Directing All Heads of Departments and Agencies to implement measures to facilitate Budget Execution for Fiscal Year (FY) 2015Good Law
BY THE PRESIDENT OF THE PHILIPPINES
ADMINISTRATIVE ORDER NO. 46
DIRECTING ALL HEADS OF DEPARTMENTS AND AGENCIES TO IMPLEMENT MEASURES TO FACILITATE BUDGET EXECUTION FOR FISCAL YEAR (FY) 2015
WHEREAS, under the continuing policy of this Administration to treat the General Appropriations Act (GAA) as Release Document (GAARD), most agencies have practically received almost all the allotments for their respective appropriations for the year, on the day the GAA took effect;
WHEREAS, there is a need to facilitate the implementation of programs and projects and therefore, realize the intended economic and social goals of the government for FY 2015 and subsequent years; and
WHEREAS, it is now necessary to implement measures to improve the ability of departments to utilize their budgets and implement programs and projects in a timely manner.
NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the powers vested in me by the Constitution and law, do hereby order:
SECTION 1. Coverage. All departments and agencies of the Executive Department, including government-owned or -controlled corporations, are directed to implement the measures identified in this Order to ensure the prompt execution of the National Government Budget for FY 2015.
SECTION 2. Prompt Budget Execution Measures. Upon the effectivity of this Order, agencies shall implement specific measures to improve the planning and execution of activities of departments and agencies:
a. Complete the disaggregation of project listings and the submission of documentary requirements for allotment release (e.g. network plans, geo-tagged photos, implementation guidelines), by end of April 2015; and
b. Submit to the Department of Budget and Management (DBM), copy furnished the Office of the Cabinet Secretary (OCS), an implementation plan for the programs and projects in the FY2015 GAA, detailing quarterly financial and physical plans and targets using the prescribed forms under National Budget Circular (NBC) No. 555 (s. 2014).
SECTION 3. Procurement Measures. Departments and agencies shall adopt the following measures to speed up the conduct of procurement procedures:
a. Assign full-time support staff to their respective Bids and Awards Committee (BAC) Secretariats, and require BAC members and Technical Working Groups to give utmost priority to procurement assignments over all other duties and responsibilities until the requirements for the said assignments are completed;
b. Increase the number of BACs in big departments where the number and the complexity of items to be procured so warrant, such as, but not limited to, the Department of Transportation and Communications, Department of Public Works and Highways, Department of Education, Department of Health, and Department of Social Welfare and Development;
c. Coordinate with the DBM to ensure that the needed personnel and resources are provided for these organizational adjustments;
d. Comply with the procurement timelines as specified in Annex C of the Revised Implementing Rules and Regulations of Republic Act No. 9184, or the Government Procurement Reform Act; and,
e. Submit their respective Annual Procurement Plan (APP) based on the approved budget in the GAA to the Government Procurement Policy Board (GPPB) and its Technical Support Office (TSO), within the first month of the year. For those who have not submitted, to comply before the end of April.
SECTION 4. Full-time Delivery Unit. Subject to existing laws and regulations on designation, departments and agencies shall designate a full-time responsible officer, with a rank not lower than an Undersecretary, and personnel who shall monitor program and project implementation, and perform the following additional functions:
a. Ensure execution and delivery of services, outputs, and outcomes according to the program of implementation;
b. Identify by the end of the first quarter, agency programs and projects with historical trends of low disbursement rates and those with anticipated delays;
c. Come up with an agency delivery and execution strategy to troubleshoot the anticipated bottlenecks and delays of these programs and projects;
d. Work closely with the DBM for quarterly monitoring and evaluation of project execution to facilitate remedial measures.
SECTION 5. Reporting. Consistent with the DBM and Commission on Audit Joint Circular No. 1 (s. 2014) on the Budget and Financial Accountability Reports, departments and agencies are required, at the end of every quarter, to submit reports on the following to the DBM, copy furnished the OCS:
a. Progress of program and project implementation against targets and implementation plans;
b. Problems/issues encountered and measures adopted to address the same; and
c. Catch-up plans and alternative modes of implementation, if applicable, to enable departments and agencies to meet their programmed implementation.
SECTION 6. Repeal. All issuances, orders, rules and regulations, or parts thereof, which are inconsistent with any of the provisions of this Order are hereby repealed or modified accordingly.
SECTION 7. Separability. Should any provision of this Order be declared invalid or unconstitutional, the other provisions unaffected thereby shall remain valid and subsisting.
SECTION 8. Effectivity. This Order shall take effect immediately.
DONE, in the City of Manila this 30th day of March, in the Year of our Lord, Two Thousand and Fifteen.
(Sgd.) BENIGNO S. AQUINO III
By authority of the President:
(Sgd.) PAQUITO N. OCHOA, JR.