a. Report of Bank Accounts and b. Issuance of Clearance/Waiver in Favor of the Department of Finance/Bureau of the Treasury in the Exercise of its Oversight Function Over Government Cash Flows

January 6, 2012 JOINT DBM-DOF-COA ADMINISTRATIVE ORDER NO. 001-12 TO : The Heads of Departments, Bureaus, Offices and Agencies of the National Government, Including State Universities and Colleges (SUCs),the Fiscal Autonomy Group, and Other Executive Offices as Defined in the General Appropriations Act (GAA);and All Others Concerned SUBJECT : a. Report of Bank Accounts and b. Issuance of Clearance/Waiver in Favor of the Department of Finance/Bureau of the Treasury in the Exercise of its Oversight Function Over Government Cash Flows Legal Framework 1. This Joint Administrative Order is being issued pursuant to the Administrative Code of 1987 which mandates: a. the Department of Finance (DOF) to formulate, institutionalize, and administer fiscal policies in coordination with other agencies and instrumentalities, for the sound and efficient management of the financial resources of the government, and b. the Department of Budget and Management (DBM) to be responsible for the efficient and sound utilization of government funds and revenues to effectively achieve our country's development objectives. TSacCH 2. Likewise, pursuant to Administrative Code of 1987 and the Government Auditing Code of the Philippines, this Joint Administrative Order seeks to ensure that, "[a]ll resources of the government shall be managed, expended or utilized in accordance with law and regulations and safeguarded against loss or wastage through illegal or improper disposition to ensure efficiency, economy, and effectiveness in the operations of the government". Purpose 1. This administrative issuance rationalizes the bank accounts of the National Government to facilitate financial planning and management of cash resources and implements Memorandum Order No. 2 issued by the Office of the President on 16th July 2010 which mandates an inventory of all assets, bank accounts and other sources of revenues. This also complies with the previous executive issuances i.e., Executive Order (EO) No. 338 and EO No. 431, which mandates the Permanent Committee chaired by DOF with DBM and the Commission on Audit (COA) as members, to examine and evaluate all existing accounts maintained outside of the Bureau of the Treasury (BTr). 2. This issuance lays the ground work for public financial reforms as enunciated in EO No. 55 dated September 6, 2011 directing the integration and automation of government financial management systems that will align the Philippines with international best practices in other developing countries as well. Applicability This Joint Administrative Order is applicable to all agencies and instrumentalities of the Executive Branch, including State Universities and Colleges (SUCs),together with other Executive Offices as defined in the General Appropriations Act (GAA). The Judicial Branch, the Legislative Branch, the Constitutional Commissions, and the Fiscal Autonomy Group are encouraged to comply with this issuance to promote a sound national fiscal administration. EcDATH SECTION 1. In order to implement public financial reforms, in compliance with the Administration's thrust to observe transparency and accountability, and to align the direction of the government instrumentalities in collectively pursuing the right path of governance, all implementing units of Departments, Bureaus, Offices and Agencies of the National Government, including SUCs are hereby mandated to submit to their respective heads, in hard and soft copies, the following documents: a. A complete list of their existing Bank Accounts using the following sample format: DEPARTMENT/OFFICE/AGENCY: __________________________ (To provide breakdown by office) Cash Account Details Month/Year Purpose Legal basis Remarks Account Account Account Bank/ Balance per account of for account Title Name No. Branch Books as of: was opened Maintaining creation June 30, Dec. 31, the 2011 2011 account _______ _______ _______ _______ _______ _______ _________ _________ _________ _________ _______ _______ _______ _______ _______ _______ _________ _________ _________ _________ Certified Correct: Approved By: _________________________ ______________________ Chief Accountant/Finance Officer Head of Agency/Authorized Representative b. WAIVER and AUTHORIZATION LETTER (format attached) addressed to the Depository Banks, signed by the Authorized Signatories, allowing the DOF/BTr to check, verify, and undertake reconciliation procedures with the banks regarding the bank accounts. TcADCI SECTION 2. The Heads of Departments and all other instrumentalities of the Executive Department, including SUCs, are mandated to consolidate their reports, collate the waivers, and submit the signed and scanned copies of the document to the BTr thru E-mail ([emailprotected]) ,copy furnished the DBM-Budget and Technical Service ([emailprotected]) and COA ([emailprotected]) ,including the consolidated list of existing bank accounts on or before February 15, 2012. The Heads of the Judiciary and the Legislative Departments, as well as the Heads of the Constitutional Commissions and the Fiscal Autonomy Group are also encouraged to do the same. SECTION 3. Compliance of all concerned will facilitate the planning and management of the cash resources of the national government. Failure to comply on the part of the instrumentalities of the Executive Department shall merit the usual administrative sanctions provided by law. Non-compliance may also result in the exclusion of the Department or Agency from the Government Integrated Financial Management Information System (GIFMIS) under Public Financial Management (PFM) Reforms Roadmap for the country. SECTION 4. The project Implementation Unit for the improvement of the Treasury and Cash Management Project under the PFM committee created pursuant to EO No. 55, chaired by the BTr, with the DOF, DBM and COA as members, is hereby directed to monitor compliance with this Joint Administrative Order. (SGD.) CESAR V. PURISIMA Secretary Department of Finance (SGD.) FLORENCIO B. ABAD Secretary Department of Budget & Management (SGD.) MA. GRACIA M. PULIDO-TAN Chairman Commission on Audit ATTACHMENT WAIVER AND AUTHORITY TO VERIFY GOVERNMENT/AGENCY BANK ACCOUNTS We, [state names and respective positions],officers/employees of [state name of department/agency] with office address at _________________________________________, and signatories of the following accounts: 1. _______________ (Account No.),_______________ (Bank Branch) 2. ___________________________, ____________________________ 3. ___________________________, ____________________________ 4. ___________________________, ____________________________ hereby authorize the Department of Finance and/or Bureau of the Treasury, to verify and undertake reconciliation procedures with the concerned banks regarding the above accounts. IN WITNESS WHEREOF, we have signed this Waiver and Authority this _____ day of __________ 2011, at _______________, Philippines. ____________________ Signatory ____________________ Signatory SUBSCRIBED AND SWORN TO BEFORE ME this ____ th day of _________ 2011, at Manila, Philippines, affiants exhibiting to me their government-issued IDs as follows: Name ID No./CTC No. Issued at: Issued on: _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ NOTARY PUBLIC Doc. No. _____ Page No. _____ Book No. _____ Series of 2011.