Guidelines to Cover the Funding Source for the Grant of Special Allowance Authorized under Republic Act No. 9227

January 13, 2004

SUPREME COURT OF THE PHILIPPINES AND DEPARTMENT OF BUDGET AND MANAGEMENT JOINT CIRCULAR NO. 2004-1

 

1.0 PURPOSE

1.1 This Joint Circular is issued pursuant to Section 7 of Republic Act No. 9227 that states: "The Supreme Court and the Department of Budget and Management shall issue the necessary guidelines for the proper implementation of this Act in respect to funds coming from the National Treasury within ninety (90) days from approval hereof." CTaSEI

2.0 GENERAL GUIDELINES

2.1 The funds necessary for the implementation of the special allowance of Justices and Judges and all other positions in the Judiciary with the equivalent rank of Justices of the Court of Appeals and Judges of the Regional Trial Court shall be sourced from:

2.1.1 Legal fees originally prescribed, imposed and collected under Rule 141 of the Rules of Court prior to the promulgation of the amendments under Presidential Decree No. 1949, dated 18 July 1984; and DcITHE

2.1.2 Increases in current fees and new fees which may be imposed and collected by the Supreme Court after the effectivity of Republic Act No. 9227. benchCDTA

2.2 Effective immediately, collections of the Judiciary from funds enumerated under Items 2.1.1 and 2.1.2 above shall no longer be remitted to the National Treasury. Instead, these shall be deposited in an authorized government depository bank as may be determined by the Supreme Court. Collections made and deposited with the National Treasury from 11 November 2003 until the effectivity of this Joint Circular shall be made available to the Judiciary for the grant of special allowance authorized under Republic Act No. 9227.

2.3 The "basic monthly salary" in Section 2 of Republic Act No. 9227 is that specified for the respective salary grades of justices and judges under Republic Act No. 6758, as amended.

2.4 The Supreme Court shall constitute a fund to be known as the Special Allowance for the Judiciary (SAJ) Fund for the grant of special allowance authorized under R.A. No. 9227.

2.5 For the first three years of implementation, the amount needed to implement the special allowance shall be sourced from the collections from Items 2.1.1 and 2.1.2 above. On the fourth year of implementation or in 2007, the National Government shall provide additional funds for the purpose but not to exceed the amount of One Hundred Sixty Five Million Pesos (PHP165,000,000.00)

3.0 PROCEDURAL GUIDELINES

3.1. Effective 11 November 2003 collections under Items 2.1.1 and 2.1.2 above already deposited with the Bureau of Treasury (BTr) shall be released to the Supreme Court by the Department of Budget and Management (DBM) following the guidelines enumerated hereunder:

3.1.1 The Supreme Court shall transfer income (under Items 2.1.1 and 2.1.2 above) as deposited with the BTr from 11 November 2003 until the effectivity of this Joint Circular, recorded in their respective general fund books to trust fund through journal entry voucher (JEV).

3.1.2 The Supreme Court shall request the BTr to transfer income referred to in items 2.1.1 and 2.1.2 above from the general fund to trust liabilities.

3.1.3 The BTr shall issue certification supported by JEV attesting to the transfer of the subject income from the general fund to trust liabilities.

3.1.4 The Supreme Court shall request DBM to issue Notice of Cash Allocation (NCA), supported by their Report of Income for the same period, copy of the BTr certification and JEV.

3.1.5 The DBM shall issue the NCA corresponding to the income certified by the BTr, to be credited to the regular account under the Modified Disbursement System (MDS) of the Supreme Court.

3.1.6 Upon receipt of the NCA, the Supreme Court shall draw MDS check to transfer the amount to the SAJ Fund of the Supreme Court in the authorized government depository bank which was opened for this purpose.

3.2. The funds needed for the first three years of implementation shall be sourced from Items 2.1.1 and 2.1.2 above.

3.3. At the end of the third year of implementation of R.A. No. 9227, a report of income shall be submitted by the Supreme Court to the DBM indicating the total collections for the year, actual disbursements made and the balance of the SAJ Fund, if any.

3.4. During the fourth year of implementation and thereafter, if the funds collected are insufficient to cover the payment of subject special allowance, the Supreme Court shall submit to the DBM at the end of each quarter a request to cover the release of the amount needed for the deficiency, together with the following documentation:

a) Total requirement needed, indicating the actual number of filled positions entitled thereto, and their corresponding basic monthly salaries as certified by the Deputy Clerk of Court and Chief Administrative Officer of the Supreme Court, and

b) Collections mentioned under Items 2.1.1 and 2.1.2 above and the deficiency or balance to be subsidized by the National Government as certified by the Chief Accountant of the Supreme Court.

The fourth year of implementation shall be understood to cover the period 11 November 2006 to 10 November 2007.

3.5. The deficiency shall be computed and released by the DBM on a quarterly basis provided that the total amount released during the year shall not exceed One Hundred Sixty Five Million Pesos (PHP165,000,000.00) cCaDSA

3.6. The Accounting Entries shall be prescribed by the Commission on Audit.

4.0 GOVERNING CLAUSE

Cases not covered by the provision of this Joint Circular shall be resolved jointly by the Secretary of the DBM and the Court Administrator of the Supreme Court.

5.0 EFFECTIVITY

This Joint Circular shall take effect immediately.

 

(SGD.) PRESBITERO J. VELASCO, JR.

Court Administrator

Supreme Court of the Philippines

(SGD.) EMILIA T. BONCODIN

Secretary

Department of Budget and Management

 

 

Published in Philippine Daily Inquirer on February 4, 2004.