DBM Policy on Reimbursement of Internet and Mobile Data Subscription Expenses of Government Employees (Circular Letter No. 2021-7)

The Department of Budget and Management (DBM) now allows reimbursement of internet and mobile data subscription expenses of government employees who are authorized to work from home.

This is in consideration of the adoption of alternative work arrangements, as authorized by the Civil Service Commission (CSC), in view of the ongoing COVID-19 pandemic.

Under the alternative work arrangements policy, the CSC allows government agencies to defray reasonable expenses of government employees who are authorized to work from home, one of which is internet and mobile data subscriptions, subject however to budgeting, accounting, and auditing rules and regulations. Thus, the DBM issued Circular Letter No. 2021-7 to set the guidelines on this matter.

Who are entitled to reimbursement of internet and mobile data expenses?

If you’re a regular, casual and/or contractual employee of the government, whether on full-time or part-time basis, you may be allowed to reimburse internet/mobile data subscription expenses, provided you’re duly authorized to work from home.

Thus, when you’re physically reporting to your Office under the skeletal work arrangement, the days spent on said work arrangement are not counted.

On the other hand, the following government employees are not allowed to claim reimbursement of internet and mobile data charges, even when they are authorized to work from home:

• Consultants and experts engaged for a limited period to perform specific activities or services with expected output;
• Those hired on a contract of service and/or job order basis;
• Those provided with official cellular phone subscriptions with internet/mobile data package allocation of 4 GB and up; and/or
• Those who are receiving other similar benefits on the reimbursement of communications-related expenses amounting to Php 300 and higher.

How much internet and mobile data subscription expenses may be reimbursed?

Government employees who are authorized to work from home may claim from P75.00 to P300.00 worth of internet and mobile data subscription expenses monthly.

Government employees who are on part-time basis and are authorized to work from home may also claim reimbursement of their internet expenses and mobile data subscription expenses.

If the part-time employee is working for two (2) or more government agencies, he may claim proportionate amount of reimbursement corresponding to the amount of services rendered, provided that the total claim from all agencies does not exceed P300.00 per month.

Government agencies shall determine the appropriate amount to be set for its employees, considering the nature of their work and other applicable parameters, as well as the availability of funds.

Agencies are required to institute their respective internal implementing policies and rules guided by the conditions and limitations prescribed under the Circular.

What are the required supporting documents to support claim for reimbursement of internet expenses?

The claim for reimbursement is not automatic. The employee must submit a request to his/her agency to claim reimbursement, including the following supporting documents:

📁 Approved authority or office order for employees concerned to report under the work from home arrangement (WFHA) in the agency; and

📁 Accomplishment report specifically identifying the tasks rendered by the employee which needed the use of internet/mobile data during the days when he/she was under the WFHA and claiming reimbursement for the internet/mobile data subscription expense, with certification by the employee concerned and the bureau/service/office head, using the template as provided in CL 2021-7 (Annex A).

[Download Editable Copy of Annex A of DBM Circular Letter No. 2021-7 here]

Funding Source: Where do government agencies get funds to pay claims for reimbursement of internet expenses and mobile data subscription expenses?

For national government agencies (NGAs) and state universities and colleges (SUCs), they are allowed to get the funds under their budget for maintenance and other operating expenses (MOOE), specifically from the budget for internet/mobile data subscription expenses, provided all authorized mandatory expenses should have been paid first.

In case of deficiency in the budget for internet/mobile data subscription expenses, the agency may get the funds from other object of expenditures within its budget for MOOE, except those mandatory MOOE items cited under Section 74 of the General Provisions of the FY 2021 General Appropriations Act (GAA) and applicable provisions of succeeding GAAs.

In modifying items within MOOE, the agency shall use the Modification Advice Form (MAF) as prescribed by the DBM, duly signed by the approving authority or his/her designated representative.

While modification within MOOE is allowed in order to pay claims for reimbursement of internet expenses and mobile data subscription expenses, there shall no any case of MOOE deficiency to be later covered through augmentation.

[You May Want to Know: What is Augmentation?]

Does the policy on reimbursement of internet expenses and mobile data subscription expenses apply only to NGAs and SUCs? What about the LGUs and GOCCs?

No. In fact, the DBM strongly encourages the local government units (LGUs), government-owned and/or controlled corporations (GOCCs), as well as the Constitutional Fiscal Autonomy Group (CFAG) such as the Commission on Audit (COA), Civil Service Commission (CSC), and the Commission on Election (COMELEC), to adopt the guidelines and policies provided in the Circular.

Accounting for Reimbursement of Internet Expenses and Mobile Data Subscription Expenses

The journal entry for the receipt of claims for reimbursement of internet expenses and mobile data subscription expenses with complete supporting documents may be as follows:

Debit: Internet Subscription Expenses (xxx)

Credit: Due to Officers and Employees (xxx)

The journal entry for the payment of claims for reimbursement of internet expenses and mobile data subscription expenses may be as follows:

Debit: Due to Officers and Employees (xxx)

Credit: Appropriate Cash Account (xxx)

Appropriate registries for the incurrence of obligation for the receipt of claims for reimbursement of internet expenses and mobile data subscription expenses should also be updated.

Until when can agencies pay claims for reimbursement of internet expenses and mobile data subscription expenses?

Claims for reimbursement of internet expenses and mobile data subscription expenses can only be made during the adoption of the alternative work arrangement in the government.

The DBM shall review and update the Circular considering subsequent issuances of the CSC with regards to the implementation of alternative work arrangement in the government.

Liability of Accountable Officers

Similar to other Circulars, agency heads are mandated to oversee the proper implementation of the subject Circular and are held liable for any reimbursement of internet or mobile data subscription expense not in accordance with the provisions of Circular Letter No. 2021-7, without prejudice, however, to the refund of any undue payments received by the employees concerned.

[Next to Read: Is the reimbursement of expenses taxable?]

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