1. Relative to the two (2) sets of request, which the Department of Education (DepEd) submitted to the Department of Budget and Management (DBM) for the release of additional funds to cover deficiencies in the allocations for Hazard, Subsistence and Laundry Allowance pursuant to Republic Act No. 7305, Magna Carta for Public Health Workers, and Special Hardship Allowance in accordance with Republic Act No. 4670, Magna Carta for Public School Teachers, the DBM, in its letter-reply dated December 8, 2017, reiterated the following policies:

1. Item 4.9.1 of National Budget Circular No. 567, Guidelines on the Release of Funds for FY 2017, states that any available allotment for Personnel Services (PS) within a department or agency may be utilized by the said department or agency for the payment of deficiencies in authorized personnel benefits;
2. Item 5.1.2.3 (a and b) of the same Circular states that in instances where an insufficiency in PS occurs and frontloading shall be resorted to, the use of unobligated PS allotments, which have been comprehensively released may be utilized subject to approval of Agency Head, based on (a) Reallocation Advice for Use of PS Appropriations (RAPSA); and, (b) Registry of Allotments and Obligations for PS; and
3. Item 5.1.2 (b) of the aforementioned Circular states that the DBM shall approve modifications for the payment of newly authorized Magna Carta Benefits.  Since DepEd’s requests pertain to existing Magna Carta benefits, the modification of PS allotment does not need the approval of the DBM.

2. In view of the foregoing, every operating unit of this Department may utilize PS savings to augment deficient allocations for payment of authorized personnel benefits.

3. Considering that the use of PS appropriations to cover deficiencies in allocations for other authorized benefits chargeable against PS shall be subject to approval of agency head, the approval is hereby delegated to the following:

1. For central offices, Undersecretary for Finance-Budget and Performance Monitoring (BPM);
2. For Regional Offices, the Regional Directors;
3. For Schools Division Offices and Implementing Units, the respective Schools Division Superintendents.

4.  The use of PS appropriations to cover deficiency shall be supported with a Reallocation Advice for Use of PS Appropriations (RAPSA), and the said adjustment shall be recorded or reflected in the Registry of Allotment and Obligations (RAO) for PS and shall be reported in the appropriate FARs being submitted to the DBM.

5.  Immediate dissemination of and strict compliance with this Order is directed.

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