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SIXTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES es
First Regular Session ) 43° WL -3 P3959

SENATE ‘
S.No. 406 _ RECEIVED BY f

EXPLANATORY NOTE

The Constitution, Article 2, Sections 27 and 28 provide:
SEC. 27. The State shall maintain honesty and integrity in the public
service and take positive and effective measures against graft and corruption.

SEC. 28. Subject to reasonable conditions prescribed by law, the State
adopts and implements a policy of full public disclosure of all its transactions
involving public interest.

Further, the Constitution, Article 3, Section 7 states:

‘The right of the people to information on matters of public concem shall
be recognized. Access to official records, and to documents and papers pertaining
to official acts, transactions, or decisions, as well as to government research data
used as basis for policy development, shall be afforded the citizen, subject to such
limitations as may be provided by law.

The grant of government funding to entities or organizations should be a transparent

process so that taxpayers will have the ability to know exactly how their money is being spent

and, with that greater transparency, will come greater accountability.

This bill seeks to statutorily establish and maintain a websites that contains information
on all Government financial assistance and expenditures that include grants, contracts, sub-
grants, subcontracts, loans, awards, cooperative agreements, purchase orders, task orders,

delivery orders, and other forms of financial assistance accessible to our constituents.

This bill expands upon E-Government management tools by making all government

funding awards, grants, contracts and loans, easily searchable on a public website.



‘This new tool will be a valuable asset in the continuing effort to spend the taxpayers’

dollars wisely, without waste and without misuse. '

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' this bill was originally filed in the Fourteenth Congress, Second Regular Session.
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SIXTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES )
First Regular Session ) a dul -3

s. xo abs _ wh. fr ‘

Introduced by Senator Miriam Defensor Santiago

AN ACT
REQUIRING FULL FINANCIAL DISCLOSURE FROM ALL ENTITIES AND
ORGANIZATIONS RECEIVING GOVERNMENT FUNDS

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
SECTION 1. Short Title. - This Act may be known as the “Government Funding,

Accountability and Transparency Act”.

SECTION. 2. Definition of Terms. —
(a) ENTITY- Includes, whether for profit or nonprofit the following:
(1) a corporation;
(2) an association;
(3) a partnership;
(4) a limited liability company;
(5) a limited liability partnership;
(6) a sole proprietorship;
(7) any other legal business entity;
(8) any other grantee or contractor that is not excluded by Subparagraph
(B) or(C); and
(9) any Local Government Unit;
But does not include—
(1) an individual recipient of Government assistance; or

(2) a Government employee.



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(3) a Government agency or instrumentality

(b) GOVERNMENT AWARD.—- means Government financial assistance and
expenditures that include grants, contracts, sub-grants, subcontracts, loans, awards,
cooperative agreements, purchase orders, task orders, delivery orders, and other forms
of financial assistance;
(c) SEARCHABLE WEBSITE.—The term *‘searchable website’’ means a website that
allows the public to—

(1) search Government funding by any element

(2) ascertain through a single search the total amount of Government funding

awarded to an entity, by fiscal year; and

(3) download data required by this Act in the outcome from searches.

SECTION 3. Full Disclosure of Entities Receiving Government Funding. — Not later than
1 January 2014, the Department of Budget and Management (DBM) shall, in accordance with
Executive Order No. 21 dated 25 April 1936, ensure the existence and operation of a single
searchable website, accessible by the public at no cost to access, that includes for each
Government award—

(a) the name of the entity receiving the award;

(b) the amount of the award;

(c) information on the award including transaction type, funding agency,
program source, and an award title descriptive of the purpose of each funding
action;

(d) the location of the entity receiving the award and the primary location of
performance under the award, including the city, province, congressional
district, and country;

(e) a unique identifier of the entity receiving the award and of the parent entity of
the recipient, should the entity be owned by another entity; and

(f) any other relevant information specified by the Department of Budget and

Management.

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SECTION 4. Scope of Data. - The website shall include data for fiscal year 2014, and

each fiscal year thereafter.

SECTION 5. Designation of Agencies. ~ The President may designate one or more
Government agencies to participate in the development, establishment, operation, and support of
the single website. In the initial designation, or in subsequent instructions and guidance, the
Secretary of Budget and Management (the Secretary) may specify the scope of the

responsibilities of each such agency.

SECTION 6. Agency Responsibilities. — The Government agencies concerned shall
comply with the instructions and guidance issued by the Secretary as provided in Section 5 of
this Act, and shall provide appropriate assistance to the Department of Budget and Management

upon request, so as to assist it in ensuring the existence and operation of the single website.

SECTION 7. Use of COA Data. ~ The website established under this section may use as

additional source of its data the Official website of the Commi

‘ion on Audit, if all of these data

sources are searchable through the website and can be accessed in a single search.

‘The website shall not be considered in compliance if it merely hyperlinks to the official
website of the Commission on Audit, or other existing websites, but the information elements
required in Section 3 cannot be searched electronically by field in a single search.

‘The website shall provide an opportunity for the public to provide input about the utility

of the site and recommendations for improvements. It shall be updated not later than 30 days

after the grant of any Government award requiring a posting.

SECTION 8. Pilot Program. — Not later than | July 2014, the Secretary shall commence
a pilot program to test the collection and accession of data about sub-grants and subcontracts;
and determine how to implement a sub-award reporting program, which includes the following:
(a) a reporting system under which the entity issuing a sub-grant or subcontract is
responsible for fulfilling the sub-award reporting requirement; and

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(b) a mechanism for collecting and incorporating agency and public feedback on the

design and utility of the website.

SECTION 9. Reporting of Sub-awards. ~ Except as provided in Section 8 of this Act, but
not later than 1 January 2014, the Department of Budget and Management shall ensure the
following:

(@) that data regarding sub-awards are disclosed in the same manner as data
regarding other Government awards, as required by this Act; and
(6) that the method for collecting and distributing data about sub-awards:

(1) minimizes burdens imposed on Government award recipients and sub-
award recipients;

(2) allows Government award recipients and sub-award recipients to
allocate reasonable costs for the collection and reporting of sub-award data as in
direct costs; and

(3) establishes cost-effective requirements for collecting sub-award data
under block grants, formula grants, and other types of assistance from the

National Government and local Government Units.

SECTION 10. Construction. - Nothing in this Act shall prohibit the Department of
Budget and Management from including in the website access to data that is publicly available in

any other Government data base.

SECTION 1. Reporting. ~ The Department of Budget and Management shall submit to
the Legislative Budget Research and Monitoring Office (I. BRMO) of the Senate an annual report
regarding the implementation of the website established under this Act which shall contain the
following:

(@) data regarding the usage and public feedback on the utility of the site

including recommendations for improving data quality and collection;



(b) an assessment of the reporting burden placed on Government award and sub-
award recipients; and
(©) an explanation of any extension of the sub-award reporting deadline, if

applicable.

SECTION 12. Publication. - The Department of Budget and Management shall make
each report submitted under the preceding paragraph publicly available on the website

established under this Act.

SECTION 13. Classified Information. ~ Nothing in this Act shall require the disclosure

of classified information as may be defined by law.

SECTION 14. Appropriations. ~ To carry out the provisions of this Act, such amount as

hereby necessary is hereby authorized to be appropriated from the National Treasury.

SECTION 15. Separability Clause. — \f any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain

valid and subsisting.
SECTION 16. Repealing Clause. ~ Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent

with the provisions of this Act is hereby repealed, modified or amended accordingly. '

SECTION 17. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation.

Approved,