LOCAL CHIEF EXECUTIVES

Information Kit
(Utilization of Local/National Calamity Fund)

TABLE OF CONTENTS
Republic Act No. 8185 ------------------------------------------A
(An Act Amending Section 324 of RA 7160 otherwise known as Local Government Code of 1991)

DILG-DBM Joint Memorandum Circular No. 2003-1 March 20, 2003 ------------------------------------------(Use of Local Calamity Fund Appropriation for man-made disaster relief and mitigation)

Funding Disaster Management Programs/Projects/Activities---(Local Calamity Fund RA No. 7160 Local Government Code of 1991)

COA Circular Letter No. 2003-003-----------------------------------November 13, 2003

(Accounting Guidelines on the Utilization of 5% Local Calamity Fund Appropriation under RA No. 8185)

Republic Act No. 9336 GAA FY 2005--------------------------------(Special Provision in the GAA for the use of the National Calamity Fund)

NDCC Memo Order No. 04 s-1998 dtd 04 March 1998-----------(Amended Policies, Procedures and Criteria for the Declaration of a State of Calamity)

Republic Act No. 8185

An Act Amending Section 324 of RA 7160 otherwise known as Local Government Code of 1991

S. No. 1220 II. No. 4874

Republic of the Philippines

Congress of the Philippines

Metro Manila
First Regular Session

Begun and held in Metro Manila the twenty-forth day of July, nineteen hundred and ninety-five

[ REPUBLIC ACT NO. 8185 ]

AN ACT AMENDING SECTION 324 (d) OF REPUBLIC ACT NO. 7160 OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled. Section 1. Section 324 (d) Republic of Act No. 7160 is hereby amended to read as follows: (d) Five percent (5%) of the estimated revenue from regular sources shall be set aside as annual lump sum appropriation for relief, rehabilitation, reconstruction and other works or services in connection with calamities which may occur during the budget year. Provided however, that such fund shall be used only in the area or a portion thereof, of the local government unit or other areas affected by a disaster or calamity as determined and declared by the local sanggunian concerned. Calamity shall be defined as a state of extreme distress or misfortune, produced by some adverse circumstance or event or any great misfortune or cause or loss of misery caused by natural forces. In case of fire or conflagration the calamity fund shall be utilized only for relief operations.

The local development council shall monitor the use and disbursement of the local calamity fund. SEC 2. The Oversight Committee on the Local Government Code in coordination with concerned agencies, shall prepare and issue the implementing rules and regulations within thirty (30) days from the effectivity of this Act. SEC 3. The provisions of existing laws decrees, issuances, rules and regulations or portions thereof, which are inconsistent, herewith are hereby repealed, modified or amended accordingly. SEC 4. This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation

This Act, which is a consolidation of Senate Bill No. 1220 and House Bill No.4847 was finally passed by the Senate and the House of Representatives on June 6, 1996 and June 5, 1996. respectively:

RULES AND REGULATION IMPLEMENTING REPUBLIC ACT NO. 8185 AN ACT AMENDING SECTION 324 (d) R.A. NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991
SECTION 1. SCOPE Pursuant to Section 2 of Republic Act (RA) No. 8186, the Oversight Committee is mandated to prepare and issue the rules and regulations implementing said Act. For this purpose, the following rules and regulations are hereby prescribed to govern the allocation and utilization of the five percent (5%) of the estimated revenue from regular sources as annual lump sum appropriation of local government units for relief, rehabilitation, reconstruction and other works services in connection with the occurrence of calamities. SECTION 2. TITILE implementing R.A. 8185. The rules shall be known as the Rules and Regulation

SECTION 3. DEFINITION OF TERMS. As used herein, the following terms and phrases shall be construed to mean: a) Calamity a state of extreme distress or misfortune produced by some adverse circumstances or events or any great misfortune or cause, or loss or misery caused by natural forces such as earthquake, typhoons, floods, hurricane, epidemics or other disaster causing widespread loss of, and /or extensive damage to human lives, livestock, crops and property. b) Calamity Fund The annual lump sum appropriation required of local government units equivalent to 5% of the estimated Income derived from regular sources to be set aside for relief, rehabilitation, reconstruction and other works or services in connection with calamities which may occur during the budget year. c) Regular Sources revenue and receipts realized by provinces, cities, municipalities and barangays that accrued to the local general fund including the internal revenue allotment and other share provided for in Section 266, 290, 291 of the Code, but exclusive of non-recurring receipts such as other National Aids, grants, financial assistance, loan proceeds, sale of fixed assets, and similar others. b) Local Sanggunian (Sanggunian Bayan, Sanggunian Panlungsod, Sanggunian Panlalawigan) b.1 Appropriate the 5% calamity fund of Local Calamities and Disaster Preparedness Plan in the Annual budget of the LGU.

b.2 calamities. b.3

Adopt measures to protect the citizens from harmful effects of Declare the area affected by calamity as calamity area:

b.4 Authorize the Local Chief Executive through a resolution to assist in emergency operation in another locally. c) Local Disaster Coordination Council c.1 Approve the Local Calamity and Disaster Preparedness Plan and recommend the same to the next higher LDCC for integration; c.2 Conduct immediate survey of the disaster area to determine the number of casualties and extent of damages brought about by calamity; d) Local Development Council -

d.1 Incorporate the projects/activities of the LDCC in the local Development Plan. SECTION 6. ALLOCATION AND UTILIZATION OF FIVE PERCENT (5%) LUMP SUM APPROPRIATION FOR CALAMITY FUND a) Allocation -

The 5% calamity fund shall be set aside as annual lump sum appropriation every calendar year in the annual budget of LGUs to be allocated in the area affected by a disaster or calamity, as determined and declared by the Local Sanggunian concerned as calamity area. LGUs may also allocate/use a portion of the 5% calamity fund to other affected areas on condition that the said areas are declared as under state of calamity of the Sanggunian concerned. d) Relief Operations activities undertaken to provide emergency assistance to victims of calamity usually thru provisions of temporary shelter, relief goods/commodities and the like. e). Rehabilitation the restoration to the former normal living conditions of the community affected by the calamity. f). Reconstruction - rebuilding, repair or replacement of public facilities, buildings and other infrastructure, or parts thereof, destroyed or damaged during the occurrence of a calamity. g). Other works and Services any related activities undertaken in the course of rehabilitation or reconstruction such as but not limited to: medical services; repair of equipment; financial assistance to calamity victims, and such other activities essential to disaster control and management.

h) Local Disaster Coordinating Council The existing organization established at the provincial, city and municipal levels created pursuant to PD 1566 to carry out relief operations, rehabilitation and related activities during and after the occurrence of a calamity.

SECTION 4. DUTIES/RESPONSIBILITIES Local Chief Executive -

a.1 Formulate and submit a Local Calamity and Disaster Preparedness Plan to the Local Disaster Coordinating Council for approval; a.2 Carry out emergency measures as maybe necessary before, during and after the occurrence of calamity; a.3 Ensure that the 5% calamity appropriation shall be included in the annual budget of the LGU. a.4 Recommend to the Local Sanggunian the declaration of a state of calamity in the area; a5. As concurrent chairman of the LDC, monitor the use and disbursement of the local calamity fund: b.1 The Calamity Fund shall be utilized for the relief, reconstruction, rehabilitation, and other works or services in connection with the calamities which may occur during the budget year. Provided, that such fund shall be used/utilized only in the area of the LGU affected by the disaster or calamity as determined and declared under the state of calamity by the Sanggunian concerned by way of a resolution; b.2 A portion of the Calamity Fund may also be authorized to be used by the LGU concerned to provide financial assistance to other LGUs whose area or portion thereof had been declared under the state of calamity by its Sanggunian; b.3 In case of fire or conflagration, the Calamity Fund or portion thereof, shall be utilized only for relief operation. b.4 Any unexpected balance of the Calamity Fund at the end of the Current Year shall be revert to the Inappropriated Surplus for reappropriation during the succeeding budget. Provided, that appropriation for capital outlays shall remain valid until fully spent or reverted: Provided, Further, that in cases as may be determined by the Sangguniang concerned, the unexpended balance of the maintenance and other operating expenses portion of the aforesaid fund to support for the relief, rehabilitation, reconstruction and other works or services undertaken during the year in connection with the occurrence of the calamities, the effective implementation of which may extend beyond the Calendar Year, may be used and made available during

the succeeding year subject to accounting and auditing rules/regulations being observed for the purpose. b.5 The Local Treasurer shall prepare and submit a report on the utilization/disbursement of the calamity fund, duly approved by the Local Chief Executive to the Sanggunian concerned, Commission on Audit and Local Development Council copy furnished the Local Disaster Coordination Council. SECTION 8. PROCEDURAL GUIDELINES a) In case of calamity and upon the recommendation of the Local Chief Executive, the Sanggunian concerned shall immediately convene within hours from the occurrence of the calamity and pass a Resolution declaring. Also adopt measures to protect the lives and properties in the area and implement disaster mitigation measures. a) The Sanggunian Bayan Resolution, embodying the declaration need to not be reviewed and approved by the Sangguniang Panlalawigan. However, when the total province is being affected by the calamity, the Sanggunian Panlalawigan upon recommendation of the Provincial Governor, declare the whole province as under the state of calamity and the Sangguniang Bayan of the respective municipalities need not declare their areas as calamity areas. b) The allotment from the 5% Calamity Fund shall be released by the Local Budget Officer within 24 hours from the occurrence of the calamity upon presentation of the disbursement vouchers duly approved by the authorities concerned and supported by Sangguian Resolution and LDCC estimates based on surveys of the extent of damages. c) In case of actual calamity and pending actual declaration of such thru a resolution by the Sanggunian concerned that the area is under the state of calamity, the local chief executive may draw cash advances from the general fund subject a replenishment after receipt of the Resolution of the Sanggunian concerned declaring the area under the state of calamity, subject to existing auditing and accounting rules and regulations. However such cash advances shall not exceed 50% of the total calamity fund. SECTION 7. SEPARABILITY CLAUSE. It is for any reason, or reasons, any part of provisions of the IRR shall be unconstitutional or invalid, other parts o f provision thereof which are not affected thereby shall continue to be in full force and effect. SECTION 8. REPEALING CLAUSE. All executive orders, administrative issuances, memorandum circulars herewith are hereby repeated accordingly. SECTION 9 EFFECTIVITY This IRR shall take effect immediately.

Utilization of 5% Local Calamity Fund

BDM-DILG Joint Memorandum Circular No. 2003-1 Dated 20 March 2003 & No. 2003-2 dated 24 July 2003

DEPARTMENT OF BUDGET AND MANAGEMENT DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT JOINT MEMORANDUM CIRCULAR NO. 2003 1 March 20, 2003 TO ALL PROVINCIAL GOVERNORS; CITY AND MUNICIPAL MAYORS; BARANGAY CHAIRMEN; NATIONAL/PROVINCIAL/CITY/MUNICIPAL PRESIDENTS, LEAGUE OF PROVINCES/CITIES/MUNICIPALITIES AND BARANGAYS; AND OTHER OFFICIALS CONCERNED :USE OF LOCAL CALAMITY FUND APPROPRIATION FOR MAN-MADE DISASTER RELIEF AND MITIGATION

SUBJECT 1.0

2.0

This joint circular is issued to clarify the utilization of the annual lump appropriations of local government units for relief, rehabilitation, reconstruction and other works or services in connection with calamities which may occur during the budget year, mandated under Section 324 (d) of RA No. 7160., otherwise known as the Local Government Code of 1991, as amended by RA No. 8185. Said appropriation may be validly used for relief, rehabilitation, reconstruction and other works or services in connection with man-made disasters resulting from unlawful acts of insurgents, terrorists and other criminals as well as for disaster preparedness and other pre-disaster activities. Such relief, rehabilitation, reconstruction and other works or services including pre-disaster activities in connection with such man-made disasters may, at the discretion of the local government unit concerned, include the following: 2.1 2.2 2.3 Medical assistance, death and funeral benefits to the victims, their dependents and immediate families, including victims who are Overseas Filipino Workers (OFWs) Financial assistance and other services for medical, rescue and relief workers who have been tasked to attend to the victims. Preparation of relocation sites/facilities, disaster preparedness training and other pre-disaster activities.

3.0 4.0 5.0

It is understood that the guidelines and procedures prescribed under the Rules and Regulations Implementing RA No. 8185 governing the allocation and utilization of local Calamity Fund appropriations shall be strictly observed. This joint circular shall take effect immediately. Please be guided accordingly.

LEGAL BASIS OF 5% CALAMITY FUND 1. Section 324 (d) of RA No. 7160 2. RA No. 8185 (amending Sec. 324 (d) of RA No. 7160) dated 06-11-1996 3. Joint DILG DBM Memorandum Circular No. 2003-1 (dated 3-20-2003) 4. Joint DILG DBM Memorandum Circular No. 2003-2 (dated 07-24-03)

Utilization of Five-Percent (5%) Calamity Fund

Speaker: Mr. Romeo T. Melad Regional Director Department of Budget & Management, Region X Venue: Crown Regency Hotel, V. Rama St., Cebu City April 20, 2006

Utilization of Five-Percent (5%) Calamity Fund

Sec. 324 (d) of R.A. 7160 provides: Sec. 324. Budgetary Requirements - The budget of the local government units of any fiscal year shall comply with the following requirements: X X X (d) Five percent (5%) of the estimated revenue from regular source shall be set aside as an annual lump sum appropriation for unforeseen expenditures arising from the occurrence of calamities: Provided, however, that such appropriation shall be used only in the area, or a portion thereof, of the local government unit or other areas declared by the President in a state of calamity.

Republic Act (RA) No. 8185 dated June 11, 1996

An act Amending Section 324 (d) of RA No. 7160, otherwise known as the Local Government Code of 1991
Sec. 324 (d) R.A. 7160 is hereby amended to read as follows:

(d) Five percent (5%) of the estimated revenue from regular sources shall be set aside as an annual lump sum appropriation for relief, rehabilitation, reconstruction and other works and services in connection with calamities which may occur during the year: Provided, however, that such fund shall be used only in the area, or a portion thereof, of the local government unit or other areas affected by a disaster or calamity, as determined and declared by the local sanggunian concerned.

Republic Act (RA) No. 8185 dated June 11, 1996

An act Amending Section 324 (d) of RA No. 7160, otherwise known as the Local Government Code of 1991
Calamity shall be defined as a state of extreme distress or misfortune, produced by some adverse circumstance or event or any great misfortune or cause or loss of misery caused by natural forces. In case of fire or conflagration the calamity fund shall be utilized only for relief operations. The local development council shall monitor the use and disbursement of the local calamity fund.

DBM-DILG JMC No. 2003-1 dated March 20, 2003

Use of Local Calamity Fund Appropriation for Man-made Disaster Relief and Mitigation
1.0 This joint circular is issued to clarify the utilization of the annual lump sum appropriations of the local government units of relief, rehabilitation, reconstruction and other works or services in connection with calamities which may occur during the budget, mandated under section 324 (d) of RA 7160 otherwise known as the Local Government Code of 1991, as amended by RA 8185. Said appropriation may be validly used for relief, rehabilitation,

DBM-DILG JMC No. 2003-1 dated March 20, 2003

Use of Local Calamity Fund Appropriation for Man-made Disaster Relief and Mitigation
reconstruction and other works on services in connection with man-made disaster resulting from unlawful acts of insurgents, terrorists and other criminals as well as disaster preparedness and other pre-disaster activities.

DBM-DILG JMC No. 2003-1 dated March 20, 2003

Use of Local Calamity Fund Appropriation for Man-made Disaster Relief and Mitigation
2.0 Such relief, rehabilitation, reconstruction and other works or services including pre-disaster activities in connection with such man-made disasters may, at the discretion of the local government unit concerned, include the following: Medical Assistance, death and funeral benefits of the victims, their dependents and immediate families, including victims who are Overseas Filipino Workers.

DBM-DILG JMC No. 2003-1 dated March 20, 2003

Use of Local Calamity Fund Appropriation for Man-made Disaster Relief and Mitigation
Financial assistance and other services for medical, rescue and relief workers who have been tasked to attend to the victims. Preparation of relocation sites/facilities, disaster preparedness training and other pre-disaster activities.

DBM-DILG JMC No. 2003-2 dated July 24, 2003

Clarificatory Guidelines on the Use of Local Calamity Fund
1.0 Pursuant to the provisions of R.A. 8185, otherwise known as An Act Amending Section 324 (d) of R.A. 7160, otherwise known as the Local Government Code of 1991, its implementing Rules and Regulations, and Executive Order No. 201 dated April 26, 2003, it is hereby classified that the 5% local calamity fund of every LGU shall be utilized only for the relief, reconstruction, rehabilitation and other works and services, in connection with a calamity occurred during the budget year.

DBM-DILG JMC No. 2003-2 dated March 20, 2003

Clarificatory Guidelines on the Use of Local Calamity Fund
Under the aforesaid Act, calamity has been defined as a state of extreme distress or great misfortune caused by adverse event or natural force, causing widespread loss or extensive damage to livestock, lives, crops and properties. Accordingly, any adverse event, such as but not limited to, acts of terrorism and spread of SARS or other endemics, that could fall within the ambit of the definition of calamity defined by law, can be a legal basis of LGUs concerned to declare their own state of calamity.

DBM-DILG JMC No. 2003-1 dated July 24, 2003

Clarificatory Guidelines on the Use of Local Calamity Fund
2.0 The calamity fund may also be utilized for undertaking disaster preparedness activities and measures, provided that the sanggunian concerned shall declare an imminent danger of calamity. In extreme cases and under extra-ordinary circumstances, such as but not limited to, acts of terrorism, and outbreak of dangerous and highly communicable diseases, such as SARS, the calamity fund may also be utilized for disaster preparedness without need of a sanggunian declaration of calamity provided that there is a Presidential proclamation of the existence of an adverse event that would warrant the declaration

DBM-DILG JMC No. 2003-1 dated March 20, 2003

Clarificatory Guidelines on the Use of Local Calamity Fund
of the entire country to be under the state of national calamity, which needs to be prevented and suppressed.

FUNDING DISASTER MANAGEMENT PROGRAMS/PROJECT/ ACTIVITIES

Local Calamity Fund RA No. 7160 Local Government Code of 199

FUNDING DISASTER MANAGEMENT PROGRAMS/ PROJECTS ACTIVITIES

What are the LEGAL INSTRUMENTS in funding disaster management programs/projects/activities? -NATIONAL CALAMITY FUND -LOCAL CALAMITY FUND

LOCAL CALAMITY FUND

REPUBLIC ACT NO. 7160

Local Government code of 1991

Excerpt from Republic Act 7160: Local Government Code of the Philippines Section 324: Budgetary Requirements The budgets of local government units for any fiscal year shall comply with the following requirements: (a) The aggregate amount appropriated shall not exceed the estimates of income; (b) Full provisions shall be made of any statutory and contractual obligations of the local government units concerned: Provided, however, that the amount of appropriations for debt servicing shall not exceed twenty percent (20%) of the regular income of the local government unit concerned; (c) in case of provinces, cities, and municipalities, aid to component barangays shall be provided in amounts of not less than One Thousand Pesos (P1,000.00) per barangays, and (d) Five percent (5%) of the estimated revenue from regular sources shall be set aside as an annual lump sum appropriations for unforeseen expenditures arising from the occurrence of calamities: Provided, however, that such appropriations shall be used only in the area, or a portion thereof, of the local government unit or other areas declared by the President in a state of calamity

REPUBLIC ACT NO. 8185

Section 1. Section 324 (d) of RA 7160 is hereby amended to read as follows:

An Act Amending Section 324 (d) of Republic Act No. 7160, otherwise known as the Local Government of 1991)

SIGNED AND APPROVED BY FORMER PRES. RAMOS ON 11 JUNE 1995

(d) Five Percent (5%) of the estimated revenue from regular sources shall be set aside as annual lump sum appropriations for relief, rehabilitation, reconstruction and other works or services in connection with calamities which may occur during the budget year. PROVIDED, HOWEVER, That such fund shall be used only in the area or a portion thereof, of the local government unit or other areas affected by a disaster or calamity, as determined and declared by the local Sanggunian concerned.

LOCAL CALAMITY FUND

REPUBLIC ACT NO. 7160

Local Government code of 1991

IMPLEMENTING RULES AND REGULATIONS OF RA 8185 SECTION 6. ALLOCATION AND UTILIZATION OF FIVE PERCENT (5%) LUMP SUM APPROPRIATIONS FOR CALAMITY FUND. A. Allocation The 5% Calamity Fund shall be set aside as annual lump sum appropriations every calendar year in the annual budget of LGUs to be allocated in the area affected by a disaster of calamity, as determined and declared by the Local Sanggunian concerned as calamity area. LGUs may also allocate/use a portion of the 5% Calamity Fund to other affected areas on condition that the said areas are declared as under state of calamity by the Sanggunian concerned.

b.4 Any unexpended balance of the Calamity Fund at the end of the current year shall revert to the unappropriated Surpuls for the reappropriation during the succeeding budget year: PROVIDED, that appropriations for capitals outlays shall remain valid until fully spent or reverted: PROVIDED, FURTHER, that in cases as may be determined by the Sangguniang concerned, the unexpended balance of the maintenance and other operating expenses portion of the aforesaid fund in support for the relief, rehabilitation, reconstruction and other works or services undertaken during the year in connection with the occurrence of the calamities, the effective implementation of which may extend beyond the Calendar Year, may be used and made available during the succeeding year subject to accounting and auditing rules/regulations being observed for the purpose. The Local Treasurer shall prepare and submit a report on the utilization/disbursement of the calamity fund, duly approved by the Local Chief Executive to the Sanggunian concerned, Commission on Audit and Local Development Council, copy furnished the Local Disaster Coordinating Council.

B) Usage of the 5% Calamity Fund b.1 The Calamity Fund shall be utilized for the relief, reconstruction, rehabilitation, and other works or services in connection with the calamities which may occur during the budget year. Provided, that such fund shall be used/utilized only in the area of the LGU affected by the disaster or calamity as determined and declared under the state of calamity by the Sangguniang concerned by way of a resolution; b.2 A portion of the Calamity Fund may also be authorized to be used by the LGU concerned to provide financial assistance to other LGUs whose area or portion thereof had been declared under the state of calamity by its Sanggunian; b.3 In case of fire or conflagration, the Calamity Fund or portion thereof, shall be utilized only for relief operation/s.
b.5

Section 6. PROCEDURAL GUIDELINES

Cont. Section 6 c) In case of actual calamity and pending actual declaration of such thru a resolution by the Sanggunian concerned that the area is under the state of calamity, the Local Chief Executive may draw cash advances from the general fund subject to replenishment after receipt of the Resolution of the Sanggunian concerned declaring the area under the state of calamity, subject to existing auditing and accounting rules and regulations. However, such cash advances should not exceed 59% of the local calamity fund.

a) In case of calamity and upon recommendation of the Local Chief Executive, the Sanggunian concerned shall immediately convene within hours from the occurrence of the calamity and pass a Resolution declaring the area under state of calamity and Implement disaster mitigation measures. b) The sangguniang Bayan Resolution embodying the declaration need not be reviewed and approved by the Sangguniang Panlalawigan. However, when the total province is being affected by calamity, the Sangguniang Panlalawigan, upon recommendation of the Provincial Governor, declares the whole province as under the state of calamity and the Sangguniang Bayan of the respective municipalities need not declare their areas as calamity areas. c) The allotment from the 5% Calamity Fund shall be released by the Local Budget Officer within 24 hours from the occurrence of the calamity upon presentation of the disbursement vouchers duly approved by the authorities concerned and supported by Sanggunian Resolution and LDCC estimates based on surveys of the extent of damages.

JOINT DBM-DILG MEMORANDUM CIRCULAR NO. 2003-1 dtd 20 March 2003

For: All Provincial Governors; City and Municipal Mayors; Barangays Chairmen, National/Provincial/Municipal Presidents, League of Provinces/Cities/Municipalities and Barangays; and other Officials Concerned

Subject:

Use of Local Calamity Fund Appropriation for Man-Made Disaster Relief and Mitigation

1. This Joint Circular is issued to clarify the utilization of the annual lump sum appropriations of local government units for relief, rehabilitation, reconstruction and other works or services in connection with calamities which may occur during the budget year, mandated under Section 324 (d) of RA 7160 Said appropriation may be validly used for relief, rehabilitation, reconstruction and other works or services in connection with man-made disasters resulting from unlawful acts of insurgents, terrorists and other criminals as well as for disaster preparedness and other pre-disaster activities.

2. Such relief, rehabilitations, reconstruction and other works or services including pre-disaster activities in connection with such man-made disasters may, at the discretion of the local government unit concerned, include the following:

JOINT DBM-DILG MEMORANDUM CIRCULAR NO. 2003-1 dtd 20 March 2003

For: All Local Chief Executives and Members of all Sanggunians Subject: Clarificatory Guidelines on the use of the 5% Local Calamity Fund

2.1 Medical Assistance, death and funeral benefits to the victims, their dependents and immediate families, including victims who are Overseas Filipino Workers (OFWs)

2.2 Financial assistance and other services for medical, rescue and relief workers who have been tasked to attend to the victims

2.3 Preparation of relocation sites/facilities, disaster preparedness training and other pre-disaster activities.

1.0 Pursuant to the provisions of RA 8185, otherwise known as An Act Amending Section324 (d) of RA 7160, otherwise known as the Local Government Code of 1991,its Implementing Rules and Regulations, and Executive Order No. 201 dated 26 April 2003, it is hereby clarified that the 5% Local Calamity Fund of every local government unit (LGU) shall be utilized only for the relief, reconstruction, rehabilitation and other works and services, in connection with a calamity which occurred during the budget year. Under the aforesaid Act, calamity has been defined as a state of extreme distress or great misfortune caused by adverse event or natural force, causing widespread loss or extensive damage to livestocks, lives, crops and properties. Accordingly, any adverse event such as but not limited to acts of terrorism and spread of Severe Acute Respiratory Syndrome (SARS) or other endemics, that could fall within the ambit of the definition of calamity defined by law can be a legal basis for LGUs concerned to declare their own state of calamity.

2.0 The calamity fund may also be utilized for undertaking disaster preparedness activities and measures provided that the Sanggunian concerned shall declare an imminent danger of calamity in extreme cases and under extraordinary circumstances such as but not limited to acts of terrorism and outbreak of dangerous and highly communicable diseases, such as SARS, the calamity fund may also be utilized for disaster preparedness without need of a Sanggunian declaration of calamity provided of an adverse event that would warrant the declaration of the entire country to be under the state of national calamity, which needs to be prevented and suppressed.

COA CIRCULAR LETTER NO. 2003-93

TRANSACTION

ACCT. CODE
760

ACCOUNT TITLE

Accounting Guidelines on the Utilization of 5%

(a) Medical, assistance, death and funeral benefits to the victims, dependents and Immediate families, including Overseas Filipino Workers (OFWs)

For Supplies Used: Medical, Dental and Laboratory Supplies Expenses 878 758 759 878 (B) Financial assistance, and other services for medical, rescue and relief workers who have been tasked to attend to the victims For Cash Assistance Donations For Food Items issued: Food Supplies Expenses For Drugs & Medicines Issued: For Cash Assistance: Donations

Local Calamity Fund Appropriation under RA No. 8185 Dated November 13, 2003 All authorized expenditures chargeable to the LCF shall be recorded in the General Fund books of accounts. The following expenses and/or Property, Plant and Equipment/Public Infrastructures accounts prescribed in the Revised NGAS Chart of Accounts under COA Circular 2003-001 dated June 17, 2003 shall be used.

COA Circular Letter No. 2003-003 dated November 13, 2003

Accounting Guidelines on the Utilization of 5% Local Calamity Fund Appropriation under RA No. 185

Republic of the Philippines COMMISSION ON AUDIT Commonwealth Avenue, Quezon City, Philippines GOVERNMENT ACCOUNTING & FMIS CIRCULAR LETTER No. Date : : 2003-03 November 13, 2003

TO : All Provincial Governors, City and Municipal Mayors and Barangay Chairmen; National/Provincial/City/Municipal Presidents, League of Provinces/Cities/Municipalities and Barangays; Chief Accountants/Heads of Accounting Units; COA Local Government Audit Cluster Directors/Regional Cluster Directors; and All Others Concerned. SUBJECT: (RA) no. 8185 Accounting Guidelines on the Utilization of 5% Local Calamity Fund Appropriation under Republic Act

1.0 This Circular Letter is issued to provide accounting guidelines on the utilization of the 5% Local Calamity Fund Appropriation for relief, rehabilitation, reconstruction and other works and services in connection with calamities which may occur during the budget year, as provided under Section 324 (d) of RA No. 7160 otherwise known as the Local Government Code of 1991, as amended by RA No. 8185. 2.0 All authorized expenditures chargeable to the Local Calamity Fund shall be recorded in the General Fund books in accounts. The following expense and/or Property, Plant and Equipment/Public Infrastructures accounts prescribed in the Revised NGAS Chart of Accounts under COA Circular 2003-03 dated June 17, 2003 shall be used. Transaction (a) Medical, assistance, death and funeral benefits to the victims, dependents and immediate families, including Overseas Filipino Workers (OFWs) (b) Financial assistance and other services for medical, rescue and relief workers who have been tasked to attend to the victims. Acct. Code Account Title

760

For supplies issued: Medical, Dental and Laboratory Supplies Expenses For cash assistance: Donations For food items issued: Food Supplies Expenses For drugs and medicines issued: Drugs and Medicines Expenses For cash assistance: Donations Appropriate Plant, Property and a Equipment accounts Appropriate Public Infrastructures accounts Appropriate Repairs and Maintenance accounts Training Expenses Other Maintenance and Other Expenses

878 758 795 878

(c) Rehabilitation and Reconstruction of Intrastructures

202 To 250 251 To 260 802 To 860

(d) Disaster preparedness training and other activities

753 969

3.0 The disbursement procedures, recording and reporting of the aforementioned expenditures shall be in accordance with existing accounting and auditing rules and regulations. 4.0 The Circular Letter shall take effect immediately.

Republic Act. No. 9336 GAA FY 2005

Special Provisions in the GAA for the use of the National Calamity Fund

TRANSACTION Appropriate Plant, Property and Equipment Accounts Appropriate Public Infrastructure Accounts

ACCT. CODE

ACCOUNT TITLE

(c) Rehabilitation and Reconstruction of Infrastructures

202 to 250

251 to 260

802 to 860

The disbursement procedures, recording and reporting of the aforementioned expenditures shall be in accordance with existing accounting and auditing rules and regulations.

(d) Disaster Preparedness Training and Other Activities

753

Appropriate Repairs & Maintenance Accounts Training Expenses, Other Maintenance and Operating Expenses

NATIONAL CALAMITY FUND

GENERAL APPROPRIATIONS ACT FY 2005

XXXVIII. CALAMITY FUND

REPUBLIC ACT NO. 9336

General Appropriations Act FY 2005

For aid, relief and rehabilitation services to communities/areas affected by man-made and natural calamities, and repair and reconstruction of permanent structures, including other capital expenditures for disaster operations and rehabilitation activities, as indicated hereunder __________

P700,000,000.0

New Appropriation by Purpose Capiital Outlays Total

Current Operating Expenditures

Maintenance & Other Operating Expenses

SPECIAL PROVISIONS IN THE GAA FOR THE USE OF THE NATIONAL CALAMITY FUND

Aid, Relief and Rehabilitation Services to Communities/Areas Affected by Calamities, including Training of Personnel, and other Pre-disaster Activities Repair and Reconstruction of permanent Structures including Capital Expenditures for Pre- disaster Operations, Rehabilitations and Other Related Activities. TOTAL NEW APPROPRIATIONS

1. USE AND RELEASE OF FUND. The amount appropriated herein may be made available for relief, rehabilitation, reconstruction and other works or services in connection with natural calamities, epidemics as declared by the DOH, as well as disasters resulting from unlawful acts of insurgents, terrorists and other criminals, which may occur during the budget year or those that occurred in prior years, including pre-disaster activities such as preparation of relocation sites/facilities, and training of personnel engaged in direct disaster management.

PROVIDED, That the beneficiaries of relief, rehabilitation, reconstruction and other works or services in connection with specific calamities, epidemics and disasters already covered by special laws shall not be entitled to support for assistance from the Calamity Fund until the appropriations that have been originally availed of shall have been fully expended. Releases from this Fund shall be made directly to the appropriate implementing agencies and/or Local Government Units in accordance with the recommendation of the NDCC and upon approval of the President of the Philippines.

2. QUICK RESPONSE FUND. Of the amount appropriated for aid, relief and rehabilitation services to communities/areas affected by natural calamities, epidemics as declared by the DOH, as well as disasters resulting from unlawful acts of insurgents, terrorist, and other criminals, including training of personnel, and other pre-disaster services. Twenty five (25%) percent shall be immediately released to the DSWD. Twenty Percent (20%) to the OCD as QRFs Likewise, of the amount appropriated for repair and reconstruction of permanent structures,

PROVIDED. FURTHER, That QRF shall be released immediately by the DBM upon approval by the President and shall be used exclusively as a stand-by fund to be utilized in connection with calamities, epidemics and disasters occurring during the year and primarily for relief and rehabilitation of affected communities/areas to normalize as quickly as possible the situation and living condition of the people in such communities/areas: AND PROVIDED, FINALLY, That agencies concerned availing of their QRFs shall not pre-allocate the same to their subordinate agencies and shall report to NDCC the status of the utilization of such Fund on a quarterly basis, copy furnished the DBM.

Twenty percent (20%) shall be immediately released to the DPWH and Fifteen percent (15%) to the DND as QRFs. PROVIDED, That the other government agencies concerned may be allocated their own QRFs on need basis upon recommendation of the NDCC.

General Summary of Calamity Fund

Capiital Outlays Total

Department/Agencies with QRF under the 2005 General Appropriations Act (GAA) Out of the National Calamity Fund MOOE DSWD P87.5 OCD 70.0 Out of the National Calamity Fund Capital Outlay (CO) DPWH P65.00 DND 48.75

Current Operating Expenditures

Maintenance & Other Operating Expenses P325,000,000 P700,000,000

CALAMITY FUND

P375,000,000

Total New Appropriations, Calamty Fund P325,000,00

P375,000,000

P700,000,000

Quick Response Fund (QRF)

GENERAL APPROPRIATIONS ACT, FY 2005

*SEC, 36, Disaster Prevention, Mitigation, & Preparedness. All departments, bureaus, offices and agencies are authorized to use their appropriations to implement projects designed to address disaster prevention, mitigation, and preparedness activities pursuant to PD 1566. Implementation of this section shall be in accordance with the guidelines issued by the NDCC in coordination with the DBM.

AGENCY/DEPT DSWM DPWH OCD DND TOTAL

CY 2005 (In million P) 87.500 65.000 70.000 48.750 271.250

MEMORANDUM OF THE PRESIDENT Dated 10 February 1999 Subject: GUIDELINES ON PROGRAMMING AND USE OF CALAMITY FUND THE THE
The Secretary of the Department of Budget and Management and the Chairman of the National Disaster Coordinating Council (NDCC) is directed to observe the following general guidelines for the programming and use of the calamity fund:

1. USE AND RELEASE OF FUND. The amount appropriated herein may be made available for relief, rehabilitation, reconstruction and other works or services in connection with natural calamities, epidemics as declared by the DOH, as well as disasters resulting from unlawful acts of insurgents, terrorists and other criminals, which may occur during the budget year or those that occurred in prior years, including pre-disaster activities such as preparation of relocation sites/facilities, and training of personnel engaged in direct disaster management.

NDCC MEMO NO.2 SERIES 1999

It shall be programmed as an interventive fund to allow the President to respond to urgent needs during emergency situations. Repair and maintenance costs of government Infrastructure shall be sourced, to the extent possible, from the regular budgetary outlay for repair and maintenance under the concerned agencys projects. Proposal for funding under the Calamity Fund shall include justifications with regards to the following: urgency of the project such as its delay will result to loss of lives and property; high Impact to community; and non-availability of funding source other than the Calamity Fund Post evaluation report to the Office of the President on the implementation of the project using Calamity Fund shall be required from the concerned agencies.

The National Calamity Fund can be used for the following purposes: Aid, relief, rehabilitation services Pre-disaster activities Capital expenditures National Calamity Fund shall be used in the order of priority: Priority I For urgent and emergency relief operations and emergency repair and rehabilitation of vital public Infrastructures and lifelines damaged by calamities. Priority II For repair, rehabilitation and reconstruction of other damaged public infrastructures that are not emergency in nature Priority III For pre-disaster activities outside the regular budget of NGAs/LGUs Repair, rehabilitation or reconstruction of government buildings, public hospitals, public schools, municipal and city halls. Capitol building, public markets, sport complex, multi-purpose buildings and the like damaged by fire shall not be funded by NCF.

Evaluation and Approval

1. USE AND RELEASE OF FUND. The amount appropriated herein may be made available for relief, rehabilitation, reconstruction and other works or services in connection with natural calamities, epidemics as declared by the DOH, as well as disasters resulting from unlawful acts of insurgents, terrorists and other criminals, which may occur during the budget year or those that occurred in prior years, including pre-disaster activities such as preparation of relocation sites/facilities, and training of personnel engaged in direct disaster management.

Processed NCF requests shall be recommended by the NDCC Chairman to the Office of the President, Indicating among others, the program or schedule of fund release to support the project; The President may either approve or disapprove the NDCC recommendations; Approved recommendations shall be sent directly to the Office of Civil Defense-National Disaster Coordinating Council (OCD-NDCC). The NDCC shall request the Department of Budget and Management (DBM) for the release and issuance of the Special Allotment Release Order (SARO) and Notice of Cash Allocation (NCA)

DOCUMENTS TO PREPARE IN REQUESTING FINANCIAL ASSISTANCE FROM THE NATIONAL CALAMITY FUND

1. Cover Letter addressed to the President (Her Excellency President Gloria Macapagal-Arroyo) attention to the NDCC Chairman (Sec. Avelino J. Cruz, Jr.) and the OCD-Administrator/Excecutive Officer (Mgen Glenn J. Rabonza) a) State the hazard b) What was the ensuing disaster? c) How much is the amount being requested? d) How much is the counter-part fund to be provided by the local government unit? e) Who will Implement the project?

2. Declaration of State/imminent danger of calamity by the appropriate local Sanggunian concerned.

THE NATIONAL CALAMITY FUND VS. LGUs REQUESTED AMOUNTS VS. ACTUAL RELEASES

3. Work and Financial Plan duly signed by the concerned local government Engineer.

4. Disaster Coordinating Council Reports on the Damages (including pictures).

5. Resolution/Certification that the project will be completed considering the amount to be provided by the National Calamity Fund

CF APPROPRIATIONS VS. RELEASES/ /VS. AMOUNT REQUESTED FOR CY 2001 - 2005

CF APPROPRIATIONS VS. RELEASES FOR 1996 May 2004

Year Appropriations (P) Releases (P)

Year

Appropriations( P) 9.037 B
# of request rcvd 428

Releases (P)

Amount Rqstd (LGUs/NGAs)(P)

2001 7.621 B
# of request rcvd 495

998,500,000.00

994,478,835.00

2002 5.59 B
# of request rcvd 681

800,000,000.00

720,053,500.00

1996 1997 1998 1999

2,800,000,000.00 2,000,000,000.00 2,000,000,000.00 1,000,000,000.00

2,520,351,192.00 1,943,064,850.00 1,990,076,369.00 962,692,798.00

2003 7.25 B
# of request rcvd 474

700,000,000.00

699,032,000.00

2004 4.92 B
# of request rcvd 336

700,000,000.00

700,000,000.00

2000 2001 2002 2003 2004

(Jan-May)

998,500,000.00 998,500,000.00 800,000,000.00 700,000,000.00 700,000,000.00

997,759,040.00 994,478,835.00 720,053,500.00 699,032,000.00 225,837,500.00

2005

700,000,000.00

700,000,000.00

CF APPROPRIATIONS VS RELEASES COST OF DAMAGE VS. AMOUNT REQUESTED FOR CY 2001 - 2003

10000

9000

8000

7000

6000

5000

4000

3000

2000

1000 COST OF DAMAGE CY 2003

0 APPROPRIATIONS

CY 2001

CY 2002

NDCC MEMORANDUM Number 04 s, 1998

Amended Policies, Procedures and Criteria for the Declaration of a State of Calamity

Republic of the Philippines NATIONAL DISASTER COORDINATING COUNCIL Department of National Defense Camp Gen. Emilio Aguinaldo, Quezon City MAR 04, 1998 NDCC Memo Order Series of 1998 TO : NDCC Members Chairman, RDCCs and Local DCCs Amended Policies, Procedures and Criteria for the Declaration of a State of Calamity

SUBJECT:

REFERENCES: NDCC Memo Order Nos. 3 and 9, s-1989 and Sec. 1 of RA 8185 s-1996 and Sec6 (a) of IRR. POLICIES: a. To uplift the morale of disaster victims and hasten the return to normal in the disaster-stricken areas, the entire resources of both the national and local government should be mobilized and utilized to the maximum extent. Relief and rehabilitation efforts should likewise be facilitated with the full participation of all concerned sectors of society. b. The declaration of a state of calamity either by the local Sanggunian or by the President of the Philippines shall be based on the extent of casualties and/or damages in accordance with the guidelines and criteria set forth in this Memorandum Order. c. If means declared under a state of calamity either by the President of the Local Chief Executives (LCEs), the five percent (5%) reserve fund for emergency operations shall be utilized for this purpose by the local government unit (LGU) concerned. National Calamity Funds may be released to augment local funds for relief and rehabilitation efforts of affected LGUs. PROCEDURES: a. Calamity Area Declaration by LGUs 1) Whenever a disaster or calamity occurs, the local Disaster Coordination Council (DCC) shall conduct a survey of the affected area within 24 hours upon the impact to determine the extent of casualties and damages brought about by the calamity.

2) Based on the damage assessment and evaluation of the DCC, the LCE shall recommend to the local Sanggunian the declaration of a state of calamity in the disaster area, together with appropriate disaster mitigation measures. 3) Within twenty four (24) hours from the occurrence of the calamity and acting on the basis of the recommendation of the LCE, the local Sanggunian concerned shall immediately convene and pass a Resolution declaring their area under a state of calamity and adopt measures to protect the lives and properties in the area. 4) When two or more barangays are affected by a disaster, the Sanggunian Bayan or Panlunsod, upon the recommendation of the Municipal/City Mayor, may declare the entire municipality or city under a state of calamity. The Sanggunian Resolution embodying the declaration need not be reviewed or approved by the Sangguniang Panlalawigan. 5) When two or more municipalities or cities are affected by a disaster, the Sanggunian Panlalalwigan, upon the recommendation of the Provincial Governor, may declare the entire province or a portion thereof under a state of calamity. The Sanggunian Bayan/Sanggunian Panlunsod of the affected town or city need not declare their areas as calamity areas. 6) The concerned Sanggunian shall immediately furnish their respective RDCCs and the NDCC a copy of the Sanggunian Resolution embodying the calamity area declaration. Calamity Area Declaration by the President of the Philippines 1. When two or more provinces or chartered cities are affected by a calamity, the National Disaster Coordinationg Council shall recommend to the President the declaration of a state of calamity over these areas, including the release of calamity funds, if necessary, and mplementation of appropriate remedial measures.

CRITERIA FOR CALAMITY AREA DECLARATION A city, municipality, province or region may be declared under a State of Calamity whenever two or more of the following conditions brought about the fire of catastrophic magnitude, destructive typhoons, tornadoes, earthquakes, tsunamis, volcanic eruptions, floods lasting for at least four (4) days, or drought affecting crop production are present.

1) At least twenty percent ( 20 %) of the population are affected and in need of emergency assistance or those dwelling units have been destroyed. 2) A great number or at least 40% of the means of livelihood such as banoas, fishing boars, vehicles and the like are destroyed. 3) Major roads and bridges are destroyed and impossible for at least a week, thus disrupting the flow of transport and commerce. 4) Widespread destruction of fishponds, crops, poultry and livestock, and other agricultural products, and 5) Disruption of lifelines such as electricity, potable water system, transport system communications system and other related systems which cannot be restored within one (1) week, except for highly-urbanized areas where restoration of the above lifelines cannot be made within twenty-four (24) hours. For epidemics or outbreak of disease, a city or municipality, province or region may be declared under a state of calamity based on the following: 1) There is an occurrence of an unusual (more than the previously expected) number of cases of a disease in a given area or among a specific group of people over a particular period of time. To determine whether the number is more than the expected, the number should be compared with the number of cases during the past weeks or months or a comparable period during the last few years). 2) There is a clustering of oases. A cluster is a group of oases in a given area over a particular time. DURATION OF CALAMITY AREA DECLARATION Calamity area declaration either by the President or the local Sanggunian may be enforced in the affected area for duration of one (1) year, unless the effects of the disaster is recurring or protracted, in which case, declaration shall be a continuing one. However, once 85% of the repair and rehabilitation works and services has been accomplished within one-year duration, the calamity area declaration may already be terminated or lifted by the President of the Local Sanggunian as the case maybe.

MEASURES TO BE UNDERTAKEN UPON THE DECLARATION OF STATE OF CALAMITY Upon the declaration of a state of calamity, the following remedial measures may be undertaken by the concerned national agencies/ LGs in order to mitigate the effects of the disaster and stabilize the situation in the disaster-stricken areas: a. Automatic imposition of price control. Monitoring, prevention and control of overpricing/profiteering and hoarding of prime commodities, medicines and petroleum product by the Local Price Coordination Council; (see 1 of R.A. 7851) b. Programming/reprogramming funds for the repair and safety-upgrading of public infrastructure and facilities; c. Allowing the granting or restructuring of loans by government financing or lending institution to bonafide victims of the disaster in accordance with their respective charters. The same deferment or moratorium shall be granted to corporate borrowers of aforesaid government credit institutions whose operations are seriously impaired by the calamity. d. Release of national calamity funds to agencies involved in relief operations and rehabilitation and restoration of damaged infrastructures as well as to affected LGUs. e. Release of Local Calamity Funds within the affected LGU or other areas affected by a disaster or calamity for relief, rehabilitation, reconstruction and other works or services. REPEALING CLAUSE Any provisions of pertinent Memorandum Orders or Circulars inconsistent herewith are deemed rescinded or modified accordingly EFFECTIVITY CLAUSE This Memorandum Order shall take effect upon approval