Budget Circular No. 2026-1

Likewise, any allotments arising from modification and/or augmentation from the selected MOOE object of expenditure where the CNA Incentive was sourced to any other MOOE object of expenditure upon the issuance of this Circular that remains unobligated by December 31, 2026 shall also revert to the unappropriated surplus of the General Fund and shall not be carried over in the succeeding fiscal year as continuing appropriations. 5.2 In large departments wherein employees' organizations in the regional offices have been accredited by the CSC as the negotiating agent/s, the Department Secretary or his duly authorized representative should provide internal guidelines to ensure uniformity and equity in the negotiation process, monitor the progress of simultaneous negotiations, and ensure compliance with the provisions of this Circular. 5.3 For LGUs, the savings in the identified MOOE expense items shall be determined through the Registry of Appropriations, Allotments, and Obligations, and Statement of Appropriations, Allotments, Obligations, Disbursements and Balances. A supplemental budget (SB) to cover the CNA Incentive shall be submitted by the local chief executive for authorization of the sanggunian within the validity of appropriations sourced from the allowable MOOE allotments in Item 4.3 hereof which have become available as a result of cost-cutting and systems improvement measures identified in the CNAs and supplements thereto, and which was the result of the joint efforts of the LGU and its employees. Accordingly, the Appropriation Ordinance authorizing the SB shall be subject to review by the reviewing authority concerned. For recording purposes of the payment of the CNA Incentives in LGU books, the LGUs shall comply with the recording requirements consistent with Section 13 of the Commission on Audit Government Accounting Manual for Local Government Units-Volume 1. 6.0 Reportorial Requirement Each department/agency shall submit to the DBM not later than January 31, 2027, a single consolidated annual report on the grant of the CNA Incentive using the template in Annex C. The report shall also indicate, in the said Annex, the object of expenditures (MODE and/or Capital Outlays) declared as savings and offered by the respective agencies pursuant to NBC No. 602, to reflect the total amount of offered savings. Agencies must encode the required details/information and upload a scanned copy of the report using the following link: https://forms.dbm.gov.ph/index.php/submit-cna-report-2026 Page 10 of 21