Liberalization of the Rules and Regulations on Cash Disbursement Ceilings for Infrastructure Projects

May 22, 1979

LETTER OF INSTRUCTIONS NO. 862

LIBERALIZING THE RULES AND REGULATIONS ON CASH DISBURSEMENT CEILINGS FOR INFRASTRUCTURE PROJECTS

WHEREAS, Cash Disbursement Ceilings are issued in order to ensure that the pattern of agency disbursement is consistent with cash availability in the Treasury;

WHEREAS, by their nature, Cash Disbursement Ceilings expire after a specified period of time;

WHEREAS, communication delays sometimes hamper the prosecution of infrastructure projects in the hinterlands; casia

NOW, THEREFORE, I, FERDINAND E. MARCOS, do hereby issue the following instructions to liberalize the Cash Disbursement Ceiling process, in the interest of facilitating project implementation while maintaining cash control in the Treasury:

1. Cash Disbursement Ceilings (CDC) issued for MPWTC and MPH capital projects shall be valid until two months after the end of the Quarter for which they are otherwise issued, except for CDCs issued for the last quarter of the year in which case effectivity shall extend for a three month period beyond the year end.

2. CDCs that expire shall be revalidated routinely by the Ministry of the Budget and its Regional/Field Offices in cases where the revalidation request applies to the same budget year as the date of the original issue.

3. CDCs for Accounts Payable shall be issued by the Ministry of the Budget by project, on the basis of the approved Infrastructure Program. In no case may amounts released for new construction be used for Accounts Payable for work done in prior years.

4. CDCs shall be issued for Accounts Payable as of each year-end on the basis of a list of creditors, indicating amounts and date at which incurred. The creditor listing shall be identified by project and in no case may total payments (including Accounts Payable) for any one project exceed the Obligation Authority initially released for the said project.

5. CDCs which expire in a given year may be revalidated in a subsequent year if they are within the Accounts Payable ceiling of the project in the latter year as reflected in the Infrastructure Program. cd

6. As a transaction measure, the validity of Cash Disbursement Ceilings issued in the First Quarter of CY 1979 which under existing regulations expired on April 30, 1979, is hereby extended until June 30, 1979.

DONE this 22nd day of May, in the year of Our Lord, Nineteen Hundred and Seventy-Nine. aisa dc