TSPS OCT. 28-29, 2014 Hagnaya.pptx
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DBM-DENR JOINT CIRCULAR NO, 2014-1
On R.A. NO. 10629Dated September 26, 2014DBM-DENR JOINT CIRCULAR NO, 2014-1RATIONALERA N0. 10629 amending Section 16 of RA 7586 providing for the retention by Protected Area Management Board (PAMB), 75% of the revenues accruing to Integrated Protected Areas Fund (IPAF)RA No. 10633 or the 2014 General Appropriation Act (GAA), recognized that the 75% of the income authorized to be retained by the Board is in addition to DENRs existing use of income authority. The President in his VETO message subjected the implementation of RA 10629 to the policies, rules and regulations on the use of income by agencies and creation of trust accounts. These policies, rules and regulations are consolidated in this Joint Circular.PURPOSETo prescribe the guidelines on the implementation of RA No. 10629 amending section 16 of RA N0. 7586COVERAGETo all revenues generated by all protected areas except to those established by specific laws providing for funding mechanism different from IPAF and covered by other specific guidelinesUSE OF FUNDSShall be used SOLELY for the:P- protection;A- administration;M- maintenance; andM management of the system and duly approved projects endorsed by respective PAMBs of PAs which are contained in the approved management plan for the PA in the amount authorized by the DENR.
PROVIDED that the fund shall not be used to cover personnel services expenditures
COMPOSITION OF IPAF 1. Income from Operations all incomes from the operation of the system or management of flora and fauna. These income shall be derived from: Taxes, proceeds from lease, contributions from industries benefiting from the PA and other fees.
a.Protected Area Retention Income Account-(PA RIA)-75% of theincome from operationsb.IPAF Special Account in the General Fund - (IPAF-SAGF) -25% of the income from operations
2.Revenues from other Sources all endowments, donations and grants from various sources and other contributions received.
a. Protected Area Trust Fund (PA TR) Protected Area Retention Income Account (PA RIA) The account that each Protected Area shall establish and maintain for the 75% of income from operations generated by the PA authorized to be retained under RA No. 10629. An account in the name of the specific PA IPAF shall be opened and maintained for this purpose with an Authorized Government Depository Bank (AGDB) (e.g. TSPS PA-IPAF). The opening of accounts shall be in accordance with Treasury Circular No. 2014-2 dated June 16, 2014 or such other guidelines as may be issued by the Bureau of Treasury.IPAF Special Account in the General Fund (IPAF SAGF)Is the existing account with the National Treasury which shall consist of :
a.the accumulated remitted income of the PA prior to the effectivity of this guidelines;b.25% of the income from operations generated by PAs Protected Area Trust Receipts (PA TR)The account that each Protected Area (PA) shall establish and maintain for all revenues from other sources received by the PA for the fulfillment or particular obligations or implementation of specific projects or activities. Trust receipts shall be deposited to the National Treasury pursuant to the Annual General Appropriation Act.Two (2) types of Trust Receipts1.Trust Receipts (Trust Liability)Receipts from Non-tax sources, including insurance proceeds, and donations for a term not exceeding one (1) year authorized by law or contract for specific purposes:a. which are collected or received by the offices of the National Government, such as the PA or PAMB, acting as trustee, agent or administrator;b. which have been received as guaranty for the fulfillment of an obligation; orc. classified by law or regulations as trust receipts , shall be deposited with the National Treasury. This fund can be utilized by requesting from DBM the release of Cash corresponding to the amount deposited. The release shall be in a form of NCA which shall be credited to the MDS Special Account of the PA. No Allotment shall be requested because these are trust receipts2.Trust Receipts Deposited with National Treasury as Special Account in the General Fund Receipts from Donations/grants for specific purpose with a term exceeding one (1) year shall be deposited with the National Treasury and Recorded as Special Account in the General Fund Collections and DepositsAll collecting units shall ensure that Revenues from different sources are recorded under the appropriate IPAF accounts using the UACS funding source codes;Deposited to appropriate IPAF Bank AccountsFunding Source Code under the UACSDENR shall request from DBM for the assignment of specific funding source codes for each of the IPAF Accounts of individual Protected Areas (PA) identified and defined in this Joint CircularFund Custodian/Function1.CUSTODIAN:DENR Regional Office orProvincial Office nearest or most accessible to the PA2.FUNCTION:provide necessary accounting and administrative support in the management of the Fund (Open the required bank accounts in the name of PA.
GuidelinesThe Regional Director shall designate Special Collecting Officers for the PA who shall be responsible for the collection, recording, deposit and reporting of all revenues generated and/or received by the PA in accordance with accounting and auditing rules and regulations;The Fund custodian (Regional Office or PENR office) shall open the required bank accounts in the name of the PA collecting the revenuesAll collections for IPAF accounts shall be acknowledged through the issuance of Official Receipts. All deposits shall be acknowledged by deposit slips and remittance advice or other similar forms in accordance with pertinent rules and regulations;All collections shall be deposited on a daily basis or in consistent with existing COA rules and regulations on deposits of cash receipts.
Designation of Disbursing Officers (DOs) and signatories to the financial documents and checks of IPAF accounts shall follow the DENR Manual of Authority applicable to Regional or Provincial Office which has the custodial responsibility for the PA-IPAF accounts;Disbursements of IPAF shall be supported by documents prescribed by existing COA rules and regulations DepositsTypes of IncomeIPAF Accounts75% of Income from operations-PA Retention Income Account (PA RIA)25% of Income from operations-IPAF Special Account in the General Account(IPAF SAGF)Receipts from donations, grants endowments exceeding one year-PA Trust Receipts Special Account in the General FundReceipts from donations, grants,-PA Trust- Liability(1) year
UtilizationIPAF AccountsProcessPA RIA-Shall be directly utilizedIPAF SAGF-as to accumulated remittances before the effectivity of this - subject to request for special budget (old Procedure)PA Trust in SAGF- subject to request forSpecial BudgetPA Trust-Trust Liability- subject only for release of NCA and not for Special budgetDisbursementsPA Retained Income Account (PA RIA) 75% of income generated- In accordance with COA-DBM-CSC Rules and Regulations, PAMB resolution should be within the provisions thereof;- Direct Utilization;- Disbursement of funds is based on PAMB approved Work and Financial Plan;- Use of collections shall be limited to income earned on accrual basis. Only earned or realized income shall be made available for utilization. Advance collections or payments received shall be treated as deferred revenue or unearned Income. This is to provide for any contingent liability that may arise from such advance collection. Payment of development fees for 25 years generated from income from operations shall be assessed and programmed in WFP based on computed annual payments;-25% of the balance of IPAF SAGF prior to the effectivity of this circular and all other deposits shall be used by any PA or DENR-BMB.DisbursementsPAMB shall submit to the DBM through DENR-BMB, a Special Budget in accordance with the purpose and intent of the Donation or grant the period of the activities exceeds one year as reflected in the Deed of Donation which shall also be submitted as supporting documents.DBM after evaluation of the documents submitted shall issue release documents to the Donee in a form of SARO and the corresponding NCA.Usual accounting procedure is observed in recording the allotment and NCA received and so with the disbursement of fundsDisbursementsReceipts of donations/grants with a term of one (1) year or less shall be treated as Trust Liability account of DENR.NCA shall be requested from the DBM for the amount of the donation or grantDisbursement shall be in accordance with existing rules and regulations.ReportingWHAT to submit (printed or electronic from) -Quarterly Financial and Physical Accomplishments on the Utilization of Funds -Quarterly Reports of Donations in case of IPAF Trust -List of Projects and activities and their corresponding amounts.WHERE to submit: -House Committee on Appropriations; -Senate Committee on Finance; -DBMCOAPROVIDED Quarterly reports are posted in the Transparency Seal of DENRPenalty ClauseNon Compliance with this guidelinesFailure to submit all the required Reports Shall render the disbursement from IPAF > VOID and shall subject the erring OFFICIALS and EMPLOYEES >DISCIPLINARYACTION per Admin Code of the Phils. or EO 292 > CRIMINAL ACTION per Penal Laws