MEMORANDUM CIRCULAR NO. 118 - ENJOINING STRICT COMPLIANCE BY ALL DEPARTMENTS, BUREAUS, OFFICES, AND AGENCIES INCLUDING STATE UNIVERSITIES AND COLLEGES, AND GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS, TO NATIONAL BUDGET EXECUTION GUIDELINES NO. 89-1, S. 1989 AND NATIONAL BUDGET MEMORANDUM NO. 54, S. 1990 OF THE DEPARTMENT OF BUDGET AND MANAGEMENT

All departments, bureaus, offices, and agencies including state universities and colleges, and government-owned or controlled corporations are hereby enjoined to comply strictly with:

1. National Budget Execution Guidelines No. 89-1, S. 1989, subject: Guidelines on the release of the CY 1989 programmed equipment outlays and lump-sum appropriations for the hiring of casuals, contractuals and consultants of regular agencies as well as government-owned or controlled corporations; and 

2. National Budget Memorandum Order No. 54, S. 1990, subject: Guidelines on the use of agency savings from allotments released, CY 1990, of the Department of Budget and Management.

1.0 Purpose

These guidelines are being issued to provide a uniform approach in the release of the CY 1989 programmed regular equipment outlays and lump-sum appropriations for the hiring of casuals, contractuals and consultants of regular agencies as well as of government-owned/controlled corporations. 

2.0 Guidelines

Release of Equipment Outlays

2.1 All requests received by the Central Records Division for the release of equipment outlays and lump sums for the hiring of casuals, contractuals and consultants emanating from regular government agencies and government-owned/controlled corporations shall be forwarded to the appropriate Budget Bureau.

2.2 Upon receipt of the proposal, the concerned bureau shall determine if the request is chargeable against the programmed regular appropriation for the purpose. If funds are available, it shall prepare the necessary release documents for the purpose.

2.3 In case the list of proposed equipment include items which require special clearance, a provisions in the release documents shall be incorporated stating that the purchase shall be subject to the acquisition of the proper clearance from the herein stated agencies.

2.3.1 EDP equipment amounting to more than P2-M and mini-computers regardless of amount-recommendation of the National Computer Center as to the compatibility of the proposed items to the intended use as well as approval of the Office of the President; 

2.3.2 Firearms — Philippine Constabulary; and

2.3.3 Communications equipment — National Telecommunications Commission

2.4 Purchase of motorized transport equipment shall be referred to the Office of the President with the appropriate recommendation if favorable action is to be taken. Release of funds will be effected only upon receipt of OP approval. 

2.5 Finally, agencies shall be asked to submit to the Organization and Productivity Improvement Bureau a list of their actual purchases within thirty (30) days after the purchase for updating of their inventory file.

Release of Lump-Sum Funds for the Hiring of Casuals, Contractuals and Consultants

2.6 All requests received by the Central Records Division for the hiring of casuals, contractuals and consultants shall be forwarded to the appropriate Budget Bureau.

2.7 Upon receipt of the same, the concerned bureau shall determine if the request is chargeable against the programmed regular appropriations for the purpose. If there are sufficient funds for the purpose, the same shall be referred to CBCP.  

2.8 The release documents will be prepared only after CBCP action has been approved.

Since 19.07.98.