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Issuance of Department Authorization to Utilize Additional Confidential Funds of LGUs

The DBM, DILG, DND, GCG and the COA Joint Circular No. 2015-01 entitled “Guidelines on the Entitlement, Release, Use, Reporting and Audit of Confidential and/or Intelligence Funds” explicitly provides the following:

• NGAs, GOCCs, and LGUs that are entitled to CF and/or IF.

For LGUs whose peace and order is a priority concern and which have duly allocated CF, but not IF, in their annual appropriation ordinances, provided, that, specific amount for POP is included in their POPS Plan and, provided further, that there is a specific appropriation for POP in their annual budget. The computation of allowable CF of an LGU shall be based on the budget of the LGU’s POP only.

• CF shall be used only for the following Confidential Expenses:

• Purchase of information necessary for the formulation and implementation of PPAs relevant to the national security and peace and order;

• Rental of transport vehicle related to confidential activities;

• Rentals and the incidental expenses related to the maintenance of safehouses;

• Purchase or rental of supplies, materials and equipment for confidential operations that cannot be done through regular procedures without compromising the information gathering activity concerned;

• Payment of rewards to informers (non-employee of concerned government agency) subject to certain conditions

• Uncover/prevent illegal activities that pose a clear and present danger to agency personnel/property, or other facilities and resources under the agency protection, done in coordination with the appropriate law enforcement agencies;

• Others that may be authorized by the GAA or other special law/s

• Procedural guidelines on the release of CF of LGUs

• LGUs with peace and order concerns shall allocate in their respective Annual Appropriations Ordinance funds for POP, as part of its POPS Plan. The total amount for CF shall not exceed 30% of the total annual amount allocated for the LGU’s POP.

• The release and use of CF shall be covered by a resolution duly approved by ⅔ of the total membership of the local POC.

• LGUs shall secure Certification from the concerned PNP Chief in their locality relative to the peace and order situation highlighting in concrete details the circumstances which require the urgency in allocating CF

• Additional CF shall be covered with a supplemental budget authorized by the Sanggunian concerned and/or reviewed by the DBM Secretary or his authorized representative as the case may be, the source of which shall not come from 20% Development Fund of the LGU.

• Request for additional CF in excess of the ceiling shall be filed with the concerned DILG Field Officer justifying the need thereof supported with the following documentary requirements:

1. Duly approved Three-Year POPS Plan;

2. Annual  and Supplemental Appropriations Ordinance indicating the appropriations for CF;

3. Certification from the Budget Officer as to the availability of appropriations;

4. Certifications from the concerned PNP CHief in their locality relative to the peace and order situation highlighting in concrete details the circumstances which require the urgency in allocating funds for confidential activities;

5. Physical and financial plans for both the original allocation for CF and the subject request; 

6. Certification of Full Disclosure Policy compliance

7. Other documentary requirements in consonance with the National QMS - (1) Local Peace and Order Council Resolution duly approved by two-thirds (⅔) of the total membership approving the release and use of additional CF; and (2) Certification from the Local Budget Officer as to the availability of appropriations.

Reporting Requirements

LGUs shall submit Quarterly Accomplishment Report on the use of CF (Annex C) which must be duly certified by the LCE, not later than the 15th day of the first month of the succeeding quarter to the Secretary of the DILG.

Failure of the Accountable Officer to liquidate any public funds for which he is accountable, upon demand by any duly authorized officer, shall be prima facie evidence that he has put such missing funds or property to personal use and benefit.

Procedure Manual for DILG Personnel

Procedure in the Citizen's Charter

Legal Bases / References

• MC 2019 - 143 Omnibus Guidelines for Peace and Order Councils (POCs) Omnibus Guidelines for Peace and Order Councils (POCs)

• COA-DBM, DILG, Governance Commission for GOCCs and DND Joint Circular No. 2015-01, Guidelines on the Entitlement, Release, Use, Reporting and Audit of Confidential and/or Intelligence Funds