Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
SEC. 4. Definition of "Fund."—A fund is a sum of money or other resources set aside for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations and constituting an independent fiscal and accounting entity.
Accounting for Monies Received by Public Officers.
SEC. 5. Accounting for Monies Received by Public Officers.—Except as otherwise specifically provided, all monies received by a public officer shall be accounted for as Government Funds.
Payment of Government Monies into the Treasury.
SEC. 6. Payment of Government Monies into the Treasury.—Officers of the government authorized to receive and collect monies arising from taxes, revenues, or receipts of any land shall remit the full amounts as received and collected by them into the treasury of the branch of the Government to which such officers in their collecting capacity respectively pertain, to the credit of the particular account or accounts to which the monies in question initially belong. The amount of such collections ultimately payable to other branches of the Government, shall thereafter be transferred to the respective treasuries of those branches, under regulations which the Commission on Audit shall prescribe.
The Local Funds.
SEC. 7. The Local Funds.—Provincial, city and municipal governments shall maintain only two local funds, namely, the general fund and the infrastructure fund and they shall be used to account for such monies and resources as may be received in and disbursed from the local treasury. The General Fund, shall consist of monies and resources not otherwise accruing to any other fund and shall be available for the payment of expenditures, obligations or purposes not specially declared by law as chargeable to, or payable from, any other fund, through transfers of monies or resources therefrom to other funds of the local government for their augmentation and use may be made by proper appropriation. The Infrastructure Fund, shall consist of monies and resources raised or earmarked by law, including those which under existing laws accrue to the road and bridge fund, allotments under Republic Act No. 917, as amended, and transfers from the General Fund, which shall be available exclusively for the following purposes: The repair, maintenance, improvement, and construction of roads, bridges, and highways. However, in applying this fund to such uses, adequate provision shall be made for the maintenance of existing unabandoned roads and bridges before any new construction is undertaken. The providing and maintaining of wharves, piers, and docks, in accordance with plans and specifications furnished by the proper national office, and for removing obstructions to navigation. Subsidizing or for acquiring, operating, and maintaining means of water transportation within the province or city or between the province or city and neighboring provinces and city or islands or to dredge rivers and provide facilities for communication and transportation by river, as well as for establishing and operating telephone systems. The construction, improvement, maintenance and repair of wharves, piers and docks; plazas, parks, monuments and playgrounds; street lighting; artesian wells; irrigation system; flood control systems; sewerage and drainage systems; and other permanent public improvements. The acquisition of lands and buildings for public use. Construction of roads and bridges shall include preliminary investigation and surveys besides actual construction. Subject to the approval of the Secretary of Finance, the local board or council may, upon proper justification, transfer any unappropriated balance of this fund to cover exceptionally urgent needs of the province, city, or municipality.
Special Education Fund.
SEC. 8. Special Education Fund.—There shall be maintained in the local treasuries a separate fund to be known as the Special Education Fund which shall consist of the respective shares of provinces, cities and municipalities in the proceeds of the additional one per cent real property tax levied and appropriated for educational purposes under Republic Act No. 5447, as amended by Sections 41 and 87 (b) of Presidential Decree No. 464, otherwise known as the Real Property Tax Code.
Trust Funds.
SEC. 9. Trust Funds.—Trust funds are private and public monies which have officially come into the possession of the Government or of a government officer as trustee, agent, or administrator, or which have been received as a guaranty for the fulfillment of some obligation. A trust fund is available only for the specific purpose for which it was created or for which it came into the possession of the Government.
Separation of Books and Depository Accounts.
SEC. 10. Separation of Books and Depository Accounts.— Local treasurers shall maintain separate books and depository accounts for each fund in their custody or administration under such rules and regulations as the Commission on Audit may prescribe.
Depository Accounts.
SEC. 11. Depository Accounts.—Local treasurers shall maintain their depository accounts with Banks duly designated as government depositories by the Central Bank of the Philippines. Municipal treasurers shall deposit their funds with the provincial treasurer who, in turn, shall deposit the same with the duly designated banks. Provincial, city and municipal treasurers may directly deposit with duly designated banks excess local funds under time deposit accounts, upon resolution of the local legislative body and upon approval by the provincial treasurer and the provincial auditor, in the case of municipal funds. Earnings of such deposits shall accrue to the proper funds.
Separation of Personal Money from Public Funds.
SEC. 12. Separation of Personal Money from Public Funds.—Local treasurers and other accountable officers shall keep personal monies separate and distinct from government funds in their custody and shall not make profit out of public money or otherwise apply the same to any use not authorized by law.
Special Accounts to he Maintained in the General Fund.
SEC. 13. Special Accounts to he Maintained in the General Fund.—There shall be maintained in the general fund of the local government concerned special accounts for the following: Public utilities and other economic enterprises. Barrio Development Fund.—There is hereby created a barrio development fund to be constituted from the annual contribution from each province, city, or municipality in amounts not exceeding five hundred pesos per barrio. This fund shall be spent solely for community development projects which meet the requirements set forth by the Secretary of Local Government and Community Development. The provincial or city treasurer, who shall be the custodian of this fund, shall maintain in his books a special account therefor. The provincial treasurer shall make releases from this fund thru the municipal treasurer concerned who shall be responsible for the proper disbursement and accounting of the same. Loans, interests, bond issues and other contributions for specific purposes. Receipts and expenditures involving the above-mentioned special accounts shall be properly taken up thereunder. Not profits derived from the operation of public utilities and other economic enterprises, when not needed for the return of the advances made therefor, shall be spent solely for the improvement of the public utility or the economic enterprises concerned.
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).