Guidelines in the Use of Personnel Services

Appropriations under the FY 2015 General Appropriations

Act (GAA)National Budget Circular No. 557

Dated June 3, 2015

Policy StatementO Appropriations for Personnel Services (PS) in

the FY 2015 GAA shall be used to cover the original purposes for which these are appropriated, as well as any deficiency in authorized personnel benefits that may be determined during the year pursuant to General Provisions (GP) No. 46 of the FY 2015 GAA. Accordingly, use of PS appropriations for any PS deficiency will follow the rules provided herein and shall not be considered as a form of realignment.

PurposeO To provide guidelines in the use of PS

appropriations authorized under R.A. No. 10651, laws governing RLIP and earmarked revenues under SAGF

O To set clear definition of relevant terms to be used in this Circular; and

O To prescribe the submission of reports in the utilization of funds covered by this Circular consistent with budgetary, transparency, and accountability policies, rules and regulations.

Definition of TermsO Agency Heads – refer to the heads of dept.,

attached agencies and Other Executive Offices under the Executive Branch, SUCs, Constitutional Commissions and GOCCs maintaining Special Accounts in the GF and other similar entities and instrumentalities concerned.

O Allotments – refer to the budget authorizations prescribed under NBC No. 556, issued to an agency permitting it to commit or incur obligations within the period of time, amount and purpose indicated therein.

Definition of TermsO Authorized Personnel Benefits

Basic Salaries, including Step Increment Standard Allowances and Benefits – PERA, UCA,

YEB and Cash Gift Specific-Purpose Allowances and Benefits• RATA, Honoraria, OT Pay• Per Diem• Night-Shift Differential• Subsistence Allowance• Hazard Pay• Special Counsel Allowance• Overseas & Other Allowances for Government

Personnel Stationed Abroad• Other allowances and benefits as may be authorized

by law or the President

Definition of TermsO Authorized Personnel Benefits (continuation)

O Incentives√ Loyalty Incentive√ Anniversary Bonus√ CNA Incentives√ PEI√ PIB (until 2015 only)√ PBB√ Other existing benefits as may be categorized by

the DBM as incentives.O Magna Carta BenefitsO Personnel benefits for military and uniformed

personnel as authorized by law or the President

PS AppropriationsSources of appropriation

Dept./ Agency Specific

Appropriations

MPBF

Automatic

Appropriations

-RLIP-SAGFs

Allowable MOOE allotments for the payment of CNA

Incentive

Department or Agency Specific Appropriations for PS

O The appropriations for PS shall be used for the payment of Authorized Personnel Benefits, computed based on information provided in the GMIS (GP No. 46 of FY 2015 GAA)

O Available PS allotments released shall be used for

Original purpose of appropriationsTo cover PS deficiencies in Authorized Personnel Benefits

Department or Agency Specific Appropriations for PSPS deficiencies in Authorized Personnel Benefits such as: Deficiency in Magna Carta Benefits, subject to approval by the

DBM Secretary for: Additional recipients – newly issued Valid adjustments due to inadvertent omission in the System

Award of Back Pay Deficiency in specific-purpose allowances and benefits (OT,

Honoraria and RATA, etc.) Subject to existing conditions in the grant of such benefits

Authorized Personnel Benefits in PYs, the approval for the payment of which is granted in the CY. Since PS benefits are mandatory in nature, actual services rendered or benefits allowed in prior years shall not be categorized as unbook obligations. Thus, this may be considered as an exemptions to the existing policy, rules and regulations on unbooked obligations.

Department or Agency Specific Appropriations for PS

O The available PS allotments referred to above may be realized from unspent compensation of employees due to the ff: Incurrence of leaves of absence without pay; Vacant positions on account of termination,

resignation, transfer, retirement or seperations; Delay in the actual assumption of duty from the

date of appointment; Suspension and other disciplinary sanctions; Erroneous computations of PS benefits; or Other similar instances

Department or Agency Specific Appropriations for PS

O In case there is no available PS allotment at the time when payment of authorized PS deficiency mentioned the department or agency may frontload such as

deficiency against the unobligated PS allotments comprehensively released pertaining to requirements for the remaining months of the year.

The use of PS appropriations to cover a PS deficiency shall be subject to approval of Agency Head.

Supported by RAPSA Said adjustments shall be recorded or reflected in

the RAO for PS and accountability reports (SAAODB)

MPBFO PS deficiencies of government employees

which cannot be accommodated within the available PS Allotments of a department or agency: Funding requirements for the filling of

positions and creation of new positions; and Other compensation common to all

Overtime Pay, Step Increment, Performance Enhancement Incentive, Performance-Based Bonus and other compensation for specific groups.

Automatic Appropriations Released allotment for RLIP cannot

be reallocated to other objects of expenditures.

As a general rule, SAGFs shall not be used for payment of PS, unless expressly authorized in the law creating them, as in the case of those agencies enumerated under item 4.1.3.2 hereof.

CNA IncentivesO The CNA Incentives shall be paid from the

allowable MOOE allotments as identified under GP No. 74 OF THE FY 2015 GAA and at such rates determined by the DBM. The allowable MOOE allotments shall have resulted from cost-cutting and systems improvement measures undertaken by the agencies and their respective personnel, as identified in their respective “Agreements” and supplements thereto.

CNA Incentives

Request

Request

• Certification

• Latest SAAODBOE

• Certification

• Latest SAAODBOE

SARO

Books of Account

PS-Other Bonus and Allowances“CNA Incentive - Civilian"

Attributed to GAS

Repealing ClauseAll circulars, memoranda, rules, regulations

and other issuances inconsistent herewith are deemed repealed and superseded accordingly.

Effectively This Circular shall take effect immediately

upon its publication.

- End of Presentation -