Question & AnswerQ&A (DBM NATIONAL BUDGET CIRCULAR NO. 444)
Projects that contribute to the government's development thrusts such as infrastructure projects, livelihood projects, health, social and economic improvement projects, calamity assistance supported by proper certifications, and purchase of equipment are eligible.
No, regular operating requirements including supplies, uniforms, maintenance, travel expenses, as well as grants and subsidies cannot be funded from the CDF.
Agencies of the government including government corporations and local government units (province, city, municipality) may be designated as implementors of CDF projects.
No, barangays or NGOs cannot directly implement CDF projects but may be contracted by government agencies or LGUs to undertake specific activities under a project.
A resolution from the concerned Sangguniang Bayan or Sangguniang Panlalawigan must be submitted along with the request to implement such projects or programs.
Realignment requests must be approved by the DBM and can only be made within six months from the issuance of the SARO. Realignments involving changes in allotment class or implementing agency are not allowed beyond December 31 of the same year.
Unexpended balances must be remitted to the National Treasury for credit to the Budget and Finance Bureau F, DBM, and the LGU must provide deposit slips for documentation.
LGUs shall record releases charged against the CDF as trust accounts in their books, and after project completion, remit any cash balance to the National Treasury with proper documentation.
Implementing agencies must prepare semi-annual reports (June and December) on the utilization of CDF releases, certified correct by the head of the agency and verified by a COA representative, and submit them to the Budget and Finance Bureau F, DBM.