Certificate of Availability of Funds (Philippines)

A Certificate of Availability of Funds in the Philippines captures the information the relevant authority needs for the matter it concerns and creates a dated written record of what was submitted.

Section 86 of PD 1445 provides that no contract involving the expenditure of public funds shall be entered into unless the Chief Accountant or Budget Officer certifies to the availability of funds and the allotment therefor. The absence of a valid CAF is a ground for disallowance of the entire contract disbursement by the Commission on Audit (COA) under COA Circular No. 2009-001 and COA Circular No. 2012-001 on the audit of government contracts.

The CAF is distinct from but closely related to the Obligation Request and Status (ORS, DBM Budget Circular No. 2004-4A): the CAF certifies that funds are available in the appropriation and allotment before the obligation is recorded, while the ORS records the actual obligation of funds against the available allotment in the agency's financial system. Both documents are required attachments to government contracts and disbursement vouchers.

Under the National Budget Circular (NBC) No. 569 (2016) and DBM Budget Circular No. 2015-3, government agencies operating under the Modified Disbursement Scheme (MDS) must align the CAF with the correct Allotment Release Order (ARO) or Sub-ARO issued by the DBM, the applicable Appropriation Law source (GAA, Continuing Appropriations, or Special Purpose Fund), and the correct allotment class (Personnel Services/PS, Maintenance and Other Operating Expenses/MOOE, or Capital Outlay/CO).

For LGU (Local Government Unit) expenditures, the CAF is issued by the Local Accountant or Local Treasurer under Section 344 of the Local Government Code (Republic Act No. 7160), which requires that no money be disbursed unless the Local Accountant certifies the availability of the appropriation and funds.

The legal framework governing the Certificate of Availability of Funds (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Certificate of Availability of Funds (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Local Government Code (RA 7160) sets the foundational requirements.

A Certificate of Availability of Funds in the Philippines is required before every government expenditure commitment that creates an obligation against public funds.

A CAF is required before signing any government contract for goods, infrastructure, or consulting services under RA 9184. The BAC cannot award a contract without the HoPE certifying that a valid CAF has been obtained from the agency's Chief Accountant, confirming that the full contract price is covered by an available appropriation and allotment.

A CAF is required before issuing a Purchase Order (PO) for Small Value Procurement (SVP) or shopping under Sections 52-53 of the RA 9184 IRR. The agency's budget officer must certify funds availability for the PO amount before the order is transmitted to the supplier.

A CAF is needed for grant of cash advances to Accountable Officers under COA Circular No. 97-002 — before a government employee can be granted a cash advance for travel, special purpose, or payroll, the Chief Accountant must certify that the amount is covered by an available allotment under the applicable object of expenditure.

A CAF is required for LGU contracts under Section 344 of the Local Government Code (RA 7160), which mandates that the Local Accountant certify the availability of appropriation and funds before any expenditure is made. Barangay, Municipal, City, and Provincial government contracts all require the appropriate local accountant's CAF.

A CAF is needed as a supporting document in the Disbursement Voucher (DV) packet submitted to COA for post-audit. COA Circular No. 2009-001 requires the CAF to be attached to the DV as proof that the expenditure was covered by an available appropriation at the time the obligation was incurred, and disallows disbursements where the CAF was absent, undated, or issued after the contract date.

A valid Philippine Certificate of Availability of Funds must contain the following essential elements to comply with PD 1445, Section 86, and COA audit requirements.

Agency and Fund Information: The name of the government agency or instrumentality; the specific Appropriation Law (General Appropriations Act year and specific line item, or Special Purpose Fund) from which the expenditure will be charged; the Allotment Release Order (ARO) or Sub-ARO number; and the allotment class (PS, MOOE, or CO).

Expenditure Identification: The specific expenditure, contract, or obligation being certified — identified by the procurement project title, Purchase Order number, contract number, or expenditure nature — and the amount in Philippine peso (PHP ₱) being certified. The CAF must be specific to a single expenditure, not a blanket certification covering multiple unrelated transactions.

Fund Balance and Available Amount: The total appropriation under the specific allotment; the amount already obligated (ORS total); the unobligated balance; and the amount being certified for the current expenditure. This confirms that certifying the new expenditure will not exceed the total available allotment.

Certification Statement: The Chief Accountant or Budget Officer's express certification that the funds for the expenditure are available, that adequate appropriation exists, and that the expenditure complies with Section 86 of PD 1445 and applicable GAA provisions.

Date and Signatory: The date of certification (must be on or before the date of the contract or commitment); the full name, designation, and official signature of the Chief Accountant or Budget Officer; and the agency's official seal or stamp. The CAF dated after the contract date is legally defective and subject to COA disallowance.

Period of Validity: The CAF covers funds for the specific fiscal year's appropriation. If the contract spans multiple fiscal years, a new CAF must be obtained for each year's portion of the obligation.

Additional compliance elements for a Certificate of Availability of Funds (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.