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: ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 279
ADMINISTRATIVE ORDER NO. 279 -
PRESCRIBING RULES AND REGULATIONS FOR THE ESTABLISHMENT AND
ADMINISTRATION OF A PROVIDENT FUND OF AGENCIES COVERED BY Sec. 41 OF
THE GENERAL PROVISIONS OF REPUBLIC ACT NO. 7180
WHEREAS, Sec. 41 of the General
Provisions of Republic Act No. 7180 authorizes the surplus of service
fees deposited with the National Treasury to be constituted into a
Provident Fund which shall be available to employees for emergency
needs, school and educational loans, hospitalization loans, and loans
for minor but immediate repair of houses and other similar
circumstances;
WHEREAS, the same provision mandates that the said Fund shall be
administered pursuant to a set of rules and regulations which the
Office of the President shall promulgate;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:
Section 1. Purpose. — Pursuant to Sec. 41, General
Provisions of Republic Act No. 7180 and similar provision in succeeding
general appropriation acts, a Provident Fund is hereby authorized to be
established in the departments, bureaus, offices, and agencies covered
thereby, to be administered, managed, and utilized in accordance with
the following overall objective, governing structure, and general
guidelines.
Sec. 2. Overall Objective. — The Fund shall
provide for the granting of benefits and loans to officials and
employees of the department, bureau, office, or agency for emergency
needs; for their education or that of their children; for their
hospitalization or that of their immediate dependents; for minor but
immediately needed repair of their houses; and for other similar
purposes to be determined by a Board of Trustees, as hereinafter created
Sec. 3. Governance. — The Fund shall be
administered and managed by a Board of Trustees, hereinafter referred
to as Board. The Board for each department or department level office
or agency shall be composed of the Undersecretary for Finance or
equivalent as Chairman, the Assistant Secretary for Human Resource
Development or equivalent as Vice-Chairman and Chief Executive Officer,
a designated representative of the Secretary of Budget and Management,
and other members to be elected or appointed for a term of one year, as
follows:
a.
A regional director elected by his peers;
b. A
bureau/center/service director elected by his peers;
c. A technical
employee representative appointed by the Department Secretary from
among nominees of employee groups in the Department;
d. A
representative of the Administrative group appointed by the Department
Secretary from among nominees or organizations of Administrative
personnel in the Department.
Sec. 4. Functions and Responsibilities of the
Board. — The Board shall be directly responsible for the efficient and
effective administration and management of the Fund. It shall have the
following duties and functions:
a.
Promulgate, apply, and enforce the rules and regulations governing the
use and operation of the Fund;
b. Determine
the type, use, and amounts of loans and other benefits that may be
granted and prescribe the applicable repayment schedules and interest
rates;
c. Establish
the eligibility requirements for applicants, claimants, and grantees;
d. Approve all
loans, other benefits, and other payments from the Fund;
e. Designate
and appoint the other officers and staff of the Board as may be
necessary from among the regular personnel of the Department, and
prescribe their duties, functions, and responsibilities;
f. Create and
constitute regional boards if and when the size and spread of
operations so warrant, and delegate such functions as may be necessary;
and
g. Perform
such other functions as may be necessary to carry out the objectives
and purposes of this Order.
Sec. 5. Secretariat of the Board. — Unless
otherwise prescribed by the Board, the existing Employees Welfare and
Benefits Division or its equivalent shall serve as the Board
Secretariat, headed by its Chief who shall recommend the functions,
organization, and compensation of the staff for approval by the Board.
Sec. 6. Restriction on Compensation and Expenses.
— All members, officers, and staff of the Board shall serve without
compensation, except for payment of actual overtime services rendered
by clerical staff. Reasonable expenses incurred by members of the Board
in connection with Board activities may, however, be reimbursed upon
presentation of receipts and other documentary evidence in support of
the claim. Any claim for reimbursement of actual and necessary expenses
incurred in connection with activities of the Board shall be evaluated
and processed in accordance with existing accounting and auditing rules
and regulations.
Sec. 7. Fund Sources and Depository. — The primary
source of the Fund herein authorized shall be the balance of service
fees paid by public and private agencies availing of procurement,
payroll deduction, and other services rendered by the departments,
bureaus, offices, and agencies concerned. All income from operations
shall likewise accrue to the Fund. The Fund shall be deposited as a
special account in the National Treasury or in duly authorized
government depository banks.
Sec. 8. General Guidelines, Limitations, and
Restrictions on the Use of the Fund. — All payments out of the Fund and
the use of all proceeds from the utilization thereof shall be strictly
in accordance with the following general guidelines, limitations, and
restrictions:
a.
The Board shall adopt policies that will provide for the widest and
most equitable dispersal of benefits.
b. The Board
shall prescribe rules and regulations which will preserve the integrity
of the Fund and maintain its viability.
c. The
principal of the Fund may be utilized to extend guaranteed loans.
Expenses and other payments shall be charged against income from
operations and any surplus shall accrue to the principal at the end of
the fiscal year.
d. Repayment
of loans shall be through automatic deduction from the borrower's
salary and from other sums accruing to him in the event of his
separation from the service.
e. If any
portion of the Fund remains unutilized for a substantial portion of
time, such may be invested exclusively in Treasury bills or other
government securities.
f. Any balance
remaining in the Fund shall revert to the National Treasury in the
event of termination of the Fund.
Sec. 9. Audit of the Fund. — The Fund and its
operations shall be audited by the Commission on Audit, through its
representative.
Sec. 10. Annual Report. — The Board shall prepare
and submit an annual report on the operations of the Fund and its
financial condition and status at the end of each year to the Office of
the President, the Department of the Budget and Management, and to the
Department Secretary concerned.
In case of failure to submit said requirements, the Department of
Budget and Management shall order the suspension of all new
transactions on the Fund until which time that said requirements are
complied with.
Sec. 11. Effectivity. — This Administrative Order
shall take effect immediately.
DONE in the City of Manila,
this 5th day of May in the year of Our Lord, nineteen hundred and
ninety-two.
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