- ---

MEMORANDUM No.: 2.01!!:009

Date: 22~_..__88 2014
.!..-'-"AU""'----"'-G

FOR: All Assistant Commissioners, Cluster Directors, Regional Directors, Assistant

Directors, Supervising Auditors, Audit Tedm Leaders and All Others Concerned

SUBJECT: Guidelines in the Audit of Disaster Risk Reduction and Management

(DRRM) Funds

I. Rationale

In the use of DRRM funds, emergency procedures are usually introduced and
become operational but procedural controls are frequently circumvented or simply
ignored to save lives and mitigate losses. In these conditions, our auditors as well as the
people who have the fiscal responsibility over the said funds face challenges in terms of
handling and managing risks which are inherent in disaster-related activities.

COA's goal is to improve the availability, reliability and quality of financial

information on disaster funds, make it more transparent, enhance accountability and
mitigate potential risks in disaster-related transactions. Hence, the Accounting and
Reporting Guidelines on the receipt and utilization of National Disaster Risk Reduction
and Management (NDRRM) Fund, cash and in-kind aids/donations from local and
foreign sources, and funds allocated from the agency regular budget for DRRM program
was issued under COA Circulat; No. 2014-002 dated April 15, 2014. The guidelines are
benchmarked with international standards on accounting and auditing. For the Local
DRRM Funds, the accounting and reporting guidelines was issued under COA Circular
No. 2012-002 dated September 12, 2012.

At present, there is no government-wide audit of disaster funds. The audit is done

on a per agency basis. In terms of internally generated funds or those coming from the
government, not a single audit is done to track the flow of funds or the transfers to
different implementing agencies and/or Civil Society Organizations (CSOs) until it
reaches the beneficiaries. Moreover, the information on the donations, either in cash or
in-kind, received and utilized/distributed is often fragmented, making it difficult to either
track the aid flows or to have an overall picture of the situation. Thus, the COA, through

Page 1 of34
·~
 its constitutionally mandated duty of promulgating accounting and auditing rules and
regulations, formulated these Guidelines in the Audit ofDRRM Funds.

II. Definition of Terms

1. Act - refers to Republic Act No. 10121 otherwise known as the "Philippine
Disaster Risk Reduction and Management Act of 201 0".

2. Civil Society Organizations or CSOs - private organizations whose aims are

neither to generate profits nor to seek governing power. CSOs unite people to
advance shared goals and interests. They have a presence in public life, expressing
the interests and values of their members or others, and are based on ethical,
cultural, scientific, religious or philanthropic considerations. CSOs include non-
government organizations (NGOs), professional associations, foundations,
independent research institutes, community-based organizations (CBOs), faith-
based organizations, people's organizations, social movements, and labor unions.

3. Climate Change - a change in climate that can be identified by changes in the

mean and/or variability of its properties and that persists for an extended period
typically decades or longer, whether du·~: to natural variability or as a result of
human activity.

4. Compliance Audit - this type of audit seeks to ensure that all resources for DRRM
are appropriated/received and used in accordance with laws, rules and regulations.

5. Disaster - a serious disruption of the functioning of a community or a society

involving widespread human, material, economic or environmental losses and
impacts, which exceeds the ability of the affected community or society to cope
using its own resources. Disasters are often described as a result of the combination
of: the exposure to a hazard; the conditions of vulnerability that are present; and
insufficient capacity or measures to reduce or cope with the potential negative
consequences. Disaster impacts may include loss of life, injury, disease and other
negative effects on human, physical, mental and social well-being, together with
damage to property, destruction of assets, loss of services, social and economic
disruption and environmental degradation.

Disaster Mitigation - the lessening or limitation of the adverse impacts of hazards

and related disasters. Mitigation measures encompass engineering techniques and
hazard-resistant construction as well as improved environmental policies and public
awareness.

7. Disaster Preparedness - the knowledge a.nd capacities developed by governments,

professional response and recovery organizations, communities and individuals to
effectively anticipate, respond to, and recover from, the impacts oflikely, imminent
or current hazard events or conditions. Preparedness action is carried out within the

Page 2 of34
 context of disaster risk reduction and management and aims to build the capacities
needed to efficiently manage all types of emergencies and achieve orderly
transitions from response to sustained recc.very. Preparedness is based on a sound
analysis of disaster risk and good linkages with early warning systems, and includes
such activities as contingency planning, stockpiling of equipment and supplies, the
development of arrangements for coordination, evacuation and public information,
and associated training and field exercises. These must be supported by formal
institutional, legal and budgetary capacities.

8. Disaster Prevention - the outright avoidance of adverse impacts of hazards and

related disasters. It expresses the concept and intention to completely avoid
potential adverse impacts through action taken in advance such as construction of
dams or embankments that eliminate flood risks, land-use regulations that do not
permit any settlement in high-risk zones, and seismic engineering designs that
ensure the survival and function of a critical building in any likely earthquake.

9. Disaster Response - the provision of emergency services and public assistance

during or immediately after a disaster in order to save lives, reduce health impacts,
ensure public safety and meet the basic subsistence needs of the people affected.
Disaster response is predominantly focused on immediate and short-term needs and
is sometimes called "disaster relief'.

10. Disaster Risk- the potential disaster losses in lives, health status, livelihood, assets
and services, which could occur to a particular community or a society over some
specified future time period.

11. Disaster Risk Reduction - the concept and practice of reducing disaster risks
through systematic efforts to analyze and manage the causal factors of disasters,
including through reduced exposures to hazards, lessened vulnerability of people
and property, wise management of land and the environment, and improved
preparedness for adverse events.

12. Disaster Risk Reduction and Management - the systematic process of using
administrative directives, organizations, and operational skills and capacities to
implement strategies, policies and improved coping capacities in order to lessen the
adverse impacts of hazards. and the possibility of disaster. Prospective disaster risk
reduction and management refers to risk reduction and management activities that
address and seek to avoid the development of new or increased disaster risks,
especially if risk reduction policies are not put in place.

13. Distribution - the process of moving goods and materials from storage to the
disaster victims, either directly or through the appropriate distribution channels.

14. Financial Audit - This type of audit seeks to determine the accuracy and reliability
of the data contained in the financial staternents and reports of the agency.

Page 3 of34
-~
 15. Performance Audit- this type of audit involves the evaluation of the economy,
efficiency and effectiveness of an agency in implementing DRRM programs,
projects and activities.

16. Quick Response Fund - thirty percent (30%) allocated from the amount
appropriated for NDRRM/LDRRM Fund or stand-by fund for relief and recovery
programs in order that situation and living conditions of people in communities or
areas stricken by disasters, calamities, epidemics or complex emergencies may be
normalized as quickly as possible.

17. Rehabilitation - measures that ensure the ability of affected communities/areas to

restore their normal level of functioning by rebuilding livelihood and damaged
infrastructures and increasing the communities' organizational capacity.

18. Relief goods - welfare goods for distribution to people affected by calamities,
disasters, ground conflicts such as canned goods, noodles, mosquito nets, blankets,
mats, kitchen utensils, flashlights and other similar items.

III. Salient Features of Republic Act (RA) Noo 10121

RA No. 10121 was enacted on July 27, 2009 and was approved on May 27, 2010.
This Act is entitled an "Act Strengthening the Philippine Disaster Risk Reduction and
Management System, Providing for the National Disaster Risk Reduction and
Management Framework and Institutionalizing the National Disaster Risk Reduction and
Management Plan, Appropriating Funds Therefor and for Other Purposes."

The Act provides for the development of policies and plans and the implementation
of actions and measures pertaining to all aspects of disaster risk reduction and
management, including good governance, risk assessment and early warning, knowledge
building and awareness raising, reducing underlying risk factors, and preparedness for
effective response and early recovery. 1

The NDRRMC and its Networks

The National Disaster Risk Reduction and Management Council (NDRRMCi

or National Council is responsible for ensuring the protection and welfare of the
people during disasters or emergencies. The Council is composed of 44 members as
follows:

Chairperson: Secretary, Department ofNational Defense

1
Section 4, RA No. 10121 •
2
Section 5, RA No. 10121
Page 4 of34
Vice-Chairpersons:

• Secretary, Department of Science and Technology (DOST)- Prevention

& Mitigation
• Secretary, Department of the Interior and Local Government (DILG) -
Preparedness
• Secretary, Department of Social Welfare and Development (DSWD) -
Disaster Response
• Director-General, National Economic and Development Authority
(NEDA)- Rehabilitation & Recovery

Members: 39

Department Secretaries: 14

1. Department of Health (DOH)

2. Department of Environment and Natural Resources (DENR)
3. Department of Agriculture (DA)
4. Department of Education (DepEd)
5. Department of Energy (DOE)
6. Department of Finance (DOF)
7. Department of Trade and Industry (DTI)
8. Department of Transportation and Communication (DOTC)
9. Department of Budget and Management (DBM)
10. Department ofPublic Works and Highways (DPWH)
11. Department ofF oreign Affairs (DFA)
12. Department of Justice (DOJ)
13. Department ofLabor and Employment (DOLE)
14. Department ofTourism (DOT)

Heads of Government Agencies: 12

15. Executive Secretary, Office of the Executive Secretary

16. Secretary, Office of the Presidential Adviser on the Peace Process
(OPAPP)
17. Chainnan, Commission on Higher Education (CHED)
18. Chief of Staff, Armed Forces of the Philippines (AFP)
19. Chief, Philippine National Police (PNP)
20. Secretary, Office of the Press Secretary (OPS)
21. Commissioner, National Anti-Poverty Commission-Victims of
Disasters and Calamities Sector (NAPCVDC)
22. Chairperson, Philippine Commission on Women (PCW)
23. Chairperson, Housing and Urban Development Coordinating Council
(HUDCC)

-~ Page 5 of 34
 24. Executive Director, Climate Change Office of the Climate Change
Commission (CCC)
25. President, Philippine Health Insurance Corporation (PhilHealth)
26. Administrator, Office of Civil Defense (OCD)

Presidents of Government Financial Institution: 2

27. President, Government Service Insurance System (GSIS)

28. President, Social Security System (SSS)

Head of Quasi-government Agency: 1

29. Secretary-General, Philippine National Red Cross (PNRC)

LGU Leagues Presidents: 5

30. President, Union of Local Authorities of the Philippines (ULAP).

31. President, League ofProvinces ofthe Philippines (LPP)
32. President, League of Cities ofthe Philippines (LCP)
33. President, League of Municipalities ofthe Philippines (LMP)
34. President, Liga ng Mga Barangay (LMB)

Civil Society Organizations: 4

Private Sector Organization: 1

The NDRRMC is supported by the following DRRM Council Networks:

• Regional Disaster Risk Reduction and Management Councils (RDRRMC)

• Provincial Disaster Risk Reduction and Management Councils
(PDRRMC)
• City Disaster Risk Reduction and Management Councils (CDRRMC)
• Municipal Disaster Risk Reduction and Management Councils
(MDRRMC)
• Barangay Disaster Risk Reduction and Management Committees

The structure ofthe National Council is replicated in all Regions.

Page 6 of 34
 3
Regional Disaster Risk Reduction and Management Counci/

The members of the RDRRMCs are as follows:

Chairpersons - Regional Directors, OCD

Vice Chairpersons - Regional Directors, DSWD, DILG,
DOST and NEDA

Members - Executives of regional offices and field stations

at the regional level of the government
agencies

Secretariat - Regional Offices, OCD

In Metro Manila, the Metro Manila Disaster Risk Reduction and Management
Council (MMDRRMC)4 has an organizational structure similar to that of the
RDRRMCs. It is composed of the following:

Chairperson - Chairperson, Metro Manila Development

Authority (MMDA)

Vice Chairperson - Regional Director, OCD-NCR

Members - Executives of the MMDA departments or

offices and/or regional offices or field stations
operating in the National Capital Region
(NCR) and all other national government
agencies operating in NCR

Secretariat - OCD-NCR

In the Autonomous Region in Muslim Mindanao (ARMM), the RDRRMC-

ARMM5 is composed of the following:

Chairperson - Regional Governor-ARMM

Vice Chairperson for:

Disaster Preparedness- Secretary, DILG-ARMM

Disaster Response- Secretary, DSWD-ARMM

3
Section 10, RA No. 10121
Section 6, Rule 4, IRR of R~Ao.
4
5 •
1 121
Section 7, Rule 4, IRR of RAN . 121

Page 7 of34
 Disaster Prevention and Secretary, DOST-ARMM
Mitigation -

Disaster Rehabilitation Executive Director, Regional Planning

and Recovery- and Development Office (RPDO)

Local Disaster Risk Reduction and Management Councif

Local Disaster Risk Reduction and Management Councils (LDRRMCs) -

Provincial, City, Municipal Levels, have their own councils formed and chaired by
their respective Local Chief Executives.

At the Barangay Level, the Barangay DRRM Committee is assumed by the

existing Barangay Development Council.

The LDRRMCs are composed of, but not limited to, the following:

Chairperson- Local ChiefExecutive

Members:
1. Local Planning and Development Officer
2. Head, LDRRMO
3. Head, Local Social Welfare and Development Office
4. Head, Local Health Office
5. Head, Local Agriculture Office
6. Head, Gender and Development Office
7. Head, Local Engineering Office
8. Head, Local Veterinary Office
9. Head, Local Budget Office
10. Division Head/Superintendent of Schools , DepED
11. Highest-ranking officer, Armed Forces ofthe Philippines
(AFP) assigned in the area
12. Provincial Director/City/Municipal Chief, Philippine National
Police (PNP)
13. Provincial Director/City/ Municipal Fire Marshall, Bureau of
Fire Protection (BFP)
14. President, Association ofBarangay Captains (ABC)
15. Philippine National Red Cross (PNRC)
16. Four (4) accredited CSOs and
17. One (1) private sector representative

6 ••
Section 11, RA No. 10121

Page 8 of34
 7
Local Disaster Risk Reduction and Management Office (LDRRMO)

An LDRRMO shall be established in every provinc.e, chf . 1.d municipality,

and a Barangay Disaster Risk Reduction and Manngement Cornmit1 .• ~ (BDRRMC) in
every barangay.

The LDRRMO shall be under the office of the governor, · ;,ty or municipal
mayor, and in case of the BDRRMC, the~ punong barang<:~.y. The I· 'lRMOs shall be
initially organized and composed of a DS'.RN10 to be assisted ,r three (3) staff
responsible for: (1) administration and training; (2) research ared lanning; and (3)
operations and warning.

B. Powers and Functions

National Disaster Risk Reduction and Manogen' · t Council (NDRRJ\1(: . /'National

Council

The National Council8 is empo~ 1 :th policy-m::Jdn,5, coordination,

integration, supervision, monitoring and e : '.l:' functions and h1s the following
responsibilities:

1. Develop a National Disaster Risk Reducti<, and Mam~gement Framework

(NDRRMF) which shall provide for a compreh ~ive, all-ha:~rtrds, multi-sectoral,
inter-agency and community-based approach ~J disaster risk reduction and
management. The Framework shall serve as th• Jrincipal g1.1ide to disaster risk
reduction and management effort': ;n the country 1d shall be reviewed on a five-
year interval, or as may be deemed necessary, in Tder to ensure its relevance to
the times;

2. Ensure that the National Disaster Risk Redt,. tion and Management Plan
(NDRRMP) is consistent with the NDRRMF;

3. Advise the President of the Philippines on the si '~.us of di,saster preparedness,

prevention, mitigation, response and rehabilitation o ·rations being undertaken by
;I

the government, CSOs,. private sector, and vol:nteers; recommend to the

President the declaration of a state of calBmity in ar1 .. :~ extensively damaged; and
submit proposals to restore nom1alcy .~ offecte'' areas, to include calamity
fund allocation;

4. Ensure a multi-stakeholder participali/ m the d ' ,elopment, updating, and

sharing of a Disaster Risk Reduction Manageme · . Information System and

7
Section 12, RA No. 10121.
8
Section 6, RA No. 10121
Page 9 of34
 Geographic Information System-based national risk map as policy, planning and
decision-making tools;

5. Establish a national early warning and emergency alert system to provide accurate
and timely advice to national or local emergency response organizations and to
the general public through diverse mass media to include digital and analog
broadcast, cable, satellite television and radio, wireless communications, and
landline communications;

6. Develop appropriate risk transfer mechanisms that shall guarantee social and
economic protection and increase resiliency in the face of disaster;

7. Monitor the development and enforcement by agencies and organizations, various

laws, guidelines, codes or technical standards required by the Act;

8. Manage and mobilize resources for disaster risk reduction and management
including the National Disaster Risk Reduction and Management Fund;

9. Monitor and provide the necessary guidelines and procedures on the Local
Disaster Risk Reduction and Management Fund (LDRRMF) releases as well as
utilization, accounting and auditing thereof;

10. Develop assessment tools on the existing and potential hazards and risks brought
about by climate change to vulnerable areas and ecosystems in coordination with
the Climate Change Commission;

11. Develop vertical and horizontal coordination mechanisms for a more coherent
implementation of disaster risk reduction and management policies and programs
by sectoral agencies and LGUs;

12. Formulate a national institutional capability building program for disaster risk
reduction and management to address the specific weaknesses of various
government agencies and LGUs, based on the results of a biennial baseline
assessment and studies;

13. Formulate, harmonize, and translate into policies a national agenda for research
and technology development on disaster risk reduction and management;

14. In coordination with the Climate Change Commission, formulate and implement a
framework for climate change adaptation and disaster risk reduction and
management from which all policies, programs, and projects shall be based;

15. Constitute a technical management group composed of representatives of the

member departments, offices, and organizations, that shall coordinate and meet as

Page 10 of34
 often as necessary to effectively manage and sustain national efforts on disaster
risk reduction and management;

16. Task the OCD to conduct periodic assessment and performance monitoring of the
member-agencies of the NDRRMC, and the Regional Disaster Risk Reduction
and Management Councils (RDRRMCs), as defined in the NDRRMP; and

17. Coordinate or oversee the implementati.on of the country's obligations with

disaster management treaties to which it i:, a party and see to it that the country's
disaster management treaty obligations be incorporated in its disaster risk
reduction and management frameworks, policies, plans, programs and projects.

Office ofCivil Defense (OCD)

The OCD has the primary mission of administering a comprehensive national

civil defense and disaster risk reduction and management program by providing
leadership in the continuous development of strategic and systematic approaches as
well as measures to reduce the vulnerabilities and risks to hazards and manage the
consequences of disasters. 9

It is the implementing arm of the NDRRMC and also performs secretariat

functions of the Council.

The OCD's powers and functions are as follows 10 :

1. Advise the National Council on matters relating to disaster risk reduction and
management consistent with the policies and scope as defined in RA No. 10121;

2. Formulate and implement the NDRRMP ensure that the physical framework,
social, economic and environmental plans of communities, cities, municipalities
and provinces are consistent with such plan, The National Council shall approve
theNDRRMP;

A/ Identify, assess and prioritize hazards and risks m consultation with key
3. stakeholders;

r~ 4. Develop and ensure the implementation of national standards in carrying out

disaster risk reduction programs including preparedness, mitigation, prevention,
response and rehabilitation works, from data collection and analysis, planning,
implementation, monitoring and evaluation;

5. Review and evaluate the Local Disaster Risk Reduction and Management Plans
(LDRRMPs) to facilitate the integration of disaster risk reduction measures into
9
Section 8, RA No. 10121'
10
Section 9, RA No. 10121
Page 11 of34
 the local Comprehensive Development an (CDP) and Comprehensive. Land Use
Plan (CLUP);

6. Ensure that the LGUs, through the Local Disaster Risk Reduction and
Management Offices (LDRRMOs) are properly informed and adhere to the
national standards and programs;

7. Formulate standard operating procedures for the deployment of rapid assessment

teams, information sharing among different government agencies, and
coordination before and after disasters at all levels;

8. Establish standard operating procedures on the communication system among

provincial, city, municipal, and barangay disaster risk reduction and management
councils, for purposes ofwarning and alerting them and for gathering information
on disaster areas before, during and after disasters;

9. Establish Disaster Risk Reduction and Management Training Institutes in such

suitable location as may be deemed appropriate to train public and private
individuals, both local and national, in such subject as disaster risk reduction and
management among others. The Institute shall consolidate and prepare training
materials and publications of disaster risk reduction and management books and
manuals to assist disaster risk reduction 2nd management workers in the planning
and implementation ofthis program and projects.

10. The Institute shall conduct research programs to upgrade knowledge and skills
and ~ocument best practices on disaster risk reduction and management.

The Institute is also mandated to conduct periodic awareness and education

programs to accommodate new elective officials and members of the LDRRMCs;

11. Ensure that all disaster risk reduction programs, projects and activities requiring
regional and international support shall be in accordance with duly established
national policies and aligned with international agreements;

12. Ensure that government agencies and LGUs give top priority and take adequate
and appropriate measures in disaster risk reduction and management;

13. Create an enabling environment for substantial and sustainable participation of

CSOs, private groups, volunteers and communities, and recognize their
contributions in the government's disaster risk reduction efforts;

14. Conduct early recovery and post-disaster

needs assessment institutionalizing
·!i;der analysis as part of i~··

Page 12 of 34
 15. Establish an operating facility to be known as the National Disaster Risk
Reduction and Management Operations Center (NDRRMOC) that shall be
operated and staffed on a twenty-four (24) hour basis;

16. Prepare the criteria and procedure for the enlistment of accredited community
disaster volunteers (ACDVs). It shall include a manual of operations for the
volunteers which shall be developed by the OCD in consultation with various
stakeholders;

17. Provide advice and technical assistance and assist in mobilizing necessary
resources to increase the overall capacity of LGUs, specifically the low income
and in high-risk areas;

18. Create the necessary offices to perform its mandate as provided in the Act; and

19. Perform such other functions as may be necessary for effective operations and
implementation of the Act.

Regional Disaster Risk Reduction and Management Council (RDRRMC)

The RDRRMC 11 is tasked to coordin? integrate, supervise and evaluate the

activities of the LDRRMCs. It is responsible: in ensuring disaster sensitive regional
development plans. In case of emergencies, it shall convene the different regional
line agencies and concerned institutions and authorities.

Local Disaster Risk Reduction and Management Council (LDRRMC/ 2

The LDRRMC's responsibilities are as follows:

1. Approve, monitor and evaluate the implementation of the LDRRMPs and

regularly review and test the plan consistent with other national and local
planning programs;

2. Ensure the integration ot: disaster risk reduction and climate change adaptation
into local development plans, programs and budgets as a strategy in sustainable
development and poverty reduction;

3. Recommend the implementation of forced or pre-emptive evacuation of local

residents, if necessary; and

4. Convene the local council once every three months or as necessary.

Section 10, RA No. lP~~J

11

Section ll(b), RA No. ~

12

Page 13 of 34
 Local Disaster Risk Reduction and Management Office (LDRRM0/ 3

The LDRRMO is responsible for setting the direction, development,

implementation and coordination of disaster risk management programs within their
territorial jurisdiction.

The LDRRMOs and the BDRRMCs shall organize, train and directly
supervise the local emergency response teams and the Accredited Community
Disaster Volunteers (ACDVs).

The provincial, city and municipal DRRMOs or BDRRMCs shall perform the
following functions:

1. Design, program, and coordinate disaster risk reduction and management

activities consistent with the National Council's standards and guidelines;

2. Facilitate and support risk assessments and contingency planning activities at the
local level;

3. Consolidate local disaster risk information which includes natural hazards,

vulnerabilities, and climate change risks, and maintain a local risk map;

4. Organize and conduct training, orientation, and knowledge management activities

on disaster risk reduction and management at the local level;

5. Operate a multi-hazard early warning system, linked to disaster risk reduction to

provide accurate and timely advice to national or local emergency response
organizations and to the general public, through diverse mass media, particularly
radio, landline communications, and technologies for communication within rural
communities;

6. Formulate and implement a comprehensive and integrated LDRRMP in

accordance with the national, regional and provincial framework, and policies on
disaster risk reduction in close coordination with the local development councils
(LDCs);

7. Prepare and submit to the local sanggunian through the LDRRMC and the LDC
the annual LDRRMO Plan and budget the proposed programming of the
LDRRMF, other dedicated disaster risk re~..,uction and management resources, and
other regular funding source/sand budgetary support of the LDRRMOIBDRRMC;

8. Conduct continuous disaster monitoring and mobilize instrumentalities and

entities of the LGUs, CSOs, private sources for the protection and preservation of

13
Section 12, RA No. 101il
Page 14 of 34
 life and properties during emergencies in accordance with existing policies and
procedures;

9. Identify, assess and manage the hazard vulnerabilities and risks that may occur in
their locality;

10. Disseminate information and raise public awareness about those hazards
vulnerabilities and risks, their nature, e<Y~cts, early warning signs and counter-
measures;

11. Identify and implement cost-effective risk reduction measures/strategies;

12. Maintain a database of human resource, equipment, directories, and location of

critical infrastructures and their capacities such as hospitals and evacuation
centers;

13. Develop, strengthen and operationalize mechanisms for partnership or networking

with the private sector, CSOs, and volunteer groups;

14. Take all necessary steps on a continuing basis to maintain, provide, or arrange the
provision of, or to otherwise make available, suitably-trained and competent
personnel for effective civil defense and disaster risk reduction and management
in its area;

15. Organize, train, equip and supervise the local emergency response teams and the
ACDVs, ensuring that humanitarian aid workers are equipped with basic skills to
assist mothers to breastfeed;

16. Respond to and manage the adverse effects of emergencies and carry out recovery
activities in the affected area, ensuring that there is an efficient mechanism for
immediate delivery of food, shelter and medical supplies for women and children,
endeavor to create a special place where internally-displaced mothers can find
help with breastfeeding, feed and care for their babies and give support to each
other;

17. Within its area, promote and raise public awareness of and compliance with the
Act and legislative provisions relevant to the purpose of the Act;

18. Serve as the secretariat and executive arm ofthe LDRRMC;

19. Coordinate other disaster risk reduction and management activities;

20. Establish linkage/network with other LGUs for disaster risk reduction and
emergency response purposes;

Page 15 of 34
 21. Recommend through the LDRRMC the, .;;actment of local ordinances consistent
with the requirements of the Act;

22. Implement policies, approved plans and programs of the LDRRMC consistent
with the policies and guidelines laid down in the Act;

23. Establish a Provincial/City/Municipal/Barangay Disaster Risk Reduction and

Management Operations Center;

24. Prepare and submit, through the LDRRMC and the LDC, the report on the
utilization of the LDRRMF and other dedicated disaster risk reduction and
management resources to the local Commission on Audit (COA), copy furnished
the regional director of the OCD and the Local Government Operations Officer of
the DILG; and

25. Perform other matters that may be authorized by the LDRRMC.

The BDRRMC shall be a regular committee of the existing BDC and shall be
subject thereto. The punong barangay shall facilitate and ensure the participation of at
least two (2) CSO representatives from existing and active community-based people's
organizations representing the most vulnerable and marginalized groups in the
barangay.

C. Coordination During Emergencies 14

The LDRRMCs shall take the lead in preparing for, responding to and
recovering from the effects of any disaster based on the following criteria:

1. The BDC, if a barangay is affected;

2. The city/municipal DRRMCs, if two (2) or more barangays are affected;
3. The provincial DRRMC, if two (2) or more cities/municipalities are affected;
4. The regional DRRMC, if two (2) or more provinces are affected; and
5. The NDRRMC, if two (2) or more regions are affected.

The NDRRMC and intermediary LDRRMCs act as support to LGUs, being in

the frontline and having the primary responsibility of responding to disaster. The
NDRRMC and LDRRMCs set the coordination mechanisms and policies for the
private sector and civil society groups.

"section 15, RA No. 1012;;g-

Page 16 of34
D. National Disaster Risk Reduction and Management Plan (NDRRMP)

The NDRRMP is the document formulated and implemented by the OCD

pursuant to RA No. 10121 that sets out goals and specific objectives for reducing
disaster risks together with related actions to accomplish these objectives. The Plan
provides for the identification of hazards, vulnerabilities and risks to be managed at
the national level; disaster risk reduction and management approaches and strategies
to be applied in managing said hazards and risks; agency roles, responsibilities and
lines of authority at all government levels; and vertical and horizontal coordination of
disaster risk reduction and management in the pre-disaster and post-disaster phases.
It shall be in conformity with the NDRRMF. Significantly, it includes a system for
monitoring and evaluation of programs.

The NDRRMP for 2011-2028 which was approved on February 7, 2012 is a

road map on how DRRM shall contribute to sustainable development. It has four
long-term goals targeted through the priority areas with corresponding objectives.

Vision: Safer, adaptive and disaster resilient Filipino communities towards

sustainable development ·-·-
-·--·

Priority Areas Long-term Goals

Disaster Prevention and Avoid hazards and mitigate their potential impacts by
Mitigation reducing vulnerabilities and exposure and enhancing
capacities of communities

Disaster Preparedness Establish and strengthen capacities of communities to

anticipate, cope and recover from the negative impacts of
emergency occurrences and disasters

Disaster Response Provide life preservation and meet the basic subsistence
needs of affected population based on acceptable
standards during or immediately after a disaster

Disaster Rehabilitation Restore and improve facilities, livelihood and living

and Recovery conditions and organizational capacities of affected
communities, and reduced disaster risks in accordance
with the "building back better" principle

In the local government, the LDRRMCs shall formulate and implement a

comprehensive and integrated LDRRMP in accordance with the national, regional
and provincial framework, and policies on disaster risk reduction in close
coordination with the LDCs.

Page 17 of34
 E. Declaration and Lifting of State of Calamity

Presicent of the Philippines

the declaratkm '1f H duster of barangays, n ' c:~ies,
)rov; ces, and regions
under a stat~ of caia;nity,. and the Efti;11: -~. on he c teria set by the
National Cou:r,c: PF~sident's cbclr\rJiior n li .v:mant intei nati 1al humanitarian
assistance as de·;:med necessary.

The c'C~ end lifti.ng of the st1te of·~ Jam.J·• may alsc be issued by the
local sanggu;-.,j::,. ' tl:v~ r~ccmmendatinu of ht~ _,<)R f ~AC, "laser on the results of
~ .. ~--, .,,p. t~' J 4~. ' ,,;, \'j
th e dan1age <e,J,:t . , , '~J1 <"1G nee~._::. aEa1y".s

The J'Jational Council shall determine thf. crite fo · the declaration and
lifting of a stD.te of calamity, including epidemics.

The C:eeJ:;,:·stion of a state of calamity ':hr~r t:· the local sanggunian or

President oft'1c: )hi..l:.Jpincs shall be lxsed on the t ;r;:;Jt o_:· casu:tlties and/or damages,
that is, when tvrc or r:nor~ of the;: folJ.mving conditicy: (;xis<~

• At k:;;;,st twenty percent (20%,) of the p• Jmion are 1ffected and in

need of emergency assistance or thos, "Vdhng U'Iits have been
ckstroycd;
• A n>~lillber or at leas.~ f~yc'" ' ~cc (,',G}o) of the means of
livelihood such as banc:as, fish. ' ~~ hides m,d the likes are
deEtroyed;
• M:a}c;r ro;::-tds and bridges are de,, , ; "' :npassal::·le for at least a
disrupting the flow f·: 1.1 ·~~~-~ me corn nerce;
• ·ead destruction of flslqond~, rFJl p mltry and livestock,
ann agricultural products; anc'
• Epidemics.

Calat'11i1y area declaration may be enforced 1 the :1ffected area for the
duration of one year, unless the effects of the disaste I:: recHring or protracted, in
which case, declaration shaH be a continuing one. o·,. ighty-five percent (85%) of
the repair and rehat>ilitation works and services hav~ [ · · 1 acc•)mplished within one-
year duration, the ~alamity are.a declaration may be tcm. ':tted nr lifted.
17

18
F. Mechanism for lJtemational Humanitarian Assistance

The imJx~::--r.ahon and donation of food, doth=.r:gJ " -:dicine and equipment for
relief and reC0'·\:;•:j and other disarter m:mageroent J.n:i cov~ry-related supplies is

15
Section 16, RA No. 10121
16
Section 3, Rule 12, IRR of !?l.l\ f'<o. 10121
17
NDCC Memo Order No.4 cb1E'd 1!\"lr,:h ll, 1993
18 "
l\-, ;, ,;

Section 18, RA No. 10121 ''·'

l Page 18 of34
 authorized in accordance with Section 105 of the Tariff and Customs Code of the
Philippines, as amended, and the prevailing provisions of the General Appropriations
Act covering national internal revenue taxes and import duties of national and local
government agencies; and the said importations and donations are considered as
importation by and/or donation to the NDRRMC, subject to the approval of the Office
ofthe President.

G. Prohibited Acts 19

Any person, group or corporation who commits any of the following

prohibited acts is held liable and subjected to the penalties in Section 20 of the Act:

1. Dereliction of duties which leads to destruction, loss of lives, critical damage of

facilities and misuse of funds;

2. Preventing the entry and distribution of relief goods in disaster-stricken areas,

including appropriate technology, tools, equipment, accessories, disaster
teams/experts;

3. Buying, for consumption or resale, from disaster relief agencies any relief goods,
equipment or other aid commodities which are intended for distribution to disaster
affected communities;

4. Buying, for consumption or resale, from the recipient disaster affected persons
any relief goods, equipment or other aid commodities received by them;

5. Selling of relief goods, equipment or other aid commodities which are intended
for distribution to disaster victims;

6. Forcibly seizing relief goods, equipment or other aid commodities intended for or
consigned to a specific group of victims or relief agency;

7. Diverting or misdelivery of relief goods, equipment or other aid commodities to

persons other than the rightful recipient or consignee;

8. Accepting, possessing, using or disposing relief goods, equipment or other aid

commodities not intended for nor consigned to him/her;

9. Misrepresenting the source of relief goods, equipment or other aid commodities

by:
a. either covering, replacing or defacing the labels of the containers to make
it appear that the goods, equipment or other aid commodities came from
another agency or persons;
19
Section 19, RA No. 10121

Page 19 of 34
 b. repacking the goods, equipment or other aid commodities into containers
with different markings to make it appear that the goods came from
another agency or persons or was released upon the instance of a particular
agency or persons;

c. Making false verbal claim that the goods, equipment or other aid
commodity in its untampered original containers actually came from
another agency or persons or was released upon the instance of a particular
agency or persons;

10. Substituting or replacing relief goods, equipment or other aid commodities with
the same items or inferior/cheaper quality;

11. Illegal solicitations by persons or organizations representing others as defined in

the standards and guidelines set by the NDRRMC;

12. Deliberate use of false or inflated data in support of the request for funding, relief
goods, equipment or other aid commodities for emergency assistance or
livelihood projects; and

13. Tampering with or stealing hazard monitoring and disaster preparedness

equipment and paraphernalia.

IV. Sources and Utilization of DRRM Funds

A. National Government Agencies (NGAs)

1. Annual General Appropriations Act (GAA)

a. NDRRM Fund

The NDRRM Fund is appropriated in the annual GAA which shall be used
for disaster risk reduction or mitigation, prevention and preparedness
activities such as, but not limited training of personnel, procurement of
equipment and capital expendituF~s. It can also be utilized for relief:
recovery, reconstruction and other 'dork services in connection with natural
or human-induced calamities which may occur during the budget year or
those that occurred in the past two years from the budget year. 20

20
Section 22.a, RA No. 101'21
Page 20 of34
 b. Quick Response Fund (QRF)

The QRF is the thirty percent (30%)) .· ~he NDRRM Fund allocated to the
agencies identified by the NDRRr1'!C 1hr relief and recovery programs in
order that situation and living conditions of pe;)ple in communities or areas

normalized as qmckly as possible.- 1

stricke~ by disas~ers, calamiti~s, e~ idemics, or complex emergencies, may be

c. Allocation from agency regular budget

All departments, bureaus, offices and agencies of the government are

authorized to use a portion of their aprvopriations to implement projects
designed to address DRRM activities in :::-.-:ordance with the guidelines to be
issued by the NDRRMC in coordination 1; th the Department of Budget and
Management (DBM). 22

2. Cash Donations from Local and Foreign Source

Cash donations are assistance or contrc ution from the local or foreign
donor entity/individual to the National Govemrr, · J forDRRM projects/program.

B. Local Government Units (LGUs)

General Fund Current Year AppropriatiOJ,

· Not less than five percent (5%) of the es: 'mated revenue from regular
sources shall be set aside to support disaster risk n :magement activities such as,
but not limited to, pre-disaster preparedness vograms including training,
purchasing life-saving rescue equipment, supplies ar l medicines, for post-disaster
activities, and for the payment of premiums on calar .i:y insurance.

Thirty percent (30%) of the amount appropr ' ted shall be allocated to the
QRF or stand-by fund for telief and recovery project; md activities.

The amount corresponding to the unexpendec appropriation, except those

for capital outlay, shall be transferred to the Trust Fur1 1 books and recognized as
Trust Liabilities-DRRM. It shall be utilized for the pur lOSe of supporting disaster
risk reduction and management activities of the LDRl MCs within the next five
years.

"Section 22.e, RA No.

12~ ~~ f'·
"Section n.c, RA No. 10
1012~ W~ !}-
.
3, R"le 19, IRR 1012 /\ '
1

Page 21 of34
 2. Funds transferred from the NDRRM Fund

These are funds received from the National Government for DRRM
activities upon approval of the President.

3. Funds received from other LGUs and other sources.

These are cash donations received from other LGUs, local and foreign
sources.

V. General Guidelines

1. The audit of the Disaster Risk Reducti'm and Management (DRRM) shall be part
of the regular audit of agencies.

2. The financial, compliance and performance audit in the evaluation ofDRRM shall
be carried out and shall cover the four thematic areas of disaster risk reduction
and management activities, as follows:

a) Prevention and Mitigation

b) Preparedness
c) Response
d) Rehabilitation and Recovery

3. The audit shall be conducted in accordance with Philippine Public Sector

Standards on Audit (PPSSAs); INTOSAI GOY 9250 - the Integrated Financial
Accountability Framework (IF AF): guidance on improving information on
financial flows ofhumanitarian aid; and the following International Standards of
Supreme Audit Institutions (ISSAis), among others:

a) IS SAl 5500- Introduction to the 5500 series of ISSAis and INTO SAl
GOY 9250
b) ISSAI 5510- The audit of disaster risk reduction
c) ISSAI 5520- the audit of disaster-related aid
d) ISSAI 5530- Adapting audit pl\Jcedures to take account of the increased
risk of fraud and corruption in the emergency phase
following a disaster
e) IS SAl 5540- Use of geospatial information in auditing disaster
management and disaster-related aid

Page 22 of34
 4. The auditors shall have an understanding oi .,~;.A No. 10121 and its Implementing
Rules and Regulations (IRR), particularly on the following:

a) Members/composition of the following DRRM Councils and their

ro1es/responsibilities:

• National Disaster Risk Reduction and Management Council (NDRRMC)

• Regional Disaster Risk Reduction and Management Council (RDRRMC)
• Local Disaster Risk Reduction and Management Council (LDRRMC)
• Barangay Development Council (BDC)

b) Role/Responsibilities ofthe Office of Civil Defense (OCD)

c) Development/Formulation, implementation, evaluation, assessment and

monitoring of DRRM plans

d) Prohibited acts

5. The auditors shall be aware of the entire process of disaster risk reduction and
management.

6. Auditors shall make site visits, if warranted, to observe and evaluate the work of
agencies involved in DRRM operations.

The results of audit shall be incorporated in the annual audit report and the
consolidated results are submitted to the OCD Auditor for nationwide
consolidation.

VI. Specific Guidelines

The auditors shall verify/validate compliance by management with the following:

DRRMPians

1. National Disaster Risk Redaction and Management (NDRRM) Plan is formulated

in accordance with the approved NDRRM Framework.

2. Local Disaster Risk and Reduction Management (LDRRM) Plan is formulated in

accordance with the national, regional and provincial framework, and policies on
disaster risk reduction in close coordination with the LDCs.

-~ Page 23 of34
3. Member agencies of the NDRRMC formulate their own DRRM Implementing Plan
and manual of operations, establish their emergency operations centers and
designate a focal officer for DRRM.

4. The DRRM Implementing Plan contains the courses of actions before, during and
after the calamities/disasters and includes, among others, the following:

a) mechanism for the timely delivery of relief goods (food and medical supplies)
to the victims such as:

• assessment on the extent of damage, and needs and number of victims

• procurement and repacking of relief goods
• shipment/transporting of relief goods
• manner of distribution to victims

b) rules and procedures (protocols) on the:

• mobilization of fund resources;

• organization of emergency group of responders, rescue teams or
community service brigades;
• activation of disaster command centers;
• installation/activation of area-wide early warning system;
• designation of evacuation centers and provision for temporary shelters;
• deployment of personnel trained in food handling/relief distribution and
medical and rescue teams;
• communication links with concerned government agencies and volunteer
groups;

c) information dissemination on disaster awareness and preparedness;

d) roles and responsibilities of the implementing government agencies/offices

and Civil Society Organizations (CSOs);

e) manner of coordination between, among and within the implementing

agencies; and

f) periodic assessment and performance monitoring on the implementation of the

DRRMPlans.

5. The DRRM Plans are regularly reviewed and updated to consider current
vulnerabilities.

Page 24 of34
DRRMFunds

6. The utilization of DRRM Funds is in accordance with the purpose for which these
were appropriated and/or with the intent of the donors. In addition, for LGUs, the
utilization is in conformity with the LDRRM Fund Investment Plan prescribed in
COA Circular No. 2012-002 dated September 12, 2012.

7. For NGAs, receipt of Notice of Cash Allocation (NCA) for DRRM is recognized as
"Subsidy from National Government" while cash donations as "Trust Liabilities-
DRRM Fund".

8. The cash donations are acknowledged through the issuance of Official Receipt and
deposited with an authorized government depository bank (AGDB). For NGAs, a
separate bank account is maintained for disaster funds while for LGU s, the receipts
are deposited to their Trust Fund bank account.

9. For LGUs, receipt of Notice of Funding Check Issued (NFCI) for DRRM 1s
recognized as "Trust Liabilities-DRRM Fund" in the Trust Fund books.

10. In recognizing the foreign currency cash donations, the amount is converted to local
currency using the current exchange rate at the date of receipt.

11. For NGAs, all unutilized cash donations after the purpose had been served are:

a) remitted to the Bureau of the Treasury (BTr), if no condition to return any

unused amount to the donor; or

b) returned to the donor, if specified in the agreement.

The amount remitted to the BTr and returned to the donor is debited to "Trust
Liabilities-DRRM Fund".

12. For LGUs, the following are observed for all unutilized LDRRM funds:

Current Year Appropriations

a) At the end of the year, the amount corresponding to the unutilized

appropriation, except those for capital outlay, is transferred to the Trust Fund
bank account and recorded in the Trust Fund books as "Trust Liabilities-
DRRM Fund".

b) The transferred fund is available within the next five years solely for the
purpose of supporting disaster risk reduction and management activities.

·~ Page 25 of34
 c) After five years, any balance is reverted back to the General Fund and made
available for other social services identified by the local sanggunian.

Cash Donations

d) All unutilized cash donations remain in the "Trust Liabilities-DRRM Fund"

until fully disbursed.

13. The national and local government agen;.:ies prepare the report on the receipt and
utilization of the DRRM Funds using the respective formats prescribed in COA
Circular Nos. 2014-002 dated April 15, 2014 and 2012-002 dated September 12,
2012.

14. The monthly and annual reports consolidating the reports mentioned in Item VI.l3
are prepared and submitted by OCD to the NDRRMC, copy furnished the COA
Auditor of the OCD in accordance with COA Circular No. 2014-002 dated April
15, 2014.

Procurement

15. In the absence of specific pronouncement by the Government Procurement Policy

Board (GPPB) or requirements of the donor, the provisions ofRA 9184, otherwise
known as the Government Procurement Act, are applied in the procurement of
goods and services.

16. Procurement of goods and services are determined based on the following, among
others:

a) extent of damage
b) number ofvictims and their basic needs
c) inventories of relief goods and donated PPEs

17. Supplies, materials, relief goods and equipment procured out of DRRM Funds are
taken up in the books under the appropriate Inventory and/or PPE account.
Issuances to the end-users/beneficiaries, except for PPE, shall be taken up under the
appropriate expense account.

In-Kind Donations

18. Receipt of in-kind donations is covered by Acknowledgment Receipt while those

transferred to other government agencies by an Invoice Receipt.

19. Upon receipt, in-kind donations other than PPE are sorted, inventoried/counted and
recorded in the Registry of Donated Relief Goods for DRRM for each kind of relief
.g":',ds;•fore repacking and distributi:uv L.1.-
ft.V, era Page 26 of 34
20. Releases of donated relief goods to the implementing agencies, for distribution to
intended beneficiaries/end-users, are supported with Issuance Form for In-Kind
Donations- DRRM.

21. The cost of donated PPE is based on the declared value by the donor in the deed of
donation or on the bill of lading/airway bill/parcel notice and/or other related
documents. The fair market value/appraised value is used in the absence of
declared value.

22. Donated PPE is recorded in the appropriate Asset account and the corresponding
depreciation is recognized using the accounting policy prescribed by COA.

23. Transfer of donated PPE to other government agencies is approved by the head of
the transferring agency, covered by an Invoice Receipt and dropped from the books
of accounts. The transferred donated PPE is recognized in the books of the
recipient agency.

Storage/Warehousing

24. Goods and materials, whether donated or purchased, are inventoried, sorted,
recorded and reported in accordance with COA Circular No. 2014-002 dated April
15,2014.

25. Pending distribution, the relief goods are properly stored and safeguarded m
warehouses to avoid possible damage/spoilage and/or loss/pilferage.

26. Stockpile of goods are maintained for ready distribution in case of calamities.
Level of stockpile is based on the policy of the implementing agencies concerned.

27. Warehouses/Storage facilities are locakd in accessible, safe and secured areas.

28. In the absence of warehouse/storage facility, temporary distribution hubs/centers

are identified for use in delivery, sorting, packing and distribution activities.

29. Equipment for DRRM activities are properly secured, maintained and accounted
for.

Distribution

30. The distribution is in accordance with the relief distribution mechanism contained
in the DRRM Plans.

Page 27 of34
 31. The availability of the following are properly coordinated with implementing
partners and the recipient LGUs:

a) transportation for the shipment of relief goods

b) equipment for the loading and unloading of relief goods
c) manpower for the sorting, repacking and distribution of relief goods
d) escorts to ensure the security of relief goods to be distributed
e) provision for petroleum, oil and lubricants

32. The donated relief goods are immediately distributed, especially the perishable
items.

33. Release of relief goods from the warehouse are properly documented and
acknowledged/received by the designated LGU officials and immediately
distributed to the intended beneficiaries.

34. Release of goods directly to the victims/intended beneficiaries is based on the

validated list of affected families.

Others

35. The roles and responsibilities and the corresponding accountabilities of the person/s
in charge in the procurement, handling, warehousing and distribution are clearly
defined and properly discharged.

36. Documents/Reports/Records are properly maintained/updated and safeguarded.

37. Access to warehouses/storage facilities shall be limited to authorized personnel.

38. Volunteers are oriented as to their respective assignments/tasks and closely

supervised.

VII. Reporting on the Results of Audit

1. The results of audit shall b~ communicated to the management through the issuance
of an Audit Observation Memorandum (AOM).

2. All prior years' observations and recommendations that remain uncorrected or

partially implemented, especially those with material impact on the financial
statements and/or operations shall be reitcl''ited by issuing an AOM with updated
figures/amounts or data and the reasons for rr;.anagement' s inaction.

3. Any unresolved issues shall be incorporated in the Annual Audit Report under a
separate caption "Disaster Risk Reduction and Management".

-~
Page 28 of34
4. The unresolved issues shall be transmitted in a matrix form together with the financial
and operational highlights, and the status of implementation of prior years'
recommendations, if any, in electronic and bard copies to the OCD Auditor for
consolidation.

5. The matrix shall contain the following:

a) Audit Observations - are the gist of the AOMs issued containing the criteria,
condition, cause and effect.

b) Audit recommendations - shall address both the cause and effect.

c) Management Comments - are the agency's explanation/comments on the

issues raised.

d) Auditor's Rejoinder are the auditor's reactions to the agency's

explanations/comments.

6. The financial and operational highlights shall contain the following information and
presented as follows:

a) Financial Highlights

• Total DRRM funds received and utilized

From GAA/Lycal Cash Donations and

Appropriation Transferred Funds
Ordinanc<;: from other Agencies Total

Beginning balance (if any) p xxxx p xxxx p xxxx

Received during the year xxxx xxxx xxxx
Total p xxxx p xxxx p xxxx
Less: DRRM funds utilized xxxx xxxx xxxx
Ending balance p xxxx p xxxx :e xxxx

• DRRM Equipment and relief goods purchased and received from

donors

Inventories of relief goods

- total procurement, issuance and balance of inventory procured

from GAA and cash donations

- quantity of received, issued and balance of donated relief goods

Page 29 of34
 List of DRRM Equipment

- procured out of GAA and cash donations

- donated PPE received

- DRRM PPE disposed/transferred

b) Operational Highlights

The operational highlights shall contain the planned activities vis-

a-vis the accomplishments. If possible, the data shall be quantified.

c) The details, as to quantities and costs, of the data in the Financial

Highlights shall be presented as annex. The information are validated data
from the reports submitted by management to the OCD as required under
COA CircularNo. 2014-002 datedAprill5, 2014.

7. The Status on the Implementation of Prior Years' Audit Recommendations shall

contain the recommendations that are fully, partially and not implemented.
Management's explanations on those not fully implemented shall be indicated.

8. The levels of responsibilities for the preparation, signing and transmittal of the reports
are as follows:

For National Government Agencies (NGAs):

Deadline of
Prepared Reviewed
Agency Output Submission/ Signatory
By By
Transmittal
Department Consolidated Matrices, financial ATL- SA June 30 to SA
- with Bureaus/ and operational highlights; and OSEC/ OCDAuditor
Regional/ Status of Implementation of Prior NCR for
Field Offices Years' Audit Recommendations nationwide
submitted by the ATLs of Bureaus consolidation
and Regional Offices

-without Matrix, financial and operational ATL- SA April 30 to SA

Bureaus/ highlights; and Status of OSEC OCDAuditor
Regional/ Implementation of Prior Years' for national
Field Offices Audit Recommendations consolidation
i
f--------f-----------::-----:c-~i-~ -·:------+-----+-------+-------{
Bureaus- Consolidated Matrices, financial ATL- SA April30 to SA
-with and operational highlights; and Bureau SA for
RegionaV Status of Implementation of Prior consolidation
Field Offices Years' Audit Recommendations
submitted by the ATLs of Regional
Offices

Page 3oof34
 Deadline of
Prepared Reviewed
Agency Output Submission/ Signatory
By By
Transmittal
l---_-w""it_h_o_u_t--+--:c-M-::-a-tr""i-x,--=fi=--m-a-n---,ci::--a::--1-a-n---,d---,-o-p-er-a-:ti-o-na-:l-+-A-;l:L- SA Aprill5 to SA
RegionaV highlights; and Bureau SA for
Field Offices Status of Implementation of Prior consolidation
Years' Audit Recommendations

Regional Offices Consolidated Matrices, financial ATL- RSA Aprill5 to RSA

-with and operational highlights; and Regional the SA for
Field Offices Status of Implementation of Prior Office consolidation
Years' Audit Recommendations
submitted by the ATLs of Field
Offices

-without Matrix, financial and operational ATL- RSA March 30 to RSA

Field Offices highlights; and Regional SA for
Status of Implementation of Prior Office consolidation
Years' Audit Recommendations

Field Offices Matrix, financial and operational ATL- ATL- March 30 to RSA
highlights; and Field Regional ATL-
Status of Implementation of Prior Office or Office or Regional
Years' Audit Recommendations ATL- RSA Office or
Regional RSA for
Office if consolidation
with no
1\TL
~-------L--------------------La__s_signed

For Local Government Units (LGUs):

Deadline of Prepared Reviewed

Agency Output
Submission/ Signatory
By By Transmittal
~~c~---l---:::--:--~
Province Matrix, financial and operational ATL- SA- April30 to SA-
highlights; and Status of Province Provincial the COA Provincial
Implementation of Prior Years' Audit Regional Audit
Audit Recommendations Group Office for Group
region-wide
consolidation

Region-wide Consolidation of SA- RD May 30to RD

Provincial Matrices, financial and Regional OAC,LGS
operational highlights; and Status Office for
of Implementation of Prior Years' nationwide
Audit Recommendations consolidation

Cities Matrix, financial and operational ATL- SA- City April30 to SA- City
highlights; and Status of Cities Audit theCOA Audit
Implementation of Prior Years' Group Regional Group
Audit Recommendations Office for
region-wide
consolidation
Page 31 of34
 ,- ---
I
Prepared Deadline of
Agency Output Reviewed
By Submission/ Signatory
By
Transmittal

Region-wide Consolidation of City SA- RD May 30to RD

Matrices, financial and operational Regional OAC, LGS
highlights; and Status of Office for
Implementation of Prior Years' nationwide
Audit Recommendations consolidation

Municipalities Matrix, financial and operational ATM- ATL- April30 to ATL-

highlights; and Status of Municipal Municipal the SA- Municipal
Implementation of Prior Years' Audit Audit Provincial Audit
Audit Recommendations Group Group Audit Group Group
for province-
wide
consolidation

Province-wide Consolidation of All ATLs- SA- May 30to SA-

Municipal Matrices, financial and Municipal Provincial RDfor Provincial
operational highlights; and Status Audit Audit region-wide Audit
of Implementation of Prior Years' Group Group consolidation Group
Audit Recommendations per province

Region-wide Consolidation of SA- RD June 30 to RD

Municipal Matrices, financial and R;;;gional OAC, LGS
operational highlights; and Status Office for
of Implementation of Prior Years' nationwide
Audit Recommendations per consolidation
province

Baran gays Matrix, financial and operational ATM- ATL-

highlights; and Status of Municipal Municipal
Implementation of Prior Years' Audit Audit
f-. Audit Recommendations Group Group

' Municipal-wide Consolidation of ATM- ATL- April30 to ATL-

I Barangay Matrices, financial and Municipal
operational highlights; and Status Audit
Municipal
Audit
the SA-
Provincial
Municipal
Audit
of Implementation of Prior Years' Group Group Audit Group Group
Audit Recommendations for
municipal-
wide
consolidation

Province-wide Consolidation of All ATLs- SA- May 30to SA-

Matrices, financial and operational Municipal Provincial RDfor Provincial
highlights; and Status of Audit Audit region-wide Audit
Implementation of Prior Years' Group Group consolidation Group
Audit Recommendations per province
mentioned in the preceding output
(Municipal-wide Consolidation of
Barangay Matrices)
I

-~ Page 32 of34
 Deadline of
Prepared Reviewed
Agency Output Submission/ Signatory
By By
Transmittal
Region-wide Consolidation of SA- RD June 30 to RD
Matrices, financial and operational Regional OAC, LGS
highlights; and Status of Office for
Implementation of Prior Years' nationwide
Audit Recommendations per consolidation
province mentioned in the
preceding output (Province-wide
Consolidation of Barangay
Matrices)

Nationwide Consolidated Matrices, financial and OAC, OAC, July 15 to Asst.

operational highlights; and Status of Implementation of LGS Staff LGS OCDAuditor Commissi
Prior Years' Audit Recommendations Director for oner,
I nationwide LOS
consolidation
I

9. The reports mentioned in Item VII.4 shall be consolidated by the OCD Auditor and
transmitted on or before August 30 of each year. The consolidated report shall be in
the form of a Management Letter (ML) addressed to the Chairman, NDRRMC,
containing the following parts:

a) Authority, objective/s and scope of audit

b) Financial and Operational Highlights

c) Summary of significant audit observations and recommendations

• The audit observation shall contain the gist of the criteria, condition, cause
and effect

• The recommendations shall address the cause and effect

• Management comments or actions on the audit observations and

recommendations shall be incorporated

• Auditor's rejoinder, if warranted

d) Status on the Implementation ofPrior Years' Recommendations

e) Acknowledgement

Page 33 of34
 f) Annexes

The annexes support the financial and operational highlights, and audit
observations, if any.

10. The ML shall be reviewed and signed by the Supervising Auditor, Department of
National Defense, transmitted by the concerned Cluster Director and posted in the
COA website after transmittal. Copies of the ML shall be furnished the following,
among others:

a) President of the Republic ofthe Philippines

b) Vice-President
c) President of the Senate
d) Speaker of the House of Representatives
e) Chairperson-Senate Finance Committee
f) Chairperson-Appropriations Committee
g) Secretary of the Department ofBudg(:;t and Management

VIII. References

Reference shall be made to the following, among others, in the audit ofDRRM:

1. RA No. 10121- Philippine Disaster Risk Reduction and Management Act of

2010 and its IRR
2. General Appropriations Act
3. Local Appropriations Ordinance
4. NDRRM Plan prepared by the OCD
5. LDRRM Plan prepared by the LDRRM Office
6. COA Circular No. 2012-002 dated September 12, 2012
,7. COA Circular No. 2014-002 dated April15, 2014

IX. Effectivity

This Memorandum shall take effect immediately.

. •

~NDOZA
'

Commissioner
JO~
Commissioner

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