ADMIN CODE

SECTION 2. General Terms Defined. — Unless the specific words of

the text, or the context as a whole, or a particular statute, shall require
a different meaning:

(1) Government of the Republic of the Philippines refers to the

corporate governmental entity through which the functions of
government are exercised throughout the Philippines, including, save
as the contrary appears from the context, the various arms through
which political authority is made effective in the Philippines, whether
pertaining to the autonomous regions, the provincial, city, municipal or
barangay subdivisions or other forms of local government.

(2) National Government refers to the entire machinery of the central

government, as distinguished from the different forms of local
governments.

(3) Local Government refers to the political subdivisions established by

or in accordance with the Constitution.

(4) Agency of the Government refers to any of the various units of the
Government, including a department, bureau, office, instrumentality,
or government-owned or controlled corporation, or a local government
or a distinct unit therein.

(5) National Agency refers to a unit of the National Government.

(6) Local Agency refers to a local government or a distinct unit therein.

(7) Department refers to an executive department created by law. For

purposes of Book IV, this shall include any instrumentality, as herein
defined, having or assigned the rank of a department, regardless of its
name or designation.

(8) Bureau refers to any principal subdivision or unit of any

department. For purposes of Book IV, this shall include any principal
subdivision or unit of any instrumentality given or assigned the rank of
a bureau, regardless of actual name or designation, as in the case of
department-wide regional offices.

(9) Office refers, within the framework of governmental organization,

to any major functional unit of a department or bureau including
regional offices. It may also refer to any position held or occupied by
individual persons, whose functions are defined by law or regulation.

(10) Instrumentality refers to any agency of the National Government,

not integrated within the department framework vested with special
functions or jurisdiction by law, endowed with some if not all corporate
powers, administering special funds, and enjoying operational
autonomy, usually through a charter. This term includes regulatory
agencies, chartered institutions and government-owned or controlled
corporations.

(11) Regulatory agency refers to any agency expressly vested with

jurisdiction to regulate, administer or adjudicate matters affecting
substantial rights and interest of private persons, the principal powers
of which are exercised by a collective body, such as a commission,
board or council.

(12) Chartered institution refers to any agency organized or operating

under a special charter, and vested by law with functions relating to
specific constitutional policies or objectives. This term includes the
state universities and colleges and the monetary authority of the State.

(13) Government-owned or controlled corporation refers to any agency

organized as a stock or non-stock corporation, vested with functions
relating to public needs whether governmental or proprietary in
nature, and owned by the Government directly or through its
instrumentalities either wholly, or, where applicable as in the case of
stock corporations, to the extent of at least fifty-one (51) per cent of its
capital stock: Provided, That government-owned or controlled
corporations may be further categorized by the Department of the
Budget, the Civil Service Commission, and the Commission on Audit for
purposes of the exercise and discharge of their respective powers,
functions and responsibilities with respect to such corporations.

(14) “Officer” as distinguished from “clerk” or “employee”, refers to a

person whose duties, not being of a clerical or manual nature, involves
the exercise of discretion in the performance of the functions of the
government. When used with reference to a person having authority to
do a particular act or perform a particular function in the exercise of
governmental power, “officer” includes any government employee,
agent or body having authority to do the act or exercise that function.

(15) “Employee” when used with reference to a person in the public

service, includes any person in the service of the government or any of
its agencies, divisions, subdivisions or instrumentalities.

BOOCHAPTER 10

BOOK III

CHAPTER X

Functions of the Agencies Under the Office of the President

SECTION 30. Functions of Agencies Under the Office of the President.

—Agencies under the Office of the President shall continue to operate
and function in accordance with their respective charters or laws
creating them, except as otherwise provided in this Code or by law.

SECTION 31. Continuing Authority of the President to Reorganize his

Office.—The President, subject to the policy in the Executive Office and
in order to achieve simplicity, economy and efficiency, shall have
continuing authority to reorganize the administrative structure of the
Office of the President. For this purpose, he may take any of the
following actions:

(1) Restructure the internal organization of the Office of the President

Proper, including the immediate Offices, the Presidential Special
Assistants/Advisers System and the Common Staff Support System, by
abolishing, consolidating or merging units thereof or transferring
functions from one unit to another;

(2) Transfer any function under the Office of the President to any other
Department or Agency as well as transfer functions to the Office of the
President from other Departments and Agencies; and

(3) Transfer any agency under the Office of the President to any other
department or agency as well as transfer agencies to the Office of the
President from other departments or agencies.

CHAPTER 7

BOOK IV- Chapter 7

Administrative Relationships

SECTION 38. Definition of Administrative Relationships.—Unless

otherwise expressly stated in the Code or in other laws defining the
special relationships of particular agencies, administrative
relationships shall be categorized and defined as follows:

(1)Supervision and Control.—Supervision and control shall include

authority to act directly whenever a specific function is entrusted
by law or regulation to a subordinate;

a. direct the performance of duty;

b. restrain the commission of acts;

c. review, approve, reverse or modify acts and decisions of

subordinate officials or units;

d. determine priorities in the execution of plans and

programs; and prescribe standards, guidelines, plans and
programs. Unless a different meaning is explicitly provided
in the specific law governing the relationship of particular
agencies, the word “control” shall encompass supervision
and control as defined in this paragraph.

(2)Administrative Supervision.

(a) Administrative supervision which shall govern the

administrative relationship between a department or its
equivalent and regulatory agencies or other agencies as may be
provided by law, shall be limited to the authority of the
department or its equivalent to generally oversee the
operations of such agencies and to insure that they are
managed effectively, efficiently and economically but without
interference with day-to-day activities;
 ii. or require the submission of reports and cause the
conduct of management audit, performance evaluation
and inspection to determine compliance with policies,
standards and guidelines of the department;

iii. to take such action as may be necessary for the proper

performance of official functions, including rectification of
violations, abuses and other forms of maladministration; and to
review and pass upon budget proposals of such agencies but
may not increase or add to them;

(b) Such authority shall not, however, extend to:

(1) appointments and other personnel actions in accordance with the

decentralization of personnel functions under the Code, except when
appeal is made from an action of the appointing authority, in which
case the appeal shall be initially sent to the department or its
equivalent, subject to appeal in accordance with law;

(2) contracts entered into by the agency in the pursuit of its objectives,
the review of which and other procedures related thereto shall be
governed by appropriate laws, rules and regulations;

and (3) the power to review, reverse, revise, or modify the decisions of
regulatory agencies in the exercise of their regulatory or quasi-judicial
functions; and

(c) Unless a different meaning is explicitly provided in the specific law

governing the relationship of particular agencies, the word
“supervision” shall encompass administrative supervision as defined in
this paragraph.

(3) Attachment.—

(a) This refers to the lateral relationship between the department or its
equivalent and the attached agency or corporation for purposes of
policy and program coordination.

The coordination may be accomplished by having the department

represented in the governing board of the attached agency or
corporation, either as chairman or as a member, with or without voting
rights,

if this is permitted by the charter; having the attached corporation or

agency comply with a system of periodic reporting which shall reflect
the progress of programs and projects; and having the department or
its equivalent provide general policies through its representative in the
board, which shall serve as the framework for the internal policies of
the attached corporation or agency;

(b) Matters of day-to-day administration or all those pertaining to

internal operations shall be left to the discretion or judgment of the
executive officer of the agency or corporation. In the event that the
Secretary and the head of the board or the attached agency or
corporation strongly disagree on the interpretation and application of
policies, and the Secretary is unable to resolve the disagreement, he
shall bring the matter to the President for resolution and direction;

(c) Government-owned or controlled corporations attached to a

department shall submit to the Secretary concerned their audited
financial statements within sixty (60) days after the close of the fiscal
year; and

(d) Pending submission of the required financial statements, the

corporation shall continue to operate on the basis of the preceding
year’s budget until the financial statements shall have been submitted.
Should any government-owned or controlled corporation incur an
operating deficit at the close of its fiscal year, it shall be subject to
administrative supervision of the department; and the corporation’s
operating and capital budget shall be subject to the department’s
examination, review, modification and approval.

SECTION 20. Residual Powers.—Unless Congress provides otherwise,

the President shall exercise such other powers and functions vested in
the President which are provided for under the laws and which are not
specifically enumerated above, or which are not delegated by the
President in accordance with law