Republic of the Philiy es NATIONAL DISASTER COORDINATING COUNCIL Department of National Defense Camp Gen. Emilio Aguinaldo, Quezon City MEMORANDUM CIRCULAR NO. 95-03 March 30, 1995 T 0 + National Disaster Coordinating Council Members (NDCC) Local Disaster Coordinating Councils and Heads of Other National and Local Government Agencies SUBJECT : Amendment to NDCC Memorandum No. 4, s. 1989, as Amended on “Folicies and Procedures in Requesting, Allocating, Releasing and Monitoring of Calamity Fund (CF)." The Rules and Regulations promulgated herein amend certain provisions of NDCC Memorandum No. 4, series 1989 on “Policies and Procedures in Requesting, Allocating, Releasing and Monitoring of Calamity Fund 1. Policies 4.1 Once an area is declared under a state of calamity, the Local Government Unit (LGU) can already utilize its local calamity fund (CF) as provided for in Section 324 (d) of the Local Goverment Code of 1991, quoted as follow Section 324. Budaetary Requirements. (d) Five percent (5%) of the estimated revenue from regular sources shall be set aside as an annual lump sum appropriation for unforeseen expenditures arising from the occurrence of calamities: Provided, however, That such appropriation shall be used only in the area, or a portion thereof, of the loca: government unit or other areas declared by the President in a state of calamity." 1.2 The Department of Public Works and Highways (DPWH). Department of Social Welfare and Development (DSWD), Department of Health (DOH), Department of Aararian Reform (DAR), and Department of Agriculture (DA) are enjoined to use their Quick Response Fund (RF) first for areas declared under state of calamity before requesting for additional calamity fund. 1.3 All reports of casualties (dead, injured, missing due to calamity/disaster, etc.) should be recorded in the police blotter and that of the City/Municipal Health Officer of LGUs. In this regard, the Department ofwv Interior and Local Government (DILG) — shal circularize the requirement for office blotter entry. Regarding the President-approved calamity fund for release — a) For proactive measures, the NDCC shall recommend to the President the release of Calamity Fund for preparedness and prevention activities to include orqanization, training, public information and purchase of disaster response equipment after evaluation of the work program submitted by the Chairman, Regional Disaster Coordinating Council (RDCC) to NDCC through the Office of Civil Defense (OCD). b) Based on the approval of the President, the Department of Budget and Management (DBM) shall issue Special Allotment Release = Order (SARO)/Advice of Special Allotment Release Order (ASARO)/Notice of Cash Allocation (NCA)/Funding Check (FC) to National Government Agency (NGA)/LGU concerned, copy furnished concerned Commission on Audit Auditor and the OCD Reaional Officer. ¢) The OCD regional offices based on copy of SARO/ASARO/NCA/FC shall monitor the implementation of such work program. d) For emergency assistance, the amount of calamity fund to be recommended by the NDCC to the President for each city and municipality shall be based on weighted factors established for the purpose. Report of Utilization 24 Reports of utilization of releases from the Calamity Fund shall be prepared monthly until completion of the project by NGA/LGU concerned using the prescribed format per attached Annexes A and B duly certified correct by the head of the NGA/LGU concerned and verified correct by the COA representative concerned. The head of NGA/LGU shall be primarily responsible for the submission of these reports. This report shall be submitted directly to NDCC or to the nearest Regional Disaster Coordinating Council inthe locality for concurrence and transmittal to NDCC on or before the 20th day after end of the month covered by the report. NDCC shall submit a monthly consolidated report to the Office of the President, copy furnished the DBM. Re Submission of reports shall continue until the project/purpose for which the Calamity Fund has been released has been completed/fulfilled or until the Quick Response Fund is fully exhausted/utalized. 2.4 In no case shall utilization/obligation of Calamity Fund releases for Maintenance and Other Operating Expenses (MODE) to NGAs be allowed beyond the Fiscal Year. 2.5 A Monitoring Team shall be created by the NDCC to be composed of the following to monitor the fund utilization and accomplishment of — recipient NGAs/LGUs. National Level Lead Agency - DILG - Central Office Representative Members, - DEM ~ Central Office Representative - COA - Central Office Representative - NEDA - Central Office Representative - OCD ~ Central Office Representative Regional Level Lead Agency - DILG - Regional Director Members, - DEM - Regional Director - COA - Regional Director - NEDA - Regional Director - OCD - Regional Officer Accounting and Other Guidelines ot All local government units shall take up releases from Calamity Fund as trust liabilities/fund in their books of accounts. Moreover, heads of LGUs concerned shall acknowledge receipt of Notice of Funding Check(s) issued from the DBM and the Credit Advice from the Government Servicing Bank (GSH) using the attached sample format (Annex €). Quick Response Funds (QRFs) released to the DA, DOH, DAR, DSWD, and DPWH are not subject to replenishment and shall be exclusively used for the purpose as provided for in the Special Provisions of the Calamity Fund in the General5 a Appropriations Act. Additional releases from the Calamity Fund may be allowed upon request, subject to the recommendation of the NDCC and the approval of the Office of the President. Requests for realignment of released Calamity Fund from one project to another of similar expense class within the same calamity area shall be submitted to NDCC for evaluation and appropriate action. NDCC shall copy furnish DBM of any action taken on the requests for realignment. Qn the other hand, requests for realignment from one project to another of different expense class shall be submitted to NDCC fer evaluation and recommendation to the Office of the President for approval. Savings/unobligated allotment for current aperatina expenditures of releases from Calamity Fund of NGAS including those receiving QRF, shall be reverted to the Cumilative Results of Operation Unappropriated of the General Fund at the end of the year. Capital Outlay releases from the Calamity Fund shall be valid up to the end of the second year and any unobligated allotment under said Capital Outlay at the end of the second year shall, likewise, be reverted to the Cumulative Results of Operation Unappropriated of the General Fund. Notice of Cash Allocation (NCA) for Current Operating Expenditures (COE) and Capital Outlays (CO) shall lapse at the end of the year. Any cash balance (Cash transferred to the agency’s bank account) for COE at the end of the first year and for COs at the end of the second year shall be remitted to the National Treasury. Copies of the Journal Voucher (JV) taking up the reversion and the Authorized Government Depository Bank (AGDB) deposit slip shall be submitted to Budget and Finance Bureau (BFB-F), DBM. Local government units shall be given one (1) year — from receipt of funding check from Calamity Fund to complete/finish the project/purpose for which the fund was released. Any cash balance of the trust liabilities/fund shall be remitted to the National Treasury for credit to the account of Budget and Finance Bureau F, copy furnished BFE-F, DBM with the copy of Authorized Government Depository Bank (AGDE) deposit slip after the completion of the project/purpose or after one (1) year.4. Responsibility The NDCC shall compile and evaluate all reports relative to Calamity Fund releases and the actual accomplishments to verify whether recipient national government agencies/LGUs adhere/follow strictly the purpose(s) for which the funds were released. It shall submit a consolidated report to the Office of the President, copy furnished the DBM as a guide for future action/release of Calamity Fund. o Repealing Clause Any memorandum circular inconsistent herewith are hereby rescinded or modified accordingly. 6. Effectivity This circular shall take effect imm ii Secketary, DND and Chailrman, NDCC 95.093288CALAMITY FUND Report on Actual Fund Utilization and Accomplishment (annex 4) INSTRUCTIONS This form shall be prepared and used by the nationa: government departments/agencies to report the actual utilization of funds authorized/received chargeable against the Calamity Fund as well as its corresponding accomplishment. Column 1 This shall indicate the Special Allotment Release Order (SARO) No. and the Sub-Special Allotment Release Order (Sub-SARO) No. received by the national — aovernment departments/agencies. Receipt of Notice of Cash Allocation (NCA No.) and its corresponding date shall also be reflected in this column. Column 2 This shall indicate the description and purpose of the Calamity Fund received. Colum 3 to 4 These shall indicate the amount of Calamity Fund authorized or received as well as its allotment/object classification. Column S to 7 These colums shall indicate the amount of obligations incurred for projects/activities funded from the Calamity Fund as of the last report, the present report and the to date total. Column & This shall indicate the total liquidations/disbursements/ payments made out of the total obligations incurred Colum 9 This shall indicate briefly the status/accomplishment of the project/activities funded from the Calamity fund. At the same time it shall be supported by a Narrative Report o Accomplishment to be attached as Annex @-1.Annex A-L/Annex B-L Calamity Fund Narrative Report of Actual Fund Utilization and Accomplishment for the Month of 1995) Department/Agency/Region: (Recipient Agency/LGU) This report should provide complete details of the disbursement of the Calamity Fund Allocation: A. For Capital Outlay Component, 1. Brief description of the project 2. Name and location of the project, project cost, status of the project on the date of the report Date the project was started and expected date of completion or date completed B. For Current Operating Expenses Component 1. Brief description of the specific assistance program and its components, project cost and number of beneficiaries/target area 2. Status of the project on the date of the report C. For disaster preparedness program 1. Detailed description of the components of the program 2. Target clientele and the expense items 3. Status of the program on the date of the report Deviations on the purpose and use of the Calamity Allocations are discouraged unless authorized by President. Fund theaNBEX A CALAMITY FUND Report of Actual Fund Utilization and Accomplishment For the Month of +1995 Departacnt of Agriculture - Office of the Secretary 101 ‘SARO/Sub-SARO/ 2 Notice of Cash Prepared by: Certified Correct by: Verified Correct by: Departeent/agency Accountant Departaent/agency Head COA Auditor To be supported by narrative report of accomplishaent/ fund utilization to be attached as Annex ActANNEX i Report of Actual Fun For the Month of + 1998 Pampanga ~ Arayat ‘ASARO/Sub-SARO/ : DIRBUSEMENTS/PAYRENTS MADE Project Status/ Funding Check No./ Source Agency/ Ponce Accomplishment Date : Purpose Class: Last Report: This Report:Total to da: : Remarks * Py) Prepared by: Certified Correct by: Verified Correct by: LGU Accountant LGU Heag COA Auditor HTo be supported by narrative report of accomplisheent/ fund utilization to be attached as Annex B-1Annex © Letterhead (Date) The Secretary Department of Budaet and Management Malacanang, Manila Dear Sir: This is to acknowledge receipt of Notice of Funding Checks Issued dated issuing Funding Check No (5s). _ in the amount of P __ to cover the (purpose) received under Special Allotment Release Order No./Sub-Special Allotment Release Order No. dated chargeable against the Calendar Year Calamity Fund. Likewise, we received Credit Advice No. dated _ in the amount of & for the above mentioned purpose. very truly yours, (NGA Head) (Designation) cee: Auditor — Commission on Audit Office of Civil Defense Administratorannex © Letterhead iDate) The Secretary Department of Budget and Management Malacanang, Manila Dear Sir: This is to acknowledge receipt of Notice of Funding Checks Issued dated issuing Funding Check to cover No (s). _ in the amount of P the 7 - _ (purpose) received under Advice of Special Allotment Release Order No. /Sub- Special Allotment Release Order No. dated chargeable against the Calendar Year Calamity Fund. Likewise, we received Credit Advice No. dated _ in the amount of P from the (Government Servicing Bank Branch) for the above mentioned purpose Very truly yours, (LGU Head) (Designation) cc.: Auditor - Commission on Audit Office of Civil Defense Administrator