A fidelity bond, according to the Bureau of Treasury, is an insurance of a bondable public officer to assure that he faithfully performs all the duties imposed by law upon him and faithfully accounts for all funds and public property coming into his possession and custody of control. With this insurance, a bond premium is collected from the accountable officer by the Bureau of the Treasury (BTr). Said bond premium, which can be reimbursed and charged to school MOOE, shall be one and a half percent (1.50%) of the amount of the bond but not less than one hundred fifty pesos (P150.00) or shall be based on Bond Premium Schedule (ANNEX C) provided by TC No. 02- 2009 for cash accountability.
Prior to the procurement of goods and services indicated in the approved Annual Procurement Plan ( APP) of the school, the school head, being the accountable officer, must first be bonded and his fidelity be insured in accordance with Public Bonding Law ( Sec. 314).
How to process Fidelity Bond?
For the school head to be bonded, he must first fill up Form 3: Annex D and Form 4: Annex E (downloadable at the Bureau of Treasury website). After filling up the forms, they will be submitted to the Division Office for verification of the truthfulness of the answers to the questions contained in the forms. Upon verification, it will be signed by the head of agency and, later on, be notarized by a lawyer. When the forms are already notarized, a copy of the deployment order of the school head and a copy of his Statement of Assets and Liabilities Net Worth (SALN), together with the notarized forms are submitted to the designated Bureau of Treasury field office or to their email account. Upon verification of submitted forms, an Authority to Accept Payment (ATAP) is released to the school head- applicant. Said ATAP is a document stipulating the amount of bond premium which shall be paid at Landbank or DBP. After payment, copies of the Cash Deposit Slip and the Official Receipt are submitted to the BTr field office. Upon receipt, the Btr will check the forms and documents submitted. When all is thoroughly ready, the field office will release the Approved Confirmation Letter (ACL), indicating the school head is bonded for one year or up to three years, depending on the choice of bond period coverage.
How to renew Fidelity Bond?
The same process shall take place when renewing an expiring fidelity bond. The only difference is that, when renewing fidelity bond, the SALN of the school head is no longer necessary. All other attachments are still required.
However, it is important to note that the school head should renew the fidelity bond on or before the expiry date to avoid undesirable liabilities. As reiterated by the Bureau of Treasury, the liabilities shall be administrative and criminal.
Presidential Decree 1445 on the Government Auditing Code of the Philippines (Sections 101 & 127) is a neglect of duty and will be penalized in accordance with the Civil Service Law.
Criminal Liability (Anticipation of Duties of a Public Office)
Suspension from office or employment until he shall have complied with the formalities of the law & fine from P200 to P500 (Art. 236, Revised Penal Code).
Thus, to ensure smooth transactions and avoid delays in the procurement of goods and services that are deemed necessary in the delivery of public service, the school head must renew his fidelity bond on or before it expires.
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