Guidelines on the Collection and Deposit of Income/Receipts from All Sources

March 1, 2004 DSWD ADMINISTRATIVE ORDER NO. 011-04 FOR : All Bureaus/Services Directors, Field Directors, Accountants, Budget Officers and All Others Concerned SUBJECT : Guidelines on the Collection and Deposit of Income/Receipts from All Sources 1.0 RATIONALE Pursuant to the provisions of Section 44 of Book VI, E.O. 292 (Administrative Code of 1987), unless otherwise specifically provided by law, all income/receipts collected by the agency in the exercise of its functions shall be deposited with the National Treasury and shall accrue to the General Fund. Sections 3, 8, 9, 11 and 12 of the General Provisions of the General Appropriations Act, RA No. 9206 on Fees, Charges and Assessments; Seminar and Conference Fees; Sale of Products; Sale of Non-Serviceable, Obsolete and Other Unnecessary Equipment; and Donations, respectively, supports the above law on the use of income/receipts collected. However, existing practices in the DSWD reveal that DSWD Regional Offices have varying treatment, recording and reporting on income and receipt accounts. Some practices have resulted to the DBM disapproval of DSWD requests for authority to use such income. Hence, this guideline. HTcADC 2.0 PURPOSE To prescribe guidelines on the collection and deposit of income/receipts from all sources including the appropriate recording process for uniform implementation in the DSWD Central Office and Field Offices. 3.0 COVERAGE This guideline shall cover the following income/receipts: 3.1 Income/receipts which shall be authorized for use of DSWD 3.1.1 Donations in Cash and in Kind 3.1.2 Receipts from other NGAs for implementation of specific project 3.1.3 LGU share (youth offender/RRCY) 3.1.4 Seminar and conference fees 3.1.5 Affiliation Fees from students for Civic Welfare Training Service of the NTSP 3.1.6 Proceeds from sales of scraps/wastes materials 3.1.7 Proceeds from sales of unserviceable PPEs 3.2 Income/receipts which are not authorized for use of DSWD 3.2.1 Service Fees 3.2.2 Use of facilities 3.2.3 Fines and Penalties 3.2.4 Proceeds from sales of PSCB products 3.2.5 Interest Income 4.0 GUIDELINES For uniformity of action, the following income/receipt accounts are categorized as follows: 4.1 Income/receipts that shall be authorized for use of DSWD . Income/receipts under this category are those that require remittance to the National Treasury but may be authorized for agency use upon submission of Special Budget to DBM and the issuance by DBM of SARO and NCA. 4.1.1 Cash Donations. These cover cash donations from various sources, domestic or foreign, which are deemed automatically appropriated for purposes specified by the donor. These receipts shall be remitted to the National Treasury and recorded under NG Books and are made available to the agency through a Special Budget pursuant to Section 35, Book VI of E.O. 292. Unless it is authorized by the donor/grantor that the same shall be deposited with Authorized Government Depository Bank (AGDB) as provided under COA-GAFMIS Circular Letter No. 2003-005 dated November 21, 2003, these receipts shall be recorded under RA Books. aScITE Accounting Journal Entries: Receipt of Donation Cash Collecting Officer XXX Income from Grants and Donations XXX Remittance to National Treasury Income from Grants and Donations XXX Cash Collecting Officers XXX 4.1.2 Donations in Kind . These cover donations in kind from various sources, domestic or foreign, and are deemed automatically appropriated for purposes specified by the donor. These receipts shall be recorded at its monetized value under RA Books Fund 101. Accounting Journal Entries: Receipt of Donation in Kind Appropriate asset account XXX Income from Grants and Donations XXX 4.1.3 Receipts from other NGAs and LGUs. These include collections of the following and are accounted as follows: Nature/Source Account Credited 1) receipts from other NGAs for Due to NGAs implementation of specific projects 2) LGUs counterpart share for the care and Due to LGUs maintenance of youthful offenders as provided under P.D. 603 "Child and Youth Welfare Code" 3) receipts from students for Civic Welfare Other Payable Training Service of the National Training Service Project (NTSP) These receipts shall be treated as liabilities of the Department and recorded under RA Books Fund 101. Collections shall be deposited to the National Treasury and may be made available through a Special Budget. Accounting Journal Entries: Upon collection Cash Collecting Officer XXX Appropriate Liability Accounts XXX Deposit to National Treasury Due from National Treasury XXX Cash Collecting Officers XXX 4.1.4 Receipts from Seminar/Conference Fees. These are fees from seminars and conferences or training program conducted by the Agency in relation to its mandated functions. The collections shall be recorded as income (Seminar Fees) under RA Books and may be made available for the conduct of such seminars and conferences, and for defraying the cost of training facilities, subject to pertinent budget, accounting and auditing rules and regulations. Provided, that any excess of collection shall be remitted to the National Treasury as per Sec. 8 of the General Provision of R.A. No. 9206, FY2003. HEITAD Accounting Journal Entries: Upon collection Cash Collecting Officer XXX Seminar Fees XXX Deposit to AGDB Cash, LCCA XXX Cash Collecting Officers XXX Expenses incurred Training Expenses XXX Cash, LCCA XXX Remittance of excess income to National Treasury Seminar Fees XXX Cash, LCCA XXX 4.1.5 Proceeds from sales of scraps/waste materials, unserviceable, obsolete and other unnecessary PPEs. Pursuant to the provisions of Section 79 of PD 1445 and E.O. No. 309 dated March 8, 1996, agencies are authorized to sell non-serviceable, obsolete and other unnecessary equipment. Proceeds of which shall be deemed automatically appropriated for the purchase of new ones, and for the repair or rehabilitation of existing vital equipment. Accounting Journal Entries: Upon sale Cash Collecting Officer XXX Appropriate Asset Account XXX Gain on Sale XXX Deposit to BTr Due from BTr XXX Cash Collecting Officers XXX Receipt of NCA Cash, National Treasury, MDS XXX Due from BTr XXX 4.2 Income/receipts that are not authorized for use of DSWD. Income collections which shall be remitted to the National Treasury and shall accrue to the General Fund and to be recorded in the NG books of the collecting agency are as follows: 1. Travel Clearance for minors 2. Parental Travel Permit Fees 3. Licensing Fees of Social Welfare Organizations 4. Solicitation Permit Fees 5. Facilitation Fees (for Duty Free Entry) 6. Income from Dormitory Operations 7. Fines and Penalties 8. Proceeds from sales of PSCB products 9. Interest Income Accounting Journal Entries: Upon Collection Cash Collecting Officers XXX Appropriate Income Accounts XXX Upon remittance Appropriate Income Accounts XXX Cash Collecting Officers XXX 5.0 REPORTING REQUIREMENTS A Quarterly Report of Actual Income shall be submitted to the Central Office for consolidation. The report shall include all cash receipts that are recorded as income in the books of accounts and remitted to the National Treasury, those that are subject for special budget and all other receipts accruing to the National Government. Two sets of reports shall be made pertaining to RA Books and NG Books. ATICcS 6.0 EFFECTIVITY These guidelines shall take effect January 02, 2004. Issued this 1st day of March 2004 at Quezon City. (SGD.) CORAZON JULIANO N. SOLIMAN Secretary