1.         Purpose

To provide guidelines relative to the authority delegated by the President to the Secretary of Budget and Management to grant additional exemption on the filling of positions other than those specifically exempted under Section 2 of Administrative Order (AO) No. 100 and Item 3.2 of National Budget Circular No. 466.

2.         Guidelines

2.1                   Heads of agencies may fill the following positions whether on a permanent, temporary, casual or contractual basis:

2.1.1 Without need of DBM approval

2.1.1.1 medical and allied medical positions in hospitals;

2.1.1.2 uniformed personnel involved in national security and maintaining peace and order of the Armed Forces of the Philippines and the Philippine Coast Guard;

2.1.1.3 faculty positions in TEIs, HEIs and SUCs, Technical/Vocational Schools and Non- Chartered Tertiary Schools;

2.1.1.4 positions In Foreign-Assisted Projects (FAPs) and Locally-Funded Projects (LFPs).

2.1.1.5 positions of confidence appointment to which are coterminous with the tenure or based on the trust and confidence of the appointing authority or the officials they serve;

2.1.1.6 positions which are one of a kind such as the lone accountant or cashier, regardless of level, in an organizational unit equivalent to a bureau of an entity, or an operating unit as defined under National Budget Circular No. 469 including schools divisions, national high schools, Higher Education Institutions (HEIs), Technical Education Institutions (TEIs) and external campuses of State Universities and Colleges (SUCs);

2.1.1.7 information technology positions in the management information unit of an agency as indicated in the information Technology Group of the IOS;

2.1.1.8 positions for "local hires" of the Department of Foreign Affairs; and

2.1.1.9 positions in Government-Owned and -Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs) not receiving budgetary support/subsidy from the National Government (NG) starting by 1997.

2.1.2 Subject to approval of the Department of Budget and Management (DBM)

2.1.2.1 positions involved in national security and maintaining peace and order as indicated in the Defense and Security Service of the Index of Occupational Services, Position Titles and Salary Grades (IOS), except those under Item 2.1.1.2 hereof;

2.1.2.2 positions in newly created, reorganized or streamlined agencies as authorized by law or directed by the President and whose staffing patterns were approved in 1999 and before May 2000; and

2.1.2.3 positions which creation or conversion was approved by DBM in 1999 and before May 2000;

2.2       Requests for filling of positions under Item 2.1.2 hereof shall be supported with the following documents:

2.2.1 List of positions to be filled identified by Item Number as appearing in the staffing pattern approved by DBM and/or Personal Services Itemization/Plantilla of Personnel for FY 1999;

2.2.2 Justification for the proposed filling of positions;

2.2.3 Certification of the Financial Management Service Chief or Budget Officer and the Head of agency as to the source and availability of allocation for the proposed filling of positions; and

2.3       Filling of positions pursuant to this Circular and those that were previously authorized by the President outside of AO 100 shall be subject to the following conditions:

2.3.1 For National Government Agencies (NGAs) and SUCS

2.3.1.1 Only funded vacant positions may be filled and no additional release shall be made therefor;

2.3.1.2 Otherwise, the funding requirements for unfunded permanent positions shall be charged against personal services savings from released allotment.

2.3.1.3 The funding requirements for non-permanent positions shall be charged from their respective released lump sum appropriations except for those in FAPs and LFPs which shall be charged against their programmed appropriations; and

2.3.1.4 Those which have used savings for the filling of positions can no longer avail themselves of additional release of funds from the Miscellaneous Personnel Benefits Fund (MPBF) in FY 2000.

2.3.2 For GOCCs and GFIs

2.3.2.1 The positions to be filled shall be with the DBM-authorized plantilla positions;

2.3.2.2 The funding requirements therefor shall be within the level of personal services requirements as reflected in the CY 2000 Corporate Operating Budget duly approved by the Board of Directors and the DBM;

2.3.1.3 The 10% salary increase pursuant to NBC 468 dated 21 March 2000 is already provided in the CY 2000 Corporate Operating Budget;

2.3.1.4 The required 50% dividends to be remitted to the National Treasury pursuant to R.A. No. 7656 dated 09 November 1993 shall not be reduced; and

2.3.1.5 Those that filled positions can no longer avail themselves of budgetary support/subsidy from the NG for the next three (3) years.

2.3.1.6 For LWDs, the funding requirements therefor, shall be within 75% of revenue from operation net of the required subsidy for loan amortization.

2.4       Entities which have been previously exempted by the President from AO 100 and those which have filled positions under Item 2.1.2 hereof shall submit to the DBM two (2) months after the date of this Circular and every month thereafter the following reports:

2.4.1 List of positions filled identified by Item Number as appearing in the staffing pattern approved by the DBM and/or the Personal Services Itemization/Plantilla of Personnel for FY 1999; and

2.4.2 Source of funds for the filling of the positions as certified by the Financial Management Service Chief or Budget Officer and the Head of agency.

3.         Accountability

Heads of agencies shall be accountable for the strict implementation of this Circular.

4.         Non-Compliance

Failure to submit the reports required herein shall, pursuant to Section 57, Chapter 6, Book VII of EO 292, subject entities concerned with appropriate sanctions under existing budget rules and regulations.

5.         Saving Clause

Cases not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.

6.         Effectivity

This Circular shall take effect immediately.

Adopted: 15 May 2000

(SGD.) BENJAMIN E. DIOKNO
Secretary