2012

PNP STANDARD OPERATING PROCEDURE NO. 24-12

ADMINISTRATION OF THE PNP TRUST RECEIPTS

I. References

A. Approved letter for President Joseph E. Estrada from the Chief, PNP dated 4 April 2000 granting the PNP's request for exemption from Executive Order 338;

B. Undated NHQ PNP SOP No. 24 (as amended), on Administration of the PNP Trust Receipts;

C. NHQ SOP No. 24 dated October 15, 1992, on Administration of the PNP Trust Receipts;

D. DBM-DILG Joint Circular No. 1-92 dated May 8, 1992, entitled: "Rules and Regulations in the Proper Handling/Administration of the Trust Receipts of the Philippine National Police";

E. Fiscal Directive No. 20-002, on New Payment Scheme of the PNP Trust Receipts (For FED and SAGSD); and

F. NHQ PNP Circular No. DPL-03-02 dated October 26, 2003, on Delegation of Authority.

II. Purpose

To implement policies and provide guidelines concerning the administration of the PNP Trust Receipts (PNPTR). CHATEa

III. Definition of Terms

A. Trust Receipts — refers to receipts from non-tax sourced authorized by law for specific purposes which are collected/received by a government office or agency acting as trustee, agent or administrator, or which have been received as guaranty for the fulfillment of an obligation, and all other collections classified by law or regulations. This shall include, but not limited to, income from the following PNP operations and statutory/regulatory functions:

1. Income producing activities of PNP such as, but not limited to:

a. Treatment or hospitalization of non-PNP members in the PNP Hospital and Dispensaries;

b. Reimbursement from PHILHEALTH except professional fees;

c. Tests and analyses conducted by the PNP Crime Laboratory Service;

d. Utilization of unused portions of PNP camps, reservations or installations;

e. Rentals of PNP equipment and facilities such as aircrafts, vessels, engineering equipment and vehicles, etc.;

f. Collections from rent of concessionaires;

g. Fees for use of navigational aids; and

h. Other income-producing activities conducted by the PNP where PNP resources are utilized.

2. Collections/fees in the exercise of statutory/regulatory functions of the PNP are those pertaining to:

a. Security Agency License; HCEISc

b. Security Guard License;

c. Firearms Licensing and other related activities as enumerated in Executive Order 256 dated December 21, 1995;

d. Licenses/Certificates issued by the PNP for Marine Officers Rating;

e. Permit to purchase, store, import or transport explosives and explosives ingredients;

f. Motor Vehicle Clearance;

g. Police Security Clearance;

h. Police Station Clearance;

i. Fines imposed by the PNP Maritime Group on any violation of maritime laws, rules and regulations including illegal cargoes; and

j. All other licenses, certificates, permits, fines and penalties currently required and those which may subsequently be required by the PNP.

B. Collecting Officer (CO) — designated by the Chief of Office with approval of the PNP for the purpose of collecting public money and accounting of same pursuant to Section 64, Presidential Decree 1445.

C. Direct Operating Costs — expenditures directly incurred in operating equipment and facilities only (excluding personal services and depreciation of equipment).

D. Disbursement — constitute all cash paid out during a given period either in currency (cash) or by check. It may also mean the settlement of government payables/obligations by cash or by check. It shall be covered by Disbursement Voucher (DV)/Petty Cash Voucher (PCV) or payroll. (Sec. 27, Vol. 1, NGAS Manual). SEIcHa

E. Notice of Cash Allocation (NCA) — the cash authority issued by DBM to the Central Office and Police Regional Offices (PROs) to cover the cash requirement of the agency.

F. Office/Unit — refers to PNP Regional Offices and other Support/Separate Units/Groups/Services.

G. Order of Payment (OP) — is a Controlled Form issued by the proper Processing and Licensing Office of the PNP to the LBP and its designated branches directing the latter to accept payment of the fees and charges imposed by the PNP in pursuit of its statutory and regulatory functions.

H. Program of Expenditure (POE) — is an itemized list of authorized projects prepared by the requesting office/unit for funding purposes.

I. Project Coordinator — refers to the office which manages the PNPTR for, and in behalf of, the Director for Comptrollership (TDC).

J. Special Bank Receipt (SBR) — is an Accountable Form transferred by the PNP to the Land Bank of the Philippines (LBP) thru a Memorandum Receipt (MR) which shall be issued as proof of payment in the collection of fees and charges imposed in pursuit of the statutory and regulatory functions of the PNP.

IV. Scope

This SOP covers all PNP trust receipts from income producing activities and fees/collections enumerated under paragraph III (A) above.

V. Policies

a. Income from PNP activities enumerated in paragraph III (A) shall constitute the PNP Trust Receipts (PNPTR) and are available for use by the PNP subject to the approval of the Secretary of the Interior and Local Government (SILG); Provided, that the net proceeds of twenty percent (20%) of the firearms license fees collections (as defined in paragraph no. 1, Section IA, Executive Order 256) for the programming period to the exclusion of the other fees and charges required/collected by the Firearms and Explosives Office (FEO), Civil Security Group (CSG), PNP shall be remitted to the Scholarship Fund pursuant to Republic Act 6963 in accordance with the following allocations: STHAID

Philippine National Police (PNP)	40%
Armed Forces of the Philippines (AFP)	30%
Bureau of Fire Protection (BFP)	20%
Bureau of Jail Management and Penology (BJMP)	10%

b. Collections for light and water, telephone services and other utilities from tenants of PNP camps, treated as Trust Liabilities, shall not be treated as PNP Trust Receipts and shall be the subject of a separate PNP Standard Operating Procedure (SOP).

c. Collections from rentals of PNP quarters/housing shall be remitted to the PNP Housing Board.

d. Payments for the FEO, Permit to Carry Firearms Outside Residence (PTCFOR) and Supervisory Office for Security and Investigation Agencies (SOSIA) fees shall be made at the Land Bank of the Philippines (LBP) while Collecting Officers (COs) shall temporarily be deputized for the Other Trust Receipts collections and shall serve as the fund custodian responsible for collections until the appropriate Memorandum of Agreement (MOA) shall have been executed and entered into between the PNP and the LBP.

e. The PNPTR shall not be utilized for payment of additional compensation to employees in the form of allowances, incentive pay, bonuses or other forms of additional compensation except as may be authorized pursuant to Presidential Decree 985 or Presidential Decree 1597. The PNPTR shall likewise not be used to create new positions, augment salaries of regular personnel, purchase motor vehicles without the proper approval of the Office of the President, pursuant to Letter of Instruction (LOI) #29, and lastly, fund unauthorized activities/payments.

f. Increments of or the total net programmable amount of the PNPTR shall be made available to the Chief, PNP to fund PNP programs and projects. Availment of the Trust Receipts shall not require the issuance of an appropriate Notice of Cash Allocation (NCA) from the Department of Budget and Management (DBM). However, utilization shall be based on a Program of Expenditures (POE) which shall be approved by the Secretary of the Interior and Local Government (SILG) subject to existing accounting and auditing rules and regulations. ICTaEH

g. Approval for all obligating instruments and Disbursement Vouchers (DVs) chargeable against the PNPTR are:

	Approving Authority
Over P1 Million	C, PNP
Below P1 Million	DC

h. The authorized signatories for checks chargeable against the PNPTR are:

	Signed by:	Countersigned by:
Over P1 Million	Director, FS	Chief, PNP
Below P1 Million	Director, FS	DC

 Correspondingly, remittances (tax payments) shall be signed and countersigned by aforementioned signatories/counter signatories.

i. The corresponding PNP wide POE for the PNPTR Funds shall be made in a quarterly basis subject to the approval of SILG.

j. The FEO and other PNP offices/units involved in the processing of documents and monitoring of firearms and explosives shall retain twenty percent (20%) of the total collections for firearms and explosives fees and charges to fund direct operational expenses, pursuant to Section 3, Executive Order 256 dated December 21, 1996. Similarly, the PTCFOR Secretariat shall retain 20% from PTCFOR collections. However, they shall submit their Income and Revenue Statement (IRS) together with their proposed Program of Expenditures (POE) to the Chief, PNP (Attn: Directorate for Comptrollership), for inclusion in the PNP-wide POE.

k. Additionally, thirty-five percent (35%) of the Other Trust Receipts collections (less light and water collections) shall be retained by the following units in accordance with the corresponding percentage shares: HaTAEc

Directorate for Intelligence (DI)	=	10%
Finance Service (FS)	=	15%
Highway Patrol Group (HPG)	=	15%
Crime Laboratory (CL)	=	10%
Health Service (HS)	=	10%
Headquarters Support Service	=	10%
Supervisory Office for Security and Investigation Agencies	=	15%
Information and Technology Management Service	=	10%

l. Realignment may be made within the POE during the budget execution, subject to the approval of the Chief, PNP.

VI. Procedural Guidelines

A. Collections and Remittances for FEO, PTCFOR and SOSIA Fees:

1. The Finance Service shall centrally manage the procurement and printing of Special Bank Receipts (SBRs) thru the National Printing Office and transfer the accountability of the forms to the Manager of LBP, Crame branch thru a Memorandum Receipt (MR). The SBR shall be printed in quadruplicate copies and carbonized.

2. The Finance Service shall furnish the Directorate for Comptrollership (Attn: Chief, Management Division and Chief, Accounting Division) the Monthly Summary List of SBRs transferred to LBP, Crame Branch. 

3. The FEO (Attn: Chief, Budget and Fiscal Section), PTCFOR Secretariat and SOSIA (Attn: Chief, Budget and Fiscal Section) shall receive from LBP, Crame Branch, processor's copies of Order of Payment and Special Bank Receipts not late than the last day of the month of payment received from the (1st) day to the fifteenth (15th) day of the month and on the fifteenth day of the following month for payment received from the sixteenth (16th) day to the last day of the month. Likewise, DC (Attn: Chief, Accounting Division) shall receive the Auditor's Copy of the OPs and SBRs and the triplicate copy of the application form for audit and reconciliation according to the above schedule.

B. Collections and Remittances for Other Trust Receipts: CHATcE

1. The PNPFS shall centrally manage the procurement and issuance of Official Receipts (ORs) to PROs/Collection Offices for better control and supervision. A list of every issuance/distribution shall be submitted to the Directorate for Comptrollership (Attn: Chief, Management Division).

2. The deputized Collecting Officers/Fund Custodians shall issue the ORs in such a manner as to ensure that a continuing series of ORs is issued to the collection office.

3. The deputized Collecting Officers/Fund Custodians shall issue a separate series of ORs for all collections accruing to the PNP Trust Receipts.

4. The deputized Collecting Officers/Fund Custodians of NHQ/PRCFDs shall deposit daily all their collections for the day into the interest earning Savings Account of the Treasurer of the Philippines (TOP) with an Authorized Government Depository Bank (AGDB) to which they are accredited by the Treasury Fiscal Examiner (TFE) of the Bureau of the Treasury (BTr).

5. The deputized Collecting Officers/Fund Custodians of the NHQ/PRCFDs shall accomplish the AGDB deposit slip in triplicate. The deposit slip shall pertain to collections of one date. Any collection after a deposit had been made shall be deposited on the next banking day. A List of Collections (LC) shall be attached to the deposit slip copy for the TFE (format attached). Distribution of the validated deposit slips is as follows:

a. Original Copy — AGDB Branch

b. Second Copy — Collecting Officer

c. Third Copy (with attached LC) — TFE SHIETa

6. The Collecting Officers/Fund Custodians of NHQ/PRCFDs shall submit a monthly Report of Collections and Deposits, together with a duly authenticated copy of the deposit slips with attached ORs to DC/PRCFD (Attn: Accounting Division/Section and Management Division/Section) not later than the 15th day of the following month.

7. Collections pertaining to dishonored checks, shall be footnoted making reference to the date subject check was deposited.

C. Disbursements

 All Disbursements shall be made in accordance with the approved POE, subject to existing accounting and auditing rules and regulations. The corresponding supporting documents shall be identified and likewise bear the sub-responsibility code "184-AO257".

VII. Coordinating Instructions

A. For FEO, PTCFOR and SOSIA Fees:

1. The Director, Finance Service shall designate a responsible officer who will be in charge of the custody and accounting of the SBRs. The designated responsible officer must be properly bonded.

2. The Director, Finance Service shall submit to DC (Attn: Chief, Accounting Division) a Monthly Report of Accountability for Accountable Forms for the used and unused SBRs, NLT the 15th day of the following month.

3. The DC (Attn: Chief, Accounting Division) shall reconcile the Bank Statements with the Credit Advice, Abstracts of Daily Collections, Consolidated Order of Payment Forms and the machine validated Special Bank Receipts not later than the last day of the month for payment received from the 1st day to the 15th day of the month and not later than the 15th day of the following month for the payment received from the 16th to the last day of the month. EcDSTI

VIII. Rescission

All issuances, SOPs, directives in conflict with this SOP are hereby rescinded or modified accordingly.

IX. Effectivity

This SOP takes effect immediately.

BY COMMAND OF POLICE DIRECTOR GENERAL BARTOLOME:

 

(SGD.) ROQUE G. RAMIREZPolice Director