concerned and the COA Resident Auditor. waterworks/supply and government buildings and structures as well as for Internal Revenue Allotment and other financial support to local government units shall be made with at least ten (10) days prior written notice of the release to the Representative of the district concerned. 73. When changes in conditions during the year justify the use of the reserved appropriations which have been imposed pursuant to the provisions of this Act. repair and maintenance. Certification of Availability of Funds. January 21. Failure to comply with this Section shall be considered negligence in the performance of duty subject to appropriate administrative sanction. [Sec. Chapter 7. all departments. General Appropriations Act of 2002 Page 14 of 18 .] (DIRECT VETO – President’s Veto Message. offices or agencies. No. The COA shall ensure compliance with this provision to the extent that sub-allotments by agencies to their subordinate offices are in conformity with the release documents issued by the DBM. Release of funds for construction. (CONDITIONAL IMPLEMENTATION – President’s Veto Message. offices or agencies shall secure a certification of availability of funds for the purpose from the agency Chief Accountant. port works. Organizational and Staffing Pattern Changes. Unless otherwise provided by law or directed by the President of the Philippines. subject to Section 40. page 1328. All appropriated funds shall be disbursed only through the National Treasury and/or authorized servicing banks under the Modified Disbursement Scheme. Limitations on Cash Advance/Reportorial Requirements. 9162) Sec. bureaus. 2002. 69. 71. and upon the request of the department. No. ADMINISTRATIVE PROCEDURES Sec. Chapter 5 and Section 58. reserves against appropriations may be established to provide for contingencies and emergencies which may arise later in the fiscal year. No. bureaus. shall likewise first secure a certification of the availability of funds out of the agency’s appropriations to cover the full contract price or the contracted amount for such goods or services. 72.O. replacement. Notice of Release of Funds. Sec. completion. Sec. The establishment of appropriation reserves should not necessarily mean that such portion of the appropriation will not be made available for expenditure. as provided for by LOI No. 74. R.respective mother offices except as authorized herein. the Head of the Agency and the COA Resident Auditor shall be jointly responsible for the preparation and submission to the House Committee on Appropriations and Senate Committee on Finance of the Annual report of Cash Advances indicating the names of the recipients. Release and Use of Appropriation Reserves.A. the items of expenditures for which said cash advances were disbursed and the dates of liquidation as reflected in the Agency Books of Accounts. office or agency on whose appropriations the reserve was originally imposed. before entering into contracts for delivery of goods or services against future payment. page 1326. as well as GOCCs. For this purpose. shall be primarily responsible for the formulation/design of an integrated program and project monitoring and evaluation system. whether on part-time or full-time basis. Service contracts may be entered into by the agency for professional consultancy services. In the hiring of workers needed for the implementation of infrastructure projects as authorized in this Act. offices or agencies of the National Government. with other government agencies. The DBM. bureaus. R. No. For this purpose. it is hereby declared the policy of the government to “scale-down” expenditures on the acquisition and maintenance of computers and other information technology (IT) equipment as well as in the implementation of the computerization programs of government offices and agencies. That the appropriations authorized in this Act for purchase of computers intended for distribution to public schools and any other approved beneficiaries of IT equipment shall be exempted from the coverage of this Section. as amended. Sec. Commission on Audit. Service contracts may also be entered into by the agency for janitorial. shall instead be used for the lease-rental of said computers and IT equipment: PROVIDED. 6734. whenever practicable and cost-effective for the government. January 21. 77. page 1328. Section 2. 2002. which shall report program results of departments/agencies/GOCCs regularly and publicly. pursuant to a schedule prescribed by the Oversight Committee in accordance with its mandate under the provisions of R. all departments. all departments. the said agencies of the National Government shall continue their operations and the discharge of their respective functions. together with their personnel. Article V of R. Lease-Rental of Computers and Other Information Technology (IT) Equipment. properties and budgets shall be placed under the control and supervision of the Regional Government. (CONDITIONAL IMPLEMENTATION – President’s Veto Message. equipment. or for the acquisition of any other IT equipment. Within the context of the Medium-Term Expenditure Framework. Departments. bureaus. which may include contracts with individual consultants. Sec. 6734. including GOCCs shall conduct/implement a monitoring and evaluation system which includes data collection and reporting system. Funding of National Government Agencies in the Autonomous Region in Muslim Mindanao. subject to pertinent accounting and auditing rules and regulations. bureaus. Sec. 76. in coordination with other agencies concerned.A. That performance indicators used in the system shall be in accordance with the Organization Performance Indicator Framework wherein government agencies shall identify the specific outputs and outcomes to be produced by their programs and services which are aligned with strategic goals of the government and set indicators and corresponding targets therefor. in coordination with agencies concerned.A. General Appropriations Act of 2002 Page 15 of 18 . National government offices and agencies in the Autonomous Region of Muslim Mindanao which are not excluded under paragraph (9). 75. For this purpose. offices and agencies of the National Government. as amended. are hereby authorized to enter into service contracts. Service Contracts. Implementation of Infrastructure Projects. to monitor performance and improve the results of government policies and programs: PROVIDED. 79. 78. Such hiring creates no employer-employee relationship between the individual professional consultant and the agency. Performance Monitoring and Evaluation. offices and agencies with authorized appropriations in this Act for computerization programs. As integral part of the fiscal discipline measures mandated by Section 52 hereof.A. Prior to said transfer. purchase of computers. priority shall be given to the socially disadvantaged and economically inadequate inhabitants of the LGU where the project is located. security and other related services. Service contracts shall be entered into by the agency through public bidding or negotiated contracts. No. 9162) Sec. No.Sec. private firms or individuals and non-governmental organizations for services related or incidental to their respective functions and operations. shall issue the necessary guidelines governing professional consultancy services. an individual professional consultant is an expert in a field of special knowledge or training who is contracted to render particular outputs or services primarily advisory in nature requiring highly specialized or technical expertise which cannot be provided by the regular staff of the agency. The rules and regulations to implement this Section shall be issued by the Secretary of Budget and Management in consultation with the National Computer Center and the Chairman. the DBM. Sec. roads and bridges. Emergency and Contractual Personnel. 85.O. Submission of Semestral Report on Casual. bureau.O. No. health centers and health stations. and for Other Purposes”. Appropriating Funds for Public Works. 10 & 12 of E. That upon consultation with the concerned Members of Congress. survey. land use and zoning guidelines as prescribed by existing laws. Laws. Implementing Agency for Nationally Funded Projects. total disbursements. s. 9162) Sec. Sec. emergency and contractual personnel hired or employed chargeable against the agency lump-sum funds authorized in this Act and approved through a special budget pursuant to Section 35. and supplies. and as applicable. office or agency shall submit a quarterly financial and narrative accomplishment report to the House Committee on Appropriations and the Senate Committee on Finance. 182. as the case may be. 322. Construction projects funded from capital outlays authorized in this Act under the various departments. 6. No. 5. The financial report shall show the cumulative allotments.A. s. projects. agencies and instrumentalities of the government. No. 7160. Sec. petroleum. each department. No. (CONDITIONAL IMPLEMENTATION – President’s Veto Message. and the appropriate Committee Chairman of the House of Representatives. In addition. shall be implemented only in accordance with the appropriate standards and specifications for the planning. No. 9. 80. offices and agencies. water. entitled “Rationalizing Public Works Measures. Sec. Sections 2. including the construction of buildings for state universities and colleges.A. bureau. Chapter 5. and contractual personnel during the semester. except as otherwise provided in this Act. s. capital investment outlays. No. the House Committee on Appropriations and the Senate Committee on Finance. schools. copy furnished the DBM. Rules and Regulations. goods and equipment. office or agency shall submit to the House Committee on Appropriations and the Senate Committee on Finance a semestral report on the casual. shall strictly adhere to the provisions of P. the DBM shall submit to the House Committee on Appropriations and the Senate Committee on Finance a quarterly report on releases made from the lump-sum Special Purpose Funds. 84. facilities. a memorandum of agreement may be entered into with the implementing national government agency and the beneficiary LGU. 292. as well as appropriations earmarked and released for rentals. 3. January 21. sanitaria. offices. bureaus. Construction Standards and Guidelines. 83. 82. Strict Adherence to Procurement Procedures. 2000. hospitals. 2002. submit a status report on the actions they have taken on the audit findings and recommendations to the COA. goods. all departments. Said reports shall include detailed statements on the disbursements and utilization of the agency lumpsum funds and a listing or itemization of the authorized and hired casual.O. designating the latter or any other LGU with demonstrated capability to undertake the project or activity by themselves. programs and services funded under the General Appropriations Act shall be implemented by the appropriate national government department or agency irrespective of the nature and location of such projects. facilities. GOCCs and other instrumentalities. as amended by E. Within thirty (30) days after the end of each quarter. Book VI of E. That the EPS shall be used as the primary source of information on government procurement of common-use supplies. copy furnished the DBM. page 1328. 7. emergency. including state universities and colleges. the Local Government Code of 1991. bureaus. 262. unobligated and unexpended balances and the results of expended appropriations. 40. offices or agencies of the National Government.O. Supplemental General Appropriations Act of 2002 Page 16 of 18 . In the procurement of civil works. The quarterly report shall also include detailed statements on the disbursements and utilization of appropriations for the purchase of motor vehicles and equipment. In the implementation of the construction projects. including GOCCs and LGUs. Likewise. Submission of Quarterly Financial and Narrative Accomplishment Reports. Sec.D. design and construction of the project as prescribed by the Department of Public Works and Highways or the DOTC. pursuant to E. 2001. and other legislations on public works shall be strictly complied with. the COA. Within thirty (30) days after the end of each semester. their daily wages or monthly salaries. 4. each department. bureaus. telephone and other communication services. illumination and power services. Report on Compliance with COA Audit Findings and Recommendations. No. R.O. unliquidated obligations. 2000 and its IRR: PROVIDED. oil and lubricants. travels. Pursuant to Sec. 17(c) of R. rules and regulations shall be strictly observed. shall within sixty (60) days from their receipt of the COA annual audit report. 81. No. obligations incurred/liquidated. programs and services: PROVIDED. 1594 and its revised implementing rules and regulations (IRR) and E. All departments. President of the Senate the House of Representatives M. 87. Approved. The provisions of this Act shall take effect on January one. VENECIA. and. the unreleased balances of such appropriations.Appropriations. Effectivity. If for any reason. JR. Separability Clause. 2001. Sec. Sec. any section or provision of this Act is declared unconstitutional or invalid. NAZARENO Secretary of the Senate the House of Representatives G. 86. other sections or provisions hereof which are not affected thereby shall continue to be in full force and effect. as applicable. OSCAR ROBERTO P. FRANKLIN JOSE DE. DRILON Speaker of This Act which originated from the House of Representatives was finally passed by the House of Representatives and the Senate on December 22. YABES Secretary-General of GLORIA MACAPAGAL-ARROYO General Appropriations Act of 2002 Page 17 of 18 . Continuing Appropriations and Automatic Appropriations. unless otherwise provided herein. Two Thousand Two. President of the Philippines General Appropriations Act of 2002 Page 18 of 18 .