Remittance of 20% Share of DPWH from Building Permit Fees Collected by Local Governments Pusuant to PD 1096

August 3, 2010 DOF DEPARTMENT ORDER NO. 051-10 TO : The Regional Directors of the Bureau of Local Government Finance; Local Government Treasurers; and All Others Concerned SUBJECT : Remittance of the Twenty Percent (20%) Share of the Department of Public Works and Highways from the Building Permit Fees Collected by Local Governments Pursuant to P.D. No. 10 96 or the National Buil ding Code of the Philippines To ensure the regular and timely remittance of the 20% share of the Department of Public Works and Highways (DPWH) from the Building Permit Fees collected by Local Governments pursuant to Presidential Decree No. 1096, otherwise known as the National Building Code of the Philippines, all Local Treasurers are hereby enjoined to faithfully observe and strictly comply with the provisions of item 2, Section 210 of the Revised Implementing Rules and Regulations of the said law, as follows: ACcaET "SECTION 210. Use of Income from Fees. xxx xxx xxx. 2. Disposition of Collections a. The collection shall be made by the Local Treasurer, and the Official Receipt shall show the breakdown of the local collections indicating the share of the local government concerned 80% and the share of the national government 20%. b. Subject to the existing budgetary, accounting and auditing rules and regulations, the Local Treasurer shall remit to the Bureau of the Treasury, the 20% of his collection. The remaining 80% shall be deposited with the Authorized Government Depository Bank (AGDB) for the account of the Local Government and shall accrue to the general funds of the City or Municipality concerned. c. Pursuant to Sec. 21, Volume 1 of the New Government Accounting System (NGAS) Manual as provided under COA Circular No. 2001-004, dated October 30, 2001, the Local Treasurer thru his collecting officer or cashier shall deposit the 80% share of collections to the AGDB for the account of the Local Government concerned. He shall remit the 20% of the collections to the Bureau of the Treasury thru any AGDB branch nearest the locality to the credit of the Department of Public Works and Highways (DPWH), Office of the Secretary with Code No. B5702 and Special Account No. 151. d. Distribution of validated remittance advices and deposit slips of the 20% collections thru any Authorized Government Depository Bank shall be in accordance with COA Circular 2001-004, to wit: Original to be retained by the bank branch. Duplicate to be submitted by the Local Treasurer to the OBO. Triplicate to be retained by the bank branch for submission to the Provincial Treasury Fiscal Examiner assigned to the province where the bank is located. Quadruplicate to be returned to the Local Treasurer for submission to the DPWH-Central Office (CO) Chief Accountant with his monthly report of collections. Quintuplicate to be returned to the Local Treasurer for submission to the Field/Local Auditor. IHEDAT e. The Local Treasurers and the Treasury Vault/Bank Auditor shall have the following responsibilities: i. Local Treasurer. Since the distribution of copies of the validated remittance advices and deposit slips for the Agency/Field Auditor of the Local Treasurers shall be undertaken by the National/Treasury/Bank Branch thru its Treasury Vault Auditor/Bank Auditor, all Local Treasurers shall indicate on the face of the remittance advice, the name and office address of their respective Agency/Field Auditors to facilitate matters. ii. Treasury Vault/Bank Auditor. Upon receipt of the validated remittance advices, the Treasury Vault Auditor/Bank Auditor shall confirm and transmit said remittance advices every end of the week to the corresponding agency/field auditor of the Local Treasurer concerned. In cases where there is no bank auditor assigned in a particular locality, confirmation shall be undertaken by the officer designated by the Head of the Bank branch. f. Reporting of Collections and Deposits. "At the close of each business day, the collecting officers (Local Treasurers) shall accomplish the Report of Collections and Deposits (RCD) in accordance with the NGAS Manual. The reports shall be prepared by the Local Treasurer in five copies, distributed as follows after verification by the field auditor. Original to the DPWH-CO Auditor (thru the DPWH-CO Accountant for recording). Duplicate (with duplicate Official Receipts and Validated quintuplicate Remittance advices) to the Field/Local Auditor for final custody. Triplicate (with validated Quadruplicate remittance advices) to the DPWH-CO Accountant (for posting to the corresponding subsidiary ledgers). Quadruplicate to be retained by the Local Treasurer. HcTIDC Quintuplicate local office accounting file. The Local Treasurer shall certify all the copies of the report and submit the first three (3) copies to his Field Auditor within three (3) days after the end of the month for audit. The Field Auditor shall verify the report, cross check the remittances indicated therein against the quintuplicate copies of remittance advices he receives/received from the Bank Auditor and indicate his certification thereon and finally submit the original and triplicate copies thereof to the DPWH-CO Auditor thru the DPWH-CO Chief Accountant within five (5) days from date of receipt from the Local Treasurer. g. Crediting of Accounts of Local Treasurer In the monthly report of collections, specifically at the back thereof, is a statement of account current showing the accountability of the Local Treasurer. The DPWH-CO Chief Accountant shall cross-check the validated quadruplicate remittance advices attached to the duplicate copy of the monthly report of collections against the remittances made by the Local Treasurer with the National Treasury or any of its authorized depository banks as appearing in the statement of account current. After the cross-checking, and in the absence of any discrepancy, the DPWH-CO Chief Accountant shall credit the account of the Local Treasurer even without the monthly abstract remittances from the National Treasury." Further to the implementation of the aforequoted provisions of item 2, Section 210, all Local Treasurers are likewise hereby invited to take note of the provisions of paragraph "h", same item 2, Section 210, as follows: "h. Safeguards i. . . . . ii. In case of retirement or resignation by Local Treasurers, their clearances shall be held in abeyance until their remittances have been fully cleared by the National Treasury." The Regional Directors of the Bureau of Local Government Finance are hereby instructed to immediately disseminate this Circular to all Provincial, City and Municipal Treasurers within their respective jurisdiction. TDcAIH For faithful observance and strict compliance. (SGD.) CESAR V. PURISIMA Secretary