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RMC No. 01-2009: Publishes the full text of Circular Letter No. 2008-9 entitled “Guidelines Implementing Administrative Order No. 228 and the President’s Directive dated May 31, 2008”

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Summary

RMC No. 01-2009 publishes DBM Circular Letter No. 2008-9, the guidelines implementing Administrative Order No. 228 and the President’s Directive dated May 31, 2008, on using savings from electricity and fuel.

Key points

  1. Use of consumption savings. Entities that missed the required minimum 10% savings may use only 50% of their accumulated kWh and liters. Entities that reached 10% savings or more may use 100%.
  2. Authority to use savings. Agencies may use all savings from electricity and fuel budget provisions, which amends Section 3, Rule V of the IRR. Only qualified agencies that generated such savings may grant transportation and rice subsidy, and they may realign savings from other expenditure items if these are not enough.
  3. Validity and timing. Savings must stay within the two (2) year validity of allotments under GP No. 66 of the FY 2008 GAA, and savings tied to lapsed allotments from September 1, 2005 to December 31, 2006 are no longer valid. Realignment under GP No. 17 may be done only in the last quarter of the year.
  4. Order of priorities. Savings fund items in the order of Section 4 of Rule V of the IRR: energy efficiency improvements, shuttle vehicles, replacement service vehicles, citations or recognitions, and other benefits consistent with the Collective Negotiation Agreement.
  5. Process. Agencies submit their proposal to DOE through the EAT for verification. With a favorable recommendation they request realignment from DBM, which validates the savings and issues a SARO.

Who is affected

  • Government agencies that generated electricity and fuel savings
  • Qualified agencies granting transportation and rice subsidy

Deadlines and effectivity

  • Request to DBM on or before November 15 of the year
  • Savings computed from the 12-month period starting September 1, 2005 and every year thereafter
  • Realignment only in the last quarter of the year

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

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