REPUBLIC OF THE PHILIPPINESDEPARTMENT OF BUDGET AND MANAGEMENT

GENERAL SOLANO STREET, SAN MIGUEL, MANILA:

CIRCULAR LETTER No. 2015 - 1Date: January 9,2015

FOR The Heads, Commission on Audit (COA), Office of theOmbudsman, Department of Justice, COA Auditors, and allOthers Concerned

SUBJECT Clarification on the Procedure for the Release of PriorityDevelopment Assistance Fund (PDAF) in FYs 2005 andyears Thereafter

1. This Circular is being issued to clarify the application of NBC No. 4761 datedSeptember 20, 2001 to PDAF releases for FY 2005 and years thereafter in viewof the related disaliowances and cases filed against DBM officials and employees.

2. In this regard, this Department hereby clarifies that beginning FY 2005 and inthe succeeding fiscal years, all PDAF allocation were directly released toimplementing agencies pursuant to the express provisions of Special Provision 1of the FY 2005 General Appropriations Act (GAA) which already included a list ofprograms, projects, and implementing agencies (PDAF menu) upon which therequests for release of funds were evaluated as to consistency with theprograms, projects and implementing agencies listed in the PDAF menu, to wit:

FY 2005 GM and FY 2006 reenacted budget

"1. Use afld Release of the Fund. The amount appropriated herein shaH be used to fund priorityprograms and projects under the ten point agenda of the national government and shall bereleased directly to the implementing agencies as indicated hereunder, to wit:

PARTICULARS PROGRAM PROJECT IMPLEMENTING AGENCY

A. Education Purchase of IT Equ ipment

Scholarship

DepEdffESDAICH ED/S UCs/LG Us

TESDAICHED/SUCs/LGUs

B. Health Assistance to IndigentPatients Con lined at theHospitals under DOH including

DOH/SpecialtyHospitals

J Guidelines on the Release of Funds Chargeable Against the Priority Assistance Fund for theSecond Semester of FY 2001 and Thereafter cV

Specially Hospitals

Assistance to Indigent Patientsat the Hospitals Devolved toLGUs and RHUs.Insurance Premium

C'. Livelihood/CIDSS Small & Medium Enterprise/LivelihoodComprehensive Integrated

Delivery of Social Services

D. RuralEkctrilication

Barangay/RuralElectrification

LGUsPhilhealth

DTlrrLRC /DA/L1 V ECOR/CDA

DSWD

DOE/NEA

DPWIILGUs

LGUs

DPWH

DA-NIA

PROVIDED, That in the procurement of common-used supplies, the implementing agenciesshall adhere to the price list and the rules and regulations to be issued by the Government ProcurementPolicy Board.

E. Water Supply Construction of Water SystemInstallation of Pipes/Pumps/Tanks

F FinancialAssistance

Specific Programsand Projectsto Address the Pro-Poor

Programs ofGovernment

G. Public Works ConstHlction/Repair/Rehabilitationof the following: RoadsandBridges/Flood Control/SchoolBuildings/Hospitals/HealthFacilities/Public Markets/M ulti-PurposeBuildings/Multi-PurposePavements

H. lrrigation Construction/Repair/Rehabilitation of Irrigation Facilities

FY 2007 GAA

"1. Use and Release of the Fund. The amount appropriated herein shall be used to fund priorityprograms and projects under the Ten Point Legacy Agenda of the national government and shallbe released directly to the implementing agencies as indicated hereunder. to wit:

PARTICULARS PROGRAM PROJECT

A. Education Purchaseof IT Equipment

Scholarship

B. Ilealth Assistance to IndigentPatientsConfined or Out-PatientsIn Hospitals Under DOH includingSpecialty Hospitals

Professional Feesshall be coveredfor payment on a caseto casebasisupon the recommendation of theMembers of the Congressconcerned

Purchaseof Medical EquipmentAssistance to Indigent Patientsat the Hospitals Devolved toLGUs and RHUs.Insurance Premium

C'. Livelihood/CIDSS Small & Medium Enterprise/LivelihoodComprehensive Integrated

IMPLEMENTING AGENCY

DepEdffESDA/CHED/SUCs/LGUs

TESDA/CHED/SUCs/LGUs/DAP

DOH/SpeciallyHospitaIs/UPS-PGH/

WVSU HospitalDOH/SpecialtyHospitaIs/UPS-

PGII/ WVSU Ilospital

LGUsPhilhealth

DTlffLRC/DA/L1VECOR/CDA.'0 M A

D. RuralElectrification

E. Water Supply

F. FinancialAssistance

G. Public Works

11. lrrigation

I. Peaceand Order

J. Housing

K. ForestManagement

Delivery of Social Services DSWD

Barangay/RuralElectrification

DOElNEAlLGUs

Construction of Water SystemInstallation of Pipes/Pumps/Tanks

DPWIILGUs

Water Supply Development for LocalWater Districts LWUA

Specific Programsand Projectsto Address the Pro-PoorProgramsof Government

LGUs

Construction/Repair/Rchabi Iitationof the following: RoadsandBridges/Flood Control/SchoolBui Iding/Hospitals/Hea IthFacilities/Public Markets/M ulti-Purpose Buildings/M ulti-PurposePavementsConstruction/Repa ir/Rehabilitation of AcademicBuildings

DPWHSUCs

Construction/Repair/Rehabilitation of IrrigationFacilities

DA-NIA

Purchaseof Vehicles andFiretrucks and Fire-Fighting EquipmentsConstruction/Repair of Police,Jail and Fire Stations

DILG-PNPIBFP/BJMP

DILG-PNP/BFP/BJMP

Construction of Housing Unitsfor Eligible Beneficiaries NIIAlLGUs

Establishment/Rehabilitation/Maintenance and Protection

of Forest, Mangrove andWatersheds DENR

Upland Agro-Foresu-yDevelopment ProgramSpeei lica lIy lor thePlanting of JatrophaCurcas L NRDC.PFC

L. Historicall Historical Sites/Arts and Culture Heritage,

PROVIDED, That in the procurement of common-used supplies, the implementing agencies shalladhere to the price list and the rules and regulations to be issued by the Government ProcurementPolicy Board. PROVIDED, FURTHER, That the amount of Three Hundred Million Pesos(P300,OOO,OOO.OO)shall be set aside as seed money for the Kalinga Pilipinas Congressional DistrictHousing Program at Five Million Pesos (PS.OOO,OOO.OO)per congressional district with counterpartfunding in the eguivalent amount from the allocation of each congressional district. (CO DlTIOMLIMPLliMEf\.'T ATIO. President's Veto Message, March 22, 2007, page 1162. R,A No 9401 r

FY 2008 GAA

"1. Use and Release of the Fund. The amount appropriated herein shall be used to fund priorityprograms and projects under the Ten-Point Legacy Agenda of the national government, andshall be released directly to the implementing agencies as indicated hereunder, to wit:

PARTICULARS

- ---------

PROGRAM PROJECT IMPLEMENTING AGENCY

(jI'

A. Education

B. Health

Purchase of IT Equipment

Scholarship

Assistance to IndigentPatients Confined at theHospitals Under DOH includingSpecialty Hospitals

Purchase of Medical EquipmentAssistance to Indigent Patientsat the HospitalsDevolved to LGUs and RHUsInsurance Premium

C. Livelihood/CIDSS Small & Medium Enterprise/Livelihood

Comprehensive IntegratedDelivery of Social Services

D. Rural Electrification Barangay/RuralElectrification

E. Water Supply

DepEd/TESDA/CH ED/S UCs/LG Us/D AI'

TESDA/CHED/SUCs/LGUs

DOH/SpeciallYHospitals/UPS-

PGH/ WYSU Hospital

DOH/SpecialtyHospitals/UPS-PGHWYSU Hospital

LGUsPhilhealth

DTlITLRC/DAIL1YECOR/CDA/OMA

DSWD

DOE/NEAiLGUs

Construction of Water System DPWHInstallation of Pipes/ LGUsPumps/Tanks LWUAWater Supply System Development tor LocalWater Districts

F. Financial Assistance Specific Programs and Projectsto Address the Pro-PoorPrograms of Government

G. Public Works

H. Irrigation

I. Peace and Order

.I. Housing

K. ForestManagement

L. Historical!

C onstruction/Repair/Rehabi litationof the following: Roads andBridges/Flood Control!SchoolBuilding/Hospitals/HealthFacilities/Public Markets/Multi-Purpose Buildings/Multi-PurposePavementsConstruction/Repair/Rehabilitation of AcademicBuildings

Construction/Repair/Rehabilitation of IrrigationFacilities

Purchase ofYehicles,FiretrucksConstruction/Repair of Police,.Iail and Fire Stations

Construction of Housing Unitstor Eligible Beneficiaries

Establishment/Rehabilitation/Maintenance and Protection

of Forest, Mangrove andWatersheds

Upland Agro-ForestryDevelopment ProgramSpecifically For ThePlanting Of JatrophaCurcas L.

Historical Sites/

LGUs

DPWHSUCs

DA-NIA

DILG-PNP/BFP/BFP/BJMPDILG-PNP/BFP/B.lMP

NHA/LGUs

DENR

NRDC-PFC

NCAAlNHIIFDCP

Arts/Cultureand Music

Heritage/Documentary Films orCu lture and Arts, Promotion orFilipino Music

PROVIDED, That in the procurement of common-use supplies, the implementing agencies shall adhere tothe price list and the rules and regulations to be issued by the Government Procurement Policy Board:[PROVIDED, FURTHER, That the amount herein authorized can not be impounded and shall be releasedwithin the budget year: PROVIDED FURTHERMORE, That the appropriation herein authorized shall havevalidity of two (2) years as provided under Section 66 of the General Provisions of this Act]. (DIRECTVETO- President's Veto Message, March 11,2008, pages 1191-1192, RA No. 9498)"

FY 2009 GAA

"1. Use and Release of the Fund. The amount appropriated herein shall be used to fund priorityprograms and projects under the Ten Point Legacy Agenda of the national government and shallbe released directly to the implementing agencies as indicated hereunder, to wit:

PARTICULARS PROGRAM PROJECT IMPLEMENTING AGENCY

A. Education Purchase of IT Equipment

Scholarship

DepEdlTESDNCHED/SUCslLGUsTESDA/CHED/SUCs/LGUs

B. Health Assistance to IndigentPatients Either Confined or Out-Patients,in Hospitals Under DOH IncludingSpecialty Hospitals ~

C. Livelihood/CIDSS

D. RuralElectrification

E. Water Supply

F. FinancialAssistance

G. Public Works

I I. Irrigation

DOH Hospitals/SpecialtyHospitals/UPS-

PGH/ WVSU Hospital

Purchase or Medical Equipment DOH Hospita ls/SpccialtyHospitals/UPS-PGHWYSU Hospital

Assistance to Indigent Patientsat the Hospitals Devolved toLGUs and RHUs

LGUs

Insurance Premium Philhealth

Small & Medium Enterprise/Livelihood

Comprehensive IntegratedDelivery of Social Services

DTI/D A/N LDCCDA/OMADSWD

Barangay/RuralElectrification

DOE/NEA/LGUs

Construction of Water SystemInstallation of Pipes/Pumps/TanksWater Supply System Development forLocal Water Districts

DPWHLGUs

LWUA

Specific Programs and Projectsto Address the Pro-Poor

Programs or Government

LGUs

Construction/Repair/Rehabilitationof the following: Roads andBridges/Flood Control/SchoolBuilding/Hospitals/HealthFacilities/Public Markets/Multi-Purpose Buildings/M ulti-PurposePavementsConstruction/Repair/Rehabilitation or AcademicBuildings

DPWHSUCs

Construction/Rcpair/ DA-NIA

I. Peace and Order

J. Housing

K. ForestManagement

L. II istorical/Arts/Culture

Rehabilitation of IrrigationFacilities

Purchase of Vehicles,Firetrucks and Firefighting Equipment,Patrol Vehicles,Prisoner's Vans, andMuticabsConstruction/Repair of Police,

Jail and Fire Stations

Construction of Housing Unitsfor Eligible Beneficiaries

Establishment/Rehabilitation!Maintenance and Protection

of Forest, Mangrove andWatersheds

Upland Agro-ForestryDevelopment Programspecifically for thePlanting Of JatrophaCurcas L.

Historical Sites/Heritage

DILG

DILG

NHA/LGUs

DENR

NRDC -PFC

NHI

PROVIDED, That in the procurement of common-use supplies, the implementing agencies shall adhereto the price list and the rules and regulations to be issued by the Government Procurement Policy Boardand the Procurement Service." (Boldface ours).

FY 2010

1. Use and Release of Fund. The amount appropriated herein shall be used to fundpriority programs and' projects of the National Government, and shall be released directly tothe implementing agencies as indicated hereunder, to wit:

PARTICULARSA. Education

B. Health

C. Livelihood! CIOSS

D. Rural ElectrificationE. Water Supply

F. Financial Assistance

G. Public Works

PROGRAM/PROJ ECTPurchase of IT EquipmentScholarshipAssistance to Indigent Patients eitherConfined Or Out-Patients, in Hospitalsunder DOH including Specialty Hospitals

Purchase of Medical Equipment

Assistance to Indigent Patients at theHospitals Devolved to LGUs and RI-IUsInsurance PremiumSmall & Medium Enterprise/ LivelihoodComprehensive Integrated Delivery ofSocial ServicesBarangay/Rural ElectrificationConstruction of Water System Installationof Pipes/ Pumps/TanksWater Supply System Development forLocal Water Districts

Specific Programs and Projects to Addressthe Pro-Poor Programs of Government

Construction/Repair/Rehabilitation of thefollowing: Roads and Bridges/FloodControl/School Buildings and othereducational facilities /Hospitals/HealthFacilities/Public Markets/Multi- Purpose

IMPLEMENTING AGENCYDepEdrrESDAf CHED/SUCs/LGUslNCIPTESDA!CHED/SUCs/LGUs

DOH Hospitals/ Specialty Ilospitals/UPS-PGH/WVSU HospitalDOH/Specialty Hospitals/ UPS-PGII/WVSUHospital

LGUsPhilhealthDTII DAfNLDC/CDA/OMA

DSWDDOE/NEAfLGUs

DPWH LGUs

LWUA

LGUs

DPWH/LGUS

Buildings/Multi-Purpose PavementsConstruction/Repair/ Rehabilitation ofAcademic Buildings SUCs

H. Irrigation Construction/Repair/ Rehabilitation ofIrrigation Facilities DA-NIA

I. Peace and Order Purchase of Firerrucks and FirefightingEquipment, Patrol Vehicles, Prisoners'Vans, and Mulricabs and Police PatrolEquipment DILGConstruction/Repair of Police, Jail andFire Stations DILG

J. Housing Construction of Housing Units for EligibleBeneficiaries NHA/LGUs

K. Forest Management Establishment/Rehabilitation/Maintenance and Protection of Forest,Mangroves and Watersheds DENRUpland Agro-Forestry DevelopmentProgram specifically for the planting of NRDC -PITJatropha Curcas L.

L. Historical! Historical Sites/HeritageArts/Culture NHI

PROVIDED, That in the procurement of common-use supplies, the implementing agencies shall adhere tothc price list and the rules and regulations to be issued by the Government Procurement Policy Board.

3. Consequently, the requirement for the submission of project profile andendorsement by implementing agencies previously required under NBC No. 476,is already effectively superseded by the enactment of the FY 2005 GAA. Thesubmission of project profile and endorsement by the implementing agencieswere no longer necessary considering that the details required in the projectprofiles and endorsements under NBC No. 476 were already provided for in thePDAF menu under the GAA for FYs 2005 and succeeding fiscal years.

4. For information of all concerned.

,./a: -?>' -

FlORENCIO B. ABADSecretary trI