DBM SARO: Special Allotment Release Order

In the complex landscape of the Philippine government’s budgeting and financial management system, the Special Allotment Release Order (SARO) is one of those which hold the most significance for every department and their employees.

Special Allotment Release Orders serve as official documents issued by the Department of Budget and Management (DBM) to authorize the allocation and utilization of public funds for various government projects and programs. These orders are essential for maintaining transparency, promoting compliance with legal frameworks, and promoting efficient budget management within government agencies.

Issued by the Department of Budget and Management (DBM), the SARO serves as the authorization document that allows government agencies to commit and spend funds for approved projects and programs.

What is SARO?

A Special Allotment Release Order (SARO) is an official document issued by the DBM to authorize government agencies to incur obligations up to a specified amount.

This document ascertains that any expenditure by these agencies is compliant with the legal framework, budgetary allocations, and specific approvals.

In simple terms, the SARO acts as a green light, allowing funds to be committed for various government projects.

The Purpose of SARO

The SARO serves several key purposes in the financial management system of the government:

1. Authorization to Spend: The SARO grants government agencies the authority to commit funds for their projects. Without this document, no expenditure can be made, so that all spending is pre-approved and within budget limits.
2. Compliance Assurance: By requiring a SARO, the government oversees that all expenditures are in line with relevant laws, regulations, and budgetary guidelines. This prevents unauthorized spending and promotes financial discipline.
3. Budget Management: The SARO helps in the systematic release and management of funds. It allows the DBM to monitor and control the flow of government resources, so that funds are released only when needed and in the correct amounts.

The SARO Process

Understanding how the SARO is issued and managed can give us insight into the meticulous nature of government budgeting.

Here are the key steps involved in the SARO process:

1. Project Proposal Submission: Government agencies begin by submitting a detailed project proposal to the DBM. This proposal includes objectives, detailed plans, and the budget required.
2. Document Validation: The DBM, along with other relevant authorities, validates the submitted documents to make sure they align with national and regional development plans. This step ascertains that the projects are not only feasible but also contribute to the broader goals of the government.
3. Compliance Check: The proposed projects must comply with existing policies and regulations. This includes obtaining necessary clearances and certifications from various government bodies.
4. Review and Endorsement: Once validated, the project is reviewed at different levels, often involving provincial and regional offices. After this review, it is endorsed to the central office of the DBM for final approval.
5. SARO Issuance: Upon successful review, the DBM issues the SARO, specifying the amount that can be spent and the timeframe for its use. The SARO is then made available online for verification, ensuring transparency and easy access for the requesting agency.

Examples of SARO in Action

The SARO is widely used across various sectors of the government, ensuring that public funds are allocated efficiently and transparently.

Here are some examples of how SAROs are used:

1. Defense Projects: SAROs are essential for military acquisitions and infrastructure projects. For instance, when the government plans to acquire new military hardware, a SARO ensures that funds are allocated correctly and spent according to the approved budget.
2. Healthcare Funding: During the COVID-19 pandemic, SAROs were issued to cover the Health Emergency Allowance (HEA) for healthcare workers. This included compensation for COVID-related sickness, death benefits, and additional allowances for meals, accommodation, and transportation.
3. Multi-Year Projects: For large-scale projects that span several fiscal years, SAROs are issued under the Multi-Year Contracting Authority (MYCA). This allows projects to receive funding in phases, aligned with project milestones, ensuring budget continuity and avoiding disruption.

Understanding the SARO List at the DBM Website

1. SARO Number

• Description: This is a unique identifier assigned to each SARO issued. The number typically includes details such as the issuing region and year.
• Usage: The SARO number is used to track and reference specific orders in official communications, audits, and for transparency purposes.

2. Amount

• Description: This column shows the total amount of funds authorized by the SARO. The amount is often listed in Philippine Pesos (PHP).
• Usage: The amount indicates the budget allocation for the particular purpose outlined in the SARO. It is important for budgeting and accounting to ensure that funds are correctly allocated and spent.

3. Approved Date

• Description: This is the date when the SARO was officially approved by the Department of Budget and Management (DBM).
• Usage: The approved date helps determine when the funds were authorized, which is important for financial tracking and ensuring timely implementation of government projects.

4. Released Date

• Description: This column indicates when the SARO was actually released to the relevant government agency.
• Usage: The release date is important for understanding when the funds became available to the agency. Delays between approval and release can affect project timelines.

5. Department

• Description: This specifies the department within the government that requested or is responsible for the SARO.
• Usage: Identifying the department is necessary for accountability and for understanding which sector of the government the funds are supporting.

6. Agency

• Description: This column lists the specific agency within the department that will utilize the SARO funds.
• Usage: Knowing the agency helps pinpoint the exact entity responsible for the use of the funds and helps in tracking the execution of the project or program.

7. Operating Unit

• Description: This refers to the specific unit within the agency that will handle the funds and implement the project.
• Usage: The operating unit is essential for internal audits and for ensuring that the correct sub-unit within the agency is managing the funds.

8. Purpose

• Description: This column details the specific purpose for which the funds are allocated, such as covering personnel services, retirement benefits, or project expenses.
• Usage: Understanding the purpose helps in assessing whether the funds are being used for their intended purpose and in evaluating the impact of the expenditure.

9. Remarks

• Description: This section provides additional information or notes related to the SARO, such as any special conditions, justifications, or context for the release of funds.
• Usage: Remarks are useful for clarifying any unusual circumstances or additional details that may affect the management or auditing of the funds.

How to Use This Information

• Tracking and Accountability: Use the SARO number to track the release and utilization of funds within government agencies. This ensures that the funds are being spent according to the approved purposes.
• Auditing and Compliance: Compare the approved and released dates to ensure there are no unnecessary delays. Verify that the funds are used in accordance with the specified purposes to maintain transparency and accountability.
• Project Management: Government agencies and departments can use this information to manage their budgets effectively, ascertaining that funds are available when needed and are spent as planned.

Understanding and utilizing this information is essential for proper financial management, ensuring that government resources are used efficiently and transparently.

The Challenges of the SARO System

While the SARO is essential for financial control and accountability, it also presents some challenges.

1. Bureaucratic Delays: The SARO process can sometimes be time-consuming, leading to delays in project implementation. These delays are particularly problematic for time-sensitive projects.
2. Potential for Corruption: Despite its role in promoting transparency, the SARO system has been implicated in corruption scandals. For example, the National Bureau of Investigation (NBI) uncovered scams involving fake SAROs used by syndicates within the DBM to demand advance payments from contractors.
3. Complexity and Red Tape: The process of obtaining a SARO adds layers of bureaucracy, which can be cumbersome and inefficient. Critics argue that this complexity can create opportunities for corruption and slow down the execution of government projects.

Recent Reforms and Changes

In 2014, the Philippine government introduced reforms to streamline the SARO process.

For most projects, the SARO system was scrapped, and the General Appropriations Act (GAA) itself was used as the release document for disaggregated budget items.

This change aimed to reduce red tape, expedite project implementation, and minimize opportunities for corruption.

However, certain funds, such as the President’s Special Purpose Funds, still require SARO for additional scrutiny and control.

Recent Updates

DBM Releases Remaining P27B for Covid-19 Health Emergency Allowance

The Department of Budget and Management (DBM) has disbursed the remaining P27 billion to settle unpaid balances for the Covid-19 Health Emergency Allowance (HEA) of healthcare workers. DBM Secretary Amenah Pangandaman confirmed the release during a Senate hearing following an appeal by Senator Christopher Lawrence Go’s Committee on Health and Demography. The funds will cover compensation claims for Covid-19 sickness and death, as well as unpaid HEA for eligible healthcare and non-healthcare personnel. President Ferdinand “Bongbong” Marcos Jr. mandated the settlement of all outstanding HEA balances to support the healthcare sector effectively. (SunStar)

DOH Receives Sub-Allotment Release Order for Remaining P27.4B Health Emergency Allowance

The Department of Health (DOH) has obtained the sub-allotment release order for the outstanding P27.4 billion health emergency allowance (HEA) allocated for healthcare workers who served during the peak of the COVID-19 crisis. Health Secretary Teodoro Herbosa mentioned in an interview that the release order will expedite the disbursement of the remaining allowance, with expectations for distribution to regions and healthcare workers in the coming weeks. This final batch of HEAs settles the government’s outstanding payments to healthcare workers responding to public health emergencies as mandated by Republic Act No. 11712. The allowance, ranging from P3,000 to P9,000 based on deployment risk, is granted for each month of service during a state of public health emergency. (Inquirer)

Video: Performance-Based Bonus (PBB) 2022 Update II SARO as of August 7, 2024

The recent update as of August 7, 2024, reveals the issuance of the Special Allotment Release Order (SARO) for the Performance-Based Bonus (PBB) 2022. This update signifies progress in the allocation and distribution of performance-based bonuses for the year 2022. The issuance of the SARO indicates the availability of funds for the PBB, hinting at forthcoming disbursements to eligible recipients.

This development highlights the ongoing commitment to provide performance-based incentives to deserving individuals based on their contributions and accomplishments. Further details on the disbursement and implementation of the PBB for 2022 are anticipated.

 

Conclusion

The Special Allotment Release Order (SARO) is an essential tool in the Philippine government’s budgeting and financial management system.

It ensures that public funds are allocated and used in a controlled, transparent, and legally compliant manner.

While the SARO process does introduce some bureaucratic challenges, recent reforms have sought to streamline the system, making it more efficient and less prone to corruption.

By understanding the importance of SARO, we can better appreciate the meticulous planning and oversight involved in managing the government’s finances, ultimately ensuring that public resources are used effectively for the benefit of all Filipinos.