Guidelines for the Transfer by National Government Agencies of All Cash Balances to the National Treasury

January 2, 1997

JOINT COA-DBM-DOF CIRCULAR NO. 01-97

 

1.0 Purpose

To prescribe the rules and regulations that will implement the provisions of Executive Order No. 338 dated May 17, 1996 directing the deposit of cash balances to the National Treasury.

2.0 Coverage

2.1 This Circular shall cover all cash balances deposited by national government agencies with authorized government depository banks (AGDBs) or private banks including collections still in the hands of national collecting officers.

2.2 The following accounts in the possession or under the administration of National Government agencies are, however, exempted:

2.2.1 cash advances for salaries and wages and petty disbursements;

2.2.2 accounts with banks maintained for funding checks issued by central/regional offices (COs/ROs) for the operational requirements of ROs/districts/operating units;

2.2.3 revolving funds expressly created and authorized by law and authorized to be deposited in a government financial institution; and

2.2.4 cash accounts owned by government-owned and/or controlled corporations and local government units.

3.0 Guidelines

3.1 All National Government cash balances, regardless of where these are presently deposited or their source of collection, except those specifically exempted under item 2.2 hereof, shall be deposited with the National Treasury to maximize the use of scarce government resources by minimizing government borrowings and rationalizing cash management.

3.2 Existing cash balances that are deposited in accounts outside of the National Treasury shall immediately be transferred in accordance with the procedures under Section 4.0 hereof. However, cash donations previously taken up/recorded as trust receipts in agencies' books of accounts shall, henceforth, be recorded and accounted for as Special Account in the General Fund as provided under Sec. 11 of the General Provisions of the 1996 GAA.

3.3 Accounts exempted from this Circular under Section 2.2 above shall continue to be governed by existing rules and procedures.

4.0 Procedures for Transfer of Deposit

4.1 Agencies shall transfer to the National Treasury, not later than January 15, 1997, the cash balances as of December 31, 1996 duly reconciled between the agency and the depository bank.

4.2 The agency shall close its accounts in the AGDB and issue a check, net of outstanding checks, for deposit to the National Treasury as follows:

4.2.1 In the case of central offices, for delivery to the BTR-Head Office; and,

4.2.2 In the case of provincial/regional offices, for deposit to the account of the Treasurer of the Philippines (TOP) with AGDBs in accordance with Department of Finance (DOF) Order No. 52-96 dated May 22, 1996.

4.3 All deposits made in accordance with this Circular shall be classified either as transfer of balances of trust receipt accounts or as transfer of other cash balances to be identified in the fund code column using codes "184/284" or "338",respectively, pursuant to DOF Order No. 52-96.

4.3.1 Separate deposit slips shall be prepared for each kind of transfer/deposit.

4.3.2 A List of Collections shall be attached as support to the deposit slip indicating "13700" in the transaction code column of the format prescribed under DOF Order No. 52-96 to specify items deposited pertaining to Executive Order 338.

4.4 In the absence of an MDS Sub-account, the agency shall open and maintain one with an AGDB. AIDSTE

4.5 Agencies shall prepare a report on trust receipts and other bank balances transferred to BTR using the format shown in Annex "A".The report shall be submitted to COA, DBM (BFB-F) and BTR within five (5) working days from date of transfer of cash balances to BTR.

5.0 Procedures for Withdrawal of Deposits from BTR

5.1 After the transfer of cash balances to the BTR has been effected, agencies may request for issuance of NCA from the DBM.

5.1.1 Letter-requests for issuance of NCAs shall be forwarded to the concerned DBM-Budget and Finance Bureaus (BFBs),Regional Coordination Service and ROs duly supported by:

a. photocopy of either of the following: for COs — official receipt duly certified by the agency head and the director of the Financial Management Service and for ROs — deposit slip validated by the bank;

b. the agency's latest trial balance; and,

c. a copy of disbursement voucher taking up the actual transfer of cash balances to the BTR.

5.2 The DBM shall, within three (3) days upon receipt of complete documentation requirements mentioned in item 5.1.1, immediately prepare NCAs corresponding to the amount deposited.

5.2.1 These NCAs shall be valid in the year of issue and shall lapse on December 31 of said year.

5.2.2 The lapsed/unutilized portion, inclusive of unused portion of additional deposits made during the year, shall be subject to issuance of another NCA for the unutilized amount in the ensuing year.

5.2.3 The NCAs issued are to be used only for direct disbursements, i.e.,for payment of expenses as intended by the project being implemented.

5.2.4 In no case shall an amount be authorized to be transferred to another account with an AGDB.

5.3 NCAs, to be coded "184"/"284"/"338", shall be issued using existing MDS sub-accounts, subject to the provisions of Sec. 35, Chapter 5, Book VI of Executive Order 292.

5.3.1 Receipts from non-income sources by agencies acting as agent for the fulfillment of an obligation, such as performance bonds, bail bonds, receipts for refunds, honoraria, etc.,shall not be subject to special budget and shall be coded "184".

5.3.2 Receipts from non-income sources intended for projects/activities to be undertaken by agencies shall be subject to special budget and shall be coded "284".

5.4 Disbursement shall be made by means of a separate MDS check series with the suffixes "184"/"284"/"338".

5.4.1 A separate Advice of Checks Issued and Cancelled (ACIC) shall be prepared for the purpose.

5.4.2 For transactions maintained under the General Fund Proper, "101(184/284/338)" should be affixed in the fund code caption; "102(184/284/338)" for Foreign-Assisted Projects (FAPs) and "184/284" for those with separate books of accounts.

5.5 NCA shall not be released for unauthorized credits to trust accounts. These shall, instead, be adjusted to appropriate accounts. AaCTcI

6.0 Amendatory Clause

All executive rules, regulations and other issuances or parts thereof which are inconsistent with the provisions of this Circular are hereby revoked and/or modified accordingly. Specifically amended, among others, are Ministry of Budget-Ministry of Finance-Commission on Audit Circular No. 9-81 dated October 19, 1981 on the Consolidated and Revised Guidelines in the Proper Handling, Operation and Accounting for Trust Receipts and Office of Budget and Management-Ministry of Finance-Commission on Audit Joint Circular No. 9-81A dated November 30, 1983 pertaining to Amendment to Joint Circular No. 9-81.

7.0 Saving Clause

Cases not covered by the provisions of this Circular shall be referred to the DBM which shall resolve the matter in coordination with the Commission on Audit and the Department of Finance.

8.0 Penalty Clause

Failure to comply with the herein provisions shall subject the responsible official/s and/or employee/s to appropriate criminal and/or administrative action.

9.0 Effectivity

This Circular shall take effect immediately.

(SGD.) CELSO D. GANGANChairman

(SGD.) SALVADOR M. ENRIQUEZ, JR.Secretary

(SGD.) ROBERTO F. DE OCAMPOSecretary

ANNEX A

"Report of Cash Balances Transferred to the Bureau of the Treasury"

INSTRUCTIONS IN ACCOMPLISHING THE FORM

1. This report shall list down all cash balances transferred by the agency to the BTr pursuant to EO 338.

2. This report shall be prepared only ONCE, i.e.,upon transfer of cash bank balances and shall be submitted to the Commission on Audit (COA),Department of Budget and Management-Budget and Finance Bureau F (DBM-BFB-F) and the Bureau of the Treasury (BTr) within 5 working days from actual date of transfer.

3. It shall be duly signed by the Chief Accountant/Head of Accounting Unit, certifying as to its correctness and shall be approved by the Agency Head.

4. It shall be accomplished in quadruplicate, allowing copies for the COA, DBM, BTr and the Agency.

5. The name of fund transferred/deposited to the BTr shall be indicated in Column (1).

6. The fund code assigned to identify the fund as stated in column (1) shall be indicated in Column (2).

8. *  The legal basis/enabling act/charter which provided for the legal existence of the fund shall be indicated in Column (3).

9. The "Nature of Collection" for Column (4) shall contain a short description of the nature of the fund, specifying the source and type of all receipts of the agency.

10. The "Nature and Date of Last Transaction" for Column (5) shall indicate the nature of the last transaction as appearing in the books of account prior to the deposit of the fund with BTr.

11. The "Amount Transferred to BTr" — shall indicate the amount to coincide with that as appearing in the official receipt duly certified or deposit slips validated by the bank.