Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
Scope.
SECTION 1. Scope.—This Decree shall govern the conduct and management of the financial affairs, transactions, and operations of provinces, cities, municipalities and barrios, and shall provide the organization for local fiscal administration in the local governments.
Fundamental Principles.
SEC. 2. Fundamental Principles.—Local government financial affairs, transactions, and operations shall be governed by the fundamental principles set forth hereunder. No money shall be paid out of the treasury except in pursuance of a lawful appropriation or other specific statutory authority. Public funds and monies shall be spent solely for public purposes. Revenue is obtainable only from sources expressly authorized by law and collection thereof shall at all times be acknowledged properly. All monies officially received by a public officer in any capacity or upon any occasion shall be accounted for as government funds, except as may otherwise be specifically provided by law or competent authority. Trust funds shall not be paid out of the treasury except in fulfillment of the purpose for which the trust was created or fund received. Every officer of the government whose duties permit or require the possession or custody of government funds shall be properly bonded and such officer shall be accountable and responsible for said funds and for the safekeeping thereof in conformity with the provisions of law. Local governments shall formulate sound financial plans and the local budgets shall, by and large, be based on functions, activities, and projects, in terms of expected results. Fiscal responsibility shall, to the greatest extent, be shared by all those exercising authority over the financial affairs, transactions and operations of the local governments.
Supervisory authority of the Department of Finance.
SEC. 3. Supervisory authority of the Department of Finance.—The Department of Finance shall exercise general supervision over the financial affairs of the local governments and, except as otherwise specifically provided by law, over all funds the investment of which is authorized by law. For the purpose, and along with the powers, duties and functions vested upon it by law, it shall be the responsibility of the Department to: Formulate and execute fiscal policies that will promote the financial stability and growth of the local governments; Provide the local governments with policy guidelines in the preparation and adoption of sound financial plans and review the local budgets in order to enhance the maximum utilization of local funds and resources; Adopt and enforce the necessary measures that will improve local treasury operations and foster effective financial management at the local levels; and Ensure the proper use, custody and safekeeping of public funds in the local governments. In order to attain the foregoing objectives, the Secretary of Finance shall exercise direct executive supervision over all treasury officials and personnel in the local governments.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).