Fidelit

Bond
y
Treasury Circular
No. 02-2009

MARK LORREN T. TEJANO

Budget Officer III
What is a
FIDELITY
BOND?
 Type of insurance bought by
an employer to protect
What is a
Fidelity
against losses (such as
Bond? embezzlement or theft by
employees) that are not
generally covered under
normal theft or burglary
policies.
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Public bonding law
(Section
313-335, Chapter
15 under Revised
Administrative
Code of 1917)
Treasury
Circular
No. 02-2009
dated
August 6, 2009
 -Sections 313-335, Chapter 15, otherwise known
as Public Bonding Law, under the Revised
Administrative Code of 1917

-Executive Order No. 449 s. 1997 (Realigning the

Organization of the Bureau of the Treasury) in
BASIS relation to Government Auditing Code of the
Philippines (P.O. 1445)

-Chapter IX Book V of the Administrative Code of

1987 (E.O. 292), and;

-The Local Government Code of 1991 (RA 7160)

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 Regulations promulgated for
the effective bonding of
accountable public officers
PURPOSE pursuant to the provisions of
the Public Bonding Law.

7
TERMS
BTr
Bureau of Treasury
agency under the Department Finance
(DOF) that provides fidelity bond to
all accountable public officers.

8
TERMS
AGDB
Authorized Government
Depository Bank
refers to a government bank duly
authorized by the Bangko Sentral ng
Pilipinas (BSP) e.g. POSTBANK
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TERMS
CTOO
Chief Treasury
Operations Officer
refers to the unit head of the BTr
District/Provincial Office.

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TERMS
ATAP
Authority to Accept
Payment
- refers to the form issued by the Bureau of
the Treasury to the applicant used for
presentation to the AGDB authorizing the
receipt of payment of bond premium
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TERMS
TOP
Treasurer of the
Philippines
refers to head of the BTr and the officer
authorized to issue the implementing rules
and regulations on the Public Bonding Law.
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 GENERAL
PROVISIONS

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 4.1 Public Officers Covered
Every officer, agent, and employee
whenever the nature of the duties
GENERAL performed by such permits or requires :
PROVISIONS a. possession
b. custody or
c. control
of funds or properties for which he is
accountable, be deemed a bondable
officer and shall be bonded.
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 4.4 Accountability for Public Property
- based on money value in case
GENERAL of improper or unauthorized use or
PROVISIONS misapplication
- shall be liable for all losses,
damages or deterioration due to
negligence in the keeping or use of
the property, whether or not it be, at
the time of such loss, damage or
deterioration, in his actual custody.
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 4.6 Money & Property Accountability
GENERAL
PROVISIONS An accountable public officer who
has both money and property
accountability shall be bonded only
once to cover both accountabilities.

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 4.9 When Considered Bonded
▪ Upon payment of the bond premium
▪ Valid and effective at the time of
GENERAL payment and receipt of bond
PROVISIONS premium by the AGDB. The
accountable public officer shall
submit to the BTr DO/PO a copy of
the AGDB validated deposit slip
and ATAP as proof of payment of
bond premium, after which the
Confirmation Letter shall be
issued.
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 4.10 Effect of Approved Bond
An approved fidelity bond shall be:
a.) non-transferable
b.) personal
GENERAL
c.) remain valid and effective
PROVISIONS
for one (1) year from the time of
payment and receipt of the bond
premium.
d. ) Shall be subject to
renewal yearly before the expiration
of the present bond coverage
*Failure to renew shall consider such bond as automatically
cancelled and shall have no legal effect. 18
 4.12 Effect of Cancellation
For any cause allowed, the
cancellation will limit the liability of the
GENERAL
PROVISIONS fidelity fund to the transactions within
the period covered up to the time of
its cancellation.
The bond premium paid for the
accountable public officer whose bond
is cancelled shall not be transferrable
and not refundable.
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FIRST TIME OR
NEW
APPLICATION

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 7.1 Procedure for Application

7.1.1 Duplicate copies of General

PROCEDURE Form Nos.
FOR
APPLICATION
a.) 57A (Request Form)
b.) 58A (Application Form)
(subscribed and sworn) before any
officer authorized to administer oath
with (2) passport size photo taken
within the last three (3) months prior
to the date of application.
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 c.) 2 copies Authenticated copies
PROCEDURE
SALN with POSITIVE NETWORTH
FOR
APPLICATION (subscribed and sworn)
d.) 2 copies Appointment and/or
Designation Order
e.) 5 copies of List of Bondable
Officials certified by the Agency Head
(Annex D)

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PROCEDURE 7.1.8 Unsafe Risk - The concerned
FOR CTOO II shall evaluate the bond
APPLICATION
application to determine if the
applicant is a safe and conservative
risk in accordance with Sec. 320 of
the PBL.

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RENEWAL

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 7.2 Procedure for Renewal
The fidelity bond shall be renewed
PROCEDURE before the expiration of the bond.
FOR RENEWAL Duplicate copies of General Form Nos.
a.) 57A (Request Form)
Together with :
b.) 2 copies Authenticated copies
SALN with POSITIVE NETWORTH
(subscribed and sworn)
c.) 5 copies of List of Bondable
Officials certified by the Agency Head
(Annex E) 25
PROCEDURE
FOR RENEWAL Surrender the previous
Confirmation letter of the
previous approved bond

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 INCREASE FOR
ACCOUNTABILITY

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 7.2 Procedure for Increase of Accountability
Any increase in the amount of
PROCEDURE FOR
accountability, resulting to an increase in
INCREASE OF the amount of bond shall be subject to
ACCOUNTABILITY increase in premium.
Duplicate copies of General Form No.
a.) 57A (Request Form)
b.) Special Order increasing the
amount of accountability
c.) 5 copies List of Bondable Officials
certified by the Agency Head (Annex E)
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ADJUDICATION
AND PAYMENT
OF CLAIM
AGAINST THE
FIDELITY FUND
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 8.1 Application for Relief from Accountability

ADJUDICATION When loss of public funds or

AND PAYMENT property occurs :
OF CLAIM while they are in :
AGAINST THE a.) transit
FIDELITY FUND caused by:
b.) fire
c.) theft
d.) other casualty or force
majeure
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 8.1 Application for Relief from Accountability

The public officer shall immediately

ADJUDICATION
AND PAYMENT notify the COA or the agency auditor
OF CLAIM concerned, and within thirty (30) days
AGAINST THE or such longer period as the COA or
FIDELITY FUND auditor may in the particular case
allow, shall present his application for
relief with the available supporting
evidence.

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ADJUDICATION 8.2 Effect of Relief from Accountability by COA
AND PAYMENT
OF CLAIM The relief from accountability
AGAINST THE granted by the COA shall relieve
FIDELITY FUND the agency from responsibility for
the loss or damage to public funds
or property.

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 8.3 Fidelity Fund; When Liable
ADJUDICATION
AND PAYMENT When no relief of accountability is
OF CLAIM granted by COA, the agency
AGAINST THE concerned may file claim for
FIDELITY FUND reimbursement from the Fidelity
Fund to the extent of the approved
bond covered or amount of loss
whichever is lower.

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POSTBANK

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ANNEX A

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ANNEX B

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ANNEX C.1

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ANNEX C.2

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SPECIAL
ORDER

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