DOJ Opinion No. 075, s. 1997

DOJ OPINION NO. 075 , s. 1997 November 7, 1997 Mr. Carlos L. Agustin General Manager Philippine Ports Authority Marsman Bldg., South Harbor Port Area, Manila Sir : This refers to your request for guidance as to whether the Philippine Ports Authority (PPA) can delegate the collection of "import wharfage" to the Asian Terminals, Inc. (ATI), its cargo-handler in the South Harbor. It appears that the direct collection by ATI of the wharfage dues has been recommended by the District Manager of the Port District Office of Manila in line with ATI's computerization program to promote and enhance efficiency at the South Harbor. Under the arrangement, ATI shall collect the wharfage dues, together with the amounts due to ATI, issue temporary receipts for the wharfage dues collected, deposit the collection in PPA's account with the Land Bank twice daily, and put up a guarantee fund which will automatically answer for undeposited collections of wharfage dues. You wish to know if the aforesaid procedure could be adopted without violating this Department's Opinion No. 175 dated December 22, 1993. You point out that the import wharfage collected by ATI will not accrue to ATI as part of its revenue but will be turned over to PPA through the Land Bank and that it shall be the PPA which will issue the Official Receipt to the port users. aisadc We are constrained, with regret, to refrain from expressing our views on the legal propriety of designating the Cashier of ATI as collecting officer of PPA in view of the following provisions of the Government Auditing Code (P.D. No. 1445) and the Government Accounting and Auditing Manual: 1. Government Auditing Code "SECTION 64. Designation of collecting officers for government agencies . The head of an agency may designate such number of collecting officers or agents as may be deemed necessary . They shall render reports of their collections, under the regulations of the Commission, to be submitted promptly to the auditor concerned who shall conduct the necessary examination and audit within thirty days from receipt thereof." "SECTION 68. Issuance of Official receipt . (1) No Payment of any nature shall be received by a collecting officer without immediately issuing an official receipt in acknowledgment thereof . The receipt may be in the form of postage, internal revenue or documentary stamps and the like, or officially numbered receipts, subject to proper custody, accountability, and audit. (2) Where mechanical devices are used to acknowledge cash receipts, the Commission [on Audit] may approve, upon request, exemption from the use of accountable forms." "SECTION 75. Transfer of funds from one officer to another . Transfer of government funds from one officer to another shall, except as allowed by law or regulation, be made only upon prior direction or authorization of the Commission or its representative ." [Note that, as defined in Section 3(8) of the Code, "government agency" includes "government-owned or controlled corporation, including its subsidiaries, or other self-governing board or commission of the government".] 2. Government Accounting and Auditing Manual "SECTION 65. Designation of collecting officers . The head of an agency may designate such number of collecting officers or agent as may be deemed necessary (Sec. 64, PD 1445). As a general rule, the collection of revenues and receipts shall be done by the regularly appointed Collecting Officer/Treasurer . In local government units, local treasurers are vested by law to collect and receive all monies accruing to their respective jurisdictions whether in the form of collectible taxes and other revenues or receipts or trust funds pertaining to other branches or units of the government (Secs. 170 and 247, RA 7160). Collectors/Tellers may also be designated to assist Collecting Officers/Treasurers and they shall turn over their collections daily to the Collecting Officer/Treasurer concerned . Collectors in the field shall turnover their collections on the day they return to the office." "SECTION 66. Bonding of accountable officers . Every officer of any government agency whose duties permit or require the possession or custody of government funds or property shall be accountable therefor and for the safekeeping thereof in conformity with law and shall be properly bonded in accordance with law (Sec. 101, PD 1445; Sec. 305(f), RA 7160)." "SECTION 68. Reporting . Collecting Officers/Treasurers shall submit daily records of receipts, together with the supporting documents, to the Chief Accountant . The official assigned to the daily recording of transaction in the books of accounts shall turn over the receipts and supporting document to the Auditor within ten (10) days after receipt of such records and documents. The Auditors concerned shall conduct the necessary examination and audit within thirty days from receipt thereof (Sec. 64, PD 1445; COA Cir. 89-299-A, Sept. 8, 1989)." "SECTION 69. Issuance of official receipt . No payment of any nature shall be received by a collecting officer without immediately issuing an official receipt in acknowledgment thereof . The receipt may be in the form of postage, internal revenue or documentary stamps, and the like, or officially numbered receipts, subject to proper custody, accountability, and audit (Sec. 68, PD 1445; Sec. 44(1), Title (B), Bk V, 1987 Adm. Code)." "SECTION 70. Use of mechanical devices . Where mechanical devices are used to acknowledge cash receipts, the Commission on Audit may approve, upon request, exemption from the use of accountable forms (Sec. 68, PD 1445; Sec. 44(2), Title (B), Bk V, 1987 Adm. Code)." "SECTION 72. Prohibition against the use of temporary receipts . At no instance shall temporary receipts be issued to acknowledge the receipt of public funds ." Pursuant to the aforequoted provisions, the head of the agency shall designate the collecting officers who shall be in charge of the collection of revenues and receipts of the agency. The collecting officers shall be properly bonded in accordance with law and shall be accountable for all collections and the safekeeping thereof in conformity with law. Every payment received by the collecting officer shall be issued a corresponding official receipt in acknowledgment thereof. At no instance shall a temporary receipt be issued to acknowledge receipt of public funds. prLL Since the implementation of the foregoing provisions is the responsibility of the Commission on Audit, you may, if you wish, elevate the matter to the said Office for guidance. Very truly yours, (SGD.) TEOFISTO T. GUINGONA, JR. Secretary