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Use of Personnel Services Appropriations and Realignment of Funds




DepEd 58, s. 2015

To: Undersecretaries
Assistant Secretaries
Bureau/Center/Regional Directors
Schools Division Superintendents
Heads, Public Elementary and Secondary Schools
All Others Concerned

  1. The Department of Budget and Management (DBM) has released two (2) issuances on the use of Personnel Services Appropriations and Realignment of Funds, namely:
    1. National Budget Circular No. 557 dated June 3, 2015 – Guidelines in the Use of Personnel Services Appropriations under the FY 2015 General Appropriations Act (GAA); and
    2. National Budget Circular No. 559 dated June 26, 2015 – Guidelines in the Realignment of Funds under the FY 2015 General Appropriations Act (GAA), and Other Purposes.
  2. Under NBC No. 557, appropriations for Personnel Services shall be used for the payment of authorized personnel benefits:
    1. Available PS allotments released at the start of the year shall be used for the following:
      1. Original purpose of appropriations; and
      2. PS deficiencies in authorized personnel benefits such as:
        1. Deficiency in Magna Carta Benefits subject to approval of the DBM Secretary;
        2. Award for back pay for cases with final and executor decision of a competent authority;
        3. Deficiency in specific-purpose allowances and benefits; and
        4. Authorized personnel benefits in prior years.
    2. Wherein there is no available PS allotment at the time when payment of authorized PS deficiency shall be made, the agency may frontload such deficiency against the unobligated PS allotments comprehensively released.
    3. The use of PS appropriations to cover deficiency shall be subject to approval of agency head.  The approval, however, is hereby delegated to the following:
      1. For central offices and for requests from the Regional/Division/ Implementing Units earlier submitted to the Central Office for clearance, Undersecretary or Assistant Secretary for Finance and Administration;
      2. For Regional Offices, the Regional Directors;
      3. For Division Offices and Implementing Units, the respective Schools Division Superintendents.
    4. The use of PS appropriations to cover deficiency shall be supported with a Reallocation Advice for Use of PS Appropriations (RAPSA), and the said adjustment shall be recorded or reflected in the Registry of Allotment and Obligations for PS and reported in the appropriated BFARs submitted to the DBM.
    5. Available PS allotments may be realized from unspent compensation of employees due to the following:
      1. Incurrence of leaves of absence without pay;
      2. Vacant positions due to termination, resignation, retirement or separation;
      3. Delay in the actual assumption of duty from date of appointment;
      4. Suspension and other disciplinary sanctions;
      5. Erroneous computations of PS benefits; and
      6. Other similar instances.
    6. Other sources of appropriations for payment of authorized personnel benefits:
      1. Miscellaneous Personnel Benefits Fund
        1. May be used to fund requirements for filling of positions and creation of positions and for payment of other compensation common to all, such as OT Pay, Step Increment, PEI, PBB, etc.;
        2. Subject to submission of Special Budget Request (SBR) to DBM with justification and latest Statement of Allotment, Obligations, Disbursements, and Balances by Object of Expenditure (SAAODBOE).
      2. Automatic Appropriations such as the Retirement and Life Insurance Premium (RLIP)
        1. Release allotment for RLIP cannot be reallocated to other objects of expenditures.
      3. Allowable MOOE allotments for the payment of Collective Negotiation Agreement (CNA) incentive under General Provision No. 74 of FY 2015 GAA:
        1. Shall have resulted from cost-cutting and systems improvement measures undertaken by the agency;
        2. Subject to submission of Special Budget Request (SBR) to DBM with:
          1. Certification reflecting the available MOOE allotments by P/A/P and specific object of expenditure;
          2. Agency’s latest quarterly SAAODBOE.
        3. Allotment released for CNA shall be attributed to General Administration and Support and recorded in the agency books under the PS-Other Bonuses and Allowances-Collective Negotiation Agreement Incentive-Civilian.
  3. Under NBC No. 559, realignment of funds refers to the reallocation, modification, or change in the details within an existing Program/Activity/Project (P/A/P).  In all cases of realignment, however, the existence of an object of expenditure in the allotment class within the same P/A/P is necessary, provided that the realignment will not result to an increase in the amount of appropriations for said P/A/P.
    1. Realignment may include changes in any of the following:
      1. Object of expenditure within an allotment class, with the exception of PS, wherein the approving authority is the agency head except payment of Magna Carta Benefits which shall be cleared with the DepEd-Office of the Secretary and approved by the Secretary of DBM.
        1. The approval of the realignment of object of expenditure within an allotment class is hereby delegated to the following:
          1. For central offices and for requests from the Regional/Division/ Implementing Units earlier submitted to the Central Office for clearance, Undersecretary or Assistant Secretary for Finance and Administration;
          2. For Regional Offices, the Regional Directors;
          3. For Division Offices and Implementing Units, the respective Schools Division Superintendents.
      2. Implementing or Operating Units (IOUs)
        1. The approval of the realignment within the same allotment class is the agency head.  However, such is hereby delegated to the following:
          1. For central offices and for requests from the Regional/Division/ Implementing Units earlier submitted to the Central Office for clearance, Undersecretary or Assistant Secretary for Finance and Administration;
          2. For Regional Offices, the Regional Directors;
          3. For Division Offices and Implementing Units, the respective Schools Division Superintendents.
      3. Project modifications or change of projects under the Basic Education Facilities pursuant to DepEd Special Provision No. 21 under the 2015 GAA shall be approved by the DepEd Secretary.
      4. The realignment of funds from one allotment class to another, including realignment for deficient allotment classes pertaining to unreleased appropriations of the Special Purpose Funds (SPF) and Unprogrammed Appropriations shall be cleared with DepEd-OSec and to be approved by the Secretary of DBM.
    2. Timelines in the realignment of funds:
      1. Realignment of object of expenditures within Capital Outlay – until the 2nd Quarter of the year (June 30);
      2. Realignment from Capital Outlay to another allotment class – until the 3rd Quarter of the year (September 30);
      3. Project modifications authorized in the Special Provisions of the respective budgets as specified under 3.5.3 of NBC No. 559 – until the 2nd Quarter of the year; and
      4. Realignment of available allotment from mandatory expenditures under MOOE such as petroleum, oil and lubricants, as well as for water, illumination and power services, telephone and other communication services and rents – during the 4th quarter of the year only
    3. The realignment of funds which are subject to the approval of the agency head or his duly authorized representative shall be:
      1. Supported with Realignment Advice Form (RAF) duly signed by the agency head or his designated representative per item 3.1 hereof;
      2. Reflected in the appropriated Registry of Allotments and Obligations (RAO);
      3. Reported in the appropriate BFARs.
    4. The realignment of funds which are subject to the approval of DBM shall be subject to the submission of a Special Budget Request (SBR) with the following supporting documents:
      1. Justification;
      2. Certification on the Actual Deficiency and Sources of Funds;
      3. Latest Statement of Allotment, Obligations, Disbursements and Balances (SAAODB); and
      4. Financial Plan (BED 1) and Physical Plan (BED 2).
  4. For strict compliance.

(Sgd.) BR. ARMIN A. LUISTRO FSC
Secretary




1 thought on “Use of Personnel Services Appropriations and Realignment of Funds”

  1. Good afternoon po sir,
    Ask ko lang po if the said DepEd Order No. 58, s. 2015, is still applicable this year (2020)because the provisions therein pertain to the fund release guidelines in FY 2015.

    Particularly, realignment from one allotment class to another which shall be cleared with DepEd- OSec (Item 3.a.iv of DO No. 58, s. 2015). Is it applicable up to this day sir?

    Thank you

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