In line with the continuing efforts of this Department to improve its frontline services delivery program, pursuant to the pertinent provisions of Department Order No. 55 dated 21 February 1991, the following guidelines in the processing and payment of claims of contractors for civil works contracts paid in the Central Office are hereby promulgated for strict implementation.

1.0 Billing Review and Disbursement Voucher Preparation

1.1 Project Field Office

	1.1.1	Receives and records request for payment supported by all billing documents submitted by the Contractor
	1.1.2	Reviews and checks the correctness of the Statement of Works Accomplished (SWA), together with all billing documents, as well as the mathematical computations
	1.1.3	Resident Engineer/Project Engineer/Materials Engineer/Resident Consultant affixes signature in SWA
	1.1.4	Prepares Disbursement Voucher (DV)
	1.1.5	Forwards SWA and DV to Regional Director concerned
		1-3 days

2.  Recommend approval of SWA and DV

2.1 Office of the Regional Director concerned

	2.1.1	Verifies correctness of billing
	2.1.2	Recommends approval of SWA
	2.1.3	Affixes signature in Certificate No. 3 of the Disbursement Voucher (DV)
	2.1.4	Forwards DV and all billing documents to Central PMO/Bureau concerned
		1-2 days

2.2 Central PMO/Bureau

	2.2.1	Reviews and recommends approval of SWA
	2.2.2	Affixes signature recommending approval of payment on the face of the voucher
		1-2 days
	2.2.3	Forwards DV to the Accounting Division, CFMS for processing
		1-2 days

3.0 Disbursement Voucher Processing

3.1 Accounting Division, CFMS

	3.1.1	Receives, records and assigns DV number
	3.1.2	Reviews supporting documents and the financial aspects of the claim
	3.1.3	Accomplishes accounting entries
	3.1.4	Certifies availability of funds and correctness of accounting entries in Certificate No. 4 of DV
	3.1.5	Forwards DV to Cash Division for preparation of payment check
		1-2 days

4.0 Payment check preparation and processing/approval of SWA and DV

4.1 Cash Division, CFMS

	4.1.1	Checks completeness of the supporting documents attached to the DV as listed by the Accounting Division at the back of the DV
	4.1.2	Prepares/types payment check
	4.1.3	Initials check stub
	4.1.4	Forwards DV with payment check to the Office of the Chief, CFMS
		0-1 day

4.2 Office of the Chief, CFMS

	4.2.1	Reviews and initials DV and payment check
		0-1 day

4.3 Office of the Assistant Secretary for CFMS

	4.3.1	Reviews and initials DV
	4.3.2	Initials payment check if the amount is more than P500,000.00
	4.3.3	Signs payment check if the amount is P500,000.00 or below -
		0-1 day

4.4 Undersecretary Concerned

	4.4.1	Reviews and approves SWA and DV
	4.4.2	Signs payment check if the amount is more than P500,000.00
	4.4.3	Countersigns payment check if delegated to do so
		1-2 days

4.5 Office of the Secretary

	4.5.1	Reviews and approves DV and SWA for first billings
	4.5.2	Countersigns payment check
		1-2 days

5.0 Payment check releasing and DV custody

5.1 Cash Division, CFMS

	5.1.1	Releases payment check to contractor and attaches O.R. to the DV
	5.1.2	Submits paid DV to COA Resident Auditor for post-audit
		0-1 day
	Total Number of Processing days		6-17 days

All implementing Offices shall cause the dissemination of the salient provisions of this Department Order to all contractors accredited in their respective registries of contractors.

All orders, circulars and Memoranda which are inconsistent herewith are hereby revoked, amended or modified accordingly.

This Order shall take effect immediately.

Adopted: 10 Apr. 1991