The Calamity Fund (CF)

Nature and Purpose

 The Calamity Fund is a lump sum fund appropriated under the General Appropriations Act (GAA) to cover aid, relief, and rehabilitation services to communities/areas affected by man-made and natural calamities, repair and reconstruction of permanent structures, including capital expenditures for pre-disaster operations, rehabilitation and other related activities.

The Quick Response Fund (QRF)

These are built-in budgetary allocations that represent pre-disaster or standby funds for agencies in order to immediately assist areas stricken by catastrophes and crises.

The following agencies have built-in QRFs to ensure immediate action during calamities:

• Department of Public Works and Highways (DPWH)
• Department of National Defense (DND) – Office of the Secretary (OSEC)/ Office of the Civil Defense (OCD)
• Department of Education (DepEd)
• Department of Social Welfare and Development (DSWD)
• Department of Agriculture (DA)

Unlike the Calamity Fund, the QRF does not require the recommendation of the NDRRMC or the approval of OP to trigger the use and release of funds. When the QRF gets depleted, the agency may request for replenishment with a request to the DBM and to be approved by the Office of the President.         

     Agencies Involved :

a. The National Disaster and Risk Reduction and Management Council (NDRRMC)

Being the highest policy-making, coordinating, and supervising body at the national level for disaster management, the NDRRMC is headed by the Secretary of National Defense as Chairperson with the following as Vice-Chairpersons:  Secretary of Interior and Local Government; Secretary of Social Welfare and Development; Secretary of Science and Technology and the Director-General of the National Economic and Development Authority.

The council is responsible in giving the President advice on the status of disaster preparedness, prevention, mitigation, response and rehabilitation operations being undertaken by the government as well as recommend to the President the declaration of a state of calamity in areas extensively damaged; and submit proposals to restore normalcy in affected areas to include calamity fund allocation.

b. Office of Civil Defense (OCD)

The OCD is the operating arm and secretariat of the National Disaster Risk Reduction and Management Council.  It has the primary task of coordinating the activities and functions of the various government agencies and instrumentalities, private institutions and civic organizations for the protection and preservation of life and property during emergencies.

c. The Office of the President (OP)

The NDRRMC endorses Calamity Fund requests to the OP for approval. The Approval of fund requests is forwarded directly to the Department of Budget and Management (DBM) as basis for the release of funds.

d. The Department of Budget and Management (DBM)

The DBM then issues the Special Allotment Release Order (SARO)  and Notice of Cash Allocation (NCA) directly to the appropriate implementing agency or LGU.

While the SARO is released fully, the issuance of cash requirements varies depending on the implementing unit:

(a)  Projects to be implemented by NGAs and GOCCs (except the DPWH) may be given their full cash requirements.

(b) LGUs receive only 50% of the cash requirement- It is only upon the submission of fund utilization/ project implementation reports (to the DBM and NDRRMC) will the LGUs receive the balance of their cash requirement.

Releases shall be subject to existing and usual auditing, budgeting, and accounting rules.

Process for RELEASE

I.   Requesting for Calamity Fund Assistance

 A. National Government Agencies (NGAs)/Government-owned and Controlled Corporations (GOCCs)

            NGAs/GOCCs submit their requests to the NDRRMC through the Office of Civil Defense (OCD) for evaluation and recommendation to the Office of the President (OP).  The following documents must support the request:

• Complete description/justification of the project
• Work and financial program/plan of the agency
• Endorsement of the head of the agency requesting for assistance
• Pertinent documents may be required on a case to case basis

B.  Local Government Units (LGUs)

Local government units (LGUs) submit their requests to the NDRRMC through the concerned Regional/Provincial/City/Municipal Disaster Risk Reduction and Management Council.  Supporting documents include the following:

• Complete description/justification of the project
• Local Disaster Risk Reduction and Management Council (DRRMC) Damage Report/Calamity Impact Assessment Report/Work and Financial Plan (to include pictures)
• Sanggunian  Resolution declaring the area under a State of Calamity/Imminent Danger and appropriating local counterpart for the project
• Certification by the Local Chief Executive (LCE) thru a Sanggunian Resolution assuring that whatever amount will be provided by the Office of the President, the project will be completed/finished
• Endorsement of the RDRRMC Chairperson (OCD Regional Director)
• Certification and justification by the LCE concerned that funding requests chargeable against the Calamity Fund are emergency in character
• Certification by the Local Accountant or Finance officer that their Local Calamity Fund is already depleted/exhausted and/or non-availability of funding source other than the Calamity Fund
• Certification that the infrastructure being requested for funding support are not covered by insurance; and
• Pertinent documents may be required on a case to case basis

II. Release of the Calamity Fund

Previous Years - 2010, 2009 ^1/ For FYs 2009, 2010 and 2011 QRF allocations were sourced from the Calamity Fund ^2/ Starting FY 2012, QRF allocations were lodged against respective budgets of Departments Other Calamity-Related Funds: Supplemental Appropriations, RA 10634 Rehabilitation and Reconstruction Program, RA 10633