DOJ Opinion No. 064, s. 1983

DOJ OPINION NO. 064 , s. 1983 2nd Indorsement April 21, 1983 Respectfully returned to the Chairman, Commission on Audit, Quezon City, the within request for advisory opinion on the query raised by Judge Gualberto dela Llana as to whether the sums of money collected by Olongapo City through the holding of May time Festivals and Mardi Gras pursuant to ordinances/resolutions issued by the Sangguniang Panglunsod of Olongapo City are public or private funds. LexLib Under the premises set forth hereunder, we are of the opinion that the funds in question should be considered public funds. It is disclosed that aside from authorizing the holding of Maytime Festivals and Mardi Gras by the government of Olongapo City, the Sangguniang Panglunsod also authorized the creation of a trust fund, specifying that employees of the City of Olongapo would be the beneficiaries of the said fund raising activities and the adoption of the rules and procedures governing the administration of the said trust funds (Ordinances Nos. 3 and 24, s. 1980 and Ordinance No. 3, 198). Pursuant to Section 4 of Ordinance No. 3. 1980, the trust fund is administered by a board of trustees composed of the City Mayor as Chairman and six members appointed by the Mayor from the religions, civic, labor, business, Kabataang Barangay and other sectors. The aforementioned ordinances were passed pursuant to Section 35 of the Local Tax Code, P.D. No. 231, which provides: "SEC. 35. Charges for holding benefits . The Local Board or council is hereby authorized to hold benefits to raise funds for some specific purpose having in view the general welfare of the local government and its inhabitants, without the need of securing a permit from the Department of Social Welfare. The proceeds thereof shall be disbursed for the specific purpose for which the benefits was held and the excess of the proceeds, if any shall accrue to the general fund of the local government concerned. No such benefit shall be held within one hundred twenty days immediately preceding a national or local elections." We find the following definition of terms in the Government Auditing Code of the Philippines, P.D. No. 1445 to be pertinent: "SEC. 3. Definition of terms . "xxx xxx xxx "(2) 'Government funds' includes public moneys of every sort and other resources pertaining to any agency of the government. "xxx xxx xxx "(4) 'Trust funds' refers to funds which have come officially into the possession of any agency of the government or of a public officers as trustee, agent, or administrator, or which have been received for the fulfillment of some obligation." "SEC. 63. Accounting for moneys and property received by public officials . Except as may otherwise be specifically provided by law or competent authority, all moneys and property officially received by a public officer in any capacity or upon any occasion must be accounted for as government fund and government property. Government property shall be taken up in the books of the agency concerned at acquisition cost or at an appraised value." prcd Funds are impressed with the character of public funds when they are entrusted to a public officer for his official custody (People vs. Quio, 94 Phil. 805 [1954] or are received by a public officer for custody by virtue of his official position. (Moreno, Phil. Law Dictionary) In the light of the foregoing and considering that the funds in question were raised and collected by the City Government pursuant to ordinances and resolutions issued by its law-making body, the Sangguniang Panglunsod, pursuant to the power vested in it by the Local Tax Code, P.D. No. 241 and the same officially came into possession of the Board of Trustees to be administered in accordance with the rules and procedure adopted for the purpose, we do not doubt that the subject funds are public funds and may in no way be considered private funds. Even trust funds are government funds. Please be guided accordingly. (SGD.) RICARDO C. PUNO Minister of Justice