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Read the Implementing Rules and Regulations of Sections 9 to 11 of Republic Act No. 11524, “An Act Creating the Coconut Farmers and Industry Trust Fund, Providing For Its Management and Utilization, Reconstituting for the Purpose the Philippine Coconut Authority Board, and for Other Purposes” here:
https://www.dof.gov.ph/20210608-joint-memorandum-circular-no-001-2021/

Trust Fund Management Committee tackles coco levy concerns in first meeting for 2022	24 February 2022
Disbursement guidelines being finalized for implementation of programs to benefit coconut farmers, industry	5 August 2021
Coco Levy Law IRR now in effect	1 July 2021
Gov’t sets up Coco Levy Asset Registry	27 June 2021
Coconut Farmers and Industry Trust Fund Management Committee Holds Inaugural Meeting	17 June 2021

Guidelines in the Release, Disbursement, Monitoring, and Reporting of Coconut Levy Funds under Republic Act (RA) No. 11524, otherwise known as the Coconut Farmers and Industry Trust Fund Act

Frequently Asked Questions

Disbursement Guidelines

1. How will the funds be released?
IAs and DDEs are required to open an MDS sub-account following the guidelines in the opening of bank accounts for receipts and MDS disbursements of National Government Agencies. (4.2.1)

Funds will be transferred from the BTr to the IAs’ or DDEs’ MDS-Trust Account through the issuance of Notice of Cash Allocation (NCA). (4.2.4)

2. What are the documents required to open an MDS sub-account?
a. Request letter to the BTr Regional Office in the area where the agency is located;
b. Duly accomplished BTr Form 1 (Request for Authority to Open Bank Account); and
c. BTr Form 3 (Waiver of Confidentiality)

IAs and DDEs may refer to the directory of BTr Regional Office for the respective regional office assigned to each agency.

3. What is the account type, organization code and funding source code to be used?
a. Account Type - Trust Account (03)
b. Organization Code - DBM will prescribe the corresponding organization code for Coconut Levy Funds disbursements. You may also refer here: https://www.uacs.gov.ph/resources/uacs/organization/all
c. Funding Source Code - 07308601 (Trust Fund Receipts)

4. Do IAs and DDEs have to maintain a new bank account for this purpose?
Yes. IAs and DDEs will need to open a new, separate, and distinct MDS sub-account for the disbursements of the CFITF.

5. What are the specific reports required relative to the release of funds/request of NCA from DBM?

Initially:
For IAs
a. Memorandum of Agreement (MOA) with the PCA
b. Certificate of Availability of Funds (CAF) issued by the BTr for the initial year

For DDEs
a. Certificate of Availability of Funds (CAF) issued by the BTr for the initial year

Succeeding:
a. Certificate of Availability of Funds (CAF) issued by the BTr for the corresponding year of allocation
b. Monthly Disbursement Plan (BED No. 3) as part of their request of NCA

For IAs
a. Sworn Certification to the DBM, certifying that the NCA being requested by the IA is not funded by the budget appropriated to the agency through the GAA, and that it shall cover only the expenses directly related to the implementation of the Coconut Farmers and Industry Development Plan (CFIDP).

For DDEs
a. Sworn Certification to the DBM, certifying that the NCA being requested by the DDE is not funded by the budget appropriated to the agency through the GAA, and that it shall cover only the expenses directly related to the preparation and implementation of the privatization/disposition plan as approved by the Trust Fund Management Committee (TFMC).

6. When will the disbursement of the 2021 funds occur?
For IAs
Disbursements shall occur as soon as the IAs have submitted all the documentary requirements to secure the NCA from the DBM.

For DDEs
Disbursements shall occur as soon as the Investment Plan of the DOF as the Trust Fund Manager has been approved and the DDEs have submitted all the documentary requirements to secure the NCA from the DBM.

7. Is it necessary for IAs and DDEs to prepare a separate book of accounts for the trust fund?
Yes, for transparency in the utilization of the funds.

8. To whom and how often shall IAs and DDEs submit liquidation reports (financial report and its supporting schedules)?

a. All IAs and DDEs are required to submit the following FARs per Annex D to the DBM and COA, copy furnished the BTr, in compliance with the relevant provisions of DBM-COA Joint Circular No. 2019-1 dated 01 January 2019:

● On or before the 10th day of the month following the last month of the covered reporting period:
FAR No. 4 (Monthly Report of Disbursements)

● Within 30 days after the end of each quarter:
FAR No. 6 (Statement of Approved Budget, Utilizations, Disbursements and Balances for Trust Receipts) For Implementing Agency/Operating Unit use only

b. All IAs and DDEs are required to maintain and submit the following reports within 30 days after the end of each quarter, in addition to the FARs required in the DBM-COA Joint Circular No. 2019-1:
● Statement of Approved Budget, Utilizations, Disbursements and Balances by Object of Expenditures for Trust Receipts (SABUDBOE-TR) for Implementing Agency/Operating Unit use only
● Statement of Utilizations, Disbursements, Liquidations, and Balances for Inter-Agency Fund Transfers (SUDLB-IAFT) for Source Agency use only

c. Hard copies of all forms/reports (BP Forms, BED Forms, FAR Nos. 4 and 6, SUDLB-IAFT for Source Agency, and SABUDBOE-TR for Implementing Agency/Operating Unit) duly signed by the agency’s authorized representative, and/or signatories as required by the law or other pertinent issuances, shall be submitted to the DBM, COA and BTr not later than the indicated date of submission

d. Submission to the BTr shall be addressed to the Head of the Coconut Farmers and Industry TFMC Secretariat. For online submission, only scanned copies of the duly signed forms/ reports sent via email to the cfitfsecretariat@treasury.gov.ph shall be accepted as official agency submission.

9. Are IAs and DDEs allowed to charge administrative and other operating costs from their respective allocation?
For IAs
It will be the PCA Board and DBM that will determine the eligibility of the expense, but the basic principle is items of expenses that are inherent in the projects and/or part of the regular operations as defined in the CFIDP are eligible and will be allowed.

For DDEs
It will be the TFMC that will determine the eligibility of the expense, but the basic principle is items of expenses that are inherent in the disposition plan are eligible and will be allowed.

10. What should be taken into consideration by IAs and DDEs in the adoption of the Cash Budgeting System?

(1) All authorized allocations shall be available for utilization and disbursement only until the end of each fiscal year (FY).

(2) Utilizations shall be implemented during the same FY. Goods and services corresponding to said utilizations shall be delivered or rendered, inspected and accepted by the end of each FY.

(3) All funds transferred between and among government agencies and local government units shall not be considered disbursed, until the transferred amounts have been paid for goods delivered and services rendered, inspected and accepted.

(4) Unexpended balances of allocations transferred, that is, any unutilized portion of funds allocated to IAs for the implementation of the CFIDP, as well as undisbursed funds at the end of the FY shall revert to the Trust Fund principal.

(5) The extended payment period under Section 1 item C of EO No. 91, s. 2019 will not be allowed under this Joint Circular.

Trust Fund Management Committee Year-End Report

• TFMC 2021 Year-End Report

 
Executive Summary of the Commission on Audit's 2022 Special Audit Report on Coco Levy Assets

• • Executive Summary 
  • Additional Notes to the Executive Summary