LOCAL CHIEF EXECUTIVES

Information Kit
(Utilization of Local/National Calamity Fund)
 TABLE OF CONTENTS

Republic Act No. 8185 ------------------------------------------- A

(An Act Amending Section 324 of RA 7160 otherwise known as
Local Government Code of 1991)

DILG-DBM Joint Memorandum Circular No. 2003-1

March 20, 2003 ------------------------------------------- B
(Use of Local Calamity Fund Appropriation for man-made disaster relief and
mitigation)

Funding Disaster Management Programs/Projects/Activities---- C

(Local Calamity Fund RA No. 7160 Local Government Code of 1991)

COA Circular Letter No. 2003-003------------------------------------ D

November 13, 2003
(Accounting Guidelines on the Utilization of 5% Local Calamity Fund
Appropriation under RA No. 8185)

Republic Act No. 9336 GAA FY 2005--------------------------------- E

(Special Provision in the GAA for the use of the National Calamity Fund)

NDCC Memo Order No. 04 s-1998 dtd 04 March 1998------------ F

(Amended Policies, Procedures and Criteria for the Declaration of a State of
Calamity)
 A

Republic Act No. 8185

An Act Amending Section 324 of RA 7160 otherwise
known as Local Government Code of 1991
S. No. 1220
II. No. 4874

Republic of the Philippines

Congress of the Philippines
Metro Manila

First Regular Session

Begun and held in Metro Manila the twenty-forth day of July, nineteen hundred and
ninety-five

[ REPUBLIC ACT NO. 8185 ]

AN ACT AMENDING SECTION 324 (d) OF REPUBLIC ACT NO. 7160

OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled.

Section 1. Section 324 (d) Republic of Act No. 7160 is hereby amended to
read as follows:

(d) Five percent (5%) of the estimated revenue from regular sources
shall be set aside as annual lump sum appropriation for relief, rehabilitation,
reconstruction and other works or services in connection with calamities
which may occur during the budget year. Provided however, that such fund
shall be used only in the area or a portion thereof, of the local government unit
or other areas affected by a disaster or calamity as determined and declared by
the local sanggunian concerned.

Calamity shall be defined as a state of extreme distress or misfortune,

produced by some adverse circumstance or event or any great misfortune or
cause or loss of misery caused by natural forces.

In case of fire or conflagration the calamity fund shall be utilized only

for relief operations.
 The local development council shall monitor the use and
disbursement of the local calamity fund.

SEC 2. The Oversight Committee on the Local Government Code in

coordination with concerned agencies, shall prepare and issue the implementing rules
and regulations within thirty (30) days from the effectivity of this Act.

SEC 3. The provisions of existing laws decrees, issuances, rules and

regulations or portions thereof, which are inconsistent, herewith are hereby repealed,
modified or amended accordingly.

SEC 4. This Act shall take effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation

This Act, which is a consolidation of Senate Bill No. 1220 and House Bill
No.4847 was finally passed by the Senate and the House of Representatives on June
6, 1996 and June 5, 1996. respectively:
RULES AND REGULATION IMPLEMENTING REPUBLIC ACT NO.
8185 AN ACT AMENDING SECTION 324 (d) R.A. NO. 7160,
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT
CODE OF 1991

SECTION 1. SCOPE

Pursuant to Section 2 of Republic Act (RA) No. 8186, the Oversight

Committee is mandated to prepare and issue the rules and regulations implementing
said Act. For this purpose, the following rules and regulations are hereby prescribed
to govern the allocation and utilization of the five percent (5%) of the estimated
revenue from regular sources as annual lump sum appropriation of local government
units for relief, rehabilitation, reconstruction and other works services in connection
with the occurrence of calamities.

SECTION 2. TITILE The rules shall be known as the Rules and Regulation
implementing R.A. 8185.

SECTION 3. DEFINITION OF TERMS. As used herein, the following terms and

phrases shall be construed to mean:

a) Calamity - a state of extreme distress or misfortune

produced by some adverse circumstances or events or any great misfortune or cause,
or loss or misery caused by natural forces such as earthquake, typhoons, floods,
hurricane, epidemics or other disaster causing widespread loss of, and /or extensive
damage to human lives, livestock, crops and property.

b) Calamity Fund - The annual lump sum appropriation

required of local government units equivalent to 5% of the estimated Income derived
from regular sources to be set aside for relief, rehabilitation, reconstruction and other
works or services in connection with calamities which may occur during the budget
year.

c) Regular Sources - revenue and receipts realized by

provinces, cities, municipalities and barangays that accrued to the local general fund
including the internal revenue allotment and other share provided for in Section 266,
290, 291 of the Code, but exclusive of non-recurring receipts such as other National
Aids, grants, financial assistance, loan proceeds, sale of fixed assets, and similar
others.

b) Local Sanggunian (Sanggunian Bayan, Sanggunian Panlungsod, Sanggunian

Panlalawigan)

b.1 Appropriate the 5% calamity fund of Local Calamities and Disaster

Preparedness Plan in the Annual budget of the LGU.
 b.2 Adopt measures to protect the citizens from harmful effects of
calamities.

b.3 Declare the area affected by calamity as calamity area:

b.4 Authorize the Local Chief Executive through a resolution to assist in

emergency operation in another locally.

c) Local Disaster Coordination Council -

c.1 Approve the Local Calamity and Disaster Preparedness Plan and
recommend the same to the next higher LDCC for integration;

c.2 Conduct immediate survey of the disaster area to determine the number
of casualties and extent of damages brought about by calamity;

d) Local Development Council -

d.1 Incorporate the projects/activities of the LDCC in the local

Development Plan.

SECTION 6. ALLOCATION AND UTILIZATION OF FIVE PERCENT (5%)

LUMP SUM APPROPRIATION FOR CALAMITY FUND

a) Allocation -

The 5% calamity fund shall be set aside as annual lump sum

appropriation every calendar year in the annual budget of LGUs to be
allocated in the area affected by a disaster or calamity, as determined and
declared by the Local Sanggunian concerned as calamity area.

LGUs may also allocate/use a portion of the 5% calamity fund to other

affected areas on condition that the said areas are declared as under state of
calamity of the Sanggunian concerned.

d) Relief Operations - activities undertaken to provide emergency

assistance to victims of calamity usually thru provisions of temporary shelter, relief
goods/commodities and the like.

e). Rehabilitation - the restoration to the former normal living conditions of

the community affected by the calamity.

f). Reconstruction - rebuilding, repair or replacement of public facilities,

buildings and other infrastructure, or parts thereof, destroyed or damaged during the
occurrence of a calamity.

g). Other works and Services - any related activities undertaken in the
course of rehabilitation or reconstruction such as but not limited to: medical services;
repair of equipment; financial assistance to calamity victims, and such other activities
essential to disaster control and management.
h) Local Disaster Coordinating Council - The existing organization
established at the provincial, city and municipal levels created pursuant to PD 1566 to
carry out relief operations, rehabilitation and related activities during and after the
occurrence of a calamity.

SECTION 4. DUTIES/RESPONSIBILITIES

Local Chief Executive -

a.1 Formulate and submit a Local Calamity and Disaster Preparedness

Plan to the Local Disaster Coordinating Council for approval;

a.2 Carry out emergency measures as maybe necessary before, during and
after the occurrence of calamity;

a.3 Ensure that the 5% calamity appropriation shall be included in the

annual budget of the LGU.

a.4 Recommend to the Local Sanggunian the declaration of a state of

calamity in the area;

a5. As concurrent chairman of the LDC, monitor the use and disbursement
of the local calamity fund:

b.1 The Calamity Fund shall be utilized for the relief, reconstruction,
rehabilitation, and other works or services in connection with the calamities which
may occur during the budget year. Provided, that such fund shall be used/utilized only
in the area of the LGU affected by the disaster or calamity as determined and declared
under the state of calamity by the Sanggunian concerned by way of a resolution;

b.2 A portion of the Calamity Fund may also be authorized to be used by

the LGU concerned to provide financial assistance to other LGUs whose area or
portion thereof had been declared under the state of calamity by its Sanggunian;

b.3 In case of fire or conflagration, the Calamity Fund or portion thereof,

shall be utilized only for relief operation.

b.4 Any unexpected balance of the Calamity Fund at the end of the Current
Year shall be revert to the Inappropriated Surplus for reappropriation during the
succeeding budget. Provided, that appropriation for capital outlays shall remain valid
until fully spent or reverted: Provided, Further, that in cases as may be determined by
the Sangguniang concerned, the unexpended balance of the maintenance and other
operating expenses portion of the aforesaid fund to support for the relief,
rehabilitation, reconstruction and other works or services undertaken during the year
in connection with the occurrence of the calamities, the effective implementation of
which may extend beyond the Calendar Year, may be used and made available during
the succeeding year subject to accounting and auditing rules/regulations being
observed for the purpose.

b.5 The Local Treasurer shall prepare and submit a report on the
utilization/disbursement of the calamity fund, duly approved by the Local Chief
Executive to the Sanggunian concerned, Commission on Audit and Local
Development Council copy furnished the Local Disaster Coordination Council.

SECTION 8. PROCEDURAL GUIDELINES

a) In case of calamity and upon the recommendation of the Local Chief

Executive, the Sanggunian concerned shall immediately convene within hours from
the occurrence of the calamity and pass a Resolution declaring.

Also adopt measures to protect the lives and properties in the area and implement
disaster mitigation measures.

a) The Sanggunian Bayan Resolution, embodying the declaration need to not be

reviewed and approved by the Sangguniang Panlalawigan. However, when the total
province is being affected by the calamity, the Sanggunian Panlalawigan upon
recommendation of the Provincial Governor, declare the whole province as under the
state of calamity and the Sangguniang Bayan of the respective municipalities need not
declare their areas as calamity areas.

b) The allotment from the 5% Calamity Fund shall be released by the Local
Budget Officer within 24 hours from the occurrence of the calamity upon presentation
of the disbursement vouchers duly approved by the authorities concerned and
supported by Sangguian Resolution and LDCC estimates based on surveys of the
extent of damages.

c) In case of actual calamity and pending actual declaration of such thru a

resolution by the Sanggunian concerned that the area is under the state of calamity,
the local chief executive may draw cash advances from the general fund subject a
replenishment after receipt of the Resolution of the Sanggunian concerned declaring
the area under the state of calamity, subject to existing auditing and accounting rules
and regulations. However such cash advances shall not exceed 50% of the total
calamity fund.

SECTION 7. SEPARABILITY CLAUSE. It is for any reason, or reasons, any part

of provisions of the IRR shall be unconstitutional or invalid, other parts o f provision
thereof which are not affected thereby shall continue to be in full force and effect.

SECTION 8. REPEALING CLAUSE. All executive orders, administrative

issuances, memorandum circulars herewith are hereby repeated accordingly.

SECTION 9 EFFECTIVITY This IRR shall take effect immediately.

 B

Utilization of 5% Local
Calamity Fund
BDM-DILG Joint Memorandum Circular No. 2003-1
Dated 20 March 2003 & No. 2003-2 dated 24 July 2003
 DEPARTMENT OF BUDGET AND MANAGEMENT
DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT

JOINT MEMORANDUM CIRCULAR NO. 2003 1

March 20, 2003

TO ALL PROVINCIAL GOVERNORS; CITY AND MUNICIPAL

MAYORS; BARANGAY CHAIRMEN;
NATIONAL/PROVINCIAL/CITY/MUNICIPAL PRESIDENTS,
LEAGUE OF PROVINCES/CITIES/MUNICIPALITIES AND
BARANGAYS; AND OTHER OFFICIALS CONCERNED

SUBJECT :USE OF LOCAL CALAMITY FUND APPROPRIATION FOR

MAN-MADE DISASTER RELIEF AND MITIGATION

1.0 This joint circular is issued to clarify the utilization of the annual lump
appropriations of local government units for relief, rehabilitation,
reconstruction and other works or services in connection with calamities
which may occur during the budget year, mandated under Section 324 (d) of
RA No. 7160., otherwise known as the Local Government Code of 1991, as
amended by RA No. 8185. Said appropriation may be validly used for relief,
rehabilitation, reconstruction and other works or services in connection with
man-made disasters resulting from unlawful acts of insurgents, terrorists and
other criminals as well as for disaster preparedness and other pre-disaster
activities.
2.0 Such relief, rehabilitation, reconstruction and other works or services
including pre-disaster activities in connection with such man-made disasters
may, at the discretion of the local government unit concerned, include the
following:

2.1 Medical assistance, death and funeral benefits to the victims, their
dependents and immediate families, including victims who are
Overseas Filipino Workers (OFWs)
2.2 Financial assistance and other services for medical, rescue and relief
workers who have been tasked to attend to the victims.
2.3 Preparation of relocation sites/facilities, disaster preparedness training
and other pre-disaster activities.

3.0 It is understood that the guidelines and procedures prescribed under the Rules
and Regulations Implementing RA No. 8185 governing the allocation and
utilization of local Calamity Fund appropriations shall be strictly observed.
4.0 This joint circular shall take effect immediately.
5.0 Please be guided accordingly.
LEGAL BASIS OF 5% CALAMITY FUND

1. Section 324 (d) of RA No. 7160

2. RA No. 8185 (amending Sec. 324 (d) of

RA No. 7160) dated 06-11-1996

3. Joint DILG DBM Memorandum

Circular No. 2003-1 (dated 3-20-2003)

4. Joint DILG DBM Memorandum

Circular No. 2003-2 (dated 07-24-03)

 Utilization of Five-Percent
(5%) Calamity Fund

Speaker: Mr. Romeo T. Melad

Regional Director
Department of Budget & Management, Region X

Venue: Crown Regency Hotel, V. Rama St., Cebu City

April 20, 2006

Utilization of Five-Percent
(5%) Calamity Fund
Sec. 324 (d) of R.A. 7160 provides:

Sec. 324. Budgetary Requirements - The budget of the local

government units of any fiscal year shall comply with the following
requirements:
X X X

(d) Five percent (5%) of the estimated revenue from regular source
shall be set aside as an annual lump sum appropriation for
unforeseen expenditures arising from the occurrence of calamities:
Provided, however, that such appropriation shall be used only in the
area, or a portion thereof, of the local government unit or other areas
declared by the President in a state of calamity.
 Republic Act (RA) No. 8185 dated
June 11, 1996
An act Amending Section 324 (d) of RA No.
7160, otherwise known as the Local Government
Code of 1991
Sec. 324 (d) R.A. 7160 is hereby amended to read as follows:

(d) Five percent (5%) of the estimated revenue from regular

sources shall be set aside as an annual lump sum appropriation for
relief, rehabilitation, reconstruction and other works and services in
connection with calamities which may occur during the year:
Provided, however, that such fund shall be used only in the area, or a
portion thereof, of the local government unit or other areas affected
by a disaster or calamity, as determined and declared by the local
sanggunian concerned.

Republic Act (RA) No. 8185 dated

June 11, 1996
An act Amending Section 324 (d) of RA No.
7160, otherwise known as the Local Government
Code of 1991
Calamity shall be defined as a state of extreme distress or
misfortune, produced by some adverse circumstance or event or any
great misfortune or cause or loss of misery caused by natural forces.

In case of fire or conflagration the calamity fund shall be

utilized only for relief operations.

The local development council shall monitor the use and

disbursement of the local calamity fund.
 DBM-DILG JMC No. 2003-1 dated
March 20, 2003
Use of Local Calamity Fund
Appropriation for Man-made Disaster
Relief and Mitigation
1.0 This joint circular is issued to clarify the utilization of the annual
lump sum appropriations of the local government units of relief,
rehabilitation, reconstruction and other works or services in
connection with calamities which may occur during the budget,
mandated under section 324 (d) of RA 7160 otherwise known as
the Local Government Code of 1991, as amended by RA 8185.
Said appropriation may be validly used for relief, rehabilitation,

DBM-DILG JMC No. 2003-1 dated

March 20, 2003
Use of Local Calamity Fund
Appropriation for Man-made Disaster
Relief and Mitigation

reconstruction and other works on services in connection with

man-made disaster resulting from unlawful acts of insurgents,
terrorists and other criminals as well as disaster preparedness
and other pre-disaster activities.
 DBM-DILG JMC No. 2003-1 dated
March 20, 2003
Use of Local Calamity Fund
Appropriation for Man-made Disaster
Relief and Mitigation
2.0 Such relief, rehabilitation, reconstruction and other works or
services including pre-disaster activities in connection with such
man-made disasters may, at the discretion of the local
government unit concerned, include the following:
Medical Assistance, death and funeral benefits of the
victims, their dependents and immediate families,
including victims who are Overseas Filipino Workers.

DBM-DILG JMC No. 2003-1 dated

March 20, 2003
Use of Local Calamity Fund
Appropriation for Man-made Disaster
Relief and Mitigation
Financial assistance and other services for medical, rescue and
relief workers who have been tasked to attend to the victims.
Preparation of relocation sites/facilities, disaster preparedness
training and other pre-disaster activities.
 DBM-DILG JMC No. 2003-2 dated
July 24, 2003
Clarificatory Guidelines on the Use of
Local Calamity Fund
1.0 Pursuant to the provisions of R.A. 8185, otherwise known as
An Act Amending Section 324 (d) of R.A. 7160, otherwise
known as the Local Government Code of 1991, its
implementing Rules and Regulations, and Executive Order No.
201 dated April 26, 2003, it is hereby classified that the 5%
local calamity fund of every LGU shall be utilized only for the
relief, reconstruction, rehabilitation and other works and
services, in connection with a calamity occurred during the
budget year.

DBM-DILG JMC No. 2003-2 dated

March 20, 2003
Clarificatory Guidelines on the Use of
Local Calamity Fund
Under the aforesaid Act, calamity has been defined as a state of
extreme distress or great misfortune caused by adverse event or
natural force, causing widespread loss or extensive damage to
livestock, lives, crops and properties. Accordingly, any adverse
event, such as but not limited to, acts of terrorism and spread of
SARS or other endemics, that could fall within the ambit of the
definition of calamity defined by law, can be a legal basis of
LGUs concerned to declare their own state of calamity.
 DBM-DILG JMC No. 2003-1 dated
July 24, 2003
Clarificatory Guidelines on the Use of
Local Calamity Fund
2.0 The calamity fund may also be utilized for undertaking disaster
preparedness activities and measures, provided that the
sanggunian concerned shall declare an imminent danger of
calamity. In extreme cases and under extra-ordinary
circumstances, such as but not limited to, acts of terrorism, and
outbreak of dangerous and highly communicable diseases, such
as SARS, the calamity fund may also be utilized for disaster
preparedness without need of a sanggunian declaration of
calamity provided that there is a Presidential proclamation of the
existence of an adverse event that would warrant the declaration

DBM-DILG JMC No. 2003-1 dated

March 20, 2003
Clarificatory Guidelines on the Use of
Local Calamity Fund
of the entire country to be under the state of national calamity,
which needs to be prevented and suppressed.
 C

FUNDING DISASTER
MANAGEMENT
PROGRAMS/PROJECT/
ACTIVITIES
Local Calamity Fund RA No. 7160
Local Government Code of 199
 FUNDING
What are the LEGAL
DISASTER INSTRUMENTS in funding
MANAGEMENT disaster management
PROGRAMS/ programs/projects/activities?

PROJECTS
-NATIONAL CALAMITY FUND
ACTIVITIES -LOCAL CALAMITY FUND

Excerpt from Republic Act 7160: Local Government Code of the

LOCAL CALAMITY FUND
REPUBLIC ACT NO. 7160
Local Government code of 1991
Philippines
Section 324: Budgetary Requirements The budgets of local
government units for any fiscal year shall comply with the following
requirements: (a) The aggregate amount appropriated shall not
exceed the estimates of income;
(b) Full provisions shall be made of any statutory and contractual
obligations of the local government units concerned: Provided,
however, that the amount of appropriations for debt servicing shall
not exceed twenty percent (20%) of the regular income of the local
government unit concerned;
(c) in case of provinces, cities, and municipalities, aid to component
barangays shall be provided in amounts of not less than One
Thousand Pesos (P1,000.00) per barangays, and
(d) Five percent (5%) of the estimated revenue from regular sources
shall be set aside as an annual lump sum appropriations for
unforeseen expenditures arising from the occurrence of calamities:
Provided, however, that such appropriations shall be used only in the
area, or a portion thereof, of the local government unit or other areas
declared by the President in a state of calamity
 Section 1. Section 324 (d) of RA 7160 is hereby
amended to read as follows:
REPUBLIC ACT NO. 8185
(d) Five Percent (5%) of the estimated revenue
An Act Amending Section 324 (d) from regular sources shall be set aside as annual
lump sum appropriations for relief, rehabilitation,
of Republic Act No. 7160, reconstruction and other works or services in
otherwise known as the Local connection with calamities which may occur during
Government of 1991) the budget year. PROVIDED, HOWEVER, That
such fund shall be used only in the area or a
portion thereof, of the local government unit or
SIGNED AND APPROVED BY FORMER PRES. RAMOS ON 11 other areas affected by a disaster or calamity, as
JUNE 1995 determined and declared by the local Sanggunian
concerned.

IMPLEMENTING RULES AND REGULATIONS OF RA

8185
SECTION 6. ALLOCATION AND UTILIZATION OF
LOCAL CALAMITY FUND FIVE PERCENT (5%) LUMP SUM APPROPRIATIONS
FOR CALAMITY FUND.
A. Allocation
The 5% Calamity Fund shall be set aside as annual
lump sum appropriations every calendar year in the
REPUBLIC ACT NO. 7160 annual budget of LGUs to be allocated in the area
affected by a disaster of calamity, as determined and
Local Government code of 1991 declared by the Local Sanggunian concerned as
calamity area.

LGUs may also allocate/use a portion of the 5%

Calamity Fund to other affected areas on condition that
the said areas are declared as under state of calamity
by the Sanggunian concerned.
B) Usage of the 5% Calamity Fund
b.1 The Calamity Fund shall be utilized for the relief,
reconstruction, rehabilitation, and other works or
services in connection with the calamities which may
occur during the budget year. Provided, that such
fund shall be used/utilized only in the area of the
LGU affected by the disaster or calamity as
determined and declared under the state of calamity
by the Sangguniang concerned by way of a
resolution;
b.2 A portion of the Calamity Fund may also be
authorized to be used by the LGU concerned to
provide financial assistance to other LGUs whose
area or portion thereof had been declared under the
state of calamity by its Sanggunian;
b.3 In case of fire or conflagration, the Calamity Fund or
portion thereof, shall be utilized only for relief
operation/s.
Section 6. PROCEDURAL GUIDELINES
a) In case of calamity and upon recommendation of the Local Chief
Executive, the Sanggunian concerned shall immediately convene within
hours from the occurrence of the calamity and pass a Resolution declaring
the area under state of calamity and Implement disaster mitigation
measures.
b) The sangguniang Bayan Resolution embodying the declaration need not
be reviewed and approved by the Sangguniang Panlalawigan. However,
when the total province is being affected by calamity, the Sangguniang
Panlalawigan, upon recommendation of the Provincial Governor, declares
the whole province as under the state of calamity and the Sangguniang
Bayan of the respective municipalities need not declare their areas as
calamity areas.
c) The allotment from the 5% Calamity Fund shall be released by the Local
Budget Officer within 24 hours from the occurrence of the calamity upon
presentation of the disbursement vouchers duly approved by the authorities
concerned and supported by Sanggunian Resolution and LDCC estimates
based on surveys of the extent of damages.
b.4 Any unexpended balance of the Calamity Fund at the end of the
current year shall revert to the unappropriated Surpuls for the
reappropriation during the succeeding budget year: PROVIDED,
that appropriations for capitals outlays shall remain valid until fully
spent or reverted: PROVIDED, FURTHER, that in cases as may
be determined by the Sangguniang concerned, the unexpended
balance of the maintenance and other operating expenses portion
of the aforesaid fund in support for the relief, rehabilitation,
reconstruction and other works or services undertaken during the
year in connection with the occurrence of the calamities, the
effective implementation of which may extend beyond the
Calendar Year, may be used and made available during the
succeeding year subject to accounting and auditing
rules/regulations being observed for the purpose.
b.5 The Local Treasurer shall prepare and submit a report on the
utilization/disbursement of the calamity fund, duly approved by the
Local Chief Executive to the Sanggunian concerned, Commission
on Audit and Local Development Council, copy furnished the Local
Disaster Coordinating Council.
Cont. Section 6
c) In case of actual calamity and pending actual declaration
of such thru a resolution by the Sanggunian concerned that
the area is under the state of calamity, the Local Chief
Executive may draw cash advances from the general fund
subject to replenishment after receipt of the Resolution of the
Sanggunian concerned declaring the area under the state of
calamity, subject to existing auditing and accounting rules
and regulations. However, such cash advances should not
exceed 59% of the local calamity fund.
JOINT DBM-DILG MEMORANDUM
CIRCULAR NO. 2003-1 dtd 20 March 2003
1. This Joint Circular is issued to clarify the utilization of the
For: annual lump sum appropriations of local government units for
All Provincial Governors; City and Municipal Mayors; relief, rehabilitation, reconstruction and other works or
Barangays Chairmen, National/Provincial/Municipal services in connection with calamities which may occur
Presidents, League of Provinces/Cities/Municipalities and during the budget year, mandated under Section 324 (d) of
Barangays; and other Officials Concerned RA 7160 Said appropriation may be validly used for relief,
rehabilitation, reconstruction and other works or services in
Subject: connection with man-made disasters resulting from unlawful
acts of insurgents, terrorists and other criminals as well as for
Use of Local Calamity Fund Appropriation for Man-Made disaster preparedness and other pre-disaster activities.
Disaster Relief and Mitigation

2. Such relief, rehabilitations, reconstruction and other JOINT DBM-DILG MEMORANDUM

works or services including pre-disaster activities in
CIRCULAR NO. 2003-1 dtd 20 March 2003
connection with such man-made disasters may, at the
discretion of the local government unit concerned, include
the following:
For: All Local Chief Executives and Members of all
2.1 Medical Assistance, death and funeral benefits to the Sanggunians
victims, their dependents and immediate families, including
victims who are Overseas Filipino Workers (OFWs) Subject: Clarificatory Guidelines on the use of the
2.2 Financial assistance and other services for medical, 5% Local Calamity Fund
rescue and relief workers who have been tasked to attend to
the victims

2.3 Preparation of relocation sites/facilities, disaster

preparedness training and other pre-disaster activities.
1.0 Pursuant to the provisions of RA 8185, otherwise known as An
Act Amending Section324 (d) of RA 7160, otherwise known as the
Local Government Code of 1991,its Implementing Rules and
Regulations, and Executive Order No. 201 dated 26 April 2003, it is
hereby clarified that the 5% Local Calamity Fund of every local
government unit (LGU) shall be utilized only for the relief,
reconstruction, rehabilitation and other works and services, in
connection with a calamity which occurred during the budget year.
Under the aforesaid Act, calamity has been defined as a state of
extreme distress or great misfortune caused by adverse event or
natural force, causing widespread loss or extensive damage to
livestocks, lives, crops and properties. Accordingly, any adverse
event such as but not limited to acts of terrorism and spread of
Severe Acute Respiratory Syndrome (SARS) or other endemics,
that could fall within the ambit of the definition of calamity defined by
law can be a legal basis for LGUs concerned to declare their own
state of calamity.
2.0 The calamity fund may also be utilized for undertaking
disaster preparedness activities and measures provided that
the Sanggunian concerned shall declare an imminent danger
of calamity in extreme cases and under extraordinary
circumstances such as but not limited to acts of terrorism and
outbreak of dangerous and highly communicable diseases,
such as SARS, the calamity fund may also be utilized for
disaster preparedness without need of a Sanggunian
declaration of calamity provided of an adverse event that
would warrant the declaration of the entire country to be
under the state of national calamity, which needs to be
prevented and suppressed.

COA CIRCULAR LETTER TRANSACTION ACCT. ACCOUNT TITLE

NO. 2003-93 CODE

(a) Medical, assistance, death 760 For Supplies Used:

Accounting Guidelines on the Utilization of 5% and funeral benefits to the Medical, Dental and
Local Calamity Fund Appropriation under RA No. victims, dependents and Laboratory Supplies
8185 Immediate families, including Expenses
Overseas Filipino Workers
Dated November 13, 2003 (OFWs)
878 For Cash Assistance
All authorized expenditures chargeable to the LCF Donations
shall be recorded in the General Fund books of
accounts. The following expenses and/or Property, (B) Financial assistance, and 758 For Food Items issued:
other services for medical, rescue Food Supplies Expenses
Plant and Equipment/Public Infrastructures accounts
and relief workers who have been
prescribed in the Revised NGAS Chart of Accounts tasked to attend to the victims 759 For Drugs & Medicines
under COA Circular 2003-001 dated June 17, 2003 Issued:
shall be used.
878 For Cash Assistance:
Donations
D

COA Circular Letter

No. 2003-003 dated
November 13, 2003
Accounting Guidelines on the Utilization of 5% Local
Calamity Fund Appropriation under RA No. 185
 Republic of the Philippines
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

GOVERNMENT ACCOUNTING & FMIS

CIRCULAR LETTER No. : 2003-03

Date : November 13, 2003

TO : All Provincial Governors, City and Municipal Mayors and Barangay Chairmen;
National/Provincial/City/Municipal Presidents, League of Provinces/Cities/Municipalities and Barangays; Chief
Accountants/Heads of Accounting Units; COA Local Government Audit Cluster Directors/Regional Cluster Directors; and All
Others Concerned.

SUBJECT: Accounting Guidelines on the Utilization of 5% Local Calamity Fund Appropriation under Republic Act
(RA) no. 8185

1.0 This Circular Letter is issued to provide accounting guidelines on the utilization of the 5% Local Calamity Fund
Appropriation for relief, rehabilitation, reconstruction and other works and services in connection with calamities which may
occur during the budget year, as provided under Section 324 (d) of RA No. 7160 otherwise known as the Local Government
Code of 1991, as amended by RA No. 8185.
2.0 All authorized expenditures chargeable to the Local Calamity Fund shall be recorded in the General Fund books in
accounts. The following expense and/or Property, Plant and Equipment/Public Infrastructures accounts prescribed in the Revised
NGAS Chart of Accounts under COA Circular 2003-03 dated June 17, 2003 shall be used.

Transaction Acct. Code Account Title

(a) Medical, assistance, death and

funeral benefits to the victims,
dependents and immediate families, 760 For supplies issued:
including Overseas Filipino Workers Medical, Dental and Laboratory
(OFWs) Supplies Expenses

(b) Financial assistance and other For cash assistance:

services for medical, rescue and 878 Donations
relief workers who have been tasked For food items issued:
to attend to the victims. 758 Food Supplies Expenses
For drugs and medicines issued:
795 Drugs and Medicines Expenses
For cash assistance:
878 Donations

(c) Rehabilitation and 202

Reconstruction of Intrastructures To Appropriate Plant, Property and a
250 Equipment accounts

251
To Appropriate Public
260 Infrastructures accounts

802
To Appropriate Repairs and
860 Maintenance accounts

(d) Disaster preparedness training 753 Training Expenses

and other activities 969 Other Maintenance and
Other Expenses

3.0 The disbursement procedures, recording and reporting of the aforementioned expenditures shall be
in accordance with existing accounting and auditing rules and regulations.

4.0 The Circular Letter shall take effect immediately.

E

Republic Act. No. 9336

GAA FY 2005
Special Provisions in the GAA for the use of the National
Calamity Fund
 TRANSACTION ACCT. CODE ACCOUNT TITLE

(c) Rehabilitation and 202 to 250 Appropriate Plant,

Reconstruction of Property and
Infrastructures Equipment Accounts The disbursement procedures, recording
251 to 260 Appropriate Public
and reporting of the aforementioned
Infrastructure expenditures shall be in accordance with
Accounts
802 to 860 existing accounting and auditing rules
Appropriate Repairs and regulations.
& Maintenance
Accounts
(d) Disaster Preparedness 753 Training Expenses,
Training and Other Activities Other Maintenance
and Operating
Expenses

GENERAL APPROPRIATIONS ACT

NATIONAL CALAMITY FUND FY 2005
XXXVIII. CALAMITY FUND

REPUBLIC ACT NO. 9336 For aid, relief and rehabilitation

services to communities/areas affected
General Appropriations Act
by man-made and natural calamities,
FY 2005 and repair and reconstruction of
permanent structures, including other
capital expenditures for disaster
operations and rehabilitation activities,
as indicated hereunder __________ P700,000,000.0
 New Appropriation by Purpose Current Operating Expenditures

Maintenance Capiital Total

& Other Outlays
Operating
Expenses
Aid, Relief and SPECIAL PROVISIONS
Rehabilitation Services to
Communities/Areas Affected IN THE GAA
by Calamities, including
Training of Personnel, and
other Pre-disaster Activities
Repair and Reconstruction of FOR THE USE OF THE
permanent Structures
including Capital NATIONAL CALAMITY FUND
Expenditures for Pre- disaster
Operations, Rehabilitations
and Other Related Activities.
TOTAL NEW
APPROPRIATIONS

1. USE AND RELEASE OF FUND. The amount
appropriated herein may be made available for relief,
rehabilitation, reconstruction and other works or
services in connection with natural calamities,
epidemics as declared by the DOH, as well as
disasters resulting from unlawful acts of insurgents,
terrorists and other criminals, which may occur during
the budget year or those that occurred in prior years,
including pre-disaster activities such as preparation of
relocation sites/facilities, and training of personnel
engaged in direct disaster management.
PROVIDED, That the beneficiaries of relief,
rehabilitation, reconstruction and other works or
services in connection with specific calamities,
epidemics and disasters already covered by special
laws shall not be entitled to support for assistance
from the Calamity Fund until the appropriations that
have been originally availed of shall have been fully
expended. Releases from this Fund shall be made
directly to the appropriate implementing agencies
and/or Local Government Units in accordance with
the recommendation of the NDCC and upon
approval of the President of the Philippines.

2. QUICK RESPONSE FUND. Of the amount appropriated for
aid, relief and rehabilitation services to communities/areas
affected by natural calamities, epidemics as declared by the
DOH, as well as disasters resulting from unlawful acts of
insurgents, terrorist, and other criminals, including training of
personnel, and other pre-disaster services.
Twenty five (25%) percent shall be immediately released to the
DSWD.
Twenty Percent (20%) to the OCD as QRFs
Likewise, of the amount appropriated for repair and
reconstruction of permanent structures,
Twenty percent (20%) shall be immediately released to the
DPWH and Fifteen percent (15%) to the DND as QRFs.
PROVIDED, That the other government agencies concerned
may be allocated their own QRFs on need basis upon
recommendation of the NDCC.
PROVIDED. FURTHER, That QRF shall be released
immediately by the DBM upon approval by the President and
shall be used exclusively as a stand-by fund to be utilized in
connection with calamities, epidemics and disasters occurring
during the year and primarily for relief and rehabilitation of
affected communities/areas to normalize as quickly as possible
the situation and living condition of the people in such
communities/areas:
AND PROVIDED, FINALLY, That agencies concerned availing of
their QRFs shall not pre-allocate the same to their subordinate
agencies and shall report to NDCC the status of the utilization of
such Fund on a quarterly basis, copy furnished the DBM.

.
General Summary of Department/Agencies with QRF under the
Calamity Fund 2005 General Appropriations Act (GAA)
Current Operating Expenditures
Out of the National Calamity Fund MOOE
Maintenance Capiital Total
& Other Outlays
DSWD - P87.5
Operating OCD - 70.0
Expenses

CALAMITY P375,000,000 P325,000,000 P700,000,000 Out of the National Calamity Fund Capital
FUND Outlay (CO)
DPWH - P65.00
Total New DND - 48.75
Appropriations, P375,000,000 P325,000,00 P700,000,000
Calamty Fund
 Quick Response Fund (QRF)
GENERAL APPROPRIATIONS
CY 2005 ACT, FY 2005
AGENCY/DEPT (In million P) *SEC, 36, Disaster Prevention, Mitigation, &
DSWM 87.500 Preparedness. All departments, bureaus,
DPWH 65.000 offices and agencies are authorized to use their
OCD 70.000 appropriations to implement projects designed
to address disaster prevention, mitigation, and
DND 48.750 preparedness activities pursuant to PD 1566.
TOTAL 271.250 Implementation of this section shall be in
accordance with the guidelines issued by the
NDCC in coordination with the DBM.

1. USE AND RELEASE OF FUND. The amount .

appropriated herein may be made available for relief, MEMORANDUM OF THE PRESIDENT
rehabilitation, reconstruction and other works or Dated 10 February 1999
services in connection with natural calamities,
epidemics as declared by the DOH, as well as Subject: GUIDELINES ON THE
disasters resulting from unlawful acts of insurgents, PROGRAMMING AND USE OF THE
terrorists and other criminals, which may occur during CALAMITY FUND
the budget year or those that occurred in prior years,
including pre-disaster activities such as preparation of The Secretary of the Department of
relocation sites/facilities, and training of personnel Budget and Management and the
engaged in direct disaster management. Chairman of the National Disaster
Coordinating Council (NDCC) is directed
to observe the following general
guidelines for the programming and use of
the calamity fund:
 It shall be programmed as an interventive fund to allow
the President to respond to urgent needs during
emergency situations.
Repair and maintenance costs of government
Infrastructure shall be sourced, to the extent possible,
from the regular budgetary outlay for repair and
maintenance under the concerned agencys projects.
Proposal for funding under the Calamity Fund shall
include justifications with regards to the following:
urgency of the project such as its delay will result to
loss of lives and property; high Impact to community;
and non-availability of funding source other than the
Calamity Fund
Post evaluation report to the Office of the President on
the implementation of the project using Calamity Fund
shall be required from the concerned agencies.
1. USE AND RELEASE OF FUND. The amount
appropriated herein may be made available for relief,
rehabilitation, reconstruction and other works or
services in connection with natural calamities,
epidemics as declared by the DOH, as well as
disasters resulting from unlawful acts of insurgents,
terrorists and other criminals, which may occur during
the budget year or those that occurred in prior years,
including pre-disaster activities such as preparation of
relocation sites/facilities, and training of personnel
engaged in direct disaster management.
NDCC MEMO NO.2 SERIES 1999
The National Calamity Fund can be used for the following purposes:
Aid, relief, rehabilitation services
Pre-disaster activities
Capital expenditures
National Calamity Fund shall be used in the order of priority:
Priority I For urgent and emergency relief operations and emergency
repair and rehabilitation of vital public Infrastructures and lifelines
damaged by calamities.
Priority II For repair, rehabilitation and reconstruction of other
damaged public infrastructures that are not emergency in nature
Priority III For pre-disaster activities outside the regular budget of
NGAs/LGUs
Repair, rehabilitation or reconstruction of government buildings, public
hospitals, public schools, municipal and city halls. Capitol building,
public markets, sport complex, multi-purpose buildings and the like
damaged by fire shall not be funded by NCF.
Evaluation and Approval
Processed NCF requests shall be recommended
by the NDCC Chairman to the Office of the
President, Indicating among others, the program
or schedule of fund release to support the project;
The President may either approve or disapprove
the NDCC recommendations;
Approved recommendations shall be sent directly
to the Office of Civil Defense-National Disaster
Coordinating Council (OCD-NDCC). The NDCC
shall request the Department of Budget and
Management (DBM) for the release and issuance
of the Special Allotment Release Order (SARO)
and Notice of Cash Allocation (NCA)
 . 1. Cover Letter addressed to the President (Her
Excellency President Gloria Macapagal-Arroyo)
attention to the NDCC Chairman (Sec. Avelino J.
Cruz, Jr.) and the OCD-Administrator/Excecutive
DOCUMENTS TO PREPARE Officer (Mgen Glenn J. Rabonza)
IN REQUESTING
a) State the hazard
FINANCIAL ASSISTANCE b) What was the ensuing disaster?
c) How much is the amount being
FROM THE NATIONAL requested?
d) How much is the counter-part fund to be
CALAMITY FUND provided by the local government unit?
e) Who will Implement the project?

2. Declaration of State/imminent danger of calamity by

the appropriate local Sanggunian concerned.
THE NATIONAL CALAMITY FUND
3. Work and Financial Plan duly signed by the
concerned local government Engineer. VS.

4. Disaster Coordinating Council Reports on the LGUs REQUESTED AMOUNTS

Damages (including pictures).
VS.
5. Resolution/Certification that the project will be
completed considering the amount to be provided by ACTUAL RELEASES
the National Calamity Fund
 CF APPROPRIATIONS VS. RELEASES/
/VS. AMOUNT REQUESTED
CF APPROPRIATIONS VS. RELEASES
FOR CY 2001 - 2005 FOR 1996 May 2004

Appropriations( Amount Rqstd Year Appropriations (P) Releases (P)

Year Releases (P)
P) (LGUs/NGAs)(P)
1996 2,800,000,000.00 2,520,351,192.00
2001 998,500,000.00 994,478,835.00 9.037 B
# of request rcvd 428
1997 2,000,000,000.00 1,943,064,850.00
1998 2,000,000,000.00 1,990,076,369.00
2002 800,000,000.00 720,053,500.00 7.621 B
# of request rcvd 495 1999 1,000,000,000.00 962,692,798.00
5.59 B 2000 998,500,000.00 997,759,040.00
2003 700,000,000.00 699,032,000.00
# of request rcvd 681
2001 998,500,000.00 994,478,835.00
7.25 B
2004 700,000,000.00 700,000,000.00 # of request rcvd 474
2002 800,000,000.00 720,053,500.00
2003 700,000,000.00 699,032,000.00
4.92 B
2005 700,000,000.00 700,000,000.00 # of request rcvd 336 2004 700,000,000.00 225,837,500.00
(Jan-May)

CF APPROPRIATIONS VS RELEASES
COST OF DAMAGE VS. AMOUNT REQUESTED
FOR CY 2001 - 2003

10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
APPROPRIATIONS COST OF
DAMAGE

CY 2001 CY 2002 CY 2003

F

NDCC
MEMORANDUM
Number 04 s, 1998
Amended Policies, Procedures and Criteria for the
Declaration of a State of Calamity
 Republic of the Philippines
NATIONAL DISASTER COORDINATING COUNCIL
Department of National Defense
Camp Gen. Emilio Aguinaldo, Quezon City

MAR 04, 1998

NDCC Memo Order

Series of 1998

TO : NDCC Members
Chairman, RDCCs and Local DCCs
SUBJECT: Amended Policies, Procedures and Criteria for the Declaration
of a State of Calamity

REFERENCES: NDCC Memo Order Nos. 3 and 9, s-1989 and Sec. 1 of RA

8185 s-1996 and Sec6 (a) of IRR.

POLICIES:

a. To uplift the morale of disaster victims and hasten the return to normal in the
disaster-stricken areas, the entire resources of both the national and local government
should be mobilized and utilized to the maximum extent. Relief and rehabilitation
efforts should likewise be facilitated with the full participation of all concerned
sectors of society.
b. The declaration of a state of calamity either by the local Sanggunian or by the
President of the Philippines shall be based on the extent of casualties and/or damages
in accordance with the guidelines and criteria set forth in this Memorandum Order.
c. If means declared under a state of calamity either by the President of the Local
Chief Executives (LCEs), the five percent (5%) reserve fund for emergency
operations shall be utilized for this purpose by the local government unit (LGU)
concerned. National Calamity Funds may be released to augment local funds for relief
and rehabilitation efforts of affected LGUs.

PROCEDURES:

a. Calamity Area Declaration by LGUs

1) Whenever a disaster or calamity occurs, the local Disaster Coordination
Council (DCC) shall conduct a survey of the affected area within 24 hours upon the
impact to determine the extent of casualties and damages brought about by the
calamity.
 2) Based on the damage assessment and evaluation of the DCC, the LCE shall
recommend to the local Sanggunian the declaration of a state of calamity in
the disaster area, together with appropriate disaster mitigation measures.
3) Within twenty four (24) hours from the occurrence of the calamity and acting
on the basis of the recommendation of the LCE, the local Sanggunian
concerned shall immediately convene and pass a Resolution declaring their
area under a state of calamity and adopt measures to protect the lives and
properties in the area.
4) When two or more barangays are affected by a disaster, the Sanggunian Bayan
or Panlunsod, upon the recommendation of the Municipal/City Mayor, may
declare the entire municipality or city under a state of calamity. The
Sanggunian Resolution embodying the declaration need not be reviewed or
approved by the Sangguniang Panlalawigan.
5) When two or more municipalities or cities are affected by a disaster, the
Sanggunian Panlalalwigan, upon the recommendation of the Provincial
Governor, may declare the entire province or a portion thereof under a state of
calamity. The Sanggunian Bayan/Sanggunian Panlunsod of the affected town
or city need not declare their areas as calamity areas.
6) The concerned Sanggunian shall immediately furnish their respective RDCCs
and the NDCC a copy of the Sanggunian Resolution embodying the calamity
area declaration.

Calamity Area Declaration by the President of the Philippines

1. When two or more provinces or chartered cities are affected by a calamity,

the National Disaster Coordinationg Council shall recommend to the
President the declaration of a state of calamity over these areas, including
the release of calamity funds, if necessary, and mplementation of
appropriate remedial measures.

CRITERIA FOR CALAMITY AREA DECLARATION

A city, municipality, province or region may be declared under a State of

Calamity whenever two or more of the following conditions brought about the fire
of catastrophic magnitude, destructive typhoons, tornadoes, earthquakes,
tsunamis, volcanic eruptions, floods lasting for at least four (4) days, or drought
affecting crop production are present.
 1) At least twenty percent ( 20 %) of the population are affected and in need of
emergency assistance or those dwelling units have been destroyed.
2) A great number or at least 40% of the means of livelihood such as banoas,
fishing boars, vehicles and the like are destroyed.
3) Major roads and bridges are destroyed and impossible for at least a week, thus
disrupting the flow of transport and commerce.
4) Widespread destruction of fishponds, crops, poultry and livestock, and other
agricultural products, and
5) Disruption of lifelines such as electricity, potable water system, transport
system communications system and other related systems which cannot be
restored within one (1) week, except for highly-urbanized areas where
restoration of the above lifelines cannot be made within twenty-four (24)
hours.

For epidemics or outbreak of disease, a city or municipality, province or region may

be declared under a state of calamity based on the following:

1) There is an occurrence of an unusual (more than the previously expected)

number of cases of a disease in a given area or among a specific group of
people over a particular period of time. To determine whether the number is
more than the expected, the number should be compared with the number of
cases during the past weeks or months or a comparable period during the last
few years).
2) There is a clustering of oases. A cluster is a group of oases in a given area
over a particular time.

DURATION OF CALAMITY AREA DECLARATION

Calamity area declaration either by the President or the local Sanggunian may
be enforced in the affected area for duration of one (1) year, unless the effects of the
disaster is recurring or protracted, in which case, declaration shall be a continuing
one. However, once 85% of the repair and rehabilitation works and services has been
accomplished within one-year duration, the calamity area declaration may already be
terminated or lifted by the President of the Local Sanggunian as the case maybe.
MEASURES TO BE UNDERTAKEN UPON THE DECLARATION OF STATE OF
CALAMITY

Upon the declaration of a state of calamity, the following remedial measures

may be undertaken by the concerned national agencies/ LGs in order to mitigate the
effects of the disaster and stabilize the situation in the disaster-stricken areas:

a. Automatic imposition of price control. Monitoring, prevention and control of

overpricing/profiteering and hoarding of prime commodities, medicines and
petroleum product by the Local Price Coordination Council; (see 1 of R.A. 7851)

b. Programming/reprogramming funds for the repair and safety-upgrading of public

infrastructure and facilities;

c. Allowing the granting or restructuring of loans by government financing or lending

institution to bonafide victims of the disaster in accordance with their respective
charters.

The same deferment or moratorium shall be granted to corporate borrowers of

aforesaid government credit institutions whose operations are seriously impaired by
the calamity.

d. Release of national calamity funds to agencies involved in relief operations and

rehabilitation and restoration of damaged infrastructures as well as to affected LGUs.

e. Release of Local Calamity Funds within the affected LGU or other areas affected
by a disaster or calamity for relief, rehabilitation, reconstruction and other works or
services.

REPEALING CLAUSE

Any provisions of pertinent Memorandum Orders or Circulars inconsistent

herewith are deemed rescinded or modified accordingly

EFFECTIVITY CLAUSE

This Memorandum Order shall take effect upon approval