Interim National Peace and Order Council Secretariat Advisory No. 2016-02 dated November 25, 2016, provides that per agreement with the Commission on Audit, the Regional Peace and Order Council Secretariat Heads shall certify the Peace and Order Programs of their component LGUs. Peace and Order Programs not certified by RPOC Secretariat Heads shall be disallowed. The certification shall serve as the basis for the computation of the Confidential Fund.
Here's a copy of the Guidelines on the Entitlement, Release, Use, Reporting and Audit of Confidential and/or Intelligence Funds