Part One
The confidential and/or intelligence funds have been talked about a lot during the deliberations on the proposed 2024 national budget. But what are confidential and/or intelligence funds and what are the guidelines on the entitlement, release, use, reporting and audit of such funds.
Joint Circular No. 2015-01 dated January 8, 2015 issued by the Department of Budget and Management, Department of the Interior and Local Government, Department of National Defense, Governance Commission for GOCCs and the Commission on Audit provides for the Guidelines on the Entitlement, Release, Use, Reporting and Audit of Confidential and/or Intelligence Funds, in all agencies of the government entitled to it such as NGAs, GOCCs and even local government units (LGUs) whose peace and order is a priority concern. To be entitled to these funds, the same should have been provided in their respective approved annual budget.
As provided in the said circular, confidential fund (CF) shall be used for confidential expenses or those expenses pertaining/related to surveillance activities in civilian government agencies that are intended to support the mandate or operations of the agency. The circular has provided an exclusive list of CE that are allowed. Likewise, it has also provided that the conduct of confidential activities shall, as far as practicable, be done with proper collaboration with any of our law enforcement agencies such as the Philippine National Police, Armed Forces of the Philippines, Philippine Drug Enforcement Agency and or other agencies with law-enforcement functions, which, if undertaken, must be specified in the accomplishment report of the concerned agency.
On the other hand, the intelligence fund (IF) shall be used for intelligence expenses (IE) or those expenses related to intelligence information-gathering activities of uniformed and military personnel, and intelligence practitioners that have a direct impact on national security.
While both funds are presented as lump-sum amounts in the annual budget, the concerned agencies are required to support the same with a Physical and Financial Plan. This plan is where the concerned agency indicates the proposed amount allocated for each program, activity, and project, where disbursements pertaining to CE and IE shall be based.
LGUs, to be allowed with CF, are required to include the specific amount for Peace and Order Programs in their Peace and Order and Public Safety Plan, which must also be specifically appropriated in their annual budget. Likewise, the amount that can be appropriated for the CF of LGUs shall not exceed 30 percent of the total annual amount allocated for the LGU’s POP.
Like any other disbursement of government funds, releases of the CF and/or IF are subject to the approval of the concerned officials. For instance, the utilization of CF in NGAs is subject to approval by the department secretary, or the head of the agency in case of Constitutional Commissions.
Prior approval of the President is required for releases of IF, CF of GOCCs, and NGAs that have been granted specific authority in the GAA to use savings to augment its budget allocation for intelligence and counterintelligence activities.
For LGUs, the release and utilization of the total CF necessitates a resolution duly approved by two-thirds of the total membership of the Local Peace and Order Council. Moreover, in the event that additional CF in excess of the limitation is extremely necessary, additional appropriation supported with the duly authorized supplemental budget is subject to the approval by the Department of the Interior and Local Government secretary.
(To be continued)
Razzel Ann Vergara-Sagono is a graduate of BSA at Polytechnic University of the Philippines-Lopez, Quezon and a Certified Public Accountant. She has a Master’s degree in Business Administration conferred by AMA University. She is currently working as an internal auditor at the provincial government of Camarines Norte.