Intelligence and Confidential Funds
----------------------------------------------Joint Circular No. 2015-001
dated January 8, 2015
DILG
 DBM
 DND
 GCG
 COA

Salient Features
Of the
Guidelines
1
Legal Bases of the 5 agencies in
preparing the guidelines:


General Provisions 77 and 78 of the 2015
GAA requiring DBM to issue the
guidelines
Administrative Code of 1987 prescribing DILG
to prescribe rules and regulations and other
issuances and implementing laws on the
general supervision of LGUs and the DND to
formulate policies on matters concerning
national security
2
Legal Bases of the 5 agencies in preparing
the guidelines:…Continuation


RA 10149 creating GCG as central
advisory with authority to formulate
policies involving GOCCs
Section 2(2) Article IX D of 1987
Constitution which mandates COA to
promulgate accounting and auditing
rules and regulations
3
Coverage of the Guidelines:
Entitlement
• Release and Use,
• Reporting, and
• Audit
•
4
Distinction
Confidential
Expenses (CE)

surveillance activities 
in civilian government
agencies that are
intended to support
the mandate or
operation of the
agency
Intelligence
Expenses (IE)
intelligence
information gathering
activities of uniformed
and military personnel
and intelligence
practitioners that have
direct impact to
national security
5
General Guidelines
The following are entitled to CF and/or IF:

CF and IF:
NGAs which
are expressly
provided
budget
allocation
under the GAA
or other law/s
CF:
GOCCs as provided in their
COBs as may be expressly
authorized by the GCG under
R.A. No. 10149, and by the
DBM for all other GOCCs;
and

LGUs whose peace and
order is a priority concern
and which have duly
allocated CF, but not IF, in
their annual appropriation
ordinances
6
Peace and Order Program
The total amount for
Confidential Fund shall not
exceed thirty percent (30%)
of the total amount
allocated for the LGUs POP
7
Peace and Order Program
Refers to any or a combination of the ff. programs,
activities and projects which may be included as part
of the Peace and Order and Public Safety Plan of an
LGU so that these shall be eligible for funding of the
CF:
a. Crime prevention and law enforcements
b. Aid and/or capability development for
personnel of law enforcement agencies,
and volunteers/partners
c. Programs for anti-illegal drug, illegal gambling,
counter-insurgency and/or counter-terrorism,
illegal logging, illegal mining, illegal fishing,
smuggling and human trafficking.
8
General Guidelines…continuation
All allocations of CF and/or IF
shall be supported with a Physical
and Financial Plan indicating the
proposed amount allocated for
each program, activity, and
project, where disbursements
pertaining to CE and IE shall be
based.
2.
9
General Guidelines…continuation
3. For NGAs, the amount appropriated for CF shall be
included among the items to be released
comprehensively upon approval in the GAA, subject
to the approval of the Department Secretary
concerned, or the HoA in the case of Constitutional
Commission and other bodies belonging to the
Constitutional Fiscal Autonomy Group (CFAG) such
as the Office of the Ombudsman.
On the other hand, releases for IF shall be subject
to the prior approval of the President of the
Philippines.
10
General Guidelines…continuation
4. Use of savings for Budget Augmentation
for intelligence and counter intelligence
activities

For NGAs, approval of the
President of the Philippines is
required prior to release and
disbursement of such savings
for said activities.
11
General Guidelines…continuation
5. For GOCCs, release and utilization of
the CF shall require prior approval of
the President of the Philippines
6. For LGUs, release and utilization of
the total CF shall be covered by a
resolution duly approved by twothirds (2/3) of the total membership
of the Local Peace and Order Council.
12
General Guidelines…continuation
Requirement for additional CF
in Excess of Limitation
For LGUs:
 Approved
Supplemental budget
by local Sanggunian
 Approved
request by the
Secretary of DILG.
13
General Guidelines…continuation
8. CF shall be used only for the ff.
expenses:
8.1 Purchase of Information
8.2 Rental of transport vehicle
8.3 Rentals and incidental expenses
related to maintenance of
safe houses
8.4 Purchase or rental of supplies,
materials and equipment
14
General Guidelines…continuation
Uses of CF….continuation
8.5 Payment of rewards to informers (nonemployee of concerned agency) with the ff.
conditions:
a. Approval by the HoA for LGUs and NGAs
and Chairman of the Board for GOCC.
b. Supporting documents evidencing the
success of information gathering and/or
surveillance activities
c. Directly related to the conduct of the specific
confidential activities of authorized agencies
8.6 Uncover/prevent illegal activities
8.7 Others that may be authorized by the GAA or
15
other special law/s
General Guidelines…continuation
9.
Conduct of confidential activities shall
be done in collaboration with:
a. Philippine National Police
b. Armed Forces of the Philippines
c. Philippine Drug Enforcement
Agency, or
d. Other agencies with lawenforcement functions.
16
General Guidelines…continuation
10.
IF for ff. intelligence expenses to be
carried out by uniformed and military
personnel and intelligence
practitioners:
10.1 Intelligence and counter
intelligence activities that have
direct impact to national
security
10.2 Special projects and case
operation plans as approved by
the HoA
17
General Guidelines…continuation
11. In no case shall CF or IF be used for:
•
•
•
•
•
Salaries,
wages,
overtime,
additional
compensation,
allowance or
other fringe
benefits
officials and
employees
employed by the
government in
whatever capacity
or elected
officials, except
when authorized
by law.
18
General Guidelines…continuation
11. In no case shall CF or IF be used for:….
continuation
11.2 Representation, consultancy
fees or entertainment
expenses; or
11.3 Construction or acquisition of
buildings or housing
structures.
19
General Guidelines…continuation
Disbursements from CF shall be
supported with documentary evidence
of payment to be submitted to ICFAU
upon liquidation
13. Disbursements from IF shall be
supported with documentary evidence
of payment in a sealed envelope
signed by the SDO, kept at all time in
the vault of his office.
12.
20
General Guidelines…continuation
14.
The preparation of
documentary evidence of
payment supporting the IE
shall be subject to the
handling of Security
Information
21
General Guidelines…continuation
15. Disbursements from CF and IF shall be
supported by Certification of the
Accountable Officer of the CF or IF under
oath with the following:
15.1 Certifying officer or employee is
accountable for the disbursements
15.2 That expenses were incurred in
connection with the agency’s
intelligence and/or confidential
operations and activities
22
General Guidelines…continuation
15.3 Details and supporting documents of
classified transactions are in the custody
of the agency and kept in its vault
15.4 Funds are not used or payment of salaries
and wages, overtime, additional
compensation, allowance, or other fringe
benefits of official and employees,
representation/entertainment expenses,
consultancy fees and construction or
acquisition of buildings or housing
structures.
23
General Guidelines…continuation
15.5
16.
Purchase of equipment (if
there is any) is relevant to
the confidential and/or
intelligence activities.
In case of misuse of IF/CF, and
depending on the participation in
the transaction, the Budget Officer,
Chief Accountant, the Treasurer
and Project Officer may likewise be
held accountable with the SDO.
24
Approval of Release/Utilization

For NGAs
CF – included in GAA, subject to the
approval of the Dept. Secretary
IF - approval of the Pres of the Phils.

For GOCCs
CF -approval of the Pres of the Phils.
25
Approval of Release /Utilization…continuation

For LGUs:
CF - approved resolution by
two-third (2/3) of the
total
membership of
the Local Peace and
Order Council
26
Reporting Requirements
Quarterly Accomplishment Report shall be submitted
as follows:
 NGAs
IF - Pres. of the Phils
CF - a) Pres. of the Phils, b) the Senate Pres., the
c) Speaker of the HoR, and d) Dept. Secretary

GOCCs
IF - a) Pres. of the Phils through the the GCG,
b) the Senate Pres. ,and
c) Speaker of the HOR

LGUs
CF -
Secretary of DILG
27
Audit
Cash advance vouchers for CIF shall
be post audited by the ATL within
seven (7) days from the release of
the check. Results of post-audit
shall be furnished the ICFAU
 Audit of Liquidation Report shall be
done by ICFAU, Office of the
Chairman, COA
 No Credit advice shall be issued

28
Audit
 Upon
receipt of the transmittal letter
from the ICFAU, the Agency Accountant
shall record the liquidation of the cash
advance in the books of accounts

In case ND is issued by ICFAU, the agency
accountant shall restore the corresponding
amount of disallowance in the books of
accounts and shall form part of the
unliquidated cash advance of the
SDO/HoA
29
Audit



Utilization of Cash Disbursement
Records (Cashbook) is required
Administrative/Penal Sanctions are
cited in the JC
All documentary requirements,
mentioned in the JC for Local,
National, and Corporate agencies
30
List of Annexes








List of Acronyms
Annex A – Physical and Financial Plan
Annex B - Certification of the Accountable
Officer
Annex C - Accomplishment Report
Annex D - Proforma Transmittal Letter to
ATL
Annex E - Liquidation Report
Annex F - Proforma Transmittal Letter to COA
Annex G - Report on the Submission of Cash
Advance for CE/IE and results of audit
thereof
31
Joint Circular No. 2015-001 dated
January 8, 2015
download
@
http://www.coa.gov.ph
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